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1f. Despoitory Designation, Investment Institutions CI TYOF / A...._ 0. , TP 1 CHANHASSEN 410 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 II (612) 937 -1900 • FAX (612) 937 -5739 I MEMORANDUM TO: Mayor and City Council I FROM: Don Ashworth, City Manager II DATE: January 27, 1992 SUBJ: Official Depository, Expand Authorization to Include li Investment Institutions At our last meeting, the Council acted to authorize the Chanhassen I Bank as the official depository for the city. Although the Chanhassen Bank handles all of our checking/ receipting /daily accounting activities, they neither have the resources nor the 1 legal ability to handle the city's ;overall investment portfolio. For the past several years, the city has used the services of Shearson Lehman Brothers, Prudential Securities, Inc., Paine I Webber, Inc., and the Chanhassen Bank as account managers for the city. The attached resolution extends the official depository designation to include these four firms as authorized corporations to help manage the city's investment portfolio. I would like to use this opportunity to extend my support and appreciation for the work completed by our Finance Department in II managing the overall financial affairs of the City of Chanhassen. The Council is probably sick of me continuously referring to the fact that we operate 150 businesses You've probably heard too many times about the necessity to maintain individual accounting I for each of these businesses and have beard me . reiterate the necessity of not intermingling dollars from one business with another. At times it becomes difficult to understand why we cannot I use the $800,000 recently earned through our debt refundings to pay costs for a public improvement project or to reduce the costs of police activities, but we cannot - would be illegal to do such. U Three documents have been included in this packet supporting the importance of the work of our Finance Department and their excellence: 1 - Audit Rankles Forest Lake: The laws governing municipal finance and allowable activities is explicit and extensive. It is often difficult to appreciate the 1 1 tio, PRINTED ON RECYCLED PAPER 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11 Mayor and City Council January 27, 1992 Page 2 expertise you have until a severe problem occurs, such as - occurred in Forest Lake; and Letter to Ben Gowen: One of our residents, Ben Gowen, recently approached the Mayor asking if Chanhassen was ' one of the cities which had lost significant dollars through improperly managing their funds (see attached article). My letter to Mr. Gowen states that Chanhassen ' was not one of those cities. Again, it is difficult to appreciate what you have until after a disaster. The people Beaumont, Texas can attest to this fact as they, along with approximately 20 other cities nationwide, lost over $10 million each in the "Florida Exchange Fraud" of approximately 4 -5 years ago. Ironically, the current fraud which will deprive Marion, Iowa of approximately $4.3 million occurred as a result of their participation in the Iowa League of Municipalities investment pool. The legal liability of the potential loss could become ' extremely complex in that the League sees itself as solely an advisor and not really having assets/ liabilities if their advice /investment vehicles crash. By contrast, Marion entered into those agreements ' believing that their individual city would be better protected and gain higher yields by using the expertise of a larger organization. In my own mind, the fiasco proves the point that "bigger is not always better "; and Investment Detail Memorandum - Finance Department: The City of Chanhassen, as the overseer of the assets of the 150 businesses, is one of the largest businesses within the community. The Finance Department memorandum graphically portrays this statement with totals reflecting that total investment activity in 1991 approached $50 million, with investment earnings totalling exceeding $1 million. I have asked our Finance ' Department to ensure that each of your individual 1099s include the $1,123,478 in the box "other earnings." ' Again, I congratulate the Finance Department for their excellence. [P.S. The 1991 books will close within the budgetary limits established by the City Council - -a statement not often made by ' cities, counties and school districts given our current economy. A bigger, but not better organization (the State of Minnesota) assuredly will not make this same comment (current $400 to $500 million deficit).] Approval of the attached resolutions is recommended. 