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10 - CITY DEPOSITORYItem No. 10 memorandum TO: City Council John Godwin, City Manager FROM: Gene Anderson, Finance Director SUBJECT: CITY DEPOSITORY DATE: January 9, 2017 BACKGROUND: Under Chapters 105 and 131 of the Local Government Code, the City of Paris may receive bids from financial institutions to serve as the depository and custodian of the City's funds. The City historically has operated under two year agreements. The current depository agreement expires February 28, 2017. In order to allow time for transition should the depository bank change, the City Council votes on this issue in January. STATUS OF ISSUE: The City advertised in the Paris News on November 20th and November 27th of 2016 that it would be receiving bids to serve as the City's depository bank for a two year period beginning March 1, 2017. In addition, email notification was sent to local banks who have expressed interest in this issue in the past. Liberty National Bank and Guaranty Bond and Trust submitted bids. Liberty's bid is the most favorable to the City. BUDGET: Not affected by this selection. RECOMMENDATION: Motion to select Liberty National Bank to serve as the City of Paris depository bank for the ensuing two year period. 1, : � ,-, rT7 NOTICE TO BANKING INSTITUTIONS WITHIN THE CITY OF PARIS Notice is hereby given that Governing Body of the City of Paris, subject to the provision of Chapters 105 and 131 of the Texas Local Government Code, will receive bids and applications from all interested banking institutions within the City of Paris to serve as prime depository of the City of Paris and maintain custody of the funds of the City for a period of two years from March 1, 2017 through February 28, 2019. Any such application shall be delivered to the office of the City Manager located in City Hall prior. to 3:00 P. M., Friday January 6, 2017, It is required that each bank bid by filling in all blanks` and agreeing to the following specifications: Bank will pay to City interest on time deposits in accordance with the following schedule: CERTIFICATES OF DEPOSIT OVER $100,000 � � � �� 7 -13 days plu T -bill As 'or minus 0 basis points 14 -29 days T -bill plus or minus 0 basis points 30 -59 days T-bill plus.orJVi='_2.5_ basis points 60 -89 days T -bill plus orb 35 basis points 90 -179 days T -bill Plus or , - basis points 180 -365 days T -bill plus or )WENS 55 basis points All investment services offered to other bank Customers will be available to the City, '['he Cit-V will accept bids only on the basis herein after described. Each day, the Wall Street Journal publishes the 26 week treasury-bill yield based on the results of the most recent treasury-bill auction. Rates for certificates of deposit under this contract must be tied to this 26 week treasury -bill yield. The rates should be quoted either plus or minus a given number of basis points from this 26 week treasury-bill yield. Using the Wall Street Journal dated the same day as the certificate of deposit is purchased, the certificate of deposit ratt will be the 26 week T -bill rate published that day in the Wall Street Journal plus or minus the basis points listed above. f� CERTIFICATES OF DEPOSIT UNDER $100,000 MA`['URITY RATE 7 -13 days 14 -29 days T -bill plus or minus 0 basis'points 30 -59 days T -bill plus or minus 0 T -bill plus or ttttbM 20 basis points basis points 60 -89 days 90 -179 days T -bill plus or titer 30 basis points 180.365 days T =bill plus or nfl 40 T -bill plus or rX 50 basis points basis points CERTIFICATES OF DEPOSIT OVER $100,000 � � � �� 7 -13 days plu T -bill As 'or minus 0 basis points 14 -29 days T -bill plus or minus 0 basis points 30 -59 days T-bill plus.orJVi='_2.5_ basis points 60 -89 days T -bill plus orb 35 basis points 90 -179 days T -bill Plus or , - basis points 180 -365 days T -bill plus or )WENS 55 basis points All investment services offered to other bank Customers will be available to the City, '['he Cit-V will accept bids only on the basis herein after described. Each day, the Wall Street Journal publishes the 26 week treasury-bill yield based on the results of the most recent treasury-bill auction. Rates for certificates of deposit under this contract must be tied to this 26 week treasury -bill yield. The rates should be quoted either plus or minus a given number of basis points from this 26 week treasury-bill yield. Using the Wall Street Journal dated the same day as the certificate of deposit is purchased, the certificate of deposit ratt will be the 26 week T -bill rate published that day in the Wall Street Journal plus or minus the basis points listed above. f� 1-1 ;QCry CHARGES List below any service charges that will be levied against the City: NONE In addition to the normal services and supplies