Request for Proposal - Depository Services

City of Nassau Bay, Texas
Request for Proposal - Depository Services
I. INTRODUCTION
The City of Nassau Bay, Texas (the "City") is a home-rule city located on a triangular peninsula
that encompasses 1.5 square miles, with NASA Road 1 forming its northern boundary. The
community shares boundaries with Webster, Houston, and Pasadena, Texas. The City has a
population of approximately 5,347 residents. The annual operating budget is $7.4 million, and
the total budget is $18.3 million.
The City is requesting proposals for a bank depository services contract, with service to begin
January 1, 2027, and continue through December 31, 2029. The City may extend the agreement
for an additional two-year period under the same terms and conditions, subject to the mutual
written agreement of both parties. The contract will also provide for an extension period not to
exceed one hundred twenty (120) days for the transition to the new bank depository.
Through this contract, the City intends to minimize banking costs, improve operational efficiency,
and maximize its investment capabilities, all while maintaining a good working relationship with
the depository bank and fully complying with applicable federal and state laws, including the
requirements of Texas Local Government Code Chapter 105, as amended. This Request for
Proposal (RFP) represents the City's cash management goals and specifies all required
qualifications, banking services, estimated activity volumes, methods and terms of
compensation, submission instructions, and contract award provisions. Qualified institutions are
invited to submit a proposal.
II. PROPOSAL QUALIFICATIONS AND SUBMISSION INSTRUCTIONS
By submitting a proposal in response to the RFP, depositories 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 services contract.
1. Local Presence - A local presence is important to the City. Therefore, only depository
institutions with full depository service capabilities located within a three-mile radius
of City Hall located at 1800 Space Park Dr., Nassau Bay, TX 77058 will be considered.
2. Proposal Format - This RFP is being issued in electronic format only. Proposals must
be submitted electronically on a USB drive. No hard copies of the RFP will be made
available or accepted. To be eligible for consideration, proposals must be received no
later than 1:00 pm CST on October 22, 2026, at the address listed below and clearly
marked as follows:
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City of Nassau Bay, Texas
Request for Proposal - Depository Services
Request for Proposal
Depository and Banking Services
RFP No. 2026-02
Two complete electronic copies of the institution's proposal must be submitted to: City
of Nassau Bay, 1800 Space Park Dr., Suite 200, Nassau Bay, TX 77058. Proposals received
after the deadline will not be accepted and will not be returned. Questions regarding the
RFP or the services requested will be accepted by email only and must be submitted to
jaime.vasquez@nassaubay.com no later than 4:00 pm CST on October 13, 2026.
Responses to all material questions received by the deadline will be posted at
www.nassaubay.com/bids.aspx by 4:00 pm CST on October 14, 2026.
The RFP specifications may be obtained at www.nassaubay.com/bids.aspx. There is no
charge to view or download documents.
Each proposal must include a transmittal letter signed by an individual authorized to bind
the institution. The transmittal letter must state that the proposal is valid for 180 days
from the submission date and must provide contact information for the individual
responsible for the proposal. Information provided in the letter, but not included
elsewhere in the proposal, will not be considered a response to specific proposal
requirements.
The City Council reserves the right to waive any informalities, reject any or all proposals,
and accept the proposal that, in its judgment, is most advantageous to the City.
3. Schedule for Proposal Submission - The City will make every effort to adhere to the
following schedule.
Wednesday, September 30, 2026 Release of Request for Proposal
Wednesday, September 30, 2026 Advertise Bank Depository Notice in local
Wednesday, October 7, 2026 newspaper
Thursday, October 22, 2026 - 1PM CST Proposal Submission Deadline
Monday, November 9, 2026 City Council Award of Contract
Friday, January 1, 2027 Contract Commencement
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City of Nassau Bay, Texas
Request for Proposal - Depository Services
4. Selection Criteria - The following criteria will be used by the City as the weighting basis
for the evaluation of the proposals and award recommendation.
30% - aggregate cost of banking services
30% - ability to provide services required (including customer service capability)
20% - location in relation to City & City limits
10% - creditworthiness of bank, experience and continuity of bank and bank officials,
other public entity references
10% - completeness and clarity of proposal
5. Additional Information - The City reserves the right to request additional information
or to meet the representatives from proposing organizations to discuss points in the
proposal after opening of proposals.
