Active SLED Opportunity · TEXAS · CITY OF WAXAHACHIE
AI Summary
The City of Waxahachie, TX seeks qualified financial institutions for a five-year primary depository services contract starting January 2027. Services include banking, collateral management, fraud protection, and treasury management. Applications are due August 7, 2026.
The City of Waxahachie, Texas, is requesting electronic applications from qualified financial institutions to serve as the City’s primary depository. The City’s current depository service contract expires in January 2027. In accordance with Texas Local Government Code § 105.017, municipal depository services contracts are limited to a maximum term of five years.
The City anticipates awarding a new depository services contract effective January 2027 and invites eligible financial institutions to submit applications for consideration. The selected institution will provide banking and depository services in accordance with the terms, conditions, and requirements outlined in this Request for Applications (RFA).
The City Council will award the depository services contract to the applicant(s) whose application provides the most advantageous terms for the City, based on compliance with the RFA requirements and the City's needs. The City may request presentations and/or demonstrations from any one or all applicants, and reserves the right to waive any formality or irregularity, (with the exception of the due date and time) and to make awards to more than one applicant, or to reject any or all applications.
Eligibility to Apply: All qualified financial institutions with a main office or a branch office operating within the City's municipal boundaries. (Local Government Code Chapter 105.011)
Governing Statutes:
Fees will be evaluated based on a mathematical formula comparing the total cost to the other application total cost. Interest rates on interest bearing accounts and deposits; Earnings credit rate on compensating balances.
Previous service relationship with the City, Convenience of location(s), Financial strength and stability of the institution.
Ability of applicant to perform and provide the required and requested services, Transition cost, retention and transition offers, and incentives
References provided and feedback received
Please provide the contact Information of the authorized official submitting this response.
-Legal Name
-Title
-Email Address
-Phone Number
The City requests one relationship manager to coordinate the successful institution's efforts and remain directly responsible for facilitating all city/institution interaction.
Name:
Title:
Phone:
Email:
By clicking "Please confirm" below, hereon affixed, the respondent declares they have read this RFA entirely and with full knowledge of the requirements, does hereby agree to furnish the services in full accordance with the requirements of this RFA if selected.
Confirming also indicates the following:
The undersigned represents that they are authorized to bind the Respondent to fully comply with the terms and conditions of this RFA's requirements.
RIGHT TO CANCEL UNDER FEDERAL OR STATE LAW RULINGS- In the event it would be ruled illegal under the provisions of any Federal or State laws or regulations for the successful institution to comply with the requirements of the contract, then the City expressly reserves the right and privilege to cancel the contract and to re-solicit applications.
RIGHT TO OPEN & MAINTAIN OTHER ACCOUNTS - The City shall have the right, at its sole discretion, to direct, open and maintain accounts at other institutions.
CERTIFICATES OF DEPOSIT - Certificates of Deposit ("CDs") will be opened in the name of the City and must be fully insured by the FDIC or collateralized in accordance with Chapter 2257 Public Funds Collateral Act and the City's Investment Policy until the maturity date. Proof of collateral must be supplied to the City prior to CD settlement.
RIGHT TO TERMINATE - The City expressly reserves the right to terminate the contract with or without cause at any time by providing ninety (90) days written notice to the successful institution to close its accounts and terminate services.
TERMS FIXED - All fees, rate formulas, and conditions shall be fixed for the entire contract period, including any and all continuations.
SEMI-ANNUAL MEETING-The City expects a review meeting at least once every six months to evaluate the working relationship between the City and the successful institution. The objective shall be to address any problems and to seek solutions as well as keeping abreast of changes, new services, or new requirements.
FORMAL CONTRACT REQUIRED - The final appointment of the successful institution shall be made by the City Council. The successful institution shall be required to enter into a contract that incorporates all of the requirements of their official response to this RFA, along with the accompanying related schedules and materials as called for in this RFA. The formal agreements should include: a primary depository services contract, a collateral custodial agreement, and a FIRREA compliant resolution of certification (see reference under the Collateral Requirements). A sample of the proposed contract is provided.
NET OVERDRAFT DEFINED - The City does not intend to have a net overdraft position occur during the term of the contract. A net overdraft shall be defined as a negative balance in the City's accounts collectively, not by individual account.
OVERDRAFT NOTIFICATION - In the event a check or checks shall be presented for payment where there is insufficient funds in the City's collective accounts, the successful institution agrees to promptly notify the City's Finance department by telephone or other means, of the overdraft condition, and to provide the City a period not exceeding one business day to respond and rectify the condition.
