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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Barbara Pachon, Finance
Director
Subject: Authorization for Director of
Finance to solicit Request for Proposals
for banking services.
Dept: Finance
Date: 11/23/99
ORIGINAL
Synopsis of Previous Council Action:
March 8th, 1993 - Resolution 93-46 authorizing the execution of two agreements with
First Interstate Bank for the provision of banking services to the City of San Bernardino.
Recommended motion:
That the Mayor and Common Council authorize the Director of Finance to solicit
Requests for Proposals for banking services.
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Contact person: Barbara Pachon, Director of Finance
Phone: 5242
Supporting data attached:
staff report
Ward:
FUNDING REQUIREMENTS: Amount: None
Source: (Acct. No.)
(Acct. Description)
Finance(jin~k~L
Council Notes:
Aaenda Item No r!J..D
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STAFF REPORT
SUBJECT
Authorization from the Mayor and Council to solicit Requests for Proposals (RFP's) for
banking services.
BACKGROUND
In March of 1993, after conducting an extensive bid process, the City awarded a contract
to First Interstate Bank for banking services. In August of 1996, the City received
official notification that First Interstate Bank merged with Wells Fargo Bank and began
operating as Wells Fargo Bank. The City is still currently banking with Wells Fargo.
The Finance Department is requesting authorization to solicit Requests for Proposals for
banking services for a number of reasons. It has been over six (6) years since the City
last requested RFP's for banking services and the City has experienced a number of
problems with our current provider of banking services. Also, because the banking
industry is constantly changing, it is important to go through the RFP process
periodically to ensure the City is getting the most efficient and advantageous banking
services available.
Due to the level of specialization required in the area of evaluating banking services, and
staffing shortages within the Finance Department, the Finance Department has contracted
with a consultant specializing in the evaluation of banking services (for a flat fee of
$7,500) to assist the City with the RFP process.
FINANCIAL IMPACT
No additional cost to the City at this time. The intent of the RFP process is to obtain a
more cost-efficient banking contract for the City. Currently, the City pays approximately
$101,000 annually for banking services. Annually, the bank processes over $160 million
in deposits and disbursements for the City (including Water Department transactions).
Payment for bank fees is paid from interest earnings.
RECOMMENDATION
That the Mayor and Council authorize the Director of Finance to solicit Requests for
Proposals for banking services.