HomeMy WebLinkAboutRES 991109-O - Deposit Auth First Tx BankRESOLUTION
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN,
TEXAS, AUTHORIZING THE MAYOR TO SIGN AN AGREEMENT WITH FIRST
TEXAS BANK AS CITY OF GEORGETOWN, TEXAS DEPOSITORY FOR THE
TWO YEARS BEGINNING DECEMBER 1, 1999
WHEREAS, The City of Georgetown Texas, has published notice of its intention to select a
depository for City funds; and
WHEREAS, The City of Georgetown,Texas, has received and evaluated proposals for custody of City
funds; and
WHEREAS, the City of Georgetown, Texas, desires to select from those proposals received the
application offering the most favorable terms and conditions of handling the municipal funds; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
GEORGETOWN, TEXAS, THAT:
SECTION 1. The facts and recitations contained in the preamble of this resolution are hereby found
and declared to be true and correct, and are incorporated by reference herein and expressly made a part hereof,
as if copied verbatim. The City Council hereby finds that this resolution implements Finance Policy 14.00
of the Century Plan - Policy Plan Element, which states: "Ali municipal operations are conducted in an
efficient business -like manner and sufficient financial resources for both current and future needs are
provided "; and further finds that the adoption of this resolution is not inconsistent or in conflict with any other
Century Plan Policies, as required by Section 2.03 of the Administrative Chapter of the Policy Plan.
SECTION 2. The Mayor is hereby authorized to execute, and the City Secretary to attest thereto an
agreement with First Texas Bank to serve as City of Georgetown, Texas, Depository for an initial term of two
years beginning December 1, 1999 and ending November 30, 2001 with the option to renew the agreement
annually for up to three additional years.
SECTION 3. This resolution shall be effective immediately upon adoption.
RESOLVED this 9th day of November, 1999.
ATTEST: T CITY OF GEORGETOWN:
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Sandra Lee By: MaryEllen Kersch
City Secretary Mayor
APPROVED AS TO FORM:
Marianne Landers Banks
City Attorney
Depository Resolution No. 47,7
Page 1 of 1
PAINVEST- RBANMI)EPRESOL. W PD
CITY OF GEORGETOWN
Depository Services - Evaluation Worksheet
- --
FINANCIAL INSTITUTION NAME------ -
CHASE
BANK ONE
COMPASS BANK
FIRST TEXAS BANK
Formerly Hartland
MANDATORY ELEMENTS - Section 1
1.01 Completeness of bid form and submission of
Yes
Yes
Yes
required information
1.02 Ability to provide sufficient collateral for deposits
Yes
Yes
Yes
1.03 Financial strength and stability of the proposer
Yes
Yes
Yes
1.04 Ability to meet the legal qualifications and terms and
conditions, specified
Yes
Yes
Yes
1.05 Located within City Limits (State Law)
No
No
Yes
TECHINICAL REQUIREMENTS - Section 2
(75 Total Points)
2.01 Provide required/requested services (20)
a. Ability to generate ACH & Wire transfers on-line
3
3
3
b. Same day credit for deposits
3
3
1
c. Ability to accept and process NACHA compatile files
3
3
3
including PR and Utility drafts
d. Account reconcilement services
3
3
2
e. Account Analysis statements
4
4
2
I. Achieved canceled checks and bank statements on
4
4
4
CD Rom
2.02 Quality of all reports requested. (10)
a. Account Analysis reports
2
2
2
b. Account reconcilment reports
3
3
2
c. Cash management system reports.
3
2
2
d. Safekeeping and collateral reports.
2
3
3
2.03 Securities Clearance and safekeeping procedures (15)
15
13
11
2.04 Cash Management services (15)
14
14
5
2.05 Experience and success with other similar entities (15)
10
10
10
SUBTOTAL POINTS
-79-1
67
50 1
62
COST FEE ESTIMATE - Section 3
(25 Total Points)
3.01 Cost of Banking Services (15)
7
7
5
3.02 Effective rates paid on City accounts and earnings credit
on average available balances (5)
4
4
4
3.03 Other cost related information (5)
3
3
3
TOTAL POINTS
83 1
81
1 62
No responselbid recieved from:
Bank of America
Walburg Bank
Texas Heritiage Bank
Union State Bank
Guaranty Federal Savings Bank
This Agreement is entered into the day of , 1999 by and between
the City of Georgetown, Texas (the "City") and First Texas Bank of Georgetown (The "Bank "),
a national banking association, to establish a depository for the City's funds. The parties agree
as follows:
Section 1: The City's Operating and Depository Accounts are hereby established at the Bank
which shall be an official depository bank of the City for the period beginning December 1, 1999
and ending November 30, 2001. The Bank shall honor only those checks, drafts, warrants, or
written orders drawn on said Accounts signed by the Mayor and City Manager of the City.
Section 2: All designated signatures are authorized to sign any check, draft, warrant, or written
order which may be drawn on said Account. The City Secretary is hereby authorized to certify
to the Bank the genuineness of such signatures, any change in authorized signatories, and the
genuineness of the signatures of the new signatories, and the Bank is authorized to accept and rely
upon such certificates.
Section 3: The parties hereby agree to the terms provided for in the Request for Proposal and
First Texas Bank's Response to the Request for Proposal, attached as exhibits "A" and "B ". It
is understood and agreed that when a conflict exists between the Request for Proposal and First
Texas Bank's Response to the Request for Proposal that the response as submitted by First Texas
Bank will prevail. It is understood that certain specifications in the Request for Proposal were
changed and /or bid differently by First Texas Bank.
