Title
RFP No. 2026-025 - Bank Depository Agreement.
(Authorize the City Manager to finalize and execute the necessary documents with Bank of America in the amount of $90,862.25 annually. The term of the contract is for a three-year period, with one additional two-year renewal option. The City Manager is authorized to exercise the renewal option, subject to annual appropriation of sufficient funds.)
Body
Name of Department
Finance
Project/Budgeted Amount
$95,000.00 annually
Sum of Bid/Bid Amount
$90,862.25 annually
A Request for Proposals (RFP) for depository banking services was distributed through BidNet Direct electronic procurement system, posted on the City’s website and advertised in the Daily Commercial Record on April 16 and April 23, 2026. Eligible banks located within the city limits of Mesquite must meet the requirements of depositories of municipal funds as established by State law under Chapter 105 of the Texas Local Government Code. The RFP identified bid procedures, the scope of required banking services and the contract period to be awarded. Each proposer was requested to provide an itemized cost of services on a monthly basis and to respond to questions concerning services to be provided. Three banks submitted responsive bids: Bank of America, Huntington Bank, and Wells Fargo & Company.
An evaluation committee met to review the proposals and selected Bank of America based on the evaluation criteria. Attached is a tabulation of the scoring criteria.
Although the total annual charges will not exceed $90,862.25 per year, the net cost is expected to be $0.00 due to the application of the Bank’s Earnings Credit Rate (ECR) of 2.18 percent on the City’s account balances. The ECR is market-based and indexed to the Fed funds rate and is calculated based on the City’s account balances and bank policies.
Bank of America meets all the requirements under State law to qualify as the City’s depository bank and is able to provide needed banking products, and based on the evaluation of all proposals, Bank of America can provide the best level of service consistent with the City’s needs. The following shows the history of depository banks for the City:
Banking Firm Fiscal Years Number of Years
Bank of America 2006 through 2026 20 years
JP Morgan Chase/Bank One 1996 through 2006 10 years
First Interstate (now Wells Fargo) 1986 through 1996 10 years
Southwest Bank 1978 through 1986 8 years
Bank of Mesquite 1974 through 1978 4 years
First National (now Wells Fargo) 1960 through 1974 14 years
There is no policy or requirement that limits the number of years a bank may serve as a depository bank, in fact, Bank of America has been the depository bank for the City of Irving for 22 years and Dallas County for over 30 years. Wells Fargo has been the depository bank for the City of Grand Prairie for 17 years and El Paso for 22 years. Nevertheless, Bank of America was evaluated based on the merits of its proposal and not its recent history with Mesquite.
Recommended/Desired Action
Staff recommends award to Bank of America and authorize the City Manager to finalize and execute the necessary documents.
Attachment(s)
Evaluation Committee Scoring
Drafter
Ted Chinn
Head of Department
Ted Chinn