HomeMy WebLinkAbout121-01 RESOLUTIONr
RESOLUTION NO. 121-01
A RESOLUTION TO ACCEPT A PROPOSAL AND
ENTER INTO A CONTRACT WITH ARVEST BANK
TO PROVIDE BANKING SERVICES FOR THE CITY
OF FAYETTEVILLE, ARKANSAS
WHEREAS, the City of Fayetteville solicited proposals from several
qualified banking institutions to provide primary banking services for the City
and selected Arvest Bank as the best provider.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby agrees to enter into a Contract for banking services with Arvest Bank of
One McIlroy Plaza, Fayetteville, Arkansas (attached as Exhibit "A") and
authorizes Mayor Dan Coody to sign said contract.
PASSED and APPROVED this the 4w day of September, 2001.
or
J,
ATTEST:'
By:
Bather Woodruff, CityJerk
APPROVED:
By: �& &2
DAN COODY,y r
0 0
NAME OF FILE: Resolution No. 12 1 -01
CROSS REFERENCE:
09/04/01 Resolution No. 121-01
09/04/01 Contract with Arvest Bank of the City of Fayetteville, Arkansas
08/13/01 Departmental Correspondence to Mayor Dan Coody and City Council
from Ted Webber, Administrative Services Director, regarding contract
with Arvest Bank
General banking services furnished by Arvest Bank
09/04/01 Staff Review Form
09/13/01 Departmental Memo to Marsha Farthing, Accounting Division, from
Heather Woodruff, City Clerk
NOTES:
0
• Res. 121-01
CONTRACT ORIGINAL
THIS CONTRACT, made and entered into the day of 2001, by and between
the City of Fayetteville, Arkansas, Party of the First Part, hereinafter termed "CITY" and Arvest
Bank of the City of Fayetteville, Arkansas, Party of the Second Part, hereinafter termed the "BANK",
WITNESSETH.-
SECTION
ITNESSETH:
SECTION 1. BASIC SERVICES: The CITY hereby engages the BANK to provide
certain banking services for the CITY'S operating funds. The BANK shall furnish and supervise all
necessary personnel, materials, equipment, and any and all other items necessary for the conduct of
these services. The banking services shall be accomplished in accordance with the terms and
conditions as stated in the the CITY'S RFP specifications, and printed or written explanatory matter
thereof, the BANK'S Proposal (as accepted by the CITY) and this Agreement, all of which are
hereby made a part thereof and collectively evident and constitute the entire agreement. In case of
any conflict between the CITY'S RFP, the BANK'S Proposal (Appendix A) and this Agreement,
the order of procedure shall be 1) Agreement, 2) CITY'S RFP, and 3) BANK'S Proposal.
SECTION 2, CONTRACT PERIOD: This Contract shall be in effect from the date of
execution until August 31, 2002, provided, however, that this Contract may at the option of the
CITY, be extended for four additional one year terms by annual action of the City Council.
SECTION 3. QUALITY OF WORK: All material, workmanship and equipment shall be
subject to the inspection and approval of the CITY. All work or service unsatisfactorily performed
shall be promptly corrected and made acceptable to the CITY using standard acceptable banking
practices.
SECTION 4. CONTRACT CHANGES: Occasionally, during the course of the contract
period, it may become necessary to effect certain changes and/or modifications in the contract. All
such changes shall be justified in writing by the party desiring the change and forwarded to the other
party. All such changes will be negotiated by the parties hereto and shall not be effective until
accepted in writing by both the BANK and the CITY.
SECTION 5, THIRD PARTY CONTRACTS: Unless otherwise authorized in writing by
the CITY, the BANK shall not assign this contract, or execute any contract, amendment or change
order thereto, or obligate itself in any manner with any third party with respect to its rights and
responsibilities under this contract.
OR
SECTION 6. TERMINATION:
• Res. 121-01
ORMINAL
a. Termination for Convenience. The CITY or BANK may terminate this contract, in
whole or in part, at any time by ninety (90) days written notice to the other party. If
the BANK has any property, reports or materials in its possession belonging to the
CITY, the BANK will account for the same, and surrender to the CITY or dispose
of it in such a manner as the CITY directs.
b. Termination for Default. If the BANK fails to comply with any provisions of the
contract including, but not limited to, the timely performance, the CITY may
terminate this contract for default. Termination shall be effected by serving a notice
of termination on the BANK, setting forth the manner in which the BANK is in
default. The BANK will only be paid for services performed in accordance with the
manner of performance set forth in this contract. If it is later determined by the CITY
that the BANK had an excusable reason for not performing, such as a strike, fire or
flood, events which are not the fault of, or are beyond the control of the BANK, the
CITY may allow the BANK to continue work or treat the termination as a
termination for convenience.
C. Mutual Agreement. By mutual agreement and consent of the parties thereto, this
contract may be terminated with ninety (90) days written notice.
d. Contract Expiration. Upon expiration of the contract period, however, the term of
the contract may be extended by mutual consent of the parties hereto.
