HomeMy WebLinkAboutMINUTES - 04211998 - D4 ......... ......... ....._._. ...._. ._........
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TO: BOARD OF SUPERVISORS
: . Contra
FROM: Mark DeSaulnier
OStd
DATE: April 21, 1998 County
SUBJECT: BankAmerica and NationsBank Merger
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDA'T'ION
1. Direct the Chief Administrative Officer of the County and Supervisor Mark DeSaulnier to
determine the extent to which the proposed merger of BankAmerica and NationsBank,
will impact Contra Costa County and workers in existing bank facilities.
2. Direct the Chief Administrative Officer and Supervisor Mark DeSaulnier to communicate
to NationsBank Chief Executive Officer Hugh McColl and BankAmerica Chief
Executive Officer David Coulter the County's desire to work with them to minimize
impacts on the County's economy.
3. Direct that the Chief Administrative Officer and Supervisor DeSaulnier to form an
interjuridsdictional working team to include representation from the Mayors' Conference,
the Economic Partnership, the Contra Costa Council, the chambers of commerce and the
mayors of the cities of Concord and Pleasant Hill. The goal of this group will be to
communicate to the directors of the proposed merged bank a willingness to create an
environment favorable to a continuing presence of bank operations in our county. Further
they will assist the newly constituted NationsBank in any program to relocate or retrain
displaced workers. This effort could serve as a model for an economic emergency team to
deal with future problems of downsizing and restructuring countywide.
(46)
CONTINUED ON ATTACHMENT: YES SIGNATURE:
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RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNAlrtts EM.
ACTION OF BOARD ON APRIL 21 . 199S APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES- AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON HE DATE SHOWN.
ATTESTED t
PHIL OKTCHELOR,CLEkk OF THE BOARD OF
SUPERVISORS ANIS COUNTY ADMINISTRATOR
Contact: Karen Mitchoff,Supe.DeSautnices oiffice
CC BY ° Z ,DEPUTY
BACKGROUND
BankAmerica and NationsBank have announced their plans for a proposed merger to create a
national banking franchise headquartered in Charlotte,North Carolina. This action has been
widely discussedby financial analysts and economists.
BankAmerica is one of the top 3 employers in Contra Costa County. It is estimated that least
8,000 jobs will be eliminated. Although the most conspicuous victim would appear to be
workers in San Francisco,the headquarter of Bank of America for nearly 100 years, Contra
Costa County, and in particular the cities of Concord and Pleasant Hill could bear a heavy
burden in jobs lost. Bank of America has 1,200 support jobs currently in Pleasant Hill and 3,000
positions at the technical facility in Concord, as well as a large number of Centra Costa residents
who work elsewhere in the Bay Area for BankAmerica. Analysts predict the greatest downsizing
of positions will occur in areas of administrative services where functions may be merged at the
North Carolina headquarters. The loss of these jobs would create a significant negative ripple
effect within our local economy. It is important that every possible avenue be explored to retain
those jobs.
Although this particular situation has the greatest implications for District IV it would be in our
County's best interest to create the frame work for an emergency response team to deal with this
and all similar situations.