CONTRACT FOR BANKING SERVICES (4)
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CON T RAe T
This negotiated Contract entered
()~, 1988,
into this
/ytl-l
day
of
by and between the City of Clearwater,
Florida,
Municipal corporation, hereinafter called the "City", and Barnett Bank
of
Pinellas
county,
N .A. I * located
at
1130
Cleveland
Street,
Clearwater, Florida, hereinafter called the "Bank'l:
WIT 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 June 1, 1988, a copy of which letter and proposal marked
"Exhibit All are attached hereto, and by reference made a part of this
Agreement as if fully rewritten herein, and the bid of Barnett Bank of
Pinellas County, N.A.,* marked IIExhibit B" attached hereto and by
reference made a part of this Agreement as if fully rewritten herein.
2. The City, on its part, agrees to pay for services provided in
the manner specified in "Exhibit Ell.
3. This Agreement will remain in effect for three years and may
be renewed for additional three year periods by mutual consent of both
parties.
Mayor-Commissioner
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Ci::_ty ~-;-alJ'-er - :.::-..
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Attest:
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City A 0 ney
correctness:
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*Now known as Barnett Bank o{Pi ne 11 as County ,
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C I T Y
OF CLEARWATER
POST OFFICE BOX 4748
C LEA R W ATE R, F LOR I D A 3 4 6 1 8 . 4 7 4 8
Office of
Finance Director
462-6930
June 1, 1988
Dear
The City of Clearwater is currently seeking competitive proposals for banking
services from all banks and savings and loans which are located within the
Clearwater area.
The attached exhibits outline the City's bid procedures, the scope of the
required banking services to be provided, and information which will help the
prospective bidders to understand the size and nature of the City's accounts.
All bidders are required to provide their responses in the standard format
represented by the "Banking Services Bid Response Form" which follows the
exhibit section.
Very truly yours,
Philip J. Bennis
Purchasing Officer
Enclosures
"Equal Employment and Affirmative Action Employer"
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CITY OF CLEARWATER
BID PROCEDURES
1. Sealed Bids:
Responses to this request for proposals should be submitted in a sealed
envelope, clearly identified as "Proposal for Banking Services," and mailed
to:
Philip J. Bennis
Purchasing Officer
P. O. Box 4748
Clearwater, Florida 34618-4748
or delivered to:
Philip J. Bennis
Purchasing Officer
711 Maple Street
Clearwater, Florida
2. Bid Responses:
All responses must be presented on the standardized "Banking Services Bid
Response Form" which has been provided. Supporting material may be
provided; however, the City's decision will primarily be based upon a
comparison of the standardized bid forms received. The City reserves the
right to reject any or all bids, or to informally negotiate certain points of
the final contract with a qualified bidder.
3. Questions and Additional Information
Requests for clarification or additional information should be submitted in
writing to:
Barbara J. Weston
Cash & Investment Manager
P. O. Box 4748
Clearwater, Florida 34618-4748
Responses will be in writing and copied to all bidders as addenda to this
RFP. Telephone questions to individuals within the City of Clearwater are
not encouraged, but will be permitted with the explicit proviso that any
such answers are in no way binding upon the bidding process and upon the
award of contract.
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4. Bidding Schedule:
June 1, 1988
July 13, 1988
August 4, 1988
October 1, 1988
5. Selection Criteria
Distribution of Request for Proposals
All sealed bids must be in the hands of the City's
Purchasing Officer by 3:00 P.M.
Recommendation for award to City
Commission.
Anticipated implementation date for
contract.
The following criteria will be used to evaluate bid responses and to make a
recommendation for award to the City Commission:
a. The completeness of the response to all required items on the
standardized bid forms
b. The aggregate total cost of banking services
c. The proposed earnings rate on overnight cash balances
d. The experience and continuity of the bank officials identified
as primary contact personnel
e. Responses from references
f. Physical proximity to City offices and activities
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SCOPE OF BANKING SERVICES
1. Main Operating Account:
The City's main operating account covers a variety of activities.
Several of the City's departments are responsible for their own
deposits, and require a 24-hour deposit capability for their
collections. Deposits will be made by either City employees or a
security service. With the exception of parking meter deposits and
bridge deposits, all deposits will be accompanied by duplicate deposit
slips. Upon verification of the deposit, a copy of the deposit slip
must be acknowledged by the bank and mailed to the City Finance
Department on the day of verification. 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.
