HomeMy Public PortalAboutORD15012 BILL NO. 2012-63
SPONSORED BY COUNCILMAN Schulte
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH CENTRAL BANK OF
JEFFERSON CITY, MISSOURI, FOR BANKING SERVICES.
WHEREAS, Central Bank has become the apparent lowest and best offer for banking
services.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF
JEFFERSON, MISSOURI, AS FOLLOWS:
Section 1. The offer of Central Bank is declared to be the lowest and best offer
and is hereby accepted.
Section 2. The Mayor and City Clerk are hereby authorized to execute an
agreement with Central Bank for banking services.
Section 3. The agreement shall be substantially the same in form and content as
the agreement attached hereto as Exhibit A.
Section 4. This Ordinance shall be in full force and effect from and after the date of
its passage and approval.
Approved:
Presiding Officer�� Mayor
ATTEST: APPROVED AS TO FORM: —
City Clerk City Counselor
CITY OF JEFFERSON
CONTRACT FOR BANKING SERVICES
THIS CONTRACT, made and entered into this , day of September, 2012, by and between the City of
Jefferson,a municipal corporation of the State of Missouri,hereinafter referred to as the"City,"and Central
Bank, hereinafter referred to as the "Bank."
WITNESSETH:
THAT WHEREAS,the City desires to engage the Bank to render certain technical and consulting services
as to banking services; and
THAT WHEREAS, the Bank has made certain representations and statements to the City with respect
to the provision of such services and the City has accepted said proposal and is authorized by Ordinance
15-0 "2-of the City Council of the City of Jefferson, adopted `1 , 2012, to enter into a contract
with the Bank for the performance of services by the Bank.
NOW THEREFORE,for the considerations herein expressed,it is agreed by and between the City and the
Bank as follows:
1. Scone of Services.
The City agrees to engage the services of the Bank to perform the services hereinafter set forth herein and as
stated in the specification and bid proposal for banking services and in the Bank's proposal. Copies of the scope
of services are incorporated herein by reference. The Bank's entire proposal shall be referred to for any terms
not covered by this Contract.
2. Additions or Deletions to Services.
The City may add to Bank services or delete therefrom activities of a similar nature to those set forth in the
Bank's proposal,provided that the total cost of such work does not exceed the total cost allowance as specified
in paragraph 6 hereof. The Bank shall undertake such changed activities only upon the direction of the City.
All such directives and changes shall be in written form and approved by the Finance Director and shall be
accepted and countersigned by the Bank or its agreed representatives.
The Bank will perform any additional work requested by the City which is not specifically covered in the scope
of work as defined herein at a reasonable fee or compensation to be agreed to between the City and the Bank
at the time any such service may be required.
3. ExistinjZ Data.
All information,data and reports as are existing,available and necessary for the carrying out of the work,shall
be furnished to the Bank without charge by the City, and the City shall cooperate with the Bank in every
reasonable way in carrying out the scope of services.
d. Personnel to be Provided.
The Bank represents that the Bank has or will secure at its expense all personnel required to perform the
services called for under this contract by the Bank. Such personnel shall not be employees of the City or have
any contractual relationship with the City except as employees of the Bank. All of the services required
hereunder will be performed by the Bank or under the Bank's direct supervision and all personnel engaged in
the work shall be fully qualified and shall be authorized under state and local law to perform such services.
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None of the work or services covered by this contract shall be subcontracted without the written approval of
the City.
5. Term.
This contract shall commence on the first (1e1) day of October, 2012, and continue until the 30'h day of
September, 2017, unless terminated earlier as provided herein.
6. Compensation.
The City will pay the Bank for the services rendered according to the charges as set out in the Bank's proposal.
The City agrees to pay the Bank in accordance with the rates set forth in the Bank's proposal which shall
constitute full and complete compensation for the Bank's services hereunder.
7. Failure to Perform, Cancellation.
If, through any cause, the Bank shall fail to fulfill in a timely and proper manner its obligations under this
contract,or if the Bank shall violate any of the covenants,agreements,or stipulations of this contract,the City
shall thereupon have the right to terminate this contract by giving written notice to the Bank of such
termination and specifying the effective date thereof, at least five (5) days before the effective day of such
termination. The Bank or the City may terminate this contract upon ninety(90)days prior written notice. In
the event of termination,all finished or unfinished documents,data,studies,surveys,drawings,maps,models,
photographs, and reports or other materials prepared by the Bank under this contract shall, at the option of
the City,become its property,and the Bank shall be entitled to receive just and equitable compensation for any
satisfactory work completed on such documents and other materials.
