DATE: January 8, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: PROFESSIONAL SERVICES AGREEMENT WITH U.S. BANK, N.A. OF CALIFORNIA, TO PROVIDE BANKING SERVICES
RECOMMENDATION
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Staff recommends that the City Council approve a five-year Professional Services Agreement with U.S. Bank, N.A. of California, to provide banking services in an amount not to exceed $660,000 ($132,000 per year), and authorize the City Manager to execute the agreement.
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BACKGROUND AND ANALYSIS
On September 3, 2024, the Financial Services Department issued a request for proposals (RFP) to provide banking services to the City. Five responses were received.
The RFP requested submittals from qualified banking institutions to provide banking services to the City for its banking and cash management needs. The primary objective of the proposal was to obtain the most efficient, high-quality services at the most reasonable cost.
The minimum qualifications for the financial institutions to meet were:
1. Be a Federal or State of California chartered financial institution.
2. Be a member of the Federal Reserve System and have access to all services.
3. Be a qualified depository for public funds pursuant to the applicable State of California codes. All balances must be fully collateralized through the pool collateral system required under the State of California Financial Code Section 53630 et. seq. The bank must also be FDIC insured.
4. Be a full-service bank in good standing among other comparable banks.
5. Be capable of providing the services sought by the City, to include a wide range of electronic payment and deposit services.
6. Agree to assign experienced and dedicated staff committed and capable of servicing the City's accounts.
7. Be in compliance and good standing with the Community Reinvestment Act.
8. Be sufficiently capitalized to accommodate the City's cash management needs.
9. Execute a HUD-approved general depository ...
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