furnished by the depository bank, the following services are standard and common to'`most depository contracts. They are to be furnished to the City at no charge: deposit slips one large safe deposit box coin wrappers night depository service including bags and keys traveler's and cashier's checks daily balance on each account money orders stop payment orders wire services checking and savings accounts �. all bank accounts will be interest bearing accounts on line banking overdraft protection Bidders are requested to submit a list of any further concessions or services in the space provided below which they may want to offer to the City of Paris and make any comment as further consideration in selecting the City's depository. If needed, please add additional pages. The bank will pay interest on the City's Consolidated Cash Account at a rate equivalent to the auction rate for 26 -week treasury bill plus 46 basis points. The rate will be changed each calendar quarter and will be calculated using the most recent treasury bill auction. Using the most recent treasury bill auction a rate of 1.09% would result. Upon notification to Bank, the City of Paris would have the option to bring other City transaction accounts under a rate plan paying the auction rate for 26 -week treasury bills plus 23 basis points. ' Using the most recent treasury bill auction a rate of .86% would result... Bank will originate City's ACH payments,_both debits and credits, without charge. Bank will furnish the City without charge at the end of each year cd's containing a summary of each transaction account activity. All monies which are deposited into the depository under the provisions of this proposal shall be continuously'secured, in accordance with the laws of the State of Texas applicable thereto, by a- valid pledge of par, exclusive of accrued interest, at all times at least equal to 102% of the amount of money on deposit in said several funds'on deposit in the depository, In addition, the depository agrees to meet the same security pledge far, "all funds on deposit by the Paris Economic Development Corporation. All time deposits or certificates of deposits 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 time deposits have elapsed. Funds from Bond sales may be deposited in the City depository or placed in outside investments. The City of Paris reserves the right to accept or reject any or all bids, to waive formalities, and to accept the bid the City considers the most advantageous. The City also reserves the right to place or invest part or all of its surplus or excess funds outside the designated depository, in any Manner permitted by law, from time to time throughout the term of the contract, The undersigned bank official represents that he is authorized by the Bank's Board of Directors to sign this document and legally obligate the Bank to the terms stated in this agreement. NAME OF BANK Liberty National Bank ter 1 BY: . R. Cecil TITLE: Chairman of the Board DATE: 1 IG -i o,ra,i+T/ NOTICE TO BANKING INSTITUTIONS WITHIN THE CITY OF PARIS Notice is hereby given that Governing Body of the City of Paris, subject to the provision of Chapters 105 and 131 of the Texas Local Government Code, will receive bids and applications from-all interested banking institutions within the City of Paris to serve as prime depository of the City of Paris and maintain custody of the funds of the City for a period of two years from March 1, 2017 through February 28, 2019. Any such application shall be delivered to the office of the City Manager located in City Hall prior to 3:00 P. M., Friday January 6, 2017. It is required that each bank bid by filling in all blanks and agreeing to the following specifications: Bank will pay to City interest on time deposits in accordance with the following schedule: See Attachment A (Rate Sheet) 14 -29 days T -bill plus or minus CERTIFICATES OF DEPOSIT UNDER a 100,000 MATURITY RATE basis points 7 -13 days T -bill plus or minus basis points 14 -29 days T -bill plus or minus basis points 30 -59 days T -bill plus or minus basis points 60-89 days T -bill plus or minus basis points 90 -179 days T -bill plus or minus basis points 180-365 days T -bill plus or minus basis points CERTIFICATES OF DEPOSIT OVER $100,000 7 -13 days T -bill plus or minus basis points 14 -29 days T -bill plus or minus basis points 30 -59 days T -bill plus or minus basis points 60 -89 days T -bill plus or minus basis points 90 -179 days T -bill plus or minus basis points 180 -365 days T -bill plus or minus basis points All investment services offered to other bank customers will be available to the City. The City will accept bids only on the basis herein after described. Each day, the Wall Street Journal publishes the 26 week treasury-bill yield based on the results of the