RESEARCH - The City expects that all research requests are responded to within three business days of the request.
BANK ERRORS - Bank errors resulting in lost interest or incorrect service fees to the City must be reimbursed by the bank to the City, utilizing a mutually agreed upon method of reimbursement.
AUDIT CONFIRMATIONS - Successful institution must provide account balance audit confirmations to the City's audit firm annually at no charge.
Please download the document below and upload the completed questionnaire.
The following services must be provided as described or in an alternative form that results in essentially the same outcome or capability.
The City uses Incode and expects online reporting that at a minimum include:
The online banking system must offer wire transfer capability. Wires may be one time or be set up as repetitive of varying amounts. Notification of incoming wire transfers shall be made via the online banking portal.
The City expects a robust ACH system to create ACH credits for direct deposit of payroll and vendor payments, and to direct debit customer accounts for NR and utility billing charges.
The City expects the ability to place stop payments online. Please provide additional information regarding auto-renewals and duration of stop payments:
Term of Initial Stop Payment
Automatic Renewal Offered (Yes/No)
Manual Renewal Offered (Yes/No)
How long is continuous historical information retained online and accessible by the uses? Please use the comments section to explain the default time period, and if additional fees apply for extending storage time beyond the default time period.
Once the service is in place, are users managed through self-administration, or through requests submitted to the financial institution?
The City is interested in alerts sent via email or text messaging to alert City of Waxahachie specific activity such as incoming wires, positive pay exceptions, etc.? If your institution offers this service, how is the City charged for this service?
The City expects Electronic Data Interchange ("EDI") service in order to see addenda information included with ACH deposits.
What options does your institution offer for providing copies of paid checks to the City? (Select all that apply)
The City expects deposited checks to be processed for collection at least twice before making non-paid checks available to the City. The City prefers to receive notice of rejected items electronically. The City expects same day notification of all returned items in excess of $5,000.00.
The City expects the institution to cash checks issued to employees (with proper identification) without service charges or fees to the employee or the City, and without requiring the employee to open an account with the institution.
The City expects positive pay on designated accounts from which checks are issued and full/partial account reconciliation service on the AP Account. The City electronically transmits the issued check files to the institution. Positive pay files must be transmitted electronically. Minimum payment verification criteria shall be payee name, date, check number, and amount. The City may approve and make pay/no pay decisions on any exception items.
The City prefers the option of checks automatically becoming stale dated after a set period of time, based on the issue date in the Positive Pay system. Does your institution offer this feature, and ifso, how does the institution handle items presented after they are stale?
The City expects the fraud protection feature or service that prevents checks being presented for payment to be posted to the accounts from which checks are not issued.
The City expects ACH positive pay/filter capabilities on its accounts, with the ability to selectively permit specified ACH debits on certain accounts and restrict all ACH debits from certain accounts.
The City expects that statements be rendered within five (5) working days after the close of the calendar month. Monthly cutoff of statements must occur on the last calendar day of each month. Bank will notify City before inactive accounts are placed in dormant status for inactivity. The statement shall include debits and credits made on the last day of the period and the detail items. Bank statements must be received monthly, even if there is no activity for the account. The City expects to have access to online bank statements with images for at least the previous twelve months of statements.
The City expects account analysis statements by individual account and at group level, reflecting average ledger balance, average uncollected funds, average collected balance, reserve requirement, average available balance, rate and amount of earnings credit, detail of services provided with quantities and unit fees for each, and total service cost, delivered to the City on a monthly basis. This requirement applies to "No Fee" or "Fee Waiver" applications.
The City expects to pay for all services provided by the earnings credit amount generated by account balances, or by direct payment, or a combination of both. The City prefers that settlement of the excess/deficient condition as reflected by the group level account analysis occur on a quarterly basis. The City reserves the right to select Monthly Settlement if the pricing structure of the awarded financial institution favors Monthly Settlement. If deficient, settlement is to be made by direct debit to the City's designated account.
State how the institution will treat any Balance Assessment or balance-based fee applicable to the City (i.e. Deposit Supervisory Fee, Premium Assessment Fee, etc.). Please indicate if the assessment will be for all depository balances or non-interest bearing balances only. (Also, please reflect treatment in the Fee Schedule)
Applicant must indicate whether or not a reserve requirement on balances used in calculating earnings credit is required.
The institution must state the current ECR, rate formula, and rate floor being proposed:
ECR%
Rate Formula (i.e. is there an index or is it a bank determination?)
How often will the ECR adjust if not indexed?