1 I '. • Star Tribtaie 1 : a. 1, .� , l., it k e_. • , Thur i 'ti._ .' '. I { January 2 /1992 � : _ ; 4 ,, r . - B sec tion begins on page 5B .1 Read then recycle ikek . , . �u�rn School district, auditor ask state office to investigate - James Walsh • Staff' Writer Continued hunt pate IB charge, Anderson said. Maloney said that Anderson even '" , 1 ° suggested where the district should Abnuai financial audits often bring Brynildson denies using the old tires. if more accounting work was needed. Brynildson denies it. Maloney said buy materials and advised that the vltwns 10 school board meetings, but The district's attorney said Ander- ( she has asked Anderson for names district sell a parcel, of land to in- m the Forest Lake School District a son's charges are "from left field." The school board, on the advice of its and proof of the transaction, without crease its tax base. "Mr. Anderson's hew auditor has leveled charges of Ann McIntosh, assistant state audi- attorney, Patricia Maloney, voted response. report was unusual, to say the least," Qlismanagement, illegal practices and tor, said the plethora of charges and against paying extra. On Dec. 16, - she said. poor financial control against school countercharges is pretty uncommon Anderson gave his report to the "If that were the only thing that were bfflcials. ' in the school auditing game. board and the public. wrong, we wouldn't have even And she questioned his motives. ehool district leaders say the alleged brought it up," Anderson said. k „ Y after "For me, it's fairly uniqut;' she said. Tops on his list of irregularities are "You have to ask yourself, `Why is irregularities surfaced only after McIntosh said state investigators are the copying machines, which the dis- At the high school, the principal and the auditor ' 'ho_ was hired to audit they refused to pay the auditor an interviewing people 10 determine if trict bought but listed as leased assistant principal cashed personal for fiscal year 1991 searching back to additional SS,000 for his services. any action is necessary. She doesn't equipment. "That's a no-no," said checks from the school's activities 1986 for records of a tire purchase — Both sides, hoping for vindication, know how long the inquiry will take. Anderson. Maloney said the practice fund without adequate bookkeeping, only after his request for additional was a "technical mistake" and has he said. He has also raised questions money was denied?" • W It all started in May, when the Forest been changed. about mileage claims and other reim- have asked the state auditor's office Lake school board voted to hire Al- bursement for the superintendent. But Anderson, a former accountant to investigate. "The credibility of the A district receptionist last fall stole for the U.S. General Accounting Of- sehool district is at stake right now," • -- - --- –. - -.-.- , about $ 170 from a file cabinet that Maloney said the check - cashing was fice and the IRS, said he was just said Richard Tschida, a Forest Lake len J. Anderson & Co. Ltd. to handle contained cash collected for use of not illegal but has since been doing his job. school board member. the 1990 -9j audit, The district the district's swimming pool and ice stopped. switched to Anderson from another arena. Anderson said the money sat "If anybody had any questions about Auditor Allen Anderson's charges in- firm after he submitted a proposal to in the cabinet for long periods of Brynildson said this year was the our integrity or intent, it will be elude district violations of state bid- do the job for $8,900, about $6,000 time, without regular deposits. only time in 10 years of audits that cleared up by the state auditor," he ding rules in the purchase of several less than it paid another company the j School officials