Figure:19TAC §109.51(d)Page1of12
ProposalForm
for Depository Services
by San Elizario IndependentSchool District
RFP#17-1031
DefinitionsandInstructions
Inthisdocument, theterms“you”and“your” refertothedepositorybank,and “we,” “our,” and
“us”refertothe districtnamedabove.
You mustanswerallquestionsinthisformandprovideittousas yourproposal.
Wehave theright torejectanyproposal. Ifanypartofthisproposal oranycontractentered intobetweenyou and usisinvalid,theremainder,atouroption, remainsinforceandisnot affected.
BankCompensation
Do wehave the optiontopayforyourservices bytargeted balancesorbyfees?Please describe anydifferencesin relatedcosts touswith either option.Ifwechoose one optionfor the life of thecontract, istherea difference in servicefees?
Compensation Basedon aTargeted Balance
Wemaychooseto payforyourservicesbymaintainingatargetedamount ofourfundsinthe depository.Wewill maintain balances in thecheckingaccounts to compensateyou infull or
in partforservices provided.Youmustprovide amonthlyaccount analysis that reflectsthe
earningscreditedforthese balances.
You mayinvestanyexcess collectedbalancedailyas directedbyusin anovernight investment that we approve,an interest bearingaccount, oramoneymarket mutualfund registeredwith the Securities and ExchangeCommission (SEC).Pleaselistbelowthe overnightinvestment and any indexupon which the rate will be based.
Therate historyatyourbank for themonths beginning1/2016 andending12/2016was: Earnings CreditRate(ECR)
Interest BearingAccounts
MoneyMarket Accounts
Sweep Accounts
Please useAttachmentA tocompletethissection.
Ifanyoftheserates isbased onanindexrate(suchastheT-Bill auctionrate), stipulatehow you will use theindextocalculate therate.
Compensation Basedon Fees
Wemaychooseto payforyourservices onastraightfeebasisinwhichwewill notmaintain a targetedbalance. You will assessfees,andwewill paythemin accordance withyour proposedfeesas listedon AttachmentA,VolumesforPricingTransactions.
LastModified:01/22/2014
District Investments
Wereserve theright to purchase,sell,andinvest our funds andfundsunderourcontrol, includingbondfunds,asauthorized bythe TexasGovernmentCode, Chapter2256, Public Funds Investment Act, and in compliance withourinvestmentpolicy,acopyofwhich is attachedasAttachment C
Wemaychooseto investintimedepositsatthe depository,butall investmentsincluding certificates ofdepositare bidcompetitivelyatthetime ofpurchase.
Collateral
You mustprovide either corporate suretybondsorpledged securitiesin accordance with the Texas EducationCode(TEC),§45.208. Please specifywhich methodyou will useas collateralforour funds.
CollateralConditions
You mustprovide collateral equal to110percent ofallour time anddemand depositsplus accrued interest minusapplicableFederal Deposit InsuranceCorporation(FDIC)coverage.
Collateral will be pledgedto usandheld in anindependentsafekeepinginstitutionbya custodian orpermittedinstitutionas specified bytheTexas Government Code,Chapter 2257, PublicFundsCollateralAct. You will be liable formonitoringandmaintaining the collateral
and therequired marginatall times andwill provideanoriginal safekeeping notice anda
monthlyreport ofthecollateral including at least the securitydescription,paramount,cusip, and marketvalue.
You andwe mustexecute acollateral agreementin accordancewiththeFinancial Institutions Reform, Recovery,andEnforcement Act of1989 (FIRREA).Provide asamplecollateral agreementwith yourproposal.
Weestimateour maximumanticipatedcollateral requirement tobe $1,500,000.
Ifvoluntarycollateral poolingislegislatedduringthe period of thiscontract,you and wemay considerit and agreetouseitunder thiscontract.
EligibleCollateral
Wewill acceptonlyapproved securities asspecified by theTEC,§45.201and authorized by our InvestmentPolicy Attachment C, as pledged collateral.
Banking ServicesFees
Based ontheserviceswe requirefromyou,complete theproposedfee schedule,Attachment
A,VolumesforPricingTransactions.
DepositoryInformation
Please answerthefollowing questionsaboutyour depositorybank.
