HomeMy WebLinkAboutRes 06-13 WA Awarding Bank Depository agreement with First Financial Bank WESTLAKE ACADEMY
RESOLUTION NO. 06-13
A RESOLUTION OF THE BOARD OF TRUSTEES OF WESTLAKE ACADEMY,
APPROVING THE AWARD OF A BANK DEPOSITORY BID FROM FIRST
FINANCIAL BANK.
WHEREAS, the Board of Trustees desires to establish and maintain a competent
and competitive depository agreement; and
WHEREAS, the Board of Trustees realizes the importance of identifying new
revenue sources and containing costs where possible; and
WHEREAS, the Board of Trustees finds that the procedures and requirements
set forth in the Texas Local Government Code regarding competitive bidding
requirements for the depository agreement were appropriately followed; and
WHEREAS, the Board of Trustees finds that the bid from First Financial Bank
for the depository agreement, as attached Exhibit "A", is sufficient to meet the public
need.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF
WESTLAKE ACADEMY,WESTLAKE, TEXAS:
SECTION 1: The above findings are hereby found to be true and correct and are
incorporated herein in its entirety upon the date of passage.
SECTION 2: The Board of Trustees of Westlake Academy, hereby approves the
depository bid from First Financial Bank, attached hereto as Exhibit "A"; and further
authorizes the Finance Manager to accept the bid on behalf of the Westlake Academy.
PASSED AND APPROVED ON THIS 28TH DAY OF AUGUST 2406.
ATTEST: Scott Bradley, President
n
J n Dwinnell, Town Secretary Barbara Brizuela, lead of School
APPROVED TO
L. Stanton Lowry, own orney
TOWN OF WESTLAKE,TEXAS
REQUEST FOR PROPOSAL
BANK DEPOSITORY CONTRACT
I. INTRODUCTION
The Town of Westlake(hereafter, "Town")is requesting proposals from eligible financial institutions
(hereafter,"Bank")to be designated as the depository for the Town. This includes the basic services of
receiving deposits, paying items, wiring funds, stop payments, and other business banking activities.
This agreement will not cover any investment transaction activities,as the Town plans to manage its own
investment portfolio.
The philosophy incorporated into this Request for Proposal (RFP) is to solicit comparable market
charges for services provided and to pay for all services provided by the Bank. The Town also places
importance on the interest paid on daily deposits above any minimum requirements.
The contract period shall be three years beginning August 1, 2006, and thereafter until the successor
depository shall have been duly selected and qualified according to state laws with an option to extend
the contract for two additional one-year periods with tests in the market to determine if agreeable to both
the Bank and the Town. At the outset,the Town wishes to communicate the primary objectives of the
depository agreement,an important component of the overall treasury and debt management program of
the Town of Westlake:
A. To find a bank that is both capable of providing banking services and willing to be attentive to
the Town's money matters;
B. To maximize the total dollars earned by the Town on account balances in order to be prudent
and effective custodians of the taxpayers'financial resources;
C. To maintain a good working relationship with the depository Bank;
D. To adequately compensate the depository Bank for services provided and to allow a
reasonable profit to be earned, subject to competitive forces in the market place;
E. To find a bank that supports the local business and residential community.
This RFP is intended to serve as the proposal form for the depository contract. There are several sections
that require specific information. Please provide such information on the RFP, or indicate on which
attachment it may be found. Please clearly restate the question when supplying answers on any
supplemental pages.
Within this RFP are many statements as to the desire of the Town in regards to certain areas of banking
services. If your Bank is not able to provide service as requested,please state"not available." It should
be emphasized that the specifications on the attached official proposal form represent a preferred level of
service from the Town's perspective. Proposers are instructed to clearly note on the official proposal
form any exceptions or alternatives to the specifications. Clarifying information is required on all
proposed exceptions or alternatives and should be provided as an addendum to the official proposal
form. The language used should not be construed so as to preclude a proposer from presenting
alternative features to the ones stated,either in terms of providing improved service to the Town,or more
acceptable conditions to the Bank. The Town will evaluate all listed and described alternatives. All
points outlined and materials requested should be incorporated into the proposer's reply to be considered
for evaluation.
The Town has designated Debbie Piper,as coordinator and contact person of the proposal process. She
may be reached at(817)490-5712 with any questions pertaining to this RFP.
II. CALENDAR OF EVENTS
Target Date Description of Events
6/9/06&6/16/2006 Advertise Bank Depository notices in the newspaper.
6/30/06 Receive proposals from interested banks(by 2:00 p.m. at Town Hall).
7/3/06—7/7/06 Staff review of proposals.
7/10/06-7/24/06 Make recommendations to Board of Aldermen.Award the contract.
