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THE CITY OF pLEASANTON. CITY COUNCIL AGENDA REPORT October 6, 2015 Finance TITLE: APPROVE AN AGREEMENT WITH JP MORGAN CHASE BANK FOR BANKING SERVICES SUMMARY The City currently uses Bank of America for most of its' banking services including deposits and disbursements. On September 1, 2015, Bank of America notified the City that it would terminate the City's banking service agreement in ninety days prompting staff to seek bids from four banks for the City's banking services. In addition, the City currently uses Union Bank for utility payment processing or lockbox services which staff decided to include in the banking services bid request so the City would receive comprehensive banking services from one bank. Staff received proposals from four banks that staff evaluated based on cost, ability to meet service needs, technological and automation requirements, and the bank's financial condition. Based on that review, staff is recommending that the City enter into an agreement with JP Morgan Chase Bank for comprehensive banking services. RECOMMENDATION 1. Approve the proposed five -year agreement with an optional five year extension with annual CPI adjustments with JP Morgan Chase Bank to provide the City comprehensive banking services 2. Authorize the City Manager to execute the subject agreement, subject to minor modifications approved by the City Manager and City Attorney. FINANCIAL STATEMENT The City's FY 2015/16 budget includes $145,000 for banking services including lockbox services. The proposed agreement's annual fee with JP Morgan Chase Bank would be approximately $121,000 depending on the average daily balance or approximately $24,000 less than the amount budgeted for Bank of America and Union Bank's services. The $24,000 estimated annual savings will accrue to the City's General Fund, and Water and Sewer Operating Funds. 12