City of Reno
Nevada

Staff Report
11446

Staff Report (For Possible Action): Approval of Agreement for Professional Consulting Services with PFM Asset Management LLC for assistance with the drafting and evaluating of banking services request for proposal process in an amount not to exceed $50,000. (General Fund)

Information

Department:FinanceSponsors:
Category:AgreementProjects:Ensure Financial Stability

Recommendation and Proposed Motion

Recommendation:  Staff recommends Council approve the Agreement.

 

Proposed Motion:  I move to approve staff recommendation.

Staff Report Formal Body

Summary: On November 18, 2009, the City entered into agreements with Bank of America to provide a wide variety of professional banking services necessary to operate a municipal corporation.  It is prudent business practice to evaluate the provision of banking services from time to time to ensure the City is receiving the best quality and most efficient services at competitive rates.  This item is to provide for a consultant with industry expertise to provide support to the Request for Proposal (RFP) process and to assist in drafting the RFP and evaluating the proposals submitted to the City.

 

Previous Council Action:

August 22, 2018 - Council approved a subsequent Agreement for Depository and Banking Services with Bank of America for a two-year term with a one-year extension option.

 

November 18, 2009 - Council awarded a Banking Services Agreement to Bank of America.

 

Discussion:  NRS 268.025 provides that the City may enter into an agreement with an insured state or national bank.  NRS 354.770 provides that a local government may enter into contracts with issuers of credit cards.  The services contemplated are considered professional services. Pursuant to NRS 332.115(1)(b), contracts which by their nature are not adapted to award by competitive bidding, including contracts for professional services, are not subject to the competitive bidding requirements under NRS 332.  While competitive bidding is not required, it is considered a best practice to issue a Request for Proposals (RFP) in order to get the most competitive and efficient service going forward.

 

Hiring a consultant to assist in drafting the RFP and evaluating the proposals will provide for a more robust process.  Banking services are complex with special terminology requiring outside expert assistance in ensuring the City makes the best decision for these services. The consultant will add significant value and bring additional much needed expertise to the process.  The RFP will provide for proposals on one or more of the required services. 

 

The RFP document will provide for proposals for General Banking Services, Lock Box Processing Services, Institutional Custody, Merchant Card Processing, Purchasing Card/Electronic Payables and Payroll Cards.  The City already did a separate RFP and agreement for Armored Car Services.  By setting up the process to have proposals for each type of banking service, the City will have separate agreements for each type of service which will allow the City to keep up with modern banking practices going forward.

 

Financial Implications:  The City currently spends approximately $350,000 annually for banking services.  The FY 19/20 budget includes $50,000 in the General Fund for support in issuing and evaluating a banking RFP.  There are no additional fiscal impacts.

 

Legal Implications:  None.