2007-26614 ResoRESOLUTION NO. 2007-26614
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO
THE RANKING OF PROPOSALS PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 37-
06/07, FOR BANKING SERVICES; AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE TOP-RANKED PROPOSER, SUNTRUST BANK, AND SHOULD
THE ADMINISTRATION NOT BE SUCCESSFUL IN NEGOTIATING AN AGREEMENT WITH
THE TOP-RANKED PROPOSER, AUTHORIZING NEGOTIATIONS WITH THE SECOND-
RANKED PROPOSER, WACHOVIA BANK; AND FURTHER AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AGREEMENT UPON CONCLUSION OF SUCCESSFUL
NEGOTIATIONS BY THE ADMINISTRATION.
WHEREAS, Request for Proposals No. 37-06/07 for Banking Services was issued on
April18, 2007 with an opening date of May 31, 2007( the RFP); and
WHEREAS, the RFP requested competitive pricing for various banking services involving
the general operating and payroll accounts; and
WHEREAS, apre-proposal conference to provide information to banking institutions
submitting a response was held on May 3, 2007; and
WHEREAS, BidNet issued bid notices to six (6) prospective banking institutions, RFP
Depot issued bid notices to 37 prospective banking institutions, and 21 banking institutions were
notified via mail, a-mail, and fax circulation, which resulted in the receipt of three (3) proposals; and
WHEREAS, the City Manager, via Letter to Commission (LTC) No. 148-2007, appointed an
Evaluation Committee ("the Committee") consisting of the following individuals:
• Richard Montalbano, Financial Advisor to the City of Miami Beach, RBC Dain Rauscher;
• Sanford Horwitz, Resident and Graduate of the Leadership Academy;
• Georgina Echert, Assistant Director, Finance Department;
• Susan Kirkland, Resident and Graduate of the Leadership Academy;
• Rocio Rodriguez, Financial Analyst III, Parking Department; and
WHEREAS, on August 14, 2007, the Committee convened and a quorum was attained; the
City's Attorney's Office advised that, in an abundance of caution, Mr. Montalbano should recluse
himself from serving; and
WHEREAS, the Committee requested 45-minute presentations from each banking
institution, in order to meet the key personal assigned to perform fundamental tasks within the
scope of services and furthermore, to obtain visual and tangible demonstrations on numerous
processes such as on-line statements, daily adjustment notification, paid check listings, payroll
cards, fraud services, or purchasing card program; and
WHEREAS, the Committee reconvened on August 23, 2007 and discussed the Evaluation
Criteria and method of award to be utilized to rank the banking institutions; and
WHEREAS, the Committee discussed its individual perceptions of each banking
institution's qualifications, experience, and competence, and ranked the banking institutions being
evaluated accordingly; and
WHEREAS, a motion was made by Susan Kirkland, seconded by Rocio Rodriguez, and
unanimously approved by all Committee members, ranking the proposers as follows: (1) SunTrust
Bank; (2) Wachovia Bank; and (3) Colonial Bank; and
WHEREAS, the City Manager concurs with the Committee's recommendation and
recommends that the Mayor and City Commission hereby authorize the Administration to enter into
negotiations with the top-ranked proposer, SunTrust Bank; and should the Administration not be
successful in negotiating an Agreement with the top-ranked proposer, authorizing negotiations with
the second-ranked proposer, Wachovia Bank.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the
recommendation of the City Manger as to the ranking of proposals pursuant to Request for
Proposals (RFP} No. 37-06/07, for Banking Services, and hereby authorizing the Administration to
enter into negotiations with the top-ranked proposer, SunTrust Bank; and should the
Administration not be successful in negotiating an Agreement with the top ranked proposer,
authorize negotiations with the second-ranked proposer, Wachovia Bank; and further authorize the
Mayor and City Clerk to execute an agreement upon conclusion of successful negotiation by the
Administration.
PASSED AND ADOPTED THIS 5th DAY OF September 2007.
