ITEM 3.7 Depositories for City FundsOt�egoF
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Finance
Adam Flaherty, Finance Director
September 14, 2015
PRESENTER(s):
REVIEWED BY:
ITEM #:
Consent Agenda
Lori Johnson, CA
3.7 Depositories for City Funds
AGENDA ITEM DETAILS
RECOMMENDATION:
It is recommended that Wells Fargo Securities, LLC be designated as an approved investment broker for
the purposes of investing idle cash funds of the City.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No I No
BACKGROUND/JUSTIFICATION:
Each January, the City Council approves the investment brokers for the purpose of investing idle cash
funds of the City. The Resolution (2015-02), specifies that the Administrative Services Director (now the
Finance Director) may recommend additional brokers during the year.
I would like the City Council to designate Wells Fargo Securities, LLC as an approved investment broker.
Specifically I would be working with Lynn Cornwell. See her attached bio as well as a signed broker
certification form.
I have come to know Lynn through my previous job, as well as my involvement in the MN GFOA. Lynn
provides weekly market information and investment opportunities and is very client oriented. Based on
past history and my expectations, we would meet quarterly to review the portfolio and discuss the City's
needs.
The City currently has funds invested with thee brokers: Northland Securities (MN), ICD Securities (AZ)
and Multi -Bank Securities (MI). With the implementation of the securities safekeeping and custody
agreement authorized in February 2015, 1 would envision the following:
1) Discontinuing the purchasing of investments from ICD and Multi -Bank as they are out of state
brokers, of whom I have no relationships with.
2) Future purchasing with Northland, Oppenheimer (approved brokers) and Wells Fargo Securities
(proposed), all of whom are local brokers that I have worked with in the past.
SUPPORTING DOCUMENTS: X ATTACHED ❑ NONE
-Lynn Cornwell — Bio & Signed Broker Certification Form
-Resolution 2015-02 (as a reference)
-Resolution 2015-47 (for approval)
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Move adoption of Resolution 2015-47 (attached)
BUDGET INFORMATION
FUNDING: I
BUDGETED: ❑ YES
Does not require funding
❑ NO
X Not Applicable
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2015-02
RESOLUTION ESTABLISHING DEPOSITORIES FOR CITY FUNDS
WHEREAS, the City of Otsego must, each year, designate official depositories for City fiends
and approve the investment brokers to be used for invetment of City funds in accoudance with
the City's Investment Policy and Minnesota Statutes 118A.02.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
OTSEGO, WRIGHT COUNTY, MINNESOTA THAT:
1. The following are designated as official depositories for City fiends:
a. The Bank of Elk River
b. K1einBank
2. The following are approved as investment brokers for the purposes of investing idle cash
funds of the City:
a. Minnesota Municipal Money Market (01) Fund
b. Multi -Bank Securities, Inc.
c. ICD Securities, Inc.
d. Northland Securities
e. Oppenheimer & Company, Inc.
f. RBC Capital Markets, LLC
3. Collateral is required for all bank deposits that exceed Federal Deposit Insurance
Corporation (FDIC) maximum coverage.
4. Investments shall be made in accordance with Minnesota Statutes 118A and the adopted
Investment Policy of the City of Otsego.
S. The Administrative Services Director may recommend additional depositories, brokers or
other repositories for City funds during the coming fiscal year.
ADOPTED by the Otsego City Council this 12th day of January, 2015.
MOTION made by Council Member Heidner
Scher
ATTEST:
CITY OF OTSEGO
•
Tami Lo ,City Clerlc
and SECONDED by Council Member
INFAVOR: Stockamp, Heidn,er, Darkenwald, Warehime, SEhroeder
OPPOSED: None
Lynn Cornwell
Vice President
Sales Representative
Fixed Income Sales
Wells Fargo Securities, LLC
Lynn Cornwell brings 28 years of investment experience to the
Fixed Income Sales office in Minneapolis, Minn., where she
specializes in providing investment solutions to Midwest
municipalities.
Lynn started her career with Norwest Bank working in the Trust
Department. From there she became a sales assistant with the
institutional brokerage and sales division, where she was later
promoted to sales representative.
