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Item # 19
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City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
August 5, 2025
TOPIC: Depository Banking Services
AGENDA TITLE
Resolution and Second Amendment to Agreement with J.P. Morgan Chase Bank, N.A.
(General Fund)
RECOMMENDED ACTION
1. Adopt a Resolution designating J.P. Morgan Chase Bank, N.A. as the official
depository for the City of Santa Ana for two (2) additional years commencing January
1, 2027 through December 31, 2028.
RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA ANA DESIGNATING JP MORGAN CHASE BANK, N.A., AS
THE DEPOSITORY FOR CITY OF SANTAANA FUNDS, FOR TWO (2)ADDITIONAL
YEARS THROUGH DECEMBER 31, 2028, AND DESIGNATING SIGNATORIES
AUTHORIZED FOR THE PURPOSE OF WITHDRAWAL OF SAID FUND
2. Authorize the City Manager to execute a second amendment to agreement with J.P.
Morgan Chase Bank, N.A. ("JPMC")to provide additional banking and related services
in the amount of $225,000, for a total agreement amount not to exceed $787,500
(Agreement No. A-2025-XXX).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The Treasury and Customer Service Division ("Treasury") of the Finance and
Management Services Agency ("FMSA") is responsible for maintaining all banking related
services and transactions for the City, Successor Agency, and Housing Authority.
Banking related services include, but are not limited to: daily deposit processing
(electronic/physical checks, currency, and coin), check clearing, Automated Clearing
House (ACH), gateway services, wire services, and account reconciliation.
The term of the current agreement with J.P. Morgan Chase Bank, N.A. ends December
31, 2026. The recommended action would extend that term to December 31, 2028.
Second Amendment JPMC
August 5, 2025
Page 2
To strengthen payment security and streamline operations, staff recommends
implementing three additional banking services through the City's current agreement with
JPMorgan Chase (JPMC):
1. Check Printing Services — Transitioning the City's in-house check printing process
to JPMC-managed services to reduce manual handling, improve efficiency, and
reduce the City's exposure to check fraud.
2. Payee Validation Services — Verifying vendor and supplier identity details before
payments are issued to prevent misdirected payments.
3. ACH Replay Functionality — Allowing the City to securely reprocess ACH files in
the event of a catastrophic disruption of the City's financial systems.
Due to the complexity and scale of banking operations in large public agencies, it is
common for banking contracts to be of longer duration to ensure continuity of service and
minimize risk. Implementing the services listed above requires careful coordination,
system integration, and adequate testing.
The additional two (2) years of service with JPMC would allow Treasury to accurately
test and implement the additional services noted above and prepare to undergo a
formal RFP process for banking and related services and a potential transition to a
different financial institution. Furthermore, the timing of the extension would allow the
competitive solicitation to align with the implementation of the City's new Enterprise
Resource Planning (ERP) system, ensuring the selected provider can meet the
operational needs of the updated financial system.
The City's agreement and amendments with JPMC allow for fluctuations in the volume of
banking transactions, since activity can vary from month to month. However, as noted in
the Fiscal Impact section, banking fees for services provided by JPMC are typically offset
by credits the City earns based on its account balances.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Bank fees for these additional services will be covered using credits the City earns from
its bank based on account balances. At current interest rates, we expect these credits to
fully pay for the fees. If the credits are not enough, any remaining costs would be offset
by interest income the City earns from its investments (Account: 58000 Earnings on
Investments).
EXHIBIT(S)
1. Resolution
2. Second Amendment to Agreement with JPMC
Second Amendment JPMC
August 5, 2025
Page 3
Submitted By: Alex Trinidad, Executive Director, Finance and Management Services
Agency
Approved By: Alvaro Nunez, City Manager
EXHIBIT 1
RESOLUTION NO. 2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA
DESIGNATING JP MORGAN CHASE BANK, N.A., AS THE
DEPOSITORY FOR CITY OF SANTA ANA FUNDS, FOR TWO (2)
ADDITIONAL YEARS THROUGH DECEMBER 31, 2028,
AND DESIGNATING SIGNATORIES AUTHORIZED FOR THE
PURPOSE OF WITHDRAWAL OF SAID FUND
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA
AS FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. The City Council of the City of Santa Ana ("City") has declared a policy
of designating a bank within the City or in its immediate vicinity to act
as depository for the demand deposits of City funds.
