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Ferndale moves banking services to Huntington Bank citing lower fees
Summary
Staff recommended awarding the city's banking services contract to Huntington Bank after an RFP; finance staff estimated annual banking fees would drop from about $72,000 to roughly $25,000 and said Huntington will waive some fees during implementation; council approved the award by roll call.
City finance staff presented the results of a request for proposals for municipal banking services and recommended awarding the contract to Huntington Bank NA.
Staff said the city had five respondents to the RFP and chose Huntington based on government banking experience, implementation support and lower fees. The presentation included a comparison of annual banking fees: current annual banking fees were described as roughly $72,000 under the existing Comerica relationship; switching to Huntington was estimated to reduce that expense to about $25,000 annually. Staff also said Huntington agreed to waive certain treasury fees for the first months of implementation to ease the transition.
Officials noted that the former Comerica lockbox used for some payments was closed in favor of municipal processing to avoid delays and that staff expect to scan and import payments internally. The move to Huntington will be implemented while Comerica remains open for a transition period to ensure payments (including summer tax payments) are not disrupted.
Council approved the motion to award banking services to Huntington Bank by roll call.
