HomeMy WebLinkAboutCOW 2010-10-25 Item 3C - Agreement - Banking Services with US Bank (Jan 2011 - Dec 2014) COUNCIL AGENDA SYNOPSIS
*J r:0 1 Lutzals ITEM NO.
:A 1 Meeting Date 1 Prepared by Mayors- rguzew Council reuzev
1 I 10/25/10 I PM I I
11/01/10 PM 1
1.908 I I 3, C'
ITEM INFORMATION
CAS NUMBISR: 10-120 I ORIGINAL AGENDA DATE. OCTOBER 25, 2010
AG kND,\ ITEM TITLE Approve banking services contract with US Bank.
C.V1'I;,GORY Discussion Motion n Resolution n Ordinance BzdAward Public Hearing n Other
ifltg Date 10/25/10 Mtg Date 11/1/10 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council 1 1 Mayor Adm Svcs 1 1 DCD Finance Fire 1 1 Legal 1 1 P &R n Police PW
SPC)NSOR'S Council is being asked to approve a banking services contract with US Bank for the period
Sl1M,MARY of January 1, 2011 through December 31, 2014. The banking fees for the four year period
are estimated at $40,121, subject to variation based on actual activity levels experienced
during this period.
RI NIIAV1 %D BY COW Mtg n CA &P Cmte F &S Cmte n Transportation Cmte
Utihties Cmte LI Arts Comm. 1 1 Parks Comm. 111 Planning Comm.
DATE: 10/19/10
RECOMMENDATIONS:
SPONSOR /ADMIN. Finance
COMMIYIEE Unanimous Approval; Forward to C.O.`
COST IMPACT FUND SOURCE
EYPIsNDITURIE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$40,121 $40,121 $0
Fund Source: GENERAL FUND
Comments
MTG. DATE RECORD OF COUNCIL ACTION
10/25/10
MTG. DATE 1 ATTACHMENTS
10/25/10 Informational Memorandum dated 10/13/10
Minutes from the Finance Safety Committee meeting on 10/19/10
45
46
**ILA
o \s City of Tukwila
F Jim Haggerton, Mayor
906 INFORMATIONAL, MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Peggy McCarthy, Deputy Finance Director
DATE: October 13, 2010
SUBJECT: Contract for Banking Services
ISSUE
The Council is being asked to approve the selection of US Bank as the City's primary banking
institution for the period of January 1, 2011 through December 31, 2014 The banking fees for
the four year period are estimated at $40,121 but are dependent on actual banking activity
experienced by the City during this period.
BACKGROUND
The City's primary banking relationship is currently with US Bank and is based on a 2005
agreement with them. To ensure the City receives optimal service at competitive prices, a
banking services solicitation was undertaken On July 2, a banking services request for
proposal (RFP) was emailed to five banks that met the City's minimum qualifications. The
recipient banks were US Bank, Key Bank, Wells Fargo Bank, Bank of America and West Coast
Bank. The minimum qualifications were as follows
A. Authority to offer banking services. Institution must hold a charter from either the
United States Government or the State of Washington.
B. Access to the Federal Reserve System. Institution must be a member of (or
have access to) the Federal Reserve System and have access to all Federal
Reserve System services.
C. Legal Compliance. Institution must be in compliance with all applicable laws,
rules, regulations, and ordinances of the City of Tukwila, the State of
Washington, and the United States
D. Public Deposit Protection Act Institution must be a Washington State qualified
depository for public funds and must be in compliance with the Washington
Public Deposit Protection Act (RCW 39 58).
E. Local banking office. Institution must have an established office or local branch
within the City of Tukwila.
Of the five banks receiving this solicitation, all responded with proposals except West Coast
Bank which felt they lacked the capacity to provide the full range of services to the City.
A bidders' conference was held on August 13 to give representatives of the responding banks
an opportunity to meet City staff and to ask questions about the proposal, services, and other
47
48
INFORMATIONAL MEMO
Page 2
matters. Five representatives from Wells Fargo and two representatives from Key Bank
attended.
