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1 ORDINANCE NO. 17,861
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3 AN ORDINANCE AMENDING SECTION 2 -191, 2 -192, AND 2 -194
4 OF THE LITTLE ROCK CITY CODE, 1998 REGARDING
5 BANKING SERVICES; REPEALING SECTIONS 2 -195 AND 2 -196;
6 DECLARING AN EMERGENCY; AND FOR OTHER PURPOSES.
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8 WHEREAS, the City began a process of competitive bidding for banking services with
9 its fiscal year 1989, amended in 1994, and now, after several years of experience, changes to
10 the established selection procedures appear to be in the interest of the City.
11 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS
12 OF THE CITY OF LITTLE ROCK, ARKANSAS:
13 SECTION 1. Section 2 -191 of the Little Rock City Code, 1988, is amended to read
14 as follows:
15 "Beginning January 1, 1999, the City shall contract for banking services
16 every two (2) years with optional annual renewals, not to exceed two renewals.
17 The contract will be awarded after competitive bids for banking services have been
18 evaluated according to criteria established by the City Manager and the Finance
19 Director. In deciding to award the contract for banking services, the City shall give
20 preference to the banking institution that offers the lowest cost of services
21 requested and the highest Community Reinvestment Act ratings, while giving
22 consideration to new or unique services offered by the banking institutions that can
23 be quantified to provide financial benefits to the City."
24 SECTION 2. Section 2 -192 of the Little Rock City Code, 1988 is amended to
25 read as follows:
26 "To be eligible to submit a bid, a banking institution must meet the
27 following qualifications:
28 (1) The banking institution must be licensed by the federal
29 government and be a part of all relevant federal insurance
30 plans;
31 (2) The banking institution must be licensed by the State of
32 Arkansas;
33 (3) The banking institution must have at least four (4) staffed
34 full service locations within the boundaries of the City of
35 Little Rock, Arkansas;
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1 (4) The banking institution must provide all of the services
2 being sought by the city in its requests or proposals;
3 (5) The banking institution must have a Community
4 Reinvestment Act rating of Satisfactory or higher within the
5 Greater Little Rock, Arkansas Metropolitan Statistical Area."
6 SECTION 3. Section 2 -194 of the Little Rock City Code, 1988, is amended to read
7 as follows:
8 "In order for a banking institution to be considered a qualified bidder, the bank must
9 be capable of, and agree to, provide the City full banking services. These services will
10 be paid for on a fee for services used basis. These services will include, but not be
11 limited to the following:
12 (1) Accept deposits and process checks. Reconciliations will be
13 furnished on computer tapes for, at the minimum, the City's
14 combined and payroll accounts, and other accounts as
15 requested by the City.
16 (2 Complete wire transfers, night depository services,
17 investment processing services, coin sorting and counting
18 services.
19 (3) Collateralize at least one hundred and two (102) percent of
20 the daily account balances with U.S. government and
21 selected agency securities of the U.S. government with
22 maturities not to exceed eighteen (18) months, or other
23 instruments authorized by Arkansas law.
24 (4) Provide the City monthly statements that detail account
25 balances, average interest rate earned, and the dollar amount
26 of interest credited to various City accounts.
27 (5) Direct deposit of payroll services for those City employees
28 electing to use this service.
29 (6) Cash all checks issued by the City and drawn on the
30 servicing bank at all branches of the servicing bank within
31 the Greater Little Rock Metropolitan Statistical Area."
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1 SECTION 4. Sections 2 -195 and 2 -196 of the Little Rock City Code, 1988, are hereby
2 repealed.
3 SECTION 5. Emergency. It is hereby found and determined by the Board of Directors
4 that the current ordinance on Banking Services lacks flexibility in the number of banks eligible
5 to bid for such services, and that the current limit of two years does not allow the winning
6 bidder sufficient economies of scale, which would result in a lower cost to the city for banking
7 services. Further, the city desires to emphasize the criteria of a rating of satisfactory or better
8 under the Community Reinvestment Act. An emergency is therefore declared to exist, and this
9 ordinance being necessary for the immediate preservation of the public peace, health, and safety
10 shall take effect and be in force from and after its passage.
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PASSED: November 2, 1998
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ATTEST: {�'
16 — 'm``a Ay nogew eA
ROBBIE HANCOCK
17 CITY CLERK
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19 APPROVED AS TO FORM:
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21
22 THOMAS M. CARPENTER
23 CITY ATTORNEY
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APPROVED:
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