Section 4: The Bank, as an official depository for the City, shall deposit with and pledge to the
City securities as provided under the laws of the State of Texas. Securities shall be deposited and
pledged in safekeeping by the Bank at such other reputable bank or banks as may have safekeeping
accounts for the Bank. A written schedule of the deposited and pledged securities shall be
furnished to the City by the Bank as requested by the City, and the banks holding such deposited
and pledged securities in safekeeping shall furnish the City with appropriate safekeeping receipts.
The Bank shall only of exchange or substitute the Approved Securities deposited and pledged with
written authorization of the City.
Section 5: The Bank shall faithfully perform all of the duties and obligations required by the
laws of the State of Texas for depositories of municipal funds, shall, upon presentation, pay all
checks duly authorized and drawn on it against funds of the City on demand deposit, and upon
termination of its designation as a depository of the City, shall promptly turn over to its successor
all funds, property, and things of value coming into its hands as a depository of the City.
Depository Agreement 12/99 Page 1 of 2
Section 6: This Agreement shall be deemed and constructed to comply with the applicable
provisions and requirements of the laws of the State of Texas governing depositories for public
funds, and any part, section, or provision herein not complying therewith shall be interpreted,
applied, and executed so as to effectuate such compliance.
ATTEST:
Sandra Lee
City Secretary
APPROVED AS TO FORM:
Marianne Landes Banks
City Attorney
(SEAL)
Accepted:
THE CITY OF GEORGETOWN:
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By: MaryEllen Kersch
Mayor
First Texas Bank of Georgetown
TITLE: lt'�
DATE: / / — %f
Depository Agreement 12/99 Page 2 of 2
113 East 8th Street
P. 0. Box 409
Georgetown, TX 78627
(512) 930 -3676
A. Request for Proposal
The City of Georgetown (the "City ") is seeking applications from eligible financial institutions to
be the banking service depository. This includes the basic services of receiving deposits, paying
items, sending wired funds, receiving wired funds, stop payments, and other normal business
banking activities. This agreement will not cover any investment transaction activities other than
safekeeping services to include receiving and delivering securities, coupon collections, and maturity
collections. The City plans to manage its own investment portfolio per its Investment Policy (see
Attachment A).
Financial institutions ( "banks ") desiring to respond to this RFP should bear in mind that the City
wishes to pursue an aggressive cash management and investment program. Further, the City views
maximized investment interest as a viable and material revenue to all funds. The City's cash
management policy shall be designed and managed in a manner responsive to the public trust and
consistent with State and local law.
This Request for Proposal, or "RFP" is intended to serve as the bid form for the depository
agreement. There are several schedules to complete and questions to be answered. The depository
contract shall be prepared based on the bidder's response to the RFP. All points outlined and
materials requested should be incorporated into the bidders's reply to be considered for evaluation.
Attachments will be appropriate in order to provide some of the requested information.
B. Contract Terms
The contract period will be for two (2) years beginning December 1, 1999 and ending November 30,
2001, or thereafter until a successor Financial Institution has been selected. The original contract
may be extended upon written agreement by both parties to do so, not to exceed five (5) years upon
which time a required request for services will be necessary. Should the contract be extended, the
original terms and conditions will apply, plus any approved changes, and either party can terminate
the contract if desired upon providing ninety (90) days written notice to the other party.
Upon termination of this contract, all finished or unfinished documents or reports prepared by the
bank at the option of the City, will become the property of the City.
C. Objectives of the Proposal
At the outset, the City wishes to communicate the primary objectives of the depository RFP, an
important component of the overall cash management program of the City of Georgetown:
To seek a bank capable of providing banking services and willing to be attentive and
responsive to the City's money matters;
2. To seek a bank which meets the legal qualifications and the terms and conditions specified
in this Request for Proposal;
3. To develop a foundation for a good working relationship with the depository bank; and
4. To adequately compensate the depository bank for services provided.
C. Inquiries from Proposers
Questions regarding the following technical specifications may be directed to:
Susan L. Morgan, Director Finance & Administration, or
Micki Rundell, Accounting Director
City of Georgetown
P. O. Box 409
Georgetown, TX 78627
(512) 930 -3676
RFP DEPOSITORY SERVICES OCTOBER 1999 Page 3
A.
1931
H. CRITERIA FOR EVALUATION
Evaluation Process
Obtaining competitive proposals on the City's depository specifications is the responsibility of the
Director of Finance and Administration. The City shall carefully review the submitted proposals.
The recommendation to award the contract will be based on the proposal determined to be in the best
interest of the City and its citizens. The evaluation of the proposals will be made based on the
following criteria:
20 points 0 Ability to perform and provide the required and requested services.
Minimum ® Ability to meet the legal qualifications and the terms and conditions specified in the
RFP.
15 points ® Cost of banking services.
Minimum ® Financial strength and stability of the proposer.
10 points ! Effective rates paid on the City's bank accounts and earnings credit on average
available account balances.
10 points 0 Quality of all reports requested.
15 points ® Securities clearance and safekeeping procedures.
15 points 0 Ability to provide the City with effective and innovative cash management services.
15 points ® Experience and success in providing banking services to similar entities.
Minimum 0 Completeness of the bid form and submission of the required information.
Minimum 0 Ability to provide sufficient collateral for deposits.
Review Committee
Your response to this RFP will be reviewed and evaluated by City staff including:
Director of Finance and Administration
Accounting Director
Support Services Director
City Manager
Assistant City Manager
City Attorney
The final selection will be made by the Georgetown City Council with advice and recommendation
from the Director of Finance and Administration.