Notwithstanding the above,the Bank shall not be relieved of liability to the City for damages sustained by the
City by virtue of any such breach of the contract by the Bank.
S. Assignment.
The Bank shall not assign any interest in this contract,and shall not transfer any interest in the same(whether
by assignment or novation),without prior written consent of the City thereto. Any such assignment is expressly
subject to all rights and remedies of the City under this agreement, including the right to change or delete
activities from the contract or to terminate the same as provided herein,and no such assignment shall require
the City to give any notice to any such assignee of any actions which the City may take under this agreement,
though the City will attempt to so notify any such assignee.
9. Confidentiality.
Any reports, data or similar information given to or prepared or assembled by the Bank under this Contract
which the City requests to be kept as confidential shall not be made available to any individual or organization
by the Bank without prior written approval of the City.
10. Nondiscrimination.
The Bank agrees in the performance of the contract not to discriminate on the grounds or because of race,creed,
color, national origin or ancestry, sex, religion, handicap, age or political affiliation, against any employee of
the Bank or applicant for employment and shall include as similar provision in all subcontracts let or awarded
hereunder.
11. Independent Contractor.
The Bank is an independent contractor and nothing contained herein shall constitute or designate the Bank
or any of its agents or employees as agents or employees of the City.
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12. Benefits not Available.
The Bank nor its agents or employees shall not be entitled to any of the benefits established for the employees
of the City nor be covered by the Workman's Compensation Program of the City.
13. Liability.
The parties mutually agree to the following:
(a) In no event shall the City be liable to the Bank for special,indirect or consequential damages,
except those caused by the City's negligence arising out of or in any way connected with a
breach of this contract. The maximum liability of the City shall be limited to the amount of
money to be paid or received by the City under this contract.
(b) The Bank shall indemnify and hold the City harmless from and against all claims,losses and
liabilities arising out of personal injuries,including death,and damage to property which are
caused by the acts,errors and omissions of the Bank for which they would be otherwise legally
liable, arising out of or in any way connected with this contract.
14. Nonsolicitation.
The Bank warrants that he has not employed or retained any company or person, other than a bona fide
employee working solely for the Bank, to solicit or secure this contract, and that he has not paid or agreed to
pay any company or person,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,in its discretion,to deduct from the contract price or consideration, or otherwise
recover the full amount of such fee, commission,percentage, brokerage fee, gifts, or contingent fee.
15. Books and Records.
The Bank shall maintain all books, documents, papers, accounting records, and other evidence pertaining to
costs incurred in connection with this Contract, and shall make such materials available at their respective
offices at all reasonable times during the Contract and for a period of three (3)years following completion of
the Contract.
16. Delays.
The Bank shall not be liable for delays resulting from causes beyond the reasonable control of the Bank; the
Bank has made no warranties, expressed or implied, which are not expressly set forth in this contract; and
under no circumstances will the Bank be liable for indirect or consequential damages.
17. Illegal Immigration.
Prior to commencement of the work:
a. Bank shall,by sworn affidavit and provision of documentation,affirm its enrollment and participation
in a federal work authorization program with respect to the employees working in connection with the
contracted services.
b. Bank shall sign an affidavit affirming that it does not knowingly employ any person who is an
unauthorized alien in connection with the contracted services.
C. If Bank is a sole proprietorship,partnership,or limited partnership,contractor shall provide proof of
citizenship or lawful presence of the owner prior to issuance of the Notice to Proceed.
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18. Notices.
All notices required or permitted hereunder and required to be in writing may be given by first class mail
addressed to the City of Jefferson,c/o Finance Director,at 320 East McCarty Street,Jefferson City,Missouri.
85101,and Central Bank,Government Division,238 Madison Street,Jefferson City, Missouri,85101. The date
and delivery of any notice shall be the date falling on the second full day after the day of mailing.
19_ Law to Govern.
