04-048 - R TOWN OF PROSPER, TEXAS RESOLUTION NO. 04-48
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, HEREBY AUTHORIZING THE MAYOR OF THE
TOWN OF PROSPER, TEXAS, TO EXECUTE AN AGREEMENT
BETWEEN THE TOWN OF PROSPER, TEXAS AND THE FIRST
STATE BANK OF CELINA - PROSPER BRANCH REGARDING THE
PROVISON OF BANKING SERVICES TO THE TOWN.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF PROSPER, TEXAS:
SECTION 1: The Mayor of the Town of Prosper, Texas, is hereby authorized to
execute, on behalf of the Town Council of the Town of Prosper, Texas, an Agreement
between the Town of Prosper, Texas, and the First State Bank of Celina — Prosper
Branch regarding the provision of banking services to the Town, a copy of which is
attached hereto as Exhibit "A" and incorporated herein for all purposes.
SECTION 2: This Resolution shall take effect immediately upon its passage.
RESOLVED THIS THE 28th day of April, 2004.
arles N. wanger,
ATTEST TO:
Shanae Jennin
Town Secreta
DEPOSITORY AGREEMENT
(The First State Bank)
This Depository Agreement ("Agreement") is made and entered into as of this 28th day of
April, 2004, by and between the TOWN OF PROSPER, TEXAS, a municipal corporation (the
"Town"), and THE FIRST STATE BANK, a state banking association (the "Bank") and on the
terms and conditions hereinafter set forth.
WHEREAS, on February 27, 2004, the Town requested proposals from eligible and
qualified financial institutions to serve as the Depository Bank to the Town and to provide a full
complement of bank services as set forth in the Request for Proposal (the "Request for
Proposal"); and
WHEREAS, on March 22, 2004, the Town received proposals from interested financial
institutions; and
WHEREAS, on April 13, 2004, the Town awarded the depository contract to the Bank;
and
WHEREAS, the Town and the Bank desire to enter into this Agreement for the purpose
of establishing the terms and conditions of the depository agreement in accordance with the
Request for Proposal; and
WHEREAS, the Town and the Bank agree to the terms and conditions set forth below.
NOW, THEREFORE, in consideration of the mutual benefits and premises contained
herein and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Town and the Bank agree as follows:
1. Request for Proposal. The Town's Request for Proposal dated February 27,
2004 is attached hereto as Exhibit "A" and incorporated herein for all purposes.
2. Bank's Depository Bank Services Proposal. The Bank's Depository Bank
Services Proposal is attached hereto as Exhibit "B" and incorporated herein for all purposes (the
"Bank's Proposal"). The Town accepted the Bank's Proposal as evidenced by the award of the
depository contract to the Bank on April 13, 2004.
3. Depository Agreement. The Town and the Bank hereby ratify and agree to be
bound by the terms and conditions set forth in the Request for Proposal, as completed and
responded to in the Bank's Proposal, copies of which are attached hereto as Exhibits "A" and
"B", respectively.
4. Term/Extension. The term of this Agreement shall be for a period of two (2)
years, commencing on May 1, 2004 and ending on May 1, 2006. The parties agree that the
Town shall have the right, at its sole discretion, to extend the term for an additional two-year
term (May 1, 2006 — May 1, 2008) upon written notice to the Bank. The parties further agree
that the Town may, in is sole discretion and upon written notice, extend any term of this
Agreement for ninety (90) days to transition to a new bank depository.
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5. Termination. The parties agree that Town may terminate this Agreement at any
time and for any reason.
6. Miscellaneous Provisions.
a. Assignment. This Agreement is not assignable without the prior written
consent of the Town.
b. Notices. Any notice provided or permitted to be given under this
Agreement must be in writing and may be served by depositing same in the United
States Mail, addressed to the party to be notified, postage pre-paid and registered or
certified with return receipt requested, or by delivering the same in person to such party
via a hand-delivery service, Federal Express or any courier service that provides a return
receipt showing the date of actual delivery of same to the addressee thereof. Notice
given in accordance herewith shall be effective upon receipt at the address of the
addressee. For purposes of notice, the addresses of the parties shall be as follows:
If to the Town, to: Town Administrator
Town of Prosper
113 W. Broadway
P.O. Box 307
Prosper, Texas 75078
If to the Bank, to: T. Bob McKnight
First State Bank
P.O. Box 1450
Celina, TX 75009
c. Sovereign Immunity. The parties agree that the Town has not waived its
sovereign immunity by entering into and performing its obligations under this Agreement.
d. Entire Agreement. This Agreement contains the entire agreement of the
parties with respect to the matters contained herein and may not be modified or
terminated except upon the mutual written agreement of the parties hereto.
e. Venue. This Agreement shall be construed in accordance with the laws
of the State of Texas and shall be performable in Collin County, Texas.
f. Execution. This Agreement is executed by the parties hereto without
coercion or duress and for substantial consideration, the sufficiency of which is forever
confessed.
g. Counterparts. This Agreement may be executed in a number of identical
counterparts, each of which shall be deemed an original for all purposes.
h. Authority to Execute. The individuals executing this Agreement on behalf
of the respective parties below represent to each other and to others that all appropriate
and necessary action has been taken to authorize the individual who is executing this
Agreement to do so for and on behalf of the party for which his or her signature appears,
that there are no other parties or entities required to execute this Agreement in order for
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the same to be an authorized and binding agreement on the party for whom the
individual is signing this Agreement and that each individual affixing his or her signature
hereto is authorized to do so, and such authorization is valid and effective on the date
hereof.
Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, executors, administrators, legal
representatives, successors and assigns, as allowed herein.
j. Savings/Severability. In case any one or more of the provisions
contained in this Agreement shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision thereof, and this Agreement shall be construed as if such invalid,
illegal or unenforceable provision had never been contained herein.
k. Miscellaneous Representations. Each signatory represents this
Agreement has been read by the party for which this Agreement is executed and that
such party has had an opportunity to confer with its counsel.
Miscellaneous Drafting Provision. This Agreement shall be deemed
drafted equally by all parties hereto. The language of all parts of this Agreement shall be
construed as a whole according to its fair meaning, and any presumption or principle that
the language herein is to be construed against any party shall not apply. Headings in
this Agreement are for the convenience of the parties and are not intended to be used in
construing this document.
IN WITNESS WHEREOF, the parties have executed this Agreement and caused this
Agreement to be effective on the date first written above.
TOWN OF PROSPE , T AS THE FIRST ST
By: By:
Ch s isw r, Mayor ob McKni , CEO
Date: Date: Z/--X •91
DEPOSITORY AGREEMENT(The First State Bank)—Page 3
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STATE OF TEXAS §
COUNTY OF COLLIN §
BEFORE ME, the undersigned authority, on this day personally appeared Charles
Niswanger, known to me to be one of the persons whose names are subscribed to the foregoing
instrument; he acknowledged to me he is the Mayor and duly authorized representative for the
TOWN OF PROSPER, TEXAS, and he executed said instrument for the purposes and
consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this && day of ,2004.
Shona.D Jerx ws /
.11.- myco rn;�lo0ExPire$ NOt-ry Public in and f e State of` s
j ,...
October 30,2007....
- S‘arn e. �itrt�r 1
Notary's Printed Name
THE STATE OF TEXAS §
COUNTY OF COLLIN §
BEFORE ME, the undersigned authority, on this day personally appeared T. Bob
McKnight, known to me to be one of the persons whose names are subscribed to the foregoing
instrument; he acknowledged to me he is the CEO and duly authorized representative for THE
FIRST STATE BANK, and he executed said instrument for the purposes and consideration
therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this -� day ofH. , 2004.
UC U-) P-k v1
tary Publ.'in and for the State of Texas
pYp�
0 JENNIFER WHISENANTa. n, c Y W�;SCVV V.
i �� t Notary Public
(1/4 STATE OF TEXAS ; Notary's Printed Name
�F F S My Comm.Exp.10/01/2007
DEPOSITORY AGREEMENT(The First State Bank)—Page 4
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EXHIBIT A
TOWN OF PROSPER
REQUEST FOR PROPOSAL
FOR
BANK DEPOSITORY SERVICES
BID NO.
Proposals Due By
12:00 P.M.
March 22, 2004
Amy Lightfoot
Town Hall
113 W. Broadway
P.O. Box 307
Prosper, Texas 75078
TABLE OF CONTENTS
I. INTRODUCTION 3
II. CALENDAR OF EVENTS 4
III. CRITERIA FOR EVALUATION AND SELECTION 5
IV, ACCOUNT ACTIVITIES 6
V. PLEDGE REQUIREMENTS 9
VI. INVESTMENT ACTIVITIES 10
VII. OVERDRAFT PROVISIONS 11
VIII. OTHER STIPULATIONS I )
IX. BIDDING REQUIREMENTS 13
X. OTHER MISCELLANEOUS 15
APPENDIX - TO BE COMPLETED BY BIDDER
I. BANK SERVICES REQUIRED
ATTACHMENTS - TO BE PROVIDED BY BIDDER
A. SAMPLE ACCOUNT ANALYSIS STATEMENT
B. FUNDS AVAILABILITY SCHEDULE
C. HISTORICAL INTEREST RATES
D. SAMPLE SAFEKEEPING AGREEMENT
E. FINANCIAL INFORMATION
F. POSITIVE PAY PROCEDURES
G. SECURITIES CLEARANCE PROCEDURES
I. INTRODUCTION
The Town of Prosper (Town) is requesting proposals from eligible and qualified financial
institutions to serve as the Depository Bank to the town and provide a full complement of
banking services as described below. The services provided will be in accordance with the
Request For Proposal and attachments, duly executed between the, Town and the selected
financial institution.
The philosophy incorporated into this Request For Proposal (RFP) is to solicit bids for banking
services currently utilized or open for consideration, based on projected activity and transaction
volumes The Town intends to invest its funds to mi xim ze interest ir:!nme as authorized by the
Town Investment Policy and permitted by state law. From this per spe:,tive, the rates the Town
can earn on its deposits and investments through the financial institution will be an important
element in consideration of the net cost/benefit of the relationship to the Town.
