R-88-1157 - 9/8/1988RESOLUTION NO. As / k
WHEREAS, Chapter 1, Section 13, Code of Ordinances, City
of Round Rock, Texas, provides that the City Council shall
select a City Depository for the custody of City funds; and
WHEREAS, the City has duly advertised for bids from
banking firms authorized to submit such bids; and
WHEREAS, Capital City Savings has submitted the most
favorable bid; and
WHEREAS, the City Council desires to accept the bid of
Capital City Savings, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That the bid of Capital City Savings is hereby accepted
and said institution is hereby selected as the official
depository of the City of Round Rock, Texas, for the period
beginning October 1, 1988, through September 30, 1990.
RESOLVED this 8th day of September, 1988.
ATTEST:
JJ• LAND, City Secretary
MIKE ROBINSON, Mayor
City of Round Rock, Texas
CITY OF ROUND ROCK, TEXAS
REQUEST FOR PROPOSAL
DEPOSITORY AND RANKING SERVICES
CITY OF ROUND ROCK
FEOUEST FOR PROPOSAL
DEPOSITORY AND BANKING SERVICES
TABLE OF CONTENTS
Introduction Paae 1
Specifications Page 2
Depository - Banking Proposal Form Page 5
Depository - Investment Proposal Form Page 6
Schedule A - Banking Transactions Statistics Page 7
Schedule B - Estimated Cash Flow Page 8
CITY OF ROUND ROCK, TEXAS
REQUEST FOR PROPOSAL
Depository and Banking Services
The City of Round Rock invites qualified banking institutions to submit
proposals (RFR) far the purpose of serving as the city's central depository.
Sealed Proposals
A proposal must be.submitted in a sealed envelope bearing the title City of
Round Rock Depository Proposal along with the respondent's official name,
address and representative's name, title and telephone number. Please
return a complete copy of this document with all blanks completed and any
additional attachments. The proposal shall be returned no later than
4:0) p.m. on Friday. August 19. 1992 to the City of Round Rock City
Secretary at City Hall, 221 E. Main Street, Round Rock, Te::as. At this
time proposals will be opened and read publicly.
Any proposals received after the above specified time will be returned
unopened.
' Right to Reject Proposals and Waive Informalities
The City reserves the right to reject any or all proposals and to waive any
non - material irregularities or informalities.
Page 1
1. Introduction
CITY OF ROUND ROCK, TEXAS
REDUEST FOR PROPOSAL
Depository and Banking Services
Specifications
a. The Texas City Depository Act prescribes procedures for selection of
a City depository designating that home - rule cities are authorized
to receive applications as depository for the custody of City funds
from any banking corporation, association or individual banker doing
business within the City.
The City of Round Rock does, through request for proposal, designate
one financial institution as its depository. This centralization
of City funds is designed to ma: ^imize investment capabilities and
minimize banking cost. The depository designation does not limit
investment activity to the one institution.
b. This RFP is intended to serve as a bid form for the City depository
services contract. The accompanying specifications, information and
supporting schedules are an integral part of this RFP and will become
Dart of any contractual agreement.
C. Questions regarding the following specifications may be directed to:
Sam Huey
Assist. City Manager /Finance Director
City of Found Rock
221 E. Main
Round Rock, Texas 78664
512 -255 -3612
David Kautz
Assist. Finance Director
City of Round Rock
221 E. Main
Round Rock, Texas 78664
512 - 255 - 3612
2. RFP Schedule
August 4, 1988 Specifications available to Financial Institutions
August 19, 1988 Proposals returned to City of Sound Rock
Auaust 25, 1988 Contract awarded by the City Council
August 26, 1988 Pre - service meeting with City staff and Depository
representative
October 1, 19£8 Effective date of depository agreement
i;ualifications to bid the City depository services contract will=
include:
a. Full banking service capabilities within the City of Round Rock.
b. Deposits shall be insurable up to the legal limit by FDIC or FSLIC
Insurance.
c. Collateralizatlon of the total amount on deposit in the depository.
d. Statutory capital requirements of at least 5% for banks and 3% for
Savings and Loans.
e. Submission of latest financial statements to be filed with the
regulatory agency which has authority over the depository.
