1999 AGN DEC 21 I11 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR COUNCIL MFFTINr nF npcpmhpr 91 1990 TO: HONORABLE MAYOR & CITY COUNCIL APPROVAL: HENRY GARCIA CITY MANAGER FROM: MICHAEL WILLIAMS, CITY TREASURER aijZ4J SUBJECT: UPDATE ON REQUEST FOR PROPOSAL FOR BANKING SERVICES DATE: DECEMBER 14, 1999 BACKGROUND: Several months ago the Council was advised that I was in the process of preparing a request for proposal for banking services. There are a number of reasons for doing a request for proposal and many benefits to the City to obtain proposals from a number of qualified banking institutions. DISCUSSION/ANALYSIS: The City has not solicited proposals from banking institutions in the 11 years I have been treasurer. Since 1988, the City has added a number of checking accounts for special purposes and due to upgrades in the accounting system, they are no longer necessary. A consolidation in the number of checking accounts will allow for more efficient investment of the City's funds and reduce staff time in preparing checks and reconciling accounts at the end of each month. In addition, we can utilize new account features to prevent check alteration or other types of fraud through a system commonly called positive pay. The City will transmit check numbers and amounts to the bank and if there are any discrepancies, the bank will not honor the check. In addition, the Bank will reconcile the accounts which will reduce the workload for the finance department. There are also new treasury workstation software programs to reduce banking costs and make cash management more efficient. We have hired a consultant to assist in the evaluation of the responses. The banks that were asked to present proposals are as follows: Bank of America, California Federal, Citizens Business Bank, Union Bank of California and Wells Fargo Bank. Item #11