PROPOSAL FOR DEPOSITORY SERVICES FOR IRAAN-SHEFFIELD ISD Page 24 of 28
PROPOSAL FORM
FOR
DEPOSITORY SERVICES BY
IRAAN-SHEFFIELD INDEPENDENT SCHOOL DISTRICT
This proposal is due to Michael Meek, Business Manager, Iraan-Sheffield ISD, PO Box 486, Iraan, TX 79744 by 11:00 am, on Friday, March 24, 2017.
All questions in this form should be answered and provided to the District as the Depository’s proposal.
The District reserves the right to reject any and/or all proposals and if any portion or provision of this proposal and/or any contract between Depository and District entered into is invalid, the remainder at the option of the District shall remain in full force and effect and not be affected.
BANK COMPENSATION
Does the District have the option to pay for Depository services by targeted balances or by fees?
_____ Targeted Balances
_____ Fees
_____ Other (Explain) ______
______
______
Please describe any differences in related costs to the District with either option.
If the District chooses one option for the life of the contract, is there a difference in service fees?
Target Balance Compensation Basis:
The District may choose to pay for Depository services on a compensating balance basis, maintaining a targeted amount of its funds in the Depository. The District will maintain balances in the checking accounts to compensate the Depository in full or in part for services provided. Earnings credit for these balances shall be reflected on the monthly account analysis provided to the District.
Any excess collected balance may be invested daily by the Bank as directed by the District, in a District approved overnight investment, an interest bearing account, or an SEC registered money market mutual fund. The overnight investment and any index upon which the rate will be based should be listed below.
The monthly average at the Depository for November, 2010 was:
ECR Rate: ______%
Interest Bearing Accounts: ______%
Money Market Accounts: ______%
Sweep Accounts: ______%
The monthly average at the Depository for December, 2010 was:
ECR Rate: ______%
Interest Bearing Accounts: ______%
Money Market Accounts: ______%
Sweep Accounts: ______%
The monthly average at the Depository for January, 2011 was:
ECR Rate: ______%
Interest Bearing Accounts: ______%
Money Market Accounts: ______%
Sweep Accounts: ______%
Stipulate the index calculation basis for each of the above in the space below (such as the T-Bill auction rate). Unless the submitter proposes all services shall be at no cost, do not skip this section or answer with such terms as "confidential internal calculation" or any other answer which does not allow comparison with other proposers.
How is:
ERC Rated Calculated?
Interest on Interest Bearing Accounts Calculated?
Interest on Money Market Accounts calculated?
Interest on Sweep Accounts Calculated
Fee Basis Compensation:
The District may choose to pay for Depository services on a straight fee basis in which no targeted balance will be maintained by the District. Fees will be assessed and paid in accordance with the Depository’s proposed fees as listed on Attachment A.
DISTRICT INVESTMENTS
The District reserves the right to purchase, sell and invest its funds and funds under its control, including bond funds, as authorized by the Government Code, Chapter 2256, Public Funds Investment Act, and in compliance with the District’s Investment Policy, a copy of which is attached as Attachment C and can also be accessed from the District web site at:
http://www.tasb.org/policy/pol/private/186903/pol.cfm?DisplayPage=CDA(LEGAL).pdf
http://www.tasb.org/policy/pol/private/186903/pol.cfm?DisplayPage=CDA(LOCAL).pdf
The District may choose to invest in time deposits at the Depository. The Depository will pay interest on funds of the District placed in time deposits with maturities chosen by the District. The interest rate spread on such deposits should be indicated as above, below or equal to the "asked" yield on the comparable maturity T-Bill of the proposed time deposit being purchased as reported in an independent, financial source.
