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Item F2 LAND AUTHORITY GOVERNING BOARD AGENDA ITEM SUMMARY Meeting Date: February 19, 2014 Division: Land Authority Bulk Item: Yes No X Contact/ Phone #: Mark Rosch /295-5180 Agenda Item Wording: Approval of a resolution reaffirming authorization for participation in the Local Government Surplus Funds Trust Fund (Florida PRIME) and amending Resolution 05-1989. Item Background: The Local Government Surplus Funds Trust Fund is a public funds investment pool administered by the State Board of Administration (SBA). The governing board of the SBA consists of the Governor, the Chief Financial Officer, and the Attorney General. The Land Authority began investing its surplus funds in the pool in 1989 but has discontinued doing so since 2007 after the pool experienced insufficient liquidity. The insufficient liquidity resulted from concerns about the presence of distressed mortgage-backed securities in the pool's investment portfolio. In 2007 the SBA divided the pool into two funds, Fund A and Fund B, to isolate the distressed securities. The vast majority of the pool's securities were of high quality and were moved to Fund A, which was subsequently rebranded as Florida PRIME. The distressed securities were moved to Fund B where they are maturing and being liquidated over time. To date, 95.5% of Fund B's original principal has been distributed back to the investors. Since 2007 the SBA has made significant improvements to the operation and management of Florida PRIME, including hiring a specialized outside firm (Federated Investors) to serve as fund manager and adopting new investment policies to provide enhanced internal controls, transparency, and communication. Since the implementation of these measures Florida PRIME has earned and maintained a rating of AAAm by Standard & Poor's, the highest rating available for a local government investment pool. There are currently over 800 participants and over $8 billion of public funds invested in Florida PRIME. The proposed resolution reaffirms the Board's authorization to participate in Florida PRIME and designates the Chairman and Executive Director as Authorized Representatives. Advisory Committee Action: N/A Previous Governing Board Action: The Board authorized participation in the Local Government Surplus Funds Trust Fund in 1989. Contract/Agreement Changes: Designees of the Chairman and Executive Director are no longer identified as Authorized Representatives. Staff Recommendation: Approval Total Cost: $ N/A Indirect Cost: $ Budgeted: Yes_ No Cost to Land Authority: $ N/A Source of Funds: N/A Approved By: Attorney X County Land Steward Documentation: Included: X To Follow: Not Required: Disposition: Agenda Item RESOLUTION NO. A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY REAFFIRMING AUTHORIZATION FOR PARTICIPATION IN THE LOCAL GOVERNMENT SURPLUS FUNDS TRUST FUND (FLORIDA PRIME) AND AMENDING RESOLUTION 05-1989. WHEREAS, the Monroe County Comprehensive Plan Land Authority (hereinafter "Participant"), is a land authority pursuant to section 380.0663, Florida Statutes; and WHEREAS, pursuant to section 218.415(17)(a), Florida Statutes, Participant is authorized by the State of Florida to invest or reinvest any surplus public funds in its control or possession in the Local Government Surplus Funds Trust Fund (Florida PRIME); and WHEREAS, the Local Government Surplus Funds Trust Fund (Florida PRIME) is a public funds investment pool created pursuant to section 218.405, Florida Statutes, and is administered by the State Board of Administration; and WHEREAS, pursuant to section 218.405(2), Florida Statutes, the Local Government Surplus Funds Trust Fund (Florida PRIME) primary objectives, in priority order, of investment activities are safety, liquidity, and competitive returns with minimization of risks; and WHEREAS, Participant's Resolution 05-1989 authorizes participation in the Local Government Surplus Funds Trust Fund; and WHEREAS, Participant desires to reaffirm that it is in the best interest of the Participant to invest its surplus funds in the Florida Local Government Surplus Funds Trust Fund (Florida PRIME) and to amend the Authorized Representatives identified in Resolution 05-1989; NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY: Section 1. That Participant approves this Authorizing Resolution and the establishment of an account in its name in Florida PRIME for the purpose of transmitting funds for investment in Florida PRIME. Section 2. That the individuals whose titles are Chairman and Executive Director are Authorized Representatives of the Participant and are hereby authorized to transmit funds for investment in Florida PRIME, withdraw funds, execute a Disclosure Statement and a Participant Account Maintenance Form (PAMF), and take all other actions Page 1 of 2 deemed necessary or appropriate for the investment of the Participant's funds. Said Authorized Representatives may submit a revised PAMF without the necessity of completing a new Authorizing Resolution provided said revised PAMF is consistent with this Authorizing Resolution. Section 3. That this Authorizing Resolution shall continue in full force and effect until amended or revoked by the Participant and until Florida PRIME receives an original document of any such amendment or revocation. PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a meeting on this 19th day of February, 2014. Chairman Heather Carruthers Commissioner Danny Kolhage Commissioner Sylvia Murphy Mayor George Neugent Vice Chairman David Rice (Seal) ATTEST: MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY Mark J. Rosch Heather Carruthers Executive Director Chairman Approved as to form and legality: Adele V. Stones, Esquire Page 2 of 2 FIL( C'. TM ...' PRIME AN INVESTMENT SERVICE FOR PUBLIC FUNDS Disclosure Statement For Participation in the Local Government Surplus Funds Trust Fund (Florida PRIME) This Disclosure