Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: July 20, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager, or their designee, to execute a contract with Wells Fargo Bank, N.A. for
Bank Depository Services for the Finance Department; providing for the expenditure of funds therefor; and
providing an effective date (RFP 7435 – awarded to Wells Fargo Bank, N.A., in a five (5) year not-to-
exceed amount of $1,000,000.00). The Audit/Finance Committee recommends approval (3-0). The Public
Utilities Board recommends approval (5 - 0).
INFORMATION/BACKGROUND
The Depositories for Municipal Funds Act (Texas Local Government Code, Chapter 105) limits the term
of a bank depository services contract to no more than five (5) years. On April 26, 2016, the City Council
approved a bank depository services contract (Ordinance No. 16-293) with Wells Fargo Bank, N.A. The
contract was for a five (5) year term to expire on May 31, 2021. A ninety (90) day extension was approved
by both parties on May 20, 2021, extending the term to August 30, 2021.
The City’s depository requirements are extensive including but not limited to collateral on deposits,
safekeeping of investment securities, two lockbox payment sites for utility and EMS payments, and online
and real-time decision making. Typically, these requirements can only be met by a few large financial
institutions.
To fully evaluate bid proposals within the context of the City’s required services, Finance staff members
from Treasury and Accounting as well as staff from Customer Service and Development Services were
utilized to participate in the evaluation process. Below is the evaluation criteria used for the bank depository
services RFP.
• 5% Project Schedule
• 30% Specifications
• 45% Price
• 20% Probable Performance
Based on staff evaluations, Wells Fargo Bank’s bid continues to offer the City the best combination of
services and pricing. In addition, maintaining the City’s current bank depository allows staff to avoid
expensive conversion and implementation costs. The lack of implementation, continuation of products and
services, and strong relationships with the Wells Fargo Bank’s team over many years and evaluation score
provided staff the ability to recommend contract negotiations begin with Wells Fargo Bank.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Wells Fargo Bank has offered to waive eight (8) months of bank charges beginning the first month of the
contract as well as providing $10,000 in credit to purchase desk top deposit scanners for the duration of the
five-year contract. The City’s bank charge savings is estimated at $30,000 over the eight-month period.
Wells Fargo Bank’s proposed fees represent a decrease of approximately $4,400 or 4.26% per year
compared to the current contract fees, excluding optional services.
To lock in the fees from Wells Fargo Bank, the staff is proposing the City execute a five (5) year continuous
contract. However, either party may terminate the contract with 60 days' written notice. The City’s Legal
Department has reviewed this proposed contract term and has confirmed compliance with the Depositories
for Municipal Funds Act.
A Request for Proposal (RFP) for depository services was issued on September 1, 2020, and closed on
October 16, 2020.
Requests for Proposals was sent to 111 prospective suppliers of this item, including 3 Denton firms. In
addition, specifications were placed on the Materials Management website for prospective suppliers to
download and advertised in the local newspaper. Three (3) proposals were received, references were
checked, and proposals were evaluated based upon published criteria including schedule, compliance with
specifications, probable performance, and price. Based upon this evaluation, Wells Fargo Bank, N.A. was
ranked the highest and determined to be the best value for the City.
NIGP Code Used for Solicitation: 946 - (Service Only) - Financial
Services
Notifications sent for Solicitation sent in IonWave: 111
Number of Suppliers that viewed Solicitation in IonWave: 9
HUB-Historically Underutilized Business Invitations sent out: 5
SBE-Small Business Enterprise Invitations sent out: 28
Responses from Solicitation: 3
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 19, 2021, the Audit Finance Committee recommended approval to forward this item to the City
Council for consideration.
On July 12, 2021, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with Wells Fargo Bank, N.A., for Bank Depository Services for the Finance Department,
in a five (5) year not-to-exceed amount of $1,000,000.
PRINCIPAL PLACE OF BUSINESS
Wells Fargo Bank, N.A.
Dallas, TX
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract.
FISCAL INFORMATION
These products and services will be funded through the using department’s budget.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Evaluation
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Randee Klingele, 940-349-8206
Legal point of contact: Marcella Lunn at 940-349-8333.