ORDINANCE NO. 030573

Amending Chapter 2 of the Code of Ordinances by repealing Section 2-1614 and enacting in its place new Section 2-1614 which adds a subsection to allow the use of banks not within the city and/or banks within the City acting on behalf of an agent or private contractor of the City; and repealing Section 2-200 and enacting in its place a new Section 2-200 which adds a subsection to allow agents or private contractors acting on behalf of the City to deposit funds collected by them to the Citys bank account on terms determined by ordinance of the City Council.

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That Chapter 2, Article XI of the Code of Ordinances is hereby amended by repealing Section 2-1614 and enacting in its place a new Section 2-1614 to read as follows:

Sec. 2-1614. Selection of depositories.

(a) Generally. On December 1 each four years, commencing December 1, 1992, and whenever occasion may require, the director of finance shall select and recommend to the city council banks or banking institutions in the city which will agree to act as depositories for city funds as provided in this division for a period of four years beginning on February 1 next ensuing, with the option of termination by either the city or the bank or banking institution on giving 30 days' written notice to the other party. The director of finance, with approval of the city council and the depository bank or banking institution, may extend such contract for additional periods of four years. The treasurer shall keep the city funds in the banks or banking institutions so selected; however, before any bank or banking institution shall be so selected or deposits made therein by the treasurer, such bank or banking institution shall enter into agreement with the city and the Federal Reserve Bank located in the city, whereby the bank or banking institution agrees to and does deposit with the Federal Reserve Bank as custodian for the city such collateral securities as provided by section 2-1617 for the safekeeping and prompt payment of city deposits. The market value of such securities shall at all times be not less than ten percent in excess of the maximum amount deposited by the city in such bank or banking institution, except as otherwise provided in section 2-1617. The cost and expense of the administration of such agreements shall be borne by such depository bank or banking institution. So long as such depository bank or banking institution is not in default in the safekeeping and prompt payment of the city deposits, it shall be permitted to detach and collect all interest coupons and interest upon such securities. No change or substitution of such securities or any part of the securities shall be made unless approved in writing by the director of finance. The securities deposited under the provisions of this section shall be approved by the director of finance.

(b) Allocation of funds. The director of finance shall furnish an estimate of the maximum amount of funds to be deposited and shall recommend the allocation of funds between the several banks or banking institutions as will furnish collateral security and accept the funds. Funds shall be allocated in units of $25,000.00 each, and no bank or banking institution shall receive more than one-third of the estimate furnished by the director of finance of the maximum amount of funds to be deposited. Should the funds of the city at any time exceed the amount of the estimate, then the director of finance may order additional collateral securities to be given by such banks or banking institutions as are willing to temporarily increase the amount of collateral securities for the protection of city funds, so that the sum of the securities shall be at least ten percent more than the total amount of the city funds deposited in such banks or banking institutions; however, when authorized to do so by the city council, the director of finance may invest the excess of deposits in securities as provided by article IV, section 79 of the Charter. The city treasurer shall not be responsible for any loss from the failure or default of any depository bank or banking institution in performing the provisions of this article.

(c) Banks not within city. Banks or banking institutions not located within the city may be selected as depositories for city funds under the requirements of subsection (a) of this section provided such banks or banking institutions execute agreements under the city's linked deposit program as set forth in Ordinance No. 63537 as it is currently in effect or as hereafter amended. The limit of such deposit shall be determined by the director of finance in the same manner required for other deposits under subsection (b) of this section.

(d) Banks not within the city and/or banks within the city acting on behalf of an agent or private contractor of the city. Banks or banking institutions not located within the city and/or banks within the city acting on behalf of an agent or private contractor of the city may act as depositories for city funds provided the city council approves by ordinance a contract with the agent or contractor, which specifies additional security, if any, as may be required in lieu of subsection (a) of this section.

Section 2. That Chapter 2, Article V of the Code of Ordinances is hereby amended by repealing Section 2-200 and enacting in its place a new Section 2-200 to read as follows:

Sec. 2-200. Payment into treasury of moneys collected by city officials; daily deposit of moneys received by treasurer.

(a) All moneys belonging to the city and collected by any officer or employee shall be paid into the city treasury before 3:00 p.m. of the business day next following the day of such collection. All moneys received by the city treasurer shall be deposited by him daily in a bank or banking institution designated as the depository of the city funds.

(b) Where collections are small and do not accumulate to an amount in excess of $100.00 in one week, such moneys shall be paid into the city treasury once each week, or whenever the sum of $100.00 is accumulated, if such sum is accumulated in a lesser period of time; except that no funds in any amount may be held beyond the last business day of each month or the last business day of the fiscal year.

(c) Agents or private contractors acting on behalf of the city. Agents or private contractors charged with collecting moneys belonging to the city shall be required to meet the citys daily deposit requirements as described in subsections (a) and (b) of this section, unless otherwise specified by ordinance of the city council.

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Approved as to form and legality:

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Assistant City Attorney