Morgan Stanley Dean Witter/Bank 96DEAN MITER REYNOLDS INC. Account No.
Corporate Account Agreement & Enabling Resolutions
To Dean Witter Reynolds Inc.:
The undersiggn d, City of La Ouinta (the "Corporation"), acting by
Saundra L. JUf1ofa (name of individual), the Corporation's duly authorized Sarretary
(President/Secretary/Treasurer, referred to as the "Officer"), pursuant to the following duly certified
resolutions, hereby authorizes you to open a Securities Account in the name of the Corporation. This
authorization shall continue in effect until revoked by the Corporation by a written notice addressed to you
and received at Newport Beach, CA (Dean Witter branch carrying the account).
Further, Corporation hereby certifies that the following is a full, true, and correct copy of Resolutions
duly and regularly adopted by vote of the Board of Directors (the "Board") of the Corporation, that such
Resolutions have not been rescinded or modified and are in full force and effect, and Corporation further
represents and warrants that: (1) the Resolutions are in accord with and pursuant to Corporation's
underlying charter and by-laws; (2) the Resolutions are in accord with all constitutional, statutory, and
regulatory provisions pertaining to Corporation; (3) Corporation is empowered to take the actions called for
by the Resolutions; (4) Corporation is duly organized and existing; (5) the persons designated below as
officers of Corporation have been duly installed and now hold the offices in Corporation set forth by their
respective names and their true signatures; (6) a current audited financial statement is attached; (7) the
Corporation has no other accounts with Dean Witter o#X41XXhjpX,X X X X--, t; v v v —; and (8) the
Corporation hereby designates Ernest Marc hos ky as the Dean Witter Account Executive of record for this
account.
The Dean Witter Securities Account
Securities accounts are subject to federal and state law and the rules, regulations, and customs of the
SEC, the CFTC; the Federal Reserve Board, the NYSE, the NASD, other industry self -regulatory organiza-
tions, and exchanges.
Substitute W 8
Federal income tax regulations require Dean Witter to obtain a social security or tax ID number for
every account. Use this guide to select the appropriate number.
Communications: Suspected Errors
Until Dean Witter receives a written notice of a different address, all communications sent to the
address of record are presumed to have been given to the corporate personally whether or not actually
received.
Corporations suspecting an error on their monthly statement or a trade confirmation should promptly
contact the manager of the branch servicing that account. Dean Witter may presume the statement correct
unless it receives written notification about the suspected error within 10 days. It is the corporation's
responsibility to seek immediate clarification about entries that the client does not clearly understand.
Termination or Restriction of Accounts
A corporation may terminate an account at any time but will remain responsible for any charges to the
account. Dean Witter likewise may terminate an account at any time or place limitations on available
services, including the nature, volume and timing of transactions.
OWR lest (4-93) REV. 3.94
Governing Law
No provision of this Agreement may be amended or waived unless agreed to in writing and signed by
an authorized officer of Dean Witter. If any provision of this Agreement becomes inconsistent with any
applicable current or future law, that provision will be deemed amended to conform with the law, but all
other provisions will remain in effect. This Agreement and its enforcement will be governed by the law of
the State of New York without regard to conflict of laws provisions.
This agreement shall cover individually and collectively all accounts which are held by Dean Witter for
the corporation. This Agreement shall be binding upon the present Dean Witter organization and any
successor organizations and their respective assigns; it shall be binding upon the current account owner(s)
and the heirs, executors, administrators, trustees, receivers, successors and assigns of the account.
Signatures
As required by IRS regulations, I certify under penalties of perjury that I have provided you with the
Corporation's correct Tax ID number. 95- 740431
n
City of La Quinta (Corporation), by: fficed
Print Name (Signature)
Date: May 8 , 19 2.2
Authorized Individuals
I further certify that the following officers and/or individuals have been duly authorized, individuail%
pursuant to Resolutions "second" and "third" on the reverse, to issue instructions concerning the
Securities Account, and that the following are their true signatures:
Print Name
Thomas P. Genovese
John M. Falconer
Print Title
City Manager
City Treasurer/
Finance Direct
WHEREOF I have hereunto affixed my hand and the Seal of the Corporation, this
(Secretary, or specify:
nature)
Lai-(s-4
Account Executive Signature Date
Manager Signature Date
2 rTVE S TMENT POL 2 CY
PURPOSE:
Flecal Policy No. 3.1
Primary objective of the Investment Policy is to ensure the
preservation of public funds by providing guidance to management in
administering the City's cash management program.