(A) WHEN THE FED FUNDS RATE (anytime within four days before a CD is purchaseD) IS Three-PERCENT OR LESS (0% to <3%) the depository proposes to pay the following interest on time deposits purchased:
Single Maturity Time Deposits of more than $100,000:
MATURITY of Investment Basis point spread over (+)/under (-)
T-Bill "asked" yield
7 -- 29 Days
30 -- 59 Days
60 -- 89 Days
90 -- 179 Days
180 -- 364 Days
365 Days or More
(B) WHEN THE FED FUNDS RATE (anytime within four days before a CD is purchaseD) IS Three-PERCENT or greater (3% or >) the depository proposes to pay the following interest on time deposits purchased:
Single Maturity Time Deposits of more than $100,000:
MATURITY of Investment Basis point spread over (+)/under (-)
T-Bill "asked" yield
7 -- 29 Days
30 -- 59 Days
60 -- 89 Days
90 -- 179 Days
180 -- 364 Days
365 Days or More
COLLATERALIZATION
The Depository must provide either corporate surety bonds or pledged securities as per Texas Education Code §45.201. Please specify below which method the Depository will use for collateralization of District funds.
______Collateral (Check if this will be an option)
Pledged Securities: The Board of Trustees may accept a deposit of approved securities. Approved securities are categorized and also restricted to those defined in Section 45.201(4) of the Texas Education Code and as provided for in the Government Code, Chapter 2257, Collateral for Public Funds. Please note that Section 2257.022(b) states that the total value of eligible security described by Section 45.201(4) (D), Education Code, must be in an amount not less than 110 percent of the amount of the deposit as determined under 2257.022(a). The amount pledged shall be in a total market value sufficient to adequately protect the funds of the District as directed at anytime by the Board of Trustees of the District in accordance with standards acceptable to the Texas Education Agency. All funds, less applicable Federal Deposit Insurance and any surety bond coverage, must be secured by the end of the banking day on which the funds were credited. The depository is required to file with the district safekeeping or trust receipts for each security pledged against the district’s funds. Such receipts must show the school district as pledgee and must clearly indicate the third party holder of the security, the name of the depository, the receipt number, description, maturity date, par value or market value of the security if it reduces in principal.
_____ Surety Bond acceptable to the Texas Education Agency and to the District.
(Check if this will be an option)
Surety Bond: Section 45.208(a) states, “the bank or banks selected as school depository or depositories and the school district shall enter into a depository contract or contracts, bond or bonds, or other necessary instruments setting forth the duties and agreements pertaining to the depository, in a form and with the content prescribed by the State Board of Education.” Also, in accordance with Section 45.208(b), “the depository bank shall attach to the contract and file with the school district a bond in an initial amount equal to the estimated highest daily balance, determined by the board of trustees of the district, of all deposits that the school district will have in the depository during the term of the contract, less any applicable Federal Deposit Insurance Corporation insurance. The bond must be payable to the school district and must be signed by the depository bank and by some surety company authorized to do business in this state.” The school district must submit a completed and signed Texas School Depository Surety Bond Form to this Agency if the district elects to use a surety bond to secure its deposits. A copy of the depository contract and bond shall be filed with the agency, in accordance with Section 45.208(e) of the Code.
The estimated highest amount of bond needed is currently expected to be $4,000,000.
Collateral Conditions:
The Depository shall provide collateral equal to 102% of all District time and demand deposits plus accrued interest minus applicable FDIC coverage. Collateral will be pledged to the district and held in an independent safekeeping institution by a custodian or permitted institution as specified by the Public Funds Collateral Act (Texas Government Code, Chapter 2257).
The Depository will be liable for monitoring and maintaining the collateral and the required margin at all times and will provide original safekeeping notice and a monthly report of the collateral to include the security description, par amount, cusip, and market value, at a minimum.
The Depository and District shall execute a collateral agreement in accordance with FIRREA. A sample Collateral Agreement should be attached as Attachment D.
The District estimates its maximum anticipated collateral requirement to be $4,000,000 which when covered at 110% results in potential collateralization requirements of: $4,000,000 x 1.10 = $4,400,000.
Note: If voluntary collateral pooling is legislated during the period of this contract, the District may consider and agree to its use under this contract with mutual agreement of the Depository.
Will the proposed depository be able to provide acceptable collateral (as defined as acceptable investments within the District's investment policy) in the amount specified above necessary to cover 110% of potential deposits.