To insure the optimum utilization of taxpayer funds, the Town has implemented a comprehensive
and cost-effective cash inanag=:...onf '-'stem that requires an extensive array of banking services.
While the Town is receptive to suggestions and recommendations for improvement, the bids
should be submitted to address the services requested.
The new depository contract period shall be for two years beginning May 1, 2004 and ending
May 1, 2006. The Town shall have the right at its discretion to extend the term for an additional
two-year term (May 1, 2006 - May 1, 2008). The contract will also provide for an extension
period of ninety(90) days for the possible transition to a new bank depository.
The Bank Depository is an important component of the treasury and cash management system of
the Town. From this perspective, the Town is seeking a financial institution that is:
• capable of providing the most efficient services required by the Town at the least possible
cost;
• willing to be attentive and responsive to the Town's money matters; and
• financially sound.
This RFP is intended to serve as the bid form for the Bank Depository agreement. There are
several blanks to fill in and questions to be answered. The evaluation of the bidder's proposal
will be based on these responses. The RFP also requests certain information to be attached and
specifically labeled. Bids must be complete, address all aspects of the RFP, and include all
requested information to receive full consideration by the Town in the selection process.
The Town has designated Amy Lightfoot as coordinator for and contact person through the
bidding process. The Town desires to enter into a contract of mutual party benefit and will be
happy to answer all questions pertaining to this RFP. Please note the following section for the
calendar of events for the dates and times of key elements in the bid procedure.
3
FNIT\ 1 P OFF TENTS
TARGET DATE DESCRIPTION OF EVENTS
February 27, 2004 RFP distributed to prospective financial institutions.
February 27, 2004 Adver`ise the Bank Depository notice in the Dallas
Morning News - Collin County Edition.
March 22, 2004 Receive proposals from interested financial
institutions by 12:00 PM at Town Hall.
April 13, 2004 Council presentation of Proposals for the award of the
contract and council designation of Official depository.
May 1, 2004 New Bank Depository Contract period begins.
4
III. CRITERIA FOR EVALUATION
Town staff shall carefully review the submitted proposals. Their recommendation to the Town
Council shall be based on the proposal determined to be in the best interest of the Town. The
evaluation of the proposals will be made based on the following criteria:
• Ability to perform and provide the required and requested services;
Cost of banking services;
• Completeness of bid and agreement to points outlined in the RFP;
• Funds availability;
• Interest rates paid on interest bearing accounts, time deposits, and
investments;
• Earnings credit on average available account balances;
• Financial strength and stability;
• Convenience of location;
• Safekeeping and collateral agreements.
The award of the contract shall be made to the responsible offerer whose proposal is determined
to provide the most efficient service in the most economical method for the.
5
IV. ACCOUNT ACTIVITIES
A. The Town requires the following bank accounts:
■ Consolidated Operating Account Interest Bearing
■ Payroll Account Interest Bearing
■ Interest and Sinking Account Interest Bearing
■ Savings Accounts Interest Bearing
• Other Accounts as needed Inter .st Bearing
l're 'uar.k must have the capability of receiving and sending wire trans'ers, ,1 CI1 transfers, and
direct deposits through these accounts. These accounts will be interest bearing accounts and will
require wire transfers, account transfers, and daily balance reporting service via personal
computer access and secure web access.
he Consolidated Operating Account will constitute almost all of the Town's banking business.
Other accounts may be opened as needed. The Town issues approximately 150 vendor checks
per month and averages approximately 30 deposits per month. The account balances may range
from $2500-$14,500,000.00, dependent upon interest rates.
The Payroll Account is a clearing account that usually carries a %maximum balance of
approximately $50,000 on the day of payroll but will have an average daily balance of less than
$2,500. The Town has a bi-weekly payroll with an average of 22 employees. The Town would
like to offer direct deposit of payroll to its 22 employees and any future employees, currently
representing a monthly average of $100,000. Direct deposit of payroll is a bank service that
would be required by the Town via web or personal computer access.
The Interest and Sinking Account is to accumulate monies to be held in reserve for Debt Service
payments. Deposits will be made as monies are collected and as the balance increases a portion
may be transferred.
The Town reserves the right to open or close any number or type of accounts as it deems
necessary through the term of the agreement. Fees bid are fixed for the entire contract period.
B. The services required by the Town include but are not limited to the items that are identified
in Appendix I, Bank Services Required.
To maximize control and investment opportunities the Town requires daily Balance Reporting
for all accounts to obtain balance information. The access is to be accomplished by personal
computer via a modem with a high capacity data transfer rate or via secured web-based access.
The information to be contained in the report should be for the previous business day and
include: ledger balance, total credits, total debits, and detail debits and credits. This information
should be available and accessible by 9:00 a. m. The Town also requires wire transfers and
account transfers to be accomplished by personal computer via modem or web-based access.
The Town desires to offer ACH Bank Drafting for utility customer convenience. This service
6
must be available via personal computer access or web-based access.