1. Statethefull name andaddress of the depositoryand anyparent holding company.List all branch locationswithinour boundary.
2. Provide theUniformBankPerformance Report (UPBR)referenceorannual audited financial statement forthe most currentfiscal year.Thismaybe in printedform, butwe preferanelectronic link to thewebsite.Members ofyourholdingcompanies must include corporate annualfinancial statementsand yourindividual call reportfor the most recent operatingquarter.
3. Stateyour ratingfromanindependentdepositoryratingagencyor, ifthat rating isnot available,therating onyourseniorandsubordinate debt.Youmust inform us of any changein thisratingduring theperiod of thecontractwithin a reasonable period.
4. ContactInformation
Toensuresmoothcommunicationand continuation ofservices,youmustassign a specificaccountexecutive and abackupto our account tocoordinateservices andhelp solveanyproblemencountered.
a. Designateadepositoryofficerasa primarycontactwithus.
Name Title Telephone # Fax#
b. Designateadepositoryrepresentative asa backup contact withus.
Name Title Telephone # Fax#
c. Iftheprimaryand backup contactsarenot available,howdo we contactsomeone in an emergency?Afterhours?
d. Describe in detail howyouhandle problem resolution,customerservice,day-to-day contact, and ongoing maintenancefor governmental clients. Please bespecificabout exactly whomwewill be callingand working withforthesituationsdescribedabove.
5. Listreferencesfromat least threeofyourcurrent, comparablegovernmental clients.
Include thelengthoftime under contractanda clientcontact, title,andtelephone number.
6. Based onthe serviceswe require,pleaseprovide a proposedtimelinefor implementing the contract;includethetimeline activities and direct responsibilities ofbothour district andyourdepository bankduringimplementation.
7. Provide a copyofallagreements(including thosenot directlyreferenced in thisproposal)
that will be requiredunderthe contract.
8. Ifwe award the contract to you,youmustreviewour then-currentdistrict investment policyand certify in writing tothat reviewin accordance with the PublicFunds Investment Actverifying that you havesufficient controlsin place to avoid transactionsnot authorized bythepolicy.Wehaveattachedour investmentpolicyto thisproposal noticeand have alsoprovided alink to ourinvestmentpolicyonourwebsite .
9. Wemayconduct a preawardinterviewon-site at yourdeposition bankbeforeawarding the contract.Please provide us with acontactnameforarranging thepreawardinterview.
10.Are you offeringanytransition orretention incentive to us? Ifso,pleasedescribe it in detail.
BankingServices
1. ConsolidatedAccountStructurewith Sweep Mechanism
Weareinterested in earningat then-current interest ratesavailable atall times.Wewant the option tousean automated,dailysweep to amoneymarketmutualfund or depositoryalternative account (ifcompetitive)to reachourfull investment goal.
Our current account structure islistedas Attachment B, District’sCurrent Account
Structure.Wedonotguaranteethatwe will maintainthe balancesatthesesame levels.
You mustclearlydescribeyourmost cost-effective account structure(interestbearing accounts,zerobalanceaccounts[ZBAs], orsweep,etc.).
a. Fullydescribethe proposedaccountstructure.Would asweep befromamaster accountwith ZBAsordirectlyswept from the individual accounts? Is interest distributedattheaccountlevel?
b. Statetheaverageinterest rateontherecommended alternative structureforthepast
12 months.
c. Ifan SEC-registeredmoneymarket fund isusedforthesweep proposal,provide the full nameand acopyofthe prospectus.
d. Interestearnedon interestbearing accountsmust not be charged asanexpense on the account analysis.Confirm acceptance of thiscondition.
Wemaybe required or maydesireto openadditional accounts, closeaccounts, or changeaccount typesduring thecontractperiod.If thisoccurs,the newaccountsand services mustbecharged at thesame contractedamountor, ifunanticipated,atnot more than publishedrates.
