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Home My WebLink About1646 ResolutionRESOLUTION NO „1646„ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PASCO ACCEPTING THE PROPOSAL OF PEOPLES BANK TO PROVIDE NECESSARY BANKING SERVICES TO THE CITY OF PASCO WHEREAS, the City of Pasco has determined that a contract for banking services is in the best interest of the City, and WHEREAS, a banking contract is an integral part of a sound financial management system, and WHEREAS, a banking contract provides for maximum investment potential, and WHEREAS, Peoples Bank has submitted a proposal that reflects the lowest cost to the City of all proposals submitted, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO Section 1 Peoples Bank is hereby awarded a contract to provide necessary banking services to the City of Pasco for a period of two (2) years, plus an additional option year Section 2 Peoples Bank shall be compensated on a direct fee basis for services provided PASSED by the City Council of the City of Pasco, Washington, this 4eptember day of , 1984 ( / 0 regA Rubstello, City Attorney 7,0be W `Lltackson, Mayor CONTRACT FOR BANKING SERVICES The City of Pasco and Peoples Bank hereby mutually agree to enter into and maintain a banking relationship in accordance with the attached proposal for a period of two (2) years, with an additional option year The two (2) year base period of the contract shall be October 1, 1984 through September 30, 1986. Peoples Bank agrees to provide the requested services as outlined in the Request for Proposal (RFP) with optional services to be implemented at the request of the City of Pasco. Peoples Bank further agrees to provide stated services at the unit price, as quoted on Pages 4 and 5 of the attached proposal. The City of Pasco agrees to compensate Peoples Bank in accordance with the attached proposal for services provided on a direct fee basis. The original Request for Proposal for Banking Services, Addendum No. 1, Addendum No. 2 and Peoples Bank's proposal shall all be considered integral parts of this contract 7 ,.,ayor, City p7 Pasco , Peoples Bank Representative -1 Date Date ANNUAL ACTIVITY PROPOSAL TABULATION EST YRLY. COST ONB UNIT COST EST YRLY. COST SEAFIRST UNIT COST EST YRLY. COST PEOPLES UNIT COST kccount Maintenance - Regular 36.00 5.00 180 00 5.00 180 00 4.00 144.00 Zero Balance 24 00 5.00 120 00 10.00 240 00 16.50 396 00 :hecks Posted 1164 00 .09 104 76 .11 128.04 .10 116.40 )eposits Posted 360 00 .125 45 00 13 46 80 12 43.20 )eposit Items Posted 3960 00 0425 168 30 042 166 32 045 178 20 :harge Backs 96 00 1 00 96 00 1.00 96 00 1 00 96.00 Stop Payments 10 00 500 50 00 800 80 00 6 00 60 00 lire Transfers (in) 60 00 450 270 00 500 300 00 5 00 300 00 1ires (out) 72 00 6.50 468 00 6 00 432.00 6 00 432.00 )verdrafts -0- N/C :ash for Change -0- N/C bat Overdrafts* Prime 100% -0- Prime 65% 234 70 P+1/4 of 1% 362.01 ock Box Items 25200 00 .085 2142 00 18 4536 00 .20 5040 00 'ayroll Check Posted 3540 00 09 318 60 11 389 40 10 354.00 :laims Check Posted 5400 00 .09 486 00 .11 594 00 10 540 00 ash Deposited 444600 00 Perc 06 266 76 N/C -0- Perc 06 266 76 'rinted Checks estments: 12 00 10 00 120 00 2 54 30 48 7 50 90.00 arning Allowance 10 21% (3063.00) 9 953 (2985 90) 10 00% (3000 00) kvg. Collected Bac. 30000 00 tepo Rate (Prime 13 Fed 11 50) 67% P (13) (51389 00) 11.5 FED-1 (61950 00) 80% P (61360 00) kverage Repo 590000 00 Meck Sorting 10104 00 -0- 007 70 73 01 let Banking Charges (Cash to City) (49616 58) (57411 43) (55941 43) *Assumption No month end overdraft, 50 daily overdrafts averaging $20,000 July 24, 1984 Mr Jerry C Conner Director of finance/ Administrative Services City of Pasco 412 West CLark Pasco, WA 99301 RE: Banking Services Proposal Dear Mr Conner This is in reponse to your Request for Proposal for Banking Services forwarded with your letter of July 6, 1984, amplified at the Pre-Bid conference of July 18, and in Addendum No 1. The attached Proposal is forwarded along with required support documents, optional proposals for Check Reconcilation and Telecommunications Link and with a copy of our Cash Management Services booklet. The signed receipt for Addendum No 1 is also attached along with an additional copy of the Proposal Forms We propose that the City utilize a Repurchase Agreement for the investment of excess funds as outlined on page 5 in Section 3 rather than the use of a Money Market checking account (Super NOW Account) The earnings rate on this type account at Peoples is currently 6-3/4% While there is no fee for Deposits Posted, Items Posted, or Account Maintenance, the per check charge is increased to 20 per item The difference in interest earnings would