ATTEST:
(~ Get G~;c,~ _ _
CITY CLERK Matti Herrera Bower
Robert Parcher
T:\AGENDA\2007\sep0507\Consent\RFP-37-06-07 Bi ViCe-Mayor
APPROVED AS TO
FORM & LANGUAGE
COMMISSION ITEM SUMMARY
Condensed Title:
Accept the Recommendation of the City Manager Pertaining to the Ranking of Proposals Pursuant to
Request for Proposals (RFP) No. 37-06/07, for Banking Services; Authorize the Administration to Enter
Into Negotiations With the Top-Ranked Proposer, SunTrust Bank; and Should the Administration Not Be
Successful in Negotiating an Agreement With the Top Ranked Proposers, Authorizing Negotiations With
The Second-Ranked Proposer, Wachovia Bank; and Further Authorizing the Mayor and City Clerk to
Execute an Agreement Upon Conclusion of Successful Negotiation by the Administration.
Key Intended Outcome Supported:
To Improve the City's Overall Financial Health and Maintain Overall Bond Rating.
Supporting Data (Surveys, Environmental Scan, etc.): NIA
Issue:
Shall the City Commission approve the City Manager's recommendation?
Item Summary/Recommendation:
On April 11, 2007, the Mayor and City Commission approved the issuance of Request for Proposals (RFP)
No. 37-06/07 for Banking Services.
RFP No. 37-06/07 was issued on April 18, 2007 with an opening date of May 31, 2007. Apre-proposal
conference to provide information to the banking institutions submitting a response was held on May 3,
2007. BidNet issued bid notices to 6 prospective proposers, RFP Depot issued bid notices to 37
prospective proposers, and 21 proposers were notified via mail, a-mail, and fax circulation, which resulted
in the receipt of three (3) proposals.
The City Manager via Letter to Commission (LTC) No. 148-2007, appointed an Evaluation Committee ("the
Committee") that convened on August 14 and 23, 2007. The Committee members were provided with
Performance Evaluation Surveys and presentation from all banking institutions being evaluated. The
Committee discussed their individual perceptions of 'the bank's qualifications, experience, and
competence, and ranked the banking institutions being evaluated accordingly. The Committee
unanimously recommended entering into negotiations with the top-ranked banking institution, SunTrust
Bank.
ACCEPT THE CITY MANAGER'S RECOMMENDATION
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: ~
2
3
OBPI Total
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Gus Lopez extension 6641
Si n-Offs:
Depa ent Director Ass ity Manager Ci Manager
GL PDW JMG
T:WGENDA\20071~p05071Consent\RFP-37-06-07 Banking Services Item Sumrrfary.doc / / l 1
~~ f~ I~ ~~~ AGENDA ITEM G7~
'~' f~ DATE g'~ ~ 7
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor David Dermer and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager /`'
DATE: September 5, 2007
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS
PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 37-06/07, FOR
BANKING SERVICES; AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE TOP-RANKED PROPOSER, SUNTRUST
BANK, AND SHOULD THE ADMINISTRATION NOT BE SUCCESSFUL IN
NEGOTIATING AN AGREEMENT WITH THE TOP-RANKED
PROPOSER; AUTHORIZING NEGOTIATIONS WITH THE SECOND-RANKED
PROPOSER, WACHOVIA BANK; AND FURTHER AUTHORIZING THE MAYOR
AND CITY CLERK TO EXECUTE AN AGREEMENT UPON CONCLUSION OF
SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On April 11, 2007, the Mayor and City Commission approved the issuance of Request for
Proposals (RFP) for Banking Services. RFP No. 37-06/07 was issued to obtain competitive
pricing for various banking services involving the general operating and payroll accounts.
The City's Banking Services consists 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, Automated Clearing House (ACH)
deposits, daily and monthly statements and stop payments; lockbox processing; wire
transfers; zero balance and sweep services and automatic redeposit of items returned.
Pursuant to the City Key Intended Outcome to Improve the City's Overall Financial Health
and Maintain Overall Bond Rating, the City's Finance Department is in need of a "best value"
solution.
The costs of the aforementioned services are paid from the interest earned on the City's
overnight investment balances held by the bank. The issuance of an RFP will allow the City
to move forward with the selection of a banking institution that will provide various banking
services for the ensuing five-year period with one five-year renewal at the City's sole option.
