HomeMy WebLinkAboutRenew US Bank’s contract for banking services for two more years Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: Laurae Clark, Treasurer
Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Renew US Bank’s contract for banking services for two more years.
MEETING DATE: March 17, 2014
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Renew US Bank’s contract for banking services for the period of
April 1, 2014 through April 1, 2016.
BACKGROUND: 7-6-206. Time deposits -- repurchase agreement. (1) Public money not
necessary for immediate use by a county, city, or town that is not invested as authorized in 7-6-
202 may be placed in time or savings deposits with a bank, savings and loan association, or
credit union in the state or placed in repurchase agreements as authorized in 7-6-213. Money placed in repurchase agreements is subject to subsection (2).
(2) The local governing body may solicit bids for time or savings deposits from a bank,
savings and loan association, or credit union in the state.
The City of Bozeman’s current contract for banking services expires on April 1, 2014. However, per the original request for proposal, the City and the institution may mutually agree to two, two-
year renewals without repeating the competitive process.
US Bank was pleased to extend the contract for two more years. The only significant changes to
be made are to how they will be securing our deposits. In the past the security provided was in the form of bonds pledged to the City of Bozeman. In the future, they will be pledging our
deposits with a letter of credit from a federal home loan bank, which is an acceptable security for
deposits under state law 17-6-103.
UNRESOLVED ISSUES: None
ALTERNATIVES: As suggested by the City Commission.
FISCAL EFFECTS: Staying with the existing bank will keep us operating as is without needing to set up new accounts and file transfers or purchase new checks and deposit tickets etc. which is a tremendous savings in time and money.
Attachments: None
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