Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Juan Raigoza, Controller
Subject: Amendment to Agreement with Bank of America
RECOMMENDATION:
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Adopt a resolution authorizing an amendment to the agreement with Bank of America for the provision of Electronic Payments (ePayables) and Procurement Card Services to extend the term of the agreement through May 20, 2022, and provide the County with an option to further extend the agreement through May 20, 2025.
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BACKGROUND:
On May 21, 2013, the Board approved an Agreement (#14320-13-R072516) with Bank of America for the provision of Electronic Payments (ePayables) services for a term of May 21, 2013 through May 20, 2016. This revenue agreement included a Rebate Program pursuant to which Bank of America would rebate the County based on the transaction volume on a quarterly basis. The County has been receiving rebates on a consistent basis since the first quarter after the commencement of this Agreement.
On August 5, 2014, the Board approved an amendment to the agreement authorizing the addition of Procurement Card Services (the "First Amendment").
On May 4, 2016, the Controller exercised the option to extend the term of the Agreement for an additional three years through May 20, 2019, which was memorialized in an amendment to the Agreement dated May 21, 2016 (the "second amendment").
DISCUSSION:
The agreement with Bank of America, as amended by the first and second amendments, is expiring on May 20, 2019.
Since the commencement of the agreement with Bank of America, the County has been receiving rebates on a quarterly basis. Over the life of the Agreement from May 2013 to the present, the County's average annual rebate has been approximately $140,000. Extending the current agreement for an additional three years will result in continued revenue to the County.
Additional vendors have declined to enroll in the ePayables Progra...
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