REPORT TO THE JOINT POWERS FINANCING AUTHORITY November 20, 2014 FROM: MICHAEL A. LIMA, Controller/Finance Director/(ex-officio)Treasurer Finance Department BY: KAREN M. BRADLEY, Assistant Controller Finance Department GREGORY S. WILES, Treasury Officer Finance Department SUBJECT ..Title Consent to and authorization of the investment of monies in the Local Agency Investment Fund ("LAIF") in the custody of the State Treasurer for purposes of investment and authorize certain Finance Officers in connection therewith (Authority action) 1. RESOLUTION - Designating and authorizing certain Finance Officers of the City of Fresno to deposit and withdraw funds into and out of the Local Agency Investment Fund ("LAIF") in the State Treasury (Authority action) ..Body RECOMMENDATION Staff recommends that the Joint Powers Financing Authority ("JPFA") Members of the Board approve the attached Resolution, authorizing the investment of monies in LAIF, and authorizing certain Finance Officers to conduct investment transactions with LAIF. EXECUTIVE SUMMARY On October 25, 1988, the Board adopted By-Laws of the JPFA ("By-Laws"), which appointed the Treasurer of the City of Fresno as the Controller and Treasurer of the JPFA (hereafter "Controller and Treasurer"). The Controller and Treasurer is to have charge of all monies of the JPFA, shall sign checks and various commercial banking documents, and provide verbal instruction as required for the prudent financial administration and safekeeping of JPFA funds and property. In order to accomplish these tasks, it is necessary for the JPFA Controller and Treasurer to delegate some duties to responsible City of Fresno-Finance Department employees. Pursuant to Section IV.D.(7) of the Joint Exercise of Powers Agreement by and between the City of Fresno and the Redevelopment Agency of the City of Fresno, now the City of Fresno as Successor Agency to the Redevelopment Agency of the City of Fresno, as amended November 1, 1991 ("Joint Powers Agreement"), the Board has the power to appoint such other officers and employees as it may deem necessary. BACKGROUND The Joint Powers Agreement was approved on October 25, 1988 for the purpose of assisting the City in financing various capital projects. As the JPFA has no employees of its own, the Joint Powers Agreement and the By-Laws designate the Treasurer of the City as the Treasurer and Controller of the JPFA. As such, it is the Treasurer and Controller's responsibility to administer the financial affairs of the JPFA under the direction of the Board. Examples of the financial affairs assigned to the Treasurer and Controller include: Signing checks, purchasing investments, and performing various other banking transactions. As with the Treasurer and Controller position, since the JPFA has no employees of its own, in order for the Treasurer and Controller to effectively and efficiently meet his/her responsibilities, the authority for performing many JPFA finance functions must be delegated to responsible City of Fresno-Finance Department employees. A reasonable system of internal controls requires that only certain employees be authorized to approve these day-to-day transactions. These employees, along with the Treasurer and Controller, are to be designated as the JPFA's Finance Officers. The attached Resolution contains the complete list of proposed Finance Officers, along with their exemplar signatures, and provides the authorization for them to perform JPFA financial transactions. The list includes the City of Fresno Controller/Finance Director/(ex-officio)Treasurer, the Assistant Controller and the Management Analyst III of the Finance Department's Administration Section, and the Treasury Officer of the Finance Department's Treasury Section. The attached Resolution has been approved as to form by the City Attorney's Office. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference was not considered because this Resolution does not include a bid or award of a construction or service contract. FISCAL IMPACT The compensation of the Controller/Finance Director/(ex-officio) Treasurer and the additional Finance Officers to be appointed by this Resolution, has been established by the City's Position Authorization Resolution and Budget for Fiscal Year 2014-2015. Section IV.D.(4) of the By-Laws provides for charges to be made against the JPFA, for the services of the Treasurer and Controller, as determined by the City. Since the amount of service to be provided to the JPFA is currently unknown, there is no way to determine the fiscal impact on the JPFA. However, there will be no cost to the General Fund or any other City fund associated with the recommended action, due to the fact that the cost of any service provided to the JPFA will be offset by charges to the JPFA. Further, there is no financial impact on any particular Council District as a result of the recommended action. Attachment: Resolution