SECTION I.
POLICY
Areas covered by this policy include:
II. Scope of Financial Funds to be Invested
III. Investment Policy'Objectives
IV. Delegation of Authority for Investment Decisions
V. Conflict of Interest
VI. Investment Prudence
VII. Investment Instruments in which the City may
Invest, Diversification of the Investment
Portfolio, and Minimum Maturity Portfolio Schedules
VIII. Management of Joint Resources, and Distribution of
Interest Earnings
IX. Financial Institutions in which the City may Invest
X. Investment Strategy and Results Monitoring
XI. Provisions for Interim and Annual Reporting
Cash management objectives shall be developed within the
constraints of this policy statement. Cash Management Objectives
shall include:
A. A Total Percentage of Invested Cash. The City intends to
have 100% of available City funds invested.
H. Percentage of Return (Yield). A target yield should be
.stated as a goal.
C. Total Dollar Return Goal. Combines the objectives of
percentage of cash available and the percentage of yield
to obtain a total dollar return goal.
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=NVESTI��NT POL2CY
Fiscal Policy No. 3.1
Monies held by the California Board of Equalization and Riverside
County Treasurer for the City or Redevelopment Agency during tax
collection periods shall be governed by the State of California and
Riverside County investment policies and are not subject to the
provisions of this policy. Investments made with state or county
governmental investment pools shall only be allowed where pool
investments are consistent with the City's investment policy.
The City's investment policy shall also govern Bond proceeds and
Bond reserve fund investments. California Government Code Section
5922(d) governs the investment of bond proceeds and reserve funds
in accordance with bond indenture provisions which shall be
structured in accordance with the City's investment policy.
SECTION III. Investment Policy Objectives
The foremost objective of the City is to ensure the preservation of
principal. Each investment transaction shall first seek to ensure
capital losses are avoided, whether they are from default of
securities or erosion of market value.
The City, as a secondary objective, seeks to attain yields that are
consistent with appropriate prevailing indices. Market rate
objectives must be consistent with constraints imposed by the
primary objective of the safety of principal, internal cash flow
considerations and any City of La Quinta ordinance, restricting the
placement of public monies. The intent of any investment purchase
�is to hold it to maturity. Speculative trading is not permitted.
Speculative trading are those attempting to gain market premium
appreciation through short term market volatility resulting in
increased risk and loss exposure to the City.
In addition the City, as a prudent practice, will periodically
(every 3.- 4 years) conduct a bid process for banking and/or
custodian services.
SECTION IV. Delegation of Authority
Management responsibility for the investment program is held by the
City Manager and appointed designees. No employee may engage in an
investment transaction except as provided under the terms of this
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= NVE S TMENT POL = CY
Fiscal Policy No. 3.1
the secondary objective of the obtainment of market rates of
return. The Administrative Services Personnel involved in the
investment function shall adhere to the following:
1. Return on Investment: The investment portfolio of the
City of La Quinta shall be designed to attain a market
average rate of return during budgetary and economic
cycles, taking into account the City's investment risk
constraint and the cash flow characteristics of the
portfolio.
2. Maintaining the Public Trust: All participants in the
investment process shall seek to act responsibly as
custodians of the public trust. Investment officials
shall avoid any transaction that might impair public
confidence in the City of La Quintas' ability to govern
effectively.
Investment officers acting in accordance with written procedures
and exercising due prudence shall be relieved of personal
responsibility for an individual security's credit risk or market
price changes, provided deviations from expectation are reported in
an timely fashion, and appropriate action is taken to control
adverse developments.
SECTION VII. Investment Instruments
As a unit of local government in the State of California the City
of La Quinta is restricting itself to the investments authorized by
Government code, Sections 53600 through 53635:
1. Savings accounts and other time accounts of commercial
banke-or savings and loans commercial banks insured by
the Federal Deposit Insurance Corporation.
2. Certificate of Deposits of Commercial Banks or Savings
and Loans insured by the Federal Deposit Insurance
Corporation. Certificate of Deposit purchases are
limited to $99,000 with interest earnings paid monthly to
the City to ensure F.D.I.C. $100,000 insurance coverage.
3. Treasury Bills, Treasury Notes, Treasury bonds and
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=IVVESTI=NT POL2CY
banking institutions or primary
agreement exceeding three days
delivery vs payment basis.