On or before the August 31, 2010 deadline, the four responding banks delivered their proposals
to City Hall. From September 16, 2010 through September 24, 2010, interviews were held with
representatives from each of the banks giving the City's banking services committee a chance
to ask questions and giving the banks a chance to market their proposals and showcase their
online banking systems. The City's banking services committee is comprised of the Finance
Director, the Deputy Finance Director and the Banking Fiscal Specialist.
The banks were evaluated by the committee on six criteria: 1) Responsiveness to the RFP, 2)
Ability to perform the required services, 3) Fees, 4) References, and 5) Community presence.
All respondent banks were considered able to perform the required services, all had reliable
references and, to varying degrees, all were responsive to the RFP and maintained a
community presence. The third evaluation point, Fees, was analyzed in detail and weighted
more heavily in the evaluation process. To accomplish the analysis, service fee information from
each banking proposal bid sheet was compiled into one spreadsheet, an annual estimated cost
for each bank was computed, and the results were compared. This Bid Sheet Compilation and
Comparison Analysis is included with this memorandum
In addition to annual service costs, other factors were considered in estimating the total contract
cost for services from each bank. Implementation costs for converting to a new bank were
estimated and added to the cost analysis of each bank except the incumbent bank, US Bank;
earning credits offered in the banking services proposals were reflected as a reduction of costs;
and estimated investment income derived from lower earnings credit balance requirements was
also reflected as a reduction of total contract costs. (Typically deposit balances are maintained
at a level that generates sufficient earnings credit to pay for the annual banking service fees.
The optimal deposit level is a function of the earnings credit rate and the fee amount. For
example, to generate enough earnings credit to pay $10,000 of banking fees when the earnings
credit rate is .50 an average collected balance of $2,000,000 must be maintained). This Total
Contract Cost Analysis is included with this memorandum. The availability of, and fee structure
for, new services were also considered.
DISCUSSION
The evaluation process identified two banks as the best candidates for selection, US Bank and
Key Bank. Both banks have the ability to provide the banking services required by the City.
Key Bank's fee structure is the most competitive. However, after taking into consideration the
implementation costs required to transition to a new bank and the potential investment income
resulting from US Bank's lower balance requirement higher earnings credit rate, US Bank's
total contract pricing is the most competitive.
RECOMMENDATION
The Council is being asked to approve the selection of US Bank as the City's primary banking
institution for the period of January 1, 2011 through December 31. 2014 with banking fees
estimated at $40,121 for the period subject to variation based on actual activity levels
experienced during this period. The Council is also being asked to consider this item at the
October 25, 2010 Committee of the Whole Meeting and subsequent November 1, 2010 Regular
Meeting.
H:ICRIBanking RFPIFINALIInfoMemo_Banking Services 10 -13 -10 b.docx 4 9
INFORMATIONAL MEMO
Page 3
ATTACHMENTS
Bid Sheet Compilation and Comparison Analysis
Total Contract Cost Analysis
50 H:1CR1Banking RFPIFINAL \InfoMemo_Banking Services 10 -13 -10 b.docx
CITY o+TUKVVu\
BANKING SERVICES PROPOSALS
Total Contract Cost Analysis
I
WELLS BANK OF 1
U BANK KEY BANK pAmoo| AMERICA
4 ¥EAR CONTRACT COST ANALYSIS
Total estimated annual cost see Bid Sheet Compilation and
Comparison analysis 12.88e 11.3e2 17,930 16.958
Number of years in contract 4 4 4 4
4 YEAR COST before credits and conversion costs 51,544 45.e88 71.722 67,832
Earnings credit offered in proposal (5,000) (a) (5,000) (10.000)
Estimaled conversion/transition costs 2,000 (k) 2,000 (k) 2,000 <W
4 YEAR COST after credit and implementation costs 46.544 42,288 73,722 59.832
Estimated investmerit income earned from lower deposit balance Not analyzed further due 10
requirement due to higher earnings credit rate see analysis below (6,423) higher costs.
