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ORDINANCE NO. 15,587
AN ORDINANCE TO ESTABLISH CRITERIA
TO BE FOLLOWED TO COMPETITIVELY BID
CITY BANKING SERVICES; TO REPEAL
ORDINANCE NOS. 10,911 AND 10,767;
TO DECLARE AN EMERGENCY, AND FOR
OTHER PURPOSES.
M
NOW, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY
OF LITTLE ROCK, ARKANSAS:
SECTION 1. Beginning January 1, 1989, the City shall
contract for banking services every two years. The contract will
be awarded for a two year basis after competitive bids for
banking services have been evaluated according to criteria
established by the City Manager and the Department of Finances.
In deciding to award the contract for banking services, the City
shall give preference to the banking institution that offers the
highest daily interest yield.
SECTION 2. To be eligible to submit a bid, a banking
institution must meet the following qualifications:
(a) The banking institution must be licensed by
the federal government and be a part of all
relevant federal insurance plans;
(b) The banking institution must be licensed by
the State of Arkansas;
(c) The banking institution must have at least
three staffed full service locations within
the corporate boundaries of the City of
Little Rock, Arkansas;
(d) The banking institution must provide all of
the services being sought by the City in its
requests for proposals.
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1 SECTION 3. It is the policy of the City of Little Rock to
2 have a depository agreement and to place all funds controlled by
3 the Board of Directors with one bank that meets the criteria set
4 forth in this ordinance and that properly responds to all the
5 criteria set forth in the City's request for proposal for
6 banking services.
7 SECTION 4. In order for a banking institution to be
8 considered a qualified bidder, the bank must be capable of, and
9 agree to, provide the City full banking services at no charge.
10 These services will include, but not be limited to, the
11 following:
12 (a) Accepting deposits and processing checks.
13 Reconciliations will be furnished on
14 computer tapes for the City's combined
15 account, its payroll account, and possibly
16 additional accounts in the future;
17 (b) Complete wire transfers, night depository
18 services, investment services, coin sorting,
19 and counting services;
20 (c) Collateralize at least 102 percent (102 %) of
21 the daily account balances with U.S.
22 Government Securities, Government Agency
23 Securities, or other instruments authorized
24 by Arkansas law;
25 (d) Provide the City a monthly statement that
26 details daily account balances, average
27 interest rate applied, and the dollar amount
28 of interest credited various City
29 accounts.
30 SECTION S. If, at the time of competitive bidding for
31 banking service, a banking institution submitting a bid has held
32 the City contract for banking service for the immediately
33 preceding two years, that institution will have to submit a
34 daily interest yield that is 1 /10th of 1% higher than the next
35 highest daily interest yield in order to be awarded the
36 contract.
1 SECTION 6. Legislative intent. It is the intent of the
2 City of Little Rock to provide an equal opportunity to all
3 banking institutions located within the City, that meet the
4 criteria set forth within this ordinance and established in any
5 request for proposals, with the opportunity to be awarded the
6 City contract for banking services.
7 (a) It is to the City's economic advantage to assure that
8 the banking services contract is shared by local banking
9 institutions that meet the criteria set forth in this ordinance.
10 However, the bank holding the biennial banking services contract
11 may be in an advantageous position in the competitive bidding
12 process by virtue of the work and procedures that had been
13 established over the preceding two years. To assure that the
14 City's economic advantage in rotating the contract among banks
15 does not defeat the City's desire to have the highest daily
16 interest yield, but at the same time does not give unfair
17 competitive advantage to a bank holding the banking service
18 contract, the City will require that beginning January 1, 1991,
19 and continuing every time the contract is bid thereafter, that
20 the bank holding the present banking services contract will have
21 to be the high bidder on the daily interest yield by 1 /10th of
22 1% above the next highest bidder in order to be awarded a
23 consecutive banking service contract.
24 (b) Because the collection and deposit of cash funds must
25 be made on a daily basis by diverse City departments located
26 throughout the City limits the City requires that three fully
27 staffed service locations be located within the City before a
28 banking institution is deemed eligible to submit a bid for City
29 banking services.
30 SECTION 7. This ordinance specifically repeals Little
31 Rock Ordinances 10,911 and 10,767; further, this ordinance
32 repeals all other laws, and parts of laws, that are
33 inconsistent with it to the extent of such inconsistency.
34 SECTION 8. The ability to develop a banking services
35 contract and investment policy that is in the best interest of
36 the City and that will result in the highest daily interest
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M M M M M
yield on City monies is a matter that directly affects the
health, safety, and welfare of the citizens of the City of
Little Rock. To be able to put this policy into effect
immediately upon the passage of this ordinance it is necessary
to assure that all steps are taken for full implementation of
this policy by January 1, 1989. Therefore, an emergency is
declared to exist and this ordinance shall be in full force and
effect immediately upon its approval.
PASSED: November 15, 1988
A T:
CI4 CLERK JAN' CZECH
APPROVE AS 4L
— N MARK STODOLA, CITY ATTORNEY
APP VED:
7
YoR LOTTIE SHACKAFORD
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