09-E City Depository - Award Bid
DRAFT
fattomeylreswork\current\City Depository Res 2007
January 3, 2007
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS, AWARDING THE BID FOR CITY DEPOSITORY FOR THE PERIOD
BEGINNING MARCH 1, 2007 AND ENDING FEBRUARY 28, 2009;
AUTHORIZING THE EXECUTION OF A CONTRACT UPON THE TERMS AND
CONDITIONS SET OUT IN THE INSTITUTION'S BID; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, the City of Paris, Paris, Texas, did heretofore advertise for bids in accordance
with the laws of the State of Texas and the Charter of the City of Paris for a City Depository for the
period beginning March 1,2007, and ending February 28, 2009, which bids were received until 3:00
o'clock P.M., Tuesday, January 2, 2007; and,
WHEREAS, the best bid for City Depository was made by Liberty National Bank in Paris, and
it should be awarded the contract for such depository; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. That the bid of the Liberty National Bank in Paris to act as City Depository for the
period beginning March 1, 2007, and ending February 28, 2009, be, and the same is hereby, accepted.
Section 3. That the Mayor be, and he is hereby, authorized and directed to execute, on behalf
of the City of Paris, the contract with Liberty National Bank in Paris to act as City Depository for the
City of Paris upon the terms and conditions set out in that institution's bid, attached hereto as Exhibit
A.
Section 4. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 8th day of January, 2007.
Richard Manning, Mayor
ATTEST:
Janice Ellis, City Clerk
1-2-2007
MEMO
TO: CITY COUNCIL
FROM: GENE ANDERSON, FINANCE DIRECTOR
SUBJECT: DEPOSITORY BIDS
Bids were requested from area banks to serve as the City's depository bank for a two year
period beginning March 1, 2007. Attached is the bid list. Bids were received from three
banks. Also attached is a bid tabulation of those bids and copies of the bids themselves.
In my opinion, the bid from Liberty National Bank is the best bid and should be accepted.
EXHIBIT It
DEPOSITORY BID COMPARISON
January 2007
Certificates of Deposit Under $100,000:
Maturity Rate
Capital One Guaranty Liberty
7-13 days T-bill yield 10 0 10 basis points
14-29 days T -bill yield 10 0 30 basis points
30-59 days T-bill yield 10 0 40 basis points
60-89 days T-bill yield 10 0 45 basis points
90-179 days T -bill yield 20 0 50 basis points
180-365 days T -bill yield 20 0 55 basis points
Certificates of Deposit Over $100,000:
Maturity Rate
Capital One Guaranty Liberty
7-13 days T -bill yield 10 0 10 basis pOints
14-29 days T -bill yield 10 0 30 basis points
30-59 days T-bill yield 10 0 40 basis points
60-89 days T-bill yield 10 0 45 basis points
90-179 days T -bill yield 20 0 50 basis points
180-365 days T-bill yield 20 0 55 basis points
Demand Deposit Rate
o
-50
12 basis points over 13 week
T-bill discount rate
Capital One deviated from the bid form regarding the above rates and
provided a pricing grid regarding services and supplies provided to the City.
Guaranty Bond Bank did not sign their bid form. Requested services and
supplies were offered at no charge to the City.
Liberty Bank offered the requested services and supplies at no charge to
the City.
DEPOSITORY BID LIST
T eny Christian
People's National Bank
35 South Plaza
Paris, Texas 75460
tchristian(cV,p bparis. com
Tim Alexander
Bank of America
1161 Clarksville Street
Paris, Texas 75460
Tim. alexander(cV,bankofamerica. com
Ken Dority
Guaranty Bond Ban1e
3250 Lamar Avenue
Paris, Texas 75460
kdoritv(cV,gntv.com
Richard Amis
First Federal Community Bank
630 Clarksville Street
Paris, Texas 75460
damis@lst-Fed.com
Phillip Cecil
Liberty National Ban1e
305 Lamar Avenue
Paris, Texas 75460
pcecil@lnbparis.com
Rodney Bass
Capital One Bank
104 Bonham Street
Paris, Texas 75460
Rodney. bass@capitalonebank:.com
Michael Rhodes
Lamar National Bank
200 S. Collegiate Drive
Paris, Texas 75460
Rhodes(Q)lamarnati anal. com
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 1,2007 through February 28,2009. Any such application shall be delivered to the office
of the City Manager located in City Hall prior to 3:00 P. M., Tuesday January 2,2007.
