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Home My WebLink About2018-0515C Resolution Designating Depository Institution signatoriesResolution No. 2018-0515C TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 RESOLUTION NO. 2018-0515C RESOLUTION DESIGNATING DEPOSITORY INSTITUTIONS, DESIGNATING AUTHORIZED SIGNATORIES FOR THE DISBURSEMENT OF DISTRICT FUNDS, PROVIDING FOR ELECTRONIC TRANSFERS OF DISTRICT FUNDS, AND CONTAINING OTHER MATTERS RELATING THERETO STATE OF TEXAS § COUNTIES OF DENTON AND TARRANT WHEREAS, Trophy Club Municipal Utility District No. 1 (the "District") is a duly created and existing municipal utility district created and operating under Chapters 49 and 54 of the Texas Water Code, as amended; WHEREAS, Section 49.156 of the Water Code requires the Board of Directors of the District, by order or resolution, to designate one or more banks or savings associations within the state to serve as the depository for the funds of the District; WHEREAS, the Board of Directors desires to designate depository institutions in accordance with Section 49.156 of the Water Code; WHEREAS, Section 49.151 of the Water Code provides that except as otherwise set forth therein, a District's money shall be disbursed only by check, draft, order, or other instrument that shall be signed by at least a majority of the directors. The statute allows a Board, by resolution, to allow the General Manager, Treasurer, Bookkeeper, or other employee of the District to sign disbursements. The statute also provides that the board may allow disbursements of district money to be transferred by Federal Reserve wire system to accounts in the name of the district or accounts not in the name of the district; WHEREAS, in accordance with the foregoing statutes, the Board of Directors desires to designate banks or savings associations to serve as the depository for the funds of the District; to provide for the disbursement of funds of the District; and to provide for the electronic transfer of funds, all subject to certain limitations specified herein by the Board of Directors herein for the safekeeping and protection of public funds. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THAT: 1. The facts and recitations found in the preamble of this Resolution are hereby found and declared to be true and correct, and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. 2. Designation of Depository Institutions: (a) In accordance with Section 49.156 of the Texas Water Code, the Board of Directors hereby designates those banks and savings associations set forth on Exhibit "A" attached hereto (hereinafter, the "Authorized Depository Institutions") to serve as depositories for the funds of the District. (b) The District's General Manager and Board of Directors are hereby authorized to open and close accounts at the Authorized Depository Institutions. (c) No funds of the District shall be deposited at any of the Authorized Depository 1 of 4 Resolution No. 2018-0515C Institutions in excess of the amounts insured by the Federal Deposit Insurance Corporation unless they are secured in the manner provided by law under the Public Funds Collateral Act (Chapter 2257, Government Code). (d) In accordance with Section 49.156 of the Water Code, the Board of Directors hereby authorizes the following designated representatives to supervise the substitution of securities pledged to secure the District's funds at the Authorized Depository Institutions: John R. Carman General Manager Steven Krolczyk Finance Manager 3. Authorized Signatories for District Accounts: (a) Checks, drafts, and other withdrawal or transfer orders issued against funds of the District on deposit at the Authorized Depository Institutions may be signed only by the members of the Board of Directors of the District and its General Manager, each of whom are identified below: a. Gregory Wilson Director b. William C. Rose Director c. Kelly Castonguay Director d. Stephen J. Flynn Director e. Mark Chapman Director f. John Carman General Manager (b) The authority of all other persons to sign disbursements, transfer or withdraw funds, or otherwise conduct any transactions related to the District's funds is hereby terminated for all purposes. (c) The General Manager is hereby directed to ensure that signature cards for all District depository accounts contain current information and only the names of those individuals authorized to sign disbursements on behalf of the District. 4. Disbursement Authority: (a) General Manager Disbursement Authority. The Board of Directors of the District hereby authorizes the General Manager of the District to sign disbursements of the District provided the following limitations shall apply to such authorization: i. Disbursements authorized solely by the General Manager shall be for an amount equal to or less than $20,000 and must also be signed by at least one (1) member of the Board of Directors; ii. Disbursements in excess of $20,000 must be authorized by the Board of Directors and may be signed by the General Manager and must also be signed by at least one (1) member of the Board of Directors of the District. iii. For an emergency expenditure, disbursements in excess of $20,000 must be authorized by the General Manager and two (2) officers of the Board of Directors. The disbursement of funds may then be signed by the General Manager and must also be signed by at least one (1) member of the Board of Directors of the District and the expenditure shall be ratified by the Board of Directors at the next regular meeting. (b) Other Disbursements. In accordance with Section 49.151 of the Water Code, and except as otherwise provided hereunder, disbursements of the District's funds by check, 2 of 4 Resolution No. 2018-0515C draft, order, or other instrument shall be signed by at least a majority of the directors. (c) Additional Limitations on Disbursement Authority. i. Non -payroll checks made payable to the General Manager of the District may not be signed by the General Manager. ii. Checks made payable to any Director of the District for director's fees or reimbursement of expenses may not be signed by the Director receiving the check. 5. Electronic Transfers: Except as authorized below, the electronic transfer of District funds is prohibited: (a) District funds may be transferred between District accounts only upon prior authorization of the Board of Directors or General Manager. (b) District funds may be transferred for authorized investments, as identified in the District's Investment Policy, only upon prior approval of the Board of Directors or the Investment Officer of the District. The transfer of such funds shall require the written authorization of the General Manager. (c) Principal and interest payments for debt service on District bonds may be made by electronic funds transfer from the District's debt service fund directly to the paying agent's account upon prior approval of the General Manager or Treasurer. (d) Prior notice of all proposed electronic fund transfers to external accounts other than payroll and bond payments shall be given to the Board. (e) Payroll taxes and other payments to government entities that are required to be transmitted electronically are permitted. (f) Payroll direct deposit for staff may be made electronically only upon prior authorization of the General Manager. 6. This Resolution supersedes and replaces all previous resolutions and policies relating to the subject matter hereof. 7. This Resolution shall be effective immediately upon adoption, and shall supersede and replace all resolutions previously adopted by the Board of Directors relating to the subject matter hereof. 8. The staff of the District is hereby directed to take any and all actions that may be required by the Authorized Depository Institutions to implement this Resolution. RESOLVED, PASSED AND APPROVED this the 15th day of ay 2018. ATTEST Sec' eta y, Bard of riir§ctors Presi. - t, Board of Directors 3 of 4 Resolution No. 2018-0515C Exhibit "A" Authorized Depository Institutions Name of Bank Address Town State Zip Prosperity Bank 217 North Main Keller TX 76248 Bank of the West 4100 William DTate Grapevine TX 76051 TexPool 1001 Texas Avenue Suite 1400 Houston TX 77002 4 of 4