ORDER NO. 31256 BANK DEPOSITORY CONTRACT WITH SECURITY STATE BANK AND TRUST Came to be heard this the 13th day of April, 2009, with a motion made by Commissioner Baldwin, seconded by Commissioner Williams, the Court unanimously approved by a vote of 4-0-0 to: Approve extending the current Bank Depository Contract with Security State Bank and Trust for an additional two years per Local Government Code Chapter 116. 1 ~ ~~ 3/~S~ COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND ONE COPY OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: Mindy L. Williams MEETING DATE: April 13, 2009 OFFICE: County Treasurer TIME PREFERRED: 9:15 a.m. SUBJECT: (PLEASE BE SPECIFIC) Consider, discuss and take appropriate action to extend current bank depository contract with Security State Bank and Trust for an additional two years per Local Government Code Chapter 116. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Mindy L. Williams ESTIMATED LENGTH OF PRESENTATION: 10 minutes IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays THIS REQUEST RECENED BY: THIS REQUEST RECEIVED ON: 5:00 P.M. previous Tuesday. All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards your request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. -~-+ ~ ~ _ ~ ~ ~ Q O ~ ~--+ U ~' O L ~ U ~ ~ N N ~ Z ~ ~ ~ ~ ~ ~ U ~ a ~ 0 ~ ~ L °' ~ ~ V ~ ~ ~ m ~ ~ ~ ~ ., i - ~ ~ v ~ ~ ~ ~ ~' o a~ ~ ~ ti ~ ~ L ~ N = 0 ~ O N cn ~ U .~ yN{, W ^- o N ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ o o ~ O ~ U ~n V ~ ~ o o ~ o O N N N ~ .. O C'7 O '~ N ~ .~ ~ ~ ~ ~ O U ~i .~ c~ a~ N c~ ~t '~ } SPECIFICATIONS AND BID SHEET FOR COUNTY DEPOSITORY OF KERR COUNTY, TEXAS Honorable Commissioners' Court Kerr County, Texas Members of the Court The undersigned Bank, hereinafter referred to as Depository Bank desires to offer its bid for the depositing of Kerr County funds, road and school funds, trust funds of the County and District Clerks of Kerr County, Tax Collector's funds and all general and special funds of every nature, which the County of Kerr may tender for deposits for the term beginning with June 1, 2005 through May 31, 2009. 1. Bank Information Amount of Paid-up Capital Stock Permanent Surplus Total Stockholder's Equity as of Date April 29, 2005 Current Bank Credit Rating By: Moody' s Standard & Poors $ 500,000.00 $ 23,590,560.00 $ 60,407,708.30 See addendum See addendum 2. The Depository Bank will comply with all provisions of Section 116 and 117, of the Texas Local Government Code, and all other laws of the State of Texas relating to County Depositories, Depositories for the trust funds of County and District Clerks, and School Fund Depositories or general or special funds herein enumerated now in effect or that may hereafter be passed. We also agree to perform all duties therein specified all will execute any and all instruments and documents necessary to evidence our obligation to the County of Kerr. In accordance with Section 116, of the Texas Local Government Code, within fifteen (15) days after the selection of the Depository Bank, it shall be the duty of the Bank to qualify as Depository in the manner set forth by the Commissioners' Court. 3. The Commissioners' Court will select the form of securities pledge 1 .' contract or surety bond used to secure the funds of the County. The condition of the personal bond or bonds, or contract for securities pledged shall be conditioned for the faithful performance of all the duties and obligations devolving by law upon such depository, and for the payment upon presentation of all checks drawn upon any "demand deposit" account in any depository by the County Treasurer or Kerr County, and all checks drawn upon and "time deposit" account; upon presentation after the expiration of the period of notice required in the case of "time deposits"; and that said County funds shall be faithfully kept by said Depository and accounted for according to law. The amount of the securities so pledged or surety bond executed shall be fixed by the Commissioners' Court and the market value of said securities or amount of surety bond shall be equal to or exceed total collected funds on deposit at any and all times. Whenever there shall accrue to Kerr County or any subdivision thereof, fund in excess of the amount of securities so pledged or surety bond so executed, the Depository Bank agrees to make additional pledges or provide additional surety in amounts sufficient to cover the