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HomeMy WebLinkAboutPR 14503: J. P. MORGAN CHASE BANK - CITY'S DEPOSITORYMemorandum City of Port Arth ur, Texas Finance Department To: Steve Fitzgibbons, City Manage `~;~ From: Rebecca Underhill, Director of F -Date: January 8, 2008 Subject: Proposed Resolution 14503 Presented for Council consideration. and approval is Proposed Resolution 14503, which designates J. P. Morgan Chase Bank as the depository for the City of Port Arthur, and authorizes the Finance Director, and City. Secretary when necessazy, to execute all required documents. Pursuant to the Texas Public Funds Investment Act, the City is required to solicit proposals for banking services at least every five years. On October 24, 2007, we received proposals from four banks. The proposals were evaluated based upon criteria developed from the RFP. We received four very competitive bids. Based upon our evaluation of the costs, services to be provided, and community reinvestment activity, we recommend J.P. Morgan Chase Bank to serve as our depository, over the proposals from Wachovia, Capital One, and Texas State Bank. The iriitial, agreement is for two years, renewable at the City's option for up to an additional three years. 'The agreement is effective April 1, 2008, allowing both the City and the Bank adequate transition time. P. R. NO. 14503 JJA: 01/08/08 RESOLUTION NO. A RESOLUTION DESIGNATING J. P. MORGAN CHASE BANK AS THE DEPOSITORY BANK FOR THE CITY OF PORT ARTHUR, AND AUTHORIZING THE FINANCE DIRECTOR ALONG WITH THE CITY SECRETARY TO EXECUTE ALL REQUIRED DOCUMENTS TO IMPLEMENT THE SERVICES WHEREAS, on October 24; 2007, the City of Port Arthur; after having given notice in accordance with,the State Depository Act, Chapter 105, Subchapter C, of the Local Government Code, received applications from banking associations to act as depository or depositories for the City; and; WHEREAS, the City Council of the "City of Port Arthur, in the exercise of its discretion, determined that the proposal submitted by J P Morgan Chase Bank offered the most favorable terms and conditions for the handling of the City's funds; and, WHEREAS, the City Council has been furnished a copy of the proposal which is attached hereto as Exhibit "A" and made a part hereof for all.purposes; now therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:. Section 1. The facts and opinions in the preamble are true and correct. Section 2. The City does hereby designate J P Morgan Chase Bank of Port Arthur, Texas, as the Depository of the City. .Section 3. The J.P. Morgan Chase Bank proposal attached hereto as Exhibit "A" is accepted,. with the new depository contract commencing on April 1, 2008. Section 4. The Finance Director, along with the City Secretazy when necessary;. is hereby authorized to execute all documents to implement the services set forth in the proposal on behalf of the City. Section 5. The initial agreement is for two years, with the City having the option to renew the agreement for an additional three yeazs. Section 6.' A copy of the caption of this Resolution shall be spread upon the Minutes of the City Council. READ, ADOPTED, AND APPROVED, this day of January, 2008, AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: NOES: Mayor ATTEST: Terri Hanks -Acting City Secretary APPROVED AS TO FORM: Mark Sokolow, City Attorney APPROVE//J///D//~~FO~R ADMINISTRATION: v ~ Steve Fitzgibbons; City Manager Rebecca Underhill, Finance Director JP Morgan Chase Bank Z9PinanceULesoWtionsU PMorgan Chasek.dock ~1LIYl1D~ S 66~» REOUEST FOR PROPOSAL September 27, 2007 The enclosed REQUEST FOR PROPOSAL (RFP) and accompanying GENERAL INSTRUCTIONS, AND CONDITIONS SPECIFICATIONS, aze for your convenience in bidding the enclosed referenced services for the City of Port Arthur. Sealed Proposals, (two copies) subject to the General Instructions, Conditions and Specifications, as provided will be addressed to the City Secretary of the City of Port Arthur, Texas. Sealed PROPOSALS shall be received no later than 3:00 P.M. Octobei 24;.2007 at the City Secretary Office and all proposals received will thereafter be opened a read aloud in City Council Chambers, fifth floor, City Hall, Port Arthur, Texas for the following: BANKING SERVICES FOR CITY OF PORT ARTHUR PROPOSAL SHALL BE PLACED IN A SEALED ENVELOPE, with the bidder's name and address in the upper ]eft-hand corner of the envelope. FACSIMILE TRANSMITTALS SHALL NOT BE ACCEPTED. PROPOSALS MUST BE SIGNED BY A PERSON HAVING AUTHORITY TO BIND THE FIRM IN A CONTRACT MARK ENVELOPE: BANKING Sealed proposals shall be submitted to: CITY OF PORT ARTHUR CITY OF PORT ARTHUR CITY SECRETARY CITY SECRETARY PO BOX 1089 444 4TH STREET PORT ARTHUR, TEXAS 77641-1089 .PORT ARTHUR TX 77640 ALL PROPOSALS MUST BE RECEIVED IN THE CITY SECRETARY OFFICE BEFORE OPENING DATE AND TIME. Page 1 of 24 ~~ Proposals received after the closing time specified will be returned to the bidder unopened. Awards should be made not longer than 90 calendar days after the bid . opening date. To obtain results, or if you have any question, please contact Clifton Williams at the City of Port Arthur Purchasing Office at (409) 983-8160. The City reserves the right to reject any or all proposals and to waive informalities or defects in proposals or to accept such proposals as it shall deem to be in the best interests. of the City of Port Arthur. Sincerely, Joseph Broussard Purchasing Manager -~c Page 2 of 24 CITY. OF PORT ARTHUR GENERAL INFORMATION: NOTE: It is extremely important that the Vendor, Bidder, and/or Contractor furnish the City of Port Arthur the required information specified in Bid or Proposal Specifications listed in this Bid Package. The intent of this REQUEST FOR PROPOSAL (RFP) is to provide prospective parties with sufficient information to prepare SEALED PROPOSALS IN DUPLICATE for famishing: BANKING SERVICES FOR CITY OF PORT ARTHUR Proposals must be in a sealed envelope addressed to the City Secretazy, City of Port Arthur, P. O. Box 1089, Port Arthur„Texas 77641. Proposals shall be received no later than 3.00 P M. October 24, 2007. Proposal MUST BE SIGNED BY BIDDER. All proposals meeting the intent of this request for proposal will be considered for award. BIDDERS TAKING EXCEPTION TO THE SPECIFICATIONS, OR OFFERING SUBSTITUTIONS, SHALL STATE THESE EXCEPTIONS BY ATTACHMENT AS PART OF THE BID. The absence of such a list shall indicate that the bidder has not taken exceptions and the City shall hold the bidder responsible to perform in strict accordance with the specifications of the invitation. The City reserves the right to accept any and all or none of the exception(s)/substitutions(s) deemed to be in the best interest of the City of Port Arthur. Proposals cannot be altered or amended after submission deadline. Any interlineations, alteration, or erasure made before opening time must be initialed by the signer of the proposal, guaranteeing authenticity. The City reserves the right to:.. 