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<br />- <br /> <br />Preview <br /> <br />Page 1 of2 <br /> <br /> <br />City of Sunny Isles Beach <br />18070 Collins Avenue <br />Sunny Isles Beach, Florida 33160 <br /> <br />(305) 947-0606 City Hall <br />(305) 949-3113 Fax <br /> <br />MEMQRANDUM <br /> <br />TO: <br /> <br />The Honorable Mayor and City Commission <br /> <br />FROM: <br /> <br />Douglas Haag, Assistant City Manager-Finance <br /> <br />DATE: <br /> <br />10/15/2009 <br /> <br />RE: <br /> <br />AGREEMENT WITH BANK OF AMERICA FOR BANKING <br />SERVICES <br /> <br />RECOMMENDATION: <br /> <br />Approve the attached resolution and agreements with Bank of America, establishing <br />Bank of America as the City's primary depository and financial institution. <br /> <br />REASONS: <br /> <br />Earlier this year the City entered into an agreement with Bank of America for a $20 <br />million loan to be repaid over 20 years. As part of that commitment the City agreed to <br />establish and maintain a minimum depository of $5 million. The most efficient way to <br />accomplish this over the long term is to consolidate our current banking arrangements <br />with SunTrust and Colonial at Bank of America. Bank of America has a branch office in <br />Sunny Isles Beach and was the only bank with a local presence to respond to that loan <br />request. <br /> <br />To accomplish this, we are recommending that the city 'piggyback' on an RFP that the <br />Village of Wellington awarded to Bank of America in December, 2008. We have <br />reviewed the RFP and accompanying documents and determined that the services <br />available from Bank of America will meet the requirements of the City now and into the <br />future. <br /> <br />The estimated cost of $687.02/month of providing the same level of services is slightly <br />less than what the City is currently paying to SunTrust and Colonial Bank combined - an <br />average of $782.81/month. Additional savings of approximately $5,000/year will be <br />realized because Bank of America's fees for processing credit card payments (i.e. parking <br />meter and CHS fees) is less than the city is currently paying. Finally, Bank of America <br />charges separately for FDIC insurance (13 basis points as of January 1, 2009) while <br />Colonial Bank netted it out of the interest rate they paid the City on our accounts. <br /> <br />http://sibagenda.sibfl.net/agenda/Preview.aspx?I temID= 1 08&MeetingID=0&MeetingDate... 10/7/2009 <br />