Travis County Commissioners Court
Tuesday, May 24, 2011 (Agenda)
Item 16
Now to something real, real easy for us, number 16.
16.
consider and take appropriate action on the following requests: a, recommendation from bank depository review committee for Travis County's new depository bank; b, authorize for investment manager to negotiate contract for depository bank services; and c, authorization for county treasurer to return good faith checks to wells fargo.
>> good afternoon.
>> good afternoon,.
>> I'm debbie
>> [indiscernible] investment manager, I have with me harvey Davis assistant investment manager and reagan grimes, senior financial analyst.
the banks are two applicants, jp morgan chase and wells fargo put in a lot of work on these applications, we really do appreciate the work that they put into the applications.
we also would like to thank the review committee.
the bank review committee made up of about -- I'm not sure of the exact number.
15 people from the largest departments across the county, we all reviewed the contract and looked at, examined the different things in it to make sure that they met the county's needs.
and so the applications were reviewed based on financial strengths, ability to meet service requirements, best value in terms of service and cost, response to the community investment act of 1977, compliance with -- with h.u.b.
policy and evaluation of key contracting persons, information and potential conflicts of interest.
it was a very -- both applications were very competitive.
but the committee unanimously agreed that j.p.
morgan chase had the better offer for us and it was based on a couple of things and the costs for the different services were pretty competitive.
but in the end the collateral and the cost of collateral and the accommodations that j.p.
morgan chase was willing to make were a little more in favor of the needs of Travis County.
there are some budgetary concerns.
unfortunately, with the interest rate environment that we're in, we have not had to pay for our bank services before because of the deposits that we've had in the banks.
we've earned earnings credit.
unfortunately due to the -- to the low interest rate environment, that's not going to be the case going forward.
so there will be some budgetary concerns for fiscal 2012.
fiscal 2011 we should be fine because both banks agreed to wave their account analysis charges for the first three months of the contract.
so ...
>> so we expect the cost to kick in for 2012.
>> correct.
>> but if the economy rebounds, I guess, in 2013 and '14, this will be a multi-year contract that we hope to negotiate, right?
>> right, this is a four year contract.
also has the option to extend for two years after that.
the -- there are modifications every two years to the interest rates.
and the different fees.
>> okay.
so -- so any costs associated with 2013 and '14 and thereafter will turn on how the economy does.
>> exactly.
>> it -- presumably if the economy turns nicely, we will be able to negotiate a situation that will have an impact there.
but it really turns on what we're able to negotiate in relation to the terms of the contract for those years.
>> okay.
>> move approval of the recommendation of a basically that the depository bank be chase.
right?
>> yes.
>> b is that the investment manager be authorized to negotiate a contract for the depository bank services and present those to the Commissioners court.
when it's time to -- for us to consider.
>> correct.
>> that.
>> and that we return to wells fargo, this has good faith checks, two checks.
>> two checks should one to you and one to the county clerk.
>> now, the one to the Commissioners court we keep that one if we can.
>> I'm not sure wells fargo would agree with that.
>> I will second that.
>> but we did promise to return these, right?
>> yes, we did.
>> one second.
>> judge, before we vote, I would like to abstain on a and b, fact I can support c.
>> okay.
then let's take a and b first.
seconded by Commissioner Gomez.
all in favor, show Commissioner Davis abstaining and the rest of the Commissioners court voting in favor.
and on c the return to wells fargo its two checks, move approval.
>> second.
>> seconded by Commissioner Gomez.
discussion?
all in favor.
that passes unanimously.
>> okay.
>> thank you.
>> thank you all very much.
we appreciate your hard work, dedication, et cetera.
>> [one moment please for change in captioners]
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