City of Grand Island Tuesday, May 8, 2018 Council Session Item I-1 #2018-134 - Approving Agreement with Five Points Bank for Banking Services Staff Contact: William Clingman, Interim Finance Director Grand Island Council Session - 5/8/2018 Page 1 / 15
Council Agenda Memo From: Marlan Ferguson, City Administrator Meeting: May 8, 2018 Subject: Presenter(s): Consideration of Approving Five Points Bank as the Primary Financial Institution for Banking Services William Clingman, Interim Finance Director Background On April 5, 2018 the City advertised an RFP for Banking Services. On April 24, 2018 this RFP closed and 7 banks submitted proposals. Staff from the Finance Department, the City Administrator and the Utilities Director heard presentations form the banks selected as finalists. Discussion The City of Grand Island has utilized our current bank for at least the last decade and because it has not been formally evaluated for such a long time, an RFP was issued for banking services. In their RFP Five Points Bank offered their services at no cost to the City of Grand Island and they will pay interest on any amount the City maintains on deposit with them, with regular evaluation of this interest rate beginning at the end of 2019. These two primary drivers led to the selection of Five Points Bank. The estimated impact of the change to Five Points Bank will be at least a net gain of $850,000 on an annual basis to the total City of Grand Island cash balance. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Move to approve 2. Refer the issue to a Committee 3. Postpone the issue to future date 4. Take no action on the issue Grand Island Council Session - 5/8/2018 Page 2 / 15
Recommendation City Administration recommends that the City Council approve the resolution to establish banking services with Five Points Bank. Sample Motion Move to approve the resolution to establish banking services with Five Points Bank. Grand Island Council Session - 5/8/2018 Page 3 / 15
Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Stacy Nonhof, Purchasing Agent Working Together for a Better Tomorrow, Today REQUEST FOR PROPOSAL FOR BANKING SERVICES RFP DUE DATE: DEPARTMENT: April 24, 2018 at 4:00 p.m. Finance PUBLICATION DATE: April 5, 2018 NO. POTENTIAL BIDDERS: 7 SUMMARY OF PROPOSALS RECEIVED Five Points Bank Grand Island, NE Great Western Bank North Platte, NE First National Bank Grand Island, NE Bank of the West Omaha, NE Union Bank & Trust Company Lincoln, NE Wells Fargo Greenwood Village, CO Equitable Bank Grand Island, NE cc: Marlan Ferguson, City Administrator Stacy Nonhof, Purchasing Agent William Clingman, Assist. Finance Director P2046 Grand Island Council Session - 5/8/2018 Page 4 / 15
Grand Island Council Session - 5/8/2018 Page 5 / 15
Grand Island Council Session - 5/8/2018 Page 6 / 15
Grand Island Council Session - 5/8/2018 Page 7 / 15
Grand Island Council Session - 5/8/2018 Page 8 / 15
Grand Island Council Session - 5/8/2018 Page 9 / 15
Grand Island Council Session - 5/8/2018 Page 10 / 15
Grand Island Council Session - 5/8/2018 Page 11 / 15
Grand Island Council Session - 5/8/2018 Page 12 / 15
Grand Island Council Session - 5/8/2018 Page 13 / 15
Grand Island Council Session - 5/8/2018 Page 14 / 15
R E S O L U T I O N 2018-134 WHEREAS, a Request for Proposals (RFP) for Banking Services was advertised in April of 2018; and WHEREAS, the RFP closed on April 24, 2018; and WHEREAS, proposals that were received were reviewed; and WHEREAS, Five Points Bank of Grand Island, Nebraska was selected to provide the primary banking services to the City of Grand Island at no cost to the City and they will pay interest on any amount the City maintains on deposit with them, with regular evaluation of this interest rate beginning at the end of 2019. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the agreement with Five Points Bank of Grand Island, Nebraska for banking and deposit services is approved. Adopted by the City Council of the City of Grand Island, Nebraska, May 8, 2018 - - - Jeremy L. Jensen, Mayor Attest: RaNae Edwards, City Clerk Approved as to Form May 4, 2018 City Attorney Grand Island Council Session - 5/8/2018 Page 15 / 15