2001-06-25 Special Called Meeting

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Requested By: Cynthia B. Alexander Department: Finance Report: Resolution: Ordinance: XX Exhibits: Exhibits: Exhibits: Appropriation Source of Funds: General Fund Account Number: 6141-515-5006 Amount Budgeted: Amount Requested: Budgeted Item: YES NO SUMMARY & RECOMMENDATION On April 23, 2001, the City opened proposals for Banking Services. Requests for proposals were mailed to the three local banks, SouthTrust Bank, Southwest Bank of Texas, and Bank of America. Responses were received from SouthTrust Bank and Southwest Bank of Texas. In analyzing the proposals submitted by the banks, there were three distinct areas that were reviewed. They were the cost of the proposal, financial condition of the bank, and the services provided by the bank. In reviewing the proposals, staff feels that both banks are in sound financial condition. With this in mind, we evaluated the financial impact to the City. Based on estimated annual activity that was provided in the RFP, the cost of services provided by the two responders is as follows: Southwest Bank of Texas $ 9,102.51 SouthTrust Bank $ 10,400.80 The analysis of the RFP's was presented to and approved by the Audit Committee on May 21, 2001 Based on our opinion that one respondent has the ability and commitment to offer a superior level of customer service to the City, its employees and vendors, and a lower cost of services provided, we believe that the proposal submitted by Southwest Bank of Texas provides the best overall benefit to the City of LaPorte. Action Required by Council: Adopt Ordinance approving and authorizing a Banking Services agreement with Southwest Bank of Texas for a three year term beginning August 1, 2001, with a two year renewal option, and on a month to month basis thereafter. Approved for City Council Agenda (D - at- 0 t Robert T. Herrera, City Manager Date