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File Number: 17-663 <br />The City currently has $5 million deposited with Wells Fargo for daily operational purposes and <br />also owns a $700,000 Wells Fargo Corporate Note as part of its Investment Portfolio managed <br />by Chandler Asset Management. Bank fees are approximately $80,000 per year, which is less <br />than the amount paid to Bank of America a decade ago. <br />DISCUSSION <br />A potential RFP will impact staff capacity as it relates to existing commitments and regulatory <br />obligations. The Financial Reports calendar for 2017 was presented to the Finance Committee in <br />October. The report highlights the deadlines and volume of activity requiring Finance Department <br />resources. Key priorities of the Department are the completion of the annual audit, production of <br />the budget and preparation of bond documents in connection with the upcoming refinancing and <br />new money bond issues. Further, key projects in all other City departments are dependent on the <br />Finance Department for the issuance of bid and RFP documents, execution of contracts, and <br />issuance of purchase orders. Therefore, changes to the capacity of the Finance Department have <br />an impact on the timeliness of project delivery throughout the organization. <br />Staffing in the Finance Department has been stretched in the past year by the departure of the <br />Assistant Director and an accountant as well as the need to backfill an accountant position that <br />was vacated due to a promotion. Additionally, an audit finding last year noted an issue with the <br />timely recording of journal entries that was a direct result of turnover and staffing challenges. <br />Although the Department is actively working with Human Resources to return to full staffing, the <br />process will take time and will require additional time to bring new employees up to speed. <br />Prior to Wells Fargo Bank, the City used Bank of America for 35 years. The 2007 banking RFP <br />was the first one the City had ever conducted and it was an extensive process requiring <br />significant staff resources and costs prior to selection as well as during post-selection <br />implementation. Twelve months elapsed from the time the RFP was issued until the time banking <br />services were officially changed over to Wells Fargo. In order to provide the City with the best <br />service and pricing possible, staff anticipates a similar process and 12-18 month timeline should <br />a new banking RFP be prepared and issued. The selection process would include at minimum: <br />·RFP preparation and issuance; <br />·Needs assessment; <br />·Evaluation of vendor proposals; <br />·Vendor presentations; <br />·Client site visits, and <br />·Contract negotiations <br />The post-selection implementation process would include at minimum: <br />·Modifying the financial system setup and general ledger for new banking codes; <br />·Modifying configuration for electronic check deposits; <br />·Modifying any merchant credit card services affiliated with Wells Fargo; <br />·Changing out credit card machines at all City locations that process these payments; <br />Page 2 City of San Leandro Printed on 11/14/2017 <br />246