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RE 10-24-95.1 RESOLUTION NO. 102495.1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS APPROVING THE BANK DEPOSITORY AGREEMENT AND DESIGNATING OVERTON BANK & TRUST AS THE CITY DEPOSITORY; ADOPTING THE PROPOSAL ATTACHED HERETO AND MADE PART OF; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City has given notice and requested proposals from all the banks doing business within the City for provision of the City's depository and banking services, and WHEREAS, applications were received, opened, and publicly accepted on August 31, 1995; and WHEREAS, after review and consideration of the proposals received, it is the determination of the City Council that Overton Bank & Trust Coppell be designated as the city Depository. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF COPPELL, TEXAS, THAT: SECTION 1. That the proposal for City depository and banking services submitted by Overton Bank & Trust Coppell be the agreement for City depository and banking services, and attached hereto and made a part hereof for all purposes be and the same are hereby approved. SECTION 2. That Overton Bank & Trust Coppell such bank shall be designated a Depository for the funds of the City of Coppell, Texas, from and after the execution of the depository agreement and the effective date set forth therein. SECTION 3. That the bank shall qualify as a Depository by providing security for the City's funds to be deposited with the bank within five (5) days after the date of execution and return of the resolution by the bank. SECTION 4. That the City Manager be and he is hereby authorized and directed to deliver a copy of this resolution. The bank shall, if it accepts the terms hereof, execute and return a true copy of the Depository Agreement to the City Manager within five (5) business days after receiving the same. SECTION 5. That Overton Bank & Trust Coppell shall be the City's Depository Bank for a two (2) year period beginning December 1, 1995, and ending November 30, 1997. DULY PASSED AND APPROVED by the City Council of the City of Coppell, Texas on the 24th day of October, 1995. ATTEST: L~a Grau, City Secretary APPROVED AS TO FORM: y~A~omey~ BANKSVC.P,~L DEPOSITORY AGREEMENT STATE OF TEXAS § § KNOW ALL MI~ BY THF~qE PRESENT: COUNTY OF DALLAS § This agreement is made and entered into by and between the City of Coppell, Texas (hereinafter referred to as "City"), and Overton Bank & Trust (hereinafter referred to as "Bank"), and to which witness the following: WHEREAS, the City received bids from banks desiring to be designated as the city Depository; and WHEREAS, on the 24th day of October, 1995, the Bank was designated the City Depository for the City; now, therefore, in consideration of the mutual benefits, consideration, covenants and conditions contained herein, the parties agree as follows: 1. TERMS The Bank has been duly selected by the City as the Depository of certain funds of the City from the 1st day of December, 1995, through the 30th day of November 1997, or thereafter until the successor depository shall have been duly selected and qualified according to state law. This contract shall be automatically extended up to ninety (90) days if the City is actually proceeding with re-bidding procedures but, for whatever reason, cannot finalize the bidding or selection process by the end of the contract period. 2. TERMINATION The Bank or City may cancel this agreement at any time upon ninety (90) days prior written notice of its intent to terminate. 3. BANKING SERVICES TO BE PROVIDED The Bank agrees to provide the following materials and services without charge (Unless otherwise provided for in Addendum or Exhibit HA"): A. Customary demand deposit account service for as many accounts as may be required by the City. In addition to customary account services, the bank agrees to return deposit tickets and checks in numerical sequence and numerical listing of checks on statement. B. Provide complete investment service including assistance in acquiring investment securities, counseling, reporting, and safekeeping service for securities owned. C. Provide bank money orders, traveler's checks and cashier checks as required by the City. D. Provide a night depository and locking depository bags. E. Clear all insufficient funds checks twice before charging them to the applicable City bank account and returning them to the City, except for checks deposited from ad valorem property tax collections. Checks deposited from ad valorem property tax collections will be processed or cleared one time only. Insufficient funds checks from ad valorem property tax collections will be charged to the applicable City bank account and returned to the City after the initial attempted clearing process. F. Provide stop payment services. G. Provide wire transfer service. It is understood that the City of Coppell uses the wire transfer service as a means of accelerating various types of payments. H. Provide monthly bank statements on each account within five (5) working days of closing date. Statements are to reflect transactions beginning with the first day of the month and ending with the last day of the month and include all checks and deposit tickets. I. Provide collected and ledger balances by telephone as often as daily if required. J. Provide ledger credit on the same day as deposits occur (holidays and weekends excepted). This includes same day credit on wire transfers on funds from Federal and State Governments, and same day credit on warrants issued by the State Comptroller. K. Provide