Title
An Ordinance approving the award of RFP No. 2024-003 to U.S. Bank N.A to provide banking services, merchant services and purchasing card services for a one-year term with up to four, one-year renewals and authorizing the City Manager to execute agreements to secure the same by and on behalf of the City. (F&BC 7/1/24)
Body
Issue/Request:
An Ordinance approving the award of RFP No. 2024-003 to U.S. Bank N.A to provide banking services, merchant services and purchasing card services for a one-year term with up to four, one-year renewals and authorizing the City Manager to execute agreements to secure the same by and on behalf of the City.
Key Issues:
The City currently conducts banking business under a contract with U.S. Bank N.A that was established with Bill No. 19-167 in August 1, 2019. The decision was made to bid the banking services in order to review existing services and costs, consider implementation of new technologies, and integration with the new ERP- Workday and Cashiering software- Teller.
RFP No. 2024-003 was issued via Public Purchase to solicit interest in the City’s banking service needs. Six banks responded to the RFP. The evaluation committee concluded that all six responding banks were well qualified to provide the requested services. The analysis of cost and revenue data in the responses was a complex process because of the numerous services, the package incentives offered, and the interrelationship of some of the services. During the evaluation process, the committee concluded that the Lockbox Services and Trust services should not be awarded. Lockbox services will not be awarded because consideration is being given to handling lockbox services internally in the City’s Treasury Division. The current lockbox contract expires with UMB Bank until June 30, 2025 thereby allowing time for a more thorough review of that option. Trust services are used when bonds are issued and can be quoted at each issuance. The cost of this trust/paying agent service is around $300/year per issuance. Evaluation committee members were from Water, Parks and Finance. The scoring committee determined that the award should remain with US Bank for Banking Services, Merchant Card and Purchasing cards.
Proposed Committee Motion:
I move to recommend to City Council for approval this Ordinance approving the award of RFP 2024-003, to U.S. Bank N.A to provide banking services, merchant services and purchasing card services for a one-year term with up to four, one-year renewals and authorizing the City Manager to execute the same for the City.
Presenter
Tiffany Morawiec, Deputy Director of Finance
Susan Brockhaus, Cash Management Officer
Recommendation
Staff recommends the Finance and Budget Committee recommend approval of the associated ordinance to enter into contracts needed for banking services, merchant services and purchasing card services for the City.
Committee Recommendation