CITY OF CALLAWAY BOARD OF COMMISSIONERS SPECIAL MEETING MINUTES MARCH 14, 2017-10: 00 A.M. The Callaway Commission met in special session with, Bob Pelletier, Mayor, Mayor Pro tern Pamn Henderson, and Commissioners Melba Covey, Ron Fairbanks and Joe Townsend in attendance. Also present was Tim Legare, Interim City Manager; Kevin Obos, City Attorney; Janice L. Peters, City Clerk; Beverly Waldrip, Finance Director, David Joyner, Fire Chief, Oscar Martinez, Public Works Director. The meeting was called to order by Mayor Pelletier, followed by a moment of silence and the Pledge of Allegiance. Mayor Pelletier explained the interview and presentation process, advising that at the end of presentations Commission will make an award. PUBLIC PARTICIPATION There was none. Presentation and Award of Banking Services RFP FI2017-01 BB& T BB& T Representatives Jason Morehouse, Vice- President and Market Leader for the Florida Panhandle and Debra Sifford, Payment Solutions/ Treasury Management, gave a brief overview of their history with BB& T and their services, which are mainly in the Southeastern United States. Ms. Sifford advised BB& T owns all the services they provide. Commissioner Fairbanks asked for an explanation of the 50 basis points. Ms. Sifford explained that is what will be paid on interest and equals half of a percent. Ms. Sifford further reviewed this and earnings credit rate paid for service charges. She advised this covers up to $ 3 million. Mayor Pelletier asked where the support office will be. Ms. Sifford advised Mr. Morehouse would be the City' s contact in the local Panama City office. She would be the contact for debt management. Mayor Pelletier asked if Merchant Services would be handled through BB& T. Mr. Morehouse confirmed this process is owned by BB& T. Mayor Pelletier asked what makes their bank different. Mr. Morehouse advised they pride themselves on their services and involvement in the community as they are customer driven. Commissioner Henderson asked where the investment manager would be located. Mr. Morehouse advised they are not local but a representative out of Dothan could handle the request. Ms. Sifford advised that is their job to be available to the local markets. Special Meeting Minutes March 14, 2017 Page 1
Commissioner Henderson asked about the transition. Ms. Sifford indicated a management implementation team will handle the set up and she would be on hand during the transition and they will also provide free training to staff. Commissioner Henderson asked if lockbox is utilized, would the checks be ach or deposited. Ms. Sifford advised they are deposited. Commissioner Henderson asked about a timeline for the conversion. Ms. Sifford advised 3-4 days. Commissioner Covey asked statewide how many branches there are. Mr. Morehead advised there are 160, 000 branches nationwide but was not sure how many in the State of Florida. Ms. Sifford further reviewed investments. HANCOCK BANK Ben Lee, Market Leader for Panama City reviewed the history of Hancock Bank advising they are a large regional bank focusing on port cities along the gulf coast. He advised they have 30 employees in Bay County. Sophia Berling, Public Funds Director reviewed services, advising Lockbox is in house but handled out of their Dallas office. Commissioner Townsend asked where the nearest bank is. Ms. Berling advised their office is located on Hwy. 77. Commissioner Townsend asked about the office previously located on Tyndall Parkway and how sound the City' s investments would be. Mr. Lee advised Hancock Bank has been 4-5 star ratings for the last 105 quarters. He also advised that during the downturn some branches had to be closed. Commissioner Fairbanks asked about the 70 basis points. Ms. Berling advised this will be on checking accounts. Commissioner Fairbanks asked the cash back on the P- card. Ms. Berling indicated it is based upon how much is spent and ranges from 50 basis points to 1 percent. The earnings credit rate used to offset service charges is at 80 basis points. Mayor Pelletier asked who handles merchant services. Ms. Berling advised First Data out of New Orleans. The local rep is out of Destin, who covers the Florida panhandle. Mayor Pelletier asked why the City should move to Hancock Bank. Ms. Berling referenced customer service with local representatives. She indicated a Destin or Ft. Walton representative will handle the transition, as well as treasury management. Commissioner Henderson asked if Hancock has an Investment Manager locally. Ms. Berling confirmed and Mr. Lee indicated two people, one is out of New Orleans and one is out of Gulfport, MS. Commissioner Covey asked if when someone comes from another state how will that effect time response and expense. Mr. Lee indicated a couple of day turnaround at no expense to the City, but a lot is done electronically. City. He indicated there are three offices in Panama Special Meeting Minutes March 14, 2017 Page 2
REGIONS BANK Steve Aase, Vice President, reviewed their Bay County team, made up of nine branches, along with Laurie Cullen-Norris, Treasury Management Officer, also in Bay County. Commissioner Townsend asked why the City history with the City, location and service capabilities. would pick Regions. Mr. Aase advised Commissioner Fairbanks asked what the rate on return is for deposits, investments, basis points, etc. Mr. Aase advised they offer 32 basis points, with a proposed 40 for this RFP. Commissioner Fairbanks asked the return rate on the P- card, which Ms. Norris advised is based upon spending. Mayor Pelletier asked about Investment Treasury support. Ms. Norris will be the local representative, along with Heather Lane. He further asked why we need to stay with Regions. Mr. Aase referenced their familiarity with the account and convenience to the City, as well as their commitment to the City and County. Mayor Pelletier inquired about Merchant Services, which will be handled locally, and basis points. Mr. Aase advised the city is running at a surplus for service credits. Ms. Norris reviewed other possible services the City can use. Commissioner Henderson asked about the 34 basis points referenced in the RFP. Ms. Norris advised that is specific to a certain type of investment. Earning credits will be at 40 basis points. She asked about P- card rebates. Ms. Norris advised the minimum spending is 750,000 annually and $ 3-5 million to receive the 6% annually. Services were further reviewed, as well as the stability of the Callaway branch going forward. Commissioner Covey asked investment management locally. Mr. Aase advised the head of the institutional trust is out of Mobile and each entity has their own individual manager. Commissioner Covey asked if City staff has requested more information about additional services or been in to meet with banking staff. Ms. Norris advised not recently. Commissioner Covey asked about check scanners, which Ms. Norris felt would be an asset to the City, along with vault services. SUMMIT BANK Clint Mizel, Vic-President, Frank Hall, CEO and Laura Murphrey, Private Banker, were on hand. Mr. Mizel reviewed that Summit Bank is a local bank with headquarters locally. Summit was established in 2008 and there are two locations, on 23" 4 street and Panama City Bank. He indicated that Ms. Murphrey will be assigned to the City. He also reviewed the banks audit. Regarding investments, he advised Greg Scott is in charge and local. Lockbox and online payments are handled outside the bank as well as credit card processing. Special Meeting Minutes March 14, 2017 Page 3
Commissioner Townsend asked what holds Summit Bank above its competitors. Mr. Mizel felt it to be the experience of the team and locality. Commissioner Fairbanks asked what Summit' s basis points are. Mr. Hall advised their proposal reflects 50 basis points. Commissioner Fairbanks asked what the cash back is for the P- card. Mr. Mizel advised they have a tier with a minimum of$500,000 at 1% rebate. Commissioner Henderson asked is there any possibility of having a branch on the east side of the County. Mr. Mizel advised not at this time. Commissioner Covey asked how many local investors make up the bank. Mr. Hall advised about 100 investors. She asked about the timeframe for transition and training. Mr. Hall indicated 30-90 days. Commission Discussion The staff scoring sheets were reviewed and discussed by Commission, who were not prepared to award the RFP. Consensus of Commission was to delay award until the March 28th regular meeting of Commission. They will do their own rankings of the proposals submitted. Ranking sheets will be turned into the City Clerk at the beginning of the meeting. City Hall Renovations Interim City Manager Legare reviewed the proposed costs of$40, 000 total, which included all windows, repainting, and renovation of the lobby with a new entry. Mayor Pelletier indicated Commission wanted the total cost for everything, including the roof. Discussion continued. Commissioner Henderson recommended staff break down the costs individually with the possibility of doing some projects in-house versus contracting out the project. She asked about the request for bids for roofing, which City Manager Legare is working on. City Manager Legare, regarding the asbestos, advised as long as it is encapsulated and not disturbed it will not be a problem. City Manager Legare will bring back comparative figures for doing the project in-house, including labor costs. Mayor Pelletier felt, in light of complaints received regarding customer service, having audio and video at every customer service station will protect everyone, which is legal as long as notices are posted. Regarding the outside of the building, stucco, painting and siding options were discussed, as well as a warranty for the roof. Commission consensus was to schedule a Special meeting for April 20th at 1: 00 pm to readdress. Special Meeting Minutes March 14, 2017 Page 4
ADJOURNMENT There being no further business, the meeting was adjourned at 12: 38 p.m. Attest: 6dk Mot Mayor e.) 4111W. dic r anic-. Peters, MMC, City Clerk Special Meeting Minutes March 14, 2017 Page 5