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HomeMy WebLinkAboutRES.2632.07-18-2011BILL NO. 11-114 RESOLUTION NO. o2&�) A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT FOR BANKING SERVICES WITH U.S. BANK NATIONAL ASSOCIATION BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU, MISSOURI, AS FOLLOWS: ARTICLE 1. The City Manager, for and on behalf of the City of Cape Girardeau, Missouri, is hereby authorized to execute a Contract for Banking Services with U.S. Bank National Association, in the City of Cape Girardeau, Missouri. A copy of said Contract is attached to this Resolution and made a part hereof. PASSED AND ADOPTED THIS ATTFgT- DAY OF CJW 20 d Harry E. Rediger, Mayor CONTRACT FOR BANKING SERVICES This Contract for Banking Services (the "Agreement) entered into on the C�,21fd- day of , 2011, by and between U.S. BANK NATIONAL ASSOCIATION, hereinafter referred ,* -as "Bank" and the CITY OF CAPE GIRARDEAU, MISSOURI, hereinafter referred to as "City". 1. The parties hereto agree that Bank will provide basic banking services to the City in accordance with the requirements of the "City of Cape Girardeau Banking Services Request for Proposal", marked Exhibit "A" and attached hereto and incorporated herein by reference as though fully set herein. 2. The parties agree that the City shall provide compensation to Bank for services provided at rates detailed in Bank's response marked Exhibit "B" and attached hereto and incorporated herein by reference as though fully set herein. 3. The parties agree that the Bank will offset an earnings credit against compensation due to the Bank. Credit shall be calculated as if interest were being paid on the City's collected cash balances held by the bank (net of a 10% reserve). The rate of interest will be the greater of the federal funds rate as published in the Wall Street Journal or .35% and calculated on a 365 day basis. 4. The parties agree that the attached documents marked Exhibits "A" and "B" shall constitute the agreement between the parties with respect to the provision of basic banking services to the City. 5. The obligations of the parties pursuant to this Contract shall begin August 1, 2011 and shall continue until June 30, 2013. This Contract shall automatically renew for three (3) additional one (1) year terms, unless terminated by either party at any time upon ninety (90) days written notice to the other party. 6. This Agreement is subject to the provisions of the U.S. Bank Services Terms and Conditions (as the same may be modified from time to time, the "Terms & Conditions") and U.S. Bank's Deposit Account Agreement (as the same may be modified from time to time, the "DAA"), the terms of both the Terms and Conditions and the DAA are incorporated hereby reference. To the extent the terms of this Agreement contradict the terms set forth in the Terms & Conditions or the DAA, the terms of this Agreement shall govern. THIS AGREEMENT shall be binding upon the successors and assigns of the parties. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and 1 Is A&12 SOUTHEAST MISSOURI HOSPITAL year first above written. CITY OF CAPff—GI,RARDEAU, MISSOURI am Meyer, Ci Gayle Conrad, City Clerk U.S. BANK NATIONAL ASSOCIATION haw4) L&t1'C_'6 Laura Whetstone, Vice -President — Government Banking ATTEST: Name and Title of Signer STATE OF MISSOURI ) ) SS COUNTY OF CAPE GIRARDEAU ) On this Jq,�-4 day of2011, before me appeared Scott Meyer, to me personally known, who, being by me duly sworn, did say that he is the City Manager of the City of Cape Girardeau, Missouri, a Municipal Corporation of the State of Missouri, and that the seal affixed to the foregoing instrument is the seal of said City and that the said instrument was signed and sealed in behalf of the City by authority of its City Council and acknowledged said instrument to be the free act and deed of the City. 2 IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal, at my office in Cape Girardeau, Missouri, the day and year first above written. My Commission Expires: August 4, 2011 STATE OF MISSOURI ) L okl s ) SS. c -A-" LaDonna Laub, Notary Public On this ZCP day of TW I , 2011, before me appeared Laura Whetstone, to me personally known, who, being by me duly sworn, did say that she is the Vice -President — Government Banking of U. S. Bank National Association, a national banking corporation, and that the instrument was signed in behalf of the U. S. Bank National Association and acknowledged said instrument to be the free act and deed of U. S. Bank National Association. IN TESTIMONY WHEREOF, I, have hereunto set my hand and affixed my official seal at my office the day and year first above -written. My Commission Expires: Notary Public 3 awa R. EDWON ft" PuW 416fty 5W wr of INNOW. "M Le" Cf► COMMM" a 113f 111 Jun 5, 2015 LADONNA LAUB ,moo.