4.1.
Finance Committee
- Meeting Date:
- 09/11/2012
- By:
- Diana Lund, Finance
Information
Title:
Authorize Request for Proposals for Banking Services
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.
The City currently has its banking relationship with Village Bank, one of four full-service banks that are currently located within the City limits.
The City’s checking account is through Village Bank and is “swept” on a daily basis into another savings account to abide by the Dodd-Frank Act which is in direct relationship to FDIC insurance coverage. Both checking accounts are non-interest bearing for reasons being: the economy and rates at an all-time low and the Dodd-Frank Act for FDIC insurance coverage that does not currently allow for interest to be earned on accounts if the account wants to stay FDIC protected.
Until March of this year, Village Bank was not charging the city any service charges related to wire fees, check processing, etc. The fee amount has been averaging about $100.00 per month.
In relation to the current fee charges, non-interest bearing accounts, addition of other banking institutions and the fact that the city has not done an RFP for banking services since 2005, the city would like to take this opportunity to see what is currently available in banking services. The other banking services that the city would like to explore is credit card processing (ex: work directly with Paypal), Positive Pay (Check 21 Act) and added features such as offering pay cards for those who do not have a bank account for their payroll eft, etc.
The city is proposing a January 1, 2013 start date for the city's banking services if there is a change from the current bank vendor (Village Bank). At the first regularly scheduled city council meeting of the year, the city adopts a resolution stating the city's banking institution.
Outside of the city's checking account held at Village Bank, the city also has CD's with Village Bank and Landmark Bank and a Government Agency with Bank of the West.
In an attempt to keep the banking activities local, staff has prepared the attached “Request for Proposal - Banking Services” to be submitted to local banks in Anoka, Elk River, Ramsey and Coon Rapids (listing attached).
The proposals for banking services would need to be returned to the Finance Director by 4:30 P.M. on Friday, October 12, 2012. Banking services would commence on January 1, 2013.
The City currently has its banking relationship with Village Bank, one of four full-service banks that are currently located within the City limits.
The City’s checking account is through Village Bank and is “swept” on a daily basis into another savings account to abide by the Dodd-Frank Act which is in direct relationship to FDIC insurance coverage. Both checking accounts are non-interest bearing for reasons being: the economy and rates at an all-time low and the Dodd-Frank Act for FDIC insurance coverage that does not currently allow for interest to be earned on accounts if the account wants to stay FDIC protected.
Until March of this year, Village Bank was not charging the city any service charges related to wire fees, check processing, etc. The fee amount has been averaging about $100.00 per month.
In relation to the current fee charges, non-interest bearing accounts, addition of other banking institutions and the fact that the city has not done an RFP for banking services since 2005, the city would like to take this opportunity to see what is currently available in banking services. The other banking services that the city would like to explore is credit card processing (ex: work directly with Paypal), Positive Pay (Check 21 Act) and added features such as offering pay cards for those who do not have a bank account for their payroll eft, etc.
The city is proposing a January 1, 2013 start date for the city's banking services if there is a change from the current bank vendor (Village Bank). At the first regularly scheduled city council meeting of the year, the city adopts a resolution stating the city's banking institution.
Outside of the city's checking account held at Village Bank, the city also has CD's with Village Bank and Landmark Bank and a Government Agency with Bank of the West.
In an attempt to keep the banking activities local, staff has prepared the attached “Request for Proposal - Banking Services” to be submitted to local banks in Anoka, Elk River, Ramsey and Coon Rapids (listing attached).
The proposals for banking services would need to be returned to the Finance Director by 4:30 P.M. on Friday, October 12, 2012. Banking services would commence on January 1, 2013.
Recommendation:
Staff recommends Committee motion to recommend City Council direct staff to solicit proposals for banking services by distributing the "Request for Proposal - Banking Services" to those local banks listed in attachment.
Funding Source:
Not applicable.
Council Action:
Motion to recommend City Council to direct staff to solicit proposals for banking services by distributing the "Request for Proposal - Banking Services" to those local banks listed in attached file.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 09/06/2012 02:56 PM |
- Form Started By:
- Diana Lund
- Started On:
- 09/04/2012 08:55 AM
- Final Approval Date:
- 09/06/2012