§ 2-164. Deposit of funds in budgeted checking accounts.

(a)

Beginning January 1, 2001, the city shall contract for banking services every two (2) years with optional annual renewals, not to exceed two (2) renewals. The contract will be awarded after competitive bids for banking services have been evaluated according to the criteria established by the city administrator, or designated representative. In awarding the contract for banking services, the city shall give preference to the banking institution that offers the lowest cost of services requested and the highest lending and investment efforts in the community, while giving consideration to new or unique services offered by the banking institution that can be quantified to provide financial benefits to the city. The contract for banking services shall include termination clauses for the city and the financial institution in the event of a breach of service or failure to meet performance criteria.

(b)

To be eligible to submit a bid, a banking institution must meet the following qualifications:

(1)

The banking institution must be licensed by the federal government and be a part of all relevant federal insurance plans;

(2)

The banking institution must be licensed by the state;

(3)

The banking institution must have at least three (3) staffed full service locations within the boundaries of the city;

(4)

The banking institution must provide all of the services being sought by the city in its request for proposals;

(5)

The banking institution must be included on the annual list of eligible banks prepared by the state bank commissioner as provided by A.C.A. § 19-8-105(a); and

(6)

In the event of change of ownership of the banking institution, the above five (5) qualifications must continue to be met by the new entity. Failure to meet these qualifications will allow the city to terminate the contract.

(c)

In order for a banking institution to be considered a qualified bidder, the bank must be capable of, and agree to, provide the city full banking services. These services will be paid for on a fee for service basis. These services will include, but not be limited to the following:

(1)

Accept deposits and process checks. Reconciliations will be furnished electronically for the city's special account, payroll account, clearing account and other accounts as requested by the city;

(2)

Complete wire transfers, night depository services, investment processing services, coin sorting and counting services;

(3)

Collateralize at least one hundred two (102) percent of the daily account balances with the U.S. government and selected agency securities of the U.S. government with maturities not to exceed eighteen (18) months, or other instruments authorized by state law;

(4)

Provide the city weekly statements on CD-ROM for its payroll account, clearing account and other accounts as requested by the city. Monthly statements will be provided for all other accounts. The statements must detail account balances, interest rate earned, and the dollar amount of interest credited to various city accounts.

(5)

Direct deposit of payroll services for those city employees electing to use this service;

(6)

Cash all checks issued by the city and drawn on the servicing bank at all branches of the servicing bank within the Greater Fort Smith Metropolitan Statistical Area.

(d)

Annually, the city's depository board shall confirm the banking services contract pursuant to A.C.A. § 19-8-105(b).

(Code 1976, § 2-127; Ord. No. 44-00, §§ 1, 2, 8-15-00)