8/1/06 New contract period begins.
III. CRITERIA FOR EVALUATION
Town staff shall review the submitted proposals. The recommendations shall be based on the proposal
determined to be best on behalf of the Town and the taxpayers.
A. Considerations. As an indication of what will be considered in the evaluation of proposals other
than the ability to perform the requested services,the following areas are listed:
1. Ability to provide sufficient and legal collateral for deposits and a third party safekeeping
agreement relative to such collateral(see VI.).
2. Agreement to points outlined in this RFP.
3. Financial and management stability of the Bank: SIC rating or brief history with summary
statement of condition.
4. Demonstrated commitment to the support of local businesses through the provision of credit
and demonstrated intent relative to community reinvestment.
5. Cost of banking services.
6. Rates paid on interest bearing accounts.
7. Safekeeping agreements accepted.
8. Quality of all reports requested.
The Town reserves the right to reject any or all proposals and to waive any non-material
irregularities or information in the proposal.
B. Bank Information. Each proposal shall provide:
1. The amount of paid-up capital stock and permanent surplus of the Bank.
2. A copy of the most recent quarterly call.
3. A copy of the annual financial reports to shareholders for the past two years.
4. A list of the Bank's officers.
5. A list of the Bank's directors.
In order to be considered, a bank must be a federal or Texas-chartered.
C. Questions about the Bank. Additionally,please answer the following questions:
1. Is the Bank insured by the FDIC or other Federal Insurance Corporation?
Yes the bank is insured by the FDIC
2. Is the Bank audited annually by an independent CPA firm? If yes,by whom?
Yes the bank is audited annually y Ernst& Young.
3. How does the Bank define non-performing loans and what percent of current loans are so
classified?
The Bank follows OCC guidelines for categorizing rig a loan as non-performing. Currently the
Bank has $3,750,000,or 11.4% of coital in non-performing loans.
oans.
4. Does the Bank have any significant problems noted by regulatory agencies in the past twenty-
four months? If"yes",please explain.
No the Bank has not had any problems noted by re ug latory agencies in the past 24 months.
5. With what money center Bank does the Bank have its primary correspondent agreement?
The Bank uses First Financial Bank of Abilene as the primary monetary correspondent.
First Financial Bank of Abilene has an agreement with JP Morgan Chase.
6. Name the Bank Holding Company with which the Bank is associated (if applicable) and
describe the legal and financial relationship between the Bank and the Bank Holding
Company.
First Financial Bank N.A. is 100%owned by First Financial Bankshares,Inc.
First Financial Bankshares Inc is a financial holding company headquartered in Abilene,
Texas with consolidated assets of$2.7 billion as of December 31, 2005. First Financial
Bankshares Inc operates 10 affiliate banks which provide services from 44 full-service
locations in the Center West and High Plains regions of Texas. The Company also operates a
trust company and a technology services company. The common stock of First Financial
Bankshares Inc is beneficially held by approximately 5,300 shareholders and is listed on the
NASDAQ Stock Market under the symbol FFIN.
7. Is the Bank a branch bank or will it soon become a branch bank? If so,please indicate which
services will be provided from the branch locations and which will be provided from the main
Bank. Also,please indicate service location throughout the proposal where applicable.
The main office of First Financial Bank N A is located at 3205 East Hwy 114 Southlake,
Texas 76092.
There are also two full service branch locations that are close to the Town of
Westlake:
95 Trophy Club Drive Trophy Club Texas 76262
891 Keller Parkway Keller, Texas 76248
8. Indicate the Bank's capital to assets ratio for the last five years.
2005 7.04%
2004 8.20%
2003 8.87%
2002 9.02%
2001 9.20%
9. What was the Bank's return on assets for 2005?
1.02%
10. Please describe the process by which service problems can be resolved. What person or
organizational unit is available for complaint or problem resolution?
Service Problems can be resolved by contacting any Bank Officer at any of our locations.
The main contacts for the Town of Westlake's accounts will be:
Patti Daniel Branch Manager of Trophy Club 817-329-8602
Sean Shope Sr Vice President of Trophy Club 817-329-8603
11. What is the Bank's Community Reinvestment Act rating? Which of your banks does this
rating cover? Please attach documentation to support this rating. Please provide information
supporting your investment in the Westlake community and commitment to designated
community reinvestment zones in Westlake. Identify specific loan (mortgage and
rehabilitation), grant, or assistance programs that the Bank can provide to the Westlake
residential community in these designated reinvestment zones.
First Financial Bank has received a satisfactory CRA rating. Our last CRA audit covered
all 6 of our locations.
The Bank currently does not have any CRA investments in the Westlake community,
however,we would be interested to hear about M opportunity to invest in the Westlake
community.