SECTION 7. GOVERNING RULE AND REGULATIONS. The BANK will comply
with all federal, state and local laws, statutes, ordinances, rules and regulations, and the order and
decrees of any court or administrative bodies or tribunals in any nature affecting the performance of
this contract, including without limitation, banking law and regulations, workers' compensation
laws, minimum and maximum salary and wage statues. When required, the BANK shall furnish the
CITY with satisfactory proof of its compliance therewith.
SECTION 8. COVENANT AGAINST CONTINGENT FEES. The BANK warrants that
it has not employed or retained any company or persons, other than a bona fide employee working
solely for the BANK, to solicit or secure this contract, and that it has not paid or agreed to pay any
company or persons, other than a bona fide employee working solely for the BANK, any fee,
commission, percentage, brokerage fee, gifts, or any other consideration, contingent upon or
resulting from the award or making of this contract. For breach or violation of this warranty, the
CITY shall have the right to annul this contract without liability, or at its discretion, to deduct from
the contract price or consideration, or otherwise recover, the full amount of such fee, commission,
percentage, brokerage fee, gift or contingent fee.
MOM
• • Res. 121-01
OWNAIAI
SECTION 9. COVENANT AGAINST GRATUITIES. The BANK warrants that no
person or selling agency has offered or given gratuities (in the form of entertainment, gifts or
otherwise) to any official or employee of the CITY with a view toward securing favorable treatment
in the awarding, amending or evaluation performance of the contract.
SECTION 10. EQUAL EMPLOYMENT OPPORTUNITY. In connection with the
execution of this contract, the BANK shall comply with EEOC rules and regulations.
SECTION 11, HOLD HARMLESS CLAUSE. The BANK shall save harmless the CITY
from all claims and liabilities due to its negligent acts or omissions or the negligent acts or omissions
of its agents or employees.
SECTION 12. INSURANCE. The BANK shall take out and maintain, during the period
of work contemplated under this agreement, such workers' compensation, public liability property
damage and professional liability insurance as shall protect the BANK performing work covered by
this agreement.
SECTION 13. INDEPENDENT CONTRACTOR. The BANK will perform the duties
of an independent contractor and not as an agent or employee of the CITY.
SECTION 14. COLLATERAL AGREEMENT. The BANK agrees to collateralize all
CITY deposits, in excess of FDIC Insurance, at the rate of 102% and to honor all other provisions
of the existing collateral agreement.
SECTION 15. PAYMENT OF FEES. Fees will be paid monthly based on an analysis of
the account volumes and services rendered. A statement of analysis will be furnished to the CITY
by the 15ih of each month for the previous month.
SECTION 16. AGENT FOR SERVICE. The agent for service relative to all matters
pertaining to this contract and delivery of project products shall be as follows:
a. For the CITY
Ted H. Webber, Administrative Services Director
City of Fayetteville, Arkansas
113 West Mountain
Fayetteville, AR 72701
Page 3
b. For the BANK
Michael Wingo, Vice President
Commercial Services
Arvest Bank
One McIlroy Plaza
Fayetteville, AR 72701
0
• Res. 121-01
ORIGINAL
IN WITNESS WHEREOF, THE PARTIES TO THESE PRESENTS HAVE EXECUTED
THIS AGREEMENT, CONSISTING OF 16 SECTIONS AND FOUR TYPEWRITTEN PAGES,
IN THE YEAR AND DAY FIRST ABOVE WRITTEN.
CITY OF FAYETTEVILLE, ARKANSAS
PARTY OF THE FIRST PART
By:
. A�IA ( _X4 � -
Dan Coody, Mayor
COQ"'
m
ARVEST BANK
PARTY OF THE SECOND PART
ATTEST:
By:
MICHAEL WINGO
NOTARY PUBL "' '-ARKANSAS
WASHINGT; : Col ]MTV
RESOLUTION NO.
A RESOLUTION TO ACCEPT A PROPOSAL AND
ENTER INTO A CONTRACT WITH ARVEST BANK
TO PROVIDE BANKING SERVICES FOR THE CITY
OF FAYETTEVILLE, ARKANSAS
WHEREAS, the City of Fayetteville solicited proposals from several
qualified banking institutions to provide primary banking services for the City
and selected Arvest Bank as the best provider.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby agrees to enter into a Contract for banking services with Arvest Bank of
One McIlroy Plaza, Fayetteville, Arkansas (attached as Exhibit "A") and
authorizes Mayor Dan Coody to sign said contract.
PASSED and APPROVED this the day of September, 2001.