1. Reject any and all proposals, and to make no awazd, if it deems such action to be in its best interest. 2. Reject any or all proposals and to waive informalities or defects in proposal or to accept such proposals as it shall deem to be in the best interest of the City. The award shall be made to the responsible vendor(s) whose proposal is determined to be lowest evaluated offer, taking into consideration the relative importance of price, conformance to specifications and capability and experience of the contractor. TERMINOLOGY: "Bid vs. "Proposal" --For the purpose of this RFP, the terms "Bid" and "proposal" shall be equivalent. Bidders are cautioned to read the information contained in this RFP cazefully and to submit a complete response to all requirements and questions as directed. Page 3 oF24 CONFLICT OF INTEREST: No public official shall have interest in this contract, in accordance with Vernon's Texas Codes Annotated, local Government Code Title 5, Subtitle C, Chapter 171. ETHICS: The offerer shall not offer or accept gifts or anything of value nor enter into any business arrangement with any employee, official, or agent of the City of Port Arthur. .. MINIMUM STANDARDS FOR RESPONSIBLE PROSPECTIVE OFFERERS: A prospective offerer must affirmatively demonstrate offerer's responsibility. A prospective offerer must meet the following requirements: 1. have adequate financial resources, or the ability to obtain such resources as required; 2. be able to comply with the required or proposed delivery schedule;. 3. have a satisfactory record of performance; 4. have, a satisfactory record of integrity and ethics; 5. be otherwise qualified and eligible to receive an award. The City of Port Arthur may request representation and other information sufficient to determine offerer's ability to meet these minimum standards listed above. PRICES: The bidder should show in the proposal both the unit price and total amount, where required; `of each item listed. In the event of error a discrepancy in the mathematics, the unit price shall prevail. PURCHASE ORDER: A purchase order (s) shall be generated bythe-City of Port Arthur to the successful bidder. The Purchase order number must appear on all itemized invoices. . INVOICES shall show all information as stated above, shall be issued for each purchase order and shall be mailed directly to the City of Port Arthur Finance Department, PO Box 1089, Port Arthur, Texas 77641-1089. , PAYMENT will be made upon receipt and acceptance by the City of all completed services and/or item (s) ordered and receipt of a valid invoice, in accordance with the State of Texas Prompt Payment Act, Article 601 f V.T.C.S. Successful offerer (s) are required to pay subcontractors within teri (10) days. SALES TAXI The City of Port Arthur is exempt by law from payment of Texas Sales Tax and Federal Excise Tax, therefore the proposal shall not include sales tax. VENUE: This agreement will be governed and construed according to the laws of the State of Texas. This agreement is preferable in Port Arthur, Texas, Jefferson County. ~2 c Page 4 of 24 COMPLIANCE WITH LAWS: The Contractor shall comply with all applicable laws, ordinances, rules, orders, regulations and codes of the federal, state and local governments relating to'performance of work herein. INTEREST OF MEMBERS OF CITY: No member of the governing body of the City, and. no other officer, employee or agent of the City who exercises any functions or responsibilities in connection with the planning and carrying out of the program, shall have any personal financial interest, direct or indirect, in this Contract;. and, the Contractor shall take appropriate steps to assure compliance. DELINQUENT PAYMENTS DUE CITY: The City of Port Arthur Code of Ordinances prohibits the City from granting any license, privilege or paying money to any one owing delinquent taxes, paving assessments dr any money to the City until such debts are paid or until satisfactory arrangements for payment has been made..Bidders must complete and sign AFFIDAVIT ihcluded as part of this RFP. CONTRACT: The following will comprise the contract between the City and the successful bidder:. 1. Information for Bidders 2. Bid Sheet 3. Notice of Awards 4. Specifications 5. Addenda QUANTITIES: Quantities shown are estimated, base on projected use. It is specifically understood and agreed that these quantities aze approximate and any additional quantities will be paid for the quoted price. It is further understood that the supplier shall-not have any claim against the City of Port Arthur for quantities less than the estimated amount. All proposals will remain in effect for one (1) yeaz after the proposal opening date If through any cause the Bidder fail to fulfill in a timely and proper manner, his obligations under this Contract, or fail to perform in accordance with these specifications, the City reserves the right to terminate this Contract by giving written notice to the Bidder of such termination and specifying the effective date thereof, at least fifteen. (15) days before the effective date of such termination. No person has the authority to verbally alter these specifications. Any interpretations, corrections or changes to this RFQ and Specifications will be made in writing by the Purchasing Division of the City of Port Arthur and sent to each person having a bid package. The vendor must be an authorized dealer for all products offered. Vendor must give the manufacturers name and product description of all items. Inferior products, products which perform at a