Resolution No. 2014-039RESOLUTION NO. 2014-39
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AUTHORIZING THE INVESTMENT OF CITY MONIES
FROM ANY CITY FUND IN THE.LOCAL INVESTMENT FUND IN
THE STATE TREASURY
WHEREAS, the Local Agency Investment Fund is established in
the State Treasury under Government Code section 16429.1 et seq.; and
WHEREAS, the City of Vernon hereby finds that the deposit
and withdrawal of money in the Local Agency Investment Fund in
accordance with Government Code section 16429.1 et seq. for the
purpose of investment as provided therein is in the best interests of
the City of Vernon.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon finds
that this action is exempt under the California Environmental Quality
Act (CEQA), in accordance with Section 15061(b)(3), the general rule
that CEQA only applies to projects that may have an effect on the
environment.
SECTION 3: The,City Council of the City of Vernon hereby
authorizes the deposit and withdrawal of the City of Vernon monies in
the Local Agency Investment Fund in the State Treasury in accordance
with Government Code section 16429.1 et seq. for the purpose of
investment as provided therein.
SECTION 4: The City Council of the City of Vernon hereby
further resolves that the following City of Vernon officers holding
the titles specified, and their successors in office, are Each hereby
authorized to order the deposit or withdrawal of monies in the Local
Agency Investment Fund and may execute and deliver any and all
documents necessary or advisable in order to effectuate the purposes
of this resolution and the transactions contemplated hereby:
William Fox Finance Director/City Treasurer
.(Name) (Title)
Masami Higa Assistant Finance Director
(Name) (Title)
Joaquin Leon Deputy City Treasurer
(Name) (Title)
SECTION 5: All resolutions or parts of resolutions,
specifically Resolution No. 5244, or minute orders in conflict with
this Resolution are hereby repealed.
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SECTION 6: The City Clerk, or Deputy City Clerk, of the
City of Vernon shall certify to the passage, approval and adoption of
this resolution, and the City Clerk, or Deputy City Clerk, of the City
of Vernon shall cause this resolution and the City Clerk's,, or Deputy
City Clerk's, certification to be entered in the File of Resolutions
of the Council of this City.
APPROVED AND ADOPTED this 17th day of June, 2014.
ATTEST:
Ani,zadcia
Deputy City Clerk
APPROVED AS TO FORM:
Name: W. Michael McCormick
Title: Mayor /'TM r ro- m J
Scott E. Porter, Deputy City Attorney
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
Ana Barcia
I, , i�/ Deputy City Clerk of -the City
of Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 2014-39, was duly passed, approved and adopted by the
City Council of the City of Vernon at a regular meeting of the City
Council duly held on Tuesday, June 17, 2014, and thereafter was duly
signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this l% day of June, 2014, at Vernon, California.
(SEAL)
Ana arcia
,- Ei y—C.1ec?R j Deputy City Clerk
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TRANSMITTAL COMMUNICATION
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: June 26, 2014
TO: William Fox, Finance Director/City Treasurer
Masami Higa, Assistant Finance Director
Joaquin Leon, Deputy City Treasurer
FROM: Deborah Juarez, Records Management Assistant PP „JJ
RE: Resolution No. 2014-39 — A Resolution of the City Council of the City of Vernon
Authorizing the Investment of City Monies from any City Fund in the Local Investment
Fund in the State Treasury
Transmitted herewith is a copy of Resolution No. 2014-39 referenced above, which was approved by the
City Council on June 17, 2014. .
Thank you.
Attachment
c: Resolution No. 2014-3.9
STAFF REPORT
JUN 1 1 2014
CITY CLERK'S OFFICE
r�
STAFF REPORT
DATE: June 17, 2014
FINANCE
TO: Honorable Mayor and City Council
FROM: William F. Fox, Finance Director/City Treasurer LAI /
RECEIVED
JUN 1 1 2014
CITY ADMINISTRATION
RE: Consideration of City Investment Policy, and Staff Authority to Deposit and
Withdraw Funds from Local Agency Investment Fund (LAIF) and Los Angeles
County Pooled Investment Fund (LACPIF)
Recommendation
It is recommended that the City Council approve the following three resolutions, each of which
includes a finding the relevant approvals are exempt from the California Environmental Quality
Act (CEQA) pursuant to Guidelines Section 15061(b)(3), the general rule that CEQA only
applies to projects that may have an effect on the environment:
1. A resolution to approve the Annual Statement of Investment Policy for Fiscal Year 2014-15.
The investment policy requires annual approval by City Council even though no changes and
updates are proposed. Such approval is to be performed on an annual basis.
2. A resolution to approve the proposed resolution to supersede Resolution No. 5244, currently
on file with the Local Agency Investment Fund (LAIF), which would add the following
officers as authorized personnel to deposit and withdrawal City monies on behalf of the City
for investment purposes: Finance Director, Assistant Finance Director, City Treasurer, and
Deputy City Treasurer, or their successors.
A resolution to approve participation in the Los Angeles County Pooled Investment Fund
(LACPIF) as an investment alternative.
Background
Annual Statement of Investment Policy
The Annual Statement of Investment Policy sets forth the course of action necessary to guide the
decision -making of the City Council, City Treasurer, and those authorized to make investment
decisions in the administration of the City's investment portfolio. The existing policy is in
compliance with the California Government Code and is a restatement of relevant sections
applying to investment activities. The policy is designed to ensure that the administration of
surplus funds is performed in accordance with the "prudent investor standard" pursuant to
California Government Code Section 53600.3. As such capital preservation is of paramount
importance and that no speculative activities are entered into.
Resolution to Update LAIF Participation
LAIF is a voluntary program created following California Government Code Section 16429.1.
LAIF serves as an investment alternative for California's local governments and special districts.
The City of Vernon is a LAIF participant. The current authorization for participation is
Resolution No. 5244, which was adopted on January 7, 1986. Under the existing resolution it
gives the City Treasurer the sole authority to deposit and withdrawal funds into this investment
fund. The proposed resolution would supersede Resolution No. 5244 and would allow the
following officers or their successors to transact on behalf of the City: Finance Director,
Assistant Finance Director, City Treasurer, and Deputy City Treasurer. This modification allows
the City Treasurer the flexibility to delegate routine transactions in a similar manner as the City
of Vernon's bank accounts.
Resolution to Participate in the LACPIF
Currently the City of Vernon is not a participant in the LACPIF. This investment fund is similar
to LAIF where participation is for local governments and special districts statewide. The
LACPIF is similar to LAIF in that it is limited to local governments and special districts, but
different in that it is only for entities within Los Angeles County. Having access to LACPIF will
provide the City of Vernon an additional investment alternative. Historically, the interest
earnings from LACPIF have been similar to and greater than those earned under LAIF. The level
of investment risk is considered comparable to LAIF.
Fiscal Impact
There is no immediate fiscal impact by approval of the three resolutions. The passage of the
resolution to participate in the LACPIF will provide an additional investment option that
provides for further optionality and the potential for increased interest income, and increased
diversification.