Item 4ECITY OF
SOUTH LAKE
MEMORANDUM
January 12, 2010
To: Shana Yelverton, City Manager
From: Sharen Jackson, Finance Director
Subject: Award the Depository Services Contract with Frost Bank
Action
Requested: Award Depository Services Contract with Frost Bank
Background
Information: The bank depository proposal was released to potential
proposers on November 10, 2009. The proposals were due
on December 11, 2009. The bid specifications stipulated an
initial three -year term, with an option to extend an additional
two years. The bids were evaluated based on several
criteria:
1. Customer Service and Responsiveness (20 %)
2. Financial Condition and Ability to Meet Collateral
Requirements (20 %)
3. Demonstrated Ability to Meet Service Requirements
(20 %)
4. Incorporation of Effective, High Quality and Innovative
Cash Management Services (15 %)
5. Lowest Aggregate Cost, Consistent with other
Selection Requirements (15 %)
6. Submission of all Required Information (10 %)
Bids included "required services ", or the types of services
that the City currently uses, plus "additional services ", which
are services that the City anticipates using during the term of
the contract.
On December 11, 2009, the City received bids from six
financial institutions. The evaluation team reviewed
proposals based on the criteria outlined previously. On
January 4, 2010, the Audit and Finance Committee reviewed
the summary of the financial institutions proposal criteria
submitted and the evaluation team's results.
Based on the criteria outlined above, Frost Bank is staff's
recommendation for depository services.
Honorable Mayor and City Council
Page 2 of 2
Financial
Considerations: Monthly estimated fees $2,258.82.
Strategic Link: B3 Pursue innovative service delivery options
Citizen Input/
Board Review: N/A
Legal Review: Request for proposal reviewed by City Attorney.
Alternatives: None available
Supporting
Documents: Frost Bank proposal submittal
Staff
Recommendation: Award Depository Services Contract to Frost Bank
I learned of this Request for Proposals by the following means:
❑ Newspaper Advertisement X❑ City E -mail Notification
❑ Southlake Website ❑ Cold Call to City
❑ Mailed Me a Copy ❑ Other
City of Southlake RFP091 OB200SJ900038 Page 10
Appendix B — Proposal
Submittal Checklist: (To determine validity of proposal)
^ X Appendix B (pages _20_ through _28_) must be included in the proposal submittal
_X Appendix C (page _28J must be included in the proposal submittal.
_X CD -ROM Version must be included in the proposal submittal.
All proposals submitted to
th c City of Southlake shall include this page with the submitted
proposal and affix a copy
of this form to the outside of the submittal packet's sealed envelope.
Nu'n°ber
RFPO910B20OSJ900038
Prolec# Tale
PROVIDE DEPOSITORY BANK SERVICES
FOR CITY OF SOUTHLAKE
l Dene•
my .2, adL
2:00 P.M. (CST), DECEMBER 11, 2009
Submit to
City Secretary's Office
1400 Main Street, Suite 270
Southlake, TX 76092
817 748 -8016
Pro Weer Information
= — roposer! Legal':
FROST BANK
Address:';`
641 E. SOUTHLAKE BLVD.
Crty, Staet & dip"
SOUTHLAKE, TEXAS 76092
Federal Employers
74- 0635455
lydenti er"
6- aTumber;'
817- 420 -5108
Fax Numbe
817- 420 -5277
I learned of this Request for Proposals by the following means:
❑ Newspaper Advertisement X❑ City E -mail Notification
❑ Southlake Website ❑ Cold Call to City
❑ Mailed Me a Copy ❑ Other
City of Southlake RFP091 OB200SJ900038 Page 10
Appendix B — Proposal (continued)
I. REQUIRED PROPOSAL INFORMATION. IN ORDER FOR A PROPOSAL TO BE
CONSIDERED COMPLETE, AND TO BE EVALUATED FOR A CONTRACT
AWARD BY THE CITY, PROPOSER MUST SUBMITALL OF THE FOLLOWING
INFORMATION:
1. Proposed Products and /or Services
A. Product or Service Description: Proposers should utilize this section to describe
the technical aspects, capabilities, features and options of the product and/or
service proposed in accordance with the required Scope of Services as identified
in Appendix A. Promotional literature, brochures, or other technical information
may be used. Please refer to the Treasury Management Section contained in
Exhibit M for product descriptions.
B. Additional Hardware Descriptions: Proposers should also include in this section a
detailed description of what additional hardware and/or software, if any, would be
required by the City in order to fully utilize the goods and/or services proposed.
To interface with Frost's Cash Manager system, you will need a PC, Internet
Explorer and an internet service provider. Our CD -ROM viewing software is a
Windows -based software which we will provide at no charge. The City has the
right to install the software on a network or on as many PC's at your organization
as needed.
C. Guarantees and Warranties: Each Proposer shall submit a complete copy of any
warranties or guarantees provided by the manufacturer or Proposer with the
Proposal submitted. N/A
D. Project Schedule /Delivery Date: Proposer must provide a project schedule noting
all projected completion dates for segments of the Project, from start-up to
completion, and all delivery dates for goods covered by the RFP. The Proposal
must show the number of days required to deliver and install the product or
equipment after the receipt of the City's Purchase Order. Please refer to the
Treasury Management Section - Exhibit M for Proposed Implementation Plan.
2. Proposer's Experience / Staff
A. Project Team: Identify all members of the Proposer's team (including both team
members and management) who will be providing any services proposed and
include information which details their experience. Please refer to the Treasury
Management Section - Exhibit M for Relationship Team and Biographies.
B. Removal or Replacement of Staff. If an assigned staff person must be removed or
replaced for any reason, the replacement person must be approved by City prior to
joining the project. Agreed.
C. Business Establishment: State the number of years the Proposer's business has
been established and operating. If Proposer's business has changed names or if
the principals operating the business operate any similar businesses under
different names, or have operated any other businesses or changed the legal status
or form of the business within the last five (S) years, all names, of predecessor
business names, affiliated entities, and previous business entities operated by the
City of Southlake RFP091OB200SJ900038 Page 11
principals, if different than present, must be provided; State the number of years
experience the business has: — 141 ; and the number of employees:
_3600+_.
D. Project Related Experience: All Proposals must include detailed information that
details the Proposer's experience and expertise in providing the requested services
that demonstrates the Proposer's ability to logically plan and complete the
requested project.
Frost's 141 years of experience and expertise ate directed toward developing and
offering new financial opportunities that will help our customers succeed in their
own endeavors. Although we offer a full slate of financial products and services
to businesses, governments, nonprofits, trusts and individuals, our real strength is
our commitment to develop and sustain long -term customer relationships.
At Frost, everyone is significant, and that belief shows in the way we treat
customers, prospects and one another. Our focus on relationship is based on
outstanding service, high ethical standards and conservative management to
ensure organizational efficiency and the safety and security of financial assets.
That means that we look at business from a different perspective — from our
customer's point of view. And we offer excellence at a fair price, giving our
customers superior value for the services they receive.
Because long -term relationships are at the core of Frost's business, we are
selective about the partnerships we form, basing new alliances on our judgment of
character. Once made, we nurture these relationships by doing what is right rather
than by just doing what is required by policies and procedures.
More than a financial services partner that focuses on relationships, Frost is a safe
and sound place to do business. During the recent financial crisis, we
demonstrated our continuing commitment to soundness by maintaining strong
liquidity and capital and turning down Troubled Asset Relief Program (TARP)
funding.
3. References
Proposer shall provide four (4) references where Proposer has performed similar to or
the same types of services as described herein.
Reference #1:
Client / Company Name:
City of Everman
Contact Name:
Contact Title:
Ms. Kathy Renshaw
Director of Finance
Ph:
E -mail:
817.292.0525
krenshaw@evermantx.net
Date and Scope of Work Provided:
2008 - Depository/Treasury Services
City of Southlake RFP091OB200SJ900038 Page 12
Reference #2:
Client / Company Name:
City of Haltom Ci
Contact Name:
Contact Title:
Joel Welch
Finance Director
Ph:
E -mail..
817.222.7706
jwcich@haltomcitytx.com
Date and Scope of Work Provided:
2005 - Depository/Treasury Services
Reference #3:
Client / Company Name:
City of Euless
Contact Name:
Contact Title:
Vicki Rodriquez
Finance Director
Ph:
E -mail:
817.685.1626
vodriquez ci.euless.tx.us
Date and Scope of Work Provided:
2007 - Depository /Treasury Services
Reference #4:
Client / Company Name:
City of Keller
Contact Name:
Contact Title:
Johnny Phifer
Finance Director
Ph:
E-mail:
817.743.4025
jphifer@cityotkeller.com
Date and Scope of Work Provided:
1999 - Depository /Treasury Services
4. Trade Secrets and /or Confidential Information
Trade Secrets and/or Confidential Information: This proposal — X _ (does) (does
not) contain trade secrets and /or confidential information. If applicable, describe such
trade secrets and confidential information, and the basis for your assertion that such
material qualifies for legal protection from disclosure. Frost considers rates and
pricing to be proprietary information.
5. Federal, State and/or Local Identification Information
A. Centralized Master Bidders List registration number:
n/a
B. Prime contractor HUB / MWBE registration number:
n/a
C. An individual Proposer acting as a sole proprietor must also enter the Proposer's
Social Security Number: #74--0635455 -
II. CONTRACT TERMS AND CONDITIONS. EXCEPT WHERE PROPOSER MAKES
SPECIFIC EXCEPTION IN THE SUBMITTED PROPOSAL, ANY CONTRACT
RESULTING FROM THIS RFP WILL CONTAIN THE FOLLOWING TERMS AND
City of Southlake RFP091OB200SJ900038 Page 13
CONDITIONS, WHICH PROPOSER HEREBYAKNOWLEDGES, AND TO WHICH
PROPOSER AGREES B Y SUBMITTING A PROPOSAL:
\ 1. Delivery of Products and/or Services
A. Payment Terms: Unless otherwise specified in the Scope of Services or otherwise
agreed to in writing by the City, payment terms for the City are Net 30 days upon
receipt of invoice.
B. Warranty of Products and Services: All products furnished under this contract
shall be warranted to be merchantable and good quality and fit for the purposes
intended as described in this Proposal, to the satisfaction of City and in
accordance with the specifications, terms, and conditions of the Scope of
Services, and all services performed shall be warranted to be of a good and
workmanlike quality, in addition to, and not in lieu of, any other express written
warranties provided.
C. Late Delivery or Performance: If Proposer fails to deliver acceptable goods or
services within the timeframes established in the Project Schedule, the City shall
be authorized to purchase the goods or services from another source and assess
any increase in costs to the defaulting Proposer, who agrees to pay such costs
within ten days of invoice.
D. Title to Goods and Risk of Loss: For goods to be provided by Proposers
hereunder, if any, the title and risk of loss of the goods shall not pass to City until
City actually receives, takes possession, and accepts the goods and the installation
of such goods, has tested the system, and determined that it is in good and
acceptable working order.
2. Miscellaneous
E. Independent Contractor: Proposer agrees that Proposer and Proposer's employees
and agents have no employer - employee relationship with City. Proposer agrees
that if Proposer is selected and awarded a contract, City shall not be responsible
for the Federal Insurance Contribution Act (FICA) payments, Federal or State
unemployment taxes, income tax withholding, Workers Compensation Insurance
payments, or any other insurance payments, nor will City furnish any medical or
retirement benefits or any paid vacation or sick leave.
F. Assignments: The rights and duties awarded the successful Proposer shall not be
assigned to another without the written consent of the Purchasing Manager. Such
consent shall not relieve the assigner of liability in the event of default by the
assignee.
G. Liens: Proposer shall indemnify and save harmless the City against any and all
liens and encumbrances for all labor, goods, and services which may be provided
to the City by Proposer or Proposer's vendor(s), and if the City requests, a proper
release of all liens or satisfactory evidence of freedom from liens shall be
delivered to the City.
H. Gratuities / Bribes: Proposer certifies that no bribes in the form of entertainment,
gifts, or otherwise, were offered or given by the successful Proposer, or its agent
or representative, to any City officer, employee or elected representative, with
City of Southlake RFP091OB200SJ900038 Page 14
respect to this RFP or any contract with the City, and that if any such bribe is
found to have been made this shall be grounds for voiding of the contract
I. Financial Participation: Proposer certifies that it has not received compensation
from the City to participate in preparing the specifications or RFP on which the
Proposal is based and acknowledges that this contract may be terminated and/or
payment withheld if this certification is inaccurate.
J. Required Licenses: Proposer certifies that he holds all licenses required by the
State of Texas for a provider of the goods and/or services described by the Scope
of Services herein.
K. Authority to Submit Proposal and Enter Contract: The person signing on behalf of
Proposer certifies that the signer has authority to submit the Proposal on behalf of
the Proposer and to bind the Proposer to any resulting contract.
L. Compliance with Applicable Law: Proposer agrees that the contract will be
subject to, and Proposer will strictly comply with, all applicable federal, state, and
local laws, ordinances, rules, and regulations.
3. Financial Responsibility Provisions
A. Insurance: The Proposer, consistent with its status as an independent contractor,
shall carry, and shall require any of its subcontractors to carry, at least the
following insurance in such form, with such companies, and in such amounts
(unless otherwise specified) as City may require:
i. Worker's Compensation and Employer's Liability insurance, including All
States Endorsement, to the extent required by federal law and complying with
the laws of the State of Texas;
ii. Commercial General Liability insurance, including Blanket Contractual
Liability, Broad Form Property Damage, Personal Injury, Completed
Operations /Products Liability, Premises Liability, Medical Payments, Interest
of Employees as additional insureds, and Broad Form General Liability
Endorsements, for at least One Million Dollars ($1,000,000) Combined Single
Limit Bodily Injury and Property Damage on an occurrence basis;
iii. Comprehensive Automobile Liability insurance covering all owned, non -
owned or hired automobiles to be used by the Contractor, with coverage for at
least One Million Dollars ($1,000,000) Combined Single Limit Bodily Injury
and Property Damage.
B. Indemnification: Proposer agrees to defend, indemnify and hold harmless the
City, all of its officers, Council members, agents and employees from and
against all claims, actions, suits, demands, proceedings, costs, damages and
liabilities, including reasonable attorneys' fees, court costs and related
expenses, arising out of, connected with, or resulting from any acts or
omissions of Proposer or any agent, employee, subcontractor, or supplier of
Proposer in the execution or performance of this contract without regard to
whether such persons are under the direction of City agents or employees.
Frost can accommodate all of the City's above -noted requirements and requests.
City of Southlake RFP0910B200SJ900038 Page f5
Appendix C — Form CIQ
IIVFORM47ION RJLGARDINCr VENDOR C ONFLICT OFINT"ESFQUEbT'IONNAIRE
WHO: A person must file a conflict of interest questio with the City if the person has a
employmcmt or business relationship with an officer of the City that results in taxable income
exceeding $2,500 during the preceding twelve month period, or an officer or a member of the
officer's family has accepted $ifls with an aggregate value of more than $250 during the
previnus twelve month period snd the person engages in any of the following actions:
I_ contracts or seeks to contrdct for the sale or purebase of property, goods, or services with
the City, including; any of the thilowing:
x_ _writtrn_stnd imnlirA rnnirar rrtilii4 _.ttldd , OL,,VUJ earn
purcbmes and any purchase of goods and services by the City;
b_ contracts for the purchase or sale of real property, personal property including an
nurtion of property;
C. tax abatement and economic development agreernents;
2. submits a bid to sell goods or services, or responds to a request for proposal for services;
3. enters into negotiations with the City for a contract; or
4. applies for a tax abatement arWor economic development incentive that will result in a
rnntract with the Cary.
