Metro - File #: 2017-0068

• File #: 2017-0068
• Type: Contract
• Status: Passed
• File created: 2/1/2017
• In control: Finance, Budget and Audit Committee
• On agenda: 5/17/2017
• Final action: 5/25/2017
• Title: AUTHORIZE: A. the Chief Executive Officer to execute a five-year, fixed unit rate Contract No. PS27736000 to Bank of America for basic and specialized banking services, in an amount-not-to-exceed $2,328,909, effective July 1, 2017, subject to resolution of protest(s), if any; and B. the payment of up to $320,000 over the next five years for Federal Deposit Insurance Corporation (FDIC) assessment fees as mandated by 12 C.F.R. ? 327.9 to cover insurance premiums for Metro's deposits. This is an estimate based on historical experience. If FDIC increases the rate and the actual amount exceeds the estimate, staff will seek approval for a Contract modification. The combined total cost of the Contract is a not-to-exceed $2,648,909 over its entire life-cycle.
• Sponsors: Board of Directors - Regular Board Meeting
• Indexes: Budgeting, Contracts, Debt Service- Enterprise (Project), Governmental And Oversight Activities (Project), Insurance, Investment And Debt Management (Project), Payment, Procurement, Project, Proposition A, Proposition C, Transportation Development Act - Article 4, Transportation Development Act of 1971

Date	Action By	Action	Result
5/25/2017	Board of Directors - Regular Board Meeting
5/17/2017	Finance, Budget and Audit Committee

Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
MAY 17, 2017


Subject/Action
SUBJECT: BANKING SERVICES

ACTION: AWARD CONTRACT

Heading
RECOMMENDATION

Title
AUTHORIZE:

A. the Chief Executive Officer to execute a five-year, fixed unit rate Contract No. PS27736000 to Bank of America for basic and specialized banking services, in an amount-not-to-exceed $2,328,909, effective July 1, 2017, subject to resolution of protest(s), if any; and

B. the payment of up to $320,000 over the next five years for Federal Deposit Insurance Corporation (FDIC) assessment fees as mandated by 12 C.F.R. ? 327.9 to cover insurance premiums for Metro's deposits. This is an estimate based on historical experience. If FDIC increases the rate and the actual amount exceeds the estimate, staff will seek approval for a Contract modification.
The combined total cost of the Contract is a not-to-exceed $2,648,909 over its entire life-cycle.

Issue
ISSUE

Metro requires basic banking services such as demand deposit accounts, safekeeping services, daily balance reporting, check processing, and electronic fund transfers (EFT), and specialized services including vault currency counting and custody services.


Discussion
DISCUSSION

The current banking services contract expires on June 30, 2017. To ensure critical banking services are not interrupted, Metro must secure a successor service provider to meet its basic and specialized banking needs. The recommended firm, Bank of America, ranked highest in the areas most critical to Metro's needs including: instant access to images and data from lockbox deposits; a streamlined check printing system which allows direct download from Metro's Financial Information System; auto-stale dating of checks; a late cutoff time for same-day/next-day check printing that satisfies Metro's regulatory requirements for workers compensation payments; an extensive branch network in Los Angeles County; and an experienced customer service team with governme...