RFP DEPOSITORY SERVICES OCTOBER 1999 Page 4
III. CITY ACCOUNT INFORMATION
The City intends to initially establish the following bank accounts. Other accounts may be set up as needed
during the term of the contract.
Account Name:
1. Deposit
2. Operating Disbursement
3. Payroll Disbursement
Type:
Demand Deposit Account (Master Account)
Disbursement Account/Concentration
Zero Balance Account/Concentration
Deposit Account - serves as the City's master account into which all deposits will be made and which will
fund the daily presentments to the operating disbursement account, and provide the daily funding for the zero
balance payroll account. This account will receive all the City's deposits, including utility bill payments,
including those received through ACH draft, user fees, court fines and property taxes. During the ten month
period of October 1998 to July 1999, average monthly deposits for this account were $2,600,000. Deposited
items returned unpaid for NSF and other reasons are charged back to this account. Charge back items
average $2,850 per month. Electronic funds transfers and investment security clearance and safekeeping
activities are processed through this account.
The bank must have the capability of receiving and sending wire transfers, ACH transfers and direct deposits
through this account. It will require daily balance reporting through a cash management program which is
user friendly and accessible via a personal computer.
Operating Account - will clear all operational checks for the City. An automatic transfer from the Deposit
Account will fund these disbursements and bring the balance back to zero. An average of 836 checks are
issued monthly from this account. During the ten month period of October 1998 to July 1999, average
monthly disbursements through this account were $2,272,745.
The bank will be required to notify the City each morning no later than 10:00 A.M. of the total amount of
checks clearing for that day. This notification should be made available via personal computer access.
Payroll Account - will clear only personnel related checks for the City. An automatic transfer from the
Deposit Account to the Payroll Account will be used to fund checks and bring the balance back to zero. The
City has a bi- weekly payroll with an average of 320 employees representing a net average monthly payroll
of $650,000. The City offers Direct Deposit of payroll which is utilized by approximately 175 employees
and represents a monthly average of $390,000. Direct deposit of payroll is a bank service required by the
City. A partial reconcilement service is required for this account detailing check numbers, clearing dates
and amounts.
The City reserves the right to open or close any number or type of accounts as it deems necessary through
the term of the Depository Services Contract. Any services not listed, but later requested by the City, will
be charged for a mutually agreed upon fee. Fees bid are fixed for the entire contract period.
RFP DEPOSITORY SERVICES OCTOBER 1999 Page 5
IV. BANKING SERVICES AND REQUIREMENTS
A. General Description of Services
Bank services to be provided are listed on the Bid Form, along with estimated monthly volumes. The
following identifies and discusses the services to be provided and the requirements to be met. Please
attach copies of reports and separate agreements that apply to each service, if applicable.
1. To maximize control and investment opportunities the City requires a personal computer ( "PC ")
on -line reporting system which will provide the daily ending ledger and collected balances from
the prior day for all accounts, a detail of the prior day's debits and credits, current day disbursements
including check numbers, and current day ACH. This information should be available by 10:00
A.M. The system shall also allow on -line intra -bank transfers, ACH and WIRE TRANSFER
origination instruction processes with user defined security requirements.
2. Process of all deposited items of checks and cash to include encoding services, same day credit for
deposits presented during business hours, clearing returned items twice, and return of stamped
duplicate deposit slips to the City within one business day of the deposit. The bank will notify the
City as soon as possible for any deposit adjusts. The bank will fax a copy of deposit adjustment,
including supporting detail, to the City prior to posting.
The City offers its employees an automatic payroll deposit service. The City will furnish a NACHA
compatible file which is transferred to the bank via software provided by the bank.
4. The City offers a direct debit payment system for utilities charges. Approximately 1,200 customers
use this payment method, and 5 to 10 customers are added each month. The direct deposit service
accounts for approximately $160,000 monthly.
5. General wire transfer and ACH services shall include a customer direct -link to allow initiation of
wire transfers and ACH transfers via PC.
6. Account reconcilement services:
Bank statements on all accounts shall be available within five (5) working days after the close of the
calender month. Statements shall include transaction activity made on the last day of the period.
The bank will furnish imaged copies of checks and deposits in numerical order for all accounts. The
bank statement for the Deposit Account will include a listing of miscellaneous debits and credits
which are balanced to the bank statement (partial account reconciliation). For both the Operating
Disbursement and Payroll Accounts, the City requires a report reflecting all items paid in serial
sequence which is balanced to the bank statement (partial account reconciliation).
The City also requires that achieved canceled checks and bank statements be furnished on CD -ROM.
7. Account Analysis Statements:
The City intends to pay for all account services provided by the bank and set forth on the Bid Form.
The City shall require account analysis each month with all accounts grouped to obtain maximum
credit for balances which shall clearly show volume counts, fees charged and total prices for
servicing accounts. The account analysis shall also show average ledger balances, average collected
RFP DEPOSITORY SERVICES OCTOBER 1999 Page 6
balances, interest rates, and earnings credit calculations. (Please attach a sample account analysis
statement.)
Safekeeping fees for the City's investments shall also be set up on account analysis and paid
monthly. The City requires that all charges for securities clearance and safekeeping, including fees
passed on from the Federal Reserve Bank, be on account analysis and not be deducted from each
security settlement.
Investments:
The City of Georgetown intends to manage its own investment portfolio. Therefore, the City
reserves the right to withdraw, from time to time, any amount of City funds on deposit in any City
account and invest those fund in accordance with the City's investment policy.