6. Proprietary Information - To the extent permitted by law, proposals will be opened in
a manner that avoids disclosure of the contents until after award of the contract.
Proprietary information contained in the proposal should be designated as such on
each page containing the restricted information.
7. Fees and Charges - The contract payments will be made on a fee basis. Within five (5)
business days of receipt of the monthly account analysis, if no exceptions are found
or objections are made by the City, the bank may direct debit the designated account
for fees due.
All per-item charges will remain at the proposal price quoted for the initial three years
of the contract period, regardless of changes in service volumes during that period.
Should new services not contemplated by this RFP be required during the contract
period, those services will be provided at no more than the bank's then-current
published rate.
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City of Nassau Bay, Texas
Request for Proposal - Depository Services
III. FINANCIAL ENVIRONMENT OVERVIEW
The City operates under a consolidated account structure and maintains a general disbursement
account which serves as the checking account for all City operating funds. The approximate
number of checks and electronic payments issued annually is 2,000 and the approximate number
of annual deposits including electronic ACH and banking center deposits is 2,200.
Currently, the City's primary depository account is a non-interest-bearing checking account.
Through this RFP and contract process, it is the City's goal to maximize returns throughout our
banking and investing structure.
Credit cards are currently handled through a separate merchant services agreement and the City
is not looking to change merchant services providers.
Any and all City funds may be maintained and invested outside this contract. The City will be
under no obligation to maintain funds in the bank. The city will continue to direct excess funds
to pools or other investments at its discretion.
IV. GENERAL STATEMENT OF BANKING SERVICES REQUIRED
The banking services described in the RFP are directed toward four goals:
- Safety of City funds and securities,
- 100% utilization of idle funds,
- Efficient utilization of banking services; and
- Minimization of banking costs for the City.
The City needs to make its banking services as efficient and cost effective as possible. A high
priority will be productive automated services and reporting. The envisioned account structure
is designed to capture the highest available returns on all funds on a daily basis and to minimize
inter-account transfers along with minimizing costs.
Current account structure includes: (1) Primary Operating Checking Account with minimum
balance to offset account analysis fees, (2) Interest-earning Checking Sweep Account for nightly
sweep of all funds above minimum balance in primary operating account, (3) EMS Non-Interest
Earning Account, (4) Grant Non-Interest Earning Account, (5) High-Yield Money Market Account
(6 transactions per month).
V. FINANCIAL INSTITUTION QUALIFICATIONS
The proposal must include a response to each question in Section V.
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City of Nassau Bay, Texas
Request for Proposal - Depository Services
1. In order to fulfill the City's fiduciary responsibility to protect public funds, all banks
submitting proposals will provide, in response to each item:
a. Audited financial statements for the most recent fiscal year,
b. A statement regarding any recent or foreseen merger or acquisition.
2. How is the bank chartered?
3. What percent of current loans are classified as non-performing?
4. Does the bank have any significant problems noted by regulatory agencies in the past
twenty-four (24) months? If yes, please explain.
5. Indicate the bank's capital to asset ratio and return on assets (ROA) for the last
(5) years.
6. Attach copies of the bank's most recent FDIC (UPBR) call reports.
7. Is the bank a branch bank or will it soon become a branch bank? If so, please indicate
which services will be provided from the Bank's present location, and which will be
provided from the main bank.
8. Please list all service locations within the Nassau Bay city limits as well as within a 3.0-
mile radius of City Hall (1800 Space Park Dr., Suite 200, Nassau Bay, TX 77058).
9. Describe the background/experience of the team who will be primarily responsible
for directing the work that will be performed pursuant to this proposal. This inquiry is
intended to encompass the institution's staff who will be engaged on a daily basis in
directing the performance of the work.
10. Describe the experience of the financial institution in providing similar services for
other public clients.
11. List references from at least three current, comparable government clients using
services similar to those requested in this RFP. Include a contact person, their title and
telephone number.
12. Provide the bank's most recent bank rating. The bank will be responsible for notifying
the City of any change in this rating during the contract period as soon as possible.
13. Provide the Community Reinvestment Act (CRA) rating and rating authority of the
bank and include any additional information on the bank's CRA activity within the City.