The Bank offers a full range of mortgage and other loans that are available to any Westlake
residential owner who qualifies.
Please see attachment in section 25.
12. Provide examples of your Bank's commitment to local businesses in other municipalities
where your Bank serves as the municipal depository.
We currently serve as the municipal depository Bank for the Town of Trophy Club,the City
of Haslet the City of Boyd and also Wise County. The Bank is very committed to
donating money and volunteers to many non-profit organizations within these communities
as well as many others.
13. Provide a list of references. The list should include contact names and phone numbers.
Town of Trophy Club Lisa Ramsey Town SecretM (682) 831-4600
City of Haslet Diane Rasor, City Secretary (940)439-5931
Cijy of Boyd Joy Patterson City Secretary (940)433-5166
Wise County Monte Shaw Tax Collector (940) 627-3304
IV. ACCOUNT ACTIVITIES AND BANK CHARGES
A. Accounts. The Town currently uses controlled disbursement accounts only to deposit funds.
However,the Town is interested in comparing the cost of controlled disbursement for the operating
and payroll accounts with the money market operating account and zero balance payroll accounts
currently used. Please provide pricing both on a fee based and balance required basis for the
following bank accounts:
ACCOUNT NAME TYPE
General Fund Master Account
Municipal Court Controlled Disbursement
Water Sewer Fund Controlled Disbursement
Westlake Insurance Trust Master Account
Westlake Academy Master Account
Additionally,the Town reserves the right to open or close other accounts as necessary to the municipal
and Westlake Academy operation.
The Town will make deposits to accounts at various times during the business day and will require the
Bank to give same day ledger credit on deposits the Bank receives before 3:00 p.m. or the close of the
business day for the Bank. This closing time should be specified.
First Financial Bank's business day ends at 3:OOpm.
The General Fund Account will constitute almost all of the Town's banking business with the Town
making daily deposits to this account. Intra-bank transfers to reimburse money to other Town accounts
and wire transactions will occur in this account. This account will be set up to clear all operational
checks for the Town. It will have one check stock clearing through the account for general
disbursements.
The Town's payroll is released every other week on Friday by 10 a.m.
B. Questions About Service
Please address the following questions regarding banking service:
Controlled Disbursement:
1. What measures are you willing to take to minimize or eliminate any potential exposure arising
as a result of using an affiliate or correspondent?
First Financial Bank does not use an affiliate or correspondent.
2. How will you handle over-the-counter check presentments after the notification of the cut-off
hour?
First Financial Bank's cut-off hour is 3.00pm Over-the-counter check presentments after
3.00pm will be treated as next-business day items.
3. Please specify days on which the disbursing location would be closed or would not receive
cash letters.
First Financial Bank will be closed on all Federal Reserve Holidays.
2006 Dates:
January 2, 2006
January 16, 2006
February 20, 2006
May 29,2006
July 4,2006
September 4, 2006
October 9, 2006
November 23, 2006
December 25,2006
4. Please provide an estimate of the disbursing Bank's clearing times from the most current
survey available.
N/A
5. What options for notification and funding exist?
The Bank offers a free online service. Through this service we have the ability to `memo
post' upcoming debits by 1.30pm The Town could then see all upcoming debits and adjust
their daily deposit to cover.
6. What factors might have a significant impact on the controlled disbursement service over the
next two or three years?
There are no factors that we are aware of that would have a significant impact on the
Bank's controlled disbursement service
7. Are damaged and/or rejected items reentered into the system the same day?
Yes damaged and/or rejected items are reentered into the system the same day.
8. What back-up arrangements for check processing exist in case of any system failures?
First Financial Bank has a formal Disaster Recovery Plan in place. All of our check
processing sites are prepared to handle system failure Depending on the severity of the
failure checks may be transported to another company processing site. All processing sites
have contracts for back-up processing There will be little impact experienced by our
customers.
9. How many times has the Bank(s)that will be handling the Town's activities(Branch and main
Bank)missed notification deadlines and by how much in a recent 90-day period?
The Bank has not missed any notification deadlines.
10. Attach any specific controlled disbursement agreement in keeping with the nature ofthis request
for proposal that the Town would be asked to sign.
See attachment, Section#8
11. Please describe the Partial Reconcilement Service offered by the Bank and attach a sample
reconcilement statement.
Partial Reconcilement is offered through our Online Cash Management system.
Transaction information can easily be exported into a spreadsheet for use with third party
financial gpplication.
See attachment, Section#3.
12. Does the Bank have an established maximum dollar value limit that may not be exceeded by
an individual check? Are there any other restrictions regarding individual check amounts?
