4.7. SR 03-19-2012REQUEST FOR ACTION
TO ITEM NUMBER
Ma or and Ci Council 4.7
AGENDA SECTION MEETING DATE PREPARED BY
Consent March 19, 2012 Lori Ziemer, Asst. Finance Director
ITEM DESCRIPTION REVIEWED By
Resolution Reauthorizing Membership in the 4M Fund Tim Simon, Finance Director
REVIEWED BY
Cal Portner, Ci Administrator
ACTION REQUESTED
City Council is asked to adopt the attached resolution reauthorizing membership in the 4M Fund.
BACKGROUND/DISCUSSION
The City of Elk River has been a participant in the 4M Fund since 1997 for the purpose of joint
investment with other municipalities so as to enhance the investment earnings to the city and yet maintain
liquidity of city monies. As permitted by Minnesota Statutes, the bond proceeds for the public works
expansion project will be invested temporarily in the 4M Fund during construction in certificates of
deposit, which are fixed rate investments. PMA Financial Network, Inc. administers the 4M Fund and
has recently taken over administration of its fixed rate investment program. Approval of the attached
resolution authorizes PMA Financial Network, Inc. as service provider for the fixed rate investment
program administered through the 4M Fund.
FINANCIAL IMPACT
None
ATTACHMENTS
^ Resolution Reauthorizing Membership in the 4M Fund
Action Motion by Second by Vote
Follow Up
N:\Public Bodies\Ciry Council\Council RCA\Agenda Packet\03-19-2012\4M Fund -Fixed Rate Investments.docx
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RESOLUTION 12-
A RESOLUTION OF THE CITY OF ELK RIVER
RESOLUTION REAUTHORIZING MEMBERSHIP IN THE 4M FUND
WHEREAS, Minnesota Statutes (the Joint Powers Act) provides that governmental units
may jointly exercise any power common to the contracting parties; and
WHEREAS, the Minnesota Municipal Money Market Fund (the 4M Fund) was formed in
1987, pursuant to the Joint Powers Act and in accordance with Minnesota Investment
Statutes, by the adoption of a joint powers agreement in the form of a Declaration of Trust;
and
WHEREAS, the Declaration of Trust, which has been presented to this Council, authorizes
municipalities of the State of Minnesota to become Participants of the Fund and make use
from time to time including the 4M Liquid Asset Fund, the 4M Plus Fund, the Fixed Rate
Program, and other Fund services offered by the Fund; and
WHEREAS, this Council deems it to be in the best interest for the municipality to make
use of, from time to time, the approved services provided by the 4M Fund's service
providers including the Investment Advisor and Administrator, RBC Global Asset
Management, the Sub Administrator, PMA Financial Network, Inc. or the Fixed Rate
Investment Program Administrators, PMA Financial Network, Inc. and PMA Securities,
Inc., and the Custodian, U.S. Bancorp N.A., ("Service Providers") and/or their successors.
WHEREAS, this Council deems it advisable for this municipality to enter into the
Declaration of Trust and become a Participant of the Fund for the purpose of joint
investment with other municipalities so as to enhance the investment earnings accruing to
each;
NOW, THEREFORE BE IT RESOLVED AS FOLLOWS:
Section 1. This municipality shall renew its membership as a Participant of the Fund
and adopt and enter into the Declaration of Trust, a copy of which shall be filed in
the minutes of this meeting. The appropriate officials are hereby authorized to
execute those documents necessary to effectuate entry into the Declaration of Trust
and the participation of all Fund programs.
Section 2. This municipality is authorized to invest monies from time to time and to
withdraw such monies from time to time in accordance with the provisions of the
Declaration of Trust. The following officers of the municipality or their successors
are designated as "Authorized Officials" with authority to effectuate investments and
withdrawals in accordance with the Declaration of Trust:
TIM SIMON/FINANCE DIRECTOR
LORI ZIEMER/ASSISTANT FINANCE DIRECTOR
The treasurer shall advise the Fund of any changes in Authorized Officials in
accordance with Fund procedures.
Section 3. The Trustees of the Fund are designated as having official custody of
those monies invested in accordance with the Declaration of Trust.
Section 4. That the municipality may open depository accounts, enter into wire
transfer agreements, safekeeping agreements, third party surety agreements securing
deposits, collateral agreements, letters of credit, lockbox agreements, or other
applicable or related documents with institutions participating in Fund programs
including U.S. Bancorp N.A. or its successor, or programs of PMA Financial
Network, Inc. or PMA Securities, Inc. for the purpose of transaction clearing and
safekeeping, or the purchase of certificates of deposit ("CDs") and that these
institutions shall be deemed eligible depositories for the municipality. PMA
Financial Network, Inc. and PMA Securities, Inc. and their successors are authorized
to act on behalf of this municipality as its agent with respect to such accounts and
agreements. Monies of this entity may be deposited in such depositories, from time
to time in the discretion of the Authorized Officials, pursuant to the Fund's
Programs available through its Services Providers.
It is hereby certified that the Council of the Ciry of Elk River adopted this Resolution at a
duly convened meeting of the Council held on the 19~' day of March, 2012, and that such
Resolution is in full force and effect on this date, and that such Resolution has not been
modified, amended, or rescinded since its adoption.
John J. Dietz, Mayor
ATTEST:
Tina Allard, Ciry Clerk
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