9. Securities Clearance and Safekeeping of City Investment Securities:
Investment securities purchased by the City will be delivered either by book entry at the Federal
Reserve or physical delivery to the depository bank's correspondent New York bank as outlined
below:
• The purchase of all securities shall be on a delivery versus payment basis. Monies will not
be released by the City's safekeeping bank until securities are received at the Federal
Reserve Bank or further credit to the City's safekeeping bank. In this manner, the City will
always have possession of either its securities or its monies.
• The City will send written instructions to the securities clearance department for each
transaction. The City expects the bank to give prompt notification of any settlement
problems regarding the transaction. The bank will then notify the Director of Finance and
Administration via E -mail, confirming the completion of the securities transaction.
• All securities will be perfected in the name of the City of Georgetown. The bank will
forward a copy of the Federal Reserve safekeeping receipt of investments to the City,
evidencing the securities being held.
• The bank will also provide a monthly listing of all securities held in safekeeping on behalf
of the City.
B. Collateral Requirements
1. Depository Pledge Agreement
As security for the deposits of the City, the bank shall pledge to the City securities equal to
105% of their market or par value, whichever is lower, of the largest total balances the City
maintains in the bank,, less the amount provided by the Federal Deposit Insurance
Corporation (FDIC). These aggregate balances are estimated not to exceed $1,500,000.
This Pledge shall be evidenced by a separate Depository Pledge Agreement in accordance
with the requirements of State and Federal Law. Please attach a copy of the bank's
Depository Pledge Agreement.
RFP DEPOSITORY SERVICES OCTOBER 1999 Page 7
The securities comprising of the pledge shall be calculated using market value or book value
whichever is lower. The securities pledged shall satisfy statutory requirements and the
City's Investment Policy.
Release of Collateral - No collateral will be withdrawn, released or substituted
without the prior written consent of the City's Director of Finance and
Administration. The City will release collateral only if it is satisfied that such
collateral is not needed as security for the City's deposits.
2. Third Party Safekeeping - Original safekeeping receipts from the third party
trustee /custodial Financial Institution for all securities pledged to City pursuant to
Depository Agreement will be provided to the City. It is understood and agreed upon that
the City will have a first and prior lien upon all securities which are pledged to City.
Safekeeping Receipts - In order to collateralize additional City deposits in excess
of collateral then pledged to City, original safekeeping receipt (see above) and the
market value of additional securities pledged to City shall be provided to the City
within five business days of such additional deposit.
Monthly Report - A monthly listing of all securities pledged to City showing
complete security description, face value, market value and safekeeping receipt
number is required; such listing to be provided no later than five business days
following the thirtieth of each month.
Certification and Delivery of Collateral - In accordance with State law, the Board
of Directors of the selected Depository Bank will be required to provide a resolution
of certification approving the commitment and delivery of the collateral to the
safekeeping institution not later than five days before the commencement of the
contract period.
C. Direct Fees for Services Provided
The City desires an equitable reimbursement arrangement for the banking services provided. A
direct fee basis for services provided by the bank with an offsetting earning credit for available
balances is the method preferred by the City. Therefore, the monthly account analysis will be
considered an invoice and monitored accordingly. The bank will calculate the total monthly service
costs for all accounts and the total monthly earnings credit for all accounts on the account analysis
statement. Credit should be given the City for all account balances grouped together and not just
single account balances. A detailed explanation should be attached to the Bid Form explaining the
bank's proposed method for compensating the City for balances maintained. If the City discovers
it has been overcharged after payment has been rendered, the City will be reimbursed.
It is the City's intent that the Bid Form reflects all the services and prices for which the bank will
expect payment. It is understood that volumes indicated are estimates and that actual volumes will
vary from month to month. Should the City request a service or services not presently included on
the Form, it is agreed that the bank's unit price will be no more than the price appearing on its most
recently published price for cash management services.
RFP DEPOSITORY SERVICES OCTOBER 1999 Page 8
D. Funds Transfer Requirements
The depository shall give both ledger and collected credit the day of receipt for incoming wire
transfers, regardless of the time the bank receives the transfer through the Fedwire system. Credit
to City accounts for incoming wire transfers should be immediate. The depository shall allow the
City to wire funds out in anticipation of an incoming wire transfer later in the day.
E. Overdrafts
The City does not intend to have an overdraft position on any of its bank accounts singly or net
throughout the course of the depository contract. In the event a check or checks are presented for
payment on any City account with insufficient funds available for payment, the City will require the
bank to pay said check and promptly notify the Director of Finance or the City's designated
representative of the existence of the overdraft situation. The City agrees to cover the overdraft
within a maximum of one business day.
Define in the Bid Form what the bank considers an overdraft to a negative balance in any individual
City account or a negative balance in all City accounts collectively. The City would expect the
depository to view all City accounts together for purposes of charges on overdrawn collected
balances.
F. Other Stipulations
The successful bidder shall notify the City in writing within ten (10) days of any changes
in federal or state regulations or laws that would affect the depository agreement. The bank
shall also notify the City of any services which become available to the City throughout the
contract period.
2. The City reserves the right to negotiate all elements which comprise the proposal to ensure
that the best possible consideration be afforded all concerned. The City reserves the right
to reject any and all proposals and to re- solicit for proposals in such event.
All checks deposited by the City which do not clear the first time, should be submitted a
second time before returning them to the City.
4. The bank's records relating to the City of Georgetown's accounts shall be open to review
by either City staff or City appointed independent auditors during normal business hours.
