Title
Depository Bank Services Agreement with Wells Fargo Bank, N.A. to provide the City with primary depository and banking services.
Summary
The City’s current depository contract with Wells Fargo Bank, N.A. expires December 31, 2026. Finance has completed the Primary Depository Bank Request for Application (RFA) process to select the City’s primary depository bank for the next contract term.
The selection process was conducted in accordance with applicable State of Texas requirements, including the Municipal Depository Act, Conflict of Interest Act, Public Funds Investment Act, and Public Funds Collateral Act.
The RFA process included a review of the City’s historical banking activity, account balances, current service requirements, and potential future banking needs. To increase competition and expand the City’s banking options, City Council previously approved expanded eligibility boundaries to include financial institutions located within the City’s municipal boundaries and ZIP Codes 78660, 78664, and 78728. Seventeen financial institutions were eligible to apply.
The City received applications from Frost Bank, Regions Bank, and Wells Fargo Bank, N.A. Each application was evaluated based on the bank’s ability to provide required services, references and service quality, fees and interest earnings, transition costs and incentives, funds availability, earnings credits, application completeness, location and convenience, prior service with the City, and overall financial strength and stability.
All three applicants demonstrated the financial strength and ability to meet the City’s minimum banking requirements and provide most optional services. After evaluating the applications, City staff determined that Wells Fargo Bank, N.A. submitted the most advantageous application for the City based on its overall financial value, contract incentives, banking capabilities, existing service quality, and minimal transition costs.
Key advantages of Wells Fargo's application included: projected interest earnings that exceed anticipated banking fees; credits toward administrative costs and implementation of new services; dedicated banking staff and demonstrated customer service; strong security and fraud-protection capabilities; support for the City's daily banking operations; and a convenient banking location within approximately 10 minutes of City offices.
Based on the overall evaluation, staff recommends Wells Fargo Bank, N.A. as the City’s primary depository bank. Upon approval, the new agreement will begin December 31, 2026, and continue through December 31, 2028, with three additional one-year extension options.
Prior City Council Action
On June 22, 2021, City Council approved resolution expanding boundaries for banking services.
On October 12, 2021, City Council approved an Initial agreement.
On November 28, 2023, City Council approved the first extension.
On November 12, 2024, City Council approved the second extension.
On November 12, 2025, City Council approved the third extension.
Deadline for City Council Action
Approval requested on October 27, 2026 to secure a contract before prior agreement expiration
Funding Expected: Revenue __ Expenditure ___
Budgeted Item: Yes x_ No ____
Amount: _$ (offset by interest)_______
1295 Form Required? Yes x_ No __
Legal Review Required: N/A __ Required _X_ Date Completed: _9/29/2026_
Supporting documents attached:
Depository Bank Services Agreement
Exhibit A
Recommended Action
Approve as presented