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ANDINANCE NO.
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AN ORDINANCE AMENDING LITTLE ROCK CITY CODE SECTION
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4 2 -191 REGARDING BANKING SERVICES; AND FOR OTHER
5 PURPOSES.
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7 WHEREAS, the City began a process of competitive bidding for banking services
8 with its fiscal year 1989 and now, after several years of experience, changes to the
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established selection procedures appear to be in the interest of the City.
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11 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
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13 THE CITY OF LITTLE ROCK, ARKANSAS:
14 SECTION 1. The last sentence of Code Section 2 -191 is hereby amended to read
15 as follows:
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17 "In deciding to award the contract for banking services, the
18 City shall give preference to the banking institution that
offers the highest net interest yield on deposited funds,
19 while giving consideration to new or unique services offered
20 by banking institutions that can be quantified to provide
21 financial benefits to the City."
22 SECTION 2. Code Section 2 -192 (3) is hereby amended to read as follows:
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24 "The banking institution must have at least six (6) staffed,
25 full service locations within the boundaries of the City of
Little Rock, Arkansas."
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27 SECTION 3. Code Section 2 -194 is hereby amended to read as follows:
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29 "In order for a banking institution to be considered a
qualified bidder, the bank must be capable of, and agree to,
30 provide the City full banking services. These services may
31 be at no charge or at a fee schedule that is offset by interest
32 to be paid on deposited funds. These services will include,
but not be limited to, the following:
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34 (1) Accepting deposits and processing checks.
35 Reconciliations will be furnished on computer
36 tapes for, at a minimum, the City's combined
and payroll accounts, and other accounts as
mutually agreed upon.
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1 (2) Complete wire transfers, night depository
2 services, investment processing services, coin
3 sorting and counting services.
4 (3) Collateralize at least one hundred and two
5 (102) percent of the daily account balances
6 with U. S. government securities, or other
7 instruments authorized by Arkansas law.
8 (4) Provide the City monthly statements that
9 detail daily account balances, average interest
10 rate earned, and the dollar amount of interest
11 credited to various City accounts.
12 (5) Direct deposit of payroll services for those
13 City employees electing to use this service.
14 SECTION 4. Code Section 2 -195 is hereby amended to read as follows:
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16 "It is in the public interest that public deposits not remain
17 indefinitely with only one institution, and that all banking
18 institutions in the city have the opportunity to provide
banking services to the City. Therefore, if, at the time of
19 competitive bidding for banking services, a banking
20 institution submitting a bid has held the City contract for
21 banking services for the immediately preceding two (2)
years, that institution must submit a bid that will yield the
22 City three - tenths of one percent higher daily interest yield
23 than the next highest bidder in order to be awarded the
24 contract."
25 SECTION 5. The last sentence of Code Section 2 -196 (1) is hereby amended to
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read as follows:
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28 "To assure that the City's economic advantage in rotating
29 the contract among banking institutions does not defeat the
30 City's desire to achieve a reasonable rate of interest on
deposited funds, but at the same time does not give unfair
31 competitive advantage to a banking institution holding the
32 banking services contract, the City will require that for the
33 contract period beginning January 1, 1995, and continuing
every time the contract is bid for periods thereafter, that the
34 banking institution holding the present banking services
35 contract will have to bid a daily interest yield that is three-
36 tenths of one percent above the next highest bidder in order
to be awarded a consecutive banking service contract."
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1 SECTION 6. Code Section 2 -196 (2) is hereby amended to read as follows:
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3 'Because the collection and deposit of cash funds must be
4 made on a daily basis by diverse City departments located
throughout the city limits, the City requires that a banking
5 institution have six (6) fully staffed service locations located
6 within the city limits before an institution is deemed eligible
7 to submit a bid for City banking services.
8 SECTION 7. That all other sections of the City Code remain in full force and
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R -70594
effect.
PASSED: May-17, 1994
ATTEST:
4 t: *a. k ON5111
APPROVED AS TO FORM:
CITY ATTORNEY _
APPROVED:
WK�,