Pape 2
4. Selection of the. Depository
Selection of the depository shall be based on the institution
offering the most favorable terms and conditions for the handling
of City funds and the services available to the City.
Term of Agreement
The contract award is intended to over two years. After the
initial contract period, the contract will automatically renew on
an annual basis unless either party gives written notice at least
90 days prior to October 1.
Either party may withdraw from any signed agreement, by giving
90 days written notice of intent to terminate such agreement.
Services Required as Depository
a. Banking Function - Accepting deposits, safekeeping of those
deposits, paying checks upon demand and other customary services.
b. Monthly Statements - Preparation of monthly statements showing
debits, credits and balance of each separate account. Statements
shall be provided to the City no later than the 10th of the month
following the cut -off day. Cancelled checks and deposit receipts
are to be included in monthly statements.
c. Account Maintenance - Maintenance of all accounts, reports and
records regarding all City transactions. Preparation of such other
reports, accounts and records which may, from time to time, be
required by the City in order to properly discharge the duties as
provided by Depository law.
d. Printing - Furnishing of the required quantity, quality and type of
checks and deposit receipts far the City's use during the period for
which this proposal is submitted.
e. Bank Card Services - Depository should provide processing for VISA
and MasterCard receipts, including deposits, chargebacks and
statement reporting.
f. Wire Transfer Services - The depository shall maintain wire transfer
facilities to the Federal Reserve Bank for transactions with other
commercial banks. Wire service debit and credit notices must be
provided to the City within 5 banking days of any transaction and
must also be included in the monthly statement of the applicable
accounts.
o. Locking Sank Bags - The depository shall provide at no additional
cost to the City the following deposit bags:
Quantity Type
20 12" x 15" locking
14 6" x 11" non - locking
h. Collateral for City Funds - The City, in accordance with State
Statute, requires that all City funds held by financial institutions
above the Federal Deposit Insurance Corporation or the Federal
Savings and Loan Insurance Corporation insurable limits be
collateralized with securities pledged to the City at current market
value by that institution or by private insurance coverage.
Investments which may be pledged to secure City funds are found in
Chapter 105, Local Government Code. (State Statute) The City
Finance Director must approve any collateral as being in the best
interest of the City.
Release of Collateral - No Collateral may be withdrawn, released or
substituted without the prior written consent of the City Finance
Director or his designee. The City will release collateral only upon
request and proof that such collateral is not needed as security for
City deposits.
Page 3
Additions to Collateral - In the event the amount of City funds on
deposit with the Depository shall e: at any time the current
market value of the collateral securing such deposits, the Depository
shall immediately pledge acceptable collateral to make up the
deficiency.
Statements Recardinc Collateral - The Depository shall furnish the
City upon request a detailed description of the collateral pledged
to the City. The description should contain the type, market value
and location of each collateral instrument.
Safekeeping - The City requires safekeeping receipts to be received
by the City within 5 banking days from the date of pledge. Any
securities pledged must be held in the custody of an independent,
third party bank.
1. Investment Services - The Depository shall assist in the purchases
and sales of securities for the account of the City.
j. Other - From time to time the bank will be asked to provide
assistance in various additional banking and financial matters.
Examples of these matters would be assistance in the collection of
letters of credit and advisory services regarding investments and
financial forecasts.
7. Exceptions to this Bid - Any exceptions to these specifications
are to be included and explained on a separate page and returned with
this proposal.
