2010-064Ilcodadldepartmentsllega~lnur dacumentslardinancesll ~linvestment a~visary services ordin~ce,doc
RDINANCE NO. 201 ~y06~ O
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TExAS,
AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ExECUTE A TwO~YEAR
ExTENSION TO THE INVESTMENT ADVISORY SERVICES CONTRACT wITH FIRST
SOUTHWEST ASSET MANAGEMENT, INC; AND PROVIDING AN EFFECTIVE DATE,
WHEREAS, Section 2256.003 of the Texas Government Code permits cities to contract
with an investment management firm in the exercise of their power to purchase, sell and invest
their funds in investments authorized by the Public Funds Investment Act; and
WHEREAS, on June 1, 2008, the City of Denton ~"City"} and First Southwest Asset
Management, Inc. ~"FSAM"~ entered into an Investment Advisory Services Contract whereby
FSAM was designated as the investment advisor for the City beginning June 1, 2008 and ending
May 31, 2010, with a possible twowyear extension of the Contract not to extend beyond May 31,
2012; and
WHEREAS, the City and FSAM desire to initiate atwo-year extension which will begin
June 1, 2010 and ending May 31, 2012; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS;
SECTION 1. The City Manager or his designee is authorized to execute atwo-year
extension to the Investment Advisory Services Contract between the City and FSAM extending
the term of the Contract to May 31, 2012, a copy of which is attached hereto and made a part
hereof for all purposes.
SECTION 2. The following officials; Jon Fortune, Assistant City Manager; Bryan
Langley, Director of Finance; Antonio Puente, Jr., Treasury Manager; and Caroline Finley,
Treasury Administrator are hereby authorized to transact business with the above listed
institution regarding investments for the City.
SECTION 3, The City Manager is authorized to make the expenditure of funds and fees
and take the actions as required by the Investment Advisory Services Contract as amended.
SECTION 4. This ordinance is enacted pursuant to and in accordance with Section
2256.003 of the Texas Government Code,
SECTION 5. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the ~ day of ~ , 2010.
I r'
MARK BU GHS, MAYOR
ATTEST:
JENNIFER ~VALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM;
ANITA BURGES S, CITY ATTORNEY
C
BY:
i
RENEWAL AGREEMENT FOR
• INVESTMENT ADVISORY SERVICES BY AND BETWEEN
THE CITY OF DENTON, TX
And
FIRSTSOUTHWEST ASSET MANAGEMENT, INC.
This Renewal Investment Advisory Agreement (the "Agreement") is made by and between the City of
Denton, Texas (the "Investor") and First Southwest Asset Management, Inc. ("FSAM"). This agreement
shall be effective as of the date of its acceptance by the Investor, as indicated below.
1. This Agreement renews and extends the Investment Advisory Agreement, dated as of May 31,
2008 ("IA Agreement"), executed by Investor and FSAM.
2. The term of the IA Agreement is hereby extended for a two (2) year period to expire on May 31,
2012. As consideration for the services provided by FSAM under this Agreement, FSAM will be entitled
to a fee, which Investor agrees to pay. This payment shall be in accordance with Appendix A of the IA
Agreement as amended.
3. Appendix A was amended to reduce the quarterly payment from $10,000 to $9,000.
All written communication to the Investor shall be sent to the Investor's address set forth below or as
directed in writing to FSAM by the Investor. ' Any written communication from the Investor to FSAM
under this Agreement must be in written form and mailed or delivered to:
FirstSouthwest Asset Management, Inc.
• 300 West Sixth Street, Suite 1940
Austin, Texas 78701
Attention: Mr. Scott McIntyre
Fax Number: (512) 481-2020
Any notice, statement, or other communication mailed to the other party to this Agreement in accordance
with this section will be deemed to be given upon that party's actual receipt of such notice, statement, or
other communication.
All other terms, provisions, conditions and obligations of the IA Agreement between Investor and FSAM
shall remain in full force and effect. The IA Agreement, including any amendments and this Agreement
shall be construed together as a single contractual agreement.
Executed this A$ay of 12010
CITY F TEXA F1RST_SDUTHWEST ASSET MANAGEMENT, INC
Signature of Investor ature of Officer
G tL 'VIP ~e V
r
Print Name Scott McIntyre
Capacityof Signatory Senior Vice President
•
t;PPROVED AS TO FORM:
CITY ATTORNEY
CITY OF DENTON, TEXAS
-l
BY:
APPENDIX A
•
AMENDED FEE SCHEDULE AND EXPENSE ITEMS
In consideration for the services rendered by FirstSouthwest Asset Management, Inc. ("FSAM") in
connection with the investment of the Portfolio for the City, it is understood and agreed that its fee will be
at fixed quarterly rate of $9,000.
The fees due FSAM shall be due and payable 30 days following the conclusion of each calendar quarter.
Said fee includes all costs of services related to the investment services provided under this Agreement.
Any other fees earned by FSAM relating to City transactions, shall be disclosed to the City.
Fee Calculation for Investment of Bond Proceeds into Flexible Repurchase Agreements ("Flex
Repos") and Guaranteed Investment Contracts ("GIC's"): In the event that specific bond proceeds are
invested by FSAM as per instruction of the Investor into either a Flex Repo or GIC, FSAM shall be
entitled to the lesser of $33,000 or 0.2 percent (0.002) of the aggregate amount reasonably expected as
of the issue date to be deposited over the term of the contract. This fully disclosed fee would be paid to
FSAM by the winning bidder.
•