Administrative
Report
H.17., File # 23-6258 Meeting Date: 6/20/2023
To: MAYOR AND CITY COUNCIL
From: EUGENE SOLOMON, CITY TREASURER
TITLE
APPROVE AN AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF REDONDO BEACH AND U.S. BANK NATIONAL ASSOCIATION TO PROVIDE INSTITUTIONAL CUSTODY SERVICES FOR A COST OF APPROXIMATELY $12,000 ANNUALLY
EXECUTIVE SUMMARY
US Bank, N.A. provides institutional custody services for City of Redondo Beach. This includes the following services: safekeeping of assets, trade settlement, asset valuation, income collection, cash management, cash sweeps, online reporting, and trade order entry.
BACKGROUND
The institutional custody services provided to the City will allow the Treasurer’s department to fulfill the duties of managing the investment portfolio. US Bank has recently acquired Union Bank. With the change in the Treasurer’s office, this agreement will allow Eugene Solomon, the new City Treasurer to be an authorized signer while maintaining strict dual control guidelines set forth by City policies.
COORDINATION
The City Treasurer’s Department coordinated this staff report and recommendation with the Financial Services Department. The Agreement has been approved as to form by the City Attorney’s office.
FISCAL IMPACT
The fees associated with these services average out to approximately $12,000 annually and have been budgeted within the Treasury Department’s FY 2023-24 contracts for professional services.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· US Bank Custody Agreement and Fee Schedule
· Certificate of Authority
· Authorized Signers Form