Approve a contract amendment with Citizens Business Bank, Inc. to continue providing banking services through August 31, 2026, in the amount of $75,000, for a revised not-to-exceed contract amount of $450,000.

TO: LINDA REICH, CITY MANAGER FROM: KIM SAO, DIRECTOR OF FINANCE SUBJECT title Contract Amendment - Banking Services. end RECOMMENDATION Approve a contract amendment with Citizens Business Bank, Inc. to continue providing banking services through August 31, 2026, in the amount of $75,000, for a revised not-to-exceed contract amount of $450,000 and authorize the City Manager to execute all necessary documents on behalf of the City. body FISCAL IMPACT The cost of banking services fluctuates based on transaction volume and service utilization. The projected cost for the amendment period is approximately $75,000. Sufficient funds have been appropriated in the Fiscal Year 2025-26 budget and will be incorporated into future budgets. CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above furthers the City's values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering: * Financial Stability * Responsible Long-Range Planning Revenue: Click or tap here to enter text. Expenditure: 1003000-43515 Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. BACKGROUND The City of Chino has maintained a long-standing banking relationship with Citizens Business Bank (CBB) since 2000 through multiple competitive procurement processes. Most recently, on March 21, 2023, the City Council approved a banking services agreement utilizing competitively bid pricing obtained through a cooperative agreement. The current agreement is scheduled to expire in February 2026. CBB provides the City's core depository, treasury management, and merchant processing services. The City is satisfied with CBB's performance, service levels, and familiarity with municipal banking requirements. CBB has consistently demonstrated reliability, financial stability, and responsiveness in supporting the City's financial operations. As the current agreement approaches expiration, staff believes it is prudent to conduct a formal competitive solicitation for banking services. While there are no identified deficiencies with the City's existing provider, issuing a Request for Proposals will allow the Finance Department to evaluate market conditions, assess available service models and technologies, and confirm the competitiveness of current pricing. This process will ensure the City is positioned to make a fully informed long-term banking decision. ISSUES/ANALYSIS A competitive solicitation process requires adequate time for RFP development, vendor response, evaluation, interviews, and transition planning. To ensure uninterrupted banking operations during this period, staff recommends a six-month extension of the existing agreement with Citizens Business Bank in the amount of $75,000, for a revised not-to-exceed contract amount of $450,000. Extending the agreement will allow the City to maintain stable banking operations while completing a thorough and deliberate evaluation of available banking service options. This approach ensures continuity of service, mitigates operational risk, and positions the City to make a fully informed long-term banking decision. Attachments: Citizens Business Bank Contract Amendment Citizens Business Bank Pricing Sheet