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HomeMy WebLinkAboutCOD-027-13 Cladiwn REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: November 12, 2013 Resolution#: f - 11 By-law#: Report#: COD-027-13 File#: Subject: RFP2013-1 MUNICIPAL BANKING SERVICES RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-027-13 be received; and 2. THAT the contract for Banking Services, for the Municipality of Clarington be awarded to the Toronto Dominion Bank; 3. THAT the contract be awarded for a five (5) year term with an option to renew for an additional five (5) year term subject to acceptable pricing and satisfactory service; 4. THAT pending acceptable pricing and satisfactory service the Purchasing Manager be authorized to extend the contract for an additional five years; and 5. THAT the Mayor and Clerk, Director of Finance and Chief Administrative Officer as appropriate be authorized to sign all necessary documentation. Submitted by: Reviewed by: arie'Marano, H.B.Sc., Franklin Wu, AMCT, Chief Administrative Officer Director of Corporate Ser * es Nanc aylor AB.B.A., C.P.A., C.A., Director of Finance/Treasurer M M\J D B\br CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379 REPORT NO.: COD-027-13 PAGE 2 1. BACKGROUND 1.1 Request for Proposal RFP2013-1 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, Clarington Older Adults and the Clarington Museums and Archives. The term of the agreement is for a period of five (5) years with an option to extend for a further five (5) year term. The participation of the external agencies was provided as a potential cost savings alternative at their discretion. 1.2 The Request for Proposal (RFP) was advertised electronically on the Municipal website and the Ontario Public Buyers Association website. 1.3 A total of twelve (12) banking or credit organizations obtained the bid document and four (4) bids were received. All bids were deemed compliant. 1.4 Submissions were reviewed by the evaluation team consisting of staff from the Finance Department, Purchasing and Clarington Library. A summary of estimated costs on a monthly basis for services required by the municipality for the four banks submitting a proposal is provided on Attachment "'I". 1.5 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 2. ANALYSIS 2.1 Each banking establishment submitted comprehensive proposals addressing the numerous issues contained in the bid document. During the evaluation process it was discovered that some submissions had been qualified to the effect that additional information would be provided only on award and/or required the Municipality to enter into separate agreements for Merchant Services which is contrary to the requirements set out in the RFP. Consequently, the evaluation process was limited to the evaluation of the Part A Proposal Submissions and three of the companies did not move forward in the Evaluation Process. The Toronto Dominion Bank submission met all requirements of the RFP and moved forward in the process. REPORT NO.: COD-027-13 PAGE 3 2.2 Based on the overall high score of submissions, the evaluation committee's recommendation is to award the contract to Toronto Dominion Bank. 2.3 The Toronto Dominion Bank service fees are competitive to one other submission; however, that submission failed to achieve the required rating for further consideration and also failed to provide all required services in-house and the provision of some key information was contingent upon award. Overall there were insufficient benefits to warrant moving to another banking provider. Other factors were considered during the evaluation process such as multiple banking locations within Clarington and innovative techniques to banking services. In these areas, Toronto Dominion Bank scored higher. In all proposals, with the exception of Toronto Dominion Bank, the merchant services had to be contracted separately from the banking services. This is contrary to the RFP requirements. 2.4 The Toronto Dominion Bank has provided similar services to the Municipality of Clarington for a number of years to the satisfaction of the Director of Finance. 2.5 Queries with respect to the departmental needs, specifications, etc. should be referred to the Director of Finance. 3. FINANCIAL 3.1 The annual fees applicable to this agreement estimated at $26,922.60 annually are included in the applicable annual operating accounts. 4. CONCURRENCE 4.1 This report has been reviewed by Nancy Taylor, Director of Finance who concurs with the recommendations. 5. CONCLUSION 5.1 It is recommended that the contract for banking services be awarded to the Toronto Dominion Bank for the provision of banking services. REPORT NO.: COD-027-13 PAGE 4 CONFORMITY WITH STRATEGIC PLAN — The recommendations contained in this report conform to the general intent of the following priorities of the Strategic Plan: Promoting economic development x Maintaining financial stability Connecting Clarington Promoting green initiatives Investing in infrastructure Showcasing our community Not in conformity with Strategic Plan Staff Contact: Jerry Barber, Manger of Purchasing Attachments: Attachment 1 - Tabulation List of interested parties to be advised of Council's decision: NONE Attachment 1 Leading the Way Municipality of Clarington BID SUMMARY RFP2013-1 MUNICIPAL BANKING SERVICES Total Fees Toronto Dominion Bank $2,243.55 per month Royal Bank of Canada $4,654.60 per month CIBC $6,503.46 per month Scotia Bank $2,238.77 per month Total Fees includes standard account activity, cash management services, electronic funds transfers, credit cards services and debit services. i i