File #: 18-0847R    Name:
Type: Resolution Status: Passed
File created: 12/7/2018 In control: Finance
On agenda: 12/17/2018 Final action: 12/17/2018
Title: RESOLUTION AUTHORIZING THE TRANSFER OF GENERAL BANKING, RETAIL LOCKBOX AND PURCHASING CARD SERVICES TO U.S. BANK, AND MERCHANT CARD SERVICES TO NATIONAL BANK OF COMMERCE.

Title

RESOLUTION AUTHORIZING THE TRANSFER OF GENERAL BANKING, RETAIL LOCKBOX AND PURCHASING CARD SERVICES TO U.S. BANK, AND MERCHANT CARD SERVICES TO NATIONAL BANK OF COMMERCE.

 

Body

CITY PROPOSAL:

RESOLVED, that the proper city officials are hereby authorized to execute the necessary documents to transfer the general banking, retail lockbox and purchasing card services for the city and its authorities to U.S. Bank.

 

BE IT FURTHER RESOLVED; that the proper city officials are hereby authorized to execute the necessary documents to transfer merchant card services for the city and its authorities to National Bank of Commerce.

 

Statement of Purpose

STATEMENT OF PURPOSE:  This resolution authorizes the transfer of the general banking, retail lockbox and purchasing card services to U.S. Bank, and the transfer of merchant card services to National Bank of Commerce.

 

The city issued a Request for Proposals (RFP) for banking services on August 9, 2018.  This is the first time that the city has solicited competitive proposals for banking services other than retail lockbox.  The RFP was advertised in the Duluth News Tribune and on the city website.  Local banks were directly notified and encouraged to respond.  Proposers could respond to a portion of the RFP or all four services.  The city received five proposals, which were evaluated by city staff based on qualifications, corporate mission and community lending practices, financial stability, and any incentives and/or cost of services.  Finalists were invited to demo their online products.  The names of the institutions and their final scores for each category are shown below.

 

Bank                                                               Gen. Banking                     Lockbox                     Merchant Card                     P-Card

U.S. Bank                                                               93                                          87                                                               81                                          97

Wells Fargo                                                               89                                          87                                                               86                                          78

BMO                                                               No Response                                          83                                                               73                                          65

Nat’l Bank of Commerce                     65                                          79                                                               86                                          49

Frandsen                                                               59                                          61                                                               67                                          51