Approve a contract with JP Morgan Chase Bank to provide professional banking services for three years, with two one-year extensions, and authorize the City Manager to sign all necessary banking documents.

Summary

The City of Manteca is approving a three-year contract with JPMorgan Chase Bank, N.A. for comprehensive treasury banking services, with options for two one-year extensions, potentially extending the term to five years. The maximum compensation under this agreement is $500,000. These services will replace the City's current banking relationship with Wells Fargo.

The scope of services includes general banking, cash management, electronic funds transfers (ACH and wires), lockbox services (specifically for utility payments), positive pay for fraud prevention, and extensive online account access and reporting. A key requirement is that JPMorgan Chase must collateralize all collected City balances exceeding FDIC insurance limits at 110%, as mandated by California Government Code. The contract also details security procedures, reporting requirements, and a fixed pricing structure for the initial three-year term.

Citizen Impact

This contract ensures the secure and efficient management of the City's financial operations, including the handling of tax revenues and utility payments. The requirement for 110% collateralization of City funds held by the bank provides an added layer of protection for taxpayer money, safeguarding public assets.

Confidence

high