'.UHL FOLLOtiY NG ARE CONISIDFRTII OFFICERS OF THE CITY:
I . Mayor and City Council '.Members;
2. City Manager;
3. Board and Commission memberx appointed by the Mayor or City Council members;
4. Directors of 4A and 4B development corporations;
S. the executive directors or managers of 4A and 4B development corporations; and
6. Directors of the City of Southlake who have authority to sign contmotc on behalf of the
City.
:EXC rUSIOINS: A questionnaire statement need not be filed if the money paid to a looal
government officar was a political contribution, a gift to a member of the of ecr's family from tt
family member; a contract or purchase of less than $2,500 or a transaction at a price and subject
W 15o�IWrkeVulitr :IlKnemrs4Clnpter 17o..�CUehmeeu C,IQ.0936p@.dvo
Pap 100
City of Southlake RFP091OB200SJ900038 Page 16
Appendix C — Form CIQ (continued)
1
to terms available to the public; a payment for food, lodlong, transportation or entertainment; or
a tranmetion subject to rate or fee regulation by a govornmcntal. entity or agency.
VMATl A person or business that contracts with the City or who seeks to Contract witlt the City
must file a "conflict of interest questionnaire" (FORM CIQ) which is available onue at
www.athies.state.tx.0 and a copy of which is attached to this Guideline. The form contains
mandatory disclosures regarding "employment or business relatio" ips" with a municipal
officer. Officials may be asked to clarify or interpret various portions of the questionnaire.
«Nc The person or business must file.
I. the questiomtaim no later than seven days after the date the poison or business begins
contrast discussions or negotiations with the municipality, or sulrntits au application, responds to
a request for proposals or bids, correspondence, or other writing related to u pumid d cuntract or
agrcement with the City; and
I an updated qucstionnaire within seven days after the dale of an munt that would make a
filed questionnaire incomplete or inaccurate.
It does not matter if the submittal of a bid or proposal results in a cmntram The statute
requires a vendor to file a FORM CIQ at tho tirrre a proposal is subinitted or negotiations
cornrricncc,
VAMM. The vendor or potential vendor must nrail or deliver a oompletad questionnaire to the
Finance Department. The Finanee Deparhneni it mquifreri by law to past the saralemexdf or the
City's interne t Websile.
ENFORC E T:.Cailut+o to filo a quasdonwu r is is class c rrlisdelneanorpunishable by a $ne
not to exomd $506. it is an exception to prosecution that thu person files a FORM CIQ not later
then seven business days after the person received notioe , of violation.
NOTE: The City does not have n duty to ensure that a person files a conflict of interest
questionnaire.
WASouthIrMT bcdlaneouACIzIVSO 176.AtuWimva .CIQ.09Z69E.da
ftv2 "f 3
City of Southlake RFP0910B200SJ900038 Page 17
Appendix C — Form CIQ (Continued)
1CONFLICT OF INTEREST QUESTIONNAIRE FORM CIQ
'For vendor or other person doing business with local governmental entity
This questionnaire reflects changes made to the law by H.S. 1491, 80th Leg., Regular Session. OFFICE USE ONLY
This questionnaire is being filed in accordance with chapter 176 of the Local Government Date Received
Code by a person who has a business relationship as defined by Section 176.001 (1 -a)
with a local governmental entity and the person meets requirements under Section
176.006(a).
By Law this questionnaire must be filed with the records administrator of the local governmental
entity not later than the 7` business day after the date the person becomes aware of facts
that require the statement to be filed. See Section 176.006, Local Government Code.
A person commits an offense if the person violates Section 176.006, Local
Government Code. An offense under this section is a Class C misdemeanor.
I II Name of person who has a business relationship with local governmental entity.
None exist
❑ Check this box if you are filing an update to a previously filed questionnaire.
(The law requires that you file an updated completed questionnaire with the appropriate filing authority not
later than the 71h business day after the date the originally filed questionnaire becomes incomplete or inaccurate.)
3
Name of local government officer with whom filer has affiliation or business relationship.
NIA
Name of Officer
This section, (item 3 including subparts A, B, C, & D) must be completed for each officer with whom the filer has an employment or
other business relationship as defined by Section 176.001(1 -a), Local Government Code. Attach additional pages to this Form CIQ as
necessary.
A. Is the local government officer named in this section receiving or likely to receive taxable income, other than investment income,
from the filer of the questionnaire?
❑ Yes X ❑ No
B. Is the filer of the questionnaire receiving or likely to receive taxable income, other than investment income, from or at the direction
of the local government officer named in this section AND the taxable income is not received from the local governmental entity?
❑ Yes X ❑ No
C. Is the filer of this questionnaire employed by a corporation or other business entity with respect to which the local government officer
serves as an officer or director, or holds an ownership of 10 percent or more?
❑ Yes X ❑ No
D. Describe each employment or business relationship with the local government officer named in this section.
December 10,_ 2009
Signature g business with the governmental entity Date
Jeff Salavarria
City of Southlake RFP091OB200SJ900038 Page 18
Appendix D — No Intent to Submit Form NIA
If your firm has chosen not to submit a proposal for this procurement, please complete
this form and submit to:
City of Southlake
Purchasing Division, Department of Finance
1400 Main Street, Suite #440
Southlake, Texas 76092
Please check all items that apply:
❑ Do not sell the item(s) required ❑ Cannot provide Insurance required
❑ Cannot be competitive ❑ Cannot provide Bonding required
❑ Cannot meet specifications
highlighted ❑ Cannot comply with Indemnification
in the attached request requirement
❑ Job too large ❑ Job too small
❑ Do not wish to do business with the City of ❑ Other:
Southlake
COMPANY NAME (Please print):
Authorized Officer Name (Please print):
Telephone: {_}
Fax: ( )
City of Southlake RFP0910B200SJ900038 Page 19
Attachment "A" BROKER/DEALER CERTIFICATION FORM
as required by Texas Government Code 2256.005 (k)
CITY OF SOUTHLAKE (the "City ")
The City acknowledges that the only means the firm has to preclude imprudent investment
activities arising out of transactions between the firm and the City is to confirm that all
provisions of the City's investment policy are followed in investment transactions conducted
between the firm and the City, and the second paragraph below should be read accordingly.
I, as a registered principal for the firm Frost National Bank do hereby certify that I,
and the broker covering this account, Brad W. Johnson, have received and both
reviewed the investment policy of the City.
We acknowledge that this firm has implemented reasonable internal procedures and
controls in an effort to preclude imprudent investments between this firm and the City
arising from transactions between the City and the firm.
City of Southlake RFP091OB200SJ900038 Page 110
CERTIFICATION BY BUSINESS ORGANIZATION
This certification is executed on behalf of City of Southlake ; (the Investor) and
Frost National Bank (the Business Organization) pursuant to the Public Funds Investment
Act Chapter 2256, Texas Govemment Code (the Act) in connection with investment
transactions conducted between the Investor and the Business Organization.
The undersigned Qualified Representative of the Business Organization hereby certifies on
behalf of the Business Organization that:
The undersigned is a Qualified Representative of the Business Organization offering to
enter into an investment transaction with the Investor as such terms are used in the Public
Funds Investment Act, Chapter 2256, Texas Government Code and
2, The Qualified Representative of the Business Organization has received and reviewed the
Investment Policy furnished by the Investor and
3. The Qualified Representative of the Business Organization has implemented reasonable
procedures and controls in an effort to preclude imprudent investment transactions
conducted between the Business Organization and the Investor that are not authorized by
the entity's investment policy, except to the extent that this authorization is dependent on
an analysis of the makeup of the entity's entire portfolio or required an interpretation of
subjective investment standards.
4. The Business Organization will rely upon instructions from only the persons authorized
on behalf of City of Southlake as. stated in the Investment Policy and City's
resolution designating investment officers.
Qualified Repres i ati rofth us ess rganization
Name:
Brad W. Johnsoir/
Title:
Investment Officer
Date:
December 1, 2009
City of Southlake RFP091OB200SJ900038 Page 111
City of Southlake
Banking Components Fee Schedule
For FY2010 RFP
Excel Spreadsheet inserted
City of Southlake RFP091OB200SJ900038 Page 112
City of Southlake
Banking Components Fee Schedule
For FY2010 RFP
City of Southlake
Banking Components Fee Schedule
For FY2010 RFP
City of Southlake
Banking Components Fee Schedule
For FY2010 RFP
$10M
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City of Southlake RFP0910S200SJ900038 Page 113
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City of Southlake RFP091OB200SJ900038 Page 114
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Note. CITY OF NORWALK, CT
input Fonnat 11
Description: BOSTON BANK FILE - AP & PR
Fields: ACCT#, CHECK#, CHECK DATE, AMOUNT
Positions: 41131141231241291301391
Note: BOSTON BANK FILE FROM COBOL
Input Format 12
Description: DOCKLAND BANK FILE
Fields: ACCT #, CHECK#, CHECK DATE, AMOUNT
Positions: I I319I2012
Note: ROCKLAND BANK FILE FROM COBOL
Input Fonnat 13
Description: BEVERLY BANK INPUT FILE - AP
Fields: ACCT#, CHECK#, CHECK DATE, AMOUNT
Positions: 11161261331201251341431
Note: BEVERLY BANK FILE FROM COBOL
Input Format 14
Description: BAYBANK INPUT FILE - AP
Fields: ACCT#, CHECK#, CHECK DATE, AMOUNT
Positions: 46155121111221271121211
Note: BAYBANK BANK FILE FROM COBOL
Input Format 16
Description: NATWEST BANK FILE - AP
Fields: ACCT #, CHECK #, CHECK DATE, AMOUNT
Positions: 11101111191291341201281
Note: NATWEST BANK FILE FROM COBOL
Input Format 16
Description: SHAWMUT BANK FILE - AP & PR
Fields: ACCT #, CHECK#, CHECK DATE, AMOUNT
Positions: 11101111201341391221331
Note: SHAWMUT BANK FILE FROM COBOL
City of Southlake RFP091OB200SJ900038 Page 115
Input Format 17
Description: KEY BANK FILE - AP
Fields: ACCT#, CHECK #, CHECK DATE, AMOUNT
Positions: Ill 21131221241291301391
Note: KEYBANK BANK FILE FROM COBOL
Input Format 18
Description: NORTHERN BANK FILE - PR
Fields: ACCT#, CHECK#, CHECK DATE, AMOUNT
Positions: 5114115 1221391441251341
Note: NORTHERN BANK FILE FROM COBOL
Input Format 19
Description: NBSC- CHARLESTON COUNTY SCHOOLS
Fields: ACCT #, CHECK#, CHECK DATE, AMOUNT
Positions: 11101211301311361111201
Note: CHARLESTON COUNTY SCHOOLS - AP RECON
Input Format 20
Description: IREDELL COUNTY - AP CHECK RECON FORMAT
Fields: ACCT #, CHECK#, CHECK DATE, AMOUNT
Po sltlons: 01011151111161171281
Note: IREDELL COUNTY AP RECON
Input Format 21
Description: BOWLING GREEN BANK & TRUST - PR & AP
Fields: ACCT #, CHECK#, CHECK DATE, AMOUNT
Positions: 1110121130131136111 1201
Note: KENTUCKY - BOWLING GREEN BANK & TRUST
Input Format 22
Description: FLEET BANK -PAID DATE YYMMDD
Fields: ACCT #, CHECK #, PAID DATE, AMOUNT
Positions: 34143101 11012833111 1211YYMMDDI
Note: FLEET BANK - PAYROLL CHECK RECON FILE
Input Format 23
Description: APIPAYROLL CHECK RECON FORMAT FOR FAYETTE COUNTY - BANK ONE
Fields: ACCT#, CHECK#, CHECK DATE, AMOUNT
Positions: 1191161231101151241331
Note: FMI, contact Garry Hoover
4
City of Southlake RFP091OB200SJ900038 Page 116
Input Format 24
Description: FIRST CITIZEN'S BANK - IREDELL COUNTY AP & PR CHECK RECON.
Fields: ACCT#, CHECK#, CHECK DATE, AMOUNT
Positions: 2912911161111161171281
Note: IREDELL COUNTY AP & PR CHECK RECON.
Input Format 25
Description: LUMBEE GUARANTY BANK - ROBESON COUNTY - AP & PR CHECK RECON
Fields: ACCT #, CHECK#, CHECK DATE #, AMOUNT
Positions: 71161431501511601331421
Note: LUMBEE GUARANTY BANK -AP & PR RECON
Input Format 26
Description: PEOPLE'S FIRST BANK - CALLOWAY COUNTY KT - PR
Fields: ACCT #, CHECK#, CHECK DATE, AMOUNT
Positions: 11811181291361161261
Note: GALLOWAY COUNTY KENTUCKY - PR RECON
Input Format 27
Description: TONAWANDA PAYROLL CHECK RECON - BANK UNKNOWN
Fields: ACCT #, CHECK#, CHECK DATE, AMOUNT
Positions: 1181101161171221231311
Nate: TONAWANDA PAYROLL CHECK RECON
Input Format 28
Description: AP CHECK RECON FOR BARNETT BANK- CITY OF PORT ST. LUCIE
Fields: ACCT#, CHECK#, CHECK DATE, AMOUNT
Positions: 11101111201371421211301
Note: CITY OF PORT ST. LUCIE - AP CHECK RECON -
Input Format 29
Description: BEAVER DAM BANK - CHECK RECON
Fields: ACCT #, CHECK#, CHECK DATE, AMOUNT
Positions: 1
Note- OHIO COUNTY KENTUCKY
Input Format 30
Description: TRANS - FINANCIAL BANK - CHECK RECON
Fields: ACCT #, CHECK#, PAID DATE, AMOUNT
Positions: 118120126127132191191
Note: FLOYD COUNTY, KENTUCKY
5
City of Southlake RFP091OB200SJ900038 Page 117
,Y
Input Format 39
Description: ACCT 6 -15, CH K 42 -49, AMT 26 -35, DATE 36-41
Fields: ACCT*, CHECK#, PAID DATE, AMOUNT
Positions: 61151421491361411261351
Note: NATIONS BANK OF KENTUCKY
Input Format 32
Description: ACCT 3 -12, CHK 13-20, AMT 27 -36, DATE 21 -26
Fields: ACCTA CHECK#, PAID DATE, AMOUNT
Positions: 31121131201211261271361
Note: FARMERS BANK & CAPITAL TRUST
Input Format 33
Description: FIRST CITIZENS BANK - HAYWOOD COUNTY AP & PR CHECK RECON
Fields: ACCT #, CHECK#, CHECK DATE, AMOUNT
Positions: 29129111101111161171281
Note: HAYWOOD COUNTY AR & PAYROLL CHECK RECON
Input Format 34
Description: KEY BANK - AP CHECK RECON FOR BATH, ME
Fields: ACCT #, CHECK#, DATE, CHECK AMOUNT
Positions: 61151'161251361411261351
Note: Positions = STARTIENDISTARTIENDI
Input Format 35
Description: CHASE MANHAT'T'AN BANK
Fields: ACCOUNT, CHECK, DATE, AMOUNT
Positions: 11911 Oil 91371421201301
Note: CITY OF ELMIRA, NY
Input Format 36
Description: WACHOVIA BANK - UNION COUNTY AP & PR CHECK RECON FORMAT
Fields: ACCT#, CHECK #, CHECK DATE, AMOUNT
Positions: 11101111201311371211301
Note: UNION COUNTY AP & PR CHECK RECON
Input Format 37
Description: FIRST OF AMERICA
Fields: ACCT #, CHECK#, PAID DATE, AMOUNT
Positions: 41131271341351401141231
Note: KALAMAZOO PUBLIC SCHOOLS, MI
6
City of Southlake RFP091OB200SJ900038 Page 118
Input Format 38
Description: WHITLEY COUNTY. KY
Fields: ACCT #, CHECK#, PAID DATE, AMOUNT
Positions: 41 131 14123131 [361491581
Note: WHITLEY COUNTY, KY
Input Format 39
Description: AP/PR CHECK RECON FOR FAYETTE COUNTY- FIFTH THIRD BANK
Fields: ACCT#, CHECK#, CHECK DATE, AMOUNT
Positions: 31121131221231281301391
Note: Questions? Contact Gary Hoover July 2004
Input Format 40
Description: KENTUCKY BANK
Fields: ACCOUNT #, CHECK#, PAID DATE, AMOUNT
Positions: 121 16141 X48151 156131 140
Nate: BOURBON COUNTY
Input Format 41
Description: FIRST UNION
Fields: ACCOUNT, CHECK, PAID DATE, AMOUNT
Positions: 011131141231341411241331YYYYMMDD
Note: FIRST UNION
Input Format 42
Description: BANK BOSTON
Fields; ACCOUNT *, CHECK#, PAID DATE, AMOUNT
Positions: 1 110138145131 [36121 1301MMDDYY
Note: BANK BOSTON
Input Format 43
Description: BANK SERVICES OF VIRGINIA, INC.
