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First Amendment to Agreement with J.P. Morgan Chase Bank, N.A. <br />December 21, 2021 <br />Page 2 <br />2 <br />3 <br />3 <br />5 <br />unprecedented in terms of disruptiveness and magnitude, acquiring a new bank for <br />depository and banking services is not recommended until a sustained nationwide <br />economic normalization has been attained. As our incumbent financial banking services <br />provider, JPMC Bank has offered the City expert advice, industry insights and continuing <br />commitment state of the art treasury products to meet the ongoing and evolving needs of <br />the City. As part of this First Amendment to Agreement, JPMC Bank is agreeing to <br />maintain the concessionary agreed to price and compensating balance interest earnings <br />encompassed within the original agreement. In addition, JPMC Bank is agreeing to a <br />bank-managed earnings credit of 23 basis points (“23BPS”), and as a further testament <br />to their commitment to the City and the City’s banking relationship, JPMC Bank is offering <br />the City a one-time $20,000 retention allowance to be used on supplies and/or equipment <br />over the next 12 months, beginning January 1, 2022. <br />JPMC Bank is the largest commercial bank in the United States and a global leader in <br />financial services, offering solutions to the world’s most important corporations, <br />governments, and institutions in more than 100 countries. JPMC Bank has taken pride <br />in cultivating a strong banking services relationship with the City. Therefore, staff <br />recommends the approval of a First Amendment to Agreement with JPMC Bank for <br />depository and banking services. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />Monthly bank fee balances not offset by earning allowances on compensating balances <br />maintained with Bank in accordance with the banking services agreement will be <br />deducted from interest earned on account balances deposited into account (No. <br />09401001-24000). Funds will be budgeted for expenditure as follows: <br />FY <br />Accounting <br />Unit - <br />Account <br />No. <br />Fund <br />Description <br />Accounting <br />Unit - <br />Accounting <br />No. <br />Description <br />Contracted <br />Amount <br />Annual Rate <br />Increase <br />(Contingency) <br />Maximum <br />Amount <br />2021- <br />22 <br />09401001- <br />24000 <br />FMSA - <br />Balance <br />Sheet <br />Trust & <br />Agency $37,500 $18,750 $56,250 <br />2022- <br />23 <br />09401001- <br />24000 <br />FMSA - <br />Balance <br />Sheet <br />Trust & <br />Agency $75,000 $37,500 $112,500 <br />2023- <br />24 <br />09401001- <br />24000 <br />FMSA - <br />Balance <br />Sheet <br />Trust & <br />Agency $75,000 $37,500 $112,500