11.
City Council Work Session
- Meeting Date:
- 09/26/2017
- Co-Submitter:
- Rick Tadder
- From:
- Brandi Suda, Finance Director
TITLE
Discussion on banking service procurement policy considerations.
STAFF RECOMMENDED ACTION:
Receive Council direction and feedback on the key policy considerations we should include in the evaluation when procuring banking services for the City.
EXECUTIVE SUMMARY:
The City needs to procure a new banking services contract as the contract with Wells Fargo is expired. City staff is seeking Council's direction and feedback on policy considerations desired as part of the procurement evaluation. These policy considerations could include sustainability, community investment, local lending, local branch offices, social responsibility as well as many others, to the extent feasible.
INFORMATION:
The last formal Request For Proposal (RFP) was completed in 2001. Wells Fargo was awarded the contract. The City has been banking with Wells Fargo for over 20 years, and their contract has expired. Wells Fargo has continued to honor our contract with them. Banking fees with Wells Fargo over the past three years have ranged from $45,000 to $54,000 annually, net of the earnings allowance. An earnings allowance is a credit based on cash balances that offset the monthly charges.
The City needs a vendor for bank services that has the infrastructure and resources to ensure the security of the city financial assets, transactions and information, as well as maintains 102% collateralization of City deposits. The City also needs a full service bank with governmental expertise. It is critical that the City can quickly and efficiently pay our employees and vendors. We need to ensure timely and accurate deposits of City funds, the ability to accept numerous tenders, and provide a number of payment options to our customers. These services are critical to City staff in order to perform job duties effectively and efficiently.
The following PowerPoint presentation provides an overview of City banking services and needs followed by a Council discussion on key policy considerations surrounding banking services procurement. City staff will be using Council direction and feedback as well as the City procurement policies to determine the most appropriate procurement method for securing a banking services contract. Staff will work on the procurement over the next several months and plan to have a contract in place by the spring of 2018.
The City needs a vendor for bank services that has the infrastructure and resources to ensure the security of the city financial assets, transactions and information, as well as maintains 102% collateralization of City deposits. The City also needs a full service bank with governmental expertise. It is critical that the City can quickly and efficiently pay our employees and vendors. We need to ensure timely and accurate deposits of City funds, the ability to accept numerous tenders, and provide a number of payment options to our customers. These services are critical to City staff in order to perform job duties effectively and efficiently.
The following PowerPoint presentation provides an overview of City banking services and needs followed by a Council discussion on key policy considerations surrounding banking services procurement. City staff will be using Council direction and feedback as well as the City procurement policies to determine the most appropriate procurement method for securing a banking services contract. Staff will work on the procurement over the next several months and plan to have a contract in place by the spring of 2018.