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HomeMy WebLinkAboutAugust 19, 1997August 19, 1997 6:00 p.m. Council Chamber Conference Room ROLL CALL: Council Members Chang, Kovacic, Kuhn, Young and Harbicht I TIME RESERVED FOR THOSE IN THE AUDIENCE WHO WISH TO ADDRESS THE CITY COUNCIL/REDEVELOPMENT AGENCY (NON-PUBLIC HEARING/ FIVE MINUTE TIME LIMIT PER PERSON). THOSE WHO WISH TO ADDRESS THE CITY COUNCIL ON BUDGET ITEMS SHALL HAVE THE OPPORTUNITY TO DO SO UNDER ITEM 10. 2. CLOSED SESSION a ACTION Pursuant to Government Code Section 54957.6 to confer with City - labor negotiators, Dan Cassidy and Gary Rogers regarding negotiations with all represented and unrepresented employees. 7:00 p.m. Council Chamber INVOCATION PLEDGE OF ALLEGIANCE ROLL CALL: Council Members Chang, Kovacic, Kuhn, Young and Harbicht 3. PRESENTATION of Mayor's Certificate and Police Department Certificate to Reuben Vizcarra. 4. SUPPLEMENTAL INFORMATION FROM STAFF REGARDING AGENDA ITEMS 5. QUESTIONS FROM CITY COUNCIL/REDEVELOPMENT AGENCY REGARDING AGENDA ITEMS 6. PUBLIC HEARING a. Report and recommendation regarding the public nuisance at 352 Haven. 7. TIME RESERVED FOR THOSE IN THE AUDIENCE WHO WISH TO ADDRESS THE CITY COUNCIL /REDEVELOPMENT AGENCY (NON- PUBLIC HEARING/ FIVE MINUTE TIME LIMIT PER PERSON) THOSE WHO WISH TO ADDRESS THE CITY COUNCIL ON BUDGET ITEMS SHALL HAVE THE OPPORTUNITY TO DO SO UNDER ITEM 10. 8. MATTERS FROM ELECTED OFFICIALS City Council Reports /Announcements /Statements /Future Agenda Items 9. CONSENT a. Minutes of the August 5, 1997 Regular Meeting. b. Report regarding the City of Arcadia's 1997 -98 Statement of Investment Policy. C. Report and recommendation to award a contract in the amount of $143,010.00 to A & B Electric in for the Motor Control Centers Improvements for Orange Grove Well No. 1A, Longden Well No. 2, Hugo Reid Plant, and Baldwin Well No. 2. 10. CITY MANAGER a. Consideration and discussion of alternatives and direction regarding modifications to the Fiscal Year 1997 -98 Budget. 11. CITY ATTORNEY a. ADOPTION - Ordinance No. 2075 - An Ordinance of the City Council of the City of Arcadia, California adding a high rise (H8) overlay to the C -2 zoned property located at the northwest corner of Huntington Drive and Second Avenue. ACTION ADJOURN City Council to August 23, 1997 at 8:00 a.m. at Glendale Federal Savings (100 S. First Avenue, Community Room). a33v- jn STAFF REPORT ADMINISTRATIVE SERVICES DEPARTMENT August 19, 1997 TO: MAYOR AND CITY COUNCIL FROM: JAMES S. DALE, ADMINISTRATIVE SERVICES DI C R Prepared by: Gerald A. Parker, Financial Services Manager/Treasurer SUBJECT: STATEMENT OF INVESTMENT POLICY SUMMARY: Attached for your review and consideration is the City of Arcadia's Investment Policy for Fiscal Year 1997 -98. Per the State of California Government code it is required that a Statement of Investment Policy be submitted annually to the governing board. This policy defines the overall investment parameters under which the City Treasurer invests the City's excess, surplus, funds. DISCUSSION: As part of the overall investment strategy the City's Investment Policy plays a major part by defining allowable investments, maximum amounts to be invested, safekeeping, investment goals, and the standards which the Treasurer will need to adhere to when investing the City's funds. A broad list of investments is allowed, as defined by State law, to allow the Treasurer the means to find the best investment, providing the greatest benefit to the City. To ensure that a safe, and conservative, strategy is followed, the Investment Policy includes additional restrictions, and standards, exceeding State requirements. Examples are the incorporation of the "Prudent Man Rule ", goals of "Safety, Liquidity, and Yield ", and bid and safekeeping requirements. FISCAL IMPACT: There is no fiscal impact other than the Investment Policy defines the environment under which the Treasurer operates in the safe, prudent, and conservative investment of City funds. This environment results in the safe return, of all the City's principal, after earning a reasonable rate of return. LASER IMAGED ion/. 96 . RECOMMENDATION: It is recommended that the City Council receive, and file, the 1997 -98 City of Arcadia Investment Policy. Approved, William R. Ke ly Pat Malloy City Manager Acting City Manager t- - —. . In M CITY OF ARCADIA STATEMENT OF INVESTMENT POLICY FY 1997 -98 PURPOSE This statement is intended to provide guidelines for the prudent investment of the City's Funds and outline the policies for maximizing the efficiency of the City's cash management system. The ultimate goal is to enhance the economic status of the City while protecting its funds. OBJECTIVE The City's cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City Treasurer attempts to obtain the highest yield obtainable as long as investments meet the criteria established for safety and liquidity. POLICY A. The City Treasurer operates the City's cash investments under the prudent man rule.