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Ordinance No. 5,998910912 -16
ORDINANCE N0. 5998
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, SELECTING A CITY DEPOSITORY; AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AND ATTEST TO A CONTRACT
WITH THE SELECTED DEPOSITORY; AND PROVIDING FOR THE
EFFECTIVE DATE HEREOF.
WHEREAS, pursuant to the provisions of TEX.L.GOV'T.CODE ANN.
S 105.002, the City of Baytown is authorized to receive
applications for the custody of City funds from any banking
corporation, association, or individual banker doing business
within the City that may desire to be selected as depository of
the City; and
WHEREAS, notice that such applications would be received on
the 2nd day of September, 1991, was published pursuant to
TEX.L.GOV'T.CODE ANN. S 105.002, on the 19th and 26th day of
August, 1991, which is not less than one week nor more than four
weeks before such date and notice was personally given to each
banking corporation in the City of Baytown; and
WHEREAS, pursuant to TEX. L.GOV'T.CODE ANN. S 105.014, the
governing body is to select as depository the banking
corporation, association, or individual banker offering the most
favorable terms and conditions for the handling of the City's
funds; and
WHEREAS, the City of Baytown did receive applications from
banking corporation, associations, and /or individual bankers
doing business within the City to serve as the depository of the
City funds; and
WHEREAS, the City Council deems that Baytown State Bank has
offered the most favorable terms and conditions for the handling
of such funds; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council hereby finds that Baytown
State Bank has offered the most favorable terms and conditions
for the handling of the City's funds.
Section 2: That Baytown State Bank is selected as the
Depository of the City of Baytown, Texas, consistent with the
terms and provisions of its application.
Section 3: That the Mayor and City Clerk are hereby
authorized to execute and attest to a contract with Baytown State
Bank, said contract setting forth terms and conditions consistent
with the application that was submitted. The contract is attached
as Exhibit ffA," and made a part hereof.
910912 --16a
Section 4: This ordinance shall take effect from and after
its passage.
INTRODUCED, READ and PASSED by the affirmative vote of the
City Council of the City of Baytown, this the 12th day of
September, 1991.
MAR LG DO, 7or Pro Tempore
ATTEST:
EILEEN P. HALL, City Clerk
—d e "
'O.
p I, SR., y Attorney
C:1:72:1.7
BANKING SERVICES CONTRACT
CITY OF BAYTOWN
THE STATE OF TEXAS .
COUNTY OF HARRIS .
This Contract and agreement is made and entered unto by and
between the City of Baytown, a municipal corporation, hereinafter
sometimes referred to as "City," located in the County of Harris,
State of Texas, and Baytown State Bank, Harris County, Texas,
hereinafter called "Bank" or "Service Bank."
WITNESSETH:
WHEREAS, bids were received in response to an Invitation to
Bid for Banking Services for the City of Baytown; and
Whereas, Baytown State Bank was duly selected, qualified,
and designated as the Service Bank for the City, to serve in such
capacity for the term commencing on the 1st day of October, 1991,
and ending on the 30th day of September, 1993.
NOW THEREFORE, it is agreed by the parties hereto, as
follows:
1. That pursuant to the action taken by City on the 12th
day of September, 1991, Baytown State Bank is selected
and designated Service Bank for the period from the 1st
day of October, 1991, to the 30th day of September,
1993, and thereafter until the successor Service Bank
shall have been duly selected and qualified according to
law.
2. That in consideration of said election as Service Bank,
and the further consideration as stated in the "Bid
1
�
�
Form" attached hereto as exhibit "A" the said Service
Bank covenants and agrees to faithfully perform all of
the duties thereof, as provided by the laws of the State
of Texas and the United States and all regulations of
Commissions and Agencies established thereunder and will
safely keep and faithfully disperse all funds coming
into it as Service Bank, and faithfully pay over to the
successor, all funds remaining in the depository, and
does guarantee and indemnify City against all loss, cost
or expense, including a reasonable attorney's fee,
arising out of or related to the failure to perform
duties imposed by law or this Contract.
The term "funds" shall be considered to mean all cash,
securities and investments, sinking funds, trust funds,
and other funds or assets that may come into the
possession of said Bank.
3. The Bank states that it is a banking institution
chartered under the laws of the United States or of the
State of Texas.