B. The City has an existing Banking Services Agreement (No. A-2016-366),
including all amendments (No. A-2021-285), with J.P. Morgan Chase Bank,
N.A., effective December 6, 2016 through December 31, 2026.
C. After reviewing the outstanding performance of J.P. Morgan Chase Bank,
N.A. as the City's depository banking services provider and having found
J.P. Morgan Chase Bank, N.A.'s proposal for continued depository
banking services to be superior in terms of pricing and bank managed
earnings credit, the City hereby re-designates JPMorgan Chase Bank,
N.A., 1300 North Main Street, Santa Ana, California ("Bank"), as the
banking institution that shall receive and act as depository for City funds
and trust funds in control of said City, for two (2) additional years beginning
January 1,2027 through December 31, 2028.
Section 2. The Executive Director of Finance and Management Services of
the City and the Assistant Director of Finance and Management Services of the City (when
acting as designee of the Executive Director of Finance and Management Services) are
hereby authorized for and on behalf of the City, and as its officers and agents, to sign
City of Santa Ana checks for the withdrawal of said funds so deposited, both by
facsimile signature machine-imprinted upon City checks and by manually affixed
signature upon City checks.
Section 3. The Assistant Director of Finance and Management Services and the
Treasury and Customer Services Manager of the City are hereby authorized for and
on behalf of the City, and as agents of the City and deputies of the Executive
Director of Finance and Management Services to sign City of Santa Ana checks for
the withdrawal of said funds so deposited by manually affixed signature thereon.
Section 4. Said Bank is hereby authorized and directed to pay out from said
City funds to the payees respectively designated on any City checks, signed in
the manner and by any of the persons hereinabove authorized, in the amounts shown
on the face of said checks.
Resolution No. 2025-XXX
Page 1 of 3
Section 5. The City Manager is hereby authorized to designate in writing
agents who shall be authorized to sign City checks for the payment or withdrawal of
said funds when, due to physical absence, incapacity or death of any of said authorized
signatories, it may be necessary on a temporary basis to provide other means for
the signing of City checks, and/or for the payment or withdrawal of said funds. Any
such authorization shall set forth the necessity for such designation, the period of time
during which said authorization shall continue (by giving the exact starting and termination
dates) and shall contain the certification of the City Clerk over the official seal of the City
of Santa Ana certifying that said authorization is in fact, signed by the qualified and
acting City Manager, shall contain a specimen signature of the person designated as
such temporary agent, and shall be delivered to said Bank.
Section 6. The City Manager, or his designee, is hereby authorized to execute
and submit all documents, including but not limited to applications, agreements and
amendments which may be required to effectuate the banking services necessary for
the administration ofthe City's demand deposit account.
Section 7. A certified copy of this Resolution, together with the signatures of
the two agents herein authorized to act in manual form and copies of the facsimile
signature machine-imprints of the Executive Director of Finance and Management
Services and Assistant Director of Finance and Management Services certified bythe City
Clerk to be the signatures of said persons, and the imprints of the official facsimile
signature plates, shall be delivered to said Bank before the 1 st day of January, 2027.
Whenever any of said agents leave the employment of the City, is absent therefrom, or
incapacitated for a period of time that will affect the issuance of City checks, the City
Clerk shall notify said Bank of said fact and shall certify the names, titles, and signatures
of the person(s) then designated as agent(s) of the City for the purpose of signing City
checks in the manner hereinabove provided and shall notify said Bank of every
termination of such authorization immediately upon receiptof such information.
Section 8. This Resolution shall take effect immediately upon its adoption by
the City Council, and the City Clerk shall attest to and certify the vote adopting this
Resolution.
