BACKGROUND/DISCUSSION:
The City's current depository services agreement with Frost Bank expires on March 31, 2022. The City has used Frost for it's depository services since December 1, 2011. As required by the Local Government Code, we prepared a Request For Proposal and advertised the request.
The City received only one proposal. The proposal was from Frost Bank, our current depository. The fees proposed by Frost in the new agreement are very comparable to the fees the City has been paying these last five years. The City will continue to receive the 30% discount on all non-balance related bank fees. Frost will also waive analysis fees for the first three months of the contract. In addition to the competitive fees, Frost has provided excellent service and meets the banking needs of the City.
FINANCIAL IMPACT:
The fees included in the Frost proposal are very similar to the fees we currently pay to Frost. The estimated monthly increase in baking fees is $130.13.
RECOMMENDATION:
Staff recommends the bid for the City's Depository Bank Contract be awarded to Frost Bank.