11-APPROVE RESOLUTION ACCEPTING BID FOR CITY DEPOSITORY

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Item No. 11 �nemo�andum TO: City Council John Godwin, City Manager FROM: Gene Anderson, Finance Director SUBJECT: CITY DEPOSITORY DATE: January 8, 2013 BACKGROLJND: Under Chapters 105 and 131 of the Local Government Code, the City of Paris may receive bids from financial institutions to serve as the depository and custodian of the City's funds. The City historically has operated under two year agreements. The current depository agreement expires February 28, 2013. In order to allow time for transition should the depository bank change, the City Council votes on this issue in January every third year. STATUS OF ISSUE: The City advertised in the Paris News on December 9 and December 16 of 2012 that it would be receiving bids to serve as the City's depository bank for a two year period beginning March 1, 2013. In addition, email notification was sent to five local banks who have expressed interest in this issue in the past. Attached is a bid summary showing that the Liberty National bid is the best proposal. Not only are their bids based on the higher 26 week T-bill rate, but their basis point add on is also higher. Copies of the bids are also provided. BUDGET: Not affected by this selection. RECOMMENDATION: Motion to select Liberty National Bank to serve as the City of Paris depository bank for the ensuing two year period.