HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/04/2005 - FIRST READING OF ORDINANCE NO. 117, 2005, AUTHORIZ ITEM NUMBER: 18
AGENDA ITEM SUMMARY DATE: October4, soon
FORT COLLINS CITY COUNCIL STAFF: Chuck Seest
Jim O'Neill
SUBJECT
First Reading of Ordinance No. 117, 2005, Authorizing the Extension of the Banking and
Depository Services Agreement with First National Bank for the Year 2006.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
Funds are included in the 2006 budget to cover this contract.
EXECUTIVE SUMMARY
The First National Bank of Fort Collins was selected by a competitive process to provide
depository and banking services in 2000. The City has contracted with the First National Bank
of Fort Collins for the last five years.
Recent changes in the Finance Department have made it extremely difficult to complete another
competitive process for depository and banking services prior to the expiration of the current
contract on December 31, 2005. Staff is requesting that Council approve an extension of the
current agreement for an additional year to allow sufficient time and resources to complete a
competitive process in 2006.
First National Bank of Fort Collins has agreed to provide services for 2006 at the same unit costs
for services as originally bid in 2001 with the exception of lock box service cost. The lock box
cost will increase from $0.14 to $0.145 per item, an approximate increase of $3,000 annually.
Under the current contract the City pays First National Bank approximately $250,000 annually
depending on the number of transactions processed.
ORDINANCE NO. 117, 2005
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE EXTENSION OF THE BANKING AND DEPOSITORY SERVICES
AGREEMENT WITH FIRST NATIONAL BANK FOR THE YEAR 2006
WHEREAS, the First National Bank of Fort Collins was selected by a competitive
process in 2000 to provide depository and banking services; and
WHEREAS, the City has contracted with the First National Bank of Fort Collins for the
last five years; and
WHEREAS, recent changes in the Finance Department have made it extremely difficult
to complete another competitive process for depository and banking services prior to the
expiration of the current contract on December 31, 2005; and
WHEREAS, the City desires to extend the term of the agreement for an additional year to
allow sufficient time and resources to complete a competitive process in 2006; and
WHEREAS, First National Bank of Fort Collins has agreed to provide services for 2006
at the same cost for service as 2005 with the exception of processing lockbox services which will
increase from $0.14 to $0.145 per item, an annual increase of approximately $3,000; and
WHEREAS, the cost of this contract for 2006 will be approximately $250,000,
depending on the number of transactions processed; and
WHEREAS, pursuant to Section 8-161(d)(1)(b) of the City Code, the Purchasing Agent
has determined that, because of the time and resources required to complete a competitive
process before the end of 2005, a competitive process cannot reasonably be used and, if used,
would result in substantially higher cost to the city and may result in the impairment of the city's
delivery of services to the public, and the Purchasing Agent has submitted the requisite
justification for this determination to the City Manager for approval; and
WHEREAS, the City Manager has reviewed and approved the justification for this
contract extension; and
WHEREAS, Section 8-161(d)(3) requires approval of this purchasing method by the City
Council for purchases over $100,000; and
WHEREAS, Section 8-186(a) requires all contracts in excess of five years be approved
by ordinance;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that the Purchasing Agent is hereby authorized to enter into an extension of the
banking services contract with the First National Bank of Fort Collins for the year 2006, as an
exception to the competitive purchasing process.
Introduced, considered favorably on first reading, and ordered published this 4th day of
October, A.D., 2005, and to be presented for final passage on the 18th day of October, A.D.
2005.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 18th day of October, A.D. 2005.
Mayor
ATTEST:
City Clerk