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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Treasurer-Tax Collector-Revenue Services
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DATE:
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August 24, 2010
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BOARD MEETING DATE:
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September 14, 2010
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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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Sandra Arnott, Deputy Treasurer-Tax Collector
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SUBJECT:
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Amendment to Agreement with the Bank of New York Mellon Trust Company
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RECOMMENDATION:
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Adopt a Resolution:
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A. Waiving the Request for Proposals process and authorizing the Treasurer/Tax Collector to execute an amendment to the agreement with the Bank of New York Mellon Trust Company to continue providing custody and safekeeping services for the San Mateo County Investment Pool extending the term through June 30, 2011, increasing the amount by $70,000 to $250,000,
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B. Authorizing the Treasurer/Tax Collector or her designee to execute subsequent amendments and minor modifications, in the amount not to exceed $25,000.00.
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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 custody and safekeeping services in connection with the San Mateo County Investment Pool. The most recent agreement with the Bank of New York has been in effect for three years, and a one-year amendment to the agreement is now required.
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DISCUSSION:
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The established relationship between the County and the Bank of New York has been cost effective for the County, as the fees have not increased in the past eighteen years, and the new fee schedule that will be part of the Amendment to the Agreement will result in lower security transaction fees. Further, the Bank of New York is responsible for maintaining the safety of custody assets and provides the most efficient and cost effective custodial services in the market place for investment pools similar to San Mateo County. For these reasons, an RFP waiver is being requested. After this one year agreement, the Treasurer’s office will conduct an RFP process as specified in Administrative Memorandum B-1. The Bank of New York 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 the Resolution and the Amendment to the Agreement as to form.
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Approval of this Agreement contributes to the Shared Vision 2025 outcome of a Collaborative Community 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 2009-10
Actual
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FY 2010-11
Target
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Dollar/
Percent Growth in County Pool due to Investments
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26.4 M
1.15%
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28.7M
1.25%
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County Pool 3
Yield rate
Vs.
Local Agency Investment Fund
(LAIF)
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1.025%
1.025%
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1.125%
1.125%
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FISCAL IMPACT:
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The appropriation for the Amended Agreement has been included in the Treasurer’s FY 2010-2011 Recommended Budget. The cost for custodial services will be approximately $70,000.00. The total combined cost of the original agreement ($179,173.87) and the amendment to the agreement will not exceed $250,000.00.
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