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Item No.
APPROVE BANKING SERVICES CONTRACT
Proposed Action
Staff recommends adoption of the following motion: Move to approve a Master Services
Agreement and Banking Services Agreement with U.S. Bank National Association.
Overview
Staff prepared and issued Requests for Proposals (RFP) for banking services for the City as well
as the entities for which the City is the fiscal agent (Dakota Communications Center (DCC),
Lakeville Arenas, ALF Ambulance). A minimum five-year agreement was contemplated with a
three-year renewal upon mutual agreement of the parties. Five proposals were received from
local banks. Staff reviewed the proposals for compliance with mandatory elements; ability,
capacity and skill of the institution and its employees to perform required and desired services;
cost of the services provided; etc. The top three banks were identified based upon these criteria
and were asked to participate in oral interviews and demonstrate their online systems with the
City Administrator, Finance Director, Assistant Finance Director and Finance staff. U.S. Bank
and Wells Fargo Bank provided clarification and responses to additional questions and costs.
The following table identifies the cost proposals from the final two banks for the five-year period:
Bank Cost
U.S. Bank (4M Option) $29,307
U.S. Bank (Direct) $122,058
Wells Fargo Bank $113,248
U.S. Bank provided two pricing options with their proposal: the 4M Option and Direct. U.S. Bank
has a partnership with the Minnesota Municipal Money Market Fund (4M Fund) which includes
a sweep account arrangement. This 4M sweep account arrangement is only available with U.S.
Bank and only Minnesota municipalities (and entities that are Joint Powers arrangements such as
DCC, Lakeville Arenas and ALF Ambulance) may participate in the 4M. The City currently utilizes
the 4M Fund for short-term investments.
Staff is recommending that a master services agreement and a banking services agreement be
executed with U.S. Bank to provide banking services for the City.
January 7, 2019
Primary Issues to Consider
• Budget Impact. Over the five-year term of the agreement, an estimated $57,000 savings is
anticipated as compared to what we are currently paying for banking fees.
Supporting Information
• Master Services Agreement
• Professional Services Agreement
Financial Impact: $ Budgeted: Y☒ N☐ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Jerilyn Erickson, Finance Director
29,307 All Funds
Budget