4. The Bank shall operate the four City accounts as
follows:
(a) Concentration Account:
(1) All City receipts, except those for the
insurance account, will be deposited into this
account. The Bank shall transfer on a daily
basis an amount necessary to cover the checks
presented in the zero balance accounts. At
the end of each day the Bank will
2
automatically invest the collected cash
balance in the concentration account at the
"Overnight Investment Rate."
(2) The Bank shall give same day credit on
collectible funds the Bank receives before
2:00 P.M. The Bank shall credit the
concentration account in accordance with the
Bank's availability schedule (a copy of which
is attached to this contract as exhibit "B ").
(3) The Bank shall provide printed bank statements
for the concentration account on a monthly
basis within five business days from the end
of each month. The monthly statement shall
include return of all canceled checks, debit
and credit memos, and deposit tickets.
(4) The Bank shall automatically redeposit the
first time returned items of seventy -five
($75.00) dollars or less.
(5) The Bank shall wire funds out of the
concentration account to various vendors,
paying agents, and brokers upon telephone
instructions from authorized City personnel.
The Bank shall assign "personal identification
numbers " (PIN) to each City employee
authorized to initiate wire transfers. The
list of authorized employees will be provided
by the City Finance Director. The City will
3
notify a designated person at the Bank by
11:00 A.M. The Bank shall trace from origin to
destination all wire transfers ordered by
11:00 A.M. and not received by the destination
party by the close of business. if necessary,
the Bank shall make adjustments for any lost
interest or charges resulting from a "fail" to
consummate a transfer. All transfers shall be
made using the Federal Reserve System unless
otherwise instructed by the City.
(6) The Bank shall accept incoming wire transfer
of funds for sale of securities, interest
payments and receipts from various
governmental agencies. The funds from these
incoming wire transfers shall be "available
for investment"
either
by the City
or by the
Bank through
the
overnight
investment
agreement.
(7) The City will telephone the Bank as needed to
inquire about the ledger and collected balance
in the concentration account.
(b) Vendor Zero Balance Account:
(1) All vendor disbursements will be paid from
this zero balance account.
(2) The Bank shall provide the necessary check
stock for this account. Vendor checks shall
be two part (NCR Copy) continuous forms on
protective safety stock; all checks to be
4
prenumbered.
(3) The Bank shall provide printed bank statements
for the vendor zero balance account on a
monthly basis within five days business from
the end of each month. The monthly statement
will include return of all canceled checks,
debit and credit memos, and deposit tickets.
(4) The Bank shall return all paid checks to the
City with their respective bank statements and
these checks shall be fine sorted in ascending
numerical order.
(5) The Bank shall accept stop payment orders upon
telephone communication from authorized City
personnel (to be furnished by the Finance
Director). The City will provide written
confirmation of the telephone transaction and
the Bank shall provide confirmation of the
stop payment.
(c) Payroll Zero Balance Account
(1) All semi - monthly City payroll checks will be
paid from this account.
(2) The Bank shall provide the necessary check
stock for this account. Vendor checks shall
be one part continuous forms on protective
safety stock; all checks to be prenumbered.
5
(3) The Bank shall provide printed bank statements
for the payroll zero balance account on a
monthly basis within five business from the
end of each month. The monthly statement will
include return of all canceled checks, debit
and credit memos, and deposit tickets.
(4) The Bank shall return all paid checks to the
City with their respective bank statements and
these checks shall be fine sorted in ascending
numerical order.
(5) The Bank shall accept stop payment orders upon
telephone communication from authorized city
personnel. The City will provide written
confirmation of the telephone transaction and
the Bank shall provide confirmation of the
stop payment.
(d) Health Insurance Account
(1) All employee health insurance claims,
administrative fees, and stop loss insurance
premium disbursements will be paid from this
account.
(2) Check stock for this account will be provided
by the administrator of our self insurance
program.
(3) The Bank shall provide printed bank statements
for the health insurance account on a monthly
R
basis within five business from the end of
each month. The monthly statement will
include return of all canceled checks, debit
and credit memos, and deposit tickets.
(4) The Bank shall return all paid checks to the
City with their respective bank statements and
these checks shall be fine sorted in ascending
numerical order.
(5) The Bank shall accept stop payment orders upon
telephone communication from authorized City
personnel. The City will provide written
confirmation of the telephone transaction and
the Bank shall provide confirmation of the
stop payment.
