Bank Depository Services

1. CITY OF ALAMO HEIGHTS
ADMINISTRATION AND FINANCE DEPARTMENT
CITY COUNCIL AGENDA MEMORANDUM
TO: Mayor and City Council Members
FROM: Robert Galindo, Finance Director
SUBJECT: A Resolution awarding a Five-Year contract for Bank Depository services to Frost
Bank
DATE: July 26, 2021
SUMMARY
Consideration of a Resolution awarding a five-year contract for Bank Depository Services to Frost
Bank and authorizing the City Manager to negotiate and execute with Frost Bank.
BACKGROUND
The City advertised for Depository Services proposals on May 19, 2021 and May 26, 2021. The
City received two proposals on June 21, 2021.
The proposals were evaluated by the Finance Director and the Assistant to City Manager. The
criteria in the evaluation process included:
1. Experience with banking depository services with municipalities
2. Online banking capabilities
3. Providing excellent customer service
4. Financial Strength
5. Fraud Prevention
6. Cost of banking services
7. Location within the city
8. Fraud Prevention Services
9. References
The Finance Director believes that based on the proposals submitted, Frost Bank is the depository
that meets all the RFP requirements. Frost Bank was selected for the following reasons:
 Proposal was professionally prepared, complete and detailed
 Frost Bank has been in business for 150 years
 Frost Bank is financially strong
 Frost offers all banking services needed by the city
 The on-line banking capabilities are strong
 Frost Bank has a strong history of working with the City of Alamo Heights and other Texas
municipalities
 Customer Service is excellent
 The cost of banking services is very competitive
 Earnings credit rate (interest paid on deposits) is competitive

2. Summary of Proposals Received and Evaluation Scores
 Frost Bank 98
 Plains Capital Bank 95
POLICY ANALYSIS
Under the Local Government Code, a city is required to keep city funds in a bank depository. The
depository contract can be up to five years.
FISCAL IMPACT
The net contract cost is expected to be competitive and varies depending on the city’s bank balance.
ATTACHMENTS
Attachment A – Resolution
Robert Galindo
Finance Director
Buddy Kuhn
City Manager

3. Attachment A
RESOLUTION NO. 2021R- 134
A RESOLUTION AWARDING A CONTRACT FOR BANK DEPOSITORY
SERVICES TO FROST BANK AND AUTHORIZING THE CITY MANAGER
TO NEGOTIATE AND EXECUTE A CONTRACT FOR SUCH SERVICES
FOR A PERIOD OF FIVE YEARS; AND SETTING AN EFFECTIVE DATE
WHEREAS, the City of Alamo Heights (“City”) is a political subdivision and is governed by
the laws of the State of Texas and requires a variety of banking/financial services, some of which
reside as the primary responsibility of the depository selected to act as City's depository; and
WHEREAS, City, in accordance with Local Government Code Chapter 105, provided notice
to banks regarding the submission of applications for the performance of depository services for the
City and the City published Notice of the request; and
WHEREAS, the City Council has determined that the proposal submitted by Frost Bank
meets all the bank depository services requirements;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ALAMO HEIGHTS, TEXAS:
SECTION 1. The proposal of Frost Bank for bank depositoryservices is accepted subject to
the execution of an appropriate contract for such services.
SECTION 2. The City Manager is authorized to negotiate the terms of a five-year contract
with Frost Bank on behalf of the City for such bank depository services.
SECTION 3. This Resolution shall be effective immediately upon the passage hereof.
PASSED AND APPROVED this the 26th
day of July, 2021.
_____________________________________
BOBBY ROSENTHAL, MAYOR
ATTEST:
____________________________________
ELSA T. ROBLES, CITY SECRETARY
APPROVED AS OF FORM:
____________________________________
FRANK J. GARZA, CITY ATTORNEY