Fields: ACCT #, CHECK#, CHECK DATE, AMOUNT
Positions: 1 ] 121 13120135142 1251341YYYYMM DD
Note: CITY OF MARTINSVILLE, VA
Input Format 44
Description: FIRSTAR BANK
Fields: ACCT#, CHECK, PAID DATE, AMOUNT
Positions: 31121131221331381231 321
City of Southlake RFP091OB200SJ900038 Page 119
Input Format 46
Description: WHITAKER BANK - SCOTT COUNTY
Fields: ACCT #, CHECK#, PAID DATE, AMOUNT
Positions: 1110111120121125 1271361
Note: WHITAKER BANK - SCOTT COUNTY, KY
Input Format 46
Description: REGIONS BANK
Fields: ACCT #, CHECK#, DATE PAID, AMOUNT
Positions: 101261491631301371174 1 1931
Note: FLOYD COUNTY, GA
Input Format 47
Description: KENTUCKY BANK - SCOTT COUNTY
Fields: ACCT #, CHECK#, DATE PAID, AMOUNT
Positions: 12116143 1501531601331421
Note: KENTUCKY BANK - SCOTT COUNTY
Input Format 48
Description: OLD NATIONAL BANK
Fields: ACCT #, CHECK #, CHECK DATE, AMOUNT
Positions: 231321331471611661481601YYMMDD
Note: MUHLENBERG, KY
Input Fonnat 49
Description: COMMUNITY TRUST BANK
Fields: ACCOUNT #, CHECK#, PAID DATE, AMOUNT
Positions: 011111121201211281291371YYYYMMOD
Note: COMMUNITY TRUST BANK, N.A.
Input Format 50
Description: BEVERLY NATIONAL BANK
Fields: ACCT, CHECK NUM, DATE, AMOUNT
Positions: 311213314216315BI431521YYMMDD
Note: BEVERLY NATIONAL BANK (PR)
Input Format 51
Description: CCB - CENTRAL CAROLINA BANK
Fields: ACCT #, CHECK#, PAID DATE, AMOUNT
Positions: 41131221311381431511601YYMM DD
Note: CENTRAL CAROLINA BANK
City of Southlake RFP091OB200SJ900038 Page 120
Input Format 52
Description: CHASE MANHATTAN DELAWARE
Fields: ACCT#, CHECK#, PAID DATE, AMOUNT
Positions: 011091101161171221231311
Note: CHASE MANHATTAN DELAWARE
Input Format 53
Description, BANK OF AMERICA - STANDARD ACCOUNT RECONCILIATIONS
Fields: ACCT #, CHECK#, PAID DATE, AMOUNT
Positions: 11121161251381431261371
Note: BANK OF AMERICA -STD ACCT RECONCILIATION
Input Format 54
Description: MORGANTOWN BANK & TRUST
Fields: ACCT #, CHECK#, CHECK DATE, AMOUNT
Positions: 11911 D1191201251261351
Note: MORGANTOWN, KY
Input Format 55
Description: FLEET BANK - PAID DATE MMDDYY
Fields: ACCT #, CHECK#, PAID DATE, AMOUNT
Positions: 3414310111 0128133111 1211
Note: FLEET BANK - CHECK RECONCILIATION FILE
Input Format 56
Description: FLEET BANK - CHECK DATE MMDDYY
Fields: ACCT #, CHECK#, CHECK DATE, AMOUNT
Positions: 34 1431011101221271111211
Note: FLEET BANK- CHECK RECONCILIATION FILE
Input Format 97
Description: HIBERNIA BANK CHECK RECONCILIATION
Fields: ACCT #, CHECK#, CHKCLR DATE, AMOUNT
Positions: 1113115 1201311361211301
Note: HIBERNIA BANK CHECK RECONCILIATION
Input Format 58
Description: M & T BANK - TONAWANDA
Fields: ACCOUNT #, CHECK#, PAID DATE, AMOUNT
Positions: 1 1151161251381431261371MMDDYY
Note: M & T BANK Input Format
City of Southlake RFP091OB200SJ900038 Page 121
Input Format 59
Desorlptlon: COMERICA BANK
Fields: Acct #, Chk #, Date Pd, Amount
Positions: 111 Oil 21211231281301391
Note: COMERICA BANK FORMAT STARTIENDISTARTIEND
Input Format 60
Description: PEOPLES HERITAGE BAI FORMAT
Fields: ACCT #, CHECK#, PAID DATE, AMOUNT
Positions: 712313614511161241351YYMMDD
Note: PEOPLES HERITAGE BAI -Input Format ALTE
Input Format fit
Description: NORTH SHORE COMMUNITY BANK - AP & PR
Fields: ACCT #, CHECK #, DATE CLEARED (MMDDYY), AMOUNT
Positions: 11101211301311361111201
Note: NORTH SHORE COMMUNITY BANK
Input Format 62
Description: BANK OF AMERICA, FULL DATE
Fields: ACCT #, CHECK#, PAID DATE, AMOUNT
Positions: 11121161251381461261371
Note: BANK OF AMERICA - FULL DATE
Input Format 63
Description: BATH SAVINGS BANK - CSV FILE
Fields: ACCT #, CHECK*, PAID DATE, AMOUNT
Positions: 1 1 2 1 6 1 3 1
Note: BATH SAVINGS BANK
Input Format 64
Description: BANK OF AMERICA TEXAS - AP & PR
Fields: ACCOUNT #, CHECK#, CLEAR DATE (MMDDYY ), AMOUNT
Positions: 11101181231361411241351
Note: BANK OF AMERICA TEXAS
Input Format 65
Description: PR PEOPLES HERITAGE BAI FORMAT
Fields: ACCT #, CHECK#, PAID DATE, AMOUNT
Positions: 711612913811161171281YYMMDD
Note: PR PEOPLES HERITAGE BAI - Input Format A
10
City of Southlake RFP091OB200SJ900038 Page 122
Input Format 66
Description; WEST AMERICA BANK FORMAT
Fields: ACCT #, CHECK #, PAID DATE, AMOUNT
Positions: 10118149158130137117411841
Note: POSITIONS = STARTIENDISTARTIEND
Input Format 67
Description: BANK OF COMMERCE AND TRUST
Fields: ACCT #, CHECK #, PAID DATE, AMOUNT
Positions: 1 1 2 1 6 1 3 1
Input Format 68
Description: BANKAMERICA
Fields: ACCOUNT, CHECK #, PAID DATE, AMOUNT
Positions: 1110111 j20131136121130IMMDDYYI
Note: BANK AMERICA
Input Format 68
Description: GATEWAY NATIONAL BANK
Fields: ACCOUNT#, CHECK #, CHECK DATE, AMOUNT
Posit €ons: 61121231301311361131221
Note: GATEWAY NATIONAL BANK
Input Format 71
Description: MARICOPA COUNTY
Fields: ACCT #, CHECK #, CHECK DATE, AMOUNT
Positions: 113110118142151152161
Note: MARICOPA COUNTY
Input Format 73
Description: BANK OF THE CAROLINAS
Fields: ACCT #, CHECK #, PAID DATE, AMOUNT
Positions: 316181171361431181271
Note: POSITIONS = STARTIENDI; DATE = MMDDYYYY
Input Format 74
Description: Bank of the West (BW)
ACCT #,CHECK#,PAID DATE,AMOUNT
118191161191241251341
Note: 116 = STARTIEND; PAID DATE = MMDDYY
Input Format 75
Description: WELLS FARGO
Fields: ACCT #, CHECK #, PAID DATE, AMOUNT
Positions: 1110111120131136121130
Note: STARTIENDI; PAID DATE = MMDDYY
11
City of Southlake RFP091OB200SJ900038 Page 123
Input Format 76
Description: WEBSTER BANK, NORTH HAVEN, CT
Fields: ACCT #, CHECK #, PAID DATE, AMOUNT
Posltlons: 1 110111 1201341391221331
Note: STARTIENDI; PAID DATE MMDDYY
Input Format 78
Description: BANCO POPULAR (BP)
Fields: ACCT#,CHECK#,PAID DATE,AMOUNT
Positions :1191101191281331201271
Note: 119: STARTIEND;DATE= MMDDYY
Input Format 80
Description: US BANK OUTPUT FORMAT FOR AP CHECK RECON
Fields: Acct 3 -14, Check # 15 -24, Date paid 37 -44, Amcunt 25 -35
Positions: 31141151241371441251361MMDDYYYY
PAID CHECK FORMAT FROM US BANK
Input Format 81
Description: NATIONAL CITY BANK PAID CHECK FILE
Fields: Acct 4 -9, Check # 40.48, Date paid 25-30, Amount 13-24
Positions: 4191401481251301131241YYMMDDI
Note: PAID CHECKS FOR INGHAM COUNTY
Input Format 82
Description: NATIONAL CITY BANK (INGHAM PAYROLL)
Fields: ACCT #, CHECK#, PAID DATE, AMOUNT
Positions: 41131261311381431501591
Note: PAYROLL PAID CHECK IMPORT
Input Format 83
Description: CLINTON COUNTY, NY
Fields: ACCT #, CHECK #, CHECK DATE, AMOUNT
Positions: 11101211301311381111201 MM DDYYYY
Note: CLINTON COUNTY, NY
Input Format 84
Description: NORTHFORK BANK
Fields: ACCOUNT, CHECK #, PAID DATE, AMOUNT
Positions: 11101111201311361211301 MMDDYYI
Note: NORTHFORK BANK
12
City of Southlake RFP091OB200SJ900038 Page 124
Input Format 85
Description: MELLON BANK
Fields: ACCT #, CHECK# CHECK DATE, AMOUNT
Positions: 231321331421531581431521YYMMDDI
Note: MELLON BANK
Input Format 86.
Description: USVI - FIRST BANK
1-8 Not Used
9 -18 Account Number
1924 Spaces
25-36 Amount
27-44 Date (MMDDYYYY)
45-54 Check Number
44 First Bank Use Only
Input Format 69
Description: ACCT 1 -20, CHK 30 -39, AMT 60-59
Fields: ACCT #, CHECK #, PAID DATE, AMOUNT
Positions: 11201301391501551601691
Note: Positions = STARTIENDISTARTIENDI
Input Format 1131
Description: BANK NORTH STANDARD PAID FILE
Fields: ACCT#, SERIAL #, PAID DATE, PAID AMOUNT
Positions: 131221421511251301311411
Note: BANK NORTH STANDARD PAID FILE
Input Format ST
Description: SUN TRUST BANK
Fields: ACCT #,Check#,PAID DATE, AMOUNT
Positions: 4113122131 X38143151 1601YYMMDD
Import Format W3
Description: WACHOVIA WITH PAYEE MATCH
Fields: ACCOUNT #, CHECK #, AMOUNT, PAID DATE
Positions: 01113114123124133134141 jYYYYMMDD
13
City of Southlake RFP091OB200SJ900038 Page 125
Input Format WS
Description: Williamson County Schools
1 -3 fund
33 — 42 check number
111 —124 check amount
929 —136 date reconciled
Input Format X1
Description: TESTING DATE FORMAT MMDDYYYY
Fields: ACCT #, CHECK #, DATE CLEARED, AMOUNT
Positions: Ill Oil 1 120131)38121 130]MMDDYYYY
Note: TESTING MMDDYYYY
Input Format for Bank of the Carolinas
1 Branch number 1 -2 2
2 Account (client) number 3 -6 4
3 Check issued1paid status 71
4 Check number 8 -1710
5 Amount 18-27 10
6 Issue Date ( MMDDYYYY) 28-35 8
7 Paid Date ( MMDDYYYY) 36-43 8
8 Bank Trace number 44-56 13
Input Format for Bank of West
ACCT #,CHECK#, PAID DATE,AMOUNT
118191161191241251341
Long description: 118 = STARTIEND; PAID DATE = MIVIDDYY
Input Format - Wells Fargo Bank (2005.03)
HEADER RECORD: 1 -2 Always 'H1'
3 Space
4 -13 Account Number
Length 80, other fields ignored.
DETAIL RECORD: 1 -3 R12 for Paid Check report
4 -13 Serial Number (Check #)
23 -32 Amount
33 -38 Paid date
Length 80 -164, other fields ignored.
TRAILER RECORD: 1 -2 Always `Ti'
Length 80, other fields ignored.
February 2009
14
City of Southlake RFP091OB200SJ900038 Page 126
Payment Processing
1 Lockbox Payment Processing MUMS Vers 6
Appendix A - NIUNIS® Standard Lock Box Layout
Rayissd 12/20/2006
Batch Header Record layout
Detail (Payment) Record Layout
FIELD NAME
COLI-JUNS CHAR TYPE VALUF.
Filler
TYPE
VALUE
FIELD W[AF
Batch Header Record Identifier
COU WINS
1
CHAR
1
A/N
Detail Category Code
Batch Amount
2 -11
10
N
Total of the payment
records for the batch.
The decimal is implied.
Payment Date
12 -19
8
NN
MMDDYYYY
Bank Code/Cashier
20-23
4
N
Lock Box Co. info.
Batch Number
24 -27
4
N
Lock Box Co. Info.
Filler
28 -80
53
A/N
spaces
Detail (Payment) Record Layout
FIELD NAME
COLI-JUNS CHAR TYPE VALUF.
Filler
1 -3 3 AIN spaces
Extracted from the
Detail Category Code
4fv
2
N
scan line. 20 =real
estate
Detail Bill Year
6-9
4
N
YYYY
Extracted from the
scan line.
Extracted from the
Detail Bill Number
10 -17
8
N
scan line.
Payment amount. The
Detail Amount Paid
18 -27
10
N
decimal is implied
Batch Number
28-31
4
N
Lock Box Co. info
Filler
32-80
49
A/N
spaces
Page 8 of 14
City of Southlake RFP091OB200SJ900038 Page 127
Payment Processing
Lockbox Payment Processing MUNIS Version 6
Appendix B - MUNIS Questpoint Lock Box Layout
Batch Header Record Layout
COLUMNS
VALUE
FILI.D NAME
Batch Header Record
COLUMNS CHAR TYPE
1 1 AM
"H°
Identifier
2
N
scan line. 20 =real
Total of the payment
Batch Amount
2 -11
10
N
records for the batch.
YYYY
Extracted from the
The decimal is implied.
Payment Date
12 -19
a
AIN
MMDDYYYY
Bank Code/Cashier
20 -23
4
N
Lock Box Co. info.