First Financial Bank does not have any established maximum dollar value limit for an
individual check There are no other restrictions regarding individual check amounts.
13. When is a check considered to be stale-dated? How are stale-dated checks that are presented
handled?
A check is considered to be stale-dated after 6 months.
If a stale-dated check is presented the Bank will pay the item unless notified otherwise by
the Town of Westlake The Bank suggests that the Town place a stop payment on all
outstanding checks after 6 months.
14. How long are stop payment orders effective? What measures is the Bank willing to take to
minimize or eliminate any potential exposure as a result of a)the Bank reporting that checks
have not cleared when in reality they have and the Town has issued a replacement check,and
b)when checks that have a stop payment request on file have been subsequently honored by
the Bank?
Stop Payments are effective for 6 months or until after the item has been presented.
Stop Payments may be presented to the Bank in person online,by fax, and by mail.
The Bank has many internal controls in place to eliminate any potential problems with Stop
Payments In the unlikely event that a stop payment is accepted and the item is paid the
Bank will assume all liability for the funds.
15. How many encoding errors per month do you consider reasonable? What action will be taken
to ensure that errors will be kept to this maximum acceptable amount? What procedures must
be taken to correct encoding errors that flow through to the Town's account?
The Bank considers encoding errors of less than '/2%of presented items to be within a
reasonable amount The Bank has many ystems in place to ensure that encoding errors are
kept to an absolute minimum However, in the event of an encoding error,the Town would
only need to notify the Bank and corrections will be made immediately.
C. Required Services.
1. Volume. The volume estimates listed in this section are based on activity of the consolidated
and controlled disbursement accounts.
The services requested to be made available to the Town include but are not limited to the
following:
Required Proposed Price Estimated Estimated Estimated
Services Each Monthly Monthly Charge Required
Checking Services:
Account $0.00
Maintenance 5-6 accounts
Debits Posted 150 $0.00
Credits Posted 30 $0.00
Return Items:
Large 0 $0.00
Standard 2 $0.00
Re-Clears 10 $0.00
Special 0 $0.00
Handling
Overdraft - $0.00
Charges
Stop Pay- $0.00
On-Line 1
Account Reconciliation
Services:
On-line $0.00
Account
Maintenance 3
Paid List $0.00
Reconcile
Diskette or CD- 1 $0.00
Rom of
Monthly
Transactions
Funds Transfer:
Account $0.00
Maintenance T 10
ACH Services:
Support/Maintenance Per 1 $0.00
Account
Transmission 30 $0.00
ACH Reporting 0 $0.00
-Return
ACH Receiving 0 $0.00
-Addenda
ACH Reporting 0 $0.00
-Fax
Lobby Services:
Branch Per $0.00
Deposit 35
Information Reporting:
Balance $0.00
reporting(daily
report listing Operating Account
previous day
balances,
debits,credits,
averages, and
check
resentments)
Previous Day $0.00
Items
Other:
Coin Wrappers $0.00
Cost of $1,500,000 — $0.00
Collateral highest for General
Pledged by the Fund
Bank(quote
cost per $350,000 average
million) for General Fund
and Utility Fund
FDIC Insurance All accounts $0.00
Printed Checks 10
Printed Deposit
Slips 35
Cashier's $0.00
Checks 0
Photo Copies 0 $0.00
List any other applicable bank charges.
All service fees will be waived for the Town of Westlake.
The Town uses a web-based program for the transmission of daily reporting information,wire transfers,
ACH transfers (most of these are done through electronic transmission), and other services. Please
provide information about these services. Include a price list detailing the costs for various modules and
describe the services provided by each.
All service fees will be waived for the Town of Westlake.
Please see attachment, Section#21
Please describe the services you provide for returned checks and include a price list.
The Bank will handle returned checks in the manner requested by the Town. There will be no charges
associated for this service or returned items.
The Town currently requires secondary authorization of outgoing wires by an authorized employee
(a list will be provided)not placing the wire. Additionally, the Town requires notification to the
Town Manager if a single wire order of over$500,000 is placed.
First Financial Bank's online system can easily handle the Town's request for proper
authorization on all outgoing,wires Each employee can be set up with any access requested by
the Town.
For example: Town employees can be set up with a wire limit of$499,999.99.
The Town Manager can be set up with an unlimited wire limit.
All wires will require two employees user Ids and Passwords before they will be accepted
by the system.
4. Statements. For reconciliation of the Town's bank accounts the following will be required:
a. Monthly statements on all accounts showing overall activity shall be provided within 5
working days after the close of the calendar month. Statements shall include deposits made on
the last day of the period.Account statements should include checks and debit/credit advises.
