CONTRACT FOR BANKING SERVICES
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CONTRACT
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This negotiated Contract entered into this 7-'&'
day of L/LJ--I-_
1976, by and between the City of Clearwater, Florida, a Municipal corporation herein-
after called the City and Bamett Bank of Clearwater, N,A., located at 1130 Cleveland,
Clearwater, Florida, hereinafter called the Bank;
1HTNESSETH:
HHEREAS, it has been deemed advisable to consolidate to the extent possible all
cash resources of the City into accounts in one official depository bank to be
selected by competitive bidding by the commercial banks in the City; and
HHEREAS, the bid most advantageous to the City has been submitted by Barnett
Bank of Clean-later, N.A., which bank is engaged in the business of commercial bankjl1g
in the City of Clearwater and is qualified to perform the required services;
NOW THEREFORE, the parties agree as follows:
1. The Bank will perform the services called for in a proposal fon.-arded to
the Bank under cover of a letter from the City Treasurer dated Harch 4, 1976, a copy
of which letter and proposal marked "Exhibit All are attached hereto, and by reference
made a part of this Agree~ent as if fully rewritten herein.
2. The City, on its part, will maintain an average collected balance of Three
Hundred Eighty-five Thousand ($385,000.00) Dollars on deposit in demand accounts in
said Bank pursuant to that requirement set forth in a letter from the Bank dated
!>larch 24, 1976, a copy of which letter, marked "Exhibit B" is attached hereto and by
reference made a part of this Agreement, as if fully rewritten herein.
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The City has the option of
A. maintaining an average collected balance as noted above,
or
B. maintaining a lesser amount and being charged monthly for activity based
on item cost " per "Statement of Analysis", as contained in bank's letter
dated Barch 24, 1976, which charges shall be offset by an earning credit
on the average collected balance maintained by the City, figured at the
Treasury Bill bid rate nearest 30 days, as published in the Hall Street
Journal at the end of that month.
3. This Agreement will remain in effect for three years and may be renewed
for an additional three years by mutual consent of both parties.
CITY OF CLEAR WATER, FLORIDA
Counter signed
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. Mayor-Commissio1Gti- ,/
By
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Attest:
City Clerk MAY 1 2 1975
Witnesses:
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March 4, 1976
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Mr. B. P. Crosby. President
Barnett Bank of Clearwater liA
1130 Cl elle 1 and
Clearwater, Florida 33515
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Dear Hr. Crosby:
Th~ City proposes to consolfdate investments and cash now held in demand"
accounts in several conmercial banks into accounts in one deposftory bank to
be selected by co~patitille bidding between commercial banks in the City. We
sol1dt J10ur partiCipation 1n the bidding for this account.
The details of our proposal are spelled out on the attached form. It is
anticipated that the bank will respond specif1cally to each of the items
enUi~rated on this document, either concurring or Offering alternative proposals.
and in conclusion, stating the terms and/or conditions under which the bank will
undertake to meet these requfrements and provisions. All banks lnv1ted to bid'
fn thfs "~tter have been furnfshed fdentical inforrr~tfon. and no prelfmfnary
discussfon has taken place with any bank. The evaluatfon of responses to our
pt~posal and the ffnal selectfon,of the depository ban~ w11l be ~de fn the
light of all factors fnvolved. with avfel1toward servfng the best interests of
the City. In the same vein. the City reserves the rfght to reject all bids ff
this course would appear to be in the best interests of the City.
Please let us have your reply, includfng a copy of your most recent
Statemant of Condition, by no later than the close of busfness Wednesday.
~larch 31, 1976.
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Very truly yours.
ACL:zk
A. C. Lowrey . Jr.
City Treasurer
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EXHIBIT "A"
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C I T Y
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CLEARWATER
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tST OFFICE sox 4748
C LEA R W A T - R, F LOR] D A 33518
OFFICE OF -
FINANCE DIRECTOR
March 10, 1976
Re: Addendum to Solicitation for Bid Proposals
Dear t1r.
I have received several inquiries which indicate that the following informa-
tion may be of assistance in assessing the collateral requirement stated in our
solicitation for bids forwarded \'lith our letter of March 4,1976.
It \'ias stated in the proposal that the va 1 ue of accounts i nvo 1 ved wou 1 d be
approximately $27,000,000. This was an approximation intended as a general
indicator of the magnitude of the account. It included a sale of bonds now pending.
At this time, this figure is approximately $17,000,000. .