ADOPTED this 5th day of August,2025.
Valerie Amezcua
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:,4�o.0
Andrea Garcia-Miller
Assistant City Attorney
Resolution No. 2025-XXX
Page 2 of 3
AYES: Councilmembers:
NOES: Councilmembers:
ABSTAIN: Councilmembers:
NOT PRESENT: Councilmembers:
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, JENNIFER L. HALL, City Clerk, do hereby attest to and certify the attached
Resolution No. 2025-XXX to be the original resolution adopted by the City Council of
the City of Santa Ana on August 5, 2025.
Date:
Jennifer L. Hall
City Clerk
City of Santa Ana
Resolution No. 2025-XXX
Page 3 of 3
EXHIBIT 2
SECOND AMENDMENT TO AGREEMENT BETWEEN THE
CITY OF SANTA ANA AND JPMORGAN CHASE BANK, N.A.
THIS SECOND AMENDMENT TO AGREEMENT ("Second Amendment") is
entered into this 5th day of August 2025, by and between the City of Santa Ana, a charter city
and municipal corporation organized and existing under the Constitution and laws of the State
of California("City"), and JPMorgan Chase Bank N.A. ("Banking Services Provider"). City
and Banking Services Provider may be referred to herein separately as a "Party" and
collectively as "Parties".
RECITALS:
A. On December 6, 2016,the City entered into Agreement No.A-2016-366("Agreement")
with J.P. Morgan Chase Bank N.A. in which Banking Services Provider,having special
skill and knowledge in the field of banking services, banking technology, and related
ancillary services to include but not limited to: daily deposit processing, image cash
letter (ICL) deposits, check clearing, wire services, automated clearing house (ACH)
transactions, positive pay services, account reconciliation, directdeposit of accounts
payables, account analysis services, lockbox services, client staff training, the latter, to
the extent reasonably required for City to utilize the services provided.
B. On December 21, 2021,the City executed the First Amendment to Agreement (No. A-
2021-285) with J.P. Morgan Chase Bank, N.A., by which the City and Banking
Services Provider agreed to amend the Compensation, Term, Insurance, and
Miscellaneous clauses of said Agreement. The Agreement is current and in effect.
C. The City and Banking Services Provider now desire to further amend the Agreement
by entering into this Second Amendment, by which the City and Banking Services
Provider agree to extend the term of the Agreement through December 31, 2028
(Section 3-1. Term of the Agreement) and add additional banking services as set forth
in Exhibits A-2 and A-3.
The Parties therefore agree:
1. Section 1. Scope of Services, shall be amended to read as follows:
1. Scope of Services
BANKING SERVICES PROVIDER shall perform the following services as described in
the CITY's Request for Proposal (RFP) No. 16-111 and related addenda, as more
particularly described in Section 3-21 (the "RFP"), as clarified and/or modified by
BANKING SERVICES PROVIDER'S proposal in response to such RFP, inclusive of all
exhibits and attachments thereto and subsequent responses and clarifications provided to
the CITY, as more particularly described in Section 3-21 (collectively, the "Proposal"):
a. BANKING SERVICES PROVIDER will provide CITY with services
described in EXHIBIT A,Exhibit A-2 and Exhibit A-3,and,if later elected
by the CITY, Exhibit A-1 (subject to the notification requirements
Page 1 of 3
contained therein), each of which is attached hereto and incorporated by
reference. BANKING SERVICES PROVIDER shall provide said
services at the time, place, and in the manner specified in the RFP, as
clarified and/or modified by the Proposal and, in the case of Services
described in EXHIBIT A-1 ("Optional Services"), as described in other
agreements specifically related to such services and agreed to by the CITY.
b. BANKING SERVICES PROVIDER shall furnish at its own expense all
labor, materials, equipment and other items necessary to carry out the
terms of this Agreement.
2. Section 3,General Provisions,subsection 3-1 Term of the Agreement. The Parties agree
to extend the term of the Agreement for two (2) additional years through December 31,
2028, unless terminated earlier in accordance with Section 3-2.