Flecal Policy No. 3.1
brokerage firms. Any repurchase
shall be transacted on a full
Investment Agreements may be used as an investment option for
insured bond proceeds and/or reserve funds. Investment Agreements
are not to be confused with Money Managers who are contracted to
manage a pre -determined amount of funds for the City. A bid
process must be administered by the City or its designee in
determining the selected institution. The informal bid process,
used for both construction and reserve fund proceeds must have a
minimum of three responses to meet the City's selection criteria.
Bond indenture provisions govern the use of investment agreements
which are also subjected to further approval by a bond insurance
firm if the debt issue has been insured.
It is the general policy of the City to concentrate its investment
efforts in, but not to be limited to, U.S. Treasury obligations,
Certificates of Deposit and Money Market Accounts issued by
financial institutions located in the State of California.
Investments will be selected on the following basis:
1. The institution offering the investment must meet .all the
criteria as stated in the "Financial Institutions",
Section IX of this policy statement.
2. The duration of the investment must coincide with cash
requirements determined by the Finance Director of the
City to meet short term or long term needs.
3. The rate of interest on the investment must be at least
equivalent to the average rate of return available in the
market place.
BID PROCESS
Certificate of Deposit investments in the amount of $100,000 or
less shall have a yield analysis performed in comparing the
selected investment to others similar in nature.
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Flecal Policy No. 3.1
considering sizeable blocks of anticipated revenue (sales tax,
property tax). Maturities in this category shall be timed to
comply with the following guidelines.
TARGETS
MATURITY SCHEDULE
Under 12 Months
Under 24 Months
PORTFOLIO
75%
85%
The City shall adhere to Government Code State Statutes which
require each individual investment to have a maximum maturity of
five years unless specific approval is authorized by City Council.
SECTIOM VIII. Resource Management and Interest Distribution
All investments will be in the name of the City of La Quinta, La
Quinta Redevelopment Agency and La Quinta Financing Authority and
in most cases it will be a general policy of the City to pool all
available operating cash into a Treasury Cash Management investment
portfolio. However, a specific investment purchased by a specific
fund shall incur all earnings and expenses to that particular fund.
Interest earnings from pooled funds shall be allocated to all
participating funds in the following order:
A. Payment of interest earnings shall be allocated to
designated funds from its specific investments.
B. Payment to the General Fund of an amount equal to the
total annual bank service charges as incurred by the
general fund for all operating funds as included in the
annual operating budget.
C. Payment to the General Fund of a management fee equal to
5% of the annual pooled cash fund investment earnings.
D. Payment to each fund of an amount based on the average
computerized daily cash balance included in the common
portfolio for the earning period.
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= NV� S TMENT POL = CY
Fiscal Policy No. 3.1
Financial institutions will be required to meet the following
criteria in order to receive City funds for investment:
1. Insurance - Public Funds shall be deposited only in
financial institutions insured by the Federal Deposit
Insurance Corporation.
2. Collateral - The amount of City of La Quinta deposits or
investments not insured by agency of the federal
government shall be 110% collateralized by securities' or
150% mortgages' market values of that amount of invested
funds plus unpaid interest earnings.
3. Size - The. amount of City of La Quinta deposits or
investments must be collateralized or insured by an
agency of the federal government.
4. Disclosure - A) Each financial institution maintaining
invested funds in excess of $100#000 shall furnish
corporate authorities a copy of all statements of
resources and liabilities which it is required to furnish
to the State banking or savings and loan commissioners as
required by the California Financial Code.
The City shall not invest in excess of $100,000 in
banking institutions which do not disclose to the City a
current listing of securities pledged for
collateralization of public monies.
B) Each securities dealer shall provide monthly and
quarterly reports filed pursuant to U.s. Treasury
Department regulations. Each mutual fund shall provide
a prospectus and statement of additional information.
SECTION X. Investment Strategy and Results Monitoring
Investment strategies and results shall be reviewed by the
Investment Advisory Board (IAB). The City Manager will be
subsequently apprised of the IAB's investment strategy. A review
will be held at least quarterly to determine general strategies and
to monitor results. Documented summaries of Investment meetings
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1 1 AU§ t 2, 1994
DEAN WITTER REYNOLDS INC.
