CONTRACT FOR BANKING SERVICES (3)
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Post Office Drawer 5128
Clearwater, Florida 33518
813/535-0711
July 25, 1985
Mr. Daniel J. Deignan, CPA
Finance Director/City Treasurer
City of Clearwater
Post Office Box 4748
Clearwater, Florida 33518
RE: Contract for banking services between the City of
Clearwater and Barnett Bank of Pinellas County, N,A.
dated July 14, 1982
Dear Dan:
According to the terms of the above referenced contrac~ item
three states as follows.
This agreement will remain in affect for three years
and may be renewed for an additional three years by
mutual consent of both parties.
Barnett Bank of Pinellas County, N.A. is willing to renew the
present contract for the additional three year period observing
and operating under the same terms, prices and procedures as
specified in the above referenced contract.
If the City of Clearwater is willing to renew the contract under
the same terms and conditions, please indicate by signing a
copy of this letter.
Sincerely,
("J g .
Ed Biagi ~
Senior Vice President
EB/lme
By mutual consent between the Barnett Bank of Pinellas County, N.A.
and the City of Clearwater, the above referenced contract will be
extended for an additional three year period.
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City of
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Clearwater
Witness
arnett Bank of Pin'
Ed Biagi, Senior Vice
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Contract for Banking Services
Attest :.:.
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Approved as to form correctness:
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Acting City Attorney
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CONTRACT
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This negotiated Contract entered into this 9
by and between the City of Clearwater, Florida, Municipal
L-.-
day of 01-, 1982,
corporation, hereinafter
called the "City", and Barnett Bank of Pinellas County, N,A., located at
1130 Cleveland Street, Clearwater, Florida, hereinafter called the "Bank":
WI T N E SSE T H :
WHEREAS, 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
WHEREAS, the bid most advantageous to the City has been submitted by
Barnett Bank of Pinellas County, N.A., which bank is engaged in the business of
commercial banking 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 forwarded
to the Bank under cover of a letter from the Purchasing Officer dated May 7, 1982,
a copy of which letter and proposal marked "Exhibit An are attached hereto, and by
reference made a part of this Agreement as if fully rewritten herein, except as
modified by the Barnett Bank of Pinellas County bid (dated June 2, 1982 and amended
July 14, 1982), marked ''Exhibit B" attached hereto and by reference made a part of
this Agreement as if fully rewritten herein, and by the following:
The Bank agrees to provide safe keeping receipts for D,S, Treasury
or Federal Agency Debt Issues as the securities for the overnight
repurchase agreements, the market value of which will always be no
less than 105% of the principal amount of the individual repurchase
agreement.
2. The City, on its part, agrees to pay for services provided in the manner
specified in ''Exhibit B".
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.
ApproveSl:"SLS-to.,form and correctness:
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Attest:
CitY Manager.
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City Clerk
Witnesses:
BARNETT B;+NK OF CLEARWATER, N.A.
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By 16' (~.{Z'<J ~.
President
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EXHIBIT "A"
SUBJECT: REQUEST FOR PROPOSALS, BANKING SERVICES AGREEMENT
I. Bid Procedures:
[.
Sealed Bids:
Responses to this request should be submitted in a sealed envelope,
clearly identified as:
and mailed to:
Bid Proposal
Banking Services
or delivered to:
Donald J. Petersen
Purchasing Officer
P.O. Box 4748
Clearwater, FL 33518
Donald .J. Petersen
Purchasing Officer
71 [ Maple Street
Clearwater, Florida
2. Bid Response: Must be on standard form provided. Supporting material may be
submitted, however, the City's decision in selecting the most
responsive bidder will be based on the standardized form provided.
3. Questions. Additionollnformation:
Requests for clarification or odditional information should be sub-
mitted in writing to:
llECE,\VEQ'
Barbaro J. 'IV eston
Assistant City Treasurer
P,O. Box 4748
Clearwater, FL 33518
Aut; 2.6 1982
Questions relating to Data Processing shouid be addressed to:
cITY c1.EJUC.
William A. McColl
Data Processing Manager
P.O. Box 4748
Clearwater, FL 335[8
Responses will be in writing to ell bidders as addenda to this RFP,
Telephone questions to individuals within the City of Clearwater ore
not encouraged, but will be permitted, with the exclicit oroviso that
any such answers ore in no way binding upon the bidaing process and
upon the award of contract.
