110.075.  Selection of depositories, competitive bid process — definitions — requirements — contracts — records. — 1.  As used in this section, the following terms shall mean:

  (1)  "Depository", banking institution headquartered in or maintaining a full-service branch in this state which is selected by a municipality to hold and manage public funds;

  (2)  "Governing body", any city council, board of aldermen, or board of trustees;

  (3)  "Municipal depositories", any state-chartered or federally chartered banking institution as defined in Article IV, Section 15 of the Constitution of Missouri;

  (4)  "Municipality", any city or village in this state;

  (5)  "Public funds", funds owned or controlled by a municipality, including tax revenues, fees, grants, and other sources of income.

  2.  All municipalities shall select depositories through a competitive process in accordance with the provisions in this section.  The governing body of each municipality shall develop and publish a request for proposals which shall outline the requirements for selecting one or more municipal depositories.  Such requirements shall address or include the following matters:

  (1)  The municipality shall use due diligence for determining the financial stability and soundness of the depository based on publicly available financial reports and other public sources;

  (2)  Safe custody and liquidity of public funds, including deposit insurance coverage and pledge of collateral or investment in appropriate government securities as authorized for public funds;

  (3)  Interest rates and fees offered;

  (4)  Services offered, including online banking, cash management, deposit sweep and repurchase accounts, investment in a common trust fund in eligible securities for municipalities and political subdivisions, and other banking service options;

  (5)  Compliance with all applicable state and federal banking regulations;

  (6)  Convenient and efficient treasury functions, including if the location of the depository institution shall be required to be located within the municipality or in the same county as the municipality.

  3.  Banking institutions interested in becoming the municipal depository shall respond to the municipality's request for proposals within the time frame specified by the municipality in the request.

  4.  The governing body shall evaluate the proposals based on the criteria outlined in the request for proposals and select a banking institution that best meets the municipality's needs and objectives.

  5.  The selected banking institution shall enter into a contract with the municipality outlining the terms and conditions of the depository relationship, including, but not limited to, the interest rates, fees, and services to be provided.

  6.  Municipalities shall maintain records of the selection process, including all proposals received by the municipality for a period of two years.