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CITY COUNCIL AGENDA ITEM NO. 9

Meeting Date: March 22, 2005

Subject/Title: Approve a resolution to adopt the Policy No. 10-11 – Authorized City Officials, Executives, and Employees Regarding Warrants, Banking, Trust and Investment Accounts

Prepared by: Denise Davies, Finance Operations Manager

Submitted by: Pam Ehler, Director of Finance & Information Systems

RECOMMENDATION
Approve a resolution to adopt the Policy No. 10-11 – Authorized City officials, executives, and employees Regarding Warrants, Banking, Trust and Investment Accounts

PREVIOUS ACTION
There is currently no policy that governs authorized signature of City officials, executives, and employees regarding banking, trust and investment accounts.

BACKGROUND
The City Council has adopted separate resolutions establishing the authorized City officials to act of behalf of the City of Brentwood in regard to banking, trust and investment accounts as well as designating authority to pay all warrants. Adopting this policy would comprehensively address the authorized City officials, executives, and employees to act on behalf of the City of Brentwood in regard to warrants, banking, trust and investment accounts.

This policy sets forth the authorized signatures for the following:

Operating Accounts - The operating account is used for reimbursements, transfers, employee compensation, benefits and payments to vendors, contractors, government agencies, financial institutions and others that provide supplies, services and/or equipment to the City. This policy states that two of the designees are needed to sign checks or other instruments for withdrawal of monies. It further states that one of the designees may transfer funds from the operating account to another City account for the purpose of investing.

Investment/Trust Accounts - Investment accounts cover all funds and investment activities. The Investment Policy delegates the management responsibility for the investment program to the City Treasurer. As designated by Municipal Code Section 2.39.010, the City Treasurer is the Director of Finance and Information Systems. This policy states that in the absence of the Director of Finance and Information Systems two of the designees are authorized to manage investments.

Warrants - When funds are available for the payment of an approved claim, a warrant becomes a check directing the bank to pay the funds to the payee. This policy states that two designees must approve checks in amounts exceeding $100,000 prior to distribution. These individuals have been selected because by the unique nature of their jobs they may have knowledge of issues regarding these checks.

Warrant Register - There is no statutory need to place warrants on the City Council agenda for approval before payment. Many times services or products would have been provided or used prior to Council approval due to contract requirements and delivery schedules. Purchasing Policy No. 10-7 states, prior to procurement of service items or goods costing more than $50,000, authorization must be received from City Council. This policy designates the Director of Finance and Information Systems or designee to sign the warrant register.

FISCAL IMPACT
None

Attachment:
Resolution
Policy 10-11, Authorized City Officials, Executives and Employees regarding Warrants, Banking, Trust and Investment Accounts Policy

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD ADOPTING POLICY NO. 10-11 – AUTHORIZED CITY OFFICIALS, EXECUTIVES, AND EMPLOYEES REGARDING WARRANTS, BANKING, TRUST AND INVESTMENT ACCOUNTS

WHEREAS, there is currently no policy that governs authorized signature of City officials, executives, and employees regarding banking, trust and investment accounts; and

WHEREAS, adopting this policy would comprehensively address the authorized City officials, executives, and employees to act on behalf of the City of Brentwood in regard to warrants, banking, trust and investment accounts; and

WHEREAS, this policy sets forth the authorized signatures for Operating Accounts, Investment/Trust Accounts, Warrants and Warrant Registers.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood adopts Policy N. 10-11, Authorized City Officials, executives, and employees regarding warrants, banking, trust and investment accounts.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 22nd day of March 2005 by the following vote:

1. PURPOSE

This policy sets forth authorized City officials, Executives and employees to act on behalf of the City of Brentwood and authorized signatures with regard to warrants, City banking, trust and investment accounts to establish accounts, withdraw, transfer or deposit funds for the purpose of investment and to cover financial commitments of the City.

2. POLICY

2.1 Applicability

The provisions of this policy apply to all City of Brentwood warrants, banking, trust and investment accounts.

2.2 General Provision

California Government Code, commencing with Section 53630, authorizes the deposit of City funds in any state or national bank, savings association or federal association, state or federal credit union, or federally insured industrial loan company located in this state.

The City of Brentwood Investment Policy No. 10-4 is based on state law and prudent money management. All funds will be invested in accordance with the City of Brentwood's Investment Policy, and California Government Code Sections 53601, 53601.1, 53601.5, 53635 and 53635.5. The investment of bond proceeds will be further restricted by the provisions of relevant bond documents.
Government Code §53910 allows a city to adopt such practices with respect to payment of warrants as it deems convenient, efficient and in the public interest. To avoid city council approval of every minor equipment purchase or service payment, a city council can delegate authority to certain city personnel, allowing them to authorize payment of a claim from a particular budget account.

2.3 Authorized Signatures

2.3.1 Operating Accounts

The operating account is used for reimbursements, transfers, employee compensation, benefits and payments to vendors, contractors, government agencies, financial institutions and others who provide supplies, services and/or equipment to the City. Any two of the following City officials, Executives or employees or their successors shall be authorized to sign checks, facsimile is acceptable, or other instruments for the withdrawal of moneys in the operating account:

Mayor City Attorney
Vice-Mayor Director of Finance and Information Systems
City Manager Finance Operations Manager
Assistant City Manager

Any one of the City officials, Executives, or employees listed above may transfer funds from the operating account to another City account for the purpose of investing. When authorized by one of the City officials, Executives or employees listed above a transfer may be processed by the following:

Accountant I/II/III

2.3.2 Investment/Trust Accounts

Investment accounts cover all funds and investment activities under the direction of the City Council and are invested in accordance with the City of Brentwood Investment Policy No. 10-4. The investments of bond proceeds are further restricted by the provisions of relevant bond documents. The Investment Policy delegates management responsibility for the investment program to the City Treasurer for a one-year period, subject to review and renewable annually.

In the absence of the City Treasurer, designated by Municipal Code Section 2.39.010 as the Director of Finance and Information Systems, any two of the following City officials, Executives or employees or their successors shall be authorized to manage investments:

Mayor Assistant City Manager
Vice-Mayor City Attorney
City Manager Finance Operations Manager

A transfer of funds from an investment/trust account to another City account for the purpose of investing or funding the operating account, when authorized by one of the City officials, Executives or employees listed above may be processed by the following:

Accountant III

2.3.3 Warrants

A warrant is an order by which the drawer, usually the city council, authorizes the bank or other depository of city funds to pay a particular sum of money. If funds are available for the payment of an approved claim, the warrant becomes a check directing the bank or depository of the city funds to pay the funds to the payee. When funds are unavailable, the warrant becomes an interest bearing municipal obligation.

Checks issued in amounts exceeding $100,000 will not be distributed until two of the City Executives listed below have approved them:

City Manager
Assistant City Manager
City Attorney
City Clerk
Director of Finance and Information Systems

Exceptions to this requirement include checks for the following items:
Personnel Benefits
Utilities
Debt Service Trustee Payments
Pass Through Payments

2.3.4 Warrants Register

Many times services or products may have been provided or used due to contract requirements and delivery schedules before council would have the opportunity to approve the warrant register every two weeks. Purchasing Policy No. 10-7 states, prior to procurement of service items or goods costing more than $50,000, authorization must be received from City Council.
The Director of Finance and Information Systems or designee is to sign the warrant register authorizing that all warrants be paid provided that Department Heads or designees approve that warrants are within budget limits. If requested, Council will be provided with a warrant register. 

 

City Administration
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Brentwood, CA 94513
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E-mail allcouncil@brentwoodca.gov