REPORT TO COUNCIL
SUBJECT
Title
Authorization to Amend an Existing Contract for Banking Services (F17-055)
Report
REPORT IN BRIEF
Approval is requested to amend the City's existing banking contact with Union Bank by extending it two years. Approval is also requested to authorize the City Manager to renew the contract up to two (2) additional years. The City requires the services of a financial institution in order to have accounts into which revenues collected for City services can be deposited and from which the City can pay expenses.
EXISTING POLICY
This type of specialized professional service can be exempted from competitive bidding under Section 2.08.070(b)(1) of the Sunnyvale Municipal Code.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" within the meaning of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment
BACKGROUND AND DISCUSSION
The City has maintained a banking relationship with Union Bank since 1993 following competitive selection processes in 1993, 2000, and 2006. The 2006 contract included a 36% price reduction followed by an additional 8% reduction in 2013. The current contract term, extended by Council in 2013, expires on December 31, 2016 (RTC No. 13-287). Union Bank has offered to increase the current contract earnings credit rate by 0.12% which is estimated to generate an additional $12,000 per year in earnings to offset fees that the bank charges, which will not increase under the first two years of the new extension. Subsequent changes would be subject to negotiation.
Under the banking contract, Union Bank provides the following:
* Deposit services for all City departments that collect payments
* Wire transfer and check clearing services
* Direct Deposit of employee payroll
* Automated Clearing...
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