Agenda Packet_2025-08-05 - Laserfiche WebLink

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Second Amendment JPMC August 5, 2025 Page 2 5 2 4 1 To strengthen payment security and streamline operations, staff recommends implementing three additional banking services through the City’s current agreement with JPMorgan Chase (JPMC): 1. Check Printing Services – Transitioning the City’s in-house check printing process to JPMC-managed services to reduce manual handling, improve efficiency, and reduce the City’s exposure to check fraud. 2. Payee Validation Services – Verifying vendor and supplier identity details before payments are issued to prevent misdirected payments. 3. ACH Replay Functionality – Allowing the City to securely reprocess ACH files in the event of a catastrophic disruption of the City’s financial systems. Due to the complexity and scale of banking operations in large public agencies, it is common for banking contracts to be of longer duration to ensure continuity of service and minimize risk. Implementing the services listed above requires careful coordination, system integration, and adequate testing. The additional two (2) years of service with JPMC would allow Treasury to accurately test and implement the additional services noted above and prepare to undergo a formal RFP process for banking and related services and a potential transition to a different financial institution. Furthermore, the timing of the extension would allow the competitive solicitation to align with the implementation of the City’s new Enterprise Resource Planning (ERP) system, ensuring the selected provider can meet the operational needs of the updated financial system. The City’s agreement and amendments with JPMC allow for fluctuations in the volume of banking transactions, since activity can vary from month to month. However, as noted in the Fiscal Impact section, banking fees for services provided by JPMC are typically offset by credits the City earns based on its account balances. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Bank fees for these additional services will be covered using credits the City earns from its bank based on account balances. At current interest rates, we expect these credits to fully pay for the fees. If the credits are not enough, any remaining costs would be offset by interest income the City earns from its investments (Account: 58000 Earnings on Investments). EXHIBIT(S) 1. Resolution 2. Second Amendment to Agreement with JPMC City Council 19 – 2 8/5/2025