SUBSTITUTE                                                                                                  ADOPTED - JANUARY 24, 2006

Agenda Item No. 8

 

Introduced by the County Services and Finance Committees of the:                              

 

                                  INGHAM COUNTY BOARD OF COMMISSIONERS

 

RESOLUTION AUTHORIZING THE COUNTY TREASURER TO ESTABLISH A LOCAL GOVERNMENT INVESTMENT POOL UNDER ACT 121 OF 1985

 

RESOLUTION #06-004

 

WHEREAS, the Treasurer of Ingham County (“County Treasurer”) is authorized upon resolution of the County Board of Commissioners to establish a local government investment pool (“investment pool”) pursuant to Section 3 of the Local Government Investment Pool Act (PA 121 of 1985), and to contract with local units of government (“local units”) for the deposit of money in the investment pool; and

 

WHEREAS, the treasurer or other chief fiscal officer of the local unit, upon resolution of the governing body of the local unit, is authorized to enter into a contract with the County Treasurer for deposit of money in the investment pool pursuant to Section 3 of the Local Government Investment Pool Act; and

 

WHEREAS, Section 5 of the Local Government Investment Pool Act required the parties to set forth the terms and conditions regarding the deposit of money in the investment pool in a written contract; and

 

WHEREAS, Section 5 of the Local Government Investment Pool Act requires the County to submit a proposed uniform contract for use with the local units of government within Ingham County to the Department of Treasury for approval.

 

THEREFORE BE IT RESOLVED, that the County Treasurer is hereby authorized to form a local government investment pool under the Local Government Investment Pool Act and to submit a uniform contract to the Department of Treasury in the form of the Investment Pool Agreement attached hereto as Exhibit A.

 

BE IT FURTHER RESOLVED, that the County Treasurer is hereby authorized to enter into contracts with local units and to accept money for deposit in the investment pool, subject to the following conditions:

 

(1)               the proposed uniform contract is approved by the Department of Treasury;

(2)               the local unit is authorized by its governing body to contract with the County Treasurer.

(3)               the contract shall be approved as to form by the County Attorney.

 

COUNTY SERVICES:    Yeas:  Schor, De Leon, Copedge, Severino, Vickers

    Nays:  None              Absent:  Holman        Approved 1/17/06

 

FINANCE:  Yeas:  Thomas, Hertel,  Weatherwax-Grant

   Nays:  None                 Absent:  Grebner, Dedden, Dougan    Approved 1/18/06      


INVESTMENT POOL AGREEMENT

     THIS AGREEMENT made and entered into as of this ____day of ________, 2006, by and between the Treasurer of Ingham County (“County Treasurer”) and the treasurer or chief fiscal officer of _________________ (“Local Unit”) is made with reference to the following:

A.         The County Treasurer is authorized by resolution of the County Board of Commissioners to establish a local government investment pool (“investment pool”) pursuant to Section 3 of the Local Government Investment Pool Act, being Sections 129.141-129.150 of the Michigan Compiled Laws, and to contract with the Local Unit for the deposit of money in the investment pool; and

B.         The treasurer or other chief fiscal officer of the Local Unit is authorized by resolution of the governing body of the Local Unit to enter into a contract with the County Treasurer for the deposit of money in the investment pool pursuant to Section 3 of the Local Government Investment Pool Act.

C.        The parties desire to set forth the terms and conditions regarding the deposit of money in the investment  pool in a written contract as required by Section 5 of the Local Government Investment Pool Act.

D.        The uniform contract upon which this Agreement is based has been approved by the Michigan Department of Treasury.

     NOW, THEREFORE, in consideration of the mutual promises contained in this contained in this Agreement, IT IS AGREED:

  1. Term.  This agreement shall be effective from the date hereof until terminate

in accordance with paragraph 13.

  1. Deposit of Money in Investment Pool.  The treasurer or other chief fiscal officer

of the Local Unit may deposit money with the County Treasurer for placement in the investment pool.  All money deposited must be “surplus funds.”   “Surplus funds” means money which belongs to or is under the control of the Local Unit is available for investment.  “Surplus funds” does not include money which is required by law or agreement with bondholders to be segregated and invested in a specified manner.  The County Treasurer shall not be responsible for determining whether money deposited on behalf of the Local Unit satisfies the definition of “surplus funds.”

