HomeMy WebLinkAboutItem 04 Approval of Extension of the SunTrust Banking Services Agreement 1:&014"
Ocoee
florida
AGENDA ITEM COVER SHEET
Meeting Date: April 16, 2019
Item # 'y
Reviewed By:
Contact Name: Rebecca Roberts Department Director: kg,!, Ar,
Contact Number: 1390 City Manager: ///
Subject: Extension of the City of Ocoee's Banking Services with SunTrust
Background Summary:
The City of Ocoee's contract with SunTrust will expire August 31, 2019. The existing contract is a piggy-backing
relationship based upon The City of Ocala. In August of 2018, the Commission approved extending the City's banking
relationship with SunTrust for one year with a one-year renewal option to allow the City to negotiate its relationship
with SunTrust or to issue a solicitation for banking services.
In March 2019, the Finance Department negotiated with SunTrust to secure an increase in interest rates. In favor of a
two-year extension, SunTrust agreed to offer 1.50% on the City's compensating balance as well as all balances above
the compensating balance. This represents a .75% increase on the compensating balance and .25% increase over
the current rate of excess funds.
Further, SunTrust agreed to offer an additional one-year renewal option.
This extension of services will allow the City to review and negotiate its relationship with SunTrust or issue and
evaluate a solicitation for banking services.
Issue:
Should the City Commission approve a two-year extension of banking services with SunTrust Bank, with an additional
one-year renewal option?
Recommendations:
Staff recommends the City Commission approve a two-year extension of banking services with SunTrust Bank, with an
additional one-year renewal option, and authorize the Mayor and City Clerk to execute the extension agreement.
Attachments:
SunTrust, City of Ocoee extension agreement letter.
Financial Impact:
There is no financial impact at this time. Approval of the extension could result in favorable interest earnings for the
City of Ocoee.
Type of Item: (please mark with an "x')
Public Hearing For Clerk's Dept Use:
1
Ordinance First Reading X Consent Agenda
Ordinance Second Reading Public Hearing
Resolution Regular Agenda
X Commission Approval
Discussion &Direction
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney N/A
Reviewed by Finance Dept. N/A
Reviewed by ( ) N/A
2
00,00
Su RUST Brian S.Orth 200 S.Orange Avenue,Suite 600
V�7 Senior Vice President Orlando,Florida 32828
Tel 407-237-6764
Brian.orth@suntrust.com
April 8,2019
Mrs.Rebecca Roberts
Finance Director
City of Ocoee
150 North Lakeshore Drive
Ocoee,FL 34761
RE:City of Ocoee Banking Extension
Dear Mrs. Roberts
SunTrust Bank (the "Bank") is pleased to offer the City of Ocoee (the "City") an extension of the banking
services to begin upon the expiration of the existing banking contract (August 1, 2019) for another two years,
(the "Extension") with additional one year options available to the City, each year thereafter (the "One Year
Extension Option"). Under terms of the Extension, the City will earn credit of 150 bps or 1.50%, applied to the
compensating balance. For balances above the compensating/target balance, SunTrust will pay an interest rate
of 150bps or 1.50%. The aforementioned rates will become effective beginning the month the signed extension
is received by the bank and will be reviewed by the client and bank on an annual basis and will serve as your
floor rate during the period of the Extension. The rate may be increased or decreased based on the prevailing
economic market conditions and mutual agreement in writing or email between both parties for additional One
Year Extension Option's. No change is needed to the Treasury Management Master Agreement, already on file
with SunTrust.
Thank you for the years of shared business. We look forward to continuing to strategize with your team to
structure innovative solutions to best position the City for the ever changing business and economic landscape
with which we are faced.
Yours sinceAuthorized Signer:
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Brian S.Orth
Senior Vice President
Government Banking
SunTrust Bank