City of Oak Creek

Common Council Report

Meeting Date:  08/06/07

Item No.:  15  

Recommendation:  That the Common Council adopt Resolution No. 10783-080607, reaffirming Resolution No. 10677-091906 by restating the authorization of the Mayor and City Clerk to execute documents related to securities registered to the City of Oak Creek through the Equitable/AXA Companies.

Background:  The City had been the holder of approximately 2,250 shares of unexchanged common stock in AXA Financial, Inc. as a result of enrollment with the Equitable Company in the 1980’s to provide an insurance and deferred compensation program.  The City exercised its option to liquidate the stock in September, 2006, and engaged the services of a local stock brokerage firm to handle the transaction.  In order to accomplish the stock liquidation, Resolution 10677-091906 was needed to formalize their authority to act on behalf of the City, and to authorize the Mayor and Clerk to execute various documents needed in the process.   The process to liquidate the City’s stock was lengthy and complex, and has taken nearly 10 months.  Now, as the final transaction is about to be made, the financial service handling the shares for Equitable/AXA has requested an updated authorization.  Resolution 10783-080607 reaffirms the action taken by the Council in Sept. 2006, and is, hopefully, the final Council action needed to finish the entire matter.

Fiscal Impact:  The value of the City’s liquidation of the stock was originally estimated to be approximately $80,000.  To the City’s benefit, to date we have received $106,891, with a small final amount expected when the final transaction is completed.  Funds received are credited to General Fund Miscellaneous Revenues for 2007.

Prepared by and Fiscal Review by: Beverly A. Buretta, CMC City Clerk/Comptroller

Respectfully submitted, Patrick DeGrave City Administrator