JSD0111 - Section 0500 Scope of Work

8/2/2019 JSD0111 - Section 0500 Scope of Work

1/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK

APPLICATION FOR DEPOSITORY SERVICESRFP JSD0111

JSD0111 Section 0500 SCOPE OF WORK 07/01/111

1.0 GENERAL INFORMATION

The City of Austin is soliciting applications for providing the City depository services forCity funds and certain other activities usually performed by a depository bank. Qualifiedfinancial institutions are invited to submit a sealed application for City Depository forpublic funds of the City of Austin.

The objectives of this solicitation are to identify the banking institution that can offer thehighest quality service at the lowest cost to the taxpayers. This objective is similar to allother goods and services placed on a competitive bidding approach by the City.

The City reserves the right to enter into secondary agreements with banks other thanthe primary bank to make investments of funds that are not immediately needed to payvendors.

The City also reserves the right to enter into secondary agreements with banks other

than the primary depository in order to secure services not provided by the primary.

2.0 SPECIFIC CITY REQUIREMENTS

The contract negotiated between the City and the financial institution selected to serveas the Citys depository institution through this solicitation will encompass the services tobe employed by the City during the term of the contract.

2.1 Qualified Financial Institutions

Only qualified financial institutions shall be considered as the City Depository.The City considers a financial institution to be qualified if it meets each of the

following requirements:

The financial institution must be authorized to do business in Texas and has anoffice or branch physically located within the city limits of the City of Austin that isa member of the Federal Reserve System and is insured by the Federal DepositInsurance Corporation. The institution must be a direct member of NACHA.

The financial institution must demonstrate in its response that it is able to providethe services, accounts, and banking locations required by the City as describedin this solicitation.

The financial institution demonstrates in its response that it will be able to complywith the Citys depository collateral requirements described in this solicitation.

The financial institution currently has a Community Reinvestment Act rating ofsatisfactory or better. A discussion of the Institutions CRA activities will berequired.

2.2 Required Accounts and Detailed Services for Each Account

Below is the list of the 32 accounts required by the City at the time of thisRequest for Application. The City reserves the right to add or subtract accounts


2/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK



as necessary to meet its needs. The City of Austin uses an investment poolstrategy that consolidates funds that can be legally merged under oneinvestment umbrella. To minimize idle bank account funds, the City uses anextensive ZBA account structure for pooled funds. Those funds that cannot be

legally pooled are invested separately and flow through segregated bankaccounts and are described below.

Each account will cycle monthly for statement purposes. The depository shallsubmit a monthly itemized invoice in the form of an Account Analysis. Allaccounts and fees must be included in the monthly account analysis.Additionally, paper as well as online DDA statements are required for eachaccount listed below. The depository will provide additional itemization and/orcorrections should it be considered necessary by the City.

A. Investment Pool Receiving Account. This account, which servesas the City's concentration account for pooled funds, is creditedand/or debited with types of transactions bulleted below.

ACH debit filters are required. Online current and prior daytransaction detail is required, as is online access to addendainformation for ACH credits. Although this is not a checkingaccount, payee positive pay without reconciliation, or a similarsolution, is required so that no checks will pay from this account.Detailed online access to returned items is required. Safekeepingportfolio is required.

Departmental deposits of currency and checks, some of whichare encoded. Most are delivered via armored carrier.

Deposit of investment maturities, calls, sales, and interest

coupons Purchase of investment securities Transfers to and from ZBA accounts, including funding of the

Controlled Disbursement via ZBA Various EFT credits including wire and ACH ACH debits allowed via ACH filter Returned item chargebacks Account Analysis fees Deposit slip order fees

B. Utility Deposit Receiving Account. This ZBA account receivesdaily deposits of utility payments from the Citys remittanceprocessing center via EFT and Image Cash Letter. The ability to

accept an X9.37 Cash Letter or X9.100 formatted Cash Letter, aswell as a notification system of the receipt of the electronic cashletter and corresponding deposit details, is required. A smallamount of pre-encoded paper checks will be delivered daily. ACHdebit filters are required, as is online access to current and priorday transaction detail. Although this is not a checking account,payee positive pay withoutreconciliation, or a similar solution, isrequired to ensure no checks will pay from this account. Detailedonline access to returned items is required.


