Share to Facebook Share to Twitter Bookmark and Share
File #: 21-493    Version: 1 Name: Discussion on Commercial Banking Services
Type: Staff Report Status: Agenda Ready
In control: Finance Committee
Meeting Date: 9/7/2021 Final action:
Enactment date: Enactment #:
Title: Staff Report for Discussion on Commercial Banking Services
Sponsors: Susan Hsieh Finance Director
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo/Audio
No records to display.
Title
Staff Report for Discussion on Commercial Banking Services

Staffreport
SUMMARY AND RECOMMENDATION

Staff recommends that the Committee provide feedback regarding the RFP (request for proposal) process and the criteria for commercial banking services.

BACKGROUND

On December 14, 2018, the City issued an RFP for commercial banking services. The City received three proposals from Bank of the West/BNP Paribas (BNP), JP Morgan Chase (JPM) and Wells Fargo (WF). The proposals were based on criteria recommended by staff and approved by the Finance Committee. The Finance Committee met on April 2, 2019 and May 7, 2019 to discuss the RFP results. After Committee discussion and hearing from the public, it was determined that it would be in the best interest to change banking to Bank of the West. There were also discussions about reopening the RFP. At the time, the City decided not to proceed with Bank of the West because their online treasury management system was not able to provide the comprehensive services required by the City. Switching banking services would negatively impact the City's treasury operations. The Finance Department also had staff turnover around the same time.

The proposals submitted by the three financial institutions have expired. Staff recommends reopening the RFP for commercial banking services.

DISCUSSION

Overview
The City currently uses Wells Fargo for general banking services including depository and cash management services. Wells Fargo was selected in 2008 through a competitive RFP process. Core services include the following:

* Depository services
* Check payments
* Positive pay
* Electronic fund transfers (direct deposits, wire transfers, Automated Clearing House transactions, etc.)

These services are an integral part of the City's cash management function. The annual bank fees paid to Wells Fargo are approximately $21,000. For city credit card transactions, merchant services are provided by FirstData through p...

Click here for full text