remittance service to various paying agents for required principal and/or interest payments on bonds. L. Monitor City investment securities held by depository bank to provide same day credit to the appropriate City account (s) automatically upon maturities, and provide deposit slips at maturity dates. There is a one (1) day delay on interest payments but not on principal. M. Honor Federal Reserve depository transfer checks drawn on the City's account which are authorized by the City. N. Provide foreign and domestic exchange services. O. Provide coin wrappers and accept bulk coins for deposit. -2- P. Provide fire proof safekeeping and storage of magnetic media for Data Processing. Q. Prove courtesy of cashing City employee's payroll checks. R. Provide free checking accounts for City employees (See Exhibit "C"). S. Supply deposit slips according to quality, quantity, design and specifications established by the City. T. Provide direct deposit payroll for City employees. LI. Other benefits available to full-time employees (See Exhibit "C"). V. Lock box services when required. W. ACH services when required. X. Daylight Overdrafts when required must be covered by close of business. Y. All other Bank services without charge except for those prohibited by State or Federal regulations. 4. Interest Rates To Be Paid on Single Maturity Time Deposits: A. Interest rate indicated is variable (floating) and is related to the 26-week (auction) U.S. Treasury Bill rate in effect as specified in the Wall Street Journal for the week of the investment in terms of percent or number of basis points above the indicated rate. (1) Deposits of $500,000 or more: Maturity Interest Rate = Fixed for term of Deposit 01-13 days __ % or 145 basis points under 26-week Treasury Bill Rate* 14-29 days ~ % or 145 basis points under 26-week Treasury Bill Rate* 30-59 days __ % or 95 basis points under 26-week Treasury Bill Rate* 60-89 days __ % or 70 basis points under 26-week Treasury Bill Rate* 90-179 days __ % or 45 basis points under 26-week Treasury Bill Rate* 180-364 days __ % or 20 basis points under 26-week Treasury Bill Rate* -3- 365 days and above __ % or 20 . basis points above one year Treasury Constant Maturity Rate* * In no event will the interest rate on single maturity time deposits of $500,000 or more be less than 3 % during the term of the depository and banking services agreement. (2) Deposits of $100,000 to less than $500,000: Maturity Interest Rate = Fixed for term of Deposit 01-13 days ~ % or 145 basis points under 26-week Treasury Bill Rate* 14-29 days __ % or 145 basis points under 26-week Treasury Bill Rate* 30-59 days __ % or 95 basis points under 26-week Treasury Bill Rate* 60-89 days ~ % or 70 basis points under 26-week Treasury Bill Rate* 90-179 days __ % or 45 basis points under 26-week Treasury Bill Rate* 180-364 days __ % or 20 basis points under 26-week Treasury Bill Rate* 365 days and above % or 20 basis points above one year Treasury Constant Maturity Rate* * In no event will the interest rate on single maturity time deposits of $100,000 to less than $500,000 be less than } % during the term of the depository and banking services agreement. (3) Deposits of less than $I00,000: Maturity Interest Rate --- Fixed for term of Deposit 01-13 days ~ % or 145 basis points under 26-week Treasury Bill Rate* 14-29 days __ % or 145 basis points under 26-week Treasury Bill Rate* 30-59 days __ % or 95 basis points under 26-week Treasury Bill Rate* 60-89 days __ % or 70 basis points under 26-week Treasury Bill Rate* 90-179 days __ % or 45 basis points under 26-week Treasury Bill Rate* 180-364 days % or 20 basis points under 26-week Treasury Bill Rate* -4- 365 days and above __ % or 20 basis points above one year Treasury Constant Maturity Rate* * In no event will the interest rate on a single maturity time deposit of less than $100,000 be less than 2[ % during the term of the depository and banking services agreement. 5. DEMAND ACCOUNTS (See Addendum) A. Money Market Deposit Account/Concentration Account: This account will receive all deposits and wires. The Bank will initiate all transfers to the zero balance accounts daily. The Money Market Account should have a balance of approximately $2,000,000.00 on December 1, 1995. The interest rate indicated is variable (floating) and is related to the 26-week (auction) U. S. Treasury Bill Rate in effect as specified in the Wall Street 1ournal for the week of the investment. 6. ZERO BALANCE ACCOUNTS (See Exhibit "At') A. General Fund Account: This account will receive deposits transferred from the money market account for payment of the City's expenses. B. Payroll Account: This account will receive deposits transferred from the money market account for payment of the City's payroll. 7. INTEREST RATE ON LOANS TO THE CITY Loans will be made to the City at a rate of Prime + Floating, % per annum to pay current operating expenditures as may be appropriated by ordinance with such loans to be repaid out of the first current tax collection. Loans will be made to the City at the rate of Prime + Floating % per annum to pay non- operating expenditures and/or purchase equipment or other expenditures as may be appropriated by ordinance with such loans to be repaid on a scheduled basis as agreed to by the City and by the bank. The maximum total loans at any one time will be the largest amount which the undersigned is legally authorized to loan. At August 2, 1995, the maximum loan limit of the undersigned is $ 6,079,500.00. 