• ' ' •G�,, NOTARY My Commission Expires * ; : , : 9 . SEAL ._ August 4, 2011 Scott County Commission #07462254 On this ZCP day of TW I , 2011, before me appeared Laura Whetstone, to me personally known, who, being by me duly sworn, did say that she is the Vice -President — Government Banking of U. S. Bank National Association, a national banking corporation, and that the instrument was signed in behalf of the U. S. Bank National Association and acknowledged said instrument to be the free act and deed of U. S. Bank National Association. IN TESTIMONY WHEREOF, I, have hereunto set my hand and affixed my official seal at my office the day and year first above -written. My Commission Expires: Notary Public 3 awa R. EDWON ft" PuW 416fty 5W wr of INNOW. "M Le" Cf► COMMM" a 113f 111 Jun 5, 2015 EXHIBIT A Services requested in the Agreement with the selected banking institution. Please provide concurrence and any additional pricing requirements, if not included on pricing grid contained in this RFP: 1. Collateralization of all funds in the Accounts per state statute. U.S. Bank will secure all the City of Cape Girardeau's funds in accordance with Missouri state statutes. At no time will the market value of the securities pledged be less than 100% of the amount on deposit less the maximum insurance provided by the Federal Deposit Insurance Corporation (FDIC). All collateral pledged to the City for their deposits will be maintained at the Federal Reserve Bank of Cleveland, Ohio, acting as Trustee. FDIC pass through rates would apply. As you may be aware, the FDIC sets the assessment rates (fees). Fees have increased dramatically over the past year due to the number of bank failures across the country. The assessment is currently $0.12117 per $1000. U.S. Bank will continue to try to mitigate these fees to our customers as much as is possible. Changes in FDIC Deposit Insurance Coverage November 9, 2010 On November 9, 2010, the FDIC issued a Final Rule implementing section 343 of the Dodd -Frank Wall Street Reform and Consumer Protection Act that provides for unlimited insurance coverage of noninterest -bearing transaction accounts. Beginning December 31, 2010, through December 31, 2012, all noninterest -bearing transaction accounts are fully insured, regardless of the balance of the account, at all FDIC -insured institutions. The unlimited insurance coverage is available to all depositors, including consumers, businesses, and government entities. This unlimited insurance coverage is separate from, and in addition to, the insurance coverage provided to a depositor's other deposit accounts held at an FDIC -insured institution. A noninterest -bearing transaction account is a deposit account where interest is neither accrued nor paid; depositors are permitted to make an unlimited number of transfers and withdrawals; and the bank does not reserve the right to require advance notice of an intended withdrawal. Please note that Money Market Deposit Accounts (MMDAs) and Negotiable Order of Withdrawal (NOW) accounts are not eligible for this unlimited insurance coverage, regardless of the interest rate, even if no interest is paid on the account. FDIC Deposit Insurance Coverage http://www.fdic. og v/deposit/deposits/dis/index.html 2. Electronic receipt of monthly bank statements and analysis statements. Access all of your bank and analysis statement electronically with our SinglePoine Information Reporting. The City's bank statements are available the 2nd business day of the month and the analysis statement is available the 9d' business day. 3. On-line access to all bank accounts and related detail balance activity, both current day and prior day. ® U.S. BANK City of Cape Girardeau I page 3 EXHIBIT A SinglePoint® is U.S. Bank's integrated "multi -product" online portal offering a one-stop business solution to optimize efficiency of financial reporting and management, enhancing City of Cape Girardeau's ability to effectively manage its financial position. SinglePoint is browser -based, therefore, no additional software is required. In general, SinglePoint is tested and certified for Windows environments and its suite of services provides the ability to: SinglePointi Funds post in real-time to U.S. Bank account(s) Check images are available by 7:OOa.m. local time the day after they are paid Report Filters can be saved and shared with other users Sorting of information in reports can speed searches or allow users to bypass searching by selected or entered values Transfer Funds feature allows users to initiate a book transfer directly from the list ages for Previous Day and Current Day transactions Standard Stop Payment term of 12 months can be changed to 6 or 24 months A Stop Payment can be revoked online 4. On-line access for the processing of wire transfers, internal transfers, stop payments, check and deposit images. One product that we highly recommend is SinglePoint® Information Reporting which will continue to enable the City to view account and transaction detail information online. SinglePoint® Information Reporting addresses these needs, giving greater insight into the daily cash flow. Information Reporting B°° ns nt»� �? Tf tls.� n�itlaflon ; �- ;. kWn �` b rtrya INN ss�uen�� I- °Spada epo�naccess steI nZ KIM lesgiairt im {.' lnitlat�0n Monitor account activity and access reports 5. Provide partial account reconciliation and positive pay services. If there is a separate charge for positive pay, please indicate additional cost of service below: U.S. Bank is pleased to continue to offer the City Partial Account Reconciliation with Positive Pay. We have combined these services to allow for additional costs savings to the City. 6. Provide monthly CD Rom of all cleared checks. 