HomeMy WebLinkAboutSR - AGR-5372.C - BANKING SERVICESAGENDA ITEM
Date: February 10, 2015
TO: Honorable Mayor and
Members of the City Council
THRU: John W. Sibley
City Manager
FROM: William M. Kolbow
Acting City Treasurer/
Finance Director��
1. SUBJECT
Approve the agreements with Wells Fargo Bank for banking services by executing a 5 -year
fixed price contract with an option of three additional one year (1) increments under the
same terms and conditions.
2. SUMMARY
The City has been banking with Wells Fargo Bank since January 2009. With the ongoing changes
in technology and treasury management practices occurring within the banking industry, the City
determined that a review of services offered was appropriate at this time as a prudent procurement
practice. In October 2014, formal bids were sent out for banking services and the City received
four responses. Based on the evaluation of these bids, staff is recommending the City continue its
banking relationship with Wells Fargo Bank.
13. RECOMMENDATION /ACTION
Approve the attached agreements for banking services with Wells Fargo Bank.
4. FISCAL IMPACT
The City's current banking services with Wells Fargo Bank cost approximately $110,000 annually
for the services within the scope of the Banking Services Request for Proposal (RFP). These costs
are netted against investment interest income (account number 44110), which is allocated to all
funds. The new exclusive Wells Fargo banking services agreement will result in savings of
$10,000 as a retention credit offered by the bank and approximately $23,000 a year compared to
our current fees.
ReviewedNerified B
City Manager
Finance Direct
To Be Presented By:
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Plan/Environ
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5. STRATEGIC PLAN GOAL(S)
2d. Be a Fiscally Healthy Community — Effectively manage and develop City assets.
G. GENERAL PLAN IMPLEMENTATION
X7/:1
7. DISCUSSION and BACKGROUND
The City's banking relationship is currently with Wells Fargo Bank. Our overall experience with
our current bank has been satisfactory. Staff recently completed the Banking Services RFP to
evaluate the current market environment for banking services and select a financial institution that
best meets the needs of the City and make improvements where possible. The RFP was advertised
locally. The City sent the RFP to nine banks that expressed an interest to bid. Four banks submitted
proposals. They were Wells Fargo Bank, U.S. Bank, Union Bank, and Bank of America.
Key criteria used to evaluate the proposals included reliability and quality of customer service,
ability to meet current and projected service requirements over the term of the banking agreement,
overall cost, experience with public sector clients, financial strength of the banking institution, and
thoroughness of the conversion plan.
The costs for all average monthly services including merchant card charges (credit and debit cards)
in the proposals are estimated as follows:
Wells Fargo Bank $7,871
U.S. Bank $8,764 (provides a relationship transition credit of $40,000 over an
8 -year contract)
Union Bank $9,702
Bank of America $13,204
After reviewing all the proposals, staff recommends to continue the banking services with Wells
Fargo Bank. The bank has demonstrated their ability to meet the City's banking services needs
and provide quality customer service. They offer their services at a competitive cost that includes
a retention credit of $10,000 and a reduced pricing of approximately $23,000 annually. By staying
with Wells Fargo Bank, the City will not lose staff time or incur the expense of switching banks.
Staff anticipates Wells Fargo Bank to continue to be a provider that can benefit the City to attain
efficiencies and leverage technology to keep pace with our banking needs.
The City Attorney's office has reviewed and approved the agreements.
8. ATTACHMENTS
Attachment A — Treasury Management Product Enrollment
Attachment B — Merchant Services Pricing Terms
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Attachment C — Merchant Services Government Program Guide
Attachment D — Safekeeping Agency Agreement
Attachment E — Master Agreement for Treasury Management Services
Attachment F — Banking Services Request for Proposal
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