ATTEST:
By:
Heather Woodruff, City Clerk
APPROVED:
By:
DAN COODY, Mayor
LJ
CONTRACT
THIS CONTRACT, made and entered into the day of August 2001, by and between
the City of Fayetteville, Arkansas, Party of the First Part, hereinafter termed "CITY" and Arvest
Bank of the City ofFayetteville, Arkansas. Party of the Second Part, hereinafter termed the `BANK",
WITNESSETH:
, SECTION 1. BASIC SERVICES: The CITY hereby engages the BANK to provide
certain banking services for the CITY'S operating funds. The BANK shall furnish and supervise all
necessary personnel, materials, equipment, and any and all other items necessary for the conduct of
these services. The banking services shall be accomplished in accordance with the terms and
conditions as stated in the the CITY'S RFP specifications, and printed or written explanatory matter
thereof, the BANK'S Proposal (as accepted by the CITY) and this Agreement, all of which are
hereby made a part thereof and collectively evident and constitute the entire agreement. In case of
any conflict between the CITY'S RFP, the BANK'S Proposal (Appendix A) and this Agreement,
the order of procedure shall be 1) Agreement, 2) CITY'S RFP, and 3) BANK'S Proposal.
SECTION 2. CONTRACT PERIOD: This Contract shall be in effect from the date of
execution until August 31, 2002, provided, however, that this Contract may at the option of the
CITY, be extended for four additional one year terms by annual action of the City Council.
SECTION 3. QUALITY OF WORK: All material, workmanship and equipment shall be
subject to the inspection and approval of the CITY. All work or service unsatisfactorily performed
shall be promptly corrected and made acceptable to the CITY using standard acceptable banking
practices.
SECTION 4. CONTRACT CHANGES: Occasionally, during the course of the contract
period, it may become necessary to effect certain changes and/or modifications in the contract. All
such changes shall be justified in writing by the parry desiring the change and forwarded to the other
party. All such changes will be negotiated by the parties hereto and shall not be effective until
accepted in writing by both the BANK and the CITY.
SECTION 5. THIRD PARTY CONTRACTS: Unless otherwise authorized in writing by
the CITY, the BANK shall not assign this contract, or execute any contract, amendment or change
order thereto, or obligate itself in any manner with any third party with respect to its rights and
responsibilities under this contract.
Page 1
SECTION 6. TERMINATION:
a. Termination for Convenience. The CITY or BANK may terminate this contract, in
whole or in part, at any time by ninety (90) days written notice to the other party. If
the BANK has any property, reports or materials in its possession belonging to the
CITY, the BANK will account for the same, and surrender to the CITY or dispose
of it in such a manner as the CITY directs.
b. Termination for Default. If the BANK fails to comply with any provisions of the
contract including, but not limited to, the timely performance, the CITY may
terminate this contract for default. Termination shall be effected by serving a notice
of termination on the BANK, setting forth the manner in which the BANK is in
default. The BANK will only be paid for services performed in accordance with the
manner of performance set forth in this contract. If it is later determined by the CITY
that the BANK had an excusable reason for not performing, such as a strike, fire or
flood, events which are not the fault of, or are beyond the control of the BANK, the
CITY may allow the BANK to continue work or treat the termination as a
termination for convenience.
C. Mutual Aereement. By mutual agreement and consent of the parties thereto, this
contract may be terminated with ninety (90) days written notice.
d. Contract Expiration. Upon expiration of the contract period, however, the tears of
the contract may be extended by mutual consent of the parties hereto.
SECTION 7. GOVERNING RULE AND REGULATIONS. The BANK will comply
with all federal, state and local laws, statutes, ordinances, rules and regulations, and the order and
decrees of any court or administrative bodies or tribunals in any nature affecting the performance of
this contract, including without limitation, banking law and regulations, workers' compensation
laws, minimum and maximum salary and wage statues. When required, the BANK shall famish the
CITY with satisfactory proof of its compliance therewith.
SECTION 8. COVENANT AGAINST CONTINGENT FEES. The BANK warrants that
it has not employed or retained any company or persons, other than a bona fide employee working
solely for the BANK, to solicit or secure this contract, and that it has not paid or agreed to pay any
company or persons, other than a bona fide employee working solely for the BANK, any fee,
commission, percentage, brokerage fee, gifts, or any other consideration, contingent upon or
resulting from the award or making of this contract. For breach or violation of this warranty, the
CITY shall have the right to annul this contract without liability, or at its discretion, to deduct from
the contract price or consideration, or otherwise recover, the full amount of such fee, commission,
percentage, brokerage fee, gift or contingent fee.
!O:
0 0
•SECTION 9. COVENANT AGAINST GRATUITIES. The BANK warrants that no
person or selling agency has offered or given gratuities (in the form of entertainment, gifts or
otherwise) to any official or employee of the CITY with a view toward securing favorable treatment
in the awarding, amending or evaluation performance of the contract.
SECTION 10. EQUAL EMPLOYMENT OPPORTUNITY. In connection with the
execution of this contract, the BANK shall comply with EEOC rules and regulations.
, SECTION 11. HOLD HARMLESS CLAUSE. The BANK shall save harmless the CITY
from all claims and liabilities due to its negligent acts or omissions or the negligent acts or omissions
of its agents or employees.
SECTION 12. INSURANCE. The BANK shall take out and maintain, during the period
of work comtemplated under this agreement, such workers' compensation, public liability property
damage and professional liability insurance as shall protect the BANK performing work covered by
this agreement.
SECTION
13.
