DEPARTMENT/FUNCTION: Finance and General Government …



TO COMMITTEE: Finance & Corporate Services Section

COMMITTEE CHAIR: Dan La Rose

SUBJECT: Request for Proposal for Bank Services

RECOMMENDATION

That TD Canada Trust be awarded the contract for banking services for the Town for the years 2008 to 2012, subject to satisfactory detailed staff review with representatives of the Bank.

INTRODUCTION

Council has requested that bank services be reviewed and that proposals be requested of financial institutions in Penetanguishene and Midland.

ANALYSIS

The following financial institutions in Penetanguishene and Midland were contacted to submit proposals for bank services:

• Penetanguishene

• Bank of Nova Scotia

• Meridian Credit Union

• TD Canada Trust

• Midland

• Bank of Montreal

• Canadian Imperial Bank of Commerce

• National Bank of Canada

• Royal Bank of Canada

All institutions except the National Bank called to request the RFP Document.

Proposals were received from:

• Penetanguishene

• Bank of Nova Scotia

• TD Canada Trust

• Midland

• Bank of Montreal

• Canadian Imperial Bank of Commerce

• Royal Bank of Canada

All responding banks

• Proposed the services required by the Town of Penetanguishene

• Were extremely close in annualized cost and revenue

In evaluating the proposals, staff took into account the additional time to take deposits to Midland for the 3 respondents based there. Interest earned on bank balances was based on current average balances average balances expected when major capital works have depleted the HEC and Development Charges Reserve Funds.

The proposals are summarized in the following table:

|Banking | Estimated Annual Cost |

|Service | TD | RBC | BMO | CIBC | BNS |

|- Bank Statements | NIL | NIL | 374 | NIL | NIL |

|- Cheques | NIL | 3,231 | 1,379 | NIL | NIL |

|- Deposits (day deposits only) | NIL | 3,785 | 144 | NIL | NIL |

|On-Line Information | NIL | 780 | incl | | 1,200 |

| | | | |1,200 | |

|Stop Payments | NIL | TBD | TBD | NIL | NIL |

|Night Deposits | NIL | NIL | 273 | NIL | NIL |

|Payroll – Direct Deposits | | 300 | 301 | | 600 |

| |336 | | |575 | |

|Property Tax Bills | NIL | NIL | 640 |  | 830 |

|Water/Sewer Bills | 1,242| 720 | 960 | | 1,260 |

| | | | |1,345 | |

| | NIL | NIL | NIL | NIL | 30|

|Telephone/Internet/Web Banking Credits | | 135 | NIL | NIL | NIL |

| |652 | | | | |

|Visa/Debit Card Credits | 3,131| 1,783 | 3,131 | | 4,564 |

| | | | |4,564 | |

|Electronic Funds Transfer | | NIL | NIL | NIL | |

| |306 | | | |9 |

|Corporate Visa PCards | 1,000| - | 380 | | 900 |

| | | | |400 | |

| | | | | | |

|Grand Total Fees | $ 6,666 | $ 10,734 | $ 7,581 | $ 8,084 | $ 9,393 |

| | | | | | |

|Interest Terms | P - 1.73% | P - 1.75% | P - 1.80% | ................
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