It is required that each bank bid by filling in all blanks and agreeing to the following
specifications:
Bad\: _vill pay to City interest on time deposits in accordance with the following schedule:
CERTIFICATES OF DEPOSIT UNDER $100,000
MA TURITY
RATE
7-13 days
14-29 days
30-59 days
60-89 days
90-179 days
180-365 days
T-bill plus or ~ ~ basis points
T-bill plus or~s ~ basis points
T-bill plus or~ ~ basis points
T -bill plus or ~ ~ basis points
T-bill plus or~ ~ basis points
T -bill plus or min:'ls- ~ basis points
CERTIFICATES OF DEPOSIT OVER $100,000
7-13 days
14-29 days
30-59 clays
60-89 days
90-179 days
1 80- 365 days
T-bill plus or~ ~ basis points
T-bill plus or minJlf: ~ basis points
T -bill plus or ~ ~ basis points
T-bill plus or ~ ~ basis points
T-bill plus or 1lJ.inuEJ ~ basis points
T-bill plus or ~ ~ 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.
Certificate rates bid must be tied to the Treasury Bill rate effective at the time the certificate is to
be purchased. The Bill rate to be used will be the quoted yield in the Wall Street Journal for
Treasury Bills most closely approximating the maturity of the Certificate of Deposit to be
purchased. Certificate of Deposit rates should be quoted either plus or minus a given number of
basis points from the T-bill yield. The Wall Street Journal to be used yvill be the paper dated the
same day the certificate is purchased.
CHARGES
List any service charges that will be levied against the City:
NO CHARGES
In addition to tIll": llnrmal1 Qprvie.f':S ~nrl "llnnlies fllI"nisIle>rl h)1 the> de>pos1ton1 hal-IT tl,,,, 1"011,.."";",,.
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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
com 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
checking and savings accounts
overdraft protection
Bidders are requested to submit 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.
Bank will pay interest on City's Consolidated Cash Account at a rate equivalent to
the discount rate for I3-week Treasury bills plus 12 basis points. The rate will be
changed each calendar quarter and calculated using the most recent Treasury Bill auction.
Using the Treasury Bill auction of December 26. 2006. a rate of 5.00% would result.
Upon notification to Bank. City w?uld have the option to bring other City transaction
accounts under a rate plan paying the discount rate for I3-week Treasury bills.
Using the Treasury Bill auction of December 26. 2006. a rate of 4.88% would result.
Bank will originate City's ACH payments. both debits and credits without charge. Bank
will furnish to 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.
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 rej ect 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 lmv, from time to time throughout the term of the contract.
The undersigned bank official represents that he is authorized by the Barlie's Board of Directors
to sign this document and legally obligate the Bank to the terms stated in this agreement.
Liberty National Bank in Paris
BY:
/C.
~
Cecil
TITL : Chairman of the Board
Di'. TE: December 29. 2006
MATURITY
RATE
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 ofthe 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 1,2007 through February 28,2009. Any such application shall be delivered to the office
ofthe City Manager located in City Hall prior to 3:00 P. M., Tuesday January 2,2007.
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 UNDER $100,000
7-13 days
14-29 days
30-59 days
60-89 days
90-179 days
180-365 days
T -bill plus or minus ~ basis points
T-bill plus or minus ~ basis points
T -bill plus or minus ~ basis points
T -bill plus or minus ~ basis points
T -bill plus or minus ~ basis points
T-bill plus or minus ~ basis points
CERTIFICATES OF DEPOSIT OVER $100,000
7-13 days
14-29 days
30-59 days
60-89 days
90-179 days
180-365 days
T -bill plus or minus ~ basis points
T -bill plus or minus 0 basis points
T -bill plus or minus ~ basis points
T -bill plus or minus ~ basis points
T -bill plus or minus ~ basis points
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.
Certificate rates bid must be tied to the Treasury Bill rate effective at the time the certificate is to
be purchased. The Bill rate to be used will be the quoted yield in the Wall Street Journal for
Treasury Bills most closely approximating the maturity of the Certificate of Deposit to be
purchased. Certificate of Deposit rates should be quoted either plus or minus a given number of
basis points from the T-bill yield. The Wall Street Journal to be used will be the paper dated the
same day the certificate is purchased.
CHARGES
List 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
com wrappers
night depository service including bags and keys
traveler's and cashier's checks
daily balance on each account
mon~y orders
stop payment orders
. .
Wire services
checking and savings accounts
all bank accounts will be interest bearing accounts
on line banking
checking and savings accounts
overdraft protection
Origination of ACH payments, both debits and credits
Bidders are requested to submit 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.
All of the City's DDA (transaction accounts) will be classified as NOW accounts
bearing interest at the rate equivalent to the discount rate for the I3-week
Treasury Bill minus 50 basis points, adjusted weekly. Using the most recent
I3-week Treasury Bill, the current interest rate on this account would be 4.38%.
