Agenda - Council - 09/13/2005 - Laserfiche WebLink

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FC CASE # AUTHORIZE REQUEST FOR PROPOSALS FOR BANKING SERVICES By: Diana Lund, Finance Officer Background: Banking services to the City of Ramsey are currently supplied through several institutions. These services include, but are not limited to, checking and market accounts, certificates of deposit, and other investment alternatives. ri'he City currently has its banking relationship with Bank of the West, one of three banks that are currently located within the City limits. ri'he City's checking account is through Bank of the West and is "swept" on a daily basis into an automatic investment account. Daily deposits are handled in the same manner as checking. The City is required to keep a minimum balance in a non-interest bearing checking account to cover service lbes associated with the account such as wires, ach, etc. The remaining balance is swept over into an automatic investment account and invested into securities on a daily basis. It should be noted that the non-interest bearing checking account to cover fees became effective when the Bank changed over to Bank of the West from Northland Securities. Previously, the City earned intcrcst earnings on all funds, and were charged no service fees. Thus, the current proposal that the (;it5, has with the bank says that the City will retain the services of said bank if no terms have changed. Because of the change in terms and additional banks located in the City, the City wishes to scek bank service proposals and offer the City's banking needs effective immediately after Council adoption. The proposed date would be November 1, 2005. in addition to the aforementioned accounts, the City maintains money market and jumbo certificates of deposits at Landmark Community Bank and First National Bank of Elk River. Bank. In an attempt to keep the banking activities local, staff has prepared the attached "Request for Proposal - Banking Services" to be submitted to Landmark Community Bank, NA, Bank of the West and Village Bank, all located in the City of Ramsey. Thc proposals for banking services would need to be returned to the Finance Officer by 4:30 f'.M. (m Friday, September 30, 2005. Banking services would commence on November 1, 2005.