5. The Bank shall provide the following investment
services:
(a) The Bank shall safekeep all securities purchased by
the City (U.S. Treasury Bills and Notes). The Bank
shall issue and deliver to the City a safekeeping
receipt within two business days after receipt of
the securities.
(b) The City will be bidding its surplus funds for
investments in various bank certificates of
deposits and the Bank shall handle the third -party
safekeeping of pledged collateral. The Bank shall
safekeep all collateral pledged to the City by
6
local banks to cover the City's deposits in these
banks via certificates of deposit. The Bank shall
price this collateral to market on a quarterly
basis and furnish the City a report within fourteen
(14) business days following the end of each
quarter showing the following information:
(1) The bank pledging the collateral.
(2) The security pledged (face amount,
issuer, coupon, maturity date)
(3) The market value of the pledged security.
(c) The Bank shall credit the concentration account
with earnings at the "Overnight Investment Rate"
for all collected funds remaining in the
concentration account at the end of each day. The
Bank shall credit the health insurance account with
earnings at the "Overnight Investment Rate" for all
collected funds remaining in the health insurance
account at the end of each day. Interest at the
"Overnight Investment Rate" may be credited
monthly.
6. The Bank shall perform all necessary procedures for the
City's E -Bond Issuance Program. The City will furnish a
list of employees and amount deducted along with a check
and the Bank shall administer the program.
7. The Bank shall provide a monthly account analysis for
each account to the City within fifteen (15) day of the
end of the month. The account analysis must show at a
minimum the following information:
0
(a) Account number.
(b) Period covered.
(c) Average ledger balance.
(d) Average collection balance.
(e) Service rendered (including type of service and
quantity).
(f) Per unit cost of each service.
(g) Total cost per service.
(h) Total cost of all services rendered.
8. The Bank shall debit the concentration account for
services rendered for all accounts, except those
services rendered for the health insurance account. The
Bank shall debit the health insurance account for all
services rendered for the health insurance account. The
service cost to be deducted shall be taken directly from
the required monthly analysis.
01
IN WITNESS WHEREOF, witness the signature of the President
of Baytown State Bank as attested to by its Secretary, and the
Mayor of the City of Baytown as attested to by its City Clerk, in
duplicate, on this, the 12th day of September, 1991.
ATTEST:
Secretary
ATTEST:
EILEEN P. HALL, City Clerk
10
Baytown State Bank
By
President
CITY OF BAYTOWN
By
EMMETT 0. HUTTO, Mayor
EXHIBIT A
CITY OF BAYTOWN, TEXAS
BID FOR BANKING SERVICES
BID FORM
BAYTQ F N STATE BANK
P. 0. GIOX 7351
BAY PEA STATION
BAYTOWN, TEXAS 77520
ITEM (A)
CONCENTRATION ACCOUNT
1. Deposits Credited
2. Items Deposited Unencoded
3. Returned Items
4. incoming Wires
5. Outgoing Wires
6. Night Depository Bags
7. Account Inquiry
S. Account Maintenance
9. Cost of Deposit Slip Stock
TOTAL FOR ITEM (A)
ITEM - ( B)..
VENDOR ZERO BALANCE ACCOUNT
1. Checks Paid
2. Cost of Check Stock
3. Check Sorting
4. Stop Payments
5. Account Maintenance
6. Zero Balance Transactions
TOTAL FOR ITEM (B)
12
ESTIMATED
ANNUAL PER UNIT ANNUAL
COS COST
2,880
170,040
480
36
60
55
12
12
2,880
.20 576.00
.05 8,502.00
16i � �'
15.00
15.00
2.00
20.00
360.00
900.00
1 J f• l U
1.2,544.10
12,000
.15
1,800.00
12,000
108.00/M
1,296.00
12,000
.05
600.00
12
15.00
180.00
12
20.00
240.00
300
2.50
750.00
Initials
4,856.00
q9
ESTIMATED
ANNUAL PER UNIT ANNUAL
QUANTITY- -COST- ---COST-
ITEM- f C )C )
PAYROLL ZERO BALANCE ACCOUNT
1.
Checks Paid
15,600
.15
2,340.00
2.
Cost of Check Stock
15,600
60.00 /M
936.00
3.
Check Sorting
15,600
.05
780.00
4.