RFP No. 37-06/07 was issued on April 18, 2007 with an opening date of May 31, 2007. A
pre-proposal conference to provide information to the banking institutions submitting a
response was held on May 3, 2007.
Commission Memorandum -RFP-37-06/07
September 5, 2007
Page 2 of 5
BidNet issued bid notices to 6 prospective banking institutions, RFP Depot issued bid
notices to 37 prospective banking institutions, and 21 banking institutions were notified via
mail, a-mail, and fax circulation, which resulted in the receipt of following three (3) proposals:
1. SunTrust Bank
2. Wachovia Bank
3. Colonial Bank
The City Manager via Letter to Commission (LTC) No. 148-2007, appointed an Evaluation
Committee ("the Committee") consisting of the following individuals:
• Richard Montalbano, Financial Advisor to the City of Miami Beach, RBC Dain
Rauscher
• Sanford Horwitz, Resident and Graduate of the Leadership Academy
• Georgina Echert, Assistant Director, Finance Department
• Susan Kirkland, Resident and Graduate of the Leadership Academy
• Rocio Rodriguez, Financial Analyst III, Parking Department
On August 14, 2007, the Committee convened and a quorum was attained. Richard
Montalbano stated on his Disclosure Questionnaire the existence of several potential
conflicts of interest and the City's Attorneys' Office advised that an abundance of caution
should be exercised, and therefore, Mr. Montalbano should recluse himself from serving.
The Committee unanimously nominated Ms. Susan Kirkland as Chair of the Committee.
Georgie Echert, Assistant Director of the Finance Department, addressed the Committee
and provided general information on the scope of services. The Committee members were
also provided with Performance Evaluation Surveys for all banking institutions being
evaluated.
The following Evaluation Criteria was used to evaluate and rank the groups or individuals:
1. State of the Art Technology - On-line Services 20 points
2. Charges for Services 45 points
3. Personal Contact Points -Customer Services 15 points
4. Overnight Repurchase Agreement Rate 20 points
The method of ranking the banking institutions utilized by the Committee was the following:
The banking institutions with more than 50% of the Committee Members' first-place votes
will be deemed the top-ranked banking institution; subsequent banking institutions or
banking institutions not receiving the majority of the Committee Member's first-place votes
will be ranked based on the total low aggregate ranked score.
It was the Committee's overall opinion to be in the best interest of the City to receive
presentations from the three (3) banking institutions. The Committee requested 45-minute
presentations from each banking institution in order to meet the key personal assigned to
perform fundamental tasks within the scope of services and furthermore, to obtain visual and
tangible demonstration on numerous processes such as on-line statements, daily
adjustment notification, paid check listings, payroll cards, fraud services, or purchasing card
program.
Commission Memorandum - RFP-37-06/07
September 5, 2007
Page 3 of 5
On August 23, 2007, the Committee reconvened and a quorum was attained. The
Committee received a brief summary on the Evaluation Criteria and method of award to be
utilized to rank the banking institutions. The Committee discussed their individual
perceptions of the banking institution's qualifications, experience, and competence, and
ranked the banking institutions being evaluated accordingly.
A motion was made by Susan Kirkland, seconded by Rocio Rodriguez, and unanimously
approved by all Committee members for SunTrust to be recommended for the award of
contract for Banking Services.
SunTrust proposed a state of the art treasury management services: Zero Balance
Accounting, Information Reporting Service through SunTrust over web browser which
provides the City the ability to manage ACH and relevant images. In addition, SunTrust will
continue to offer the wholesale lockbox service as it exists today with the enhanced Lockbox
Image Browser feature which captures information resident on deposited items and
remittance coupons.
In addition, SunTrust agreed to provide an ATM at no charge to the City which will be
located at City Hall.
SunTrust will continue to provide its state-of-the-art Purchasing Card program to the City of
Miami Beach, which has resulted in increasing and substantial hard dollar rebates to the
City. In order to alleviate some of the burden from the City's IT staff, SunTrust has even
offered to pay for a third party IT vendor to do some of the programming work that might be
required to ensure that we achieve the customized program performance benchmarks that
we have been developed.