Batch Number
24 -27
4
N
Lock Box Co. info.
Filler
28-80
55
AM
spaces
Detail (Payment) Record Layout
FIELD NAME
COLUMNS
CHAR
TYPE
VALUE
Extracted from the
Detail Category Code
1 -2
2
N
scan line. 20 =real
estate
Detail Bill Year
3 -6
4
N
YYYY
Extracted from the
scan line.
Detail Bill Number
7 -14
8
N
Extracted from the
scan line.
Detail Amount Paid
15 -24
10
N
Payment amount. The
decimal is implied.
Payment Date
25 -32
8
N
MMDDYYYY
Bank Code /Cashier
33 -36
4
N
Lock Box Co. Info.
Batch Number
37-40
4
N
Lock Box Co. info.
Filler
41 -60
40
AIN
spaces
Page 8 of 11
1
City of Southlake RFP091OB200SJ900038 Page 128
Payment Processing
Lockbox Payment Processing MUNIS version &
Appendix C - MUNIS Property Lock Box Layout "
R h u—Aar RCPn I svnut
Detail (Payment) Record Layout
FIF-LD NAME
Filler
COLUMNS
1 -3
CHAR
3
TYPE
VALUE
FIELD NAME
Batch Header Record Identifier
COLUMNS
1
CHAR
1
A/N
"
Batch Amount
2 -11
10
N
Total of the payment
records for the batch.
The decimal is implied.
Payment Date
12 -19
8
AM
MMDDYYYY
Bank Code /Cashier
20-23
4
N
Lock Box Co. info.
Batch Number
24 -27
4
N
Lock Box Co. Info.
Filler
28 -130 1
53
A/N
spaces
Detail (Payment) Record Layout
FIF-LD NAME
Filler
COLUMNS
1 -3
CHAR
3
TYPE
A
VALUE
SPACE
Bill Category
4 -5
2
N
Format ON; Extracted
from scan line.
Format YYYY;
Bill Year
6-9
4
N
Extracted from scan
line
Bill Number
10 -17
8
N
Extracted from scan
line
UB account ("* *LEFT
Property Code
18-47
30
A
JUSTIFY AND SPACE
FILL THE DATA IN
THIS FIELD*")
Amount Paid
48-57
10
N
Payment Amount.
Decimal implied
Payment Reference (check
58 -73
16
A
Optional
No)
Format �1#
Paid by CID
F74-82
g
N
Optional
Page 10 of 11
City of Southlake RFP0910B200SJ900038 Page 129
Payment Processing
Lockbox Payment Processing MUMS Version 8
Paid By Name
83 -102
20
A
Optional
Paid By Address 1
103 -132
30
A
Optional
Paid By Address 2
133 -162
30
A
Optional
Paid By City
163 -182
20
A
Optional
Paid By State
183 -184
2
A
Optional
Paid By Zip
185 -194
10
A
Optional
Customer Number for UB
Sites processing byAccVCID.
"Note: If client is processing
using Ac:ct1CID and no CID or
19 -203
9
N
Format
an invalid CID for the account
is provided the payment will
not process.
Filler
203 -259
56
A
SPACE
* **When using this
layout; EITHER Bill
Year /Number OR
Property Code should
be used.
If a Bill YearlNumber is
passed In then these
will be used to pay the
bill and the properly
code will be ignored.
If paying by property
code then the Bill
Year/Number must be
blank.
Page T t of 11
City of Southlake RFP091OB200SJ900038 Page 130
v CITY OF
S
TEXAS
City of Southlake Texas
INVESTMENT POLICY
Amended September 2009
City of Southlake RFP0910B200SJ900038 Page 131
CITY OF SOUTHLAKE, TEXAS
INVESTMENT POLICY
TABLE OF CONTENTS
I . Purpose ..................................................................................... ..............................
A. Formal Adoption
B. Scope
C. Review and Amendment
II. Investment Strategy .................................................................. ..............................I
A. Operating Funds
B. Debt Service Funds
C. Debt Service Reserve Funds
D. Special Projects, Special Purpose, or Construction Funds
III. Responsibility and Control ....................................................... ..............................
A. Delegation of Authority and Training
B. Internal Controls
C. Ethics and Conflict of Interest
D. Prudent Investment Management
IV. Investment Objectives .............................................................. ..............................
A. Safety of Principal
B. Liquidity
C. Yield
D. Public Trust
V. Investment Portfolio ................................................................. ..............................
A. Eligible Investments
B. Unauthorized Investments
VI Safekee in and Custody .................................. ..............................8
p g ......................
A.
Collateralization
B.
Allowable Collateral and Collateral Levels
C.
Monitoring Collateral Adequacy and Additional Collateral Securities
D.
Collateral Substitution
E.
Safekeeping
F.
Delivery versus Payment
VII. Selection of Banks and Dealers ....................................... ...............................
A.
Depository Selection
B.
Investment Advisors
C.
Selection of Investment Broker /Dealers and Advisors
D.
Approved Broker /Dealers and Investment Advisors
VIII Reporting ......................................................................... ...............................
A.
Quarterly Reporting
Appendix"A"
- Certification ................................................... ...............................
Appendix "B"
- Glossary of Common Treasury Terminology ...............................
I. PURPOSE
..11
12
14
15
City of Southlake RFP091OB200SJ900038 Page 132
A. Formal Adoption. The purpose of this document is to set forth specific investment policy
and strategy guidelines for the City of Southlake, Texas in order to achieve the goals of
safety, liquidity, yield, and public trust for all investment activity. This Investment Policy
is authorized by the City Council in accordance with Chapter 2256, Texas Government
Code (the "Public Funds Investment Act ").
B. Scope. This Investment Policy applies to all the investment activities of the City,
excluding funds governed by Council approved trust agreements and assets administered
for the benefit of the City by outside agencies. In addition to this Policy, bonds funds (as
defined by the Internal Revenue Service) shall be managed by their governing ordinance
and all applicable State and Federal Law.
C. Review and Amendment. The City Council of the City of Southlake shall review its
investment strategies and policy not less than annually.
II. INVESTMENT STRATEGY
The City of Southlake maintains one portfolio in which all funds under the City's control are pooled
for investment purposes. Within the pooled portfolio are fund components, each having an investment
strategy as described below:
A. Investment strategies for operating funds are to assure that anticipated cash flows are
matched with adequate investment liquidity. The secondary objective is to create a
portfolio structure which will experience minimal volatility during economic cycles. This
may be accomplished by purchasing high quality, short to medium term securities which
will complement each other. A dollar weighted- average maturity of 365 days or less will
be calculated using the stated final maturity date of each security.
B. Investment strategies for debt service funds shall have as the primary objective the
assurance of investment liquidity adequate to cover the debt service obligation on the
required payment date. Securities purchased shall not have a stated maturity date which
exceeds the debt service payment date.
C. Investment strategies for debt service reserve funds shall have as the primary objective
the ability to generate a dependable revenue stream to the appropriate debt service fund
from securities with a low degree of volatility. Securities should be of high quality and,
except as may be required by the bond ordinance specific to an individual issue, of short
to medium term maturities.
D. Investment strategies for special projects, special purpose, or construction fund portfolios
will have as their primary objective the assurance that anticipated cash flows are matched
with adequate investment liquidity. These portfolios should include at least 10% in highly
liquid securities to allow for flexibility and unanticipated project outlays. The stated final
maturity dates of securities held should not exceed the estimated project completion date.
III. RESPONSIBILITY AND CONTROL
A. Delegation of Authority and Training. The Director of Finance and Deputy Director of
Finance Administration are designated as Investment Officer(s) of the City and are
responsible for investment decisions and activities. The Director of Finance will retain
ultimate responsibility for investment decisions. The Director of Finance, the Assistant
Director, and any members of the Investment Committee must attend an investment
training session on the Act not less than once in a two -year period and receive not less
than 10 hours of instruction relating to investment responsibilities under this subchapter
from an independent source approved by the Southlake City Council.
B. Internal Controls. The Investment Officer is responsible for establishing and maintaining
an internal control structure designed to ensure that the assets of the City are protected
City of Southlake RFP0910B200SJ900038 Page 133
from loss, theft or misuse. The internal control structure shall be designed to provide
reasonable assurance that these objectives are met. The concept of reasonable assurance
recognizes that the cost of a control should not exceed the benefits likely to be derived.
The City, in conjunction with its annual financial audit, shall perform a compliance audit
of management controls on investments and adherence to the City's investment policy
and strategy.
C. Ethics and Conflicts of Interest. City staff involved in the investment process shall refrain
from personal business activity that could conflict with proper execution of the
investment program, or which could impair the ability to make impartial investment
decisions. The Investment Officer who has a personal business relationship with an entity
seeking to sell an investment to the City shall file a statement disclosing that personal
business interest with the Texas Ethics Commission and the City Council. For purposes
of this subsection, an investment officer has a personal business relationship with a
business organization if.
1. The Investment Officer owns 10 percent or more of the voting stock or shares of
the business organization or owns $5,000 or more of the fair market value of the
business organization;
2. funds received by the investment officer from the business organization exceed 10
percent of the investment officer's gross income for the previous year; or
3. the investment officer has acquired from the business organization during the
previous year investments with a book value of $2,500 or more for the personal
account of the investment officer.
D. Prudent Investment Management. The designated Investment Officer {s} shall exercise the
judgment and care, under prevailing circumstances, that a prudent person would exercise
in the management of the person's own affairs. Unless authorized by law, a person may
not deposit, withdraw, transfer, or manage in any other manner the funds of the City.
Investment Officers, acting in accordance with written procedures and exercising the
proper standard of care, shall be relieved of personal responsibility for an individual
security's credit risk or market price changes, provided that this Policy and written
procedures were followed. In determining whether an Investment Officer has exercised
the proper standard of care, all investments over which the individual had responsibility
will be considered rather than a single investment.
IV. INVESTMENT OBJECTIVES
The City of Southlake shall manage and invest its cash with four objectives, listed in order of priority:
Safety, Liquidity, Yield, and Public Trust. The safety of the principal invested always remains the
primary objective. All investments shall be designed and managed in a manner responsive to the
public trust and consistent with State and Local law.
A. Safety of Principal. The City shall seek to control the risk of loss due to the failure of a
security issuer or grantor. Such risk shall be controlled by investing only in the safest
types of securities as defined in Section V -A of this Policy, through portfolio
diversification by investment type and maturity, and by collateralization as required by
law.
1. Diversification by Investment Type. Diversification by investment type shall be
maintained by ensuring an active and efficient secondary market in portfolio
investments and by controlling the market and opportunity risks associated with
specific investment types. Bond proceeds may be invested in a single security or
investment which exceeds the City's maximum percentages if the Investment
Officer determines that such an investment is necessary to comply with Federal
City of Southlake RFP091OB200SJ900038 Page 134
arbitrage restrictions or to facilitate arbitrage record keeping and calculation.
Diversification by investment type shall be established by the following maximum
percentages of investment type to the total investment portfolio:
a. U.S. Government Securities 100%
b. Municipal Obligations 50%
C. Repurchase Agreements 50%
d. Certificates of Deposit 100%
e. Bankers Acceptances 20%
f. Commercial Paper 20%
g. Money Market Mutual Funds 50%
h. Eligible Investment Pools 100%
2. Diversification by Investment Maturity. In order to minimize risk of loss due to
interest rate fluctuations, investment maturities will not exceed the anticipated cash
flow requirements of the funds. The City of Southlake intends to match the holding
periods of investment funds with liquidity needs of the City. The maximum final
stated maturity of any investment shall not exceed five years. Maturity guidelines
by fund are as follows:
a. Operating Funds. The weighted average days to maturity for the operating
fund portfolio shall be 365 days or less and the maximum allowable maturity
shall be three years.
b. Debt Service Funds. Debt Service Funds shall be invested to ensure adequate
funding for each consecutive debt service payment. The Investment Officer
shall invest in such a manner as not to exceed an "unfunded" debt service
date with the maturity of any investment. An unfunded debt service date is
defined as a coupon or principal payment date that does not have cash or
investment securities available to satisfy said payment.
C. Debt Service Reserve Funds. Market conditions, Bond Resolution constraints
and Arbitrage regulation compliance will be considered when formulating
Reserve Fund strategy. Maturity limitation shall generally not exceed the call
provisions of the Bond Ordinance and shall not exceed the final maturity of
the bond issue. All Debt Service Reserve Fund investment maturities shall
not exceed five years.
d. Special Project, Special Purpose, and Construction Funds. The funds used for
construction and capital improvement programs have reasonable predictable
draw down schedules. Therefore investment maturities shall generally follow
the anticipated cash flow requirements. Investment pools and money market
mutual funds shall provide readily available funds generally equal to one
month's anticipated cash flow needs, or a competitive yield alternative for
short term fixed maturity investments. A singular repurchase agreement may
be utilized if disbursements are allowed in the amount necessary to satisfy
any expenditure request, this investment structure is commonly referred to as
a flexible repurchase agreement. All earnings will be segregated and made
available for any necessary payments to the U.S. Treasury.
3. Collateralization. Collateralization of securities will be made in compliance with
Section VI of this Policy.
City of Southlake RFP091OB200SJ900038 Page 135
B. Liquidity. Liquidity shall be achieved by anticipating cash flow requirements, by
investing in securities with active secondary markets and by investing in eligible money
j market mutual funds and local government investment pools. A security may be
liquidated to meet unanticipated cash requirements, to redeploy cash into other
investments expected to outperform current holdings, or otherwise to adjust the portfolio.
C. Yield. The City of Southlake's investment portfolio shall be designed with the objective
of attaining a market rate of return throughout budgetary and economic cycles, taking
into account investment risk constraints and cash flow characteristics of the portfolio.
D. Public Trust. Investments shall be made with judgment and care, under circumstances
then prevailing, which persons of prudence, discretion and intelligence exercise in the
management of their own affairs, not for speculation, but for investment, considering the
probable safety of capital as well as the probable income to be derived.
V. INVESTMENT PORTFOLIO
A. Eligible Investments. Investments described below are authorized by Chapter 2256,
Texas Government Code as eligible securities for the City. City funds governed by this
Policy may be invested in:
1. Obligations of the United States or its agencies and instrumentalities, excluding
principal -only and interest -only mortgage backed securities, and collateralized
mortgage obligations and real estate mortgage investment conduits.
2. Direct obligations of the State of Texas, or its agencies and instrumentalities.
3. Other obligations, the principal and interest on which are unconditionally
guaranteed or insured by, or backed by the full faith and credit of, the State of
Texas or the United States or their respective agencies and instrumentalities,
excluding all securities specifically listed as "Unauthorized Investments" in section
V.B. of this Policy.
4. Obligations of states, agencies, counties, cities, and other political subdivisions of
any State having been rated as to investment quality by a nationally recognized
investment rating firm and having received a rating of not less than "A" or its
equivalent.
5. Fully collateralized repurchase agreements having a defined termination date,
placed through a primary government securities dealer, as defined by the Federal
Reserve, or a financial institution doing business in this state, and secured by
obligations described in Section V -A 1 above which are eligible investments under
the Public Funds Investment Act, pledged with a third party selected and approved
by the City, and having a market value of not less than the principal amount of the
funds disbursed. The term includes direct security repurchase agreements and
reverse repurchase agreements structured in compliance with the Texas
Government Code. All City repurchase agreement transactions shall be governed
by a signed Master Repurchase Agreement. The term of any reverse repurchase
agreement shall not exceed 90 days.