3/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK



C. PARD Deposit Receiving Account. The Parks and RecreationDepartment deposits cash, including coin, and check collectionsinto this ZBA account daily. Deposits are made through the night

depository and over-the-counter. At least 10 keys are required tonight depository boxes. Online access to prior day transactiondetail. Debits are made by the Citys merchant processor;therefore, ACH debit filters are required. Although this is not achecking account, payee positive pay withoutreconciliation, or asimilar solution, is required to ensure no checks will pay from thisaccount. Detailed online access to returned items is required.

D. Parking Meters Receiving Account. The Parking Meterssection deposits coin, cash, and merchant processing credits intothis ZBA account daily. Deposits are made by armored carrier.ACH debit filters are required. Although this is not a checkingaccount, payee positive pay without reconciliation, or a similarsolution, is required to ensure no checks will pay from thisaccount.

E. EFT Accounts Payable Account. From this ZBA account, anumber of EFT debits are made, with the exception of those fromnon-pooled funds. EFT debits include domestic and internationalwire transfers and ACH. These services are required. ACH debitfilters are required. Online access to current and prior daytransaction detail is required. Although this is not a checkingaccount, payee positive pay without reconciliation, or a similarsolution, is required to ensure no checks will pay from thisaccount.

F. Investment Pool Disbursement Account This controlleddisbursement account is used to pay all City vendors and toreimburse petty cash funds. Online access to current day finalpresentment data is required and desired by 10:00 am CT. Theaccount is required to be funded daily by a ZBA transfer or byautomated bank wire so that a zero balance is achieved at theclose of business each day. Checks are issued and mailed daily.This account requires payee positive-pay, to be transmitted onlineby file as well as the occasional manual entry. Positive paydecisions should also be made via internet. Online image access,paid item inquiry and stop payments are required. This accountalso requires full reconciliation, CD-ROM imaging as well as an

electronic file of cleared items. ACH debit filters are required.Stale date control service is requested.

G. Payroll Account. All City employees are paid through this ZBAaccount. Approximately 93% of all employees are paid via directdeposit payroll. The goal is to have 98% of employees on directdeposit by September 2011. Provisions for receiving directdeposit files are required and described in more detail in 2.3. Theremaining employee payroll payments are made by check. This


4/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK



account requires payee positive-pay, to be transmitted online byfile as well as the occasional manual entry. Positive pay decisionsshould also be made via internet. Online image access, paid iteminquiry and stop payments are required. This account also

requires full reconciliation, CD-ROM imaging as well as anelectronic file of cleared items. ACH debit filters are required.Stale date control service is requested.

H. Employee Benefits. Erisa Administration Account. Employeehealth benefits payments are processed and paid by check fromthis ZBA account by Erisa Administrative Services Inc. bycontractual agreement with the City. Although Erisa is the legalowner of the account, ZBA funding is provided by the City. TheCity shall be responsible for all account activity charges. Thisaccount requires payee positive-pay, to be transmitted online byfile as well as the occasional manual entry. Positive pay decisionsshould also be made via internet. Online image access, paid iteminquiry and stop payments are required. This account alsorequires full reconciliation, CD-ROM imaging as well as anelectronic file of cleared items. ACH debit filters are required.Stale date control service is requested.

I. JI Workers Comp Account. Employee workerscompensation benefits payments are processed and paid bycheck from this ZBA account by JI, by contractual agreement withthe City. Although JI is the legal owner of the account, ZBAfunding is provided by the City. The City is responsible for allaccount activity charges. This account requires payee positive-pay, to be transmitted online by file as well as the occasional

manual entry. Positive pay decisions should also be made viainternet. Online image access, paid item inquiry and stoppayments are required. This account also requires fullreconciliation, CD-ROM imaging as well as an electronic file ofcleared items. ACH debit filters are required. Stale date controlservice is requested.

J. Austin Energy Deposit Refund Account. Austin Energy issuessecurity deposit and other refunds to utility customers from thisZBA account. Checks are issued and mailed approximatelyweekly. This account requires payee positive-pay, to betransmitted online by file as well as the occasional manual entry.Positive pay decisions should also be made via internet. Online

image access, paid item inquiry and stop payments are required.This account also requires full reconciliation, CD-ROM imaging aswell as an electronic file of cleared items. ACH debit filters arerequired. Stale date control service is requested.

