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Home My WebLink AboutO-1998-2226 e e ORIGINAL ORDINANCE NO ....9lL- 2 2 2 6 AN ORDINANCE APPROVING AND AUTHORIZING A BANKING SERVICES AGREEMENT BETWEEN THE CIlY OF LA PORTE AND BAYSHORE NATIONAL BANK OF LA PORTE, FOR A THREE YEAR TERM, COMMENCING APRIL I, 1998, AND TERMINATING MARCH 31, 2001, PROVIDING FOR A TWO YEAR RENEWAL OPTION AND ON A MONTH TO MONTH BASIS THEREAFTER, MAKING VARIOUS FINDINGS AND PROVISION RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVlDlNG AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section I. The City Council hereby approves and authorizes the contract, agreement or other undertaking described in the title of this ordinance, in substantially the form shown in the document which is attached hereto and incorporated herein by this reference. The Mayor is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to aU such signatures and to affix the seal of the City to all such documents. Section 2: The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confinns such written notice and the contents and posting thereof. Section 3: This Ordinance shall be in effect from and after its passage and approval. PASSED and APPROVED this the 23rd day of March, 1998. Ci fLa Porte AmST. '-1 1J.)ihflv.J1"U:rl1 Martha Gillett, c:z.ty SeCJ1 ~D: .' ~,V~ Knox Askins, City Attorney e e THE STATE OF TEXAS COUNlY OF HARRIS BANKING SERVICES AGREEMENT (CC0)[P)'1! TIllS AGREEMENT, made and entered into this the 1st day of April, 1998, by and between the CITY OF LA PORTE, a municipal corpOration, hereinafter referred to as "City", and Bayshore National Bank, a Texas corporation, whose address is 1001 Hwy 146 South, La Porte, Texas hereinafter referred to as "Bank". WIT N E SSE T H: WHEREAS, the City has advertised for Proposals to provide banking seIVices to the City of La Porte as provided in RF.P. 0069, the request for proposals having been published in the La Porte Bayshore Sun, said Notice providing that proposals would be opened at 2:00 o'clock p.m. on the 17th day of February, 1998; and , WHEREAS Bank responded to such Notice to Offerors and indicated its willingness to provide banking services for the City of La Porte aCCQrding to infonnation in the proposal; and said Notice to Otferors and the proposal submitted by Bank are each specifically made a part of this Agreement; and WHEREAS Banks Proposal was selected to be the best responsible proposal; NOW THEREFORE, for and in consideration of the term, covenants, and conditions hereinafter set forth, the parties hereto agree as follows: 1. City hereby grants to Bank the right to pro"ide banking services to the City of La Porte. 2. Bank agrees to petform the above-stated banking services in complete confonnance with the guidelines ofRF.P. 0069, a copy of which is attached hereto, marked Exhibit" A" and by this reference incorporated herein and made a part of this agreement. 3. The term of this Agreement shall be from the 1st day of April, 1998, to and including the 31st day of March, 2001, with a two year option to renew, and on a month to month basis thereafter. ..t Bank and City agree to fully comply with the terms, conditions, and specifications contained in Exhibit" A", which is attached hereto and made a part hereof, except and to the extent that said terms, conditions or specifications are specifically modified in the body of this agreement. This agreement, together with the attached Exhibit "A", constitutes the entire agreement between the parties hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple copies on the date first appearing above. "CITY" CITY OF LA PORTE ~~/-- No L.~one,~yor "BANK" 1IItk )filM AP~:::Z '" "t'-f, . Knox Askins, City Attorney L Wright, Chief Executive Officer ::::~!fh;:c.tfi) (Corporate Seal) e e ((~ .~~ ;Q>'\Y7 ~3.'