C2B-Issue RFP Various Banking Services To The City Of Miami BeachCOMMISSION ITEM SUMMARY
Condensed Title:
Request For Approval To Authorize The Issuance Of A Request For Proposals (RFP) For The
Provisions Of Various Banking Services To The City Of Miami Beach, For A Five-Year Period
With Five One-Year Renewal.
Key Intended Outcome Supported:
Improve the City's overall financial health and maintain overall bond rating.
Supporting Data (Surveys, Environmental Scan, etc.): N/A
Issue:
I Should the City Commission authorize the issuance of an RFP for banking services?
Item Summary/Recommendation:
Every five years the City issues an RFP seeking competitive pricing for various banking
services involving the general operating, general depository and payroll accounts among
several others. These services consist of a General Depository Account for funds collected
daily; a General Disbursing Account which is strictly a checking account; a Payroll Disbursing
Account to cover bi-weekly payroll; computerized services, including direct deposits, control
pay, web pay, debit/credit memos, ACH deposits, daily and monthly statement and stop
payments; lockbox processing; wire transfers; zero balance services and automatic redeposit of
items returned to mention a few.
With the approval of the City Commission, the Administration will issue two separate RFP's:
one for banking services and the other for credit card merchant processing services. By
issuing two separate RFP's, the City is anticipating that it will receive more replies to the credit
card merchant processing service than combining this service with the banking services in just
one RFP. The objective the credit card merchant processing service RFP would be to identify
the credit card processing company that will provide the City with the highest quality service for
the best value.
The cost of these services will be paid from the interest earned on 1he City's General
Depository Account which is an interest bearing account held by the bank.
The original term of the contract will begin on January 1, 2013 for a five year term with five one-
year renewal options. Each year of the five year options may be renewed at the sole discretion
of the City, through its City Manager.
AUTHORIZE THE ISSUANCE OF THE RFP
Advisory Board Recommendation: N/A
Financial Information:
Amount Account 'Appro:ved
Source of Funds: Cost of services paid by interest
QBPI earnings
Total
City Clerk's Office Legislative Tracking:
Patricia Walker, Chief Financial Officer
Sign-Offs: n \
Department Director As _l: 71,.-,., i~y Manager
POW 'V
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M!IAMIBEACH 43
·City'Manager
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AGENDA ITEM _C_~...,B __
DATE 7.,/ 'i-I l-
~ MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miomi Beach, Florida 33139, www.miamibeachfl.gov
TO:
FROM:
DATE:
SUBJECT:
COMMISSION MEMORANDUM
Mayor Matti H. Bower and Members of the City Commi~sion ~ .£
Kathie G. Brooks, Interim City Manager /~ Y --•
July 18, 2012
REQUEST FOR APPROVAL TO AUTHORIZE THE ISSUANCE OF A REQUEST
FOR PROPOSALS (RFP) FOR THE PROVISIONS OF VARIOUS BANKING
SERVICES TO THE CITY OF MIAMI BEACH, FOR A FIVE-YEAR PERIOD WITH
FIVE ONE-YEAR RENEWAL OPTIONS.
ADMINISTRATION RECOMMENDATION
Authorize the issuance of the RFP.
ANALYSIS
Every five years the City issues an RFP seeking competitive pricing for various banking
services involving the general operating, general depository and payroll accounts among
several others. These services consist of a General Depository Account for funds collected
daily; a General Disbursing Account which is strictly a checking account; a Payroll
Disbursing Account to cover bi-weekly payroll; computerized services, including direct
deposits, control pay, web pay, debit/credit memos, ACH deposits, daily and monthly
statement and stop payments; lockbox processing; wire transfers; zero balance services and
automatic redeposit of items returned to mention a few.
With the approval of the City Commission, the Administration will issue two separate RFP's:
one for banking services and the other for credit card merchant processing services. By
issuing two separate RFP's, the City is anticipating that it will receive more replies to the
credit card merchant processing service than combining this service with the banking
services in just one RFP. The objective of the credit card merchant processing service RFP
would be to identify the credit card processing company that will provide the City with the
highest quality service for the best value.
The cost of these services will be paid from the interest earned on the City's General
Depository Account which is an interest bearing account held by the bank.
