City Council
Report
City Council Meeting: October 24, 2023
Agenda Item: 5.J
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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
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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.
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Prepared By: David Carr, Assistant City Treasurer
Approved Forwarded to Council
Attachments:
A. LAIF Resolution 102423