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HomeMy WebLinkAboutCOD-014-08 Cl![-Wgron REPORT CORPORATE SERVICES DEPARTMENT Date: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE 1<esdu+;()()~6PA- ~/'f-og March 17,2008 Meeting: Report #: COD-014-08 File#_ By-law # Subject: RFP 2007-7, MUNICIPAL BANKING SERVICES Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-014-0~be received; 2. THAT the contract for Banking Services (excluding payroll), for the Municipality of Clarington be awarded to the Toronto Dominion Bank; 3. THAT the contract be awarded for a three (3) year term with an option to renew for an additional two (2) years; 4. THAT the attached By-law marked Schedule "A" authorizing the Mayor and Clerk to execute an agreement with the Toronto Dominion Bank be forwarded to Council for approval; and 5. THAT the Mayor and Clerk and lor Director of Finance as appropriate be authorized to sign all necessary documentation. Submitted by: Reviewed by: d~-~ Franklin Wu, Chief Administrative Officer NMT*MM*JB*km CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T(905)623-3379 F (905)623-4169 REPORT NO.: COD-014-08 PAGE 2 BACKGROUND AND COMMENT Request for Proposal RFP2007-7 Banking Services was publicly advertised and invited for the provision of municipal banking services as required by the Municipality of Clarington, including the Clarington Public Library and the Clarington Museums and Archives. The term of the agreement is for a period of three (3) years with an option to extend for two (2) additional one (1) year terms. A total of seven (7) banking or credit organizations obtained the bid document and two bids were received and reviewed by the evaluation team consisting of staff from Finance, Purchasing, the Library and the Museum and Archives. A summary of estimated costs on an annualized basis for services required by the municipality for the two banks submitting a proposal is attached as Schedule "B". As stipulated in the proposal document, proponents were evaluated based on the following criteria: 1. Previous Bank Experience 2. Total Price 3. Banking Services 4. Bank locations 5. Completeness of Proposal 6. Innovative techniques with respect to Banking Services 7. Information Technology Each banking establishment submitted comprehensive proposals addressing all issues contained in the bid document. However, based on the overall high score, the evaluation committee's recommendation is to award the contract to Toronto Dominion Bank. The Toronto Dominion Bank will provide an overall lower monthly fee for the standard banking services, the lowest merchant visa rate, and the highest interest rate on surplus funds. The interest rate charged for the Municipality's line of credit is marginally higher but past experience indicates that this feature has not been used. REPORT NO.: COO-014-08 PAGE 3 During the past several years the Clarington Public Library and the Clarington Museums and Archives have also been dealing with the Toronto Dominion Bank. However, some of the rates and the processes have differed from that enjoyed by the Municipality. With the introduction of a new agreement the rates, level of service and the contacts for service and information will be consistent for all three agencies. It is therefore recommended that the Toronto Dominion Bank be awarded the contract for Banking Services for the Municipality of Clarington. They have provided satisfactory service to the Municipality of Clarington for the past five (5) year period. The contract provides that should services not be carried out satisfactorily, the contract can be terminated by either party within ninety (90) days written notice. Attachments: Attachment 1 - Schedule "A", By-law Attachment 1 - Schedule "B" Schedule "A" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2008- Being a By-law to authorize a contract between the Corporation of the Municipality of Clarington and Toronto Dominion Bank, THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS FOllOWS: 1. THAT the Mayor and Clerk are hereby authorized to execute, on behalf of the Corporation of the Municipality of Clarington and seal with the Corporation Seal, a contract between, Toronto Dominion Bank, Oshawa, Ontario, and said Corporation; and 2, THAT the contract attached hereto as Schedule "A" form part of this By-law. By-law read a first and second time this day of ,2008, By-law read a third time and finally passed this day of ,2008, Jim Abernethy, Mayor Patti l, Barrie, Municipal Clerk Cl!J!jggtoo Municipality of Clarington SCHEDULE "B" BID SUMMARY RFP2007-7 MUNICIPAL BANKING SERVICES TO Commercial Banking Royal Bank of Canada Monthly Fee: $2,579.65/ month $3,427.75/ month Standard Account Activity, Electronic Funds, Transfers, Debit Terminal Fees and Credit Card Services Bank Interest Prime Prime Less 1.70 % Less 1.75 % Line of Credit Prime Prime Less 0.50 % Less 0.75 % Merchant Visa 1.78 % 1.79 %