4 YEAR CONTRACT COST estimate 40.121 42,288
Recommended
Contract Award
Recipient
ESTIMATED INVESTMENT INCOME ON DEPOSIT REQUIREMENT
DIFFERENTIAL
First Year
Total estimated annual cost 7,886 6,322
Average deposit balance required, at proposed earnings rates (see
below), to earn credits sufficient to cover cosls (cost earnings rate) $1.752.458 (b) $1.806.320 (c)
Deposit requirement differential (c b) 53,862
Eslimated investment rate 0.55% (j)
Eslimated investment income on deposit differential 296
Second Year
Totalestimated annual cost 1e.886 11.32e
Average deposit balance required, at proposed earnings rates (see
below), to earn credits sufficient to cover costs (cost earnings rate) $2,863,569 (d) $3.23*.8e1 (e)
Deposit requirement differential (e d) 371.323
Estimated investment rate 0.55% (j)
Estimated investment income on deposit differential 2,0*2
Third Year
Total estimated annual cost 12.886 11.322
Average deposit balance required, at proposed earnings rates (see
below), to earn credits sufficient to cover costs (cost earnings rate) $2,863,569 (f) $3.23*.891 (g)
Deposit requirement differential (g f) 371,323
Estimated investment rate 0 55% (j)
Estimated investment income on deposit differential 2,042
Fourth Year
Total estimated annual cost 12.886 11.32e
Average deposit balance required, at proposed earnings rales (see
below), 10 earn credits sufficient to cover costs (cost earnings rate) $2,863,569 (h) $3.234.891 N
Deposit requirement differential (1 h) 371,323
Estimated inve tment rate 0.55% (j)
Estimatecl investment income on deposit differential 2.042
Estimated investment income on deposit differential for 4 year period 6.*e3
EARNINGS CREDIT RATE
Rate quoted 0.50% 0 35%
Less 10% reserve requirement -0.05%
Effective earnings credit rate 0 45% 0 35%
(a) Additional $5,000 credit for new services is also offered.
(b) to (V US Bank and Key Bank balance requirements to fund banking costs.
0 Conservative estimate based on yield of 2-year agency or 3-year treasury note as of 10-08-10 Analysis assumes federal funds rate remains
below .35% for the four year period 51
(k) Conservative estimate of out of pocket costs and staff time to achieve transition, costs would increase if temporary help were required.
CITY OF TUKWILA Bid Sheet Compilation and Comparison Analysis
BANKING SERVICES PROPOSALS
US BANK KEY BANK WELLS FARGO BANK OF AMERICA r'i
Item Est Mo Unit Price Avg. Mo ANNUAL i Unit Price .Avg Mo ANNUAL Unit Price Avg. Mo ANNUAL i UnIt Price Avg. Mo ANNUAL
Volume Cost COST Cogt COST Cost COST Cost COST
Ongoing Current Services: 1 1 I I i I
Account Maintenance 6 5.00 30.00 360.00 $5.00 30.00 360.00 $5.001 30.00 360.00 7.00 42.00 504.00
Stmnt w /Ck Front Bank 1 5.00 5.00 60.00
Images
Paper Credits 154 0.12 18.48 221 76 1 $0.15 23.10 277.20 $0.50 77.00 924.00 0.20 30.80 369.60