increased deposits. Correspondingly, when Kerr County funds shall be reduced below the amount of securities pledged or surety bond executed, the Commissioners' Court will permit the Depository Bank to withdraw securities or reduce the bond in the amount of such excess. Kerr County is to be placed at no expense in connection with the supervision or substitution of the securities pledged, or the handling of surety bonds. Said securities shall be placed for safekeeping with any approved financial institution which shall provide the County Treasurer with safekeeping receipts for all transactions. Monthly reports, or more often if required, of all collateral securities shall be provided to the County Treasurer which shall be include the par value and market value of each. Surety Bonds approved by the Commissioners' Court shall be handled and filed in accordance with the Statutes of the State of Texas. 4. The Depository Bank will furnish bond and/or collateral as required 2 by law. It is understood that the Commissioners' Court of Kerr County shall approve all collateral and/or surety bond executed by the Depository Bank in behalf of or pursuant to this Contract. It is understood that the Depository Bank may substitute securities between meetings of the Commissioners' Court with right of approval maintained for the next official meeting of the Commissioners' Court, provided that the minimum collateral as required by law, is maintained at all times. 5. In accordance with these statutes, this Contract will take effect as soon as bond be given and approved by Commissioners' Court and/or as soon as a pledge contract be approved by Commissioners' Court and said Contract shall remain in effect until sixty (60) days after the time fixed for the next selection of a Depository Bank. The maximum maturity date of any time deposit or other interest bearing instrument with the Depository Bank under the terms of this Contract shall be 90 days beyond the time fixed for the selection of the next Depository Contract. 6. The Depository Bank shall serve as a Repository for Kerr County, and as a source of Kerr County investments, along with Financial Brokers, contracted with Kerr County, in secured investments allowed under Federal and State law and in accordance with the Kerr County Investments Policy. 7. The Commissioners' Court of Kerr County shall determine and designate from time to time, as outlined in Section 6. of this Contract the character and amount of Kerr County funds which will be deposited by it in the Depository Bank that shall be "demand deposits", and similarly the character and amount of funds which shall be "time deposits" at such rate or rates as may be lawful and stipulated in the Depository Contract. The term "demand deposits" as used herein shall mean any deposit which is payable on demand and the term "time deposits" as used herein shall mean any deposit placed with the Depository Bank for a specified period of time, in a specific investment instrument as legally allowable. Time deposits and other investment instruments may be withdrawn by Kerr County prior to the expiration of the specified time period upon written notice in advance of said withdrawals and subject to routine 3 s~ penalties, if any, imposed by banking law, which shall be paid from earnings credits. 8. The Depository Bank will pay interest on Kerr County time deposits, on funds outlined under Section 6. of this Contract, at a fixed rate if Bid Alternative #1 is accepted or a variable rate if Bid Alternative #2 is accepted. 4 BID ALTERNATIVE #1 FIXED RATE 1 - 31 - 61 - 91 - 181 - 1 - 6 days 7 - 13 days 14 - 29 days 30 - 59 days 60 - 89 days 90 - 179 days 180 - 365 days Rate of Interest „/~ Q n/a g n/a ~ n/a ~ n/a ~ n/a $ n/a BID ALTERNATIVE #2 VARIABLE RATE 30 days = 91 day Treasury Bill Bond Equivalent See Yield plus ~.ddendum Basis Point 60 days = 91 day Treasury Bill Bond Equivalent See Yield plus addendum Basis Point 90 days = 91 day Treasury Bill Bond Equivalent See Yield plus addendum Basis Point 180 days = 180 day Treasury Bill Bond Equivalent See Yield plus addendum Basis Point 365 days = 180 day Treasury Bill Bond Equivalent See Yield plus addendum Basis Point 5 9. Under the acceptance of either Bid Alternative #1 or #2 in Section 8. of the Specifications and Bid Sheet and in accordance with the Depository Institutions Amendments of 1982 the Depository Bank will allow Kerr County to maintain Money Market Investment Accounts, or equivalents, for funds as outlined in Section 6 of this Contract. The Depository Bank will pay interest on the accounts on the following basis and rate: See addendum 10. Under the acceptance of either of the Bid Alternatives in Section 8. of the Specifications and Bid Sheet and in accordance with the Depository Institutions Amendments of 1982 the Depository Bank will allow Kerr County to maintain Negotiable Orders of Withdrawal (NOW) Accounts, or equivalents, for funds as outlined in Section 6 of this Contract. The Depository Bank will pay interest on the accounts on the following basis and rate: See addendum 11. Article 837a, Revised Civil Statutes of Texas, requires the Depository Bank to provide for the care, safekeeping and custody of securities in which the sinking funds for the redemption any payment of outstanding bonds may be invested. Access to said securities will be permitted only by Commissioners' Court Order and in the presence of authorized representatives of the Depository Bank, County Treasurer, and County Auditor. No original Securities shall be withdrawn except on written order of Commissioners' Court recorded in its minutes. Appropriate records for maintaining the securities will be prescribed by the County Auditor. In accordance with Article 837a, Revised Civil Statutes of Texas, Section 140.002 of the Local Government Code, and Article 836, Revised Civil Statutes of Texas, it is understood that Kerr County may invest any interest and sinking funds and year-end balance general funds in accordance with Section 6. of this Contract. 12. In accordance with Section 6. of this Contract, Kerr County may invest Kerr County funds in Security Repurchase Agreements, with the Depository Bank in accordance with Section 116.112 of the Texas Local Government Code in amounts specified to the Depository Bank by the County 6 }, ~ Treasurer and authorized by the Commissioners' Court. The County Treasurer will notify the Depository Bank of such transactions by an agreeable time daily. It is understood that Securities involved in Repurchase Agreement purchase shall be held in a safekeeping account subject to the direction, control, and custody of Kerr County, through the County Treasurer. 13. The Depository Bank will pay interest earned on all time deposits, Money market Investment Accounts, NOW Accounts, or equivalents, Security Repurchase Agreements and any other investments of Kerr County funds invested with the Depository Bank under Section 6, of this Contract on the date of maturity and will make interest payments available to the County Treasurer in an agreeable form by and agreeable time daily. 14. The Depository Bank will provide Kerr County with Internet Commercial Services to include but not limited to Payroll Direct Deposits; Electronic Federal Tax payments; Depository transfers, etc. 15. The Depository Bank will provide Kerr County with wire transfer service through correspondent banks of the Depository Bank, through the Federal Reserve System, and as may be otherwise required, at no charge to Kerr County. 16. The Depository Bank will provide Kerr County deposit access to meet all Depository Bank deadlines for credit of check through all Clearinghouse Systems. 17. The Depository Bank will credit all cash, checks, drafts, exchange, etc., direct to the accounts of Kerr County on the day that they are actually deposited. The County Treasurer and Tax Assessor-Collector may make deposits for same day credit until 2:30 P.M. on business days. 18. The Depository Bank will handle all deposits and fund transfers as directed by the County Treasurer of Kerr County, except for those funds under the legal authority of the Tax Assessor-Collector, who shall direct those transactions. County funds shall be disbursed by the Depository Bank only in accordance with Sections 113.041-113.043 of the Texas Local Government Code. 7 19. The County Treasurer of Kerr County will be the primary liaison between Kerr County and the Depository Bank and shall handle dealings between Kerr County and the Depository Bank, unless otherwise directed by Commissioners' Court, except for those items under the direct control of the Tax Assessor-Collector, prior to deposit with the County Treasurer. The County Auditor shall have general oversight and involvement in dealings between Kerr County and the Depository Bank as may be deemed necessary, and as in accordance with the law. 20. The Depository Bank will provide Kerr County with an acceptable Account Executive Service representative whose responsibility shall be to serve as primary liaison between the Depository Bank and Kerr County. 