Laserfiche WebLink
F CcAs # <br /> <br />AWARD CONTRACT FOR BANKING SERVICES <br /> By: Diana Lund, Finance Officer <br /> <br />Background: <br /> <br />On Tuesday, October 13, 1998, the City Council authorized staffto solicit proposals for banking <br />services by distributing the "Request for Proposal - Banking Services" to the two local banking <br />institutions - Landmark Community Bank and Northland Security Bank. <br /> <br />The proposals for banking services were received and opened on Monday, October 26, 1998. <br />The proposals were then reviewed and the information contained in them was analyzed using <br />banking industry ratio trends, an evaluation matrix, and summary of service charges ~ the <br />evaluation matrix and summary of charges are attached. The matrix takes into consideration <br />industry trends as well as "non-statistical" trends. It is quite obvious from the matrix that either <br />bank could and would be able to meet the City's needs. <br /> <br />Landmark and Northland each provided the City with a proposal for banking services, which is <br />also enclosed. Upon examination of the proposal, either bank could provide the services <br />requested by the City. <br /> <br />Although the scoring was close, Northland Security Bank, ranked higher than Landmark on a <br />few issues which are as follows: <br /> <br />1) <br /> <br />Interest Rates - Northland will pay interest at a rate to yield 5.24% annually which is tied <br />to the monthly yield on the 4M Plus Fund. Landmark, who currently offers the City the <br />4M Plus Rate, will pay interest based on the 4M Fund, (5.12% annual yield) effective <br />January 1, 1999. <br /> <br />2) <br /> <br />Cutoff time for deposits - Northland will credit the City's account for any deposits <br />received until 6:00 P.M. Landmark's cutoff time is 2:00 P.M. The reason this is an <br />important issue is that often the City does not receive its mail until mid afternoon. Thus, <br />any large checks received could still be deposited and earn interest for that day. <br /> <br />3) <br /> <br />Wire Costs - The City has investments with several financial institutions and each <br />transaction for incoming wires (payment of principal and interest on held securities) and <br />outgoing wires (purchases of securities) results in a wire transaction. On average, the <br />City could perform 14 wires per month. Northland would waive all costs associated with <br />ingoing/outgoing wires, whereas, Landmark charges $5.00 for each wire. <br /> <br />4) Commitment to the Community and the City - This may seem like a minor detail, but <br /> it deserves attention. Northland made an all-out effort to submit the best proposal to the <br />City that they could. They reconstructed their former proposal of 1997 to better meet the needs <br />of the City, such as offering compounded interest on the available checking account balance and <br /> <br /> <br />