Laserfiche WebLink
City of San Leandro <br />Meeting Date: November 20, 2017 <br />Staff Report <br />Agenda Section:File Number:17-663 ACTION ITEMS <br />Agenda Number:10.A. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:David Baum <br />Finance Director <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:Staff Report on Potential Divestiture from Wells Fargo Bank due to its Funding of <br />the Dakota Access Pipeline (DAPL) Project <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City Council discuss divesting from an existing $700,000 Wells Fargo <br />corporate note, and suggests that the City Council defer further discussion regarding issuance of <br />a Request for Proposals from alternative banks. <br />BACKGROUND <br />On March 6, 2017, the City Council received a letter from a group of citizens requesting that the <br />City replace Wells Fargo Bank (Bank). Please see attached letter. The Council referred the <br />request to the City’s Finance Committee for discussion on April 4, 2017. The Finance <br />Committee heard testimony from San Leandro residents and directed staff to bring an analysis of <br />a potential banking RFP to Council for its consideration. <br />Wells Fargo has been the City’s primary bank offering commercial services since June 2008. <br />The Bank was chosen in a competitive 6-month Request for Proposals (RFP) process in 2007 <br />that included eight respondents. Six of the eight respondents were selected by an Evaluation <br />Committee (consisting of six finance staff members) to provide an in-depth presentation and <br />demonstrate their ability to support daily City operations in an effective and efficient manner <br />utilizing the bank’s service applications. Wells Fargo was chosen primarily due to anticipated <br />savings of 31% over the City’s former banking provider (Bank of America) as well as <br />technological offerings, enhanced customer service, and operational efficiencies. Services <br />include providing the City’s general checking accounts for payroll, accounts payable, and <br />worker’s compensation, collateralization of deposits (as required by Section VII (D) of the City’s <br />Investment Policy and Section 2257.021 of California Government Code), and nightly sweep of <br />the City’s deposits into short-term investments to earn the City maximum return on its liquid funds. <br />Page 1 City of San Leandro Printed on 11/14/2017 <br />245