HomeMy WebLinkAboutPR 24210: RENEWAL OF CONTRACT FOR DEPOSITORY SERVICES fauqx
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INTEROFFICE MEMORANDUM
Date: 03/04/2025
To: The Honorable Mayor and City Council
Through: Ron Burton, City Manager
From: Lynda Boswell, Director of Finance
RE: PR No. 24210 - Renewal of Contract for Depository Services
Introduction:
The intent of this Agenda Item is to seek City Council's approval to designate PNC Bank, National
Association as the primary depository for the City of Port Arthur for the period of April 1,2025 through
March 31, 2026 with a provision for three one-year extensions under the same terms and conditions of
the contract.
Background:
Pursuant to Chapter 105 of the Local Government Code, the city is required to solicit proposals for
banking services at least every five years. On March 20, 2023,the City received only one(1)application
from the following bank: PNC Bank,National Association.
The application was evaluated based on, but not limited to,the following criteria:
1. Ability to perform and provide the required and requested services;
2. Reputation of applicant and quality of services;
3. Cost of services;
4. Funds availability;
5. Interest paid on interest bearing accounts and deposits;
6. Earnings credit calculation of account balances;
7. Completeness of application and agreement to points outlined in the RFA;
8. Convenience of locations;
9. Previous service relationship with the City; and
10. Financial strength and stability of institution
PNC Bank,National Association met all criteria,terms and conditions required by the City of Port Arthur.
"Remember, we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743
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Budget Impact: The City intends to pay for banking services through the earnings credit amount
generated by bank balances which is deducted from interest earnings each month. There is no direct
impact on the budget.
Recommendation:
It is recommended that City Council approve to designate PNC Bank,National Association as the
primary depository for the City of Port Arthur for the period beginning April 1, 2025 through March
31, 2026.
"Remember,we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743
P.R.NO. 24210
3/4/2025 LL
RESOLUTION NO
A RESOLUTION DESIGNATING PNC FINANCIAL SERVICES
GROUP,INC.AS THE DEPOSITORY BANK FOR THE CITY OF PORT
ARTHUR AND AUTHORIZE THE CITY MANAGER TO EXECUTE
ALL DOCUMENTS NECESSARY TO IMPLEMENT THE CONTRACT
RENEWAL TO BE EFFECTIVE FROM APRIL 1,2025,TO MARCH 31,
2026.
WHEREAS,per Resolution No. 23-148,the City Council authorized the City Manager
to execute a Bank Depository Agreement with PNC Financial Services Group (PNC Bank) for
the period beginning April 1, 2023, through March 31, 2025; and
WHEREAS,Resolution No. 23-148 provided that the City has the option to renew the
agreement for three (3) additional one-year (1) periods under the same terms and conditions;
and,
WHEREAS, the City Council deems it is in the City's best interest to exercise the first
renewal option.
WHEREAS, the City Council hereby affirms the first renewal; the term shall begin on
April 1, 2025, and ends on March 31, 2026; and,
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR,TEXAS:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That the City does hereby designate PNC Bank as the Primary Depository of
the City.
Section 3. That the City Manager is hereby authorized to execute the first renewal of
the Depository Services Agreement with PNC Bank for the period beginning April 1, 2025,
through March 31, 2026, in substantially the same form as Exhibit"A."
Section 4. That Director of Finance, along with the City Secretary, when necessary, is
hereby authorized to execute all documents to continue the services set forth in the agreement
on behalf of the City.
Section 5. The initial agreement was for two years, with the City having the option to
extend it for three additional one-year periods under the same terms and conditions.
Section 6. That a copy of the caption of this Resolution shall be spread upon the Minutes
of the City Council.
READ,ADOPTED,AND APPROVED on this_18th day of March, A.D., 2025, at a
Meeting of the City Council of the City of Port Arthur,by the following vote: AYES:
Mayor:
Councilmembers:
NOES:
Thurman"Bill"Bartie, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Roxann Pais Cotroneo, City Attorney
APPROVED FOR ADMINISTRATION:
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Ron Burton, City CPM
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Lynda Boswell, Director of Finance
EXHIBIT A
PNC
Date: February 6, 2025
City of Port Arthur
Attention: Clifton Williams
444 4th Street
2nd Floor
Port Arthur,TX 77640
Dear Clifton Williams,
PNC Bank is excited to offer a 1-year Banking Depository contract extension. The contract term
begins April 1, 2025,and ends March 31, 2026. As stated in our original RFP response,the pricing
for Treasury Management services will remain the same until March 31, 2028. Upon the
acknowledgment of this letter, the Banking Depository contract pricing will be extended for 1-
year. The current Earnings Credit Rate (ECR) is a managed rate at 1.50%. We value our
partnership and look forward to serving the City as your Financial Partner.
City of Port Arthur
Date:
Signature/Title
PNC Bank
`/1-ec/ta.¢1 3 Date: 02/05/2025
Michael Bradley, CTP, MISK
Senior Vice President
Title:Treasury Management Office
(972) 765-7292 I michael.bradley@pnc.com
Member of The PNC Financial Services Group
300 Fifth Avenue The Tower at PNC Plaza Pittsburgh Pennsylvania 15222
www.pnc.com