` This affords the City a broad spectrum of investment opportunities as long as the investment is deemed prudent and is allowable under current legislation of the State of California and other imposed legal restrictions. B. City investments may be made in, but not limited to, the following instruments: - Certificates of Deposit purchased from banks or savings and loan institutions. - Bankers Acceptance - Treasury Bills and Notes - Government Agency Securities (e.g. Federal National Mortgage Association, Government National Mortgage Association, Federal Farm Credits.) - Commercial Paper - Repurchase Agreements - State Local Agency Investment Funds - Passbook Savings Account "The prudent man rule states, in essence, that " in investing... property for the benefit of another, a trustee shall exercise the judgment and care, under the circumstances then prevailing, which men of prudence, discretion and intelligence exercise in the management of their own affairs. M C. Criteria for selecting investments and the order of priority are: Safety. The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts. The City Treasurer only places City funds in those investments that are considered very safe. 2. Liquidity. This refers to the ability to "cash in" at any moment in time with a minimal chance of losing some portion of principal or interest. Liquidity is an important investment quality especially when the need for unexpected funds occur occasionally. 3. Yield. Yield is the potential dollar earnings an investment can provide, and sometimes is described as the rate of return. D. Safekeer)in4 Securities purchased from broker /dealers shall be held in a third party safekeeping by the trust department of the bank or other designated third party trustee of the local agency, and shall be under the agency's name and control whenever possible. INVESTMENT PORTFOLIO GUIDELINES: A. An average amount of two week's warrants and one payroll to be maintained in immediately available investments, such as the State Treasurer's Local Agency Investment Fund or a similar liquid instrument. This may include commercial paper or repurchase agreements acquired through the City's bank. Weekly analysis of cash flow will serve as a basis for determining the maturity date of investments. B. Investment Transaction. Every investment transaction must be authorized, documented and reviewed by the City Treasurer. C. Pooled Cash. Whenever practical, the City's cash will be consolidated into one bank account and invested on a pooled concept basis. Interest earnings will be allocated according to fund cash and investment balances. D. Competitive Bids. Purchase and sale of securities should be made on the basis of competitive offers and bids when practical. E. Liquidity. The marketability (salability) of a security should be considered at the time of purchase, as the security may have to be sold at a later date to meet unanticipated cash demand. z 1%✓ -"W F. Long Term Maturities. Longer term maturities having a remaining term to maturity of four (4) to five (5) years will not represent a significant percentage of the total portfolio (60 %), as the principal risk involved can outweigh the potential for higher earnings. G. Diversification. The portfolio should consist of a mix of various types of securities, issuers, and maturities. H. State Investment Limitations. Security purchases and holdings shall be maintained within statutory limits imposed by the State of California Government Code. Current limits are: Bankers Acceptance - 40 %, Section 53601 (f); Commercial Paper - 30 %, Section 53601 (g); and Negotiable Certificate of Deposit - 30 %, Section 53601 (h); Repurchase Agreement - the term shall be one year or less, Section 53601 (i); mortgage securities - 25% Section 53601 0); medium term corporate note - 15 %, Section 53601 (k); Shares of beneficial interest as defined in Section 23701 (m); of Revenue and Taxation Code - 15% Section 53601 (1). I. Arcadia Guidelines By Type of Investment. In addition to the general investment limitations imposed by the State, the following more specific, and in some cases more conservative, guidelines by type of investment will be followed: 1. Certificate of Deposit. Cash will be invested only in FDIC or FSLIC insured certificates, with institutions having a branch located within the City's boundaries. The City will not invest in any institution less than five years old. The institution must maintain a net worth to asset ratio of at least 3 %, and a positive earning record. 2. Bankers Acceptances. A Bankers Acceptance is a time draft which has been drawn on and accepted by a bank. It is considered more secure than a Certificate of Deposit but less secure than a Government Agency instrument. The City will only invest through the 15 largest banks in the United States or the 100 largest banks in the world (in terms of assets). The maximum investment with any one institution will not exceed $3 million. 