be much lower than on a Repurchase Agreement Our proposed overnight Repurchase Agreement interest rate would be one percentage point less than the opening Federal Funds rate for that day Check printing cost would be less at Peoples than at other banks due to the usable stock on hand An example of this savings is the value of the Claims and Payroll Warrants on hand which have a replacement value in excess of $900 00. If you would prefer that we arrange for the printing of claims and payroll checks and to amortize this cost over a thirty-four month period, the cost would be $18 00 per month This would be in addition to the $2 54 listed in the Basic Services cost calculations In the Basic Services Cost Calculations, three items should be explained as follows 1. Check Sorting is listed at 007 per check with a $5 00 minimum charge per month litoples National Bank of Washington Money Management Group 1414 Fourth Avenue PO Box 720 Seattle, WA. 98111-0720 Mr Jerry C. Conner July 24, 1984 Page Two Claims and Payroll Warrants are sorted each day into numeric sequence at no charge to the City This would continue until present supplies are exhausted. 2 Deposit Items Posted is listed at .042 per item Peoples now uses a tier pricing system and the estimated per item price is 042 or less per item for the City Peoples items are at .035 and other institutions clearing through Seattle Clearing House are 040 per item Other institutions are slightly higher 3 Float overdrafts - If you prefer, you may use 65% of the prime rate of a major California based bank of your choice This rate is predicated upon the unintentional use of this loan feature We at Peoples appreciate the opportunity of submitting this proposal and look forward to another three year continuation of a pleasant relationship Sincerely, , William S Mills, III Vice President WSM/mp F06,/07 24/B BASIC SERVICES PROPOSAL FORM Mr. Jerry C. Conner Director of Finance/ Administrative Services CITY OF PASCO P.O. Box 293 Pasco, ha. 99301 Dear Mr. Conner We have read the RFP and fully understand its intent. We certify that we have adequate personnel, equipment, and facilities to fulfill the requirements thereto. We understand that our ability to meet the criter.La and provide the required services snail be judged solely by the Office of the Director of Finance/Administrat_ve Services. We have attached the follo.sinc 1. Call reports for the past year 2 Annual f-nancia_ reports for tie past year ke furtler certify that t4e beret', f_le ._tnte D.rector of Fina^ce Acni--strat_ve Services t -e aff_ca _t cf one of our officers of tre of th-s inst-tution's cap_tal stoci anc s-rplLs .n the manner prescr_1.-ea _- State of hash.ngton Pubic Furc Prctect_on Act of 1969. It as understood the above informa:_or c.-11 be used as ev.dence of c..r ab412ty to meet the capital structure rega.rements necessary to serv-ce this account It 25 further understood that all _ifornat.on included in, attached to, or recuired by this Request for Proposal shall become public record uper :roposal ope-lng b, the C-ty Subm.tted by Peoples National Bank of Washington (Bann) (-(Aut ' ed t• V (Title) W 'S ce President Alls I / — ( uthori ed Sign2re) (Title) Jan J sen Vice President ) 344-4671 7/25/84 (Telephone) (Date) BASIC SERVICES COST CALCULATIONS We agree to furnish the following required services to be usedin the computing a required compensating balance. SERVICE PROPOSED PRICE PROJECTED MONTHLY WORKLOAD TOTAL MONTHLY SERVICE CHARGE Account Maintenance $ 5.00 each 3 $ 15 00 Zero Balance Account Maintenance $ 10.00 each 2 $ 20 00 Checks Posted $ .11 each 97 $ 10 67 Check Sorting (5.00 minimum) $ 007 each 97 $ 5 00 Deposits Posted $ .13 each 30 $ 3 90 Deposit Items Posted $ 042 each 330 $ 13 86 Charge Backs $ 1 00 each 8 $ 8 00 Stop Payments $ 8.00 each 2 $ 16 00 Wire Transfers (in) $ 5 00 each 5 $ 25 00 Wire Transfers (out) $ 6 00 each 6 $ 36 00 Overdrafts $ N/C each 0 $ Cash for Change $ N/C each 0 $ Float Overdrafts $ 65% of Bank's Base Rate $ Lock Box Items $ .18 each 2100 $ 378 00 Payroll Checks Posted (0-balance account) $ .11 each 295 $ 32 45 Claims Checks Posted (0-balance account) $ .11 each 450 $ 49 50 Cash Deposited $ NiC per C 37050 $ Additional Bank Bags $ 15 00 $ Armored Car $107 50 $ 107 50 Printed Checks $ 2 54 $ 2 54 Credit Card $ 15.00 per card per year 50 $ 62 50 Available Balance Earnings Rate 100% Average 91-day T-Bill rate COMPENSATING BALANCE AND INTEREST RATE CALCULATIONS SC CB= TV (1-r) = F = ADJ (785.62 ) 107,638 (.00829A/ I'' .88 ) . 107,638 '. =0 REQUIRED COMPENSATING BALANCE $ 107,638 A DIRECT FEE OF $ 78562 may be charged per month in lieu of the compensating balance (see Page 9, Item 3.) 