21. The Depository Bank will charge back to various Kerr County accounts all checks, drafts, exchange, etc. which may be returned uncollected or unpaid for any reason, on the same day of rejection and to release such checks, drafts, exchanges, etc., to the County Treasurer or the Tax Assessor-Collector for purposes of collection. The Depository Bank will debit Kerr County accounts for purposes of reimbursement of such returned items, as directed by the County Treasurer. The Depository Bank will provide Kerr County with an automated stop payment program, or its equivalent. 22. The Depository Bank will direct bill Kerr County for check and deposit slip reorders in lieu of charging back to the individual accounts. 23. The Depository Bank will furnish the County Treasurer a statement of the balance in each account, together with total warrants cleared and total warrants held against each account, in numeric order, as at the end of each month. The Depository Bank agrees to reconcile any differences in account balances within 30 days following written notification of such imbalances by the County Treasurer. 24. The Depository Bank will furnish the County Treasurer a monthly report of Account Analysis for all Kerr County funds, on or before the last day of the following month, which shall include the average daily interest bearing and non-interest bearing balances for such month. 8 25. A certified check in the amount of $88,130.00 as required by law, payable to the Honorable Pat Tinley, County Judge for County of Kerr is attached hereto as our guarantee of good faith in making the application for becoming the Depository Bank for the Public Funds under the jurisdiction of Kerr County. 26. A Bank shall respond only to the Specifications and Bid Sheet and in order to be considered a responsive bid, the Bank shall fill in all blanks on the Specification and Bid Sheet, complete only the provided copy as presented, make no changes to the terminology contained herein, and provide all attachments, in completed form, as called for in this Contract. The Specifications and Bid Sheet must be signed by a duly authorized Bank Official. Upon selection of a Depository Bank and the award of the Depository Contract by the Commissioners' Court, the Specifications and Bid Sheet, and all attachments hereto, shall become the official Depository Contract between Kerr County and the Depository Bank. 27. The Commissioners' Court of Kerr County reserves the right to reject any and all bids for the June 1, 2005 - May 31, 2009 Bank Depository Contract. Respectfully submitted, Security State Bank and Trust Bank Name Signature of Bank Official May 6, 2005 Date 9 DEPOSITORY BANK FEE SCHEDULE (FOR - ) MAINTENANCE COST FOR MONTH ACCOUNT MAINTENANCE $ DEPOSITS CREDITED $ CHECKS PAID $ ITEMS DEPOSITED-ENCODED $ ITEMS DEPOSITED-UNENCODED $ STOP PAYMENTS $ CHECKS DEPOSITED RETURNED $ EXTRA STATEMENTS $ ACCOUNT ANALYSIS REPORT $ WIRE TRANSFER OF FUNDS FROM NON-CORRESPONDENT BANKS $ PAID ITEMS.LIST AND ACCOUNT RECONCILIATIONS WITH SORT $ BALANCE REPORTING INVESTMENT PROGRAM, OR EQUIVALENT $ CUSTOMER DIRECT LINK OR ACCESS (CDL/CDA) TRANSFER $ LOCK BOX DEPOSITORY SYSTEM $ ZERO BALANCE ACCOUNTS $ VAULT SERVICES $ PURCHASE OF U.S. GOVERNMENT SECURITIES $ MICRO ENCODED DEPOSIT TICKET BOOKS $ U.S. SAVINGS BOND CUSTOMERS $ PAYROLL DIRECT DEPOSIT CUSTOMERS $ LOOSE COIN ENVELOPES $ COIN WRAPPERS $ CASH STRAPS $ ENCODING BATCH HEADERS $ ENCODING CHECK CARRIERS $ 10 UNIT COST PER MONTH PER ITEM $10.00 .30 .12 .03 .05 No charge 2.00 2.00 No charge No charge n/a See addendum n/ a See addendum No charge See addendum No charge No charf~e See addendum No charge No charge No charge No charge No charge ;~ .a. , •. ENCODING LABELS PLASTIC DEPOSIT BAG SEALS MAGNETIC TAPE OF PAID ITEMS INTERNET BANKING SERVICES OTHER ITEMS Merchant Services S $ No $ n/a $ See $ See S See charge See addendum addendum addendum attachment Bank errors on debits, credits, stop payments, etc. will not be compensated by Kerr County. Other items may be added as agreeable. 