2. AutomatedCash ManagementInformation
Weareinterested in automatedbalance anddetail information.Minimumautomated services mustincludethefollowing:
prior-daysummaryand detail balance reportingon all accounts
intradaydetail andsummarybalances(on localmain and payroll accounts)
initiation and monitoringofstop payments
positive payexception transactions
initiation and monitoringofinternal andwire transfers
imageaccess
controlled disbursementpresentment totals
a. Fullydescribeyouronline service.List thesystemcapabilities(forexample, balance reporting, wires,positive pay,stoppayment, etc.).
b. What isyourbackupprocesstoreportbalancesand transactionsin casethe systemisnotavailable?
c. When is dailybalance information available?
d. Submitsamples of majorscreensavailable,orprovideweb linkaccesstoa demonstrationmodule.
e. Howisanindividual securitysign-on assigned,and who maintainsthe security module? Howmany levelsofsecurityare available?
f.Withregardtocontrolled disbursements:
–Whatisthecutoff timefordisbursements?
–WhatFederal Reservelocation dothese accountsclear through?
–Howdowehave access tothis information?
3. Deposit Services
Werequire standardcommercial deposit servicesforall accounts.
Weexpectall depositedchecksto clearbasedon yourcurrent published availability schedule,butpleasenoteanyoptionsfor expedited availability inyourproposal.For all cleared depositsyou receive byyourestablisheddeadline,you mustprocessthemfor same-day ledgercredit.Ifyoufailto credit our accountsin atimelyfashion, you mustpay interesttousatthethen-currenteffective federalfunds rate.
a. What isyourdailycutoff timetoensuresame-day ledgercredit?
b. Describe howand whenyou sendcredit anddebitadvices tous.
c. What typeofdeposit bagsdo you useorrequire?Are these available from you?
d. In whatcitydoesitemprocessing occur?
RemoteDeposit
Weareinterested in establishingremotecheckdeposit forafewhigh-volumelocations during thecontractperiod. Thesedeposits include bothconsumerand commercial checks.
e. What are yourcurrent capabilities in remote checkdeposit?Describe howchecksare processedand cleared.Please statethe cutoff timeforsame-day ledger credit.
f.Give two comparablereferences with contact information.
g. Do you produceadailybalancing report?Providea sample.
h. What scanner equipment is requiredto operatethe system?Isthisequipment available throughyourdepositorybankfor purchase or lease?Please listthe equipment requiredalong with itscost.
4. Standard DisbursingServices
Weareinterested instandard disbursingservicesfordesignatedaccounts.
a. Doyou imageall checksand deposits?
b. Are checkanddepositimages available online?When?Do you provide a monthly compactdisc(CD)?Ifnot, arereportsdownloadable?
c. Howlongdo you maintaincheckand depositimagesonline?
d. Do you payall ourcheckswithoutchargeuponpresentation?
5. Positive Pay
Weareinterested in positive payservices fordesignated accountson which checksare written. Thepositive payprocessshould befullyautomated andweb based.Wewill transmit checkinformation electronicallytoyouoneach check run andas we create checksmanually.
a. Describe thedatatransmissionandtransfer requirementsforautomatedand manual checks.
b. Isinputavailable online formanual checks?Ifitisnot availableonline,howdo we transmit informationon individual manual checkstoyou?
c. Howcanwe change or deletecheck records,ifnecessary?
d. Howdo you notifyus of a positive payexception?
e. Whendo you reportexception information to us?Whenis thedeadlineforour exception elections?Areimagesofexceptionsavailable?
f.Are all checks,including thosereceived bythetellersand vault,verified againstthe positive payfile before processing?Howoftendo you update teller information?
g. Doyou offerpayroll positive pay?
h. Please providea copyofyour file layout format.
6. AccountReconciliation
Weanticipate usingpartial orfull reconciliation services onall accountsinconcert with positive pay,depending on costeffectiveness.
a. Describe thepartial andfull reconciliation processes.
b. With what format(s) does yoursystem interface?What recordformatsarerequired?
Howdo you sendreconciled data tous?When?
c. Specifyall reportingalternatives.
d. Are reportsavailable online?Howlongarereports maintained online?Provide a samplecopyofreports.
7. FundsTransferandWire Services
Incoming wire transfersmustreceive immediatesame-daycollectedcredit.Wireinitiation should beavailable online.Werequirethat wires be releasedthesamebusinessdayif information isprovided bythe established deadline.
a. Describe theprocess ofonline wire initiation.Whatbackupprocessisavailable forthe online processincasethesystem isunavailable?
b. Isanypapertransactionrequiredfor transfersorwires asfollow-up?
c. Howand whenwillyou notifyusofincoming wires?Online?Email?
d. Isfuture datingavailable forbothrepetitive and nonrepetitive wires and transfers?
