Item 12 Approval of Extension of the City of Ocoee’s Banking Services with Truist (Formerly SunTrust)114MY x1r,
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AGENDA ITEM COVER SHEET
Meeting Date: September 20, 2022
Item #
Reviewed By: "Avot"Ilc_
Contact Name: Rebecca Roberts De artment Directo
Contact Number: 1390 City Manager:
Subject: Extension of the City of Ocoee's Banking Services with Truist (FormerlySunTrust)
The City of Ocoee's contract with Truist expired August 31, 2022. The previous contract was a piggy -backing
relationship based upon The City of Ocala's contract.
In August 2022, the Finance Department negotiated with Truist to continue to piggy -back on Ocala's contract. In favor
of a four-year extension, Truist will offer 50 basis points on the City's compensating balance and 60% of the top end of
the Fed Fund Target range on all balances above the compensating balance. This represents a unique pricing
(interest rate) arrangement which ensures the City benefits from the variable nature of federal interest rates.
Issue:
Should the City Commission approve a four-year extension of banking services with Truist Bank, piggy -backing on the
City of Ocala's contract?
Recommendations:
Staff recommends the City Commission approve a four-year extension of banking services with Truist Bank, piggy-
backing on the City of Ocala's contract.
Attachments:
Truist, City of Ocoee extension agreement letter.
City of Ocoee, FL Signature Page
Financial Impact:
There is no financial impact at this time. Approval of the extension will result in favorable interest earnings for the City
of Ocoee.
Type of Item: (please mark with an 'Y)
Public Hearing
Ordinance First Reading
Ordinance Second Reading
Resolution
X Commission Approval
Discussion & Direction
For Clerk's Dept Use:
Consent Agenda
Public Hearing
Regular Agenda
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by ( )
N/A
N/A
N/A
PA
August 25, 2022
Rebecca Roberts
150 N Lakeshore
Drive
Ocoee, FL 34761
RE: Banking Extension Agreement for Banking Services between the City of Ocoee ("the
City") and Truist Bank ("Truist") effective September 1, 2022, piggyback of City of Ocala's Banking
Services Agreement.
Dear Mrs. Roberts:
Thank you for continuing to choose Truist for your deposit and treasury services. We appreciate the
opportunity to maintain a meaningful partnership with you over the coming years. Truist Bank(the
"Bank") is pleased to offer the City of Ocoee (the "City") an extension o the banking services contract
between the City and Truist Bank, effective September 1, 2022, for a forty eight (48) month term
through August 31, 2026. The rates and pricing disclosed herein will apply to all applicable deposit and
group accounts.
Earnings Credit Rate (ECR): 50 basis points (bps)
Underteterms of the City of Ocala's agreement, the Citywill earn 50bps as the Earnings Credit Rate
applied to the compensating balance.
Interest Rate:
For balances above the compensating balance required to offset fees,Truist will payan interest rate equal
to 60% of the top end of the Fed Fund Target range. This rate is offered through August 2026, after
which the interest rate will be a managed rate and subject to change. During the committed term,
interest rate changes will be effective the following month after a Fed Fund rate move; these changes
will occur without notice.
The pricing detailed in the attached pro forma and glossary includes the service description and unit cost
of the services. Your Account Analysis statement will show the actual volumes and associated charges
from use of the services, in addition to other charges for services utilized that may have been previously
disclosed. Changes to treasury services fees are applied to the entire month in which they are effective.
Treasury services fees will be debited as one lump sum the month after transactions occur and will
appear on your bank statement as Service Charges — Prior Period. Account Analysis statements are
available by mail or electronic delivery methods.
Please see attached, a new Treasury Management Master Agreement that must be signed by the City.
Thank you fortheyears ofshared business. We lookforward to continuing tostrategizewith your team to
structure innovative solutions to best position the City for the ever changing business and economic landscape
with which we arefaced.
•
Brian S. Orth
Senior Vice President Government Banking, Truist Bank
Accepted and agreed to this _
day of .202
By:_
Name:
Title:
Attached:
Treasury Management Master Agreement
Pricing Proforma
Pricing Proforma Glossary
CITY OF OCOEE SIGNATURE PAGE FOR
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TRUIST WJVY
APPROVED:
ATTEST: CITY OF OCOEE, FLORIDA
Melanie Sibbitt, City Clerk Rusty Johnson, Mayor
(SEAL)
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
this day of 52022
SHUFFIELD, LOWMAN & WILSON, P.A.
I=
Scott A. Cookson, City Attorney
DATE:
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD
ON 2022
UNDER AGENDA ITEM NO.