most recent treasury-bill auction. Rates for certificates of deposit under this contract must be tied to this 26 week treasury-bill yield. The rates should be quoted either plus or minus a given number of basis points from this 26 week treasury-bill yield. Using the Wall Street Journal dated the same day as the certificate of deposit is purchased, the certificate of deposit rate will be the 26 week T -bill rate published that day in the Wall Street Journal plus or minus the basis points listed above. CHARGES List below any service charges that will be levied against the City: See Attachment B (Fee Schedule) In addition to the normal services and supplies furnished by the depository bank, the following services are standard and common to most depository contracts. They are to be furnished to the City at no charge: deposit slips one large safe deposit box coin wrappers night depository service including bags and keys traveler's and cashier's checks daily balance on each account money orders stop payment orders wire services checking and savings accounts all bank accounts will be interest bearing accounts on line banking overdraft protection L Bidders are requested to submit a list of any further concessions or services in the space provided below which they may want to offer to the City of Paris and make any comment as further consideration in selecting the City's depository. If needed, please add additional pages. See Business with a Capital G brochure All monies which are deposited into the depository under the provisions of this proposal shall be continuously secured, in accordance with the laws of the State of Texas applicable thereto, by a valid pledge of par, exclusive of accrued interest, at all times at least equal to 102% of the amount of money on deposit in said several funds on deposit in the depository. In addition, the depository agrees to meet the same security pledge for all funds on deposit by the Paris Economic Development Corporation. All time deposits or certificates of deposits 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 time deposits have elapsed. Funds from Bond sales may be deposited in the City depository or placed in outside investments. The City of Paris reserves the right to accept or reject any or all bids, to waive formalities, and to accept the bid the City considers the most advantageous. The City also reserves the right to place or invest part or all of its surplus or excess funds outside the designated depository, in any manner permitted by law, from time to time throughout the term of the contract. The undersigned bank official represents that he is authorized by the Bank's Board of Directors to sign this document and legally obligate the Bank to the terms stated in this agreement. NAME OF BANK Guaranty Bank & Trust IBy: jeif Nutt I TITLE: President -Paris DATE: January 6, 2017 Attachment A Rate Sheet Term Initial Rate Basis point spread over ( +) under ( -) T -Bill "asked" yield Floor Ceiling Maximum Aggregate Investment Interest Bearing Accounts: 0.40% 26 wk T -Bill - 0.25% 0.40% N/A Included Below Money Market Accounts: 0.45% 26 wk T -Bill - 0.20% 0.40% N/A Included Below CD 7 - 29 Days 0.35% 26 wk T -Bill - 0.30% 0.30% N/A Included Below CD 30 - 59 Days 0.35% 26 wk T -Bill - 0.30% 0.30% N/A Included Below CD 60 - 89 Days 0.40% 26 wk T -Bill - 0.25% 0.40% N/A Included Below CD 90 - 179 Days 0.45% 26 wk T -Bill - 0.20% 0.40% N/A Included Below CD 180 - 364 Days 0.55% 26 wk T -Bill - 0.10% 0.50% N/A Included Below CD 365 Days or more 0.75% 26 wk T -Bill + 0.10% 0.75% N/A Included Below $ 26,000,000 The 26 week Treasury Bill rate is 0.65% as of December 21, 2016. The above CD yields are applicable to all CD's owned by the district either under $100,000 or over $100,000. Bidder will pay to the Depository on all funds deposited with the Bidder the following rates of interest (must be indexed to the 26 -week Treasury Bill discount rate as published in the Wall Street Journal). These rates apply to accounts owned by the Depository. Custodial accounts with designated beneficiaries will not be eligible for the contracted rate(s)." * Additional investments may be made with prior approval. 