K. United Health Care Account. Health care benefits payments areprocessed and paid from this ZBA account by a single daily wiredebit from United Health Care, by contractual agreement with theCity. The City is responsible for all account activity charges. Wire


5/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK



debit ability is required. Although this is not a checking account,payee positive pay withoutreconciliation, or a similar solution, isrequired so that no checks will pay from this account. ACH debitfilters are required.

L. Debt Management Accounts: 14 Accounts. The following 14accounts are required. These are not ZBAs, although a daily zerobalance is achieved manually by the City of Austin. Funds flowingthrough these accounts are segregated and invested separatelyfrom Investment Pool funds. Safekeeping portfolios may berequired for each; currently only one account is actively holdingsecurities. Most transactions through the accounts are wiretransfers out or consist of transfers from other accounts or funds.Although these are not checking accounts, payee positive paywithoutreconciliation, or a similar solution, is required so that nochecks will pay from these accounts. ACH debit blocks arerequired.

Bergstrom Debt Service Fund Bergstrom Construction Fund Bond Interest and Sinking Fund Hotel Occupancy Tax Debt Service Ser A Prior Lien Bond Fund Interest & Redemption Fund Convention Center/Waller Project Bond Debt Service Water/Wastewater Debt Service Fund Electric Utility Debt Service Fund ABIA Development Corp ABIA Variable Debt Service

HOT Subordinate Debt Service Town Lake Debt Service

M. Reserves: 4 Accounts. The following four accounts arerequired. These are not ZBAs, although a daily zero balance isachieved manually by the City of Austin. Funds flowing throughthese accounts are segregated and invested separately fromInvestment Pool funds. Safekeeping portfolios may be requiredfor each; currently only two accounts are actively holdingsecurities. Most transactions through the accounts are wiretransfers out or consist of transfers from other accounts or funds.Although these are not checking accounts, payee positive paywithout

reconciliation is required to ensure no checks will pay fromthese accounts. Online access to previous day transaction detailis required. ACH debit blocks are required.

EUD Debt Management WWW Reserve HOT Reserve Combined Utility Reserve


6/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK



N. Special Purpose Accounts: 3 Accounts. The followingchecking accounts are required in addition to those listed above.They are special purpose accounts that issue checks from time totime as needed. These accounts require payee positive-pay, tobe transmitted manually online. Positive pay decisions shouldalso be made online. Online image access, paid item inquiry andstop payments are required. ACH debit blocks are required.Online access to previous day transaction detail is required.

Austin Convention Enterprises - ACCD imprest fund Waller Creek LGC ACCD imprest fund Urban Renewal Agency- Housing imprest fund

2.3 Required Services

Detailed required services for each DDA account is listed in 2.2 above. In

addition to these required services, the following is a general list of services theCity requires at the time of this RFA. The estimated volume of services used arelisted on the Application Form (Section 0610).

Any deviation from or exceptions to the required services described in thisparagraph should be included in the Application.

A. Collateral requirements - All City funds must be collateralized bythe depository in accordance with State law (Chapter 2257 -Collateral For Public Funds) and the City Code. In addition toChapter 2257 and City Code requirements, the Citys InvestmentPolicy (Section 0620) must be followed. This paragraph containsthe City's requirements. Note in item seven (7) that the City hasdetermined that the minimum level of permanent depositorycollateral to be pledged at all times at the relationship level will be$10 million, regardless of the City of Austins collected or ledgerbalances on deposit.

1. General requirements - The bank selected as the City'sdepository must deposit and pledge, not later than five daysbefore the effective date of the depository contract, approvedsecurities having a market plus accrued interest value no lessthan equal to 100% collateral level required in this solicitation.Securities pledged to the City must be held at a third partybanking institution approved by the City, or in a Treasury

Direct account, in the name of the City with the FederalReserve Bank.

2. Approved securities - "Approved securities" shall mean USTreasury and agency securities having a maturity of less thanfive (5) years. Refer to the Citys Investment Policy (Section0620) for a definition of approved securities. See alsoSection 0615 for a listing of the securities held by the City ofAustin at June 30, 2011 for reference. Note that the City does


7/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK



not accept Collateralized Mortgage Obligations (CMOs) ascollateral.

3. Collateral substitutions and take downs - Upon approval of the

City Treasurer or his designee, the Depository Bank maysubstitute approved securities so long as the total amount ofsecurities pledged is adequate. Likewise, any excess shall bedelivered to the Depository Bank upon approval of the CityTreasurer or his/her designee when not required as part of thecollateral securities.

