07-G City DepositoryDRAFT
F:~Attorney\Lisa~esolutions\CURRENT\City Depository 2002.wpd
December 6, 2002
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, 2003 AND ENDING FEBRUARY 28, 2005;
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 Council of 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, 2003, and ending February 28, 2005, which bids were
received until 3:00 o'clock P.M., Tuesday, January 7, 2003; 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, 2003, and ending February 28, 2005, 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 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 13th day of January, 2003.
Michael J. Pfiester, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
MEMO
TO: MICHAEL E. MALONE, CITY MANAGER
FROM: GENE ANDERSON
SUBJECT: BANK DEPOSITORY BIDS
Bids were received from Liberty National Bank and Hibemia National Bank. I have prepared a
summary of the bids to make their comparison more straight forward. Also attached is a copy of
each bid. In my opinion, the bid from Liberty National Bank is the better offer, and I recommend
that the City Council award the bid to them. Please contact me if you have any questions.
BANK DEPOSITORY BiD COMPARISON
Certificates of Deposit Under $100,000
Liberty Hibernia
7-13 Days T-Bill Plus 70 15 Basis Points
14-29 Days 70 15
30-59 Days 70 15
60-89 Days 70 15
90-179 Days 85 15
180-365 Days 100 15
Certificates of Deposit Over $100,000
7-13 Days T-Bill Plus 85 25 Basis Points
14-29 Days 85 25
30-59 Days 85 25
60-89 Days 85 25
90-179 Days 100 25
180-365 Days 115 25
Interest on checking 55 31 Basis Points over 13 week treasury bill discount rate
Charges
triplicate deposit slips none at cost
bond & coupon services none none
parking facilities none none
safe deposit box none none
coin wrappers none none
night depository service none none
traveler/cashier checks none none
daily account balance(T.Net) none $50 month
money orders none none
monthly service fee none none
debits posted none $0.16
credits posted none $0.35
return items none $3.50
incoming ACH debit/credit none $0.16
all items deposited none $0.08
cash deposited per $100 none $0.01
coin furnished per roll none $0.08
currency furnished per $1000 none $0.50
Tower ACH maintenance na $50.00
ACH credit/debit origination none $0.16
wire transfers out $10.00 $15.00
wire transfers in $2.00 $10.00
wire transfer notifications none $3.00
electronic data info-optional na $25.00 month
serial sort-optional na $0.05
positive pay-month na $50.00
positive pay-per item na $0.04
stop payments-manual none $28.00
stop payments-terminal na $15.00
Hibernia offers to use the service charge method for calculating service charges with the first $1000 in fees waived.
NOTICE TO BANKING INSTITUTIONS WITHIN THE CITY OF PARIS
Notice is hereby given that Governing Body of the City of Pads, subject to the provision of,
Article 105, Revised Civil Statutes of Texas, as amended, 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,
2003 through February 28, 2005. Any such application shall be delivered to the office of the City
Manager located in City Hall prior to 3:00 P. M., January 7, 2003.
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 70 basis points
14-29 days T-bill plus or m~nus 70 basis points
30-59 days T-bill plus or m~nus 70 ~basis points
60-89 days T-bill plus or m~nus 70 basis points
90-179 days T-bill plus or m~nus 85 basis points
180-365 days T-bill plus or m~nus i0o basis points
CERTIFICATES OF DEPOSIT OVER $100,000
7-13 days T-bill plus or minus 85 basis points
14-29 days T-bill plus or minus 85 basis points
30-59 days T-bill plus or minus 85 basis points
60-89 days T-bill plus or minus 85 basis pmnts
90-179 days T-bill plus or minus 100 basis pmnts
180-365 days T-bill plus or minus 115 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.
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 Bills
most closely approximating the maturity of the Certificate of Deposit to be purchased. Bonds
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:
triplicate form deposit slips
bond and coupon services
parking facilities
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
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 del~ository.
Bank will pay interest on City's Consolidated Cash Account at a rate equivalent to the
discount rate for 13-week Treasury Bills plus 55 basis points. This rate will be
changed each calendar quarter and calculated using the most recent Treasury Bill Auction
Using the most recent treasury bill auction today would result in an interest rate of 1.73%
for this account.
City would have the option to bring other interest bearing transaction accounts under this
rate plan.
Bank will originate City's ACH payments, both debits and credits without charge.
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 the total 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 hive
elapsed. Funds fxom Bond sales may be deposited in the City depository or placed in outside
investments.