INDEPENDENT
CONTRACTOR,
The BANK will
perform the duties
of an independent contractor and not as an
agent or employee
of the CITY.
SECTION 14. COLLATERAL AGREEMENT. The BANK agrees to collateralize all
CITY deposits, in excess of FDIC Insurance, at the rate of 102% and to honor all other provisions
of the existing collateral agreement.
SECTION 15, PAYMENT OF FEES. Fees will be paid monthly based on an analysis of
the account volumes and services rendered. A statement of analysis will be furnished to the CITY
by the 15`s of each month for the previous month.
SECTION 16. AGENT FOR SERVICE. The agent for service relative to all matters
pertaining to this contract and delivery of project products shall be as follows:
a. For the CITY
Ted H. Webber, Administrative Services Director
City of Fayetteville, Arkansas
113 West Mountain
Fayetteville, AR 72701
Page 3
b. For the BANK
Michael Wingo, Vice President
Commercial Services
Arvest Bank
One McIlroy Plaza
Fayetteville, AR 72701
IN WITNESS WHEREOF, THE PARTIES TO THESE PRESENTS HAVE EXECUTED
THIS AGREEMENT, CONSISTING OF 16 SECTIONS AND FOUR TYPEWRITTEN PAGES,
IN THE YEAR AND DAY FIRST ABOVE WRITTEN.
CITY OF FAYETTEVILLE, ARKANSAS
PARTY OF THE FIRST PART
By:
Dan Coody, Mayor
ATTEST:
am
ARVEST BANK
PARTY OF THE SECOND PART
Lom
ATTEST:
By:
MICHAEL WINGO
NOTARY PUBI', - ARKANSAS
WASHINGT; : COUNTY
FAYETTEVIPLE 0
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: Mayor Dan Coody and City Council
From: Ted Webber, Administrative Services Direct
Date: August 13, 2001
Subject: Contract with Arvest Bank
Background
The City of Fayetteville solicited proposals from qualified banking institutions in June 2001, to
provide primary banking services for the City. The three banks that returned proposals were
Bank of America, Bank of Arkansas, and Arvest Bank. Arvest was chosen by the selection
committee.
Recommendation
Staff is requesting City Council's approval of a contract with Arvest Bank to provide primary
banking services for the City. The contract is for a one year period, renewable for four additional
years by annual action of the council.
•ARVEST
M
MBank ..
Appendix A
Checks Posted.......................................... $0.14
Deposits Posted....................................... 0.15
Deposit Items Posted
a. "On-Us" items ........................... 0.06
b. Clearing House Items.. ............. 0.10
c. Electronic Items........................ 0.10
Cash Deposited....................................... 0.15
Coin Counting and Bagging........................ N/C
Stop Payments / Domestic Wires.................. 7.50
ACH Items on other Banks........................ 0.10
Account Maintenance................................. 8.00
Additional Bank Bags................................. N/C
Deposit Slips.......................................... N/C
Returned Items....................................... 4.00
Rate Information
following rate indexes apply only to those accounts which the city would rather be billed
services used, and earn a rate of interest on the entire investable balance. The rates are
.rmined as follows:
Balance
$0 --
24,999
IBC 7 Day simple
Minus
Yield (Donahue)
175 Basis Points
$25,000
-- $99,9999
Minus
150 Basis Points
$1001000
-- $499,999
Minus
125 Basis Points
Above
$500,000
Minus
100 Basis Points
the end of each day, the average investable balance in the account accrues interest at the rate
rich corresponds to the proper tier. This accrued interest is credited to the account at the end of
ch month less any service charge which may apply.
P.O. Box 1327 • Fayetteville, AR 72702 (501) 575.1000
www.mbt.arvest.com
A NEST • •
Afunilyof banks.
Awodd of possibil fim
II. SERVICES TO BE PERFORMED
A. Required Services:
1. Deposit Services
All Arvest branches will provide same day ledger balances for deposits received before
5:00 p.m. CST.
2. Electronic Payment / Deposit Services
Arvest has the systems and the capacity within those systems to handle all of the
expressed deposit and investment needs of the city. We are a fully functioning ACH
originating and receiving bank. Through our cash management service, all wires both
incoming and outgoing will be posted and made available to the customer on the same
business day. We also have a fax back service. A fax is sent to a designated location
notifying your office of any wires the same day they are received.
3. Direct Deposit Services
As a fully functioning ACH originator, we are capable of processing balanced NACHA
formatted files. This process starts with a certification process through which our
corporate services team assists your office so that a deliverable file is generated. The
method of file delivery will be through a phone transmission to our processing facility at
Lowell, AR.
4. Counting and Depositing Parking Meter Coins
Our vault is equipped with fully functioning coin and currency counters. The processing
and depositing of all coins delivered to the vault will be deposited on the same business
day. The deposit will be listed on the statement as well as an imaged copy of the actual
item.
5. Checks / Deposit Slips
As a standard practice, Arvest does prefer a trail run of proposed checks. The process
requires a representative sample batch of check stock so that they may be run through our
reader/sorter. This will ensure the items can be read and the images meet our minimum
standard of clarity. Under this agreement, we will furnish deposit slips for the City.
