HomeMy WebLinkAbout3429
Vendor
Subject
Department
Status Code
Amount
Begin Date
End Date
Review Date
Insurance
Comments
3429
Contract Number
BANK OF AMERICA
Banking Services
Finance
(formerly SEAFIRST)
PRO
File Class
LEG 12-1
$
10/01/1992
06/30/2006
02/15/2008
GL $
AL $
E&O $
Insurance Total $
Insurance Review Date
1 yr extension - 6/05
Vault 01/01/2008
BankofAmerica ~
~
Tana Aardal
Senior Vice President
Bank of America
Public Sector Banking
WAl-501- 34-03
800 5th Avenue, 34th Floor
Seattle, WA 98104
Tel 206.358.8935
Fax 206.358.8818
tana. r. aardal@bankofamerica.com
June 8, 2005
Laura Lyon, Director of Financial Services
City of Bremerton
345 6th Street, 6th floor
Bremerton, W A 98337
Re: Banking Services Agreement Extension
Dear Laura:
Bank of America is happy to extend the Banking Services Agreement with the City of Bremerton's
concurrence effective with this letter for one (1) additional year from June 30, 2005, to June 30, 2006.
The same terms and conditions that were established in the original Banking Services Contract dated
continue to remain in effect. There are no other changes in the terms or conditions. Please sign and
return one original and keep the second one for your records.
You will be pleased to notice that most service costs remain the same, and some actually declined due to
recent technology improvements. In those few categories that were adjusted upward, it is simply due to
the increased cost of doing business. Although, you will find the adjustments to be modest and are
anticipated to favorably reduce your overall banking services costs by approximately $600 per month.
On behalf of my team, we all truly enjoy working with you and your team and look forward to continuing
our relationship in the coming year. Thank you for banking with Bank of America.
~K
T ana Aardal
Senior Vice President
Agreed and Accepted: City of Bremerton
Se. V" \J ~ c:...Q..s
This L\
USA
Q}~0
2000-2004
us Olympic Teams
day of \\t)ust , 2005
Recycled Paper
+--------------------------------------------------------------------------+
;~nter Search Criteria, Press Esc Key to Transmit +
"Press Del Key to Terminate Delete Mode ..
CHANGE Contract Transactions ..
Contract Number 3429
. 'Vendor Name
. .Subj ect
. .Department
'.Status Code
"
"
Comments
"
BANK OF AMERICA (FORMERLY SEAFIRST)
BANKING SERVICES
FINANCE
SVC
,
,.
~I~
Insurance
Type Amount
Amount
Begin Date
End Date
Review Date
10/01/1992
06/30/2005
04/01/2005
Insurance Total
Insurance Review Date
$0.00
+--------------------------------------------------------------------------+
BankofAmerica ~
~
May 15, 2003
Bank of America
Public Sector Banking
WAl-501-34.03
800 5th Avenue, Floor 34
Seattle, WA 98104
Mike Wilson
Finance Director
City of Bremerton
239 4th Street
Bremerton, WA 98337
Cathy Johnson
Assistant Treasurer
City of Bremerton
239 4th Street
Bremerton, WA 98337
Tel 206.358.8971
Fax 206.358.8818
Re: Banking Services Renewal
Dear Mike and Cathy:
On behalf of Bank of America, we appreciate the opportunity to provide the attached proposal to
renew the City's banking services contract. With your agreement to the proposed pricing, we will
extend the existing contract for two years through June 30, 2005.
I want to highlight some of the key reasons we believe Bank of America is the most qualified
banking partner to assist the City.
Exoerience: Bank of America has dedicated the greatest level of resources to focus on municipal
clients of any bank in Washington. We have a specialized group dedicated to serving only public
sector clients. We are the most active bank underwriter of municipal bonds. We are the clear
leader in providing bank credit products and are particularly strong in proving the full range of
hedging products to municipal clients. These capabilities allow us to provide you the most
informed advice on a wide variety of subjects.
In addition to the Treasury management services described in the attached proposal, we provide
operational lines of credit to support the daily cash management activities of the City of
Bremerton. We currentiy have an $2,000,000 Daylight Overdraft limit and a $700,000 ACH limit
in place to the facilitate movement of funds. We review these limits annually for appropriateness.
Comoetitiveness: The most recent Community Reinvestment Act (CRA) report indicates Bank of
America has the largest deposit share in Washington State, at 21 %, followed by our nearest
competitors at 16% and 11 %. For the City, this means an account at Bank of America will
provide immediate access to funds on a larger share of deposits.
Because the Washington State Treasurer banks with Bank of America, the City may transfer
funds to the Treasurer as an intrabank transfer. For investments to the State's Local
Government Investment Pool, the City may transfer funds through a special function at a cost
per transaction of only 50 cents, substantially less than that of a wire transfer.
The Bank is offering the City a non-interest bearing Certificate of Deposit at 120% of the
Treasury bill with no requirement for reserves, as an alternative method of compensation for
banking services. At today's treasury bill rate of 1.15%, this will result in a rate to the City of
1.38% (1.15% x 1.20% = 1.38%), or effectively 33% higher than the earnings allowance with
reserves.
Investments: Our focus on serving the investment needs of municipal clients throughout
Washington allows Bank of America to capably advise the City of Bremerton. As a primary deaier
Bank of America
Phone (206) 358-8175 FAX (206)358-8818
City of Bremerton
Banking Services
May 15, 2003
in US Government Securities, we can offer the widest range of investments at the most
com petitive rates.
Our proposal includes information on banking services not currently being utilized by the City and
alternative ways of doing business that may result in cost savings to the City.
While cost is an important component of banking, our objective Is, along with competitively priced
transaction costs, to deliver outstanding customer service that consistently meets or exceeds the
City's expectations. The overall value of a relationship with Bank of America includes customized
banking solutions and superior customer service.
The City of Bremerton is a valuable customer of the bank and you can be assured that your
banking "team" will do whatever we can to provide the City with the services you require. I look
forward to continuing to work with you both.
Sincerely,
4j~~fJ:/?ftl/fY
~~ior Client Manager
~~
onheur
Treasury Management Officer
Please acknowledge your agreement of this extension by signing below.
Agreed & Accepted this lo~
By: Llt.....;e iN.I~__
its: ~".Jo" of TI-v:C4-
day of ..,( j , 2003
Bank of America
Phone (206) 358-8175 FAX (206)358-8818
+--------------------------------------------------------------------------+
+Browse: Next Previous First Last Update Delete Restart X - Exit +
+Retrieve the Next record +
+Found: 11 Record(s) MAINTAIN Contract Transactions +
+ Contract Number 3429 +
+
+
+
+
+
+
10/01/1992 +
06/30/2003 +
04/01/2003 +
+
+
+
$0.00 +
+
+
+
+
+ +
+--------------------------------------------------------------------------+
+
+Vendor Name
+Subject
+Department
+Status Code
+
+
+
+
+
+
+
+
+
+
+ Comments
+
BANK OF AMERICA (FORMERLY SEAFIRST)
BANKING SERVICES
FINANCE
SVC
Insurance
Type Amount
Amount
Begin Date
End Date
Review Date
Insurance Total
Insurance Review Date
July 6, 2001
BankofAmerica ~
~
Richard E. Hanna
Treasurer
City of Bremerton
239 Fourth St
Bremerton, WA 98337
Bank of America
Public Sector Banking
WAl-501-34-03
800 5th Avenue, 34th Floor
Seattle, WA 98104
Re: Banking Services renewal
Dear Rich:
I was pleased to receive your call indicating the City of Bremerton would like to extend
banking services pursuant to the price schedule provided in our May 24, 2001 proposal.
