HomeMy WebLinkAbout03 28 11_Award Banking Services Contract to US Bank32332_5Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Laurae Clark, Treasurer
Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Accept US Bank’s bid proposal for banking services.
MEETING DATE: March 28, 2011
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Accept US Bank’s bid proposal for banking services for the period
of April 1, 2011 through April 1, 2014.
BACKGROUND: 7-6-206. Time deposits -- repurchase agreement. (1) Public money not
necessary for immediate use by a county, city, or town that is not invested as authorized in 7-6-
202 may be placed in time or savings deposits with a bank, savings and loan association, or
credit union in the state or placed in repurchase agreements as authorized in 7-6-213. Money
placed in repurchase agreements is subject to subsection (2).
(2) The local governing body may solicit bids for time or savings deposits from a bank,
savings and loan association, or credit union in the state.
The City of Bozeman’s current contract for banking services expires on April 1, 2011. An RFP
for banking services including a Repurchase Agreement was sent to all banks within the City
limits of Bozeman. The qualifications and criteria for selection included; prior experience in
municipal banking services as well as dedicated resources, interest rate on the repurchase
agreement, the overall quality of banking services to be provided and convenience to the City.
Other requirements included proper submission of proposal, comprehensiveness of services
provided, charges for services, cost of transition, software compatibility, service enhancements
and an assigned relationship Manager/Team.
We received bids from six banks; US Bank, First Interstate Bank, Wells Fargo, Stockman Bank,
Big Sky Western Bank and Rocky Mountain Bank. After an extensive review of all of the
factors listed above, we have chosen US Bank as the best bank to meet our needs at the lowest
cost to the City of Bozeman.
US Bank’s credit ratings put them as an industry leader in the nation in financial performance,
safety, soundness and collateralization. They have great references as the City of Helena, City of
Billings, and the City of Missoula have all used US Bank for many years. The services available
to us are extensive and give us optimum protection for fraud prevention should we choose to
utilize these additional services. I have also worked with the Vice President & Relationship
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Manager for Government Banking at US Bank for a number of years and am very confident in
her knowledge and ability to help us make this transition as easy as possible.
All proposals are available in the Treasurer’s office should you wish to review them in more
depth.
UNRESOLVED ISSUES: None
ALTERNATIVES: As suggested by the City Commission.
FISCAL EFFECTS: There will be transition costs as we move to the new bank—new checks
and deposit tickets at a minimum, though US bank is providing some assistance with the
conversion expenses.
Attachments: None
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