The original term of the contract will begin on January 1, 2013 for a five year term with five
one-year renewal options. Each year of the five year options may be renewed at the sole
discretion of the City, through its City Manager.
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Commission Memorandum-July 18, 2012
Banking Services RFP
Page2 of5
SCOPE OF SERVICES
There are several services which are required as part of this request for proposal. All
services must be included in the proposal in order for it to be considered. The banking
services detailed in this section are to be performed for the City on a contractual basis for
five years with five one-year renewal options. It is the intent of the City to have one single
bank provide the service needs of the City on its three major bank accounts, which are the
general depository, general disbursing and payroll accounts and any other bank accounts
that the City may have or open in the future. The services and scope of services are as
follows:
1. GENERAL DEPOSITORY ACCOUNT-City funds collected daily will be deposited in
this account the following business day. Checks deposited will be available the day
of deposit in the bank by the time of day the bank normally closes its transactions for
that day. This will also include Automated Clearing House (ACH) transactions
generated by Miami-Dade County, which must be considered available on date of
receipt, even if received after normal closing hours. All transactions must be
identified. This account has to be an interest bearing account. The proposer will
need to show the basis and method of computing such interest earnings.
2. GENERAL DISBURSING ACCOUNT -This account will be strictly a checking
account. The bank will transfer the exact amount of funds each day to this account
to cover clearings. Approximately 1 ,500 checks will be issued monthly, amounting to
approximately $7,000,000. Disbursements will be made by check as well as wire
transfer; each transaction must be shown separately on the bank statement (no
netting permitted).
3. PAYROLL DISBURSING ACCOUNT-The City's payroll is currently bi-weekly,
paying every other Friday approximately 2,000 employees; net pay amounts to
approximately $3,000,000 bi-weekly. The bank will transfer the exact amount
required each day to cover clearings
4. COMPUTERIZED SERVICES -All demand and time deposit accounts maintained
must be computerized so that reconciliation can be performed. Reconciliation
service to produce an outstanding check list for each account with substantial check
activity must be available to the City by the 15th day of the month following activity,
as well as, a CD with scanned images of the front and back of each check issued for
all accounts. In addition, the bank must provide a separate computer listing of all
checks which have cleared by check (voucher) number and amount with a total
dollar amount indicated on all accounts not designated for automatic reconciliation
services.
The City needs the ability to use a form of Control Pay that will allows items that are
transmitted to be verified prior to being paid by the bank.
The ability to offer ACH on-line bill payment, utilizing credit cards, debit cards, and
ACH transactions.
The City requires an On-line banking feature to be used to obtain and report on
balances and transactions on a daily basis for each bank account. This feature must
also allow for the initiation of wire transfers and stop payments.
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Commission Memorandum -July 18, 2012
Banking Services RFP
Page3 of5
The proposer should have the capability to upload data (cleared checks) to the City's
financial system.
5. SAME DAY PROCESSING-All transactions received before the close of business
must be posted on the same day (at no extra charge).
6. STATEMENT AND ADVICE FREQUENCY -All advises affecting a debit or credit
memo type transaction must be produced daily and emailed/fedex to the City.
Statements on all bank accounts will be produced monthly on a calendar month
basis and available to the City no later than the 7th working day of the subsequent
month.
7. AUTOMATIC REDEPOSIT OF DEPOSIT ITEMS RETURNED-All deposit items
charged back on the City's general operating/depository account will be automatically
re-deposited the following day of the bank. If returned a second time, they will be
forwarded on a daily basis to the City
8. DIRECT DEPOSIT/ACH-PAYROLL CHECKS-The proposer must have the ability
to initiate direct deposit for payroll. It is estimated that 1850 of the City's 2000
employees utilize direct deposit. Additionally, the ability to provide payroll cards for
those employees that are not on direct deposit
9. COUNT AND DEPOSIT METER COLLECTIONS-The Parking Department via an
armored car service will deliver 20-23 bags containing coins (in all denominations) in
the amount of $12,000 to $20,000 daily. Bank must have the ability to count, weigh
and deposit coins, or provide an alternative solution for this process.
10. LOCK BOX ACCOUNT PROCESSING -The City utilizes a lock box to receive
payments for various types of City fees. The proposer must have the ability to
process transactions and report by type. The estimated volume is $2,500,000 per
month.
