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