Fade 4
The undersigned,
c*br herei
Depository of the
specifications and
followings:
DEPOSITORY /BANKING SERVICES PROPOSAL FORM
savings and loan association
a statomAttdoat*** ttearn *tAditAtt * *OAti * *btV4k #V+�
natter called Bidder, for the priviledge of acting as
City of Round Rock and in consideration of the attached
supporting schedules will pay or charge the City as
1. Bidder will pay the City interest on demand account balances at the rate
of 6.30 % interest per year on the net daily average balance on al]
City accounts, compounded daily and paid monthly; rovided, haaever, that if the total ll
anamtof demand account balances plus certificate of d it balances fall 11a $10,00O3000, fall Id i d�d err . ` w i ll es
pay the City T an ( de ( m f nd balances at the rate of 6. interest per year
2. � dS r }•1 - - j3 • y the City interest on demand account balances which have
a net daily average balance below $2500, at the rate of *
interest per year compounded daily and paid monthly. * same as #1 above
CCS Prime Rate, floating daily,
* * * * * * * *k *sratremeeik *maffie to be paid by City to Bidder on overdrafts or
their equivalent; (Overdraft as used in this section shall mean that"
the City does not have a comoensating balance in other funds or accounts
in the depository).
4. Bidder will make short -term loans to the City (' days or less) for a
maximum amount of s 5,000,000.00at ************x*Aa**(!c*A**14e-sobar
CCS Prime Rate ,..floating daily. * h dad y � *gam * i #*n a#
to *tlr'�rk the 1§tdiMe *yik> ra si
4 ec ** lt1 *iitokee** *AW all)* All loans to the City will be in the
form of properly executed promissory notes for any legal purpose, as
stated under present Te:".as Laws. The City will be required to maintain compensating
balances equal to at least the amount of any short -term loans outstanding.
g 0 per•month for keeping the City's
5. bidder will charge the City
deposit records and accounts as specified in this proposal.
6. Please specify the ma: balance of demand deposits your bank would
be willing to service and collateralize $ 5,000,000.00
BIDDER
BY
:Capitol City Savings Association of Austin, Texas
LJA
�nr6ls� er °v
SE✓ //ez >iZE1,as. iREA w1 R.
TITLE
X1 205 Round Rock Avenue, Round Rock, Texas 78681 (Round Rock branch)
ADDRESS :919 Coneres.5oYenue. Austin. Tex 78701 (home office)
(512) 244 -2202 (Round Rock)
TELEPHONE :S5121_478 (Austin)
DATE :August 22, 1988
Paoe '5
INVESTMENT RID PROPOSAL FORM
The City of Round Rock Investment Policy provides for investing idle funds
as allowed by law and with regard to safety, liquidity and yield.
Investments placed with financial institutions shall be fully collateralized
as stated in section 6.i of this RFP. Investments will not be restricted
to one institution or particular instrument.
savings and loan association
The undersigned, a qualified etamkAkag **4)6A4:tAAifig, for the priviledge of
receiving City investments will pay the City as follows:
Certificates of Deposit
1. Single maturity time deposits of $100,000 or more:
* % more /less (clearly indicate one) than the asked rate for U. S.
Treasury Bills maturing closest to the maturity date of the time deposit
being purchased. (Source: Wall Street Journal) *See' #4 below.
2. Sinole maturity deposits of less than $100,000:
* . more /less (clearly indicate one) than the asked rate for U. S.
Treasury Rills maturing closest to the maturity date of the time deposit
being purchased. (Source: Wall Street Journal) *See #4 below.
3. Time Deposit Maturity Dates - Maturity dates for time deposits shall be
determined by the City. The City reserves the right to invest funds in
time deposits of the Depository which shall mature up to 30 days after the
termination of the Depository agreement. Any deposits shall remain fully
collateralized according to conditions set forth in these specifications.
4. Alternate Investment Bid (Specify here or attach)
See attached.
