1991-01-14 Regular Meeting - Laserfiche WebLink

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• • CITY OF LA PORTE INTER-OFFICE MEMORANDUM T0: Robert T. Herrera, City Manager FROM: Jeff Litchfield, Director of Finan DATE: January 8, 1991 SUBJECT: RFP for Banking Services I have completed the analysis of the proposals to provide Banking Services to the City of La Porte. On November 9, 1990, requests were mailed to the three banking entities that are eligible to be our depository bank. The scheduled opening date was December 3, 1990. On November 29, 1990 I received a call from one of the banks. They had just received their proposal package in the mail. I called the other two banks and found that they had also received their's the week of November 26. Because of the complexity of the proposal, I extended the proposal due date to December 17, 1990. On December 17, 1990, I received proposals from two of the banks (Bayshore National and Baytown State). I talked with Randy Woodard of La Porte State Bank and he said that they were not interested in being our depository bank at this time. Attached is a copy of my analysis 'of the two proposals. Both banks offer services sufficient to handle a City of our size. When we consider a bank to be our depository, there are two aspects that need to be looked at. Both are equally important. The first is how much will we be charged for our routine, everyday transactions. The second is how much .can we earn on our idle funds. Based on the assumptions and estimates made in my review, the following represents an estimate of the total impact of the two proposals. Bayshore Baytown Estimated Interest Income Revenue to the City 75,220.08 53,906.64 Less Estimated Expense to the City 32.772.99 20.352.95 Total Impact to the City of La Porte (Profit) 42,447.09 33,553.69 In looking at the numbers, we see that our expense will be less if we select Baytown State Bank as our depository bank. However, we will earn considerably more in interest if we select Bayshore National Bank. The above analysis is based on an estimated average daily balance of $956,133. If the City selects Bayshore National, we come out ahead by about $8,900. ~ ~nR~~S~s i s c~.eem.ec~i- ~-~ nTirJ-ert~io~~ ~ w ; ~~ be ~v e.u ~o ++ °~, Ci0 V N C ~ ` V N ~ke~ S~e~QC0.~c'@. C+0~3 eC'••