say that the money anyone found anything wrong with said. "Besides, I would have loved to copying machines; weak internal year before. . , was always deposited the next day district procedures. "So many of have found nothing wrong. Then I controls that allowed a district em- and that the theft was discovered these things are without merit he would've done their audit for the ployee to steal money last fall, and Anderson told school officials that he immediately and the woman was said. next 10 years." Superintendent Gerald Brynildson's had found irregularities in their fi- I caught. - 1 buying new tires for his district - r. nancial procedures and that he need- vided car and putting the old tires on I ed $5,000 more to complete his in- Next are the tires, which Brynildson • "- 4aughter's car. vestigation. His agreement with the bought in,1986. Anderson, who lives S; district allowed additional payment in Forest Lake, said he went to the tire dealer after he was approached Forest Lake continued on page 4B by a town resident. The dealer con- firmed that he had put the old tires on Brynildsdn's daughter's car at no — NM r 111111 INI1 En MN IIM NM MI MN N UN 111111 NM M MI MB .I I' _ CITYOF . CHANHASSEN 11 , 4101iiiir II 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 II December 24, 1991 II Mr. Benjamin Gowen 6440 Hazeltine Blvd. II Excelsior, MN 55331 Dear Mr. Gowen: II Mayor Chmiel provided me a copy of the article you had given him labeled "Alleged Fraud Shakes Towns in Many States." First, the City of Chanhassen has not previously nor is it currently investing I any monies with "Institutional Treasury Management." The City of Chanhassen does competitively seek quotes on all of our investments; however, no investment is considered which is not II backed by the State of Minnesota, United States Government, or is collateralized by one of these instruments in an amount equalling 110% (germane for certificates of deposit). Although I have had Councils who have previously desired the city to be more aggressive I or more conservative, I have found that being competitive while maintaining a 100% default protection is the best long range investment strategy.for our city. ' £ 4 II I will share your article and this response with the City Council. Should you have additional questions, please feel free to contact I me. l Sincerely, V. .: '° 1 = -ate ° <. . Don Ashworth City Manager , A -:� E." -- DA: v 1 p : Mayor and City Council Cliff Hoffman, Deloitte and Touche, City Auditors I Roger Peterson, Association of Metropolitan Municipalities Roger Knutson, City Attorney s et LW PRINTED ON RECYCLED PAPER I i :Alleged Fraud • :Shakes Towns I -` In Many$tates - . -. _ .. _ �,.i 1 '1�,,�'� �7diefi��gsstb.�SearsmL�nin t r {1 pA , �t %.w. c m�s 'Brothers Inc. unit, how with money was I 1 Wms'ssrtgrAt. i in Okay's secant T4 answer: id mil- ` 2ie .mmicipalltissin Satates , � Fraud S � ) or fine De about m d shat should risk d J and at beet ti aanion „����} The agency duped ep its bn [atlon. I an s a tram • m !tulle, talk any .1n . tad in late November dboourtd mat me vAttthe ea t e - : SU million was back In Ithrshalitown's • At the daa the !Wilk* ma Es• - ” ' ` ° .�' Mather hnes�attm a tb t f'.i Crmmbdm ti , 2 0eral •atr1ct r - r e•M A , million had Gem transferred nom Mr. b s al Matti ed tra he aaaiee mu - yaydai i•sWmbai a antic- ntic- Rymer's permed account and million 0 e imbed. the kunst Melds all shad been paid by making shat the SEC lion-li�M s th eD e Steamer! wade Its El be M Boas, add f4. !>ed ut*. err• mkt were b'aadr ant transactions fa the !sole ana, ladders D. lleymer. SEC_ df1• MI amp Is the SEC, mount' et lineament That d Colorado rads atold the alleged the bads, bead hr roe WS that XX go estt• and mill n three isern tRk d the dr. bat the e ad ahaosor ties a the state ideated with Ieatlmtlmti Ink the EEC aId• attorney called th e cam the era. last A Ira a►Y. n di n g about et el the date's "she wait was a Tart lm money' once atld e e "alaadatsYa le Mace for es." ankh the day used as a a - '�'boaE C der ' ' • ♦ lawyer Kr . X • Wyma old M , llbeheel alga a000hmt, • s arihaDtown's Ms. ytltutiontl Denman* hiadrtds d to llherlb. airs his diem We offered to settle