TO: Mayor and Commissioners
FROM: Theresa Cantore, Treasurer
Jeff Snyder, Assistant CFO
Jack Warner, CFO
THROUGH: Donald B. Cooper, City Manager
DATE: June 21, 2016
Title
CONTRACT WITH PNC BANK FOR BANKING SERVICES UTILIZING A SOUTH BROWARD HOSPITAL DISTRICT CONTRACT IN A NOT-TO-EXCEED AMOUNT OF $130,000.
Body
Recommended Action:
Recommendation
Motion to approve an Agreement with PNC Bank for comprehensive banking services using the South Broward Hospital District contract.
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Background:
In our continuing review of operations, Finance determined that the City will obtain operating efficiencies and service improvements by updating our existing banking relationship. After a comprehensive review of multiple other entities contracts, Finance recommends implementing this update by utilizing a cooperative purchasing contract for a large governmental district. The South Broward Hospital District contract will provide the City with a combination of reduced fees and an increase in interest rates with a combined savings/profits gain of approximately $35,000 per year. The City will also be able to generate additional revenue through the rebate program for use of procurement credit cards (PCards); with the opportunity to expand the City PCard program for even better accountability and returns.
The alternative to this cooperative procurement approach would have been a full banking services RFP. Given the intense additional efforts that will be required of the Finance Department during the transition to the new ERP (enterprise resource planning) system financial software, the time and effort necessary to conduct such an RFP is not justified by any associated benefit. The City's banking requirements are not unique; the use of the recommended cooperative purchasing agreement will provide the necessary savings and revenue growth opportunities without negatively affecting the ERP migration schedule.
This award is in accordance w...
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