9.953 Earnings rate calculation 1% d d Funds uns - )t Overnight investment rate calculation ( (see Page 5, Item 3) % (see Page 8, Item D.) CONTRACT FOR BANKING SERVICES The City of Pasco and Peoples Bank hereby mutually agree to enter into and maintain a banking relationship in accordance with the attached proposal for a period of two (2) years, with an additional option year. The two (2) year base period of the contract shall be October 1, 1984 through September 30, 1986. Peoples Bank agrees to provide the requested services as outlined in the Request for Proposal (REP) with optional services to be implemented at the request of the City of Pasco. Peoples Bank further agrees to provide stated services at the unit price, as quoted on Pages 4 and 5 of the attached proposal. The City of Pasco agrees to compensate Peoples Bank in accordance with the attached proposal for services provided on a direct fee basis The original Request for Proposal for Banking Services, Addendum No 1, Addendum No 2 and Peoples Bank's proposal shall all be considered integral parts of this contract m 'or, City j Pasco Peoples Bank Representative Date Date BASIC SERVICE SCHEDULES We shall gave same day credit as "good ledger fundsfor all deposits made by the specified time at the branches identified below. Name of Person (s) Nadine Johns Name Manager, Pasco Branch 545 -9391 Title/Branch Telephone Any Peoples Branch We agree to furnish the following account maintenance information at the time specified below We understand that the tames are general standards established by the City Treasurer and that any other time may be proposed for furnishing the information SERVICE SUGGESTED STANDARDS PPOPOSED Daily AccoLnt Balance Reporting 9.00 A "4. next banking day ok Weekly Statements ii.00 A M 2 days after e-d of 6eek ok Monthly Statement 5 da b s after end of month ok 4 AccoLnt A -alys_s 10 bJs_ness days after end of month ok * Collected funds CITY OF PASCO ZERO BALANCE ACCOUNTS' PeoplesBank Zero Balance Accounts can eliminate idle balances and control disbursement account funding, allowing the City to maximize their cash utilization Zero Balance Accounts can be set-up for the City's claim checks and the payroll checks which would be linked to a concentration account Transfers would be made automatically and can be reported daily using the capabilities of the Peoples Bank Automated Balance Reporting Service Monthly Charge Per Zero Balance Account $10 00 BALANCE REPORTING PeoplesBank Balance Reporting System provides a concise picture of your daily cash position. The daily ending collected balance can be received by the City of Pasco by 7•00 a m the next business day, via a toll-free telephone call Additional information, such as, ledger balance, average available balance, float breakdown, total debits and total credits are also available on a daily basis. Via Telephone Per Account $5000 Implementation Per Account 10 00 ACCOUNT RECONCILIATION PROGRAM (ARP) The Account Reconciliation Program provides you with a computerized check reconciliation each time your account normally cycles This accurate and current record of account activity is designed to reduce the time you spend balancing your account This information is available by magnetic tape either on a weekly or monthly bais Monthly Minimum Per Item Consolidated, Full reconciliation $ 75 00 $ 040 \ Paid Items Report 50 00 .026 Check Sorting 5 00 007 Computer Tape Output 10 00 013 Key Input 066 City of Pasco Page 2 AUTOMATED WIRE TRANSFER: The PeoplesBank Automated Wire Transfer service is designed to give you maximum convenience, reliability and flexibility in the electronic movement of funds. With a terminal located in your office, you can initiate funds transfers, inquire about transfers already entered, store wires for transmission to the Bank up to seven (7) days in the future and receive notification of incoming wires to your account Outgoing Wire $ 8 00 Incoming Wire 5.00 ;-*-1 at6r ) (Title) II I Vice President OPTIONAL SERVICES PROPOSAL FORM Mr. Jerry C. Conner Director of Finance/ Administrative Services CITY OF PASCO P 0. Box 293 Pasco, Wa. 99301 Dear Yr. Conner We have read the City of Pasco's RFP and fully understand its intent. We certify that we have adequate personnel, equipment, and facilit_es to fulfill the requirements thereto. We understand that our ability to meet the cr_teria and provide the required services shall be judged solely by the Office of the Director of Finance/Aaministrative Services We have attached the following 1. Cali reports for the past ear 2 Anna1 financial reports for the past year We further cert-fy that we hereb,, file c,-tn the Director of Finance/ Adm.,n_strative Serv-ces the affidailt of one of o_r off-cers of t-,e amo--t of t-_s Institutao-'s cap.,tal stock ac sL,rplus it' t')e ranner prescribec _n State of Wash.,-gton Public Fund Proteot-o - Act, 1969 It _s uncerstood the above information .