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Treasury Consulting Services Agreement With PFM Group Consulting, LLC, for Treasury Consulting Services
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BRIEF OVERVIEW
Hernando County has maintained a long-standing treasury services relationship with Truist Bank which currently provides banking services to the County.
The proposed agreement for Treasury Consulting Services with PFM Group Consulting, LLC would allow the County to ensure its current banking services both meet its needs and are competitive in terms of fee and income structure.
The current intention is to:
• Negotiate with current banking partner Truist Bank and ensure the County’s fees are competitive based on our database of bank pricing.
• Bring earnings credit rates and/or interest rates the County is receiving in line with market rates.
• Correct any variance found between contractual pricing and the County’s actual pricing.
If a competitive fee and income structure cannot be met with the County’s current banking partner, then a Request for Proposals (RFP) for banking services is deemed the appropriate course of action.
This proposed agreement incorporates the county’s intensions via Task No. 1 and Task No. 2:
Service Description Engagement Fee
Task 1: Negotiation with Truist Bank. $10,000.00
Task 2: Prepare RFP for banking services. $34,000.00
Optional: On-site meetings. $3,000/per meeting
Please note that Task No. 2 would only be utilized if negotiations with current banking partner Truist are unsuccessful. Staff would present Task No. 2 to the Board for approval if a competitive fee and income structure cannot be met with the County’s current banking partner.
Treasury and Financial Advisory Services fall under Sec. 2-101 of the Procurement Ordinance as an exemption to the competitive procurement process.
FINANCIAL IMPACT
Funds are available in Account No. 01051-5303101 Professional Services in the amount of $10,000.00.
LEGAL NOTE
In accordance with Part II, Chapter 2, Article V of the Hernando County Code of Ordinances.
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RECOMMENDATION
It is recommended that the Board approve and authorize the Chairman’s signature on the attached Treasury Consulting Services Agreement with PFM Group Consulting, LLC to provide treasury consulting services in the amount of $10,000.00.
It is further recommended the Board approve the Chief Procurement Officer to approve change orders as they become necessary and required up to the budgeted amounts.