6. Certificates of deposit issued by a depository institution with its main office or a
branch office in the State of Texas that is :
a. guaranteed or insured by the Federal Deposit Insurance Corporation or its
successor; or, secured by obligations that are described by Section V -A I
through 4 above, which are intended to include all direct Federal agency or
instrumentality issued mortgage backed securities, but excluding those
mortgage backed securities of the nature described in Section V -B, that have
City of Southlake RFP0910B200SJ900038 Page 136
a market value of not less than the principal amount of the certificates or in
any other manner and amount provided by law for deposits of the City;
b. governed by a Depository Contract, as described in Section VII -A, that
complies with Federal and State regulation to properly secure a pledged
security interest; and, c, solicited for bid orally, in writing, electronically, or
any combination of those methods.
7. Bankers' acceptances that:
a. have stated maturities of 270 days or fewer,
b. will be liquidated in full at maturity,
C. is eligible for collateral borrowing from a Federal Reserve Bank; and,
d. is accepted by a bank organized and existing under the laws of the United
States or any state, if the short -term obligations of the bank, or of the bank
holding company of which the bank is the largest subsidiary, are rated not
less than "A -1" or "P -1" or an equivalent rating by at least one nationally
recognized credit rating agency.
Commercial paper with a stated maturity of 270 days or less from the date of
issuance that either:
a. is rated not less than "A -1 ", "P -1 ", or the equivalent by at least two nationally
recognized credit rating agencies; or
b. is rated at least "A -I ", "P -1 ", or the equivalent by at least one nationally
recognized credit rating agency and is fully secured by an irrevocable letter
of credit issued by a bank organized and existing under the laws of the
United States or any state thereof.
9. Money market mutual funds regulated by the Securities & Exchange Commission,
with a dollar weighted average portfolio maturity of 90 days or less, that fully
invests dollar- for - dollar all City funds without sales commissions or loads; and,
whose investment objectives include seeking to maintain a stable net asset value of
$1 per share. The City may not invest funds under its control in an amount that
exceeds 10% of the total assets of any individual money market mutual fund or
exceeds 80% of its monthly average fund balance, excluding bond proceeds and
reserves and other funds held for debt service in money market mutual funds. This
Securities and Exchange Commission regulated fund is required to provide the City
with a prospectus and other information required by the Securities Exchange Act of
1934 (15 U.S.C. Section 78a et seq.) or the Investment Company Act of 1940 (15
U.S.C. Section 80a -1 et seq.).
10. Eligible Investment Pools as defined in Section 2256.016 of the Texas Government
Code provided that:
a. investment in the particular pool has been authorized by the City Council;
b. the pool shall have furnished the Investment Officer an offering circular
containing the information required by Section 2256.016(b) of the Texas
Government Code;
C. the pool shall furnish to the Investment Officer investment transaction
confirmations with respect to all investments made with it;
City of Southlake RFP0910B200SJ900038 Page 137
d. the pool shall furnish to the Investment Officer monthly reports that contain
the information required by Section 2256.016(c) of the Texas Government
Code;
e. the pool's investment objectives shall be to maintain a stable net asset value
of one dollar ($1);
f. whose investment philosophy and strategy are consistent with this Policy and
the City's ongoing investment strategy; and
g, the pool provides evidence of credit rating no lower than "AAA" or "AAA -
m" by at least one nationally recognized credit rating service.
h. The net asset value (NAV) of the pool shall be maintained between 99.50
and 100.50.
B. Unauthorized Investments. The following investments are specifically prohibited
by State Law:
1. Obligations whose payment represents the coupon payments on the
outstanding principal balance of the underlying mortgage - backcd security
collateral and pays no principal.
2. Obligations whose payment represents the principal stream of cash flow from
the underlying mortgage- backed security collateral and bears no interest.
3. Collateralized mortgage obligations that have a stated final maturity date of
greater than 10 years.
4. Collateralized mortgage obligations the interest rate of which is determined
by an index that adjusts opposite to the changes in a market index.
C. Downgrade Provision for Investment Ratings
An Investment that requires a minimum rating does not qualify as an authorized
investment during the period the investment does not have the minimum rating.
The City shall take all prudent measures that are consistent with its investment
policy to liquidate an investment that does not have the minimum rating.
VI. SAFEKEEPING AND CUSTODY
A. Collateralization. Consistent with the requirements of State Law, the City requires all
bank deposits to be federally insured or collateralized with eligible securities. Financial
institutions serving as City Depositories will be required to sign a Depository Agreement
with the City and City's safekeeping agent. The safekeeping portion of the Agreement
shall define the City's rights to the collateral in case of default, bankruptcy, or closing and
shall establish a perfected security interest in compliance with Federal and State
regulations, including:
1. the Agreement must be in writing;
2. the Agreement has to be executed by the Depository and the City
contemporaneously with the acquisition of the asset;
3. the Agreement must be approved by the Depository's Board of Directors or loan
committee, and a copy of the meeting minutes must delivered to the City; and,
4. the Agreement must be part of the Depository's "official record" continuously since
its execution.
Repurchase agreements must also be secured in accordance with State Law. Each counter party
to a repurchase transaction is required to sign a copy of the Public Securities Association
City of Southiake RFP0910B200SJ900038 Page 138
Master Repurchase Agreement. An executed copy of the Agreement must be on file before the
City will enter into any transactions with a counter party.
B. Allowable Collateral and Collateral Levels.
Certificates of Deposit. Eligible securities for collateralization of deposits are
defined by the Public Funds Collateral Act, as amended, and meet the constraints
of this Policy. The market value of the City of principal portion of collateral
pledged for certificates of deposit must at all times be equal to or greater than the
par value of the certificate of deposit plus accrued interest, less the applicable level
of FDIC insurance.
2. Repurchase Agreements. Securities underlying repurchase agreements are limited
to U.S. Government, Agencies and Instrumentalities obligations, which are eligible
for wire transfer (i.e. book entry) to the City's designated safekeeping agent
through the Federal Reserve System and meet the constraints of this Policy. A
repurchase agreement's security value shall be the par value plus accrued interest,
and the security's market value must be maintained at the following minimum
levels:
Agreement Maturities Greater Than One Business Day
U.S. Treasury Securities 102%
U.S. Agency and Instrumentalities 103%
Mortgage Backed Securities 105%
Agreement Maturities of One Business Day
All Securities 100%
C. Monitoring Collateral Adequacy and Additional Collateral Securities.
Certificates of Deposit. The City shall require monthly reports with market values
of pledged securities from all financial institutions with which the City has
certificates of deposit. The Investment Officer will monitor adequacy of
collateralization levels to verify market values and total collateral positions. If the
collateral pledged for a certificate of deposit falls below the par value of the
deposit, plus accrued interest less FDIC or other insurance, the institution issuing
the certificate of deposit(s) will be notified by the Investment Officer and will be
required to pledge additional securities no later than the end of the next succeeding
business day.
2. Repurchase Agreements. Weekly monitoring by the Investment Officer of market
values of all underlying securities purchased for City repurchase transactions is
required. More frequent monitoring may be necessary during periods of market
volatility. If the value of the securities underlying a repurchase agreement falls
below the margin maintenance levels specified above, the Investment Officer will
request additional securities. If the repurchase agreement is scheduled to mature
within five business days and the amount is deemed to be immaterial, then the
request is not necessary.
D. Collateral Substitution. Collateralized certificates of deposit and repurchase agreements
often require substitution of collateral. Any broker, dealer or financial institution
requesting substitution must contact the Investment Officer for approval and settlement.
The substituted security's value will be calculated and substitution approved if its value is
equal to or greater than the required security level. The Investment Officer, or a
designees, must provide written notification of the decision to the bank or the safekeeping
agent holding the security prior to any security release. Substitution is allowable for all
transactions, but should be limited, if possible, to minimize potential administrative
City of Southlake RFP0910B200SJ900038 Page 139
problems and transfer expense. The Investment Officer may limit substitution and assess
appropriate fees if substitution becomes excessive or abusive.
? E. Safekeeping. The City shall contract with a bank or banks for the safekeeping of
securities either owned by the City as part of its investment portfolio or as part of its
depository and repurchase agreements. All collateral securing bank deposits must be held
by a third -party banking institution acceptable to and under contract with the City, or by
the Federal Reserve Bank. The securities purchased under a repurchase agreement must
be delivered to a third -parry custodian with which the City has established a safekeeping
agreement.
F. Delivery versus Payment. The purchase of individual securities shall be executed
"delivery versus payment" (DVP) through the City's Safekeeping Agent. By so doing,
City funds are not released until the City has received, through the Safekeeping Agent,
the securities purchased. The security shall be held in the name of the City or held on
behalf of the City. The Safekeeping Agent's records shall assure the notation of the City's
ownership of or explicit claim on the securities. The original copy of all safekeeping
receipts shall be delivered to the City.
VII. SELECTION OF BANKS AND DEALERS.
A. Depository Selection. A qualified depository shall be selected through the City's banking
services procurement process, which shall include a formal request for proposal (RFP).
The City shall permit consideration of applications for a depository contract from banks,
credit unions, or saving associations that are doing business in Southlake, and from
banks, credit unions, and saving associations that are doing business in the cities
contiguous to Southlake. The centralization of depository services is designed to
maximize investment capabilities while minimizing service costs. The selection of a
depository shall be based on the financial institution offering the most favorable terms
and conditions at the least cost, while adhering to the guidelines and provisions within the
request for proposal. In selecting a depository, the City shall give consideration to the
financial institution's credit characteristics, financial history, service capabilities, and
costs for required services. The City's depository contract shall be for three years with an
option to extend for an additional two years upon mutual agreement of the depository and
the City. Specialized services may be contracted for by the City with another financial
institution or company if the depository cannot provide such service or charges more for
the same service with little or no appreciable benefit.
B. Investment Advisors. The City may contract with an investment advisor, who shall
adhere to the spirit, philosophy and specific term of this Policy and shall invest within the
same "Standard of Care ". The investment advisor must be registered with the Securities
and Exchange Commission (SEC) under the Investment Advisor's Act of 1940 as well as
with the Texas State Securities Board. Advisors may assist the City with the management
of its funds and other responsibilities including but not limited to, broker compliance,
competitive bidding, reporting and security documentation.
An appointed Investment Advisor shall act solely in an advisory and administrative
capacity, within the guidelines of this Investment Policy. At no time shall the advisor take
possession of securities or funds or otherwise be granted discretionary authority to
transact business on behalf of the City.
C. Selection of Investment Broker/Dealers and Advisors. Selection will be performed by the
Investment Officer, with ratification and approval by the City Council. Selected
Investment Advisors and Broker/Dealers shall provide timely transaction confirmations
and monthly portfolio reports. Prospective Broker /Dealers shall provide financial and
other information as requested by the Investment Officer sufficient to evaluate their fiscal
City of Southlake RFP091 OB200SJ900038 Page 140
condition and ability to service the City. The Investment Officer will establish criteria to
evaluate Investment Advisors and Broker /Dealers, including:
1. Adherence to the City's policies and strategies,
2. Investment performance and transaction pricing within accepted risk constraints,
3. Responsiveness to the City's request for services, information and open
communication,
4. Understanding of the inherent fiduciary responsibility of investing public funds,
and
5. Similarity in philosophy and strategy with the City's objectives.
D. Approved Broker/Dealers and Investment Advisors. Broker /Dealers and Investment
Advisors eligible to transact investment business with the City shall be presented a
written copy of this Investment Policy. Additionally, the registered principal of the
business organization seeking to transact investment business shall execute a
Certification as shown in Appendix "A ", or a Certification similar in form, to the effect
that the registered principal has:
1. received and thoroughly reviewed this Investment Policy, and
2. acknowledged that their organization has implemented reasonable procedures and
controls in an effort to preclude imprudent investment activities with the City
except to the extent that this authorization is dependent on an analysis of the
makeup of the City's entire portfolio or requires an interpretation of subjective
investment standards.
The City shall not enter into an investment transaction with a business organization prior to
receiving this written acknowledgement. The City Council or designated investment committee
shall review, revise and approve a list of qualified brokers not less than annually.
VIII. REPORTING
A. Quarterly Reporting. The Investment Officer shall submit a signed quarterly investment
report that describes in detail the investment position of the City for the period. The
report will include the following:
1. For each pooled fund group: a beginning book and market value; book and market
value additions and changes; and ending book and market value, including fully
accrued interest for the reporting period.
2. The book value and market value of each investment at the beginning and end of
the period by type of asset and fund type invested.
3. The maturity date of each investment.
4. Fully accrued interest for the reporting period.
5. Statement of compliance of the portfolio as it relates to the investment strategy,
City investment policy and the Texas Public Funds Investment Act.
6. If the City invests in other than money market mutual funds, investment pools or
accounts offered by its depository bank in the form of certificates of deposit, or
money market accounts or similar accounts, the reports prepared by the investment
officers shall be formally reviewed at least annually by an independent auditor, and
the result of the review shall be reported to the City Council by that auditor.
City of Southlake RFP091OB200SJ'900038 Page 141
7. The City will seek a third party independent pricing source to determine the value
of the City's investment portfolio.
8. The City's independent auditor will review the quarterly investment report for
compliance with the Public Funds Investment Act and report findings annually to
the City Council.
City of Southlake RFP0910S200SJ900038 Page 142
F.11 9 a -WelAl —M . - IM
CERTIFICATION
I hereby certify that I have personally read and understand the investment policy and master
repurchase agreement, (if applicable), conditions of the City of Southlake, Texas, and have
implemented reasonable procedures and controls designed to fulfill those objectives and
conditions. Transactions between this firm and the City of Southlake will be directed towards
precluding imprudent investment activities and protecting the City from credit or market risk.
All sales personnel of this firm dealing with the City of Southlake's account(s) have been
informed and will be routinely informed of the City's investment horizons, limitations,
strategy and risk constraints, whenever we are so informed by the City.
This firm pledges due diligence in informing the city of foreseeable risks associated with
financial transactions connected to this firm.
City of Southlake RFP0910B200SJ900038 Page 143
CERTIFICATION BY BUSINESS ORGANIZATION
This certification is executed on behalf of City of Southlake - (the Investor) and
Frost National Bank_ (the Business Organization) pursuant to the Public Funds Investment
Ack Chapter 2256, Texas Government Code (the Act) in connection with investment
transactions conducted between the Investor and the Business Organization.
The undersigned Qualified Representative of the Business Organization hereby certifies on
behalf of the Business Organization that:
1. The undersigned is a Qualified Representative of the Business Organization offering to
enter into an investment transaction with the Investor as such terms are used in the Public
Funds Investment Act, Chapter 2256, Texas Government Code and
2. The Qualified Representative of the Business Organization has received and reviewed the
Investment Policy furnished by the Investor and
3. The Qualified Representative of the Business Organization has implemented reasonable
procedures and controls in an effort to preclude imprudent investment transactions
conducted between the Business Organization and the Investor that ere not authorized by
the entity's investment policy, except to the extent that this authorization is dependent on
an analysis of the makeup of the entity's entire portfolio or required an interpretation of
subjective investment standards.
4. The Business Organization will rely upon instructions from only the persons authorized
on behalf of gty of Southlake as stated in the Investment Policy and City's
resolution designating investment officers.
Date: December 1, 2009
City of Southlake RFP091 OB200SJ900038 Page � 44
Title: Investment Officer
APPENDIX "B"
GLOSSARY OF
COMMON TREASURY TERMINOLOGY
Agencies. Federal agency securities. Delivery versus Payment. Delivery of
Asked. The price at which securities are securities with an exchange of money for the
securities.
Federal Home Loan Mortgage Corporation
(FHLMC or Freddie Mac). A stockholder -
owned corporation that provides a continuous
flow of funds to mortgage lenders, primarily
through developing and maintaining an active
nationwide secondary market in conventional
residential mortgages.
Freddie Mac purchases a large volume of
conventional residential mortgages and uses
them to collateralize mortgage backed
securities.
Federal National Mortgage Association
(FNMA or Fannie Mae). FNMA, a federal
corporation, is the largest single provider of
residential mortgage funds in the United
States. It is a private stockholder owned
corporation. The corporation's purchases
include a variety of adjustable mortgages and
second loans in addition to fixed -rate
mortgages. FNMA's securities are also highly
liquid and are widely accepted. FNMA
assumes and guarantees that all security
holders will receive timely payment of
principal and interest.
Federal Open Market Committee (FOMC).
Consists of seven members of the Federal
Reserve Board and five of the twelve Federal
Reserve Bank Presidents. The President of the
New York Federal Reserve Bank is a
permanent member while the other Presidents
serve on a rotating basis. The Committee
periodically meets to set Federal Reserve
guidelines regarding purchases and sales of
Government Securities in the open market as a
means of influencing the volume of bank
credit and money.
Federal Reserve System. The central bank of
the United States created by Congress and
consisting of a seven member Board of
Governors in Washington, D.C., 12 regional
banks and about 5,700 commercial banks that
are members of the system.
Government Agency Issues. Debt securities
issued by government sponsored enterprises,
federal agencies, and international institutions.
Such securities are not direct obligations of the
Treasury and involve government sponsorship
or guarantees.
Government National Mortgage Association
(GNMA or Ginnie Mae). Securities
guaranteed by GNMA and issued by mortgage
bankers, commercial banks, savings and loan
associations, and other institutions. Security
holder is protected by full faith and credit of
the U.S. Government. Ginnie Mae securities
are backed by FHA or VA mortgages.
Liquidity. A liquid asset is one that can be
converted easily and rapidly into cash without
a substantial loss of value. In the money
market, a security is said to be liquid if the
difference between bid and asked prices is
narrow and reasonable size can be done at
those quotes.
Local Government Investment Pool (LGIP).
The aggregate of all funds from political
subdivisions that are placed in the custody of
the a state managed pool, or other qualifying
pool(s) that meet state statute criteria, for
investment and reinvestment.
Market Value. The price at which a security is
trading and could presumable be purchased or
sold.
Master Repurchase Agreement. To protect
investors, many public investors will request
that repurchase agreements be preceded by a
master repurchase agreement between the
investor and the financial institution or dealer.
The master agreement should define the nature
of the transaction, identify the relationship
between the parties, establish normal practices
regarding ownership and custody of the
collateral securities during the term of
investment, provide remedies in the case of
default by either party and clarify issues of
ownership. The master repurchase agreement
protects the investor by eliminating the
uncertainty of ownership and hence, allowing
investors to liquidate collateral if a bank or
dealer defaults during the term of the
agreement.
Maturity. The date upon which the principal or
stated value of an investment becomes due and
payable.
Money Market. The market in which short-
term debt instruments (bills, commercial
City of Southlake RFP0910B200SJ900038 Page 146
paper, bankers' acceptances, etc.) are issued
and traded.
Mutual Funds. Mutual fund providers are
investment companies that sell shares to
investors, offering investors diversification
and professional portfolio management.
Prices fluctuate with the performance of the
fund. Money market mutual funds invest in
short-term securities such as treasury bills,
bank CD's and commercial paper.
Open Market Operations. Purchases and sales
of government and certain other securities in
the open market by the New York Federal
Reserve Bank as directed by the FOMC in
order to influence the volume of money and
credit in the economy. Purchases inject
reserves into the bank system and stimulate
growth of money and credit; sales have the
opposite effect. Open market operations are
the Federal Reserve's most important and most
flexible monetary policy tool.
Par. The value of a security as expressed on its
face (face value) without consideration of a
discount or premium.
Portfolio. Collection of securities held by an
investor.
Positive Yield Curve. A condition where
interest rates are higher on long -term debt
securities than on short-term debt securities of
the same quality.
Premium. The price that a security demands
over its par value. This is the difference
between the price of an instrument and its
value at maturity (par value) when the price is
higher than the maturity.
Primary Dealer. A group of government
securities dealers that submit daily reports of
market activity and positions and monthly
financial statements to the Federal Reserve
Bank of New York and are subject to its
informal oversight.
Prudent Person Rule. An investment standard.
Investments shall be made with judgment and
care, under circumstances then prevailing,
which persons of prudence, discretion and
intelligence exercise in the management of
their own affairs, not for speculation, but for
investment, considering the probable safety of
their capital as well as the probable income to
be derived.
Qualified Public Depositories. A financial
institution which does not claim exemption
from the payment of any sales or
compensating use or ad valorem taxes under
the laws of this state, which has segregated for
the benefit of the commission eligible
collateral having a value of not less than its
maximum liability and which has been
approved by the Public Deposit Protection
Commission to hold public deposits.
Rate of Return. The yield obtainable on a
security based on its purchase price or its
current market price. This may be the
amortized yield to maturity on a bond or the
current income return.
Rating. A formal opinion by an outside
professional service on the credit reputation of
an issuer and the investment quality of its
securities. This opinion is expressed in letter
values (e.g., AAA, Baal).
Repurchase Agreement (REPO). A holder of
securities sells these securities to an investor
with an agreement to repurchase them at a
fixed price on a fixed date. The security
"buyer" in effect lends the "seller" money for
the period of the agreement, and the terms of
the agreement are structured to compensate
him for this. Dealers use REPO's extensively
to finance their positions.
Safekeeping. A service to customers rendered
by banks for a fee whereby securities and
valuables of all types and descriptions are held
in the bank's vaults for protection.
Primary dealers include Securities and SEC Rule 150 -1. See uniform net capital
Exchange Commission (SEC) registered rule. Secondary Market. A market made for
securities broker - dealers, banks and a few the purchase and sale of outstanding issues
unregulated firms. following the initial distribution.
City of Southlake RFP091OB200SJ900038 Page 147
Securities and Exchange Commission (SEC).
Agency created by Congress to protect
investors in securities transactions by
administering securities legislation.
Student Loan Marketing Association (Sallie
Mae). A government sponsored entity that
provides liquidity for private lenders (banks,
savings and loan associations, educational
institutions, state agencies and other lenders).
Sallie Mae participates in the Federal
Guaranteed Student Loan Program.
Treasury Bills. A non - interest bearing
discount security issued by the U.S. Treasury
to finance the national debt. Most bills are
issued to mature in three months, six months,
or one year.
Treasury Bond. Long -term U.S. Treasury
securities having initial maturities of more
than ten years.
Treasury Notes. Intermediate term coupon
bearing U.S. Treasury securities having initial
maturities from one to ten years.
U.S. Government Securities. Various types of
marketable securities issued by the U.S.
Treasury, including bills, notes, and bonds.
Such securities are direct obligations of the
U.S. Government and differ mainly in the
length of their maturity.
Weighted- Average Life. The weighted
average life refers to the average amount of
time that will elapse from the date of a
security's issuance until each dollar of
principal is repaid to the investor.
Yield. The rate of annual income return on an
investment, expressed as a percentage. (a)
Income Yield is obtained by dividing the
current dollar income by the current market
price of the security. (b) Net Yield or Yield to
Maturity is the current income yield minus any
premium above par or plus any discount from
par in purchase price, with the adjustment
spread over the period from the date of
purchase to the date of maturity of the bond.
Uniform Net Capital Rule. Securities and
Exchange Commission requirement that
member firms as well as nonmember broker -
dealers in securities maintain a maximum ratio
of indebtedness to liquid capital of 15 to 1;
also called net capital rule and net capital
ratio. Indebtedness covers all money owed to a
firm, including margin loans and
commitments to purchase securities, one
reason new public issues are spread among
members of underwriting syndicates. Liquid
capital includes cash and assets easily
converted into cash.
Zero - Coupon Security. A security that makes
no periodic interest payments but instead is
sold at a deep discount from its face value.
City of Southlake RFP091OB200SJ900038 Page 148
SOUTHLAKE
City of Southlake
REQUEST FOR PROPOSALS
Proposal Reference Number: RFP091OB200SJ900038
Project Title: PROVIDE DEPOSITORY BANK SERVICES
FOR CITY OF SOUTHLAKE
Proposal Closing Date: 2:00 P.M. (CST), FRIDAY, DECEMBER 11, 2009
TABLE OF CONTENTS
Tableof Contents ...................................................................... ............................... ...........................Page 1
Request for Proposals
(1) Introductions ................................................................... ............................... ...........................Page 2
(2) Definitions ...................................................................... ............................... ...........................Page
2
(3) General Information ....................................................... ............................... ...........................Page
3
(4) RFP Withdrawals and/or Amendments .......................... ............................... ...........................Page
3
(5) Proposal Submittal Requirements .................................. ............................... ...........................Page
3
(6) Proposal Evaluation and Contract Award ....................... ............................... ...........................Page
4
Appendix A — Scope of Services
(1) Project Title .................................................................... ............................... ...........................Page
6
(2) Scope of Services Contact .............................................. ............................... ...........................Page
6
(3) Special Conditions .......................................................... ............................... ...........................Page 6
(4) Proposal Evaluation Factors ........................................... ............................... ...........................Page 6
(5) Brand Manufacture Reference ........................................ ............................... ...........................Page 6
(6) Key Events Schedule ...................................................... ............................... ...........................Page 6
(7) Scope of Services ........................................................... ............................... ...........................Page 6
Appendix B — Proposal
I Required Proposal Information
( -) Label Format for Submittal Packet's Sealed Envelope . ............................... ...........................Page 20
(1) Proposed Product and /or Services ................................ ............................... ...........................Page
21
(2) Proposer's Experience / Staff ...................................... ............................... ...........................Page
21
(3) References ................................................................... ............................... ...........................Page
22
(4) Trade Secrets and/or Confidential Information ............ ............................... ...........................Page
23
(5) Federal, State and /or Local Identification Information .............................. ...........................Page
23
II Contract Terms and Conditions
(1) Delivery of Products and /or Services .......................... ............................... ...........................Page
23
(2) Miscellaneous ................................................................. ............................... .........................Page
23
(3) Financial Responsibility Provisions ............................ ............................... ...........................Page
24
AppendixC — Form CIQ ....................................................... ............................... ...........................Page
25
Appendix D — No Intent to Submit Form ............................ ............................... ...........................Page
28
Attachment A — Broker/Dealer Certification Form ................................................... ...............................
Attachment B — Banking Components Fee Schedule ................................................. ...............................
Attachment C — Check Reconciliation Import File Layout ....................................... ...............................
Attachment D — Lockbox payment Processing Layout .............................................. ...............................
Attachment E — City of Southlake Investment Policy ................................................ ...............................
City of Southlake RFP0910B200SJ900038 Page 150
Southlake, Texas
Request for Proposals
1. Introduction
A. Project Overview: The City of Southlake is requesting Proposals with the intent of awarding
a contract for the purchase of goods and services contained in Appendix A — Scope of
Services.
B. Questions: Following are contacts for questions as identified.
i. RFP Clarifications: All questions related to requirements or processes of this RFP should
be submitted in writing to the Purchasing Manager identified in section 2 below.
ii. Scope of Service Questions: All questions related to the scope of services should be
submitted in writing to the contact person(s) noted in Appendix A — Scope of Services.
iii. Replies: Responses to inquiries which directly affect an interpretation or effect a change
to this RFP will be issued in writing by addendum and mailed to all parties recorded by
City as having received a copy of the RFP. All such addenda issued by City prior to the
submittal deadline shall be considered part of the RFP. The City shall not be bound by
any reply to an inquiry unless such reply is made by such formal written addendum.
iv. Acknowledgement of Addenda: The Proposer must acknowledge all addenda by signing
and returning such document(s) or by initialing appropriate area of the Proposal.
C. Notification of Errors or Omissions: Proposers shall promptly notify the City of any
omissions, ambiguity, inconsistency or error that they may discover upon examination of this
RFP. The City shall not be responsible or liable for any errors .and/or misrepresentation that
result from the solicitations which are inadvertently incomplete, ambiguous, inconsistent or
obviously erroneous.
D. Conflict of Interest Questionnaire (Form CIQ): A person or business, and their agents, who
seek to contract or enter into an agreement with the City, are required by Texas Local
Government Code, Chapter 176, to file a conflict of interest questionnaire (FORM CIQ)
which is found in Appendix C. The form must be filed with the City Secretary no later than
seven (7) days after the date the person or business begins contract discussions or
negotiations with the City, or submits an application, response to a request for proposals or
bids, correspondence, or other writing related to any potential agreement with the City.
2. Definitions
Proposal The signed and executed submittal of the entirety of Appendix B — Proposal.
Proposer The Proposer and the Proposer's designated contact signing the first page of the
Proposal.
City of Southlake ("City") The City of Southlake, Texas.
Cfty Secre 's Office: The office of the City Secretary of the City, located at 1400 Main Street,
Suite #270, Southlake, Texas 76092. PH: (817) 748 -8016; Fax: (817) 748 -8270.
Project The name of this Request for Proposals as identified on the cover sheet and first page of
Appendix A — Scope of Services.
Purchasing Manager The City of Southlake Purchasing Manager is Timothy Slifka, PH: (817)
748 -8312, E -Mail: tslifka @ci.southlake.tx.us; Fax (817) 748 -8048.
City of Southlake RFP091OB200SJ900038 P a g e 151
1 Request for Proposals (RFP) The entirety of this document, including all Appendices and
Addenda.
Scope of Services The entirety of Appendix A — Scope of Services.
3. General Information
A. Tax Exempt Status. City purchases are exempt from State Sales Tax and Federal Excise Tax.
Do not include tax in the Proposal. City will furnish Excise Tax Exemption Certificate upon
request.
B. Public Inspection of Proposals: The City strictly adheres to the Texas Public Information Act
(Texas Government Code Chapter 552.001, et seq.) and all other governing statutes,
regulations, and laws regarding the disclosure of RFP information. Proposals are not
available for public inspection until after the contract award. If the Proposer has notified the
City, in writing, that the Proposal contains trade secrets or confidential information, the City
will generally take reasonable steps to prevent disclosure of such information, in accordance
with the Public Information Act. This is a statement of general policy only, and in no event
shall the City be liable for disclosure of such information by the City in response to a request,
regardless of the City's failure to take any such reasonable steps, even if the City is negligent
in failing to do so.
4. RFP Withdrawals and/or Amendments
A. RFP Withdrawal: The City reserves the right to withdraw this RFP for any reason.
B. RFP Amendments: The City reserves the right to amend any aspect of this RFP by formal
written Addendum prior to the Proposal submittal deadline and will endeavor to notify all
potential Proposers that have registered with the City, but failure to notify shall impose no
obligation or liability on the City.
5. Proposal Submittal Requirements
A. Submittal Packet — Required Content: Proposer must submit one (1) signed original Proposal
and CD -ROM version and three (3) hard copies. This submittal packet shall be submitted in a
sealed envelope with a completely signed and executed B -1 page _20_ affixed to the outside
of the envelope.
B. Submittal Deadline: The deadline for submittal of Proposals shall be as identified on page
_20_ of Appendix B- Proposal. It is the Proposer's responsibility to have the Proposal
correctly marked and delivered to the City Secretary's Office by the submittal deadline. No
extensions will be granted and late no late proposals will be accepted.
C. Proposals Received Late: Proposers are encouraged to submit their proposals as soon as
possible. The time and date of receipt as recorded in the City Secretary's Office shall be the
official time of receipt. The City is not responsible for late delivery of mail or other carrier.
Late Proposals will not be considered under any circumstances.