Should deposited checks be 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's Finance
Department for processing.
The City writes approximately 1;600 checks per month on the operating
account, and makes approximately 1,000 deposits per month to this
account.
The average amount of money processed through this account each
month is $15,000,000. Of this amount, approximately 1/2 involves
investment transactions.
The bank must have the capability of receIVlng electronic transfers
and wire transfers from the state and federal government for items
such as state revenue sharing, federal grants, and Community
Development Block Grants.
The average monthly value of this account (including cash and
short-term investments) over the past 12 months has been
approximately $62,000,000.
2. Payroll Account:
The City is currently on a biweekly payroll basis, paying an average
of 1,800 employees every other Friday. The net payroll amounts to
approximately $1,000,000 per pay period. In addition, a pension
payroll of approximately 320 checks is issued at the end of each
month. Net pay for this pension payroll amounts to approximately
$250,000.00.
It is the intent of the City to continue with this payroll system,
subject to any forced changes which occur due to union contracts.
Approximately 4,000 payroll checks are issued monthly.
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The City will not deposit funds to the payroll account. Instead, the
bank will operate a "zero balance account," to which funds are
automatically transferred from the main operating account as payroll
checks are presented to the bank for payment.
Although the City is not currently utilizing a direct deposit payroll
system, the ability of the bank to provide this service (either
completely or for a portion of our employees) in the future, at the
City's option is required.
3. Self-Insurance Account:
The City maintains a separate account to handle the transactions
involved in the Self-Insurance Program. This account is currently
administered by Gallagher Bassett Insurance Service, 2953 U S 19 N,
Suite 301, Clearwater. Approximately two deposits and 4 wire
transfers flow through this account each month. The maximum value
of this account is $30,000.
4. Bank Statements:
The cut-o ff date for statement purposes for all City accounts will be
the last day.of each month. Statements must be received by the City
Finance Department within five working days following the cutoff.
Payroll checks are computer-generated. The depository bank must
have computer capability to reconcile checks issued by the City with
checks paid by the bank, using magnetic tapes supplied by the City
and bank computer files of checks paid. The same reconciliation
procedures must be available for the main operating account if it is
needed at a future time.
Checks are to be arranged in numeric order prior to their return to
the City with the statements.
A statement must be furnished for all Special accounts required by the
City on the same schedule as required for the operating account. The
City reserves the right to add additional accounts as 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.
5. Coin Deposits:
The Clearwater Pass Bridge and City parking meters generate
collections of coins in 1-5-10-25 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 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
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coins, determine the amount involved, and prepare deposit slips in
duplicate for each location 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 vault. A deposit slip will be
delivered to the Finance Office as specified below. The Bank must
provide adequate internal security 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.
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. The average inventory of tokens is between 100,000 to 200,000.
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. (8 tokens for each $1
deposited) .
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 prepared on each. The City
of Clearwater currently has 30 lots in operation.
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 Bank.
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.
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. All deposit slips will be
delivered to the City Finance Department at City Hall no later than the
next working day following the deposit.
6. Lock Box Services;
The Bank will provide a lock box service for the City's utility
collections, according to the following instructions:
a. The City will provide a post office box. The Bank will retain a
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 all deposits received through the post office box.
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b. Each morning, the Bank's personnel will empty this box of its
contents, at an early enough hour to insure that all deposits will be
processed prior to cutoff. The contents of the envelopes will be
removed, and checks or cash will be verified against the utility
payment stub.
c. All items will be processed by OCR scan, balanced, and filmed, and
the aggregate amount deposited to the operating account.
d. A magnetic tape containing all items processed in step (c) will be
delivered to the Data Processing Center at City Hall Annex, 10 S.
Missouri Avenue prior to 2:30 p.m. on the same day that they were
received. This magnetic tape must be compatible to the City's
computer system.
e. The utility stubs, one copy of the deposit slip, and any items that
can not be processed will be delivered to the Utility Department at 900
Chestnut Street by 3:00 p.m. on the same day that they were received.
f. A copy of the same deposit slip will be delivered to the Finance
Department at City Hall on the same day that they were received.
g. The estimated volume of transactions for the above service is
30,000 items per month.
The City reserves the right to require additional collections from the
post office if the volume of items supports this request.
7. Investments:
The Bank will handle the purchase or liquidation of investments only
upon instruction by the City Finance Director or his designee.
