SUBJECT/RECOMMENDATION:
Title
Approve a banking services agreement with Wells Fargo Bank, N.A., in an annual not-to-exceed amount of $84,200, for a total of $421,000 for the five-year period 10/01/2023 thru 9/30/2028, with the option for three (3) additional two-year extensions, pursuant to Clearwater Code of Ordinances Section 2.563(1)(c), Piggyback, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Council previously approved a banking services agreement with Wells Fargo in July 2016, effective for a three-year period, with the option for two, two-year renewals. The services agreement included both standard banking services as well as safekeeping/custodial services for the City’s non-pension operating cash investments. City staff has been very pleased with the level of services provided by Wells Fargo, executing both optional renewals that now expire September 30, 2023.
Prior to Wells Fargo, the City utilized Bank of America for banking services for approximately 40 years (1976 - 2016). The level of service from Bank of America had deteriorated at that time and Wells Fargo was chosen via a competitive RFP process.
City staff across all departments have provided very positive feedback regarding Wells Fargo services and locations, and the quality of services has exceeded expectations. Given their positive performance, and the significant disruption caused City-wide when changing banks, staff recommends piggybacking a recent competitive RFP process conducted by the City of Hollywood, Florida, which resulted in the selection of Wells Fargo.
The new schedule of fees under the proposed agreement results in an average 5.7% increase in fees versus our current agreement.
This new piggyback agreement will be for a five-year term ending September 30, 2028, with the option for three, two-year renewals contingent upon the City of Hollywood opting to renew their agreement.
APPROPRIATION CODE AND AMOUNT: 8019821-530100