Rate Floor:
If balances are sufficient to cover all services and additional balances are available to earn interest, please state the current rate, rate formula, and floor being proposed:
Interest Rate %
Rate Formula (i.e. is there an index or is it a bank determination?):
Rate tiers based on balance?
Rate Floor:
Type of Account: (MMF, Interest Bearing Account, ICS, Investment Sweep Account): Any Fees associated with the recommended investment option:
Comments/additional info if desired to clarify determination of interest rate :
The City currently utilizes two controlled disbursement accounts for its disbursements. The controlled disbursement presentment notification must also be accessible through online banking services. This information must be available and accessible by I 0:00 A.M. local time.
The City expects a zero-balance account for its AP Account and may consider replacing the two controlled disbursement accounts with zero balance accounts. The bank teller function must identify the Payroll Account as a ZBA to ensure employee presentments made at the bank are honored.
The City is considering remote deposit capture services for electronically preparing and submitting deposits. The City is not currently utilizing this service and and anticipates needing one scanner if the servicew is implemented. If needed, will your institution provide a scanner for the City to use?
The City is considering the possible use of Smart Safe for the secure handling of cash receipts. Please provide details for this service including cost associated with this service. Please describe any requirements the City would have to consider for this service.
Please provide a detailed description of how this service is set up, including pricing options for transactions and all equipment:
In the event, that the City elects to invest in securities, the City prefers that their depository bank provide safekeeping services, when applicable, for the securities owned by the City, or offers an alternative option for safekeeping services. All securities will be handled on a Delivery Versus Payment (DVP) basis as they are cleared into and out of the City's account. Confirmation of trades must be provided to the City within one (1) business day.
The City prefers a web-based safekeeping transaction monitoring and reporting mechanism. Please also provide a schedule of securities safekeeping fees in the comments.
The City may be interested in using ATM deposit cards.
The City may consider these services (often referred to as E-Lockbox) for receipts of utility and other payments generated from personal customer bank bill pay applications. The remittance data and payment amount captured during processing must be transmitted to the City daily for the update of the accounts receivable file.
The City may consider lockbox processing services for remittances of Utility Billing payments.
Will the institution provide tamperproofbags at no charge?
Will the institution provide endorsement stamps and deposit slips at no charge?
Is the institution offering a scanner(s) to the City at no additional cost?
Is the institution offering to help to offset the cost of Courier or Armored Car services through a direct credit or through the application of Earnings Credit to the cost? If so, please provide the details of the service and how it would be billed. The City currently deposits approximately $65,000 per month in cash and coin.
If your institution is offering a waiver of monthly service fees during a specific timeframe, please provide the following information for clarity of the terms of your offer.
Zero-pricing waiver (no fees assessed) during the timeframe of the offer and interest can be earned on balances during this time
Number of months of the fee waiver:
Maximum dollar amount of waiver (if any limitations):
Please provide:
Number of months of the fee waiver:
Maximum dollar amount of waiver (if any limitations):
If Institution is offering a cash amount to offset the cost of the transition, please provide that amount.
$
RIGHT TO CANCEL UNDER FEDERAL OR STATE LAW RULINGS- In the event it would be ruled illegal under the provisions of any Federal or State laws or regulations for the successful institution to comply with the requirements of the contract, then the City expressly reserves the right and privilege to cancel the contract and to re-solicit applications.
RIGHT TO OPEN & MAINTAIN OTHER ACCOUNTS - The City shall have the right, at its sole discretion, to direct, open and maintain accounts at other institutions.
CERTIFICATES OF DEPOSIT - Certificates of Deposit ("CDs") will be opened in the name of the City and must be fully insured by the FDIC or collateralized in accordance with Chapter 2257 Public Funds Collateral Act and the City's Investment Policy until the maturity date. Proof of collateral must be supplied to the City prior to CD settlement.
RIGHT TO TERMINATE - The City expressly reserves the right to terminate the contract with or without cause at any time by providing ninety (90) days written notice to the successful institution to close its accounts and terminate services.
TERMS FIXED - All fees, rate formulas, and conditions shall be fixed for the entire contract period, including any and all continuations.
SEMI-ANNUAL MEETING-The City expects a review meeting at least once every six months to evaluate the working relationship between the City and the successful institution. The objective shall be to address any problems and to seek solutions as well as keeping abreast of changes, new services, or new requirements.