Please indicate your acknowledgement by signing below and returning this letter to my
attention. Upon receipt of your acknowledgement, we will implement the pricing
schedule for two years, to June 30, 2003.
Our proposal included information on banking services not currently being utilized by the
City. If you or any of your staff would like to review how these services might be
beneficial to the City, please let me know and we can arrange a time to get together.
The City of Bremerton is a valuable customer of the bank and you can be assured that
your banking "team" will do whatever we can to provide the City with the services you
require. I look forward to continuing to work with you and your staff.
Sincerely,
1 .
~A, bltervv
errin M. Gib:f!::;,
Please acknowledge your agreement of this extension by signing below.
By:
/1
w.y ii.,~ 2001
Agreed &
Its:
~etC-
cc: Judy Bonheur
~
~1~~~
Bank of America
Phone (206) 358-8175 FAX (206)358-8818
Proposal
for
City of Bremerton
Kerrin Gibbons
Public Sector
&
Judy Bonheur
Treasury Management
January 26, 2001
BankofAmerica ~_
~~
~ ........
Treasury Management Services
Review of Current Account Analvsis and Cash Management System
Extension of the banking contract between the City of Bremerton and Bank of America
presents an opportunity to review the current treasury management processes as well as
the analysis pricing structure. It is important to evaluate whether there are new
products/services offered by Bank of America that would benefit the City to consider
during this renewal process.
Following are some issues that we recommend for further discussion with the City:
Iovestioe: Stratel!:Y
Bank of America offers the City of Bremerton two new investment products that enable
the City to earn interest on excess balances maintained in the City's checking accounts or
low interest paying market rate savings accounts. These investment products meet the
state's criteria for investment of public funds.
First Choice Interest Account Sweeo Service
This service is an end-of-day, fully automated two-way sweep between your commercial
checking account and a special First Choice Interest account. A target-collected balance
is established for your regular checking account based on a review of your analysis
activity. At the end of each day funds above the target in the checking account would be
automatically swept to a First Choice Interest Account. If the checking account balance
is below the target amount, funds are swept back to the account to raise the balance to the
target amount. Interest income accrues daily and is credited to your First Choice Interest
account monthly. In addition to monthly statements on both accounts the balances and
transfer activity can be monitored on the Bamtrac@ reporting service.
The rate of interest paid on the First Choice Interest Account will be variable and subject
to change periodically based on market conditions determined by Bank of America.
Listed below are the rates for the previous 6 months:
July 2000
August 2000
September 2000
5.98%
5.93%
5.88%
October 2000
November 2000
December 2000
6.01%
5.97%
5.88%
The combination of the Commercial Analyzed account and the First Choice Interest
account provide the City the flexibility to do all normal checking account activities with
automatic investment through the Sweep service.
Business Interest Maximizer
The City currently maintains three market rate savings accounts for special purposes. Bank of
America now offers a new product called Business Interest Maximizer savings account with a
tiered interest rate structure enabling the City to earn premium rates based on the level of
balances in the account. The Maximizer account is not a checking account and is restricted to 6
withdrawals per month per Federal regulation and service charges apply if there are more than
three withdrawals per month or the balance drops below $10,000. Based on these features the
Maximizer is beneficial for those savings applications where there is minimal or no disbursement
requirements. A separate checking account would be required for additional disbursement
activity.
Interest is compounded monthly, paid monthly and appears on the account statement. Current
rates range from 4.65% to 5.5% for tiers from $10,000 to $1,000,000.
Wire Transfer via Global Monev Wire Transfer Service/State Pool
Transfers
The City of Bremerton currently requests wire transfers by phone call to the bank's wire
department. This manual process is more expensive than initiating wires using the
Bamtrac@ service called Global Money Wire Transfer Service (GMTS) which does not
require the involvement of the banks operators.
Using the GMTS system, the City can create repetitive templates with specific routing
instructions for future use as well as initiate non-repetitive wires in a secure and safe
environment. The City can assign individual functionality to each operator and require
additional approvals for all or only non-repetitive wire transfers. Wires can be future
dated or settle the same day when initiated before 2: 15 PST. In addition to being easy to
use, Bank of America offers significant discounts to clients that use the GMTS service.
The City may transfer funds to the Washington State Pool by using a special Bamtrac@
Account Transfer system designed for the State and pool participants who have accounts
at Bank of America. The cost of using the state's account transfer service is deeply
discounted compared to initiating transfers via the wire system. The cost of the account
transfer is $.50/transfer.
Note: The City may set up this service by contacting the Washington State Pool and
requesting operating instructions.
Fraud Protection Services
PayOnly ACH Fraud Protection
With the explosion of commerce over the Internet, electronic fraud is a major concern of
the entire business community. Now you can safeguard your Bank of America accounts
from unauthorized incoming ACH debit transactions with the PayOnly@ service. Many
businesses do not realize they only have 24 hours from the time an ACH transaction posts
to their account to request the return of the transaction via the Automated Clearing
House. Common misconceptions are:
1. If someone is not authorized to debit your account then it cannot occur
2. The bank would not accept an "unauthorized" debit on your account
3. You can return an "unauthorized" transaction after finding it on your bank
statement
All of these assumptions are false. Banks receive millions oftransactions, which are
posted to accounts each day. Regulation E protects consumers from electronic fraud by
allowing a longer time frame to identify and request the return of an ACH transaction.
Regulation E does not apply to corporate transactions. The rules of the Automated
Clearing House require its members to return corporate transactions within 24 hours of
receipt at the bank. If you discover the transaction after this deadline, your recourse is
directly to the company that originated the transaction.
By establishing a " block" or" filter" on an account, you can instruct the bank to "pay
all", "pay nothing", or "pay only" those transactions you have authorized. Bank of
America can provide the City of Bremerton the flexibility to allow incoming debits from
specified sources while maintaining the security and safety of its accounts.
Positive Pay Check Fraud Detection
Check fraud has reached epidemic proportions in the last 5 years and currently is a huge
problem for the entire financial and business community. Cities, counties and other
government entities throughout Washington have recently been impacted by fraudulent
check activity. Many factors have contributed to this problem including access to
desktop technology and printing equipment coupled with minimal pursuit and
prosecution of criminals perpetrating this type of crime. For these reasons we
recommend that the City of Bremerton consider some form of check fraud protection.
The Positive Pay with a full reconciliation service has two functions - provide check
fraud protection as well as a complete reconciliation of your disbursement account saving
the City the time and effort required internally to perform this function.
How it works
The City would transmit a file of checks to the bank within 24 hours of being issued,
typically daily. The bank's reconciliation system captures the check number and dollar
amount of checks as they are presented to the bank for payment and matches each item to
the issued check file database. When a check presented for payment does not match on
the check number and dollar amount, it is listed on an exception report and faxed to the
City. The City then instructs the bank to return or pay the item by 1 pm the same day. If
instructions are not received from the City, the check would be handled based on the
default instruction established when the service is implemented.
A fraudulent check must be returned to the bank that cashed the check within 24 hours of
being presented against the account in order for the City and its issuing bank to avoid
taking a loss (VCC regulation).
Partial Reconciliation- an alternative ootion
The City may choose to receive a file of paid checks on a daily basis and reconcile the
checks against the City's database internally. In order to meet the timeline for returning
checks, the City would need to instruct the bank each day to return any check the City did
not issue.
Transmission of the issued check file or paid check file can occur via asynchronous
communication, File Transfer Protocol (FTP) or Web Browser via the Internet. Bank of
America's technical support will work with the City's staff to test the communication
method and file formats prior to implementation of any reconciliation service.
