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Resolution No. 7806. f , 1 2 3 4 51 CAI 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 7806 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON DELEGATING INVESTMENT AUTHORITY TO THE CITY TREASURER WHEREAS, pursuant to California Government Code Section 53646(a)(2), the City Council approved an Annual Statement of Investment Policy (the "Policy") prepared by the City Treasurer's Office; and WHEREAS, pursuant to the Policy, the City Council approved an investment program and delegated investment authority to the City Treasurer, which granted express authority for a period of time to make investments of City funds in securities with a term, or term remaining to maturity at the time of investment, in excess of five (5) years as part of the investment program; and WHEREAS, on July 18, 2001, the Finance Committee recommended that the City Council approve the recommendation of Bruce V. Malkenhorst, the Director of Finance, dated July 12, 2001, that the City Treasurer be delegated investment authority to invest City funds; and WHEREAS, the City Council desires to expressly authorize the City Treasurer to continue to actively manage the City's portfolio of investments, including, without limitations, the authority to sell any securities prior to the maturity date of the particular security and to make investments of City funds in securities with a term, or term remaining to maturity at the time of investment, in excess of five (5) years. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16' 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby delegates to the City Treasurer, or to his authorized designee, the authority to implement the City's Policy and undertake the City's investment program to manage the City's portfolio of investments and sell any securities prior to the maturity date of the particular security. SECTION 3: The City Council of the City of Vernon hereby delegates to the City Treasurer, or to his authorized designee, the express authority to invest in securities with a term, or term remaining to maturity at the time of investment, in excess of five (5) years. SECTION 4: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 18th day of July, 2001. ATTEST: BRUCE V. MALKENHORST, City Clerk EONIS C. MALSVRG, Ma r - 2 - 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 7806, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, July 18, 2001, and thereafter was duly signed by the Mayor of the City of Vernon. BRUCE V. MALKENHORST, City Clerk (SEAL) - 3 - SUPPORTING DOCUMENTS CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro—Tem WM. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator / City Clerk FAX (323) 581-7924 July 11, 2001 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 Mr. Bruce V. Malkenhorst City Administrator City Of Vernon 4305 Santa Fe Avenue Vernon, California 90058 EDUARDO OLIVO City Attorney FAX: (562) 927-8722 KEVIN WILSON Director of Community Services & Water FAX: (323) 588-2761 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 583-1983 STEVEN E. PARKER Fire Chief FAX: (323) 581-1385 BRUCE W. OLSON Police Chief FAX: (323) 583-5236 Re: City Council Delegation of Investment Authority to City Treasurer Dear Bruce: I recommend the City Council approve the attached resolution to grant you the authority to make investments in securities with terms to maturity in excess of five (5) years. This authority was expressly granted to you as part of the City's investment program by the City Council in Resolution No. 7708, which approved the City's Annual Statement of Investment Policy. I believe it is prudent for the City Council to regrant this investment authority every three (3) months, pursuant to Government Code Section 53601. All local agencies' investment practices are now subject to review by the California Debt and Investment Advisory Commission (the ""Commission"). The City must submit some of its quarterly investment reports and investment policy to the Commission every year. It is appropriate for the City Council to periodically grant you the authority to make all prudent investments on the City's behalf. a Mr. Bruce V. Malkenhorst July 11, 2001 Page 2 I look forward to discuss this matter with you at your earliest convenience. Sincerely, Eric Fresch Legal Counsel EF:j1 Enclosure cc: Sharon Johnson (w/enc.) Eddie Olivo (w/enc.) CITY COUNCIL , LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro-Tem WM. "BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator / City Clerk FAX (323) 581-7924 Finance Committee City of Vernon CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 EDUARDO OLIVO. City Attorney FAX: (562) 927-8722 KEVIN WILSON Director of Community Services & Water FAX: (323) 588-2761 July 11, 2001 n KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 583--1983 STEVEN E. PARKER Fire Chief FAX: (323) 581-1385 BRUCE W. OLSON Police Chief FAX: (323) 583-5236 In concurrence with Resolution No. 7646, adopted October 17, 2000, it is hereby recommended that the City Council continue to authorize the City Treasurer to invest City funds in securities with a term or term remaining to maturity, at the time of investment, in excess of five (5) years. This has been reviewed by the City's Legal Counsel. Very truly yours, Bruce V. Malkenhorst Director of Finance BVM:ng