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One year after expressing exasperation at Royal Bank of Canada for pulling out of downtown Sault Ste. Marie, city officials are preparing to take their banking business elsewhere.
City council will be asked Monday to approve transferring the city's accounts to the Bank of Nova Scotia for an initial term of five years, with an option for a second five-year term if both parties agree.
Royal Bank of Canada (RBC) has been the city's main supplier of banking services since 1987.
The last request for proposals for banking services was issued by the city two decades ago.
City council directed staff last year to start the lengthy process of issuing a new request for proposals.
"There are five major banks in Canada," Matthew Shoemaker, then a Ward 3 councillor, said at the time.
"All of the other major banks have a branch downtown. I think those are the banks that should receive our support," Shoemaker said.
"Royal Bank has shown they are not committed to our downtown. Therefore, I don't believe that we should be committed to them, for that reason."
This year, the city received proposals from four financial institutions:
- Bank of Montreal
- Toronto Dominion Bank
- RBC Royal Bank
- Bank of Nova Scotia
"It is the consensus of the evaluation committee that the proponent scoring the highest in the evaluation process is The Bank of Nova Scotia," says Karen Marlow, the city's manager of purchasing, in a report prepared for Monday's city council meeting.
"The changeover will be a labour-intensive process and require significant staff time," she says.
"The Bank of Nova Scotia is prepared to provide reimbursement towards reasonable and documented transition related costs.
"Banking service fees have been waived for day-to-day transactions as set out in our chart of fees within the request for proposals for this term.
"Note that the level of fees is based upon our historical bank balance and can be impacted if the level decreases by more than 15 per cent.
"Deposit interest revenue varies depending upon prime rate climate in Canada and funds held. ScotiaBank has provided a very competitive deduction on prime rates related to interest on city accounts," Marlow said.
Monday's city council meeting will be livestreamed on SooToday starting at 4:30 p.m.