3 Bank Servicing Contract
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952,227.1180
Fax: 952,227,1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227,1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952,227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
s
-
MEMORANDUM
TO:
Mayor & City Council
FROM:
&.';,
Greg Sticha, Finance Director "- ><f 1
O'Tj'
DA TE:
April 20, 2006
SUBJ:
Bank Service's Contract
BACKGROUND
Our current banking services contract with M & I Bank expired at the end of
2005. In February, staff contacted all the banks in the community and requested
them to submit proposals for banking services. The deadline for the proposals
was March 31, 2006. A selection committee was formed that included the finance
department staff and Justin Mi~ler. After receiving andreviewing the submitted
proposals, the following information was summarized.
Six of the eight banks which were contacted submitted proposals by the deadline
as requested. The banks that submitted proposals were M&I, US Bank,
KleinBank, Americana Community Bank, TCF Bank, and Community Bank
Chanhassen. Attached is a spreadsheet that summarizes the proposals received.
The criteria for evaluating the initial proposals was first to have an account that
included no or limited fees for any type of transaction. Second, a low minimum
balance was preferred if possible. Third, a competitive interest rate was desired
on any balance that was maintained in the account. Other factors considered in
the initial process included cut-off times for deposits and wires.
After reviewing the proposals, the selection committee narrowed down the list to
three preferred vendors. Based on the criteria mentioned above, the committee
selected KleinBank, M&I Bank, and Americana Community Bank. Once the
committee selected the three preferred banks, we visited the two banks that the
city does not have accounts with and checked references for each. During the
visit to the banks, the committee met the staff and evaluated the bank's ability to
provide excellent customer service, and also received a tour of the facility. In
addition, each of the banks gave an online tour of the internet or online banking
services that each offers.
The City of Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play.
Banking Services Contract
April 20, 2006
Page 2012
RECOMMENDA TION
After reviewing the written proposals and further research by the selection
committee, it is staff's recommendation that the City Council accept a contract
with Americana Community Bank for a three year banking services contract. The
basis of this selection is as follows:
The selection committee evaluated each of the proposals carefully. Based on a
conservative estimate of current interest rates and the proposals submitted, the city
would incur an interest cost impact of $7,500-$8,500 annually if we kept our
account at M&I Bank as opposed to Americana or Klein.
Since the financial impact is very similar between KleinBank or Americana
Community Bank, each of these banks were judged on additional criteria, mostly
based on our visits to each bank on April 7th. After meeting each of the banks'
representatives, receiving tours of their facilities, and an online tour of the internet
services provided, the committee felt that if a change is made, the transition to
Americana Community Bank would be easier and that they also meet our
customer service needs. In addition, the cut-off time at Americana for same day
credit on deposits is 5:00 p.m. versus 3:00 p.m. at Klein Bank, which allows for
more flexibility when preparing the daily deposits. It should be noted that the
issue of cut-off time was not given a lot of weight in our final decision, but as a
small part of the process, it does offer some flexibility to our staff.
Taking that information into account, the committee decided that if a change was
to be made, they felt more comfortable with Americana Community Bank over
KleinBank. The committee then evaluated the cost of staying with M&I Bank and
the cost of transitioning to Americana. The cost to switch accounts and banks
certainly would be important, which would include a number of staff hours and a
few new supplies including check stock. However, in the opinion of the
committee, the cost to switch accounts would be a one time cost amounting to no
more than a couple thousand dollars, and the costs to be saved over the three years
of the contract with Americana would be around $25,000.
Therefore, it is staff's recommendation that the City change banks and sign a
banking services contract with Americana Community Bank for three years. This
action requires a simple majority vote of those present at the meeting.
A TT ACHMENT
1. RFP Summary Grade Spreadsheet.
r::
ell....
III ell
III ell
cu.c
.cen
r:: ell
CU'O
.c cu
Os..
....C)
00..
>-LL
:!::~
o
ell ell
r:: C.)
r:: .~ ~ UJ UJ
0 ell
en
ell
.... C.)
III .~ ~
;::, UJ UJ
0 ell
en
.... It: 0
'iij 0 0 0 0 ~ 0 0
0 I'-
I ~ 0 ~ - ~ 0
Q. .... cO 0 t!j
;::, (") (") (0
ell 0 0
C cO
.. .!;
.. .. ~ .. ..
.. .. ..
.. .. ..
ro ro ~ 0 ro
CO CO 1.0 ro 0 CO
I'- .0 1.0
ell 0) 0) N 0) 0)
L- ^ L-
.... :;::; L- .r: L- :;::;
CU c: :;::; - :;::; ro c:
~ c: '~ c:
0) 0) 0) .0 0)
.... c: c: III cfl. c:
r:: a a 0) c: a
0) a CIO
cfl. ~ u. ~ ~ '#.
1.0 0 0 0
1.0 Q5 1.0 (")
N "-: ~ ~
..... ~
'<i (") '<t '<t
0
0>
~
ell 0 .r:
C.) 0 0 -
r:: 0 0 (0 c:
cu 0 o. 0) 0) 0 a
iU 0 c: c: ~
0 0 a a 1.0
a:I 0 0 Z Z 1.0 0
r:: 1.0 o. 0 0
:E ..... 0 O.
1.0 0
0
o.
.....
~
.r: .c 0
- - 0
c: c: 1.0
III 0) 0) a a ^ 0)
ell c: c: E E ro c:
ell a a - - CO a
u. Z Z (0 ..... Z
(") 0) 0)
(0 '<t c:
fI7 fI7 a
Z
c:
0) ~
en c:
en
co co
.c CO
~ c: ~
r:: co
cu .r: c:
a:I () ;::,
~ E
c: E
co a
CO ()
~ ~ co
c: ~ c: c:
co c: ;::, co
CO co E U
.;::
c: u. CO E 0)
'Q) oI:l () (f) a E
52 ~ I- :J () <(
cfl.
1.0
"-:
'<t
II
-0
c:
;::,
U.
-0
0)
U.
ro
en
a
a.
a
L-
a.
.....
o
0)
E
:;::;
-
co
en
-
c:
'0
a.
en
'w
co
.0
.....
a
-
c:
;::,
a
E
co
0)
::c
co
';::
co
>
co
en
en
~
0)
-
co
0::
-0
c:
;::,
U.
-0
0)
U.
c:
a
-0
0)
en
co
.0
~
co
en
ro
en
a
a.
a
L-
a.
0)
en
0)
.r:
-
c:
a
0)
-
co
L-
-
en
0)
L-
0)
-
c:
..
..
..
en
-
c:
'0
a.
en
'w
co
.0
o
.....
en
:J
0..
as
~
>-
co
-0
o
0)
c:
a
-0
0)
en
co
.0
,!!1
.9-
.r:
en
c:
a
:;::;
co
Qi
L-
-
c:
~
L-
:J
U
L-
a
-
-0
c:
co
-
c:
:J
a
U
U
co
,!!1
.r:
-
c:
a
0)
-
co
0::
-
'w
'S;:
0)
-
'w
c:
a
-0
0)
en
co
.0
0)
-0
co
L-
0>
en
0)
U
'~
0)
en
0)
.!;
c:
a en
-0 c:en
c: a 5
co +:i:+::;
0) 22
-0 Uu
~ 0) 0)
0>_ ~ ~
0) c: 0) 0)
,!:2 ~ 2 ~
~ 0) 0) a
O)uO)-
en><~O)
L-UJ CO
0) II II II
EUJ~co
.8
en
:J
()
-
en
0)
L-
0)
-
c:
..
..