Council unanimously awards depository contract to Independent Financial after consultant review

The Hewitt City Council voted unanimously April 1 to award the city’s primary depository services contract to Independent Financial and authorized the city manager to execute the necessary agreements.

Valley View Consulting consultant Tim Penon told the council the city followed Chapter 105 of the Texas Local Government Code to solicit depository proposals and expanded outreach to identify 19 eligible banks. Five banks submitted proposals; four offered indexed interest rates tied to market benchmarks and four waived all service fees for the first year. Penon said the analysis used the city’s 12‑month average balance of about $12 million to project earnings and compare offers.

Penon said Independent Financial, the incumbent, provided the most favorable financial package in the firm’s evaluation, offering the top rate in the range presented and agreeing to waive fees. "They have your most favorable terms and conditions," Penon said in presenting the recommendation. The consultant described the recommended contract as a two‑year agreement with the city holding options for three additional one‑year renewals.

On council action, a motion to award the contract to Independent Financial was made and seconded; the council approved the motion by a 7–0 vote. Council materials include a resolution (identified in the packet as Resolution 20243) authorizing the award and delegating execution authority to the city manager.

The award is scheduled to begin July 1. No council member requested further study or an alternative award; staff indicated the procurement followed applicable state statutes governing the process.

Details on specific rate calculations, the winning indexed benchmark and contract documents were not read into the record; the consultant indicated banks used a mix of indices (Fed funds, 91‑day T‑bill) and one bank submitted a managed (non‑indexed) rate.