4.. Biddinq Schedule:
May 7, 1982-
Distribution of Request for Proposals.
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I. Bid Procedures (Continued):
4. Bidding Schedule (Continued):
June 4, 1982-
Bids must be in possession of Purchasing
Director by 3:00 P.M. this date.
July I, 1982-
Recommendation for award to City
Commission.
August 2, 1982-
Implementation date for new three year
agreement.
5. Selection Criteria:
The following criteria will be used to evaluate bid responses and to recommend
award to the City Commission:
o complete response to all required response items on standardized bid
forms;
o aggregate banking services cost, per identified activity;
o calculation method of earnings allowance on cash balances;
o experience and continuity of Bank officials identified as primary contact
points;
o responses from references;
o physical proximity to City offices and activities.
6, Terms and Conditions:
The City reserves the right to reject any irregularities or informality in any bid, or
to accept or reject any item. In the event that the bidder to whom the bid is
awarded does not execute a contract within thirty (30) days after the award of bid,
the City may give notice to such bidder of intent to award the bid to the next most
qualified bidder, or to call for new bids.
The intent of this bidding process is to select one Bank to provide all banking
services except for Pension Trust Accounts. The City reserves the right to distribute
services to different Banks if this approach might result in significant savings to the
City. The standardized bid form indicates the number of transactions anticipated,
and although this is the City's best estimate of volume, the City does not guarantee
these as minimum volumes.
Bids will be on file in the Finance Department ,for review after July I, 1982.
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II. Scope of Bankinq Services
I. Main Operatinq Account:
The City's operating account contains a variety of activity. Each of the various
services provided by the City is responsible for its own deposits. Therefore., it is
necessary that. a drop depasitory be available 24 hours .a day for deposit of
collections. Depasits will be made by City emplayees or a security service. Except
for Bridge and Parking Deposits, all deposits will be accompanied by a deposit slip in
duplicate. Upon verification of the deposit, a copy of the deposit slip must be
acknowledged by the Bank and mailed to the City Finance Office the same day. Pads
of deposit slips printed with the name of the activity will be furnished at. no charge
by the Bank, in such quantities as may be required.
In the case of deposited checks being returned because of insufficient funds or any
other reason, one attempt will be made by the Bank to redeposit the check, after
which it will be forwarded to the City Finance Office for processing.
It is estimated that the City writes approximately 1,250 checks per month on the
operating accaunt. It is estimated that 550 deposits per month are made to this
account.
The average amount of money processed through this account each four-week period
is $9,000,000, Of this amount approximately one-half involves investment transac-
tions.
The Bank must have the capability of receiving wire transfers from the State and
Federal Governments for items such as State Revenue Sharing, Federal Revenue
Sharing and Community Development Block Grants.
The total value of this account (including cash and short-term investments) at the
present time is approximately $25,000,000.
2. Payroll Depository:
The City is currently on a bi-weekly payroll basis, paying an average of 1,480
emplayees every other Friday. Net pay amounts to approximately $600,000 bi-
weekly, In addition, a special Sanitation workers payroll of approximately 100
checks is issued weekly on Friday. Net pay for this payroll amounts to approximately
$20,000 weekly. It is the intent of the City to continue with this payroll system;
however, mainly due to employee union contracts, this system may change. It is
estimated that 3,600 payments per month are associated with this account.
The Bank will operate the account for the Payroll system as a "zero balance"
account. The City will not deposit funds to this account. As payroll checks are
presented for payment, the Bank will automatically transfer the amaunt needed to
pay these checks from the main operating account.
Although the City is not currently utilizing a direct deposit payroll system, the
ability of the Bank to provide this service (either completely or fora portion of our
employees) in the future, at the City's option, is desirable.
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II. Scope of Bankinq Services (Continued):
3. Self-Insurance Account:
The City maintains a separate account to handle the transactions involved in the
Self-Insurance Program. This account is administered by Gallagher Bassett Insurance
Service, 3118 Gulf-to-Bay Blvd., Clearwater. Approximately 20 checks and one
deposit flow through this account each month. The maximum value of this account is
$10,000.
