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Home My WebLink AboutCC 7 BANKING SVCS 02-16-93CONSENT CALENDAR NO. 7 -16-93 AGENDAz a -qs _�� C/L LATE: FEBRUARY 9 1993 I n t e r- C O m aU ,` l� � sT TO: WILLIAM A. HUSTON, CITY MANAGER FROM: RONALD A. NAULT, DIRECTOR OF FINANCE SUBJECT: AUTHORIZATION TO REQUEST PROPOSALS FOR BANKING SERVICES RECOMMENDATION: Approve the attached Request for Proposals (RFP) for Tustin Community Redevelopment Agency (RDA) banking services and direct the Finance Director to solicit proposals as recommended by the City of Tustin Audit Committee. DISCUSSION: During its annual review of the City's Investment Policy the Audit Committee established minimum standards for general deposits of the City and the Redevelopment Agency for checking and other working accounts. The Committee agreed that a minimum deposit rating of P -1/A or A -1/A as rated by Moody's or Standard and Poors would be required for the working accounts of the City and Agency. Based on this criteria, it was determined that it would be appropriate to request proposals for the Redevelopment Agency. The attached RFP was prepared and approved by the Audit Committee. It is anticipated that if approved and so directed by the City Council that staff would send out the requests, post notice, etc., with a three week period to respond. The Audit Committee will review all proposals and submit their recommendation for acceptance at a regular Council meeting. The implementation of the new agreement will commence at the earliest date that is logistically possible. Ronal A. Nault Director of Finance RAN: 1s Attachment a: bankrfp. rah 1- 2- 3" Dear 4 Finance Department City Of Tustin 15222 Del Amo Avenue Tustin, CA 92680 (714) 544-8890 FAX (714) 832-0825 The Tustin Community Redevelopment Agency is requesting proposals for Banking Services. Bids will be limited to those institutions with a branch office within the corporate boundaries of the City of Tustin. Qualified bidders must maintain a deposit rating of not less than P -1/A or A -1/A as rated by Moody' s or Standard and Poors . The term of the Agreement will be for three years beginning on or before April 1, 1993 through March 31,_1995. Proposals should be expensed as a per unit cost. The Agency would be interested in exploring a combination of compensating balances and unit costing as an alternative. Proposals should be returned to this office no later than 5:00 p.m. on 5" . Please enclose a copy of your most recent Financial Report. Sincerely, Ronald A. Nault Director of Finance RAN: 1s w proposat.ttr TUSTIN COMMUNITY REDEVELOPMENT AGENCY REQUEST FOR BANKING SERVICES PROPOSAL General Information 1. Please indicate your current capitalization level and provide the most current published Moody's and/or Standard and Poors rating for your institution. 2. The Agency wishes to implement a three year agreement that includes a fixed rate structure for each of the three years or as an alternative, increases tied to an agreeable index such as the Consumer Price Index (CPI). Please provide a proposal for both alternatives. 3. Where cost data is requested, please provide a unit service cost predicated on cash payment. You should also include any required service costs not covered in this proposal. 4. Please provide contract language required for the services included in your proposal. The attached proposal request is based on the Agency's prior banking practices where a minimal level of service is necessary to accomplish the Agency's banking needs. The Agency is receptive to _suggestions that are mutually cost effective. Suggestions to this effect should be included with your proposal. 01 TUSTIN COMMUNITY REDEVELOPMENT AGENCY REQUEST FOR BANKING SERVICES PROPOSAL Basic Service Levels Required on a Monthly Basis I. Checking Account Account Maintenance Items Paid 33 checks Items Deposited 15 checks (Very rarely is cash deposited) Encoded Unencoded Items Returned 2 Items Returned 3 Wire Transfer/Out 4 Wire Transfer/In 5 Stop Payments Other: Unit Minimm Cost Extension Cost Total Monthly cost (Include Minimum Where Applicable) E II. Wire Transfers Currently outgoing transfers are requested by phone supported by a written agreement which restricts authorization to transfer and the dollar amount that can be transferred. Please describe your institution's security systems to prevent unauthorized transfers. III. Securities Clearance/Safekeeping The Agency's investment portfolio includes U.S. Treasury Notes/Bills; Federal Agency Paper; Bankers Acceptances; Commercial Paper and other securities. You will be required to provide clearance, New York Corresponding bank arrangement, and safekeeping for approximately 10-15 securities with an approximate market value of $10-15 million. The Agency requires next day advice of any and all credits and debits to the safekeeping account along with monthly safekeeping reporting. Provide the unit cost for transactions as described. IV. Balance Reporting The Agency requires on-line access to account balances to determine general account activity only, collected fund balances and float. Provide monthly costs for this service and briefly describe the proposed system. V. Account Analysis The agency requires a monthly charges and activity balances. format you are purposing. Any analysis should be identified. VI. Payment for Service account analysis discussing all Please attach examples of the additional costs for account The Agency intends to pay for banking services with cash payments or expense deductions from our account provided payment is reduced by account earnings. Is the bank willing to accept a quarterly reconcilement where the cost of services in the previous quarter netted against account earnings for the same period? Is the institution willing to accept a fixed annual fee paid monthly, excluding securities clearance/ safekeeping cost billed separately? What would the proposed monthly fee be and what are proposed volume variances and costs if variances are exceeded? Are there any additional costs that have not been addressed in the request for proposal? Please explain in detail. 011 VII. Special Conditions and Intent of the Tustin Redevelopment Agency. A. The Agency reserves the right to reject any and all proposals. All proposals will be evaluated in terms of the needs of the Agency. B. Bank qualifications: Any institution submitting a proposal for banking services must have its headquarters and operations center in the State of California and a branch office within the corporate limits of the City of Tustin. They must have a recent deposit rating of P -1/A or A -1/A by Moody's or Standard and Poors respectively. The selected institution will be required to post collateral in compliance with Sections 53651-53678 of the California Government Code. C. The Agency intends to establish a three year agreement for banking services with the option to extend the agreement for an additional three years. The agreement may be terminated upon 90 days written notice of either party. D. Acceptance of proposal and award of a contract will be first based on the basic service needs of the Agency; all other services will then be considered. E. Proposals should be received by the Agency no later than the close of business on Friday, The Agency intends to select the successful institution on or before The actual date of implementation will be determined by the Agency and the institution by mutual agreement. F. For proposals to be responsive to this request all questions in the RFP must be answered. Failure to do so may eliminate the proposal from consideration. G. The Agency, at its' option, may interview the top candidates prior to making the final selection. w proposal.bnk 4