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GARLAND
POLICY REPORT
Work Session Item 3.b.
City Council Work Session Agenda
Meeting Date:
10/10/2022
Item Title:
Depository Banking Services
Submitted By:
Matt Watson
Strategic Focus Areas
:
Sound Governance and Finances
ISSUE
The City Council is requested to consider a depository bank contract with a financial institution that is qualified to meet the City's corporate banking needs in accordance with City Council's Financial Policy.
OPTIONS
Authorize the City Manager to execute agreements with JP Morgan Chase Bank.
Do not authorize the City Manager to execute agreements with JP Morgan Chase Bank.
RECOMMENDATION
Council is requested to authorize the City Manager to execute a depository bank contract and related agreements with JP Morgan Chase Bank for the period January 1, 2023, through December 31, 2024. The depository bank contract may be extended for three (3) additional one-year periods. The advantages of selecting JP Morgan Chase Bank as the depository include the availability of desired bank services, the established relationship that currently exists with JP Morgan Chase Bank and favorable fees. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the October 18th, 2022 Regular Meeting.
BACKGROUND
The City of Garland utilizes the resources of a financial institution in meeting its corporate banking needs. In addition to the customary banking services, the City uses sophisticated cash and treasury management services that are available through full service financial institutions. Numerous banking practices of the City are conducted electronically through a treasury management workstation and through direct data transmission via computer.
The recommendation to select a qualified financial institution is made at the completion of a thorough selection process. Financial Services contracted with Valley View Consulting, LLC, to assist with the Bank Depository Services Request for Applications (RFA). Valley View Consulting assisted by drafting the RFA based on input from Financial Services staff and compiled the responses to the RFA. Financial Services staff approved the RFA, responded to all questions regarding the RFA and analyzed the compiled responses to the RFA. All banks and financial institutions with locations or branches in Garland were eligible to respond to the RFA. The bank service application due date was June 21, 2022. JP Morgan Chase Bank, Wells Fargo Bank and PNC Bank were the financial institutions that submitted applications. After considering the analysis results, the demonstrations, and the evaluation criteria, the City staff determined that the terms offered by JPMorgan Chase Bank, N.A. were the most advantageous for the City. JP Morgan Chase Bank has served as the City’s depository since January 1, 1988 and has been a cooperative and responsive business partner. Chase Bank is an innovation leader in the bank industry. The City has implemented numerous sophisticated Chase Bank products as they have become available.
CONSIDERATION
Operational - Cost effective cash and treasury management tools improve the operational efficiency of the Financial Services Department. Significant time and cost savings are achieved by renewing depository bank services with JP Morgan Chase Bank.
Financial - JP Morgan Chase offered competitive pricing for required banking services.
Legal – The City is required to prepare a Request for Application for Depository Bank Services every five (5) years.
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