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Home My WebLink About55C - DESIGNATION-OFFICIAL CITY DEPOSITORY REQUEST FOR COUNCIL ACTION ~ ~ CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: JUNE 20, 2005 TITLE: APPROVED D As Recommended D As Amended D Ordinance on 1st Reading D Ordinance on 2nd Reading D Implementing Resolution D Set Public Hearing For l' DESIGNATION OF OFFICIAL CITY DEPOSITORY FOR THREE-YEAR PERIOD COMMENCING JULY 1, 2005 (SPEC. NO. 2005-0 ) ~ .' 1 ,/ . ;.. ~2- CITY MANAGER CONTINUED TO FILE NUMBER RECOMMENDED ACTION 1. Adopt a resolution designating Bank of America, as the official depository for the City of Santa Ana. 2. Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to execute an agreement with Bank of America to provide banking services for the City for a three-year term commencing July I, 2005, with a renewal option for two additional years in the estimated annual amount of $72,000. DISCUSSION The Treasury Division of the Finance and Management Services Agency is responsible for maintaining all banking transactions for the City, Redevelopment Agency and the Housing Authority. Banking services utilized include daily deposit processing, check clearing, wire services and account reconciliation. The current five-year contract for full banking services expires on June 30, 2005. In order to ensure the City is keeping with changes in banking technology, services and assure competitive pricing, the Treasury Division issued a Request for Proposals. Notice inviting bids were sent to qualifying banks with branches located within the City of Santa Ana. Five proposals were issued and four bids were received. All bids submitted were responsive to the specifications. Each respondent's proposal and price quotations were evaluated based on a typical month's volume of transactions. 55C-1 Designation of Official City Depository for Three-Year Period Commencing July 1, 2005 (Spec. No. 005-037) June 20, 2005 Page 2 Based on this measure, the estimated annual cost of the four respondents is as follows: BANK ESTIMATED ANNUAL COST~ Bank of America $ 35,196 U S Bank $ 43,630 Wells Fargo Bank $ 44,055 Citizens Business Bank $ 71,936 I Evaluation based on normal monthly services. In addition to providing essential banking services, Bank of America has agreed to assist the City with a purchasing card program and the option to transition check processing services. The recommended total annual amount reflects normal service costs plus an additional cost in the event the City utilizes other service options including the transitioning of check processing services. FISCAL IMPACT Monthly bank charges will be deducted from interest earned on account balances. ...... . \\- \...\y "\~~t-~J' L'J )~ ~ "~L II ~ Francisco Gutierrez Executive Director Finance & Management Services Agency 55C-2 MJV 06/14/2005 RESOLUTION NO. 2005-059 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DESIGNATING BANK OF AMERICA AS THE DEPOSITORY FOR CITY OF SANTA ANA FUNDS, EFFECTIVE JULY 1, 2005, AND DESIGNATING SIGNATORIES AUTHORIZED FOR THE PURPOSE OF WITHDRAWAL OF SAID FUNDS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City Council of the City of Santa Ana ("City") has declared a policy of designating a bank within the City to act as depository for the demand deposits of City funds. B. After receiving and reviewing a number of proposals for the services required, the City hereby designates Bank of America, 801 North Main Street, Santa Ana, California ("Bank"), as the banking institution that shall receive and act as depository for City funds and trust funds in control of said City beginning July 1, 2005, and continuing for a term of three (3) years, with the option to renew for an additional (2) two years unless sooner terminated. Section 2. The Executive Director of Finance and Management Services of the City is hereby authorized for and on behalf of the City, and as its officer and agent, to sign City of Santa Ana checks for the withdrawal of said funds so deposited, both by facsimile signature machine-imprinted, upon City checks and by manually affixed signature upon City checks. Section 3. The Treasury Manager of the City is hereby authorized for and on behalf of the City, and as an agent of the City and a deputy of the Executive Director of Finance and Management Services to sign City of Santa Ana checks for the withdrawal of said funds so deposited by manually affixed signature thereon. Section 4. Said Bank is hereby authorized and directed to payout from said City funds to the payees respectively designated on any City checks, signed in the manner and by either of the persons hereinabove authorized, in the amounts shown on the face of said checks. Resolution No. 2005-059 Page 1 of 3 55C-3 Section 5. The City Manager is hereby authorized to designate in writing an agent(s) who shall be authorized to sign City checks for the payment or withdrawal of said funds when, due to physical absence, incapacity or death of either or both of said authorized signatories, it may be necessary on a temporary basis to provide other means for the signing of City checks, and/or for the payment or withdrawal of said funds. Any such authorization shall set forth the necessity for such designation, the period of time during which said authorization shall continue (by giving the exact starting and termination dates) and shall contain the certification of the Clerk of the Council over the official seal of the City of Santa Ana certifying that said authorization is in fact, signed by the qualified and acting City Manager, shall be a specimen signature of the person designated as such temporary agent, and shall be delivered to said Bank. Section 6. The City Manager, or his designee, is hereby authorized to execute and submit all documents, including but not limited to applications, agreements and amendments which may be required to effectuate the banking services necessary for the administration of the City's demand deposit account. Section 7. A certified copy of this Resolution, together with the signatures of the two agents herein authorized to act in manual form and a copy of the facsimile signature machine-imprint of the Executive Director of Finance and Management Services certified by the Clerk of the Council to be the signatures of said persons, and an imprint of the official facsimile signature plate, shall be delivered to said Bank before the first day of July, 2005. Whenever either or both of said agents leave the employment of the City, is absent therefrom, or incapacitated for a period of time that will affect the issuance of City checks, the Clerk of the Council shall notify said Bank of said fact and shall certify the names, titles, and signatures of the person(s) then designated as agent(s) of the City for the purpose of signing City checks in the manner hereinabove provided and shall notify said Bank of every termination of such authorization immediately upon receipt of such information. Section 8. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of ,2005. Miguel A. Pulido Mayor Resolution No. 2005-059 Page 2 of 3 55C-4 APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Michael Vigliotta Deputy City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2005-059 to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana Resolution No. 2005-059 Page 3 of 3 55C-5 55C-6