Stop Payments
12
15.00
180.00
5.
Account Maintenance
12
20.00
240.00
6.
Zero Balance Transactions
300
2.50
750.00
7.
TOTAL FOR ITEM (C)
10
2.00
5,226.00
ITEM (0)
HEALTH INSURANCE ACCOUNT
1.
Checks Paid
4,020
.15
603.00
2.
Check Sorting
15,600
.05
780.00
3.
Stop Payments
12
15.00
180.00
4.
Account Maintenance
12
20.00
240.00
5.
Deposits Credited
60
.20
12.00
6.
Items Deposited Unencoded
1,240
.05
60.00
7.
Returned Items
10
2.00
20.00
8.
outgoing Wires
24
15.00
360.00
TOTAL FOR ITEM (D)
2,255.00
Initials 0
13
ESTIMATED
ANNUAL PER UNIT ANNUAL
QUANTITY- COST COST,
ITEM, (E)
INVES'T'MENT SERVICES
i. Securities Safekeeping
Approximately: T -Notes
$10,000,000
T -Bills
$45,000,000
a. Cost Per Receipt
130
25.00
3,250.00
b. Collection Charge for
Interest Payments
32
2.50
80.00
C. Annual Maintenance
Fees:
1. Per Receipt
20
42.00
840.00
2. Per $10,000 of
Treasuries 12
-0-
-0-
d. Other Charges:
Account Maintenance
12
20.00
240.00
2. Collateral Safekeeping:
Approximately: $5,000,000
at market value of governments,
agencies, municipals
a. Cost per Receipt 10 25.00 250.00
b. Annual Maintenance Fee
(Per $10,000) 5 42.00 210.00
c. Other Charges:
Account Maintenance Fee 12 20.00 :40.00
3. Quarterly Collateral Pricing
Report - per issue, per year.
14
10 AVG. 17.00 170.00
Initials
ESTIMATED
ANNUAL PER UNIT ANNUAL
QUANTITY! COST COST
4. Charges for the Overnight
Investment of Excess Funds
a. Assumed Federal
Funds Rate 5.75
b. Percentage of Federal
Funds Rate Bid 65.78%
c. overnight Investment
Rate (a X b) 3.78%
d. Per Unit Cost
(a - c) 1.97%
TOTAL ITEM (E) 5,280.00
OTHER SERVICES
1. Monthly E -Bond Issuance 36 2.50 90.00
2. Other Charges: 0.18975 /Month
FDIC Assessment (Will always be Actual Per 1,000 Ledger/
FDIC Assessment Rate. 0.18975 is Current Rate) Est. 1,500,000Avge Bal 3,415.50
Baytown State Bank will offer any service,
now in effect, or developed in the future,
that is not listed above, to the City of
Baytown, under terms which are mutually
agreeable.
TOTAL FOR ITEM (F) 3,505.50
TOTAL ANNUAL COST (SUM OF ITEMS (A) (B) (C) (D) (E) (F))33,676.60
Initials
15
FINANCIAL DATA
In order to establish the financial strength of the depository
institution, provide the following ratios. Please include a copy
of the Bank's Consolidated Reports of Condition (Call Report).
As of
6- 30 -91.
LIQUIDITY:
1.
Bank loans to deposits.
33.20%
2.
Loans to assets minus
plant and
3.
Nonperforming loans to total loans.
equipment.
PROFITABILITY:
30.97%
3.
Cash and equivalents
to total assets.
23.90%
4.
Percentage of assets
maturing in one
year.
Capital to deposits.
58.06%
5.
Cash and equivalents
to deposits
26.12%
ASSET QUALITY:
1.
Current loan losses to total loans.
0.54%
2.
Loan loss reserves to total loans.
1.03%
3.
Nonperforming loans to total loans.
0.06%
PROFITABILITY:
1.
Return on earning assets.
1.16%
2.
Return on equity.
12.72%
STRENGTH:
1.
Capital to deposits.
8.77%
2.
Capital to loans.
26.41
3.
Capital to assets.
8.02%
i$ANAGEMENT :
1. Net charge -offs to loans. 0.43%
2. Income before security transactions
to loans. 3.36,
Initials `U
16
BID SUB BY •
NAME (Printed) : E. Reginald Brewer
TITLE: President and Chief Executive Officer
ADDRESS:
SIGNATURE
PHONE: 713/427 -5841
PERSON DESIGNATED AS CITY LIAISON:
NAME: Reagan Cartwright, Jr.
