Title
Consider a memorandum/resolution awarding the request for application for banking services.
Summary
DATE: October 17, 2023
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Request for Proposal - Bank Services
BACKGROUND AND FINDINGS:
On October 8, 2019, the City Council approved CCMR 19-103R, naming BBVA Compass (now PNC Bank) as the City of Killeen's bank depository. The current agreement with PNC Bank ends December 31, 2023. In collaboration with Meeder Public Funds Inc, the City's investment consultant, City staff developed a request for proposal (RFP) process to identify and evaluate suitable financial institutions and solicited proposals for Banking Depository Services in accordance with the terms, conditions, and requirements set forth in RFP No. 23-46. The RFP advertised in the Killeen Daily Herald on July 9th and 16th, 2023 and posted in OpenGov, the City's e-bidding platform on July 10th.
The City intended for its banking partner to provide state-of-the-art technology to meet current and future banking needs. The contract is structured with an initial term of three years beginning January 1, 2024, and ending December 31, 2026, and may be extended for two additional one-year terms, if approved in writing by both parties 90 days prior to the renewal term.
On August 8, 2023, the City received two proposals: JPMorgan Chase Bank and PNC Bank (the incumbent). The analysis noted material differences between the two proposals.
The proposals were evaluated for (1) the services and automation capabilities which support those services, (2) net fees charged for services, and (3) the earnings potential.
Basic services provided by these banks are similar, but the technology and online services flexibility and range are broader at JPMorgan. To evaluate services each question in the RFP was weighted and scored as to the banks' service approach and capabilities. The resulting objective score for...
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