All monies which are deposited into the depository under the provisions of this proposal shall be
continuously secured, in accordance with the laws ofthe State of Texas applicable thereto, by a
valid pledge of par, exclusive of accrued interest, at all times at least equal to l02% of the
amount of money on deposit in said several funds on deposit in the depository.
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 ofthe 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 Bond Bank - Paris
BY:
Tanis Hager
TITLE: President
DATE: 1/2/07
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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 ofthe 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 1,2007 through February 28,2009. Any such application shall be delivered to the office
of the City Manager located in City Hall prior to 3:00 P. M., Tuesday January 2,2007.
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 UNDER $100,000
MATURITY
RATE
7-13 days T-bill plus or minus _10_ basis points
14-29 days T-bill plus or minus _10_ basis points
30-59 days T -bill plus or minus _10_ basis points
60-89 days T-bill plus or minus _10_ basis points
90-179 days T-bill plus or minus _20~ basis points
180-365 days T-bill plus or minus _20_ basis points
T -Bill rate will be the rate closest to maturity without going beyond maturity date
CERTIFICATES OF DEPOSIT OVER $100,000
7 -13 days T -bill plus or minus _10_ basis points
14-29 days T-bill plus or minus _10_ basis points
30-59 days T-bill plus or minus _10_ basis points
60-89 days T-bill plus or minus _10_ basis points
90-179 days T -bill plus or minus _20_ basis points
180-365 days T-bill plus or minus _20_ basis points
T -Bill rate will be the rate closest to maturity without going beyond maturity date
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.
Certificate rates bid must be tied to the Treasury Bill rate effective at the time the certificate is to
be purchased. The Bill rate to be used will be the quoted yield in the Wall Street Journal for
Treasury Bills most closely approximating the maturity of the Certificate of Deposit to be
purchased. Certificate of Deposit rates should be quoted either plus or minus a given number of
Capital One Confidential
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basis points from the T-bill yield. The Wall Street Journal to be used will be the paper dated the
same day the certificate is purchased.
CHARGES
List any service charges that will be levied against the City:
Service charges to the City's accounts will be based on the additional services
requested. We have attached a variety of services Capital One offers as
recommendations to assist the City of Paris.
SEE A TT ACHMENT A - Pricing Grid
In addition to the normal services and supplies furnished by the depository bank, the following
services are standard and cornmon to most depository contracts. They are to be furnished to the
City at no charge:
deposit slips
one large safe deposit box
com 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
checking and savings accounts
overdraft protection
SEE A TT ACHMENT A - Pricing Grid
Bidders are requested to submit any further concessions or services in the space provided below
which they may want to offer to the City of Paris and make any cornment as further consideration
in selecting the City=s depository.
Capital One offers many additional services not mentioned herein that the City of
Paris may find beneficial. Costs can be discussed as necessary. Some of these
Capital One Confidential
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additional services are as follow:
PUBLIC FUND NOW ACCOUNT -This is just like a checking account but it earns
interest. Interest is calculated and compounded daily on the collected balance and is
paid monthly. The Public Fund NOW rate we propose for your account is based on
Average 3 Month Treasury Bill Discount + 35 bps Adjusted/or Reserves and is subject
to change the first day of each month based on the Fed pricing at that time. (As of
12/19/2006, this would be a rate of 4.76%.) Public Fund NOW accounts are
collateralized with securities in accordance with the City of Paris' Investment Policy
and the State of Texas.
SEE ATTACHMENT II-Monthly earnings on combined collected balances
TowerNET is Capital One's online system that will allow the City to view accounts,
initiate transfers and stop payments. Sign-ons are assigned to individuals
designated by the City. A single sign-on and password is assigned to each user and
access must be assigned for each area. There are no special software requirements
to use TowerNET all you need is Internet Access. Services associated with
TowerNET are priced individually so that functions are tailored specifically for the
City. We invite you to view a demo at CapitalOne.com
SEE EXHIBIT A- TowerNET
TowerACH-In order to improve cash flow and efficiencies, ACH debit and credit
files may be issued as an alternative to sending & receiving wires. This function will
save the cost of a wire and can be initiated through TowerNET. Tower ACH will
also allow the City to initiate Direct Deposits for payroll.
SEE EXHIBIT B-TowerACH
ELECTRONIC DEBIT PROTECTION- This service will help you manage ACH
fraud risk, protecting your business from unauthorized ACH debits. Electronic
Debit Protection can either block all debits from posting to your accounts or
selectively authorize ACH debits only from your pre-approved business partners.