CD ROM
Bank of America offers the City an alternative to storing boxes of checks, which can be a
security risk as well as a large expense. Our Image OnSite@ CD-ROM service allows the
City to retrieve, display and print detailed images of stored checks using Windows-based
software we provide. With Image OnSite@ you will receive digitized images of the front
and back of each check on a compact disc (CD) when the bank statement cycles each
month. Each CD you receive includes an index, which is automatically loaded from the
CD to your PC creating a master database of all images on the CD. Each CD will hold up
to 25m images (the front and back of a check is one image). Using specific search
criteria such as the check number or check amount you can quickly view the front and
back of the image.
Special features include:
. Zoom and rotate features
. Brightness and contrast adjustments
. Print, fax, cut and paste functional ity
. User friendly screens
. Crisp, digitized images of warrants
. Security through user ID' s and passwords
Equipment requirements include:
. IBM compatible PC with a 60 MHz minimum Pentium processor
. CD-ROM Drive of2x or higher
. 32 MB of memory recommended
. Super VGA monitor
. Windows 3.1 and a Windows-installed PCL laser printer, minimum 300 dots
per inch
. MD-DOS 6.0 or greater
Proposed Price Changes For Extended Contract Term
Based on December 2000 Analysis Activity and Volume:
Current Current Proposed
Analvsis Activity Volume Rate Fee Rate New Fee
Cash Deposited-Branch 2,149 $ 0.00065 $ 1.39 $ 0.115 $ 2.41
Change Order Request 1 no charge $ no charge
Coin Purchased 4 $ 0.065 $ 0.26 $ 0.065 $ 0.26
Cash Purchased 200 $ 0.06500 $ 0.13 $ 0.065 $ 0.13
FDIC Insurance 1043.2 $ 0.014 $ 14.60 $ 0.014 $ 14.60
DDA Maintenance g $ 8.00 $ 72.00 $ 10.0000 $ 90.00
Vault Cash Deposited 105,296.75 $ 0.00065 $ 68.44 $ 0.00065 $ 68.44
Checks 1014 $ 0.10 $ 101.40 $ 0.1000 $ 101.40
Statement Postage 1014 no charge $ 3.47
Bamtrac USA Account Transfers 14 $ 0.50 $ 7.00 $ 0.5000 $ 7.00
On-Us Dep Items 9 $ 0.0500 $ 0.45 $ 0.0500 $ 0.45
Local Deposited Items 5089 $ 0.0550 $ 279.89 $ 0.0550 $ 279.90
Direct Send Deposited Items 75 $ 0.0800 $ 6.00 $ 0.0800 $ 6.00
On-Us Deposited Items 2237 $ 0.0500 $ 111.85 $ 0.0500 $ 111.85
Other Fed Deposited Items 1188 $ 0.0800 $ 95.04 $ 0.0800 $ 95.04
12th Fed Deposited Items 1902 $ 0.0650 $ 123.63 $ 0.0650 $ 123.63
Overdraft Charges 5 no charge $ 20.00 $ 100.00
Redeposited Retruned Items 24 $ 0.50 $ 12.00 $ 1.00 $ 24.00
Deposits Posted-branch 188 $ 0.20 $ 37.60 $ 0.30 $ 56.40
Deposited Items Returned 36 $ 1.25 $ 45.00 $ 2.00 $ 72.00
Vault Deposits Posted 437 $ 0.20 $ 87.40 $ 0.20 $ 87.40
ARP Fine Sort 966 $ 0.02 $ 19.32 $ 0.02 $ 19.32
Fine Sort Maintenance 1 $ 10.00 $ 10.00 $ 15.00 $ 15.00
Outgoing Wire Transfer 1 $ 10.00 $ 10.00 $ 25.00 $ 25.00
Automated Incoming Wires 3 $ 6.00 $ 18.00 $ 6.00 $ 18.00
Outgoing Repetitive Wires 1 $ 9.00 $ 9.00 $ 20.00 $ 20.00
Wire Phone Notification 6 $ 4.00 $ 24.00 $ 4.00 $ 24.00
Automated Balance Reporting 1 $ 323.20 $ 323.20 $ 323.20 $ 323.20
Automated Clearing House 1 $ 240.88 $ 240.88 $ 240.88 $ 240.88
Deposit Source Reporting 1 $ 15.63 $ 15.63 not applicable
Bankcard Service Fees 1 $ 945.94 $ 945.94 $ 945.94 $ 945.94
$ 2,680,05 $ 2,875.72
Monthly Total without Overdrafts $ 2,775.72
Monthly Total using GMTS for wire inititation and notification. $ 2,722.72
Notes:
1. The City could elimiate overdraft situations simpiy through the use of our First Choice Interest
Account Sweep Service.
2. The City couid reduce the fees associated with phone notification of incoming wires and wire transfer
initiation by transferring funds to the Washington State Pool via the State's account transfer service and
using the GMTS service. Notification of incoming wires has no charge when accessed on the Bamtrac
Intra-day wire report. The potential reduction of wire activity fees is $53.00 ($69.00 to $16.00).
3. The format and methodology of calculating Collected Balances will change but should not
have a major impact on the City of Bremerton. The Account Analysis will show Average Positive
Collected Balances and the Average Negative Collected Balances in the combined accounts on the
analysis. Earnings credit is calculated on the Positive Collected Balances days for the combined
accounts and if there are Negative Collected Balances days, a Negative Collected rate is applied and
entered as a service charge. However, if enough Average Positive Collected Balances are available in
your other analyzed accounts, these dollars will offset, in part or whole, the account that has an Average
Negative Collected Balance. Thus a lesser or no charge will be processed. This procedure is calculated
by day.
Bank of America Price List
For City of Bremerton
Commercial Checkinl! Activities
Account Maintenance
Zero Balance Service
Checks Paid
Deposit Posted
Banking Center
Cash Vault
Deposited Checks (standard)
On-Us
Local
12thFRD
Other FRD
Direct Send
Pre-encoded Rejects
(reject rate greater than .5%)
Deposited Items Returned
Re-deposited item
Night Deposit-Branch
All Supplies
Duplicate Receipts
Account Transfer via Phone
Account Transfer via Bamtrac
Stop Payment via Phone
Coin and Currency
Cash Deposited at Banking Center
Cash Deposited at Cash Vault
Change Request
Currency Purchased
Coin Purchased
FDIC Assessment
(per $1000 ledger balance)
Negative Collected Balance Interest
Insufficient Funds
Item returned due to account in overdraft status
Daily Maximum
Overdrafts
Item paid when account in overdraft status
Daily Maximum
Earnings Credit Allowance
The earnings rate on collected balances is subject to
change periodically based on market conditions
Pre-encoded
$.040
$.045
$.055
$.070
$.070
Deposit Slips-minimum 2 books per order
Statement Postage
Pol ybags
Courier Delivery
Cashier's Checks
Document Faxing
$IO.OO/account/month
$ I 5. OO/account/month
$.IO/check
$.30/deposit
$.20/deposit
Un-encoded
$.050
$.055
$.065
$.080
$.080
$.30/item
$2.00/item
$1. OO/item
at cost
$2.00/each
$2.00/each
$.50/transfer
$18.00/stop
$.115/$100
$.065/$100
$2.00/order
$.065/$100
$.065/roll
Current FDIC Rate
Prime +2%
$18.00/item
$90.00
$20.00/item
$100.00
Rate is variable
at cost
at cost
at cost
at cost
$5.00 each
$2.50/page
Special Processing
Treasurv Manal!ement Services
Account Reconciliation Services
Setup Fee-All Reconciliation Plans
Partial Reconciliation"
Service Maintenance
Item Captured
Standard Reconciliation Report
Service Minimum
Positive Pay with Full Reconciliation"
Service Maintenance
Checks issued
Input Transmission
Fax Exception Report
Reject Rate Over 1%
Output Reporting
Paper Reports
Float Report (Full Reconciliation only)
Daily Paid Report
Unpaid Only Report
Paid-No-Issue Report (Full Reconciliation only)
Duplicate Report
Automated Options
Transmission via modem or Internet
Miscellaneous Activities
Voided Registers
Intersorted Rejects
Courier Delivery
Special Research/Projects
Document faxing
Photocopies
Check Sorting (without reconciliation plan)
Service Maintenance
Checks Sorted
· All reconcilement plans for Washington accounts
include check sorting.