level lower than the manufacturers original equipment, substandazd, orpoor-quality products will be rejected. '~~ Page 5 of 24 SHIPPING INFORD~ATION: All proposals aze to be F.O.B., City of Port Arthur, Port Arthur, Texas 77640 INCORPORATION OF PROVISIONS REQUIRED BY LAW: Each provision and clause required by law to be inserted into the Contract shall be deemed to be enacted herein and the Contract shall be read and enforced ~as though each were included herein. If, through mistake or otherwise, any such provision is not inserted or is not correctly inserted, the Contractor shall be amended to make such insertion on application by either PAY CONTRACTOR'S OBLIGATIONS: The Contractor shall and will, in good workmanlike manner, to and perform all work and furnish all supplies and materials, machinery, equipment, facilities and means, except as herein otherwise expressly specified, necessary or proper to perform and complete all the work required by this Contract, in accordance with the provisions of this Contract and said specifications. The apparent silence of these specifications as to any detail or to the appazent omission from it of a detailed description concerning any point, shall be regazded as meaning that only the best commercial practices aze to prevail. All interpretations ofthese specifications shall be made on the basis of statement. , While the purpose of the specifications is to indicate minimum requirements in the way of capability, perfonnance, construction, and other details, its use is not intended to deprive the City of Port Arthur the option of selecting equipment which maybe considered most suitable for the service involved. , In the event of conflicts between the written bid proposal and information obtained verbally, the vendor is specifically advised that the written bid proposal will prevail in the determination of the successful bidder. Under the Title VI of the Civil Rights Act of 1964, no person shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. Questions concerning this RFP or_additional information should be directed to Deborah. Echols at 409-983-8174. -~ c Page 6 of 24 PROPOSALS MUST BY SUBMITTED ON OR BEFORE 3:00 P.M., CDT, OCTOBER 24, 2007 I hereby agree to furnish the following services at the price(s) and terms stated, subject to all hereto. I have read all attachments including the specifications and fully understand what is required. By submitting this signed proposal, initialed on each page, I officially agree to provide the services requested and this agreement covers all the terms, conditions, and specifications of this proposal. I hereby agree that we will make available for audit to appropriate City auditors any applicable business and/or financial records pertinent to this agreement. ANTI-COLLUSION STATEMENT: Further, I understand that no premiums, rebates, or gratuities are permitted either with, prior to, or after submission of the proposal. Any violation of this prohibition wilt-result in the cancellation and/or return of this proposal and removal from the list of eligible proposers: The below signed proposer has not.divulged to, discussed or compared this proposal with other proposers and has not colluded with any other proposers or parties to a proposal. PROPOSAL SUBMITTED BY: Name Richard Chappell _Title Sr Vice President/ Relationship Manaeer Company JPMorgan Chase Bank N A (Legal Registered Name, in Full) Address 3723 Gulfway Drive Port Arthur. Texas 77642 Signature _ Telephone 409-898-5100 -~C Page 7 of 24 CITY OF PORT ARTHUR REQUEST FOR PROPOSAL FOR BANKING SERVICES I. INTRODUCTION A. Background The City of Port Arthur (the "City") is evaluating its banking needs in terms of service and costs. In conjunction with this evaluation, the City is inviting proposals from qualified banking institutions to provide complete banking services to the City as described in Section III. The City desires to acquire banking services which represent the best value. The City considers value to be a function of both price and quality. B. Submission Instructions 1. Sealed proposals -Responses to this request for Proposal (RFP) shall be sealed and mailed or delivered to: Office of the City Secretary 444 Fourth Street Port Arthur, Texas 77640 To be eligible for consideration, all proposals must be filed with the Office of the City Secretary before 3:00 P.M. (Central Daylight Standard Time on October 24, 2007. Proposals received after the deadline, will not be opened or considered by the City. 2. Responses. -Proposals must be submitted on the standard forms provided herein, with supporting material attached to the required forms. The City's decision in selecting the proposal that best meets the needs of the City will be based only on the data contained in this RFP and in the attached standard proposal forms. 3. Questions and Clarification -Interested institutions are encouraged to ask for clarification of any point in this RFP. All questions or requests for clarification must be addressed to Deborah Echols at (409) 983-8174. 4. Erasure and Corrections -Any erasures or corrections must be initialed by the proposer in ink. All quotations must be typewritten or filled in with pen. 5. Variances -All variances from the City's specifications, terms and/or conditions, no matter how slight, must be indicated on the. attached Standard Proposal Form. Otherwise; it will be assumed that your proposal fully complies with the City's terms, conditions,.. and specifications as defined. /L Page 8 of 24 6: Proposal Signature -This RFP is part of the Proposal and must be . signed in the appropriate space and initialed at the bottom of each page by an officer who is authorized fo bind the bank. 7. The RFP does not commit the City to enter into any informal banking service arrangement, or to incur any costs related to the preparation of the response. C. Selection Criteria 1: The following criteria will be used by the City to evaluate the banking services agreement proposals and to make a selection: i. Compliance with minimum requirements as set out in Section II of this RFP. ii: Availability of required banking services as set out in Section III of this RFP. iii. Lowest costs to the City for quality banking services as indicated... on the banking service proposal form. iv. Highest guazanteed interest rate used to calculate interest earnings form overnight investment of surplus funds. D. Terms and Conditions 1. Term -The intent of this RFP is for the City to. arrange for banking services for atwo-year period with the option to renew for three additional years. 