Considering the current total, $17,000,000, the approximate requirement
for pledged collateral would be:
Direct Obligations of United States Government
$3,500,000
$ 4,500,000
Other Collateral as Specified in the Proposal
These collateral pledges would cover cash balance and
of Deposits. The balance of the $17,000,000 would be
paper and thus would require no collateral pledge.
investments in Certificates
invested in U. S. Treasury
It should be borne in mind that the ratios suggested by the above figures
are strictly a function of the value of investments in Certificates of Deposits
at any given time. These ratios may change dramatically on short notice as the
mix of investments changes.
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Yours v ruly,
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,~ . C, LO\'lrey, Jr.,
eny ~reasurer
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CITY OF CLEARWATER
REQUEST FOR BID - DEPOSITORY BANK PROPOSAL
The City proposes to select by competitive bidding a single depository Bank
to perform all banking services for the City. Our proposal is set forth in the
following paragraphs. If you have questions concerning these matters, please
call the following persons as the need arises:
General Matters:
Clark Lowrey, Finance Director
Tel. No. 442-6131 - Exn. 337
Data Processing:
William McCall, Data Processing Mgr.
Tel. No. 442-0402 - Exn. 264
Parking Collections:
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Keith Crawford, Traffic Engineer
Tel. No. 442-6131 - Exn. 268
Bridge Collections:
Bill Burchfield, Harbormaster
Tel. No. 442-5690
Accounts presently envisioned and approximate magnitude of activity in these
accounts are indicated below:
ACCOUNT
CHECK ACTIVITY
DEPOSIT ACTIVITY
FREQUEtlCY CASH CHECKS (No.)
Payro 11 Account
3,500 A Month Approx.
Weekly None
Avg. 5 Weekly
Operating Account 1,500 A Month Approx.
Seoarate Trust 20-30 A Month Approx.
Accts.(As Required)
Daily Varying Avg. 1,000 Daily
Amounts
Credit of
Interest Occasional
Earnings Only
The total value of these accounts will vary, but at the present time amounts to
approximately $27,000,000.
THE CITY'S REQUIREMENTS ArID SPECIFICATIONS:
1. DEPOS ITS
a. Regular Deposits
Many activities of the City receive cash collections for various
services provided. It will be necessary that a drop depository be
available 24 hours a day for deposit of such collections. Deposits
will be made by a security service or by City employees whose sole
responsibility will be to deliver deposits into the designated drop.
Deposits will be accompanied by a deposit slip in duplicate. Upon
-verification-of-the deposit';-a-copy of-the deposit sl ip must-be
acknowledged by the Bank and mailed to the City Finance office the
same day. Deposit slips, in original and three (3) copies, in pads,
in such quantities as may be required, will be furnished by the Bank.
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b. Coin Deposits
1, The Clearwater Pass Toll Bridge, and City parking meters, generate
collections of coins in l-5-10-25-and-50~ denominations, amounting
to approximately $2500-$10,000 a day. In the case of parking meters,
these coins are gathered by City employees who will deliver them
uncounted to the location and/or individual specifically designated
by the Bank. Coins from the bridge will be delivered to the same
place or person, either by a City employee or by a security service.
Collections in these two instances are not counted in advance of
deposit. It will be necessary for the Bank to sort and count the
coins, determine the amount involved, and prepare deposit slips
in duplicate for each department involved. A deposit slip will be
fon~ard to the Finance office as specified in b.(5) below. The
Bank must provide the internal security obviously needed to guarantee
proper handling of such deposits. The Bank will be expected to
provide such mechanical sorting and/or counting equipment as may
be required.
2. Parking meter collections are segregated by individual parking
lots in containers. These containers will have to be emptied
into bags or other receptacles to be provided by the bank pending
sorting and counting. The integrity of separate collections from
specific lots must be preserved and separate deposit slips pre-
pared on each.
3. Forei gn - coi ns, tokens, slugs, muti 1 ated coi ns, etc. wi 11 not be
counted or assigned a value but will be removed from deposits,
accumulated, and turned over to the City Finance Department weekly.
Details of this procedure will be worked out between the City
Finance Department and the depository.
4. The Bank must be prepared to provide on demand approximately
$4,000 to $5,000 weekly in rolled quarters for change in the
bridge toll booth.
5. Coin deposits must be counted and documented during the business
day received, or the following day if collection is received
after the cut off time established by the Bank.
2. INVESTMENTS
a. Investments will be made and liquidated only upon instructions of
the City Treasurer or his deputy.
b. Investment transactions must be consummated on the same day instructions
are received from the City Treasurer, or on the next business day if
instructions are received after the necessary time deadline for current'
date action.