C. The balances maintained in interest bearing accounts must be collateralized in the same
manner and under the same stipulations as outlined in the Pledge Requirements section. The
maximum ledger balances are estimated to be $750,000 in aggregate. The average balances are
projected to be in the range of $450,000. Depending on the proposed interest rates, savings
account balances could range up to $14,500,000 in additional deposits to the selected bank.
D. Bank statements shall be rendered within five (5) working days after the close of the calendar
month. The cutoff cycle for all Town accounts mus be the calendar month. The statement shall
i:,c ude ci 4pcsitE rrade on the last day of the period. Tl.,, accompanying checks shall be arranged
in numerical order. Cancelled checks anc: d..posit -lips must accompany monthly bank
statements.
E. The Town intends to pay for all services provided by the institution as set forth in Appendix
1. The method to be used for the payment of these services shall be the direct payment method to
the extent that the cost of services exceeds the earnings credit amo'"1- ''o"mint
balances. The Town shall require account analysis statements on a monthly basis by individual
account and at group level which will reflect average ledger balance, average uncollected funds,
average collected balance, reserve requirement, average available balance, rate and amount of
earnings credit, and detail of services provided with quantities and unit fees for each to arrive at a
total service cost. Settlement of the excess/deficient condition as reflected by the group level
account analysis is to occur on a monthly basis. Please submit a sample of the monthly account
analysis statement that will be provided to the Town as Attachment A.
F. Please provide a schedule and detailed explanation of funds availability, showing both time
and day of availability, and specify the institution location to which the availability is applicable.
The Town desires to receive same day credit for all funds deposited by courier delivery service to
the designated deposit location. Please state your cut-off time for same day credit in your
proposal. Please submit the availability schedule as Attachment B.
G. The collected balances in each account should be accessible by personal computer inquiry
and shall be available for investment at the option of the Town. Funds in interest bearing
accounts shall earn interest at the rate paid on interest bearing accounts. Please provide an
explanation of the institution's policy and methodology used in setting rates paid on interest
bearing accounts. Indicate if they are based on a market rate such as T-Bill discount or yield rate,
or the federal funds rate, etc., and when the rates are changed. Also, please provide a historical
schedule of rates paid on this type of interest bearing account since February 2003. Please;
provide the interest rate information as Attachment C.
H. The Depository shall reject all stale dated checks. Checks may not be dated more than six
months prior to the date of presentation to the Depository for payment. Please explain the
procedures and costs for stale dating services.
I. All checks deposited by the Town that do not clear on first presentation should be submitted a
second time before returning the item to the District. A returned check that does not clear on the
second presentation shall be returned to the Town within two (2) business days. All returned
7
items ivnuld he cleared fhrn,.<,h the operating account.
J. Upon acceptance of a depository bank, a wire transfer agreement shall be executed outlining
procedures for processing wire transfers, authorization levels, repetitive wire information and
confirmation procedures. The Town requires that wire transfers and secondary authorizations be
initiated on-line by the Town's Accounting Department. The Town'defines on-line as either
remote terminal or secured web-based access. The Town also requires the ability to verify
incoming and outgoing wire transfers on-line. In the event that the Depository experiences
computer or unexpected difficulties, the Depository shall use whatever means necessary to ensure
that the Town's wire transfers are completed on the date specified. The Town may transfer large
dollar amounts on a daily basis. The sources of funds for these transfers are collected balances.
security maturities and sales and incoming wire transfers. The Town requires that all outgoing
wire transfers be released within one hour of origination by the Town.
•
V. PLEDGE REQUIREMENTS
A. As security for the deposits of the Town, the institution shall pledge to the Town securities
equal to the largest total balances the Town maintains in the institution, less the amount provided
by the Federal Deposit Insurance Corporation (F.D.I.C.). These aggregate balances are estimated
not to exceed $750,000. The securities comprising the pledge shall be calculated using market
value. The securities so pledged, the amounts thereon and the time for pledging same shall
satisfy statutory requirements. Also, depending on proposed interest rates, an additional
$14,500,000 may be deposited into savings accounts of the selected bank.
B. The institution shall provide the Town a report of securities pledged at the end o eac:.r:
or at any time requested by the Accounting Division, the Town Administrator, or any other
designated official. The report should reflect the total pledged securities itemized by:
Name
Type/Description
Par Value
Market Value
Maturity Date
Rating by Moody's or Standard & Poor's
C. The securities pledged shall be held in safekeeping with the Federal Reserve Bank or at a
financial institution acceptable to the Town. The Town expects the Depository Bank to review
collateral requirements daily and increase collateral if necessary.
Please submit a copy of the safekeeping agreement as Attachment D. The safekeeping agreement
shall clearly state that the Trustee is instructed to release the collateralized securities to the Town
if the Town has determined that the Depository Bank has failed to pay on any accounts, including
but not limited to matured investments in Certificates of Deposit, or the Town has determined
that the Town funds are in jeopardy for any reason, including but not limited to involuntary
closure or change in ownership.
The Safekeeping Agreement shall have signatories and be executed by the Trustee institution, the
Depository Bank, and the Town.