2. Right to Reject -The City reserves the right to waive any irregularities in any proposal, to request additional information, and to accept or reject any item of any proposal. 3. Modification and Amendments -The City reserves the right to negotiate such additions, deletions, or changes as it deems necessary during the term of an agreement. 4. Termination -Either party may terminate this agreement upon giving a written notice to the other party 120 days in advance of termination. 5. Effective Date -The selected proposal will become effective, upon- , contract approval by the City Council, November 20, 2007, and the City and the Bank will commence operating pursuant to this agreement on that date or as soon as practical thereafter. IL MINIMUM QUALIFICATIONS FOR SUBMITTING A PROPOSAL ' In response fo the RFP, the proposer acknowledges and understands that the following conditions must be met at the time services are provided to the City. Page 9 of 24 A. Federal or Texas Chartered Bank: Proposer is a chartered bank located within the city limits of the City of Port Arthur and capable of servicing the City's banking activity needs as described herein. B. Member of the Federal Reserve system: A bank submitting a proposai.must be a member of the Federal Reserve System. C. Approved Public Depository: A bank submitting a proposal shall meet the requirements of the state Depository Act and must have identifiable collateral which is sufficient to cover the City's deposits at all times. The city will consider the use of surety bonds as collateral during peak deposit times. Collateral for deposit accounts (checking, savings, depository CD's) will be provided at no charge to the City. Please refer "Section IV -Collateral Requirement" below and to Attachment M for additional collateral information. D. Adequate Site to provide services: A bank submitting a proposal shall have adequate organization, facilities, equipment, and personnel to provide prompt and efficient service to the City. The City may conduct an on-site visit if deemed appropriate to evaluate the proposal. E. Equal Opportunity Employer: A bank submitting a proposal must be an Equal Opportunity Employer and Lender. Appropriate supporting documentation of the Bank's compliance with its own policies must be attached to the bank's proposal. Please refer to Attachment I. F. City Liaison: A bank submitting a proposal shall assign a senior level management person as a liaison to the City's Finance Department. Richard Chappell, Sr. Vice PresidenURelationship Manager would serve as account officer. He is assisted by Bonnie Graff, Customer Service Professional. Working closely with Richard Chappell is Zoe Hudson, Vice President/Cash Management Consultant. Leading this Chase Bank Business Banking team is Steve Grantham, Market President. G. City Employee check cashing privileges: A bank submitting a proposal must agree to cash, without charge to the City or its employees, all City payroll checks drawn on its bank after proper identification is presented by the employee, without regard to whether or not the employee has an account with the bank. Chase Bank will provide this service with proper identification. ~~ Page 10 of 24 H. Other Required Information: 1. Audited Financial Statements for the most recent fiscal year. Please refer to Attachment B. 2. Moody's and Standard and Poor's rating on outstanding debt, if applicable. Please refer to Attachment B. 3. References from customers who utilize similar services to those requested by the City. Please refer to Attachment J. III. STATEMENT OF BANKING SERVICES The City has determined that the following services and products are the minimum necessary to fulfill the current and foreseeable future banking service requirement of the City of Port Arthur. A. Account Descriptions The City requires one master concentration account and two zero balance accounts. ' The City of Port Arthur requires a cash concentration account into which city receipts will be deposited. Amounts to cover the checks presented in the zero balance accounts will be transferred from the concentration account on a daily basis. At the end of each day, any balances remaining in the zero balance accounts will be automatically transferred back to the Concentration Account where interest is earned overnight at a rate stipulated in the proposal form. B. Deposits . The City will make deposits to the concentration account at various times during the business day and will require the bank to give same day credit on all collectible funds the bank receives before the time specified on the proposal form. When requested, the bank must furnish a list of checks comprising uncollected balance of any given day, including the routing number. The City will be able to see this information with JPMorgan Access our Online information reporting tool. .Please refer to Attactunent E for further information on JPMorgan Access. C. Returned Checks, Charge backs and adjustments The City requires returned items to be automatically deposited twice before returning to the City's Account: The City must receive daily notification of all ACH rejects, returned checks, deposit adjustments, etc. by fax, a-mail, and on-line notification services. Viewing of this information is available on JPMorgan Access Information Reporting and Special Reports. Please iefer to Attachment B. ~C Page 11 of24 D. Wire Transfers The City requires the bank to periodically wire funds Yo various vendors, paying agents, and brokers. All wire transfers will be initiated electronically via computer or transmitted via telephone line with proper security. The City requires the bank to accept incoming wire transfers of funds. Wire transfers detailed,information must be noted on the bank statement and accessible. through on-line reporting services. You will be able to send wires and receive notification of incoming wires through JPMorgan Access. Please refer to Attachment E. . E. Intrabank Transfers The City