Howfar in advance?
e. What is thedeadlineforinitiation:
–bytelephone?
–online?
f.Are templates available forrepetitive transfers?
8. OpticalImaging
Wedesireoptical imagesthatare downloadable oronCD on all accounts.
a. What itemsandreportsareavailable online (checks, statements,deposit slips, deposited items, etc.)?
b. What itemsare capturedonthemonthly CD,ifprovided?
c. Whendo you make themonthly CD or imagedreportsavailable?
d. When andforhowlong are statementsandaccountanalyses available online?
9. Automated Clearinghouse(ACH) Services
Weexpect tousemoreACH transactionsforpayable and receivable transactions.We require aprenotification (prenote)onall newtransactions.
a. Describe thetransmission alternativesfor individual ACH transactions.Can weinitiate individual ACH transactionsonline?
b. Whatfiltersandblocksare available onouraccountsfor ACH transactions?
c. Are ACH addendashown in their entiretyonlineandin reports?
d. What isyourpolicyon prenotification?Istheprenotecharged asastandard ACH
transaction?
e. What is thedeadlinefortransmission(hourandday) fora payroll tocredit employee accountson aFriday?
10.Investments and Safekeeping Services
Wewill requireyouto provide book-entrysafekeepingservicesforanysecuritiesweown. Wewill makeall ourinvestmentsandtransmit instructionsforclearing andsafekeeping to you in writing.
All securitiesmustbecleared onadeliveryversus payment(DVP)basis. Ownership mustbedocumented byoriginal clearingconfirmations,andsafekeepingof receiptsmust beprovided within one businessdayofthetransaction.Fundsfor investments mustbe drawn from ourdesignateddemanddeposit account. All principal and interest payments, coupon payments,andmaturitiesmust receive automated same-daycollectedcredit on ourdesignatedaccount without requiring anyadditional actionbyus.
Ifyou arenotamember ofeither the Federal Reserve ora Federal Home LoanBankand you use a correspondent bank forsafekeepingoursecurities,thetransactionsmust be handled throughyoursystemsandmust not require additional interactionbyuswith the correspondentbank.Nodelayin transactions,wires,or flow of fundsisacceptable under a correspondentrelationship.
a. Are youamemberofeither the Federal Reserveora Federal HomeLoanBank?If not, namethecorrespondentdepositoryyou woulduseforclearingandsafekeeping. Describe anysafekeeping arrangementproposedwith acorrespondentdepository includingprocessing requirements byus.
b. Are security transactionsavailable online foreitheroriginatingormonitoring?
c. What is thedeadlinefor settlement instructionson acash (same-day)settlement?
Wouldwe incuranychargeforlate instructions?
Wemaychooseto purchase time depositsfromyou,butalltime deposits will be competitivelybid atthetime ofpurchase.
11.CollateralRequirements
You must meet all therequirements, including those beyond thePublicFundsCollateral Act, as stated inourinvestmentpolicyand below. Theproposalmuststate thatyouagree tothefollowing termsand conditions:
All collateral pledgedtous must be held byacustodian orpermitted institution as specified bytheTexas GovernmentCode,Chapter2257,PublicFundsCollateral Act.
We, you, andthesafekeepingbank mustexecuteatripartysafekeeping agreement forcustodyofpledged securities infull compliance withtheFIRREA requiringa depositoryresolution. (Orcompletion ofCircular7ifaFederal Reservebankisacting as custodian.EvenifaFederal Reservebankisused,you andwemust still execute
a depositoryagreement.)
All time anddemanddepositsabove FDICcoverage mustbecollateralized ata minimumof110percent ofprincipal plus accruedinterestatall times.
You arecontractually liableforcontinuouslymonitoringandmaintaining collateral at our requiredmarginlevels.
Thecustodianmust provide evidence ofpledgedcollateral by sendingoriginal safekeeping receiptsora report directlyto uswithin one businessdayofreceipt.
Wemust receive a monthlyreportof collateral pledgedincludingdescription,par, marketvalue,andcusip,ataminimum.
Wemustgrant substitution rightsifyou obtainourpriorapproval and ifsubstituting securities arereceived beforepreviouslypledged securities areremovedfrom safekeeping.
