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HomeMy WebLinkAboutCC RESO 2009-201RESOLUTION NO. 2009 — 201 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INVESTMENT OF $1 MILLION IN THE CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SERVICES (CDARS) PROGRAM WITH NEIGHBORHOOD NATIONAL BANK WHEREAS, on August 21, 2007, the City Council approved an amendment to the City's Investment policy which made Certificate of Deposit Account Registry Services (CDARS) an eligible investment category; and WHEREAS, CDARS became statutorily authorized by the enactment of the California Government Code Section 53601.8, effective January 1, 2007; and WHEREAS, Neighborhood National Bank (NNB) has confirmed that they will match the Local Agency Investment Fund interest rate at the time of the investment of funds; and WHEREAS, on September 4, 2007, the City Council approved a $2 Million investment in the CDARS program with Neighborhood National Bank at a competitive rate of return of 5.13% with an 18 month maturity; and WHEREAS, on June 17, 2008, the City Council approved an additional $1 Million investment dated July 24, 2008 at a competitive rate of return of 3.15% with a 12 month maturity; and WHEREAS, the original investment of $2 Million matured in March 11, 2009 and was re -invested at a rate of 2.75%; and WHEREAS, on July 23, 2009, the $ 1 Million investment matured and was re -deposited in the City of National City's Local Agency Investment Fund; and WHEREAS, NNB has made 10 loans from August 2008 through August 2009 totaling $4,966,650; and WHEREAS, NNB has now offered to re -invest $1 Million at a rate of return of 1.51% with a 12 month maturity. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes an investment in the CDARS program with Neighborhood National Bank of $1 Million at a rate of return of 1.51% with a 12 month maturity PASSED and ADOPTED this 18th day of August, 200 on Morrison, Mayor ATTEST: Michel R. Dalla, Cit Clerk APPROVED AS TO FORM: George H. Eiser, Ill City Attorney Passed and adopted by the Council of the City of National City, California, on August 18, 2009 by the following vote, to -wit: Ayes: Councilmembers Morrison, Parra, Sotelo-Solis, Van Deventer, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California !1 City A" lerk of the City of ational City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2009-201 of the City of National City, California, passed and adopted by the Council of said City on August 18, 2009. City Clerk of the City of National City, California By: Deputy