Lynn is registered with the Financial Industry Regulatory Authority
(FINRA) as a general securities representative. She has a bachelor's
degree in marketing management from Concordia College in St.
Paul, Minn., where she graduated Summa Cum Laude and was on
the dean's list every semester.
Involved in her community, Lynn is the past chair of an e-
Mentoring program at Wells Fargo and was on the Development
Committee for Big Brother, Big Sisters. Currently, she is a member
of the Social Committee of the Minnesota Government Finance
Officers Association, the Minnesota Association for Finance
Professionals and the Government Finance Officers Association.
She has taught classes at the College of St. Catherine. She also
received the Wells Fargo Volunteer Service Award in 2002.
Lynn enjoys reading, walking, boating and spending time with her
husband. Her personal goal is "to help my clients find the
investments that best suit their needs, while having fun in the
process."
Wells Fargo Securities is the trade name for certain capital markets and Investment banking services of Wells Fargo & Company and Its
subsidiaries, including Wells Fargo Securities, LLC and Wells Fargo Institutional Securities, LLC (WFIS), members of FINRA and SIPC, and
Wachovla Bank, National Association. Wells Fargo Securities, LLC carries and provides clearing services for WFIS customer accounts.
Investments: NOT FDIC Insured o May Lose Value • No Bank Guarantee
form 11C 11.2009 SI,
NOTIFICATION TO BROKER AND CERTIFICATION BY BROKER
PURSUANTTO MINN. STAT. § 118A.04
I. I3rolcc><• Infot•ntafion
1. Name of Kirin: Wells Fargo Securities, LLC
2. Address: (Local) 608 2nd Avenuc South, Minneapolis, MAT 55402-1916
(National)
3, Telephone Number: Local (612) 667-9874 National
4, Primary Representative/MatlaP;er/Partner in charge:
Lymi Cornwell, Vice President (612) 667-9874
Nance and'I'ltle Telephone Number
11. Statement of Investment Restrictions;
To: Wells Fargo Securities, LLC (name of broker)
The investments of the Ct of Otsego, MN (name of govertuttent entity)
must complyil g ith (lie requirements of Minn. Stat §§ 118A,04, t 18A.05 and 118A.06.
(signe y ofiicial of local gove ent) (date)
11.1, Statement of Additional Investment Restrictions; (fill III If applicable)
Further be advised that the City of Otsego, MN (name of government em(ity)
restricts its investments its provided;
[VI in the attached Investment Policy
[ ] in tho attached resolution(s) of the governing body.
the City of Otsego, MN (nlutle of government clttity; will Provide
to the broker es of any chat ges to the Additional Investment Restrictions identified herein.
(Slg11c&by otTiolal of local gover tent) (date)
1V. Certification
We agree to conduct your investutcnt transactions in accordance with Minn. Stitt §§ 118A,04,
118A,05 an 118A.06 and th rovisions ol'any Additional Restrictions set forth in Section III above.
(signed by authorized representative of broker) (dote)
Prior to completing an initial transaction with it broker, and annually thoreatlor, this form must be completed.
See instructions.
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2015-47
RESOLUTION ESTABLISHING ADDITIONAL INVESTMENT BROKERS FOR CITY FUNDS
WHEREAS, the City of Otsego must, each year, designate official depositories for City funds
and approve the investment brokers to be used for invetment of City funds in accourance with
the City's Investment Policy and Minnesota Statutes 118A.02; and
WHEREAS, Resolution 2015-02, adopted January 12, 2015, specifies that the Administrative
Services Director, (now Finance Director) may recommend additional depositories, brokers or
other repositories for City funds during the coming fiscal year.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
OTSEGO, WRIGHT COUNTY, MINNESOTA THAT:
Wells Fargo Securities, LLC is hereby designated as an approved investment broker for the
purposes of investing idle cash funds of the City.
ADOPTED by the Otsego City Council this 14th day of September, 2015.
ATTEST:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
MOTION made by Council Member and SECONDED by Council Member
IN FAVOR:
OPPOSED: