The Finance Department recently prepared a Request for Proposals (RFP) for Depository and Banking consultant services. The current contract with US Bank expires February 28, 2013. The 43 page RFP was advertised in the Billings Times on October 18 and October 25, 2012. Seven banking institutions were also sent copies of the RFP via e-mail.

The selection committee consisted of Pat Weber, Liz Kampa-Weatherwax, Teri Walker and Gail Rogeness. Proposals were received from Wells Fargo Bank, Commerce Bank and US Bank. The committee evaluated the proposals and unanimously selected the proposal from US Bank. The following response elements were considered: Proposal Compliance, Comprehensiveness of Services Provided, Related Experience, Firm Stability, Prior City Experience, Assigned Individuals, Account Analysis, and Charges for Services.

The State of Montana recently executed a 10-year banking contract due to all the technology involved with banking services and the amount of time/effort and cost it would take to switch to another vendor. The City of Helena’s Council recently approved a resolution stating that a banking RFP was not necessary if the City felt the service provided was adequate and the pricing fair.

The City of Billings also evaluated all of the banking services and technology involved with those services. Based on that evaluation, the contract with US Bank is recommended to be for a 10-year time frame beginning on March 1, 2013, and expiring on February 28, 2023.

Council may approve the contract or not approve the contract and provide guidance to the staff.

The banking service charges will be paid for by interest earned on a Certificate of Deposit in the amount of $9 million. The interest rate will be at a minimum of .75% or Fed Funds Flat if it is higher for the first five years of the contract. Fees and the method of payment for years six through ten will be negotiated with US Bank.

Staff recommends that the City Council approve, and the Mayor sign, the contract with US Bank.