The City of Paris reserves the fight 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 Liberty National Bank in Paris
NAME O~ ~,
BY: / ~ C_~ .~_~
TITLE:Zairman
DATE: January 7, 2003
January 6, 2003
Ms. MaRie Cunningham
City Clerk, City of Paris
City Hall
Paris, Texas
Re: Depository Services
Dear Ms. Cunningham:
Thank you for the opportunity extended to Hibernia National Bank to bid on the depository
services for the City of Paris for the period of March 1, 2003 through February 28, 2005.
If you should have any questions please do not hesitate to call me at 737-5504. We look
forward to being of service to the City in meeting its financial goals.
Sincerely,
y ass,
City President-Paris/Pittsburg
RB: de
HIBERNIA NATIONAL BANK · POST OFFICE BOX 9779 ° PARIS, TEXAS 75461 · 903-737-5500
NOTICE OF BANKING INSTITUTIONS WITHIN THE CITY OF PARIS
Notice is hereby given that Governing Body of the City of Paris, subject to the provision of
Article 105, Revised Civil Statutes of Texas, as amended, 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 )eriod of two years from March 1,
2003 through February 28, 2005. Any such application shall be delivered to the office of the City
Manager in City Hall prior to 3:00 P.M., January 7, 2003.
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 $100,000.00 HNB Certificates
of Deposit on 360
Maturity RATE day basis. Yields
will be higher.
7-13 days T-Bill (Plus)B +1~5 Basic Points(+. 15%)
14-29 days T-Bill (Plus)(~ +15 Basic Points(+.15%)
30-59 days T-Bill (Plus)(~i +15 BasicPoints(+.15%)
60-89 days T-Bill (Plus)(~ +15 Basic Points(+. 15%)
90-179 days T-Bill (Plus)(~ +15 Basic Points(+.15%)
180-365days T-Bill (Plus)(~i +15 Basic Points(+. 15%)
Certificates of Deposit over $100,000.00
Maturity RATE
7-13 days T-Bill (Plus)(~) +25 Basic Points(+.25%)
14-29days T-Bill (Plus)(~) +25 Basic Points(+.25%)
30-59days T-Bill (Plus)(~) +25. Basic Points(+.25%)
60-89days T-Bill (Plus)~) +2>~ Basic Points(+.25%)
90-179days T-Bill (Plus)(~) +2> Basic Points(+.25%)
180-365days T-Bill (Plus)(~ +25 Basic Points(+.25%)
All investment services offered to other bank customers will be available to the City.
The City will accept bids only on the basis herein at~er described.
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 Bills
most closely approximating the maturity of the Certificate of Deposit to be purchased. Bonds
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. See Exhibit "A"
In addition to the normal service and supplies furnished by the depository bank, the following
services are standard and common to most depository contracts. The following services are to
be furnished at no charge to the City of Paris:
Triplicate form Deposit Slips----At Bank Cost
Bond and Coupon Service (Collection and Safekeeping Services only)
Parking Facilities (While Engaging in Banking Services)
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 - Through our TowerNET service
Money Orders
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. Please see Exhibit "A" for INTEREST
RATE on interest bearing accounts and Exhibit "B" for additional services.
All monies which are deposited into the depository under the provision 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 the total amount of
money on deposit in said several funds on deposit in the depository.
All time deposits or Certificates of Deposit 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 oufside
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 any 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.
NAME OF BANK: HIBERNIA NATIONAL BANK
TITLE: CITY PRESIDENT
DATE: January 6, 2003
EXHIBIT "A"
Interest Rate on Interest Bearing Accounts and
Schedule of Fees for Public Fund Checking
for City of Paris, Texas
Interest Rate:
Hibernia National Bank will pay the City of Paris the Three Month Treasury Bill Discount rate
plus 3 1 basis points (+.31%) on a Public Fund NOW account. This rate is adjusted weekly with
the T-Bill auction (usually on Tuesday). The interest is accrued and compounded daily and
paid into the account monthly. All the City's account that are interest bearing can have this rate
with no limit on the number of accounts or limit on the number of checks that can be written
against the accounts.