3. Treasury Bills . Notes and Bonds. The City will require safekeeping documentation of the treasury instrument in an acceptable safekeeping account in the City's name. we, . 4. Government Agency Securities. The City will require physical delivery of these securities to an acceptable safekeeping account in the City's name. Examples of these securities include Government National Mortgage Association, Federal National Mortgage Association, Federal Land Bank and Federal Farm Credit Banks. 5. Commercial Paper. Commercial paper is an unsecured loan made by the City to an institution. The City will require safekeeping documentation of the security in an acceptable safekeeping account in the City's name. Commercial paper will be used solely as a short term investment not to exceed 15 days. It is anticipated that this type of investment will be used only a few times during the year when other short term investments are not available. A rating of Standard and Poors A -1 or Moodys P -1 is required. The City will only invest in the largest 15 banks (in terms of total assets) in the United States. The Investment in any one institution will not exceed $1,000,000. 6. Repurchase Agreements ( Repos). Repurchase Agreements are loans made by the City to financial institutions secured by collateral posted by the borrowing institution. The City will require physical delivery of the securities backing the repo or safekeeping documentation in an acceptable safekeeping account in the City's name, depending on the type of security. Repos will be used solely as a short term investment not to exceed 30 days. The institution from which the City purchases a repo must transfer on an ongoing basis sufficient securities to compensate for changing market conditions and insure that adequate collateral is maintained in the City's safekeeping account to cover the principal invested. Repos will only be purchased through the 15 largest banks in the United States. The investment in any one institution will not exceed $1,000,000. 7. State Local Agency Investment Fund. LAW is an investment fund established by the State of California to assist smaller cities in increasing their investment earnings. Cities deposit funds with the State Treasurer's office which are then pooled with the State's funds and invested. The investment with LAW may not, by State regulation, exceed $15 million. 8. Passbook Savings Accounts. Savings account shall be maintained for accounts under $100,000 that are received too late in the day to invest in other instruments. Gerald A. Parker City Treasurer City of Arcadia o zo -SO 5. 1-)a I7 °Rpoanrs� MEMORANDUM DEVELOPMENT SERVICES DEPARTMENT • Date: August 13. 1997 TO: MAYOR AND CITY COUNCIL FROM: DONNA BUTLER, COMMUNITY DEVELOPMENT ADMINISTRATOR f SUBJECT: PUBLIC HEARING REGARDING 352 EAST HAVEN Based on the attached prior staff report and the initiation of enforcement actions by Monrovia(see attached notice) with regard to lack of vegetation on parkway area involving subject property, it is recommended that this agenda item be tabled. The Fire Department has advised that with regard to the possible Fire Code violations that apply to this property, there is not a safety factor. As to the potential of inoperable vehicles, this can be enforced through other types of action which is under consideration . At this time it appears that utilization of the public nuisance approach is not necessary. Recommended Action: Move to table consideration of the hearing regarding public nuisance at 352 East Haven. Concurred: ��— City M. d ager (• ting) 211 / City Attorney in/32-E /� LASER IMAGED � h . � � . • okor tie 00 MIMI 41 • MEMORANDUM OFFICE OF THE CITY ATTORNEY • Date: Mav 28, 1997 • • TO: MAYOR AND CITY COUNCIL • • FROM: COMMUNITY DEVELOPMENT ADMINISTRATOR - i SUBJECT: PUBLIC NUISANCE RE 352 EAST HAVEN- CONTINUANCE A public hearing was scheduled by Staff for June 3, 1997 to declare the above property a public nuisance and seek abatement. The item should be continued for at least thirty days for the following reasons: 1. To work with the City of Monrovia concerning that portion of subject property in their jurisdiction. This includes the side yard area (parkway) adjacent to fifth street which is deteriorated and without landscaping. 2. To gather additional evidence with regard to the status of the inoperable vehicles on • the property. 3. To review a prior civil action involving a dispute over required covenants on the property. This may give the City an additional means to require certain corrective action by property owner. The property owner and his representative have been notified of the planned continuance. Recommended Action: Continue subject agenda item to the first meeting in July. There is no need to open the public hearing in order to move to continue. CONCURRED: t)17 i/ 72/ j14 CITY ATTORNEY CITY MANAGER, •