t nnNeem d>be aatd her etty has done �authoisd walsaetlosr and ohm tho fart et the s ease In which, whhoid badness with the =omit firm for more tiptoed aoandoesHat cored Amos Yl ad sr d wrorld�[' ie tag four ors without a lint d trouble. Alm other accounts to make op the W ald a at m **le hw n seemitles s Ma town ha about d7MIO beers In • In Midas, the sissy mkt le the Allure. But Mr. Pals aid that Mr. the wait, Arm toot td atQdod In Rosary wad wf paying forge riots ere KW bk 10 PLY a NNW b fro- vd OM w d merle rephuehaee • them a nd used the soda nother di- en ash! IDmeytkt data di- • 'She oam_Wbn's sIIeptoas relate ta sell Treaury h secedes to laitlhttimal ants' accounts. • The funds bens arm city add state ft- • fraction of the imas MOW manage llasoty fe m o w a each aim an agree• ieaoeial sab ritles orb[, pular meat," Mr. tladb old. In addition. seem b bay them back. The trait pierced .:hrty In Iowa, where mint' spat govern- "there as no allegation that Hr. Wymer the aecar*des with Bankers 'rust Co. of meats have placed bads with Bar. Wymer. idullatePttlied the =Dry far has der" Iowa in Des Moines, elter,whim the Cali- ' tore the aracrtlies but didn't I The Waterloo 1 office Err ie Iowan Department *weft Than Is so alietation of loaner 13 tomb as Eris account, a hr. Wynart pocket at pay the MS m4Dlon. the aid. Mr. 10 Lion b n t ought to t Salad let money Wish to a h home. to the end 1 don 'tthbk Wow. this acid the mama mama the aeeacy ears. Clerks and otthh rD ether employees In north- 100 t why ft sought tIke aaonrsiaa will be able to prove that slimed, end howled the funds into Wier to meset et 1 tosay i p war oy KO parole ash• oney 110. Timer Ind the beads ace Ids Owl am cleat accounts: that would indicate that eat d *010 The state dewed an �4 ` foe 1�taticdal Treasury mat wort bathe made cep finch Iowa 'We she ' loan to nova the pq'eh ," add d add company officers were meeting with Rua tesmemm. darter, ce damn Marshalltown, ai tie EEC wed had no hnmsdlate ormtamt yaw van Sklar!, a Des Moines attor ll of er e re l s a slae of an the suet freeze. lei' represmtlng the Iowa Trutt, said In- Iowa. "AD d as Gov. Terry are In e dated albs d hoitldhtbotl Treasury, farraerlY nand antional Treasury had been hired be- an coercion lows meeting d f state De Mn A Co., kept a low profile In South- mu •1n. e d tract Nord e t produdoe flood ye day d tm me ate officers era California money-management d blew- 7f •" Ile aid d about M million in v*4ga yesterday ; wad aid at f what a m 10- , None d the Bar=e Loh Mertes moeeyman- lbws funds invested, about IM mil- • mga d and and serna d all t hewn- anon camels Turfed std they had *t Dan was miming. Tim balance peaanabty acted Richard Breeden, the mew wa do him why. The drib updates the SEC's acid he had h eard d the firm• The Ball Honey Market le available fa the affected governments a sa ehletur d P�easlan Funds describes the aid agmedes to tap. • _ . m the sacs hour . •• dratmdrivm Isetl the cant-ordered freeze wDl tee is The cue is a graphic demonenstim et ,eat asset allocation strategy to b4' add sell Net yam a nt may mama whim a re- the e risks Individual and flsaa:done true- us. Tracery eseurides le the Nie to. atver. Angela lawyer Robert arbor tors face when they chase higher yids to � security sector: will try to determine where the tends are. matter piwnmetlor interest rates. Betio The. mad egregious scheme sEepd by Hr. Cuban couldn't be seamed fa door tlasa Tr'eaany adverted that it sus aide •dk SEC concern the acoamt d Marshal amt produce Prod ticabOd gat returns by kneel- Ion, Iowa, which invested 510 mace with lb town to Iowa. maths b whim mu tag in Treasury Beau des, the SSC said in Ydstlmtional Treasury. The SIC tries to re• w ieNwlitts busted tamp its salt, b some ads touting MUM a t ater large investment advisers but has a fury err Caftaenta, C Ioeadt% high u a0W. Thtrtriar Tresaay hmdr, Smite budget for such reviews. It hepn waft, financ""""I'm Jr. slab. Teem Dana& the highest - yielding Inatr ament sold by the 'hag at its hearsay during New k�a YES °mamoma, VIr federal goy, carrently a yield yield !bas 'the aroma • - co became the ' army and Florida. � SEC mid. _ m ..,:..0 6elsy added than m we were n r