4. Statements:
The cvt-off date for statement purposes for all City accounts will be the last day of
. each month. Statements must be delivered to the City Finance Office within five
working days following this cut-off.
Payroll checks are currently written by the Computer. The depository Bank must
have computer capability to reconcile checks issued by the City with checks paid by
the Bank utilizing magnetic tapes supplied by the City and Bank computer files of
checks paid.
It is anticipated that the operating occount will be computerized in the future. The
same reconciliation procedure will be necessary for this account at that time.
Checks are to be arranged in numeric order before they are returned to the City
with the statements.
A statement must be furnished for all special accounts required by the City on the
same schedule as the regular accounts. The City reserves the right to add additional
accounts as maybe necessary.
In addition to regular statements, the Bank must provide on demand, daily balances
in the depository accounts if and when such information is required by the City.
Please see Lock Box and Investments for additional reportrng requirements associat-
ed with these services.
5, Coin Deposits:
(I) The Clearwater Pass Bridge, and City parking meters, generate collections of
coins in 1-5-10-25-50.; denominations, amounting to approximately $2,500 to
$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. Deposit slips for the Bridge must list the number of each vault
delivered and the amount for each denomination of coins contained in each
valut, A deposit slip will be delivered to the Finance Office as specified in 6
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II, Scope of Bankinq Services (Continued):
S. Coin Deposits (Continued):
below. The Bank must provide adequate internal security to guarantee proper
handling of such deposits. The Bank will be expected ta provide such
mechanical sorting and/or counting equipment as may be required.
(2) The Bridge collections will contain tokens that must be counted and reported
the same as regular coins. The City owns a machine that extracts, counts and
bags these tokens. This machine will be made available to the Bank awarded
this agreement. The Bank will also be required to store the inventory of tokens
. currently' maintained by the City.' A log must be maintained by the Bank,
showing the amount of tokens on hand at all times. On a periodic basis, usually
twice a week, the City will deposit to the Bank proceeds from the sale of
tokens at the Bridge. The Bank will count this money, deposit it to the
operating account, then send to the Bridge, by security service, the amount of
tokens equal to the money deposited (6 tokens for each $1 deposited).
(3) Parking 'meter collections are segregated by individual parking lots in con-
tainers. 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 prepared on each. The City of Clearwater currently has
31 'lots in operation.
(4) Foreign coins, tokens, slugs, mutilated coins, etc., will 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.
(5) 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.
(6) Coin deposits must be counted and documented during the business day
received, or the following day if collection is received after the cut-<Jff time
established by the Bank. All deposit slips will be delivered to the City Finance
Department at City Hall no later than the next working day following the
deposi t .
6, Lock Box Services:
The Bank will provide a Lock Box Service for the City's utility collections per the
following instructions:
(I) The City will provide a post office box. The Bank will retain the key to this
post office box and have exclusive use of same. The Bank must provide the
internal security needed to guarantee proper handling of these deposits.
(2) Each morning Bank personnel will empty this box of its contents. The contents
of the envelopes will be removed and checks or cash will be verified against
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.II. Scope of Bankinq Services (Continued):
6, Lock Box Services (Continued): ,
the utility stub. Items matching will be processed. Items that do not match
will be classified as rejects andwill be set aside.
(3) All processed items will be keypunched, balanced ond filmed and the aggregate
amount deposited to the operating account.
(4) Reject items will be filmed.
(S) A magnetic tape containing all processed items will be delivered to the Data
Processing Center at the City Annex prior to 2:30 the same day. This magnetic
tape must be compatible to the City's Computer System.
(6) The utility stubs; a copy of the deposit slip, and all reject items will be
delivered to the Utility Department at 900 Chestnut Street the same day.
(7) A copy of the deposit slip will be delivered to the Finance Department at City
Hall the same day.
(8) The estimated volume of transactions for the above service is 40,000 items per
month.
(9) The City reserves the right to require additional collections from the post
office if that volume of items supports this request.
(10) It is anticipated that in the future the City will be printing the utility bills
with an OCR coding system. The Bank should indicate on their bid the per item
price if the items must be keypunched; and also the per item price if the items
can be scanned. .
7. Investments:
The Bank will handle the purchase or liquidation of investments only upon instruc-
tion of the City Treasurer or his designee.
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 adion. Repeated failure
to consummate investment instructions will be cause for cancellation of agreement.