11. AUTOMATED TELLER MACHINE (ATM}-The proposer must be willing to install a
revenue sharing ATM at City Hall (at no cost to the City).
12. LOCAL .DECISION MAKING AT BANK OFFICES-The location of a banking office
should be located in Miami Beach preferably located convenient to City Hall. This
banking office should have the ability to make decision and solve problems.
13. PERSONAL CONTACT-The proposer must assign personal contacts at the Senior
Management level, Branch, Treasury Management, Merchant Services and
Technical Support areas.
14. PURCHASING CARD PRODUCT-The proposer must provide a Purchasing Card
Product for ease of procurement purchases that can interface with the City's financial
system, and it must also interface with the program Card Manager Plus by WORKS,
or other equivalent software.
15. ADDITIONAL SERVICES (OPTIONAL)-No charge for non-client check cashing;
offer employee benefits that include free checking account and other employee
benefits.
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Commission Memorandum -July 18, 2012
Banking Services RFP
Page4 of5
16. OTHER OFFERED SERVICES-Any other product/service that the proposer may
offer its clients that the City has not otherwise requested in the RFP.
Alternate services:
17. CREDIT CARD PROCESSING-The proposer must have the ability to accept credit
card payments on the Internet. Credit card payment must be processed within one
business day. The proposer may incorporate as part of its bid, an additional
alternative for credit card processing. Specifications for the credit card services are
available on the RFP for credit card merchant processing services that will be issued
in conjunction with the banking services RFP.
EVALUATION/SELECTION PROCESS; CRITERIA FOR EVALUATION
The procedure for proposal evaluation and selection is as follows:
1. Request for Proposals issued.
2. Receipt of proposals.
3. Opening and listing of all proposals received.
4. An Evaluation Committee, appointed by the City Manager, shall meet to
evaluate each proposal in accordance with the requirements of this RFP. If
further information is desired, proposers may be requested to make
additional written submissions or oral presentations to the Evaluation
Committee.
5. The Evaluation Committee shall recommend to the City Manager the
proposal or proposals acceptance of which the Evaluation Committee deems
to be in the best interest of the City. The Evaluation Committee shall base its
recommendation on the following criteria:
• State of the Art Technology-On-line Services-25 points
• Charges for Services -45 points
• Personal Contact Points -Customer Services -15 points
• Interest rate earned -15 points
;
LOCAL PREFERENCE: The Evaluation Committee will assign an additional
five (5) points to Proposers, which are, or include as part of their proposal
team, a Miami Beach-based vendor as defined in the City's Local Preference
Ordinance.
VETERANS PREFERENCE: The Evaluation Committee will assign an
additional five (5) points to Proposers, which are, or include as part of their
proposal team, a small business concern owned and controlled by a
veteran(s) or a service-disabled veteran business enterprise, as defined in
the City's Veterans Preference Ordinance.
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Commission Memorandum-July 18, 2012
Banking Services RFP
Page5 of5
6. After considering the recommendation(s) of the Evaluation Committee, the
City Manager shall recommend to the City Commission the proposal or
proposals acceptance of which the City Manager deems to be in the best
interest of the Cio/.
7. The City Commission shall consider the City Manager's recommendation(s)
in light of the recommendation(s) and evaluation of the Evaluation
Committee and, if appropriate, approve the City Manager's
recommendation(s). The City Commission may reject City Manager's
recommendation(s) and select another proposal or proposals. In any case,
City Commission shall select the proposal or proposals acceptance of which
the City Commission deems to be in the best interest of the City. The City
Commission may also reject all proposals.
8. Negotiations between the selected proposer and the City Manager or
designee take place to arrive at a contract. If the City Commission has so
directed, the City Manager may proceed to negotiate a contract with a
proposer other than the top-ranked proposer if the negotiations with the top-
ranked proposer fail to produce a mutually acceptable contract within a
reasonable period of time.
9. If the City Commission has so approved, the City Manager or designee after
successful negotiations, will present a contract acceptable to the respective
parties to the City Attorney's office for approval as to form and language, and
then to the Mayor and City Clerk for signature after the selected proposer
has done so.
CONCLUSION
The Administration recommends that the Mayor and Commission authorize the issuance of
the RFP for banking services.
JMG/PW/jr
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