11 Kerr County Depository Bid ' ~ Addendum ,~ + J 1. Enclosed are copies of the following items: A. Annual Disclosure Notice -Compares year end numbers of December 31, 2003 and December 31, 2004. Security State Bank and Trust continues to maintain capital ratios above their peer group and maintain a steady growth rate. B. Call Report for March 31, 2005 and December 31, 2004 Annual Audit Report. If there are any questions feel free to contact your bank representative at anytime. 3.&4. A monthly report would be mailed to the County which would provide a list of securities pledged to the County (see attached copy). 8. Bid alternative #2 (same). 9. The County may want to maintain money market investment accounts for some funds. These accounts limited check writing. There can only be six (6) third party withdrawals from these accounts with three (3) of those withdrawals being checks per month. There can be unlimited in-house transfers, so long as those transfers are not automatic transfers. The Bank's posted rate for Money Market accounts currently is .85%. 10. Security State Bank and Trust proposes to pay interest in the same manner as we currently pay interest to the County. All County accounts are interest bearing checking accounts with no minimum balance required. Interest is calculated on the ledger balance and credited monthly. The accounts are maintained on an analysis basis to determine if a service charge is required. There is unlimited check writing on these accounts. Images of the paid checks are returned in sequential order with the monthly statement. The Bank would pay the Bank's current posted rate for commercial interest checking accounts and it is currently .60% and that rate has remained the same since Apri12004. The Bank also has an internal sweep investment account into which collected funds from an operating account can be swept on a daily basis. The rate paid is the previous month's average Fed Funds Sold rate. These rates for the past 3 months have been. February 2.153% March 2.372% April 2.557% (See attachment for the investment sweep account disclosure.) 14. The Bank has an Internet Banking Product. There is the basic service which has no cost. The Cash Management section of Internet Banking has a hard charge of $25.00 per month fee and other analysis fees apply as well (see attached brochures). ACH services are $.15 per transaction with a $10.00 fee per transmission. See brochures for additional potential fees. 20. The County could use Mark Cowden, Sr. Vice President/Branch Manager of Kerrville Branch, phone number (830)895-2000 or Steve Watson, Sr. Vice President/Cashier, phone number (830)997-7575 in Fredericksburg (home office) as their account representative. SECURITY STATE BANK & TRUST 1130 Junction HWY • Kerrville, Texas 78028 (830) 895-2000 • Fax (830) 895-2012 www.ssbtexas.com April 3, 2009 ~~ Judge Pat Tinley Kerr County Commissioners' Court 700 Main St. Kerrville, TX 78028 Re: Extension of Depository Contract beginning June 1, 2005 and ending May 31, 2009 Dear Sir: Pursuant to the Depository Agreement attached hereto between Kerr County, Texas and Security State Bank and Trust, please sign below indicating acceptance by Kerr County, Texas that both Kerr County, Texas and Security State Bank and Trust have mutually agreed to extend said Depository Agreement for atwo-year extension under the same terms and conditions of the original agreement. The current contract would then expire May 31, 2011. Agreed to by Kerr County, Texas, this ~~~ day of ~ J , 2009 by: mle Kerr County Judge Agreed to by Security State Bank and Trust, this ~' day of (~ , 2009 by: ~~~_ The Hill Country's Bank =F~~C Established 1941 SECURITY STATE BANK & TRUST 1130 Junction HWY • Kerrville, Texas 78028 (830) 895-2000 • Fax (830) 895-2012 www.ssbtexas.com April 3, 2009 Judge Pat Tinley Kerr County Commissioners' Court 700 Main St. Kerrville, TX 78028 .~i Re: Extension of Depository Contract beginning June 1, 2005 and ending May 31, 2009 Dear Sir: Pursuant to the Depository Agreement attached hereto between Kerr County, Texas and Security State Bank and Trust, please sign below indicating acceptance by Kerr County, Texas that both Kerr County, Texas and Security State Bank and Trust have mutually agreed to extend said Depository Agreement for atwo-year extension under the same terms and conditions of the original agreement. The current contract would then expire May 31, 2011. Agreed to by Kerr County, Texas, this ~~ day of ~ J , 2009 by: role ~~~~` Kerr County Judge Agreed to by Security State Bank and Trust, this ~' day of , 2009 by: ~~~~ =FDIC The Hill Country's Bank Established 1941