Authorized collateral includes onlyapproved securities asspecified bytheTEC, §45.201 and authorized byourInvestment Policy Attachment C.
a. Do youpropose anycollateral charges? Ifso,underwhatconditionsare they charged, and howisthecharge applied?
b. What isyourdeadlineforrequesting collateralin excess ofexisting requirements?
12.AccountAnalysis
You should provide monthlyaccountanalysis reportsforeachaccountand ona consolidated accountbasis.
a. When istheaccount analysisavailable each month?
b. Isthe accountanalysisavailable online?Isitimagedmonthly?
c. Are paper statementsalso sent to us?Ifso,when?
d. Howlongwill ittakeyou to correctanybillingerrorson theaccountanalysis?
13.MonthlyStatements
You mustprovide monthlyaccountstatementsonall accountswith complete supporting documentation.
a. Statewhen monthlystatementswill be availableeach month.
b. Isthemonthlystatement available online?Ifso, when andfor howlong? Are the statementsimagedorona CD?
c. Ifimaged, arepaperstatementsalso sent tous?Ifso,when?
14.Overdrafts
a. Are all accountsaggregatedforoverdraft calculation purposes?
b. Statetherate basisforintradayand interdayoverdrafts. c. What is thepolicyfordaylightoverdrafts?
15.Stop Payments
Wedesirean automatedstoppayment process.
a. What arethetime period optionsavailableforstop payments?
b. What aretheoptionsfor extended stoppayment periods?Howarethey extended?
c. What is thecutoffhour forsame-dayaction onstop payments?
d. Can we initiatestoppayment ordersonline? Ifso,do you require anypaper follow-up document?
e. What informationon currentandexpiringstop paymentsisavailable online?
16.Customer Service
Do youoffercustomerservices in languagesotherthan English? What languagesare offered?
17.Service Enhancements
Based onthe information you provide in theproposaland your knowledgeofthe public sector,pleasedescribe anyservices or technological enhancements, notpreviously mentioned, that weshould consider tomanageour treasuryoperationsmore effectively.
Optional Services
1. Purchasing Cards
Wemayconsiderapurchasing cardprogram during thecontractperiod.Cardswould be assignedtoour employeesfordefineduse.
a. What cardplatformsdo yousupport (MasterCard,Visa)?Do you useathird-party processor?
b. What,ifany,informationisavailable online? When?Describe data download and integrationcapabilities. Describe reporting capabilities.
c. What clientsupport isavailable?Howisitprovided?
d. Describe thediverseparametersandrestrictionsavailable for the cardcontrol.
Howmanyaccesslevelsareavailable?
e. Discuss settlementand corporate liabilityterms.Include information on your supportfor the program andyourexperience, settlement termsonpayment, securityprocedures,andlicense requirements. How willwe receivebilling?
f.Describe howcardsare issued,deleted, orreplaced.Howdo you handlelostor stolen cards?
g. Provide threecomparable referencesfor theservice.
SchedulesandAttachments
Weprovide thefollowing:
copyofour auditedfinancial statementscanbe accessed bygoing to“
Departments FinanceFinancialTransparencyInformationAnnual
Financial Reports” atthefollowinglink:
Attachment A, VolumesforPricingTransactions(filled inwith volumes)
Attachment B, District’s Current AccountStructure
Attachment C, District Investment Policy
RequiredDistrictforms to besubmitted with proposal
You mustincludethefollowinginformation with theproposal:
copyofyourauditedfinancial statements [or link to website]
corporateauditedfinancial statementsandtheindividualdepository’scall report (for
membersofyour holding companies) [or link towebsite]
Uniform BankPerformance Reportreference
Attachment A, VolumesforPricingTransactions(filled inwith rates)
Sample Account AnalysisStatementandUser’sGuide (ifapplicable)
Attachment D, SampleCollateral Agreement (ifapplicable)
anyagreements(including thosenot directlyreferenced inthisproposal) that must be executed under thecontract (ifapplicable)
screenshotsof majorpageswithin yourautomated cashmanagementsystem, or web access (ifapplicable)
sampledailybalancing reportfor remotedeposit (ifapplicable)
sampleaccount reconciliation reports(ifapplicable)