______YES
______NO
______Other amount proposed $______
Explain below if not "Yes" above:
______
______
______
______
Eligible Collateral
The District will accept only approved securities as specified by Texas Education Code §45.201 as pledged collateral and which is also specified as allowable investments in accordance with the Iraan-Sheffield ISD's Investment Policy as Attachment C.
BANKING SERVICES FEES
Based on the Depository services required by the District, the Depository shall complete the proposed fee schedule, Attachment A.
DEPOSITORY INFORMATION
Please answer the following questions concerning the Depository.
1. State full name and address of the Depository and any parent holding company. List all branch locations within the District’s boundary.
Full name of depository ______
Parent holding company if different than above ______
Depository website ______
Location A: Primary Location
Street Address ______City ______, Texas, Zip ______
Location Phone ______Fax______
Location Hours: ______
Contact Person (May or may not work at location) ______
Contact Phone: Direct ______Cell ______Home ______
email of Contact______
Location B: Branch Location (if applicable)
Street Address ______City ______, Texas, Zip ______
Location Phone ______Fax______
Location Hours: ______
Contact Person (May or may not work at location) ______
Contact Phone: Direct ______Cell ______Home ______
email of Contact______
Use additional sheets of paper and attach for other branch locations.
2. Provide the UPBR reference or annual audited financial statement for the most current fiscal year. This may be in printed form, but an electronic link to the web site(s) is preferable.
The electronic link is: ______
OR (Check if no link above) ______Printed annual financial statements are attached.
Members of Depository holding companies must include corporate annual financial statements and the individual Depository's call report for the most recent operating quarter.
What were total estimated deposits at JAN-1-2011: $______
3. State the Depository’s rating from an independent Depository rating agency or, if not available, the rating on the Depository’s senior and subordinate debt. Any change in this rating during the period of the contract must be communicated to the District in a reasonable period of time.
Rating:______
Rated by:______
4. Contact Information
To insure smooth contract implementation and continuation of services, a specific account executive and a back-up must be assigned to the District account to coordinate services and expedite the solution of any problem encountered.
a. Designate a Depository officer as a primary contact with the District.
Name
Title
Direct Telephone #
Cell Telephone #
Home Telephone #
Fax #
b. Designate a Depository representative as a backup contact with the District.
Name
Title
Direct Telephone #
Cell Telephone #
Home Telephone #
Fax #
c. In the event the primary and backup contacts aren’t available, what is the District’s procedure for an emergency contact?
After hours?
d. Describe in detail how the Depository handles problem resolution, customer service, day-to-day contact, and ongoing maintenance for governmental clients. Please be specific about exactly whom the District will be calling and working with for the above described situations:
5. Please list references from at least three of the Depository’s current, comparable governmental clients. Include the length of time under contract, a client contact, title, and telephone number.
______Check if applicable:
No reference required since the proposed depository is the current depository for Iraan-Sheffield ISD and is doing business with same name used when vendor was depository, but District may contact any business or government depositor for reference if desired by District.
Reference 1:
Reference 2:
Reference 3:
6. Based on the services required by the District, please provide a proposed timeline for implementation of the contract including the timeline activities and direct responsibilities of the District and the Depository during implementation. Realistically, because of collateral requirements, the latest the District could start working on any changeover would be August 1, 2011.
7. Provide a copy of all agreements (including those not directly referenced in this RFP) which will be required to be executed under the contract. DO NOT PLAN ON SUBMITTING additional documents to be signed which counteract this agreement after the Board has approved a proposal.
8. The Depository awarded the contract will be required to review the then-current District Investment Policy and certify in writing to that review in accordance with the Public Funds Investment Act certifying that the Depository has sufficient controls in place to avoid transactions not authorized by the Policy. The District has attached its investment policy to this RFP notice and has provided a link to the investment policy on the District’s web site.
9. A pre-award interview may be conducted on site at the Depository prior to contract award. Please provide the District with a contact name for arranging the pre-award interview.
Name
Title
Direct Telephone #
Cell Telephone #
Fax #
10. Is the Depository offering any transition or retention incentive to the District? If so, please describe in detail.
BANKING SERVICES