Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
OCTOBER 18, 2023
Subject
SUBJECT: BANKING SERVICES
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATIONS
Title
AUTHORIZE:
A. the Chief Executive Officer to execute a five-year, firm fixed unit rate Contract No. PS99982000 to Bank of America, N.A. for basic and specialized banking services, in an amount-not-to-exceed $5,098,207 effective January 1, 2024, subject to resolution of protest(s), if any; and
B. the payment of up to $650,000 over the next five years for Federal Deposit Insurance Corporation (FDIC) for assessment fees as mandated by 12 C.F.R. ? 327.9 to cover insurance premiums for Metro's deposits. These pass-through FDIC assessment fees shall be payable under Contract No. PS9982000, for a total contract price not-to-exceed $5,748,207.
Issue
ISSUE
Metro's current banking services contract expires on December 31, 2023. Metro requires basic and specialized banking services such as demand deposit accounts, safekeeping services, daily balance reporting, check processing, wire transfers, Automated Clearinghouse (ACH) and Electronic Fund Transfer (EFT) payments, and specialized services, including vault currency counting and custody services to manage cash more efficiently and enhance the capabilities of Metro's internal financial information system.
Background
BACKGROUND
Banking services are a critical component to effectively manage and control Metro's financial assets and transactions (e.g., vendor invoice payments, payroll, and revenue collection, among many) that support daily operations and projects. This contractor will provide seamless financial services. such as payment processing for payroll, ACH/EFT accounting payments, wire transfer processing, check printing, coin/currency services, and lockbox deposits.
Based on historical FY23 data, Metro forecasts processing a monthly average of $590 million in incoming funding and an average of $590 million in outgoing payments t...
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