Loading...
HomeMy WebLinkAboutItem 3a: Resolution 6817 - Establishing Local Area Investment Fund for Successor Agency Funds +"° •T1 STAFF REPORT Development Services Department DATE: February 21, 2012 TO: Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Develop ent Services DirectorTLK Hue Quach, Administrative Services Director By: Jerry Schwartz, Economic Development Man ger SUBJECT: CONSIDERATION OF RESOLUTION NO. 6817, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, ESTABLISHING AN ACCOUNT WITH THE LOCAL AREA INVESTMENT FUND (LAIF) FOR THE FUNDS HELD BY THE SUCCESSOR AGENCY TO THE ARCADIA REDEVELOPMENT AGENCY Recommendation: Adopt Resolution No. 6817 BACKGROUND The City and former Redevelopment Agency have used the Local Area Investment Fund (LAIF) as a place to deposit general and redevelopment funds for short term investments and ease of access to pay expenses or redevelopment activities. With the ruling by the State Supreme Court that ended Redevelopment on February 1st, the State Treasurer's Office sent out a memo on January 25th (copy attached) informing all redevelopment agencies, that any agency funds left in LAIF accounts on or after February 1 would be inaccessible until its resolution (Resolution no. 6817, attached) was approved by the City Council. Staff removed the Agency funds from LAIF prior to February 1 and placed them in a bank account, allowing the process of establishing a new LAIF account for the Successor Agency to the Redevelopment Agency to be handled systematically rather than be rushed. DISCUSSION The Local Area Investment Fund (LAIF) provides a convenient place to invest funds that need to be accessible within a few days notice. The Office of the California State Treasurer notified redevelopment agencies that their funds would be inaccessible after February 1, 2012 unless its resolution was approved for the successor agency. There is additional information that is required regarding the successor agency that would be provided together with an executed resolution in order to establish a new account. Staff is recommending approval of the attached Resolution No. 6817 which would be the first critical step to establishing an account with LAIF for the Successor Agency to the Arcadia Redevelopment Agency. As is required by LAIF, this resolution designates three officers with authorization to deposit or withdraw funds from the LAIF account. Those three individuals are, Jason Kruckeberg, Assistant City Manager/Development Services Director, Hue Quach, Administrative Services Director, and Shannon Huang, Financial Services Manager/City Treasurer. If Resolution No. 6817 is approved, staff will provide the information requested by the State Treasurer's Office, establish the new account for the successor agency, and then move the funds from the bank into the LAIF account. FISCAL IMPACT There is no impact on the General Fund from the adoption of Resolution No. 6817. RECOMMENDATION, Adopt Resolution No. 6817 establishing an account with the Local Area Investment Fund (LAIF) for funds held by the Successor Agency to the Arcadia Redevelopment Agency. Approved by: 3° Donald Penman, City Manager Attachments: January 25, 2012 Letter from the Office of the State Treasurer Resolution No. 6817 Resolution No. 6817 February 21, 2012 Page 2 of 2 STATE OF CALIFORNIA Bill Lockyer, Treasurer OFFICE OF THE TREASURER o•d. P.O.BOX 942809 . , SACRAMENTO,CA 94209-0001 „� ,' January 25, 2012 Dear LAIF Participant: As you know, as a result of AB xl 26 and the recent Supreme Court decision, redevelopment agencies will no longer exist as of January 31,2012. Your agency maintains an account with the Local Agency Investment Fund (LAIF), managed by the State Treasurer's Office. Our policies require that no transactions can be processed in LAIF accounts without evidence that the individual requesting the transaction is authorized by the agency on whose behalf the request is made. Specifically, we require a LAIF resolution, bank and authorization form. We believe it is important that you are aware of these requirements as you wind down your operations and transition to the successor entity. Please provide us with information regarding the identity of the successor entity that will be taking over your agency's operations and contact information for a person at the successor entity we can work with to get new authorization documents in place as soon as possible. You and your successor entity should be aware that without appropriate documentation in place, transactions in the LAIF account for your agency, or as it is taken over by the successor entity, cannot be processed. It is important that you immediately send a letter that states what your successor entity is and the above mentioned supporting documentation to the State Treasurer's Office. Please do this for each account you have in LAIF, including any bond accounts. This material should be sent to: Local Agency Investment Fund California State Treasurer's Office PO Box 942809 Sacramento,CA 94209-0001 Attention: RDA Coordinator If you have questions on this, please contact the LAIF staff at 916/653-3001. Thank you, Daniel S. Dowell Director, Investment Division RESOLUTION NO. 6817 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, ESTABLISHING AN ACCOUNT WITH THE LOCAL AREA INVESTMENT FUND (LAIF) FOR THE FUNDS HELD BY THE SUCCESOR AGENCY TO THE ARCADIA REDEVELOPMENT AGENCY 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 herby find that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein is in the best interests of the City of Arcadia and the Successor Agency to the Arcadia Redevelopment Agency. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. The City Council does hereby authorize the deposit and withdrawal of City of Arcadia monies on behalf of the Successor Agency to the Arcadia Redevelopment Agency 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. SECTION 2. The following City of Arcadia officers or their successors in office shall be authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund: 1 Jason Kruckeberg Hue Quach Shannon Huang Assistant City Manager/ Administrative Services Financial Services Development Services Director Director Manager/ City Treasurer (Signature) (Signature) (Signature) SECTION 3. The City Clerk shall certify to the adoption of this Resolution. Passed, approved and adopted this day of , 2012. Mayor of the City of Arcadia ATTEST: City Clerk APPROVED AS TO FORM: P / Stephen P. Deitsch City Attorney 2