This contract shall be governed by the laws of the State of Missouri as to both interpretation and performance.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year above first
written.
CITY OF JEFFERSON,MISSOURI CENTRAL BANK
Mayor Title: e o e
ATTEST: ATTEST:
"ty Clerk
APPROVED AS FFORM:
City Counselor
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FINANCE DEPARTMENT
PURCHASING DIVISION
SUBJECT: Proposal 2621 - Banking Services
Finance Department Received July 17, 2012
PROPOSALS RECEIVED:
Central Bank, Jefferson City, MO as attached
U. S. Bank National Assoc. ND, Minneapolis, MN as attached
FISCAL NOTE:
Estimated interest based on $33 million less banking services cost will be $639,861.00 per year.
PAST PERFORMANCE:
Central Bank has held the banking services contract for a number of years. Staff feels the firm will
continue to perform services as specified.
RECOMMENDATION:
Staff recommends award to the best proposal as received from, Central Bank of Jefferson City,
Missouri. The agreement will be for a fixed interest rate of 2% on the investment of daily cash
balances. Banking service charges shall be as specified in the proposal and shall be on an as
used basis.
ATTACHMENTS - SUPPORTING DOCUMENTATION
Signature til`.jau
'Pur6asbb Agent Finance Director
MEMO
To: Mayor, City Council, and City Administrator
From: Steve Schlueter, Finance Director
Date: August 27, 2012
Re: RFP 2621 -Banking Services
For a number of years, the City has requested proposals from interested banking firms to
establish contracts for banking services. RFP 2621 was sent to 14 banking firms and published
in News Tribune on June 15, 2012. Two responses were received.
The four members of the evaluation committee are: Bill Betts, ITS Director, Gail Strope,
Human Resources Director, Terry Stephenson, Purchasing Agent, and Steve Schlueter, Finance
Director. The committee reviewed the two responses. The Central Bail, offer included a
response to all items in the request. The U. S. Bank National Association offer was for credit
card services only.
Under RFP 2621 Central Bank offered banking services based on interest income on $33
million at 2.00%, less the costs for services of approximately $20,138.41 for an annual Net
Earnings of$639,861.50 to the City.
The credit card portion of the RFP was evaluated separately. Both firms offered an
expanded program. Central Bank offered a 1.00% rebate on credit card purchases based on$1
million annual volume. The U.S. Bank Association proposal listed a rebate of.494%based on an
expanded program of$2.5 million volume annually. An additional .025% could be added if all
payments for all departments were made within 25 days during a twelve month period.
Federal funding clauses require that each responding firm be sent notification of a
recommendation for award with a protest period. The notification was sent on August 3, 2012
with a protest deadline of 5:00 p.m. August 24, 2012. The City did not receive a protest.
Central Bank responded to all items in the RFP and offered a fixed 2% interest rate on the
investment of daily cash balances. Central Bank offered a higher credit card rebate percentage
with a lower annual minimum volume requirement. It is the recommendation of the committee
to award to the best offer as received from Central Bank of Jefferson City, Missouri.
