Title
Staff Report on Divestiture from Wells Fargo Bank due to its Funding of the Dakota Access Pipeline (DAPL) Project
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the Finance Committee discuss criteria identified on Page 14 of the attached Request for Proposals (RFP) and consider issuing an RFP for commercial banking services
BACKGROUND
On March 6, 2017, the City Council received a letter from a group of citizens requesting that the City replace Wells Fargo Bank (Bank). Please see attached letter. The Council referred the request to the City's Finance Committee for discussion on April 4, 2017.
The Finance Committee heard testimony from "Revolution San Leandro" members and directed staff to bring a banking RFP to Council for its consideration.
On November 20, 2017, the City Council directed staff to sell its $700,000 investment in the Bank's bonds. Staff completed its sell of the $700,000 holdings in Wells Fargo bonds during the last week of November 2017.
Wells Fargo has been the City's primary bank offering commercial services since June 2008. The Bank was chosen in a competitive 6-month Request for Proposals (RFP) process in 2007 that had eight respondents. Six of the eight respondents were selected by an Evaluation Committee (consisting of six finance staff members) to provide an in-depth presentation and demonstrate their ability to support daily City operations in an effective and efficient manner utilizing the bank's service applications. Wells Fargo was chosen primarily due to anticipated savings of 31% over the City's former banking provider (Bank of America) as well as technological offerings, enhanced customer service, and operational efficiencies. Services include providing the City's general checking accounts for payroll, accounts payable, and worker's compensation, collateralization of deposits (as required by Section VII (D) of the City' s Investment Policy and Section 2257.021 of California Government Code), and ni...
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