Along with the bank statement on the operating and payroll accounts,the Town requires a
report reflecting all items paid in serial number sequence, which is balanced to the bank
statement(partial account reconciliation).
b. Daily ledger balances and securities pledged.
Statements are available the day after the end of the month through the online cash management
system Statements are also mailed the same day.
5. Resource Personnel. The Bank shall identify personnel who are available to answer questions
pertaining to transactions,which require detailed explanation and a Banking officer(s)with overall
responsibility for the account. Please provide biographies of account officers, cash management
sales representatives,and customer service representatives who would be assigned to the account,as
well as their back-ups.The Bank shall be responsible for communicating the terms of this contract
to Bank employees.
The main account officer will be Patti Daniel Branch Manager of Trophy Club. Sean Shope,Sr Vice
President of Trophy Club will also be assigned to the Town's accounts. Kelly Jones,Vice President of
Treasury Management will work with the Town to set up and train on all Cash Management Services.
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6. Printing. The Bank will offer checks and deposit slips printed in conformity with the Town's
specifications. However,the Town reserves the right to purchase checks from an outside vendor if
necessary.
7. Coin-currency. The Bank will process all coins and currency deposited by the Town.
8. Stop Pa ments. It is estimated that approximately two stop payments will be issued per month. The
Bank will maintain stop payments for a period of at least six months. All stop payment requests will
be made orally or electronically by the Finance Director or designated representative.
9. Insufficient Funds Checks. The Bank shall clear all insufficient fund checks twice before charging
them to the applicable Town bank account and returning them to the Town. These items shall be
charged to the Town in accordance with the applicable price schedule. Checks to be returned to the
Town that are in an amount of$2,000 or more should not be debited to the account without prior
notification to the Town from the bank.
10. Funds Availability. The Town expects to receive the best availability of funds available to an
institutional client of the Bank. Attach the Bank's availability schedule and an explanation of funds
credit. The Town recognizes that only collected funds may be used as available balances for placing
outgoing wires.
See attachment 44
11.Automatic Payroll Deposit. Automatic Payroll Deposit is a service the Town currently requires of its
approximately 70 employees. The Bank would be required to produce bi-monthly transfers via
electronic transmission in ACH format for transfer of funds directly to the employee bank,savings
and loan, or credit union account. Please state the Bank's procedure for this service and list
appropriate cut-off times that would apply. The Town's net payroll is approximately $140,000
monthly. State whether the Bank would offer any type of free special checking,money market,or
loan account for Town employees.
The Bank's cut-off time for ACH origination is 3.00PM one business day prior to effective date.
See attachment#21.
The bank will offer Free Checking to all Town Employees. There will be no minimum opening
deposit and no monthly fee Overdraft Privilege will be available to those that qualify. The bank
will also offer a free check card free online banking free 24 hour banking by phone, unlimited
customer service free direct deposit and also a preferred loan rate discount to those that qualify.
12. Deposit corrections. The Town will deposit checks in batches with tapes run for each batch. If the
teller or item processing discovers an error in the deposit,then the Town requires a credit or debit
notice to be mailed to the Town immediately after the account has been adjusted with appropriate
documentation attached to justify the correction. Appropriate documentation is considered to be a
copy of the Town's tape with the item in question marked and a copy of the check in question.
13. Payment for Services. The Town intends to compensate the Bank either on a direct fee basis or
compensated balance basis for all account services provided by the Bank as set forth in section IV-C.
The Bank shall debit the appropriate accounts on a monthly basis. The Town shall require account
analysis each month no later than 15 business days after the end of each calendar month which shall
clearly show volume counts,fees charged,and total prices for servicing the account. The account
analysis shall also show average ledger balances, average uncollected funds, average collected
balances,interest rates and the amount of interest paid or credited to the account. Fees charged to
the Town directly from the Bank are not subject to change for the length of this contract. Please
attach a sample account analysis statement.
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The Town of Westlake will not be charged any fees by First Financial Bank.
V. INTEREST ON MONEY MARKET CHECKING ACCOUNTS
Please provide a detailed explanation of the Bank's policy and methodology used in the setting of rates
paid on money market checking accounts. Specify whether there is a separate rate quoted on public
funds versus the rate quoted for corporations and individuals,and if so,why. Also,provide a schedule
of all rates paid on money market checking accounts since January 1,2003. Specifically indicate if the
rates are applied to the ledger balances or collected balances. Indicate when the rates change and ifthey
are based on a market rate such as the T-Bill discount or yield rate. Indicate the basis used to compound
and accrue interest. List minimum ledger and collected balances required to earn interest. Does the
Bank offer a fined rate of interest if the Town agrees to maintain a specified collected balance? Specify
the minimum interest rate,which will be paid to the Town. How does the bank calculate earnings credit
rates(ECR)? What have ECR's been for the past year? Describe what balance the earnings credit rate
applies to. How will the current ECR and interest rate be continually communicated to the Town?