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6. Paver Bank Drafts
Arvest will continue the process already in place for processing the paper drafts the City
currently employs. It is our understanding that an ACH module for the water/sewer
billing is being researched at this time, and our expertise may be needed in this area. We
will provide the City any help the we reasonably can in order to expedite this project.
This includes but is not limited to the certification of test files sent to our processing
center.
7. Credit Card Services
Arvest is also a fully functioning credit card processor and issuer. Any normal needs the
City has regarding the processing of cards, and or the need for its own credit cards,
should not pose a problem.
8. Detailed Account Information
Any debit or credit initiated by the bank will have supporting information. This
documentation is retrievable the next business day after the transaction has posted. Our
imaging capabilities enable us to provide these items in timely manner and may even be
emailed or faxed to a designated address or location.
9. Monthly Statements
It is preferred that we provided the City with a monthly statement in the form of a CD -
Rom. This will enable for the ease of sorting, storage, and all general research which may
be necessary. Each CD will contain the software required to view the items and the
statement. The CD is labeled with the name of the month and customer's name. It is
probable that all of the cities accounts will be contained on one CD.
10. Resource Personnel
Arvest has the staff to handle any need, which the City may have with regard to all
aspects of our relationship. We have a fully staffed customer service area that already
works with City personnel on existing accounts. This type of service will be available on
any service which you may employ from our list of services. We have also begun the
process of forming a corporate services call center which is staffed with trained experts
on specific area such as ACH origination, cash management, remittance processing,
reconciliation, and positive pay.
9
11. Access to Records and Cooperation
0
Arvest will cooperate fully with all legal inquiries and make available all records
pertaining to the City's relationship.
12. New Accounts
Arvest will provide any additional accounts and services as needed.
13. Return Check Account
Our returned check procedures will accommodate the City's needs.
14. Optional Banking Services
As a commercial bank, Arvest has a fully staffed remittance processing team capable of
handling most processing needs. In order to determine exactly what type of processing
the City needs, we will need to establish processing criteria and protocol. A full proposal
in this area is the most common approach.
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CITY OF FAYETTEVILLE, ARKANSAS
REQUEST FOR PROPOSALS
FOR GENERAL BANKING SERVICES
RFP 01-06
JUNE 19 2001
INTRODUCTION
The City of Fayetteville, Arkansas, (City) is soliciting sealed proposals from qualified local
banking institutions (bank) to provide the City's primary general banking services with the
highest quality of service at the most reasonable cost, while maintaining sufficient liquidity
and protection of public funds.
The City anticipates maintaining approximately ten to fifteen demand deposit accounts,
including one pooled cash account for the majority of the City's operations and a separate
payroll account. The annual receipts and expenditures are estimated to be $86,800,000
and 86,300,000 respectively. Approximately 34,000 checks are expected to be processed
annually.
A non-exclusive banking services contract will be executed with the successful bidder
which will include, at a minimum, the pooled cash account and the payroll account. The
City reserves the right to maintain accounts at other banks. The City also requires a
Depository Agreement and a Collateral Agreement with any bank that holds City funds.
H. SERVICES TO BE PERFORMED
A. Required Services. (In addition to accepting deposits and processing checks and
other withdrawals. Please address each service in numerical order in proposal.)
Deposit Services
The bank shall give all deposits received by (5:00) p.m. credit as good
ledger balance funds for the same day. The bank shall similarly identify the
time and branch(es) where a final daily deposit(s) will be accepted.
2. Electronic Payment/ Deposit Services
The bank must have the capability to accommodate a wide range of
electronic payment and deposit services for investment purchases or sales
and other transactions with authorized institutions. Wire service credit and
debit notices must be mailed or faxed to the City's Accounting and Audit
Division on the same day of the transaction and be included in the monthly
statement.
3. Direct Deposit Services
The bank shall provide direct deposit services for employee payroll amounts
(currently approximately 600 employees) to elected accounts with
institutions which participate in the system for ACH/direct deposit
transfers. The bank must be capable of accepting data transmissions via
telephone lines, tapes, diskettes, or EFT. The bank shall provide direct
deposit services for grant funds and other transactions from state and
federal programs received by the City.
4. Counting and DepositingParking Meter Coins
Bank shall provide coin counting and bagging services for parking meter
collections. Coins will be delivered to the successful proposer in eight (8)
bags and or two (2) lock -boxes twice a month and average $8,000 per
month. The bank will count the coins separately for each bag or box and
will indicate on the deposit slip the amount deposited for each. All revenues
will be deposited to an account designated by the City and the deposit slip
will be provided to the City's Accounting and Audit Division.
5. Checks/Deposit Slips
The City does not require that the bank provide checks. The batik will
cooperate with the City and the City's vendors to insure that checks meet
the bank's specifications. The bank will furnish encoded deposit slips to the
City as needed.
