REPORT TO THE CITY COUNCIL FROM: SANTINO DANISI, MBA, Finance Director/City Controller Finance Department SUBJECT ..Title Approve the first amendment to the Bank of America contract for banking services to allow for amendments to the Services that are not included in the scope of services but are necessary for City business operations ..Body RECOMMENDATION Approve the first amendment to the Bank of America contract for banking services to allow for amendments to the Services that are not included in the scope of services (Exhibit D) but are necessary for City business operations. EXECUTIVE SUMMARY The City of Fresno (City) currently has an agreement with Bank of America for banking services. On June 14, 2018, Council awarded a five-year contract with two one-year extensions. The existing Scope of Services does not cover a module that is needed for bank reconciliations with the new enterprise resource planning ("ERP") system, Tyler Munis. The City would like to amend the original agreement by adding services to receive the Bank Administration Institute (BAI) file to complete the City's bank reconciliations. BACKGROUND The City maintains approximately fifty bank accounts, each essential for a specific purpose, through which hundreds of millions of dollars flow every year. As a large government entity, the City has extensive and complex banking service requirements. The City requires banking services to process coin, currency, check, wire and Automated Clearing House (ACH) deposits. For disbursements, the City issues Payroll direct deposits, paycards, Accounts Payable ACH payments and checks, as well as debit wire transfers. In addition to normal daily banking services, the City looks to its banking services provider for expertise and assistance in reducing exposure to fraud, as well as suggesting services to enhance the City's customer service and streamline processes. The current City agreement for banking services was effective July 1, 2018 and the initial five years ends June 20, 2023. There are two one-year extensions available under this agreement. The existing Scope of Services does not cover a module that is needed for bank reconciliations with the new ERP system, Tyler Munis. The City would like to amend the original agreement by adding services to receive the Bank Administration Institute (BAI) file to complete the City's bank reconciliations. At the City's current activity levels, it is projected that the recommended contract will cost the City $112,000 in FY 2023. The addition of this module would increase the annual cost by approximately $18,100. The current Finance Department budget will be able to cover this additional cost. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference was not considered at the time of the original agreement because all the proposers for the request for proposals had at least one branch within the City of Fresno. FISCAL IMPACT The City is projecting to pay approximately $112,000 annually in variable costs for banking services, based on the current years actual expenditures. This figure is net of the earnings credit. The pricing of the proposed First Amendment to the Bank of America Agreement will result in an increase to the annual cost of approximately $18,100. The Finance Department has current appropriations of $178,000 for banking services which are adequate to cover the costs of the agreement and this amendment. Attachment: First Amendment to the Agreement Agreement