The Calhoun Port Authority held a special meeting Wednesday to authorize advertising for bids for qualified banks interested in serving as the depository for Port funds.
The Port’s current agreement with First National Bank branch in Port Lavaca ends on May 31, said Port Director Charles Hausmann. The port is required by law to request bids for a new agreement and will send the bid package out to all local banks.
“It is going to be kind of a rough road to haul because interests rates and stuff are not up very high, so we’ll have to see what we get,” Hausmann said. “I’m hoping we’ll be able to get more than one bid on this.”
The new depository service agreement will be for a two-year period, from June 1, 2021 — May 31, 2023, with the option to extend for two years.
Deputy Port Director Forrest Hawes had nothing but good remarks for First National, which was the only bank to submit a bid the last time the Port advertised for them.
“The issue with us is that under our depository rules, we require our funds to be 100% collateralized,” Hausmann said. “When you have over $30 million in fund balances, not a lot of banks want to take on the responsibility of that collateral for the accounts we have on file.”
The Port’s board also went into closed session for about 25 minutes to discuss or deliberate commercial information the Port has received from a business prospect that the Port is in economic negotiations with, discuss the purchase, exchange lease or value of real estate, and seek advice of its attorney.
No action was taken on items discussed during closed session.