STAFF REPORT TO THE CITY COUNCIL. Honorable Mayor and Members of the City Council. Local Agency Investment Fund (LAIF) Signatory Authorizations

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2 STAFF REPORT TO THE CITY COUNCIL DATE: Regular Meeting of January 14, 2014 TO: SUBMITTED BY: SUBJECT: Honorable Mayor and Members of the City Council Nickie Mastay, Finance Director Local Agency Investment Fund (LAIF) Signatory Authorizations RECOMMENDED ACTION: Adopt a resolution rescinding City resolution No authorizing the investment of the City of Hercules (City) monies in The Local Agency Investment Fund (LAIF) and authorizing City Officers and their successors in office to order deposits or withdrawals of City monies To/from said fund. COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION: Not applicable. FISCAL IMPACT OF RECOMMENDATION: LAIF often has the best interest rate available for short or long term investments. The City of Hercules needs to be in a position to take advantage of favorable interest rates. BACKGROUND: The Local Agency Investment Fund (LAIF) is a voluntary program created by State statute as an investment alternative for local governments under the control of the State Treasurer. The program allows local agencies to participate in a major portfolio, which invests hundreds of millions of dollars, using the investment expertise of the State Treasurer's Office investment staff at no cost to the taxpayer. The City of Hercules invests its cash in LAIF in order ensure liquidity to meet its short terms obligations. DISCUSSION: The City currently has the following personnel with signing authority at LAIF: Steven Duran, City Manager; Nickie Mastay, Finance Director; Margaret Robert, Administrative Services Director/City Clerk; Melvin Garcia, Senior Accountant. January 14, 2014 Page 1

3 Past and future personnel changes require an update of the signing authority with LAIF. Since Steve Duran has resigned his position to become the City Manager for the City of Antioch, it is recommended that his name be removed as signatory on the LAIF account and that the City of Hercules add Phil Batchelor, Interim City Manager as an authorized signer to the LAIF accounts. To make this change, LAIF requires that a resolution be submitted from the City authorizing the new signers. Staff is recommending that authorization be given to Phil Batchelor, Interim City Manager; Margaret Roberts, Administrative Services Director/City Clerk; Nickie Mastay Finance Director; and Melvin Garcia, Senior Accountant. ATTACHMENTS: Attachment 1 Resolution Description: Financial Impact Funding Source: Budget Recap: Total Estimated cost: $ New Revenue: $ Amount Budgeted: $ Lost Revenue: $ New funding required: $ New Personnel: $ Council Policy Change: Yes No January 14, 2014 Page 2

4 RESOLUTION NO. 14- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES, CALIFORNIA, RESCINDING RESOLUTION NO AND AUTHORIZING INVESTMENT OF CITY OF HERCULES MONIES IN THE LOCAL AGENCY INVESTMENT FUND AND AUTHORIZING CITY OFFICERS OR THEIR SUCCESSORS IN OFFICE TO ORDER DEPOSITS OR WITHDRAWALS OF AGENCY MONIES IN SAID FUND WHEREAS, pursuant to Chapter 730 of the Statutes of 1976, Section 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 Section of the Government Code for the purposes of investment as stated therein is in the best interests of the City of Hercules; and WHEREAS, designees as identified in Resolution are no longer employed with the City of Hercules; and WHEREAS, the Local Agency Investment Fund has requested a Resolution identifying current City of Hercules Officials authorized to access the Fund. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules that the City Council does hereby authorize the deposit and withdrawal of City of Hercules monies in the Local Agency Investment Fund in the State Treasury in accordance with the provisions of Section 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 Resolution No is hereby rescinded and that the following City of Hercules officers or their successors in office shall be authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund: Phil Batchelor Interim City Manager Margaret Roberts Administrative Services Director/City Clerk Nickie Mastay Finance Director Melvin Garcia Senior Accountant

5 The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the fourteenth day of January, 2014 by the following vote of the Council: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Myrna de Vera, Mayor Margaret Roberts, City Clerk

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