143.03 DESIGNATION OF ELIGIBLE DEPOSITORIES.

   (a)   The Director shall provide written notification to all depositories having an office which receives deposits within the City or the City of Cleveland, and such other depositories as determined by the Director, at least sixty (60) days prior to the date of designation of eligible depositories by the Director pursuant to division (b) of this section. Such notice shall:

      (1)   Request the depository to apply in writing for all or a portion of the City's public deposits on or before a date specified in the notice;

      (2)   Identify the term of the proposed agreement with the depository, which period shall not exceed five (5) years;

      (3)   Require each depository to submit in its application for designation as an eligible depository the following:

         A.   The amount of the City's active deposits that the depository will accept for deposit;

         B.   The rate or rates of interest, if any, that will be paid on the City's active deposits;

         C.   The location of the depository's offices in the City or, if no offices are located in the City, the location of its nearest offices;

         D.   A complete listing of all services provided by the depository and the amount of any service charges to be paid by the City for such services;

         E.   The most recent audited financial statements of the depository;

         F.   A description of any program for the redeposit of funds into other depositories that are in compliance with division (c) of this Section and the Ohio Uniform Depository Act; and

         G.   Such other data or information deemed relevant by the Director.

   The application submitted by the depository shall be used by the Director to designate the City's eligible depositories in accordance with division (b) of this section.

   (b)   The Director shall designate one or more depositories as the eligible depository or eligible depositories of the City's active deposits. The designation of such eligible depository or eligible depositories shall be for a period of not to exceed five (5) years, provided that, if more than one depository is designated an eligible depository, the period of such designations shall be the same for all of the eligible depositories. The Director shall consider the following in making such designation:

      (1)   The rate or rates of interest paid on active deposits and the types of accounts that active deposits may be placed in;

      (2)   The convenience of the location of the depository's offices;

      (3)   The service charges, if any, that will have to be paid for the services of the depository;

      (4)   The financial stability of the depository;

      (5)   Such additional information as may be required by the cash management and investment policy promulgated pursuant to Section 143.09; and

      (6)   Any terms or conditions of the depository before accepting the City's active deposits.

   (c)   The Director may authorize the City's depository or depositories to arrange for the redeposit of the City's funds in accordance with the following conditions:

      (1)   The depository, on or after the date the City's funds are received, shall arrange for the redeposit of the funds into deposit accounts in one or more federally insured banks, savings banks, or savings and loan associations that are located in the United States, and shall act as custodian of the moneys deposited or redeposited.

      (2)    If the amount of the City funds deposited with and held at the close of business by the City's depository exceeds the amount insured by the federal deposit insurance corporation, the excess amount shall be subject to the pledging requirements described in Section 135.18 or 135.181 of the Revised Code and Chapter 143 of the Codified Ordinances.

      (3)    The full amount of the City funds redeposited by the City's depository into deposit accounts in banks, savings banks, or savings and loan associations, plus any accrued interest, shall be insured by the federal deposit insurance corporation.

      (4)    On the same date the City's funds are redeposited by the City's depository, the City's depository may, in its sole discretion, choose whether to receive deposits, in any amount, from other banks, savings banks, or savings and loan associations.

      (5)    The City's depository shall provide to the City's Director of Finance an account statement at least monthly and access to daily reporting that include the amount of the City's funds deposited and held at each bank, savings bank, or savings and loan association for which the City's depository acts as a custodian pursuant to this section.

      (6)   Except as provided in division (c)(2) of this section, the City funds deposited in accordance with this section are not subject to the pledging requirements described in Section 135.18 or 135.181 of the Revised Code and Chapter 143 of the Codified Ordinances.

   (d)   The limitations on the aggregate amount of public monies (as defined in the Uniform Depository Act) which may be deposited with eligible depositories as set forth in the Uniform Depository Act shall be applicable to deposits made by the City in eligible depositories pursuant to this chapter. (Ord. 15-08. Enacted 1-26-15.)