Title
Approving a resolution with the caption reading: Resolution of the City of Pflugerville, Texas Authorizing the City Manager to Extend the Contract for Banking Services.
Summary
The end of this fiscal year will complete the third year of the City's contract with First Texas Bank for the City's banking services. The original contract with First Texas Bank was a three-year agreement, including provisions to extend the contract for two additional one-year terms. This resolution would allow the City Manager to execute the first one-year term extension on this agreement, which will end on September 30, 2020. The City Attorney has reviewed this resolution.
First Texas Bank would not have any price increases during the proposed extension, but has informed us that they would need to lower the rate of interest from 0.10% to 0.05% due to current and foreseeable market conditions. This rate would be locked in for the next fiscal year. The rate decrease is in line with decreases we are currently seeing with the City's other financial institutions.
Deadline for City Council Action
None.
Funding Expected: Revenue ___ Expenditure __ N/A _X_
Budgeted Item: Yes ___ No ___ N/A _X_
Amount: N/A_____
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A ___ Required _X_ Date Completed: _6/3/2020_
Supporting documents attached
Resolution to Extend
City of Pflugerville Banking Services Contract Extension 2021
City of Pflugerville Banking Services Contract 2017-2020 Executed
Recommended Action
Approve the resolution authorizing the City Manager to extend the contract for banking services.