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Consent-General Government # 13.
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| Board of Supervisors |
Financial Services |
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| Subject |
| Approve agreement with US Bank to provide general banking services, merchant, and E-payables services to the County from April 1, 2018 through December 31, 2023. (No general fund impact) (Newens) |
| Recommended Action |
| Approve agreement with US Bank to provide general banking services, merchant, and E-payables services to the County from April 1, 2018 through December 31, 2023 with an option for the Chief Financial Officer to extend annually for up to four (4) additional years. |
| Strategic Plan Goal(s) |
| Operational Excellence |
| Reason for Recommended Action/Background |
The County of Yolo Department of Financial Services issued a request for proposals (RFP) on November 3, 2017 to source the best qualified firm to provide Banking Services. The RFP was posted on Bidsync.com for nationwide exposure. Firms were invited to submit a proposal by December 15, 2017 for the following areas of service:
- Service 1 - General Banking
- Service 2 - Merchant Card Services and Web Payment Acceptance
- Service 3 - E-Payables
The County received bids from six banks (listed further below) and assembled a multi-departmental team to review the proposals in January, 2018. The top three vendors based on technical scoring were selected for onsite interviews during February, 2018.
The cost of each proposal was evaluated based on pricing from each financial institutions based on the transaction count or cost of each individual service. These costs for each respective bank are variable on a month to month basis based on the County's usage of the specific banking services. In order to provide cost comparison, the County's current utilization of banking services was used as an input to the evaluation process to provide comparability between costs of each respondent bank. Cost points were applied as an element in the overall scoring in determination of the most responsive bidder.
The County evaluation team's goal was to identify the best qualified and financially secure financial institution to administer the County’s extensive banking operations in the most efficient and cost-effective manner available, irrespective of geographical location or ownership. Therefore, no preference was given to economically disadvantaged businesses or local vendors.
This RFP process is a critical step towards the implementation of the County's E-commerce Strategy, since our new banking partner has the capacity and willingness to help the County take the next steps in E-commerce, including merchant card services, web payment and e-payables. |
| Collaborations (including Board advisory groups and external partner agencies) |
| Representatives from the Department of Financial Services, Health and Human Services, County Counsel, County Administrators Office, and Yolo County Office of Education were participants in the evaluation of the proposals, interviews of banks and preparation of the recommended contract. |
| Competitive Bid Process |
Request for Proposals (RFP) Service Requested: Banking Services (General Banking, Merchant Card Services, & Web Payment Acceptance)
Technical Evaluation Criteria
- Reasonableness of Costs (25 Points)
- Qualifications and Experience (10 Points)
- Implementation Schedule (15 Points)
- Demonstrated Competence (10 Points)
- Proposer's Approach to the Project (10 Points)
- Customer references (15 Points)
- Financial Stability (10 Points)
- Quality and Completeness of Submitted Proposal (10 Points)
- Proposer's Concept & Understanding of the County's goals (20 Points)
Interview Evaluation Criteria:
- Qualifications and Experience (25 Points)
- Implementation Schedule (25 Points)
- Proposer's Concept & Understanding of the County's goals (25 Points)
Bids Received
We received a total of 6 proposals for the above RFP that were evaluated on the technical criteria. The evaluation committee assembled for proposal review scored each of the banks up to 100 points on the technical merits of their proposal. The top three respondents, were invited to interviews on site and demonstrate their product which allowed for the award of an additional 100 points for a total of 200 points. The overall evaluation score resulted in this proposed award to US Bank.
| Bidder Finalist |
Final Score (200 Available Points) |
| US Bank |
180 |
| Wells Fargo |
168 |
| Bank of America |
153 |
| JP Morgan Chase |
85 |
| Bank of West |
83 |
| River City |
83 |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
The projected monthly fees for US Bank are not to exceed our current budgeted fees.There will be a period of transition between the new and existing banking providers and this implementation period may require additional expenses. In the proposal, US Bank provided a credit that can be applied toward the County's implementation costs to assist in this transitionary process.
The fees for banking services are part of the overall cost of the business of operating the County Treasury. A significant portion of these costs are charged to County's depositors (County, Special Districts, Schools, etc.) under Government Code 27013, through quarterly allocation of Treasury costs as part of the Interest apportionment process.
It is projected that approximately $96,000 will be expended per year for US Bank and will not exceed the fiscal year 2017-18 budget. |
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