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BACKGROUND The City of Pleasanton currently has a contract for banking services with Bank of America and Union Bank. On September 1, 2015, the City received a ninety day termination notice from Bank of America. With the limited timeline of implementing new banking services, staff contacted four major banks that have a physical presence in the City of Pleasanton and adequate financial strength to submit a proposal on banking services including utility lockbox service. The City received four proposals that were extensively reviewed by staff with the focus on financial institutions' operational and functional resources, capabilities, and price. DISCUSSION The City received four proposals from JP Morgan Chase Bank, Bank of the West, U.S. Bank, and Union Bank. The following is the composite scores for each of the proposals received: Institution Score JP Morgan Chase Bank of the West U.S. Bank Union Bank 98 95 94 55 Staffs evaluation of the proposals concluded that JP Morgan Chase Bank provided the most advantageous overall proposal. The selection criteria included (1) lowest aggregate cost (including implementation costs), (2) ability to meet service and automation requirements, and (3) financial condition of the bank. Staff determined the total estimated annual cost of each bank's proposal using the City's historic banking service activity levels multiplied by the price per unit proposed by each bank and reduced by the proposed interest earnings on average daily bank account balances Based on that review, the proposal from JP Morgan Chase Bank received the highest score. U.S. Bank and Bank of the West submitted favorable pricing but provided less banking service options. U.S. Bank received a lower score in meeting the City's merchant services requirements and Bank of the West's proposal received a lower score because it would require the City to contract with a third party to consolidate online payment processing. JP Morgan Chase Bank's technological capabilities that included a robust online reporting tool and integrated electronic consumer payments into a single transaction resulted in a higher score than Bank of the West and U.S. Bank. The ability to process utility payments is an integral part of the City's banking services since it enables the City to provide good customer service and increase internal efficiencies. In addition to their technological resources, JP Morgan Chase Bank also excelled in two other important categories, namely, protection of public funds and customer service. Page 2 of 3