AGENDA CAPTION:
Title
Consider approval of Resolution 2021-52R, awarding a contract to Wells Fargo, N.A., for Depository Services in the estimated annual amount of $60,000 for a three year term and authorizing one additional extension of up to two years; authorizing the City Manager or his designee to execute the contract on behalf of the City; and declaring an effective date.
Body
Meeting date: March 16, 2021
Department: Finance Department - Marie Kalka, Director (by Lynda Williams, Purchasing Manager)
Amount & Source of Funding
Funds Required: $60,000 estimate / year
Account Number: 10001280-54010; 21006322-54010; 22006335-54010
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Fiscal Note:
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Background Information:
On December 17, 2020, the City received two (2) proposals in response to RFP 220-226 for Depository Services. A City-staffed evaluation team thoroughly reviewed and evaluated both submissions with the assistance of a technical consultant to the City. The evaluation team has determined Wells Fargo Bank, National Association, to be the most qualified and best value to serve the City’s banking needs. The City intends to award a contract to Wells Fargo Bank, N.A., located in Sioux Falls, South Dakota, for a period of three (3) years in the annual estimated amount of $60,000 based on services used by the City. This contract is subject to one (1) optional extension not to exceed two (2) years, if approved by City Council.
The services to be provided by Wells Fargo, N.A., will meet the following goals:
• Safety of City funds and securities;
• Collateralization of all funds over FDIC insurance limits;
• Efficient safekeeping of City owned securities;
• Efficient utilization of available banking services; and
• Minimization of banking cost to the City.
The final composite of scores by the evaluation team are as follows:
|
|
Proponents |
Rater 1 |
Rater 2 |
Rater 3 |
Total |
Rank |
|
1 |
BBVA |
81.00 |
75.00 |
94.00 |
250.00 |
2.0 |
|
2 |
Wells Fargo |
83.00 |
78.00 |
96.00 |
257.00 |
1.0 |
The safety of City funds and assets is paramount. The use of technology to minimize manual or time-consuming operations is a continuing effort and Wells Fargo, N.A., will be expected to bring new ideas and technologies to the City’s attention throughout the contract period. Municipal funds are public funds and fall under the provisions of the Public Funds Investment Act and the Public Funds Collateral Act (Texas Government Code, Chapters 2256 and 2257) and are further restricted by the City’s Investment Policy. The establishment of a depository by the City is further governed by Texas Government Code, Chapter 105, Depositories for Municipal Funds. At all times, all time and demand funds above FDIC insurance coverage will be collateralized with a one hundred two percent (102%) market margin as authorized by City Policy and RFP 220-226.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
City staff recommends award of a contract to Wells Fargo, N.A., for a three (3) year term for the provision of Depository Services with one (1) optional extension not to exceed two (2) years.