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HomeMy WebLinkAbout2012 03 12 Consent 200 Requesting consideration of Contract with Bank of America for General Operating AccountCOMMISSION AGENDA ITEM 200 March 12, 2012 Regular Meeting REQUEST: Informational Consent X Public Hearings Regular KS City Manager BE Department The City Manager and Finance and Administrative Services Department are requesting that the Commission consider entering into a one year contract with Bank of America for continued service of the Winter Springs General Operating Banking Account and authorizing the City Manager and City Attorney to prepare and execute any and all applicable documents. SYNOPSIS: The City of Winter Springs opened its general operating account with the Bank of America more than 12 years ago. Currently, the City pays approximately $28,000 annually to maintain this account. The operating account is an interest bearing account earning approximately $7,500 annually. By entering into a one -year contract BOA is willing to reduce its fees by 12 %, saving the City approximately $3,400 per year. CONSIDERATIONS: Currently the City's Operating Account is an interest bearing account that is earning approximately $7,500 per year ($2.5 million daily balance x .30% interest rate). The total fees for the services provided by BOA are approximately $28,000 per year. These fees pay for services provided by BOA that include: check imaging, wire transfers, check clearing security (positive pay) and remote deposit services. BOA is offering a one year contract that will require a change in the status of the account from a cash interest - bearing account to a cash equivalent interest - bearing account. BOA will apply the "equivalent credit" in the same fashion and using the same index as the current cash interest is accrued /calculated (currently z 30 bsp). These credits will be used to Consent 200 PAGE 1 OF 2 - March 12, 2012 offset the fees that the bank charges. In addition, the bank will lower the current fee schedule by 12 %. This will generate an approximate savings of $3,400 over the term of the contract. FISCAL IMPACT: Commission consent to this agenda item will reduce banking fees for the General Operating Account by 12% or $3,400 over the next twelve months. COMMUNICATION EFFORTS: This Agenda Item has been electronically forwarded to the Mayor and City Commission, City Manager, City Attorney /Staff, and is available on the City's Website, LaserFiche, and the City's Server. Additionally, portions of this Agenda Item are typed verbatim on the respective Meeting Agenda which has also been electronically forwarded to the individuals noted above, and which is also available on the City's Website, LaserFiche, and the City's Server; has been sent to applicable City Staff, Media/Press Representatives who have requested Agendas /Agenda Item information, Homeowner's Associations/Representatives on file with the City, and all individuals who have requested such information. This information has also been posted outside City Hall, posted inside City Hall with additional copies available for the General Public, and posted at five (5) different locations around the City. Furthermore, this information is also available to any individual requestors. City Staff is always willing to discuss this Agenda Item or any Agenda Item with any interested individuals. RECOMMENDATION: The City Manager and Director of Finance and Administrative Services recommend that the Commission accept the recommendation to enter into a one -year contract with the Bank of America for banking services for the City's General Operating Account. In addition, it is recommended that authorization be granted to the City Manager and City Attorney to prepare and execute all required documents. ATTACHMENTS: Draft Fee Schedule Umbrella Agreement for Government Banking Services Consent 200 PAGE 2 OF 2 - March 12, 2012 City of Winter Springs, Florida Fee Schedule February 10, 2012 through January 31, 2013 AFP Code Service Description Unit Charge ACH Services 250302 ACH RETURN ITEM 1.5000 250000 ACH MONTHLY MAINTENANCE 