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Agenda Item 31.

City Council Meeting

Meeting Date:	08/21/2018
FROM:	Bill Gallardo

Subject:

Adoption of the Successor Agency Resolution Authorizing Investment in the Local Agency Investment Fund for the Successor Agency to the Brea Redevelopment Agency

RECOMMENDATION

Adopt the resolution authorizing the City Treasurer and Administrative Services Director to invest monies on behalf of the Successor Agency to the Brea Redevelopment Agency in the State of California Treasurer's Office Local Agency Investment Fund (LAIF).

BACKGROUND/DISCUSSION

The City of Brea and the Brea Redevelopment Agency have been investing funds in LAIF since 1977. LAIF has proven to be a steady, consistent source of investment income providing ready access to operation funds on an as-needed basis, in a manner similar to a money market fund for a private individual or family.

The LAIF program offers local agencies the opportunity to participate in a major portfolio, which invests hundred of millions of dollars utilizing investment expertise of the Treasurer's Office investment staff at no additional cost to the taxpayer. The LAIF in-house management team is composed of experienced investment professionals. On March 6, 2012 the City Council adopted City Resolution No. 2012-018 which authorized the investment of monies in the Local Agency Investment Fund (LAIF) for the Successor Agency to the Brea Redevelopment Agency. Staff wanted to be careful under the Dissolution Act for all California Redevelopment Agencies that it was not in violation of entering into a contract, so they chose to have the City Council adopt a City Resolution rather than a Successor Agency Resolution.

With a greater understanding of the Dissolution Act, Staff feels more comfortable with the adoption of the Successor Agency Resolution rather than a City Resolution for the investment of Successor Agency funds. This action does not qualify as an enforceable obligation.

Periodically, LAIF requests that participating agencies review and update authorizing documents, including the attached resolution authorizing investment of monies in the Local Agency Investment Fund for the Successor Agency. This action allows both the City Treasurer and Administrative Services Director to authorize appropriate personnel to deposit or withdraw monies in/from the Local Agency Investment Fund on behalf of the Successor Agency to the Brea Redevelopment Agency. Both signatures are required to make any changes to the authorized personnel list.

COMMISSION/COMMITTEE RECOMMENDATION

On July 23, 2018 the Investment Advisory Committee reviewed the Successor Agency Resolution authorizing the City Treasurer and Administrative Services Director to invest monies on behalf of the Successor Agency to the Brea Redevelopment Agency in the State of California Treasurer's Office Local Agency Investment Fund (LAIF) and recommended for City Council approval.

FISCAL IMPACT/SUMMARY

There is no fiscal impact from the adoption of the LAIF resolution.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Faith Madrazo, Revenue & Budget Manager
Concurrence: Cindy Russell, Administrative Services Director

Attachments
Resolution