CORPORATE TRADING AUTHORIZATION
A/C#
I Saundra L. Juhol a hereby certify, that I
am City Clerk of the City of La Quinta, California ,
(Title of Officer) (Name of Corporation)
a corporation duly organized and existing under the laws of State of California ,
(State of Incorporation)
that at a meeting of the City Council of this
(Designate Governing board or Executive Committee)
Corporation, duly held on the 16th day of Apri 1 , 19_, at
which a quorum was present and acting throughout, the following resolutions were duly adopted, and
are still in full force and effect.
RESOLVED FIRST, that the officers and/or agents of this Corporation named below are
hereby authorized, for and on behalf of this Corporation, to purchase and sell only those
instruments listed in the City of La Quinta Investment Policy.
SECOND, that the fullest authority is hereby conferred at all times with respect to any
transaction pursuant to .the foregoing resolution, and any action taken by any of the
officers and/or agents named below shall be deemed to be proper in connection
therewith, Dean Witter may. deal with any and all of the officers and/or agents
designated by this resolution as though it were dealing with the Corporation directly.
THIRD, that any officer of the Corporation is authorized to certify to Dean Witter the
foregoing resolution and related list of authorized officers and agents and, if requested,
specimen signatures of such persons. Dean Witter may rely upon such resolution, list
and certification until it shall have received written notice of a change in or the rescission
of any authority granted by such resolution.
I FURTHER CERTIFY that the action authorized to be taken by the foregoing resolutions is not
contrary to any provision in the charter or by-laws of the Corporation.
Officers directors and agents authorized and empowered to act pursuant to these resolutions: "
(indicate if a separate schedule is attached None )
Thomas P. Genovese
John M. Falconer
City Manager
City Treasurer/Finance Director
IN WITNESS WHEREOF, I have hereunto affixed my hand and the seal of said Corporation this
8th day of May , 1 9-K—
*Specimen signatures must be provided upon request.
State of i�-�rz
)
ss..
City of C`�g o-.- )
Sworn to before me this ol°N` day
Of AYA 19 9. ce
Notary Publ
My Commission expires I c— I lE - 9 8
ENABLING RESOLUTIONS
FIRST: Resolved that the Corporation is authorized and empowered to open a Securities Account
with Dean Witter Reynolds Inc. ("you") as described in the Dean Witter Client Agreement.
SECOND: Resolved that the Securities Account shall be a Cash Account for the purpose of
purchasing and selling approved securities as listed in the City of La Quinta Investment policy. All
securities shall be on a delivery versus payment basis with delivery to the City custodian. All orders
and instructions, written or oral, relating to the Securities Accounts shall be given you by one of the
individuals designated under the heading "Authorized Individuals", and each of them individually
is hereby authorized and directed to purchase and/or sell and/or deal in any and all securities and
financial instruments for the Corporation, including the power to delivery, accept delivery of, pledge,
endorse, and direct the transfer to record title of any assets beneficially owned by the Corporation,
without obligation on your part to inquire into the reasons for said orders or instructions.
THIRD: Resolved that you may deal with any of the Authorized Individuals as though you were
dealing with the Corporation directly.
FOURTH: Resolved that each of the Authorized individuals is authorized and directed to execute
and deliver to you on behalf of Corporation any and all agreements, documents, contracts, and
other writings that you may require.
FIFTH: Resolved that the Secretary (or other duly designated officer) of the Corporation is hereby
authorized, empowered and directed to certify, under the Seal of the Corporation, or otherwise to
you:
(a) a true copy of these Resolutions;
(b) specimen signatures of each and every individual empowered by these Resolutions;
(c) a certificate (which, if you require, shall be supported by an opinion of the general counsel
of the Corporation, or other counsel satisfactory to you) that the Corporation is duly
organized and existing, that its charter empowers it to transact the business contemplated
in these Resolutions, and that no limitation has been imposed upon such powers by
constitution, statue, regulations, charter, by-law, or otherwise.
SIXTH: Resolved that you may rely upon any certification given in accordance with these
Resolutions as continuing fully effective unless and until you shall receive due written notice of an
amendment, modification or rescission of such Resolutions or certification. Further resolved that
you shall not be liable for any action taken or not taken upon instruction of any Authorized
Individual prior to your actual receipt of written notice of the termination or impairment of such
person's authority. The failure to supply any specimen signature or any other documentation shall
not invalidate any transaction which is in accordance with authority actually granted.
SEVENTH: Resolved that in the event of any change in the office of powers hereby empowered,
the Secretary (or other duly designated officer) shall certify such changes to you, in writing, which
certification, when you receive it, shall terminate the powers of the persons previously authorized
and empower the persons thereby substituted.