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SR 10-24-2023 5J City Council Report City Council Meeting: October 24, 2023 Agenda Item: 5.J 1 of 3 To: Mayor and City Council From: Gigi Decavalles-Hughes, Director, Finance Department, Revenue Subject: Adoption of a Resolution Updating the List of Persons Authorized to Conduct Transactions With the State Local Agency Investment Fund (LAIF) Recommended Action Staff recommends that the City Council: 1. Adopt the attached resolution updating the positions/persons authorized to conduct transactions with the State Local Agency Investment Fund (LAIF) on behalf of the City; and 2. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. Summary The Santa Monica City Charter designates the Director of Finance (as the City Treasurer) as the custodian of all public funds. Additionally, per State law, the Council delegates investment authority to the City Treasurer for a one-year period. The most recent delegation runs through February 29, 2024. Per the City’s Investment Policy (approved annually by Council), investment authority may also be delegated to the Assistant City Treasurer, and, in the absence of the Director of Finance and the Assistant City Treasurer, the Treasury Administrator and/or Senior Treasury Analyst may be delegated investment authority. One of the investment vehicles the City uses to invest funds is the State Local Agency Investment Fund (LAIF). Due to organizational changes, changes to the persons authorized to conduct investment transactions must be updated, which requires adoption of a resolution per LAIF guidelines. Discussion 5.J Packet Pg. 197 2 of 3 Per the City’s Investment Policy (approved annually by Council), investment authority may also be delegated to the Assistant City Treasurer, and, in the absence of the Director of Finance and the Assistant City Treasurer, the Treasury Administrator and/or Senior Treasury Analyst may be delegated investment authority. The current list of staff authorized to execute transactions with LAIF are the Director of Finance (City Treasurer), Assistant City Treasurer, and the Principal Treasury Analyst, which are not consistent with the current organizational structure of the City or with the City’s current Investment Policy. The Principal Treasury Analyst position has been deleted and replaced by the Senior Treasury Analyst position. In addition, the Treasury Administrator position has been restored. Adoption of the attached resolution will correct these inconsistencies. Environmental Review The resolution to update the list is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The updated list is covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” Updating the list of staff authorized to conduct transactions with LAIF would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA. Financial Impacts and Budget Actions There is no financial impact or budget action necessary as a result of the recommended actions. 5.J Packet Pg. 198 3 of 3 Prepared By: David Carr, Assistant City Treasurer Approved Forwarded to Council Attachments: A. LAIF Resolution 102423 5.J Packet Pg. 199 1 City Council Meeting October 24, 2023 Santa Monica, California RESOLUTION NO. (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA UPDATING THE LIST OF PERSONS AUTHORIZED TO CONDUCT TRANSACTIONS WITH THE STATE LOCAL AGENCY INVESTMENT FUND WHEREAS, the City of Santa Monica (the City) is a municipal corporation; and WHEREAS, the State Local Agency Investment Fund (“LAIF") is established in the State Treasury under Government Code 16429.1 et seq. for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the City Council hereby finds that the deposit and withdrawal of money in LAIF in accordance with Government Code section 16429.1 et seq. for the purpose of investment as provided therein is in the best interests of the City of Santa Monica; and WHEREAS, the State Treasurer requires that the City Council designate appropriate persons authorized to conduct LAIF transactions on behalf of the City; and WHEREAS, on or about February 23, 2016, the City Council adopted Resolution No. 10934 (CCS), which established certain designees authorized to conduct LAIF transactions; and WHEREAS, certain staffing changes have made it necessary to update the designees authorized to conduct LAIF transactions. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: 5.J.a Packet Pg. 200 Attachment: LAIF Resolution 102423 [Revision 3] (6049 : Resolution Updating the List of Persons Authorized to Conduct Transactions With the 2 SECTION 1. That the Director of Finance/City Treasurer is authorized to establish and close deposit and investment accounts with financial institutions and brokerages upon such terms and conditions provided by the statutes of the State of California governing public deposits and the City's investment policy. SECTION 2. That the City Council has delegated investment authority to the Director of Finance/City Treasury. SECTION 3. That under the guidelines of the City Investment Policy, the Finance Director/City Treasurer may delegate investment authority to the Assistant City Treasurer, and in the absence of the Director of Finance/City Treasurer and the Assistant City Treasurer, investment authority may be delegated to the Treasury Administrator and/or the Senior Treasury Analyst. SECTION 4. That the Director of Finance/City Treasurer, the Assistant City Treasurer, the Treasury Administrator, and the Senior Treasury Analyst are hereby authorized to order the deposit or withdrawal of monies in LAIF and may execute and deliver any and all documents necessary or advisable in order to effectuate the purposes of this resolution and the transactions contemplated hereby. SECTION 5. Any provision of any Resolution inconsistent with the provisions of this resolution, to the extent of such inconsistencies and no further, are hereby repealed or modified to the extent necessary to affect the provisions of this resolution. SECTION 6. Resolution Number 10934 (City Council Series) hereby repealed in its entirety. 5.J.a Packet Pg. 201 Attachment: LAIF Resolution 102423 [Revision 3] (6049 : Resolution Updating the List of Persons Authorized to Conduct Transactions With the 3 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: _________________________ Douglas Sloan, City Attorney 5.J.a Packet Pg. 202 Attachment: LAIF Resolution 102423 [Revision 3] (6049 : Resolution Updating the List of Persons Authorized to Conduct Transactions With the