The URL can be used to link to this page

Home My WebLink AboutItem #06 Approval of the City of Ocoee’s Banking Services with SunTrust and Piggy-Backing on the City of Ocala’s Contract with SunTrust 149/0" ocoee florida AGENDA ITEM COVER SHEET Meeting Date: August 21, 2018 Item # �p Reviewed By: Contact Name: Rebecca Roberts Department Director: do s o . .., �,.� _ . - Contact Number: 1390 City Manager: Subject: Extension of the City of Ocoee's Banking Services with SunTrus and Piggy-backing on the City of Ocala's Contract with SunTrust Background Summary: The City of Ocoee's contract with SunTrust will expire August 31, 2018. The existing contract was a piggy-backing relationship based upon Marion County's contract. Marion County's contract has expired; however, SunTrust has agreed to allow the City to extend our banking services for one year by piggy-backing on the City of Ocala's newly extended contract (Contract #FIN 14-005). The City of Ocala's contract provides several benefits over the Marion County contract. Specifically, the new contract will result in lower treasury service charges as well as an improved ECR of.75% versus .5% and an interest rate of 1.25% versus .15%. At the City's current cash levels, this may result in an estimated increase of$71,000 in monthly interest earnings; $860,000 annually. 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 in the next fiscal year. Issue: Should the City Commission approve a one year extension of banking services with SunTrust Bank, with an additional one year renewal option, by piggy-backing on the City of Ocala's existing contract? Recommendations: Staff recommends the City Commission approve a one year extension of banking services with SunTrust Bank, with an additional one year renewal option, by piggy-backing on the City of Ocala's existing contract, and authorize the Mayor and City Clerk to execute the extension agreement. Attachments: SunTrust, City of Ocoee Mirrored Banking Solution Agreement with fee schedule City of Ocala Contract Amendment#FIN 15-005 • 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'2 Public Hearing For Clerk's Dept Use: Ordinance First Reading )( Consent Agenda Ordinance Second Reading Public Hearing 1 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 S7 TGT Brian S.Orth 200 S.Orange Avenue,Suite 600 V X71 Senior Vice President Orlando,Florida 32828 Tel 407-237-6764 Brian.orth@suntrust.com August 1,2018 Rebecca Roberts Finance Director City of Ocoee 150 N. Lakeshore Drive Ocoee,FL 34761 RE:City of Ocoee Mirrored Banking Solution Dear Mrs.Roberts SunTrust Bank (the "Bank") is pleased to offer the City of Ocoee ("Ocoee" or the "City") an extension of the banking services between the City of Ocala and SunTrust Bank on April 1, 2018. This extension of banking covers a period of approximately one year (ending August 1, 2019) (the "Ocala Extension"), with an optional one year extension (ending August 1, 2020). Under terms of the Ocala Extension, the City will earn interest of 75 bps or 0.75%, applied to the compensating balance. For balances above the compensating/ target balance, SunTrust will pay an interest rate of 125bps or 1.25%. The aforementioned rates will be considered the floor for the duration of the Agreement. Service prices will match those in the Ocala Extension and have been attached to reflect your line items pricing under the Ocala Extension. No change is needed to the Treasury Management Master Agreement,already on file with SunTrust.A signed or email approval from the City Manager or Finance Director of this letter is sufficient to effect this change on behalf of SunTnast and the City. 