Proposal 2621
Banking Services
Received: July 17,2012 U.S.Bank National Assoc.ND Central Bank
Page 1 Minneapolis,MN Jefferson City,MO
Description Est Qty Unit Cost Total
Banking Service Depositories
Account Maintenance 120 o proposal $ 7.00 840,00
Checks Paid 6681 o proposal $ 0.09 601.29
ACH Transfers 29466 no proposal $ 0.05 $ 1,473.30
ACH Files Processed 63 no proposal $ - -
ACH Returns 64 no proposal $ 2.00 128.00
Deposited Items 70499 no proposal $ 0.07 $ 4,934.93 *1
Deposits 7978 no proposal $ 0.09 Is 718.02
Deposit Items Returned 136 no proposal $ 2.50 $ 340.00
Wire Transfers-Incoming 19 no proposal $ 7.00 $ 133.00
Wire Transfers-Outgoing 46 no proposal $ 7.00 $ 322.00
Coin Counting Parking/Transit 30377 no proposal $ 0.10 $ 3,037.70
Electronic Listing of Paid Items 24 no proposal $ - $ -
Paid Item Listing(Imaging) 9400 no proposal $ $ -
Deposit Item Listing(Imaging) 8900 no proposal $ - $ -
Positive Pay 6681 no proposal $ 0.015 $ 100.22
Safe Deposit Box(small) no proposal $ - $ -
Zero Balance Accounts 2 no proposal $ - $ -
Electronic Balance&Transaction Reporting no proposal $ - $ -
Electronically Placed Stop Payments 12 no proposal $ 5.00 $ 60.00
Overnight Sweep Accounts no proposal $ - $ -
Credit Card Receipt Merchant Serv.(9) 500,000 no proposal note 2 $ 11,049.95 *2
Procurement Cards 50,000/mo See Exhibit I-no annual fee Prime+0% $ - *3
Investment Management Fees($30 million) no proposal 0.10% *4
Other Investment Charges no proposal
Programming Fees no proposal
P-card rebate 50,000/mo $ (3,600,00
Total See Exhibit I $ 20,138.41
Received, July 17,2012 U.S.Bank National Assoc.ND Central Bank
page 2 Minneapolis,MN Jefferson City,MO
Description Est Qty Unit Cost Total
Total Interest Income=$33 million 33,000,000 2.00% $ 660,000.00 *5
(Rate to be paid on overnight repurchase)
Less cost of services $ (20,138.41)
Net Earnings/cost $ 639,861.59
Disadvantaged Business Utilization not completed completed
E-Verify-Afidavit of Compliance signed/notary included
E-Verify MOU included included
Notes
(1)edeposit/paper deposit .09 $ 6,344.91
(2)applied to 2011 activity varies $11A49.95
(3)charged only on bal carried over bank does not expect
(4)based on annual volumes,increases w/useage volume
(5) Fixed rate 2.00%on bal up to$33 mil.over$33=either 91
day T-bill rte or investment manage.Fee of 10 bps
(6)second credit card option for a/p system
Received: July 17,2012 U.S. Bank National Assoc.ND Central Bank
page 3 Minneapolis,MN Jefferson City,MO
Description Est Qty Unit Cost I Total
P. Purchasing Card System o replace paper a/p checks To replace paper a/p checks to increase rebate amount.
(purchsing,travel and fleet)
A/P becomes p card-"automates a.p.
Annual Card Fee waived
Global EMV Card $10/per act for foreign spend
Rewards Program Annual fee $80
Note:per Act,per card?
Deliquency Fees
assesed entire past due 1.0%(Min.$2.00)
ea.Subsequent cycle on entire
past due amt 2.5%(Min.$2.00]
Interest Charges no fee
Cash Advance 2.5%(Min.$2.00)
Convenience check Fee 2.5°%(Min.$2.00)
Convenience Check Stop Pmt. $15.00
Convenience Check Copy Fee $5.00
Returned Convenience Check Fee $15.00
Statement Copy $5.00 per addtl stmt.
Draft/Receipt Copy $5.00 per draft
Replacement Card Fee waived
Expedited Delivery Fee $20.00 per shipmnet
Non Sufficient funds Fee $15.00
Foreign Currency Fee 2.5%per transaction
Benefits
Travel Acident Ins.$250,000 no fee
Auto Rent. Ins. No fee
MC Liability Ins.$100,000 coverate no fee MC liability 0 unauthoriz. Fraud cards no fee
Lost Luggage Mas 1,250. NTE
common carrier reimburse. No fee
Received; July 17,2012 U.S, Bank National Assoc.ND Central Bank
page 4 Minneapolis,MN Jefferson City,MO
Description Est Qty Unit Cost Total
Other
Implem.&Training no fee
Access Online no fee
Custom Mapping Custom Mapping Fee based on scope
Logo embossing Feed Logo embossing Feed Fee Waived
Customized Plastic Customized Plastic
Quantity of less than 3,000 cards Less than 3,000 cards $1,500.00
Quantity of more than 3,000 cards More than 3,000 cards $5,000.00
Card Volume Rebate
Based on$2.5 mil An/$300/trans 0.994% Based on mo.Volume of$53,000 0.60% current$3,600.00/yr
Based on an.Volume of 1 mil 1.00%or$10,000.00/yr
Speed of Payment Incentive Annual based on entire city program,
turn around of 25 days on$2.6mil 0.025%