3. Except as modified by this Second Amendment, all terms and conditions of the
Agreement shall remain in full force and effect.
[signature page to follow]
Page 2 of 3
IN WITNESS WHEREOF,the Parties hereto have executed this First Amendment to Agreement
as of thelast date and year written below.
ATTEST: CITY OF SANTA ANA
Jennifer L. Hall Alvaro Nufiez
City Clerk City Manager
APPROVED AS TO FORM:
SONIA R. CARVALHO BANKING SERVICES PROVIDER
City Attorney JP MORGAN CHAS BANK,N.A.
iMf
By:
Andrea Garcia-Miller Matt Moon
Assistant City Attorney Authorized Officer
RECOMMENDED FOR APPROVAL:
Alex Trinidad, CPA
Executive Director
Finance and Management Services Agency
Page 3 of 3
EXHIBIT A-2
CHASE CF J.P. Morgan
Pricing Schedule D May 2025
14arine,,,, THE CITY OF SANTA ANA
R,4oM Nairne: Access Check Print& Validation Services
!1 ;1
Total Service Fees $540.00
Balance Incentive' ($0.00)
Based on balance eligible for fee offset
IEEstimated Monthly Amount Due $540.00
Balance Eligible for Fee Offset $0.00
-Volumes and Balances on this Pricing Schedule are estimated.Actual Volumes and balance may he different,which will result in different charges than are specified above.
Page 1 of 2
EXHIBIT A-2
Item Service Tier Price Volume Total
Balance Based Charges Balance Based Charges $0.0000 1 $0.00
$0.00
Disbursement Services Check Print Direct Entry $3.0000 0 $0.00
Check Print File Upload $10.0000 4 $40.00
Check Print Item-Jpm Acct $0.4500 1,000 $450.00
Check Print Online Maint $50.0000 1 $50.00
Check Printing Addl Page $0.2000 0 $0.00
Check Prnt Cashier's Check $10.0000 0 $0.00
$540.00
Other Product Services AVS Account Authentication 1-1,000 $0.4000 - $0.00
1,001-5,000 $0.3500 $0.00
5,001-25,000 $0.3000 $0.00
25,001+ $0.2500 - $0.00
o $0.00
AVS Account Verification 1-1,000 $0.4000 - $0.00
1,001-5,000 $0.3500 $0.00
5,001-25,000 $0.3000 $0.00
25,001+ $0.2500 - $0.00
0 $0.00
Account Confidence Score $1.0000 0 $0.00
Business Validation-US $3.0000 0 $0.00
Individual Validation-US $0.7500 0 $0.00
$0.00
Total Service Fees $540.00
Volumes and Balances on this Pricing Schedule are estimated.Actual volumes and balance may be different,which will result in different charges than are specified above.
Page 2 of 2
EXHIBIT A-3
Document Checklist I XF"PAOFWAN CHAS1111:111 'E"MINK, 4A.
26 April 2024
THE CITY OF SANTA A
20 CIVIC CENTER PLAZA
SANTA ANA, CA 927014058
USA
Thank you for choosing JPMorgan Chase for your banking needs. Below is a list of documents
contained in this package that pertain to the products and/or services you have requested, with
instructions for each document.
In striving to deliver best-in-class service, we encourage you to complete and return any of the
attached documentation requiring signature within 5 business days from the day you receive this
package. Please let us know if there is any way we can assist you. We understand that on
occasion this timeline cannot be met due to other priorities,the complexity of requirements,
and/or the availability of authorized signatories. In such cases we kindly ask that you advise us
when we can anticipate receipt of the documentation or if there is any additional support we can
provide. Timely receipt of the documents enables us to better complete your request in the
desired timeframe.
For your protection,where documents in this package are being sent as e-mail attachments and
have been pre-filled, the account and/or SSNMN number has been truncated to the last 4 digits,
or the documents have been encrypted and may require a password to open.
