HomeMy WebLinkAbout101-2007 Update of LAIF Resolution.pdf
SARATOGA CITY COUNCIL
MEETING DATE: AGENDA ITEM: ____
June 20, 2007
ORIGINATING DEPT: CITY MANAGER:
Finance &
Administrative ServicesDave Anderson
PREPARED BY: DEPT HEAD:
Mary Furey
Mary Furey
SUBJECT: Adopt a resolution to authorize the investment of City funds in the Local Agency
Investment Fund (LAIF) and update the list of authorized positions to conduct
investment transactions with LAIF on behalf of the City.
RECOMMENDED ACTION
That the City Council adopts the attached resolution which authorizes the investment of City funds in
the Local Agency Investment Fund (LAIF), and updates the list of authorized positions to conduct
investment transactions with LAIF on behalf of the City.
REPORT SUMMARY
The LAIF agency has requested a new resolution be adopted by the City’s governing board. The 1977
resolution LAIF has on file for the City of Saratoga is no longer valid as it includes three positions (of
the four authorized positions) that are no longer current under the City’s organizational structure. The
City therefore, is unable to amend the form for personnel designated to conduct investment transactions.
BACKGROUND
The Local Agency Investment Fund (LAIF) is an investment program created by California statute;
which began in 1977 as an investment alternative for California's local governments and special
districts. This program offers local agencies the opportunity to participate in a major portfolio, which
invests hundreds of millions of dollars, using the investment expertise of the Treasurer's Office
investment staff at no additional cost to the taxpayer.
In 1977, the City passed a resolution authorizing the positions of City Manager, Assistant to the City
Manager, Account Clerk and Personnel Clerk to conduct investment transactions with the Local Agency
Investment Fund (LAIF). The City then submitted a form to the LAIF agency which identified the
personnel holding these positions as the authorized individuals. Over time, as personnel in the
authorized positions changed, an “Authorization for Transfer of Funds” form was submitted to LAIF to
add and delete the individuals named as authorized personnel. LAIF requires that two of the previously
authorized personnel sign the form, to make any changes.
As a result of a recent audit performed on LAIF’s records, auditors determined the LAIF agency did not
have current resolutions on file for their active participants and is requiring LAIF staff to review a city’s
authorization forms in relation to their resolutions.
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Therefore, with staff’s most recent attempt to amend the City’s form, LAIF determined that Saratoga is
no longer in compliance with the City’s 1977 resolution. Due to changes in personnel terminology over
the last thirty years, three of the four listed authorized positions are no longer staffed under the same
title. (Only the City Manager title remains.) LAIF is requiring the City provide a new resolution which
includes an update of authorized staff positions. City staff will then provide LAIF with an updated
Authorization of Transfer of Funds form to delete former staff, and add current staff members.
Staff is proposing the updated resolution to authorize the following four staffed positions under the
City’s current organizational structure:
1.City Manager
2.Assistant City Manager
3.Finance and Administrative Services Director
4.Accounting Supervisor
ALTERNATIVE ACTION
Do not adopt a resolution to update the list of individuals authorized to conduct investment transactions
with LAIF on behalf of the City. (This is not recommended, as it will suspend the ability of the City to
conduct investment transactions with LAIF).
FOLLOW UP ACTION
N/A
ADVERTISING, NOTICING AND PUBLIC CONTACT
N/A
ATTACHMENTS
A: Resolution authorizing the investment of funds in the Local Agency Investment Fund (LAIF) and
establishing authorized positions to conduct investment transactions.
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Attachment A
RESOLUTION NO._______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA
AUTHORIZING THE INVESTMENTS OF MONIES
IN THE LOCAL AGENCY INVESTMENT FUND (LAIF)
WHEREAS, Pursuant to Chapter 730 of the statutes of 1976 Section 16429.1 was added to the California
Government Code to create a Local Agency Investment Fund in the State Treasury for the deposit of money of a
local agency for purposes of investment by the State Treasurer; and
WHEREAS, the City Council does hereby find that the deposit and withdrawal of money in the Local
Agency Investment Fund in accordance with the provisions of Section16429.1 of the Government Code for the
purpose of investment as stated therein as in the best interests of the City.
NOW THEREFORE, BE IT RESOLVED, that the City Council does hereby authorize the deposit and
withdrawal of the City of Saratoga monies in the Local Agency Investment Fund in the State Treasury in
accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as
stated therein, and verification by the State Treasurer’s Office of all banking information provided in that regard.
BE IT FURTHER RESOLVED, that the following the City of Saratoga officers or their successors in
office shall be authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund:
City Manager Dave Anderson .
(TITLE)(NAME)(SIGNATURE)
Assistant City Manager Barbara Powell ______________________
(TITLE)(NAME)(SIGNATURE)
Finance & Administrative
Services Director
Mary Furey
(TITLE)(NAME)(SIGNATURE)
Accounting Supervisor Currently vacant
(NAME)
(TITLE)(SIGNATURE)
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The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City
Council held on the 20th day of June 2007 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________
Aileen Kao, Mayor
ATTEST:
_____________________________
Cathleen Boyer, City Clerk
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