0 U.S. BANK City of Cape Girardeau I page 4 EXHIBIT A U.S. Bank offers services that enable the City of Cape Girardeau to continue to retrieve and review sharp, detailed images of paid checks from your PC or from the Internet. Image services address these needs and allow you to enjoy superior image quality as checks are automatically imaged at statement cutoff cycle. Image Archive Image Archive enables you to retrieve and review images of all paid checks from a desktop PC, via CD- ROM. This product provides a simple solution to boost productivity, reduce research time, and improve customer service. Increase efficiency - Eliminate the manual processes associated with storing, accessing and copying paper documents - CD-ROM can contain 18,000-20,000 business -sized check images - Reduce the time and costs related to searching for and retrieving checks - Efficient access to check images allows you to respond to customer and vendor inquiries more quickly - The viewing software is placed directly on the image CD- ROM's delivered to you, making implementation and future software upgrades much easier to manage Flexibility - Formatting features allow you to enlarge and flip the image to view specific areas of the check more easily and in greater detail - Search for items by check numbers, amounts, paid dates, sequence numbers, account numbers or routing transit numbers. Searching capabilities allow you to search for individual items or a range of items. Security - Access to Image Archive is protected by requiring a username and password - Access to check images is controlled by the administrator, who determines system users and levels of access 7. Processing direct deposit transactions for employee payroll. SinglePoint® ACH is the full-service application that creates, stores, and originates ACH transactions from any location at any time, enabling City of Cape Girardeau to originate ACH transactions online through a Web browser. Receiver authorizes Originator RDFI makes funds Ori;,wlor fomards available and report transaction data to on statement ODFI ACH ACH Operator distributes ACH filet to RD F I ODFI sort% and transmits rile to ACH Operator 1V U.S. BANK City of Cape Girardeau I page 5 U.S. Bank accepts and processes PPD payroll files for next day credit. However, in accordance with NACHA rules, the receiving institution is required to make funds available to the City's employees at the opening of business the next day. U.S. Bank strongly suggests that the City send their payroll file two days prior to the effective date by 10:00 p.m. CT to ensure their employees are paid timely. Additionally, U.S. Bank accepts and processes same-day effective dated files originated through SinglePoint ACH services for transactions exclusively between U.S. Bank accounts. 8. Invest excess funds in the Accounts on a daily basis. Indicate if funds will be kept in an interest- bearing account or swept from the Operating Account into a Master Repurchase Investment. If there is an additional charge for the "sweep," please indicate the additional cost of this service below and if daily notification of balances in the "sweep" account will be required. (The City expects to maintain $1.0 million average balance in the Accounts.) A daily advice with the following information will be provided for all Repurchase transactions: a. Date. b. Amount of purchase or sale. c. Beginning and ending amount of Repurchase Agreement. d. Interest rate earned that day. e. Account interest was deposit to. f. Collateral list comprised of a description of the securities, market price, and market value. U.S. Bank will provide the City with non-interest bearing accounts providing an earnings credit to offset fees. Currently the City is provided with an interest rate of Targeted Fed Funds minus .10 basis points (currently .15). The interest earned on the balances maintained in the accounts does not provide enough to offset the fees. Therefore we are proposing an earnings credit rate of Targeted Fed Funds Flat with a floor of .35 basis points. We will also work with the City to assist in investing any additional funds or the City may utilize other sources for investment. 9. Immediate notification of debit and credit memo type transactions produced daily. Please specify if this information is electronically available and your method and timeframe by which the City will be notified. Credit and debit memo transactions will be available online via SinglePoint at the time entered into our system. 10. The Bank shall provide the following detailed information relating to how the Bank will invest the City's float funds. Describe the indicator the Bank will use in determining the interest paid on all City accounts. U.S. Bank will provide a rate of Targeted Fed Funds flat with a floor rate of .35 on an earnings credit. Spread to Fed Funds Rate (+/-) W U.S. BANK City of Cape Girardeau I page 6 EXHIBIT A Interest Basis (e.g., 30/360) 11. Describe the safekeeping arrangement for the investments held for collateralization. Preference will be given to Banks that require the collateral to be held and valued by third parties. All collateral pledged to the City of Cape Girardeau will continue to be maintained at the Federal Reserve Bank of Cleveland, Ohio, acting as Trustee. 12. Describe the type of securities that will be held as collateral. The collateral pledged will consist of U.S. Government Agency Mortgage Backed Securities as specified by Missouri State Statute. 13. Is a minimum balance required? If yes, please state amount and penalties for falling below minimum balance. U.S. Bank does not require minimum balances any of the accounts in relation to the City. If there are not sufficient earnings credit to offset service charges the account would be directly debited for the fees. 14. Is there a maximum balance allowed in account? If yes, please state amount and penalties for exceeding maximum balance allowed. No, there is not a maximum balance allowed for the City. 15. Describe your procedures for handling overdrafts. U.S. Bank will continue to notify the City of any overdrafts prior to a decision to return or pay the item. Thus, allowing the City to transfer funds to make the items payable. 