15.0000 250501 ACH INPUT -FILE 10.0000 251070 ACH NOTIF OF CHANGE (NOC) 1.5000 259999 ACH STANDARD RPTS- ELECTRONIC 1.0000 250101 ACH CONSUMER ON US CREDITS 0.0800 250101 ACH CONSUMER OFF US CREDITS 0.0800 250100 ACH CONSUMER ON US DEBITS 0.0800 250100 ACH CONSUMER OFF US DEBITS 0.0800 250201 ACH CREDIT RECEIVED ITEM 0.0800 250200 ACH DEBIT RECEIVED ITEM 0.0800 250000 ACH POSITIVE PAY ACCT MAINT 35.0000 Account Reconciliation: 151350 CD ROM MAINTENANCE 25.0000 151351 CD ROM PER IMAGE 0.0250 151353 CD ROM DISK 10.0000 200301 ARP FULL RECON INPUT FILE 0.0000 200010 ARP FULL RECON MAINT -PPR SUPP 50.0000 200110 ARP FULL PPAY INPUT PER ITEM 0.0200 200301 ARP RECON TRANS END OF CYCLE 20.0000 150030 ARP PPAY MAINT -NO RECON 50.0000 159999 ARP PPAY NO RECON INPUT ITEM 0.0200 Deposit Services: 100000 BANKING CENTER DEPOSIT 1.0000 100007 QBD /NIGHT DROP DEPOSIT 0.7500 10001A CURR /COIN DEP /$100 - QBD -ND 0.0800 100012 CURR /COIN DEP /$100 -BKG CTR 0.0800 100501 DEPOSIT CORRECTION -CASH 5.0000 100400 RETURNS - CHARGEBACK 4.5000 10022Z CKS DEP UN- ENCODED ITEMS 0.1200 010000 ACCOUNT MAINTENANCE 10.0000 010306 DIRECT DDA STMT PER ACCT 10.0000 010020 ZBA MASTER ACCOUNT MAINT 35.0000 010021 ZBA SUBSIDIARY ACCOUNT MAINT 20.0000 151342 CHECK COPY 10.0000 010100 DEBITS POSTED - ELECTRONIC 0.0000 010101 CREDITS POSTED - ELECTRONIC 0.0000 Exhibit 1 to Umbrella Agreement Page 1 of 3 City of Winter Springs, Florida Fee Schedule February 10, 2012 through January 31, 2013 AFP Code Service Description Unit Charge 010310 DEPOSIT ACCOUNT STATEMENTS 0.0000 010600 GCS TRANSACTION HISTORY 0.0000 010310 FACSIMILE TRANSMISSION 0.0000 150102 GENERAL CHECKS PAID TRUNCATED 0.0800 Image Cash Letter: 100200 IMAGE DEPOSIT 0.5000 100229 IRD DEPOSITED ITEMS- ICL 0.0450 100229 IMAGE DEPOSITED ITEMS -ICL 0.0450 Information Reporting: 100520 MAIL NOTIFICATION- DCN -VLT 1.0000 400299 CPO ONLINE SUBSCRIPTION 0.0000 401000 CPO ACCELERATE 250.0000 400050 DIRECT PREVIOUS DAY ACCT 5.0000 151351 IMAGE RETRIEVAL 0.2500 400051 DIRECT PREVIOUS DAY STD ITEM 0.1100 PayMode Services: 251110 PAYMODE CON MTHLY LICENSE 125.0000 250800 PAYMODE CON TRANSACTION 0.1000 Wire Transfer Services: 359999 WIRE MODULE MAINTENANCE SVCS 0.0000 350103 ELEC WIRE OUT - DOMESTIC 7.0000 350300 INCOMING DOMESTIC WIRE 7.0000 350551 ELEC WIRE BK MNT TEMP STORAGE 0.7500 Fee Disclosure: Bank of America has endeavored to provide the City of Winter Springs with a comprehensive fee schedule based on your current services. Given the number of services and product options available to our clients, it is difficult to determine or anticipate all products and services that may be applicable to the City for future enhancements. Therefore, banking services utilized but not specifically referenced in this proposal will be charged for and appear on the City's monthly analysis statements. This fee schedule is contingent upon the City's conversion from interest bearing accounts to non interest bearing analysis accounts. Pricing for future enhanced services is often based on multiple factors and can often be more aggressively priced if we understand the total scope of services desired and the associated volumes. Therefore, it is most advantageous for the City to allow mutually negotiated pricing for enhanced solutions to be provided upon mandate and prior to set -up. Exhibit 1 to Umbrella Agreement Page 2 of 3 City of Winter Springs, Florida Fee Schedule February 10, 2012 through January 31, 2013 FDIC assessment is a pass thru charge and subject to change at any time. The Reserve Rate, historically at 10 %, is currently at zero, but subject to change without notice. Our ECR is a manage rate and will move directionally with the market and is subject to change without notice. The Earnings Allowance Rate (EAR) on your account is used to calculate your Earnings Allowance, which is based on your average investable balance. Your EAR may vary; and, at our discretion, we may change this rate at any time. When determining the EAR rate, Bank of America considers a number of prevailing market indicators. The Collected Overdraft Interest Charge