6. Paper Bank Drafts
The City Water Department currently uses paper drafts to direct draft
customer accounts for monthly water bills. The City currently drafts an
estimated 3,800 accounts monthly. The bank will need the ability to
process the paper drafts.
7. Credit Card Services
The City currently accepts credit cards for payment of services. The bank
must be able to provide an electronic payment system which will
accommodate credit card payments to the City in accordance with State
laws.
8. Detailed Account Information
The bank will provide to the City, detailed backup for any debits and
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credits, initiated by the bank, to the City's accounts.
9. Monthly Statements
Monthly statements for all accounts must be provided to the Accounting &
Audit Division, with documentation supporting all entries on the statement,
within five (5) business days after the last calendar day of each month.
Canceled checks shall be sorted in numerical order and returned in boxes
suitable for storage. The statements shall have checks listed in numerical
order with any breaks in the order noted.
10. Resource Personnel
The bank shall identify personnel in its operations department who are
available to answer questions pertaining to transactions which require more
detailed explanation.
11. Access to Records and Cooperation
The bank shall, upon authorization from the Administrative Services
Director, allow reasonable access to bank records by the City's Accounting
Manager, the City's independent auditors, and where state or federal
assistance is involved, to state and federal auditors, to examine records
relating to the use of City funds. The bank shall cooperate in any
prosecution for the misuse of checks and misappropriation of funds.
12. New Accounts
If the City develops a need for additional accounts or services during the
life of the Banking Services Agreement, those new accounts or services
shall be provided with the same conditions as apply to accounts existing at
the time. If the Federal Reserve, Depository Institutions Deregulation
Committee or other regulatory bodies provide for the establishment of new
accounts or other regulations which are favorable to the City, the bank shall
make those new services available to the City
13. Return Check Account
Deposit items returned for non -sufficient funds must be automatically
redeposited. If an item is returned a second time, it should be charged to
the City's Returned Check account and returned to a designated City
contact. The City processes approximately 1,800 return items per year.
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B. Optional Banking Services
In addition to the basic services described in the "Description of the System and
Services to be Performed," the City requests proposals for the following optional
services:
1. LOCK BOX COLLECTION
2. COURIER SERVICE
The Bank shall provide courier services to pick up deposits at the City
Administration Building at 113 West Mountain Street between 2:00 and 2:30 p.m.
each banking day. (This does not include coins from the parking system which are
addressed elsewhere in this document.) The courier will also deliver the prior
day's deposit slips, canceled checks and statements at the end of each month, and
other miscellaneous items. The City will be supplied with sufficient lock -able
deposit bags.
3. GROUP BENEFITS
The bank may propose additional services available to large employee groups.
These benefits could include, but not be limited to, group discounts on health
services, travel, telephone services, and insurance.
4. OTHER SERVICES
A proposer may, under separate cover, submit optional proposals for other services
that the proposer feels would be in the best interest of the City. Any optional
service proposal will be considered separately from the basic service proposal.
Each proposal is to be separate, so that each can be considered as a complete entity.
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III. COMPENSATION
A. General Information
Net Interest
0
A bank may agree to
provide
required
services
at no cost to the City and
bid
a net interest rate
that will
be paid
on daily
account balances.
2 Fee Based
A bank
may agree to charge
the City
fees for specified services and pay a
quoted
interest rate on daily
account
balances. (See Appendix A)
Bidders may also propose to provide additional services to the City at no
cost or for a specified fee. These additional services will be considered by
the City in the evaluation of the bids if their economic benefit can be
quantified.
IV. MINIMUM QUALIFICATIONS TO BID
A. Location Within the City Limits
A proposer must be a federally or State of Arkansas chartered banking institution
with banking facilities located within the City limits of the City of Fayetteville. If
the headquarters of the proposer is not located within the City limits, a branch bank
of the proposer located within the City must be able to offer the full range of
banking services, required by this RFP. Any question as to whether a proposer
meets this qualifying condition may be submitted to the Administrative Services
Director in writing prior to submission of a proposal.
B. Designated Depository
A proposer must be designated as a qualified depository for public funds pursuant
to Arkansas Code Annotated 19-8-105. Currently, depositories are not allowed to
receive deposits of public funds in excess of twenty-five percent (25%) of their
total general deposits, exclusive of public funds.
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C. Report of Capital and Surplus
A proposer shall have on file with the Administrative Services Director and the
City Council the affidavit of one of its officers of the amount of its capital stock
and surplus. The bank selected to perform banking services shall maintain a capital
structure equal to or greater than the amount of the City deposits.
D. Required Financial Information
Each proposer shall submit, with their proposal, copies of their quarterly call
reports for the past two (2) years and their annual financial reports for the past
three (3) years. These reports will be used by the City to determine the financial
strength of the proposer. The successful proposer shall, during the duration of this
contract, continue to furnish to the City updated issues of each report in a timely
manner.
V. BIDDING INSTRUCTIONS
1. Sealed proposals must be received no later than 5:00 P.M. on Jute 18, 2001.
2. Sealed proposals must be submitted or mailed to: Peggy Vice, Purchasing
Manager, Room 306, 113 West Mountain, Fayetteville, AR 72701.
