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THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# 0
Date October 23, 1995 Res # _'5
By-Law# 1
Report# Lk� � File#
Subject MUNICIPAL BANKING SERVICES
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee recommend
to Council the following:
1. THAT Report TR-70-95 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 be forwarded to Council for approval;
5. THAT the Mayor and Clerk and/or Treasurer and Deputy Treasurer as appropriate
be authorized to sign all necessary documentation; and
6. THAT all parties be notified of Council's decision.
BACKGROUND:
1.0 Proposal Call
1.1 Report TR-47-95 in July 1995, advised Council that the banking services would be
advertised for renewal in the form of a proposal call.
1.2 The proposal call was advertised and closed in August 1995.
1.3 The banking services are currently on a month by month basis with the Bank of Nova Scotia.
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1H15 O PP f-W RECYCLED PAPER
TR-70-95 Page -2-
2.0 Results of Proposal Call
2.1 The proposals have been reviewed in detail. Schedule "A" indicates the costs on an
annualized basis for services required by the Municipality for each of the five (5) major
banks that submitted a proposal.
2.2 The Toronto Dominion Bank submitted the lowest bid. The Toronto Dominion Bank also has
offered the lowest merchant VISA rate. Based on approximately $2,000,000 in VISA
transactions annually, this represents a cost savings of approximately $2,700 over the other
banks.
2.3 In addition, the Toronto Dominion Bank will provide the lowest interest rate charge for the
Municipality's line of credit.
2.4 The balance of the services to be provided that are not detailed above are equal or better
than other bidders and the current services (copy of details is circulated as Confidential
Attachment #1). The Toronto Dominion Bank will also provide financial assistance towards
the costs associated with changing financial institutions (ie. cheque replacement, etc.).
2.5 References provided in the proposal call were contacted. All references attested to a high
level of quality service and significant support during transition periods.
3.0 Conclusion
3.1 It is recommended that the Toronto Dominion Bank be awarded the contract for Banking
Services for the Municipality of Clarington. The previous contract was not with the Toronto
Dominion Bank, however, it is apparent that the cost savings will far outweigh the transition
costs associated with this change.
3.2 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.
Respectfully submitted, Reviewed by,
-
/1' 'Marie A. arar�o, .BSc., A.M.C.T., tockwell,
Treasurer. hief Administrative Officer.
MM/NT/hjl
Attachment
' 702
SCHEDULE "A"
Toronto Royal Bank Bank of CIBC Bank of
Dominion Nova Scotia Montreal
Annual Cost $2,325 $5,844 $10,180 $16,272 $19,920
Note: The above schedule is based on fixed fees charged by the major banks, ie. monthly service
fee, Interac machine rental, etc. Variable rates were compared between banks as noted in
Confidential Attachment #1.
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CONFIDENTIAL REPORTS
✓ G PA
REPORT NO. TR-70-95
(Attachment Only)
Resolution#:
By-law#:
DATE OF REPORT: October 23, 1995
Municipal Banking Services