8. OVERDRAFTS IN DEMAND ACCOUNTS The undersigned agrees to allow overdrafts in demand accounts for a period not to exceed 0 banking days. To the extent that overdrafts do exceed balances in other demand accounts, we will charge Overton Prime + 2 % per annum interest thereon. 9. COLLATERAL SECURITIES FOR DEPOSITS The undersigned shall furnish to the City a bond in the amount and conditioned as provided by the laws of Texas, or in lieu thereof, pledge securities as provided by the laws of Texas (Article 2560, Revised Civil Statutes of Texas, as amended) as required by the City. The City will accept as collateral for its certificates of deposits and other evidences of deposit the following securities: (All securities should be rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than 'A" or its equivalen0. (The pledged securities must conform with the Public Funds Investment Act of 1995 as amended, which includes but is not limited to the following). A. United States Bonds and U.S. Treasury Notes B. Certificates of Indebtedness of the U.Government C. Other Evidences of Indebtedness of the U.S. Government and its agencies which are guaranteed as to principal and interest by the U.S. Government D. Texas State Bonds E. Municipal Bonds from within Texas F. Bonds of Texas Cities, School Districts and Road Districts G. Bonds issued under the Federal Farm Loan Act H. Securities eligible for discount at the FED or Federal Home Loan Bank I. Evidences of Indebtedness of the Board of Regents of Texas J. Notes and Bonds secured by Mortgages insured by the Federal Housing Administration. Certificates of Deposit and other evidences of deposit shall be collateralized at market or par, whichever is lower, for U.S. Treasury Bills, Notes and Bonds with a remaining maturity of three years or less and at 105% of market or par, whichever is lower, for other securities. -6- Collateral may be audited at least annually be the city's independent accountants and may be audited by the City at any time during normal business hours of the safekeeping bank. The audit of the collateral by the City's independent accountants of the City is to ascertain that Governmental Accounting Standards Board Statement #3 is adhered to and the financial institution is complying accordingly. The financial institution with which the City invests and/or maintains other deposits shall provide monthly, and as requested by the City, a listing of the City's certificates of deposit and other deposits at the institution and listing of the collateral pledged to the City marked to current market prices. The listing shall include total pledged securities itemized by: Name Type/description Par Value Current Market Value Maturity Date The City and the financial institution shall assume responsibility for ensuring that collateral is sufficient. 10. SAFEKEEPING Securities pledged as collateral for certificates of deposit or other evidences of deposit and for repurchase agreements shall be retained in safekeeping in a third party safekeeping bank in the State of Texas or in the Federal Reserve Bank of Dallas. The investments purchased by the City, may be retained in a third party safekeeping bank or in the depository bank's trust department in the city's name. The City, the financial institution, and the safekeeping bank (s) shall operate in accordance with a master safekeeping agreement signed by all three parties. The City shall always hold the original safekeeping receipt for its investments and for pledged collateral. The City's designated official (s) must approve release of collateral in writing prior to its removal from the safekeeping account. 11. INVESTMF~NTS A. Investments - General All investment decisions shall be approved by the City before execution. The City may order investments either by phone or by written notification. All investments purchased by the City shall be purchased "delivery versus payment". That is, the City shall authorize the release of it's funds only after it has received notification from the safekeeping bank that a purchased security has been received in the City's safekeeping account. This notification may be oral, but will be followed up in writing with the original safekeeping receipt. -7- The City must have confirmation from its safekeeping bank that collateral pledged from a financial institution is in the City's account before investing in Certificates of Deposit or other evidences of deposit at the financial institution. The confirmation may be oral, but must be followed up in writing with the original safekeeping receipt. B. Investments - Repurchase Agreements (See Addendum) The financial institution agrees to sell those U.S. Securities in which the City can legally invest its excess demand deposit balances to the City, on or before 3:00 p.m. each regular day of the City's business to provide overnight and weekend investments to the City through the use of "repurchase agreements," and simultaneously, with the sale, agrees to repurchase on or before 3:00 p.m. on the next following day of business, the same securities at the same price as sold, with interest calculated on the invested amount. Bank holidays falling on Friday or Monday will be included in the weekend "Repurchase Agreement" and the interest calculation for a weekend "Repurchase Agreement", including bank holiday, will be calculated on the invested amount. Interest earnings resulting from each repurchase agreement shall be paid to the city on the day of repurchase by providing deposit slips showing each account and the amount of interest deposited to the account. The financial institution agrees to pay the City interest on each repurchase agreement at the rate of See Addendum % above U.S. Treasury Bill rate in effect on the date which the repurchase agreement is executed. The City reserves the right to enter into repurchase agreements for periods of time longer than weekends as may be agreed upon by the financial institution and the City. 12. TIME DEPOSIT MATURITIES OCCLrRRING SUBSEQUF_aNT TO DEPOSITORY AND BANK SERVICES AGREEMENT TERMINATION DATE All time deposits, certificates of deposit or other investment securities which have not matured on the termination date of the fmaily approved depository contract shall remain on deposit with the same depository under the same terms and conditions in effect during said contract until the date such time deposits have matured. 