TITLE: Vice President and Cashier
NOTE: Attach a copy of availability schedule.
17
6TQQ ER's CER7lF1CA7TQN
7h 1985 Texas Legislature Gassea H B 620 reiating to bids by
nonresicent Contractors. The pertinent portion of the Act has
Caen extracted and is as Follows:
(a.)
(2) "Nonresident bidder" means a bidder whose
principai place or business is not in this state, but
excludes a contractor whose ultimate parent company or,
majority owner has its principal place of business in
this state.
(3) "Texas resident bidder" means a Kidder whose
principal place Of business is in this state, ana
inCiudes a contraCtzr wnose ulti&mate parent company or
majority owner has its principal place of business in
this state.
(b) The state or a governmental agency of the
state may not award a contract For general
construction, improvements, services, or public
works projects or purchases of supplies,
materials, or eouipment to a nonresident bidder
unless the nonresident's bid is lower than the
lowest bid submittec by a responsible Texas
resicent bidder oy the same amount that a Texas
resident bidder -.4ould be required to uncerbid a
nonresident bitter to obtain a comcaraole contract
in ne slate in wnicn t ~e nonresicent's principai
place or" business is locatee.
BAYTOWN STATE BANK I s a
(COmcany N4 e)
:�°c , aen Z _ i C =eT f: -exas cS der i net i rt H
Cusi ess ;S
3iCnatur
Fr i nt Name E. Reginald Brewer
President and Chief Executive Officer
i's a
( C;:M0anV 'Name)
arc: cur , nc i pa i i ace
(City and state)
5 l ona zur e
-.,nt dame
CITY OF BAYTOWN, TEXAS
BID FOR BANKING SERVICES
BID NUMBER 9108 -122
I. INTRODUCTION
A. Background
The City of Baytown, based on as examination of its
cash management policies, practices and procedures, is
evaluating its baking needs in terms of services and
costs. In conjunction with this evaluation, the City
is inviting bids from qualified banking institutions
for providing complete banking services to the City of
Baytown as described in Section III. This bid is for
banking services only and does not include investment
of City funds. The City will bid and invest part or
all of its surplus or excess funds outside the
depositary agreement which arises from this bid. The
City of Baytown desires to acquire banking services
which represent the best value to the City. The City
considers value to be a function of price and quality.
B. Submission Instructions
1. Sealed Bids: Responses to this bid marked "Banking
Services" shall be sealed and mailed or delivered
to:
Eileen P. Hall, City Clerk
Baytown City Hall
P.O. Box 424
2401 Market Street
Baytown, Texas 77522
To be eligible for consideration, all bids must be
filed with the City before 2:00 P.M. September,.2;3
1991. Bids received after the deadline, regardless
of the method of delivery, will not be opened or
considered by the City.
2. Responses: Bids must be submitted on the standard
forms provided herein, with supporting material
attached to the required forms. The City's
decision is selecting the bid that best meets the
needs of the City will be based on the data
contained in this bid and on the attached forms.
3. Questions and Clarifications: Any questions or
requests for clarification should be directed to
Mr. Ken Mitchell, Director of Finance (420 - 6531).
Inquiries should not be made to other city
officials or employees.
1
4. Variances: All variances from the City's
specifications, terms and /or conditions, no matter
how slight, must be indicated on the attached
quotation forms. otherwise, it will be assumed
that your bid fully complies with our terms,
conditions, and specifications as defined.
5. Bid Signature: This document is part of the bid
and must be signed in the appropriate spaces and
initialed at the bottom of each page by an officer
of the Bank who is authorized to bind the Bank.
6. This Bid does not commit the City of Baytown to
enter into any formal or informal banking services
arrangement or to incur any costs related to the
preparation of a response.
C. Selection Criteria
The following criteria will be used by the City of
Baytown to evaluate the bid and make a selection.
1. Compliance with minimum requirements as set out in
Section II of the Bid.
2. Complete responses to all required items on the
quotation forms.
3. Cost of services.
4. The "Overnight Investment Rate" used to calculate
interest earnings from the investment of surplus
funds.
D. Terms and Conditions
1. Term: The intent of this Bid is for the City To
arrange for banking services for a two year period.