D. Any substitutions of the securities or reductions in the total amount pledged shall be made
only by and with the proper written authorization approved by an authorized signatory. The
Town shall approve all securities pledged. In the case of reductions, the Depository Bank shall
provide in writing that collateral shall be available when needed to meet normal Town balance
increases throughout the year. Any securities pledged shall have a rating of"A-1" or better by
Moody's Investor Services.
9
VI. INVESTMENT ACTIVITIES
A. Direct Investment Alternative. The Town desires a Depository Agreement which provides
full legal flexibility in investment activities. The Town reserves the right to invest any and all of
its funds as permitted by Chapter 2256, Government Code (Public Funds Investment Act). The
Town requires a safekeeping and securities clearance service for the purchase and sale of
securities. All trades are delivery vs. payments. Please provide as Attachment G any
schedules!info:mation regarding the services offered. A safekeeping confirmation for each Town
security transaction shall be issued and mailed to the Town within two (2) business days cf
settlement. A monthly report listing all Town securities held in safekeeping shall be mailed the
Town within five (5)business days of the end of each month.
B. Certificates of Deposit. Certificates of Deposit (CD's) purchased for the Town shall be non-
negotiable and shall be registered in the name of the Town. Certificates of Deposit must be fully
insured by the F.D.I.C. or collateralized by fully guaranteed Federal obligations that are pledged
to the Town and that have a market value equal to or greater than the CD for the life of the CD.
Proof of collateral must be supplied to the Town before the CD's are paid for.
C. Interest Calculations. Interest on all Certificates of Deposit shall be computed on an actual
day basis, and the interest shall be paid to the Town on the maturity date: Interest calculations
shall include the first day in the investment period but shall not include the day of maturity.
D. Extension of Investments. The Depository Bank agrees to honor and continue any
investments made during the term of the Depository Contract that will mature after the expiration
date of the agreement at the same rate established before the expiration of the contract.
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VII. OVERDRAFT PROVISIONS
The Town does not intend to have a net overdraft position occur during the course of the contract
period. A net overdraft shall be defined as a negative balance in the Town's accounts
collectively, not by individual account. However, should a net overdraft condition occur, the
applicant is asked to include the following information in the RFP : •
■ the maximum number of days the overdraft condition shall be allowed is
banking days.
ii the maximum amount of the overdraft to be allowed shall 1,e
■ the interest rate shall be % per annum computed on an actual day basis for
the days and amount of the overdraft.
In the event a check or checks shall be presented for payment where there is insufficient funds for
the purpose of paying checks, the Depository Bank agrees to promptly notify the Accounting
Division, by telephone or other means, of the overdraft condition, and to provide the Accounting
Division a period not to exceed one business day to respond and rectify the condition.
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VIII. OTHER STIPULATIONS
A. The successful bidder shall notify the Town in writing within ten (10) days of any changes in
Federal or State regulations or laws that would affect the Depository Agreement.
B. In the event it would be ruled illegal under the provisions of any Federal or State Laws or
regulations for the Depository Bank to comply with the requirements of the Depository
Agreement, then the Town expressly reserves the right and privilege to cancel tl}e Depository
Agreement and to re-bid.
C. The Depository Bank's records ,c the Tr-Nr,'s accounts shall be open for review
during normal business hours by designated Town staff members or Town appointed
independent auditors.
D. The proposing institution shall submit a copy of the latest annual financial statements, the last
two most recent quarterly F.D.I.C. call reports, and the Uniform Bank Performance Report for
the latest fiscal year end, all as Attachment E.
E. The term of the contract shall be for two (2) years beginning May 1, 2004 and ending May 1,
2006. The Town shall have the right at its discretion to extend the term for an additional two
years (May 1, 2006-May 1, 2008). Further, the agreement will have a ninety (90) day extension
period for transition to the new depository bank.
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IX. BIDDING REQUIREMENTS
A. Sealed proposals clearly marked "TOWN OF PROSPER DEPOSITORY BANK
SERVICES PROPOSAL" shall be delivered to the following person by 12:00 P.M.., on
Monday, March 22, 2004.
Amy Lightfoot/Accounting Division
Town of Prosper
113 W. Broadway
P.O. Box 30
Prosper, Texas 73,973
NO PROPOSAL SHALL BE RECEIVED AFTER 12:00 P.M.
B. The proposing institution shall use this RFP as the Official Bid Form to submit prices, rates,
and to answer questions. Any alterations, changes, or deletions to this RFP may be grounds for
the Town to disregard and reject the bid.
C. The Town 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.
D. The Town reserves the right to reject any and all proposals, and to accept the proposal it
considers to be in its best interest based upon the ability to provide the requested services,
agreement to points outlined in the RFP, interest rates paid on interest bearing accounts and on
time deposits, cost of banking services, and financial stability.
E. Bidder must provide certification that it is an institution qualified under current state law to
serve as the Town's Depository Bank.
F. Bidder shall supply a bid bond of $10,000.00. The bid bond shall be in the form of a
cashier's check made payable to the Town of Prosper, and shall be returned to each bidder upon
final acceptance and execution of a contract with the successful bidder. Should the institution
selected as the Bank Depository by the Town fail to become the Bank Depository, for whatever
reason, the bid bond will be forfeited to the Town as liquidated damages.
