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<br />SUBJECT: <br /> <br />PAGE TWO <br />UPDATE ON BANKING SERVICES PROCUREMENT PROCESS <br /> <br />DATE: <br /> <br />MARCH 15, 2010 <br /> <br />An Evaluation Committee consisting of Kevin Watson, Finance Director, Penney Bolte, Tax <br />Manager, and Barb Kelley, Accounting Manager reviewed and evaluated each proposal. <br />Selection criteria included, but was not limited to: <br />. The ability to meet current and projected service requirements over the term of the <br />banking agreement; <br />. The quality level of services to be performed and the proposed approach to cost control, <br />service monitoring, and administration; <br />. The aggregate banking service costs and the corresponding compensating balance; <br />. The earnings credit rate on compensating balances; <br />. The arrangement and rate for investments; <br />. The availability schedule for deposits; <br />. The financial strength and stability of the financial institution; <br />. The clarity, completeness, and timeliness of reports and statements; <br />. The overall completeness and responsiveness to the RFP; and <br />. The availability of other value-added banking services that will enhance efficiency and/or <br />save money for the City. <br /> <br />Due to the recent financial issues facing the City, the Committee paid special attention to the <br />proposed Annual Cost of Service and the proposed Earnings Credit Allowance. The schedule <br />below summarizes those two criteria for the six proposals. <br /> <br />City of Louisville, Colorado <br />Summary of Banking Service Proposals <br />Annual Cost of Services and Earnings Credit Allowance <br /> <br /> First Great JP <br /> Bank of National Western Morgan Key Wells <br /> the West Bank Bank Chase Bank Fargo <br />Annual Cost of Services (Exhibit A) 24,449 22,272 29,447 23,000 24,717 30,667 <br />Earnings Credit Allowance (Exhibit B) 1.00% 0.75% 0.50% 0.45% 0.40% 0.58% <br />Balance Required to Support $1 of <br />Services 1,177 1,569 2,354 2,616 2,943 2,029 <br />Required Monthly Compensating Balance 2,398,039 2,912,646 5,776,520 5,013,148 6,060,814 5,186,072 <br /> <br />Based upon the Annual Cost of Service and the Earnings Credit Allowance, the Committee <br />decided to interview First National Bank, JP Morgan Chase, and Key Bank. Bank of the West <br />was not recommended for interview due to an incomplete proposal and an apparent error in the <br />calculation of Required Monthly Compensating Balance. <br /> <br />The Committee held the interviews on March 4 and March 9, 2010. As a result of the <br />6 <br />