3. Eight (8) copies of the proposal must be provided in the submission.
4. The sealed proposals should be clearly labeled RFP O1-06 on the outside of the
envelope.
5. All proposals submitted shall be binding for ninety (90) calendar days following the
above due date for receipt of proposals.
To facilitate
the clarification
of
requirements, proposers are requested, if possible, to submit
questions in
writing by June
11,
2001. Please submit your
questions to:
John Maguire
Administrative Services Director
City of Fayetteville
113 West Mountain
Fayetteville, Arkansas 72701
Telephone (501) 575-8330.
VI. RFP EVALUATION/SELECTION CRITERIA
The City will utilize the Professional Selection Policy & Procedure of the City (PUR-13)
to choose the selected firm(s). A copy of the professional selection policy and procedure
is attached for informational purposes.
The proposals will be reviewed by a committee consisting of representatives of the Mayor,
City Council, City staff, and community leaders. The selection committee will select the
most qualified firm for the job by grading the firms based on the following point structure:
(1) Availability of services (both basic and optional) within the RFP, completeness of
proposal and staff qualifications...............................20 %
(2) Financial Strength and capacity of the bank ......... ............ ..20%
(3) Proposed method (procedures, staff assigned, proximity, convenience) .... 10%
(4) Past record of performance, familiarity with similar businesses, references .. 30%
(5) Cost ................................................ 20%
Responsiveness to the criteria will be measured as follows:
A check will be made to ensure that a proposer is qualified under Arkansas Code
Annotated 19-8-105 as a designated depository; that the submitted proposal forms are
complete and that the required financial data has been attached. Financial strength and
capacity evaluation will be based upon the information contained in the annual financial
reports and call reports as required. Tests on these reports shall include but not be limited
to the following:
• Gross loans, as a percentage of total assets
• Loan loss reserves, as a percentage of gross loans
• Core deposits, as a percentage of total assets
• Borrowed funds, as a percentage of total assets
• Equity capital as a percentage of total assets
• Equity growth.
• Return on assets
• Equity growth in relation to asset and deposit growth
All proposals from qualified public depositories that pass the completeness test and
financial strength/capacity tests and provide a satisfactory service level will then be ranked
based upon past performance (or references) and then upon least total cost to the City.
Least total cost to the City is defined as the lowest combination of projected monthly
service costs, float factor, highest earnings factor specified in the bank's proposal and the
resulting compensation balance or direct fee basis.
The basic required service proposal will be evaluated separately from any optional service
proposal. Please make each proposal separate, so that each can be evaluated on its
individual completeness and cost criteria.
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Standard Terms and Conditions Relating to the City's RFP Process:
1. The City reserves the right to reject any or all proposals, the right in its sole
discretion to accept the proposal which it considers most favorable to the City's
interest, and the right to waive any minor irregularity or technicality in proposals
received.
2. Failure to observe any of the instructions or conditions in this Request for Proposal
may constitute grounds for rejection.
3. The City will not be liable for any costs incurred in the preparation of proposals.
4. The City reserves the right to request an interview with any proposer to determine
service capabilities in greater detail and to clarify any unclear areas in the proposal.
This may include a site visit to the proposer's facilities.
5. In the event the proposer to whom the contract is awarded does not execute a
contract within 45 days of such award, the City may give notice to such proposer
of intent to award the contract to the next ranked proposer, or to call for new
proposals.
6. By submitting a proposal, the proposer certifies that the appropriate bank officer
has read and fully understands this RFP and has full knowledge of the scope,
nature, quantity, and quality of work to be performed; the detailed requirements
of the services to be provided; and the conditions under which the services are to
be performed.
7. The City reserves the right to accept or reject any item or combination of items
within a proposal.
8. The City reserves the right to conduct pre -contract negotiations with any or all
proposers.
9. The proposer shall furnish such additional information as the City may reasonably
require. The City reserves the right to make investigations of the qualifications of
the proposer as it deems appropriate.
10. The City
reserves the right to invest
any or all funds
in accordance with applicable
statutes,
City ordinances, and bond
covenants.
11. This RFP contains an anticipated number of transactions. Although this is the
City's best estimate of expected volumes, the City cannot guarantee that such will
be the actual transaction volumes.
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12. All proposals
will
become the property of the City
of Fayetteville
when received
and, as such,
will
be subject to Arkansas' Freedom
of Information
Act.
VII. CONTRACT TERMS
Contract Period - The selected bank shall be designated as the City's primary bank
for an initial 1 year term. The banking services contract shall contain an automatic
renewal clause which may be used for the following 4 year(s) under the same terms
and conditions, thereby providing for 5 years of banking services.
Cancellation of Contract - The banking services contract shall provide that the
City reserves the right to cancel any agreement at any time upon 90 days prior
written notice of its intent to terminate any agreement. The designated depository
shall provide the City at least 90 days prior written notice of its intent to terminate
any agreement. A decision by the City to terminate the banking services contract
may not be as a result of an offering of a lower price from another bank during the
contract period.
