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Consultant analysis of banking RFP rates U.S. Bank highest‑scoring respondent; staff to bring contract recommendation
Summary
An independent consultant hired to evaluate responses to the city's banking and investment RFP reported U.S. Bank scored highest overall and offered an earnings‑credit structure that offsets banking costs, staff said.
The city’s independent consultant RSM presented its review of four responses to the banking and investment request for proposals and reported that U.S. Bank received the highest weighted score under both the city's evaluation methodology and the consultant's adapted scoring.
Finance Director Abi Deshpande introduced Josh (Joshua) Parker from RSM, who summarized the evaluation. RSM examined respondents on four principal areas: ability to meet key scope requirements (banking and investment services), pricing models, municipal banking and investment experience, and additional enhanced solutions (services such as lockbox and payee choice that could automate city processes).
Parker said three of the four respondents offered both banking and investment services; one respondent offered only investment services. U.S. Bank had satisfactory responses to 70 of 72 RFP requirements with two gaps noted; Parker said one of the advantages of U.S. Bank’s proposal was its earnings‑credit rate (presented at 4.5% in the RFP materials), which RSM calculated would offset estimated banking fees and make additional services cost neutral in the example they modeled. Parker also reported U.S. Bank proposed competitive investment‑management fees for the city’s portfolio (staff presented that the city's portfolio exceeds $100 million) and offered a suite of additional services and an operational assessment option for Finance staff.
Deshpande and council members noted the importance of continuity and municipal expertise: Deshpande said the city’s relationship with U.S. Bank spans many years, the bank provides a dedicated public‑funds and municipal division, and the city’s portfolio size and activity (which staff described as more than $150 million in day‑to‑day banking flows and more than $400 million on the investment side) require experienced management.
Council members asked about local‑preference rules and whether local banks were considered; Deshpande said the city's local‑preference policy applies to banks that have a business presence in Linn County. Parker and Deshpande said staff will return with contract recommendation materials and that full RFP responses and scoring materials can be shared with council for further review.
Why it matters: The city will select a long‑term banking and investment services partner to hold deposits, provide payments and custodial services and manage the city investment portfolio; the contract will affect how banking fees and earnings credits offset costs and the operational options available to the finance department.
Next steps: Staff will work with RSM to finalize recommendations and present contract award options to council; councilors may request to review full RFP responses and scoring details.
Ending: RSM’s evaluation placed U.S. Bank at the top of the scoring matrix, but staff will return with a recommendation and full contract documents for council consideration before the current contract expiration date in July.