FORMAL CONTRACT REQUIRED - The final appointment of the successful institution shall be made by the City Council. The successful institution shall be required to enter into a contract that incorporates all of the requirements of their official response to this RFA, along with the accompanying related schedules and materials as called for in this RFA. The formal agreements should include: a primary depository services contract, a collateral custodial agreement, and a FIRREA compliant resolution of certification (see reference under the Collateral Requirements). A sample of the proposed contract is provided.
NET OVERDRAFT DEFINED - The City does not intend to have a net overdraft position occur during the term of the contract. A net overdraft shall be defined as a negative balance in the City's accounts collectively, not by individual account.
OVERDRAFT NOTIFICATION - In the event a check or checks shall be presented for payment where there is insufficient funds in the City's collective accounts, the successful institution agrees to promptly notify the City's Finance department by telephone or other means, of the overdraft condition, and to provide the City a period not exceeding one business day to respond and rectify the condition.
RESEARCH - The City expects that all research requests are responded to within three business days of the request.
BANK ERRORS - Bank errors resulting in lost interest or incorrect service fees to the City must be reimbursed by the bank to the City, utilizing a mutually agreed upon method of reimbursement.
AUDIT CONFIRMATIONS - Successful institution must provide account balance audit confirmations to the City's audit firm annually at no charge.
The institution shall pledge collateral to satisfy the requirements of the Public Funds Collateral Act, Chapter 2257, Government Code, and the City's Investment Policy.
The maximum ledger balances could exceed $6,000,000 in the aggregate. Historically, the average balances are less than $4,000,000. Applicant must clearly explain any collateral limitations or fees. The City reserves the right to maximize or minimize bank balances regardless of historical patterns. The institution must monitor the collateral adequacy daily and provide additional collateral to secure balances as required.
The pledge securities shall be held at an independent custodian acceptable to both the City and the institution.
Please provide the name of the proposed independent custodian as well as any related fees:
How will your institution collateralize the City's deposits:
Ledger balance shall detennine the total balance level. The institution shall pledge collateral equal to or in excess of the required level on a same dav basis.
If prior dav ending ledger balance is to be used as the basis for calculating the required collateral pledge, in order to minimize any period where the City balances could be under collateralized, the City will require that a fixed pledged amount be maintained as mutually agreed to by the City and the institution.
The City prefers that any substitutions of the pledged securities in the total amount pledged shall be made only by and with the proper written authorization of an authorized City signatory. How does your institution handle substitutions?
The City strongly prefers that any reduction of the total amount pledged shall be made only by and with the proper written authorization of an authorized City signatory. How does your institution handle collateral reductions:
If the second option is the one your institution uses, will your bank agree to maintain a minimum threshhold of collateral that will not be lowered without prior approval from the City?
The institution and the custodian shall provide City a monthly pledged securities report or additional reports at any time requested by City. The report must describe the total pledged securities by:
Name
Type / Description CUSIP
Par Value
Current Face Value Maturity Date
Is daily online access to the City's collateral account available through the third-party custodian?
The Board of Directors or designated committee of the institution will be required to provide a FIRREA compliant resolution. The following is an excerpt of the FIRREA requirement from the FDIC Code:
e) AGREEMENTS AGAINST INTERESTS OF CORPORATION.--
(1) IN GENERAL.--No agreement which tends to diminish or defeat the interest of the Corporation in any asset acquired by it under this section or section 11, either as security for a loan or by purchase or as receiver of any insured depository institution, shall be valid against the Corporation unless such agreement--
(A) is in writing,
(B) was executed by the depository institution and any person claiming an adverse interest thereunder, including the obligor, contemporaneously with the acquisition of the asset by the depository institution,
(C) was approved by the board of directors of the depository institution or its loan committee, which approval shall be reflected in the minutes of said board or committee, and
(D) has been, continuously, from the time of its execution, an official record of the depository institution.
Please provide three (3) references who can verify the quality of service your company provides. The City prefers references with a scope of work similar to the services mentioned in this RFA in which the respondent has worked in the past three years.
If the one-time cost or estimated annual cost of the contract is over $50,000, we will not be allowed to request quotes unless the contract will based on co-op pricing.
Our standard contract renewal option is a one-year term, with 4 one-year renewal options so that if there are any issues with the contract, we are not locked in for multiple years.
Answer format: Month DD, YYYY
Example: May 01, 2024
Answer format: Month DD, YYYY
Example: April 30, 2027
Answer Format: xxx (x) years
Example: three (3) years
SLED stands for State, Local, and Education. These are solicitations issued by state governments, counties, cities, school districts, utilities, and higher education institutions — as opposed to federal agencies.
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