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CITY OF SAN LEANDRO <br />STAFF REPORT <br />DATE: December 11, 2007 <br />TO: John Jermanis, City Manager <br />FROM: Steve Hollister, Assistant City Manager <br />APPROVED AND <br />FORWARDED <br />TO CITY COUNCIL <br />John ermanis <br />Cit `pager <br />BY: Carla Rodriguez, Deputy Finance Directo~~~~ <br />SUBJECT/DESCRIPTION: <br />RESOLUTION APPROVING AGREEMENT WITH WELLS FARGO BANK, N.A. FOR <br />GENERAL BANKING SERVICES <br />SUMMARY AND RECOMMENDATION <br />Staff recommends City Council approval of an agreement with a New General Banking Services <br />Provider, Wells Fargo Bank, N.A., for a term of 5 years with a two year additional option. <br />BACKGROUND <br />The City has been banking with Bank of America for the past 35 years when it was previously <br />known as Bank of Italy. Best business practice includes ensuring competitive pricing, seeking <br />improvements and efficiencies with technological enhancements, improving audit controls and <br />reporting, and obtaining enhanced customer service. To our knowledge, the City has never <br />conducted a Banking Request for Proposals (RFP) to seek better rates and improve service <br />enhancements. For the past years, Bank of America has continuously increased service charges to <br />the City without prior notification of price changes, has experienced a significant turnover in key <br />Government relations personnel, and has been unable to provide adequate customer support or staff <br />training on new software programs and procedures. Currently, the banking industry is offering a <br />wide array of technological advancements such as fraud protection, on-line banking services, <br />availability of cash by reducing cash float days, annual analysis review of City's accounts and other <br />service enhancements that will provide the City with better cash management leading to greater <br />investment opportunities. <br />The City currently pays an estimated $ll1K annually. Staff projects savings of $34K under the <br />proposed agreement with Wells Fargo Bank, N.A. <br />Current Proposed <br />Annual Cost Annual Cost <br />General Banking Services <br />Cash and Transit Services <br />Merchant Card Services <br />Total <br />$21,480 $9,312 <br />30,000 24,000 <br />59,724 43,596 <br />$111,204 $76,908 <br />