16. Please provide the Bank's check -clearing method and policy for checks that are drawn on other than local banks to identify the time it will take for the deposited funds to become collected and available for investment. Please review this proposal for our Enhanced Cash Management Availability Schedule currently utilized by the City. 17. Is the bank interested in bidding on certificates of deposits or other forms of investments when excess funds become available? If yes, provide the contact person and phone number for securing quotes: If allowed per the City's investment policy, U.S. Bank would be pleased to offer the option of one way sells within the CDAR's program as alternative investment option with Certificates of Deposit. We also have available additional options for the City's investments. Please contact: Brian Schell is a Vice President of Institutional Sales with U. S. Bank's Treasury Division — Money Center Department. He brings with over 10 years experience in fixed income securities. He can be reached at 800-944-9914. 18. The City accepts credit and debit cards (at point of sale only) for payment of residential and commercial services at various locations including our website. During the past fiscal year, W U.S. BANK CiV of Cape Girardeau I page 7 EXHIBIT A approximately $17,000.00 in credit card fees was paid by the City while accepting Visa, MasterCard and Discover Card. Please state whether your institution offers merchant processing, including discount, transactions fees and costs for these services. Please see the attached Merchant Card Processing proposal. 19. Describe any miscellaneous fees or charges not previously disclosed. All the fees for this proposal can be found in the pricing schedule included. ® U.S. BANK City of Cape Girardeau I page 8 EXHIBIT "B" PROPOSEDFEES SERVICE Depository Services: Account Maintenance Paper Credits Electronic Credits Paper Debits Electronic Dedits Deposited Item - On -US Deposited Item - Local Deposited Item - Regional Deposited Item - Transit Returned Deposited Items Account Inquiry Manual Stop Payment -6 Months Snapshot Statement/Copy Account Reconcilement Services Partial Reconciliation/POS Pay Maint Partial Reconciliation/POS Pay -Per Item Confirmation of input file -Per File Recon Printing/Mailing Fee File Confirmation Per Email Transmission Output (PAID CHECK FILE) Transmissn Per Item (PAID CHECK FILE) ON-LINE BANKING Previous Day Detail -Acct First Account (OPERATING) Next (PAYROLL) Previous Day Per Item Det Previous Day Per Item Sum Account Analysis Report Monthly DDA Statement ACH Return and NOC Report First Next ACH Received Item Report ACH Item Reported on above Security Token Monthly Maintenance Book Transfer Monthly Maintenance Book Transfer -Per Transfer Stop Payment Monthly Maintenance Stop Payments -Per Stop ACH Monthly Maintenance Wires Monthly Maintenance Positive Pay Monthly Maint Wire Transfers Wire Monthly Pin Maintenance Incoming Fedwire Internal Wire Credit Voice Fedwire Non -Repetitive On-line Fedwire Non -Repetitive TOTAL VOLUME CALENDAR UNIT ANNUAL YEAR 2010 COSTS COST 60 2.400 144.00 2,701 0.080 216.08 416 0.050 20.80 15,546 0.080 1,243.68 740 0.050 37.00 20,806 0.055 1,144.33 31,276 0.055 1,720.18 42,169 0.055 2,319.30 43,275 0.055 2,380.13 331 1.000 331.00 1 0.000 - 2 30.000 60.00 1 8.000 8.00 24 15.000 360.00 14,315 0.030 429.45 138 1.000 138.00 24 0.000 - 7 0.000 - 24 10.000 240.00 14,266 0.030 427.98 12 50.000 600.00 12 12.000 144.00 21,325 0.020 426.50 6,048 0.020 120.96 12 10.000 120.00 24 4.000 96.00 12 5.000 60.00 12 - 12 20.000 240.00 2,861 0.000 - 60 3.000 180.00 12 0.000 - 53 0.200 10.60 12 0.000 - 5 13.000 65.00 12 25.000 300.00 12 10.000 120.00 24 0.000 - 12 0.000 - 108 11.000 1,188.00 1 3.000 3.00 6 23.000 138.00 74 8.000 592.00 EXHIBIT "B" PROPOSED FEES Treasury Services Clearance Vs Pmt -Fed Reserve 4 40.000 160.00 Safekeeping Acct Maintenance 12 20.000 240.00 Montly charge per security held 25 2.000 50.00 Miscellaneous Fees 1,000 - Please input the FDIC assessment that will be passed through each year based on a $1,000,000 avergage balance 1,449.00 Total estimated annual costs 24,282.59 'FDIC assessment is based on May 2011 calculation. TOTAL VOLUME CALENDAR UNIT ANNUAL SERVICE YEAR 2010 COSTS COST Zero Balance Accounts ZBA Lead 12 5.000 60.00 ZBA Subsidiary 12 5.000 60.00 Image Services Monthly Maintenance - Per Acct 48 5.000 240.00 Image Archive Per Check Image 15,539 0.020 310.78 Image Archive - Per CD-ROM 12 10.000 120.00 Web Images Retrieved 9 2.500 22.50 ACH Service ACH Originated Addenda Item 54 0.020 1.08 ACH Received Item 2,867 0.030 86.01 ACH Received Addenda item 3,145 0.020 62.90 ACH Filter Monity Maint 9 17.000 153.00 ACH Return/NOC Electronic 61 0.000 - ACH Item Adjustment Request 11 15.000 165.00 On-line ACH On -US Item 4,490 0.070 314.30 On-line ACH Transit Item 25,982 0.070 1,818.74 On-line ACH Process Run 89 2.000 178.00 On-line ACH Return Item 55 3.000 165.00 On-line ACH NOC Item 6 3.000 18.00 Coin and Currency Services Cash Deposited -Per $100 29,105 0.100 2,910.50 Coin Deposited -Per Roll 153 0.070 10.71 