AGENDA CAPTION:
Title
Consider approval of Resolution 2026-37R, approving a contract with Wells Fargo, National Association, for the provision of Depository Services for a three-year term and authorizing one additional extension of up to two years; in the annual amount of $49,620.00; authorizing the City Manager, or her designee, to execute the contract on behalf of the city; and declaring an effective date.
Body
Meeting date: March 3, 2026
Department: Finance
Amount & Source of Funding
Funds Required: $49,620 estimate per year
Account Number: 10001280-54010; 21006322-54010; 22006335-54010
Funds Available: Yes
Account Name: Bank Charges
Fiscal Note:
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Background Information:
On October 30, 2025, the City received four (4) submissions in response to RFA 2025-134 for Depository Services. A City-staffed evaluation team thoroughly reviewed and evaluated all submissions with the assistance of a technical consultant to the City. The evaluation team has determined Wells Fargo Bank, National Association, to be the most qualified and best value to serve the City’s banking needs.
Wells Fargo has served as the City’s depository since 2010 and maintains a branch presence in San Marcos. The City intends to award a contract to Wells Fargo, N.A., for a period of three (3) years in the annual estimated amount of $49,620 based on services used by the City. This contract is subject to one (1) optional extension not to exceed two (2) years, if approved by City Council, for a total contract term of five (5) years.
The services to be provided by Wells Fargo, N.A., will meet the following goals:
• Safety of City funds and securities;
• Collateralization of all funds over FDIC insurance limits;
• Efficient utilization of available banking services; and
• Minimization of banking cost to the City.
The City reserves the right to add additional services on an as-needed basis, to include merchant services and safekeeping services, that increase the City’s operational efficiencies and provides the best value to the City.
The final composite scores by the evaluation team are as follows:
The safety of City funds and assets is paramount. The use of technology to minimize manual or time-consuming operations is a continuing effort and Wells Fargo, N.A., will be expected to bring new ideas and technologies to the City’s attention throughout the contract period. The City’s funds are public funds and fall under the provisions of the Public Funds Investment Act and the Public Funds Collateral Act (Texas Government Code, Chapters 2256 and 2257) and are further restricted by the City’s Investment Policy. The establishment of a depository by the City is further governed by Texas Government Code, Chapter 105, Depositories for Municipal Funds. At all times, all demand funds above FDIC insurance coverage will be collateralized with a one hundred two percent (102%) market margin as authorized by City Policy and RFA 2025-134.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Award a contract for an initial three (3) year term and authorize an optional extension not to exceed two (2) years for a total contract period of five (5) years.