     Deposits shall be made by means of wire transfer of funds, check, direct deposit, or other means acceptable to the County Treasurer.  A deposit made in person or by check shall be credited to the account of the Local Unit and begin to accrue interest the business day following the date of deposit.  A deposit received after 4 o’clock p.m., or any time on a day that the office is officially closed, shall not be deposited until the next business day.  A deposit made by wire transfer of funds or by direct deposit shall be credited to the account of the Local Unit and begin to accrue interest on the date of deposit; provided, however, that the Treasurer or other chief  fiscal officer of the Local  Unit  shall advise the County Treasurer  prior to 2:00 p.m. by telephone on the day of deposit of the amount deposited.  If the Treasurer or other chief fiscal officer of the Local Unit fails to provide notice to the County Treasurer by telephone on the day of deposit, the deposit shall not be credited to the account of the Local Unit or begin to accrue interest until the next business day following the date of deposit.

     At the time of deposit, or notice of deposit as the case may be, the Treasurer or other chief fiscal officer of the Local Unit shall advise The County Treasurer of the approximate length of time for which the funds will be deposited and of the designation, if any, of the particular fund to which the Local Unit would like the deposit credited.

3.    Management of Investment Pool.  The County Treasurer shall manage, invest, and reinvest funds accepted for deposit in the investment pool from the Local Unit.  The County Treasurer may, in his or her discretion, make similar arrangements with other local units of government within the County and may intermingle any of the Local Unit’s funds with the funds of the County or other local units of government.  The County Treasurer shall manage, invest, or reinvest the money in the investment pool in the same manner as surplus county funds under Act No. 20 of the Public Acts of 1943, being Sections 129.91 to 129.93 of the Michigan Compiled Laws.

               The County Treasurer shall invest the money in the investment pool with the degree of  judgment and care, under circumstances then prevailing, that a person of prudence, discretion, and intelligence exercises in the management of his or her own affairs, not for speculation, but  for investment, considering the probable safety of his or her capital as well as the probable income to be derived from an investment of his or her capital. 

The County Treasurer may, but shall not be obligated to, take security for the deposits or investments of the investment pool in the form of collateral, surety bond, or another form of security.

 4.    Minimum Amount of Deposit.   There is no minimum amount required for

deposit in the investment pool.

5.         Minimum Period of Deposit.  There is no minimum period of time for which

deposits must remain in the investment pool.

6.         Withdrawals From Investment Pool.  Subject to Paragraph 15 hereof, the treasurer

or other chief fiscal officer of  the Local Unit and his or her authorized representatives, if any, which are named in the Addendum to this Agreement, may request a withdrawal from the account of the Local Unit by telephone prior to 11:00 a.m., followed by written confirmation of such request.  The Local Unit may generally withdraw up to $100,000 from the investment pool without prior notice.  Such funds will be dispersed the same day, unless prohibited by law; provided, however, that disbursement may be delayed for up to three (3) days depending upon the cash flow of the investment pool.  Withdrawals of amounts greater than $100,000 shall be subject to the approval of the County Treasurer and shall only be made after three (3) days’ written notice to the County Treasurer of the intended withdrawal, unless prohibited by law.  The approval of the County Treasurer shall be based on the cash flow of the investment pool, and shall be granted not later than 10 days from receipt of written notice of the intended withdrawal.  In certain circumstances, the withdrawal may be approved and funds dispersed prior to expiration of the three (3) day notice period.  The money withdrawn from the investment pool shall be transferred to the Local Unit by wire transfer of funds or other means acceptable to the County Treasurer and the treasurer or other chief fiscal officer of the Local Unit.

7.         Nature of Local Unit’s Interest in the Investment Pool.

The Local Unit’s interest in the investment pool is limited to the unwithdrawn amount deposited with the County Treasurer plus a pro rata share of the earnings of the investment pool.  A pro rata share shall be the ratio of the amount of money invested by the Local Unit to the total amount of money invested through the investment pool.  The County Treasurer shall maintain a separate numbered account to record the total amount of deposits, earnings, and withdrawals of the Local Unit and a separate account for each fund designated by the Local Unit.