G. Transfer of funds will commence at such time the successful bidder has provided the Town
with all required forms and supplies necessary to insure uninterrupted day-to-day operations..
Bidder shall, upon termination of contract, cooperate with the new Depository Bank for transfer
of funds.
H. Inquiries or requests for clarification regarding this RFP shall be made in writing by one of
the following methods:
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United States Mail to:
Amy Lightfoot
Accounting Division
113 W. Broadway
P.O. Box 307
Prosper, Texas 75078
Electronic Mail:
arnv lightloo'tftrospertx,gov_
Facsimile i.o:
972-347-9003 to the attention of Amy Lightfoot
Clarifications will be provided as soon as possible. Clarifications, which might affect other
banks responses, will be sent to all banks in the form of an addendum, via email. Early requests
for clarification are encouraged. No clarifications will be given within five (5) working days
prior to the deadline for the submission of RFP's.
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X. OTHER MISCELLANEOUS
A. The Town may require a review meeting at least once every six months to evaluate the
working relationship between the Town and the Depository Bank. The objective shall be to
address any problems and to seek solutions, as well as keeping abreast of changes, new services,
or new requirements.
B. The final appointment of the Depository Bank shall be made by the Town by a contract award
of t}re Town Council. The successful bidder will be required to enter into a contract which
incorpora.t.,; .i1 of the reguirenients of the RFP. Otherwise, the su,ccnssf.il proposer's compl
RIT OF the OFFICIAL BID FORM, with the accompanying related schedules and inatoria'�. a
called for in this RFP, will be accepted by adoption of an ordinance.
C. This RFP will be duly advertised and is being offered for consideration to financial
institutions as permitted by state law.
D. Upon contract award, the successful bidder shall designate a Bank Officer as the official
contact person for all correspondence and matters pertaining to the day-to-day operation and
execution of the Banking Relationship and the Town shall do the same.
This Request for Proposal is being offered by the following person duly authorized to act on
behalf of the Town of Prosper.
Amy Lightfoot
Accounting Division
Town of Prosper
•
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APPENDIX I - BANK SERVICES REQUIRED
FEE CHARGES VOLUME
ESTIMATE DESCRIPTION OF SERVICE
1. 4 accounts Account Maintenance
2. _._ per thousanc FDIC In'urance
3. 200/month Debits Posted
4. 150/month Credits Posted
5. 300/month Items Deposited
6. 7/month Return Deposited Items
7 7/month Re-run Return Items
8. 3/month Automated Stop Payments
9. 2/month Incoming Domestic Wires
10. 2/month Outgoing Domestic Wires
11. 5/month ACH Debit
12 5/month ACH Credit
13. 26/year Direct Deposit Payroll
14. Cashier's Check Fee
15. 3/month Automatic Draft Payments—
Utility Billing
16. Cancelled checks returned/sorted
17. CD of Cancelled Checks/Deposits
18. Account Balance Reporting
19. Deposit Bags With Locks
16
20. Clear disposable deposit bags
21. Coin Wrappers
22. Once a day Daily Courier Charges (for deposit delivery)
23. Safekeeping Security Fees
per purchase
per maturity
24. Positive Pay Fees
25. Stale Dating Service Fees
26.
17
EXHIBIT B
The First State Bank
Depository Bank Services Proposal
Town of Prosper
IV. Account Activities
Section B
The First State Bank offers interne banking through which the Town of Prosper may
access their account balances daily. The information contained in the account balance
report is &it ledger balance for the previous business day, date of last deposit, amount et-
last deposit, date of last statement, last statement balance, and a detail listing of all de `is
and credits for the last 60 days. Information is updated to the secure website daily ar,'
available after midnight.
Wire Transfers
Currently wire transfers are not available on-line. Please see Section J for
our wire transfer procedures.
ACH Services
a) The ACH service is currently not available on-line.
b) Data would be transferred from the Town to The First State Bank via disk.
c) The disk must be received by 12:00 noon 1 day prior'to the effective date.
The disk must be in an approved NACHA format.
Account Transfers
All account transfers can be done though Online Banking, no charge will be
assessed.
Section C
All balances above the maximum FDIC insurance coverage will be
collateralized as outlined in the Pledge Requirements section.
Section D
The statement cycle for the Town accounts will be as of the last day of each month. The
statement will be available on the first business day following the statement cycle. All
statements are imaged, therefore no original checks or deposits will be returned in the •
statement.
Optical Imaging
a) Optical imaging is available for all customers of The First State Bank. It
captures every item that is processed through the proof machine. All
statements include optical images of the paper transactions. The actual
: ,1 in the statement.
b) Disks are available at the time of the statement cycle.
c) The only software required is Adobe Acrobat Reader.
d) Items can be retrieved from The First State Bank secure website, through
customer service, and from the optical image disk.