5. The proposing bank shall submit a copy of the last annual financial statements along with
the last two quarterly FDIC CALL reports, and provide any public information concerning
changes in the ownership, management or financial position of the bank or its parent
holding company.
6. Notwithstanding any other provision of this agreement which may be to the contrary, this
agreement and the respective rights and obligations of the parties shall remain in full force
and not otherwise be affected by the merger of the proposing bank.
RFP DEPOSITORY SERVICES OCTOBER 1999 Page 9
7. The contract shall be automatically extended up to 60 days if the City is actively proceeding
with re- bidding procedures but for whatever reason, cannot finalize the selection process
by the end of the contract period.
The City shall require a review meeting with the bank officer at least once every six months
to evaluate the working relationship between the City and the depository bank and address
any problems that may arise.
RFP DEPOSITORY SERVICES OCTOBER 1999 Page 10
V. BIDDING INSTRUCTIONS/REQUIRM[ENTS
Proposals should be returned in sufficient time so as to be received on or before:
10 :00 PM, November 1, 1999
It is the bank's responsibility to ensure that it has received any and all addenda related to the proposal. It
shall be the sole responsibility of the respondent to ensure that its proposal is received by the Purchasing
Office within the time limit indicated. The proposal must include a statement that it is valid for a minimum
period of 30 days subsequent to November 1, 1999. Late proposals will not be considered.
A.
11
Response Instructions
Five copies of the proposal should be returned in a sealed envelope bearing the name and address
of the respondent. The proposal may be mailed or hand delivered as follows:
If mailing,
use this address:
City of Georgetown
Purchasing Office
P. O. Box 409
Georgetown, TX 78627
Required Sections
If hand delivered,
use this address:
City of Georgetown
Purchasing Office
113 E. 8th Street
Georgetown, TX 78626
Proposals must be submitted containing the following sections in the order indicated:
1) Cover Letter
2) References
3) Additional Data and Other Requested Information
4) Bid Form
1. Cover Letter - This section should contain the name of the proposing Financial Institution,
the address of the proposing office, and the individuals authorized to answer technical,
price, and/or contract questions together with their telephone numbers and mailing
addresses. The cover letter must also be signed by a person authorized to bind the Financial
Institution.
2. References - Indicate the bank's background in providing financial services to public
organizations. List any financial services contracts currently in place. Provide a list of
client references using the bank's services. Include client name, contact persons, and phone
numbers.
3. Additional Data and Other Requested Information - Give any additional information
considered essential to the proposal in this section. Alternative proposals which you feel
may benefit the parties may also be advanced. Include any requested examples of schedules
or reports.
RFP DEPOSITORY SERVICES OCTOBER 1999 Page 1 I
4. Bid Form - The City contemplates a price per item fee proposal with monthly payments
for services rendered.
The compensation proposal should be documented by completing the attached "Bid Form"
and submitting it to the City with the RFP. It is intended that the "Bid Form" include all of
the unit prices for services requested. All volumes indicated are estimates. The contract
award will not necessarily be made to the bank that provides the lowest cost proposal but
rather to the firm that submits the most responsive proposal meeting the City's requirements.
In addition, the bank should include as a part of the total price the cost of any services not
itemized on the "Bid Form" which the bank feels must be included. The bank may also
include the billing rate for special projects which may be entered into during the contract
period but are not a part of the total cost proposal. Volume discount prices may be indicated
where appropriate.
C. Other Information
The City reserves the right to request additional information or to meet with representatives
from proposing banks to discuss points in the proposal before and after submission, any and
all of which may be used in forming a recommendation.
2. The final appointment of a depository bank shall be made by the City of Georgetown City
Council. The bidder may be required to enter into a contract which incorporates all of the
obligatory points in this RFP. Otherwise, an ordinance shall be adopted accepting the
bank's completed RFP as the OFFICIAL BID FORM with accompanying related schedules
and materials called for in this RFP.
3. Upon being awarded the contract, the depository bank shall designate an individual to be
the official contact person for all correspondence. The City of Georgetown's official
contact person shall be Ms. Micki Rundell, Accounting Director. The bank shall be
responsible for training and communicating the terms of this contract to bank employees.
4. This RFP has been reviewed and approved by the Director of Finance and Administration
for the City of Georgetown.