13. INVESTMENTS The City pledges to the depository that all funds over which the City has control will be deposited in the depository bank. The undersigned agrees that the City reserves the right to invest the City's funds in lawful securities other than depository issued certificates of deposit with full cooperation of the depository bank. If requested by the City, depository -8- bank agrees to assist the City in investing funds which are not invested in depository bank issued certificates of deposit. 14. MISCELLANEOUS A. The Bank shall use its best efforts to notify the City in writing within ten (10) days of any changes in federal or state regulations or laws that would thereafter materially affect the depository agreement. The Bank shall also notify the City of any services that become available to the City throughout the contract. B. This contract is governed by the laws of the State of Texas. Venue for any action to construe or enforce this Agreement shall be in Dallas County, Texas. C. There shall be a review of the services of the Bank every six (6) months to evaluate the work relationship between the city and the Bank. The objective of the review shall be to address any problems and to discuss the procedures involved and in protecting the City's funds and pledged collateral. D. Any notice required to be given by any term of this Agreement or otherwise may be given as follows: City of Coppell Attention: Tom Morton, Mayor P.O. Box 478 Coppell, Texas 75019 Overton Bank & Trust Attention: Michael Shipman, President 700 E. Sandy Lake Road Coppoll, Texas 75019 EXECUTED in duplicate originals this R3~ day of ~c '~, ~e/~, 1995. OVERTON BANK & TRUST Michael Shipman, P/esident ATrF__3T: -9- CITY OF COPPELL, TEXAS ArrEST: L~lr'd~ Grau, City Secretary APPROVED AS TO FORM: '-Pc(er G. S 'th~ ~ttor~ey ADMIN~DEPOSTRY.AGM - 10- 1. REFERENCES - Please see attached reference list. 2. 2. DEMAND ACCOUNTS - Overton Bank and Trust recommends that the City of Coppell consider using a NOW account arrangement as shown in Exhibit A. This recommendation is based on information provided by Jennifer Armstrong on August 18, 1995 regarding the use of Zero Balance Accounts. A rate of 3.00% is offered on the NOW account for the contract period. This is based on the balance remaining at $2,000,000.00 from December 1, 1995 to the end of the contract period. Exhibit A reflects the level of account activity provided by Jennifer Armstrong. The City would not incur service charges under this scenario. The level of balances are sufficient to offset the fees incurred as well as additional fees up to approximately $1900.00. This is based on the July Earnings Credit Rate of 5.47%. 3. 5. BANK SERVICES TO BE PROVIDED - Refer to Addendum 2. B. INVESTMENT SERVICES - The Investment Department of Overton Bank an Trust, N.A. is a registered Bank Dealer in U. S. Treasury Securities. They provide a wide range of U. S. Treasury and Federal Agency Securities at prices that are competitive with other dealer banks and brokerage firms. The Bank's Investment Officers have over 35 years experience in working with individual and institutional investment clients. Highlights of some of the investment products offered are: Dreyfus Money Market Funds *Money market funds seek to maintain a stable net asset value of $1 per share. *No sales charges with daily liquidity. *100% U. S. Treasury fund available (Treasury Prime Cash. Management) Treasury Bills and Federal Agency Discount Notes *Sold in discounted form and mature at face value. *Maturities from on (1) month to (1) year. *Security of direct obligations of the U. S. Government and Federal Agencies such as the Federal Home Loan Bank and the Federal National Mortgage Association. *Excellent investment products for corporate cash managers due to short maturities and liquidity. Treasury Notes and Bonds *Semi-annual interest payments based on the coupon rate. *Maturities of one (1) year to thirty (30) years. *Direct obligations of the U. S. Government. Safekeeping through Southwest Securities, Dallas, Texas. A 1994 Annual Report is available in the package. 4. 