Title
Consider/Discuss/Act on a Resolution to Award the Bank Depository Contract to American National Bank of Texas for the Period Beginning July 1, 2014 and Ending June 30, 2017
Summary
MEETING DATE: June 3, 2014
DEPARTMENT: Financial Services
CONTACT: Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
· Adopt the Resolution.
ITEM SUMMARY:
· The existing depository contract for the custody of City funds with American National Bank of Texas (ANB) will expire June 30, 2014.
· The City engaged a consulting firm, Patterson & Associates, to provide depository contract advisory services.
· Five banks responded with timely proposals.
· Proposals have been analyzed in accordance with the criteria stated in the Depository Request for Proposal which include the ability to perform the required services, agreement to points outlined in the Depository Request for Proposal, interest rates paid on time deposits and checking accounts, cost of banking services, and financial stability.
· American National Bank of Texas emerged as the most advantageous bid based on overall criteria.
· Staff and consultant recommend the appointment of American National Bank of Texas as the Depository Bank of the City for a three-year contract term starting July 1, 2014.
· The contract also includes a provision for one (1) two-year continuation under the same terms and conditions of the contract, at the same or lower fee levels, subject to the mutual agreement of both parties.
BACKGROUND INFORMATION:
- Section 110 of the City of McKinney Charter authorizes the City to receive sealed proposals for the custody of City funds from any banking corporation doing business in the City of McKinney, Texas, at least once every five (5) years
- Section 105.017 of the Local Government Code states that a municipality may approve, execute, and deliver any depository service contract whose term does not exceed five (5) years.
- All pertinent requirements comply with Section 110 of the City of McKinney City Charter and Section 105.017 of the Local Government Code.
- The bid was duly advertised on February 23, 2014 and March 2, 2014.
FINANCIAL SUMMARY:
· American National Bank of Texas will provide all required banking services without cost and will provide a floor eanings credit rate of 30 basis points with the city maintaining a compensating balance of $18 million dollars.
BOARD OR COMMISSION RECOMMENDATION: N/A