HomeMy WebLinkAboutRES-12-6814 (LA COUNTY TREASURY POOL)1
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RESOLUTION NO. 12-6814
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH, CALIFORNIA, AUTHORIZING AND
REQUESTING THE INVESTMENT OF EXCESSIVE 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 excess funds in the Los
Angeles County Treasury Pool for the purpose of investment by the Treasurer and Tax Collector
of the County (the "Treasurer); and
WHEREAS, the City Council of the City of Hermosa Beach has determined or may
determine from time to time, that excess funds of the City exist that are not required for immediate
use; and
WHEREAS, Government Code Section 6502 allows public agencies to enter into joint
powers agreements with the County, under which excess funds may be deposited in the County
Treasury Pool; and
WHEREAS, the City of Hermosa Beach 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 Treasurer of the City of Hermosa Beach has determined that the City has
excess funds that are not required for immediate use; and
WHEREAS, the County Board of Supervisors made Government Code Section 53684
operative in the County on February 24, 1987, as amended by said County Board of Supervisors,
on May 31, 1988, to allow for the expansion authorized under Government Code Section 6502;
WHEREAS, with the consent of the Treasurer and Tax Collector (the "Treasurer"), the
Treasurer may accept for investment deposits of the City of Hermosa Beach, provided that is
allowed pursuant to Government Code Section 6502; and
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WHEREAS, this Council has determined that it would be desirable to deposit the excess
funds in the County Treasury Pool for the purpose of investment pursuant to Government Code
Sections 53601 and 53635.
NOW, THEREFORE, IT IS RESOLVED as follows:
SECTION 1. The City Council of the City of Hermosa Beach hereby finds that it may,
from time to time, be advantageous to make deposits for purposes of investment with the Los
Angeles County Treasurer.
SECTION 2. The City Council has received and carefully reviewed the Los Angeles
County's Treasurer and Tax Collector Investment Policy (the "Investment Policy"), and is familiar
with its contents. Having considered and weighed the risks of investing, the City Council finds
and determines that it is appropriate and legal to invest its moneys in the Los Angeles County
Treasury Pool, as permitted by the Investment Policy. The City Council has been advised and
understands that the Investment Policy may be amended by the Treasurer without the review and
consent of the City of Hermosa Beach.
SECTION 3. The Treasurer of the City of Hermosa Beach is hereby authorized and
directed to request the Treasurer's consent to deposit in the County Treasury Pool those funds he
or she deems to be excess and not required for immediate use, for the purpose of investment
pursuant to Government Code Sections 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 to Invest Excess Funds of Public Agencies" and "Resolution
of Board of Supervisors of the County of Los Angeles Authorizing the County Treasurer and Tax
collector to 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 4. This resolution, upon due adoption by this City Council and with the
consent of the Treasurer as evidenced by his signature or that of his designated representative
below, constitutes a joint powers agreement between the City of Hermosa Beach and the County.
SECTION 5. The City of Hermosa Beach hereby agrees to inform the Treasurer if and
to the extent any of the City's funds deposited in the County Treasury Pool pursuant to this joint
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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 relating to compliance with federal tax requirement ("Nonarbitrage
Certificate"), the City 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 Hermosa Beach 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 will review bond documents to determine if funds can be
deposited into the County Treasury Pool.
SECTION 6. Without limiting the rights of the City of Hermosa Beach or the
County's obligation under Government Code Section 53684, the City agrees that the County shall
not be liable for damage or 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 or
any of its officers, employees or agents; (iii) noncompliance with investment policies or guidelines
adopted by the City of Hermosa Beach; (iv) violation of yield or investment limitations applicable
to the funds deposited with the Treasurer for investment (such as federal arbitrage regulations with
respect to the investment of proceeds of borrowings, or 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 the suspension of trading on any securities
exchange; (vi) acts or omissions of the County, its officers and employees with 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 Hermosa
Beach 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.
SECTION 7. The City of Hermosa Beach 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 further agrees to reimburse to the County Treasury Pool any
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amounts disbursed to the City in error promptly upon the discovery of such error or upon the
request of the Treasurer.
SECTION 8. The City Clerk shall certify to the passage and adoption of this Resolution,
shall enter the same in the book of original Resolutions of said city; and shall make minutes of the
passage and adoption thereof in the records of the proceedings of the City Council at which the
same is passed and adopted.
The foregoing resolution was, on the 11th day of September, 2012, adopted by the City
Council of the City of Hermosa Beach.
PRESIDENT
ATTEST:
Agreed and accepted on this
and MAYOR of the City of Hermosa Beach, California
day of
20
Treasurer and Tax Collector
of the County of Los Angeles
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF HERMOSA BEACH
I, Elaine Doerfling, City Clerk of the City of Hermosa Beach, California, do
hereby certify that the foregoing Resolution No.12-6814 was duly and regularly passed,
approved and adopted by the City Council of the City of Hermosa Beach at a Regular
Meeting of said Council at the regular place thereof on September 11, 2012.
The vote was as follows
AYES:
Bobko, DiVirgilio, Fishman, Tucker, Mayor Duclos
NOES:
None
ABSTAIN:
None
ABSENT:
None
Dated: September 12, 2012
I '
Elaine Doerfling, City Clerl