Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Sandie Arnott, Treasurer - Tax Collector
Subject: Amendment to Agreement with U.S. Bank, N.A. for depository and full-service bank services
RECOMMENDATION:
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Adopt a resolution authorizing an amendment to the Agreement with U.S. Bank, N.A. to provide depository and full-service bank services, extending the term by two years through June 30, 2027, with no change to the not to exceed amount of $2,000,000.
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BACKGROUND:
In March 2022, the Treasurer - Tax Collector issued a Request for Proposal (RFP) for depository and full-service bank services to ensure competitive pricing and efficient service. Union Bank/MUFG was selected as the successful proposer after careful evaluation.
On July 1, 2022, the San Mateo County Treasurer’s Office entered into an agreement with Union Bank/MUFG to provide depository and full-service bank services (Resolution # 078963).
U.S. Bancorp (U.S. Bank) completed an acquisition of Union Bank/MUFG on December 1, 2022, and completed a conversion into U.S. Bank on May 29, 2023. Since the acquisition, U.S. Bank has delivered services leveraging its industry-leading depository expertise, while maintaining the economic terms of the original agreement with County.
U.S. Bank has provided excellent services including, but not limited to, account analysis, account reconciliation, business checking, check processing, information reporting, wire transfers, web-based banking solutions, and lockbox services. In addition, U.S. Bank provides a $200 million daylight overdraft line, offering a necessary cushion for the Treasurer to settle County’s daily liability activities. U.S. Bank’s specialized Government Services Group provides customer service, with a dedicated staff that understands the unique needs of government agencies.
DISCUSSION:
The Treasurer - Tax Collector acts as the County’s banker and is charged with managing and protecting the County’s financial assets. The Treasurer - Tax Collector’s objective is to obtain quality banking services that are efficient and technologically advanced with an institution that provides strength and stability at the most advantageous cost to the County and its residents. Presently, the Treasurer - Tax Collector manages 68 bank accounts with varying levels of complexity and requirements to support County initiatives and programs.
The Treasurer’s Office desires to amend the current agreement with U.S. Bank for two additional years to further benefit from the pricing and services offered through original agreement, which U.S. Bank is committed to fulfilling.
The County Attorney has reviewed and approved the resolution and agreement as to form.
The Board is being asked to authorize the Treasurer - Tax Collector or designee to execute subsequent amendments which do not exceed an aggregate of $25,000.
PERFORMANCE MEASURE:
COMMUNITY IMPACT:
Extending banking services can have significant positive equity impacts for the residents of San Mateo County by increasing government efficiency and transparency. This includes improving financial oversight, reducing errors, and enhancing trust in public finance management.
FISCAL IMPACT:
The term of this agreement is from July 1, 2025, through June 30, 2027, for an amount not to exceed $2,000,000. Approximately 33 percent ($660,000) of the contract amount will be recouped from County departments and voluntary participants utilizing the banking services. The contract amount will be included in future Treasurer - Tax Collector budgets.