~LJ U CITY OF LA PORTE INTER-OFFICE MEMORANDUM TO: Bob Mclaughlin, City Councilman Alton Porter, City Councilman Howard Ebow, City Councilman Robert T. Herrera, City Manager FROM: ~ff lit~field, Director of FinancelACM DATE: - UMarch 12,1998 . RE: Request for Proposal for Banking Services The City of La Porte received Proposals for Banking Services on February 17, 1998. Requests were sent to the three local banks with all three responding. The selection and award process for a banking services agreement falls under the rules of a "Proposal" instead of a "Bid". With a Bid, the process is clear cut - you request a specific piece of equipment and submit specifications. A Bid is a very objective method because all vendors give prices on very similar equipment. In a Proposal, like a Bid, you receive a price for certain measurable units, but the "specifications" are subjective. With a professional service agreement, there are other factors besides price that you have to consider. In analyzing the proposals submitted by the three banks, there are three distinct areas that need to be reviewed which are: (1) Costs of the Proposal; (2) Financial Condition of the Bank; an~ (3) Services Provided by the Bank. Costs of the Proposal The costs of each proposal is the most objective of the three areas and will be reviewed first. The analysis of the costs proposed by each bank applied to the aggregate annual transactions of the City's three accounts, was prepared under separate cover and is attached for your reference. However, for the purposes of this discussion the ranking was: (1) (2) (3) Institution Bayshore National Bank Baytown State Bank NationsBank Annual Cost $ 9,790.20 12,782.58 12,947.70 .-----.... e ..........-- e . a ...______. (CCQ)~W l ( We considered the Income for Cumulative Accounts based on an average daily balance of $535,000. Assuming 5.17% is the 30 day average, the ranking was: (1) (2) (3) Institution Baytown State Bank Bayshore National Bank NationsBank Total Income $28,460.00 28,194.50 14,936.13 , Considering both Income and Expenses, and thus, the net impact to the City on an annual basis; the ranking was: (1) (2) (3) Institution Bayshore National Bank Baytown State Bank Nations Bank Net Impact $18,404.30 15,677.42 1,988.43 Financial Condition of the Bank We reviewed the financial information from each bank and, in our opinion, each bank is in sound financial condition and should be in business throughout the term of the proposed agreement Because we were comfortable making this decision, we did not request outside analytical assistance frcim anyone with expertise in the analysis .of banking institutions. Services Provided bv the Sank The provision of service is a subjective matter. Tne following three areas were reviewed relating to the level of service provided: (1) service to the City, (2) service to City employees, and (3) service to our Citizens. It is our opinion that each institution has the ability to provide satisfactory service in each of these areas. One respondent (Bay town State) does not have on-line Banking available at this time but plans to have it by the end of the year. Tney would also require an additional day of lead time for the Direct Deposit of employees paychecks. This could present somewhat of a hardship on our Payroll Department. Conclus ion In conclusion, it is our professional opinion that the City will receive a much better financial deal from Bayshore National Bank. Therefore, we are recommending that the contract for Banking Services be awarded to Bayshore National Bank, La Porte, Texas, for a three year period beginning April 1, 1998. Attachment: Detail of Analysis Income for Cumulative Accounts e e CITY OF LA PORTE ANALYSIS OF PROPOSAL FOR BANKING SERVICES Est Annual Quantity Total Income Interest (assuming 5.17% is 30 day avg and $535,000 avg bal) " Expense for Cumulative Accounts Items Deposited Encoded Items Deposited Unencoded Checks Paid Check Stock Returned Items Incoming Wires Outgoing Wires Account Inquiry Stop Payments Check Sorting Cost for Deposit Slip Stock Transaction (Bank) Tape Direct Deposit Account Maintenance Reconciliation Output Total Expenses 120,098 92 23,280 4,500 300 48 260 696 188 pp Net Impact to City on an Annual Basis Note A = At Sank CO$: Baytown State 28,460.00 28,460.00 .........-- (C@rP~ Bayshore National 28,194.50 28,194.50 3,602.94 2,401.96 4.60 7.36 3,492.00 3,492.00 A A 1,050.00 900.00 240.00 480.00 432.00 360.00 36 10 200.00 36 24 2,400.00 911.04 36 450.00 36 12.782.58 15,677.42 200.00 180.00 1,2CO.00 568.88 9.790.20 18,404.30 Nations Bank 14,936.13 14,936.13 6,004.90 4.60 2,095.20 A 1,050.00 480.00 360.00 520.00 225.00 444.00 A A 864.00 360.00 540.00 12.947.70 1,988.43