HomeMy WebLinkAboutFCS-15-061 - P15-005 Banking ServicesStaff Report
rTC.�r R finance and Corporate Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: 2015 -04 -27
SUBMITTED BY: Michelle Palmer - Novakovic, Director of Supply Services
519- 741 -2200 ext. 7214
PREPARED BY: Laurie Stecho, Supervisor of Purchasing
519- 741 -2200 ext. 7089
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2015 -04 -14
REPORT NO.: FCS -15 -061
SUBJECT: P15 -005 Banking Services
RECOMMENDATION:
That Proposal P15 -005 Banking Services, be awarded as follows:
CIBC Commercial Banking, Hamilton, Ontario, for banking services, based on
their service fees at an approximate cost of $1,700 per year;
Global Payments Canada GP, Toronto, Ontario, for merchant services, at an
approximate cost of $260,000 per year; and,
U.S. Bank National Association, Toronto, Ontario, for purchasing card services, at
an approximate rebate of $18,000 per year,
each for a five -year period, with options to negotiate one additional three -year term and
one additional two -year term for each of the three components of the proposal award.
BACKGROUND:
This proposal is required as the current banking agreement expires August 31, 2015. The
banking agreement includes requirements for all general banking services including chequing
services for Canadian and US dollar accounts, electronic payments for vendors and payroll
services, telephone and online banking for tax and utility customers, file transfer services for
authorized payments for City customers, bank deposits, coin service, line of credit and deposit
interest.
The proposal included a pricing request for merchant services, which relates to debit and credit
card payments to the City for program registrations and services. Proposals were also to include
service offering and rebate incentive for purchasing cards, which certain employees use
periodically to acquire goods and services.
* ** This information is available in accessible formats upon request. * **
Please call 519- 741 -2345 or TTY 1- 866 - 969 -9994 for assistance.
This Proposal is based on fixed banking fees, merchant services fees and purchasing card
usage rebates. The actual spend and /or rebate per year will depend on the level of activity.
REPORT:
This Proposal was advertised publicly on the City of Kitchener website and the Internet through
the Ontario Public Buyers Electronic Tendering Information System. Proposal documents were
downloaded by ten (10) interested parties and by the closing date of Friday February 27, 2015,
three (3) proposals had been received.
The following proposals were received:
CIBC Commercial Banking
RBC Royal Bank
TD Commercial Banking
Hamilton ON
Burlington ON
Kitchener ON
The proposals were reviewed by a committee consisting of B. Johnson, Director of Accounting,
R. LeBrun, Manager of Accounting and S. Saleh, Supervisor of Collections and Payment
Process, who concur with the above recommendation.
The Proposals were rated on the following:
• Relevant Experience of Proponent and Client Service Team
• Banking Service Requirements
• Customer Service Requirements
• Technical Requirements
• Value Added Services
• Financial Component
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Theme: Financial Management
Strategic Direction: Ensure responsible use of public funds within a supportive policy
framework.
The City of Kitchener's purchasing policies and practices ensure openness, fairness and
transparency in the procurement of goods and services.
FINANCIAL IMPLICATIONS:
Funding will be provided from various operating accounts. The estimated annual banking fees,
merchant services fees and purchasing card rebates of $243,700 included within this
recommendation represent a reduction of approximately $60,000 (20 %) compared to current
costs. These savings will begin to be realized across a range of tax - supported and enterprise
accounts based on actual usage of services once the new contract is in place later in 2015.
I.M. - 2
COMMUNITY ENGAGEMENT:
INFORM - Potential vendors are informed of bid opportunities through the public posting of bid
documents as outlined in the City's Purchasing By -Law. Vendors, local media and the general
public are informed of purchasing recommendations to Council through the public reports which
are included with the Council agenda the week prior to the Council meeting.
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services