DATE: April 7, 2017
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator / CFO
Mike Lowe, Comptroller
Lawrence Sullivan, Assistant City Recorder for Revenue / City Court Clerk
Brian Wilcox, Purchasing Manager
SUBJECT:
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Consideration Of Procurement Award To Pinnacle Bank Of Nashville, Tennessee For General Banking, Lockbox Processing And Purchasing Card Services, For A Term Of Award Of One (1) Year, To Be Effective July 1, 2017, With Four (4) One-Year Options To Extend The Term Of Award Thereafter, For The Finance, Revenue Management And Purchasing Functions Of The City (Purchasing Office Procurement Solicitation No. 2017-011; Contract No. 2017-0088) (04/13/17 FINANCE 3-0)
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Purpose
The purpose of this procurement is to purchase general banking, lockbox processing and purchasing cards services, for a term of award of one (1) year, to be effective July 1, 2017, with four (4) one-year options to extend the term of award thereafter, for the Finance, Revenue Management and Purchasing functions of the City.
Background
The City published on February 2, 2017 a Notice to Bidders in the Williamson Herald for comprehensive banking services, including general banking, lockbox processing, and purchasing cards. In addition, solicitation documents were sent on or about the same date directly to 27 potential proposers known or thought to be interested in this solicitation. Proposals from eight (8) financial institutions were publicly opened at the submittal opening held on March 7, 2017. A tabulation of the proposals received for this solicitation is attached.
Financial Impact
The proposal ranked highest by the interview team, from Pinnacle Bank of Nashville, Tennessee, includes $250,000 in estimated interest earnings per year and $40,577 in estimated annual fees, resulting in a net amount for those two financial considerations of $209,423 per year. As the term of award is scheduled to begin July 1, 2017, it is not possible to compare these figures with approved budget figures for that fiscal year but they compare favorably with the most recently available corresponding figures under the City’s current arrangement with the same service provider. Similarly, the net amount resulting from the purchasing card rebate and fees proposed by Pinnacle Bank compares favorably with the corresponding net amount under the City’s current arrangement with the current service provider for purchasing card program, SunTrust Bank.
Options
In accordance with the solicitation documents, the City reserves the right to reject any and all proposals.
Recommendation
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Staff recommends that the City accept, contingent upon Law Department and City Administrator approval of City Contract No. 2017-0088, the proposal ranked highest by the interview panel, from Pinnacle Bank of Nashville, Tennessee, for general banking, lockbox processing and purchasing cards services, for a term of award of one (1) year, to be effective July 1, 2017, with four (4) one-year options to extend the term of award thereafter, for the Finance, Revenue Management and Purchasing functions of the City, and award this procurement to this proposer. Purchasing Manager Brian Wilcox is of the opinion that the prepared solicitation documents as distributed allowed for competition among multiple vendors, and that the staff recommendation appears to be made in a fair and impartial manner based upon the proposals received. Contract No. 2017-0088 is not yet in final form and therefore is not attached. When it is in final form, and if the staff recommendation to accept the proposal from and award the procurement to Pinnacle Bank is approved by the Board of Mayor and Aldermen, then, pursuant to authority previously granted by the Board of Mayor and Aldermen, Contract No. 2017-0088 will be executed by the City Administrator and reported to the Board of Mayor and Aldermen.