Electronic Credits 130 0.10 13.00 156.00 ii 0.06 7.80 93.60 $0.031 3.90 46.80 0.20 26.00 312.00
Paper Debts 400 0.07 28.00 336.00 $0.06 24.00 288.00 $0.101 40.00 480.00 0.10 40.00 480.00
Electronic Debits 66 0.05 3.30 39.60 $0.06 3.96 47.52 $0.101 11 6.60 79.20 0.30 19.80 237.60
Deposited Item On -US 293 0.03 8.79 105.48 $0.02 5.86 70.32 $0.041 11 72 140.64 0.07 20.51 246.12
Deposited Item Local 1579 i s 0.03 47.37 568.44 $0.04 63.16 757.92 $0.051 78.95 947 40 0.07 $110.53 1,326.36
Deposited Item Regional 167 0.035 5.85 70.14 $0.04 6.68 80.16 $0.071 11.69 140.28 0.07 11.69 140.28
Deposited Item Transit 645 0.04 25.80 309.60 $0.04 25.80 309.60 $0.08 51.60 619.20 1 0.07 45.15 541.80
Deposited Items Returned 5 2.00 10.00 120.00 $2.00 10.00 120.00 t $3.00 15.00 180.00 2.00 10.00 120.00
Returned Item Maintenance 1 5.00 5.00 60.00 1
1st
Retumed Item Maintenance 1 1
2nd
Deposited Items Special 1 5.00 5.00 60.00 $0.00 $10.001 10.00 120.00
Instructions
Re- deposited Return Item 6 1.00 6.00 72.00 $1.00 6.00 72.00 $3.00 18.00 216.00 1.00 6.00 72.00
Online Banking Returned 3 5.00 not used j 510.00 one fee, 120.00 1 $15.001 45.00 540.00
Item Statement, per month unlimited
Return item image viewed 4 1 00 4.00 48.00
Snapshot statement copy 2 5.00 N/A 10.00
annual est
Account Inquiry 1 5.00 5.00 60.00
Copy of check/deposit ticket 1 1.00 1.00 12.00
Photocopy Per Item 1 1.00 1.00 12.00 $2.50 2.50 30.00 $15.00 15.00 180.00 10.00 10.00 120.00
Repo sweep per month 1 $25.00 25.00 300.00
1 I 2,681.02 1 2,926,32 t 1 4,973.52 1.' 1 4,469.76
Account Reconciliation I I I
Services:
Positive Pay Maintenance 1 2 30.00 60.00 720.00 $25.00 50.00 600.00 $20.00 40.00 480.00 50.00 $100.00 1,200 00
Positive Pay per item 1 400 0.04 16.00 192.00 $0.06 24.00 288.00 $0.10 40.00 480.00 0.035 14.00 168.00
fi
Nextday Positive Pay 1 1
Charge No 0.00 $0.00 $20.00 20.00 N/A ,z
Positive pay payee validation' 400 1 $0.03 12.00 144.00
SP issue /cancel input 1 15 0.25 3.75 45.00
ii
Positive Pay Exception 1 1 1 1.00 12.00 $0.00 1 $1.00 1.00 12.00 1.50 1.50 18.00
Items f
PosPay Trans Wkly Input 1 No 0.00 $25.00 25.00 300.00 $0.00
1 Charge
ARP Manual Input I 59 No 0.00 $0.00 $0.050 2.95 35.40 s 1.00 no chg
Charge online
Recon Printing Mailing fee 1 2 5.00 10.00 120.00
4
File Confirmation Per Fax 1 1 1.00 1.00 12.00 i^ N/A ti $0.00 1 N/A 1
g 9 ii ii i
CITY OF TUKWILA Bid Sheet Compilation and Comparison Analysis
BANKING SERVICES PROPOSALS
US BANK K EY BANK rz WELLS FARGO BANK OF AMERICA
1
Item Est Mo Unit Price Avg. Mo ANNUAL Unit Price Avg. Mo ANNUAL Unit Price Avg. Mo ANNUAL Unit Price Avg. Mo ANNUAL
Volume Cost- COST Cogt COST a Cost COST E Cost COST
ARP transmission output 2 5.00 10.01 120.00 0 $5.001 unlimited 60.00 u 20.00 40.00 1 480.00
DI
Ri
Account recon paid item
