HomeMy WebLinkAboutItem 06 Approval of an Extension of the City of Ocoee’s Banking Service with SunTrustContact Name:
Contact Number:
Ocoee
Florida
AGENDA ITEM COVER SHEET
Meeting Date: August 17, 2021
Item # 6
Rebecca Roberts
1520
Reviewed By:
Department D
City Manager:
Subject: Extension of the City of Ocoee's Banking Service with SunTrust
Background Summary:
The City of Ocoee's contract with SunTrust will expire in August of 2021. The existing contract is a piggy-
backing relationship based upon The City of Ocala. In August of 2019, the Commission approved extending the
City's banking relationship with SunTrust for two year to allow the City to negotiate its relationship with SunTrust
or to issue a solicitation for banking services.
The SunTrust agreed to offer an extension of the banking services for another year. Under the extension, the
City will receive 0.20% on the compensating balance and 0.02% on the balances above the compensating
balance.
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 one-year extension of banking services with SunTrust Bank, with an
additional one-year renewal option?
Recommendations
Staff recommends the City Commission approve a one-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.
Type of Item: (please mark with an `k )
Public Hearing For Clerk's Dept Use:
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.
Reviewed by Q N/A
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June 15, 2021
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, 2021) for another year (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 20 bps or 0.20%, applied to the compensating balance.
For balances above the compensating / target balance, SunTrust will pay an interest rate of 2bps or 0.02%. Pricing
will remain fixed for the term of the extension. Under terms of the Extension, earnings credits will be applied as
compensating balances to offset service fees. Excess balances not required to offset fees will earn interest, based
on managed rates. Rates may be increased or decreased based on the prevailing economic market conditions. 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 sincerely,
i
Brian S. Orth
Senior Vice President
SunTrust now Truist
Authorized Signer: