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Current Council Agenda and Past Meeting Information

CITY COUNCIL AGENDA ITEM NO. 17

Meeting Date: December 9, 2008

Subject/Title: Adopt a Resolution amending City Council/Administrative Policy No. 10-11, Authorized City Officials, Executives, and Employees Regarding Warrants, Banking, Trust and Investment Accounts

Prepared by: Denise Davies, Chief Financial Operations Officer
Marna Huber, Management Analyst

Submitted by: Pamela Ehler, Director of Finance and Information Systems

RECOMMENDATION
Adopt a Resolution amending City Council/Administrative Policy No. 10-11, Authorized City Officials, Executives, and Employees Regarding Warrants, Banking, Trust and Investment Accounts.

PREVIOUS ACTION
On March 22, 2005, the City Council adopted Resolution No. 2005-61 establishing City Council/Administrative Policy No. 10-11 Authorized City Officials, Executives, and Employees Regarding Warrants, Banking, Trust and Investment Accounts.

On July 24, 2007, by Resolution No. 2007-162, City Council approved amendments to Policy 10-11, Authorized City Officials, Executives, and Employees Regarding Warrants, Banking, Trust and Investment Accounts.

BACKGROUND
This policy was established to 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.

The amendment before you better identifies the classification and/or title of the individuals assigned specific duties within the Finance and Information Systems Department. In addition, the Investment/Trust Account section has been updated to reflect only necessary users authorized to manage investments in the absence of the City Treasurer and in accordance with Council/Administrative Policy 10-4, Investment Policy.

In order to facilitate your review, the changes to the Policy have been displayed in red.

FISCAL IMPACT
There is no fiscal impact associated with the amendment of City Council/Administrative Policy No. 10-11, Authorized City Officials, Executives, and Employees Regarding Warrants, Banking, Trust and Investment Accounts.

Attachment:
Resolution
City Council/Administrative Policy No. 10-11

RESOLUTION NO.

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

WHEREAS, on March 22, 2005 City Council adopted Resolution No. 2005-61 establishing City Council/Administrative Policy No. 10-11; and

WHEREAS, this policy addresses 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, the amendment better identifies the classification and/or title of the individuals assigned specific duties within the Finance and Information Systems Department; and

WHEREAS, the Investment/Trust Account section now reflects only necessary users authorized to manage investments in the absence of the City Treasurer and in accordance with Council/Administrative Policy 10-4, Investment Policy.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brentwood that City Council/Administrative Policy No. 10-11, Authorized City Officials, Executives, and Employees Regarding Warrants, Banking, Trust and Investment Accounts, attached and incorporated herein by this reference is hereby amended.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the 9th day of December 2008 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 Director of Finance and Information Systems
Vice-Mayor Assistant Finance and Information Systems Director
City Manager Assistant City Manager
City Attorney Chief Financial Operations Officer
Accounting 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 Accounting Manager Accounting Technician

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 one of the following City officials, Executives or employees or their successors shall be authorized to manage investments:

Mayor City Attorney
Vice-Mayor Assistant Finance and Information Systems Director City Manager Chief Financial Operations Officer
Assistant City Manager Accounting 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:

Chief Financial Operations Officer Accounting Technician
Accountant I/II

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.

 
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