Request For Proposal. Banking Services (July 2014) Port of Port Arthur Navigation District of Jefferson County, Texas

Transcription

1 Request For Proposal Banking Services (July 2014) Proposals will be accepted until 4:00 PM, Monday, July 14, 2014 Port of Port Arthur Navigation District of Jefferson County, Texas 1

2 Port of Port Arthur Navigation District of Jefferson County, Texas TABLE OF CONTENTS Page I. Introduction II. Qualifications III. Proposal Process IV. Account Structure V. Submission Format & Instructions VI. Required Banking Services VII. Evaluation of Proposals APPENDICES: 1. Information about the Port of Port Arthur Navigation District Information Prepared By Offeror (Forms) 2A. Offeror General Information B. Net Earnings Estimate C. Cost of Service Information D. Bank Credit Evaluation ATTACHMENTS: Port of Port Arthur Navigation District Investment Policy Port of Port Arthur Navigation District Audited Financial Statements, Fiscal year ending July 31,

3 Port of Port Arthur Navigation District of Jefferson County, Texas I. INTRODUCTION The Port of Port Arthur Navigation District (the Port) is requesting proposals for banking services from banking institutions domiciled in or having a presence located within the boundaries of the Port district. The successful Offeror s contract will extend from August 1, 2014 thru July 31, 2019, or the date on which a duly qualified successor is chosen to serve as depository. This Request for Proposal (RFP) represents the Port s efforts to provide for the safety of all of its funds and securities, the availability of those funds for the payment of all necessary obligations, improvement of operational efficiency, minimize banking costs and maximize investment capabilities. II. QUALIFICATIONS By submitting a proposal in response to this RFP, Offeror attests and represents to the Port that such Offeror meets the following qualifications and will, at all times during the period of the Depository Contract, continue to maintain such qualifications: 1. Offeror is a National or Texas Bank, Credit Union or Savings Association having a presence in the Port of Port Arthur Navigation District and is capable of servicing the Port s banking activity needs as specified herein. 2. Offeror is a member of the Federal Reserve System 3. Offeror must meet the requirements of Chapter 105 of the Local Government Code governing the requirements of Depositories for Municipal Funds. Pursuant to of the Local Government Code, Offeror, no later than five (5) days before the commencement of the term of the Depository Contract and at all times thereafter, will pledge sufficient identifiable collateral to secure the Port s deposits. Chapter 2257 of the Government Code shall govern the type, level, substitution, possession, release and method of valuation of the security necessary to secure the funds of the Port. The Port may, at its sole discretion, consider the use of surety bonds as collateral during peak deposit times. The use of such bonds, if allowed, must be issued and executed by one or more solvent surety companies authorized to transact business in the State of Texas. 4. Offeror must meet compliance with the Community Reinvestment Act (CRA). 5. Offeror must agree to obtain and maintain acceptable collateral sufficient to cover all anticipated time and demand deposits, above the FDIC insured limit of $250,000. Securities used to pledge against time and demand deposits must be held in an independent third-party safekeeping institution outside any holding company of Offeror. 3

4 III. PROPOSAL PROCESS The intent of this RFP is for the Port to contract for banking services for a five (5) year period. 1. To be eligible for consideration under this RFP, three (3) copies of the proposal shall be submitted by 4:00 pm central standard time on July 14, 2014 at the address listed below. Proposals received after that time will not be accepted. Time will be established by the clock in the Port s Board meeting room. The Port will not be held responsible for any malfunction of proposals sent express or courier. It is the entire responsibility of the Offeror to see that its proposal arrives at the Port office on time. 2. An electronic copy of this RFP is available on the Port s website ( or upon request. 3. Proposals must be in a sealed envelope marked Proposals for Banking Services. An accompanying Certified or Cashiers Check in the amount of $60, must accompany each proposal and be tendered under and in accordance with the terms of applicable laws and these conditions. 4. Proposals must be submitted to: Port of Port Arthur Navigation District Attn: Judy Bettis, Director of Finance 221 Houston Avenue (delivery address) P. O. Box 1428 (mailing address) Port Arthur, TX Questions can be submitted to: Port of Port Arthur Navigation District Judy Bettis, Director of Finance Via to jbettis@portofportarthur.com 6. Schedule for Proposal Process: June 18, Release of Request for Proposal June 19, 2014 Publish Notice to Offerors and RFP on Port s (Public Notices) June 26, 2014 and July 2, 2014 Publish Notice to Offerors June 30, Deadline for submission of questions about RFP July 14, 2014, 4:00 pm - Proposal Submission Deadline July 23, 2014 Port Board of Commissioners award contract August 1, 2014 Contract commencement 7. The Port reserves the right to - Waive any defects or informalities in the RFP or proposal process - Reject any and all proposals - Cancel and/or reissue this RFP - Modify deadlines - Informally negotiate certain finer points of the final contract 4