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2. INVESTMENTS (Cont.)
c. Transactions involving purchase or sale of investments will be
processed at no cost to the City.
d. The Bank shall provide safekeeping for investments owned by the
City.
e. The City reserves the right to dij"E:ct investllent in C.D. 's or other
time deposits in banks other than the official depository Bank.
3. COLLATERAL
a.
Deposits in excess of F.D.I.C. coverage must be fully collateralized.
Generally this requirement may be met by the pledge of any security,
other than shares of stock, in which the Bank is authorized by law
to invest its funds. The total collateral required to be pledged
will be computed initially at market value of securities involved;
adjusted thereafter in accordance with 3.(d) below.
C.D. 's or time deposits placed bv the depository bank in banks other
than the official depository wirroe-treated as part of the balance
on deposit in the depository bank and collateralized accordingly by
the depository bank as if such C.D. 's or time reports were in the
depository bank. Exceptions to this provision may be made with the
concurrence of the City Treasurer provided the same criteria for
collateral coverage specified in 3.(a) and 3.(d) shall apply.
C.D. 's placed ~ the Cit~ in other banks pursuant to paragraph 2.(e)
above, will be coTTatera ized separately by arrangement between the
City and the bank involved.
As of the end of each month, the Bank will furnish a listing of pledged
securities including U.S. Government securities, indicating current
market values. At this time, the amount of collateral required may
be recomputed as may be indicated by current balances on deposit and/or
market values of securities pledged.
The amount of pledged collateral may also be recomputed at other times
as required coverage varies.
b.
c.
d.
e.
4. STATEMENTS
a. Through September, 1976, statements will be cut off as of the end of
the month and delivered to the City Finance office within 4 days.
b. After September, 1976, the City will commence reporting on a l3-period
year rather than the traditional l2-month year. This will necessitate
a cut off date for statement purposes that will conform to a predetermined
schedule \~hich will be furnished by the City.
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4. STATEMENTS (Cant.)
b. (Cant.)
(1) Effective October 1, 1976, checks issued by the City will
be written by the computer. It is anticipated that the
depository bank will have in-house computer capability to
effect reconciliation of accounts, utilizing magnetic tape
and punched cards furnished by the City covering checks issued
during the period, and Bank computer files of checks paid.
Details of this data processing procedure to be workeO-OUt
between the Bank and City Data Processing personnel.
c. In addition to regular statements, it is assumed that the bank can
provide on demand daily balances in the depository accounts if and
when such information is required by the City.
5. SAFETY DEPOSIT BOXES
The Bank shall provide without cost such safety deposit boxes as may be
needed for storage of Registered Bonds, coupons, or other material re-
quiring exceptional security.
6. LINE OF CREDIT
The City will be granted a $750,000 line of credit available as may be
required, upon appropriate resolution by the City Commission, at interest
rates consistent with the tax exempt status of earnings on Municipal
obligations.
7. CONTINUITY OF SERVICE
It is imperative that the depository bank have and maintain sufficient
staff to support these requirements at all times without interruption of
service due to personnel turnover, vacations, illness, or other internal
disruptions. Severe or repeated breakdown of service for this reason will
be cause for termination of the agreement.
8. The Depository Agreement will continue in effect for three years, and by
mutual agreement between the City and the Bank may be extended for another
three years.
9. In formalizing this agreement, the City will reserve the right to restate
and/or renegotiate with the depository bank such additions, deletions, or
changes, or clarifications of the provisions of this agreement as may be
necessitated by law, or changed circumstances.
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Barnell Bank of Clearwater, N.A.
p, 0, Drawer 5128
Clearwater, Florida 33518
Phone 446,8111
March 24, 1976
Mr. A.C. Lowrey
Director of Finance
city of Clearwater
P.O.Box 4748
Clearwater, Florida 33518
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Dear Mr. Lowrey:
Thank you for the opportunity to make a proposal to become
the City's sole depository. We have very much enjoyed our relation-
ship in the past and believe that your office is acquainted with the
capability of our service, and hope that this past relationship will
be continued after your thorough analysis of our proposal.
Included with this letter is our response to your specific
items and we will be happy to expand or further explain any item
at your request. Asaated in our answer, attached is also a Barnett
Account Reconciliation Plan package, which we feel you will find
quite complete. An additional enclosure is the 1975 Annual Report
for Barnett Banks of Florida, Inc., wherein you will find that we
are a member of the largest banking organization represented in the
City of Clearwater. We further enclose a copy of this bank's state-
ment of Condition as of 12/31/75.
