HomeMy WebLinkAbout10A - Banking Services RFP
STAFF AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DECEMBER 6, 2004
lOA
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF A RESOLUTION APPROVING A
REQUEST FOR PROPOSAL (RFP) AND AUTHORIZING
SOLICITATION OF PROPOSALS FOR BANKING SERVICES
DISCUSSION:
Introduction
The purpose for this agenda item is to consider approval of an RFP
(Request for Proposal) that would establish the evaluation criteria
for appointment of the City of Prior Lake's official bank and
authorize the solicitation of proposal for such banking services.
History
In the past the City Council had always designated the official city
bank, along with the normal list of annual appointments, during its
first meeting of the year in January. Because there was an expressed
interest by all three local banking institutions (Prior Lake State
Bank, US Bank and Wells Fargo Bank) in 2000 the City Council
solicited RFP's for the first time and then appointed Wells Fargo
Bank for the past four (4) years.
Current Circumstances
Attached to your agenda is an "Official Solicitation of Banking
Services" that serves as the basis for a formal request for proposal.
Outlined within this document are general required services,
preferred services and other conditions that the successful bank must
adhere to in order to be appointed as the official bank for the City of
Prior Lake.
The term of appointment is for a similar time period that would
cover 48 months from the beginning of January 2005 thru the end of
December of 2008. Any lesser time period would not be time or cost
effective because of all the transition requirements i.e., check-
printing conversion, software revisions, banking procedural changes
etc. The City does have an "escape" clause that would allow for
termination at the City's sole discretion as the result of performance
issues subject to written 90-day notice by the City.
If the Council were to approve the formal RFP as presented the
official solicitation of banking services would be sent out with a due
date of Friday December 17, 2004. Staff would then review all
proposals and come back to the Council for formal acceptance at the
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
H:\BID\Agenda bank.doc
ALTERNATIVES:
RECOMMENDED
MOTION:
REVIEWED BY:
Attachments:
first council meeting in January of 2005 when the Council considers
its normal appointments.
1. A motion and second to approve Resolution 04-XX Approving a
Request for Proposal (RFP) and Authorizing Solicitation of
Proposals for Banking Services.
2. Take no action at this time and direct the staff to provide
additional information.
A motion and a second to adopt Resolution 04-XX Approving a
Request for Proposa (RFP) and Authorizing Solicitation of
Proposals for Bankin
f
/
1. Resol on 04-XX Approving a Request for Proposal (RFP) and
Authorizing Solicitation of Proposals for Banking Services.
2. Official Solicitation of Banking Services RFP.
RESOLUTION 04-XX
APPROVING A REQUEST FOR PROPOSAL ( RFP) AND AUTHORIZING
SOLICITATION OF PROPOSALS FOR BANK SERVICES
WHEREAS,
the City is interested in designating an official depository for public funds as
its official bank; and
WHEREAS,
the City wishes to obtain the most competitive and cost effective service to
process its municipal financial transactions; and
WHEREAS,
the successful banking institution shall be evaluated according to the criteria
established within the official solicitation of banking services RFP; and
WHEREAS,
the appointment term of the banking institution shall begin in January of
2005 and extend until December 31, 2008; and
WHEREAS,
the City of Prior Lake is interested in appointing the banking institution
which would best serve the financial interests of the City.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
that the City of Prior Lake hereby approves the "Official Solicitation of Banking Services" as the
basis for a request for proposal and authorizes formal solicitation of such proposals for the
purpose of selecting the City of Prior Lake's official bank.
Passed and adopted this 6th day of December 2004.
YES
NO
Haugen
Blomberg
LeMair
Petersen
Zieska
Haugen
Blomberg
LeMair
Petersen
Zieska
{Seal}
City Manager
City of Prior Lake
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
OFFICIAL SOLICITATION OF BANKING SERVICES
The City of Prior Lake is interested in comparing the banking services and costs of local
institutions within the community for the purpose of designating an official depository for public
funds for a four (4) year time period. The City wishes to obtain the most competitive cost
effective service to process its municipal financial transactions. In an attempt to evaluate which
bank would be most responsive to the City of Prior Lake's needs, a number of criteria have been
established. These performance standards/requirements have been established in an effort to
distinguish, on a comparative basis, the banking institution which would best serve the financial
interests of the City from a cost and service perspective.
In order for you to complete the section components the following transaction information is
provided:
Average Cash Balance
· $862,000 daily cash balance (last 90 days)
Business Volume
· Accounts payable check processing - 3,000 checks annually
. Cash receipt deposits - weekly
. Water billing deposits - daily
--- Bi-monthly utility billing cycle
--- Approximately 1,000 automatic billing deposits are created with each billing statement
--- Approximately 6,000 check deposits each billing period
Direct Deposit
. Payroll participants - 100 (bi-monthly)
Please complete the following sections based upon the above information.
