Title
Resolution - A Resolution Authorizing the Bank Depository Contract
Requested Action
Approve the resolution accepting the bid for the City’s Depository Services between the City of Mansfield, Texas and JPMorgan Chase.
Recommendation
Approve a Resolution allowing JPMorgan Chase to provide depository services for the City of Mansfield, Texas.
Description/History
Chapter 105 of the Texas Local Government Code addresses the establishment of a Depository for municipal funds. The purpose of the Chapter is to protect, guard and establish the relationship between a financial institution and a Municipality.
The City of Mansfield, Texas has requested proposals for Depository Services from several banks with branch offices located within the City of Mansfield, Texas. The City received proposals from JPMorgan Chase, Frost Bank and American National Bank. The sealed proposals were received on August 13, 2020.
Justification
As a part of the Government Finance Officers Association’s Recommended Practices and compliance with Chapter 105 of the Texas Local Government Code, the City of Mansfield, Texas periodically initiates a request for proposals and for major banking services which include service fees, earnings credit rates, and other banking services. Chapter 2256 of the Texas Local Government Code states that the single most important objective in investing government funds shall be the preservation and safety of principal. The purpose is to create a competitive market environment for controlling costs while safeguarding and protecting the assets of the City’s Treasury.
Costs are a major consideration in evaluating the proposals. JPMorgan Chase has the lowest net service costs. Other factors include number of branches, capital strength, and the technological platform available to the City to manage its daily banking activity. The economy is very uncertain and is expected to be uncertain over the next several years. The Federal Reserve has stat...
Click here for full text