On maturity or liquidation of an investment, notification will be sent to the City
Finance Office showing the deposit of the proceeds. The same type notification will
be required for all purchases of investments. These notifications will be mailed the
same day as the transactions.
The City reserves the right to invest in time deposits, U. S. Government securities
or repurchase agreements through other Banks or institutions if higher interest rates
have been offered.
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II. Scope of Bankinq Services (Continued):
7. Investments (Continued):
The Bank shaJl provide safekeeping for investments owned by. the City whether
purchased through the Bank or from .an individual investment. firm. A statement
listing a detail of all items in safekeeping will be furnished to the City at the end of
each month. .
The Bank shall provide repurchase agreements to the City at rates equivalent to the
Bank's most preferred customer.
The City estimates that investment activity will be approximately six transactions
per month.
8. Collateral:
In compliance with the Florida Security for Public Deposit Act, Chapter 280, Florida
Statutes, all institutions submitting bids for the City's banking service must be
included on the list of approved financial institutions os published by .the Depart-
ment of Insurance & Treasurer.
9. Safety Deposit Boxes:
The Bank shall provide safety deposit boxes as may be needed for storage of
R.egistered Bonds, Coupons, or other material requiring exceptional security.
10. line of Credit:
The City will be granted a $/ ,000,000 line of credit avoilable as may be required,
upon appropriate resolution by the City Commission. The City reserves the right to
use the line of credit on debt secured by pledge of specific revenues, or 5-year
lease-purchase agreements.
II.. Wire Transfers:
The City occasionally is required to wire transfer funds to other Banks. This service
will be provided on the request of the City Treasurer or his designee. In order to
maintain audit controls the Bank will be provided with written guidelines to follow
regarding these transfers.
12. Savinqs Bonds:
The City offers to its employees the payroll deduction pion for the purchase of
Savings Bonds, The Bank must have the capability of preparing from computer
printouts provided by the City, approximately ISO Savings Bonds every two weeks.
Once completed, these bonds will be mailed directly to. the employees' home
addresses by the Bank.
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III. Standard Bankinq Services Bid Responses - (Actual Bid Response Form Attached)
. Bankinq Service:
Part A
Bank Name
Official Submitting
Response
Title
Phone
Part B
Estimated
Monthly
Activity
Unit
Price
Monthly
Cost
I.
2.
3.
4.
5.
Account Maintenance
3
Account Reconciliation "'"
2,000-3,800
5,000
25,000
$75,000.00
$20,000,00
Items Paid
Items Deposited
(a) Coin Sorting & Counting
(b) Coin & Currency Shipment
6.
Lock Box Services
(Keypunched)
(OCR Scanned)
40,000
7.
8.
9.
Stop Payments
6
6
6
Wire Transfers
Investment Transactions
I O. Safety Deposit Box
II, Returned Items
40
333
12. Savings Bonds
13. Other Itemized Services
Totals:
Option: Direct Deposit Payroll System
"'"Estimated activity based on Payroll only. Volume will increase when main operating account is
computerized.
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III. Standard Bankinq Services Bid Responses (Continued):
Part C
I. Earninqs Allowance Procedure:
The Bank will prepare an analysis of the City's accounts at the end of each month.
This anarysis will show the average daily collected balance less actual reserve
requirements. This balance will be used to compute the monthly earnings on the
account based on the average Federal Funds rate for each Friday of that month as
quoted in the Wall Street Journal. (The Federal Funds rates and the computed
average will be included with each monthly analysis.) The difference between the
monthly earnings and monthly itemized service charge will result in an earnings
credit or charge to the City's main operating account. A copy of this analysis will
be submitted to the City Finance Office within ten calendar days after the end of
each month.
2. Hypothetical Example for Month of July, 1982:
(I) Average Collected Balance July, 1982 $ 500,000
Less: Reserve Requirements @ 13% (65,000)
Average Account Balance Subject To Earnings $ 435,000
(2) Average Federal Funds Rate for July 13%
(3) Monthly Earnings (435,000 divided by .13 X 12) $ 4,712.50
(4) Monthly Itemized Banking Service Charge for July, 1982 3,000.00
(5) Monthly Earnings Credit for July $ I ,712.50
3. Alternative Earninqs Allowance:
The City will consider alternatives to the above earnings allowance procedure. Any
Bank submitting on alternative procedure should be sure to include a complete
formula of the proposed procedure as well as an example of how the formula works.