First Financial Bank will offer the Town of Westlake interest on all checking accounts they open with
the Bank There will not be a minimum or maximum ledger or collected balance required.
Interest will be paid daily on the ledger balance based upon the Bank's daily Fed Funds Investment Rate
minus 1.00%.
As the Bank will not charge the Town any service fees there will not be any ECR on the Town's
accounts.
See Attachment#24 for rate information
Does the Bank offer any type of sweep account where excess Town funds could be invested at a higher
rate overnight than in a money market account arrangement? Does the Bank have money market funds
consisting of treasuries, agencies, prime commercial paper, prime domestic bankers acceptances or
collateralized or insured certificates of deposit that the Town could utilize daily as an investment
alternative? If so,please explain the fund's parameters and interest earnings history or attach a separate
prospectus.
Yes the Bank does offer sweep/repurchase accounts. (Attachment#8) However,the Bank proposes to
pay the maximum rate on all Town funds in the normal checking accounts.
The Bank offers a full range of accounts that will be available at the Town's request, including money
market and CDs CD rates will be tied to a like maturity US Treasury Bill discount rate on the date the
CD is purchased.
VI. COLLATERAL REQUIREMENTS
A. Securities Pledged. As security for the deposits of the Town of Westlake,the Bank shall pledge to
the Town securities equal to the largest total ledger balances the Town of Westlake maintains in the
Bank,less the amount of coverage provided by the Federal Deposit Insurance Corporation(FDIC).
(See the attached schedule for balance information.) The average level of collateral required is
$800,000. At this time the Town does not have an ad valorem property tax. However, if one was
implemented during the life of this contract,the ledger balance may reach over a$1 million during
prime collection periods from December through February. Additionally,at times,the Town will
maintain over$2 million in its account in anticipation of debt service payments which must be made
by 10:00 a.m.on the due date. The securities comprising the pledge shall be valued at par or market,
whichever is lower. Repurchase Agreements are not acceptable as collateral to the Town of
Westlake.
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The Town shall accept the following securities as collateral:
1. A bond,certificate of indebtedness,or Treasury Note of the United States,or other evidence of
indebtedness of the United States that is guaranteed as to principal and interest by the United
States.
2. Obligations,the principal of and interest on which are unconditionally guaranteed or insured
by the State of Texas.
3. A bond of the State of Texas or of a county,city,and other political subdivisions of the State
of Texas having been rated as investment grade (investment rating no less than "A" or its
equivalent)by a nationally recognized rating agency with a remaining maturity of 10 years or
less.
B. Reporting Requirements. The Bank shall provide the Town a report of securities pledged at the end
of each month or at any time requested by the Town's Finance Director or a designated
representative. This report should reflect the following information at the end of each month:
Total pledged securities itemized by:
1. Name.
2. Type/description/cusip number.
3. Par value.
4. Market value at month end.
5. Maturity date.
6. Moody's or Standard and Poor's rating(if applicable).
If the market value of the pledged securities falls below the ledger balances of the total of all the
Town's accounts at any time,the Bank shall immediately pledge additional securities to the Town so
that the amount of pledged securities equals or exceeds the Town's ledger balance the same day.
Collateral may be audited at least annually by the Town's independent auditors and may be audited
by the Town at any time during normal business hours of the safekeeping bank. The audit of the
collateral by the Town's independent accountant or the Town is to ascertain that Governmental
Accounting Standards Board Statement#3 is adhered to and the financial institution is complying
accordingly.
C. Safekeeping. The securities pledged shall be held in safekeeping under the name of the depository
Bank and pledged to the Town of Westlake. Safekeeping must be performed by an independent,
non-affiliate bank or by the Federal Reserve Bank with a three-party agreement signed.
The original copy of all security receipts shall be filed with the Finance Director of the Town of
Westlake. The Town shall reimburse the depository Bank for all charges associated with pledged
collateral at the fee rate specified by the Bank.
Please submit a copy of the safekeeping agreement and the name of the trustee bank to be used in the
event you are awarded the bank depository contract. The safekeeping agreement shall clearly state
that the trustee is instructed to release the collateral to the Town of Westlake if the Town has
determined that the Bank has failed to pay on any accounts, has been closed by a regulatory
authority, or is in default of this contract, and if release has been formally requested by the Town
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Council by ordinance or resolution.
The safekeeping agreement shall have signatories from the trustee bank,the depository Bank and the
Town of Westlake.
See attachment#7
D. Substitutions. 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 the Finance Director or
authorized representative. All securities to be pledged are subject to approval by the Town of
Westlake.
