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Home My WebLink AboutCOW 2003-05-27 Item 4B - Contract - Banking Services with US Bank (Jun 2003 - May 2005)vitIA, i O e ail► 1906 Agenda Item Title: Original Sponsor: Timeline: Sponsor's Summary Recommendations: Sponsor: Committee: Administration: I Cost Impact (if known): I Fund Source (if known): Meeting Date 5/27/03 COUNCIL AGENDA SYNOPSIS Meetinz Date 5/27/03 Initials Prepared by 1 Mayor's review 1 Council review 1 OA I lie_ I ARD fr:10:' waeot.',,t #..e Original Agenda Date: 5/27/03 Approve U.S. Bank to provide banking services for the City of Tukwila Finance Safety Move forward to May 27, 2003 meeting Same as sponsor See attached N/A Action Affetiffiaffr X ITEM NO. 4 .b CAS Number: 03-071 Banking Services Contract Council Admin. Approve at June 2, 2003 Regular meeting. The contract with U.S. Bank expires May 30, 2003. After receiving bids from four banks (attached) we recommend that U.S. Bank be selected and authorize mayor to sign agreement. Meetinz Date 1 Attachments 5/27/03 Staff report dated May 15, 2003 with attachments 5/27/03 Finance Safety Committee minutes from May 19, 2003 meeting. To: Finance Safety Committee From: Alan R. Doerschel C1 21) Date: May 15, 2003 Subject: Banking Services Contract The City Of Tukwila Banking Services Contract expires May 31, 2003. Currently we use U.S. Bank as our banking services provider. We requested bids from local banks and received four bids (see attached proposal request). Summary of Submittals: Bank of Wells Element U.S. Bank America Kev Bank Fareo Banking Services $(10,285) $(11,364) $(6,840) $(10,332) Merchant Services (14,643) (15,527) (17,053) (14,753) Earnings Credit 27,500 25,300 23,000 23,000 Net Impact $2,572 $(1,591) $(893) $(2085) Annual Banking Services includes all costs of maintaining our account. Merchant Services includes the costs of handling all of the credit card transactions (over 21,000 per year). Earnings Credit reflects the income we receive from the bank for our compensating balance in our account and offsets the costs. Recommendation The Finance Department recommends retaining U.S. Bank as our service provider. This is based on the lower cost and the current excellent service provided. The City Council needs to authorize the Mayor to sign the agreement. City of Tukwila REQUEST FOR PROPOSAL I. PURPOSE OF REQUEST The City of Tukwila "City") is requesting proposals for its primary banking services. The City's needs are outlined in the following Request for Proposal "RFP II. TIME SCHEDULE The City will essentially follow this timetable, which should result in the implementation of a banking services agreement by June 1 or July 1 at the latest. Issue RFP Pre -bid Conferences/Interviews Deadline for Submittal of Proposals Selection of Firm Recommendation to City Finance Committee Council Approval Effective Date III. INSTRUCTIONS TO PROPOSERS A. All proposals and/or questions should be directed to: Alan R. Doerschel, Finance Director City of Tukwila 6200 Southcenter Boulevard Tukwila, Washington 98188 (206) 433-1838 Adoerschel(u ci.tukwilawa.us April 8, 2003 April 25-29, 2003 May 9, 2003 May 13, 2003 May 19, 2003 May 26, 2003 June 1 or July 1, 2003 B. All proposals must be in a sealed envelope and clearly marked in the lower left- hand comer: "RFP Banking Services C. All proposals must be received by May 9, 2003 prior to 5:OOp.m. Two copies of the RFP must be presented. No faxed or telephone proposals will be accepted. Late proposals shall be returned unopened. D. Proposals should be prepared simply and economically, providing a straight forward, concise description of provider capabilities to satisfy the requirements of the request. Emphasis should be on completeness and clarity of content. GENERAL INFORMATION The City of Tukwila is soliciting proposals for a primary banking relationship with a Financial Institution or Firm that operates an office within the city limits. The City will be contracting for the following general services for a two -year period beginning June 1, 2003 and ending May 31, 2005, with two 1 -year succeeding renewal periods optional at that time. Additions to or deletions from the proposal submitted shall be allowed only by the mutual and written agreement of the City of Tukwila and the chosen Bank, to be attached here as an amendment. Demand deposit checking accounts Overdraft protection Trust escrow agent services Investment safekeeping services Miscellaneous other services Tukwila will utilize a check system, as opposed to warrants. The City anticipates that proposed banking services would be compensated by the credit earned on average collected balances, but is also willing to consider other options. Tukwila is interested in Internet services including but not limited to: account reconciliation; check image retrieval, account analysis, on -line transactions and e- commerce. Details of Internet services information requested is identified in section F of this RFP. The City will consider Internet services available in the selection process by may elect to use none or any number of such services available. SERVICES REQUIRED Attachment "A" Scope of Services Credit/debit card acceptance Corporate credit cards Electronic funds transfer (ACH, wire) Banking supplies Payroll direct deposit Checking Accounts: The City currently utilizes several checking accounts: (1) A general checking account, which includes refunds, electronic transfer and separately accounted for payroll and claims checking breakouts, and (2) An advance travel account. The institution will furnish the City with additional checking accounts as needed. Currently, City staff picks up, delivers the deposit to the institution's branch once each workday, for processing, and credit to the City's account that day. NSF checks must be processed twice before being returned to the City. The basic checking account services should at least consist of: Provide month-end statements by the 10 day of the following month and provide statements to various auditors upon request; Electronic check image retrieval on cd monthly including necessary software; Provide individual and consolidated monthly account analysis for all accounts by the 15 day of the following month; Provide an automated wire transfer system for transferring money to other institutions, along with appropriate security levels for wire transfer initiations and approvals; Provide computer balance reporting system, with information on collected, available and closing balances, as well as details of all debits and credits posted to the account for the previous day, by 8:00a.m. each business day; Provide a reporting system that shows current day ACH credits, by 8:00a.m. each business day. Currently the City receives property tax distributions daily through the ACH system and Present: Joe Duffie, Chair; Jim Haggerton, Richard Simpson Rhonda Berry, Alan Doerschel, Lucy Lauterbach 1. V Net Fiscal Agent Since last year Tukwila has been handling the finances of the Valley Narcotics Enforcement Team (V -Net), which is made up of officers from Tukwila, Auburn, Renton, Kent, the State Patrol, and King County. Tukwila is the last jurisdiction to handle the finances. The other cities have done it for from two to four years each. Alan said he was happy to do it, and the City gets some payments for being the fiscal agent, as well. Recommend motion to continue as fiscal agent for V- Net to Regular Meeting. 2. General Fund Budget Changes 2003 There have been four unbudgeted projects this year: contract for Ball Janik, additional money for connectivity line to the pool, the GIS survey of north Tukwila for pipe locations, and the Waldron firm's search for a new city administrator. The changes add up to just over $300,000. The GIS survey will be paid for by putting off other surface water projects to be done later in the schedule. If ACC is added, it would go on top of these costs. Jim asked if the City could afford $50,000 for ACC. Alan said there are two ways of looking at it: on one hand, the city can't afford for money to disappear from the Planning Model. On the other hand, if it is something the city really wants, the money should be spent. The only caveat is that money spent today will not be available tomorrow. Alan is working on the bond for the bridge, Tuk Village, and Golf Course. Ile said he may need to move some bond funding to streets and elsewhere to get non -taxed bonds, which Tuk Village bonds would not be. Non -taxed bonds have lower rates than taxable bonds. Jim also asked about budget changes made during the year. Alan said he gathers all of those together in November, and the Council amends the budget to accommodate those amendments. Information. 3. Banking Services Contract Tukwila uses one local bank for checking, credit cards, and to hold our excess cash. Banks are anxious to be cities' bank, and they all compete to try to get a city's business. Once again, U.S. Bank has won the contract. Alan said his staff has enjoyed working with the bank, and they have a very good working relationship. The agreement will be for two years, with two one year extensions. Recommend mayor's signature on Agreement to COW. 4. Animal Control Interlocal At their last meeting, committee members had questions about the animal control services; how much they had been working in Tukwila recently, and what kinds of calls they answered here. No one had seen the trucks as much as they once had. The only information the city had was from the last invoice animal control submitted in January, 2003. They had given the monthly total hours worked in the city, and those hours were higher than the 12 hours assigned. That also means the City's bills were higher than anticipated. We have not been billed this year yet, as the County has been trying to negotiate the higher rate for services. After discussion, the committee agreed that they wanted more accountability than they have gotten in the past, and they will pay the $60/hour rate for 12 hours /week from July 1- December 31 this year. After those six months are up, the City will evaluate whether the additional service was worth the cost. Recommend interlocal agreement to COW. Committee chair approval Finance and Safety Committee May 19, 2003