ARP Transmission per Item 1 400 0.001 0.401 4.80 $0.0001 e $0.0651 26.00 312.00 0.035 14.00 168.00
Depository Reconciliation 1 f 15.00 using KTT
no chg if $0.00 I
Reporting Monthly* 1
ri
Depository Reconciliation 400
0.06 no chg if
Reporting per Item' fusing KTT 1
1,225,80 0 1 1,248.00 4 I 1,463.40 2,034.00
On Line Banking: 1 1 1 I r Fi
On Line Banking Current Dal 1 20.00/A 20.00 240.00 N/A $15.00 $15.00 180.00 f 15.00 15.00 180.00 1
Account I I cot' 4
On Line Banking Current Dayl 1 Not 0.00 $15.00 15.00 180.00 1 1 $0.00 N/A
Module Charge
On Line Banking Current Dayl 13 .035 /itel 0.46 5 46 $0.005 0.07 0.78 $0.060 $0.780 9 36 0.05 0.65 7.80
Detail Trx m
On Line Banking Current Dayl 240 0.035 8.40 100.80 3
Sum r e
On Line Banking Prior Day 4 $20 1st, 65.00 780.00 $5.00 20.00 240.00 j $15.00 $60.00 720 00 15.00 60.00 720.00
Account $15 next 4
On Line Banking Prior Day I 1011 035 /itel 35.39 424.62 $0.005 5.06 60.66 $0.060 $60 66 727.92 0.04 40.44 485.28
Detail Trx m B i
l
On Line Banking Prior Day I 240 0.035 8.40 100.80 pi
Sum ti
On Line Banking Prior Day 1 1 No Charge 0.00 $15.00 15.00 180.00 9 $0.00 N/A e;
Module
On Line Banking Online DDA 4 5.00 20.00 240.00 $0.00 h Ev
Statement 1 $0.00
1.
On Line Banking token I 6 No Charge! 4 $0 $0.00 F y
t
Customer Initiated Stops 1 1 5.001 5.00 60.00 $5.00 5.00 60.00 $10.00 $10 00 120.00 10.00 10.00 120.00
Wires Monthly Client Maint. I 1 10.00 10.00 120.00 $25.00 25.00 300.00 I $0.00 25.00 25.00 300.00
Issue maintenance 2 wF 10.001 unlimited 120.00 4 0
accts
Analysis Charge I 1 I No Charge' $5.00 5.00 60.00
$0.00 la 10.00 10.00 120.00
On Line Account 1 1 1 $15.00 15.00 180.00 1
Management Module
EDI Report Monthly 1 1 1 $5.00 5.00 60.00
14 g
Fee /Unlimited Accounts
I. If 1 2,191.68 1,321 44 I 1 1,757.28 0 I I 1,933.08 0
Wire Transfers: I I I I
Ki
Wire Monthly Maintenance I 1 5.001 5.00 60,00 1 $25.001 25.00 4 $0.00
PIN
q
Incoming Domestic Wire 1 5 k 7.00 35.00 420.00 $5.00 25.00 300 00 $5.00 25.00 300.00 8.00 I 40.00 480.00
Domestic Repetitive 1 4 7.001 28.00 336.00 1 $7.00 28.00 336.00 1 $5.001 20.00 240.00 1 10.00 1 40.00 480.00 1
1
1 816.00 I 1 636.00 4. I 1 540.00 960.00
Zero Balance Accounts I I I I I i
ZBA lead 1 1 10.00 10.00 120.00 $5.001 5.00 60.00 i info not provided $10.00 10.00 120.00
ZBA Subsidiary 3 5 15.00 180.00 5.00 15.00 180.00 1 info not provided $10.00 30.00 360.00
to I ii
1 f is 300.00 0 I 1$ 240.00 1 I$ 4 1 1 480.00
Image Services: I I 1 1 1 1 pi
Monthly Maintenance Per I 2 15.00 30.00 360.00 I $0.0001 1 $0.001 $0.00 i 40.00 1 80.00 960.00
Account s
Image Per Item 1 400 0.031 12.00 144.00 r, $0.005 2.00 24.00 $0.0201 8.00 96.00 0.05 1 20.00 240.00
Image CD -ROM 1 1 10.001 10.00 120.00 iii 15 15.00 180.00 $10.001 10.00 120.00 7 10.00 I 10.00 120.00
FA
SP Web images retrieved 1 1 00 1.00 12.00 $0.10 0.10 1.20 °3 0.25 I 0.25 3.