5. The bidder may specify the ma::imum amount of investments able to be
collateralized. % 35,000,000
BIDDER : Capitol City Savings Association
BY
TITLE
ADDRESS
TELEPHONE
DATE
: August 22, 1988
Approved by City of Round Rock
Date 19
JAmES /0. iovv
9Ea/�0e d /cE /37 & % 1 ne suv/Z
1205 Round Rock Avenue, Round Rock, Texas 78681 (Round Foci( Brands
: 919 Congress Avenue, Austin, Texas 78701 (home office)
(512) 244 -2202 (Round Rock)
: (512) 478 -1607 (Austin)
Page 6
Mike Robinson, Mayor
4. Alternative Investment Bid
1
For single maturity time deposits of any dollar amount,
Bidder will pay to the City a specified rate more than the
asked rate for U.S. Treasury Bills maturing closest to the
maturity date of the time deposit being purchased (as quoted
on the day of deposit in the Wall Street Journal), said
specified rate to be determine- by the total amount of
demand account balances plus certificate of deposit balances
(including the balance of the certificate or certificates
being priced) on deposit on the day of deposit with Bidder.
The specified rate is to be determined as follows:
Total deposits
held by
Bidder
Premium rate to
be paid over
T -Bill rate
$0 - $19,999,999 .30%
20,000,000 + .35%
The City shall be limited to a total of $5,000,000 in
certificates of deposits with maturities of greater than one
(1) year, or 365 days.
CITY OF ROUND ROCK, TEXAS
REQUEST FOR PROPOSAL.
DEPOSITORY AND BANKING SERVICES
SCHEDULE A
BANKING STATISTICS
•1. Number of Bank Accounts: 12 -15
2. Number of checks issued annually:
a. General Fund - 5733
b. Utility Fund - 2787
c. Capital Projects Funds - 651
d. Payroll - 7734 -
e. All Other - 221
3. Number of deposits annually: 43$1
4. Wire Transfers:
a. Incoming - V
b. Outooing - 35
5. Number of Overdrafts - None to date; None anticipated
6. Number of Short Term Loans - ,None to date; None anticipated
Face 7
SCHEDULE B
CITY OF ROLR1D POCK CASH FLOW PROJECTION - prepared 7/22/88
(Estimate Only)
BEGINNING BALANCE - GENERAL FUND
BEGINNING PALANCE - UTILITY FUND
BEGINNING BALANCE - CAP FROJECTS FUND
BEGINNING BALANCE - ALL OTHER
TOTAL BEGINNING BALANCES
CASH RECEIPTS BY FUND:
GENERAL FUND
UTILITY FUND
CAPITAL PROJECTS F800 -
G.O. BOND SALES
REVENUE BOND SALES
INTEREST EARNINGS
ALL OTHER
TOTAL CASH RECEIPTS
CASH DISBURSEMENTS BY FUND:
GENERAL FUND
UTILITY FUND
CAPITAL PROJECTS FUND
ALL OTHER
TOTAL CASH DISBURSEMENTS
ENDING BALANCE - GENERAL FUND
ENDING BALANCE - UTILITY FUND
ENDING BALANCE - CAPITAL FROJECTS FUND
ENDING BALANCE - ALL OTHER
TOTAL ENDING BALANCES
OJECTED CASH DEPOSIT DISTRIBUTION
'00081910 E,XEPOSITS
TIIis DEPOSITS
JUL 88 AUG 88
3,500,000
7,676,854
13,390,000
5,674,955
3,621,000
7,956,854
12,940,000
5,624,955
3,621,000
7,956,854
12,940,000
5,624,955
30,249,809 30,142,809
600,000 600,000
600,000 600,000
50,000 50,000
25,000 25,000
1,275,000 1,275,000
487,000 2,200,000
320,000 1,700,000
500,000 500,000
75,000 75,000
1,382,000 4,475,000
2,021,000
6,856,854
12,490,000
5,574,955
'30,142,809 26,942,809
2,411,425 2,155,425
27,731,384 24,787,384
SEP 88 OCT 88 NOV 88 DEC 88
2,021,000
6,856,854
12,490,000
5,574,955
487,000
320,000
500,000
75,000
2,134,000
7,036,854
12,040,000
5,524,955
2,134,000
7,036,854
12,040,000
5,524,955
487,000
320,000
500,000
75,000
2,247,000
7,216,854
Ii,590.000
5,474,955
2,247,000
7,216,854
11,590,000
5,474,955
487,000
320,000
500,000
75,000
2,560,000
7,396,854
11,140,000
5,424,955
2,560,000
7,396,854
11,140,000
5,424,955
600,000 600,000 800,000 1,200,000
500,000 500,000 500,000 500,000
50,000 50,000 50,000 50,000
25,000 25,000 25,000 25,000
487,000
320,000
500,000
75,000
3,273,000
7,576,854
10,690,000
5,374,955
JAN 89 FEB 89 MAR 89 APR 89 MAY 89 JUN 89 JUL 89 AUG 89 SEP 89
3,273,000
7,576,854
10,690,000
5,374,955
3,686,000
7,756,854
10,240,000
5,324,955
487,000 2,000,000
320,000 1,100,000
500,000 500,000
75,000 75,000
3,686,000
7,756,854
10,240,000
5,324,955
2,486,000
7,156,854
9,790,000
5,274,955
2,486,000
7,156,854
9,790,000
5,274,955
26,942,809 26,735,809 26,528,809 26,521,809 26,914,809 27,007,809 24,707,809 24,600,809 24,493,809 24,386,809
1,175,000 1,175,000 1,375,000 1,775,000 1,475,000 1,375,000 1,275,000 1,275,000 1,275,000 1,275,000
487,000
320,000
500,000
75,000
1,382,000 1,382,000 1,382,000 1,382,000 1,382,000 3,675,000 1,382,000 1,382,000 1,382,000 1,382,000
2,699,000
7,336,854
9,340,000
5,224,955
2,699,000
7,336,854
9,340,000
5,224,955
487,000
320,000
500,000
75,000
2,912,000
7,516,854
8,890,000
5,174,955
2,912,000
7,516,854
8,090,000
5,174,955
487,000
320,000
500,000
75,000
3,125,000
7,696,854
8,440,000
5,124,955
3,125,000
7,696,854
8,440,000
5,124,955
487,000
320,000
500,000
75,000
3,338,000
7,876,854
7,990,000
5,074,955
26,735,809 26,528,809 26,521,809 26,914,809 27,007,809 24,707,809 24,600,809 24,493,009 24,386,809 24.279,809
2,138,865 2,122,305 2,121,745 2,153,185 2,160,625 2,223,703 2,214,073 2,204,443 2,194,813 2,185,183
24,596,944 24,406,504 24,400,064 24,761,624 24,847,184 22,484,106 22,386,736 22,289,366 22,191,996 22,094,626
3,338,000
7,876,854
7,990,000
5,074,955
3,551,000
8,056,854
7,540,000
5,024,955
1,851,000
6,856,854
7,090,000
4,774,955
24,279,809 24,172,809 20,772,809
900,000 800,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000
500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000
50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
1,275,000 1,275,000 1,275,000 on
487,000 2 ,400,000
320,000 1,700,000
500,000 500,000
75,000 75,000
1,382,000 4,675,000 1,932,000
3,551,000
8,056,854
7,540,000
5,024,955
1,651,000
6,856,854
7,090,000
4,974,955
487,000
320,000
500,000
75,000
2,064,000
7,036,854
6,640,000
4,924,955
24,172,809 20,772,809 20,665,809
2,175,553 2,077,281 2,066,581
21,997,256 18,695,528 18,599,228
FIRST
NATIONAL
BANK
OF ROUND ROCK
August 23, 1988
David Kautz, CGFO
Asst. Finance Director
City of Round Rock
221 East Main Street
Round Rock, Tx 78664
Dear David:
We want to extend our thanks to the City of Round Rock and to
you personally for extending the opportunity to bid on the
City's depository to the First National Bank of Round Rock.