4. Reporting and valuation - The Depository Bank shall provideat least monthly reports valuing the approved securities,showing the current market value plus accrued interestthrough the date of valuation. Whenever it is determined bythe City Treasurer that collected funds on deposit are not fullycovered by the approved securities, the Depository Bank shallimmediately deposit and pledge additional approved securitiesin an amount sufficient to restore collateral to the requiredlevel. Online access to daily collateral reports is desired.

5. Surety Bonds -The use of a surety bond to meet collateralrequirements will be considered provided the bonding firm isacceptable to the city.

6. Title 12 Title 12 of U.S. Code Paragraph 1823(e) of theFederal Institution Reform, Recovery, Enforcement Act(FIRREA) requires that the Citys security interest in acollateral deposit be perfected by incorporating the following

conditions in a collateral agreement:

The agreement must be in writing.

The agreement has to be executed by the depositoryinstitution and the depositing entity making the claimcontemporaneously with the acquisition of the asset.

The agreement must be approved by the Board ofDirectors or the loan committee of the institution.

The agreement has been an official record of theinstitution continuously since its execution.

In addition, the agreement must specify that upon receipt by theCustodian Bank of the City Managers sworn affidavit statingthat a contract default has occurred and stating the amount ofthe City's resulting loss of deposited funds to the extentreasonably ascertainable by the City, the Custodian Bank shallsurrender the pledged securities to the City. On receipt, theCity is entitled to possession of the securities and may sell thesecurities at either public or private sale in accordance with the


8/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK



Texas Uniform Commercial Code, and apply the proceeds tocover any loss of deposited funds, costs of sale, or expensesustained by City as a result of the Depository default. Anyexcess after liquidation shall be delivered to Depository upon

the City Treasurers direction when not required as part of thecollateral securities. The Depository shall cooperate with theCity in taking any additional actions necessary to perfect theCity's security interest in the pledged securities.

The executed collateral agreement incorporating the fourpreceding conditions must be presented to the City prior to thedeposit of any City funds.

7. Required collateral structure - The City has determined thatthe minimum level of permanent depository collateral to bepledged at all times will be $10 million, regardless of the City

of Austins collected or ledger balances on deposit.

All fees, if any, associated with the provision of collateral mustbe stated in the Application Form. A detailed calculation of thefee must be included and it must be stated if this fee is basedon collected or ledger balances.

B. Deposit Services - The City contracts with an outside armoredcarrier to deliver most City deposits to the Depository Bank. TheCity's Depository Bank must have available a secure unloadingarea which will accommodate armored vehicles. The secureunloading area will be located within the city limits of the City of

Austin. The City desires that a vault be located within the citylimits.

1. Credits - The City requires sequentially encoded deposit slips foreach entity depositing into City accounts. Reporting of deposits bysequence or serial number through the balance reportingmechanism is required. Deposit slips should be ordered throughthe depository and charged through the account analysis.

2. Availability - The City will expect to receive the bank's bestavailability published in its most recent availability schedule andany improvements over its published availability will be passed to

the City. On occasion, the City will request an end-point floatanalysis for selected accounts or dates. The bank's proposedavailability schedule must be included in detail in the application.

3. Non-encoded checks deposited - Deposits of non-encoded checksare deposited daily by several departments via armored car. Someare deposited at the motor banks and the night depository. Thebank must state on the Application Form its cut-off time for sameday credit.


9/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK



4. Encoded checks deposited - Approximately 90% of the City'sencoded checks are deposited by the Citys utility remittanceprocessing center. The remainder are deposited by the City's One

Stop Shop. The applicant must state on the Application Form thecut-off time for same day credit for encoded items. A 6 P.M. cut-offis desired.

5. Image Cash Letter - The ability to accept an X9.37 Cash Letter orX9.100 formatted Cash Letter, as well as a notification system ofthe receipt of the electronic cash letter and corresponding depositdetails, is required. The applicant must include a detaileddescription of the file requirements, reporting/confirmationmechanisms, returns process and notification, and the cut-off timefor same day credit for ICL deposits.