requires the bank to transfer funds-from one City account to another upon written- instructions or electronically via computer with proper security. JPMorgan Access will allow you to transfer funds between accounts. Please refer to Attachment E. F. Automatic Clearing House (ACH) Transactions The City has a direct deposit program for its employee's payroll checks. The bank would be required to process these transactions within the time schedules specified on the proposal form. Additionally, some of the City's - residents pay their. utility bills by bank direct transfer to the City's account. The bank would be required to process such transactions: The City desires services that allow for the payment of their liabilities through ACH processing. Identify the process, costs, and on-line reporting/viewing services associated with the process. The bank must have on -line reporting and viewing capabilities, must be able to submit electronic data for both debits . and credits, and must be able to reverse debits and credits. The City requires .the bank to accept incoming ACH transactions and to process outgoing ACH transactions as authorized by the City. ACH detailed information must be noted on the bank statement and accessible through on-line reporting services. JPMorgan Access will give you ACH debit and credit capability as well as reporting information. Please refer to Attachment E. G. Stop Payments The City requires the bank to issue stop payments upon communication from authorized city personnel via telephone or computer modem. The City will provide written.confirmation of the Stop Payment. -~2 C Page 12 of 24 JPMorgan Access will provide stop payment capability through our Payables Web Service module which you may access through the JPMorgan Access Portal. Please refer to Attachment E. H. Special Purpose Accounts 1. The City operates a demand account for the Municipal Court. This account has one deposit and approximately 50 checks per month. 2.' Other Accounts: The City may establish other accounts as needed. I. Account Reconciliation The City requires all paid checks to be returned to the City with their respective monthly bank statements fine sorted by check number in ascending numerical order. Rather than the physical return of paid checks, the City would require on-line access to paid check images, and electronic copies (CDs) of images.. Please state the period of time that the check images will be available [-Vault For Checks and Statements is a JPMorgan Chase service that allows the City of Port Arthur to electronically archive your U.S.-based business account statements and check images via the Internet from anywhere, at any time. Advantages ^ Instant online retrieval of azchived business account statements and checks from any PC by an unlimited number of users at your organization ' ® The ability to see images of your statements the same day we print them as well as the front and back of your checks the same day we post them. ^ Retrieval time measured in seconds and minutes, compared with hours or even days for paper-based checks and- statements s Robust indexing capability that makes it easy to search for specific checks or statements ^ Cleaz quality of reproduced images that will not deteriorate over time ~ Complete business continuity with dual-site backup ^ City of Port Arthur can retrieve up to seven years of business checking account statements as well as images of your checks. Please refer to Attachment E for additional information. I. Electronic Refunds: The City uses softwaze to reconcile its bank accounts, so the bank will be required to provide a list of cleazed checks in compatible electronic format. ~c Page 13 of 24 The City of Port Arthur will have complete information about accounts through JPMorgan ACCESS Information Reporting which offers aneasy-to-use, cost- effective solution. JPMorgan ACCESS Information Reporting provides you with detailed data on cash balances and transactions and the ability to download check cleared item in a format that you are able to download into your accounting software. Please refer to Attachment E for additional information. 2. Monthly statements: Monthly statements are required for all City Bank. Accounts. At minimum these statements must include: - Paid Items Listing (Date paid, Check Number, Amount Paid) Wire Transfers , - Intrabank Transfers - Stop payments Listing - Returned Item Listing - All statements mustbe available on the Sa' working day following the end of the period. The City will have the ability to see images of your statements the same day we ' print them as well as the front and back of your checks the same day we post them. J. Investment Service The City will separately bid investments. We plan to buy and sell U. S. Government Securities as deemed appropriate. The bank will be required to provide investment services, including: • Securities safekeeping: The Bank may be required to safekeep securities. purchased by the City. The City will require a safekeeping receipt be issued and delivered to -the City's Finance Department within two (2) business days after the receipt of the securities. JPMorgan Chase believes that our Securities Safekeeping is the best choice for the City of Port Arthur. Our team consists of experienced industry professionals who will work closely with City personnel to deliver superior securities safekeeping services. JPMorgan Chase Securities Safekeeping has been in the safekeeping business for over 25 years and tracks over $90 billion in assets for over 2000 client relationships. JPMorgan Securities Safekeeping provides far settlement of trades initiated by both JPMorgan and third party brokers. Our safekeeping Page 14 of 24 service allows for automated collection of principal and interest from paying agents and depositories as well as distribution of proceeds to client accounts of their choice. We also offer timely notification of industry calls, acquisitions, tenders, puts and stock splits: Furthermore, we execute daily reconciliations of trades, payments and holdings to ensure the highest integrity of customer portfolios. In addition JPMorgan Chase Securities Safekeeping offers the following features to the City: • Client Service -Our client service team is available Monday - Friday from 