File #: 24-1583    Name: Primary Depository Bank Services
Type: Resolution Status: Approved
In control: City Council Regular Meeting
On agenda: 5/21/2024 Final action: 5/21/2024
Title: Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Contract with J.P. Morgan Chase Bank, N.A. of Dallas, Texas for Primary Depository Bank Services
Attachments: 1. Resolution, 2. Scoring Summary, 3. Valley View Consulting Summary

Title

Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Contract with J.P. Morgan Chase Bank, N.A. of Dallas, Texas for Primary Depository Bank Services

 

Summary

COUNCIL GOAL:    Financially Sound Government

(4B: Provide funding and organizational framework to ensure continual economic  improvements)

 

MEETING DATE:    May 21, 2024

 

DEPARTMENT:                      Financial Services

                     Procurement Services                     

 

CONTACT:                                            Mark Holloway, Chief Financial Officer

                                          Trudy Mathis, Director of Finance

                                          Kelvin Bryant, Investment and Treasury Manager

                                          Tonya Hall, Procurement Services Supervisor

 

 

RECOMMENDED CITY COUNCIL ACTION:

                     Approval of Resolution

 

ITEM SUMMARY: 

                     This Resolution authorizes the City Manager to execute a contract with J.P. Morgan Chase Bank, N.A. of Dallas, Texas for Primary Depository Bank Services.

 

                     The contract is for a three-year term and includes a provision for two one-year continuations under the same terms and conditions of the contract, subject to the mutual agreement of both parties.

 

BACKGROUND INFORMATION: 

                     Section 110 of the City of McKinney Charter authorizes the City to receive sealed applications from any bank doing business in the City of McKinney, Texas.

 

                     Section 105.017 of the Local Government Code states that a municipal depository contract should not exceed five (5) years.

 

                     All pertinent requirements of Section 110 of the City City Charter; Section 105 of the Local Government Code; Chapter 176 of the Conflict of Interest Act; Chapter 2256 of the Public Funds Investment Act; and Chapter 2257 of the Public Funds Collateral Act have been complied with.

 

                     The existing depository contract with J.P. Morgan Chase Bank will expire on June 30, 2024.

 

                     The City engaged with a consulting firm, Valley View Consulting, L.L.C., to provide depository contract advisory services.

 

                     The City issued a Request for Applications (RFA) for Primary Depository Bank Services (24-36RFA) on February 11, 2024.

o                     Advertised and appeared in McKinney Courier Gazette and Dallas Morning News

o                     Notified seventeen (17) financial institutions withing the municipal boundaries of the City

o                     Posted on McKinney TV

o                     209 matching eBid suppliers were notified which included five (5) Historically Underutilized Business (HUB) suppliers

 

                     Procurement Services received eight (8) applications from financial institutions with branch locations within city limits and were analyzed by Valley View Consulting.

 

                     An evaluation team of  five (5) staff members of the Financial Services Department further reviewed and ranked the applications based on the following criteria:

o                     30 Points - Cost of Required Banking Services and Earnings Potential in Differing Account Structures

o                     15 Points - Terms and Capabilities to Provided Required Services

o                     25 Points - Financial Strength of the Institution

o                     25 Points - Customer Service Structure

o                      5 Points - Collateralization

 

                     The evaluation team interviewed and scored the top three (3) highest ranked financial institutions and ranked the demonstrations on the following criteria:

o                     25 Points - Demonstration

§                     Presentation

§                     Applicant Experience

 

                     J.P. Morgan Chase Bank, N.A. emerged as the best value application and is recommended by staff and consultant.

 

 

FINANCIAL SUMMARY: 

                     J.P. Morgan Chase Bank will provide all required services at an estimated cost of $182,000 over the initial three (3) year period which will be covered by an earnings credit rate of 3.85% on a compensating balance.

                     J.P. Morgan Chase Bank will also provide an end of day sweep that currently pays 4.80%

 

SUPPORTING MATERIAL:

                     Resolution

                     City of McKinney Scoring Summary

                     Valley View Consulting Summary