$30.00/hour, $15.00/minimum
$50.00/account
$25.00/month
$.04/item
$2.25/report
$50.00/month
$50.00/month
$.07/check
$30.00/month
$2.50/page
$30.00/hour
$1.50/report
$1.50/report
$1.50/report
$1.50/report
$4.25/report
$15.00Itransmission and
$.02/item
$.13/item
$.25/item
at cost
$30.00/hour
$2.50/page
$1.20/item
$15.00/account/month
$.02/check
Automated Clearin!! House Services IACH)
Origination
Vendor
Transmission via modemlInternet
ACH Transactions
2-day debit or credit
l-day debit or credit
Bank of America W A. debit or credit
Microcash for Windows ACH Service
Service Maintenance
Transmission of File
ACH Transactions
2-day debit or credit
l-day debit or credit
Software License
Conversion/Upgrade for Auditor software users
Miscellaneous ACH Activity
Return Item/Notification of Change
Deletes (before sent to Fed)
Reversal (after sent to Fed)
Effective Date Change
Special Research/Projects
PayOnly Service
Block ACH Transactions
1-10 accounts
Additional accounts
Filter ACH Authorized Transactions
1-5 filters
6-10 filters
over 10 filters
Special Research
Electronic Data Interchange Service ( EDI )
ED! Notification via fax
ED! Translation
$15.00Ibatch
$15.00Ibatch
$.08/item
$. IO/item
$.08/item
$25.00/month
$1.50/transmission
$.08/item
$.IO/item
$450.00/one time
$100.00/one time- no Software License fee
$2.50 each
$2.50/file/item
$10. OO/item
$2.50/occurance
$30.00/hour
$10. OO/account/month
$5.00/account/month
$IO.OO/account/month
$15.00/account/month
custom Bid
$30.00/hour
$3.00/page
custom bid
Bamtrac@ USA Balance/Activity ReDortin!! and Transaction Services
Statement/DetaiVSummary Reports
Service Maintenance (unlimited accounts)
Report Access
Records Reported
Intraday Reports
ACH Report
Bamtrac For Windows Software'
Service Maintenance
Software Setup
Auto-Configuration
Account Transfer Service
Stop Payment Service
State Pool Transfer
$50.00/month
$1.5 O/access
$ .IO/record
$40.00/month
$.10/ ACH transaction
$.05/addenda record
$25.00/month
$50.00/one time
$1.50/operator/report
$.50/transfer
$1O.00/stop
$.50/transfer
· Optional proprietary software can be used to access Bamtrac Reports and other Bamtrac
services.
CD-ROM Service
Image Onsite (Washington Accounts)
Service Maintenance
CD ROM
Check Images
Under 10,000
Over 10,000
Return Check Surcharge (ifrequired)
Bulk Imaging of Stored Checks or
Other Special Requests
$50.00/first account/month
$25.00/additional accounts/month
$17.50/CD
$.06/check
custom bid
$.01
custom bid
Wire Transfer Service
Domestic Wires
Phone Access
Incoming Wire
Outgoing Repetitive
Outgoing Non-Repetitive
Internal Book Repetitive Trnnsfer
Internal Book Non-Repetitive Trnnsfer
$IO.OO/wire
$20.00/wire
$25.00/wire
$4.50/transfer
$5.00/trnnsfer
Automated Access (via GMTS)
Incoming Wire
Outgoing Repetitive
Outgoing Non-Repetitive
Internal Book Repetitive Trnnsfer
Internal Book Non-Repetitive Transfer
International Wires
Phone Access
Incoming Wire
Outgoing Repetitive
Outgoing Non-Repetitive
Automated Access (viaGMTS)
Incoming Wire
Outgoing Repetitive
Outgoing Non-Repetitive
Reporting Options
Bamtrac Wire Report
Phone Notification
Fax Notice (incoming wire)
$6.00/wire
$7.50/wire
$8.50/wire
$2.50/transfer
$3.00/transfer
$IO.OO/wire
$20.00/wire
$25.00/wire
$6.00/wire
$t3.00/wire
$15.00/wire
no charge
$4.00/wire
$3. OO/wi re
First Choice SweeD Account Service
Service Maintenance
$75.00/month/account
Other services used will be subject to the pricing schedule in effect at the time of use.
INST ITUTIONAL CUSTODY SER VI CES
CUSTODIAL AGREEMENT
PUBLIC ENTITIES
Seattle-First National Bank ("Custodian") agrees to establish a securities custodial account for Ci tv of Bremerton
("Principal ") in accordance with the terms and conditions tisted below:
1. Safekeeping and Custody: Custodian shall safekeep all securities and other corporate property, acceptable to the Custodian,
hereafter delivered to Custodian by the Principal, subject to the instructions of the Principal, Custodian shaU hold all
securities deposited by the Principal in an account separate from the Bank's own securities and sha1l at all times maintain
records showing true ownership of the Principal's securities.
2. Investment Responsibility: Custodian shall have no obligatioJl to manage, invest, or reco=end investments or to initiate
any transactions in the absence of instructions from an authorized representative of the Principal.
3. Instructions: Custodian is requested and authorized, but not obligated, to rely upon and act in accordance with any
co=unication which may by given by telephone, facsimile, telex, or other electronic transmission on Principal's behalf by
authority or identity of the person making or purporting to make such co=unication, regardless of the circumstances
prevailing at the time of such co=unication. Custodian may request oral instructions be confirmed in writing, Custodian
shall be entitled, but not bound to treat such co=unication as fully authorized by and binding upon Principal and Custodian
shall be entitled to take such steps in connection with or in reliance upon such co=unication, whether such co=unication
includes instructions to pay money, debit or credit Principal's accounts, settle securities transactions, or take any other
customer directed action.
4. Securities:
a. Settlement Election: Principal hereby directs Custodian to settle all securities trades on an Actual basis in accordance
with the Custodian's policy then in effect.
b. Income and Principal CoUection: Custodian is authorized to coUect the income and principal which become due on
the securities deposited. In so doing the Custodian shall use its best efforts, but shall have no duty to take any legal
action to enforce payment or coUection. Income and principal will be credited to the custody account based on the
Custodian's payment policy in effect at the time.
c. Registration Election: Custodian is hereby instructed to register the securities held that are in registerable form as
foUows:
o In the name of the Principal
III In the name of the Custodian, its nominee
or its depository's nominee
Principal acknowledges that an election to register the securities in the name of the Principal releases the Custndian
from any duty or obligation to coUect income, monitor tenders or calls, or take any similar action related to such
securities.
d. Use of Depositories: Custodian may in its sole discretion, retain Principal's securities with a depository. Principal
agrees to be bound by the rules, procedures, practices, liens and assessments of each depository used by the
Custodian.
e. Investment Transactions: Custodian is directed to execute authorized investment transactions which may include
purchases or seUs through brokers or the Custodian's Investment Department, in which case the Custodian's
Investment Department shall be entitled to charge an amount equal to the customary commission.
