Title
Staff Report on results of Banking Request for Proposals (RFP) - continued from April 2, 2019 Finance Committee
Body
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City select Wells Fargo Bank based on the results of a competitive proposal process for banking services based on criteria approved by the Finance Committee in 2018
BACKGROUND
On March 6, 2017, the City Council received a letter from a group of citizens requesting that the City divest from banks that fund the Dakota Access Pipeline (DAPL) such as Wells Fargo Bank (WF). 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 "Our 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 WF's bonds. Staff completed its sale of the $700,000 holdings in WF bonds during the last week of November 2017.
WF has been the City's primary bank offering commercial services since June 2008. WF was chosen in a competitive 6- month 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 WF's service applications. WF 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 nightly sweep of the...
Click here for full text