5 IV. ACCOUNT STRUCTURE The Port utilizes seven (7) interest bearing accounts with an overall average collected balance of $3.14 million for the last 9 months. Account descriptions and principal uses of funds are as follows: 1. Operations & Maintenance Fund (O&M Fund) This is the primary operating account for the Port. All operating revenues are deposited into this account. All bi-weekly payroll (Direct Deposit), weekly accounts payable checks and Wire/ACH disbursements are made from this account. 2. Promotion & Development Fund (P&D Fund) This account is primarily used for promotional and marketing expenditures. Funds are received for deposit from transfers from the P&D investment account and O&M Fund listed above. Weekly accounts payable checks and Wire/ACH disbursements are made from this account. 3. Debt Service Fund (DS Fund) - This account is utilized for the accumulation of funds from Property Tax Collections. Funds are received for deposit via Wire/ACH. Disbursements are made via Wire/ACH to investment account and inter-bank transfers. 4. Operation & Maintenance Tax Revenue Fund (O&M Tax Rev. Fund) - This account is utilized for the accumulation of funds from Property Tax Collections. Funds are received for deposit via Wire/ACH. Disbursements are made via Wire/ACH to investment account and inter-bank transfers. 5. Construction Fund This account is utilized to account for activities of major capital projects funded from designated funding sources, i.e. bond proceeds. Funds are received for deposit and disbursed via Wire/ACH and inter-bank transfers. 6. Debt Service Series 2008A Fund (DS 2008/A Fund) This account is utilized for designated purposes as noted in the Port s Refunding Bonds, Series 2008A bond indenture documents. Funds are received for deposit and disbursed via Wire/ACH and inter-bank transfers. 7. Debt Service Series 2008B Fund (DS 2008/B Fund) This account is utilized for designated purposes as noted in the Port s Improvement Bonds, Series 2008B bond indenture documents. Funds are received for deposit and disbursed via Wire/ACH and inter-bank transfers. If new accounts are established during the contract period they will be opened and maintained under the same contractual provisions. Any or all Port funds may be maintained and invested outside this contract. The Port will be under no obligation to maintain funds in the Offeror s institution. The Port may direct funds to pools or investments. 5