Investment transactions must be consummated on the same day that
instructions are received from the City Finance Director, or on the
next business day if so instructed. Failure to consummate investments
on a timely basis will constitute a breach of this contract, and will
constitute cause for immediate cancellation of the contract, or legal
action for damages, or both.
Upon maturity or liquidation of an investment, written notification will
be sent to the City Finance Director showing the deposit of the
proceeds. The same type of written notification will be required for
all purchases of investments handled through the Bank, whether
purchased by check, wire transfer, electronic debit, etc. These
notifications will be mailed on the same day that the transactions
occur.
The City reserves the right to invest in time deposits (0 f any bank),
U.S. Government securities. repurchase agreements, or other
investments deemed legal and prudent in the opinion of the City. In
no case will the Bank be awarded time deposits at rates lower than
those established in the competitive marketplace.
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The Bank shall provide safekeeping facilities for investments owne.d by
the City, either within the Bank's own facilities, or at the Federal
Reserve. A copy of all safekeeping receipts will be issued to the City
at the consummation of each investment transaction. A statement
listing the details of all items in safekeeping will be furnished to the
City at the end of each 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 as published by the Department of Insurance and
Treasurer.
9. Safety Deposit Boxes:
The Bank shall provide safety deposit boxes, as needed, for the
storage of registered bonds, coupons, or other material requiring
exceptional security.
10. Line of Credit:
The City will be granted a $1,000,000 line of credit available as may be
required, upon appropriate resolution by the City Commission.
11. 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
Finance Director or his designee. In order to maintain audit controls
the Bank will be provided with written guidelines to follow regarding
these transfers.
12. Savings Bonds:
The City offers to its employees the payroll deduction plan for the
purchase of Savings Bonds. The Bank must have the capability of
preparing from computer printouts provided by the City,
approximately 50 Savings Bonds every two weeks. Once completed,
these bonds will be mailed, by the Bank, directly to the employees'
home addresses.
13. Mailing - Municipal Bonds:
The City Finance Director serves as Registrar for City of Clearwater
issued bonds. The Bank receiving the contract for the City's banking
services will be required to mail the registered or bearer bonds to the
proper owners under the Bank's insurance coverage, approximately 6
times per year. The average value of each mailing is between $5,000
and $50,000.
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14. Debt Se rvice Cash Reserves:
In order to comply with Bond Covenents the City must have sufficient
investments on hand at all times to cover the Debt Service Reserves
for the City of Clearwater Bond issues, currently totalling $5,500,000.
The Bank receiving this contract must agree to monitor the total
amount of investments, and, should these investments fall below that
necessary for proper coverage, notify the City Attorney immediately.
The Bank will be notified by the City Finance Director when this
required reserve amount changes.
15. Overnight Repurchase Agreement Sweep Account:
At the close of each business day, all collected balances in City
accounts will be transferred to a special investment account, called a
Sweep Account.
The total collected balances will then be invested in a repurchase
agreement at the Bank, backed by U.S. Government securities.
The Bank must arrange for third party collateralization of U. S.
Government securites in the amount 0 f $6,000,000 to secure such
overnight repurchase agreements. Both the collateral securities and
the third party holder must be acceptable to the City. The collateral
agreement must clearly indicate that the securities represent collateral
for the overnight repurchase agreements, and may not be released
without the written consent of the City. Such consent will not be
unreasonably withheld, and it is understood that these securities will
be replaced from time to time as conditions warrant. The Bank agrees
to notify the City immediately in the event that the Market Value of
the collateral securities does not exceed 105% of the amount of the
overnight repurchase agreement. The City will then either reduce the
amount of the repurchase agreement, or will arrange with the Bank to
provide additional collateral.
At the beginning of the next business day, all balances in the sweep
account shall be transferred back to the operating account, along with
the interest earned on the overnight (or over the weekend)
transaction. Daily written notification concerning interest earned will
be given to the City. In addition, monthly statements will be
forwarded with the City's regular bank statements, outlining the details
of sweep account earnings for the period.
All interest earnings will be computed in accordance with the
negotiated rate which was agreed to in the contract for banking
services. This negotiated rate shall be stated by prospective bidders
as a rate which bears a direct relationship to the "average daily Fed
Funds rate," as published in the Wall Street Journal. The rate bid by
the Bank will be quoted in decimal points, such as "the average daily
Fed Funds rate, minus .35%," (or 35 "basis points"), "the average daily
Fed Funds rate, plus .10%" etc. In no case will the City accept
another source for computation of the interest rate.
