Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: December 14, 2021
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 Services, LLC, for
debit/credit card processing for all City departments; providing for the expenditure of funds therefor; and
providing an effective date (RFP 7436 – awarded to Wells Fargo Merchant Services, LLC, in the five (5)
year not-to-exceed amount of $5,000,000.00).
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 June 21, 2016, the City Council approved a merchant services contract (Ordinance No. 16-164) with
Wells Fargo Merchant Services (WFMS). The contract was for a five (5) year term to expire on June 21,
2021.
On September 1, 2020, staff initiated an RFP for debit/credit card and check processing services and
according to state law was published in the Denton Record Chronicle. In addition, the RFP was labeled with
NGIP code 946 (Financial Services) in Denton’s procurement software, Ionwave. NGIP, the National
Institute of Government Purchasing code is a universal classification for organizations to identify
commodities and services in a procurement system. The City answered questions by email from bidders
and hosted a pre-bid conference call/video. The City received 4 card processing services bids to evaluate
by the October 16, 2020 deadline. The City’s card processing volume is spread across 23 points of sale
locations and 6 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. The current card
terminals are swipe and EMV (insert) compliant but are at the end of their life cycle so will be replaced as
needed.
With no bids submitted for electronic check processing services, Finance submitted the electronic check
processing scope of work through the Small Purchases process for services $3,000 - $50,000. The annual
estimated cost of electronic check processing is $4,100.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
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 Solid Waste 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
• 50% Price
• 20% Probable Performance
Based on staff’s evaluations, both by bid review and bidder presentations, staff concluded that Wells Fargo
Merchant Service’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 three 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.
Requests for Proposals was sent to 112 prospective suppliers of this item. In addition, specifications were
placed on the Materials Management website for prospective suppliers to download and advertised in the
local newspaper. Five (5) 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 Merchant Services, LLC 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: 112
Number of Suppliers that viewed Solicitation in IonWave: 29
HUB-Historically Underutilized Business Invitations sent out: 5
SBE-Small Business Enterprise Invitations sent out: 28
Responses from Solicitation: 5
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On December 13, 2021, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award a contract with Wells Fargo Merchant Services, LLC, for debit/credit card processing for all City
departments, in a five (5) year not-to-exceed amount of $5,000,000.
PRINCIPAL PLACE OF BUSINESS
Wells Fargo Merchant Services, LLC
Dallas, TX
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract.
FISCAL INFORMATION
These services will be funded from various operating funds.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Evaluation
Exhibit 3: LLC Members
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.