a d . d that the . T.alau4sTa, T also reneged fends tram Micronesia ded, s :Inv t en be to ct wad Maned. ate l �' "- '' ' "' be Sof C. 6otlseiheLr M Los • n as e l colum i with old its andrBWed to UM ahead. "Dan Dorton, A Today, a ymer lal eon for s atgnmts rete:led only USA Tbuy, Mr. Wyma calm hued= " e One or two options transactions a month. • gold Westmont m el the [ ihem''the white the EEC said there were headredeof M.A. Hama Sett purchase gold ark.. Iowa, d the 1110e " Pa rch aamaeans our the pad two years. CLEVELAND-SLA. Hama Ow add itfartae. Iowa, a fawn of Kale liar G1e ,, , agreed to buy the colorant and addlti • 4 be c Rapids invested pro e t li Marts , „ .. , ,,. `1TT,; ^;tt< -}a Aar- t .. nit d Alpo N.Y. a chemical company +hearse d the ptambe d higher 7lddc , „ swathe a sewratee based b the Netherlands. Terms weren't than were available in certificate al de- pant in bat banks, mid Was A. Weise& custodians. Rehm Sauna Ir. and dbcioied v - While ' lefty la m lance director. "hey was least - is menage point New That's what , -- — - • ' - — - - - -- - - l }i e Mr. Kr. he olds. Nebo add Ms teaiietna .. , ,tt"� '•:doesn't face any Immediate financing - • ?problems, he said "long -ranee comwsetdaa 4 Woke ar largr'dolar squirmed par '•chases that this money was earmarked :gar” may be afeaed. '7t depends if the ;looney is recoveeabie." The SEC aid that abom teaks or I i;thrafts also were some d Institutional at which were smal atla water and parts departments 1 and school districts. Many pooled their Ands tato such entitles as the Iowa Rust and the Ise anent Bait et Ctoesdo. ' whim m basted basted a a pool While the agency wouldn't 10s ' el- t 1 • CITYOF CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 1 (612) 937 -1900 • FAX (612) 937 -5739 1 MEMORANDUM 1 DATE: January 23, 1992 TO: Don Ashworth, City Manager -4 ' FROM: Tom Chaffee, Data Processing Coordinator SUBJECT: City Investments ' As interest rates continued to decline through 1991, we continued our more aggressive strategy and as a result have earned significantly better than might have been anticipated. I have attached my initial 1 "investment yield summary" as of December 31, 1991, which shows in summary form, how well we actually performed. This summary report is prepared from the actual detail investment activity and uses comparison rates from each detail instrument based on the date of purchase and duration. ' As we continue our more aggressive investment strategies, in our con- tinuing effort to achieve the best possible results, it is imperative that we maintain strong working relationships with the brokerage firms ' we are currently working with. The resolutions in the current Council packet (1/27/92) will help solidify our position and assure the con- tinued excellent environment. 1 1 1 1 1 ' to., PRINTED ON RECYCLED PAPER CITY OF CHANHASSEN I INVESTMENT YIELD SUMMARY AS OF 12/31/91 1 CHANHASSEN BANK : CHECKING, C.D.'S, T- BILLS, REPOS -- COMPARISON RATES /RETURNS -- COUNT TOTAL COST TOTAL RETURN 90 DAY TREAS DIFFERENCE 35 22,384,602.32 256,645.99 259,271.42 - 2,625.43 1 DAYS COST HELD RETURN YIELD I AVERAGE : 639,560 63.5 7,332.73 6.4999% PRUDENTIAL SECURITIES : JUMBO C.D.'S, C.M.O.'S, RENICS, FLOATERS COMPARISON RATES /RETURNS III COUNT TOTAL COST TOTAL RETURN 90 DAY TREAS DIFFERENCE CHAN BANK DIFFERENCE 67 12,422,023.27 706,956.15 267,600.99 439,355.16 260,931.99 446,024.66 1 DAYS COST HELD RETURN YIELD I AVERAGE : 185,403.32 137 10,551.58 14.9548X PAINE WEBBER, INC. : TREASURIES, C.M.O.'S, RENICS, FLOATERS I COMPARISON RATES /RETURNS COUNT TOTAL COST TOTAL RETURN 90 DAY TREAS DIFFERENCE CHAN BANK DIFFERENCE 28 11,875,730.11 413,766.87 205,515.82 208,251.05 201,178.54 212,588.33 1 DAYS COST HELD RETURN YIELD AVERAGE : 434,134.21 93 14,777.39 13.1762% 1 SHEARSON LEHMAN : JUMBO C.D.'S, ZEROES COMPARISON RATES /RETURNS I COUNT TOTAL COST TOTAL RETURN 90 DAY TREAS DIFFERENCE CHAN BANK DIFFERENCE 6 543,742.68 22,671.09 13,642.43 9,028.66 13,300.35 9,370.74 1 DAYS COST HELD RETURN YIELD 1 AVERAGE : 90,623.78 137 3,778.52 10.9562% The above numbers represent actual activity summaries since September 1, 1990 from the PAINE, PRUDENTIAL and SHEARSON portfolios and since January 1, 1991 from the CHAN BANK. KEY POINTS : 1. The CHAN BANK portfolio represents entirely short-term liquid funds including the city checking account vhich is interest bearing but only at adjusted short -term rates. 