REQUEST FOR PROPOSAL FOR BANKING SERVICES

Transcription

1 REQUEST FOR PROPOSAL FOR BANKING SERVICES Objective The objective of this Request for Proposal RFP is to identify the financial institution that can offer the highest quality services at the lowest cost to the City and its taxpayers. Banking services provided will be in accordance with the Bank Depository contract and agreements executed between the City and the Depository Bank. Contract Period The City of Balch Springs is seeking a financial institution to serve as depository for a (2) two year term beginning approximately October 1, 2017 and ending approximately September 30, 2019, with one, three-year extension option ending September 30, 2022 or until such time a successor depository is named. Scope of Services The City of Balch Springs is seeking proposals from eligible financial institutions to become the City s Banking Services Depository. This includes the basic services of receiving deposits, paying vendors and payroll by checks and ACH, wiring funds out, receiving funds wired in, positive pay, other ACH services, and other business banking activities. This agreement will not cover any investment transaction activities other than safekeeping services and possible purchase of certificates of deposit within a predefined limit. The City plans to manage its own investment portfolio. The philosophy incorporated into this Request for Proposal (RFP) is to solicit comparable market charges for services provided and to pay for services provided by the Depository. The RFP specifications and evaluation criteria have been developed and are described herein. Only banks, credit unions or savings and loan associations with branches/locations within the City of Balch Springs are eligible to submit a RFP. The selected depository will be responsible for performing all duties and obligations necessary to maintain the various accounts of the City of Balch Springs. Below is a current listing of these accounts: Utility Fund Reserves Depository Account Payroll Fund ZBA Debt Service Fund Employee Insurance Trust Fund ZBA Section 8 Fund Economic Development Type A Operating Fund Economic Development Type A Investment Fund Economic Development Type B Operating Fund Economic Development Type B Debt Service Economic Development Type B Micro Loans

2 Department of Justice Grant Fund

3 Department of Treasury Forfeitures Department of Justice Forfeitures State Chapter 59 Law Enforcement Fund The Depository Account will constitute almost all of the City s banking business. The average balance will be approximately $2,387,898 with a maximum of $5,000,000. The Employee Benefit Trust Fund is to be set up as a Zero Balance Account with the Depository Account to pay health insurance premiums. The Payroll Fund ZBA is to be set up as a Zero Balance Account with the Depository Account to cover payroll. The Debt Service Fund accumulates property tax collections that are transferred from the City s Depository Account, from the Dallas County Tax Collectors Office, to be held in reserve for meeting the Debt Service requirements. The Economic Development Type A/B Bank accounts for operating and debt service activities associated with the Balch Springs Industrial Economic Development Corporation (Type A) and the Balch Springs Community and Economic Development Corporation (Type B). The Department of Treasury Forfeitures, Department of Justice Forfeitures, Department of Justice Grant Fund, and the State Chapter 59 Law Enforcement Fund keep track of seizures, forfeitures, and grants awarded to the City. These accounts are restricted to law enforcement purposes. The overall average monthly balance for all City accounts is $6,962,335. Individual monthly balances for any of the other checking accounts may be obtained upon request. The City of Balch Springs reserves the right to open or close any number or type of accounts throughout the contract period, as it deems necessary. Items for consideration in this proposal are as follows: Charge for keeping City of Balch Springs depository records Service charges on checking accounts Wire transfer fees (Outgoing) Wire transfer fees (Incoming) ACH Support - Maintenance Charge for safety deposit boxes Charge for cashier s checks and/or money orders Charge for overdrawn accounts Charge for stop payment on a check services Charge for preparation of monthly statements Charge for printed checks and deposit slips Charge for night deposit or deposit bags Interest rate on daily balance in checking account Charges and/or fees for overdraft protection Current annual percentage yield on NOW accounts Current annual percentage yield on Money Market accounts

