City Council Work Session

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Meeting Date:	03/14/2023
From:	Rick Tadder, Management Services Director
Department:	Management Services
Co-Submitter:

TITLE:

Council Discussion on Petition to Flagstaff City Council titled: Climate Emergency: Stop the Money Pipeline.

DESIRED OUTCOME:

Discussion related to the City's banking contract with Wells Fargo specific to the petition request.
Allow staff to continue to manage our banking services under the procurement requirements in order to remain compliant with the Procurement Code as adopted by City Council.

EXECUTIVE SUMMARY:

On May 17, 2022, City Council discussed the Petition to Flagstaff Council titled Climate Emergency: Stop the Money Pipeline. The petition states: "We request that the Flagstaff City Council instruct the City’s financial managers to move the City’s banking from Wells Fargo, one of the world’s top financiers of the fossil fuel industry, to a Community Bank or Credit Union." At that meeting at least three City Councilmembers agreed to have further discussion.

City staff will inform City Council about the Wells Fargo banking services, Wells Fargo's commitment to Climate Action, and Wells Fargo as a community bank.

INFORMATION:

On December 17, 2021, the City entered into a Cooperative Purchase Contract, No. 202-47, with Wells Fargo Bank for banking services. The City utilized a Cooperative Purchasing Agreement (#B20-01-030) which was procured by Navajo County to supply materials and/or services, and was awarded through a competitive and open procurement process. The City has authority to enter into a cooperative purchase contract with Wells Fargo utilizing the Agency Contract pursuant to Arizona law. The term of the Cooperative Purchase Contract is for an initial term through June 30, 2023 with options for two one-year extensions.

The City chose to enter into this banking services contract with Wells Fargo due to the outstanding services that have been provided to the City for over three decades. As the City has grown over the decades, Wells Fargo has been able to provide the adjust and add services a government needs to run their finances. They have also been a partner in looking at City business practices and make recommendations to improve our management of financial transactions. We hope to continue this strong partner for many years.

Attachments
Petition: Climate Action: Stop the money pipeline
Cooperative Contract for Banking Services
Presentation
CO2eMission Executive Summary
CO2eMission Methodology
Wells Fargo Task Force Climate Disclosure
Community Letter
Wells Fargo Environmental Social Governance Report - September 2022