REPORT TO COUNCIL
SUBJECT
Title
Action on Agreements to Provide Comprehensive Banking Services to the City [Council Pillar: Manage Strategically Our Workforce Capacity and Resources]
Report
BACKGROUND
The Finance Department oversees the treasury responsibilities of the City of Santa Clara (City), including:
* Supervision of banking relationships;
* Receipt and custody of all cash and checks received from any source in compliance with the provisions of State law governing the handling, depositing, and securing of public funds;
* Receipt of credit and debit card transactions;
* Payment of debts of the City, including general accounts payable and payroll;
* Maintenance of petty cash and purchasing card programs, as deemed prudent for the efficient conduct of City business; and
* Custody and safekeeping of City investments and securities.
The Finance Department makes extensive use of banking services to manage the City's treasury operations. Since the City's current banking services contract with Bank of America has not been renegotiated in over 25 years and banking services, fees, and technology have changed substantially in the last two decades, the Finance Department initiated a review of the City's banking contracts. In May 2019, the Finance Department hired a consultant to perform the following:
* Review the City's current general banking, merchant card processing, purchase card and integrated accounts payables, and custody services;
* Analyze all of the City's banking fees versus market;
* Analyze the technology and security controls within the City's banking practices versus market;
* Analyze the banking products utilized within the City's banking practices versus market; and
* Assist the City with preparing a Request for Proposal (RFP) for Comprehensive Banking Services.
By initiating a competitive procurement for banking services, the City can identify a banking institution that can offer the highest quality service, provide strong security, create e...
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