Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Banking Services topic
No spam. Unsubscribe anytime.
Smithville board outlines timetable to rebid banking services; contract planned for Oct. 1
Summary
At a Smithville work session, staff detailed a schedule and required qualifications for a request for proposals to provide city banking services, noting $19 million in the city’s checking account and plans to decide on a new provider in June.
Smithville mayor and board members heard a staff presentation on the city’s plan to solicit bids for its banking services and a proposed timeline that would lead to a June decision and a new contract effective Oct. 1.
The item matters because Smithville currently holds about $19,000,000 in its demand (checking) account and four certificates of deposit with its incumbent, Central Bank; staff said the city needs a new or renewed banking contract that ensures federal insurance coverage, local branch access and full collateralization of deposits.
Rick, a retired banker who presented the work-session briefing, said Smithville has been using Central Bank for six years and that the city did not previously formalize a multi-year contract. He outlined a procurement schedule: release the RFP on the city website after a final review, an April 30 deadline for banks to submit questions, a May 8 posting of answers, a May 22 proposal due date, a June 4 decision of the city’s intent and a June 17 work-session presentation followed by an award in a regular session. "We have been with Central Bank now for 6 years," Rick said. "We will come back and give you our recommendation."
Staff listed minimum qualifications they plan to include in the request for proposals: FDIC insurance on deposits, a full-service branch located inside city limits, membership in the Federal Reserve (to support electronic banking), 100% collateralization of the demand account, and the ability to provide credit information from one of the three major credit agencies. The presentation noted that banks may calculate interest differently and that the method of interest-rate calculation could be a material factor in the selection.
Rick and staff also described the decision-making group: Rick and Cynthia (city staff) plus two board members to review proposals, confirm qualification criteria have been met, evaluate optional and value-added services, and recommend a winner. One board member suggested including representation from Ward 2, which staff noted has no banks within its boundaries.
No formal vote was taken on the procurement plan at the work session; staff said they will release the RFP and return with a recommendation. The work session ended after a motion to adjourn was made and approved by voice vote.
Votes at a glance: The only formal action recorded in the transcript was a motion to adjourn the work session; the motion was made and carried by voice vote (tally not specified).
