New Treasurers’ Seminar December 2018 Mitzi Baker Midland County Treasurer
Where is the law on establishing a Depository? Approaching the RFP process Building a timeline Collecting and providing information The evaluation process Approval process Securities for funds held in depository
Texas Local Government Code Chapter 116 for County Public Funds Texas Local Government Code Chapter 117 for Trust Funds and Registry Funds
LENGTH OF CONTRACT §116.021 Contract 2 years w/extension of 2 years Contract 4 years w/extension of 2 years Negotiate terms of extension by Commissioners Court and approved by an authorized representative of the bank Commissioners Court must approve… Who will negotiate? The Treasurer? You must give yourself time to go out for a new bid if negotiation fails. 116.021
BUILDING A TIMELINE Establish when the new contract must begin and work backwards Commissioners Court authorizes the advertisement for bids in regular court session Information is collected on all bank balances including registry accounts Bid packets are emailed or mailed to prospective banks…and possibly at the same time
BUILDING A TIMELINE continued…. ….Notice is placed in the newspaper that the Commissioners Court intends to receive applications from which to select a depository bank. It must be ran once each week for at least 20 days BEFORE the date to submit an application. A notice shall also be posted at the courthouse door of the county. 116.022
BUILDING A TIMELINE continued…. Establish a deadline to accept questions from bidders. Establish when sealed bid packets are due. (116.023 states no later than 60 th day before expiration of existing depository contract) Giving time to evaluate, set approval date in regular court session. 116.024
BUILDING A TIMELINE continued…. Establish 15 day deadline – Bond must be filed and securities provided by bank depository 116.024(e) Give yourself time to get signature cards done and checks and deposit slips ordered New contract begins with depository
JANUARY 23, 2017 - C. COURT AUTHORIZES ADVERTISING FEBRUARY 17, 2017 – BANK BALANCES DUE FROM DEPTS. MARCH 3, 2017 – PACKETS ARE MAILED AND 1 ST NOTICE MARCH 10, 2017 – 2 ND NOTICE MARCH 17, 2017 - 3 RD NOTICE MARCH 20, 2017 – QUESTIONS DUE FROM BIDDERS MARCH 31, 2017 – BID PACKETS DUE APRIL 10, 2017 – APPROVAL OF DEPOSITORY IN C. COURT APRIL 25, 2017 – 15 DAY DEADLINE FOR SECURITIES JUNE 1, 2017 – NEW CONTRACT BEGINS WITH DEPOSITORY
Consultant Consultant Treasurer Treasurer Tax Assessor Tax Assessor Auditor Auditor County Clerk County Clerk Purchasing Purchasing District Clerk District Clerk Agent/Manager Agent/Manager Any office that is Any office that is legally allowed to legally allowed to Attorney Attorney have a bank have a bank account account INTERNAL TEAM OPTIONAL
GENERAL REQUIREMENTS OF GENERAL REQUIREMENTS OF THE BID THE BID Define exactly what you expect to receive from the bidder including the Good Faith Guarantee and Resolution from the Board of Directors Define exactly when and where you expect to receive the bid Define how they will be evaluated Define the laws that will govern the contract Identify the PFIA, the PFCA and what you accept as collateral in your investment policy Give them the general specifications of the contract Define the security and collateral requirements
SERVICE REQUIREMENTS SERVICE REQUIREMENTS Define who you require as a contact person/persons daily Define services you require and request for costs Online Services Analysis Report Statements Payroll Direct Deposit ACH Transactions/Wire Transfers Positive Pay Disbursements/Deposits/Overdrafts Computerized Output
SERVICE REQUIREMENTS continued….. SERVICE REQUIREMENTS continued….. Expense Allowance incurred due to changing depository banks ATM Services Other services ie: locked bags, checks & deposit slips, endorsement stamps, coin wrappers, currency straps Ask the bank for other unspecified services that they may provide Ask for their agreement with audit procedures and bank confirmations Ask for no minimum balance requirements (Trust/Registry Funds)
SERVICE REQUIREMENTS continued….. SERVICE REQUIREMENTS continued….. List your Structure of Accounts: List your Structure of Accounts: # # and current $ and current $ of Non-In of Non-Inte terest Beari rest Bearing Checki Checking ng # # and current $ and current $ of Inte of Interest Beari rest Bearing Checki Checking ng # # and current $ and current $ of Inte of Interest Bearing Savings rest Bearing Savings # and current $ of CD’s # and current $ of CD’s for Trust/Re for Trust/Regi gistry Funds stry Funds # # and current $ and current $ of Mone of Money Market or y Market or CD CD acco accounts at current s at current deposito depository ry
SERVICE REQUIREMENTS continued….. SERVICE REQUIREMENTS continued….. Optional: Optional: Provide a bid worksheet whereby Provide a bid worksheet whereby using your current balances and number of using your current balances and number of transactions (from a current bank analysis transactions (from a current bank analysis sheet) they provide THEIR costs for those sheet) they provide THEIR costs for those services. services. This is an excellent tool for the This is an excellent tool for the evaluation process. evaluation process.
