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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