REPORT TO THE CITY COUNCIL
March 22, 2018
FROM: MICHAEL LIMA, Finance Director
Finance Department
SUBJECT
Title
Approve a 90 day extension to the Government Banking Services Agreement with Bank of America, N.A.
Body
RECOMMENDATION
Staff recommends that City Council authorize the Controller or designee(s) to execute a 90-day Government Banking Services Agreement with Bank of America, N.A.
EXECUTIVE SUMMARY
The City of Fresno (City) currently has an agreement with Bank of America for banking services, which is scheduled to expire on March 31, 2018. On March 8, 2018, staff brought to Council a recommendation to award a five-year (with two 1-year extensions) to Bank of America. The recommendation was the result of a Request for Proposal (RFP) process that began in August 2017. Council rejected staff's recommendation and authorized staff to enter into a nine-month agreement with Bank of America as a bridge agreement while another banking services RFP process is conducted. Bank of America has indicated they would be willing to sign only a 90-day agreement. Without some agreement by March 31, the City of Fresno would not be able to process payments (other than those issued before March 31) to vendors or employees, nor be able to receive monies from customers or other governmental entities.
BACKGROUND
The City maintains approximately fifty bank accounts, each essential for a specific purpose, through which hundreds of millions of dollars flow every year. As a large government entity, the City has extensive and complex banking service requirements. The City requires banking services to process coin, currency, check, wire and Automated Clearing House (ACH) deposits. For disbursements, the City issues Payroll direct deposits, paycards, Accounts Payable ACH payments and checks, as well as debit wire transfers.
The City's current contract for banking services expires on March 31, 2018. An RFP was issued for banking services on August 3, 2017. ...
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