2. Right to Reject: The City reserves the right to
waive any irregularities in any bid, to request
additional information and to accept or reject all
bids.
3. Modification and Amendments: The City reserves the
right to negotiate such additions, deletions or
changes as it deems necessary during the term of
the agreement.
4. Effective Date: The contract will run from October
1, 1991 to September 30, 1993.
E
II. MINIMUM QUALIFICATIONS FOR SUBMITTING A BID
In response to this Bid, the bidder acknowledges and understands
that the following conditions must be met at the time services
are provided to the City:
A. Federal or Texas Chartered Bank located in Baytown.
B. Approved Collateral: A bank submitting a bid must have
identifiable collateral which meets the requirements of
Texas law for public depositories, and which is
sufficient to cover the City's deposits at all times.
C. Adequate Size to Provide Service: A bank submitting a
bid must have adequate organization, facilities,
equipment, and personnel to provide prompt and
efficient service to the City.
D. City Liaison: A bank submitting a bid must assign a
senior level bank management person as liaison with the
City's Finance Department.
E. City Employee Check Cashing Privileges: A bank
submitting a bid must agree to without charge to the
City or its employees all of City of Baytown employee
payroll checks drawn on its bank after proper
identification is presented by the employee, regardless
of whether or not the employee has an account with the
Bank.
III. STATEMENT OF REQUIRED SERVICES
The City has determined that the following services
are the minimum necessary in order to fulfill the
foreseeable future banking service requirements of
Baytown. The following is a schematic diagram of the
management system:
3
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current and
the City of
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1. All receipts except for those for the health
insurance account are credited to a single
concentration account.
2. All disbursements are drawn as needed from the
separate disbursement accounts (Payroll and Vendor)
which are maintained at a zero balance.
3. The Bank shall make daily transfers from the
concentration account into each of the disbursement
accounts to cover the checks presented that day for
payment.
4. Receipts for the health insurance premiums are
credited to the health insurance account.
5. Disbursements for insurance claims are drawn as
need from the health insurance account.
6. The funds remaining in the concentration account
after the transfers to the disbursement accounts
and funds remaining in the health insurance account
will earn interest at the "Overnight Investment
Rate".
"Overnight Investment Rate" means the Federal Funds
offered rate as published in the Wall Street
Journal for the previous business day multiplied by
the percent quoted by the bidder in Item D of the
attached quotation form.
A. Concentration Account
1. Use of Account: The City of Baytown requires a
cash concentration account into which all City
receipts, except those for the health insurance
account, will be deposited. The amount necessary
to cover the checks presented in the zero balance
accounts will be transferred for the concentration
account on a daily basis. At the end of each day,
the collected cash balance in the concentration
account will be automatically invested overnight at
the "Overnight Investment Rate ".
2. Deposits: The city will make deposits to the
concentration account at various times during the
business day and will require the Bank to give same
day credit on collectible funds the Bank receives
before 2:00 P.M. Deposits will not be encoded or
sorted. The bank agrees to credit the
concentration account for all checks in accordance
with the bank's availability schedule. Banks are
required to attach a copy of their availability
schedule to the bid.
5
3. Monthly Statement: The City will require the Bank
to Provide printed bank statements for the
concentration account on a monthly basis within
five business days from the end of each month. The
monthly statement will include return of all
canceled checks, debit and credit memos, and
deposit tickets.
4. Returned Items: The City will require that
returned items of seventy -five ($75.00) dollars or
less be automatically redeposited the first time.
5. Wire Transfers Out: The City will require the Bank
to periodically wire funds out of the concentration
account to various vendors, paying agents, and
brokers upon telephone instructions. Persons
authorized by the City to make wire transfers will
be assigned "personal identification number" (PIN)
by the bank. Call back procedures will be used to
independently verify the transfer. The City agrees
to notify a designated person at the bank by 11:00
a.m. Wire transfers ordered by 11:00 a.m. and not
received by the destination party by the close of
business will be traced from origin to destination
to ascertain the party responsible for delaying the
transfer. If necessary, adjustments will be made
for any lost interest or charges resulting from a
"fail" to consummate a transfer. All transfers
will be made using the Federal Reserve System
unless otherwise instructed by the City.