8:00 am to 6:00 pm to respond to client inquiries. • Investment Operations On-line -Our web-site provides free reporting and transactional capability. Reports available online include: verification statements, custody receipts, full call notices, credit advices, billing statements, pledge notifications, and maturity notices. We look forward to working with the City of Port Arthur to deliver superior Securities Safekeeping services. Please refer to the Safekeeping Fee Schedule and sample Safekeeping Agreement in Attachment L. • Overnight Investment: The City requires all -collected funds remaining if the City's accounts at the end of each day earn a return that will be credited daily. This -return will be earned at the "overnight Investment Rate" as specified on the proposal Form. JPMorgan Chase offers the City an automatic, same-day investment sweep that will save time and earn interest. The City defines the Target Balance. The Overnight Repurchase Agreements Sweep includes daily confirmation of collateral as well as interest paid daily..Please refer to Attachment D for additional information. The rate for Overnight Repurchase Sweep will be Fed Funds minus 60 basis points. The Earnings Credit Rate (ECR) will be Fed Funds minus 25 basis points. K. Monthly Account Analysis The City requires that a Monthly Account Analysis be delivered to the City within thirty (30) days from the cut off date. At a minimum, the Account Analysis must provide the following information: • Account Number • Period Covered ~C Page 15 of 24 • Average Ledger Balance • Average Fund in the process of collection • Service rendered (including type and quantity) • Per unit cost of each service provided • Total monthly cost of all services Please refer to the Sample Account Analysis Guide in Attachment K. L. Overnight Investment Rate ° The City requires that all collected funds remaining in the .City's accounts earn a return which will be credited to the City's accounts daily. This return will be at the "Overnight Investment,Rate". The bank will "automatically" handle the overnight and weekend investment of the City's excess cash. in consultation with the city's Finance Department. These investments will be in the form of Moriey Market Accounts, Repurchase Agreements; or other means negotiated by the City and the Depository. Procedural requirements for perfecting the City's ownership of . the collateral must be met or bonding provided. An Investment conformation must be issued and delivered to the. City on the day the account is charged to commence each purchase if the investment is in the form of a Repurchase Agreement or any other instrument other. than a Money Market Account. The Confirmation will report the following: L The Description of the investment,' including amount, interest rate,. maturity, etc. 2. The principal amount of City funds invested from each bank account which totals to the investment amount. 3. Safekeeping Receipt Information The investment confirmation must be signed by an officer of the bank. When the investment matures, both the principal and interest will be deposited into an account designated by the City. This form also must be signed by an officer of the bank. The City seeks the highest guaranteed rate used to calculate the interest earnings from the overnight investment of surplus. funds. This rate will be based on the average FED FUND RATE. It will be a variable rate but the basis point spread between the average FED FUND RATE and the "Overnight Investment Rate" will be constant throughout the period of the contract. 7PMorgan Chase offers the City an automatic, same-day investment sweep that will save time and earn interest. The City defines the Target Balance. The Overnight Repurchase Agreements Sweep includes daily confirmation of Page 16 of 24 collateral as well as interest paid daily. Please refer to Attachment D for additional information. The rate for Overnight Repurchase Sweep will be Fed Funds minus 60 basis points. The, Earnings Credit Rate (ECR) will be Fed Funds minus 25 basis points. , M. Other Services The City requires that the Bank demonstrate the abilityto meet the following requirements. This must be detailed in the proposal. Please-note, all the following requirements must be met for full consideration. 1 Point of Sale Deposit Services: The City desires services that will offer the latest in check technology that will convert paper checks to electronic transactions at the point of sale to.improve cash flow, minimize reconciliation efforts, reduce bank fees, and reduce returned checks. Bank capability to meet the following requirements must be detailed in the proposal. • Must have late deposit cut-off times (6:-00 p.m.) and allow for saine day credit to the City's Central Concentration Account. • Allows for check deposits to be processed as image , "' replacement documents, ACH, or both- Deposit batches must appear as a single credit to the ; bank. statement fore reconciliation purposes. • Must be able to scan standazd size checks and payment- coupons. • Must have the flexibility to include discretionary data fields for the input of customized information. , • Must have reporting capabilities for standardized deposit reports. Images of payments and coupons must be accessible for on- line viewing for up to 180 days. • Allows for same day modification to add new user, change authorization levels, and deletion of users. • Provide an explanation of services, identify reduction increase in fees for this service to those identified for traditional deposit services, cost of hardware, and cost of implementation and training. ~~ Page 17 of 24 Image Deposit Direct (IDD) is the bank's remote deposit solutionwhich is Intemet based and allows our clients access through their high speed Internet connection. Clients may scan checks received through the mail, a drop box, or presented in-person at the client's office. Both in-person payments and person-notrpresent payments are run through the scanner.. The original checks are securely stored by the client and then shredded.. Scanned images are stored online and are available to customers for 25 months. The data and the imaged checks are submitted for deposit where JPMC's clearing engine will determine which checks should be converted to ACH transactions and which should be cleared through Image Exchange or as substitute checks. This solution allows the bank's clients to use an integrated capture system ' to improve their receivables management process. Image Deposit Direct can be integrated with the client's accounts receivables system. View a Demo at ww~~ iomor¢anchase.com/idd. Please refer to Attachment E for additional information There is no charge for implementation, training or hardFVare. Chase Bank will provide the £n•st scanner at no charge. If additional scanners are needed, discount from standard cost would be negotiated at time of request. 