D. Alterations or Withdrawals of Proposal: Any submitted Proposal may be withdrawn or a
revised proposal substituted if a written notice is submitted to the City Secretary prior to the
submittal deadline. Any interlineations, alteration, erasure or other amendment made before
the submittal deadline, must be signed or initialed by the Proposer or the Proposer's
authorized agent, guaranteeing authenticity. Proposals cannot be altered, amended or
withdrawn by the Proposer after the submittal deadline, unless such alteration, amendment or
withdrawal notice is approved in writing by the Purchasing Manager.
E. Proposal Format: All Proposals must be prepared in single -space type, on standard 8 -112" x
11" vertically oriented pages, using one side of the paper only. Pages shall be numbered at
City of Southlake RFP0910B200SJ900038 Page 152
the bottom. Entries shall be typed, or legibly written in ink. Any other format (via telephone,
fax, email, etc.) may be rejected by the City at its discretion. A CD -ROM version must also
accompany the original hard copy.
F. Validity Period: Once the submittal deadline has passed, any Proposal shall constitute an
irrevocable proposal to provide the commodities and/or services set forth in the Scope of
Services at the price(s) shown in the Proposal on the terms set forth in the Proposal, such
proposal to be irrevocable until the earlier of the expiration of ninety (90) days from the
submittal deadline, or until a contract has been awarded by the City.
6. Proposal Evaluation and Contract Award
A. Proposal Evaluation and Contract Award Process: An award of a contract to provide the
goods or services specified herein will be made using competitive scaled proposals, in
accordance with Chapter 252 of the Texas Local Government Code and with the City's
purchasing policy. The City will evaluate all proposals to determine which proposers are
reasonably qualified for the award of the contract, applying the anticipated evaluation factors
and emphasis to be placed on each factor as identified in the Scope of Services. The City
may, at its option, conduct discussions with or accept proposal revisions from any reasonably
qualified proposer. The City reserves the right to determine which proposal will be most
advantageous to the City.
B. Completeness: If the Proposal is incomplete or otherwise fails to conform to the requirements
of the RFP, City alone will determine whether the variance is so significant as to render the
Proposal non - responsive, or whether the variance may be cured by the Proposer or waived by
the City, such that the Proposal may be considered for award.
C. Ambiguity: Any ambiguity in the Proposal as a result of omission, error, lack of clarity or
noncompliance by the Proposer with specifications, instructions and all conditions shall be
construed in the favor of the City. In the event of a conflict between these standard RFP
requirements and details provided in Appendix A — Scope of Services or Appendix B —
Proposal, the Appendices shall prevail.
D. Unit Prices and Extensions: If unit prices and their extensions do not coincide, the City may
accept the price most beneficial to the City, and the Proposer will be bound thereby.
E. Additional Information: City may request any other information necessary to determine
Proposer's ability to meet the minimum standards required by this RFP.
F. Partial Contract Award: City reserves the right to award one contract for some or all the
requirements proposed or award multiple contracts for various portions of the requirements to
different Proposers based on the unit prices proposed in response to this request, or to reject
any and all Proposals and re- solicit for Proposals, as deemed to be in the best interest of City.
G. Terminate for Cause: The occurrence of any one or more of the following events will justify
termination of the contract by the City of Southlake for cause:
i) The successful proposer fails to perform in accordance with the provisions of these
specifications; or
ii) The successful proposer violates any of the provisions of these specifications; or
iii) The successful proposer disregards laws or regulations of any public body having
jurisdiction; or
iv) The successful proposer transfers, assigns, or conveys any or all of its obligations or
duties under the contract to another without written consent of the City.
City of Southlake RFP091OB200SJ900038 Page 153
v) If one or more of the events identified in Subparagraphs G i) through iv) occurs, the City
of Southlake may, terminate the contract by giving the successful proposer seven (7) days
written notice. In such case, the successful proposer shall only be entitled to receive
payment for goods and services provided before the effective date of termination. The
successful proposer shall not receive any payment on account of loss of anticipated
profits or revenue or other economic loss resulting from such termination.
vi.) When the contract has been so terminated by the City of Southlake, such termination
shall not affect any rights or remedies of the City then existing or which may thereafter
accrue.
City of Southlake RFP091OB200SJ900038 Page � 54
Appendix A — Scope of Services
1. Project Title; PROVIDE DEPOSITORY BANK SERVICES FOR CITY OF SOUTHLAKE
2. Scope of Services Contact
Questions about the technical nature of the Scope of Services, etc. may be directed to TIM
SLIFKA, Purchasing Manager at PH. 817.748.8312, or e-mail: tslifka @ci.southlake.tx.us.
3. Special Conditions
The following special conditions shall prevail over areas of conflict in previous pages:
*SEE SCOPE OF SERVICES*
4. Proposal Evaluation Factors
Emphasis
Factor
%
15
Lowest Agglegate cost, Consistent with other Selection Requirements
%
20
Demonstrated Ability to Meet Service Requirements
%
20
Financial Condition and Ability to Meet Collateral Requirements
%
15
Incorporation of Effective, High Quality and Innovative Cash
Management Services
%
10
Submission of all Required Information
%
30
Customer Service and Responsiveness
5. Brand Manufacture Reference
The City has determined that any manufacturer's brand defined in the Scope of Services meets
the City's product and support need. The manufacturer's reference is not intended to be
restrictive, and is only descriptive of the type and quality the City desires to purchase. Quotes for
similar manufactured products of like quality will be considered if the Proposal is fully noted
with the manufacturer's brand name and model. The City reserves the right to determine products
and support of equal value, and whether other brands or models meet the City's product and
support needs.
b. Key Events Schedule
Proposal Release Date
Deadline for Submittal of Questions
Sealed Proposals Due to and Opened by City
Anticipated Committee Evaluation Review Date
Anticipated City Council Approval Date
New Contract Start Date
November 10, 2009
December 4, 2009
Shown on First Page of this RFP
Week of December 14, 2009
January, 5, 2009
March 1, 2010
7. Scope of Services
The City of Southlake, (hereafter "the City "), is requesting proposals from qualified banking
institutions to provide bank depository services to the City as described below. The objective of
this Request for Proposal (hereafter "the RFP ") is to identify the financial institution (hereafter
"the Depository ") that will provide the highest quality service at the lowest aggregate cost to the
City.
City of Southlake RFP091OB200SJ900038 Page 155
SCOPE OF SERVICES TABLE OF CONTENTS
SECTION
TITLE
NUMBER
1
Introduction
2
Proposal Procedures
3
Calendar of Events
4
Selection Criteria
5
Required Information
6
Contract Term
7
Designated Depository Contact Personnel
8
Service Exclusion
9
Right to Reject
10
Exceptions
11
Account Structure
12
ACH Transactions
13
Check Clearing Services
14
Check Safekeeping Service
15
Account Reconciliation
16
Daily Balance Reporting
17
Daylight Overdrafts
18
Debit and Credit Adjustments
19
Encoded Checks
20
Deposit Availability
21
Armored Car Service
City of Southlake RFP091OB200SJ900038
PAGE
9
9
10
10
10
11
11
12
12
12
12
13
13
13
13
13
14
14
14
14
14
Page 156
SECTION
TITLE
PAGE
NUMBER
22
Deposit Slips
14
23
Account Analysis Earnings Credit
15
24
Errors
15
25
Investments
15
26
Research Requests
15
27
Returned Items
15
28
Securities Clearance and Safekeeping
15
29
Stop Payments
16
30
Wire Transfers
16
31
Lockbox Service
16
32
Collateral Requirements
16
33
Overdrafts
17
34
Desktop Deposit
18
35
Service Proposal Checklist
18
36
Coin and Currency Change Orders
19
37
Daylight Overdrafts
19
38
Deposit Availability
19
39
Wire Transfers
19
40
Desktop Deposits
19
41
File Formats
19
Attachments:
Attachment "A" - Broker - Dealer Form
Attachment "B" - City of Southlake Banking Components Fee Schedule
Attachment "C" - Check Reconciliation Import File Layout
Attachment "D" - Lockbox Layout
Attachment "E" — City of Southlake Investment Policy
City of Southlake
RFP091OB200SJ900038
Page 157
1. Introduction
The City of Southlake (the City) is requesting proposals from qualified banking institutions
to provide bank depository services to the City as described below. The objective of this
Request for Proposal (the RFP) is to identify the financial institution (the Depository) that
will provide the highest quality service at the lowest aggregate cost to the City.
Proposal specifications and evaluation criteria have been developed and are described herein
where "mailed" is used, proposer may assume e- mailed or faxed as well. All notifications
should be made available online.
Each proposal must be complete and specifically address the requirements described in the
RFP. Proposals must respond to all specified requirements.
2. Proposal Procedures
Each proposer shall use the City of Southlake form entitled "Fee Schedule" to identify all
applicable fees for services requested. The Fee Schedule must be completed in its entirety.
Each proposer shall identify all applicable fees for each service if the service is not already
listed on the Fee Schedule. The form entitled "Service Proposal Checklist" identifies the
information, proposed agreements and responses each proposer shall provide in their
proposal.
The term "No Proposal" should be entered on the Fee Schedule and Service Proposal when a
service requirement cannot be provided. In the case of a "No Proposal" remark, the proposer
may offer an alternative equivalent service for the City's consideration.
Services for which a proposer intends to charge a fee must have all applicable fees indicated
on the Fee Schedule. Space has been provided under each requested service for "Other"
applicable fees, if any. Any service which does not have a fee indicated on the Fee Schedule
will be considered to be free of any and all charges in the Depository Bank Contract. Pricing
for services requested after contract award will be mutually- agreed upon.
The proposal must be submitted in a sealed envelope bearing the title "City of Southlake
Bank Depository Request for Proposal" along with the name of the proposer. The proposal
shall contain: a completed City of Southlake Fee Schedule, responses to the Service Proposal
requirements, and all additional items identified below. The proposal must be submitted on
CD -ROM with one original hard copy and three additional hard copies.
The proposal should be formatted in Microsoft Word or Microsoft Excel. The proposal shall
be delivered to City Secretary Office, 1400 Main Street, Suite 270, Southlake, Texas 76092,
no later than 2 pm, December 11, 2009.
A proposer may submit questions in writing or by email to the City until Thursday,
December 4, 2009 in order to clarify any matters relating to the RFP. The question and the
City's response will be shared with all proposers. Tim Slifka, Purchasing Manager,
817.748.8312, tslitka @ci.southlake.tx.us, may be contacted on all aspects of the RFP.
All costs incurred by the proposer in preparing and responding to the RFP shall be borne by
the proposer.
Unauthorized modifications of City of Southlake proposal specifications, forms or terms may
render the proposal invalid.
City of Southlake RFP091OB200SJ900038 Page 158
3. Calendar of Events
Target Date
November 9, 2009
December 4, 2009
December 11, 2009
December 14 -18
January 5, 2010
March 1, 2010
4. Selection Criteria
Description of Events
Service Proposal mailed out
Written Questions Due
Receive proposals from interested depositories (by 2
pm at City Hall).
Staff review of proposals
Present to City Council for approval
New contract period begins
The Finance Department will evaluate the merits of the submitted proposals. The sole
objective of this evaluation will be to determine the financial institution whose proposal is
most responsive to the City's bank depository needs.
The following criteria will be included in the evaluation of the submitted proposals.
• Lowest aggregate cost, consistent with the other selection criteria;
• Demonstrated ability to meet service requirements;
• Financial condition and ability to meet collateral requirements;
• Incorporation of effective, high quality and innovative cash management services;
• Submission of all required information.
5. Required Information
Each proposer must provide the following in the Service Proposal:
• Audited financial statements for the most recent fiscal year;
• Ratings on outstanding debt;
• Community Reinvestment Act performance history for the Southlake community
for 2008;
• Three Texas local government references for cash management services managed
by the bank executive who will be responsible for the City's account;
• Sample account analysis and monthly statement;
• Availability of funds schedule;
• Sample of daily balance report;
• Most recent quality assurance statistics and customer satisfaction procedures;
• New customer conversion procedures and applicable information;
• Daylight overdraft definition and policy;
• Proposed retail lockbox agreement;
• Proposed positive pay agreement;
• Proposed wire transfer agreement;
• Proposed custodial and safekeeping agreement;
• Proposed collateral agreement;
City of Southlake RFP091OB200SJ900038 Page 159
• Proposed Automated Clearing House agreement;
Proposed vault services agreement;
• Proposed security clearance agreement;
• Proposed ACH funds transfer agreement;
• Any on -line services.
• Any additional agreements that require City approval.
6. Contract Term
The contract is for three years commencing March 1, 2010. All fees shall be fixed for the
three -year term. The contract will provide an option for two one -year extensions, subject to
the approval of the Southlake City Council and the Depository. If the contract is extended,
fees may increase by a percentage no greater than the total annual increases of the 2010,
2011 and 2012 Dallas -Fort Worth Consumer Price Index — All Urban Consumers as
measured by the Bureau of Labor Statistics. The new fees shall be fixed for a one -year term.
Services may be modified by mutual agreement during the contract term. It is expected the
range of services described in this proposal will be used for the length of the contract;
however, the City may discontinue any service after 60 days written notification to the
Depository. Services not identified in the RFP may be added, with the cost of new services to
be negotiated at that time.
7. Designated Depository Contact Personnel
Upon selection, the Depository shall provide a list of personnel qualified to provide product
information and assistance in the following areas:
• General information
• Investments and safekeeping
• Accounting and Bookkeeping
• Deposit discrepancies
• Wire transfers
• Vault services
• Balance reporting
• Controlled disbursements
• Pledged collateral
• Automated Clearing House
In addition, the Depository shall designate one account officer with authority and
responsibility for the City's entire account.
8. Service Exclusion
This RFP excludes all City retirement and deferred compensation programs. Additionally,
the City retains the right to invest its funds with the financial institution that provides the City
with the best investment return. The City also retains the right to separately contract for
services provided by other institutions in addition to those contained in the Depository
contract.
City of Southlake RFP091OB200SJ900038 Page 160
9. Right to Reject
The City reserves the right to reject any and all proposals. The City, at its option, may waive
any and all informalities, minor irregularities and/or technicalities. The City may reject the
proposal of a proposer who is in litigation with the City or who has previously failed to
perform properly or complete on time contracts and commitments of a similar nature, and
reject the proposal of a proposer who is not, in the opinion of the City, in a position to
satisfactorily perform the contract. The City may also accept or reject any of the alternates
that may be set forth in a proposal. The City reserves the right to reject any proposal if the
evidence submitted by, or investigation of, such proposer fails to satisfy the City that such
proposer is properly qualified to carry out the obligations of the contract and to complete the
work contemplated therein.
10. Exceptions
Exceptions, conditions, or qualifications to the provisions of the City's specifications or
contracts must be clearly identified in writing as such, with the reasons therefore, and
alternate language proposed by proposer, if any, clearly stated and inserted in the appropriate
place in the proposal submission.
Each of these exceptions, conditions, or qualifications to the City's specifications will be
included, as appropriate, in the Contract document. Items and matters not explicitly excepted
in this manner shall be deemed to be in conformance with the City's specifications.
The City is the final judge of acceptability for items quoted on this RFP.
11. Account Structure
The City requires a master account entitled "Operating Account": into which all daily
deposits of all unrestricted accounts, electronic transfers in and out, investment activities,
debit and credit adjustments, change orders, zero - balance accounts and controlled
disbursements will be transacted.
The master account has controlled disbursement accounts that are funded by the master
account.
A number of zero balance accounts and other accounts will be required by the City for the
processing of transactions and the collection of revenues. The zero balance accounts are
swept into the master account.
The City reserves the right to open or close any number or type of accounts throughout the
term of the contract.