We at JP Morgan Chase are fully committed to meeting your banking needs. We are happy to
answer any questions you may have regarding the attached documents. If you need assistance,
please do not hesitate to call.
Kind regards,
Angela Koch
+16022212015
angeta.koch@jpmorgan.com
150 W University Dr
Tempe,AZ 85281-3640
Document Name ID instructions
El Addendum to ACH Origination 1 Complete, Sign, Return
Service Terms for ACH File
Contingency Processing
PN:2797010
EXHIBIT A-3 kilitl
ADDENDUMTION SERVICE TERMS V1.0 10 0 1
FOR ACH IL TIC _ _ _
This Addendum to ACH Origination Service Terms for ACH File Contingency Processing(this"Addendum")sets forth the terms and conditions under
which JPMorgan Chase Bank, N.A. (the"Bank")will retrieve and process for The City Of Santa Ana(the"Customer")a previously transmitted ACH
Credit Entry or ACH Debit Entry file in the event that an emergency or disruption at the Customer's transmission site or other Customer emergency or
disruption prevents the Customer from transmitting its intended ACH files to the Bank. The Bank's ACH Origination Service Terms and terms and
conditions governing the operation of accounts and services (collectively, the"Account Documentation") are incorporated into this Addendum by
reference and shall become a part thereof. The Customer's signature below constitutes the Customer's acceptance of,and agreement to be bound by,
this Addendum and the Account Documentation. Capitalized terms used in this Addendum and not otherwise defined herein shall have their meanings
set forth in the Account Documentation. In the event of any conflict between the Account Documentation and this Addendum,the terms of this Addendum
shall prevail.
The parties hereby agree as follows:
1. If the Customer determines that it cannot create or transmit to the Bank a file of ACH Credit or ACH Debit Entries as a result of an emergency
or disruption at the Customer's facilities, the Customer may request the Bank to retrieve, re-generate and process a previously transmitted
ACH Credit or Debit Entry file. It will be the Customer's responsibility to determine whether there is an emergency or disruption that interferes
with file transmission and the Bank will have no responsibility to verify that such an emergency or disruption exists. The Customer shall
provide with any such request the origin number,item count,dollar amount and original effective entry date for the ACH file that the Customer
wants the Bank to retrieve and re-process(the"Designated Re-Process File")and any other information requested by the Bank in order to
retrieve such file(i.e.,origin name,company ID and account number,date). It is understood and agreed that ACH files are only maintained
by the Bank for specified periods and the Bank will not re-generate a requested file if the retention period for such file has expired and it is no
longer being maintained by the Bank.
2. Any request for the Bank to retrieve and re-process a Designated Re-Process File shall be issued by either an Authorized Person or by a
person whose name,signature and telephone number is set forth in a Designation of Persons Authorized to Request Re-Generation of ACH
Files in the form set forth as Exhibit A to this Agreement(a"Designee"),which Designation shall be delivered to the Bank concurrently with
the execution and delivery of this Agreement. Any such request shall be delivered either(a)in writing signed by an Authorized Person or by
a Designee,which may be sent by pdf attached to an email to an email address designated by the Bank,or(b)by telephone from a person
identifying himself or herself as an Authorized Person or a Designee to a telephone number specified by the Bank,and in either case such
request shall contain all of the information specified in Section 1 above. The Bank shall be entitled to act upon such instructions from any
person purporting to be an Authorized Person or Designee.
3. Upon receipt and confirmation of a request to re-generate a Designated Re-Process File as provided herein,the Bank will seek to retrieve the
Designated Re-Process File using the information provided pursuant to Sections 1 and 2.Whether retrievable or not,the Bank shall thereafter
place a callback to an Authorized Person or Designee and shall report on whether the file is retrievable or not and if the file has been retrieved,
identify the located Designated Re-Process File for confirmation by such Authorized Person or Designee. Upon receipt of such confirmation,
the Bank shall(except as otherwise provided in Section 4)release the Designated Re-Process File into the ACH system for processing. The
Bank will use reasonable efforts to perform this process promptly after the receipt of the Customer's request,but it is understood and agreed
that processing may not occur the same day.
