1c. Banking Requests for Proposals0
-1 c,
CITY OF
Fax: 952.227.1190
CUMNSEN
MEMORANDUM
7700 Market Boulevard
TO:
Mayor and City Council
PO Box 147
Chanhassen, MN 55317
FROM:
Greg Sticha, Finance Director
Finance
so that was not an issue or reason for changing banks.
Phone: 952.227.1140
Administration
DATE:
May 29, 2012
Phone: 952.227.1100
submitted proposals; however, US Bank submitted a second proposal using the
Phone: 952.227.1120
Fax: 952.227.1110
SUBJ:
Bank Requests for Proposals (RFPs)
Building Inspections
Phone: 952.227.1180
BACKGROUND
Fax: 952.227.1190
Engineering
Every three years, the city accepts RFPs for its banking services contract. For the
Phone: 952.227.1160
past three years, the city has been under contract with M &I Bank (now
Fax: 952.227.1170
BMO /Harris Bank). During the three years prior to that, the city was with
Americana Community Bank. Both banks provided very good customer service
Finance
so that was not an issue or reason for changing banks.
Phone: 952.227.1140
Fax: 952.227.1110
The RFPs were sent out in February and were reviewed in late April. Five banks
Park & Recreation
submitted proposals; however, US Bank submitted a second proposal using the
Phone: 952.227.1120
4M fund as the administrating partner for the checking services. The five banks
Fax: 952.227.1110
that submitted proposals were Americana, M &I, K1einBank, Wells Fargo and US
Bank. A summary of their proposals is included on the attached spreadsheet.
Recreation Center
2310 Coulter Boulevard
The six proposals were evaluated on the following criteria:
Phone: 952.227.1400
Fax: 952.227.1404
1. Interest rate earned
Planning &
2. Fees
Natural Resources
3. Cutoff time for deposits
Phone: 952.227.1130
4. Collateral requirements met
Fax: 952.227.1110
5. Online customer service needs met
6. Health of the Bank
Public Works
7. Customer service practices
7901 Park Place
Phone: 952.227.1300
Fax: 952.227.1310
All six proposals were evaluated assuming a million dollar daily balance for
comparative purposes. The evaluation results can be found on the attached
Senior Center
spreadsheet.
Phone: 952.227.1125
Fax: 952.227.1110
STAFF RECOMMENDATION
Web Site
www.ci.chanhassen.mn.us
Based on the evaluation of the selected criteria, staff is recommending the city
contract for banking services from July 1, 2012 through June 30, 2015 with
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Mayor & City Council
May 29, 2012
Page 2
Americana Community Bank. By switching banks, the city will save
approximately $10,000+ per year in fees /interest earnings. In addition, the city
was well - served by Americana when they had the contract from 2006 -2009. In all
other criteria, Americana met the requirements requested in the Banking Services
RFP. It is not staff's preference to change banks every time a new RFP is issued
for banking services; however, the $10,000 per year savings outweighs the
minimal costs (less than $400 of onetime costs) of having to transition banking
services.
ATTACHMENTS
1. RFP Banking Service Analysis Spreadsheet
2. Contract for Banking Services with Americana Community Bank,
July 1, 2012 — June 30, 2015
f\gregs \rfp's\2012 bank rfp's \bank rfp council work session 5- 29- 12.docx
City of Chanhassen
RFP Banking Services Grade Sheet
Bank
Int. Rate
On Acct
Annual Int Earned
Based on $1 Million Bal
Annual
Fees on Acct
Deposit
Cut -Off
Collateral
Requirements
Bank
Health
Cust
Service
Online
Service
Americana Community Bank
0.35%
3,500
2,300
5:00
M
M
M
M
Klein Bank
0.20%
2,000
6,500
6:00
M
M
M
M
US Bank
0.40%
4,000
4,700
6:00
M
M
M
M
US Bank - 4M
0.02%
200
1,700
6:00
M
M
M
M
Wells Faro
0.20%
2,000
11,600
6:00
M
M
M
M
M &I
0.20%
2,000
11,700
5:00
M
M
M
M
Customer service grade and online services grade based on site visit and /or current relationship
M = Meets expectations
B = Below expectations
BANKING SERVICES AGREEMENT
AGREEMENT made this of , 2012, by and between the
CITY OF CHANHASSEN, a Minnesota municipal corporation ( "City ")
and Americana Community Bank, a State of Minnesota chartered bank
( "Bank ").
IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE
PARTIES AGREE AS FOLLOWS:
1. CONTRACT DOCUMENTS. The Contract consists of the
following documents. In the event of conflict among the documents, the
conflict shall be resolved by the order in which they are listed with the
document listed first having the first priority and the document listed last
having the last priority: 1) this Banking Agreement, 2) Bank Banking
Service RFP Response dated April 20, 2012, and 3) any supplemental
agreement the parties may enter into.
2. SCOPE OF SERVICES. The City retains Bank to provide
services as set forth in the Contract Documents.
3. TERM. The term of this Agreement is three years
commencing on July 1, 2012 and ending on June 30, 2015, unless
sooner terminated as provided for herein.
4. DOCUMENTS. The City shall be the owner of all documents,
reports, studies, analysis and the like prepared by Bank in conjunction
with this contract.
5. COMPLIANCE WITH LAWS AND REGULATIONS. In
providing services hereunder, Bank shall abide by all laws, statutes,
ordinances, rules and regulations pertaining to the provisions of the
services to be provided.
6. ASSIGNMENT. Neither party shall assign this Agreement,
nor any interest arising herein, without the written consent of the other
party except in the case of a merger, exchange, sale of substantially all of
the assets of a party, or other similar transaction in which the successor
entity agrees to be bound by all of the terms of the Agreement.
7. WAIVER. Any waiver by either party of a breach of any
provisions of this Agreement shall not affect, in any respect, the
validity of the remainder of this Agreement.
8. ENTIRE AGREEMENT. The entire Agreement of the parties
is contained herein. This Agreement supersedes all oral agreements and
negotiations between the parties relating to the subject matter hereof as
well as any previous agreements presently in effect between the parties
relating to the subject matter hereof. Any alterations, amendments,
deletions, or waivers of the provisions of this Agreement shall be valid
only when expressed in writing and duly signed by the parties, unless
otherwise provided herein.
9. CONTROLLING LAW. This Agreement shall be governed
by and construed in accordance with the laws of the State of Minnesota.
Any actions arising out of this Agreement shall be venued in the Carver
County District Court, State of Minnesota.
10.MINNESOTA GOVERNMENT DATA PRACTICES ACT. Bank
must comply with the Minnesota Government Data Practices Act,
Minnesota Statutes Chapter 13, as it applies to (1) all data provided by
the City pursuant to this Agreement, and (2) all data, created, collected,
received, stored, used, maintained, or disseminated by Bank pursuant to
this Agreement. Bank is subject to all the provisions of the Minnesota
Government Data Practices Act, including but not limited to the civil
remedies of Minnesota Statues Section 13.08, as if it were a government
entity. In the event Bank receives a request to release data, Bank must
immediately notify the City. The City will give Bank instructions
concerning the release of the data to the requesting party before the data
is released. The City agrees to indemnify, defend and hold the Bank
harmless from any claims arising against the Bank if the Bank follows
the instructions provided by the City regarding release of data. Bank
agrees to defend, indemnify, and hold the City, its officials, officers,
agents, employees, and volunteers harmless from any claims resulting
from Bank's officers', agents', city's, partners', employees', volunteers',
assignees' or subcontractors' unlawful disclosure and /or use of protected
data. The terms of this paragraph shall survive the cancellation or
termination of this Agreement for information released which became
known under the terms of this Agreement.
11.FEES. Any fees for additional services not addressed in the RFP
which are added at a future date, will be negotiated by the Bank and the,
City prior to delivery of such services.
12.TERMINATION OF THE AGREMEENT. The City may
terminate this Agreement (or any part thereof), at any time, upon written
notice to Bank, effective upon delivery (including delivery by facsimile
or electronic mail). In such event, Bank will be entitled to compensation
for services performed up to the date of termination, based upon the
payment terms of this Agreement.
CITY OF CHANHASSEN
BY:
Thomas A. Furlong, Mayor
Dated:
BY:
Todd Gerhardt, City Manager
Dated:
AMERICANA COMMUNITY BANK
BY:
Adam Dittrich, President & CEO
Dated: