Request for ProposalForm

053-15 Banking Depository Services

BirdvilleIndependent School District

Due Date: Tuesday, March 31, 2015

2:00 PM CST

Definitions and Instructions

In this document, the terms “you” and “your” refer to the depository bank, and “we,” “our,” and “us” refer to the district named above.

You must answer all questions in this form and provideit to us as yourproposal.

We havethe right to reject any proposal.If any partof this proposal or any contract entered into between you and us is invalid, the remainder, at ouroption, remains in force and is not affected.

Bank Compensation

Do we have the option to pay for yourservices by targeted balances or by fees?Please describe any differences in related costs to us with either option.If we choose one option for the life of the contract, is there a difference in service fees?

-Compensation Based on a Targeted Balance

We may choose to pay for yourservices by maintaining a targeted amount of ourfunds in the depository.We will maintain balances in the checking accounts to compensate you in full or in part for services provided.You must provide a monthly account analysis that reflects the earnings credited for these balances.

You may invest any excess collected balance daily as directed by us in an overnight investment that we approve, an interest bearing account, or a money market mutual fund registered with the Securities and Exchange Commission (SEC).Please list below the overnight investment and any index upon which the rate will be based.

Please provide the following rate history information foryour bankby completing Attachment A-Bank Historical Info-Bank Rates.

-Earnings Credit Rate (ECR):

-Interest Bearing Accounts:

-Money Market Accounts:

-Sweep Accounts:

If any of these rates is based on an index rate (such as the T-Bill auction rate), stipulate how you will use the index to calculate the rate.

-CompensationBased on Fees

We may choose to pay for yourservices on a straight fee basis in which we will not maintain a targeted balance.Youwill assess fees, and wewill pay them in accordance with your proposed fees as listed on Attachment C, District Activity Summary-Volumes for Pricing Transactions.

District Financial Overview

The District's Business Office handles all banking, treasury, and investment activities as well as accounts payable, receivables, payroll, and financial reporting functions. The Director of Business is responsible for the department and reports to the Associate Superintendent of Finance. The District has 34 separate campuses. Each campus has an activity fund bank account.

In regards to the central depository set by this RFP, the District has multiple locations at which funds are collected and from which funds may be deposited. Currently deposits are made by courier for the campuses on a daily basis (33 locations). The Business Office handles all reconciliations for this contract.

The District has an average of 3,000 fulltime employees and additional part-time employees. Payrolls are paid differently for these groups. Professionals are paid monthly and support staffs are paid bi-weekly. Direct deposit is mandatory. Approximately 99% District employees are paid by direct deposit.

The District wants to utilize automated banking services when efficient and cost effective. This proposal should address automation potential on any services.

Of the main district accounts, most bank transactional activity will occur in the Operating and Payroll accounts. All accounts may receive some limited deposits or transfers but not on a daily basis except Child Nutrition. All wires occur in and out of the General Operating account. Security transactions will draw from the General Operating account. ACH is used primarily in the Payroll account. Positive pay is currently being used but not on all accounts. The District would like estimates on adding positive pay to all disbursement accounts under this contract.

  • The District has approximately $5 million in payables monthly with accounts payable checks generated semi-weekly.
  • The District is beginning a $160 million bond program that will increase the monthly payables.
  • The District has a $ 13.5 million per month total payroll with mandatory direct deposit. (A minimal number of grandfathered paper payroll checks are written. Pay cards are also utilized for employees without access to a bank account.)

The Director of Finance will continuously monitor the bank’s performance against provisions of the agreement, including the bank’s proposal submitted in the response to this RFP. The Director of Finance will also be responsible for administering the agreement with respect to day-to-day activities, including deposits and withdrawals, ACH transactions, maintenance of account balances, daily reporting, etc. A list of District personnel authorized to deal directly with the bank will be provided following award of contract.

District Investments

We reserve the right to purchase, sell, and invest ourfunds and funds under ourcontrol, including bond funds, as authorized by the Texas Government Code, Chapter 2256, Public Funds Investment Act, and in compliance with ourinvestment policy, a copy of which is attached as Attachment D.

We may choose to invest in time deposits at the depository, but all investments including certificates of deposit are bid competitively at the time of purchase.

Collateral

The Depository must provide collateral per Texas Education Code §45.201 and Local Government Code 2257. Conditions regarding collateral are found below.

-Collateral Conditions

You must provide collateral equal to 102 percent(110 percent on MBS) of all ourtime and demand deposits plus accrued interest minus applicable Federal Deposit Insurance Corporation (FDIC) coverage.Collateral will be pledged to us and held in an independent safekeeping institution by a custodian or permitted institution as specified by the Texas Government Code, Chapter 2257, Public Funds Collateral Act.

Wewish to maintain a minimum collateral requirement of $5 million. Collateral requirements will increase at various times during the month based on payroll and accounts payable needs. The maximum required collateral level should not exceed $15 million.

Pooled collateral proposals will have to be reviewed by staff and are not likely to be used.

-Eligible Collateral

We will accept only the following as pledged collateral:

  • Obligations of the US Treasury.
  • Obligations of US Government agencies and instrumentalities including mortgage backed securities which pass the bank test.
  • Bonds of any State or its subdivisions if rated A, or better, by at least one nationally recognized rating agency.

Banking Services Fees

Based on the services we require from you, complete the proposed fee schedule, Attachment C, District Activity Summary-Volumes for Pricing Transactions.

Depository Information

Please answer the following questions aboutyourdepository bank.

1.State the full name and address of the depository and any parent holding company.List all branch locations within our boundary.

2.Provide the Uniform Bank Performance Report (UPBR) reference or annual audited financial statement for the most current fiscal year.This may be in printed form, but we prefer an electronic link to the website.Members of yourholding companies must include corporate annual financial statements and yourindividual call report for the most recent operating quarter.

3.State your rating from an independent depository rating agency or, if that rating is not available, the rating on your senior and subordinate debt.You must inform us of any change in this rating during the period of the contract within a reasonable period.

4.Contact Information

To ensure smooth communication and continuation of services, you must assign a specific account executive and a backup to our account to coordinate services and help solve any problem encountered.

a.Designate a depository officer as a primary contact with us.

Name______

Title ______

Telephone # ______

Fax # ______

Email______

b.Designate a depository representative as a backup contact with us.

Name______

Title ______

Telephone # ______

Fax # ______

Email______

c.If the primary and backup contacts arenot available, how do we contact someone in an emergency?After hours?

d.Describe in detail how you handle problem resolution, customer service, day-to-day contact, and ongoing maintenance for governmental clients.Please be specific about exactly whom we will be calling and working with for the situations described above.

5. Customer Service

Service will be a primary focus of the evaluation. Describe the bank’s philosophy and approach to satisfying this need through the following responses. The District is particularly interested in high-performance customer service.

a.What is distinctive about the bank’s approach to customer service? How does the bank anticipate satisfying the District’s need for customer service?

b.How many individuals does the bank have in the local bank? How will the bank provide the District with relationship support for its services? How will local service and overall contract performance be monitored?

c.How do the local employees in the bank participate and contribute to the community? How does the bank itself contribute/participate within the District and the community?

d.How does the bank intend to support the new and ongoing automation needs of the District? How will this impact the District now and throughout the contract period, if at all?

e.Are there any new services planned which may impact the District? When are these planned to be available?

f.What support will the bank be able to offer the District in a disaster situation to maintain stable banking functions? Focus on systems, telecommunications and power, operational facilities, and transportation.

i.The District requires the right to use a third party auditor to review the District’s accounts, collateral, transactions, and bank records at any reasonable time. Confirm agreement with this condition.

6.List references from at least three of your current, comparable governmental clients.Include the length of time under contract and a client contact, title, and telephone number.

7.Based on the services we require, please provide a proposed timeline for implementing the contract; include the timeline activities and direct responsibilities of both our district and yourdepository bank during implementation.

8.Provide a copy of all agreements (including those not directly referenced in this proposal) thatwill be required under the contract.

9.If we award the contract to you, you must review ourthen-current district investment policy and certify in writing to that review in accordance with the Public Funds Investment Act verifyingthat you have sufficient controls in place to avoid transactions not authorized by the policy. We have attached our investment policy to this proposalnotice in Attachment D.

10. We may conduct a preaward interview on-site at your deposition bank before awarding the contract. Please provide us with a contact name for arranging the preaward interview.

11.Are you offering any transition or retention incentive to us? If so, please describe it in detail.

Banking Services

1.Consolidated Account Structure with Sweep Mechanism

We are interested in earning current interest rates at all times.We want the option to use an automated, daily sweep to a money market mutual fund or depository alternative account (if competitive) to reach ourfull investment goal.We will not accept a repurchase agreement as a sweep investment vehicle.

Our current account structure is listed as Attachment B, District Historical Info-Accounts and Average Balances.We do not guarantee that we will maintain the balances at these same levels.

You must clearly describe your most cost-effective account structure (interest bearing accounts, zero balance accounts [ZBAs], or sweep, etc.).

  1. Fully describe the proposed account structure.Would a sweep be from a master account with ZBAs or directly swept from the individual accounts?Is interest distributed at the account level?
  2. State the average interest rate on the recommended alternative structure for the past 12 months.
  3. If an SEC-registered money market fund is usedfor the sweep proposal, provide the full name and a copy of the prospectus.
  4. Interest earned on interest bearing accounts mustnotbe charged as an expense on the account analysis. Confirm acceptance of this condition.

We may be required or may desire to open additional accounts, close accounts, or change account types during the contract period.If this occurs, the new accounts and services mustbe charged at the same contracted amount or, if unanticipated, at not more than published rates.

2.Automated Cash Management Information

We are interested in automated balance and detail information. These services will only be required on the six (6) main District accounts and the three (3) high school activity bank accounts. The other 29 campus activity accounts will only require online bank statement access; however, include the cost for the other automated services in case we want to add these services for all bank accounts. Minimum automated services mustinclude the following:

  • prior-day summary and detail balance reporting on all accounts((Daily balance reporting should include detail on all transactions with summary reporting on closing ledger and collected balances along with one-day float, at a minimum.)
  • intraday detail and summary balances (operating, controlled disbursement and payroll accounts)
  • initiation and monitoring of stop payments
  • positive pay exception transactions
  • initiation and monitoring of internal and wire transfers
  • initiation and monitoring of ACH transactions
  • image access and retention
  • balance totals for all District accounts for daily collateralization analysis
  • controlled disbursement presentment totals
  1. Fully describe youronline service. List the system capabilities (for example, balance reporting, wires, positive pay, stop payment, etc.).
  2. What is your backup process to reportbalances and transactions in case thesystem is not available?
  3. When is daily balance information available?
  4. Submit samples of major screens available, or provide web link access to a demonstration module.
  5. Describe fully the ability to search on historical transactions and reports as well as the ability to retrieve and download historical images.
  6. Can customized reports draw across or drill down in reporting modules and activities? Describe cross functionality features.
  7. Describe provisions for off-site backup and continuation of services in local or regional disaster situations.
  8. What are the hours of available technical support? Where is the technical support located? How is support provided?
  9. How is anindividual security sign-on assigned, and who maintains the security module?How many levels of security are available?
  10. With regard to controlled disbursements:

– What is the cutoff time for disbursements?

– How do we have access to this information?

3.Deposit Services

We require standard commercial deposit services for all accounts. No checks are or will be encoded. Coins are currently not rolled for deposit. On average the District makes 45 separate daily deposits with tamper proof bags. All campuses use the District courier. A few deposits are made at branch locations by staff. Only the athletics department currently straps currency. Strapping and rolling are not required internally.

We expect all deposited checks to clear based on your current published availability schedule, but please note any options for expedited availability in yourproposal.For all cleared deposits you receive by your established deadline, you must process them for same-day ledger credit.If you fail to credit ouraccounts in a timely fashion, you must pay interest to us at the then-current effective federalfunds rate.

The District currently accepts credit cards in the online service through Revtrak and all transactions are done online – none on a face-to-face basis. There are other departments that will be added during the contract period.

  1. What is your daily cutoff time to ensuresame-day ledger credit?
  2. Describe how and when you send creditanddebit advices to us.
  3. When are credit/debit advices sent to the District from the deposit locations? How are these advices sent? What delivery options are available? (Preference will be given to electronic delivery.) Are images of originals provided with each advice?
  4. Does the bank provide for location tracking on deposits? Describe.
  5. Is the bank familiar with and does it work with RevTrak currently? Please detail any difficulties found and confirm that interface will be possible.
  6. Is deposit reconciliation available? Describe the process and options.
  7. Does the bank require or prefer strapping and rolling? What are the cost options/benefits/requirements for separating cash and checks?
  8. Is there any limit to the number of deposits in one bag? Are these handled as separate advices?
  9. What type of deposit bags do youuse or require?Are these available from you?
  10. In what city does item processing occur?
Remote Deposit

Currently, only the Business Office uses remote check deposit. We are interested in establishing remote check deposit for a few other high-volume locations during the contract period.These deposits include both consumer and commercial checks.