SunTrust continues to develop and bring to market cutting age Treasury Management
programs that we believe will bring significant value to the City of Miami Beach in the future
including: a new Payroll Card service, Remote Check Capture technology, Fleet Card
program, Implementation of various initiatives to maximize rebate dollars and efficiencies
under the City's Purchasing Card program.
The final scoring was as follows:
-b{4w ~- i., ..
.~. # ~ 'r+
~,
;r;; Rocio LOW
r Sandford Georgina Susan Rodrigue TOTAL AGGREGATE
Horwitz Echert Kirkland z S TOTALS
SunTrust 80 1 90 1 86 1 92 1 348 4
wachovia 60 2 82 2 66 2 59 2 267 8
Colonial Bank 55 3 75 3 60 3 58 3 248 12
Commission Memorandum - RFP-37-06/07
September 5, 2007
Page 4 of 5
7 #'s 1 #'s 2 #'s 3
SunTrust 4 - -
Wachovia - 4 -
Colonial Bank - - 4
RANKING ORDER
1. SUNTRUST BANK
2. WACHOVIA BANK
3. COLONIAL BANK
SunTrust will provide the City with a new overnight investment alternative to increase interest
income on available balances and make the daily cash management process more efficient.
In addition, to the Earning Credit Rate (ECR) program provided at a very competitive rate in
order to increase compensating balances available to offset Bank charges. In early 2004,
SunTrust launched a unique program to simplify banking services solely for municipal
clients, the SunTrust Municipal NOW account. The Municipal NOW account complies fully
with the collateral requirement of F.A. Chapter 280, provides added transparency in
recordkeeping and for GASB 40.
Balances maintained in the SunTrust Municipal NOW account will earn interest at a
comparable or higher rate than the current sweep structure. SunTrust is offering the City an
investment rate equal to the published Federal Funds Rate Minus 5 basis points (equivalent
to 5.34% APY based on the current weekly Fed Funds Rate) on average collected balances
that are part of the current overnight sweep structure. The new Municipal NOW structure will
provide the City with a simplified operating platform coupled with some significant cost
savings versus a traditional sweep structure. There will be no conversion time or effort to
begin using this account type and all sweep related product charges will be eliminated going
forward.
Furthermore, the cost for SunTrust's services is $ 87,113.30, 38 % lower than Wachovia's
proposed cost of 140,049.60 and 28 % lower than Colonial's bank proposed cost of
$121,647.48.
The banking services contract will be subject to the City's Equal Benefits Requirements
Ordinance (the "Ordinance"), which applies to employees who work within the City of Miami
Beach limits, and employees located in the United States, but outside of the City of Miami
Beach limits, if those employees are directly performing work on the City's contract.
SunTrust's policy is to offer benefits to spouses and same sex domestic partners. SunTrust
does not offer benefits to opposite sex domestic partners. However, SunTrust has certified
that ALL SunTrust employees who work within the City of Miami Beach limits and/or
employees located outside of the City of Miami Beach limits, who are directly performing
work on the City's contract for banking services are in compliance with the City's Equal
Benefits Requirements Ordinance (No. 2005-3494).
Commission Memorandum -RFP-37-06/07
September 5, 2007
Page 5 of 5
The City Attorney's Office has advised that SunTrust complies with the City's Equal Benefits
Requirements Ordinance, and all necessary terms and conditions will be incorporated in the
form-approved contract. Additionally, the City's Procurement Division's Contracts
Compliance Specialist will ensure compliance by SunTrust throughout the term of contract.
CONCLUSION
The Administration recommends that the Mayor and City Commission of the City of Miami
Beach, accept the recommendation of the City Manager pertaining to the ranking of
proposals pursuant to Request for Proposals (RFP) No. 37-06/07, for Banking Services;
Authorizing the Administration to enter into negotiations with the top-ranked banking
institution, SunTrust Bank; and should the Administration not be successful in negotiating an
Agreement with the top ranked banking institutions, authorizing negotiations with the
second-ranked banking institution, Wachovia Bank; and further Authorizing the Mayor and
City Clerk to execute an agreement upon conclusion of successful negotiation by the
Administration.
T:WGENDA\2007\sep0507\Consent\BankingServicesFinal.doc