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Agreement with JPMorgan Chase Bank, N.A. <br />For Depository Services ( "Banking Services ") <br />Page 4 <br />a. Offsets to Cost of Providing Services (Earnings): <br />In addition to the cost of banking services, respondents were also asked to quote an earning <br />allowance rate on compensating balances to be maintained by the City in accordance with a <br />prospective Banking Services Agreement. Earnings are available to offset the costs of <br />banking services. Based on this quote, the earnings rates offered by the three respondents <br />(highest earnings rate to lowest earnings rate) are as follows: <br />Financial Institution <br />Estimated Annual Cost Banking Services <br />JPMorgan Chase Bank <br />60 earnings basis points (0.60 %) <br />MUFG — Union Bank <br />45 earnings basis points (0.45 %) <br />Wells Fargo Bank <br />25 earnings basis points (0.25 %) <br />Combined Ranking: <br />The combined ranking based on all Proposal Evaluation Criteria is as follows: <br />Rank <br />Financial Institution <br />Average Score (out of 100) <br />1 <br />JPMorgan Chase Bank <br />93% <br />2 <br />MUFG — Union Bank <br />82% <br />3 <br />Wells Fargo Bank <br />74% <br />The original proposal submitted by JPMorgan Chase Bank was found to be most responsive to <br />the City's needs, offering the best value both in terms of price and compensating balance interest <br />earnings, and is most appropriate and flexible for the depository/banking services sought by the <br />City. JPMorgan Chase Bank's enhanced "Access" web portal offers City staff superior analytic, <br />reconciliation, reporting, and training tools, along with the highest degree of administrative <br />security which would allow for continual innovation, efficiency, and safety in City banking. <br />Follow -on contract negotiations with JPMorgan Chase Bank successfully reduced the City's <br />estimated annual banking services costs by a further 37% from $77,277 to $48,944. This very <br />competitive pricing /interest earning's allowance structure together with JPMorgan Chase Bank's <br />strong qualifications, team experience and client references as well as an appropriate proposed <br />scope of services and time of performance will provide for an elastic and cost - effective banking <br />services platform. Based on these criteria staff recommends that the City Council designate <br />JPMorgan Chase Bank, as the official depository for the City of Santa Ana and award a <br />corresponding banking services agreement to JPMorgan Chase Bank. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item allows the City to meet Goal #4 City Financial Stability, Objective #1 <br />(Maintain a stable, efficient and transparent financial environment). <br />55E -4 <br />