REPORT TO COUNCIL
SUBJECT
Title
Action on Amendments to Agreement with JPMorgan Chase Bank for Banking Services to the City
Report
COUNCIL PILLAR
Manage Strategically Our Workforce Capacity and Resources
BACKGROUND
The Finance Department makes extensive use of banking services to manage the City of Santa Clara's (City) treasury operations. In 2019, City conducted its first competitive procurement in decades for comprehensive banking services, which resulted in City Council's approval to execute agreements with JPMorgan Chase Bank, N.A. (JPMorgan Chase). Due to the unique characteristics and complexities of the various banking products and regulations, the City entered into three separate agreements with JPMorgan Chase for General Banking Services, Merchant Card Services, and Commercial Card Services (RTC 20-493). This report is requesting actions for the General Banking Services Agreement (Agreement), which was established for an initial term of five years, ending on December 15, 2025, with the option to extend for an additional five years, at the City's sole discretion.
General banking services are essential to City's day-to-day operations. Millions of dollars in City funds are received and disbursed through multiple banking system channels daily, including, but not limited to, the following activities:
* 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; and
* City payments, including general accounts payable, payroll, and debt service.
Prior to the engagement with JPMorgan Chase, the City's agreement with its previous banking partner was subject to non-negotiable price changes without notice. Under the JPMorgan Chase agreement, pre-negotiated prices are guaranteed through the term of the agreement.
Since full implementation of all JPMorgan Chase products and services, the ...
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