2. The PRUDENTIAL, PAINE WEBBER, and SHEARSON portfolios represent-investment in longer 1 term securities and some trading activity of them. 3. Our change in investment strategy has returned $667,983.73 more than vould have I have been realized under the old strategy since September 1, 1990. 1 e /4-,? , CITY OF CHANHASSEN ' CARVER AND HENNEPIN COUNTIES, MINNESOTA RESOLUTION Date: Resolution No. ' Motion By: Seconded By: RESOLUTION 1 WHEREAS, the City wishes to engage the services of Prudential Securities Incorporated for the purpose of the purchase and sale of 1 exempted securities (as that term is defined in the Securities Exchange Act of 1934, as amended). ' NOW, THEREFORE, BE IT RESOLVED, by the Chanhassen City ' Council: 1. That an account be opened by the City of Chanhassen with Prudential Securities Incorporated (hereafter referred to as PSI), members of the New York Stock Exchange, and of the other stock exchanges, to purchase, sell, and /or deal in any and all investments which the City is authorized ' by statute to purchase, and that all orders and instructions, written or oral, upon said account be given by the Chanhassen City Manager /Clerk and /or his designees. 1 2. That the Chanhassen City Manager /Clerk and /or his designees be and hereby authorized and directed to ' execute and deliver on behalf of the City of Chanhassen any customer's agreement required by PSI, and to enter into, execute and deliver, any and all other agreements, documents, releases, and writings that may be required ' by said PSI for the opening and /or continuing of said account in connection with any transactions relating to said account or to any securities, moneys, or other ' property of the City of Chanhassen, whether or not in said account; and 1 1 1 1 1 1 3. That until PSI shall receive due written notices of change or rescission of these resolutions, said PSI 1 may rely upon the authority contained in these resolutions as continuing fully effective, and said PSI may rely upon any certified copy resolutions, specimen signatures, or other writings, signed on behalf of the City of Chanhassen by the Chanhassen City Manager /Clerk and /or his designees; the acceptance of any other form of notice shall not constitute a waiver of this provision; and 4. That any and all orders and instructions heretofore given said PSI on behalf of the City of Chanhassen by the Chanhassen City Manager /Clerk and /or his designees, are hereby in all respects ratified, confirmed, and approved; and 5. That the foregoing resolutions and the certificates actually furnished to PSI by the Chanhassen City Council, be and they hereby are made irrevocable, and shall be fully effective as to any transactions for - the account of the City of Chanhassen notwithstanding that the account may have been temporarily closed or inactive, until written notice of the revocation thereof shall have been received by PSI. 1 ADOPTED by the City Council of the City of Chanhassen this day of , 1992. 1 ATTEST: 1 Don Ashworth, Clerk /Manager Donald J. Chmiel, Mayor 1 1 1 1 1 1 1 r ► CERTIFICATION STATE OF MINNESOTA ) ( ss. COUNTY OF CARVER I, KAREN J. ENGELHARDT, duly appointed, qualified, and acting ' Deputy Clerk for the City of Chanhassen, Minnesota, do hereby certify that I have compared the foregoing copy of Resolution No. with the original copy, now on file in my office, and have found the same to be a true and correct copy thereof as approved ' and adopted by the Chanhassen City Council at a meeting duly called and held on the day of , 1992, and that the said resolution has not been modified or rescinded and is still in full ' force and effect. I do further certify that the signatures and titles of the persons executing the foregoing resolution are the signatures and ' titles of the persons authorized and empowered to act on behalf of the City of Chanhassen; and the foregoing resolution is in accordance with and does not conflict with the Chanhassen City Code 1 or Minnesota law. I do further certify that the City of