Agenda

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Item # 14.

Work Session and Regular Meeting

Meeting Date:	08/27/2019
Department:	City Manager

AGENDA CAPTION:

Consider Action to Approve a Resolution Selecting Frost Bank as the Primary Depository Bank for the Town of Addison; Directing the City Manager to Negotiate a Treasury Management Services Agreement and a Security Agreement with the Bank; and, Authorizing the City Manager to Execute the Agreements.

BACKGROUND:

The Town’s contract with Frost Bank as the primary depository bank expires on September 30, 2019, with no options for extension. The Town issued a request for application (RFA) on March 15, 2019 detailing the requirements to serve as the Town’s primary depository bank for the two-year period of October 1, 2019 through September 30, 2021 with the provision for three optional one-year extensions under the same terms and conditions. Notice of the RFA was advertised in in the Dallas Morning News on March 15, 2019 and March 22, 2019 in accordance with Chapter 105 of the Texas Local Government Code and application packets were mailed to twenty-one financial institutions within 5 miles of Addison Town Hall.

A pre-application conference was held on March 28, 2019 and attended by five financial institutions. Applications were received from Compass, Frost, Guaranty, LegacyTexas, and PlainsCapital. Valley View Consulting, LLC, assisted with the process of developing the RFA and evaluating the applications.

After careful consideration of criteria such as potential interest earnings throughout the life of the agreement, bank fees, bank service capabilities and responsiveness, online banking technology, and reference checks, it is the recommendation of Staff that Frost Bank be selected as the Town’s primary depository bank. The attached report contains a detailed analysis of the five applications received.

A representative of Valley View Consulting will be available to answer questions regarding the solicitation and evaluation process.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Depository Bank Services
Report - Primary Depository Bank Services Request for Applications Project