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Council authorizes agreements with JPMorgan Chase for city banking and merchant services after competitive RFP
Summary
Following a year‑long RFP, the City Council authorized agreements with JPMorgan Chase for general banking, lockbox, merchant‑card processing and custodial services; the initial six‑year term was negotiated with fixed fees and a total compensation cap.
The City Council on Sept. 16 authorized the city manager to negotiate and execute agreements with JPMorgan Chase for general banking, lockbox, merchant‑card processing and custodial investment services following a city request for proposals. The contract authority was approved 9‑0 (one councilmember absent).
Finance Director Maria Oberg told council that three qualified banks responded to an RFP over the previous year — Wells Fargo (the incumbent), JPMorgan Chase, and US Bank — and that the evaluation committee selected JPMorgan based on overall scoring: local Bay Area teams, government experience, security and a robust online portal and merchant services. Staff emphasized negotiated contract terms: an initial six‑year term through June 30, 2032 with two two‑year options to extend to 2036; fixed fees for the initial term; and an overall compensation cap for the initial term not to exceed $13 million (annual funding subject to appropriation). The city attorney’s office and procurement staff said the agreements permit amendments for new/additional services and allow management of fee reallocations across described services.
No public comment was submitted on the banking contract and council approved the manager’s recommendation without modification. Staff said the change was intended to provide stability for customer services, payroll and merchant card processing and highlighted JPMorgan’s security investments and Bay Area presence.
Why this matters: Major city banking services are a routine but important infrastructure contract. Fixed pricing for a six‑year term can provide predictability for the city budget; the vendor change will require technical transition of payment portals and lockbox processing.
Implementation: The city manager is authorized to negotiate and execute the agreements and to exercise the contract options if funds are appropriated in future budgets. Finance said staff will manage the transition and communicate any customer‑facing changes to residents and vendors.