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, Authorized Signer: Brian S.Orth Senior Vice President Government Banking SunTrust Bank QALA CONTRACT# FIN/14-005 FIRST AMENDMENT OF AGREEMENT FOR BANKING SERVICES Upon execution of this document, the following amendment will become part of the "Original Agreement" executed on March 17, 2015 between the parties, the CITY OF OCALA, a Florida municipal corporation ("City"), and SUNTRUST BANK, a Florida registered, foreign Georgia corporation (EIN# 58-0466330), with offices at 76 South Laura Street, Jacksonville, Florida 32202 ("SunTrust or "Vendor"). The Original Agreement is amended as follows: 1. RENEWAL. The parties agree to renew the Agreement for the term below: April 1, 2018 to April 30, 2020 2. EARNED INTEREST. The special earnings interest minimum rate is 75 bps or .75%, applied to the compensating balance. For balances above the compensating/target balance, SunTrust will pay an interest rate on the excess balance of 125 bps or 1.25%. The aforementioned rates will be considered the floor for the duration of the Agreement. The City can request a rate change due to future increases in the federal funds target rate. 3. PUBLIC RECORDS. The SunTrust shall comply with all applicable provisions of the Florida Public Records Act, Chapter 119, Florida Statutes. Specifically, the SunTrust shall: A. Keep and maintain public records required by the public agency to perform the service. B. Upon request from the public agency's custodian of public records, provide the public agency with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in Chapter 119, Florida Statutes, or as otherwise provided by law. C. Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law for the duration of the contract term and following completion of the contract if the SunTrust does not transfer the records to the public agency. D. Upon completion of the contract, transfer, at no cost, to the public agency all public records in possession of the SunTrust or keep and maintain public records required by the public agency to perform the service. If the SunTrust transfers all public records to the public agency upon completion of the contract, the SunTrust shall destroy any 1 0 ALA CONTRACT# FIN/14-005 duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If the SunTrust keeps and maintains public records upon completion of the contract, the SunTrust shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the public agency, upon request from the public agency's custodian of public records, in a format that is compatible with the information technology systems of the public agency. IF THE SUNTRUST HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE SUNTRUST'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT: CITY OF OCALA, OFFICE OF THE CITY CLERK; 352-629-8266; E-mail: clerk@ocalafl.org; City Hall, 110 SE Watula Avenue, Ocala, FL 34471. 4. NOTICES. All notices, requests, consents and other communications required or permitted under this agreement shall be in writing (including faxed communication) and shall be (as elected by the person giving such notice): (a) hand delivered by messenger or courier service; (b) faxed, or (c) mailed by Registered or Certified Mail (postage pre-paid), Return Receipt Requested; addressed as follows or to such other addresses as any party may designate by notice complying with the terms of this paragraph: a. If to City: Tiffany L. Kimball, Contracting Officer City of Ocala, City Hall 110 SE Watula Avenue Ocala, FL 34471 E-Mail: tkimball@ocalafl.orq PH: 352-629-8366 FAX: 352-690-2025 b. With a copy to: Patrick G. Gilligan, Esquire Gilligan, Gooding, Franjola & Batsel, P.A. 1531 SE 369' Avenue Ocala, FL 34471 E-Mail: pgilligan@ocalalaw.com PH: 352-867-7707 FAX: 352-867-0237 2 OALA CONTRACT# FIN/14-005 c. If to SunTrust: Lisa Hayes, Senior Vice President SunTrust Bank 76 South Laura Street Jacksonville, FL 32202 E-mail: lisa.hayes@suntrust.com PH: 904-632-2599 5. AGREEMENT. Except what pertains to this Amendment, all terms and conditions of the Original Agreement will remain in full force and effect and likewise apply to this Amendment. IN WITNESS WHERE F, the pa 'es hereto have set their hands by their duly authorized agents this / 7 day of , 2018. ATTEST. CITY OF OCALA: ii r ••J. f ? AA„,,,9.0,4 �. J. obs Mattheardell J City Clerk City Council President APPROVED AS TO FORM AND LEGALITY: SUNTRUST BANK i „_- 'a. ick G. Gilligan Nick Ferrer City Attorney Vice President r-t > ?. gi ,r --tom )— `••.` .0 ,_ '',_!'::',.(,,,u-4-.0.,;,4-, * ° ,f - .; . , B CIT` COUN ,,,..,_\,--�c w�T4i ,..4: , �1 ( -7 ao THE CITY CLERK