The document summarizes a request for proposals for depository services received by the city. Three banks submitted proposals: Frost Bank, Jefferson Bank, and Pioneer Bank. Frost Bank was selected based on their strong experience with municipalities, excellent customer service and online banking capabilities, financial strength, competitive costs, and wide range of banking services. The contract with Frost Bank is expected to have no net cost to the city due to interest earned on deposits offsetting banking fees. City council approval is requested to authorize a five-year contract with Frost Bank for depository services.

1. Depository Services
Request for Proposal
Presented By: Robert Galindo
Finance Director
Item # 4
City Council Meeting
May 23, 2016

2. 2
Background
Request for Proposal (RFP) for Depository
Services
• Advertised March 16, 2016
• Due Date for proposals April 18, 2016
• City received three proposals

3. 3
Background
Proposals received for depository services
• Frost Bank
• Jefferson Bank
• Pioneer Bank

4. 4
Background
Key Criteria for evaluation of proposals
• Experience with bank depository services
to municipalities
• Providing Excellent Customer Service
• Online Banking Capabilities

5. 5
Background
Key Criteria for evaluation of proposals
• Financial Strength
• Cost of Banking Services
• Banking services offered by bank

6. 6
Selection of Frost Bank
 Proposal was professionally prepared, complete and detailed
 Frost Bank has been in business for 148 years
 Frost Bank is financially strong
 Frost offers the most banking services than the other
proposals
 The on-line banking capabilities are the strongest of the
proposals
 Frost Bank has a strong history of working with
municipalities
 Customer Service is excellent
 The cost of banking services is very competitive
 Earnings credit rate (interest paid on deposits) is
competitive

7. 7
Summary of Ratings
 Frost Bank 89
 Jefferson Bank 81
 Pioneer Bank 55

8. 8
Policy Analysis
• Texas Government Code requires public
funds to be kept in the city depository
• A city depository contract can be up to five
years
• Best practice is to advertise for proposals

9. 9
Financial Impact
The net contract cost is expected to be zero
since the cost of the banking services will be
offset by the earnings credit rate earned by
the city’s bank balance.

10. Consideration of a Resolution authorizing
the City Manager to negotiate and
execute a five-year contract agreement
with Frost Bank for bank depository
services.
1
0
Proposal