___ De used as ev-dence of our abil-ty to meet the capital stracture req—renents necessary to ser ace this account. It is further understood that all information included in, attachea to, or reqt—red b r this Request for Proposal snail become public record upon proposal openirg b ,„. the City. Subm-tted b y Peoples National Bank Authoriz d Signautie) (Title) - Jan_gcans n _--- Vice President (206) 344-4671 7/25/R4 (Telephone) (Date) „ 'cs 6 Oc.) 10 çq 0 '6 \\Z .p 4i) •rP 47 NA N ‘ N4.3 0 'N e, N NZ•C. NON ".b ‘§\ \f') (53 66 C§) cn,4) N1C:\ -09 c, • k 4c CZ' 6 4, (2;6 ?y'C' oC\ \-6 )c,"\ •c) <V> c<tP 6 e> A c\91 ..tr 6 • \C\ '‘P )C;\ >c„ .\ re' N.• 49' cc) •\47 c. (2,2 \\ \ City of Pasco Original checks and other debit items drawn on your account will not be mailed to you, but will be maintained by the Bank for ninety (90) days. After that time we will microfilm all checks paid against the account These microfilm records will be kept for a period of seven (7) years. Upon your request, copies of the checks will be mailed to you The Check Safekeeping Service not only reduces the cost of your ARP reports, it also eliminates paper handling and storage problems, and is offered to our customers at no additional cost. For further details on all the above mentioned services, please refer to the enclosed Cash Management Services brochure F06/0724/85 # -# ADDENDUM NO. 1 CITY OF PASCO REQUEST FOR PROPOSAL FOR BANKING SERVICES The following changes to the original "RFP" are hereby made and are to be treated as if set in the original proposal. All other aspects of the proposal shall remain as stated. CONTRACT TERMS 1. Page 4, Section 2 - CANCELLATION OF CONTRACT. The depository contract shall provide that both the City and banking institution reserve the right to cancel any agreement at any time upon ninety (90) days' written notice of its intent to terminate any agreement. A decision to terminate the depository contract during the initial two years of the contract may NOT be as a result of profitability or non-profitability by either party. REQUIRED SERVICES 2. Page 5, Section 3 - ALTOMATIC OVERNIGHT INVESTMENT. First sentence amended as follows- "At a mutually agreed upon time each working day the "PRIOR DAY'S" net collected balance shall be invested overnight through the bank's own investment department at a stipulated percentage rate, i.e 75% of prime, 80% of 180-day T-B411, etc " 3 Page 6, Section 7 B. - Statements The first word of the second line is amended to read "SHOULD" instead of "MUST" 4 Page 6, Section 7 B. - Statements. (Second Paragraph) Delete paragraph and enter following "If compensating balance method of renumeration is selected the analysis will include the amount of earning allowance earned or charged due to the daily fund balance If fee basis is selected then the monthly staterent or analysis shall reflect the amount of interest credited for automatic overnight investment. 5. Page 6, Section 8 - PRINTING. The last sentence is amended to read "The City MAY provide payroll and claims checks but we would be walling to entertain bids for this service also." 6. Page 6, Section 9 - CREDIT CARDS. For calculation purposes the following sentence should be added. The City expects to maintain a credit card supply of 50 with a possible yearly turnover of 10." 7. Page 7, Section 12 - SAVINGS BONDS. The first sentence is amended to read as follows "Every other Friday the City will transmit to the bank a listing of City employees that are entitled to Series EE Bonds in specified denominations, the listing total to be debited to our main checking account." 8. Page 7, Section 14 - LINE OF CREDIT. Add the following: "Line of credit shall be established at $250,000. Documents necessary to implement a line of credit will be initiated by the City as appropriate.* COMPENSATION 9. Page 9, Section 3 - Direct Fee Proposal. Delete the second and third sentences. 10. Page 10 - BASIC SERVICE COST CALCULATIONS Add Account Maintenance - demand ea. 3 $ zero ba.ance ea 2 $ 11 Page 11 Earning rate calculation sha.L.1 be changed to "EARNIhGS ALLOWANCE". All bidders shall acknowledge receipt and acceptance of the Addendum No 1 by signing in the space provided and submitting the signed addendum attached to the contract documents. Bids submAted without this addendum shall be considered incomplete and informal. Receipt acknowledged and conditions agreed to this day of rciTJ y , 1984. BY .--Z4J=A FOR Ala) Ala-A Authorized Signature Bank