2. Positive Pay • Must have capabilities to receive daily disbursement file from the City and verify the check number, check amount, and payee name. • Must provide daily 2-mail or on-line notification services of. daily exceptions. Positive Pay provides an additional means of controlling fraud. The City will be responsible for electronically transmitting all of the items issued against the Center's payroll and controlled disbursement accounts. Payables Web Services provides an ARP Issue Import function that makes it quick and simple to submit check issue files for Account Reconciliation and Positive -Pay. You can choose to import your check issue files containing issues, cancels and stop payments in either a delimited and fixed-width, or a standardized extensible mazkup language (XML) format. Delimited and fixed-width file formats are completely customizable according to your AP/ERP system specifications. Files containing more than 10;000 records can be processed .quickly and easily. A new "partial file upload" feature enables files containing both accurate data and some errant or "duplicate" data. to be partially processed, so you can reseazch Page 18 of 24 and correct any errant data without holding up submission of correct data. A convenient data entry service lets you add "one-ofY' issues simply and conveniently. JPMorgan Chase will process the daily checks paid information against the Center's input file and generate an exception report identifying all items that aze either paid without issue on file or do not match the issue file information. JPMorgan Chase delivers exception items daily through our web-based Payables Web Services (PWS) by 11:00 a.m. CT the day fallowing presentment. Prior to the 4:00 p.m. CT decision deadline, the Center must review any exception items to determine whether the items should be paid or returned. The review of all exception items includes a digital image of the front and back of each check. As apart of our Positive Pay service, JPMorgan Chase reviews (scrubs) daily exceptions to ensure that no dollar amount or check number is mis- encoded. We send a daily e-mail notice indicating whether or not there are exceptions for review and decisioning. We provide an embedded URL within the e-mail notice that enables quick and easy access to the JPMorgan ACCESS logon screen to get to the PWS Positive Pay exception module to review exception detail with images and-make pay/no pay decisions. Within one hour of receipt of the City's check issued file, JPMorgan Chase will update our teller line systems. When a'check is presented for payment at a Chase teller window, the teller system determines the validity of the check issue prior to payment. Items not found as matching open entries on the issued file will be denied encashment. Positive Pay does not identify altered payee situations and should not be used in lieu of stop payments. It simply identifies discrepancies and permits a determination of whether the exception check should be dishonored or paid. However, included within the JPMorgan Chase Positive Pay product is the ability fo use an optional Payee Verification Service. The Center simply provides each payee name in a 50-character name field (or 100 characters in two lines) as part of your check issue file. With this service, JPMorgan Chase will scan and digitally interrogate each check presented for payment to compaze the payee name on the check to the payee name on file. Payee name exceptions are reported as part of the positive pay exception items, giving the Center a convenient way to review the items and. make a pay or return decision. ~~ Page 19 of 24 We offer full reconciliation, including a list of outstanding items. We can provide a monthly transmission of paid items for a paid or partial reconciliation service. You receive summary information of account activity and detailed information of paid checks, stopped items, and debits and credits. The Center has the option to send information via the following channels: ^ Payables Web Service (PWS) ^ Secure FTP ^ Direct Transmission The standard Full Reconcilement package includes an account statement, balance sheet, paid and outstanding check listings, and a diagnostic summary. JPMorgan Chase will mail your Full Reconciliation package within five business days of the date cve receive final acceptable input. As an alternative to receiving paper Reconciliation reports, the Center's Full Reconciliation package will also be available electronically via Payables Web Services ("PWS"); our Internet-based reconciliation product. Please see Proforma Analysis contained in Exhibit A for pricing 3. Remote Deposit Capture The City would like the ability to tum paper checks into images, prepare an electronic deposit and submit the transmission from a remote location for deposit into the concentrated account. Provide the cost per item, hazdware, installation and training costs for this service. Please refer to Image Deposit Direct (IDD) information above in item number one "Point of Sale Deposit Services" of this section. 