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16. Payment for Services:
All account charges will be itemized on a monthly basis, and remitted
to the City's Finance Department. Following the City's opportunity to
review the statement of charges the City will remit a check to the
Bank.
17. Designated Bank Contact Personnel:
The Bank shall provide a list of contact personnel within the Bank
who are qualified to provide information and assistance in the
following areas on a daily basis. Include position, length of service,
and summary of professional experience. Please attach listing to bid
response form.
a. General Information
b. Investments and Safekeeping
c. Lock Box Services
d. Bookkeeping
e. Line of Credit
f. Head Teller
g. Sweep Account
18. Re ferences:
In order to ensure that the Bank awarded the contract for the City's
Banking services is capable of handling the City's accounts, the Bank
must provide a list of names and addresses of business customers of
similar size and complexity to the City's organizational requirements.
In addition, each Bank must provide audited financial statements for
the last 3 years.
19. Written Contract:
The City will enter into a signed contractual agreement with the Bank
selected for a period of three years. This contract may be renewed
for an additional three years by mutual consent of both parties. The
language of the contract will incorporate the provisions of this RFP,
and the response presented by the successful bidder.
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CI1Y OF CLEARWATIR
BANKINJ SERVICES BID RESFONSE FDRV!
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B<\N{ NAME:
OFFICIAL SUBI1ITIINJ:
TI'ILE OF OFFICIAL:
TELE Pl--Kl'ffi NU\1BER:
Banki nil: Se rvi ce
Es t ima ted
!\Ionth ly
Activi ty
1. Account Maintenance
3
2. Account Reconciliation
Approx 4,000 items
3. Items Paid
5,300
4. Items Depos i ted 31,000
5. Coin sorting and counting $150,000
6. Lock Box Service (lXR Scanned) 30,000
7. Stop Payments 10
8. Wire Transfers 4
9. Investmant Transact ions 15
10. Safety Depos i t Box 1
11. Returned Items 70
12. Other services:
mrAL ESTIMATED MJNlliLY FEES
Other Quotations:
Rate Quotation on Line of Credit:
Unit
Price
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Rate Quotation on Sweep Account:
Type of Collateral Securities Proposed:
'TIlird Party Holder for Colla teral Securi ties:.
Statement of Capability:
Our Bank can cOOI>ly wi th all
requiremants. (Yes or No)
page.)
M:mthly
Cost
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
aspects of the City's Banking Service
(If no, list all exceptions on separate
$ 7.50 $ 22.50
$ .06 $ 240.00
$ .10 $ 530.00
$ .05 $ 1,550.00
$1.00 per $ 1,500.00
$100.00
$ .06 $ 1,800.00
$ 10.00 $ 100.00
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BANlON::; SERVICES BID RESFONSE R"".I
BJrnett Bank of Pinellas County I
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BAN';: NAt\IE:
OFFICIAL SL1MITTING:
E. J. Biagi
TITLE OF OFF ICL"L:
Senior Vice President
TELEl'H:NE NUllBER:
B13 539-9231
Banki ng S€!"Vi ce
Estimated
\bnthly
Activi ty
tmit
Price
1. Account Maintenance
3
2. Account Reconciliation
Approx 4,000 items
3. Items Paid
5,300
4. It ems Deposited 31 .000
5. Coin sorting and counting $150,000
6. Lock Box Service (CCR. Scanned) 30,000
7. Stop Payments 10
8. Wire Transfers 4
9 . Investrrent Transact ions 15
,10. Safety Deposit Box 1
11. Re tu rned It ems 70
12. Other services:
$ 8.00
$ n/c $
$ n/c $
1.00
$
$
$
$
TOrAL ESTI~IITID \rnrHLY FEES
Other Quotations:
Rate Quotation on Line of Credit:
See Attachment A
.25 below daily Federal Funds Rate
Rate Quotation on Sweep Account:
Type of Collateral Securities Proposed:
U. S. Government/Agencies
Third Party Holder for Collateral Securities;
Statement of CaDability:
Federa 1 Reserve
~ank or Atlanta
Jacksonville Branch
EXHIBIT B
\bnthly
Cost
$
32.00
$
70.00
$
$
$
~ 5,844.50
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Our Bank can comply '~th all aspects of the City's Banking Service
requirerrents. (Yes or No)"'Yes . (If no, list all exceptions on separate
page. )