Travis County Commssioners Court
June 24, 2003
The Closed Caption log for this Commissioners Court agenda item is provided by Travis County Internet Services. Since this file is derived from the Closed Captions created during live cablecasts, there are occasional spelling and grammatical errors. This Closed Caption log is not an official record the Commissioners Court Meeting and cannot be relied on for official purposes. For official records please contact the County Clerk at (512) 854-4722.
Items 25
Number 25 is next, consider and take appropriate action on proposed amendment two on pricing to the depository bank contract with badge one Travis County effective July 1, 2003. Bank one. Ms. Maze?
>> good afternoon, our office manages the depository bank contract for Travis County, which is currently with bank one. And we are now at the midpoint of our four-year contract with bank one. The law provides that at the midpoint the bank can renegotiate prices with us so as to keep them up to date as long as they do not increase prices more than 10% over what we had for the first two years of the contract. And I’m happy to tell you that we are -- we're not going to do that 10%. There are two areas in which we could renegotiate. The first one is the interest rates that the bank pays us, and they are based on the three-year treasury bill rates so that as those rates go up, our interest rates go up, and of course as those rates go down owrks interest rates go down, but this does have the effect of keeping those interest rates at current market level. So we don't need to do anything about those. The other pricing aspect is -- are the fees that the bank charges us for the services which they provide to us. As you see in the backup, there are 11 pages of those. And I’m happy to tell you that the bank is not raising those fees. They have asked us to add one fee. It's called a negative collected balance fee. And I can try to explain that if you'd like. But basically we think it will cost us about $200 a year. And this fee has already been implemented in the bank's nationwide computer so that our people in Austin are having to manually recalculate it and refund it to us. We nl it would cost the bank more than $200 to keep doing that. And so we do recommend that we allow them to add this one fee. [one moment, please, for change in captioners]
>> so that when they get these accounts consolidated, they can move the fund over to this high balanced savings account and increase the interest that we're able to provide for the minors. That is the main change here. There may be some costs to Travis County involved in that. We believe that if it's done this year, that we certainly can cover it and probably can cover it in the '04 budget year as well. And it is something that we recommend doing because it comes much closer to a market rate of interest. For the minors funds. So we present to you the amendment number 2, to the depository contract and recommend that you approve it. If you have any questions, I would be glad to answer them.
>> questions?
>> move the proposed amendment 2 as recommended by staff.
>> amendment 2 appears on the bottom of page 1 and on page 2.
>> yeah, amendment 2 is what -- I guess starting with the fifth page of your backup, after -- after my mommy month and then the -- after my memo and then the fee list that is attached is also part of the official amendment because it will represent our fees for the next two years.
>> pages 1 through 4.
>> yes. There are four pages, plus the 11 pages of the fee.
>> okay.
>> schedule.
>> that was the part of my motion.
>> all right. Just trying to understand this. There's an amendment 2 then there's an amendment of amendment 1. Page 4. Are you calling that amendment 2?
>> yes.
>> okay.
>> because amendment 1 we had indicated that we would choose this -- this form of fee for the first two years of the contract. If we didn't address that and say we want it for the second two year, then we would be sitting there like we would the last time having to do another amendment to say what we were going to do with that particular fee.
>> okay. Any more discussion? All in favor?
>> abstain.
>> okay. Show Commissioners Sonleitner, Gomez, Daugherty and yours truly voting in favor, Commissioner Davis abstaining.
>> we did hope that we would have a representative from the bank, but they were all occupied this afternoon.
>> all right.
>> we were hoping, as you were, I’m sure, to get to this earlier in the day.
>> looking like a banker with his suit on back there.
>> thank you.
>> thank you.
>> it has that I control your money look about the day.
Last Modified: Wednesday, June 25, 2003 9:52 AM