SR-204-001 (6)
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r-_ FEB 25 1986
FD:CMD:gp:invinst
Council Meeting: February 25, 1986
Santa Monica, California
TO:
Mayor and City Council
FROM:
City staff
SUBJECT:
Recommendation to Add Various Financial Entities to
the City's Approved List of Investment Institutions
Introduction
This report recommends that the City Council approve the attached
resolution which adds various financial entities to the City's
list of approved investment institutions.
This action is
necessary to complete implementation of the City'S South African
divestment policy.
~ackground
On September 10, 1985, council adopted a South African divestment
policy.
In order to offset any possible decrease in financial
institutions resulting
from adoption of the recommended
divestment policy and to enhance investment yields, Council
directed staff to submit for Council consideration a list of
additional financial entities to be added to the City'S list of
approved investment institutions. This report presents staff's
recommendation.
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Discussion
To evaluate possible additional investment institutions, staff
ini tially screened all potential institutions using the Value
Line Investment survey which is widely used and highly regarded
in the investment community. Value Line rates all institutions
for financial performance and safety on a scale of l (highest) to
5 (lowest). Any potential institution with a rating of four or
five, in either catagory, was immediately eliminated. This
action is specified by the city's current investment pOlicy which
requires that all banking institutions used by the City be rated
within the top 60% of their peer group.
In addition to adding banking institutions, it is recommended
that staff be authorized to effect legally authorized investments
through certain primary broker/dealers. The dealers recommended
are those which are recognized by and report to the New York
Federal Reserve Bank wherein they must meet stringent operating
standards such as capital adequacy, and which have local officers
convenient to staff. In addition to potential yield
improvements, authorization to use brokers/dealers will also
enable staff to increase the overall liquidity of the City
portfolio through increased market access, and to make use of
various information services provided by brokers/dealers such as
general information regarding market developments, intermarket
spread analysis and other technical market-related information.
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Following the initial screening, all potential institutions were
also screened to ensure their operations were consistent with the
city's South African divestment policy.
The following is a list of financial entities that staff
recommends be added to the City I s list of approved investment
institutions.
Banks
Bankers Trust Company
First National Bank of Chicago
savings and Loan Associations
Home Savings of America
Broker/Dealers
Dean witter Reynolds
First Boston Corporation
Goldman Sachs & Company
Kidder Peabody & Company, Inc.
Merrill Lynch Government Securities Inc.
Prudential-Bache Securities
Budget/Financial Impact
The recommendation of this report has no budget/financial
impacts.
Recommendations
It is recommended that the city council adopt the attached
resolution adding the financial entities listed above to the
City'S list of approved investment institutions.
Prepared by: Mike Dennis, Director of Finance
Kay Watanabe, city Treasurer/Revenue Manager
Bill Ramsey, Assistant Director of Finance
Ralph Bursey, Assistant City Treasurer/
Revenue Manager
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VOTE: AffIrmative:
Negative:
Abstain:
Absent: '24~_ ~-/
FROOr V0TE~ WITH ANOTHER'PERSO~ BEFORE A~~THING
DISTRIEU1iON: ORiGiNAL ~o be signed, seaiea ana flIed in Vault.
e
BEFORE DISTRIBUTION CHECK CONTENT OF ALL
DISTRIBUTION OF RESOLUTION # 7169
Council MeetIng Date ~~~/~
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Agenda Item it
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Was it amended?
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FOR CITY CkERK'S ACTION
ORDINANCE #
Introduced:
Adopted'
AUIAYS PUBLISH AOOPl'.t;L) ORDlNANCES*
*Cross out Attorney's approval
NEWSPAPER PUBLICATION (Date:
)
)
Department originatIng staff report (
Management Sery,~~e? Lynne Barr~tte urdinances only
Agency mentioned in document or staff report
Subject file (agenda packet)
Counter file
Others:
Ai rport
Parking Auth.
Auditorum
Personnel
BUIlding Dept.
Planning
o.:..ulllUIlity and Econcmic ne.v.
FInance
Police (en-
forcement?)
Fire
Purchasing
Recr/Parks
General Servo
TransportatIon
Library
Treasurer
Manager
SE~D FOU~ COPIES OF ALL ORDI~ANCES TO:
CODED SYSTHIS, Attn PeteY Maclear ie
, .
12_0 1>.!aln S" t r""e t <
_ ,Avr)'\, ;~l:fw J E;lT sey _ O'Z 717 ,
SEND FOUR COPIES OF AU. ORDTNANr;p~ - to:
De.b.~a ~yrick
SAN1A MONICA MUNIC!PAL COURT
,'.725 MAIN STREE1;. Room 118
SANTA MON~CA, CA 90401
L
(certIfied?)
1
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)
*Check Code SectlOns before sendmg.
TOTAL COPIES
3
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council Meeting February 25, 1986 Santa Monica, California
RESOLUTION NO. 7l69(CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA MONICA AUTHORIZING THE ESTABLISHMENT,
USE AND INVESTMENT OF ONE OR MORE DEPOSIT
ACCOUNTS WITH CERTAIN BANKS, SAVINGS AND LOAN
ASSOCIATIONS AND BROKER/DEALERS.
