Broward County Commission Regular Meeting
Director's Name: George Tablack
Department: Finance and Administrative Services Division: Administration
Information
Requested Action
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A. MOTION TO APPROVE Third Amendment to Agreement between Broward County, Wells Fargo Bank, N.A. and Wells Fargo Merchant Services, L.L.C., for Master Banking Services, Agreement No. GEN2118504P1, for a two-year extension, in the annual estimated amount of $345,000, for a total estimated two-year amount of $690,000; and authorize the Mayor and Clerk to execute same.
ACTION: (T-10:23 AM) Approved. (See Regular Meeting Additional Material, dated January 28, 2025, submitted at the request of Finance and Administrative Services Department.)
VOTE: 8-0. Commissioner Davis was inaudible during the vote.
B. MOTION TO APPROVE Second Amendment to WellsOne Commercial Card Agreement between Broward County and Wells Fargo Bank, N.A., for Purchasing Card Services, for a two-year-five-month extension, in the annual estimated revenue amount of $345,000, for a total estimated revenue amount of $835,000; and authorize the Mayor and Clerk to execute same.
ACTION: (T-10:23 AM) Approved. (See Regular Meeting Additional Material, dated January 28, 2025, submitted at the request of Finance and Administrative Services Department.)
VOTE: 8-0. Commissioner Davis was inaudible during the vote.
C. MOTION TO APPROVE Second Amendment to Wells Fargo Supplier Analysis and Onboarding Commercial Card Conversion Service Agreement between Broward County and Wells Fargo Bank, N.A., for Purchasing Card Services, for a two-year-five-month extension; and authorize the Mayor and Clerk to execute same.
ACTION: (T-10:23 AM) Approved. (See Regular Meeting Additional Material, dated January 28, 2025, submitted at the request of Finance and Administrative Services Department.)
VOTE: 8-0. Commissioner Davis was inaudible during the vote.
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Why Action is Necessary
Motions A, B, and C. In accordance with Broward County Procurement Code Section 21.53(a), Duration of Contracts, unless otherwise provided by law or excepted by this section, a County contract shall not exceed five years in duration, inclusive of any renewals or extensions provided for in the contract, without the express approval of the Board.
What Action Accomplishes
Motion A. Provides for a continuation of current master banking services to allow for a seamless transition of services for the newly elected Broward County Tax Collector.
Motions B and C. Provides a continuation of Purchasing Card (P-Card) services in tandem with master banking services agreement.
Goal Related Icon(s)
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Previous Action Taken
None.
Summary Explanation/Background
THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT AND THE PURCHASING DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
MOTION A:
On June 16, 2020 (Item No. 76), the Board approved the Master Banking Services Agreement between Broward County and Wells Fargo Bank, N.A. (Bank) (Request for Proposals (RFP) No. GEN2118504P1). This Agreement provides for a wide range of master banking services for the County, including controlled disbursements, account reconcilement, depository services, electronic balance reporting, lockbox services, Fedwire/Automated Clearing House (ACH) originations, ACH Block/Filter, Electronic Data Interchange, Payee Match Positive Pay and Investment Safekeeping. The Contract Administrator for this Agreement is the County’s Chief Financial Officer.
On November 6, 2018, Florida voters statewide approved Florida Amendment 10, the Florida State and Local Government Structure Amendment (“Amendment 10”), which amended Article VIII, Section 1(d) of the Florida Constitution. The Amendment 10 requires an elected tax collector for each Florida county, beginning no later than January 7, 2025. On August 20, 2024, Broward County voters elected the Honorable Abbey Ajayi as the Broward County Tax Collector, whose term began on January 7, 2025.
A large portion the Agreement’s master banking services are utilized for tax collection and the deposit of funds. To allow for a smooth transition and uninterrupted banking services for the newly elected tax collector during this critical transition stage, staff is recommending deferral of the procurement process. This will also provide the opportunity to fully assess the County’s banking needs, post transition, and allow the new Broward County Tax Collector to identify services it will need to contract for separately. The Tax Collector will be operating under the County’s contracts until it contracts services separately.
The initial term of the Agreement was for three years, with two optional one-year periods, for a total five-year potential term. The current Agreement ends June 30, 2025. The two-year extension would begin on July 1, 2025, and the Agreement would terminate June 30, 2027, with the approved extension (Exhibit 1).
MOTIONS B and C:
On January 27, 2015 (Item No. 28), the Board approved a First Amendment to Agreement No. R1170501P1, Master Banking Services, with Wells Fargo Bank, N.A., which resulted in the execution of 1) the WellsOne Commercial Card Agreement, and 2) the Wells Fargo Supplier Analysis & Onboarding Commercial Card Conversion Services Agreement.
There is no cost to the County for this program as the County receives rebate credits as established in the agreement, based on yearly spend by the County. The County anticipates a future higher spend, as it is currently beginning the E-Payables Program, which allows faster payment to vendors thru this program.
The new Tax Collector is a separate entity from the Broward County Finance and Administrative Services Department. As part of the Tax Collector transition, the Purchasing Division has assisted the new Tax Collector Office in setting up a p-card program.
The current agreement ends January 26, 2025. With the approved extension, the two-year-five-month extension would begin on January 27, 2025 and the Agreement would terminate June 30, 2027 (Exhibits 2 and 3). This extension will also allow all Master Banking Agreements to be coterminous.
MOTIONS A, B, and C:
Board approval of this item extends the County’s Master Banking Services and Purchasing Card Services, providing transition time for functions moving to the Tax Collector, analysis of remaining County services required, and building a robust and detailed RFP.
The two-year extension will also give the Tax Collector time to establish infrastructure and decide its own level of Master Banking Services and Purchasing Card Services.
Exhibits will be provided as Additional Material ahead of the Board meeting.
Source of Additional Information
Stephen Farmer, Deputy Chief Financial Officer, 954-357-7130
Fiscal Impact
Fiscal Impact/Cost Summary
Motion A. The estimated annual fiscal impact can range from zero to $345,000 depending on soft dollar credits, applied to fees, received based on bank account balances.
Motions B and C. There is no fiscal impact or cost to the County.