Unfortunately the FirstNatipnal Bank will not be in a position
to bid this year due to our obligation to the RRISD as
their depository. However, we hope we will be able to bid
again at the next time the City's accounts become available.
i ely,
Jo Sloan
/ / 'President
JES /kd
MEMBER FDIC P.O. Box 5 • ROUND ROCK, TEXAS 78680 -0005 • 512- 255 -2501
M BankRound Rock
A Momentum Bank
Mr. Sam Huey
Assistant City Manager
Director of Finance
City of Round Rock
221 East Main
Round Rock, Texas 78664
Dear Sam:
August 23, 1988
MBank Round Rock appreciates your request to us to submit a proposal for
the purpose of serving as the city's central depository. We have achieved
significant growth this year, partly due to the progressive business
attitudes taken by the City of Round Rock.
Our growth has limited our ability to obtain new collateral to support
the city business. We are extremely disappointed that we are not in
the position to enter a bid at this time.
Thank you for your kind consideration.
Sincerely,
3
TWW:sj
MBank Round Rock
P.O Box 368 Round Rock, Texas 786800368 512 255.3622
Member MCorp.
Terrence W. Webster
Executive Vice President
disL-
DATE: September 6, 1988
SUBJECT: Council Agenda, September 8, 1988
ITEM: 13E. Consider a resolution authorizing the Mayor
to enter. into a contract for the City depository.
STAFF RESOURCE PERSON: David Kautz
ECONOMIC IMPACT:
The City requested proposals from area banking institutions to
serve as the City's central depository for a two- year-_ period.
Three local institutions, MBank
Capitol City Savings, expressed an
Capitol City Savings offered a b
reserves the other institutions
callateralize deposits above Federal
The offered by Capitol City Savings provides significantly
better interest rateds than the current depository agreement
which they also hold. Though only one bid was received the rates
offered probide an excellent return on the City's deposits and
investments as compared to the open market -. t Staff - recommends
T_T that the bid from - C City Savings be accepted.
DEPOSITORY AGREEMENT BID ANALYSIS
BIDS COVERING A DEPOSIT AGREEMENT FROM OCT.I, 1988 THROUGH SEP.30, 1990
date prepared 08 /23/88
BID ITEM5:
(11 TIME DEPOSITS -RATE ON )$100,000
(2) TIME DEPOSITS -RATE ON (4100,000
(3) DEMAND DEPOSITS -RATE ON )02,500
(4) DEMAND DEPOSITS -RATE ON (42,500
(5) ANNUAL SERVICE CHARGES
(61 MAXIMIMM DEMAND DEPOSIT BALANCE
(7) MAXIMUM TIMME DEPOSIT BALANCE
AMUUTAL EARNINGS /COSTS RESULTING FROM BIDS:
(1) TIME DEPOSITS
(3) DEMAND DEPOSITS
(5) ANNUAL SERVICE CHARGES
(ET ANNUAL EARNINGS /(COST) TO CITY
COMPUTATION DATA:
AVERAGE DEMAND DEPOSIT BALANCE -
AVERAGE TIME DEPOSITS -
BASE T- BILL'RATE'I15ED-IN- CALCULATION
First National Bank and
interest in bidding but only
id. Due to tight capital
were unable to adequately
deposit insurance limits.
CAPITOL CITY
SAVINGS (NEW)
0.0035
0.0035
0.063
0.063
0.00
$5,000,000.00
$35,000,000.00
01,469,133.45
135,972.31
0.00
CAPITOL CITY
SAVNGS (OLD)
0.0029
0.0029
0.0525
0.0525
0.00
N/A
N/A
$1,455,675.74
113,310.26
0.00
$1,605,105.76 $1,568,986.00
$2,158,290.63
$22,429,518.37
0:062
VARIANCE
0.0006
0.0006
0.0105
0.0105
$13,457.71
22,662.05
0.00
$36,119.76