4. Notwithstanding anything to the contrary set forth in Section 3,if the Customer is an Infodex user,the Bank shall not release Designated Re-
Process File, but rather shall advise the Customer that the file is available for the Customer to release on Infodex. Thereafter, it will be the
Customer's responsibility to release such file through the normal Infodex process.
5. With respect to the ACH entries contained in any Designated Re-Process File processed by the Bank under this Agreement,the Customer
hereby makes all of the warranties made by the Customer under the Account Documentation relating to ACH origination, including without
limitation,that each entry has been authorized by the Receiver(as such term is used in the Operating Rules of NACHA).
6. It is understood and acknowledged that retrieving and re-generating Designated Re-Process Files is a manual process for the Bank and is
performed as an accommodation to the Customer. Accordingly,the Bank shall not be liable to the Customer or any other person for any errors
or delays in connection with the services described herein unless such error or delay is the direct result of the Bank's gross negligence or
willful misconduct. To the maximum extent permitted by law, the Bank shall under no circumstances be liable for indirect, special or
consequential damages. The Customer shall indemnify and hold the Bank harmless from and against any and all loss, liability, damages,
costs or expenses,including attorneys'fees and costs,incurred in connection with this Agreement except to the extent due to the Bank's gross
negligence or willful misconduct.
7. The Customer shall pay the fees specified by the Bank for the services performed hereunder. Payment of such fees shall be effected by a
mutually agreed method.
PN:2797010 DOC ID:1
HII III - 3
DESIGNATION OPERSONS AUTHORIZED TO REQUEST
11RE-GENERATION OF ACH DICE
The undersigned, ,being the duly elected,qualified and acting of The City Of Santa Ana(the"Customer"),does hereby certify to JPMorgan
Chase Bank,N.A.(the"Bank"):
1. That each of the following persons(each,a"Designee")is designated by the undersigned to(a)request the Bank to retrieve, re-generate
and process a previously transmitted ACH credit or debit file on the terms provided in the Addendum to ACH Origination Service Terms for
ACH File Contingency Processing("Contingency Processing Agreement"),and(b)authorize the release of any such retrieved and re-
generated file.
2. That the signature appearing opposite each Designee's name is the true and genuine signature of such person,and that each Designee's
contact information is current and up-to-date at the date hereof. Each of the Designees is authorized to issue requests as provided in the
preceding sentence,all in accordance with the terms of the Contingency Processing Agreement.
NAME SIGNATURE TELEPHONE&CELL NUMBERS
(cel I)
(eel I)
(eel I)
3. That pursuant to the Customer's governing documents,as amended,the undersigned has the power and authority to execute this
Designation on behalf of the Customer,and that the undersigned has so executed this Designation this day of ,20
Signature:
Name:
Title:
PN:2797010 DOC ID:1
ONIMM
JRMC and Arnendmerit
T- 16-25(2078530. 1 )
Final Audit Report 2025-07-21
Created: 2025-07-21
By: Kristin Andrade(kandrade@santa-ana.org)
Status: Signed
Transaction ID: CBJCHBCAABAAeF2NX-M408-SJB07c4N-iZs5bORg4RPD
"JPMC Second Amendment to Agreement—Exhibit A - CAO sign
ed 7-16-25(2078530. 1 )" History
i Document created by Kristin Andrade (kandrade@santa-ana.org)
2025-07-21 -8:36:35 PM GMT
Document emailed to Alexander Trinidad (atrinidad a@@santa-ana.org)for signature
2025-07-21 -8:36:56 PM GMT
Email viewed by Alexander Trinidad (atrinidad@santa-ana.org)
2025-07-21 -9:12:14 PM GMT
g':'!� Document e-signed by Alexander Trinidad (atrinidad@santa-ana.org)
Signature Date:2025-07-21 -9:17:26 PM GMT-Time Source:server
Agreement completed.
2025-07-21 -9:17:26 PM GMT
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