Loading...
Resolution No. 2014-040RESOLUTION NO. 2014-40 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON AUTHORIZING AND REQUESTING THE INVESTMENT OF EXCESS FUNDS IN THE LOS ANGELES COUNTY TREASURY POOL WHEREAS, California Government Co'de ("Government Code") Section 53684 allows local agencies in the County of Los Angeles (the "County") to deposit excess funds in the Los Angeles County Treasury Pool for the purpose of investment by the Treasurer and Tax Collector of the County (the "Treasurer"); and WHEREAS, the City Council of the City of Vernon has determined or may determine from time to time, that excess funds of the City of Vernon exist that are not required for immediate use; and WHEREAS, Government Code Section 6502 allows public agencies, even if outside the County, to enter into joint powers agreements with the County, under which excess funds may be deposited in the County Treasury Pool; and WHEREAS, the City of Vernon is a local agency as that term is defined in Government Code Section 53600 and/or a public agency as that term is defined in Government Code Section 6500; and WHEREAS, the Board of Supervisors of the County has made the Government Code Section 53684 operative in the County and has authorized such joint powers agreements; and WHEREAS, the City Council of the City of Vernon has determined that the City of Vernon has excess funds which are not required for immediate use; and WHEREAS, the County Board of Supervisors made Government Code Section 53684 operative in the County on February 24, 1987, as amended by said County Board of Supervisors, on May 31, 1988, to allow for the expansion authorized under Government Code Section 6502; and WHEREAS, with the consent of the Treasurer and Tax Collector (the "Treasurer"), the'Treasurer may accept for investment deposits of the City of Vernon, provided that the City of Vernon is allowed pursuant to Government Code Section 6502; and WHEREAS, the City Council of the City of Vernon has determined that it would be desirable to deposit the excess funds in the County Treasury Pool for the purpose of investment pursuant to Government Code Sections 53601 and 53635. 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 finds that it may, from time to time, be advantageous to make deposits for purposes of investment with the Los Angeles County Treasurer. SECTION 4: The City Council of the City of Vernon has received and carefully reviewed the Los Angeles County's Treasurer and Tax Collector Investment Policy (the "Investment Policy"), and is familiar with its contents. Having considered and weighed the risks of investing, the City Council of the City of Vernon finds and determines that it is appropriate and legal to invest its moneys in - 2 - the Los Angeles County Treasury Pool, as permitted by the Investment Policy. The City of Vernon has been advised and understands that the Investment Policy may be amended by the Treasurer without the review and consent of the City of Vernon. SECTION 5: The FinanceDirector/City Treasurers and the Finance Director's/City Treasurer's designee, whose name(s), currently held title(s), and specimen signature(s) that appear on Attachment A - List of Authorized Designees of this resolution is/are hereby authorized and directed to request the Treasurer's consent to deposit in the County Treasury Pool those funds he or she deems to be excess and not required for immediate use, for the purpose of investment pursuant to Government Code Sections 53601 and 53635, and subject to the terms and conditions set forth in Government Code Sections 53684 and 27136, and in accordance with the resolutions entitled "Resolution of the Board of Supervisors of the County of Los Angeles Authorizing the County Treasurer and Tax Collector to Invest Excess Funds of Public Agencies" and "Resolution of Board of Supervisors of the County of Los Angeles Authorizing the County Treasurer and Tax Collector to Invest Excess. Funds of Public Agencies" adopted by the Board of Supervisors of the County of Los Angeles, on February 24, 1987, and on May 31, 1988, respectively. SECTION 6: This resolution, upon due adoption by the City Council of the City of Vernon and with the consent of the Treasurer as. evidenced by his signature or that of his designated representative, constitutes a joint powers agreement between the City of Vernon and the County. SECTION 7: The City Council of the City of Vernon hereby agrees to inform the Treasurer if and to the extent any of the - 3 - City of Vernon's funds deposited in the County Treasury Pool pursuant to this joint powers agreement are proceeds of the issuance of bonds, certificates of participation, notes or other evidences of indebtedness ("Bond Proceeds"). If the Bond Proceeds are restricted by a certificate of the City of Vernon relating to compliance with federal tax requirement ("Nonarbitrage Certificate"), the City of Vernon agrees to provide the Nonarbitrage Certificate to the Treasurer so that the Treasurer can provide the market value of the Bond Proceeds as of the rebate calculation dates as provided in the Nonarbitrage Certificate. Notwithstanding the foregoing, the County takes no responsibility and the City of Vernon is solely responsible for compliance with the terms and conditions of the Nonarbitrage Certificates and of any federal tax requirements that may apply to the Bond issuance. The City of Vernon will review bond documents to determine if funds can be deposited into the County Treasury Pool. SECTION 8: Without limiting the rights of the City of Vernon or the County's obligation under Government Code Section 53684, the City of Vernon agrees that the County shall not be liable for damage or losses of any nature resulting from or arising out of (i) investments made or authorized by the Treasurer in accordance with Government Code Section 53601 or Section 53635; (ii) misrepresentations or false or erroneous information provided by the City of Vernon or any of its officers, employees or agents; (iii) noncompliance with investment policies or guidelines adopted by the City of Vernon; (iv) violation of yield or investment limitations applicable to the funds deposited with the Treasurer for investment (such as federal arbitrage regulations with respect - 4 - to the investment of proceeds of borrowings, or state or federal restrictions on the investment of grant proceeds); (v) circumstances beyond the reasonable control of the County, such as a declaration of a banking moratorium or.the suspension of trading on any securities exchange; (vi) acts or omissions of the County, its officers and employees with do not constitute gross negligence or willful misconduct, or acts or omissions of the County's custodial bank, depository bank and investment manager (the "Agent Banks"), provided that the City of Vernon shall be subrogated to the rights of the County to pursue a claim against the Agent Banks or any of them under the contractual arrangements between the County and the Agent Banks. - 5 - SECTION 9: 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: Ana a r-Pftr C� Deputy City Clerk APPROVED AS TO FORM: ro � Name: W. Michael McCormick. Title: Mayor /:±MIa rn-mam�s� �; rl' At& , Scott E. Porter, Deputy City Attorney - 6 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I Ana Barciactty 6L-/ Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2014-40, 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 0 day of June, 2014, at Vernon, California. (SEAL) Ana aroia +--C�t-L1�/ Deputy City Clerk - 7 - ATTACHMENT A Attachment A Authorized List of Designees for the City of Vernon Name Current Title Specimen Signature William Fox Finance Director / City Treasurer Masami Higa Assistant Finance Director Joaquin Leon Deputy City Treasurer 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 Ar FROM: Deborah Juarez, Records Management Assistant RE: Resolution No. 2014-40 — A Resolution of the City Council of the City of Vernon Authorizing and Requesting the Investment of Excess Funds in the Los Angeles County Treasury Pool Transmitted herewith is a copy of Resolution No. 2014-40 referenced above, which was approved by the City Council on June 17, 2014. Thank you. Attachment c: Resolution No. 2014-40 STAFF REPORT RECEIVED R MD JUN 112014 STAFF REPORT CITY CLERK'S OFFICE FINANCE DATE: June 17, 2014 TO: Honorable Mayor and City Council L FROM: William F. Fox, Finance Director/City Treasurer / JUN 1 1 2014 CITY ADMII41STRATION Ae 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. 3. 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.