6 V. SUBMISSION FORMAT & INSTRUCTIONS By submitting a proposal in response to this RFP, Offeror s will be deemed to agree to the mandatory contract and service provisions contained herein. The proposal submitted will be incorporated into and form the basis of the banking service contract. In order to equitably evaluate each Offeror s ability to meet the banking service needs of the Port, a standard format for all proposals is required. Responses shall be in the order given, answering all questions, stating acceptance of, modifications or additions to, or a statement of inability to provide said service. Only proposals submitted in the prescribed format and using the provided Appendices will be considered and evaluated for contract award. 1. Cover Letter (One page preferred). The letter should designate the Offeror institution, address of office where the relationship will be domiciled, the address of local presence, if different, and be signed by an authorized officer. No pricing information should be included in the cover letter. 2. Service to Public Sector (Three page maximum preferred). Respond to the following: Overview General overview of Offeror, governmental client service philosophy, corporate organization including identification of government service unit and location of corporate, processing center, and branch localities. Experience Describe Offeror s direct experience in servicing public sector clients. Include the number of public sector clients and the dollar amount of public funds on deposit. Indicate whether Offeror will be able to comply with transaction confirmations and respond to other requests for data as needed by the Port s auditors. Relationship Management Identify the size and scope of Offeror s public banking unit, name and title of officers responsible for the Port s accounts, and the relevant credentials and experience of each person. Please identify who will be designated as Offeror s relationship manager for the Port. CRA Rating and Community Involvement - Provide evidence of compliance with the Community Reinvestment Act (CRA) by indicating rating and date of such rating. Also describe any specific project(s) and/or community involvement activity in the Port district. Are donations or in-kind contributions made to public agencies? If so, provide examples. Collateralization of Deposits Provide name of safekeeping institution for collateralization of, at a minimum, 102% margin of all time and demand deposits above the FDIC insured limit of $250, References (One page preferred). Please provide three (3) local references that are of similar scope of service utilization as the Port. Local government references are preferred. Include the following information for each reference: Contact Name & Title Name and Address of Business or Government Telephone Number Number of Years as Customer Services Provided 6

7 4. Offeror must provide the following: - audited financial statements for the most recent fiscal year, - a copy of the current call report, and - a statement regarding any recent or foreseen merger or acquisition. 5. Fees and Charges (Two page maximum preferred). The Port currently compensates for bank services primarily with compensating balances. To evaluate the relative benefits and costs of paying for services through direct fees, compensating balances, or a combination of the two (blended), information concerning earnings credit rate, reserve requirements, and insurance fees on deposits are required. List Offeror s Earnings Credit Rate (ECR), and how calculated and applied. List Offeror s actual ECR for past 12 months. Explain how and when FDIC assessment is computed and charged. Does Offeror provide an option of paying for services through direct fees, compensating balances, or a combination of the two (blended)? Describe any differences in related costs to the Port with either option. Does Offeror provide an option to charge analysis fees based on an average balance over a one year period? Describe procedures used to make adjustments to Account Analysis Statements and amount of time required to make adjustments. Provide sample of Account Analysis Statement. A complete account analysis will be required monthly regardless of the payment basis. Should new services be required during the contract period not contemplated by the RFP, those services will be provided at not more than Offeror s current published rate. VI. REQUIRED BANKING SERVICES 1. Automated Cash Management Information. The Port requires web-based cash management services and daily balance reporting, for timely access to balance information and transactions. Imaging of all checks (front and back) and image retention is required. Imaging of deposit items also is preferred. Preferably monthly statements and account analysis will be available in electronic form along with archiving of information. Minimum on-line services should include balance reporting, stop payment process, ACH payments and receipts, EFT payments (payroll tax payments), wire transfers and account transfers. Direct deposit capabilities for Port s bi-weekly payroll disbursements where employee net earnings are directly transferred; employees. Daily balance reporting should include detail on all transactions with summary reporting on closing ledger and collected balances along with one-day float, at a minimum. Off-site backup and provisions for continuation of services in local or regional disaster situation. 2. Deposit Services. The majority (approximately 99%) of Port funds are received via Wire/ACH payments and/or checks. Cash is rarely received. Checks are currently deposited utilizing a remote desktop deposit system. The Port requires Offeror to provide these deposit services. 7

