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HomeMy WebLinkAbout73-07 OrdinanceRECORD OF ORDINANCES Dayton Legal Blank, Inc. Form No. 30043 73 -07 Ordinance No. Passed 20 AN ORDINANCE DESIGNATING ELIGIBLE FINANCIAL INSTITUTIONS AS PUBLIC DEPOSITORIES 1 I WHEREAS, Section 135.01 (L) of the Ohio Revised Code provides that any municipal corporation which has adopted a charter may, by ordinance, set forth special provisions for the deposit or investment of its public monies; and WHEREAS, the electors of the City of Dublin have adopted a charter, and the charter provides that legislation may be adopted to establish policy for the investment of the City's monies; and WHEREAS, Section 135.12 of the Ohio Revised Code provides that designations of eligible depositories extend for a period of time not exceeding five years in length ; and WHEREAS, the City of Dublin has received applications for deposit of active and interim monies from various eligible financial institutions; and WHEREAS, the City of Dublin has established good working relationships with its existing designated public depository financial institutions, and has negotiated a favorable bank service fee structure for its active monies on deposit for the next five years. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, of the elected members concurring that: Section 1 . The following eligible financial institutions be designated as public depositories of the City of Dublin's public monies for a five year period from November 1, 2007 through October 31, 2012: Financial Institution JP Morgan Chase Bank Champaign National Bank Fifth Third Bank Heartland Bank Huntington National Bank Key Bank National Association Maximum Balance Maximum Balance Active Deposits Interim Deposits $20,000,000 $40,000,000 3,000,000 3,000,000 100,000,000 100,000,000 -0- 3,000,000 5,000,000 5,000,000 aggregate of both active and interim not to exceed $50,000,000 20,000,000 20,000,000 100,000,000 100,000,000 National City Bank U.S. Bank f J Section 2 . The active deposits of the City of Dublin be awarded to JP Morgan Chase Bank for the period November 1, 2007 through October 31, 2012, except for those deposits noted in Section 3. Section 3 . Active deposits be awarded to National City Bank in amounts limited to the payment obligations incurred by the City of Dublin under its purchasing card program with said institution. Section 4 . The City Manager and Director of Finance are authorized and directed to enter into the agreements necessary to implement this ordinance. Section 5 . This Ordinance shall take effect and be in force on the earliest date permitted by law. Passed this / day of 00 tf/ 2007. Mayor - Presiding Officer ATTEST: Clerk of Council CITY OF DUBLIN_ Office of the City Manager 5200 Emerald Parkway • Dublin, OH 43017 -1006 Phone: 614- 410 -4400 • Fax: 614- 410 -4490 Memo TO: Members of City Council FROM: Jane S. Brautigam, City Manager DATE: September 13, 2007 INITIATED BY: Marsha I. Grigsby, Deputy City Manager/Director of Finance Stephen A. Sova, Director of Accounting & Auditing Summary RE: Ordinance No. 73 -07, An Ordinance Designating Eligible Financial Institutions As Public Depositories Section 135.12 of the Ohio Revised Code requires governmental entities to designate individual financial institutions as depositories of public monies for a period not to exceed five years. The City of Dublin's current depository agreements with various local banks expire on October 31, 2007. This ordinance authorizes new depository agreements for the period November 1, 2007 to October 31, 2012. The City's active funds are currently on deposit with JPMorganChase Bank, with a small amount also at National City Bank to the extent that such funds are needed to meet the City's obligations incurred under the purchasing card program. Staff recommends that the City retain JPMorganChase as its primary depository for active monies, based on several factors: • JPMorganChase has been the depository of the City's active money since 1989; • Fees charged by JPMorganChase have remained unchanged since 1997, and the bank has agreed to maintain those same fees unchanged for the next five years; • Service fees being charged by JPMorgan Chase are comparable to, or in some cases lower than, those being charged to other local municipalities such as Upper Arlington and Westerville by their respective financial institutions; • The City's online accounting system and financial operations are highly integrated and automated with its existing accounts at JPMorganChase through the bank's proprietary, Internet -based "Access" system; and • Finance staff has developed and maintained an excellent working relationship with the same two account representatives at JPMorganChase for over seven years, and is very pleased with the consistently high level of service received. Several local banks have submitted applications to be considered as eligible depositories for interim deposits as well. Periodically, the City invests interim deposits (amounts not needed immediately to support daily operations) in certificates of deposit or similar time deposits. Such amounts are awarded to the bank offering the best and most advantageous terms at the time of investment. Recommendation Staff recommends adoption of Ordinance No. 73 -07 at the second reading /public hearing on October 1, 2007.