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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Tax Collector/Treasurer
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DATE:
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May 30, 2007
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BOARD MEETING DATE:
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June 19, 2007
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Lee Buffington, Tax Collector/Treasurer
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SUBJECT:
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Agreement with The Bank of New York Trust Company
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RECOMMENDATION:
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Adopt a resolution:
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A.
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Waiving the Request for Proposal (RFP) process.
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B.
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Authorizing the Tax Collector/Treasurer to execute an Agreement with The Bank of New York Trust Company to continue the custody, safekeeping and securities lending services for the San Mateo County Investment Pool for an amount not to exceed $200,000 for the term July 1, 2007 to June 30, 2010.
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C.
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Authorizing the Tax Collector/Treasurer or the Treasurer’s designee to execute contract amendments which modify the County’s maximum fiscal obligation by no more than $25,000 (in aggregate), and/or modify the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions.
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VISION ALIGNMENT:
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Commitment: Ensuring responsive, effective and collaborative government.
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Goal 20: Government decisions are based on careful consideration of future impact, rather than temporary relief of immediate gain.
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The Treasurer’s Office contributes to this goal by managing the financial assets of the County and maintaining the value of the investment pool through professional and efficient administration of the County departments, Special Districts, Schools and Cities.
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Performance Measure(s):
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Measure
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FY 2006-07
Estimate
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FY 2007-08 to FY 2009-10
Targets
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Number of Funds Managed
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1066
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1066
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Gross Dollar Investment Earnings
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$95,000,000
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$100,000,000
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Gross Pool Earnings Rate
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4.33%
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4.375%
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BACKGROUND:
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The Treasurer-Tax Collector has been in a contractual relationship with the Bank of New York since 1992 for the custody and safekeeping of the San Mateo County Investment Pool.
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DISCUSSION:
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The established relationship between the County and Bank of New York has been cost effective for the County, as the fees have not increased in the past eight years, and it has produced the highest securities lending income for the investment pool. For these reasons, an RFP waiver is being requested.
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The contractor has assured compliance with the County's Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits.
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County Counsel has reviewed and approved the Agreement.
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FISCAL IMPACT:
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The appropriation for this Agreement has been included in the Treasurer’s FY 2007-2008 Recommended Budget and will be included in future budget requests. Although the contractor’s fees have remained the same, the total contract cost is dependent upon the size of the pool and will not exceed $200,000 for the three-year term. The annual cost for custodial services in FY 2006-07 will be approximately $56,377. The Treasurer’s Office expects that this cost will increase by approximately $8,000 in FY 2007-2008 due to the increased size of the investment pool.
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