4 Bidder shall pledge approved securities or have insurance in an amount sufficient to cover the total amount of all funds held by the bidder not covered by FDIC. Securities pledged will be provided to the City either in physical form or in the form of safekeeping receipts plainly marked to show pledge. Average monthly balance for the City Depository Account and the Utility Fund Reserves is as follows: City Depository Acct: $2,324,171 The overall average monthly balance for all City accounts is $6,903,473. Individual average monthly balances for any of the other checking accounts may be obtained upon request. Securities Pledged As security for the deposits of the City o f Balch Springs, the bank shall pledge in the name of the City securities equal to or greater than the total ledger balances the City of Balch Springs maintains in the bank, less the amount of coverage provided by the Federal Deposit Insurance Corporation (F.D.I.C.). The City limits eligible collateral to only securities allowed by the Texas PFIA that are marketable in secondary markets, are easily valued by published quotations and that are highly liquid, preferably U.S. Treasuries. The securities so pledged, the amounts thereon and the time for pledging same shall satisfy the requirements of Article 2560 Tex. Rev. Civ. Stat. Ann., and any subsequent statutes passed under Texas law. Repurchase Agreements or Collateralized Mortgage Obligations are not acceptable as collateral. If the market value of the pledged securities falls below the total ledger balances of the City s account at any time, the City will require more securities to be pledged. The bank shall provide the City a report of securities pledged at the end of each month or at any time requested by the Finance Director or a designated representative. This report should reflect the following information at the end of each month: Total pledged securities itemized by: (a) Name. (b) Type/description/cusip number. (c) Par value. (d) Market value at month end. (e) Maturity date. (f) Moody s, Fitch s or Standard and Poor s rating. In addition, the securities pledged shall be held in safekeeping under the name of the Depository Bank and pledged to the City of Balch Springs. Safekeeping must be done at the Federal Reserve Bank. The safekeeping agreement shall clearly state that the Federal Reserve Bank is instructed to release the collateral to the City of Balch Springs if the City has determined that the bank has failed to pay on any accounts, has been closed by a regulatory authority, or is in default of this agreement, and if the instructions for release have been formally requested by the City Council by ordinance or resolution.

5 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 that a check or checks are presented for payment on any City controlled disbursement account where there are insufficient funds available for payment, the City will require the Depository Bank to pay said checks and promptly notify the Chief Financial Officer or designated representative of the existence of the overdraft situation. The City agrees to cover the overdraft within one business day. Calendar of Events Target Date July 7, 2017 and July 26, 2017 Description of Events Advertise Bank depository public bid notice on the city bid website July 26, 2017 Bid Due Date - Receive proposals from interested banks July 27, 2017 Review staff recommendations with City Management. July 27 or until City Attorney approval Contract revision and approval by City Attorney August 14, 2017 Council Agenda to award the contract. September 30, 2017 New Bank Depository contract period begins. Bidding Instructions All bids must be in a sealed envelope plainly marked BANK SERVICES BID - ATTN: CHIEF FINANCIAL OFFICER, and delivered to the main lobby receptionist at the Balch Springs City Hall at Alexander Road, or mailed to the City of Balch Springs, Chief Financial Officer, Alexander Road, Balch Springs, TX, All bids must be received no later than 2:00 p.m. on Friday, July 21, 2017.

6 Bid Evaluation and Selection Criteria The City staff shall review the submitted proposals carefully and make recommendations to the City Council. The recommendations shall be based on the proposal determined to be in the best interest of the City and taxpayers. Proposers must comply with all requirements in this section for further consideration of the bid proposed. The criteria to be used will include, but are not limited to the following considerations: Ability of the proposer to perform the requested services in the RFP, and provide a fee schedule to be implemented when contract goes in effect; Ability to meet the legal qualifications and the terms and conditions specified in the RFP; Cost of the proposed banking services and the cost of conversion and implementation of banking services; Financial strength of the Financial Institution; Financial institution s proximity to various facilities in the city; Relevant experience, customer service and success managing similar accounts and banking services with municipal governments in Texas; Ability to provide an institutional Account Executive with whom the City can work to expedite various banking services issues and contracts; Ability to provide sufficient collateral for the deposits, within the parameters set by this RFP; Scope of Services offered; Completeness of the bid form and submission of the required information. Awarding of the banking services contract shall be made at a regularly scheduled meeting of the Balch Springs City Council. No award of such contract shall be considered final until it has been made by same City Council. Bidding Terms and Conditions The City of Balch Springs reserves the right to reject any and all bids, or to choose that bid which it deems the most advantageous to the City. The City, at its option, may consider and accept a bid, even though it may not be prepared and submitted in strict accordance with the provisions hereof, by waiving informalities, minor irregularities and/or technicalities.

7 The City reserves the right to request additional information or to meet with representatives from proposing organizations to discuss points in the proposal before and after submission, any and all of which may be used in forming a recommendation.

8 BID REPLY FORM Reference: Bank Services Bid Bid Date: Time: To: City of Balch Springs Alexander Rd Balch Springs, TX Attn: Bianca Sauls From: Ph: Proposed Charges for City Depository Accounts: Charge/Rate Charge for keeping depository records Service charges on checking accounts Service charges on savings accounts Wire transfer fees (Outgoing) Wire transfer fees (Incoming) ACH Support - Maintenance Charge for safety deposit boxes Charge for cashier s checks and/or money orders Charge for overdrawn accounts Charge for services to stop payment on a check Charge for preparation on monthly statements Charge for printed checks and deposit slips Charge for night deposit or deposit bags Interest rate on daily balance in checking account Charges and/or fees for overdraft protection Current annual percentage yield on NOW accounts Current annual percentage yield on Money Market accounts 1 of 2

9 Please list below any additional items that may be pertinent to this bid but are not mentioned above: Name: Signature: (Please print or type) Date: Title: 2 of 2