HomeMy WebLinkAbout2002-04-23 - AGENDA REPORTS - BANKING SERVICES AGMT (2)CONSENTCALENDAR
CITY OF SANTA CLARITA
AGENDAREPORT
City Manager Approval:
Item to be Presented by:
DATE: April 23, 2002
SUBJECT: RENEWAL OF AGREEMENT FOR BANKING SERVICES
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council to authorize the City Manager to extend the existing Agreement for Banking
Services between the City of Santa Clarita and Valencia Bank & Trust for a period of three
(3) Years, with an option to renew for two (2) additional Years. Authorize the City Manager
to negotiate the terms of the Banking Services Agreement and to sign all documents,
subject to City Attorney approval.
BACKGROUND
In order to ensure that the City was receiving the highest quality of banking services, a
Request for Proposal (RFP) was issued for Banking Services in January 1997. Seventeen
(17) RFP's were sent to various banks. Of those responding, three were interviewed. The
banks were evaluated on the types and quality of services they would be able to Provide to
the City and the costs of those services.
Based on all criteria it was determined that Valencia Bank & Trust (then called Valencia
National Bank) was'able to Provide the highest quality banking services at a reasonable
Price. The City Council awarded the contract for Banking Services
Trust for five (5) years. to Valencia Bank &
Over the five years Valencia Bank & Trust has Provided the City with a high level of
service for our ba;;i�ng needs. A relationship has been established with the bank that has
been mutually beneficial to both the City and the bank. As new banking services become
available to the government agency population, Valencia Bank & Tru ri
these new services in a timely manner and at the lowest cost availab st st ves to offer
disruption caused by changing banks far outweighs the le. The cost and
going through a new RFP process. benefits that could be attained by
Agenda Item
U
BANKING SERVICE AGREEMENT
April 23, 2002 — Page 2
ALTERNATIVE ACTIONS
L The City Council may not extend the agreement and ask staff to Prepare an RFp for
Banking Services.
2. Other action as determined by the City Council.
FISCAI, IMPACT
The total monthly fees will be approximately $1,600, depending On the level of activity
This charge will be covered by maintaining an average compensating balance based on the
current earnings rate and, therefore, will have no budget impact.
ATTACHMENTS
Contract available for review in the City Clerk's office.
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