HomeMy WebLinkAbout2003-06-24 - RESOLUTIONS - INVEST FUNDS LACO TREASURY (2)RESOLUTION NO. 03-92
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, AUTHORIZING AND
REQUESTING THE INVESTMENT OF IDLE FUNDS IN THE
LOS ANGELES COUNTY TREASURY POOL
WHEREAS, California Government Code ("Government Code") Section 53684 allows
local agencies in the County of Los Angeles (the "County") to deposit idle funds in the Los
Angeles County Treasury Pool for the purposes of investment by the Treasurer and Tax
Collector of the County (the "Treasurer") pursuant to Government Code Sections 53601 and
53635;and
WHEREAS, government Code Section 6502 allows public agencies, even if outside the
County to enter into joint powers agreements with the County, under which idle funds may be
deposited in the County Treasury Pool; and
WHEREAS, the City of Santa Clarita is a local agency as that term is defined in
Government Code Section 53600 and/or a public agency as that term is defined in Government
Code Section 6500; and
WHEREAS, the Board of Supervisors of the County has made the Government Code
Section 53684 operative in the County and has authorized such joint powers agreements; and
WHEREAS, the City Treasurer of the City of Santa Clarita has determined that the City
of Santa Clarita has idle funds which are not required for immediate use; and
WHEREAS, the City of Santa Clarita Council has determined that it would be desirable
to deposit the idle funds in the County Treasury Pool for the purpose of investment pursuant to
Government code Section 53601 and 53635.
NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve
as follows:
SECTION 1. The City Treasurer of the City of Santa Clarita is hereby authorized and
directed to request the Treasurer's consent to deposit in the County Treasury Pool those funds he
deems to be idle and not required for immediate use, for the purpose of investment pursuant to
Government Code Section 53601 and 53635, and subject to the terms and conditions set forth in
Government Code Section 53684 and 27136, and in accordance with the resolutions entitled
"Resolution of the Board of Supervisors of the County of Los Angeles, Authorizing the County
Treasurer and Tax Collector in Invest Excess Funds of Public Agencies" adopted by the Board of
Supervisors of the County of Los Angeles, on February 24, 1987, and on May 31, 1988,
respectively.
SECTION 2. This resolution, upon adoption by the Council and with the consent of the
Resolution No. 03-92
Page 2
Treasurer as evidenced by his signature or that of his designated representative below, constitutes
a joint powers agreement between the City of Santa Clarita and the County.
SECTION 3. The City of Santa Clarita hereby agrees to inform the Treasurer if and to the
extent any of the City of Santa Clarita's funds deposited in the County Treasury Pool pursuant to
this joint powers agreement are proceeds of the issuance of bonds, certificates of participation,
notes or other evidences of indebtedness ("Bond Proceeds"). If the Bond Proceeds are restricted
by a certificate of the City of Santa Clarita relating to compliance with federal tax requirement
("Nonarbitrage Certificate"), the City of Santa Clarita agrees to provide the Nonarbitrage
Certificate to the Treasurer so that the Treasurer can provide the market value of the Bond
Proceeds as of the rebate calculation dates as provided in the Nonarbitrage Certificate.
Notwithstanding the foregoing, the County takes no responsibility and the City of Santa Clarita
is solely responsible for compliance with the terms and conditions of the Nonarbitrage
Certificates and of any federal tax requirements that may apply to the Bond issuance. The City
of Santa Clarita will review bond documents to determine if funds can be deposited into the
County Treasury Pool.
SECTION 4. Without limiting the rights of the City of Santa Clarita or the County's
obligations under Government Code Section 53684, the City of Santa Clarita agrees that the
County shall not be liable for damage of losses of any nature resulting from or arising out of (i)
investments made or authorized by the Treasurer in accordance with Government Code Section
53601 or Section 53635; (ii) misrepresentations or false or erroneous information provided by
the City of Santa Clarita or any of its officers, employees or agents; (iii) noncompliance with
investment policies or guidelines adopted by the City of Santa Clarita; (iv) violation of yield or
investment limitations applicable to the funds deposited with the Treasurer for investment
limitations applicable to the funds deposited with he Treasurer for investment (such as federal
arbitrage regulations with respect to the investment proceeds of borrowings, state or federal
restrictions on the investment of grant proceeds); (v) circumstances beyond the reasonable
control of the County, such as a declaration of a banking moratorium or suspension of trading on
any securities exchange; (vi) acts or omissions of the County, its officers and employees which
do not constitute gross negligence or willful misconduct, or acts or omissions of the County's
custodial bank, depository bank and investment manager (the "Agent Banks"), provided that the
City of Santa Clarita shall be subrogated to the rights of the County to pursue a claim against the
Agent Banks or any of them under the contractual arrangements between the County and the
Agent Banks.
The City of Santa Clarita hereby agrees that the County may calculate the average daily balances
of participants in the County Treasury Pool and may allocate monthly interest payments thereon
pursuant to any reasonable method established by the County and consistently applied. The City
of Santa Clarita further agrees to reimburse to the County Treasury Pool any amounts disbursed
to the City of Santa Clarita in error promptly upon the discovery of such error or upon the
request of the Treasurer.
SECTION 5. The City Clerk shall certify to the adoption of this Resolution.
Resolution No. 03-92
Page 3
PASSED, APPROVED AND ADOPTED this 24th day of June, 2003.
ATTEST:
CITY CLERK
STATE OF CtkLIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARTTA )
I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that
the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a
-- regular meeting thereof, held on the 24th day of June, 2003, by the following vote:
AYES: COUNCILMEMBERS: Ferry, McLean, Kellar, Weste, Smyth
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
CITY CLERK
Resolution No. 03-92
Page 4
Agreed and accepted on this i day of��-<�, 2003.
TREASURER
CITY OF SANTA CLARITA
Agreed and accepted on this _ day of 2003.
TREASURER AND TAX COLLECTOR
COUNTY OF LOS ANGELES