HomeMy WebLinkAbout2009-01-13 - AGENDA REPORTS - BANKING SERVICES CONTR (2)Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: Carmen Magana
DATE: January 13, 2009
SUBJECT: AWARD CONTRACT FOR BANKING SERVICES
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council award contract for Commercial Banking Services to Union Bank of California, in
an amount not to exceed $50,000 annually, for a term of four years.
Authorize the City Manager or designee to execute the above contract and associated documents,
and execute up to two (2) one-year options not to exceed the above annual limits, plus Consumer
Price Index (CPI) adjustments, contingent upon the appropriation of funds by the City Council
during subsequent fiscal years, subject to City Attorney approval.
BACKGROUND
The City is utilizing Union Bank of California as its primary bank, and they have b�en the City's
bank since Union Bank acquired Valencia National Bank in February 2003. In order to ensure
the City was receiving the highest quality banking services, a Request for Proposal (R -FP) for
Commercial Banking Services was issued on October 1, 2008.
The Request for Proposal was published three times on October 1, 5, and 8, 2008. 'Notifications
were sent to the Chamber of Commerce, Valley Industrial Association, and 22 banks on file.
Additionally, 21 firins downloaded the bid package from the Citys website. Seven proposals
were submiteed on October 31, 2008, and are reflected below:
Bank of the West Santa Clan*ta
California United Bank Santa Clan*ta
City National Bank Santa Clan*ta
SCV Bank Santa Clarita
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rPROVED
U.S. Bank Santa Clarita
Union Bank of California Santa Clarita
Wells Fargo Bank Santa Clarita
The seven proposals were subsequently objectively rated by a committee of five, which included
the City Treasurer from the City of Vernon. The banks were evaluated on the types and quality
of services they were able to provide to the City and the cost of those services. The criteria
included their ability to provide evolving technologies, products and services, their reliability and
quality of customer service, the quality of their references, their financial strength and
capitalization, their dedication to the government market, and their overall cost. Independently,
each rater scored the proposals, and the committee met as a group to discuss the findings.
Based on the results of the competitive process, staff has determined the proposal for
Commercial Banking Services from Union Bank of California best meets the requirements of the
City. The total average monthly fee that Union Bank of California will charge will be
approximately $2,300-$2,400 per month, depending on the City's level of activity. This is a
savings of approximately $300 per month compared to our current charges. These fees will be
covered by maintaining a compensating balance and, therefore, will have no budget impact.
ALTERNATIVE ACTIONS
Other action as directed by the City Council.
FISCAL IMPACT
There is no fiscal impact anticipated as a result of this award.