Statement(the "Statement") is made and entered into by and between the State Board of Administration of Florida (the "SBA") and (the"Participant"). WHEREAS, Chapter 218.405, Florida Statutes, creates a public funds investment pool to which any local government of the State of Florida may delegate,by Authorizing Resolution,the authority to hold legal title as custodian and to make investments purchased with local surplus funds; WHEREAS, the SBA is authorized pursuant to Chapter 218.409, Florida Statutes to receive, transfer, and disburse surplus money and securities belonging to"units of local governments"of the state(as defined herein); WHEREAS, the Local Government Surplus Funds Trust Fund (Florida PRIME) is a public funds investment pool, which funds are invested in certain eligible investments as more fully described in the enrollment materials; WHEREAS,the SBA is authorized pursuant to Section 215.44, Florida Statutes to invest the funds of state agencies,state universities and colleges and direct support organizations of any of the foregoing in Florida PRIME; WHEREAS,the Participant has determined that it is authorized to invest in Florida PRIME created under the Florida Statutes and has adopted the required Authorizing Resolution to permit the SBA to invest and reinvest funds of the Participant in Florida PRIME; WHEREAS, the Participant acknowledges that the SBA is not responsible for independently verifying the Participant's authority to invest under the statutes; WHEREAS, the Participant acknowledges that the performance of Florida PRIME is not guaranteed by the State of Florida, the SBA or any other governmental entities;and NOW THEREFORE,for and in consideration of the mutual promises,covenants and agreements herein contained,the receipt and sufficiency of which are hereby acknowledged,the parties hereto agree with each other as follows: The Disclosure Statement. The Participant must execute this Disclosure Statement, an Authorizing Resolution and a completed Participant Account Maintenance Form designating person(s)to serve as Authorized Representatives of the Participant before depositing any funds into Florida PRIME. Acknowledgement of Disclosure.The following signatory is a duly appointed,acting,and qualified officer of the Participant,who, in the capacity set forth above is authorized to execute this Statement. Further the Participant hereby acknowledges receipt and review of these enrollment materials which includes the New Participant Enrollment Guide,Authorizing Resolution,this Disclosure Statement, Florida PRIME Investment Policy Statement, applicable Rules, and other historical financial information also posted on the Florida PRIME website. At the SBA's discretion, modifications to these documents may be posted on the Florida PRIME website. The Participant will have up to 45 days to withdraw their funds from the Florida PRIME or the modifications will be deemed accepted by the Participant. PARTICIPANT NAME: DATE: SIGNATURE: TITLE: PRINTED NAME: EMAIL: ©Copyright 2012 State Board of Administration(SBA)of Florida LAND AUTHORITY MONROE COUNTY RESOLUTION No. 05-1989 A RESOLUTION AMENDING RESOLUTION 04-1989 APPROVING THE PLACEMENT OF FUNDS INTO THE LOCAL GOVERNMENTS SURPLUS TRUST FUND INVESTMENT POOL AND CLARIFYING THOSE PERSONS AUTHORIZ$D TO TRANSMIT SUCH FUNDS. WHEREAS, The Monroe County Land Authority from time to time has funds on hand in excess of current needs, and WHEREAS, it is in the best interest of Monroe County and Its residents that funds be invested to return the highest yield consistent with proper safeguards, now, therefore, HE IT RESOLVED AS FOLLOWSe 1. That the Chairman and Executive Director or their designees are hereby authorized to transmit such funds to the State Board of Administration to be invested according to applicapable laws of the State Of Florida, consistent with the needs of the Monroe County Land Authority. Such authorization includes the authority to withdraw funds from the State Board of Administration by giving timely notice and appropriate confirmation. 2. That this authorization shall be continuing in nature unless revoked by the Monroe County Land Authority. PASSED AND ADOPTED at a regular sweating of the Monroe County Land Authority held on the 30th day of August, A.D. 1989. Monroe County Land Authority By i:/ i Eugene R. .y tan, Chairman ATTE$T; �i �� Paul R. Mick Executive Director Approvrwdq�W Lega 8u ciency By Cunningham, Albritton, Lanzi, Warner, Bragg, & Miller, P.A. MONROE COUNTY LAND AUTHORITY RESOLUTION NO.04-1989 A RESOLUTION APPROVING THE PLACEMENT OF FUNDS INTO THE LOCAL GOVERNMENTS SURPLUS FUNDS TRUST FUND INVESTMENT POOL WHEREAS, THE Monroe County Land Authority from time to time has funds on hand in excess of current needs, and WHEREAS, it is in the best interest of Monroe County and its inhabitants that funds be invested to return the highest yield consistent with proper safeguards, e NOW THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. That the Chairman, Eugene R. Lytton, Sr. and Executive Director, Charles G. Pattison, or his/her designee, be, and he/she is hereby authorized to transmit such funds to the State Board of Administration to be invested according to applicable laws of the State of Florida consistent with the needs of the Monroe County Land Authority. Such authorization includes the authority to withdraw funds from State Board of Administration by giving timely notice and appropriate confirmation. 2. That this authorization shall be continuing in nature until revoked by the Monroe County Land Authority. THIS RESOLUTION INTRODUCED AND ADOPTED by the Monroe County Land Authority at its regular meeting on the 23rd day of May, 1989. see 9q� Monroe County Land Authority 4 By: c (Seal) � � Eugei R. on, Chairman 'I ATTEST:-� ','�,'vLX gin; Charles Pattison, executive Director Approved for Leg Sufficiency By: - Cun�am, Albritton, Lenzi, Warner, Bragg & Miller, P.A. , Legal Counsel r � �