RFP DEPOSITORY SERVICES OCTOBER 1999 Page 12
D. Submission Checklist
1. Cover Letter
2. Reference Listing
3. Completed BID FORM
4. Samples of the following:
• Bank statements
• Reports from Cash Management System/Software
• Partial account reconciliation statement
• Safekeeping agreement for the City's investment securities
• Monthly pledged collateral report
• Safekeeping agreement for collateral
• Controlled disbursement agreement
• Funds transfer and ACH transaction agreements
• Stop payment agreement
5. Availability of funds explanation with clear deadlines indicated
6. Annual financial statement of the bank along with the last two quarterly FDIC CALL
reports
RFP DEPOSITORY SERVICES OCTOBER 1999 Page 13
RFP DEPOSITORY SERVICES OCTOBER 1999 Page 14
CITY OF GEORGETOWN, TEXAS
DEPOSITORY BANK SERVICES
BID FORM- PART I
October 1999
BANK SERVICE REQUIREMENTS
SERVICE DESCRIPTION
AVERAGE
MONTHLY
ACTIVITY
UNIT
PRICE
TOTAL
CHARGE
Number of Accounts
Master Deposit Account
3 Total
1
Operating Disbursement Account
1
Payroll ZBA Account
1
Cash Controfl/Cash Management Program
I
Account Analysis
1
Items Deposited:
Local Items
885
Transit Items
8,759
Deposits Posted
Average Monthly Deposits: $2,600,000
85
Credit Card Processing Deposits
Average Credit Card Deposit. $107,025
51
ACH Utility Draft Items:
Average Monthly Deposit ACH Drafts: $145,783
1,100
Returned Items
5
Returned Items
20
Stop Payments
1
Wire Transfers: (other than for Controlled Disbursement)
Incoming
6
Outgoing
3
Controlled Disbursement Items - A/P Checks Paid
Avg Monthly A/P Checks Issued. $2,272,745
836
Payroll Checks Paid:
Avg Monthly PR Checks Issued. $288,870
430
Payroll ACH Direct Deposit Items:
Avg Monthly Direct Deposit: $350,000
397
CD Rom for archived statements and checks
1
ACH File Origination
Payroll Direct Deposit - 26 payrolls annually
2
Utility Payment Drafts - 48 cycles annually
4
IRS Payroll Tax Remittance - approx 36 annually
3
Watch Signature
5
Investment Requirements:
Safekeeping Maintenance at FRB
1
Securities receivedIdelivered at FRB
21
Non-Recurring Charge Rates:
3-Part Deposit Slips
Check forms -
3-Part continuous feed check stock
Locking Depository Bags
35
0:1bank1RFPSVC.WK4
CITY OF GEORGETOWN, TEXAS
DEPOSITORY BANK SERVICES
BID FORM - PART II
October 1999
BANK SERVICE REQUIREMENTS
1. Provide the name and location of the disbursement bank which will be handling the City's checks.
2. Please describe the bank's Cash Management Service /Software and any specific computer requirements
necessary to run the software. List its capabilities and attach sample reports generated from this system.
3. Please specify days on which the disbursement bank would be closed or would not receive cash letters.
4. Are damaged and/or reject items re- entered into the system the same day and once reprocessed, are these
items included in the notification cut -off time?
5. What back -up arrangements for check processing exists in case of any system failures?
6. In order to fund check presentments and manage the City's bank accounts and investments, check
presentment totals must be made known to the City no later than 10:15 A.M. Notification after this time
may result in the City not being able to adequately fund checks. If an overdraft occurs as a result of late
notification, the City does not expect to pay any overdraft charges. How many times has the bank missed
notification deadlines within the last 6 months and how would it handle any potential overdraft situation?
7. Please describe the Partial Reconcilement Service offered by the bank and attach a sample reconcilement
statement.
8. How long are stop payment orders effective? Does the bank offer automated stop payment through its cash
management system?
9. State whether the bank would offer any type of special checking, money market or loan account, or other
incentive for City employees.
10. The City currently utilizes CD -Rom technology for maintaining its canceled checks. Describe any media
resources available, including CD -Rom, for this purpose. What is the length of time original canceled
checks would be kept by the bank?
II. Describe the bank's position with regards to Controlled Disbursement services? What factors might have
a significant impact on the Controlled Disbursement services over the next two years? Attach any specific
Controlled Disbursement agreement in keeping with the nature of this RFP which the City would be asked
to sign.
12. Does the bank offer any type of automatic sweep account where excess City funds could be invested at a
higher interest rate than other short-term investment options (i.e. TexPool)?
13. Does the bank have any significant problems noted by regulatory agencies in the past 24 months? If so,
please explain. Indicate the bank's capital to assets and return on assets ratios for the last 3 years.
14. Please describe the process by which service problems can be resolved. What person or organizational unit
is available for complaint or problem resolution?
15. Please list other public funds customers which the bank currently serves as a depository, along with the
name and telephone number of a contact person.
September 22, 1999
City of Georgetown
Purchasing Office
113 E. 8th Street
Georgetown, TX 78626
First Texas Bank Georgetown is pleased to provide the attached proposal for depository
services to the City of Georgetown for the period November 1, 1999, through October
31, 2001. This proposal is valid for 30 days from September 22, 1999.
Our main office is located at 900 S. Austin Avenue in Georgetown. Our mailing
address is P. O. Box 649, Georgetown, TX 78627. Questions concerning this proposal
or banking services after the bid process may be directed to Barry J. Haag, Senior Vice
President/Cashier at 863-2567. If Mr. Haag is not available, please contact me
personally. To reach us by fax, use 863-9893.
First Texas Bank has operated in Georgetown since 1898. Currently, we have three
locations to personally serve customers. Our locations have a total of 14 drive-in lanes
to facilitate quick service. Two locations offer Saturday lobby hours. To enhance our
personal service, we have seven ATM's in the Georgetown area plus a 24-hour account
information line.
Thank you for your consideration of this proposal. Please call if you have any
questions.
Sincerely,
FIRST TEXAS BANK
Gentry
E. L. Gr
President
POST OFFICE BOX 649, GEORGETOWN, TEXAS 78627, PHONE 512/863-2567
REFERENCES
First Texas Bank currently serves the following public entity.