6. Wire Transfers In: The City will require the Bank
to accept incoming wire transfer of funds for the
sale of securities, interest payments and receipts
from various governmental agencies. The City
intends to consider these incoming wire transfers
as "available for investment" either by the City or
by the bank through the overnight investment
agreement.
7. Account Inquiry: The City will telephone the Bank
as needed to inquire about the ledger and collected
balance in the concentration account.
11
B.
8. Data Summary (Estimate of Activity):
Account Maintenance
Account Inquiry
Deposits Credited
Items Deposited Unencoded
Returned Items
Incoming Wires
Outgoing Wires
Monthly Yearly
1
12
1
12
240
2,880
14,170
170,040
40
480
3
36
5
60
Average Daily Collected Balance
Vendor—Zero-.-Balance--Account
1. Use of Account: The City of Baytown requires a
zero balance checking account from which all vendor
disbursements will be paid.
2. Checks: The City requires the bank to provide the
necessary check stock for this account. Vendor
checks shall be two part (NCR Copy) continuous
forms on protective safety stock; all checks to be
prenumbered. See sample on Exhibit 1.
3. Monthly Statement: The City will require the bank
to provide printed bank statements for the vendor
zero balance account on a monthly basis within five
business from the end of each month. The monthly
statement will include return of all canceled
checks, debit and credit memos, and deposit
tickets.
4. Check Sorting: The City requires that all paid
checks be returned to the City with their
respective bank statements and that these checks be
fine sorted in ascending numerical order.
5. Stop Payments: The City will require the Bank to
issue stop payments upon telephone communication
from authorized City personnel. The City will
provide written confirmation of the telephone
transaction and will require written confirmation
of the stop payment from the Bank.
7
6. Data Summary (Estimate of Activity):
Monthly Yearly
Account Maintenance 1 12
Checks Paid 1,000 12,000
Check Sorting 1,000 12,000
Stop Payments 1 12
C. Payroll—Zero _Balance—Account
1. Use of Account: The City of Baytown requires a
zero balance checking account from which all semi-
monthly City payroll checks will be written.
2. Checks: The City requires the Bank to provide the
necessary check stock for this account. Payroll
checks shall be one part continuous forms on
protective safety stock; all checks to be
prenumbered. See sample on Exhibit 2.
3. Monthly Statement: The City will require the bank
to provide printed bank statements for the vendor
zero balance account on a monthly basis within five
business from the end of each month. The monthly
statement will include return of all canceled
checks, debit and credit memos, and deposit
tickets.
4. Check Sorting: The City requires that all paid
checks be returned to the City with their
respective bank statements and that these checks be
fine sorted in ascending numerical order.
5. Stop Payments: The City will require the Bank to
issue stop payments upon telephone communication
from authorized City personnel. The City will
provide written confirmation of the telephone
transaction and will require written confirmation
of the stop payment from the Bank.
6. Data Summary (Estimate of Activity):
Account Maintenance
Checks Paid
Check Sorting
Stop Payments
8
Monthly__ Yearly
1 12
1,300 15,600
1,300 15,600
1 12
FOP
E.
Health Insurance Account
1. Use of Account: The City of Baytown requires a
health insurance checking account from which all
employee health insurance claims, administrative
fees, and stop loss insurance premium disbursements
will be paid.
2. Checks: The City does not require the bank to
provide the necessary check stock for this account.
The administrator of our self insurance program
will provide the check stock for this account.
3. Monthly Statement: The City will require the bank
to provide printed bank statements on the health
insurance account on a monthly basis within five
business days from the end of each month. The
monthly statement will include return of all
canceled checks, debit and credit memos, and
deposit tickets.
4. Check Sorting: The City requires that all paid
checks be returned to the City with their
respective bank statements and that these checks be
fine sorted in ascending numerical order.
5. Stop Payments: The City will require the Bank to
issue stop payments upon telephone communication
from authorized City personnel. The City will
provide written confirmation of the telephone
transaction and will require written confirmation
of the stop payment from the Bank.
6. Data Summary (Estimate of Activity):
Monthly Yearly
Account Maintenance 1 12
Checks Paid 335 4,020
Check Sorting 335 4,020
Stop Payments 1 12
Investment Services
1. Security Safekeeping: The Bank will be required to
safekeep all securities purchased by the City (U.S.
