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HomeMy WebLinkAboutContract 45064-R1 CITY SECREI°ARY CONTRACT NO. FIRST RENEWAL OF FORT WORTH CITY SECRETARY CONTRACT 45064 BANKING SERVICES AGREEMENT This FIRST RENEWAL OF FORT WORTH CITY SECRETARY CONTRACT 45064 BANKING SERVICES AGREEMENT ("Renewal") is made and entered into by and between the City of Fort Worth, Texas, hereinafter referred to as CITY, whose address is City of Fort Worth, 1000 Throckmorton, Fort Worth, Texas 76102, and JPMorgan Chase Bank, N.A., hereinafter referred to as BANK, whose principal office for the purpose of this Renewal is located at 420 Throckmorton, Fort Worth, Texas 76102. WHEREAS, CITY and BANK are parties to a Banking Services Agreement, the same being Fort Worth City Secretary Contract 45064 dated November 4, 2013 ("Agreement"); and WHEREAS, the Agreement provides for an initial three-year term and that the Agreement may be renewed for up to two additional, one-year periods by mutual written agreement between the CITY and the BANK; and WHEREAS, the Agreement's initial term expires on September 30, 2016; and WHEREAS, the parties wish to exercise the first renewal option and extend the Agreement for an additional one-year period under the same terms and conditions; NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements contained herein, CITY and BANK hereby agree as follows: 1. CITY and BANK mutually agree to renew and extend the Agreement, for a one- year first renewal period under the same terms and conditions, with such renewal term to begin October 1, 2016, and continue thereafter in full force and effect through September 30, 2017. 2. All terms and conditions of the Agreement that are not amended herein shall remain in full force and effect throughout the first renewal term. First Renewal of Banking Services Agreement AL������ �� Page 1 of 2 IN WITNESS WHEREOF, the parties he eto have executed this Rene al in multiples in Fort Worth,Tarrant County,Texas,this day of ,2016. FOR THE CITY OF FORT WORTH: FO ORGAN CHASE BANK,N.A.: BY;! 'b '�L BY: Susan Al nis J. chael ilson Assi City Manager Seni Vic President APPROVED AS TO F LEG Y: I BY: Denis C: roy Assistant City Attorn ATTEST Mary J. Kays V g °X City Secretary $ o� g our, a�`°� 13 OFFICIAL RECORD CITY SECRETARY T.WORTH,TX First Renewal of Banking Services Agreement age 2 of 2 F City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 10/22/2013 DATE: Tuesday, October 22, 2013 REFERENCE NO.: P-11595 LOG NAME: 13P13-0166 BANKING SUB.TECT: Authorize Agreements with JP Morgan Chase Bank, N.A., for Banking and Depository Services for all City Departments with an Estimated Cost of$433,333.00 Annually for a Term of Three Years and up to Two One—Year Renewals (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council authorize Agreements with JP Morgan Chase Bank,N.A.,for banking and depository services for all City departments with an estimated cost of$433,333.00 annually for a term of three years and up to two one—year renewals. DISCUSSION: The Financial Management Services will administer these Agreements, which will be used to provide banking and depository services for all City departments. These Agreements include all banking and depository services needed by the City with the exception of services associated with trust and asset management for oil and gas revenues, which are provided by Wells Fargo(M&C P-11467). A Request for Proposals (RFP) for banking and depository services was issued May 15, 2013. The City received three responses to the RFP. The evaluation team consisted of representatives from the Water, Municipal Court, Police, and Financial Management Services Departments. Proposals were rated on responsiveness, ability to provide required services and reports, banking services costs, earnings potentials, experience, references, continuity of bank and bank officials,creditworthiness and stability of the bank. Through the evaluation process, JP Morgan Chase Bank, N.A., was determined to have submitted the best evaluated proposal. Under the proposed Agreements, fees are calculated on a per—service basis. Although total fees for the services that are forecast to be required during the initial three year period are estimated in the amount of $1,300,000.00, Chase is offering a competitive earnings credit rate on cash balances, which can be used to offset fees. Because of the City's financial policy to keep a certain amount of ready cash to maintain liquidity and current low returns in other investment vehicles, Staff anticipates that the liquid cash maintained at the bank will earn enough credit to offset fees in Fiscal Year 2014, resulting in little or no out—of—pocket cost to the City. If the accounts do not earn sufficient credits to offset the fees in their entirety, Staff will identify budgetary savings to offset the net banking expenses and plan accordingly in future budgets. ADVERTISEMENT—This RFP was advertised in the Fort Worth Star—Telegram on Wednesdays from May 15, 2013 through June 19, 2013. Proposals were received from Bank of America, Wells Fargo and JP Morgan Chase Bank,N.A. M/WBE OFFICE — A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible. AGREEMENT TERM — Upon City Council approval, these Agreements shall encompass services beginning on October 1, 2013 and ending on September 30, 2016. RENEWAL OPTIONS —These Agreements may be renewed for up to two additional one—year periods at the City's option. Renewal does not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal terms. FISCAL INFORMATION: The Financial Management Services Director certifies that funds are available in the current operating budgets, as appropriated,of the General Fund and Water and Sewer Fund. BQN\\ FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers CERTIFICATIONS: Submitted for City Manager's Office by: Susan Alanis (8180) Originating Department Head: Susan Alanis (8180) Additional Information Contact: Jenny Kerzman (6030) ATTACHMENTS 1. OGO 1-5ZZZZZ—ZZZZZZZ.docx 2. PE45-57,ZZZZ-06040ZZ.docx 3. PE45-5ZZZZZ-070ZZZZ.docx 4. Waiver.PDF