CC 2021-10-26_08f Authorizing Deposit of City Funds in Various Financial InstitutionsMEMORANDUM
TO: CITY COUNCIL
FROM: NICOLE VALENTINE, ADMINISTRATIVE SERVICES DIRECTOR
SUBJECT: ADOPTION OF A RESOLUTION UPDATING THE NAME OF THE CITY’S
ACCOUNTING MANAGER IN THE LIST OF THOSE WHO ARE
AUTHORIZED TO DEPOSIT CITY FUNDS IN VARIOUS FINANCIAL
INSTITUTIONS
D ATE: OCTOBER 26, 2021
SUMMARY OF ACTION:
Designate the name of the City’s Accounting Manager in the list of employees who are
authorized to deposit City funds in various financial institutions and 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.
RECOMMENDATION:
It is recommended the City Council adopt a Resolution authorizing the deposit of City funds
in various financial institutions and updating the names of designated employees in certain
positions who are authorized to make deposits of City funds and enter into banking or
investment arrangements.
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, the Resolution
has been updated as position titles and banking regulations have changed.
ANALYSIS OF ISSUES:
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. The proposed Resolution
includes an update to the name of the Accounting Manager. The City recently hired a new
Accounting Manager, who began work with the City on October 15, 2021, and who should
Item 8.f. - Page 1
CITY COUNCIL
ADOPTION OF A RESOLUTION UPDATING THE NAME OF THE CITY’S
ACCOUNTING MANAGER IN THE LIST OF THOSE WHO ARE AUTHORIZED TO
DEPOSIT CITY FUNDS IN VARIOUS FINANCIAL INSTITUTIONS
OCTOBER 26, 2021
PAGE 2
be added to the Resolution to enable her to manage the City’s bank accounts. No other
changes are proposed 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 other direction to staff.
ADVANTAGES:
Updating the Resolution will reflect the current names of the persons authorized to enter
into banking and investment relationships for the City, and provides documentation
compliant with banking regulations
DISADVANTAGES:
No 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.
Attachment:
1. Proposed Resolution
Item 8.f. - 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 or Federal savings and loan associations, or may be “invested”
in specified instruments; and
WHEREAS, eligible financial institutions include banks and savings and loans and are
used primarily for active demand deposits (checking accounts and passbook savings),
inactive deposits (non-negotiable time certificates), and investment instruments; and
WHEREAS, eligible financial institutions require a listing of authorized signers who are
legally approved to perform financial transactions on behalf of the City, which may be
modified from time to time due to changes in staffing.
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: Nicole Valentine
Accounting Manager: Lynda Horejsi
City Manager: Whitney McDonald
3.This Resolution supersedes Resolution 5037 dated October 13, 2020, and any and
all other resolutions inconsistent herewith.
Item 8.f. - Page 3
Attachment 1
RESOLUTION NO.
PAGE 2
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 26th day of October, 2021.
Item 8.f. - Page 4
RESOLUTION NO.
PAGE 3
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
__
WHITNEY MCDONALD, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 8.f. - Page 5