§ 2-1614. Selection of depositories.

(a)

Generally. The city treasurer shall select and recommend to the director of finance banks or banking institutions which meet the city's established minimum banking criteria, as amended from time to time, and which will agree to execute the city's depository trust agreement and act as depositories for city funds as provided in this division with the option of termination by either the city or the bank or banking institution on giving 30 days' written notice to the other party. The director of finance, with approval of the depository bank or banking institution, may extend such contract for additional periods as mutually agreed upon. The city treasurer shall keep city funds in banks or banking institutions who shall enter into a custodial agreement with the city and the Federal Reserve Bank, whereby the bank or banking institution agrees to and does deposit with the Federal Reserve Bank collateral securities for the safekeeping and prompt payment of city deposits. The cost and expense of the administration of such agreements shall be borne by such depository bank or banking institution. So long as such depository bank or banking institution is not in default in the safekeeping and prompt payment of the city deposits, it shall be permitted to detach and collect all interest coupons and interest upon such securities. The market value of such collateral securities shall at all times be not less than that prescribed in the city's investment policy. The securities deposited as collateral under the provisions of this section shall be permissible by state law and subject to the city's investment policy.

(b)

Banks not within the city and/or banks within the city acting on behalf of an agent or private contractor of the city. Banks or banking institutions not located within the city and/or banks within the city acting on behalf of an agent or private contractor of the city may act as depositories for city funds provided the city council approves by ordinance a contract with the agent or contractor, which specifies additional security, if any, as may be required in lieu of subsection (a) of this section.

(c)

Refusal of Federal Reserve Bank to act as custodian. In case the Federal Reserve Bank shall refuse to act as custodian under the provisions of this section, the director of finance may enter into a trust agreement with some other banking institution in the city for the keeping and prompt payment of city deposits by a depository bank or banking institution, all in similar manner and with equivalent effect as though such agreement was made with the Federal Reserve Bank under the provisions of section (a).

(d)

Execution and approval of depository agreements. The depository agreements as provided by this section shall be executed for the city by the director of finance or his/her designee.

(Ord. No. 070744, § 1, 7-19-07)