8 3. Collateralization of Funds. The Port requires Offeror to obtain and maintain acceptable collateral sufficient to cover all anticipated time and demand deposits, above the FDIC insured limit of $250,000. Securities used to pledge must be held in an independent third-party safekeeping institution outside any holding company of Offeror. Offeror will execute a tri-party safekeeping agreement with the Port and the Safekeeping institution for safekeeping of these securities. Collateral will be maintained at a minimum of 102% margin of principal plus accrued interest and marked to market at least once a month. Control will be shared jointly between Offeror and the Port. Substitutions must be approved by the Port, and such approval will not be unreasonably withheld. Substitutions of collateral must be requested in writing and new collateral must be received before the existing collateral is released. The Port shall receive monthly reporting of collateral pledged including description, par value, market value, and cusip number directly from the custodian. The Offeror shall be contractually liable for the daily monitoring and maintenance of collateral at the Port s required margin level. Monthly reporting of this daily monitoring is required. 4. Investments Services. The Port will separately bid security purchases as permitted by the Port s Investment Policy. In accordance with applicable law, the Offeror awarded the contract will be required to review this Policy and complete the required certification verifying such review (see Investment Policy attached). The Port may choose to purchase securities from the Offeror. However, securities purchased will be competitively bid at the time of purchase. They shall be purchased on a DVP (delivery verses payment) basis, transferred via book entry to the account of an independent third-party institution with ownership documented by original clearing confirmation and safekeeping receipts. Funds for investments will be drawn from one of the Port s time and demand accounts. All principal and interest payments, coupon payments, and maturities must receive automated same day collected credit without requiring any additional Port action. 5. Safekeeping Services. The successful Offeror will serve and act as the custodian for the Port in the safekeeping of investment securities purchased by the Port. A separate Safekeeping and Custodian Agreement setting forth the terms and conditions of such safekeeping services shall be executed by and between the Port and the successful Offeror at such time as the safekeeping services are requested by the Port. 6. Service Enhancements & Additional Services. Based on the information provided in this RFP and Offeror s knowledge of the public sector, please describe any services or technological enhancement and cost information, not previously mentioned, that may be considered for further improving the effectiveness of the Port s financial management operations. These services are not required but will be evaluated in terms of availability, feasibility, service levels, service providers and costs. The Port will make its determination after receipt of proposals as to whether a service will be used. If the service is accepted later in the contract period, the service and charges stipulated in the proposal will be applied. Offeror agrees to provide any other banking related services not heretofore specifically mentioned, which the Port may require or request from time to time. The cost of such services shall be negotiated and mutually agreed upon at the time of such request for additional services. 7. Relationship Manager. To insure contract implementation and continuation of service levels, a primary relationship manager for automated and treasury services at the Offeror s local facility must be assigned to the Port s account. The person needs to understand the needs of the Port, be able to coordinate services, expedite the solution of any problem encountered, and meet with Port staff on banking matters as needed. 8

9 VII. EVALUATION OF PROPOSALS This RFP seeks proposals from eligible financial institutions to provide banking services to the Port. In any and all cases, the primary objective of the Port is to obtain the highest quality and greatest diversity of services, and maximize earnings potential at the lowest possible cost. Selection will be made from a short list of Offerors deemed to be fully qualified and best suited among those submitting proposals on the basis of the evaluation factors listed below (not in priority order): Understanding of the needs and operations requirements of the Port Experience, resources, and qualifications of the financial institution and individuals assigned. Relevant experience managing similar accounts relationships with public sector clients. Net earnings (defined by deducting costs from interest earnings). Location(s) of facility(ies). Scope of services offered including degree of automation. Financial strength of proposing institution. Adequacy of financial controls and protection against loss. Value of any new product or service suggestions or other new ideas and enhancements. Compliance with the requirements of this RFP and quality of proposal. Proposed fees and compensation. 9

10 Information about the Port of Port Arthur Navigation District Appendix 1 KEY PERSONNEL NAME Executive Port Director Floyd Gaspard fgaspard@portofportarthur.,com Director of Finance Judy Bettis jbettis@portofportarthur.com Deputy Port Director Larry Kelley larryk@portofportarthur.com FINANCIAL INFORMATION Total Revenues (Operating & Non-Operating) $ 16,101,096 (see attached Audit Report) Total Expenditures (Operating & Non-Operating) $ 13,666,275 (see attached Audit Report) Total No. of Employees (Full-time, No part-time) 18 No. Employees on Direct Deposit 18 Frequency of Payroll Bi-Weekly Avg. Monthly Positive Collected Balance $1,450,000 ESTIMATED ACCOUNT VOLUME (All Accounts) Est. Monthly Volume Account Maintenance Combined Accounts Account Statements 7 (All Accounts) Account Analysis Combined Accounts 1 Desktop Deposit Credit Posted & Maintenance Fee 20 Desktop Deposit, Bank Deposit Item 5 Desktop Deposit, Non-Bank Deposit Item 25 Debits Posted 24 DDA Checks Paid 121 Electronic Credits Posted 77 ACH Received Item 17 ACH Payments Online Batch Release 2 Internet ACH One Day Item 52 Internet ACH Base Fee Monthly 1 Wire in Domestic 16 Wire in International 2 Wire-Outgoing Domestic 10 Wire Book Transfer 2 Previous Day s Activity Report Mthly Fee Previous Day Activity Report, Detailed 200 Other (Provide Details) 10

