THE CORPORATION OF THE CITY OF PORT COQUITLAM

TO: B. Kirk, August 04, 1987

City Administrator.
J. Fraser,

FROM: Administration Committee Deputy Treasurer~
Collector.

SUBJECT: City's Banking Arrangements

RECOMMENDATTON :

That the City continue to use the Canadian Imperial Bank of Commerce for banking
services.

BACKGROUND & COMMENTS : '

The City has for the past five years had our accounts with the Bank of Commerce
and has recently requested proposals from all financial institutions within the
City. .

The submissions received show that the Bank of Commerce has proposed the best
overall arrangement for the City. Banks incur costs for providing the services
they give. This cost is normally paid by the City either by way of a direct fee
or by the City providing a sum of money on which no interest will be paid
(compensating balance) the proposal from the Bank of Commerce calls for the bank

to waive most of these charges.

Listed below are details of the proposals received from the banks:

Canadian Imp. Bank of Toronto Bank of Royal
Bank of Comm. Montreal Dominion ‘B.C.

Payment of interest on account All proposals were identical interest to be paid
at bank prime less 2.5% on average balance.

Fee to City for basic services $0 $350 ' $250 $430 $180

Cost to City for:
Pre~authorized tax payments
based on 19% (1,000)

participants

Safekeeping of investments

based on three transactions
per month 0 150 210 90 210

Total monthly cost $80 $750 $560 $550 $460

The fee for basic services is to cover the cost of processing deposits, cheques
drawn on accounts, supplying cash and coin, processing stop payments, handling.
returned cheques, certifying cheques, preparation of statements, there are also
some other services included which are not normally used by the City.

All other financial institutions within the City declined to submit a proposal.

e“Tait land