HomeMy WebLinkAboutPR 24773 RENEWAL OF CONTRACT FOR DEPOSITORY SERVICES City of
ort rthtit .
Texas
www.PortArthurTx.gov
INTEROFFICE MEMORANDUM
Date: 02/26/2026
To: The Honorable Mayor and City Council
Through: Ron Burton, City Manager
From: Lynda Boswell, Director of Finance
RE: PR No. 24773 -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 1,2026 through
March 31,2027,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 andconditions required by the City ofPortArthur.
"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
City of
ort rthu
7i,tas
www.PortArthurTx.gov
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, 2026 through March
31, 2027.
"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. 24773
2/26/2026 LYN
RESOLUTION NO
A RESOLUTION DESIGNATING PNC BANK,PURSUANT TO §105.015
OF THE TEXAS LOCAL GOVERNMENT CODE, AS THE
DEPOSITORY BANK FOR THE CITY OF PORT ARTHUR AND
AUTHORIZING THE CITY MANAGER TO EXECUTE ALL
DOCUMENTS NECESSARY TO IMPLEMENT THE CONTRACT
RENEWAL TO BE EFFECTIVE APRIL 1,2026 TO MARCH 31,2027.
WHEREAS, the City of Port Arthur, Texas ("City") received one (1) application in the
manner required by state law for depository services on Monday, March 20, 2023; and,
WHEREAS, the City Council has been furnished a copy of the recap of the responding
bank's application,which is attached hereto as Exhibit"A"and made a part hereof for all purposes;
and,
WHEREAS,it has been determined that the application submitted by PNC Bank,National
Association met all criteria, terms and conditions required for the handling of the City's funds;
and,
WHEREAS,per Resolution No. 23-148,the City Council authorized the City Manager
to execute a Bank Depository Agreement with PNC Bank for the period beginning April 1,
2023; and
WHEREAS, the initial agreement was for two years, with three additional one-year
periods under the same terms and conditions; and
WHEREAS, the City Council deems it is in the City's best interest to exercise the
second renewal option,with one(1)additional one-year period remaining as an option to renew.
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, pursuant to §105.015 of the
Texas Local Government Code, as the Primary Depository of the City.
Section 3. That the City Manager is hereby authorized to extend the Depository Services
Agreement with.PNC Bank,under the same terms and conditions except as described in Exhibit
1 for the period beginning April 1, 2026 through March 31, 2027.
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. That the initial agreement was for two years,with the City having the option
to extend the agreement 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_24th day of March,A.D., 2026, at a
Meeting of the City Council of the City of Port Arthur, by the following vote: AYES:
Mayor:
Councilmembers:
•
NOES:
Charlotte M. Moses, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVE •
Roxann Pais Cotroneo, City Attorney
APPROVED FOR ADMINISTRATION:
Ron Burton, Ci ger, CPM
Lyn oswell, irector of Finance
EXHIBIT A
4; PNC
Date: February 5, 2026
City of Port Arthur
Attention: Lyn Boswell
444 4th Street
2nd Floor
Port Arthur,TX 77640
Dear Lyn Boswell,
PNC Bank is excited to offer a 1-year Banking Depository contract extension. The contract term
begins April 1,2026,and ends March 31, 2027. 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
ePPelp./
Date:
Ronald Burto
City Man.:er
PNC Bank, N.A.
Date:
Michael Bradley, CTP, MBA
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