DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: All
SUBJECT:
Contract renewal of the Securities Lending Agreement with Frost Bank
SUMMARY:
This Ordinance authorizes the renewal and extension of the Securities Lending Agreement with Frost Bank for the second and final one (1) year renewal term, commencing April 1, 2014, under the same terms and conditions.
BACKGROUND INFORMATION:
Securities Lending is authorized under the Texas Public Funds Investment Act and the City's Investment Policy. Securities Lending is a process by which the City's securities are made available to approved borrowers to meet their short term investment and liquidity needs. The loaned securities do not leave the effective control of the City. These loans have a short duration, are collateralized at 102% by cash, government securities, or letters of credit, and monitored daily. By utilizing a Securities Lending Program the City has the opportunity to generate additional revenue.
On May 4, 2009, the City issued a Request for Proposal for Securities Lending Services. On June 5, 2009, four firms submitted proposals: Citibank, N.A., Frost Bank, PNC Global Investment Servicing, and State Street Bank and Trust. A Selection Committee interviewed the four firms on June 26th and June 30th, 2009 and scored the firms on February 16, 2010.
On February 17, 2010, Frost Bank was recommended and approved by the Investment Committee to provide Securities Lending Services to the City for a three (3) year period beginning April 1, 2010 through March 31, 2013 with the option to extend the contract for two (2) additional one (1) year terms, under the same terms and conditions. On March 18, 2010 City Council approved Frost Bank to provided Securities Lending Services.
On November 13, 2012, the Investment Committee approved the first renewal and extension of the Securities Lending Agreement with Frost Bank to continue to pr...
Click here for full text