Loose Mixed Coin Dep -Per Bag 3 10.000 30.00 Night Dep Processing -Per Dep 812 0.000 - Currency Ordered -Per Strap 4 0.700 2.80 Loose Currency Ordered -Per $100 29 0.080 2.32 Coin Rolls Ordered -Per Roll 39 0.140 5.46 Standard Chng Order -Per Order 15 1.500 22.50 Treasury Services Clearance Vs Pmt -Fed Reserve 4 40.000 160.00 Safekeeping Acct Maintenance 12 20.000 240.00 Montly charge per security held 25 2.000 50.00 Miscellaneous Fees 1,000 - Please input the FDIC assessment that will be passed through each year based on a $1,000,000 avergage balance 1,449.00 Total estimated annual costs 24,282.59 'FDIC assessment is based on May 2011 calculation. CONTRACT FOR BANKING SERVICES This Contract for Banking Services (the "Agreement) entered into on the ,--;06- day of ` 2011, by and between U.S. BANK NATIONAL ASSOCIATION, hereinafter referre o as "Bank" and the CITY OF CAPE GIRARDEAU, MISSOURI, hereinafter referred to as "City". 1. The parties hereto agree that Bank will provide basic banking services to the City in accordance with the requirements of the "City of Cape Girardeau Banking Services Request for Proposal", marked Exhibit "A" and attached hereto and incorporated herein by reference as though fully set herein. 2. The parties agree that the City shall provide compensation to Bank for services provided at rates detailed in Bank's response marked Exhibit "B" and attached hereto and incorporated herein by reference as though fully set herein. 3. The parties agree that the Bank will offset an earnings credit against compensation due to the Bank. Credit shall be calculated as if interest were being paid on the City's collected cash balances held by the bank (net of a 10% reserve). The rate of interest will be the greater of the federal funds rate as published in the Wall Street Journal or .35% and calculated on a 365 day basis. 4. The parties agree that the attached documents marked Exhibits "A" and "B" shall constitute the agreement between the parties with respect to the provision of basic banking services to the City. 5. The obligations of the parties pursuant to this Contract shall begin August 1, 2011 and shall continue until June 30, 2013. This Contract shall automatically renew for three (3) additional one (1) year terms, unless terminated by either party at any time upon ninety (90) days written notice to the other party. 6. This Agreement is subject to the provisions of the U.S. Bank Services Terms and Conditions (as the same may be modified from time to time, the "Terms & Conditions") and U.S. Bank's Deposit Account Agreement (as the same may be modified from time to time, the "DAA"), the terms of both the Terms and Conditions and the DAA are incorporated hereby reference. To the extent the terms of this Agreement contradict the terms set forth in the Terms & Conditions or the DAA, the terms of this Agreement shall govern. THIS AGREEMENT shall be binding upon the successors and assigns of the parties. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and �Gt;1 11, VOAR- �7 L� 1 year first above written. tin IN W rA Conrad, City Clerk ATTEST: Name and Title of Signer �SSif f By r STATE OF MISSOURI ) ) SS COUNTY OF CAPE GIRARDEAU ) I CITY OF Meyer, Cj U, MISSOURI U.S. BANK NATIONAL ASSOCIATION )C'X_e� L.tJ Laura Whetstone, Vice -President — Government Banking On this 1 14 44 day of -3 c. c_V , 2011, before me appeared Scott Meyer, to me personally known, who, being by me duly sworn, did say that he is the City Manager of the City of Cape Girardeau, Missouri, a Municipal Corporation of the State of Missouri, and that the seal affixed to the foregoing instrument is the seal of said City and that the said instrument was signed and sealed in behalf of the City by authority of its City Council and acknowledged said instrument to be the free act and deed of the City. 2 IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal, at my office in Cape Girardeau, Missouri, the day and year first above written. My Commission Expires: August 4, 2011 STATE OF MISSOURI ) L ) SS. AU ) a onna Laub, Notary Public PBG LADONNALAUB = NOTARY My Commission Expires August 4, 2011 ,' . SEAL :z 9�OFM�'o; I, Scott Countyom Cmission#07462254 On this Z (, day ofu , 2011, before me appeared Laura Whetstone, to me personally known, who, bein by me duly sworn, did say that she is the Vice -President — Government Banking of U. S. Bank National Association, a national banking corporation, and that the instrument was signed in behalf of the U. S. Bank National Association and acknowledged said instrument to be the free act and deed of U. S. Bank National Association. IN TESTIMONY WHEREOF, 1, have hereunto set my hand and affixed my official seal at my office the day and year first above -written. My Commission Expires: Notary Public 3 DAWN A. EDWARN Notary Pubk440 sry SW Stall of Missouri. S&IM Louis Cky coffWasion 0113N307 My Commission Expires Jun 5, 2015 EXHIBIT A Services requested in the Agreement with the selected bankinIz institution. Please provide concurrence and any additional pricing requirements, if not included on pricing grid contained in this RFP: 1. Collateralization of all funds in the Accounts per state statute. U.S. Bank will secure all the City of Cape Girardeau's funds in accordance with Missouri state statutes. At no time will the market value of the securities pledged be less than 100% of the amount on deposit less the maximum insurance provided by the Federal Deposit Insurance Corporation (FDIC). All collateral pledged to the City for their deposits will be maintained at the Federal Reserve Bank of Cleveland, Ohio, acting as Trustee. FDIC pass through rates would apply. As you may be aware, the FDIC sets the assessment rates (fees). Fees have increased dramatically over the past year due to the number of bank failures across the country. The assessment is currently $0.12117 per $1000. U.S. Bank will continue to try to mitigate these fees to our customers as much as is possible. Changes in FDIC Deposit Insurance Coverage November 9, 2010 On November 9, 2010, the FDIC issued a Final Rule implementing section 343 of the Dodd -Frank Wall Street Reform and Consumer Protection Act that provides for unlimited insurance coverage of noninterest -bearing transaction accounts. Beginning December 31, 2010, through December 31, 2012, all noninterest -bearing transaction accounts are fully insured, regardless of the balance of the account, at all FDIC -insured institutions. The unlimited insurance coverage is available to all depositors, including consumers, businesses, and government entities. This unlimited insurance coverage is separate from, and in addition to, the insurance coverage provided to a depositor's other deposit accounts held at an FDIC -insured institution. A noninterest -bearing transaction account is a deposit account where interest is neither accrued nor paid; depositors are permitted to make an unlimited number of transfers and withdrawals; and the bank does not reserve the right to require advance notice of an intended withdrawal. Please note that Money Market Deposit Accounts (MMDAs) and Negotiable Order of Withdrawal (NOW) accounts are not eligible for this unlimited insurance coverage, regardless of the interest rate, even if no interest is paid on the account. FDIC Deposit Insurance Coverage hltp://www.fdic.gov/deposit/deposits/dis/index.html 2. Electronic receipt of monthly bank statements and analysis statements. Access all of your bank and analysis statement electronically with our SinglePoine Information Reporting. The City's bank statements are available the 2"a business day of the month and the analysis statement is available the 9`h business day. 3. On-line access to all bank accounts and related detail balance activity, both current day and prior day. W U.S. BANK City of Cape Girardeau I page 3 EXHIBIT A SinglePoint® is U.S. Bank's integrated "multi -product" online portal offering a one-stop business solution to optimize efficiency of financial reporting and management, enhancing City of Cape Girardeau's ability to effectively manage its financial position. SinglePoint is browser -based, therefore, no additional software is required. In general, SinglePoint is tested and certified for Windows environments and its suite of services provides the ability to: SinglePoint Funds post in real-time to U.S. Bank account(s) Check images are available by 7:OOa.m. local time the day after they are paid Report Filters can be saved and shared with other users Sorting of information in reports can speed searches or allow users to bypass searching by selected or entered values Transfer Funds feature allows users to initiate a book transfer directly from the list ages for Previous Day and Current Day transactions Standard Stop Payment term of 12 months can be changed to 6 or 24 months 7 Stop Payment can be revoked online 4. On-line access for the processing of wire transfers, internal transfers, stop payments, check and deposit images. One product that we highly recommend is SinglePoint® Information Reporting which will continue to enable the City to view account and transaction detail information online. SinglePoint® Information Reporting addresses these needs, giving greater insight into the daily cash flow. Singleftint@ Information Reporting Boofcansfetop M Payments'` rus ting �uYI(e In�tia��o„na� v rsx o7ltr'� y11 SSatne aT� W11 -1, 3S• ` dm tn�s troVtes G Ilniti i� n 11-5 gi , -Se D,,X cn` t SE C e� - et s Monitor account activity and access reports 5. Provide partial account reconciliation and positive pay services. If there is a separate charge for positive pay, please indicate additional cost of service below: U.S. Bank is pleased to continue to offer the City Partial Account Reconciliation with Positive Pay. We have combined these services to allow for additional costs savings to the City. 6. Provide monthly CD Rom of all cleared checks. 0 U.S. BANK City of Cape Girardeau I page 4 EXHIBIT A U.S. Bank offers services that enable the City of Cape Girardeau to continue to retrieve and review sharp, detailed images of paid checks from your PC or from the Internet. Image services address these needs and allow you to enjoy superior image quality as checks are automatically imaged at statement cutoff cycle. Image Archive Image Archive enables you to retrieve and review images of all paid checks from a desktop PC, via CD- ROM. This product provides a simple solution to boost productivity, reduce research time, and improve customer service. Increase efficiency - Eliminate the manual processes associated with storing, accessing and copying paper documents - CD-ROM can contain 18,000-20,000 business -sized check images - Reduce the time and costs related to searching for and retrieving checks - Efficient access to check images allows you to respond to customer and vendor inquiries more quickly - The viewing software is placed directly on the image CD- ROM's delivered to