Section E
No service charges will be assessed on the Town's accounts, therefore account analysis
wi1. not be necessary. See Attachment A
Section F
See Attachment B
Section G
Interest rates are reviewed weekly and are based on the market rate that other financial
institutions in our local area are paying and by reviewing rates published by area banks in
the Dallas Morning News. Rates are subject to change on a daily basis, but rarely do so.
For our historical rates, see Attachment C.
Section H
The First State Bank does not have a system in place to review or reject stale dated
checks. Stop payments can be placed on any checks that are stale dated in person, by
phone, or by fax. If a stop payment is requested by phone, an authorized employee of the
Town must sign the stop payment request within 10 days. By the end of June stop
payment requests should be available via the internet.
Section I
All returned checks are presented twice. Returned checks that do not clear on the second
presentation are charged back to the Town's account and returned to the Town the same
day at no charge.
Section J
Currently wire transfers can not •: initiated on-line, but we are expecting to implement
that service in the near future. Pending incoming and outgoing wires can not be verified
on-line. They will be available on-line after the daily update.
Wire Transfer Procedures
a) Wires may be initiated by FAX with the proper signature or in person by
an authorized signer on the account. Daily notices are mailed for all
incoming and outgoing wires.
b) The system used is TIBLink which is an automated wire transfer system
through our correspondent bank The Independent BankersBank. Wires
can only be initiated by authorized Bank personnel set up in the TIBLink
system. Passwords are required for access. If the TIBLink system is
unavailable, wires can be initiated by telephone by authorized Bank
personnel only.
c) Wires are input on the TIBLink system by one authorized ;;ecson, tlicn
reviewed and approved by a second authorized person. The same person
can not initiate and approve wire transfers.
d) Wires may be sent between 8:00 a.m. and 3:00 p.m. on weekdays. They
are memo posted to the account at the time the wire is sent, and final
posted after 4:00 p.m. when accounts are updated for the day. The cut-off
time for wire transfers is 3:00 p.m. Wires can only be requested by
authorized signers on the account.
d
e) Wires may be sent as long as sufficient funds exist or have been received
in the form of an incoming wire.
V. Pledge Requirements
Section C
Securities pledged shall be held in safekeeping at The Independent
BankersBank. See Attachment D for the Safekeeping Agreement.
VI. Investment Activities
Section A
See Attachment G
VII. Overdraft Provisions
The maximum number 3f days the defined overdraft condition shall be allowed is three
(3) banking days.
• The maximum amount of the overdraft to be allowed shall be $25,000.00
• The interest rate shall be Wall Street Prime per annum computed on an actual day basis
for the days and amount of the overdraft.
VIII. Other Stipulations
Section D
See Attachment E
Appendix I-Bank Services Required
Account Maintenance No Charge
FDIC Insurance No Charge
Debits Posted No Charge
Credits Posted No Charge
Items Deposited No Charge
Return Deposited Items No Charge
Re-run Return Items No Charge
Automated Stop Payments $20
Incoming Domestic Wires $7.50
Outgoing Domestic Wires $15
ACH Debit No Charge
ACH Credit No Charge
Direct Deposit Payroll One Time S150 set up fee
Cashiers Checks Fee No Charge
Automatic Draft Payments One Time $150 set up fee
Cancelled Checks Returned Not available
CD of Cancelled Checks/Dep $15 a month
Account Balance Reporting Online Services no charge
Deposit Bags w/lock 3 at no charge, $15 each additional
Clear disposable bags Not available, we offer security packs that
are opaque. There is no charge for these up
to the $500 credit per year on check and
deposit products.
Attachment A
Account Analysis Statements
All depository accounts will be placed in a waived account. No monthly service,charges
will be applied; therefore, they will not be in analysis.
Attachment B
All deposits are given immediate credit.
Cutoff time is 3:00PM
Deposits are worked in front of the Town employee who brings the deposit to the bank.
