REPORT TO COUNCIL
SUBJECT
Title
Authorize an Extension of a Banking Services Agreement with US Bank
Report
REPORT IN BRIEF
Approval is requested to extend a contract with US Bank for three years to provide regular and ongoing banking services. Approval is also requested to authorize the City Manager to renew the contract up to two additional years if services and fees remain favorable to the City.
EXISTING POLICY
Pursuant to Section 2.08.070(b)(1) of the Sunnyvale Municipal Code, contracts for specialized professional service may be exempted from the competitive proposal process.
Section 2.08.070(b)(3) authorizes the purchase of goods and/or services to be exempted from the competitive bidding requirements when the solicitations of bids or proposals would be impractical, unavailing or impossible.
ENVIRONMENTAL REVIEW
The proposed actions are exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(4) in that it is a fiscal activity that does not involve commitment to any specific project that may result in a significant impact on the environment.
BACKGROUND AND DISCUSSION
The City previously utilized banking services with Union Bank of California, which was selected after conducting competitive selection processes in 1993, 2000, and 2006 and amending the 2006 agreement throughout the contract term in 2013, 2017, and 2020.
Union Bank was acquired by US Bank in 2023, and the City completed an intensive transition which lasted several months. As part of the acquisition terms, US Bank honored the existing Union Bank service agreement with the City, which is set to expire on December 31, 2024. (Attachment 2 to this report.) Recognizing that the City has been a long-term customer, US Bank has also offered competitive service fees and higher interest earning rates and has provided acceptable service levels and responsiveness.
Under the banking contract, US Bank provides the following:...
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