6. Return items - All checks returned unpaid for insufficient fundsmust be presented for payment a second time before they arereturned to the City as charge-backs. All return items must becharged to the account of original deposit and notification of theitem must be made by US mail as well as an image online. TheCity will make every attempt to insure that endorsements conformto the bank's requirements. When the City finds that a check hasbeen charged-back to the incorrect account, the City will requestthat the charge be reversed and the proper account chargedwithout penalty to the City.

7. Currency deposits - Several departments make cash-only and

cash/check deposits via armored car to the vault. They are AustinEnergy (utility payments), Aviation (parking only), Municipal Court,Austin-Travis County Health and Human Services Department,Emergency Medical Services Department, Austin Water Utility,

Austin Police Department, Controllers Office, and the ConventionCenter. The Austin Public Library, Solid Waste Services, and theParks and Recreation Department cash deposits are made bypersonnel to either a night depository or a branch facility (lobby ormotor bank). Although difficult to quantify, it is estimated thecurrency/ coin portion of City of Austin deposits is in excess of $30million annually.

8. Coin deposits The Parking Meter section of the Citys

Transportation Department collects coins from parking metersthroughout the City and delivers collections to its own armoredcarrier for sorting. The armored carrier delivers bags to the bankwith a deposit slip for credit to the Citys account.

C. Check Disbursement Services

1. Controlled disbursement - The City requires one controlleddisbursement account, the Investment Pool Disbursement


10/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK



Account. First presentment reporting via balance reportingmust be available by 8 A.M. CT with a second presentmentreporting required by 10:15 A.M. CT. The City desires aTexas controlled disbursement point. Funding should be

automated via either ZBA or bank initiated transfers so as togenerate a zero balance at the close of business each day.

Checks drawn on the controlled disbursement account mustbe honored if presented for payment at the main depositorybank in Austin. The City will reimburse the Depository throughthe account analysis for any resulting availability deficiency tothe Depository.

2. Non-controlled disbursement - The City will require non-controlled disbursement check services through severalaccounts as described in 2.2 above.

3. Paid check service - The City requires prompt online access tocurrent-month paid check information. If the check is paid, alegible image of both sides must be available online forviewing.

4. Stop Payments - The City requires stop payment services onseveral accounts. Placement and confirmation must beavailable online.

5. Reconciliation - The following reconciliation services arerequired:

o Payee Positive Pay Reconciliation Payee positivePay Reconciliation is currently required for theInvestment Pool Disbursement Account, the EmployeeBenefits ERISA disbursement account, the JI Services- Worker Compensation Account, Payroll Account, andUtility Deposit Refund Account. The City transmits itsissue information daily through the internet. Ability tovoid checks from the issue file without stop paymentfees is required.

Upon contract award, the City will require the file layoutfor this service as soon as possible to allow sufficient

time for an interface setup.

o Paid list reconciliation - A paid list reconciliation will berequired for the Payroll Account and the Austin EnergyDeposit Refund Account. Within five (5) business daysafter the statement closes, the bank will provide thefollowing:


11/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK



Electronic access to paid items and exceptions orrejects including check number, amount paid, datepaid, and sequence or reference number in checknumber sequence;

a paper paid report listing each check number,amount paid, date paid, and sequence or referencenumber in check number sequence;

the bank statement of the account; and

canceled checks (if the account is set-up to receivethem), serially sorted, within ten (10) business daysafter the bank statement closes.

6. Serial Number Sort - The City will require numeric check serialsorting on the Austin Energy Deposit Refund Account.

7. Paid Check Safekeeping - Paid check safekeeping is currentlyused for the Employee Benefits ERISA disbursement account.

8. Stale Dated Check Service The City desires automaticdecisioning abilities for each check that is presented againstits accounts with an issue date longer than six months.

9. Paid Check Images - The City requires each months paidcheck images, front and back, on CD-ROM media for theInvestment Pool Disbursement Account, the Payroll Account,and the Employee Health Benefits Account. Images must be

capable of being printed on laser printers and must be of highquality and admissible as legal documents. Preferred magecapabilities include reverse polarization, zoom, and checknumber or amount indexing

10. Electronic Paid Check File - Two accounts currently requirean electronic file of cleared items for reconciliation to the Citysgeneral ledger. This is in addition to receiving CR-ROMimages of the cleared items. Upon contract award, the Citywill require the file layout for this service as soon as possibleto allow sufficient time for an interface setup.