Georgetown Independent School District
David McLaughlin
Assistant Superintendent
943-5009
CITY • GEORGETOWN, TEXAS
DEPOSITORY BANK SERVICES "I
BID FORM - PART I
September 1999
BANK SERVICE REQUIREMENTS
SERVICE DESCRIPTION
AVERAGE
MONTHLY
ACTIVITY
UNIT
PRICE
TOTAL
CHARGE
Number of Accounts
Master Deposit Account
3 Total
1
5.00
5.00
Operating Disbursement Account
1
5.00
5.00
Payroll ZBA Account
I
9.nn
5.00
Cash Controll/Cash Management Program
1
0
0
Account Analysis
1
0
Items Deposited:
Local Items
885
.025
22.13
Transit Items
8,759
394.16
-045
Deposits Posted
... Average Monthly Deposits: $2,600,000
85
.25
21.25
Credit Card Processing Deposits
Average Credit Card Deposit. $107,025
51
2%
ACH Utility Draft Items:
Average Monthly Deposit ACH Drafts. $145,783
1,100
.01
11.00
Returned Items
5
2.50
12.50
Returned Items
20
2.50
50.00
Stop Payments
1
10.0
10.00
Wire Transfers: (other than for Controlled Disbursement)
Incoming
6
2.00
12.00
Outgoing
3
5.00
15.00.
Controlled Disbursement Items - A/P Checks Paid
----.Avg Monthly AIP Checks Issued- $2,272,745
836
.05
41.80
Payroll Checks Paid:
Avg Monthly PR Checks Issued. • $288,870
430
.05
21.50
Payroll ACH Direct Deposit Items:
Avg Monthly Direct Deposit. $350,000
397
.01
3.97
CD Rom for archived statements and checks
I
N/A
0
ACH File Origination
------ - Payroll Direct Deposit - 26 payrolls annually
2
5.00
10.00
Utility Payment Drafts - 48 cycles annually
4
IRS Payroll Tax Remittance - approx 36 annually
3
5.00
15.00
Watch Signature
5
5.00
25.00
Investment Requirements:
Safekeeping Maintenance at FRB
1
75.00
75.00
Securities received/delivered at FRB
21
2.00
42.00
Non-Recurring Charge Rates:
3-Part Deposit Slips
-
Bank Cost
Check forms -
3 -Part continuous feed check stock
Bank Cost
Locking Depository Bags
35
1-:V[VVL:,> I Mt V*-Ki VG.Wr,4
2% Discount rate When electronic terminals nals are
used. Equip.-nent paid for by City at Banks cost.
CITY OF GEORGETOWN, TEXAS
DEPOSITORY BANK SERVICES
BID FORM - PART 11
September 1999
BANK SERVICE REQUIREMENTS
1. Provide the name and location of the disbursement bank which will be handling the City's checks.
First Texas Bank Georgetown
900 S. Austin Avenue
Georgetown, TX 78626
2. Please describe the bank's Cash Management Service/Software and any specific computer requirements
necessary to run the software. List its capabilities and attach sample reports generated from this system.
See Cash Management Svstem handout
3. Please specify days on which the disbursement bank would be closed or would not receive cash letters.
Federal Bank Holidays, Saturdays, Sundays
4. Are damaged and/or reject items re-entered into the system the same day and once reprocessed, are these
items included in the notification cut-off time?
Yes
5. What back-up arrangements for check processing exists in case of any system failures?
Emergency site
Tested twice each year in Dallas, Texas
6. In order to fund check presentments and manage the City's bank accounts and investments, check
presentment totals must be made known to the City no later than 10;15 A.M. Notification after this time may
result in the City not being able to adequately fund checks. If an overdraft occurs as a result of late
notification, the City does not expect to pay any overdraft charges. How many times has the bank missed
notification deadlines within the last 6 months and how would it handle any potential overdraft situation?
None missed.
Bank does not charge fees for services not provided.
7. Please describe the Partial Reconcilement Service offered by the bank and attach a sample reconcilement
statement.
See Cash Management System handout
How long are stop payment orders effective? Does the bank offer automated stop payment through its cash
management system?
6 months
Yes
9. State whether the bank would offer any type of special checking, money market or loan account, or other
incentive for City employees.
Bank offers free checking with its product offering
10. The City currently utilizes CD -Rom technology for maintaining its canceled checks. Describe any media
resources available, including CD -Rom, for this purpose. What is the length of time original canceled
checks would be kept by the bank?
Bank returns checks with bank statement to customer at
end of each month.
11. Describe the bank's position with regards to Controlled Disbursement services? What factors might have
a significant impact on the Controlled Disbursement services over the next two years? Attach any specific
Controlled Disbursement agreement in keeping with the nature of this RFP which the City would be asked
to sign.
Bank memo post's daily incoming ACH and incoming cash letter
items by 8.00 a m each day. Final posting will sweep money
required to cover items from the master account.
No separate agreement required.
12. Does the bank offer any type of automatic sweep account where excess City funds could be invested at a
higher interest rate than other short-term investment options (i.e. TexPool)?
M
13. Does the bank have any significant problems noted by regulatory agencies in the past 24 months? If so,
please explain. indicate the bank's capital to assets and return on assets ratios for the last 3 years.
1998 1 9.7 1996
C /A =10 32% ROA =i 24% CIA =11 09% ROA= 95% C /A =10 901 ROA =1.22!
14. Please describe the process by which service problems can be resolved. What person or organizational unit
is available for complaint or problem resolution?
Lauri Tulloch Asst Cashier /Bookkeeping Manager
Barry J. Haag Sr. Vice President /Cashier
E. L. Gentry President /CEO
15. Please list other public funds customers which the bank currently serves as a depository, along with the name
and telephone number of a contact person.
Georgetown Independent School District
David McLaughlin 943 -5009
First Texas Bank Georgetown can perform all services addressed in Section IV of the
bid package except the following:
IV. Banking Services and Requirements
A.6. We currently do not provide imaged check copies or information
on CD -ROM.
D. Our item processing cut -off time for wire transfers is 3:00 p.m.
Wires received after this time will be processed next day. We will not
initiate an outgoing wire without collected funds already in the bank.