9. B. INVES~NT - RlgPURCRASlg AGRlglglVIENTS - Overton Bank ancl Trust offers Repurchase Agreements on an overnight basis only. We can select requested collateral. Interest is paid at the end of the month only. The recommended rate would be 50 basis points below the current 91 day rate. BANKING SERVICES OPERATING ACCOUNT STRUCTURE 0verton Bank And Trust provides a consolidated account structure that maximizes control and concentration of funds. Your Master Operating account maintains a peg balance to cover service charges and sweeps additional funds into a Repurchase Agreement or pays down on the Line of Credit. Upon presentation of checks to this account, funds are electronically transferred from the Repurchase Agreement or Line of Credit. This structure eliminates the need to monitor balances in the Operating account. All deposits and checks are processed through the Operating account for the company. Earnings Credit are applied to the average collected balances maintained in the Operating account and used towards the offset of service charges. The Account Analysis aids CITY OF COPPELL in monitoring the monthly service activity. All of the accounts maintained at 0verton Bank And Trust are combined into one statement as well as an individual analysis by account. Deficient balance levels cause negative analysis results which are debited automatically on the last working day of the activity month. The analysis statements are then mailed on the 10th of the month following the activity. Exhibit A is an example of a pro forma analysis with Overton's pricing structure and the services that you are currently utilizing, Please keep in mind that Overton's availability schedule is without question better than the competition banks have to offer. The maximum amount of float assigned to domestic deposited items is two days. Competition banks assign from three to five days of float to items drawn out of the eleventh district. With Overton, float savings represents increased availability of funds therefore increasing the investment opportunity for your Company. ACCOUNT RECONCILIATION Overton offers Account Reconciliation services to assist CITY OF COPP£LL in balancing and auditing monthly account statements. With this service, Overton Bank And Trust sorts checks in numerical order by using high speed sort equipment. You may also opt to receive the bank statement with checks in numerical order. By utilizing Account Reconciliation, the Company benefits by quick account balancing, enhanced audit controls and reduced internal expenses. This service is available to all accounts maintained at Overton Bank And Trust. Overton welcomes the opportunity to work with CITY OF COPPELL to customize this processing in order to support your specific needs should this service be of interest. BALANCE REPORTING SERVICES Balance Reporting exhibits the daily activity of your Master account at Overton Bank And Trust. By implementing this service, CITY OF COPPELL could avoid the time consuming task of adjusting target balances from month-to-month to compensate for deficient balance levels should you prefer to pay for services rendered with compensating balances. All of the information needed to monitor the deposits a~d transfers for the Operating and Payroll account at Overton Bank And Trust axe easily accessible on a daily basis through the use of a personal computer, a 1200, 2400 or 9600 baud modem, and communication sof~ware. The information available through Overton Bank And Trust's Balance Reporting service includes: Closing Ledger Balance Closing Collected Balance Opening Available Balance : Month-To-Date Average Collected Balance One-Day Float Two-Day Float Total Dollar Amount of All Credits Total Number of Credits Total Dollar Amount of All Debits Total Number of Debits Individual Checks Paid Individual Outgoing Money Transfer Individual Incoming Money Transfer Individual Zero Balance Account Credit Individual Zero Balance Account Debit Total Controlled Disbursement Debit Multi-bank Reporting is also available if additional accounts are maintained at financial institutions other than Overton Bank And Trust. See E.'chibit B for a Sample Balance Report. In the event that you use the account structure including the Sweep to Repurchase Agreement, balance and transfer information is also available with the Balance Reporting service. Automated Voice Output is available to provide summary balance information on each account. Please note that the enclosed analysis does reflect the cost of these services as you are using them today. Based on the recommended cash management system, the sweep account allows maximum control and utilization of cash in an automated environment and may not require the use of this service. LOCKBOX SERVICES The collection of your customers payments can be expedited and simplified with the use of a lock box, one of the collection services offered by Overton Bank And Trust. With a lockbox, payments routinely mailed to CITY OF COPPELL are instead addressed to a special address that uses Overton Bank And Trust's unique address. This lock box address accelerates the sorting process at the post office and allows Overton Bank And Trust to retrieve your company's remittances during one of the Banks's numerous scheduled mail runs. In conjunction with the timely mail retrieval, Lockbox operations personnel work to ensure that the checks deposited take full advantage of the bank's excellent clearing times. Again, Overton's availability schedule is without question better than the competition banks have to offer. The maximum amount of float assigned to domestic deposited items is two days. Competition banks assign from three to five days of float to items drawn out of the eleventh district. In addition to increased cash availability, a lockbox reduces your in-house administrative burden. For each deposit, we furnish CITY OF COPPELL with a photocopy of each check and a duplicate of the credit slip. The check copies are carefully matched with any enclosures (i.e., .check stubs, correspondence, etc.) and secured to the original envelopes which are mailed to you at the end of each processing day. Additionally, you may request a daily phone call of the total amount deposited into your Operating Account for a minimal fee. Other customized detail