I
2/94
INSTITUTIONAL CUSTODY SERVICES
5. Disposition of Proceeds:
a. Standing Instructions: Principal hereby directs the Custodian to process the funds received or disbursed, (including
those for payment of maturing obligations, redemption collections, interest, dividends, and security settlement) as
follows:
o Credit this account
o Retain principal funds; forward income to Principal:
o Credit checking account #
o Send a check payable to the Principal
o Other:
Ia Forward both principal funds and income to Principal:
tI Credit checking account # 67064303
o Send a check payable to the Principal
o Other:
b. Wire Transfer Authorization: Principal may elect to request transfer of funds by Fedwire from time to time.
Principal agrees that the wire transfer security procedures identified on the attached Exhibit A to Custodial Agreement
are commercially reasonable. Principal further agrees that Custodian should use these procedures to detect
unauthorized wire transfer payment requests prior to executing such requests and Principal agrees that any request
acted upon by the Custodian in compliance with these security procedures, whether or not authorized by Principal,
shall be treated as Principal's authorized request. Principal agrees that the Custodian has the right to change the wire
transfer security procedures from time to time and that Principal's use of any changed procedures evidences the
acceptance of the commercial reasonability of such change.
6. Capital Changes: Upon receipt of information from Custodian's customary sources, Custodian shall promptly notify
Principal, concerning securities held for the Principal and act at the Principal's direction in connection with any
reorganization, tender offer, recapitalization, subscription, or similar transaction. Custodian has no responsibility to
independently respond to notices unless timely written instructions have been received from the Principal.
7. Speciat Instructions: (if applicable)
8. Proxy Election: Upon receipt of information from Custodian's customary sources seeking proxy response, Custodian agrees
to notify Principal subject to this election: (select one)
N / A 0 Principal responds to all proxy requests.
o Principal authorizes the Custodian to respond to routine proxy requests in support of management with all non-
routine requests to be sent the Principal for response.
Notwithstanding the foregoing, the Principal authorizes the Custodian to act in its discretion, without consultation with the
Principal, if any fractional shares or subscription offers are received involving shares with a value of less than $500.00.
The Principal hereby elects to Oobject Onot object to the disclosure of its name, address and security position to those
companies requesting such information for the owners of their securities as permitted under the Shareholder Communications
Act adopted by the Securities & Exchange Commission.
2
2/94
INSTITUTIONAL CUSTODY SERVICES
9. Records and Statements: Custodian shall maintain accurate records of the account and provide statements to the Principal
at the end of each: (check anyone or more)
IllI Month
o Quarter
o Year
Principal requests the Custodian to 0 include 0 not include the market value for each marketable security. If market
value prices are provided per this agreement, Principal acknowledges that the prices do not necessarily reflect what each
position could have been sold for on the valuation date. Prices are obtained from multiple pricing services or manually by
the Custodian and for inactively or infrequently traded securities, may represent an estimate of the value or the last value.
Market values for difficult to price securities or assets, nonstandard securities, or other property, will be supplied to the
Custodian by the Principal or not priced based upon discussions and agreements reached by the Custodian and Principal from
time to time as to specific assets.
Duplicate Statements (if applicable) should be sent to:
Name:
Address:
City, State, Zip:
10. Liabilitles: Custodian's responsibilities shall be limited to those expressly set forth in this agreement. Custodian shall not be
required to appear or to defend any legal proceedings with respect to the Custody Account securities unless the Custodian has
been indemnified to its satisfaction by the Principal. Principal hereby agrees to indemnify Custodian against all liability,
claims, demand, damages, including consequential damages, and costs, including reasonable attorneys' fees, allocated costs
of Custodian's in-house counsel, and expenses of legal proceedings, resulting from Custodians compliance with Principal's
instructions and the terms of this agreement, except where Custodian is shown to have acted with gross negligence or willful
misconduct. Custodian's right to indemnification under this paragraph 10 shall survive the termination of this agreement.
Custodian shall not be liable for any loss to the Principal's securities resulting from acts of God, war, civil commotion, fire,
earthquake, or other disaster beyond the reasonable control of the Custodian, or for any other loss unless shown to have
arisen from Custodian's gross negligence or intentional misconduct. Custodian shall not be liable for failure of the
Principal's counterparty to perform its contractual responsibilities.
II. CompellSlltlon: The Custodian shall be entitled to compensation in accordance with the fee schedule ill. ~ffwl ..I t1.~ G..._ V'
as agr=eed \tileR hy 88a parties, ItS 7/811 8S Bat af 1'6eKt apeMes inatPrea ~ CtlStediml in tilt:. admilli.stllltion of tl..", Ctl'Stody
^'...."""........d.. Cd&~.lhaH Ik~n... thG d&lll to MllCAd. lu feG Jme.dttk. from (me. to time. tmd will BOHr, Pdneipal 6f .\uch
....eBdmeftt ift M.~ ~f effLch.cuw.. included as a part of the current contract with the City
for banking, services. (copy attached)
12. Amendment; TermiDatlon: This Agreement may be amended at any time by a written instrument signed by the parties.
Either party may terminate this Agreement and the Account upon 30 days written notice to the other unless the parties agree
on a different time period. Upon such termination, Custodian shall deliver or cause to be delivered the Account Securities,
less any amounts due and owing to Custodian under this Agreement, to a successor custodian designated by Principal or, if a
successor custodian has not accepted an appointment by the effective date of termination of the Account, to Principal. Upon
completion of such delivery, Custodian shall be discharged completely of any further liability or responsibility with respect to
the Account Securities so delivered.
13. Authorized Representatives: Until further written notice from the Principal, Custodian is authorized to act in accordance
with instructions and communications received by Custodian from any ~ (No.) of the Authorized Representatives listed
below:
Typed Name
Richard E. Hanna
Catherine A. Jolmson
~
3
2/94
INSTITUTIONAL CUSTODY SERVICES
Custodian has no duty to determine whether the identity of the individual claiming to be authorized is true and correct and
may rely upon such person's representations. Custodian shall be protected in executing any instructions which purports to
come from the Principals' authorized representative(s) and in executing any instruction, prior to receipt by the Custodian of
notice of the death, incompetency or change in authorized representatives.
14.
Tax Certification and Responsibility:
Identification Number 91-6001231
The Principal hereby certifies under penalty of perjury that the Taxpayer
is Principal's correct identification number, and: (please check one)
fa The Principal is not subject to back-up withholding either because the Internal Revenue Service has not notified
Principal that it is subject to back-up withholding as a result of a failure to report all interest or dividends or the IRS
has notified Principal that it is am no longer subject to back-up withholding.
o The Principal is subject to back-up withholding.
Principal accepts all duty and obligation to prepare and file all required tax reports and returns, and full responsibility for
payment of taxes due on the income collected for the Principal by the Custodian.
,
15. Assignment: Any corporation into which the Custodian may merge, sell or transfer its custody business and assets, shall
automatically be and become successor Custodian hereunder and vested with all the rights, duties and powers of its
predecessor without the execution or ming of any instruments, or further act, deed or conveyance on the part of the parties
hereto. Principal hereby consents to such action.
16. Governing Law: The validity, construction, and administration of this agreement shall be governed by the taws of the State
of Washington.
