Authorization of Banking Custodial Services Contract with Union Bank of California. City of Culver City California City Council Agenda Item Report Meeting Date: AGENDA ITEM: Authorization of Banking Custodial Services Contract with Union Bank of California Item Number: J 2 07/24/06 Contact Person/Dept.: Nagam Rao/City Treasurer's Office Phone Number: (310) 253 5889 X No Fiscal Impact: Yes Public Hearing: Public Notification: All firms submitting audit proposals; Master Notification List (07/19/06) General Fund: Yes X No Attachments: X Action Item: X Department Approval: Crystal Alexander City Treasurer City Controller Approval: City Manager Approval: Martin R. Cole for Jerry B. Fulwood (07/19/06) RECOMMENDATION: Staff recommends the City Council authorize a Banking Custodial Services Contract with Union Bank of California. BACKGROUND: Bank of America has provided the City and RDA s banking services for many years. Bank of America had also been the custodial bank for the City and the Agency. On November 30 1998 Bank of America discontinued their custodial services and named Bank of New York (BONY) as sub custodian. Over the last few years BONY has increased their fees substantially and implemented a few programs that have increased fees with Bank of America as well such as requiring that the City Treasurer s Office initiate outbound wires (at a cost of $25 per wire from B of A and a receiving fee of $20 from BONY) in order to settle any trades. Due to the increased costs and reduction of service levels a Request for Proposal was issued on May 11 2006 to seek a qualified financial institution to provide custodial services for cash and securities related to investment portfolios held in the name of the City of Culver City (CITY) and the Culver City Redevelopment Agency (CCRDA). The scope of the services to be provided was to: (1) maintain two separate custody accounts for the cash and securities owned by the CITY and the CCRDA (2) collect all coupons and other periodic...
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