CC 2024-01-23_09.d. Resolution Update for City Manager_Authorized Personnel Financial InstItem 9.d.
MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director
BY: Lynda Horejsi, Accounting Manager
SUBJECT: Consider Adoption of a Resolution to Update City Manager Name for
Authorized Personnel for Financial Institutions
DATE: January 23, 2024
SUMMARY OF ACTION:
Update the list of personnel to include the new City Manager’s name as an authorized
employee to deposit City funds in various financial institutions and to enter into banking
or investment arrangements on behalf of the City.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There are no significant financial or personnel resource impacts to updating t he
Resolution.
RECOMMENDATION:
1) 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 i nto banking or investment arrangements; and
2) Determine that adopting 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 is not subject to the California Environmental Quality Act (“CEQA”)
because it has no potential to result in either a direct, or reasonably foreseeable indirect,
physical change in the environment. (State CEQA Guidelines, Cal. Code Regs., tit. 14,
§§ 15060, subd. (c)(2)-(3), 15378.)
BACKGROUND:
In 2021, the City Council adopted Resolution No. 5122, 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 .
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Item 9.d.
City Council
Consider Adoption of a Resolution to Update City Manager Name for Authorized
Personnel for Financial Institutions
January 23, 2024
Page 2
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 City Council appointed a
new City Manager, who began work with the City on January 8, 2024. The proposed
resolution is to update the list to include the City Manager’s name.
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 persons authorized to enter into
banking and investment relationships for the City and provides documentation compliant
with banking regulations.
DISADVANTAGES:
There are no disadvantages in relation to the recommended action .
ENVIRONMENTAL REVIEW:
Adopting 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 is not
subject to the California Environmental Quality Act (“CEQA”) because it has no potential
to result in either a direct, or reasonably foreseeable indirect, physical change in the
environment. (State CEQA Guidelines, Cal. Code Regs., tit. 14, §§ 15060, subd. (c)(2)-
(3), 15378.)
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.
Attachments:
1. Proposed Resolution
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ATTACHMENT 1
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 as sociations, 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; and
WHEREAS, 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 is not
subject to the California Environmental Quality Act (“CEQA”) because it has no potential
to result in either a direct, or reasonably foreseeable indirect, physical change in the
environment. (State CEQA Guidelines, Cal. Code Regs., tit. 14, §§ 15060, subd. (c)(2)-
(3), 15378.)
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande
as follows:
1. That the Recitals above are hereby incorporated by reference.
2. 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
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RESOLUTION NO.
PAGE 2
3. 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: Matthew Downing
4. That this Resolution supersedes Resolution 5122 dated October 26, 2021, and any
prior Arroyo Grande resolutions inconsistent with the authorized persons that may
enter into banking and investment relationships as set forth herein.
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 23rd day of January, 2024.
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RESOLUTION NO.
PAGE 3
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
__
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
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