Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JULY 18, 2024
Subject
SUBJECT: CUSTODIAL BANKING SERVICES
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute Modification No. 3 to Contract No. PS133590000 with U.S. Bank N.A. in the amount of $500,000 to continue to provide custodial banking services, increasing the contract value from $1,100,370 to $1,600,370 and extending the period of performance from December 31, 2024 to March 31, 2025.
Issue
ISSUE
The Contract Modification will ensure uninterrupted custodial banking services for Metro through March 31, 2025. The action will allow staff sufficient time to procure these services through a competitive procurement process, expanding participation opportunities for small businesses and local community banks. This also allows for a three-month transition period.
The existing contract with US Bank N.A. will expire on December 31, 2024.
Background
BACKGROUND
Metro's Investment Policy requires that securities purchased for the investment of operating funds be maintained in the trust department or the safekeeping department of an established bank. Staff uses the services of a custodial bank, in compliance with the Board approved Investment Policy. Custodial banking charges are a combination of asset-based fees and transaction fees. Asset-based fees apply a fixed percentage based on the market value of investments. Transaction fees are fixed amounts charged per transaction on trading activity.
The current contract, inclusive of a three-year base term and two, one-year renewal options, was awarded in July 2019 to U.S. Bank Institutional Trust & Custody in the amount of $1,000,370. It was subsequently modified to increase the contract value by $100,000 and extend the term by three months through December 31, 2024.
Discussion
DISCUSSION
Metro's operating funds, the pool of revenue used to pay expenses such as project costs, payrol...
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