CC Resolution No. 6033•
RESOLUTION NO. 6033
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
SUPERCEDING RESOLUTION NO. 5939 REVISING GUIDELINES FOR
DESIGNATION OF BANK AS DEPOSITORY FOR CITY'S COMMERCIAL ACCOUNT
WHEREAS, the City Council heretofor has adopted its Resolution No. 5939 con—
taining Statements of Policy Relating to City Treasury Functions as a means toward
successful administration of good financial planning; and
WHEREAS, it has been deemed to be in the best interest of the City to establish
a formal policy on the method by which banks are designated as the depository for the
City's commercial account; and
WHEREAS, guidelines have been developed as an aide in the evaluation of proposals
and in the designation of such banks;
NOW, THEREFORE, BE IT RESOLVED that the Guidelines attached hereto are hereby
adopted by the City Council of the City of Cupertino with the same to remain in
effect until modified by Council action;
BE IT FURTHER RESOLVED that adoption of said Guidelines does not constitute
Modification of Resolution No. 5939 and that the Statements of Policy Relating to
Treasury Functions contained therein continue to remain in effect.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 7th day of February , 1983, by the following vote:
Vote Members of the City Council
AYES: Johnson, Plungy, Rogers, Sparks, Gatto
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: APPROVED:
City Clerk yor, City of Cup rtino
CITY OF CUPERTINO
GUIDELINES FOR DESIGNATION OF BANK AS DEPOSITORY FOR
CITY'S COMMERCIAL CHECKING ACCOUNT
Established by Resolution
February 7, 1983
Definition
The term bank hereinafter used means that which has been designated to be the
depository for moneys received by the City and against which checks or warrants are
drawn in payment of incurred obligations. Excluded therefrom are such banks which
by separate agreement have been designated to act on behalf of the City as a Fiscal
Agent or a Paying Agent with respect to bonded indebtedness and other similar finan-
cial transactions.
Policy
Non -preferential treatment shall be the policy of the City in the selection of
which bank will be used for the servicing of the City's account consistent with
equality and convenience of such service being provided.
Designation of the bank shall remain the prerogative of the City Council.
Acceptance of proposals from any bank whether solicited or otherwise received
will be limited to those submitted in writing. Presentations or discussions for
further elaboration or clarification may subsequently be made before the City Council
or with City staff representative.
No maximum time limit shall be established for a designated bank but considera-
tion without prejudice will be given for a transfer of account not later than five
years subsequent to the original award; provided, however, that quality and levels
of service remain acceptable and consistent with the proposal submitted and used as
the basis of the award.
Basis for Designation
Evaluation of any proposal for becoming a designated bank will be made on the
basis of availability and levels of service to be provided. The award as a designated
bank will be on the basis of what is in the best interest of the City in terms of
cost, type and level of service to be provided.
In the absence of any other criterion or mitigating circumstance as the basis
for designation of a bank the award will be made in order of length of residency
within the City as a commercial enterprise.
Considerations
In evaluation proposals consideration will be given to the availability and levels
of the following services and the cost impact, if any, each has on the City. Con-
sideration also may be given to other types of service not specifically listed but
which may comprise a part of any proposal.
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Consi:erations (continued)
Minimum balance to be maintained in the account in lieu of the imposition of
any service charges.
Assurance for the handling, collection and payment of checks, drafts and other
items of exchange.
Availability of repurchase agreements and conditions thereof for short term
investments as well as the method of implementation.
Terms and conditions under which alternatives to repurchase agreements as short
term investments may be made available.
Same day crediting to City's account of deposits of State subventions and grants
made in Sacramento.
Acceptance and receipt of withheld payroll taxes.
Printing to City specifications of checks or warrants for payroll and general
purposes.
Submission immediately after the end of each calendar month of itemized bank
statements accompanied by pre-sorted cancelled checks.
Availability of a passbook savings account and the limitations thereon with
waiver of service charges.
Hours of banking operations and accessibility consistent with the needs of the
City.
Availability of automatic check reconciliation.
Provide wire transfers to other banking institutions.
Provide security service to transport daily deposits.
Availability of other services as needed:
Economic research
Fiscal agent for trust funds
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