The current depository agreement with The American National Bank of Texas expires on
October 31, 2018.
Staff worked on a Request for Application (RFA) for depository banking services and provided notice and copies of the RFA to banks located within the city limits of Allen. Additionally, the RFA notice was published in the newspaper on May 3rd and May 10th. A pre-application conference was held on May 15th. In the RFA, banking services were requested for a two year term with an option of renewal for three additional periods of one year each at the same terms and conditions.
Applications were received from five banks by the deadline of June 11, 2018. The banks submitting applications were The American National Bank of Texas (ANB), Bank of America, N.A., Comerica Bank, JPMorgan Chase Bank, N.A., and LegacyTexas Bank.
An evaluation committee of City staff and a banking consultant, Valley View Consulting L.L.C., was established to review the applications. The committee included Eric Cannon, Chief Financial Officer, Steven Glickman, Assistant Chief Financial Officer, Debra Morris, Purchasing Manager, and Valley View Consulting representatives.
The applications were considered on several evaluation criteria, such as the ability of the bank to meet the required services, aggregate banking service cost, previous service relationship with the City or any related governmental entity, financial strength and stability of the institution, interest rates paid on interest bearing accounts, earnings credit calculation on account balances, reputation of applicant and quality of services, convenience of location in Allen, completeness of application and agreement to points in the RFA, and other items as outlined in the RFA.
The Committee selected American National Bank and JPMorgan Chase Bank as the top two banks for further consideration. City staff was familiar with ANB from the current banking relationship. JPMorgan Chase Bank was invited to meet with staff and present a demonstration of banking services as provided by JPMorgan Chase Bank. ANB and JPMorgan Chase were then provided an opportunity to submit a best and final offer to the City. With the best and final offers, City staff and the consultant performed due diligence reviews such as calling references and calculating final impact upon the City. Based upon consideration of all the evaluation criteria, the Committee selected JPMorgan Chase Bank, N.A. as the depository bank with the best value for the City.
The attached consultant's report summarizes the process and the evaluation of the applications from the five banks. As mentioned earlier, there were several criteria items that were evaluated in making a final determination of the best value to the City.
The banking services and fees will remain firm for the entire contract period, including any extensions. The initial contract period is from November 1, 2018 through October 31, 2020. There is an option of renewal for three additional periods of one year each at the same terms and conditions.
A Resolution designating city representatives who are authorized to execute bank related documents is also attached. The City Manager, Assistant City Manager, Chief Financial Officer, and Assistant Chief Financial Officer are listed as the city representatives authorized to execute any of the bank documents on behalf of the City. Such documents would include signature card authorizations, an ACH agreement, a Funds Transfer Agreement, or other documents associated with banking services.