Agenda - Council - 11/13/2012 - Laserfiche WebLink

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PROPOSAL FOR BANKING SERVICE BANDY FEWEST positions (monthly); firefighters (quarterly). Most payroll employee and employer contributions/withholdings are paid by electronic transfer. For the estimated proposed analysis statement that follows, we have used your estimate of approximately 220 items. In addition to the 220 items, we are including an additional 296 items to account for the utility payments that Opus 21 is processing on your behalf through Village Bank today. Denelle advised us that 2nd quarter billing had about 889 accounts, so we are taking the months average to provide you with a better idea of the costs. The ACH returns from the utility payments were divided out to average about 1.67 per month, or 5 a quarter for basis of the proposed analysis statement. 7. Misc. service charges — such as internet charges, daily sweep, monthly service charge, stop payments, etc. Please see proposed analysis statement to follow. Please note, we offer investment sweeps, however, do not recommend them as typically money market savings accounts will give you a higher rate of return and there is not a fee associated with having them. 8. Future Services — Electronic Accounts Payable Service The city is researching implementing an alternative ACH payment method for payment claims to the city. The possible implementation date may be as soon as January 1, 2013. Our financial institution should be able to accept a balanced upload file generated from our financial system to process ACH Transactions. The city issues payments two times per month plus processes immediate payments as needed (not more than two times per week). Pricing for ACH services is included below. Please see ACH per Item pricing to get an idea of what this would cost based upon how many of your vendors/suppliers would be interested in this. You will notice, it is much more cost effective than cutting a check. We do not accept balanced files, only unbalanced. We do not accept balanced files because this opens the bank and the City up to fraud. For example, the person sending the ACH file could "balance" the file by putting their personal account number on there, and then withdraw the funds. So, if you send an unbalanced file, the bank balances it with the account we have on file for you. Miscellaneous Information: The process for handling additional collateral is as follows: The rule for collateralization of public funds in Minnesota is that we set aside securities with a value of 110% of the funds on deposit not covered by FDIC insurance. The balance is checked daily in order to ensure compliance. Upon receipt of deposit, we will assign the appropriate amount of collateral and provide the City with a detailed list of the securities we're using, including CUSIP and market value. 25'Page