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/JNNY IS�F <br />/ s <br />♦ � k <br />k <br />rS D pR <br />9j � I. : \Q �P <br />F . F 5 <br />c /"r OF S U N PNO <br />City of Sunny Isles Beach <br />18070 Collins Avenue <br />Sunny Isles Beach, Florida 33160 <br />305.947.0606 City Hall <br />305.949.3113 Fax <br />Norman S. Edelcup, Mayor <br />Isaac Aelion, Vice Mayor <br />Jeanette Gatto, Commissioner <br />Jennifer Levin, Commissioner <br />George "Bud" Scholl, Commissioner <br />Christopher J. Russo, City Manager <br />Hans Ottinot, City Attorney <br />Jane A. Hines, MMC, City Clerk <br />MEMORANDUM <br />TO: Mayor Norman J. Edelcup <br />City Commission <br />THROUGH: Christopher J. Russo, City Manager <br />FROM: Audra K. Curts - Whann, Finance Director <br />Tiffany Neely -Jean, Assistant Finance Director <br />DATE: June 4, 2014 <br />RE: Banking Services RFP Fact Finding Review <br />After reviewing the bank proposals from Citibank, TD Bank and SunTrust Bank, we <br />believe the information review supports the selection of TD Bank for banking services. <br />Both Citibank and TD Bank were in close consideration during our review process. <br />SunTrust was not considered a viable option due to higher compensating balances, <br />higher bank fees and a lower interest earnings rate on excess balances. Please see the <br />comparison analysis for each financial institution's fees and rates. <br />The recommendation to select TD Bank over Citibank is based upon the following: <br />Per the comparison analysis, TD Bank's fees are approximately 36% lower than <br />Citibank. As a result, TD Bank's compensating balance requirement to offset bank <br />fees is also lower than Citibank - $2.5 million versus $3.5 million. The primary <br />reason Citibank's fees are higher than TD Bank appears to be the passthrough of <br />the FDIC insurance costs to the City as deposit assessment fees at $0.1083 per <br />$1,000 of compensating balance required. TD and SunTrust do not specifically <br />label those fees as separate line items, although they may also be passing them <br />through in some form in their reduced earnings credit interest rates and /or lower <br />interest rates on excess balances. Research indicates rates for FDIC insurance <br />may vary from institution to institution, and the FDIC does not prohibit banks from <br />passing those fees on to their customers. However, the FDIC has stated they do <br />not wish for banks to show those fees as separate line item costs to customers — <br />they prefer to have the fees hidden in lower interest rates or higher fees of other <br />types. <br />