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HomeMy WebLinkAboutAgenda Packet - April 5, 1985 - CC 14/5/ 5 �T l 061 -T �C �2 D•GL } FINANCE DEPAENT AGENDA ITEM TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT\'. ENCY 1 FROM: GEOFF CRAIG, AGENCY TREASURE I? REASURV' DATE: APRIL 5, 1985 SUBJECT: REVOLVING CREDIT Background Many redevelopment agencies have found it appropriate to open a line of revolving credit with a local bank. This letter recommends such for the Redevelopment Agency of the City of Azusa. Findings Very often in the course of Agency business, it is necessary to remit Agency funds on an immediate basis. Usually, the expenditure is for meeting expenses, travel costs, first-night accommodations, books, seminars, meals or gasoline. In these cases, a special check is handwritten by the Treasurer's Department and the item is placed on the subsequent Register of Demands for approval. This system is unwieldly for several reasons. First, an invoice or receipt for such expenses is seldom available at the time the check is cut. Second, many such transactions are generated by telephone and to cut a special check causes a delay. Third, the Redevelopment Agency does not have the opportunity to review and approve the payment before the check is released. Fourth, Agency employees have, from time to time, been required to charge sizeable Agency expenses on a personal credit card. Fifth, such expenses are commonly paid through petty cash, which becomes depleted very rapidly. This, in turn, precipitates a delay and effectively defeats the purpose of petty cash. Staff has met with the manager of a local bank regarding the possibility of opening a VISA line of credit for use by the Agency. Under this program, / 51-// * * 213 EAST FOOTHILL BOULEVARD,AZUSA, P.O.BOX WWW, CALIFORNIA 91702-1395 . (818) 334-5125 ti Honorable Chairman and Members of the Redevelopment Agency Revolving Credit April 5, 1985 Page 2 only the Executive Director and the Agency Treasurer would be authorized to approve creation of the necessary credit cards. Staff recommends the following: 1. Cards would be issued only to selected individuals who have frequent occasion to incur Agency-related expenses such as those outlined above. 2. Each card would bear both the name of the Agency and the name of the person authorized to use the card. 3. The cards shall be usable only for the types of expenditures listed above. 4. Most transactions would be limited to $150.00 5. Most cards would be limited to $1,000.00 6. It shall be the responsibility of each card user to obtain the "card- holder copy" of each transaction and to submit it, properly filled out on both sides, to Finance within five business days of the transaction. If the "cardholder copy" is unobtainable or lost, a reasonable facsimile will be accepted, but such must be accompanied by a note of explanation. In such cases the note itself can serve as the facsimile receipt. Any charges which cannot be substantiated will be offset against that employee's expense reimbursement, car allowance or cafeteria account, in that order, to the extent necessary to cover the cost of the charge and any accrued interest. Recommendation It is recommended that the Agency: 1. Authorize the staff to complete the necessary paperwork to obtain a VISA card in the name of the Redevelopment Agency of the City of Azusa and to administer the program as outlined above; and 2. Authorize the Executive Director and the Agency Treasurer as the sole persons who can approve the naming and distribution of the credit cards, by passing the attached resolution. GJC:pap BANK CARD AGREEMENT - BUSINESSES The undersigned, doing business as a C' sole proprietorship E partnership corporation under the name and style of ,with a principal place of business at will, from time to time, request that you issue E BankArlericard Visa or - Master Charge cards using the above name, which bank cards are intended for business use by our employees. I/We hereby agree: 1. To all of the terms and conditions of the Bank of America NT&SA BankAmericard Visa or - Master Charge Account Agreement(s), which presently reads as follows (substituting, as appro- priate, the neuter gender for any personal pronouns contained therein): I promise to: • Pay you according to the terms of your Truth-in-Lending Disclosure Statement for: 1. Credit obtained by me or by any other person I permit to use my account, even if that person exceeds my permission, and 2. All finance and other charges, including reasonable attorney's fees if you sue me to collect. • Let you know immediately if my credit card is lost or stolen. • Return to you all credit cards issued by Bank of America on my account, if asked to do so. • Stay within the credit limit you assign to me, unless I get your approval to borrow beyond this limit. I agree that if I or any other person who agrees to these terms break any of the above promises, or do not pay any other debt as agreed, whether owed to you or to anyone else: • You may refuse to extend credit to me or to anyone else using my account. • You may require me to immediately pay the entire balance owing on my account, even if the balance is not then due. • You may cancel my account. I also agree that you may change the terms of this agreement or the terms of your Truth-in-Lending Statement at any time. Such changes will apply to the balance in my account on the date you make them effective. If more than one person has agreed to these terms. we will be "jointly and severally" liable. This means that you may collect from or sue any of us without giving up any of your rights against the others. This agreement is effective on June 14, 1976 and replaces any previous Bank Card Agreement. I understand that from time to time you may receive information concerning me from others. You also may furnish information on my account to others seeking such information. 2. Notwithstanding the provisions of any printed notice hereafter received by us purporting to relate to our liability to the Bank for unauthorized use of a Bank Card, we agree that if ten or more Bank Cards are issued to us we agree to assume responsibility for repayment of all charges incurred through the use of such Bank Cards, whether or not such use was authorized by us, our employees or other persons authorized by our employees. Sign in one box. a partnership a corporation By By By By a sole proprietor doing business as: wt.957 4 ' • APPLICATION COMMERCIAL BANKAMERICARD VISA Commercial Account Section #4713 101 S. Marengo Avenue Pasadena, CA 91122 (213) 578-5563 Firm Name Street Address City State Zip Type of Business Bus. Telephone Ownership IDNo.of Yrs. in Bus. Corporation ❑ Partnership ❑ Other ❑ Company Checking Office Location Office No. Acct. No. Requested Credit Limit No. of Cards Company Signature Title Date e112-355 (REV. 7/70 + pa, S{fit 4kl�t_ RESOLUTION NO. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA AUTHORIZING THE EXECUTIVE DIRECTOR AND TREASURER TO APPLY FOR THE ISSUANCE OF VISA CARDS FOR THE REDEVELOPMENT AGENCY. WHEREAS, the Redevelopment Agency of the City of Azusa, a public body, corporate and politic (hereinafter called "corporation") , desires to obtain VISA Bank cards from the Bank of America NT&SA (hereinafter called "BANK") for use by certain of the corporation's officers and employees; and WHEREAS, the corporation intends to authorize said officers and employees to use such bank cards for and in connection with corporation business; and WHEREAS, BANK will not issue said bank cards unless the corporation agrees to assume full responsibility for the use of such cards, or any of them, and to pay BANK for all indebtedness incurred through the use of such cards, whether such use or indebtedness was authorized by the corporation and to the extent provided by State law; NOW, THEREFORE, BE IT RESOLVED that LLOYD J. WOOD, the Executive Director, or GEOFFREY J. CRAIG, the Treasurer, are hereby authorized, directed and empowered, in the name of this corporation, to apply to BANK for the issuance of VISA bank cards, and to execute such applications and agreements as BANK may require in order to accomplish the foregoing. RESOLVED FURTHER, that BANK is authorized to act upon this resolution until written notice of its revocation is delivered to BANK, and that the authority hereby granted shall apply with equal force and effect to the successors in office of the officers named herein. ADOPTED AND APPROVED this 15th day of April, 1985. CHAIRMAN I, ADOLPH A. SOLIS, Secretary of the Redevelopment Agency of the City of Azusa, a public body, corporate and politic, incorporated under the laws of the State of California, do hereby certify that the foregoing resolution is a full, true and correct copy of a resolution of the Redeveopment Agency which was duly and regularly called and held in all respects as required by law, held on the 15th day of April, 1985, at which time said resolution was adopted by the following vote of the Agency: AYES: AGENCY MEMBERS: NOES: AGENCY MEMBERS: ABSENT: AGENCY MEMBERS: I FURTHER CERTIFY that said resolution is still in full force and effect and has not been amended or revoked, and that the specimen signatures appearing below are the signatures of the officers authorized to sign applications and agreements for this corporation by virtue of this resolution. LLOYD J. WOOD GEOFFREY J. CRAIG EXECUTIVE DIRECTOR TREASURER IN .WITNESS WHEREOF, I have hereunto set my hand as such Secretary, and affixed the corporate seal of said corporation this 15th day of April 1985. ADOLPH A. SOLIS, SECRETARY v/5795 CITY OF ri .05 "" e Olt (1 FINANCE DEPARTMENT AGENDA ITEM TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL 10001 FROM: GEOFF CRAIG, DIRECTOR OF FINAN.4;D� DATE: APRIL 5, 1985 SUBJECT: REVOLVING CREDIT Background Many cities have found it appropriate to open a line of revolving credit with a local bank. This letter recommends such for the City of Azusa. Findings Very often in the course of City business, it is necessary to remit City funds on an immediate basis. Usually, the expenditure is for meeting expenses, travel costs, first-night