Finance and Management Services
www.santa-ana.org/finance
Item # 19
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 SANTA ANA 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
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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
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Submitted By: Alex Trinidad, Executive Director, Finance and Management Services Agency
Approved By: Alvaro Nuñez, City Manager