12. ACH Transactions
The City has approximately 400 utility customers that are drafted monthly for payment. The
City transmits data to the Depository daily by direct transmission via the City's computer
system. This is a required service of the Depository. The City also has ACH debit and credit
transactions for state and federal governmental activities. In addition, a portion of the City's
work force is paid bi- weekly by ACH.
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13. Check Clearing Services
The City uses Positive Pay for all checks issued. The City will require the Depository to
perform a computerized match of all presented City checks with a database of issued checks.
All checks issued and voided by the City will be transmitted to the Depository by direct
transmission. The proposal should include any software charges associated with this service
on the Fee Schedule.
14. Check Safekeeping Service
The City will consider using a CD ROM for the imaging and retention of cleared checks.
Cancelled checks and deposit tickets are currently returned to the City. The City requires that
the Depository bank properly dispose of the cancelled checks and deposit items if using a CD
ROM. All data included on CD ROM must be downloadable into Microsoft Excel format and
one of the Check Reconciliation Import File Layouts in Attachment "C ".
15. Account Reconciliation
Bank statements on all accounts shall be rendered within five (5) working days after the close
of the calendar month. Statements shall include transaction activity made through the last day
of the period. The bank statement for the operating account should include a listing of
miscellaneous debits and credits which are balanced to the bank statement (partial account
reconciliation). For the controlled disbursement account and the payroll account, the City
requires a report reflecting all items paid in serial number sequence, which is balanced to the
bank statement (partial account reconciliation). Identify all applicable costs on the Fee
Schedule for these services.
16. Daily Balance Reporting
The City requires daily on -line reporting of ledger, collected and available balances, as well
as all credit and debit totals for all Accounts. This information should be ayailable_b3,9-0 I_
a.m. Central time Agreed.
17. Daylight Overdrafts
The City will attempt to avoid daylight overdrafts. Include the daylight overdraft policy in
the proposal and answer the following questions. How does the proposer define daylight
overdraft? Daylight overdrafts are defined as the transfer and use of uncollected funds. If
funds are to be received (security transactions, wires), but have not been credited to the
City's account, could a daylight overdraft result? Yes. If a daylight overdraft occurs, what is
the policy on such an event and what charges, if any, would be made to the City? (Include all
charges in the Fee Schedule). Daylight overdrafts will be approved a no charge.
18. Debit and Credit Adjustments
The City requires that a copy of all debit and credit adjustments be mailed to the City's
Finance Department with supporting documentation, as the entries are made throughout the
month. The City's monthly statement should also include a copy of all debit and credit
adjustments. Adjustment documentation should include description, date and amount in order
for the City to properly record the entry. The City shall not be responsible for the cost of
credit and debit adjustments necessitated by bank error.
City of Southlake RFP0910B200SJ900038 Page 162
19. Encoded Checks
The City encodes the majority of the items deposited daily. An exception is the ad valorem
tax receipts which are not encoded by the City. The collection of ad valorem taxes is done by
Tarrant County and will be deposited by wire transfers into City bank accounts. The heaviest
deposits are in December and January.
20. Deposit Availability
The City desires to receive same day credit for all funds deposited by armored delivery
service to the designated deposit location. Please state your cut off time for same day credit
in your Service Proposal. The City expects to receive the best availability on deposits as well
as any future improvements to the availability schedule. Please submit a funds availability
schedule in your proposal. Identify the name and the physical location that will receive City
deposits. Cutoff time for same day credit is 4:00pm. The City may make deposits at our
Southlake location at 641 E. Southlake Blvd. Frost's Accelerated Availability Schedule is
contained in Exhibit G.
21. Armored Car Service
The City currently contracts with an armored courier service for delivery of deposits from
City facilities to the depository bank. The bank depository must provide a service to pick up
daily deposits from the City and deliver to the bank depository. Frost is amenable to
providing this service through either invoice or analysis.
22. Deposit Slips
The City will use tree -part, encoded deposit slips. The City requires the Depository to
validate and mail on a daily basis to the City's Finance Department, one copy of each deposit
slip. Same day telephone notification is required for deposit discrepancies. The City will
designate a contact person to handle deposit discrepancies.
23. Account Analysis Earnings Credit
In the proposal, explain the method or calculation used to determine the earnings credit rate
applied to City balances on the monthly account analysis. Identify which balance, either
ledger or collected, the earnings credit shall be applied, and if a percentage reserve
requirement is subtracted from this balance. The calculation for earnings credits is:
Average positive collected balanced X ECR/365 X number of days in the month
The City will receive the previous month's average 91 -day T -Bill auction discount rate plus
25 basis points to be applied to the collected balance less a 10% reserve requirement.
24. Errors
Depository errors resulting in lower City balances or reduced earnings shall be corrected to
the satisfaction of the City. The Depository and the City shall mutually agree upon the
method of reimbursement or correction.
25. Investments
The City may choose to invest in certificates of deposit in the Depository or any other
financial institution. Alternatively, the City may invest in other types of securities as
permitted by the City's written investment policy.
City of Southlake RFP0910B200SJ900038 Page 163
26. Research Requests
The City requests that all research requests be turned around within three (3) business days of
the request. Some items may take longer to research, i.e., fraudulent items.
27. Returned Items
All checks deposited by the City that do not clear the first time should be submitted a second
time before returning the item to the City. A returned check that does not clear on the second
attempt shall be returned to the City within two (2) business days.
28. Securities Clearance and Safekeeping
The Depository may act as transfer agent for some or all security transactions undertaken by
the City. All security transactions shall be executed delivery versus payment. The Depository
must have the capability of executing on behalf of the City DTC and Federal book entry
security purchases and sales through the Federal Reserve Sank or a New York correspondent
bank. The City requires that security purchase and sale instructions be transmitted to the
Depository on -line. The City requires the ability to review the status of security transactions
on -line. Controls for securities clearance will be established by mutual agreement. Include in
the proposal a security clearance and custody agreement. Agreed.
A safekeeping confirmation for each City security transaction will be issued and mailed to
the City within two (2) business days of settlement. A monthly report listing all City
securities held in safekeeping will be mailed to the City within seven (7) business days of the
end of each month. Agreed.
29. Stop Payments
The City will require the Depository to issue stop payments and make stop payment inquiries
by telephone or by on -line notification from authorized City staff. The method of stop
payment is at the City's discretion. The City will provide all required stop payment
information. The Depository will provide the City with hard copy confirmation of each stop
payment.
30. Wire Transfers
The City requires that wire transfers and secondary authorizations be initiated by the City's
Finance Department. The City also requires the ability to verify incoming and outgoing wire
transfers on -line as well as the current status of all City wire transfers. This service must also
be available on -line to the City's Finance Department. A hard copy notification of all
incoming and outgoing wire transfers shall be mailed to the City within three (3) business
days. In the event the Depository experiences computer or unexpected difficulties, the
Depository shall use whatever means necessary to ensure that the City's wire transfers are
completed on the date specified.
In a typical day, the City may transfer large dollar amounts. The funding sources for these
transfers can include collected balances, security maturities and sales and incoming wire
transfers. The Depository shall release all outgoing wire transfers within one hour of
origination by the City. Since the posting of security transactions may occur during overnight
processing, a procedure to ensure the prompt release of wire transfers is necessary. In your
proposal, identify the provisions for the release of wire transfers. Frost will establish an
City of Southlake RFP0910B200SJ900038 Page 164
internal guidance line of credit for outgoing wires. This will be provided at no charge to
facilitate outgoing wires.
31. Lockbox Service
The City is considering the use of lockbox applications. Provide data regarding the use of
lockbox in your proposal and identify the applicable cost on the Fee Schedule.
This service may or may not be included in the evaluation of the proposal, per the City's
decision to expand its current service applications.
32. Collateral Requirements
The Depository is required to comply with Government Code Chapter 2257, Collateral for
Public Funds. Eligible securities as defined in chapter 2257 and identified below shall be
deposited with a third party custodian prior to the deposit of City funds. The pledged
collateral must be maintained at all times during the term of the Depository contract at the
levels required in this section. In order to perfect the City's security interest in the pledged
collateral under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989
(FIRREA), it is required that a collateral agreement between the City, the Depository and the
approved custodian be signed by all parties prior to the deposit of City funds. The collateral
agreement must be approved in resolution form by the Board of Directors or Loan
Committee of the Depository and reflected in their certified minutes. The resolution should
also state that the officer signing the collateral agreement is authorized to sign on behalf of
the Depository. The signed collateral agreement, Board resolution, and minutes certifying the
approval of the collateral agreement must be presented to the City prior to the deposit of City
fiends. Agreed.
The following securities are approved as collateral for City funds:
1. United States Treasury notes, bills or bonds or obligations fully and unconditionally
guaranteed as to principal and interest by the full faith and credit of the United States,
2. Obligations of the Federal Home Loan Bank, Federal Home Loan Mortgage
Corporation, or Federal National Mortgage Association.
Government National Mortgage Association securities or any other asset backed, mortgage
backed or pooled securities are unacceptable collateral.
The use of a surety bond may be considered by the City to meet the required collateral
requirements.
The depository must comply with the law regarding collateral deposits. The City requires at
least $10 million of collateral be maintained at all times except for the approximate period of
December 10th through February 10th of each year when an additional $15 million in
collateral will be required due to ad valorem tax collections. Other requests for additional
collateral will be made on a when needed basis. The cost of collateral should be identified on
the Fee Schedule and should be quoted on a per million dollar per day basis.
The Depository may substitute approved securities so long as the total value of the pledged
securities meets the required levels. Substitution may be made after obtaining permission
from the City of Southlake. The Depository may also request permission to release securities
whenever the total amount pledged is in excess of City requirements.
City of Southlake RFP091OB200SJ900038 Page 165
A third -party custodian must safe -keep pledged securities. The City shall have the right to
approve the custodian proposed by the Depository. Eligible custodians include: national
banks domiciled in Texas, Federal Home Loan Bank, or Federal Reserve Bank or a branch of
a Federal Reserve Bank.
Upon receipt of the collateral, the custodian shall provide an original safekeeping receipt for
each security being pledged.
The Depository will provide to the City on a timely basis a monthly report of securities
pledged by account. The report should provide the following:
1. Security type and description including coupon, maturity and call date, if any,
2. Par value,
3. Market value of each security and total market value for all securities.
Frost can comply with all of the City's collateral requirements and will pledge collateral
at the Federal Reserve Bank at no charge.
33. Overdrafts
The City does not intend to have an overdraft position on any of its bank accounts singly or
net throughout the course of the depository contract. In the event a check or checks presented
for payment on any City account where there exists insufficient funds available for payment,
the City will require the depository bank to pay said checks and promptly notify the City
representative of the existence of the overdraft situation. The City agrees to cover the
overdraft within one business day.
Define in the Proposal Form whether the bank would consider an overdraft to be a negative
balance in any individual City account or a negative balance in all City accounts collectively.
The City would expect the depository to view all City accounts together for purposes of any
charges on overdrawn collected balances. Overdrafts are assessed by account, not
collectively. All items presented for payment are paid at no charge. The City will receive
telephone notification when the overdraft occurs. A negative collected fee will be charged
on analysis at the Bank's current prime rate.
34. Desktop Deposit Services
The City currently contracts for Desktop Deposit services using the Pannini Vision X scanner
and desires to continue this process. Define in the proposal desktop deposit services,
compatibility with the Pannini Vision X scanner, and file download /upload capability for
posting in the financial software used by the city. Acceptable lockbox file formats are
included in Attachment "D ".
35. Services Proposal Checklist
Each proposal must respond to the following specified requirements.
Provide the following:
• Audited financial statements for the most recent fiscal year;
• Detailed explanation of the bank's policy and methodology used in the setting of
the earnings credit rate. Provide a schedule of the earnings credit rates offered by
the bank since January 1, 2005;
City of Southlake RFP091 OB200SJ900038 Page 166
• Ratings on outstanding debt;
• Three Texas local government references for cash management services managed
by the bank executive who will be responsible for the City's account;
• Sample account analysis and monthly statement;
• Availability of funds schedule;
• Vault services deposit cutoff times;
• Sample of daily balance report;
• Most recent quality assurance data and customer satisfaction procedures;
• New customer conversion procedures and applicable information;
• Daylight overdraft policy;
• Proposed depository contract;
• Proposed retail lockbox agreement;
• Proposed positive pay agreement;
• Proposed wire transfer agreement;
• Proposed custodial and safekeeping agreement;
• Proposed collateral agreement;
• Proposed Automated Clearing Housing agreement;
• Proposed vault services agreement;
• Proposed security clearance agreement;
• Any on -line banking services
• Any additional agreements that require City approval.
• State whether the bank would offer any type of special checking, money market,
or loan account or other incentive for City employees;
• Describe any other cash management or banking services that could be offered to
the City. List all charges that would apply.
Respond to the following service inquiries:
36. Coin and Currency Change Orders
Specify any advance notice requirements greater than 24 hours. None exist.
37. Daylight Overdrafts
Answer the following:
Define daylight overdraft. A daylight overdraft is defined as the wiring out of uncollected
funds
Could a daylight overdraft result if funds are to be received (security transactions, wires), but
have not been credited to the City's account? Yes.
If a daylight overdraft occurs, what is the policy on such an event and what charges, if any,
would be made to the City? Daylights will be approved at no charge pending verification of
incoming funds by customer.
38. Deposit Availability
Identify the name and deposit location that will receive City deposits. The City may make
deposits at our Southlake Branch located at 641 E. Southlake Blvd.
City of Southlake RFP0910B200SJ900038 Page 167
39. Wire Transfers
Identify the provisions for the release of wire transfers. Secondary authorization is required
on all wires that leave the bank.
40. Desktop Deposits
Identify availability of service and compatibility with Pannini Vision X Scanner
Frost's Web -based remote deposit capture solution, offered in partnership with NCR
Corporation, resides in software on a central server at Frost. As a service user, you access
Frost's secure site to initiate deposits from the convenience and security of your own
workplace.
The only equipment you must provide is a computer with monitor and keyboard and a secure,
high -speed Internet connection. As part of product deployment, Frost sends you a desktop
scanner appropriate for your organization's needs, (free of charge) although you may use one
of your own organization's scanners if it is certified by Frost for remote deposit capture
service. Once you have a scanner in place, you download a driver to operate the scanner and
follow user - friendly instructions to process and complete your deposits.
With an extended deadline of 9 p.m. Central time, Frost's remote deposit capture service
provides you the opportunity to scan checks and transmit deposits to Frost well past
traditional banking hours. When you complete a deposit, you receive a system message
"Received at Frost," confirming that the deposit has been received by Frost. As an option,
you may choose e -mail confirmations of deposits to be sent to designated contacts within
your organizations.
Frost's remote deposit capture service delivers valuable benefits that include online check
image retention for 65 calendar days as well as virtual check endorsement, duplicate check
detection, intraday and end-of -day reports, automated data capture with optional data files,
and customer administration and user entitlements. You may also take advantage of data
export Rinctions to facilitate your organization's own analysis.
We recommend that originals of remotely deposited checks be kept in a secure location for a
minimum of 10 days before they are safely destroyed. The storage period ensures that in the
event an unacceptable image is created and transmitted the original check is available for
rescammng.
Periodic software upgrades come to you on an automated basis, generally with no downtime
or additional downloads required.
Compatible models are contained in the Treasury Management Section - Exhibit M.
41. File Formats
Answer the following:
Are the download/upload file formats used by the proposer compatible with those listed in
Attachment "C" Check Reconciliation Import File Layout and Attachment "D" Lockbox
Layout? Please refer to file formats for both Check Reconciliation and Lockbox contained in
Exhibit M - Treasury Management. Frost's Lockbox IT personnel can program and conform
to the City's file format.
City of Southlake RFP091OB200SJ900038 Page 168