D. EFT Services

1. Electronic Credits - The City will require internet confirmationof electronic credits. Hard copy or fax notification is notrequired.

2. Electronic Debits - The City will require an internet product forACH and wire initiation. On-line Repetitive, semi-repetitive,and non-repetitive initiation capability as well as confirmation


12/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK



capability is required. Password security and secondaryauthorization capability is required.

Most of the City's ACH and wire transfers are originated out of

the Investment Pool EFT Disbursement Account (a ZBAaccount) for transfers between accounts and vendorpayments. These electronic debits are usually funded bymaturing investments and available balances, includingtransfers from other fund accounts, in the main account.Ideally, proceeds from maturing investments, which areprocessed in the securities/safekeeping area, should beposted real-time to City accounts. If, however, they arememo-posted, the City will require a daylight overdraft facilityor other mechanism for City accounts to insure that release ofthese wires is not delayed due to bank review and approvalrequirements. The response should include details of the

daylight overdraft policy.

3. ACH payroll direct deposit - Approximately 93% of all Cityemployees are on direct deposit payroll. The goal is to have98% of employees on direct deposit by September 2011. Foreach of its bi-weekly payrolls, the City transmits an ACH fileconforming to NACHA format containing employee directdeposit payroll credits. The Depository Bank agrees toperform the services of Originating Bank for these automaticdeposit entries and to abide by the rules of the NationalAutomated Clearing House Association. City agrees to

comply with and be subject to the rules and operatingguidelines of the National Automated Clearing HouseAssociation. Applicants will be required to provide acontingency plan in the event of processing problems fordirect deposit in the application response.

4. Outgoing ACH transactions - The City originates ACHdebits/credits to transfer funds between City accounts and topay certain vendors. A number of non-originated ACH Debitsare also received each month. An internet product allowinginitiation of ACH transactions in standard ACH and CCD+format is required.

5. Incoming ACH transactions - The City receives a number ofACH credits each month, particularly State sales tax and otherdistributions, Federal grant proceeds, and credit cardproceeds. Some of these are received in CCD+ format.Access to addendum details is required.

E. Additional Online Requirements and Balance/TransactionReporting If the financial institution utilizes any supplier or vendor


13/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK



to act on the financial institutions behalf to conduct accountmanagement, customer service, collection activities or have fiduciaryresponsibility over the institution, customer or associate funds, thefinancial institution is required to obtain a satisfactory SAS70 audit

from the supplier or vendor and review it for acceptability. Wheneverinformation is moved across national boundaries, the financialinstitution must ensure compliance with all laws and regulationsrelated to privacy and encryption. The financial institution shouldprovide a SAS70 audit annually for its online product. Further,confidential information should not be placed into a public cloud, andany utilization of a private cloud should be detailed in this response.for any supplier, a SAS70 audit should be required

Dual security administration is required for the various entitlementsneeded to transact banking online.

Additionally, the City requires an extensive balance/transactionreporting internet product. This product is used for a number offunctions including reconciliation, cash position management,transaction notification, and accounting/journal entry support.Therefore, the City will require the following capabilities, at aminimum:

1. Ability to download the information in CSV format to MicrosoftExcel and/or Microsoft Access for selected accounts with a 10day minimum online history:

Current day balances and transaction detail for select

accounts as listed in 2.2 and Previous day balances and transaction detail for all

accounts.

2. Ability to download the following information in CSV format toMicrosoft Excel for all accounts with a 10 day minimum onlinehistory:

Prior day closing ledger balance; Prior day closing collected balance; One Day float; Two Day float; Summary of prior day account debits and Summary of prior day account credits.

F. ZBA accounts - At present, the City requires nine (9) ZBA accounts.A zero balance will be achieved by the bank in each of the accountsat the close of business each day by transferring an appropriateamount to or from the Investment Pool Receiving Account.Transactions that create daylight overdrafts in ZBAs prior to the closeof business will be honored.


14/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK



G. Change orders - Several City departments require change orderscontaining currency and coin. Change orders are placed by phone orinternet and returned the next day in the locking deposit bagcontaining the previous day's validated deposit slip. Payment is made

by automated debit by the bank on the day the order is filled.

H. Securities clearance - As the City's depository, the Offeror will berequired to serve as transfer agent for security transactions initiatedby the City. All transfers must be executed delivery verses payment.Delivery of instructions on-line is desired.