you, making implementation and future software upgrades much easier to manage Flexibility - Formatting features allow you to enlarge and flip the image to view specific areas of the check more easily and in greater detail - Search for items by check numbers, amounts, paid dates, sequence numbers, account numbers or routing transit numbers. Searching capabilities allow you to search for individual items or a range of items. Security - Access to Image Archive is protected by requiring a username and password - Access to check images is controlled by the administrator, who determines system users and levels of access 7. Processing direct deposit transactions for employee payroll. SinglePoint® ACH is the full-service application that creates, stores, and originates ACH transactions from any location at any time, enabling City of Cape Girardeau to originate ACH transactions online through a Web browser. Receiver authorizes originator RDFJ makes funds Originator for-Aards available and report transaction data to on statement ODF1 ACH ACH Operator distributes ACH file to RDFI oDFI sorts and :. transmits rile to ACHam Operator 0 U.S. BANK City of Cape Girardeau I page 5 EXHIBIT A U.S. Bank accepts and processes PPD payroll files for next day credit. However, in accordance with NACHA rules, the receiving institution is required to make funds available to the City's employees at the opening of business the next day. U.S. Bank strongly suggests that the City send their payroll file two days prior to the effective date by 10:00 p.m. CT to ensure their employees are paid timely. Additionally, U.S. Bank accepts and processes same-day effective dated files originated through SinglePoint ACH services for transactions exclusively between U.S. Bank accounts. 8. Invest excess funds in the Accounts on a daily basis. Indicate if funds will be kept in an interest- bearing account or swept from the Operating Account into a Master Repurchase Investment. If there is an additional charge for the "sweep," please indicate the additional cost of this service below and if daily notification of balances in the "sweep" account will be required. (The City expects to maintain $1.0 million average balance in the Accounts.) A daily advice with the following information will be provided for all Repurchase transactions: a. Date. b. Amount of purchase or sale. c. Beginning and ending amount of Repurchase Agreement. d. Interest rate earned that day. e. Account interest was deposit to. f. Collateral list comprised of a description of the securities, market price, and market value. U.S. Bank will provide the City with non-interest bearing accounts providing an earnings credit to offset fees. Currently the City is provided with an interest rate of Targeted Fed Funds minus .10 basis points (currently .15). The interest earned on the balances maintained in the accounts does not provide enough to offset the fees. Therefore we are proposing an earnings credit rate of Targeted Fed Funds Flat with a floor of .35 basis points. We will also work with the City to assist in investing any additional funds or the City may utilize other sources for investment. 9. Immediate notification of debit and credit memo type transactions produced daily. Please specify if this information is electronically available and your method and timeframe by which the City will be notified. Credit and debit memo transactions will be available online via SinglePoint at the time entered into our system. 10. The Bank shall provide the following detailed information relating to how the Bank will invest the City's float funds. Describe the indicator the Bank will use in determining the interest paid on all City accounts. U.S. Bank will provide a rate of Targeted Fed Funds flat with a floor rate of .35 on an earnings credit. Spread to Fed Funds Rate (+/-) W U.S. BANK City of Cape Girardeau I page 6 EXHIBIT A Interest Basis (e.g., 30/360) 11. Describe the safekeeping arrangement for the investments held for collateralization. Preference will be given to Banks that require the collateral to be held and valued by third parties. All collateral pledged to the City of Cape Girardeau will continue to be maintained at the Federal Reserve Bank of Cleveland, Ohio, acting as Trustee. 12. Describe the type of securities that will be held as collateral. The collateral pledged will consist of U.S. Government Agency Mortgage Backed Securities as specified by Missouri State Statute. 13. Is a minimum balance required? If yes, please state amount and penalties for falling below minimum balance. U.S. Bank does not require minimum balances any of the accounts in relation to the City. If there are not sufficient earnings credit to offset service charges the account would be directly debited for the fees. 14. Is there a maximum balance allowed in account? If yes, please state amount and penalties for exceeding maximum balance allowed. No, there is not a maximum balance allowed for the City. 15. Describe your procedures for handling overdrafts. U.S. Bank will continue to notify the City of any overdrafts prior to a decision to return or pay the item. Thus, allowing the City to transfer funds to make the items payable. 