E. Wire Services. The third party safekeeping bank must be a subscriber to the Fed Security Wire
System.
F. Additional Pledaed Collateral. The Board of Aldermen may,by written resolution,require the Bank
to pledge additional or other securities at any time the Board of Aldermen considers it advisable or
considers it necessary for the protection of the Town. If the Bank fails for any reason to pledge the
required securities within 5 days after the date the Bank is served with a copy of the resolution,the
Board of Aldermen may select another bank.
G. Maximum Amount Offered. Please state the maximum amount of pledged securities, which the
Bank is willing or able to commit for collateralized money market accounts throughout the contract
period. $ 2,500,000.00
H. Representations. The Bank represents to the Town:
1. That the Bank is the sole, legal, and actual owner of the securities collateralizing Town
deposits.
2. That no other security interest has been,nor will be, granted in the securities collateralizing
Town deposits.
VII. SECURITIES CLEARANCE AND SAFEKEEPING OF TOWN INVESTMENTS
The Town intends to continue managing its own investment portfolio,therefore,the Town reserves the
right to withdraw,from time to time,any amount of funds of the Town that are deposited in any Town
depository and to invest those funds in accordance with the Town's investment policy.
VIII. OVERDRAFTS AND LOAN PROVISIONS
A. Overdrafts Defined. The Town does not intend to have an overdraft position on any of its bank
accounts singly or net throughout the course of the Depository contract. However, should an
overdraft occur in the aggregate,the following stipulations shall apply:
1. The maximum number of days the overdraft will be allowed before checks are returned is
checks will not be returned
2. The maximum amount of the net overdraft to be allowed before checks are returned will be
$ checks will not be returned
3. The interest rate will be 0.00% * per annum computed on an actual day basis.
* The Bank will not charge any fees or interest for the first 5 days of a negative account
balance If an overdraft situation occurs longer than 5 business days,the Bank would
charge the Town the same interest it would pay on a positive balance
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4. In the event that a check or checks are presented for payment on any Town account where
there are insufficient funds available for payment,the Town will require the depository Bank
to pay said checks and promptly notify the Finance Director of the existence of the overdraft
situation. The Town agrees to cover the overdraft within one business day. Define whether
the Bank would consider an overdraft to be a negative balance in any individual Town account
or as a negative balance in the all Town accounts collectively. Should an overdraft occur,
what other stipulations would apply?
First Financial Bank considers an overdraft to be a negative balance in an individual account.
In the event of an overdraft the item will be paid and the Bank will notify the Finance
Director. No overdraft fee will be charged to the Town for the payment of overdraft items.
B. Short-Term Loans. The Bank agrees to loan funds to the Town on a short-term basis,if needed,for
operational purposes or for capital expenditures. Specify the terms and conditions by which the
Bank would loan funds to the Town on a short-term basis.
1. The maximum number of days for the loan shall be
2. The maximum amount of the loan shall be$
3. The interest rate shall be * per annum computed on an actual day basis.
*First Financial Bank will provide short term loans to the Town as needed. Rates will be tied
to the Bank's Daily Fed Funds Investment Rate minus 1.1%. The term and amount ofthe loan
would be dependent on the collateral(if any)and the borrowers financial condition at the time
of the request.
C. Daylight Overdrafts. The Town does not intend to have daylight overdrafts since it will be necessary
for our depository Bank to send a wire transfer out upon the receipt of confirmation of an incoming
wire transfer. However,should a daylight overdraft be required,what is your Bank's policy on such
an event,and what charges,if any,would be made to the Town's account?What is the amount of the
cap that limits daylight overdrafts for your Bank?
First Financial Bank will pay any daylight overdrafts and waive any fees associated with the
overdrafts There is no cap on daylight overdrafts for the Town of Westlake.
IX. OTHER STIPULATIONS
A. Right to Cancel Contract. In the event it would be ruled illegal under the provisions of any Federal
Statute or regulation for the Bank to pay interest in the manner outlined in this RFP,then the Town
expressly reserves the right and privilege to cancel the contract, withdraw the Town's funds
therefrom,and re-propose the depository services.
B. Periodic Review. The Town may require a review meeting with the Bank at Town Hall periodically
to evaluate the working relationship between the Town and the Bank. The objective shall be to
address any problems or operating procedures and to seek a responsible solution.
C. Extension. All deposits,time certificates of deposit,or loan services which have not elapsed on the
termination date of the finally approved depository contract,shall remain on deposit with the same
depository under the same terms and conditions in effect during said contract until the date such
services have elapsed.
