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HomeMy WebLinkAboutMINUTES - 07082014 - C.103RECOMMENDATION(S): APPROVE and AUTHORIZE the County Treasurer to enter into a five-year agreement with Wells Fargo Bank, N.A. (“Wells Fargo”) for general banking and lockbox services, with a total payment limit of $1,400,000 for the entire term of the agreement. FISCAL IMPACT: Service fees and costs will be paid from the interest earned on the monies deposited with Wells Cap Management and/or on the monies deposited in the Treasury Pool, specifically, General County Revenue Fund. BACKGROUND: The County Treasurer manages the funds of the County, as well as various districts and agencies throughout the County, including 21 special districts, 19 school districts and one community college district. In order to determine if the County’s incumbent bank is the best qualified and financially secure bank to administer the County’s extensive banking operations in the most efficient and cost-effective manner available, the County Treasurer conducted a APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 07/08/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Belinda Zhu, 925 957-2807 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: July 8, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: Chris Heck, Deputy cc: C.103 To:Board of Supervisors From:Russell Watts, Treasurer-Tax Collector Date:July 8, 2014 Contra Costa County Subject:APPROVE and AUTHORIZE the County Treasurer to enter into agreement with Wells Fargo Bank, N.A. BACKGROUND: (CONT'D) comprehensive Request for Proposal (“RFP”) search. Upon completion of a thorough review of all RFP responses, the County Treasurer selected Wells Fargo, the incumbent bank, as the best qualified candidate to provide general banking and lockbox services for the County. To formalize the banking relationship between Wells Fargo and the County, the County Treasurer, with assistance of the County Counsel, has negotiated an agreement with Wells Fargo. Pursuant to the agreement between Wells Fargo and the County, Wells Fargo will provide general banking services, including, but not limited to, deposit services, automated clearing house, positive pay, online banking, sweep account, and information reporting. Wells Fargo will also provide lockbox services, including, but not limited to, lockbox imaging, under the agreement. The service fees are significantly reduced based on the newly negotiated fee schedule, representing an average annual savings of approximately 50% of the most recent annual service fees. The cost of these services will be paid by the interest earned on the monies deposited with Wells Cap Management and/or on the monies deposited in the Treasury Pool, specifically, General County Revenue Fund. Under the agreement, each party is required to indemnify the other for its errors and omissions. CONSEQUENCE OF NEGATIVE ACTION: The County Treasurer will not retain the general banking services of Wells Fargo. CHILDREN'S IMPACT STATEMENT: Not applicable.