Charges:
Monthly Service Fee ......................................................... No Charge
Debits Posted ...................................................................... $.16
Credits Posted ..................................................................... $ 0.35
Return Items ...................................................... $ 3.50
Incoming ACH Debit/Credit .............................................. $ 0.-16
All items deposited ............................................................. $ 0.08
Cash Deposited per $100 ................................................... $ 0.007
Coin Furnished (per roll) .................................................... $ 0.08
Currency Furnished (per $1,000) ........................................ $ 0.50
TowerACH Maintenance ...................................... $50.00
ACH Credit/Debit Origination ................................ $ 0.16
Outgoing Wire Transfers ........................................ $15.00
Incoming Wires .................................................. $10.00
Wire Transfer notifications ..................................... $ 9.00
Electronic Data Information -Optional(per month) ......... $25.00
Serial Sort-Optional .............................................. $ 0.05
Positive Pay:
Monthly Maintenance ....................................... $50.00
Per Item .......................................................... $ 0.04
TowerNet Balance Reporting Services ...................... $50.00
Stop Payments: Manual .......................................... $28.00
Terminal -TowerNET .....................$15.00
Service Charge Method for Regular Checking
Each month an earnings credit is calculated on the account and compared to the fees accrued on
the account. If the earnings credit is more than the accred fees, no service charge is assessed. If
the earnings credit is less than the accrued fees, the deficit is charged to the account. The
amount of the earning credit is determined by applying an earnings credit rate to the average
collected account balance for the month. The earnings credit rate is based on the average of the
90-Day Treasury Bill rate for the prior month. Accrued fees for the month include charges for
transaction activity and interest.
The City of Paris would also have the option to pay hard dollar fees for services and not maintain
a non-interest bearing account. In that case the actual cost of services rendered would be billed
or charges to your account for transaction activity only.
HIBERNIA NATIONAL BANK WILL WAIVE THE FIRST $1,000 IN SERVICES
CHARGES NOT COVERED BY COMPENSATING BALANCES.
EXHIBIT "B"
TowerACH is a gunds transfer service that allows you to originate paperless transactions
through the Automated Clearing House (ACH) network using a standard Web browser
(Microsoft Interact Explorer® or Netscape®) on your PC. By simply accessing Hibernia's
private, secured network called TowerNET sM, you have a single point of access for all of
your ACH needs:
· Direct Deposit (payroll, pension benefits, dividends, expense reimbursements, bonuses).
· Direct Payment of Consumer Debits and Credits-
Insurance premiums, utility bills, mortgage payments, subscriptions, member ship due,
loan payments, monthly pledges, rents/leases.
· Electronic Federal and state tax payments (comply with Federal and state mandates
for electronic tax payments).
· Vendor Payments (pay suppliers for goods and services plus provide additional
payment information).
With TowerACH you do not need any special knowledge o£trans£er formats or complicated
ACH codes. You simply enter familiar data such as employee/customer names and bank
account numbers, review the transaction totals and reports, then release files to the Bank. It's
that easy!
· Easy-to-use, point-and-click Windows interface.
· Stored databases for various types of ACH transactions.
· List windows organize your data for quick reference.
· Summary windows allow rapid dollar amount updates.
· Extensive security ensures that only the appropriate people enter and release transactions.
· Import data in a variety of file formats.
· Context-sensitive on-line help.
· On-line confirmation of batch processing status.
· Detailed transaction reports.
· Online ACH holiday calendar and notification of upcoming holidays.
· Fully integrated with Hibernia's electronic balance reporting service, TowerNET.
· Return notifications by mail, fax or PC
Information is in NACHA format with a 2 day prior to credit release by 4:00p.m.
Example:Deadline for a Friday Payroll would be Wednesday at 4:00 p.m.
Reversals and corrections can be sent prior to release and a file edit can be done. After
file release we cannot guarantee retrieval.
Dollar Limits are determined by need and credit approval. An annual audited financial
statement will be required.
Pre-Notification can be generated by you through TowerACH.
POSITIVE PAY delivers real-time, check fraud detection at the teller line! You provide us with your
check issuance information (check serial numbers and dollar amounts) then we match it against checks
presented for payment. Any discrepancies between the checks presented for payment and the checks
listed on your check issue file are identified and delivered to you electronically for a pay or return
decision. While many banks offer partially functional Positive Pay protection that can only detect check
exceptions when they are presented through a check collection system, Hibernia provides a total
solution that also detects fraudulent checks as they are presented at Hibernia's teller windows. Your
losses are minimized by the inclusion of this crucial real-time checkpoint. Benefits:
· Reduces losses by preventing third-party check fraud.
· Detects fraud at the time of presentment providing real-time protection.
· Enhances check issuance control.
· Decrease fees when combined with partial or full reconciliation service.