0 u Attachment B Fee Schedule Monthly Account Maintenance Fees 0 Master Account Maintenance Fee Per account 0 ZBA Accounts Maintenance Fee Per account 0 Money Market Account Maintenance Fee Per account 0 Interest Bearing Accounts Maintenance Fee Per account 0 Non - interest Bearing Account Maint. Fee Per account 0 FDIC Assessment Per account 0 Negative Collected Balance Fee Per account 0 Sweep Account Fees Monthly Maintenance (Base) Fee* Per month 0 Master Account Per account 0 Swept Accounts Per account 0 Sweep Reporting Per account 0 On -Line Reporting Set up fee One Time 0 One Time Software Fee Required One Time 0 Monthly Maintenance Base Fee* Monthly 0 Cost per account Per account/overall 0 Cost per additional accounts Per account/overall 0 Balance Reporting Module Per account/overall 0 Additional Accounts Per account/overall 0 Daily Balance Reporting Per account/overall 0 Transactions Per item 0 Detail Daily Reporting Per account/overall 0 Previous day Reporting 0 Intra -day Reporting Per item 0 ACH Module Per account/overall 0 EDI Reporting Module Per account/overall 0 Reconciliation Module Per account/overall 0 Stop Pay Module Per account/overall 0 Sweep Module Per account/overall 0 Wire Transfer Module Per account/overall 0 Addenda Per item 0 Internal Transfer Module Per account/overall 0 Detail item fee all modules Per item 0 Addenda Received Per item 0 Deposits - Include and list branch fees if different Deposit Per item 0 Electronic Credits Posted ** 0 On -us Deposits Per item 0 Local City Clearing Per item 0 Local RCPC Per item 0 11th District City Per item 0 11th District RCPC Per item 0 In District Country Per item 0 Cash Deposits - Coin Rolls Per item 0 Currency Straps Per item 0 National FRB Per item 0 Commercial Check Cashing Per item 0 Debits Posted Per item 0 Deposit Corrections Per item 0 I I Attachment B Fee Schedule Encoding Charge Per item 0 Night Deposit charge Per item 0 Rejected items Per item 0 Return Items Per item 0 Advice Per item 0 NSF Paid Per item 0 Immediate Verification Per item 0 Checks Paid Checks and Other Debits Per item 0 Special Signature Requirement Per account 0 Special Signature Items Per item 0 Payroll Cards 0 Card origination 0 Credits 0 Notification 0 Transmission 0 Corrections 0 ACH Processing Set Up Fees One time 0 Monthly Maintenance Base Fee* Per Month 0 Origination of file Per file 0 Entries - Per item 0 Debits two day Per item 0 Credits two day Per item 0 ACH Return Items Per item 0 ACH Items - On -us Per item 0 Out of District Per item 0 Deletions or Reversal Charges Per item 0 Transmission - on disk or tae Per file 0 -via transmission Per file 0 Notification Per item /file 0 Returned Items Per item 0 Reclear Per item 0 Buybacks Per item 0 Telephone notification Per item 0 Alternative Address Per item 0 Positive Pa Monthly Maintenance Base Fee* Per month 0 Per item charge Per item 0 Notification Charges Per item 0 Reporting Per month 0 Image Per item 0 CD Image - Item Per item 0 Transmission Per item 0 Reconciliation Monthly Maintenance Base Fee* Per Month 0 Monthly Sort & List Maintenance Per month 0 Serial Sort and List Per item 0 l VT 0 Attachment B Fee Schedule Partial Recon Monthly Maintenance 0 Partial Recon without positive pay Per item 0 Partial Recon with positive pay Per item 0 Full Recon Monthly Maintenance 0 Full Recon•without positive pay Per item 0 Full Recon with positive pay Per item 0 Deposit Reconciliation - Partial Per item 0 Transmissions Per 0 Credits received Per item 0 Debits received Per item 0 Addenda Per item 0 Safekeeping Monthly Maintenance Base Fee* 0 Asset Maintenance Per item 0 Clearing Fees 0 FRB Per item 0 Safekeeping Fees 0 FRB Per item 0 Income Collection to DDA 0 Coupons Per item 0 Maturities Per item 0 Stop Pays Monthly Maintenance (Base) Fee* Per item 0 Automated Per item 0 Manual Per item 0 Confirmations Per item 0 Renewals Per item 0 Per Stop Payment $0.00 Wire Transfers Monthly Maintenance* Per month 0 Incoming - Domestic Per item $0.00 - International Per item $0.00 Outgoing - Domestic Per item $0.00 - International Per item $0.00 Inter - Account Transfers Transfer with PC Per item 0 Transfer with telephone Per item Overdraft Charges Charge or ca *(0 *0 Optical Imaging Software and Setup One time 0 Monthly Maintenance Base Fee* Per month 0 Per item Fee Per item 0 CD Charges First CD 0 Additional CD Additional CDs 0 Vault Services Vault Deposit Per item 0 Coin Per item 0 Attachment B Fee Schedule " As long as total collected balance of all District accounts is greater than $13,000,000 " Free through online banking., Fee may apply per paper statement provided by bank staff $1000 allowance to offset the cost of "Bank Supplies" Mixed Per item 0 Locked bag Per item 0 Strapped Per item 0 Change order Per item 0 Drop bag processing Per item 0 Lockbox Monthly Maintenance Per account 0 Processing Per item 0 Transmission Per item 0 Special Handling Per item 0 Collateral Restriction Fees (note basis) 0 Excess Collateral Fees (note basis) 0 Security Pledging and Releasing (note basis) 0 Bank Supplies Check Orders Per item Standard Deposit Ticket Books /Accessories Per item Rate Extra Statement Per item " (2) Cashier Checks Per item 0 " As long as total collected balance of all District accounts is greater than $13,000,000 " Free through online banking., Fee may apply per paper statement provided by bank staff $1000 allowance to offset the cost of "Bank Supplies"