The City will also consider the use of an alternate earnings rate (describe basis for
rate and basis for future objective documentation of rate). .
4. Desiqnated Bank Contact Individuals (include position, length of service, and
summary of professional experience. Please attach listing to bid response form.)
(a) General Information
(b) Investments
(c) Lock Box Service
(d) Bookkeeping
(e) Line of Credit
(f) Head Teller
(g) Other (Specify)
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III. Standard Bankinq Services Bid Responses (Continued):
Part C (Continued)
5. References:
In order to ensure that the Bank receiving the City's Banking Service Contract is
capable .of handling the City's accounts, the Bank must provide a list of names and
addresses of business customers of similiar size and complexity to City's require-
ments.
6 Please attach a current statement of financial condition and income statements for
the past five years.
7, Pleose attach a copy of your Community Reinvestment Act Policy Statement and a
short discussion of activities taken and proposed for the future, which are designed
to implement your community reinvestment objective.
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STANDARD BANKING SERVICES BID RESPONSE FORM
Bank Name:
. Official Submitting
Response:
Title:
Phone:
Estimated
Monthly Unit Monthly
Bankinq Service: Activity Price Cost
I. Account Maintenance 3
2. Account Reconciliation 2,000-3,800
Items
3. Items Paid 5,000
4. Items Deposited 25,000
5. (a) Coin Sorting and Counting $75,000.00
(b) Coin ond Currency Shipment $20,000.00
6. Lock Box Services (Keypunched) 40,000
(OCR Scanned)
7. Stop Payments 6
8. Wire Transfers 6
9. Investment Transactions 6
10. Sofety Deposit Box
II. Returned Items 40
12. Savings Bonds 333
13. Other Itemized Services
Totals:
Option: Direct Deposit Payroll System
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EARNINGS ALLOWANCE PROCEDURE:
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LINE OF CREDIT-INTEREST RATE PROCEDURE AND DOCUMENTATION REQUIREMENTS:
DESIGNATED BANK CONTACT INDIVIDUALS:
REFERENCES:
FINANCIAL STATEMENTS A IT ACHED:
COMMUNITY REINVESTMENT ACT POLICY STATEMENT A IT ACHED:
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EXlIIBI T "B "
Post Office Drawer 5128
Clearwater, Florida 33518
813/461-1778
June 2, 1982
Donald J. Petersen
Purchasing Officer
City of Cleanvater
P.O. Box 4748
Clearwater, FL 33518
Dear Mr. Petersen:
~\e.are enclosing our bid to continue ~s ehe City's
depository in a separate sealed envelope, per your
instructions.
\{e appreciate the opportunity to of 'fer our services to
the City and I believe that our long ~eco=d of service
to the City will be a strong consideration or our
capability to render satisfa.ctory serJ'ice. ~Je are
completely qualified in ell areas of service required.
';;e hope that during your consideration of various ~ids
that you will receive, that a Clearwater based bank is
given priority inasmuch as the handling of your account
can better be done on a local basis, rather than through
a branch office operation.
Should you have any questions concerning our proposal,
p lease advise.
Sincerely,
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E.J. Biagi
Senior Vice President
EJB/kld
Ene losure s
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STANDARD BANKING SERVICES BID RESPONSE FORM
Bank Name:
Barnett Bank of Pine11as Countv, X.A,
Official Submitting
Response: E.J, Biagi
Title:
Senior Vice President
Phone:
.' (813)461-1776
Option: Direct Deposit Payroll System
\Je are completely qualified in this area and can iopleoent this
system whenever the City is ready to proceed.
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EAR)lINGS ALLQ;vANCE P,,-OCEDURE
The cost of the services can be paid for by fees or
balances. Since the City has used the compensating
balances as pa:rment, the bid Hill unbundle all pricing
in fees and translate these fees into the equivalent
balance.
At the beginning of each ~onth a target balance will be
established. This balance will be the average daily
balance that must be maintained .for the month. Once the
t2~get bal;nce is met e~cess ba12nces can be t=ans=e=r2c
into a =epurch2se ~g~eement. To cete~i~e the City's cai17
cash position Barnett will use its Information ,,-eporting
System.*
The target balance "ill be determined by the earnings
credit rate. This rate is determined monthly based on the
previous month's everage federal funds. (Collected balance
minus Federal Reserve Requirements equals average loanable
balance) This rate is applied against the average loanable
balance during the month to determine the income earned.