Chanhassen is a ' municipal corporation existing and operating under the laws of the State of Minnesota, and has the power to take the action call for in the foregoing resolution. IN WITNESS WHEREOF, I have hereunto affixed my hand and the official seal of the City of Chanhassen at Chanhassen, Minnesota, this day of , 1992. Karen J. Engelhardt, Deputy Clerk 1 1 1 1 1 1 11 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA RESOLUTION , Date: Resolution No. Motion By: Seconded By: , RESOLUTION WHEREAS, the City wishes to engage the services of Shearson Lehman Brothers for the purpose of the purchase and sale of ' exempted securities (as that term is defined in the Securities Exchange Act of 1934, as amended). , NOW, THEREFORE, BE IT RESOLVED, by the Chanhassen City Council: ' 1. That an account be opened by the City of Chanhassen with Shearson Lehman Brothers (hereafter referred to SLB), members of the New York Stock Exchange, and of the other stock exchanges, to purchase, sell, and /or deal in any and all investments which the City is authorized by statute to purchase, and that all orders and instructions, written or oral, upon said account be given by the Chanhassen City Manager /Clerk and /or his designees. , 2. That the Chanhassen City Manager /Clerk and /or his designees be and hereby authorized and directed to execute and deliver on behalf of the City of Chanhassen any customer's agreement required by SLB, and to enter into, execute and deliver, any and all other agreements, documents, releases, and writings that may be required by said SLB for the opening and /or continuing of said account in connection with any transactions relating to said account or to any securities, moneys, or other property of the City of Chanhassen, whether or not in said account; and 1 3. That until SLB shall receive due written notices of change or rescission of these resolutions, said SLB may rely upon the authority contained in these resolutions as continuing fully effective, and said SLB may rely upon any certified copy resolutions, ' specimen signatures, or other writings, signed on behalf of the City of Chanhassen by the Chanhassen City Manager /Clerk and /or his designees; the acceptance 1 of any other form of notice shall not constitute a waiver of this provision; and 4. That any and all orders and instructions heretofore 1 given said SLB on behalf of the City of Chanhassen by the Chanhassen City Manager /Clerk and /or his designees, are hereby in all respects ratified, 1 confirmed, and approved; and 5. That the foregoing resolutions and the certificates ' actually furnished to SLB by the Chanhassen City Council, be and they hereby are made irrevocable, and shall be fully effective as to any transactions for the account of the City of Chanhassen notwithstanding ' that the account may have been temporarily closed or inactive, until written notice of the revocation thereof shall have been received by SLB. 1 ADOPTED by the City Council of the City of Chanhassen this ' day of , 1992. ATTEST: day Don Ashworth, Clerk /Manager Donald J. Chmiel, Mayor 1 1 1 1 1 1 1 1 CERTIFICATION STATE OF MINNESOTA ) 1 ( ss. COUNTY OF CARVER I, KAREN J. ENGELHARDT, duly appointed, qualified, and acting Deputy Clerk for the City of Chanhassen, Minnesota, do hereby certify that I have compared the foregoing copy of Resolution No. with the original copy, now on file in my office, and have found the same to be a true and correct copy thereof as approved and adopted by the Chanhassen City Council at a meeting duly called II and held on the day of , 1992, and that the said resolution has not been modified or rescinded and is still in full force and effect. I do further certify that the signatures and titles of the persons executing the foregoing resolution are the signatures and titles of the persons authorized and empowered to act on behalf of the City of Chanhassen; and the foregoing resolution is in accordance with and does not conflict with the Chanhassen City Code or Minnesota law. I do further certify that the City of Chanhassen is a municipal corporation existing and operating under the laws of the State of Minnesota, and has the power to take the action call for in the foregoing resolution. IN WITNESS WHEREOF, I have hereunto affixed my hand and the official seal of the City of Chanhassen at Chanhassen, Minnesota, this day of , 1992. 