accommodations, books, seminars, meals or gasoline. In these cases, a special check is handwritten by the Finance Department and the item is placed on the following Register of Demands for approval. This system is unwieldly for several reasons. First, an invoice or receipt for such expenses is seldom available at the time the check is cut. Second, many such transactions are generated by telephone and to cut a special check causes a delay. Third, the City Council does not have the opportunity to review and approve the payment before the check is released. Fourth, City employees have, from time to time, been required to charge sizeable City expenses on a personal credit card. Fifth, such expenses are commonly paid through petty cash, which becomes depleted very rapidly. This, in turn, precipitates a delay and effectively defeats the purpose of petty cash. Staff has met with the manager of a local bank regarding the possibility of opening a VISA line of credit for use by the City. Under this program, only the City Administrator and the Director of Finance would be authorized to approve creation of the necessary credit cards. Staff recommends 213 EAST FOOTHILL BOULEVARD, AZUSA, CALIFORNIA 91702 • PHONE (213) 334-5125 Honorable Mayor and Members of the City Council Revolving Credit April 5, 1985 Page 2 the following: 1. Cards would be issued only to selected individuals who have frequent occasion to incur City-related expenses such as those outlined above. 2. Each card would bear both the name of the City and the name of the person authorized to use the card. 3. The cards shall be usable only for the types of expenditures listed above. 4. Most transactions would be limited to $150.00 5. Most cards would be limited to $1,000.00 6. It shall be the responsibility of each card user to obtain the "card- holder copy" of each transaction and to submit it, properly filled out on both sides, to Finance within five business days of the transaction. If the "cardholder copy" is unobtainable or lost, a reasonable facsimile will be accepted, but such must be accompanied by a note of explanation. In such cases the note itself can serve as the facsimile receipt. Any charges which cannot be substantiated will be offset against that employee's expense reimbursement, car allowance or cafeteria account, in that order, to the extent necessary to cover the cost of the charge and any accrued interest. Recommendation It is recommended that Council: 1. Authorize the staff to complete the necessary paperwork to obtain a VISA card in the name of the City of Azusa and to administer the program as outlined above; and 2. Authorize the City Administrator and the Director of Finance as the sole persons who can approve the naming and distribution of the credit cards, by passing the attached resolution. GJC:pap RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA AUTHORIZING THE CITY ADMINISTRATOR AND DIRECTOR OF FINANCE TO APPLY FOR THE ISSUANCE OF VISA CARDS FOR THE CITY OF AZUSA. WHEREAS, the City of Azusa, a municipal corporation, desires to obtain VISA Bank cards from the Bank of America NT&SA (hereinafter called "BANK") for use by certain of the corporation's officers and employees; and WHEREAS, the corporation intends to authorize said officers and employees to use such bank cards for and in connection with corporation business; and WHEREAS, BANK will not issue said bank cards unless the corporation agrees to assume full responsibility for the use of such cards, or any of them, and to pay BANK for all indebtedness incurred through the use of such cards, whether such use or indebtedness was authorized by the corporation, to the extent provided by State law; NOW, THEREFORE, BE IT RESOLVED that LLOYD J. WOOD, the City Administrator, or GEOFFREY J. CRAIG, the Director of Finance, are hereby authorized, directed and empowered, in the name of this corporation to apply to BANK for the issuance of VISA bank cards, and to execute such applications and agreements as BANK may require in order to accomplish the foregoing. RESOLVED FURTHER, that BANK is authorized to act upon this resolution until written notice of its revocation is delivered to BANK, and that the authority hereby granted shall apply with equal force and effect to the successors in office of the officers named herein. ADOPTED AND APPROVED this 15th day of April, 1985. I MAYOR I, ADOLPH A. SOLIS, City Clerk of the City of Azusa, a municipal corporation, incorporated under the laws of the State of California, do hereby certify that the foregoing resolution is a full, true and correct copy of a resolution of the City Council of said corporation which was duly and regularly called and held in all respects as required by law, held on the 15th day of April, 1985, at which time said resolution was adopted by the following vote of the Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: I FURTHER CERTIFY that said resolution is still in full force and effect and has not been amended or revoked, and that the specimen signatures appearing below are the signatures of the officers authorized to sign applications