Report to Mayor and City Council
Tuesday, October 18, 2016
Consent
SUBJECT:
Title
CONSIDER THE CITY'S INVESTMENTS WITH WELLS FARGO BANK & COMPANY (CITY COUNCIL)
Body
I. SUMMARY
On October 4, 2016, Councilmember Hilton requested that the city withdraw all funds invested with Wells Fargo Bank, in the wake of the recent scandal involving the alleged creation of over 2 million fake bank accounts by thousands of Wells Fargo employees. The City Attorney advised that this matter needed to be agendized in order to take an action therefore Councilmember Hicks requested this item be placed the agenda for consideration.
II. RECOMMENDATION
Recommendation
RECEIVE and FILE.
Body
III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
City Investments and Survey Results
The financial institutions the City of Carson currently banks with include: Bank of New York, East West Bank and Preferred Bank. Included as Exhibit No. 1 is a survey completed by city staff surveying other cities that bank with Wells Fargo asking if they plan to leave Wells Fargo and switch to another financial institution. Out of the 20 cities surveyed, 14 said no, they don't plan to leave, 6 said they are watching and waiting and zero said that they intended on leaving Wells Fargo.
CRA
As part of the Remedial Action Plan for the 157-acre property located at 20400 Main Street in Carson, a Design and Construction EAA Trust Agreement was made and entered into on April 13, 2009 by and between the Carson Marketplace LLC as Grantor; the Wells Fargo Bank National Association as Trustee; and Tetra Tech as Beneficiary. In accordance with the agreement, a trust account was established with an initial deposit of at least $79,347,714, a portion of which was received by Carson Marketplace LLC, from the now dissolved Carson Redevelopment Agency. The funds shall be used to fulfill the remediation of the property. As the owner of the property today the Carson Reclamatio...
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