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES
RESOLVE AS FOLLOWS:
SECTION 1. That the city of Santa Monica, a municipal
corporation establishes in its name one or more deposit accounts
with the Alliance Bank of Culver City, American City Bank,
American Pacific State Bank, Bank of America National Trust and
Savings Association, Bank of Beverly Hills, Bank of Marina del
Rey, Bankers Trust Company, Brentwood Bank, California First
Bank, California Korea Bank, Century Bank, city National Bank,
Chase Manhattan Bank, New York, Columbia National Bank, Crocker
National Bank, First National Bank of Chicago, First Pacific
Bank, First Women's Bank of California, Golden state Sanwa Bank,
Imperial Bank, Lloyds Bank of California, Manufacturers Bank,
Olympic National Bank, Republic Bank, Santa Monica Bank, Security
Pacific National Bank, Sumitomo Bank of California, Union Bank,
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First Interstate Bank, Wells Fargo Bank, and western Bank of
Commerce upon such terms and conditions as are provided by the
statutes of the state of California governing public deposits;
and that Charles M. Dennis, Director of Finance/City Controller,
and Kay Watanabe, City Treasurer, be and they hereby are
authorized by establishing such accounts.
SECTION 2. That the city of Santa Monica, a municipal
corporation, establishes in its name one or more deposit accounts
with American Savings and Loan Association, Bel-Air Savings and
Loan Association, Beverly Hills Savings and Loan Association,
Brentwood Savings and Loan Association, California Federal
Savings and Loan, centurion Savings and Loan Association, Century
Federal Savings and Loan Association, Coast Federal Savings and
Loan Association, Fidelity Federal Savings and Loan Association,
First Federal Savings Bank, First Nationwide Savings and Loan
Association, Gibraltar Savings and Loan Association, Glendale
Federal savings and Loan, Great Western savings and Loan
Association, Hawthorne Savings and Loan Association, Home Federal
Savings and Loan Association, Home Savings of America, Imperial
Savings and Loan Association, Lincoln Savings and Loan
Association, Los Angeles Federal Savings, Marina Federal Savings,
Mercury savings and Loan Association, Pacific Federal savings and
Loan Association, Perpetual Savings and Loan Association,
Provident Federal Savings and Loan Association, Sears Savings
Bank, Southern California savings and Loan Association, Southwest
Savings and Loan Association, Westdale savings and Loan, Western
savings and Loan, and World savings and Loan Association, upon
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such terms and conditions as are provided by the statutes of the
state of California governing public deposits; and that Charles
M. Dennis, Director of Finance/City Controller, and Kay Watanabe,
City Treasurer/Revenue Manager be and they hereby are authorized
by establishing such accounts.
SECTION 3. That the City of Santa Monica, establishes
in its name one or more investment/deposit accounts with First
Boston Corporation, Goldman Sachs & Company, Kidder Peabody &
Company, Inc., Merrill Lynch Governments Securities Inc.,
Purdential-Bachs Securities, and Dean witter Reynolds; and that
Charles M. Dennis, Director of Finance/City Controller, and Kay
Watanabe, City Treasurer/Revenue Manager be and they hereby are
authorized by establishing such accounts.
SECTION 4. That the Santa Monica office of the Santa
Monica Bank, First Interstate Bank, the Bank of America National
Trust and Savings Association, as designated depositories of the
city, be and they, including their correspondent banks, hereby
are requested, authorized, and directed to honor all checks,
drafts, or other orders for the payment of money drawn to the
indi vidual order of any person or persons whose names appear
thereon as signer or signers thereof, when bearing or purporting
to bear the facsimile signatures of Charles M. Dennis and Kay
Watanabe in lieu of said person's manual signature; provided that
all previous authorizations for the signing and honoring of
checks, drafts, or other orders for the payment of money drawn on
said banks by the City hereby are continued in full force and
effect as amplified hereby.
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SECTION 5. That the City of Santa Monica, a municipal
corporation, has rented safe deposit box liB" at the First
Interstate Bank, and that Charles M. Dennis, Director of
Finance/City Controller, or Kay Watanabe, City Treasurer, jointly
with william R. Ramsey, Assistant Director of Finance, or Ralph
E. Bursey, Assistant City Treasurer, or Esmeralda Kelley, be and
they are hereby authorized to enter said safe deposit box.
SECTION 6. The provisions of this Resolution shall be
effective February 25, 1986. Resolution Number 6839 (CCS) and
all other Resolutions in conflict herewith are repealed effective
February 25, 1986.
SECTION 7. The city Clerk shall certify to the adoption
of this Resolution, and thenceforth and thereafter the same shall
be in full force and effect.
APPROVED AS TO FORM:
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Robert M. Myers
City Attorney
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Adopted a~d approved thIS 25th day of February, 1986.
) A 1.1v.~.IA~
(J V Jf -'Ma'1tJ" -TempOJ
I hereby certlfy that the foregol~g Resolutlo~ No. 7169(CCS)
was duly adopted by the Clty Cou~cll of the CIty of Sa~ta MO~lca
at a meetl~g thereof held O~ February 25, 1986 by the followl~g
Cou~cll vote:
Ayes: Cou~cllmembers:
CO'1'1, Epstel~, A. Katz, H. Katz,
a'1d Mayor Pro Tempore Je~~l~gs
Noes: Cou'1cllmembers:
NO"1e
Abstal'1: Cou~cllme~bers:
None
Abse"1t: Cou'1cllmembers:
Za'1e and Mayor Reed
ATTEST:
a~ /Jz4~
C1ty Clerk