DATE: August 5, 2025
TO: Board of Supervisors
SUBMITTED BY: Oscar J. Garcia, CPA, Auditor-Controller/Treasurer-Tax Collector
SUBJECT: Agreement with AFTS California, Inc. to Provide Warrant Lockbox Services
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute an Agreement with AFTS California, Inc. dba Check Processors, Inc., to provide warrant lockbox services, effective October 1, 2025, through September 30, 2030, which includes a three-year base contract and two optional one-year extensions, total compensation based on warrant volume.
REPORT
Approval of the recommended action would authorize AFTS California, Inc. dba Check Processors, Inc. (CPI) to provide warrant lockbox services to the County including collecting warrants from the California State Controller's office (SCO), performing basic balancing of the warrants, and sending the warrant documents electronically, for a three-year period and provide the option for two one-year extensions upon the written consent of both parties. This item is countywide.
ALTERNATIVE ACTION(S):
No viable alternative available. Failure to approve the agreement would result in the County no longer having a vendor who will collect the warrants from the SCO and take the balancing report and warrants to the California State Treasurer's office for fast availability of funds.
FISCAL IMPACT:
There is no increase in Net County Cost (NCC) associated with the recommended action. Sufficient appropriations for this agreement are included in the FY 2025-26 General Fund Org 0410 Auditor-Controller/Treasurer-Tax Collector Recommended Budget and will be included in future budget requests.
The total cost paid under the recommended agreement will depend upon the number of warrants and advice captured in a given month. Based on current monthly average volume, the total estimated annual cost is $3,516.00, however the total cost will be absorbed by the County's Earnings Credit Rate (ECR) of 3.25% earned through o...
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