Decision details

To authorise the Director of Business Transformation to re-tender and award this contract by 31st March 2016.

Matter for Decision: The existing banking contract expires on 31 March 2016. Approval was being sought to re-tender and at the end of the tender process, to award a Banking Contract to a chosen banking provider.

 

Decision of the Executive Councillor for Finance and Resources

 

The Executive Councillor resolved to:

 

Recommend to Council the following three items:-

 

       i.          To authorise the delegation to the Director of Business Transformation to undertake the re-tendering and award of the Council’s Banking Contract for a period of 5 years (with the Council’s option to extend up to a further 5 years), subject to the preferred tender price being within 10% over the estimated contract value;

 

     ii.          To commence the tender process by not using a Framework option i.e. using a ‘full’ tender process; and;

 

   iii.          To use an ‘open’ tender route and to evaluate bidders using the same creditworthiness criteria as used to select the City Council Counterparty List.

 

Reasons for the Decision: As set out in the officer’s report

 

Any alternative options considered and rejected: As set out in the officer’s report

 

Scrutiny Considerations:

 

The committee received a report from the Head of Finance.

 

In response to member’s questions the Head of Finance and the Accountant (VAT & Treasury) said the following:

 

       i.          The estimated total contract value was £360,000 for a term of 10 years (not 8 years as incorrectly noted in the officer’s report). Recent activity data had been used to estimate this value.

     ii.          Acknowledged members concerns but confirmed that the tender selection criteria would ensure that the City Council was protected from undue risk.

   iii.          The Contract could be let to a bank already used by the Council for its other deposits. The separate deposit values would however be combined to ensure they remain within existing limits. This would ensure the Council managed its overall risk. 

   iv.          The tender criteria would be wide to ensure as much choice for the Council as possible.

    v.          Whilst some Councils had looked into setting up their own banks, it would not be suitable for this type of contract.  

 

The Head of Finance further acknowledged the committees concerns regarding risk. It was agreed that the creditworthiness criteria used to evaluate bidders for this contract would mirror that used for the City Council’s Counterparty List.

 

Recommendation iii) of the officer’s report was therefore amended to read (addition underlined):

 

iii. To use an ‘open’ tender route and to evaluate bidders using the same creditworthiness criteria as used to select the City Council Counterparty List.

 

The Scrutiny Committee considered the amended recommendations and endorsed them unanimously.

 

The Executive Councillor approved the amended recommendations.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted):

 

Not applicable.