14 E.4 Fm
a
1 il I 636.00 f;
I I$ 204.00 =a I 1$ 217.20 4 I I$ 1,323.. .00 E
U
CITY OF TUKWILA Bid Sheet Compilation and Comparison Analysis
BANKING SERVICES PROPOSALS
US BANK KEY BANK WELLS FARGO BANK OF AMERICA
Item Est Mo Unit Price Avg. Mo ANNUAL Unit Price Avg. Mo ANNUAL 1 Unit Price Avg. Mo ANNUAL Unit Price Avg. Mo ANNUAL
Volume Cost COST Cogt COST Cost
COST 1 Cost COST
ACH Service: I I I 1 1 I
ACH Monthly Maintenance 2 15.00 30.00 360.00 rY $25.00 50.00 600.00 $10.00 20.00 240.00 15.00 30.00 360.00
ACH Process Run 3 5.00 15.00 180.00 $5.00 15.00 180.00 $1.00 3.00 36.00 5.00 15.00 180.00
ACH Originated Fed Item 969 0.04 38.76 465.12 $0.06 58.14 697 68 $0.130 $125.97 1,511.64 0.08 77.52 930.24
ACH Originated on -US Item 104 0.03 3.12 37 44 6.24 74.88 1 $0.1550 16.12 193.44 0.08 8.32 99.84
ACH Received Item 140 0.05 7.00 84.00 I' $0.06 8.40 100.80 $0.10 14.00 168.00 0.10 14.00 168.00
ACH Block Monthly Maint 4 5.00 20.00 240.00 $10.00 40.00 480.00 $5.00 20.00 240.00 15.00 60.00 720.00
Per Account
ACH Filter Monthly Maint 2 5.00 10.00 120.00 $10.00 20,00 240.00 $0.00 15.00 30.00 360.00
ACH Return Per Item 1 3.00 3.00 36.00 1 75 1 75 21.00 $3.50 3.50 42.00 2.50 2.50 30.00
I r
ACH Return Notification of 1 2.75 2.75 33.00 :J 0.50 0.50 6.00
Change
ACH Return /Notification of 2 3.00 6.00 72.00 ty 1.00 2.00 24.00 r $5.00 10.00 120.00 2.50 5.00 60.00
Change Faxed
1627.56 2,424.36 I I 2,551.08 I 8 2,908.08
CVS, Coln Currency I J 1
Cash Deposits 0150,000 .06/$100 90.00 not used $0.15000 $22,500 $0.00160 '4 0.091
Branch Deposited Cash 5150,000 r .06/8100 90.00 not used 1 $0.00190 $0.00160 0.251 $37,500
Vault Deposited Cash 3150,000 .06/$100 90.00 1,080.00 $0.00090 135.00 1,620.00 $0.00160 $240.00 2,880.00 $0.00085 I $127.50 1,530.00
Cash Vault Deposit per 110 1.00 110.00 1,320.00 $0.15000 16.50 198.00
receipt
Cash deposit adjustment 0.5 6.00 3.00 36.00 $8.00 4.00 48.00
Nite Bag Deposit Cash No charge 0
$0.0009 $0.0060 0.09 I
Forward
Mailed Receipts 20 1.00 20.00 240.00 $0.00 $0.00 N /AI
Court
Standard change order 4 5.00 20.00 240.00 $2.50 10.00 120.00 1 2.50 10.00 120.00
2,916.00 1,9 $'2,928.00 I
I I 1;650.00
Safekeeping (Including
reoortina): 1
Interest Received 1 No charge 0.00
J
Maturities /Calls 0,5 4. 20.00 10.00 120.00 i F
Investment Settlement (DVP) 0.5 40.00 20.00 240.00 20.00 10.00 120.00
Account Maintenance 0.5 20.00 20.00 240.00 2.00 per invest 144.00
ment
Price to Market Report 0.5 u,
SKG receipts- Govt/Equities 0.5 2.00 1.00 12.00
Annual Administrative fee annual 3,500.00
fee
Minimum monthly charge 1 100.00 $100.00 1,200.00
492.00 I 384.00 I 3,500.00 I 1,200.00
Earnings credit 0.50 %I w/ 10% 0.35 %I no 0.43%1 o I 0.50 %I no
TOTAL ANNUAL COST;1" reserve reserve reserve reserve
I ;.L•.,,,.. 12,886 I 11 322 I I$,17, 930 L` :I $'16, 958
54
CITY OF TUKWILA
BANKING SERVICES PROPOSALS
Bid Sheet Compilation and Conparison Analysis Notes
1. Certain monthly volume estimates Were adjusted for changes in anticipated activity, especially
those impacted by the nunnber of checks written. The City's implementation of a purchasing