4. Payroll Card The City would like to reduce payroll administration costs through a payroll card service. Please provide the entire scope of the banking services that would support this program, including maintenance of cazds, locations of cost free ATMs, etc. along with the cost of this program. The Chase Payroll Cazd provides a cash management service to employers that will increase their direct deposit adoption rate and reduce their payroll processing costs. The employer avoids the cost of producing, handling, and distributing paper payroll checks and the costs associated with canceling and reissuing lost and stolen checks. The Chase Payroll Cazd is an account-based, low-cost solution designed specifically for employees who would like the convenience of direct deposit but do not want to manage a checking account, do not qualify For a Page 20 of 24 ~~- checking account or may be hesitant about the fees and requirements associated with banking services. Employees can easily access their pay at automated teller machines (ATMs) and retail locations. They can also use their Chase Payroll Cazd to make purchases anywhere that accepts Visa debit Cards, including retail stores, restaurants, gas stations, Internet shopping sites and more. Please refer to Attachment E for additional information 5. Lockbox services Please provide the cost of a tum key lock box service for approximately 12,000 utility payments per month. The City would require daily. electronic transmission of payment records. 'Please refer to pricing Proforma for "Retail Lockbox Services with Imaging" in Attachment F. The Bank must be able to receive electronic payments, for customer accounts, from other financial institutions (electronic Lockbox). Electronic Lockbox pricing is included in Attachment F. 6. Merchant Card Services The City accepts credit and debit cards as a method of payment. Please provide the cost of these services that can be provided. A copy of our recent settlement statement is provided. Please refer to Attachment G. IV. - COLLATERAL REQUIREMENT The successful bidder, in order to fully and completely protect the City must deposit and pledge at the Federal Reserve Bank of Dallas-Houston Branch, or other independent third party, "approved securities".having a market value or face amount (whichever is less) equal to 100 percent of the city's funds. This deposit and pledge must be maintained at all times during the term of the contract at 100 percent of-the market value of the City's funds. "Approved securities".include only securities and corresponding safekeeping receipts for: A. United State Government securities: Untied State Government Securities and securities or notes fully guaranteed. by the United States Government as to principal .and interest, including Public Housing Authority Bonds or notes fully and unconditionally guaranteed as to principal and interest by the full faith and credit of the United States: and B. Municipal Bonds ~'C Page 21 of 24 Municipal Bonds issued by a political subdivision in the State of Texas having . a rating by Standard and Poor's Corporation of "BBB" or Moody's Investors services of "Baa" or better. The successful bidder, may substitute approved securities in the pledge accounts so long as the total amount of securities pledged is adequate. Acceptances and releases of pledged securities must be approved by either the City's Finance Director. JPMorgan Chase National Collateral Management Group (KCMG) employs a Bank developed Collateral Management System (CMS), which provides daily monitoring of deposit balances and security value. CMS is reviewed daily (business day) by dedicated Collateral Managers for customer's collateral requirements. Collateral requirements are based upon the end-of--day ledger deposit account (checking, savings, depository CD's) information (plus accrued interest if any), less applicable FDIC coverage, the following business morning from the Bank's deposit system. For example, 7/14/07 end of day deposit information will be received the morning of 7/ 15/07. ' Also on a daily basis, KCMG monitors the market value securities pledged to our customers and compare to total deposits. In the event a market value reduction creates an under-collateralized position; additional. securities will be pledged immediately. JPMorgan Chase Bank NA ("Bank") currently employs the Federal Reserve Bank (°`FRB") as the primary custodian for collateral accounts. The Administrative Reserve Bank ("ARB") that holds the securities for the Bank is the FRB of New York. The FRB district in which a bank is chartered determines the ARB. The FRB of Boston is the Federal Reserve System's, national joint-custody account administrator. Collateral for deposit accounts (checking, savings, depository CD's) will be provided at no charge to the City. Please refer to the Collateral Agreement and. Federal Reserve Bank forms contained in Attachment M. Enclosures: Account Analysis Merchant Card Statement -~'c Page 22 of 24 City of Port Arthur Proposal Attachments 1) .Attachment "A" -Banking Services Proposal (Chase Proforma Analysis) 2) Attachment "B" -Bank Credit Evaluation 3) Attachment "C" -Proposal for Banking Services -General Information (Bid form) 4) Also include the following attachment to your proposal: a) Copy of your most recent audited financial statements. Attachment B. b) Narrative of any other services offered by your bank. Include details of how you feel the service can help the city of Port Arthur and the costs of the service. Please refer to Attachment H for additional services information on Chase At Work, Business Continuity Planning; Document Manager and the State of Texas Procurement Card. , c) Narrative detailing the Bank's Community Reinvestment Act (CRA) as it pertains to City sponsored housing and community development programs. Please refer to Attachment I. d) Narrative commenting on the bank's commitment to the redevelopment efforts of the City of Port Arthur. Please refer to Attachment I. i ~~ Page 23 of24 CONFLICT OF INTEREST STATEMENT Please delineate all owners of your. company. If you have any contractual business relationship or family relationship with any member of the governing body of the City or if you expect this to occur, please so state: JPMorgan Chase Bank; N.A. (the "Bank") is a national banking association 100% of whose stock is held by JPMorgan Chase & Co. a publicly held bank holding company listed on the New York Stock Exchange with stockholders too numerous to list. While it is possible that members of the City Council and/or employees of the City may have personal banking relationships with the Bank, we aze unable to identify each such relationship for purposes of this bid. The Bank is not awaze of any relationship that would have an impact on the award of the bid to the Bank. ~~~~~~~ sign~`~ - ~'~~`'`r ~~ Page 24 of 24