Date: March 9 , 19 ~
By:
':iChard E. _ v:#
r~ -"--- _ ~~
Signature
239 Fourth Street
Address
Bremerton, WA 98310
(206) 478-5210
Telephone Number
. As Principal
By: BaDkAmerica State Trust Company as
Authorized Agent for
Seattle-First ational Bank
4
2/94
INSTITUTIONAL CUSTODY SERVICES
EXIDBIT A
Additional Documentation Required
Corporation:
Please attach a Corporate Resolution with your corporate seal affixed. This document should indicate
that the person(s) who executed the Custodial Agreement are authorized to do so. In addition, please
affix your corporate seal on the Custodial Agreement. If you do not have a seal, please include a
copy of your Articles of Incorporation.
Partnership:
Please provide us with a copy of the Partnership Agreement which indicates that the person(s) who
executed the Custodial Agreement are authorized to do so,
Public Entity:
Please provide copy of Resolution or 'ordinance, certified by the secretary/clerk authorizing the
individua1(s) who executed the Custodial Agreement.
Trustee or :
Co-Trustee
Please provide us with a copy of the Trust Agreement indicating your
appointment as Trustee or Co-trustee.
Wire Transfer Security Procedures
Principal makes a request in writing:
a. Custodian verifies signature of Principal vs. authorized list of representatives,
Principal makes a request in person:
a. Principal prepares a written signed request.
b. Custodian verifies signature of Principal vs. authorized list of representatives.
Principal makes a request by phone:
a. Representative of Principal provides Custodian with their name, the account number, and the detailed request.
b. Custodian confirm that the person making the request is an authorized representative.
c. Custodian uses call back verification to reconfirm the request*,
d. Principal sends original follow-up request by mail*.
Principal makes a request by fax:
a. Principal calls Custodian and informs Custodian when fax has been sent.
b. Custodian verifies signature of Principal vs. authorized list of representatives.
c. Custodian uses call back verification to reconfirm the request*.
d. Principal sends original follow-up request by mail*.
* If Principal's request changes the amount and/or message only, on an instruction signed by Principal's authorized
representative which Principal has previously communicated to Custodian in writing and Custodian has such written
instruction on file, Custodian is not required to perform the call back verification and Principal need not fOllow-up the
request by mail.
Custodian has the right to change the Wire Transfer Security Procedures from time to time and the Principal's use of any changed
procedures evidences the acceptance of the commercial reasonability of such change.
5
2/94
Authorized Individuals
Public Entities
Account name: Ci ty of Bremerton
Account It: 709-102600
I certify that I am the Clerk of Ci ty of Bremerton
formed and existing under the laws of State of Wa~hing1;on I further certify that
in accordance with the authority granted by ResolutIon No. 2205 and other
applicable law (Attach a copy of appropriate ordinance, council minutes or other source of
documented authority). Seattle First National Bank has been designated a
(agent/ custodian) under the custodial agreement, a copy of which is attached to this
authorization. I further certify that the persons holding the position(s) of
Ci ty Treasurer. Asst. Citv Treasurermay conduct busmess within the duties designated by state
statute and local code and shall have the authority to instruct Seattle First National Bank and to
execute such further documents and instruments as may be required or useful.
Seattle First National Bank may rely on instructions given by anyone of the authorized persons
named below, who shall have the authority to obligate this public entity to contracts and
agreements with Seattle First National Bank.
Richard E. Hanna
Ci tv Treasurer
Name / Position
Catherine A. Jolmson
Asst. Citv Treasurer
Name / Position
C"_
S1
Name / Position
Signature
Name / Position
Signature
The above list of Authorized Persons may be amended from time to time in writing by
certification executed by the undersigned or his/her successors in office.
Witness my hand and the official seal the
19~.
9th
day of March
(OFFICIAL SEAL)
Kathleen L. lVbCluskey
Name
~,~. - ~(Q"'1:
Signature
Ci ty Clerk
Position
III 8/94
N:\CUSTlCORPRES.DOC
INSTITUTIONAL CUSTODY FEE SCHEDULE
PUBLIC ENTITIES
· Base AnnualFee $200.00
· HoldingFee (per issue per year)
· Federal Reserve Book-Entry Items $21.00
· DTC Items 21.00
· New York Non-D'l~ Items 21.00
· Seafirst Vault 35.00
· Processing Fees (per transaction)
Purchase Free Receipt
/ Sale / Delivery Maturity
· Federal Reserve hook-entry items $18.00 $15.00 $15.00
· Depesito~ Trust Co. items 18.00 15.00 15.00
· blew York Non-DTC items 18.00 15.00 15.00
· Seafirst items 18.00 15.00 15.00
· Repurchase transactions 21.00 21.00
· Paydowns of mortgage pass-through $I0.00 each
· On Line Sys~ms Access
· Monthly Fee $100.00
Expenses including, without limitations, courier charges, New York Correspondent Bank ~ransaction
charges and Fed Wire charges will be billed in addition to the above referenced fees.
Statements of holdings and transactions are provided at no charge.
Base annual fees are payable in advance. Other fees quoted above will be billed on a periodic basis to be
agreed upon. Holdings fees will be pro-rated for the appropriate time period.
Additional fees may be charged for services not specified above or for extraordinary services performed.
J~yl~2
ESO UTION NO.
A resolution of the City Council of Bremerton,
Washington destgnatin8 Seattle First National
Bank as an agent of the City of Bremerton for
the safekeepin8 of securities.
WHEREAS, the City of Bremerton is desirous of entering
into a safekeepin8 agreement in order to provide for the security of its
investments, and
WHEREAS, a certification of corporate authority is a
necessary precondition of entering into said agreement, now therefore
BE IT RESOLVED BY THE BREMERTON CITY COUNCIL:
THAT Seattle First National Bank be and hereby is designated
an agent of the City of Bremerton for the safekeeping of securities. That
instructions to the agent shall be given by the officers named on the
attached agreement, or their successors.
PASSED by the City Council of the City of Bremerton this
/~ day of~'~.~.~J4~t~.'~, 1988. !
HANK WAI~EL, Council President
APP O E this day of
/
ATTEST:
Exhibit 2
SAFEKEEPING SERVICES BID PROPOSAL
City of Bmmerton
Bank: Seafirst Bank
Address: 800 Fifth AvenRe~ Suite 3400, Seattle. W~h{n~_~n
ContactPerson/Phone: Jane Towerv (206) 358-~9g]
Estimated Estimated
Monthly Monthly
Service Volume* Rate Expense
Account Maintenance ('~emize) $200/yr $16.67
DeliveryvsPaymentTransacfions 4 18 Book entry 72.00
Safekeeping 21 Physical -
Reg~temd Securities 1 35 Physical ' 2.91
Book Entry ~ecuritles 8 21 14.00
Monthly Report of Holdings I No charge -
.O~er Charges (itemize)
Maturities 15 'Book entry -
Maturities 25 Physical -
Fed wire charge for delivery out of
Book entry Government securities 3
Tc~al Monthly Charges
As an authorized representative of the above bank, I do hereby certify that I have read the City of Breme~ton's
request for proposal of banking sewlces and fully understand Its requirements. In addition, this institution
meets the bank specifications outlined herein and has adequate personnel, equipment and facilities to fulfitl'the
City of Bremerton's banking needs. The latest Statement of Financial Condition is attached.
Title Date
*Quantities are estimates and subject to change with actual needs.
* For securities which are purchased through Seafirst Capital Markets, there are no
transaction or safekeeping fees - a significant savings.
Kerrin M. Gibbons
Vice President
Public Sector Banking
October 23, 1997
Rich Hanna
City Treasurer
City of Bremerton
293 4th Street
Bremerton, WA 98310
Dear Rich:
Seafirst ('Bank') is pleased to offer to renew the City's banking services contract for two years,
at the existing price level. Prices for banking services have not increased since our 1995 contract
was finalized, and, at that time prices were lower than our 1992 bid.
