HomeMy WebLinkAboutMemoCITY OF MIAMI, FLORIDA
TO :
FROM :
Pedro G. Hernandez
City Manager
Diana M. Gomez, Directo
Finance Department
INTER -OFFICE MEMORANDUM
DATE :
SUBJECT:
October 7, 2007
FILE :
Waiver of Competitive Bidding for
Banking Services with Wachovia
Bank, N.A.
REFERENCES:
ENCLOSURES:
This memorandum serves to request your authorization to seek Commission approval to waive
competitive bidding procedures, pursuant to Section 18-85 of the City of Miami Code, and
further extend the existing professional services agreement with Wachovia Bank N.A. for
Banking Services -City-wide, as required by the City Charter and Florida Statutes, effective
December 1, 2007, on a month -to -month basis, under the same terms, conditions, and prices of
the current agreement until issuance of a new Request for Proposals, award of the Request for
Proposals to the successful proposer, execution of an agreement, and system interfaces are
completed .
Resolution No. 01-1140, approved by the City Commission on October 25, 2001, authorized the
City Manager to negotiate and execute a professional service agreement with First Union Bank
of Florida to provide banking services, as required by the City Charter and Florida Statutes. On
September 23, 2004, the City Commission adopted Resolution No. R-04-0626, authorizing the
assignment of the professional services agreement from First Union Bank of Florida to
Wachovia Corporation. This agreement is now scheduled to expire on November 30, 2007.
The implementation of the Oracle system on October 1, 2006 involved detailed configuration
and testing of the interfaces, file formats and data extractions on the part of Wachovia Bank and
the City to ensure compatibility and coordination between the Oracle system and Wachovia
Banking system for the various services they provide to the City, such as processing
approximately 200,000 bills and dunning letters through the retail and wholesale lockbox
services on an annual basis. Additionally, the electronic format of the bank statement for the
monthly reconciliation process is very cumbersome and has taken months to stabilize. Other
electronic functions currently being provided by Wachovia are:
• Daily deposit processing
Automated overnight sweep service with collateral coverage guaranteed
• Full and partial account reconciliation
• Returned check images
• Retail and wholesale lockboxes
• Wire Transfers (in/out)
On-line banking to access daily balances, initiate stop payment
• Positive Pay
Direct deposit of payroll and vendor remittances
• Credit card processing
Pedro G. Hernandez
Page 2
Waiver of Competitive Bidding for
Banking Services with Wachovia
Bank, N.A.
• EDI translation service and notification for incoming EDI deposit
• Safekeeping of the City's investment portfolio.
The Finance Department respectfully requests for the extension of said agreement with
Wachovia Bank N.A. to have the proper amount of time necessary to issue and award a new
RFP and execute a professional services agreement with the successful proposer , while
allowing sufficient time to develop and test the interfaces with the selected financial institution
without having a lapse in banking services. The Finance Department intends to issue an RFP for
banking services during the extension time and work with the selected provider to develop the
system requirements and have the new contract in place within the requested extension period.
Based on the amount of time needed to configure the electronic banking services and interfaces
with the Oracle system, the Finance Department is concerned that the provider selected through
the RFP process will need the additional time to configure and test the services with the City's
systems prior to bringing them on-line.
Due to many unforeseen technical difficulties with the current system as well as preparing for the
first fiscal year end on the new Oracle system, the Finance Department was not able to request
the new RFP until this time.
Based on the foregoing, we respectfully request your approval to seek Commission authorization
to waive competitive bidding procedures and amend the existing Banking/Professional Services
Agreement with Wachovia Bank, N.A. , effective December 1, 2007, on a month to month basis,
under the same terms, conditions, and prices of the current agreement until issuance of a new
Request for Proposals, award of the Request of Proposals to the successful proposer, execution
of an agreement, and system interfaces are completed.
Please indicate your preference b
Approved / Disapproved:
Pedro G. Helmand z, City Manager
Approved / Disapproved:
Purchasing Director
Date:
Date: