MEMORANDUM

Kenai Peninsula Borough

FINANCE DEPARTMENT

TO: Tim Navarre, President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

THRU: Jeffrey Sinz, Finance Director

FROM: Tom Burgess, Purchasing and Materials Manager

DATE: December 27, 2001

SUBJECT: Resolution 2002-005, awarding a Contract for Custody and Safekeeping Services of Borough Security Investments

A request for proposals was advertised in the Anchorage Daily News on November 16, 2001. It was also sent directly to twelve different financial institutions known to provide the requested services. As of the December 14^th deadline, five proposals were received. A selection committee consisting of three Finance Department employees evaluated the proposals based on criteria contained in the RFP. Final scores for the proposals were as follows.

� Union Bank of California 284

� Wells Fargo Institutional Trust 240

� Alaska USA Trust Company 233

� U.S. Bank 207

� First National Bank of Alaska 184

Based on the results of the evaluation, it is recommended that the assembly approve the attached resolution accepting the proposal received from Union Bank of California and authorizing the mayor to negotiate and award a contract for a three-year period from February 1, 2002 to January 31, 2005 with an option to renew for up to two additional one-year periods by mutual consent.

The proposal received from Union Bank of California (UBOC) was the highest rated proposal in both cost and non-cost categories. Most of the separation from its closest competitors resulted from their scores in the cost category. The estimated annual cost for services proposed by UBOC is $4,140. UBOC is among the 35 largest banks in the United States. It is headquartered in San Francisco, California, but is operated through approximately 250 domestic branches located in California, Washington, Oregon, New York and Texas, as well as 18 international branches located principally along the Pacific Rim. Custody and safekeeping services are provided from their San Francisco headquarters. UBOC is one of the largest providers of custody and corporate trust services on the West Coast with over $130 billion in assets held in trust. They are currently providing custody and safekeeping services to over 200 West Coast based government organizations including the Municipality of Anchorage.