As a cost savings, we recommend the City consider receiving fax or terminal notification of
incoming wires. Currently the City receives a phone notification of incoming wires at a cost of
$4.00 per notification. The fax notification fee is $3.00, while the terminal notification is
available at no charge. As an example, during the month of July, the City received three phone
notifications.
Existing banking services include custody and safekeeping services through our alliance with
BNY Western Trust Company ('BNY'). Seafirst continues to act as an ombudsman, providing
oversight for custody services provided, at no charge to the City. This arrangement also allows
the City the option of paying for custody services with soft dollars.
BNY has notified the Bank of a price change in their existing fee structtu-e for public bodies.
The revised fee schedule will increase the minimum fee to $1500.00, per quarter, which is a
significant increase for the City of Bremertun. We anticipate the City will find this price
increase unsatisfactory, and believe there are several alternatives to using BNY for third party
safekeeping.
One, securities may be safekept where they were purchased. For instance, any securities
purchased through Seafirst Capital Markets will be safekept at no charge. This service seems to
be a common practice at other investment houses. This would not however allow for
safekeeping at Seafirst of investments purchased elsewhere. Two, there may be other providers
of third party safekeeping with a fee schedule more appropriate for the size and activity level of
Seafirst Bank 800 Fifth Avenue, Floor 34/Pcet Office Box 34662/Seattle, Washington 98124-1662
Telephone (206) 358-8175 Telefax (206) 358-8818
City of Bremerton
October 23, 1997
the City's investment portfolio. If the City would like to implement this alternative, Seafirst will
allow the City to pay custody service fees with soft dollars, to a custodian other than BNY, but
without the oversight process that we currently provide.
In any event, as part of our banking services agreement, since the fee structure proposed by BNY
represents such a significant increase to the City, Seafirst proposes the City continue paying fees
to BNY based on their existing pricing structure, and Seafirst will compensate BNY for their
proposed fee schedule through December, 1998. It is our expectation that an alternative custody
arrangement, satisfactory to the City, can be developed on or before December 1998.
On behalf of your "team" here at Seafirst, let me say we would very much like to continue
providing banking services for the City of Bremerton and believe we can meet your needs now
and in the future.
I look forward to hearing from you.
Sincerely,
~anM' Gibb]~ons
Extension of the existing banking services contract for a two year period fi-om December I, 1997
through November 30, 1999.
AGREED&ACCEPTED THIS&O DAYOF ~.00. ~[~4~-[
City °f Brem....ert~ t/
Seafirst Bank 800 Fifth Avenue, Floor 34/Post Office Box 34662/Seattle, Washington 98124-1662
Telephone (206) 358-8175 Telefax (206) 358-8818 :
PubticVice Pr..ent~ecl~ .king
800 Fi~ Argue, Suite ~400
$*Itle, W~shinglon g8104
(~o6)
(~6) 3M-8815(lac~imile) CITY' TREAS U RER
August 20, 1992
Richard E. Hanna
City Treasurer
City of Bremerton
239 4th Sweet
Bremenon, WA 98310
RE: Seafirst's Banking Services Proposal
Dear Rich:
I wanted to further address Seafirst's proposal and to point out exactly what the changes
are. Somehow, in all those pages of the proposal, those changes can be summarized in just
a few key items:
BANKING SERVICE FEES
· Coin and Currency handling. The price for processing coin and currency has been
increased from $0.06 per $100 to $0.065. The total net impact on the City of this
change based on the volume in the proposal is $5.15 per month.
· Uncounted Coin and Currency. We still are not able to give you the answer you'd
like to hear. The highest cost item and the most manual process is processing
uncounted coin and currency. Handling intermixed coin and currency just isn't
possible. The Parking Lot magnate you'd mentioned actually approached Seafu'st to
handle its accounts and cash, which we declined for that reason. He was being
prompted to leave because of increasing fees at his former bank.
Coin and currency are everyone's headache, but the arrangement we have worked out
with the City is really the best that we'd do for anyone - and it's better than what we do
for our commercial customers. We can work with the City to minimize its work,
however, by sharing some time-saving tips with your employees.
· Uncounted Coin. Our standard pricing per bag of uncounted coin is $10.00 per bag.
For the City of Bremerton, however, my objective is get approved a 50% fee
exception. Please note that these fee exceptions aren't easy to get -- it requires the
President of the Bank's approval. Clearly, we want to minimize the fee impact on the
City of any increase here, and we have in some of our other fees.
· Debits Posted. The proposed change is from $.09 to $.12 per item. The net impact
per month is $33 per month.
· Account Maintenance. The proposed change is from $6 per month to $8 per month.
What we can do for the City in this regard, is to show how accounts can be combined
simply by using different series of check numbers and deposit slips for which
statements, etc., will separately list. So the net impact here may be zero.
· Cash Management. Let me point out that no charges in this area have been increased
for the City. Plus, this is the area where we feel we can save money for the City.
First of all, a $100 per month fee can be eliminated by showing the City how to better
use its system to get balances!
Also, although I was not able to verify this for the proposal, my belief is that most of
the wires the City sends is m the State Treasurer. If this is the case, we can show the
City how to do so through its PC whereby it could eliminate its wire charges, which
currently would be approximately $40! By having the State's account at Seafirst,
Seafirst is the only bank that can offer this.
If the City used the same software for both its utility and direct deposit programs, then
the City could save an additional $12.50 per month.
If the City would receive its wire advices via PC vs. phone, then the City could save
another $16 per month.
Adding this up totals to approximately $168.50 per month in savings!
OTI-IER IMPORTANT FACTORS
Three other items should be incorporated into the City's £mal analysis of the various
proposals:
· Management time and expense in changing relationships - a real cost;
· Availability of funds for investments; and
· Compensation methods.
The costs in changing banks is real. An estimate of employees time in reformatting,
relearning procedures, contacts and changing operations should be totalled and amortized
as a cost over the life of the contract. Also, the costs of acquiring new checks, deposit
slips, endorsement stamps, etc., should be included, as well as the costs of maintaining
accounts at 2 banks for some pe~od of time until all issued checks clear (at least 2-3
months).
Availability of funds is another real cost that is often overlooked. By getting credit for
30% of the deposits at Seafirst on the same day as deposit, the City will immediately put
those funds to work. Seafn'st has such a large proportion based on our marketshare of
retail and commercial customers, as validated by the City's Seafirst analysis. The way to
estimate this cost-savings is to calculate the pementage of deposits which would be "on-us"
for each proposer times the total dollars deposited, divided by the number of business
days, times an appropriate earnings rate, such as the State Pool.
The City's RFP takes the perspective of using balances to pay expenses. We propose,
however, that this is not the most efficient use of the City's funds. For example, if the 90-
day T-Bill rate is 3.5%, then the City will only earn effectively 90% of this rate because of
Exhibit I BANKING SERVICES BID PROPOSAL
Monthly Prior Seafirst Seaf'~t Activity Estimated Estimated
Volume* Unit Cost Unit Cost Unit Fee Fee
Account Maintenance no vol. given $6.000 $8.000 per Account
FDIC Chnrge-Balances in Account(per $1,000) 0.159700 0.159700 per $1000 $0.00 $0.00
Cash Del~tited ($100) $90,000 $0.060 $0.065 per $100 $54.00 $58.50,~
Uncounted Coin Deposited 3000 0.060000 0.065000 per $100 $1.80 $1.95
Each Deposit 20 0.000000 5.000000 per deposit $0.00 $100.00a~
Uncounted Currency no vol. given 0.060000 0.065000 per $100
Uncounted Coin/Currency 10000 0.060000 0.065000 per $100 $6.00 $6.50
Each Deposit no vol. given 0.000000 5.000000 per deposit
NOTE: Connot accept coin & encrency intermixed.