reports providing specific information are prepared upon request. At Overton Bank And Trust, our lockbox product has all of the features required to process your remittances. We welcome the oppommity to design a lockbox system for your Company's unique processing requirements if you so desire. GROUP BANKING By utilizing Group Banking through Overton Bank And Trust, CITY OF COPPELL may improve and increase fringe benefits to its employees. Participating employees may have their payroll checks deposited directly into their accounts. This eliminates the need to manually deposit payroll checks (discussed in detail below). In addition, participants (minimum of 50 participants) receive one free regular Checking Account and 200 free Bank Stock Checks. Further benefits include discounted Safe Deposit Boxes (subject to availability and excluding 3"x 5" boxes) and other pre-defined Bank service fees. DIRECT PAYROLL DEPOSIT Included in Overton Bank And Trust's disbursement services is Direct Payroll Deposit. As you know, direct payroll deposits eliminate the need for printing, distribution, and reconciliation of payroll checks. Overton offers several methods of initiating the Direct Payroll Deposit service. The first method includes processing th.rough a third party vendor who generates a magnetic tape two days prior to the date of pay' for delivery to Overton's Operations Center by 12:00 p.m. In addition, we accept 'fi'ansmission information from third party vendors who have the capability to do so, Another method is designed for companies which have less than 50 employees and do not have the ability to generate a magnetic tape. Overton Bank And Trust's PC-based disbursement system is an effective and convenient alternative. By utilizing Overton Bank And Trust's PC-based disbursement system you can disburse payroll to your employee's banks around the nation, thereby offering them an additional fringe benefit. Through Overton Bank And Trust, these direct deposits are moved rapidly and efficiently to outlying banks through the Automated Clearing House (ACH) system. Each employee is assigned a four digit alpha and/or numeric identification number by CITY OF COPPELL After supplying the correct Company Identification Number and Password, the company representative scrolls to each employee's identification number and inputs the correct payroll amount. In order to ensure your employee's deposit is available for withdrawal on the scheduled pay date, you must transmit the deposit information 2 days before the pay date prior to 3:00 PM. Although ACH transactions are valued the next day, not all banks memo post ACH transactions upon receipt, rather the information is downloaded to the employees account that evening during the bank's processing. To implement, change or delete an employee from the direct deposit payroll, CITY OF COPPELL supplies Overton Bank And Trust with the employee's name, the unique identification number, the bank name, Federal Reserve Transit Routing number, and the employee's account number along with a copy of a deposit slip to ensure accuracy. WIRE TRANSFER Overton Bank And Trust offers a variety of Wire Transfer Services. Upon completion of the Wire Transfer Agreement, CITY OF COPPELL is issued a identification numbers and passwords. Since repetitive wire transfers are utilized, repetitive wire codes are also issued at this time. These codes may be user defined or bank defined. Additionally, if desired, separate codes may be specified for each company account. To initiate a manual non-repetitive wire transfer, an authorized representative may call the Wire Transfer Department, specifically identify the company's name, supply the assigned unique password, and provide debit and credit information. Initiation of manual repetitive wire transfers are similar to a non-repetitive wire; however, the authorized representative provides a unique code (which identifies it as a repetitive payment) and the dollar amount. Overton Bank And Trust also offers a PC-initiated wire transfer service. This service allows you to link directly to Overton's Wire Transfer Department from a PC terminal in your office. PC-initiated wire transfers provide the flexibility and convenience that today's fast paced business environment requires. From your PC terminal you can initiate: Repetitive Transfers: these wires are pre-established per your set-up instructions to Overton Bank And Trust. The only information required, at initiation of the wire, is the amount and send date. Non-Repetitive Transfers: you input all pertinent data at a given prompt when the wire is initiated. Account-To-Account Transfers: this type of transfer allows you to initiate the movement of funds from one of your accounts to another within Overton Bank And Trust. These ~'pe of transfers can be Repetitive or Non-Repetitive. Security for PC-initiated wire transfers, through Overton Bank And Trust, is of paramount importance. Each customer is required to maintain current authorization documentation on file at Overton. This documentation identifies individuals, within your organization, who are authorized to initiate and/or have secondary authorization. The computer software is enhanced with 3 levels of security. Your company is assigned a Company I.D. number and password. Likewise, each authorized representative is issued an Operator I.D. and password, but this password is selected by the individual user and is not accessible to anyone. Secondary authorization is another feature of our security and control of wire initiation. Before the wire transfers are released