The check issue information can be sent via TowerNet, FTP, ADP or mainframe transmission.
The check issue files must be sent each day that checks are issued and must be received by the
bank by 2:00 p.m. (CT) for next day processing.
TowerNET provides for transmittal of individual check information or deletes. These items are
processed at 8:00a.m., 10:30 a.m., 1:00 p.m. and 4:00p.m. The updated information goes out over
the Hibernia within the hour.
How is the Positive Pay Exception Report (i.e., list of paid without issue items, etc.) delivered to
the client and by what time?
An electronic report is delivered to the customer via TowerNET by 11:00 a.m. (CT) each business
day. The report will indicate "No exceptions today" if there are no exception checks for a particular
day.
How are pay/return decisions documented by the client and by what time are they required?
Pay/return decisions are indicated via TowerNET and returned to the Bank by 2:00 p.m. (CT). If
pay/return decisions are not received from the client by 2:00 p.m. (CT), the exception checks will be
handled, on that banking day, according to the default decision (pay or return) selected by the client
on their Positive Pay Service Addendum.
Will the client receive confirmation of the pay/return decisions they have indicated on
TowerNET?
Yes. The client will receive a receipt on TowerNET confirming their pay/return decisions.
What back-up will be used to deliver the Positive Pay Exception Report if TowerNET is not
available at the required time?
The Positive Pay Exception Report will be faxed to the client if TowerNET is not available at the
required time. The customer will indicate their pay/return decisions on the pages faxed and will fax
the information back to the ARP Department by 2:00p.m (CT).
Can the client obtain a copy of an item if they need a copy to determine the pay/return
decision?
Yes. The client must request these copies by 12:00 p.m. (CT). The copies will be faxed to the client.
What does a teller do when they are instructed by the teller system not to cash a check that is
presented at the teller line and drawn on a Positive Pay account?
The teller will inform the person cashing the check that there is a problem with the check and that
they must refer to the check issuer. ~
If checks are cut manually, describe the process to include those items in this service.
You would enter TowerNET system under the Positive Pay Tab and enter the serial number, dollar
amount and issue date of the check and click the send button.
Hibernia's Serial Sort Service sorts your checks in serial/check number order in the statement. In
general, customers use this service if they have 300 or more checks per month on an account. This
service is often used with the Partial Reconciliation Service.
TOWERNET
TowerNET is a browser-based, on-line, real-time, electronic balance reporting and transaction
initiation system offered by Hibernia to provide bank balances, activity reports, and other financial
information to our corporate customers. Information on all of your bank accounts, accounts at
Hibernia as well as at your other banks, can be reported to you daily using TowerNET.
TowerNET is accessed at your convenience by using a browser software on your PC. A unique
series of access codes and passwords are established to identify authorized individuals and his or her
system capabilities - guaranteeing complete confidentiality of information. Once access has been
granted, the user selects the appropriate function from a graphical interface with point-and-click
simplicity.
Each morning by 7:00 a.m., you can retrieve timely information to assist in monitoring and
managing your daily cash position. With account information available early each morning, your
investment opportunities can be maximized.
The following features/options are available through TowerNET:
· checking balance information (summary and/or detail)
· check inquiry
· placement of stop payments
· check photocopy request
· daily and monthly cycle statements (on-line)
· initiate account transfers ("book transfers")
· initiate repetitive and/or "free-form" wire transfers
· view incoming wire transfers as received
· view translation of ACH- EDI payments received
TowerNET offers the following benefits to the City of Paris:
1. Accuracy - Your balance and activity amounts are edited and reported in a concise format,
with less manual handling of the data.
2. Confidentiality - Only your authorized personnel with proper identification will have access
to the proprietary files.
3. Control - Daily information allows close monitoring of your cash position to maximize
investment opportunities. This also enhances your ability to forecast your cash position.
4. Enhancement - We have a product development staff who will expand and update the
system as the state of the art advances. Such as Web-Based ACH processing which is
currently being implemented.
5. Flexibility - You establish the time, frequency, and mode of reporting for your banks and the
information specification you require.
6. Savings - All accounts are monitored in a single concentration of data, standard formats
reduce handling cost; costly long distance or WATS phone charges to your banks are
eliminated; and lengthy misplacement of funds is avoided.
7. Simplicity - You have access to the system with a local telephone call and a few entries on
your computer terminal. The system has a graphical interface that will provide point-and-
click access to all available functions.
PRICING
TOWERNET $50.00 MONTttLY MAINTENANCE