SR-200-005 (2)
F:\FINANCE\ADMIN\Staff Reports\Bank Staff Report 7-27-04.doc
Council Date: 7-27-04 Santa Monica, California
To: Mayor and City Council
From: City Staff
Subject: Authorization for the City Manager to Negotiate and Execute a Contract
for Banking Services
INTRODUCTION
This report recommends the City Council authorize the City Manager to negotiate and
execute a contract for banking services with Bank of America for an initial four-year
term and two options for additional two-year terms each.
BACKGROUND
Bank of America has provided banking services to the City since 1999. The current
contract with the City will expire on September 30, 2004.
To ensure the best available combination of service and pricing, the City issued a
Deleted:
Four of nine banking
institutions with operations readily
Request for Proposal for Banking Services (RFP). The following four of nine banking
available to the City submitted a
proposal.¶
institutions with operations readily available to the City submitted proposals:
Bank of America
Wells Fargo Bank
U.S. Bank
Citibank
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DISCUSSION
City staff evaluated the proposals against the criteria established in the RFP. The
criteria for selection included the bank's ability to meet legal requirements, the financial
strength and capacity of the bank, the ability to provide required services, and the total
cost to the City. Completeness of the proposal was also considered. Based on these
criteria, City staff unanimously selected Bank of America.
BUDGET/FINANCIAL IMPACT
To maximize the return on City Funds, the City will negotiate a contract with Bank of
America whereby cost of services will be on a direct fee basis instead of a combined
compensating balance/direct fee arrangement as used in prior years. The cost for
banking services under the proposed banking arrangement is approximately $102,000
annually. Funds for the first year (FY 04-05) of the term have been budgeted at
$102,500. Remaining years of the contract will be budgeted each year through the
annual budget process.
RECOMMENDATION
It is recommended that the City Manager be authorized to negotiate and execute a
contract for banking services with Bank of America for an initial four-year term
beginning October 1, 2004, with two options for additional two-year terms each.
Prepared by: Steve Stark, Director of Finance
Eva U’Ren, Acting Revenue Manager
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