As we understand your letters and questionnaire, the City
intends to pay for it's banking services through balances in a
demand account. The specific balance required during any parti-
cular period will vary based on the earnings credit we allow you
for those balances. We enclose a statement analysis based on the
previous 30 days Fed Funds rate as an earnings allowance for the
balances based on activity projected from information furnished.
EXHIBIT "B"
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M:r;. A. C. Lowrey
Director of Finance
city of Clearwater
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March 24, 1976
Based on these projections, an average collected balance of
$385,000.00 would support the account activity at this time.
We very much want the City's business, and hope that after
a complete analysis of our proposal, the City will see f~t to
appoint us as the official depository.
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Sincerely,
BPC;ae
Encls
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B. P. Crosby
President
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'1-: - DEPOSITS
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A. Regular Deposits
All of your requirements and specifications in this section
can and will be met. We operate under the same requirements
for many of our commercial accounts. For your convenience, we
have three 24-hour drop depositories available. Also, the bank
will provide pads of deposit slips in original and three copies
without cost to the City.
B. Coin Deposits
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1. Your requirements in this section are standard operating
procedures for the bank. We have all the necessary equip-
ment to sort, count and package the coin for each individual
department, and prepare separate deposit tickets for each
department involved. Of course, this deposit will be handled
under the dual control concept.
2. Bags especially designed for coin will be provided for each
individual parking lot. The integrity of separate collec-
tions from specific lots will be preserved and separate
deposit slips prepared for each.
3. The bank does not accept foreign coins, tokens, slugs, or
mutilated coins for deposit either. Therefore, your
requirements poses no problem. Also, we will be willing
to work with you to obtain credit for the foreign and
mutilated coin.
4. We maintain a surplus on rolled coin in all denominations and
are prepared to handle all of your rolled coin requested on
demand.
5. This is our standard operating procedure.
2. Il\rvESTMENTS
A. This is our standard operating procedure.
B. This is our standard operating procedure.
C. We will handle the purchase and sale of investments at no cost
to the City.
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provide you with a safekeeping receipt for each, describing the
actual location, the description of th1 security, amount, rate
and purchase and due dates.
E. We concur.
3. COLL.l\TERAL
A. Deposits in excess of the FDIC coverage will be fully
collateralized.
B. All time deposits in excess of FDIC coverage will be fully
collateralized.
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C. We concur.
D. We will be happy to compute the collateral requirements at the
end of each month and provide detailed listings for all
securities pledged indicating their current market values.
E . lve concur.
4. STATEMENTS
A. We provide this service; and, end of month statements are
either mailed or hand delivered.
B. We also provide this type of service as many of our commercial
accounts are on a thirteen~Jiod year.
(1) We provide a very complete and flexible account
reconciliation plan. One of our many customers
that use this s=rvice is the School Board of
Pinellas County. For additional information,
please refer to the enclosed account reconcilia-
tion package.
C. We can provide this type of service.
5. SAFE DEPOSIT BOXES
We will be h!'lppy to "provide without cost the necessary safe
deposit boxes as may be required.
." " "6.-,, LINE OF CREDIT
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A $750,000.00 line of credit with interest rates consistent with
rates on Municipal obligations has been approved for a period of
three years. This credit is subject to the continuing satisfactory
financial condition of the City, and the necessary legal opinions
will be provided at the time of borrowing. At the present time,
the City owes us $861,000.00. This amount would be included in the
Line of Credit.
7. CONTINuITY OF SERVICE
We have the necessary staff to maintain and adequately service the
account. We will ~ontinue to provide excellent services without
interruption at any time.
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BARilETT BANK IF CLEAR\IATER, N .A.
PRO FORMA
STATEMENT OF ANALYSIS
110NTfl END I NG
CITY OF CLEARl-JATER
Average Ledger Balance
Less: Average Float
Net Collected Balance
Less:
% Reserve
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Average Balance Available for
Investment
385,000.00
VALUE INVESTABLE BAL. @ 5,00%
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1,604.16
EXPENSE
Items Deposited
Items Paid
22,000 %.03
5,020 %.07
TOTAL
660.00
351.40
Account Maintenance
1,011.40
3,00
CO IN Co 11 ect ions
70,000 % .50 per 100
2 % 1.00
%
%
%
ROLLED QUARTERS
2,000 % .025 per roll
10 % 2.00
5,000 % .03
TOTAL EXPENSE
350.00
2.00
SAFE DEPOSIT BOXES
Transfer of Funds
Stop Payments
Additional Statements
Coin & Currency Shipment
50.00
Safekeeping Fees
20.00
150.00
Other RECONCILIATION
PROFIT FOR MONTH
1,586.40
17.76
ACCUMULATED PROFIT (loss)
f40nth End i ng