card program in September 2010 has reduced monthly check volume by over 50
2. Certain line items representing pass;through costs, such as FDIC fees and supply costs,
were omitted from the analysis because these costs, and the cost variations among the
banks, were not significant in relation to total banking service costs.
3. Credit card fees are riot included in the analysis because the City will be transitloning to a
proprietary credit card processing vendor to achieve PCI compliance through a hosted
program and to maintain integration with existing point of sale software.
4. Certain like items were added to ensure the analysis includes all existing services.
55
J,L'� I LA
y 1
s
3 City of Tukwila
0 -0 I
Finance and Safety Committee
FINANCE AND SAFETY COMMITTEE
Meeting Minutes
October 20, 2010 5:00 p.m.; Conference Room #3
PRESENT
Councilmembers: De' Sean Quinn, Chair; Allan Ekberg and Kathy Hougardy
Staff: Shawn Hunstock, Peggy McCarthy, Nick Olivas, Steve Lancaster and Kimberly Matej
CALL TO ORDER: Chair Quinn called the meeting to order at 5:02 p.m.
I. PRESENTATIONS
No presentations.
H. BUSINESS AGENDA
A. Banking Services Agreement
Staff is seeking Council approval to enter into a contract with US Bank for services as the City's primary
banking institution for the period of January 1, 2011, through December 31, 2014.
This past July the City sent out a request for proposal to five banks that met the City's minimum banking
requirements; those banks were US Bank, Key Bank, Wells Fargo Bank, Bank of America and West
Coast Bank. West Coast Bank did not respond to the request as they do not believe they have the capacity
to offer the City full services. After a thorough evaluation of proposals as well as interview processes,
1>K
staff indentified US Bank and Key Bank as the most competitive choices to provide primary banking
services to the City. Finance staff continued to analyze the fees and costs associate with banking at each
entity, and indentified US Bank as the best choice for the City's current financial and service needs.
Committee Member Ekberg inquired about the consideration of banking entities such as BECU. Staff
reported that credit unions are not insured by the Washington State Public Deposit Protection
Commission (PDPC), who approves which banks can hold state and local government deposits.
UNANIMOUS APPROVAL. FORWARD TO OCTOBER 25 COW FOR DISCUSSION.
B. City Council Preliminary 2011 -12 Budget Review
The Committee reviewed the 2011 -12 Biennial Budget pages as listed below in preparation of full
Council discussion and review of the budget.
SECTION j Budget Pages 1 CIP Pages
Insurance Fund LEOFF1 OF -44 1
Firemen's Pension Fund OF -45 1
Fire j GF -l19 to GF -141 1 1
Fire Reserve Equipment 1 OF -9 1
Committee Member Ekberg requested the annual calls for service for the Fire Department be provided for
2008 and 2009, and be broken down by station, as appropriate.
C. First Review of Revenue Proiections for 2011 -12 Budget
Due to meeting time constraints, this item will be moved to the next Finance Safety Committee
meeting for discussion.
56