8.         Computation of Earnings.  The pro rata share of interest earned by the Local

Unit shall be calculated on a daily basis and shall be credited to the account of the Local Unit on the first day of the subsequent month.  Interest on any given deposit shall begin to accrue on the date the deposit is credited to the account of the Local Unit in accordance with Paragraph 2 hereof.  Upon the withdrawal of funds from the investment pool, interest shall accrue through the day preceding the date the funds are dispersed.

9.                  Reports.  The County Treasurer shall provide written reports to the Local Unit

within the first fifteen (15) business days of each month which specify the total amount of the Local Unit’s deposits, earnings, and withdrawals during the previous monthly accounting period.  Separate reports specifying the amount of deposits, earnings, and withdrawals shall also be provided for each fund designated by the Local Unit.

10.       Liability.   The County Treasurer shall not be liable to the Local Unit for losses arising out of an error of judgment made in good faith by the County Treasurer, or with respect to any action taken, or not taken, by him or her in good faith in accordance with the direction of the treasurer or other chief fiscal officer of the Local Unit or the direction of his or her authorized representative.

11.       Indemnification.  The Local Unit agrees to hold the County and the County Treasurer harmless from and against all liability, loss, cost or damage, including reasonable attorneys’ fees, arising from or incurred by the County in good faith and acting pursuant to authority granted by this Agreement and the Local Unit agrees to pay its proportionate share of any losses or debt balances that may arise with respect to activities authorized by this Agreement.

12.       Representations and Warranties.  The Local Unit and the treasurer or other chief fiscal officer of the Local Unit represent and warrant to the County that it has the full power, authority and legal right to enter and perform this Agreement and that it has taken all necessary action to authorize the execution and performance of this Agreement.

            The County and the County Treasurer represent and warrant to the Local Unit that it has the full power, authority and legal right to enter and perform this Agreement and that it has taken all necessary action to authorize the execution and performance of this Agreement.  The County and the County Treasurer further represent and warrant to the Local Unit that the uniform contract upon which this Agreement is based has been approved by the Michigan Department of Treasury.

13.       Default.  If a default occurs in the payment of principal, interest, or other income of an investment of the investment pool, the County Treasurer may do one or more of the following:

            (a)        Institute a proceeding to collect the matured principal, interest, or other income.

            (b)        Accept a compromise, adjustment, or disposition of the matured principal, interest, or other income as the County Treasurer considers advisable for the purpose of protecting the money invested in the investment pool.

            (c)        Accept a compromise or adjustment as to future payments of principal, interest, or other income as the County Treasurer considers advisable for the purpose of protecting money invested in the investment pool.

14.       Order.  An order shall not be issued upon an account of the Local Unit in an amount greater than the total of the account to which that order applies.  If an order for an amount greater than the total of the account to which the order or warrant applies is issued and the order or warrant is paid, the County Treasurer shall be personally liable under his or her official bond for the overdraft resulting from the payment.

15.       Termination.   This Agreement may be terminated by either party upon 45 days’ written notice.  The 45 day notice period may be accelerated upon the mutual agreement of the County Treasurer and the treasurer or chief fiscal officer of the Local Unit.

16.       Modification.  No modification, alteration, or amendment to this Agreement shall be binding unless in writing and approved by resolution of the Ingham County Board of Commissioners and the governing body of the Local Unit.  Any modification, alternation, or amendment (other than a modification, alteration, or amendment to the Addendum attached hereto) shall be filed with the Michigan Department of Treasury.

            IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

                                                                        INGHAM COUNTY

                                                                        By _______________________________

                                                                        Its Treasurer

                                                                       

 

                                                                        By _______________________________

                                                                        Its Treasurer or Chief Fiscal Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADDENDUM

            The treasurer or chief fiscal officer of ________________________ (“Local Unit”) hereby authorizes the following individual (s) to request withdrawals from the Local Unit’s account in the investment pool:

            ________________________________________________________

            ________________________________________________________       

            ________________________________________________________

 

                                                                                    ______________________________

                                                                                           Name of Local Unit

 

                                                                                    By ___________________________

                                                                                    Its Treasurer or Chief Fiscal Officer