I. Safekeeping - The City will require that safekeeping receipts beissued within two business days following receipt of securities.Monthly statements of holdings are required. All book entry securitiesshall be listed at the Federal Reserve under the Bank's customeraccount. Such securities shall not be commingled with bank assets.The bank shall keep accurate records specifically identifying whichinvestments belong to the City and the City shall have access tothese records at all times. On-line access to safekeeping records isdesired.

Securities which serve as collateral for repurchase agreements withdealers must be delivered to a third-party custodian acceptable to theCity. Pursuant to State Law, the custodian bank shall be:

A state or national bank that is designed by the comptroller as a statedepository, has its main office or a branch office in this state and hasa capital stock and a permanent surplus of $5 million or more; or

The Texas Treasury Safekeeping Trust Company; or a Federal Reserve Bank or a branch of a Federal ReserveBank; or

a federal home loan bank.

J. Payroll and Employee Petty Cash check cashing. All cityemployees serving as petty cash custodians and employees not ondirect deposit will be permitted to cash their City petty cash andpayroll checks at any of the bank's locations within the Austin-SanMarcos MSA at no charge, including those who do not maintainaccounts. The bank's standard check cashing guidelines regardingproper identification will apply to all employees.

K. Overdrafts. Applicants will be asked to submit informal and/or formalprocedures for handling overdrafts on the Citys aggregate accountbalances. Any agreement required by applicants to be executed inconnection with a formal overdraft facility should be submitted withthe application response. Any overdraft facility will be utilized as aback-up facility and the City does not intend to use it as a source ofcredit. The term "Overdraft," as used in the preceding sentence forpurposes of determining the payable interest to the Depository Bank,shall mean negative balances in all city demand accounts netted


15/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK



against positive balances in all other city accounts as determined onthe City's monthly consolidated average net collected balanceposition.

1. Ledger- Although it is the City's policy to avoid overnightledger overdrafts at all times, they do occur on an infrequentbasis. The Depository Bank will be requested to provide anoverdraft facility for this purpose. The terms of an overdraftfacility will be negotiated by the parties and inserted in theDepository Contract. Ledger overdraft fee should be insertedon the bid sheet in the space provided.

2. Collected - Collected overdrafts may occur from time to time inany City account, particularly the Investment Pool ReceivingAccount due to the unpredictable level of float in the account.The City desires that no interest charges for overnightcollected balance overdrafts in any City account be incurred,

unless a collected deficit occurs in the City's total averagecollected balance position for an entire month. Any deviationfrom this stipulation must be stated in the applicationresponse. The City reserves the right to add an estimatedcost to the total bid if it will be the applicants policy to assesscollected overdrafts interest charges per occurrence, peraccount.

The applicants money market basis for calculating interest oncollected balance deficits, or other calculation method, mustbe clearly outlined on the Application Form.

3. Daylight - Due to the nature of its business, the City will createdaylight overdrafts. The applicant will be asked to describe itsdaylight overdraft policy in the application response. If it is theapplicants policy not to allow daylight overdrafts, this shouldbe stated as an exception in the application response.

L. Reports. The Depository Bank shall furnish reports/statementsregarding the City's accounts and services performed under thecontract in a form and content satisfactory to the City of Austin ChiefFinancial Officer, and comply with requests from external auditors asdirected by the City Manager, Assistant City Manager, City of AustinChief Financial Officer, City Treasurer, or City Controller.

M. Disaster/Pandemic Preparedness. The City requires that detailedplans be put in place to deliver the services outlined in thesespecifications during times of disaster or pandemic outbreaks. Adiscussion of pandemic influenza preparedness will be required in theapplication response.

N. Errors. Bank errors resulting in lost interest to either party, such asloss of availability, will be reimbursed by improving or deproving theCity's collected balance position. The City will be notified immediately


16/16

CITY OF AUSTIN

PURCHASING OFFICE

SCOPE OF WORK



of such improvements or deprovements in writing. A recap ofimprovements and deprovements in the monthly account analysis isdesired. Fee corrections noticed in the account analysis will bebrought to the depositorys attention and corrected prior to the next

months analysis statement.

O. Compliance with the Texas Public Funds Investment Act. Allapplicants must comply with the Texas Public Funds Investment Actand sign the Citys PFIA acknowledgement, included in Section 0625.

Documents

JSD0111 - Section 0500 Scope of Work