Checks Deposiled (encoded)
On-Us $0.030 each $0.00 $0.00
Local $0.035 each $0.00 $0.00
12th Fed. $0.045 each $0.00 $0.00
Other Fed. $0.060 each $0.00 $0.00
Direct Sends $0.060 each $0.00 $0.00
Encoding Reject Fee $0.300 Item rejected. $0.00 $0.00
OR
Ch~_ks Deposited (nncncoded)
"-- On-Us
29% 2,900 $0.045 $0.050 each $130.50 $145.00
~ Local 50% 5,000 $0.045 $0.055 each $225.00 $275.00
12th Fed. 17% 1,700 $0.045 $0.065 each $76.50 $110.50
Other Fed. 3% 300 $0.045 $0.080 each $13.50 $24.00
~_Direct Sends 1% 100 $0.045 $0.080 each $4.50 $8.00
Total 10000
Deposited Items Returned 15 $1.250 $1.250 $18.75 $18.75
Debits (checks paid) posted 1100 $0.090 $0.120 Check paid. $99.00 $132.00-~
Coin Purchased 65 $0.060 $0.065 per roll $3.90 $4.23
Currency Purchased $3,500 $0.060 $0.065 per $100 $2.10 $2.28 ~
WIRE TRANSFERS TO WA STATE TREASURER
Incoming No Charge No Charge Per Intrabank ~xansfer
Outgoing $4.500 $4.500 If done as Wire via Phone
Outgoing $2.500 $2.500 If done as Wire via PC
Outgoing to State Pool $0.000 $0.000 If done via PC
Wire Services
PC Initiated System
Exhibit I BANKING SERVICES BID PROPOSAL
Estimated Prior New
Monthly Prior Scafirst Seafirst Activity Estimated Estimated
Volume* Unit Cost Unit Cost Unit Fee Fee
Automated Incoming 0 $6.000 $6.000 item $0.00 $24.00
Automated Outgoing(Repetiti, 2 $6.500 $6.500 item $13.00 $13.00
Automated Outgoing(Non-repetitive) $7.500 $7.500 item $0.00 $0.00
Internal Transfer - Repetitive $2.500 $2.500 item
Internal Transfer - Non-Repetitive $3.000 $3.000 item
7 Phone Initiated Wire Transfer System
Incoming 4 $8.000 $8.000 item $32.00 $0.00
Phone Outgoing (Repetitive) 0 $9.000 $9.000 item $0.00 $0.00
Phone Outgoing(Non-repetititve) $10.000 $10.000 item $0.00 $0.00
Internal Transfers $4.500 $4.500 item
Non-Repetitive $5.000 $5.000 item
Terminal Access Charge for Wire Transfers No charge No charge
8 Wire Advices
Via PC No Charge No Charge
Written No Charge No Charge
Incoming phone notification 4 $4.000 $4.000 item $16.00 $0.00
AUTOMATED Dial-UP SERVICE
9 Terminal Access for Account Balances
INSTANT BALANCE REPOR' 1 $40.000 $40.000 per Month $40.00 $40.00
Manual Balance Rept. 1 100 0 100 0
Automated Clearing House - Utility
Maintenance -ACH Auditor 1 $7.500 $7.500 per month $7.50 $7.50
Transmission 1 $1.500 $1.500 per activity $1.50 $1.50
ACH Transactions- 2 day 1200 $0.080 $0.080 per item $96.00 $96.00
Automated Clearing House - Employee Payroll
10 Maintenance- ACH Manager~ 1 $12.500 $12.500 per month $12.50 $12.50
Transmission 2 $1.500 $1.500 per activity $3.00 $3.00
ACH Transactions - 2 day 400 $0.080 $0.080 per item $32.00 $32.00
Bankcard Equipment Depends on Program - see separate proposal
Bankcard Payment Discom Depends on Program - see separate proposal
Bankcard Other Costs Depends on Program - see separate proposal
Escrow Services Depends on Structure - see separate section
Safe Deposit Box No charge No charge for 1 box
Exhibit I RANKING SERVICES BID PROPOSAL
Estimated Prior New
Monlhly Prior Seaf'fist Sent'fist Activity Estimated Esthnated
Volume* Unit Cost Unit Cost Unit Fee Fee
OTHER CHARGES:
Credits (depoMts) posted $0.200 $0.200 Deposit slip $0.00 $0.00
Stap Payments
Automated $10.0(30 $10.000 Stop Placed $0.00 $0.00
Manual $10.000 $10.000 Stop Placed $0.00 $0.00
Check Reconciliation Based on Estimated Vol. Per Mth on Paid Item Plan $85.00 $85.00
NOTE: THE CITY IS NOT CURRENTLY USING THIS SERVICE
Redeposited Returned Items (PTA's) $0.500 $0.500 $0.00 $0.00
Expre~ Tax Service No Charge No Charge $0.00 $0.00
Night Depository Services
1st Bag $12.000 $12.1300 per year
Each additional bag $6.000 $6.000 per year
IF plastic bags are utilized, there are no Night Depository Charges.
TOTAL MONTHLY CHARGES $1,074.05 $1,201.20 '~'
PERCENTAGE INCREASE IN FEES 11.84% ~
MINIMUM DAILY BALANCE if PAID THROUGH ANALYSIS Avg. Balanc Avg. Balam
depends on Earnings Rate allowance for the month.
DAYS REQUIRED FOR PAYROLL DIRECT DEPOSIT 2 Days 2 Days (EX. Late Wednesday Mtemoon for Friday morning Payd~e)
As an authorized representative of the above bank, I do hereby certify that I have read the City of
Bremerton's requcet for propoeal of banking services and fully understand its requirement~ In addi-
tion, this institution meets the bank specifications outlined herein and has adequate personnel,
equipment and facilities ta fulfill the City of Bremerton's banking needs. The latest Statement of
Financial Condition is attached.
Date: Date:
Jane D. Towery
Vice President - Public Sector Banking
Fed Reserve requirements, or 3.15%. What we propose are the following options:
· the City can pay for the prior month's fees by a 30-day CD based on the 90-day T-Bill
rate, but with no reserves! Thus, the City immediately earns 10% mom on its dollars.
· Or if the City is comfortable opening a 90-day CD, then Seafirst will give the City
credit for 105% of the 90-day T-Bill, which equates to over a 16% increase in yield
on its balances.
· For a 6 month or 1-year CD, we'd even be willing to pay more! Just think of the freed
dollars to invest in another investment which will earn hard dollars for the City.
· Use a CD or balances only if the alternative investment options' rotes are less. For
example, ffthe State Pool is yielding 4% and the best CD rate we can offer is 3.75%,
then the City is better off investing funds than leaving balances. We are happy to
work on a month to month basis, as long as the analysis at year-end comes out zero!
When all of the fees are netted together, I think the numbers will show that our fees have
not increased over the prior years. Plus with the efficiencies of using a PC and
consolidating the City's relationship at one bank, the City's operating costs should
decrease.
When all fees and other factors are rolled together, I think the numbers will show that
Seafirst's proposal offers the best overall value to the City. We stand by the City in what
ever it needs - in any financial need or otherwise. We consider ourselves a good team
partner with the City, and hope you share the same opinion.
Please don't have any doubt of how important we consider the City's business, ff you
have any questions, please don't hesitate to call.
Best regards,