GENERAL INFORMATION:
Name of Bank
Address:
Primary Customer Service
Contact:
Primary Customer Service
Contact Phone Number:
INTEREST RATES: (quote as of 12/15/04 business day)
Checking Account Interest Rate %
CD Jumbo Interest Rate
%
Money Market Rate
%
www.cityofpriorlake.com
H: \BID\BANK. DOC
Phone 952.447.4230 / Fax 952.447.4245
The City of Prior Lake is requesting a service-free banking relationship whereby no transaction
charges are incurred on the City's checking account. As an alternative the banking institution
may quote service fees. An earnings credit will be considered though a complete fee waiver is
the preferred choice of the City.
BANK SERVICES:
Description
Automatic Payroll Deposit
Availability
Yes_ No_
ACH Utility Bill Processing
Safety Deposit Box (1)
TRANSACTION SERVICES:
Description
Deposit Charge
Charee
Yes_ No_
Cost
Per item charge -
NSF Charge
Stop Payment Charge
Wire Charge
PREFERRED SERVICES:
Under this section the City has outlined such services as deemed important in its overall review of
such request for proposals. Each will be evaluated as an element of consideration in awarding the
RFP to the fmancial institution that best serves the needs of the City of Prior Lake.
Check Imaae Availabilitv
While the City of Prior Lake recognizes that Check 21 federal
compliance regulations allow for non-return of original checks,
electronic access to retrieve an image of a check transaction is
desirable.
Electronic Funds Processina
Where possible, the City intends to electronically file all its
financial transactions. In order to accomplish this objective the
successful bank must accommodate such electronic filings by one
of the three (3) following methods:
Internet
Floppy Disk
CD ROM
Encoded Check Deposit Processina
Acceptance of automatic encoded check deposits via electronic
media or city delivery.
H:\BID\BANK.DOC
Internet Account Access
The City requires that access to its accounts be made available via
the Internet. Secure access must be assured as a condition to such
Internet banking service.
No-charae Check by Phone Service
Customer authorization for City to automatically debit customer's
checking account for utility bill payment. On-line account
verification process desirable.
Report Generation
The ability to print on-line summary statements is a prerequisite
for the City's reconciliation of its accounting records. The format
of such printed reports should match the mailed statements as
near as possible.
Availability
Yes_ No_
Security for Funds
All of the City's funds must be sufficiently insured or
collateralized as required by State statutes. The amount of
collateral to be pledged and held by an independent 3rd party
(bank pays any fees) must be approved by the City. Minimum
collateral of $2.0 million dollars shall be required. Bank shall
supply additional collateral as requested by the City of Prior Lake
or collateralize peak cash balance.
Collateralize Peak Cash Balances
Availability
Yes No
- -
Wire Procedures
The City of Prior Lake must be permitted to wire transfer funds
into and out of the City's checking accounts via telephone, fax or
on-line. The City will keep the bank informed in writing of the
names of employees authorized to wire transfers.
Availability
Yes_ No_
Local Customer Service Availability
From a customer service perspective it is deemed important that
bank customer support be provided at the local level as opposed
to a corporate location.
H:\BID\BANK.DOC
OTHER CONDITIONS/REQUIREMENTS:
1.) All account records must be based on the calendar month. A summary statement of debits,
credits and the daily balance is required along with a check reconciliation statement.
2.) Bank shall make available by fax copies debit and credit entries to the City on a daily basis for
ACH transactions and wire transfers. The debit/credit advices shall indicate from whom the wire
is received or destination, date, time and amount.
3.) Uncollected or insufficient funds checks will be presented twice before being charged against the
City's account. Uncollected ACH deposits shall be presented only once. Overdrafts on the city
account will be covered by the bank and the City immediately notified by telephone.
4.) Stop payment orders shall be accepted on a verbal basis from designated City personnel and
within three (3) working days the City shall complete written confirmation.
5.) The successful bidder shall be responsible for all re-printing costs of the City's accounts payable
checks and deposit tickets.
6.) Checking account interest must be based upon an index i.e., 30-60-90 day T-bill rate or some
other published monitored rate index.
7.) The successful bidder must be an Equal Employment Opportunity Employer.
EFFECTIVE DATE OF SERVICE:
I · January 1, 2005 thru Dec. 31, 2008
The completed proposal will serve as the basis for the agreement between the City and the
successful respondent. However in the event of performance issues by the financial institution the
agreement may be cancelled at the sole discretion of the City of Prior Lake at any time provided
written notice is given at least ninety (90) days in advance of the proposed cancellation. *The term
of agreement shall begin as early as practical subject to conversion detail and shall extend for a
period of 48 months unless otherwise terminated.
Bank institution
Name of person completing proposal
Title
Telephone Number
Submission deadline:
10:00 A.M. Friday, December 17,2004
Although the above services must be addressed in your response, you are invited to submit
proposals for a "better way" of providing a particular service or to introduce prospective services
not identified herein. All exceptions must be clearly noted.
Please disclose any banking service costs to the City of Prior Lake that are not identified above
but that may be applicable at your financial institution.
H:\BID\BANK.DOC
The City of Prior Lake reserves the right to award the official bank status to the institution that in
the sole opinion of the City Council best meets the city's financial and service needs.
All questions may be directed to the attention of Ralph Teschner, Finance Director at (952) 447-
9841.
H:\BID\BANK.DOC