(8)AR 030309 Contract Extension - Laserfiche WebLink

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CITY OF COLTON ITEM #8 AGENDA REPORT FOR CITY COUNCIL MEETING OF MARCH 3, 2009 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: AURELIO DE LA TORRE, CITY TREASURER DILU DE ALWIS, FINANCE DIRECTOR SUBJECT: EXTENTION OF BANKING SERVICES CONTRACT WITH BANK OF AMERICA FOR 36 MONTHS EFFECTIVE APRIL 1, 2009 DATE: FEBRUARY 20, 2009 BACKGROUND Subsequent to a request for proposal (RFP) process undertaken by the City Treasurer's office in 2000, the City Council approved the continuance of banking services with Bank of America (B of A). DISCUSSION/ ANALYSIS On March 21, 2000 the City Council approved the continuance of banking services with B of A as a result of a request for proposal process undertaken by then City Treasurer Mike Williams. As part of that contract approval there was provision for that contract to be extended through April 2008. In April 2008 staff requested and received Council approval to extend the contract with B of A through March 31 n 2009 giving staff time to evaluate the banking needs of the City and bring back a recommendation to the Council for consideration. B of A has provided excellent services to the City of Colton and continues to partner with us in introducing services that are cost effective and time -saving. B of A has proposed a pricing structure that will save the City approximately $7,400 per year over the current banking services price if the City Council approves the contract extension. As the national economic picture continues to show signs of weakening B of A through its conservative financing model has demonstrated to be a stable banking institution. Colton Municipal Code Section 3.08.140(E) provides that competitive bidding, either formal or informal, is not required "When the city manager determines that it is in the best interest of the City and its administrative operations to dispense with public bidding for non-public projects under this chapter." For this contract award, the City Manager has made such a determination. Staff feels it is in the best interest of the City to continue its banking relationship with B of A and is recommending approval of the contract extension effective April 1, 2009 through March 31, 2012. Staff will have language in the contract that the City will have the ability to cancel this contract for any reason with a 90 -day notification period. ALTERNATIVE Not extend the banking services agreement and direct staff to immediately go through the RFP process while continuing with B of A on a month-to-month basis. FINANCIAL IMPACT Continuing with B of A for banking services will not have any significant financial impact as the fees paid for a year will be reduced by approximately $7,400. The banking fees are paid through the City Treasurer's professional services account 100-6060-6060-2350. Budget Year -to -Date Expenditures Open Encumbrances Available Funds $25,000 $9,500 0 $15,500 ENVIRONMENTAL IMPACT N/A