Title
Recommendation to Authorize the City Manager to Execute an Agreement with JP Morgan Chase Bank, N.A. to Provide Primary Depository Banking Services for the City of Alameda Commencing July 17, 2024 at an Estimated Annual Cost of $15,217, for a Five-Year Period with a Not-To-Exceed Total Amount of $85,000, with One Five-Year Option to Renew. (Finance 10024005)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Depository banking services are integral to supporting the City of Alameda's (City) daily cash management operations and thereby serving Alameda's residents and businesses. Wells Fargo Bank, N.A. (Wells Fargo) has been the City's depository banking services provider since the early 1970s. It is prudent financial practice to periodically obtain proposals for banking services to ensure that the City is receiving the best banking services at a competitive price.
On February 13, 2023, staff issued a request for proposals (RFP) for depository banking services. A panel of finance professionals, including City staff and PFM Group Consulting LLC (PFM), were selected to review the proposals and interview the finalists based on criteria detailed in the RFP. PFM is the City's investment advisor and also provides cities with banking expertise to provide an impartial qualitative and quantitative analysis and assist with negotiations.
Based on the proposal, interview, and client references, staff proposes that the City enter into an agreement for banking services with JP Morgan Chase Bank, N.A (J.P. Morgan) to provide the City's primary depository banking services at an estimated annual cost of $15,217. Staff proposes that the agreement be for a period of five (5) years, commencing July 17, 2024, with the ability to renew for one five-year term upon mutual agreement. This type of long-term award for banking services is best practices and reflective of other cities due to the intense process an...
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