RECOMMENDED ITEMS YOU MAY REQUIRE RECOMMENDED ITEMS YOU MAY REQUIRE BE INCLUDED BE INCLUDED Amount of bank’s paid-up capital stock Amount of bank’s paid-up capital stock and and surplus surplus List of referenc List of references es Quarterly Uniform Bank Performance Reports Quarterly Uniform Bank Performance Reports Call Reports Call Reports Financial Reports Financial Reports Samples of analysis reports and statements Samples of analysis reports and statements
OK, THE RFP IS READY TO GET OUT THERE! OK, THE RFP IS READY TO GET OUT THERE! Consider a “pre-RFP” meeting with potential Consider a “pre-RFP” meeting with potential bidders bidders RFP Format: RFP Format: PDF vs DOC and EXCEL PDF vs DOC and EXCEL Once the RFP is released, contact with potential Once the RFP is released, contact with potential bidders is restricted bidders is restricted If you get a question, get it If you get a question, get it in writing, then your in writing, then your response is to ALL bidders response is to ALL bidders
In-house or Consultant Criteria should be for the “best” provider not necessarily the “cheapest” People do business with PEOPLE, not services, fee schedules or financial statements If unsure of a bidder’s response, submit follow-up question(s) for clarification Optional: Consider inviting top candidates in for presentations
BAN BANK #1 #1 BAN BANK #2 #2 BAN BANK #3 #3 Interest Interest-B -Bea eari ring Checki ng Checking ng NOW rate + .25%/Floor of .50% and tied to Fed Fund Prior months avg T-Bill less Accn Accnts .70% Target Rate changes 35 bps Money Market Sa Money Market Saving ngs .60% and tied to Fed Fund Prior months avg T-Bill less Accn Accnts current deposit sheet rates Target Rate changes 25 bps Inte tere rest B st Bearing S ing Savings vings .50% and tied to Fed Fund Accnts Accn current deposit sheet rates Target Rate changes The bank's published rate. EARNINGS C RNINGS CREDIT EDIT Current rate + .25% 0.75% T-Bill + 25 bps Less a Federal Reserve Requirement of 10% Locke Locked or or Seal Sealable bag bags No Charge 20 free then $14 No charge One Saf One Safe Dep Deposit Box t Box No Charge 1st $3500 free, then Bank Laser Che Laser Checks ks Bank Retail Initial Free then Bank Retail Retail 2nd $3500 free, then Bank Che Checks ks (in (in boo books or or bind binder ers) s) Bank Retail Initial Free then Bank Retail Retail 3rd $3500 free, then Bank Dep Deposit Sli t Slips No Charge Initial Free then Bank Retail Retail End Endors rsem ement Sta ent Stamps No Charge Initial Free then $15 No Charge Coin in W Wrappe ppers No Charge No Charge Bank cost Currency Curr ency Stra Straps ps No Charge No Charge Bank cost MAS MASTER ACC ACCOUNT MAI T MAINT T FE FEE $10 per account $9.45 per account $20.00 per account PAY PAYROL OLL DIRE L DIRECT DEP DEPOSIT YES YES YES $20.25 mo + $0.0675 per AC ACH TRAN TRANSACTIONS $20 mo + $0.08 per item item $15 mo + $0.15 per item WIR WIRE TRAN TRANSFERS $20 ea. $11.25 ea. $25 ea. $125 per account/no item $40 per account/no item POSITIVE PAY POSITIV PAY chg $33.75 per + $0.036 per item chg $200 scanner/$0.07 per REMO MOTE TE DEPO DEPOSIT SERVI SIT SERVICE $100 + $0.10 per item $21.15 + $0.0675 per item item STOP STOP PAY PAY $20 $6.75 $20 ET ETC. ET ETC. ET ETC………….
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