TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Exercise Banking Services Contract Option
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to exercise the second one-year option to extend the general banking services contract with Bank of America from June 1, 2023, through May 31, 2024.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
The District has an interest in achieving financial stability and resiliency by continuing a well-established banking relationship that has provided high-quality solutions and capabilities.
BUDGETARY/FISCAL IMPACT:
Bank of America provides the District with comprehensive banking services. Due to the higher earnings credit allowance, current fiscal year's estimated annual cost is $0. The estimated cost is expected to remain at $0 for the upcoming fiscal year as well.
BACKGROUND/RATIONALE:
Staff wishes to exercise the second one-year option for comprehensive banking services with Bank of America. This extension is necessary due to the ongoing need for centralized banking service for all of the District's operational accounts. Bank of America currently handles all matters concerning the District's operational accounts including Payroll, Pension, Accounts Payable, and Workers' Compensation along with a main concentration account which is used to aggregate funds and facilitate settlement of transactions.
ADVANTAGES/DISADVANTAGES:
The requested action is in compliance with Board Policy, 465, Section V.A.7. and Federal Transit Administration (FTA) guidance regarding exercising contract options (4220.1F Chapter V, 7, -a- (1). Exercising the second one-year option to extend the contract would provide an opportunity to receive comprehensive banking services at...
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