Treasury Bills and Notes). The City will require a
safekeeping receipt be issued and delivered to the
City within two business days after receipt of
securities.
0
2. Collateral Safekeeping: The City will be bidding
its surplus funds for investments in various bank
certificates of deposits and the Bank will handle
the third -party safekeeping of pledged collateral.
The Bank will be required to safekeep all
collateral pledged to the City by local banks to
cover the City's deposits in these banks via
certificates of deposit. The Bank will be required
to price this collateral to market on a quarterly
basis and furnish the City a report with in 14
business days following the end of each quarter
showing the following information:
a. The bank pledging the collateral.
b. The security pledged (face amount, issuer,
coupon, maturity date)
C. The market value of the pledged security.
3. Overnight Investment of all Collected Funds: The
City requires that all collected funds (excluding
the self- insurance account) remaining in the
concentration account at the end of each day earn a
return such that the City will be credited with
earnings at the "Overnight Investment Rate ".
Interest at the "Overnight Investment Rate" may be
credited monthly.
F. Other Reguired,Services
1. Series E -Bond Issuance: The City will require the
Bank to perform all the necessary procedures for
the City's E -Bond Issuance Program. The City will
furnish a list of employees and amount deducted
along with a check and will expect the Bank to
Administer the program. Currently 3 employees
deduct $112.50 per month for E -Bond purchases.
10
2. Account Analysis: The City requires that a monthly
account analysis for each account be presented to
the City within 15 business days of the end of the
month. The account analysis must show at a minimum
the following information:
a.
b.
C.
d.
e.
f.
9-
h.
Account number.
Period covered.
Average ledger balance.
Average collection balance.
Services rendered (including
and quantity)
Per unit cost of each service.
Total cost per service.
type of service
Total cost of all services rendered.
IV. METHOD OF PAYMENT
The City will pay for services rendered
the health insurance account by debi
account. The City will pay for services
insurance account by debit to the health
service cost to be reimbursed shall be
required monthly account analysis.
11
for all accounts except
t to the concentration
rendered for the health
insurance account. The
taken directly from the
O B' }q Q..
r{ : 4
AMENDMENT 01
CITY OF BAYTOWN
2401 h4ARKET P.O. ROX 424 BAYTOWN, TX 77522 -0424 f71 3) F22 -FllHl
AUGUST 27, 1991
BANKING ;SERVICES
BID NUMBER: 9108 -122
Refer to cover sheet of the bid and change that following:
Change from:
All sealed bids should
bs sent in
duplicate
to the City
Clerk or
the City of Baytown by
2:06 p.m.,
Tuesday,
September 2,
1991.
Change to:
All sealed bids should
be sent in
duplicate
to the City
Clerh of
the City of Baytown by
2:00 p.m.,
Tuesday,
September 3,
1941 .
AMENDMENT P2
Refer to page 1. section 8. paragraph l and change the ro l l aN i nq :
Change ?rom:
To be eligible for consideration, gall bids must be filed with nhe
Ci tv before 2:00 p.m. September 9, 1'791. Bids received after the
deadlire, Tegardless of the m6thod of delivery, will not 5e
rrpened or considered . by the City.
Charge :o:
o be eligible "or- consideration. all bids must be filed with. the
Cit✓ jefcre 2:00 p.m., September 3, 1991,. Bids received after
1A dead l i He. , egar d :e•as Uf the method of delivery, will "ot je
opened _}r consider ad by the City. 1
ilMENDMENT #3
Refer to page 10, section E, paragraph 3 and chance the
following:
Change from:
3. Overnight Investment of all Collected Funds: The City
requires that all collected funds (excluding the self - insurance
account) remaining in the concentration account at the end of
each day earn a return such that the City will be credited with
earnings at the "Overnight Investment Rate ". Interest at the
"Overnight Investment Rate" may be credited monthly.
Change to:
3. Overnight Inve-_tment of all Collected Funds: The City
requires that ail collected funds remaining in the concentration
account and the health insurance account at the end of each day
earn a return such that the City will be credited with earnings
at the "Overnight Inve- stment Rate ". Interest at the "Overnight
Investment Rate" may he credited monthly.
Bidder shall include and submit this amendment as part of his /her
bid. Any questions concerning this amendment should be directed
to:
k'.en 11itchell
Director of Finance
Phone Number: (713) 420- -6531
. - --
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