CITY COUNCIL: Agreement with Wells Fargo Bank for Banking Services

Meeting Date: April 3, 2008
Prepared by: Joyce Giuffre,
Admin Svcs Director

City Council
Agenda Item Summary

Name: Consideration of a Resolution entering into an agreement with Wells Fargo Bank
for banking services.

Description: The City of Carmel-by-the-Sea requires the services of a bank with a wide variety of banking services to facilitate its operations and serve the public interest. The City desires to enter into a three-year written agreement with Wells Fargo Bank to provide such banking services.

As background, the City of Carmel-by-the-Sea has been banking with Wells Fargo Bank for over twenty years. It was recommended by the City Treasurer and Administrative Services Director that banking services be reviewed.

At the September 11, 2007 City Council meeting, the Council directed staff to issue a Request for Proposals (RFP) to qualifying banking institutions and to review the proposals. The review was intended to enable the City to create efficiencies, make improvements where possible, take advantage of new technologies and look at reducing its banking costs.

The City issued the RFP on October 19, 2007. Four banks submitted proposals: Wells Fargo Bank, Bank of the West, First National Bank, and Comerica Bank. The RFP submissions were reviewed by the City Treasurer and Administrative Services Director. Meetings were held with each bank to review the proposals.

It was determined that Wells Fargo can provide the variety of services currently needed at a competitive price as well as any additional banking services the City may need. Attached is Exhibit “A,” which is the proposed Banking Services Agreement with Wells Fargo Bank for a three-year term beginning April 1, 2008.

Overall Cost: City Funds: Estimate of $10,000 annual banking and credit card processing fees (certain banking fees to be offset with compensating balances)
Grant Funds: N/A

Staff Recommendation: Approve the Resolution entering into the banking services agreement with Wells Fargo Bank.

Important Considerations: None

Decision Record: None

Reviewed by: The banking services agreement was reviewed by the City Attorney.


______________________________ _________________
Rich Guillen, City Administrator Date