O-1998-2226 - Laserfiche WebLink

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e e ((~ .~~ ;Q>'\Y7 ~3.'~LJ U CITY OF LA PORTE INTER-OFFICE MEMORANDUM TO: Bob Mclaughlin, City Councilman Alton Porter, City Councilman Howard Ebow, City Councilman Robert T. Herrera, City Manager FROM: ~ff lit~field, Director of FinancelACM DATE: - UMarch 12,1998 . RE: Request for Proposal for Banking Services The City of La Porte received Proposals for Banking Services on February 17, 1998. Requests were sent to the three local banks with all three responding. The selection and award process for a banking services agreement falls under the rules of a "Proposal" instead of a "Bid". With a Bid, the process is clear cut - you request a specific piece of equipment and submit specifications. A Bid is a very objective method because all vendors give prices on very similar equipment. In a Proposal, like a Bid, you receive a price for certain measurable units, but the "specifications" are subjective. With a professional service agreement, there are other factors besides price that you have to consider. In analyzing the proposals submitted by the three banks, there are three distinct areas that need to be reviewed which are: (1) Costs of the Proposal; (2) Financial Condition of the Bank; an~ (3) Services Provided by the Bank. Costs of the Proposal The costs of each proposal is the most objective of the three areas and will be reviewed first. The analysis of the costs proposed by each bank applied to the aggregate annual transactions of the City's three accounts, was prepared under separate cover and is attached for your reference. However, for the purposes of this discussion the ranking was: (1) (2) (3) Institution Bayshore National Bank Baytown State Bank NationsBank Annual Cost $ 9,790.20 12,782.58 12,947.70