E
John Maguire
Administrative Services Director
City of Fayetteville -
113 West Mountain Street
Fayetteville, AR 72701
Dear Mr. Maguire:
E
We have read the Banking Services 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 criteria and provide the required services shall be judged
solely by the Banking Services Selection Committee.
We have attached the following:
Call reports for the past two years.
Annual financial reports for the past three years.
We further certify that we have filed with the Administrative Services Director the affidavit
of one of our officers of the amount of this institution's capital stock and surplus in the manner
prescribed in Arkansas Code Annotated 19-8-105.
It is understood the above information will be used as evidence of our ability to meet the
capital structure requirements necessary to service this account.
It is further understood that all information included in, attached to, or required by this
Request for Proposal shall become public record upon their delivery to the Administrative Services
Director.
Submitted by:
Em
(Authorized Signature) (Title)
(Authorized Signature) (Title)
(Telephone)
(Date)
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Appendix A
We agree to furnish such required services to the Administrative Services D'irector's Office
with the following prices:
Checks Posted ............................
$
each
Deposits Posted ...........................
$
each
Deposit Items Posted
$
each
a. "Onus" items .....................
$
each
b. Clearing House items ................
$
each
c. Electronic items ....................
$
each
Cash Deposited ...........................
$
each
Coin Counting and Bagging ...................
$
per hundred
Stop Payments ............................
$
each
Wire Transfers
$
each
...........................
ACH Items on Other Banks
$
each
...................
Account Maintenance .......................
$
monthly
Additional Bank Bags:
12" x 15" Locking ....................
$
each
8" x 11" Locking .....................
$
each
6" x 11 1/2" Zippered ..................
$
each
Deposit slips ..............................
$ .
each
Returned items
$
each
............................
Other Costs:
Description Amount
1.
$
each
2.
$
each
3,
$
each
4.
$
each
0
STAFF REVIEW FORM
x AGENDA REQUEST
x CONTRACT REVIEW
GRANT REVIEW
ORDINANCE REVIEW
For the Fayetteville City Council meeting of
0
FROM:
Marsha Farthing Accounting Admin. Services
Name Division Department
ACTION REQUIRED: Approval of a resolution accepting a proposal from ARVEST
Bank to provide banking services for the City of Fayetteville for one year,
renewable for four years.
COST TO CITY: Estimated annual fees of $10,000 are expected to be offset
increased interest earnings.
Cost of this Request Category/Project Budget
Account Number
Project Number
Funds Used To Date
Remaining Balance
Category/Project Name
Program Name
Fund
BUDGET REVIEW: _ Budgeted Item Budget Adjustment Attached
CONTRACT
REVIEW:
:ative Services Dire
GRANTING AGENCY:
f
Accounting /Manager'j Date C.ADDA Coordinator Date
,: lJ /Gt/NW rte- 4q O t 1I) ( I �XJt g 5
City ttorney Date Internal &aditor Date
Purchasing Officer Date
STAFF RECOMMENDATION:
Staff recommends approval.
/S 61
Division Head I Date Cross Reference
New Item:
ment Director Date
/ A D/ Prev Ord/Res
strative Services Director Date
//7/1)/ Orig Contract Date:
Date
0 0
STAFF REVIEW FORM
x AGENDA REQUEST
x CONTRACT REVIEW
GRANT REVIEW 7 W ,_�L(/e
jl
`�
ORDINANCE REVIEW /
4
For the Fayetteville City Council meeting of
FROM:
Marsha Farthing Accounting Admin. Services
Name Division Department
ACTION REQUIRED: Approval of a resolution accepting a proposal from ARVEST
Bank to provide banking services for the City of Fayetteville for one year,
renewable for four years.
COST TO CITY: Estimated annual fees of $10,000 are expected to be offset by
increased interest earnings.
$0
Cost of this Request
Category/Project Budget
Category/Project Name
Account Number
Funds Used To Date
Program Name
Project Number
Remaining Balance
Fund
BUDGET REVIEW:
Budgeted Item
Budget Adjustment Attached
Budget Manager
Administrative
Services Director
CONTRACT/GRANT/LEASE
REVIEW: GRANTING AGENCY:
Accounting Manager
Date ADA Coordinator Date
City Attorney
Date Internal Auditor Date
Purchasing Officer
Date
STAFF RECOMMENDATION:
Staff recommends approval.
Division Head
Date
Cross Reference
New Item:
Department Director
Date
Prev Ord/Res #:
Administrative Services Director
Date
Orig Contract Date:
Mayor
Date
FAYETTEV&LE
THE CITY OF FAYETTEVIEEE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: Marsha Farthing, Accounting Division
From: Heather Woodruff, City Clerk
Date: September 13, 2001
Attached is a copy of Resolution No. 121-01 accepting a proposal and entering into a contract
with Arvest Bank. One original and a copy of the contract is being returned to you also. The
original will be microfilmed and filed with the City Clerk
cc: Nancy Smith, Internal Audit