CC MEETING: September 24, 2024
DATE: September 16, 2024
TO: Erin Rinehart, City Manager
FROM: Diana Vaughn, Chief Financial Officer
Chrystal Davis, Assistant City Manager
Title
Consider A Resolution Authorizing The City Manager To Enter Into An Agreement With Frost Bank, To Provide Depository And Banking Services In An Amount Of $120,000 Per Year, For A Total Five-Year Contract Amount Not To Exceed $600,000; And Further Authorizing The City Manager To Be And To Appoint Signatories, And Persons Authorized To Give Investment Settlement Instructions.
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BACKGROUND:
Bank depository services are essential for maintaining the city’s financial stability and operational efficiency. These services include accepting deposits, facilitating fund transfers, providing online banking, securely handling public money, and managing securities on behalf of the city. Utilizing these services helps staff manage and safeguard the city’s funds.
State law limits a bank depository service contract to five-years. At the end of five-years, a new contract must be obtained through a new procurement process. City staff prepared a request for application (RFA) for depository and safekeeping services, and the RFA was posted in the city’s e-procurement portal on May 13, 2024. Previous and interested banks were informed the RFA was available. On June 12, 2024, the City received two applications: Well Fargo and Frost Bank.
An evaluation of submissions included reviewing criteria related to services and implementation costs, earning potential, the financial strength of the bank, references and the banks’ ability to provide the requested services. Frost Bank was determined to be most competitive and suitable for the financial needs of the city based on their application, as well as their relevant experience as the current bank depository for the City of Carrollton.
FINANCIAL IMPLICATIONS:
The estimated annual cost of $120,000 for depository services is budgeted in the Administrative Services Fund.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends adoption of the attached resolution authorizing the City Manager to accept the application submitted by Frost Bank and appointing Frost Bank as the City’s depository bank; and authorizing the City Manager to enter into a five-year contract for these services for a total contract amount not to exceed $600,000.