and agreements for this corporation by virtue of this resolution. LLOYD J. WOOD GEOFFREY J. CRAIG CITY ADMINISTRATOR DIRECTOR OF FINANCE IN WITNESS WHEREOF, I have hereunto set my hand as such City Clerk, and affixed the corporate seal of said corporation this 15th day of April, 1985. ADOLPH A. SOLIS, CITY CLERK PAGE TWO 11/4/g-5 CITY OF i1„„t w 7-& , ,., e4 FINANCE DEPARTMENT TO: HONORABLE MAYOR AND AGENDA ITEM MEMBERS OF THE CITY COUNCIL FROM: ROBERT E. TALLEY, CITY TREASURER DATE: APRIL 9, 1985 SUBJECT: LOCAL AGENCY INVESTMENT FUND Background The Local Agency Investment Fund is a special fund in the State Treasury which permits a local government to remit idle money in its treasury to the State Treasurer for the purpose of special investment. This letter will recommend that the City Council authorize the City Treasurer to participate in this program. Findings At any time, the cash balance in the City's accounts is roughly $8 million. Often the funds are not required immediately for the payment of bills or obligations. As a result, the City Treasurer maintains a special program of investment of these monies in order to obtain the highest reasonable return for the City. Each year this investment income totals roughly $500,000. The Local Agency Investment Fund (LAIF) is a special fund in the State Treasury, created by law. The law permits a local government official, with consent of the governing body of the agency, to remit idle funds in the local treasury to the State Treasurer for deposit for the purpose of investment. The local government unit has the exclusive determination of the length of time its money will be on deposit with the State Treasurer. The State Treasurer will invest the money through the Pooled Money Investment Account of the State of California. This creates a multi-billion dollar money pool and enables the City to enjoy the return from investment in instruments of $100,000 or more. This size usually provides higher yields than are commonly available to local government units. 1 C'' i /(111/ (-) * \\,. ..__________} 213 EAST FOOTHILL BOULEVARD,AZUSA, P.O.BOX WWW, CALIFORNIA 91702-1395 . (818) 334-5125 Honorable Mayor and Members of the City Council Local Agency Investment Fund April 9, 1985 Page 2 The City would be able to convert its deposits in the LAIF to cash within twenty- four hours or less. There are no interest penalties or losses because the investment is withdrawn sooner than the originally contemplated term. The minimum investment is $5,000 and both investments and disbursements are handled by wire between banks. Interest is paid at the end of a calendar quarter through an allocation which is made to all participants in the Local Agency Investment Fund. In this way the City of Azusa would be greatly benefited from the sizes of the investments of other agencies, such as the State of California. A draft resolution has been prepared and attached for Council consideration. Details of the program are available in the office of the City Treasurer. Recommendation It is recommended that the City Council adopt the attached resolution authorizing investment of the idle funds of the City of Azusa in the Local Agency Investment Fund. CRtgff----) g g RET.f�r pap RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA AUTHORIZING THE USE OF THE LOCAL AGENCY INVESTMENT FUND UNDER THE OFFICE OF THE CALIFORNIA STATE TREASURER AS AN INVESTMENT MEDIA ALTERNATIVE. WHEREAS Article II (commencing with Section 16429.1) .has been added to Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code; and WHEREAS this Government Code addition provides for the creation of the Local Agency Investment Fund under the office of the California State Treasurer and the establishment of the Local Investment Advisory Board and prescribes various duties for the Board; and WHEREAS it is deemed wise and prudent to establish an account with the office of the California State Treasurer for the purpose of using the Local Agency Invest- ment Fund as an investment media alternative. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1 That the City Council of the City of Azusa hereby authorizes the establishment of an investment account with the office of the California State Treasurer Local Agency Investment Fund titled: City of Azusa 213 E. Foothill Blvd. Azusa, CA 91702 Attention: Robert E. Talley City Treasurer SECTION 2 That the City Council of the City of Azusa agrees to deposit or withdraw money in the Local Agency Investment Fund in the State Treasury in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated herein. SECTION 3 That the City Council of the City of Azusa authorizes the following named officials to order the deposit or withdrawal of money in the Local Agency Investment Fund: Robert E. Talley, City Treasurer Jeanette Linn, Deputy City Treasurer. Resolution No Page 2 ADOPTED AND APPROVED THIS day of 1985. MAYOR I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Azusa at a regular meeting hereof held on the day of 1985, by the following vote of Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK