title
Resolution Awarding Banking Services Contract to Bank of America for a Five-Year Period Beginning May 1, 2025
body
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Department: |
Finance |
Meeting Date: |
3/18/2025 |
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Contact Name: |
Michael Pirsch |
Public Hearing: |
No |
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Contact Phone: |
910-342-2771 |
Advertising Date/Advertised By: |
N/A |
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Attachments: |
Attachment #1: Resolution |
PURPOSE:
The purpose of this resolution, introduced by Mayor Pro Tem Clifford D. Barnett Jr., Chairperson of the Audit Committee, is to authorize the award of the City's banking services contract to Bank of America for a five-year period, beginning May 1, 2025.
BACKGROUND:
The City’s current contract for banking services is with Bank of America, and expires April 30, 2025. In January 2025, the City solicited proposals (“RFP”) for banking services for a 5-year period, with optional extensions for up to 2 additional five-year terms, with mutual consent of both parties and City Council. A total of eight banks responded to the City's RFP. The lowest cost and highest overall net earnings proposal was submitted by Bank of America.
The annual service charges based on their proposal, at current volumes, would be approximately $28,280 per year. Projected interest earnings on account balances are estimated to exceed the costs by $179,000 per year. Additionally, in the first year, a $12,000 loyalty incentive fee credit is proposed, lowering the first year estimated service charge to $16,280, and increasing the amount of interest earnings over costs to $191,000. On March 3rd, the Audit Committee met with the Finance Director and concurred with the recommendation to award the banking services contract to Bank of America.
BUDGET IMPACT:
Sufficient funding already exists in the FY25 budget. The total amount of the contract for 5 years is estimated at $129,400.
RECOMMENDATION / ACTION REQUESTED:
Passage of the attached Resolution is recommended.