11 Information Prepared By Offeror Appendix 2A OFFEROR GENERAL INFORMATION Offeror Information Name: Address: City, State, Zip Code: Telephone/Web Address: Fax: Offeror Contact Name: Phone/ Contact: Check Applicable Listing: Nationally Chartered Bank Member Federal Reserve Texas Chartered Bank Member - FDIC Authorized Municipal depository in Texas Domiciled or have a presence located within the Port of Port Arthur Navigation District Certified/Cashiers Check: Enclosed in the sum of $ Financial Information: Enclosed Audited Financial Statements Enclosed Call Reports Community Reinvestment Act Information: FDIC Compliance Examination Rating FDIC Compliance Examination Date 11

12 Information Prepared By Offeror Appendix 2B NET EARNINGS ESTIMATE NOTE: This page must be returned and completed for all proposals to be considered responsive to this RFP. Earnings Potential Estimates Earning Potential, Specify APR% and Base Rate Monthly Amount Annual Amount Cost of Service Estimate Summary from Appendix 1 Volume Per Month Per Year Page 1 Page 2 Totals Net Earnings Estimate Estimated Net Earnings Per Month Per Year Compensating Balance Requirement (if any) Amount (if none, state so) Per Month Per Year 12

13 Information Prepared By Offeror Appendix 2C NOTE: This page must be returned and completed for all proposals to be considered responsive to this RFP. Cost of Service Information Rate Est. Monthly Cost Est. Annual Cost Account Maintenance Account Statements Account Analysis Desktop Deposit, Credit Posted & Maint. Fee Desktop Deposit, Bank Deposit Item Desktop Deposit, Non-Bank Deposit Item Debits Posted DDA Checks Paid Electronic Credits Posted ACH Received Item ACH Payments Online Batch Release Internet ACH One Day Item Internet ACH Base Fee Wire-in Domestic Wire-in International Wire-Outgoing Domestic Wire Book Transfer Previous Day Activity Report Previous Day Activity Report, Detailed Other (Provide Details and additional attachment if needed): Total Costs $ $ Volume Statistics Utilize volume information provided on Appendix 1 to determine monthly and yearly cost. Please note that charges listed above may not correspond to the way Offeror charges for a particular service. If a particular service is on another basis than noted, make appropriate changes in volume basis. Proposal must note and estimate volumes for any line items where volume figures are left blank by the Port. Other Charges If there are other charges, they must be noted, clearly defined and extended based upon estimated volume. This is a requirement. Any charge for services not addressed will not be allowed during the course of the contract. If there is no charge for any of the services listed, please note with N/C in the extension column. Additional page may be included for other charges. 13

14 Information Prepared By Offeror Appendix 2D BANK CREDIT EVALUATION NOTE: This page must be returned and completed for all proposals to be considered responsive to this RFP. LIQUIDITY RATIOS Loans to Deposit Ratio: Loans to Assets (minus plant & equipment) Ratio: Cash & Equivalents to Total Assets Ratio: Percent of Assets Maturing in One Year: ASSET QUALITY RATIOS Current Loan Losses to Total Loan Ratio: Reserve as a Percent of Total Loans: Non-performing Loans to Total Loans: PROFITABILITY INDICATORS Return on Assets (ROA): Return on Equity (ROE): STRENGTH RATIOS Capital to Deposits Ratio: Capital to Loans Ratio: Capital to Assets Ratio: MANAGEMENT INDICATORS Percent of Net Charge-Offs to Loans: 14