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HomeMy WebLinkAbout6/20/2012 - STAFF REPORTS - 2.K. Ginny Foat From: Jay Thompson Sent: Tuesday,June 19, 2012 5:38 PM To: 'Stephen Pougnet'; Ginny Foat, 'Rick Hutcheson'; 'Paul Lewin'; 'ChrisM @ prestvu ksicarchitects.com' Cc: David Ready; Douglas C. Holland; Geoffrey Kiehl;Jennifer Nelson; Bette OCamb Subject: Added Item 2012-06-20 Agenda Attachments: 2864_OOl.pdf Mayor and Members of the City Council, Attached is a proposed resolution that City Staff will request you add to your meeting agenda regarding signature authority for the remaining RDA funds in LAIR The City has less than $6,000 RDA in funds in LAIF, mainly accrued interest. As you may recall City Staff recommended, and the City Council approved, moving the funds from LAIF back in January, 2012 at a Special Meeting, as LAIF is completely controlled by the State. LAIF is indicating that City Staff cannot transfer the remaining funds, as the City Council has not adopted such a resolution for funds as the Successor Agency. While we tried to argue that the City Council adopted a resolution to be the Successor Agency, along with all requisite approvals under AB 1X26, and the City Council has adopted the "like" resolution as the Agency and the City Council, they are requiring yet another resolution. This is precisely why City Staff recommended the change last January, as not to be held hostage by any further action the State may potentially take with funds invested in LAIF by member agencies. Since City Staff needs to make this transfer prior to the end of the fiscal year, we will request the City Council find that the Item came to the attention of the City after the posting of the Agenda, and there is an immediate need to hear and/or take action on the Item, and add the proposed resolution to the Consent Calendar. To add the Item to the Agenda requires a 4/5ths vote. The materials will be printed and in your yellow folders for reference at the meeting. Just a reminder do not reply all to this message, please contact staff directly should you have any questions or concerns. Jay James Thompson, City Clerk City of Palm Springs, California TEL(760)323-8204 1 O�pALM Sp9 A. .y c V N C44 1FORN`P CITY COUNCIL STAFF REPORT DATE: June 20, 2012 CONSENT CALENDAR SUBJECT: APPROVE A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACTING SOLEY IN ITS CAPACITY AS SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE INVESTMENT, DEPOSIT, AND WITHDRAWAL OF CITY OF PALM SPRINGS SUCCESSOR AGENCY MONIES IN THE LOCAL AGENCY INVESTMENT FUND. FROM: David H. Ready, City Manager BY: Department of Finance and Treasury SUMMARY Prior to the elimination of redevelopment agencies on January $1, 2012, the Council authorized the Director of Finance and Treasurer to move Agency funds out of the State of California's Local Agency Investment Fund (LAIF). On January 26, 2012, approximately $19.5 million in funds were transferred out of LAIF. At the time we knew that we would eventually be receiving a small amount of interest for the month of January 2012. We have been notified by LAIF that in order to transfer this final interest income payment of $5,038.28 into CalTRUST, the City's new investment pool, the Council must approve a revised authorized signers list under the name of the City as the Successor Agency to the Palm Springs Redevelopment Agency. RECOMMENDATION: 1. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACTING SOLEY IN ITS CAPACITY AS SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE INVESTMENT, DEPOSIT, AND WITHDRAWAL OF CITY OF PALM SPRINGS SUCCESSOR AGENCY MONIES IN THE LOCAL AGENCY INVESTMENT FUND." 2. Authorize the City Manager to execute all appropriate documents related to the administration of funds in the LAIF investment pool. o�/s�aj�o�8 /.-cN2>F-,z> 27W 2.Af City Council Staff Report June 20, 2012 -- Page 2 Authorize the Investment of Successor Agency Funds in LAIF FISCAL IMPACT: The $5,038.28 will be deposited into the CalTRUST investment pool and will be recorded in the appropriation funds of the successor to the redevelopment agency awaiting disposition by the State of California. GeoffreyS. Kiehl David H. Ready, City ge Director of Finance and Treasurer — 44�eli' Dougl s Holland City Attorney Attachments: Resolution Authorizing the Administration of Funds with LAIF RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACTING SOLEY IN ITS CAPACITY AS SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE INVESTMENT, DEPOSIT, AND WITHDRAWAL OF CITY OF PALM SPRINGS SUCCESSOR AGENCY MONIES IN THE LOCAL AGENCY INVESTMENT FUND. 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 the purposes of investment by the State Treasurer; and WHEREAS, the City of Palm Springs does hereby find that the deposit and withdrawal of monies in the Local Agency Investment Fund, in accordance with the provisions of Section 16429.1 of the Government Code, for the purposes of investment as stated therein, to be in the best interests of the the Successor Agency to the Palm Springs Community Redevelopment Agency. NOW THEREFORE THE CITY COUNCIL DETERMINES, RESOLVES AND APPROVES AS FOLLOWS: SECTION 1. The deposit and withdrawal of City of Palm Springs Successor Agency monies 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, is hereby authorized. SECTION 2. The following City of Palm Springs officers or their successors in office shall be authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund as the Successor Agency to the Palm Springs Community Redevelopment Agency: Geoffrey S. Kiehl - Director of Finance and Treasurer James Thompson - City Clerk Nancy Klukan - Assistant Director of Finance Robert Burkholder - Accountant (Deputy Treasurer) SECTION 3. In retaining the responsibilities of the Palm Springs Community Redevelopment Agency as provided in California Health and Safety Code §§ 34173 and 34176, the City Council expressly determines, recognizes, reaffirms, and ratifies the statutory limitation on the City and the City Council's liability in retaining the responsibilities of the Palm Springs Community Redevelopment Agency pursuant to AB 1X26. Nothing in this Resolution shall be construed as a commitment, obligation, or debt of the City or any resources, funds, or assets of the City to fund the City's service Resolution No. Page 2 as the successor agency to the Palm Springs Community Redevelopment Agency as provided in this Resolution. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 20TH DAY OF JUNE, 2012. David H. Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on June 20, 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California