16. Please provide the Bank's check -clearing method and policy for checks that are drawn on other than local banks to identify the time it will take for the deposited funds to become collected and available for investment. Please review this proposal for our Enhanced Cash Management Availability Schedule currently utilized by the City. 17. Is the bank interested in bidding on certificates of deposits or other forms of investments when excess funds become available? If yes, provide the contact person and phone number for securing quotes: If allowed per the City's investment policy, U.S. Bank would be pleased to offer the option of one way sells within the CDAR's program as alternative investment option with Certificates of Deposit. We also have available additional options for the City's investments. Please contact: Brian Schell is a Vice President of Institutional Sales with U. S. Bank's Treasury Division — Money Center Department. He brings with over 10 years experience in fixed income securities. He can be reached at 800-944-9914. 18. The City accepts credit and debit cards (at point of sale only) for payment of residential and commercial services at various locations including our website. During the past fiscal year, 0 U.S. BANK Gly of Cape Girardeau I page 7 EXHIBIT A approximately $17,000.00 in credit card fees was paid by the City while accepting Visa, MasterCard and Discover Card. Please state whether your institution offers merchant processing, including discount, transactions fees and costs for these services. Please see the attached Merchant Card Processing proposal. 19. Describe any miscellaneous fees or charges not previously disclosed. All the fees for this proposal can be found in the pricing schedule included. W U.S. BANK City of Cape Girardeau I page 8 EXHIBIT "B" PROPOSEDFEES SERVICE Depository Services: Account Maintenance Paper Credits Electronic Credits Paper Debits Electronic Dedits Deposited Item - On -US Deposited Item - Local Deposited Item - Regional Deposited Item - Transit Returned Deposited Items Account Inquiry Manual Stop Payment -6 Months Snapshot Statement/Copy Account Reconcilement Services Partial Reconciliation/POS Pay Maint Partial Reconciliation/POS Pay -Per Item Confirmation of input file -Per File Recon Printing/Mailing Fee File Confirmation Per Email Transmission Output (PAID CHECK FILE) Transmissn Per Item (PAID CHECK FILE) ON-LINE BANKING Previous Day Detail -Acct First Account (OPERATING) Next (PAYROLL) Previous Day Per Item Det Previous Day Per Item Sum Account Analysis Report Monthly DDA Statement ACH Return and NOC Report First Next ACH Received Item Report ACH Item Reported on above Security Token Monthly Maintenance Book Transfer Monthly Maintenance Book Transfer -Per Transfer Stop Payment Monthly Maintenance Stop Payments -Per Stop ACH Monthly Maintenance Wires Monthly Maintenance Positive Pay Monthly Maint Wire Transfers Wire Monthly Pin Maintenance Incoming Fedwire Internal Wire Credit Voice Fedwire Non -Repetitive On-line Fedwire Non -Repetitive TOTAL VOLUME CALENDAR UNIT ANNUAL YEAR 2010 COSTS COST 60 2.400 144.00 2,701 0.080 216.08 416 0.050 20.80 15,546 0.080 1,243.68 740 0.050 37.00 20,806 0.055 1,144.33 31,276 0.055 1,720.18 42,169 0.055 2,319.30 43,275 0.055 2,380.13 331 1.000 331.00 1 0.000 - 2 30.000 60.00 1 8.000 8.00 24 15.000 360.00 14,315 0.030 429.45 138 1.000 138.00 24 0.000 - 7 0.000 - 24 10.000 240.00 14,266 0.030 427.98 12 50.000 600.00 12 12.000 144.00 21,325 0.020 426.50 6,048 0.020 120.96 12 10.000 120.00 24 4.000 96.00 12 5.000 60.00 12 - 12 20.000 240.00 2,861 0.000 - 60 3.000 180.00 12 0.000 - 53 0.200 10.60 12 0.000 - 5 13.000 65.00 12 25.000 300.00 12 10.000 120.00 24 0.000 - 12 0.000 - 108 11.000 1,188.00 1 3.000 3.00 6 23.000 138.00 74 8.000 592.00 EXHIBIT "B" PROPOSEDFEES Treasury Services Clearance Vs Pmt -Fed Reserve 4 40.000 160.00 Safekeeping Acct Maintenance 12 20.000 240.00 Montly charge per security held 25 2.000 50.00 Miscellaneous Fees 1,000 - Please input the FDIC assessment that will be passed through each year based on a $1,000,000 avergage balance 1,449.00 Total estimated annual costs 24,282.59 *FDIC assessment is based on May 2011 calculation. TOTAL VOLUME CALENDAR UNIT ANNUAL SERVICE YEAR 2010 COSTS COST Zero Balance Accounts ZBA Lead 12 5.000 60.00 ZBA Subsidiary 12 5.000 60.00 Image Services Monthly Maintenance - Per Acct 48 5.000 240.00 Image Archive Per Check Image 15,539 0.020 310.78 Image Archive - Per CD-ROM 12 10.000 120.00 Web Images Retrieved 9 2.500 22.50 ACH Service ACH Originated Addenda Item 54 0.020 1.08 ACH Received Item 2,867 0.030 86.01 ACH Received Addenda item 3,145 0.020 62.90 ACH Filter Monity Maint 9 17.000 153.00 ACH Retum/NOC Electronic 61 0.000 - ACH Item Adjustment Request 11 15.000 165.00 On-line ACH On -US Item 4,490 0.070 314.30 On-line ACH Transit Item 25,982 0.070 1,818.74 On-line ACH Process Run 89 2.000 178.00 On-line ACH Return Item 55 3.000 165.00 On-line ACH NOC Item 6 3.000 18.00 Coin and Currency Services Cash Deposited -Per $100 29,105 0.100 2,910.50 Coin Deposited -Per Roll 153 0.070 10.71 Loose Mixed Coin Dep -Per Bag 3 10.000 30.00 Night Dep Processing -Per Dep 812 0.000 - Currency Ordered -Per Strap 4 0.700 2.80 Loose Currency Ordered -Per $100 29 0.080 2.32 Coin Rolls Ordered -Per Roll 39 0.140 5.46 Standard Chng Order -Per Order 15 1.500 22.50 Treasury Services Clearance Vs Pmt -Fed Reserve 4 40.000 160.00 Safekeeping Acct Maintenance 12 20.000 240.00 Montly charge per security held 25 2.000 50.00 Miscellaneous Fees 1,000 - Please input the FDIC assessment that will be passed through each year based on a $1,000,000 avergage balance 1,449.00 Total estimated annual costs 24,282.59 *FDIC assessment is based on May 2011 calculation.