TO: Mayor Bien-Willner and Town Council Members
FROM: Jill Keimach, Town Manager
Douglas Allen, CFO
DATE: September 10, 2020
DEPARTMENT: Finance
Staff Contact Douglas Allen
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AGENDA TITLE:
Title
Discussion and possible direction on options for Banking and Investment Services
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SUMMARY STATEMENT:
The approach to selecting the Town's banking and investment service providers was discussed by the "Banking and Investment Summer Workgroup" and is being brought to the Mayor and Town Council in the spirit transparency, to continuously find improvements and to regularly review processes that support the Town's tradition of judicious fiscal management. The discussion was not initiated by or a result of dissatisfaction or concern with the Town's current banking services or investment practices.
Three services areas under consideration:
I. Government banking services;
II. Merchant Services (Credit Cards); and
III. Investment pool participation.
I. GOVERNMENT BANKING
The Town has used Wells Fargo as its primary bank for all governmental banking services for an extended period. The pricing contract has expired. Like all other contracts with the Town, a formal procurement process is required.
With the complexity and infrequent nature of procuring banking services, governments typical engage a consultant to assist in this process. However, compared to medium and large municipalities, the cost benefit of a consultant for Paradise Valley is a factor to consider.
Recommended Action:
Extend with Wells Fargo through December 2021 via a co-op agreement for new pricing and examine the feasibility of procurement options during the 2022 budget process.
Why Change Pricing Models before Request for Proposal ("RFP")?
* The duration of a banking RFP can be extensive;
* The current pricing contract is expired and can be negotiated; and
* The Town may benefit from an estimated savings of $4,921 per year, based on "analyzed charges" and Wells Fargo ne...
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