Council approves Frost Bank depository agreement after staff presentation on fees and limited proposals

The Coppell City Council voted Aug. 12 to approve the city's bank depository agreement with Frost Bank after a staff presentation on the proposal and questions from council members. The motion to approve agenda item 9 was moved by Council Member Nevills and seconded by Council Member Hill; the motion passed with all members present voting in favor.

City staff representative Vanessa, appearing for the bank-depository presentation, said, “I believe that Frost will continue to be a great partner to the city. And with that, I'm happy to answer any questions.” Council Member Nevills asked about the proposed 5% fee increase, saying, “So the 5% increase that you spoke of is that, pretty standard?” Vanessa replied that historical usage drove fee differences and noted an 18% decrease in fees from 2015 to 2020 related to changes in services used. Council Member Matthew asked about recent fees paid, and staff said the city paid about $5,700 in fees for the quarter from March to May this year, or roughly $1,800–$1,900 per month.

Vanessa told council that only Frost Bank submitted a formal proposal and described eligibility constraints and practical reasons that limited other bidders: some banks lacked an in-state main office, and many institutions decline municipal deposits because Texas law requires collateral for deposits above $250,000. She said this collateral requirement can be a “financial burden” for potential bidders. When asked whether larger banks such as Capital One or Bank of America are eligible, Vanessa said they are eligible but the collateral requirement and scale concerns may deter some institutions. She offered to research comparative fees paid by other cities and recent RFPs.

The council made a formal recorded motion and vote to approve the item. The meeting record shows the motion passed with members Hinojosa Smith, Nevills, Prem Kumar, Matthew, and Hill recorded as voting in favor.