Res 2015-135/approving an agreement between the City and Wells Fargo Bank, N.A. for the provision of Depository Services contingent upon the depository’s provision of sufficient insurance in accordance with the attached agreement

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I. Rt'qt iriI d services The applicant is expected to provide all the services detailed and comply with all provisions set forth in this RFA. The applicant will attach sample copies of all reports and standard contracts or agreements for service, as applicable. A. Consolidated account structure with sweep mechanism: The City is interested in assuring that all funds are earning the best, then - current interest rates available at all times. The City requires access to an automated, daily sweep to a AAA money market. A Security and Exchange Commission ( "SEC ") registered government, or enhanced government, money market fund rated AAA by at least one nationally recognized rating service is required. A repurchase agreement with the successful applicant is not acceptable as a sweep investment vehicle. On a compensating balance basis, any earnings (credit /debit) will be carried over for net settlement on a semi - annual basis. Excess balances cannot be carried forward beyond your monthly settlement period. The City is currently on a quarterly analysis schedule can continue. Respond to the following: Fully describe the proposed sweep mechanism(s) focusing on the bank's most cost effective structure. Detail whether the sweep will be from a master account with Zero Balance Accounts ( "ZBAs "), or directly swept from the individual accounts. If the applicant cannot provide a sweep mechanism, or if alternative account types are proposed in lieu of a sweep, describe the alternative proposed 'including the type of accounts (interest bearing, money market, ZBA, etc.) along with the overall structure. We recommend using account balances to offset service fees, and then any excess could be placed in outside investment pools or bank money market accounts. As rates rise we will reevaluate the City's needs and offer a ZBA structure to concentrate funds (if so desired), or recommend using Wells Fargo Institutional Brokerage to facilitate investment of funds. Wells Fargo recommends using Earnings Allowance to offset service fees. We are offering an Earnings Credit Rate with a floor or 45 bps, then the go day T- bill once the rate rise above 45 bps.