HomeMy WebLinkAbout2015-09-22 - AGENDA REPORTS - BANKING SERVICES CONTR (2)Agenda Item: 11
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: dQ
DATE: September 22, 2015
SUBJECT: AWARD CONTRACT FOR BANKING SERVICES
DEPARTMENT: Administrative Services
PRESENTER: Carmen Magana
RECOMMENDED ACTION
City Council:
1. Award contract for Commercial Banking Services to Mitsubishi UFJ Financial Group
(MUFG) Union Bank, N.A., in an amount not to exceed $50,000 annually for a term of five
(5) years, and authorize the City Manager or designee to modify the award in the event other
issues of impossibility of performance arise, subject to City Attorney approval.
2. Authorize the City Manager or designee to execute the above contract and associated
documents, and execute up to two (2) one-year renewal options not to exceed the above
annual limits, contingent upon the appropriation of funds by City Council during subsequent
fiscal years, subject to City Attorney approval.
BACKGROUND
Periodically, the City of Santa Clarita reviews ongoing services and programs as a sensible
course of action from a fiscal and fairness prospective. Therefore, a Request for Proposal (RFP)
for Commercial Banking Services was issued on July 1, 2015. The purpose for soliciting this
RFP is to secure a banking firm with the experience necessary to successfully provide large
multi -faceted municipal organizations with high-quality banking services at the best price
available.
The RFP was advertised on BidsOnline for 30 days, and 348 vendors were notified, including
four local banks that were directly notified: Bank of Santa Clarita, California United Bank,
Mission Valley Bank, and Bank of the Sierra. Fourteen vendors downloaded the proposal
request, and the five vendors below responded:
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Bank of the West Santa Clarita
JPMorgan Chase & Co. Santa Clarita
MUFG Union Bank, N.A. Santa Clarita
US Bank Santa Clarita
Wells Fargo Bank, N.A. Santa Clarita
The proposals were objectively rated by a committee made up of four City staff members. The
banks were evaluated on the types and quality of services they can provide to the City and the
cost of those services. The criteria included ability to provide evolving technologies, breadth of
products and services, reliability and quality of customer service, the quality of their references,
financial strength and capitalization, dedication to the government market, and overall cost.
Each rater scored the proposals independently, and then the committee met as a group to discuss
its findings.
After careful consideration, the committee selected MUFG Union Bank, N.A., as the
recommended finalist who best meets the requirements of the RFP as outlined by the City. Staff
believes that MUFG Union Bank, N.A. will continue to prove to be of utmost benefit to the City
and will continue their commitment of excellence in services. Therefore, staff recommends
MUFG Union Bank, N.A. to be awarded the contract as the provider of commercial banking
services for the City.
The total average monthly fee paid to MUFG Union Bank, N.A., will remain approximately
$2,700 per month, which is based on the City's average level of banking activity. These fees
will be covered by maintaining a compensating balance. Therefore, there is no budgetary
impact.
ALTERNATIVE ACTIONS
Other action as determined by the City Council
FISCAL IMPACT
No fiscal impact by this action.
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