CC 2017-06-27_09d Resolution Deposit of City Funds
MEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES
SUBJECT: CONSIDERATION OF A RESOLUTION AUTHORIZING THE DEPOSIT
OF CITY FUNDS IN VARIOUS FINANICAL INSTITUTIONS
DATE: JUNE 27, 2017
RECOMMENDATION:
It is recommended the City Council adopt the attached Resolution authorizing the
deposit of City funds in various financial institutions and updating the designated
employees in certain positions authorized to enter into banking or investment
arrangements.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There are no significant financial or personnel resource impacts to updating the
Resolution.
BACKGROUND:
In 2010, the City Council adopted Resolution No. 4291 which authorized the deposit of
City funds in various financial institutions and authorized certain employees to act on
behalf of the City in banking or investment relationships. Since that time, position titles
and banking regulations have changed, which require the City to adopt an updated
Resolution.
ANALYSIS OF ISSUES:
Since the adoption of Resolution No. 4291, the voters approved a measure that allows
the City Treasurer to be an appointed position, rather than an elected position. In
addition, the Accounting Supervisor position has been reclassified to the title of
Accounting Manager. Further, changes in regulations for the banking industry require
that the City’s Resolution include the names of the employees currently serving in the
position, rather than just the titles. This will necessitate a more frequent updating of the
Resolution as staffing changes occur; however, it is unlikely to be a significant impact to
the City.
Item 9.d. - Page 1
CITY COUNCIL
CONSIDERATION OF A RESOLUTION AUTHORIZING THE DEPOSIT OF CITY
FUNDS IN VARIOUS FINANICAL INSTITUTIONS
JUNE 27, 2017
PAGE 2
The proposed Resolution reflects the combined position of Director of Administrative
Services/City Treasurer and includes the current employee names. No other changes
are recommended at this time.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt the Resolution as presented;
2. Modify and adopt the Resolution; or
3. Provide further direction to staff.
ADVANTAGES:
Updating the Resolution reflects the most current position titles and names of persons
authorized to enter into banking and investment relationships for the City, and provides
documentation compliant with banking regulations
DISADVANTAGES:
No significant disadvantages exist.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Item 9.d. - Page 2
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE AUTHORIZING THE DEPOSIT OF CITY
FUNDS IN VARIOUS FINANCIAL INSTITUTIONS
WHEREAS the City of Arroyo Grande normally has excess funds not currently needed to
fund operating expenditures, and such excess funds are currently deposited by prior
agreement with various financial institutions, including, but not limited to the State Local
Agency Investment Fund (LAIF); and
WHEREAS, Government Code Section 53635 distinguishes between “deposits” and
“investments”, and specifically provides that City monies shall be “deposited” in State or
National banks, or State of Federal savings and loan associations, or may be “invested” in
specified instruments; and
WHEREAS, eligible financial institutions would include banks and savings and loans,
primarily for active demand deposits (checking accounts and passbook savings), inactive
deposits (non-negotiable time certificates), and investment instruments.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande as
follows:
1. That the City of Arroyo Grande employees in the positions listed below are hereby
authorized to enter into agreements to deposit or withdraw money from financial
institutions located in California, including United States branches of foreign banks
licensed to do business in California, upon a determination of financial soundness of
such financial institutions, by the City of Arroyo Grande.
Director of Administrative Services/City Treasurer
Accounting Manager
City Manager
2. That the employees listed below are currently filling the designated positions as of the
date of this Resolution.
Director of Administrative Services/City Treasurer: Deborah Malicoat
Accounting Manager: Nicole Valentine
City Manager: James Bergman
3. This Resolution supersedes Resolution 4291 dated June 22, 2010 and any and all other
resolutions inconsistent herewith.
On motion of Council Member , seconded by Council Member , and on the
following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 27th day of June, 2017.
Item 9.d. - Page 3
RESOLUTION NO.
PAGE 2
JIM HILL, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
JAMES A. BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
HEATHER K. WHITHAM, CITY ATTORNEY
Item 9.d. - Page 4