HomeMy WebLinkAboutItem 05 - Bank Depository Contract STEM
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGE )% /
MEETING DATE: JUNE 2, 2009
SUBJECT: AWARD OF BANK DEPOSITORY CONTRACT
RECOMMENDATION:
City Council to consider a resolution awarding the City Bank Depository Contract and
authorizing the City Manager to execute said contract, safekeeping agreements and all
other agreements as necessary to implement the depository contract.
City Depository will include all current operating accounts at Compass Bank and any
additional accounts as necessary.
FUNDING SOURCE:
Funds for servicing the bank depository is not necessary because the bank bid a no cost of
service.
BACKGROUND INFORMATION:
Chapter 105 (Sub Chapter B 105.011) of the Texas Local Government Code authorizes
municipalities to establish depositories for banking services. The City last awarded a
depository contract to Compass Bank. The current depository contract provides for an
extension to award a new depository contract.
The request for applicants was processed in accordance with the Texas Local Government
Code; Chapter 105, Section 105.011 and 105.012. Section 105.012 (c)requiring the notice
to applicants to be published once no later than 21 days prior to the deadline for receipt of
applications. This notice was published in the Fort Worth Star Telegram on April 9, 2009.
Eight proposals were returned. Proposals were opened on April 30, 2009.
All proposals were analyzed by City Staff and evaluated in terms of each applicant's
proposed annual fees for services and potential earnings for the City from account
investments. A copy of the analysis summary is attached.
May 28, 2009 12:15PM
Legacy Bank has proposed annual fees which are the most advantageous among the eight
applicant banks. Combined with the investment earnings on City funds in the depository,
the Legacy Bank proposal will produce the least cost and the most earnings for the City
among the eight applicant banks, based upon the balances used in the City analysis.
Staff recommends that the City's bank depository contract be awarded to Legacy Bank for
a one-year term with four, one-year renewals. The contract will be effective June 1, 2009
and expire May 31, 2010.
Staff recommends approval.
FW/slt
May 28, 2009 12:15PM
Obs\
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS AUTHORIZING THE CITY MANAGER
TO EXECUTE A CITY DEPOSITORY CONTRACT AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, the Texas Local Government Code, Chapter 105 authorizes
municipalities of the State to establish depositories for the deposit of City funds and
for banking services to be provided to the City; and
WHEREAS,the current City of Grapevine depository contract is expiring and
a new contract needs to be approved; and
WHEREAS, the City of Grapevine has advertised for applicants for
consideration as a City depository in accordance with the requirements of the Texas
Local Government Code, Section 105.012 and has evaluated the applications so
received.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF GRAPEVINE, TEXAS:
Section 1. That all matters stated in the preamble are true and correct as if
copied herein in their entirety.
Section 2. That the City of Grapevine does hereby authorize the City
Manager to execute a City Depository Contract with Legacy Bank of Grapevine and
to executive and deliver a safekeeping agreement and any and all documents,
agreements or contracts necessary to complete the implementation of said
Depository Contract.
Section 3. That the term of said Depository Contract shall be to commence
on or before 12:01 A.M., June 1, 2009 and expire at 12:00 A.M. (Midnight), May 31,
2010; except that if the City is actively involved in soliciting applicants for a new
depository contract this contract shall continue in force until such new contract is
fully executed by all parties.
Section 4. That this resolution shall take effect from and after the date of
its passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 2nd day of June, 2009.
APPROVED:
ATTEST:
APPROVED AS TO FORM:
RES. NO. 2