1 Karen J. Engelhardt, Deputy Clerk 1 1 1 1 1 1 1 1 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA RESOLUTION 1 Date: Resolution No. Motion By: Seconded By: RESOLUTION WHEREAS, the City wishes to engage the services of Paine Webber Incorporated for the purpose of the purchase and sale of ' exempted securities (as that term is defined in the Securities Exchange Act of 1934, as amended). 1 NOW, THEREFORE, BE IT RESOLVED, by the Chanhassen City Council: 1. That an account be opened by the City of Chanhassen with Paine Webber Incorporated (hereafter referred to as PWI), members of the New York Stock Exchange, and of the other stock exchanges, to purchase, sell, and /or deal in any and all investments which the City is authorized by statute to purchase, and that all orders and instructions, written or oral, upon said account be given by the Chanhassen City Manager /Clerk and /or his designees. 2. That the Chanhassen City Manager /Clerk and /or his designees be and hereby authorized and directed to execute and deliver on behalf of the City of Chanhassen any customer's agreement required by PWI, and to enter into, execute and deliver, any and all other agreements, documents, releases, and writings that may be required by said PWI for the opening and /or continuing of said ' account in connection with any transactions relating to said account or to any securities, moneys, or other property of the City of Chanhassen, whether or not in said account; and 1 1 3. That until PWI shall receive due written notices of 1 change or rescission of these resolutions, said PWI may rely upon the authority contained in these resolutions as continuing fully effective, and said PWI may rely upon any certified copy resolutions, specimen signatures, or other writings, signed on behalf of the City of Chanhassen by the Chanhassen City Manager /Clerk and /or his designees; the acceptance of any other form of notice shall not constitute a waiver of this provision; and 1 4. That any and all orders and instructions heretofore given said PWI on behalf of the City of Chanhassen by the Chanhassen City Manager /Clerk and /or his designees, are hereby in all respects ratified, confirmed, and approved; and 5. That the foregoing resolutions and the certificates 1 actually furnished to PWI by the Chanhassen City Council, be and they hereby are made irrevocable, and shall be fully effective as to any transactions for the account of the City of Chanhassen notwithstanding that the account may have been temporarily closed or inactive, until written notice of the revocation thereof shall have been received by PWI. ADOPTED by the City Council of the City of Chanhassen this 1 day of 1992. ATTEST: 1 Don Ashworth, Clerk /Manager Donald J. Chmiel, Mayor 1 1 1 1 1 1 1 CERTIFICATION STATE OF MINNESOTA ) ( ss. COUNTY OF CARVER I, KAREN J. ENGELHARDT, duly appointed, qualified, and acting Deputy Clerk for the City of Chanhassen, Minnesota, do hereby certify that I have compared the foregoing copy of Resolution No. with the original copy, now on file in my office, and have found the same to be a true and correct copy thereof as approved and adopted by the Chanhassen City Council at a meeting duly called and held on the day of , 1992, and that the said resolution has not been modified or rescinded and is still in full force and effect. I do further certify that the signatures and titles of the ' persons executing the foregoing resolution are the signatures and titles of the persons authorized and empowered to act on behalf of the City of Chanhassen; and the foregoing resolution is in accordance with and does not conflict with the Chanhassen City Code or Minnesota law. I do further certify that the City of Chanhassen is a ' municipal corporation existing and operating under the laws of the State of Minnesota, and has the power to take the action call for in the foregoing resolution. IN WITNESS WHEREOF, I have hereunto affixed my hand and y the official seal of the City of Chanhassen at Chanhassen, Minnesota, this day of , 1992. Karen J. Engelhardt, Deputy Clerk 1 1 1 • 1 •