D. Notices. The Bank will notify the Town in writing within ten(10)days of any changes in Federal or
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State regulations or laws that would thereafter affect this depository contract. The Bank shall also
notify the Town of any additional services that become available to the Town throughout the contract
period.
E. Audit. The Bank's records relating to the Town of Westlake's accounts shall be open to review by
either Town staff members or Town-appointed independent auditors during normal business hours.
The Bank's records of Town transactions may be considered public records pursuant to the Texas
Opens Records Act.
F. Financial Reports. During the term of this contract, the Bank shall provide to the Town each
quarterly call report (schedule RC only), each quarterly and annual financial report to the
shareholders and any public information concerning changes in the ownership, management or
financial position of the Bank or its parent.
G. Town Attorney. This Request for Proposal has been reviewed by the Town Attorney and has been
approved by him as to form.
H. Merger. Not withstanding any other provision of this agreement which may be to the contrary,this
agreement and the respective rights and obligations of the parties hereunder shall remain in full force
and effect and not otherwise be affected by a merger of the Bank.
I. Applicable Laws. This contract is governed by the laws of the State of Texas. Venue shall be
exclusively in Tarrant County.
J. Term. The term of the contract period shall be for three years beginning on August 1, 2006, and
ending on July 30,2009,or thereafter until a successor depository has been selected with an option
to extend the contract for two additional one-year periods if agreeable to both the Bank and the
Town.
K. Conflict of Interest. The Bank agrees that during the contract period that the Bank and any of its
associates and employees will have no interest nor acquire any interest, either direct or indirect,
which will conflict in any manner with the performance of the services called for under the final
contract.
L. Errors. Bank errors resulting in lost interest to the Town will be reimbursed by the Bank to the
Town at the amount that would have been earned had the error not occurred.
X. PROPOSAL INSTRUCTIONS/REQUIREMENTS
A. Sealed proposals clearly marked "Depository Proposal" shall be delivered to the office of the
following person by 2:00 p.m.,June 30,2006:
Debbie Piper
Town of Westlake
2650 JT Ottinger Road
Westlake, Texas 76262
ANY PROPOSAL RECEIVED AFTER 2:00 P.M. SHALL BE RETURNED UNOPENED.
B. The proposing Bank shall use this RFP form as the Official Proposal Form to submit rates and to
answer questions. Any alterations,changes or deletions to this RFP shall be grounds for the Town
to disregard and reject the RFP and the proposal.
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 re-advertise in order to serve the
best interest of the Town of Westlake.
E. The Proposer states that it is a banking institution chartered under laws of the United States or of the
State of Texas.
XI. MISCELLANEOUS
A. The final appointment of a depository Bank shall be made by the Town of Westlake Board of
Aldermen. The proposer may be required to enter into a contract that incorporates all of the
obligatory points in this RFP. Otherwise, an ordinance shall be adopted accepting the Bank's
completed RFP as the Official Proposal Form with accompanying related schedules and materials
called for in this RFP.
B. This Request for Proposal has been duly advertised.
C. Upon being awarded the contract,the depository Bank shall designate an individual to be the official
contact person for all correspondence. The Town of Westlake's official contact person is Debbie
Piper(817)490-5712. The Bank shall be responsible for training and communicating the terms of
this contract to Bank employees.
This proposal is submitted by the following person duly authorized to act on behalf of the Bank:
Officer's Name and Title(Please Print) _Mark L Jones,President&CEO
Officer's Signature B
Name of Bank _First Financial Bank,N.A.
Date /,,-'?, //
Address _3205 East Highway 114
City, State,Zip _Southlake,Texas 76092
Telephone Number 817-410-264-� a91 S
XII. SUBMISSION CHECKLIST
A. This RFP form.
B. Sample bank statement.
C. Sample partial account reconciliation statement.
D. Availability of funds schedule.
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E. Money Market Fund prospectus if applicable.
F. Sample monthly collateral report.
G. Sample safekeeping agreement for collateral.
H. Sample controlled disbursement agreement.
I. Sample wire agreement.
J. Sample stop payment agreement.
K. Sample account analysis statement.
L. Annual financial statement of the Bank for the past two years along with the last quarterly FDIC call
report.
M. A list of the Bank's officers.
N. A list of the Bank's directors.
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BANK BALANCES
January 2005 thru December 2005
Jan-05 519,893 836,371
Feb-05 850,219 1,028,884
Mar-05 872,625 1,237,279
Apr-05 580,470 1,163,532
May-05 748,478 1,421,324
Jun-05 671,303 1,008,028
Jul-05 849,740 1,444,331
Aug-05 636,090 1,118,296
Sep-06 598,930 939,596
Oct-05 599,157 880,761
Nov-05 797,350 1,172,105
Dec-05 597,291 878,018
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