Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: November 19, 2024
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract with Wells Fargo Merchant Service, L.L.C., for
debit/credit card processing for the Finance Department; providing for the expenditure of funds therefor;
and providing an effective date (RFP 8601 – awarded to Wells Fargo Merchant Services, L.L.C., in the five
(5) year not-to-exceed amount of $10,000,000.00).
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. In consulting with the City’s Legal
Department in 2015, it was determined that merchant services are not presently considered depository
services as defined in the act. However, staff opts to solicit proposals in conjunction with the Bank
Depository Services Request for Proposal (RFP) every five years as a best practice approach.
On December 14, 2021, the City Council approved a merchant services contract (Ordinance No. 21-2689)
with Wells Fargo Merchant Services (WFMS). The contract was for a five (5) year term to expire on
December 13, 2026. In addition, the City Council approved an amendment on December 12, 2023, to
increase the not-to-exceed amount from $5,000,000 to $6,250,000 as allowed by Texas Local Government
Code Sec 225.048.
On June 21, 2024, staff initiated an RFP for debit/credit card processing services and according to state law
was published in the Denton Record Chronicle and issued in Denton’s procurement software, Ionwave. The
City answered over sixty questions by email from potential bidders. The City received six card processing
services bids to evaluate by the deadline. The City’s card processing volume is spread across 30 point-of-
sale locations and nine (9) internet sites. The fact that the City utilizes a single software program, along
with a single provider, allows for several efficiencies and economies of scale at the point of purchase.
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 Parks were utilized to participate
in the evaluation process. Below is the evaluation criteria used for the credit/debit card services RFP.
• 5% Project Schedule
• 25% Specifications
• 45% Price
• 25% Probable Performance
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Based on staff’s evaluations, both by bid review and bidder presentations, staff concluded that Wells Fargo
Merchant Services’s bid continues to offer the City the best combination of services and pricing. In addition,
maintaining the City’s current card processor allows staff to avoid expensive conversion and
implementation costs. The evaluation team, led by Purchasing, found it unnecessary to seek further actions
with the other five bidders. The lack of implementation, continuation of products and services, and strong
relationship with the WFMS team and evaluation score provided staff the ability to recommend contract
negotiations begin with WFMS.
In order to lock in the proposed pricing, staff is proposing the City execute a five (5) year continuous
contract. Based upon this evaluation, WFMS was ranked the highest and determined to be the best value
for the City.
Request for Proposals was sent to 210 prospective suppliers, including three (3) Denton firms. In addition,
specifications were placed on the Procurement website for prospective suppliers to download and advertised
in the local newspaper. Six (6) proposals were received, references were checked, and proposals were
evaluated based upon published criteria including delivery, compliance with specifications, probable
performance, and price. Best and Final Offers (BAFO) were requested from the top firm. Based upon this
evaluation, Wells Fargo Merchant Service, L.L.C. 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: 210
Number of Suppliers that viewed Solicitation in IonWave: 25
HUB-Historically Underutilized Business Invitations sent out: 24
SBE-Small Business Enterprise Invitations sent out: 55
Responses from Solicitation: 6
RECOMMENDATION
Award a contract with Wells Fargo Merchant Services, L.L.C., for debit/credit card processing for the
Finance Department, in a five (5) year not-to-exceed amount of $10,000,000.
PRINCIPAL PLACE OF BUSINESS
Wells Fargo Merchant Services, L.L.C.
Minneapolis, MN
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract.
FISCAL INFORMATION
These services will be funded from a combination of operating funds. Requisitions will be entered on an
as-needed basis. The budgeted amount for this item is $10,000,000. The City will only pay for services
rendered and is not obligated to pay the full contract amount unless needed.
Wastewater – Beneficial Reuse 640400.7882
Solid Waste – Administration 660001.7882
Customer Service 870100.7882
Non-departmental – All Other Departments 160099.7882
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Evaluation
Exhibit 3: Presentation
Exhibit 4: 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.