to Overton's Wire Transfer Department, a second individual at your company must review and approve these initiated transactions ('Note: All PC-initiated wire transfers must be input by 2:00 p.m. or they will be processed next business day.) Once proper documentation and agreements are received by the Corporate Cash Management department, implementation for this service will require approximately two weeks. OVERTON INVESTMENT SWEEP Because CITY OF COPPELL will maintain multiple accounts at Overton Bank And Trust, OVERTON INVESTMENT SWEEP allows you to Sweep collected funds from any one of these accounts into a Repurchase Agreement, (a.k.a. "Repo" account). This enhances your investment profitability, without daily monitoring. CITY OF COPPELL may link subsidiary accounts within the Bank's demand deposit system to each Repo. This service is an avenue for providing the advantage of maintaining account balances at required levels while investing excess idle funds to increase bottom-line profits. OVERTON INVESTMENT SWEEP affords your company the opportunity to acquire additional income by automatically transferring excess collected daily balances into the Repo. These Repurchase Agreement investments are instruments backed by the United States Government, according to the security pledged, up to the client defined specified dollar amount as to principal and interest, on an overnight basis. This predetermined amount represents the maximum amount of funds released from each account for investment purposes with a minimum investment requirement of $50,000.00. CITY OF COPPELL is provided with a monthly confirmation statement that allows you to review the amount invested and the amount of interest earned. If while reviewing this statement you determine that your company's needs exceed your specified predetermined investment amount, you will need to notify the bank, in writing, of your revised maximum investment fi~re. It is necessary for this notification to be signed by an authorized company official. Due to the fact that these investments are overnight investments, it allows the Investment account balances to be available for funding the Demand Deposit accounts the following day. In the event, that the funds in the Demand Deposit accounts are not required to meet the funding obligations, the funds remain in the investment account to continue generating interest from the Repurchase Agreement security. Additionally, if CITY OF COPPELL has a need to borrow, the OVERTON SWEEP product offers automatic direct drawdown and paydown from/to the line of credit as collected funds are needed/available. OVERTON SWEEP provides the following benefits: AUTOMATED ACCOUNT TRANSFERS All excess funds are invested at the end of each banking day without the burden of manual daily intervention. MONTHI. Y bN3"ESTMENT EAILXfbNGS REPORTS Your company is provi!ted with a monthly report which reflects the amount of funds invested and the amount of interest earned. REDUCTION OF bNTEREST EXPENSE ON LI31E OF CREDIT Overton's charge is a flat monthly fee for this service based on the number of subsidiary accounts sweeping to the Investment Account. A $15.00 monthly charge is passed to the account analysis statement for each subsidiary account. This cost is significantly less than the controlled disbursement service fees and less than the charges assessed by the competition for the same sweep service. OTHER INVESTMENT PRODUCTS Overton Bank And Trust's Investment staff is well versed in the multitude of sophisticated investments. They offer the following products to satisfy your company's money management plan, turning idle cash into an earning asset: REPURCHASE AGREEMENTS Overton Bank And Trust sells to investors U.S. Government and Agency Securities, agreeing to repurchase the investments at a predetermined date, price, and yield. Repurchase Agreements ("Repo's") offer investment opportunities starting at a minimum of $100,000 for individuals and $50,000 for corporate customers with terms designed to meet each Customer's investment need. Generally, however, terms range from one to thirty days. For day-to-day rate information, please contact our Repurchase Agreement representative, Jamie Gehringer at (817) 377-5075. CERTIlelCATES OF DEPOSIT Overton Bank And Trust offers attractive Certificates of Deposits, including a variety of terms and interest rates. The minimum "CD" is $2,500 with a maturity of 14 days to two years. For day-to-day rate information, please contact our "CD" representative at the Coppell Branch. U.S. TREASURY SECURITIES The United States Government guarantees the principal and interest payments of U.S. Treasury Securities. U.S. Treasury Bills and Zero Coupon Securities provide a return to the investor in the form of a discounted purchase price (i.e., the investor pays less than par for the securities and receives the full par amount at maturity. Treasury Bills mature within one year or less. Zero Coupons mature between two to tlgrty years. U.S. Treasury Notes and Bonds offer semi-annual interest payments, providing maturities up to a maximum of thirty years. The minimum investment on most Treasuries is $10,000. For further information contact Jamie Gehringer at 377-5075. FEDERAL AGENCY SECURITIES Federal Agency Securities are obligations of government sponsored agencies. These agencies issue in both discount and coupon form, offering maturities ranging from five days to thirty years. The minimum purchase amount on most Agencies start at $10,000. For further in.formation contact Jamie Ge~inger at 377-5075. MUNICIPAL (TAX-EXEMPT) SECURITIES Overton Bank And Trust assists its Customers in the trade and distribution of Municipal Notes and Bonds. Interest income paid to the investor is usually exempt from federal (and, in some cases, state, and local) income taxes. Tax-exempt Securities offer attractive investments for corporations and individuals in high-tax brackets. Municipal Securities provide maturities ranging from one year to over thirty years and minimum purchases start at $5,000. For further information contact Jamie Gehringer at 377-5075. CONTROLLED DISBURSEMENT The Controlled Disbursement service offers early notification of same-day clearings drawn on CITY OF COPPELL's designated disbursement account. As a result, CITY OF COPPELL may determine daily funds availability for overnight investments or loan payments, thus converting idle cash earning assets. Overton offers the Controlled Disbursement service through our Mansfield Branch. Because of our current levels of clearings, only one FED cash letter is presented each day; therefore, Overton can provide funding information by 9:30 a.m. (same day - no need for a second presentment call.) With a back-up line of credit equal to monthly disbursements, CITY OF COPPELL benefits from accurate cash flow management with the elimination of disbursement forecasting and overdraft/NSF charges. Additionally, investment opportunities of otherwise idle cash increase. Although Overton offers this product, with the recommended method of sweeping into/out of the Investment account, it is not necessary to continue monitoring daily disbursements as funds are needed. A net, of the checks presented and deposits posted, determines if funds are withdrawn from the Investment account or if collected funds are swept daily to the Investment account. If otherl investment options are desired then a controlled disbursement account is recommended instead of the automated sweep structure. EXHIBIT A - NOW 3.00% DEMAND DEPOSIT ANALYSIS AGe, Gun,s Analyzed 3 JULY 1995 Da)-s In Month 31 CITY OF COPPELL OVERTON BANK AND TRUST NUMS~ COST TOTAL AVA~A~ SALANC~ - -- AC'IIVITY DESCRIPTION--- OF UNI'I~ PER UNIT COST EQUrV~ ACCOUNT SERVICES MOS ACCOUNT MAINTENANCE 3 $15.00 $45.00 11,199.58 DEBITS 1~ 0.13 216.58 53,~O2.35 CREDITS POSTED 350 0.45 157-~0 39,198.55 . ITEMS DEPOSITED - ON US 0 0.06 0.O0 ITEMS DEPOSITED - IlTH FED 0 0.07 0.O0 0.~0 ITEMS DEPOSITED - ALL OTHER 0 0.10 0.00 0.00 ENCODING 0 0.00 0.~0 0.00 STOP PAYMENT 10 20.00 200.00 49,775.93 OUTGOING WIRE TRANSFER 8 10.00 80.00 19,910.37 INTEREST EXPENSE I 5095.89 5,095.89 12~6~ 26333 ACCOUNT RECONC[LL~TION SERVICE SERIAL SORT 3 50.00 150.00 37~331.95 ZERO BALANCE ACCOUNT SERVICE MASTER ACCOUNT I 0.00 0.00 'SUBSIDIARY ACCOUNT 2 15.00 30.00 7,466.39 ''BALANCE REPORTING SERVICE NIANUALVOICE MONTHLY/ACCT. I 1(~.00 100.0~ 24,887.97 FDIC INSURANCE 2,000.00 0.1578 315.60 78~546.42 (.1578/5 I~/AVG LEDGER) TOTAL OF ACTIVITY CHARGES: $6390.57 51~90,482.84 ANALYSIS SUMMARY AVERAGE LEDGER BALA~C~ @ 31 DAYS LESS AVERAGE DEPOSIT FLOAT: 0.(30 AVERAGE POSITIVE AVAIL~BLE ~ 31 DAYS LESS REQUIRED RESERVES@ 10,CX)00~ ON $2,000.0~0.00 (200,003.00) NET h',~/F_.~-FA B LE BAI..Mq CE: S 1,800.0C0.00 AVERAGE NEGATIVE AVAILABLE BALANCE @ 0 DAY OD CHARGE @ !.1.2500% (ptim~ + 2%) $0.00 TOTAL ACTIVITY CHARGE: ($63903'/) '°* EARNINGS CR EDIT ON hN%'ESTABLE BALANCE @ 5.4700% h AMOUNT AV,'a LE TO SUPPORT OTrm SERVICES: THERE IS A ONE TIME SET-UP FEE OF $30.00 PER SUBSIDIARY ACCOUNT. · ' BASED ON THE POUR WEEK AVERAGE OF THE 91 - DAY T- BILL FOR JULY ).995. EXHIBIT B SAMPLE BALANCE REPORTING INFORMATION CITY OF COPPELL Overton Bank And Trust TI-I~ CASH MANAGEMENT EXCHANGE VERTICAL MULTIBANK REPORT BALANCES REPORTED AS OF 31MAY95 PRINTED ON 01JUNE95 09:17 CDT LEAD - THE CASH MANAGEMENT EXCHANGE BANK CURRENCY USD US DOLLAR ACCT 123456789 CORPORATE ACCOUNT CLOSING LEDGER 500,000.00 CLOSING AVAILABLE 255,500.00 ONE DAY FLOAT 124,000.00 TWO DAY FLOAT 120,500.00 TOTAL CREDITS 200,000.00 TOTAL DEBITS 100,000.00 ACCT 818181818 PAYROLL ACCOUNT CLOSING LEDGER 400,000.00 CLOSING AVAH.ABLE 255,500.00 ONE DAY FLOAT 124,000.00 TOTAL CREDITS 200,000.00 TOTAL DEBITS 100,000.00 · , KXH ~l'[~ C GROUP BANKING By utilizing Group Banking through Overton Bank and Trust, the City of Coppell may improve and increase fringe benefits to its employees. There are several benefits that employees can take advantage of: · Direct Payroll Deposit into an Overton account required (mlnlmnm 50 participants). · No need to stand in line at the bank to make a deposit. · One free Regular Checking Account. · 200 Bank Stock Checks free. · 50% Discount on Safe Deposit Boxes (excluding 3"x5" boxes, all other subject to availability and other discounts do not apply). · Free ATM card - no monthly fee ($1.00 withdrawal fee and $.50 inquiry fee at ATM's not owned by Overton). · Automatic Trnn~fer of funds from one Overton account to another in the event of an overdraft. · Eliminate stop payments resulting from lost payroll checks. · Free Travelers Checks · 1/4% Discount on Loans (Subject to normal credit approval). "Other Fees" defined on Personal Account Fee Schedule are assessed per occurrence. Overton reserves the right to review the profitability of this relationship on a monthly basis and to withdraw this offer with 30 days notice if the total banking relationship is not profitable to the bank. Overton limits the opening of the accounts to the Overton Banking office mutually identified in order to ensure a smooth relationship implementation. After the initial bpening, employees axe welcome to use any one of our current locations.