Rate on your account is used to calculate your Collected Overdraft Interest Charge, which is based on your negative collected balance. The rate on your account may vary; and is subject to change. When determining this rate, Bank of America considers a number of factors and generally bases this rate on our Prime Rate plus a margin. The margin may change periodically. It is the responsibility of the City to review their monthly analysis statement and notify Bank of America of any discrepancies within 45 days of receipt of the analysis statements. Once the City contacts Bank of America, the discrepancies and /or additional charges can be reviewed and a mutually agreed upon price can be applied for these services. Additional information regarding pricing or fees may be obtained from your Bank of America representative. Supplies: Deposit supplies such as deposit slips, endorsement stamps and bags are provided at cost plus shipping and handling, and are subject to change without notice. These supplies can be ordered through our Client Services Center or a vendor of the City's choice. • Deposit tickets /slips vary depending upon type. The cost begins at $26. • Endorsement stamps (self- inking) start at $24. • Deposit bags (plastic, disposable, tamper- evident) vary according to style and size and are shipped 100 per box, starting at $24. • Coin and currency wrappers are shipped 1,000 per box, starting at $10. Exhibit 1 to Umbrella Agreement Page 3 of 3 Umbrella Agreement for Government Banking Services This Agreement for Government Banking Services (the "Agreement ") is made as of this day of 2012 between the Citv of Winter Springs (the "Client") and Bank of America, N.A., a national banking association. WHEREAS, the parties wish to enter into this Agreement for the purpose of specifying the term and constituent documents of the agreement between Client and Bank regarding the Services; NOW, THEREFORE, in consideration of the foregoing, and other good and valuable consideration, the parties hereby agree as follows: Inte agr ted Agreement The entire and integrated agreement between Client and Bank related to the Services shall consist of this Agreement and existing Bank's Treasury Terms and Conditions booklet (including user documentation and set -up forms). In the event of conflict among any of the preceding documents, such documents shall govern in the following order of precedence: (1) this Agreement, and (2) Bank's Treasury Terms and Conditions booklet (including user documentation and set -up forms). The integrated agreement supersedes all prior negotiations, representations, statements and agreements, whether written or oral, regarding the Services. 2. Commencement of Performance Except as otherwise agreed by the parties, Bank shall begin performing each Service upon execution and delivery of this Agreement, the pertinent service -level agreement and the related set -up forms. Bank shall continue to perform such Services during the term of this Agreement. Term This Agreement is for an initial term of one (1) year with attached Exhibit 1 Schedule of Fees (Fee Schedule). This Fee Schedule is effective on non interest bearing full analysis accounts only, until agreed otherwise in writing by both parties. The Agreement may be extended by mutual consent of the parties. 4. Notices Except as may otherwise be specified in the applicable service -level agreement or set -up form, notices to Client and Bank shall be sent to the addresses set forth below: Client: City of Winter Springs Bank: Bank of America. N.A. Attn: Glenna Thompson Treasury Management 101 E Kennedy Blvd., FL 5 Tampa, FL 33602 Changes in the respective address set forth above may be made from time to time by any parry upon written notice to the other parry. In witness whereof, the parties have executed this Agreement as of the date first written above. City of Winter Springs (CLIENT'S LEGAL NAME) By: Name: Title (Signature) (Print or Type) (Print or Type) Bank of America, N.A. (BANK NAME) By: (Signature) Name: Glenna S. Thompson (Print or Type) Title: Vice President (Print or Type) Page 1 of 1