CC 2020-10-13_08b Authorizing Deposit of City Funds in Various Financial Institutions
MEMORANDUM
TO: CITY COUNCIL
FROM: MICHAEL STEVENS, ADMINISTRATIVE SERVICES DIRECTOR
BY: NICOLE VALENTINE, ACCOUNTING MANAGER
SUBJECT: CONSIDERATION OF A RESOLUTION AUTHORIZING THE DEPOSIT
OF CITY FUNDS IN VARIOUS FINANCIAL INSTITUTIONS
DATE: OCTOBER 13, 2020
SUMMARY OF ACTION:
Designating the names of City 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 City Manager. No other changes are proposed at
this time.
Item 8.b. - Page 1
CITY COUNCIL
CONSIDERATION OF A RESOLUTION AUTHORIZING THE DEPOSIT OF CITY
FUNDS IN VARIOUS FINANICAL INSTITUTIONS
OCTOBER 13, 2020
PAGE 2
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.
Item 8.b. - 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 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: Michael Stevens
Accounting Manager: Nicole Valentine
City Manager: Whitney McDonald
3. This Resolution supersedes Resolution 4973 dated March 24, 2020, and any and all
other resolutions inconsistent herewith.
Item 8.b. - Page 3
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 13th day of October, 2020.
Item 8.b. - Page 4
RESOLUTION NO.
PAGE 3
CAREN RAY RUSSOM, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
__
WHITNEY MCDONALD, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
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