Memorandum

City of Lawrence

TO:	Mayor and City Commissioners
FROM:	City Manager David L. Corliss
CC:	Ed Mullins, Heidi Nelson, Casey Toomay, Laura Warner
Date:	September 17, 2009
RE:	City Banking Services

Background 

The current banking agreement with Central National Bank expired on July 1, 2009.  On April 7, 2009, the Finance Department issued an RFP to provide banking services to the City of Lawrence beginning July 1, 2009.  The successful bank would provide banking services to the City of Lawrence for one year with up to two one year extensions.  The department received responses from six banks, including Central National Bank, US Bank, UMB Bank, Intrust Bank, Commerce Bank, and Sunflower Bank.

A total of four banks were requested to make a presentation to the review committee.  The review committee consisted of the Finance Director, Assistant Finance Director, Budget Manager, and Accountant.  Presentations were made by representatives from Commerce Bank, UMB Bank, Sunflower Bank, and US Bank.  

The banking proposals were evaluated based upon the following four factors:

· Financial Security,

· Customer Service,

· Services Provided, and

· Cost of Service. 

The factors were weighted because they were not considered to be of equal importance. 

Commerce Bank and US Bank received the same total score in the review of the various evaluation factors as determined by the review committee.  However, because the selection of US Bank could save the city an estimated $10,000-18,000 over the three-year period or from $275 to $500 per month, US Bank is recommended over Commerce Bank. 

Action Requested

The Committee requests the City Commission authorize the City Manager to enter into a contract for banking services with US Bank.