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With respect to the protection of public funds, JP Morgan Chase Bank is a strong financial institution with over $1.2 billion in total deposits and $2.1 billion in total assets. The financial strength is an important measure in determining JP Morgan Chase Bank's ability to service the City, consistent with its stated fiscal policy, and the objective of maintaining safety, liquidity and return on investments, respectively. JP Morgan Chase Bank also has committed to providing a high level of customer service, as evidenced by their servicing team, branch operations, and recent banking service implementations with Bay Area Rapid Transit and San Diego Unified School District. JP Morgan Chase Bank's proposed monthly fee for core banking and utility lockbox service, based on the City's current volume of services, is approximately $10,100. This is an estimated monthly savings of about $2,000 from the City's current banking service costs. JP Morgan Chase Bank's pricing proposal includes: 1. an increase in the proposal Earning Credit Rate (ECR), representing an estimated monthly savings of $600; 2. a reduction in the utility lockbox service fee by utilizing Receivables Edge and ACH eLockbox representing an estimated monthly savings of $1,100; 3. a $12,500 transition allowance to ease the cost of transition from Bank of American and Union Bank; and 4. a reduction in the credit card bank discount rate on merchant services representing an estimated monthly savings of $300. The proposed agreement is for five -years with an option to extend it another five- years. The City has historically issued RFPs for banking services every ten years. Submitt ed py: Approved Tina Olson Director of Finance Attachments: 1. Appendix A - Agreement Page 3 of 3 Nelson Fialho City Manager