E. An overdraft will be considered by the bank when the combined
balances of all city accounts will not cover items presented. Overdrafts
to $10,000 will be covered automatically. Overdrafts above $10,000
will be negotiated as to pay or return at the time of occurrence. An
overdraft fee of $10.00 will be charged for each item. The charge
will be listed on the analysis statement.
Funds Availability
Over the Counter Deposits made by the City prior to 2:00 p.m. will be
processed that day. Deposits made after 2:00 p.m. will be processed that day
if time allows. If not, they will be processed the next business day. Wire
transfers received by 3:00 p.m. will be posted same day. Wires received after
3:00 p.m. will post next day.
EXAMPLE ONLY
ComMexuwL ACCOUNT ANALYSIS
_
ACCOUNT NAME uNUMBER: City mGeorgetown DATE 8-31-99
Average Daily Posted Balance
$1,500,000.00
Average Daily Collected Balance
1,400,000.00
Less Reserve Requirement
42.000u0
Investable Balance
1.358.000.00
MONTHLY EARNINGS CREDIT ow INVESTABLE BALANCE
$*.rrsaa
Average ou day r Bill Ask Rate less
.50/12
---------
sxpewosu:
voLome:
Unit Price
TOTAL COST-
Account Maintenance
x
------- ------
soo
$15.00
Debits Posted
1266
oux
63.30
Credits Posted
os
o�uo
21.25
Items Deposited-Local
oua
0.025
22.13
Items Deposited-Transit
omo
0.045
394.16
Returned Checks
u»
uao
62.50
NSF Checks
-------'
1ouo
----------
Deposit error Correction
1
3.00
3.00
o:anneomers*oano
____
u�10
Change Orders-rolled coins
o�o5
Stop Payments
1
10.00
10.00
FDIC Insurance
_____
.0000/100
________
Incoming Wire Transfers
____
s
cuo
,u.00
Outgoing Wire Transfers
u
o�uo
15.00
xcx Drafts xDeposits
1497
0o1
me,
Aoo File Origination
y
soo
45.00
Watch Signature
o
s�uo
usuo
Collateral Cost unmzmw
75.00
Securities eome/atFRB
------ ----- --
21
u�uo
--'---'----
42.00
_______
ronxLcxpewas
OTHER THAN INTEREST
*820.30
Interest Paid at 4%
______
5.095.78
nOrxLcxpswoe:
5.916.08
NET PROFIT <uouo>:
__ ------ _ --- ____
(m.140.45)
POST OFFICE BOX O4S GEORGETOWN, TEXAS r8O27 PHONE 512/863-2567
Sample Safekeeping, Pledge and Depository Agreement
This agreement is entered into the / day of & , 1999, by and between
the City of Georgetown, Texas (the "City") and First Texas Bank of Georgetown (the
"Bank "), a state banking association, to establish a depository for the City's funds.
The parties agree as follows:
Section 1: The City's General Depository Service needs are hereby established at the
Bank which shall be an official depository bank of the City for the period beginning
November 1, 1999, and ending October 31, 2001. The Bank shall honor only those
checks, drafts, warrants, or written orders drawn on said Fund signed by an authorized
signer of the City.
Section 2: All designated signatories are authorized to sign any check, draft, warrant,
or written order which may be drawn on said Fund. The City Secretary is hereby
authorized to certify to the Bank the genuineness of such signatures, any change in
authorized signatories, and the genuineness of the signatures of the new signatories, and
the Bank is authorized to accept and rely upon such certificates.
Section 3: The parties hereby agree to the terms provided for in the Request for
Proposal and First Texas Bank's Response to the Request for Proposal, attached as
exhibits. It is understood and agreed that when a conflict exists between the Request
for Proposal and First Texas Bank's Response to the Request for Proposal that the
response as submitted by First Texas Bank will prevail. It is understood that certain
specifications in the Request for Proposal were changed and/or bid differently by First
Texas Bank.
Section 4: The Bank, as an official depository for the City, shall deposit with and
pledge to the City securities as provided under the laws of the State of Texas.
Securities shall be deposited and pledged in safekeeping by the Bank at such other
reputable bank or banks as may have safekeeping accounts for the Bank. A written
schedule of the deposited and pledged securities shall be furnished to the City by the
Bank as requested by the City, and the banks holding such deposited and pledged
securities in safekeeping shah furnish the City with appropriate safekeeping receipts.
The Bank shall have the privilege of exchanging or substituting the Approved Securities
deposited and pledged. Securities pledged secure deposits of City funds indemnifying
the City against loss of City funds,. Such securities do not secure the performance of
the depository contract.
Section 5: The Bank shall faithfully perform all of the duties and obligations required
by the laws of the State of Texas for depositories of municipal funds, shall, upon
presentation, pay all checks duly authorized and drawn on it against funds of the City
on demand deposit, and upon termination of its designation as a depository of the City,
shall promptly turn over to its successor all funds, property, and things of value coming
into its hands as a depository of the City.
Section 6: This Agreement shall be deemed and construed to comply with the
applicable provisions and requirements of the laws of the State of Texas governing
depositories for public funds, and any part, section, or provision herein not complying
herewith shall be interpreted, applied, and executed so as to effectuate such compliance.
ATTEST:
City Secretary
t ' ' lWT4103MN M911 Lf) 3►ts
City Attorney
THE CITY OF GEORGETOWN:
ayor
Accepted: FIRST TEXAS BANK - Georgetown
E. L. Gentry, President
Date