The expenses are then deducted from the income earned to
arrive at a net profit or loss.
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The target balance will fluctuate because the earnings
credit rate changes monthly depending on the Federal
Funds rates.
A Compensating Balance of $490,000.00 ,vould support the
monthly costs of $5,202.50.
ECR for June 14.56%
Federal Reserve Requirements 12.5%
All excess funds will be invested' in repurchase agreements.
1. The minimum amount of a repurchase agreement Hill
be $10,000.00.
2. The rate of return '",ill be 1% belm, the daily federal
funds rate.
3. Repurchase agreements will be secured by United States
Treasury and Federal Agency Issues.
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EARNINGS
Average Ledger Balance
Less: Average Float
Net Collected Balance
Less: 12.5% Reserve
Average Balance Available
for Investment
VALUE INVESTABLE BALANCE @
14.56*
Banking Service:
1. Account Maintenance
2. Account Reconciliation
3. Items Paid
4. Items Deposited
S. (a) Coin Sorting and Counting
(b) Coin and Currency Shipment
6. Lock Box Services (Keypunched)
(OCR Scanned)
7. Stop Payments.
8. Wire transfers
9. Investment Transactions
10. Safety Deposit Box .
11. Returned Items
12. Savings Bonds
13. Other Itemized Services
PROFIT OR LOSS FOR MO~7H
*AVERAGE,FEDEP~L FU~DS FOR MAY 1982
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ALLOWANCE PROCEDURE
EXAMPLE
490,000
61,250
.428,750
%
Estimated
Monthly
Activitv
Unit
Price
3 7.50
2,000 - 3,800 .06
Items
5,000 .11
25,000 .04
$75,000.00 $1.00 per $106.
$20,000.00 $ .50 ner $100.
40,000
.06
6 10.00
6 10.00
6 N/C
1 ~/C
40 .80
333 N/C
MONTHLY COST
5,202
Monthly
Cost
22.50
228.00
550.00
32.00
5.202.50
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LINE OF CREDIT - INTEREST RATE PROCEDURES
AND' DOCUMENTATION REQUIRE)mNTS
Interest Rate Procedures
65% of prime floating or a fixed rate consistent with
interest rates on municipal obligations of similar risk,
maturity, and marketability.
Documentation Requirements
Documentation sufficient to satisfy our legal counsel
as to legality and tax free nature of .the transaction.
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JUL 191982
Post Office Drawer 5128
Clearwater, Florida 33518
813/46101776
FINANCE DEPT.
July 14, 1982
Jeffrey E. Butler
A'sst. City Manager for Finance
City of Clearwater
P.O. Box 4.748
Clearwater, FL 33518
Dear Jeff:
In connection with our bid responses dated June 2, 1982
to handle banking services for the City and the
related developments in our meeting of July 13, 1982,
we would like to a~end three areas of our responses.
The amended areas are Unit Price on Items Deposited,
Method of Compensation, and Rate of Return on Open
Repurchase .'<.greements. Each area will be addressed
individually.
Unit Price on Items Deposited
The unit price on items deposited will be .07. This
is an increase of .03 from the stated price of .04.
Method of Compensation
The method of compensation to the bank for services
provided will be in ,the form of monthly fees instead of
compensating balances. At the end of each rronth the
bank will provide a detailed statement showing the
cost of the various services . The City will remi t to
the bank by check the cost of those services.
Rate of Return on Open Renurchase Agreements
The rate of return will be 1/2 of 1% below the daily
average federal funds rate of the following banks:
Chemical Bank of New York
Continental Bank of New York
M'anufacturers Hanover Bank of New York
,
. '
I
I
Jeffrey E. Butler
City of Clearwater
July 14, 1982
Page 2
By amending these items all collected funds will be
invested daily in the open repurchase agreement.
Jeff" this should give us the basis for drafting a
contract. As always, it is a pleasure doing business
with the City, yourself, and Barbara.
Sincer ely,
E.J. Biagi
Senior Vice President
EJB/kld