Locations:
Main Bank 142 N. Ohio, Celina, TX
Motor Bank—Hwy 455 &Hwy 289, Celina, TX
Little Elm Branch—229 FM 720 W, Little Elm, TX
Collinsville Branch—715 Hwy 377 N, Collinsville, TX
Prosper Branch—900 N. Preston Rd, Prosper, TX
ATTACHMENT C
HISTORICAL RATES
Interest Bearing Accounts Super NOW
Month/Year Rate Month/Year Rate
Feb-03 0.50% - Aug-03 0.40%
Mar-03 0.50% Sep-03 0.40%
Apr-03 0.50% Oct-03 0.40%
May-03 0.50% Nov-03 0.40%
Jun-03 0.40% Dec 03, 0.40% _
Jul-03 0.40% I 0.40%
Money Market Accounts balance> $2,500
Month/Year Rate Month/Year Rate
Feb-03 0.75% Aug-03 0.75%
Mar-03 0.75% Sep-03 0.75%
Apr-03 0.75% Oct-03 0.75%
May-03 0.75% Nov-03 0.75%
Jun-03 0.75% , Dec-03 0.75%
Jul-03 0.75% Jan-04 0.75%
1st Choice Investment Account balance>$50,000
Month/Year Rate Month/Year (Rate
Feb-03 1.50% Aug-03 1.10% _
Mar-03 1.40% Sep-03 1.10%
Apr-03 1.40% - Oct-03 1.10%
May-03 1.25% Nov-03 1.10%
Jun-03 1.15% Dec-03 1.10%
Jul-03 1.10% Jan-04 1.10%
Time Deposits 6 month CD
Month/Year Rate Month/Year Rate
Feb-03 1.50% Aug-03 1.10%
Mar-03 1.40% Sep-03 1.10%
Apr-03 1.40% Oct-03 1.10%
May-03 1.25% Nov-03 1.10%
Jun-03 1.15% Dec-03 1.10% _
Jul-03 1.10% Jan-04 1.10%
Time Deposits 12 month CD
Month/Year Rate Month/Year Rate
Feb-03 1.75% Aug-03 1.40%
Mar-03 1.65% Sep-03 1.30%
Apr-03 1.65% Oct-03 1.30% _
May-03 1.65% Nov-03 1.30% _
Jun-03 1.45% Dec-03 1.30%
Jul-03 1.40% Jan-041 1.30%
Attachment C 1
ATTACHMENT D
SAFEKEEPING AGREEMENT FOR THE
TOWN OF PROSPER
THE STATE OF TEXAS
COUNTY OF COLLIN •
This agreement is made and entered into on this day of 2004,
by and between the Town of Prosper, ("Town"), The First State Bank, a state banking
association, ("Depository Bank"), and The Independent BankersBank, ("Safekeeping
Bank").
WITNESSETH:
WHEREAS, Town and Depository Bank have entered into a Depository Contract;
and
WHEREAS, under the provisions of law and the Depository Contract the
Depository Bank must secure the deposits of the Town by pledging investment securities
to the Town; and
WHEREAS, the securities pledged by Depository Bank under the Depository
Contract must be transferred to and held by a bank selected for such safekeeping thereof;
and
WHEREAS, the Town and Depository Bank have selected The Independent
BankersBank as the Safekeeping Bank;
NOW, THEREFORE, it is agreed by the parties hereto as follows:
1. The Depository Bank hereby places with Safekeeping Bank certain
investment securities owned by the Depository Bank which are pledged to the
Town as security for its deposits with the Depository Bank.
2. In accordance with the Depository Contract, the Depository Bank may from
time to time place with the Safekeeping Bank additional securities pledged to
the Town. Whenever securities pledged to the Town are placed by the
Depository Bank with the Safekeeping Bank, the Safekeeping Bank shall
issue original safekeeping receipts directly to the Town within three (3)
business days of such placement with a duplicate copy thereof to the
Depository Bank. No security placed with the Safekeeping Bank under this
Agreement shall be released by the Safekeeping Bank unless duly authorized
by the Investment Officer of the Town.
3. The securities placed with the Safekeeping Bank shall be under the joint
control of the Depository Bank and the Town. However, in the event the
investment Oiiicer of Inc Town certifies t0 Inc Saieiieeping isauk that rile
Depository Bank has failed to faithfully do or perform any of the duties or
obligations imposed on it by law as depository of the Town, or has failed upon
presentation to pay any check drawn on it by the duly authorized officers of
the Town, or has failed to faithfully keep or account for all funds deposited
with it, or has failed to pay interest at the time or at rates stipulated, or shall
have failed to comply with any of the requirements of the depository laws of
the State of Texas, or has failed at the expirations of the term for which it was
chosen to turn over to its successor or successors all funds, property and
things of value coming into its possession as depository, or otherwise
defaulted in the performance of the Depository Contract, then and in that
even , the Depository Bank shall have no further control over the pledged
securities and Safekeeping Bank shall deliver to the Investment Officer o_ftr_
Town all securities deposited there under without further authorization,
release, or direction by the Depository Bank. Further, the Depository Bank
does hereby release and forever discharge the Safekeeping Bank from all
liability for the release of the pledged securities to the Town in accordance
with the provisions of this paragraph.
4. Safekeeping Bank agrees to faithfully perform all the duties hereof and
indemnify the Town against all loss, cost or expense, including reasonable
attorney's fees, arising out of or relating to the failure to perform the duties
imposed on it by this Safekeeping Agreement.
5. Depository Bank agrees to pay all costs or charges imposed by Safekeeping
Bank for the performance of the services it provides under the terms of this
Safekeeping Agreement.
6. Any suit arising out of or in any way connected with this Agreement shall be
brought in a court of proper jurisdiction in Collin County, Texas.
EXECUTED in multiple originals on this 5 day of , 2004.
T first State B
By: T. Bob McKnight
Title: CEO
AT AI T:
`�
Town of Prosper
•
By:
Title:
ATTEST:
The Independent BankersBank
By:
Title:
ATTEST:
1
Attachment G
The First State Bank will assist in purchasing investments through our correspondent
bank, The Independent BankersBank (TDB). The correspondent bank will hold any and all
investments for safekeeping.
E
1. Annual Financial Statement—for year ended 12-31-03
2. 2 most recent quarterly FDIC call reports—09-30-03 & 12-31-03
3. Uniform Bank Performance Report— 12-31-03