1986-05-12 Regular Meeting - Laserfiche WebLink

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CITY OF LA PORTE INTER-OFFICE MEMORANDUM T0: Jack Owen, City Manager FROM: Richard Hare, Assistant City Manager Tom Keilman, Finance Officer DATE: May 7, 1986 SUBJECT: Recommendation for the Award of Depository Contract The evaluation of the bids submitted by La Porte State Bank and Bayshore National Bank should be based upon two (2) main considerations: 1) The cost of services rendered by the respective bank to the City of La Porte in servicing the City's demand accounts (See Page 6 of Bid Format). 2) The interest the City of La Porte can earn from interest bearing checking accounts, otherwise known as SuperNow accounts (See Page 9 of Bid Format). Based upon these two (2) considerations, the following conclusions can be clearly drawn from the bids submitted: 1) 'La Porte State Bank submitted a bid of $18,438 vs. Bayshore National Bank's bid of $18,480 for the two year contract period. 2) Assuming an average T-Bill rate of 6.5% over the two year term of the contract, Bayshore National Bank submitted a proposal that would earn $55,300 per year in interest for the City's SuperNow account over the contract period. La Porte State Bank submitted a bid that would not pay interest on the City's demand account. Bayshore National Bank's proposal based on the assumptions in this analysis would earn $92,120 of interest over costs during the two year agreement period. La Porte State Bank's proposal would cost the City $18,438. Therefore, we recommend the award of the depository contract to Bayshore National Bank, with a net difference in bid of $110,558 in favor of Bayshore's proposal. RH/jb