HomeMy WebLinkAboutItem 14 - Bank Depository ContractITEM / � / 4
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER 0
MEETING DATE: APRIL 15, 2003
SUBJECT: BANK DEPOSITORY CONTRACT
RECOMMENDATION:
City Council to consider extending the existing Bank Depository Agreement for one year.
BACKGROUND:
The City's Bank Depository Agreement with Texas Bank is due to expire April 30, 2003.
It is a five-year agreement and has a provision that allows the current contract to extend
until a new contract is awarded. The City has had excellent service from Texas Bank.
The transition to a new bank can take several months to complete because it potentially
requires a bid process, new checks, new accounts, computer synchronization for direct
deposits and other transitional factors which could affect City operations. In order to avoid
any potential disruptions to City business due to a depository change and given that the
service received from the bank has been more than satisfactory, it is recommended that
the current depository contract be extended for one year. If this meets with City Council
approval, the existing contract with Texas Bank will continue until April 30, 2004.
WAG/cjc
H: AGM Ban kDepository4-15-03
April 9, 2003 (8:42AM)