Banking Services and Liquidity Facilities

NOTICE IS HEREBY GIVEN that the City of Modesto, County of Stanislaus, State of California (“City”), will receive proposals (each, a "Proposal") through its OpenGov Procurement portal from qualified Proposers (each, a “Proposer”) for the furnishing of Banking Services and Liquidity Facilities services (the “Services”) for the City of Modesto, Finance Department, Accounting Division.

The City of Modesto is seeking proposals for banking services from financially secure Federal or State chartered banking institutions that can offer the highest quality of service at the lowest overall cost to the City.

Modesto is the largest city in Stanislaus County and the northern San Joaquin Valley, with a population of approximately 219,000 persons. The city is located on State Route 99, which links it to other Central Valley cities, including Sacramento (82 miles north), Stockton (32 miles north), and Fresno (96 miles south). Rail service links Modesto to the greater region. Passenger service is available outside of Downtown Modesto at the Burlington Northern/Santa Fe Railroad’s (Amtrak) Lakewood East Station, in eastern Modesto. Modesto is also located adjacent to the Tuolumne River, which flows out of Yosemite National Park. The Tuolumne River Regional Park includes a parkway along the river. In combination with Dry Creek Regional Park, the city has extensive river access and excellent recreational opportunities, both regionally and locally.

The City’s primary banking relationship is currently maintained at Bank of Montreal (BMO). The City has determined that it is appropriate at this time to formally solicit proposals for its banking arrangements in order to establish a new contract, commencing in mid-2026. The City wishes to create efficiencies; make improvements, where possible; and take advantage of new, applicable technologies. The City intends to maintain all banking services with one financial institution to maximize cash flow and minimize administrative costs. As such, banking services proposals must include all services currently utilized by the City. Proposals for partial services or a different financial system will not be considered. This RFP does not cover any other services, such as custody services, certificates of deposit, investments, or bond trustee services.

In addition, the banking services firm selected will be required to provide liquidity support in the form of an irrevocable, direct pay Letters of Credit (LOC) or Standby Certificate Purchase Agreement (SCPA) for two outstanding variable rate debts.

• City of Modesto 2008 Lease Revenue Refunding Bonds (2008 LRBs), which were outstanding in the amount of $35,995,000 as of June 30, 2025. The new liquidity facility will need to be in place prior to the expiration of the existing LOC on June 08, 2026.

City of Modesto 2008A Water Refunding Revenue Certificates of Participation (2008A Water COPs), which were outstanding in the amount of $37,680,000 as of June 30, 2025. The new liquidity facility will need to be in place prior to the expiration of the existing SCPA on June 08, 2026.