The unauthorized items are automatically returned, reducing your exposure to
unapproved or fraudulent ACH activity.
SEE EXHIBIT C-Electronic Debit Protection
POSITIVE PAY-As a part of this service, you will supply Capital One with issue
data as checks are issued. You will send this data file via TowerNET. You will also
have the ability to load manual check data via TowerNET (checks not included in
your issue files). Should a check be presented in one of our branches, but is not
indicated on our system as an issued check, we will not cash it. If an item is
presented as a result of a deposit at another bank, we will notify you via a Positive
Pay exception report on TowerNET. In addition, we have the ability to email your
staff when your exception report is available on TowerNET. These emails will
Capital One Confidential
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inform your staff if there are any exceptions. You will have between 12:00 Noon
and 3:00 PM the day after an item has been presented, to make a payment decision.
Online images of the exception checks are provided to assist with the decision-
making process. A default decision will be established in case your staff is unable to
monitor this report on any given day. This service includes Full Reconciliation
reports with an optional output data file which can be downloaded via TowerNET
and posted to your payables system. The city currently utilizes these services on
some of their accounts.
SEE EXHIBIT D-Positive Pay
SEE EXHIBIT E-Account Reconciliation
CORPORATE CARD - With Capital One's MasterCard Corporate Card your
employees will have the convenience and safety of a MasterCard @ credit card
program for business purchases and travel, while you have the power to monitor
company spending and control cash flow. This will eliminate company cash
advances, purchase orders, and check writing. Payments are due 25 business days
after cycle, which gives you the ability to take advantage of potential trade discounts
without tying up your cash. With Capital One's Corporate Card Connect feature,
you can also manage your credit card program online and in real time! Detailed
expense reporting plus online, real-time access to account and cardholder
information allows you to track activity and monitor spending quickly. You will set
individual spending limits and restrict spending in specific categories for each
individual's card. In addition, you will have the ability to increase and decrease
card limits and disable any card instantly online. In addition to Corporate Card
Connect, Capital One offers an on-line sophisticated expense management tool
called Smart Data Online (SDOL). SDOL provides 40 different expense
management reports that can be scheduled to run at your convenience. SDOL also
provides on-line expense reporting capabilities.
SEE EXHIBIT F -Corporate Card
SEE EXHIBIT G-Smart Data Online
REMOTE DEPOSIT - This service will allow the City to scan and truncate checks
from your office and electronically transmit deposits to the bank via a file of check
images and MICR data. With Remote Deposit, you get the convenience of making
deposits from your office up to an extended deposit cut-off time of 5 pm. Checks
can be kept at your office as well for an acceptable period of time.
SEE EXHIBIT H-Remote Deposit
Capital One Confidential
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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.
Noted and accepted.
SEE A TT ACHMENT III - Texas Security Agreement
SEE A TT ACHMNET IV - Federal Pledgee Agreement
SEE ATTACHMENT V - Pledged Security Report (furnished monthly to the city)
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.
Noted and accepted.
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
BY:
Tan a Lamothe
TITLE:
DATE:
December 20, 2006
Capital One Confidential
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Service Charges
Monthly account maintenance fee
Monthly analysis statement fee
Debits posted
Credits posted
Return items
Incoming ACH debit/credit items
All items deposited
Cash deposited (per $100)
Coin furnished (per roll)
Currency furnished (per $1000)
Outgoing wire transfers
Incoming wires
TowerNET balance reporting services (daily balance)
Stop payments
Manual
Tower NET
Negative Collected Charge
FDIC Insurance
Deposit Slips
One large safe deposit box
Coin Wrappers
Night depository service including bags and keys
Travelers checks
Cashiers Checks
Money orders
Checking & savings accounts
Online banking (TowerNET)
Overdraft protection
ATTACHMENT I
$12.00
$8.00
$0.16
$0.35
$4.00
$0.16
$0.10
$0.095
$0.08
$0.50
$15.00
$10.00
$0.00
$15.00
$10.00
$0.00
$.0147 per P + 3.0%
$0.00
$0.00.
$0.00
$0.00
$0.00
N/A
$0.00
$0.00
$0.00
Please note, Capital One does not have an established daylight overdraft policy. If this becomes
an issue, we will establish an overdraft line of credit. As a rule, this is not a challenge with
Public Fund entities and we will handle as itmes presenting for payment causing an overdraft will
be paid at no charge and the City will be notified of the account overdraft.
Additional products and services are available upon request. We will review pricing of those items
at that time. The costs listed here include items requested and costs associated with products
specifically requested.
Capital One Confidential