REPORT TO THE CITY COUNCIL
FROM: SANTINO DANISI, MBA, Controller/Finance Director
Finance Department
SUBJECT
Title
Approve the Fourth Amendment to the Bank of America contract for banking services for an additional term to expire on December 28, 2025.
Body
RECOMMENDATION
Staff recommends approval of the fourth amendment to the Bank of America contract for banking services for a term set to expire on December 28, 2025, for services that are necessary for City business operations.
EXECUTIVE SUMMARY
The City of Fresno has previously contracted with Bank of America for banking services. The previous agreement was the result of an award by Council on June 14, 2018, for a five-year contract with two one-year extensions. On March 27, 2025, Council approved an award for a banking services agreement with Wells Fargo. The final amendment with Bank of America will allow for the completion of the transition of banking services to Wells Fargo and any residual activity that may occur.
BACKGROUND
On March 27, 2025, the Council awarded a five-year contract with two one-year extensions to Wells Fargo Bank for banking services. This award came as the result of a Request for Proposal (RFP) that was issued on August 27, 2024.
As a large government entity, the City of Fresno (City) has extensive and complex banking service requirements that are essential for ensuring the efficient operation of the City’s financial systems and safeguarding its financial assets. The City relies on its banking partner to manage a variety of critical financial activities, including the processing of coin and currency, checks, wire transfers, and Automated Clearing House (ACH) transactions. These services are vital for maintaining smooth and secure financial operations, enabling the City to meet its obligations to vendors, employees, and the public while adhering to best practices and regulatory standards.
The City maintains approximately fifty bank accounts, each essential for a specific purpose, through which hundreds of millions of dollars flow every year. Due to the volume of transactions, the monthly bank reconciliation and account monitoring activities are a full-time function that cannot be performed without the assistance of specialized banking software. In addition to normal daily banking services, the City relies on the bank for expertise and assistance in reducing exposure to fraud, as well as suggesting services to enhance the City’s day-to-day operations, ensuring a high level of customer service for the City and its constituents, and streamlining processes.
Following the award of banking services to Wells Fargo Bank, staff immediately began negotiating with representatives from Bank of America on a final amendment to the agreement for their services, to support the transition process. Staff continue to make considerable progress on the various implementation phases outlined for the transition to Wells Fargo. While the most substantial amount of banking activity will be transitioned to Wells Fargo well before the end of the year, the amendment with Bank of America will ensure consistent pricing, account services and that access will remain for any residual activity that might occur.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, these recommendations do not qualify as a “project” as defined by CEQA.
LOCAL PREFERENCE
Local preference was not considered at the time of the original agreement because all the proposers for the request for proposals had at least one branch within the City of Fresno.
Attachments:
Fourth Amendment to the Agreement
Original Agreement