The city of Los Angeles paid out a total of $618 million to its various banking services vendors during the fiscal year ended June 30, by far the greatest portion of the $1.02 billion paid to the Top 25 private city vendors.
With $415 million in fees, this year's No. 1 city vendor, Bank of America, took the lion's share of those funds, accounting for 41 percent money received by the Top 25.
Construction spending was a distant second, with $124.2 million spent on the sector, or 12.2 percent of the total funds on the list. Kenny/Shea/Traylor/Frontier Kemper Joint Venture received the largest piece of the construction funds pie, with $77.2 million for the ongoing construction of Northeast Inceptor Sewer tunnel project.
The city spent $101.8 million with outside vendors for health care for city employees. Kaiser Foundation Health Plan was the leading health plan vendor in the period, receiving $58.8 million, followed by Blue Cross at $22.5 million and Cigna at $20.5 million.
Bank of America
In booking $415 million worth of treasury management business from Los Angeles, Bank of America was the city's largest private vendor in fiscal 2002.
Bank of America accounts for 40.9 percent of the total funds received by the Top 25 city vendors during the year ended June 30. No. 2 on the list is construction contractor Kenny/Shea/Traylor/Frontier Kemper Joint Venture.
Bank of America has been the city's primary treasury management bank since 1995, with a continuous relationship with the city since 1913. Under the general category of treasury management, Bank of America provides three main services to the city, including investment, cash management and corporate banking.
The Charlotte, N.C.-based institution is the third largest bank in the U.S., ranked by assets, behind Citigroup and J.P. Morgan Chase, with assets of $576 billion as of Sept. 30, 2002 and an expected net income between $9.17 and 9.27 billion for the year.
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