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City of Nassau Bay, Texas
Request for Proposal - Depository Services
14. Provide a proposed plan and timeline for implementation of the contract including
activities and responsibilities of the City and the bank. Plan should include information
regarding necessary training for City users for any hardware or software components.
15. Provide a copy of all agreements (even if not directly referenced in this RFP) which will
be required to be executed under the contract. Include any general depository or
collateral agreement to be executed.
16. In accordance with state statutes, each proposer should review the City's Investment
Policy and complete the required certification verifying the review (see Attachment
B).
17. Briefly describe your institution's disaster recovery plan.
VI. REQUIRED BANKING SERVICES
The proposal must include a response to each of the questions in Section VI and all associated
fees must be detailed in Attachment A with pricing for both a 3-year term and a 5-year term.
1. CONSOLIDATED ACCOUNT STRUCTURE WITH SWEEP MECHANISM - The City
currently uses a sweep mechanism with its existing account structure, with funds in a
general disbursement account that allows all funds to be swept daily to an interest-
bearing checking account. Interest should accrue and be credited to the individual
accounts monthly.
1.1 Describe the bank's ability to provide such a structure.
1.2 Describe how sweep activity will be reported.
1.3 Describe how interest from the sweeps will be reported (at the account level or
otherwise).
If the bank cannot provide a sweep mechanism, or if alternative account types are
proposed, describe the account structure proposed including the type of accounts
(interest bearing, NOW, money market, ZBA, repurchase agreement, etc.) along with
the overall account structure.
1.4 Provide the proposed computation basis for interest bearing accounts, if
applicable.
1.5 If alternatives to using non-sweep accounts are proposed the net cost effect
should be indicated.
The City may open additional accounts or change accounts during the contract period. If
this occurs the new accounts shall be charged at the same contracted amount.
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City of Nassau Bay, Texas
Request for Proposal - Depository Services
2. AUTOMATED CASH MANAGEMENT INFORMATION ACCESS - The City requires
automated cash management services and balance reporting for timely access to
balance information and transactions. Minimum automated services should include
stop pay, account transfers, wire transfers, and positive pay. Daily balance reporting
should include detailed transactions and summary account information with closing
ledger, available balances and one-day float at minimum.
2.1 Describe the bank's service capabilities and whether service is to be web-based.
2.2 Describe the bank's automated reporting system, its capabilities and back-up
provisions.
2.3 Provide access times and update times for daily information.
2.4 List all information available online at both summary and detail levels.
2.5 Submit samples of major screens and reports available and specify all City
hardware and software requirements.
2.6 How many hours has the system been down in the last six months?
2.7 Describe the back-up process for online balance reporting.
2.8 Describe the bank's security features. Is there a dual PIN requirement? Can access
be restricted by account and amount?
2.9 Describe any mobile banking features that may be available.
3. STANDARD DEPOSIT SERVICES - Standard commercial deposit services are required.
The majority of deposits will be made to the general disbursement account. The City
anticipates a daily deposit by employee/courier. The City has utilized remote capture
in the past but has stopped using this service due to the time-consuming
administrative process. We would be interested in information regarding any
technology and ease-of-use improvements related to remote capture in the last (3)
years. All deposits received by the bank's established deadline must be processed
same day. The bank will guarantee immediate credit on all incoming wire transfers,
on-us items, and U.S. government maturities and coupons with all other checks
clearing based on the bank's published availability schedule. Failure to credit the
account will require payment reimbursement to the City at the then current Fed Funds
rate.
3.1 What is the bank's availability schedule?
3.2 Describe the bank's provision for the night deposit drops. (These services proved
very important during Covid when there was limited lobby access.)
3.3 Where are the deposit locations?
3.4 What security measures are used on deposits?
3.5 What is the cut-off to assure same day ledger credit?
3.6 Describe remote capture equipment, hardware & software requirements.
3.7 We use a locked, re-useable deposit bag to allow for the secure deposit of funds
by a Police Officer. The City and the Bank each hold a key. We desire to keep using
such a locking deposit bag for daily in-person deposit.
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City of Nassau Bay, Texas
Request for Proposal - Depository Services
4. STANDARD DISBURSING SERVICES - Standard disbursing services for all accounts are
required to include the payment of all City checks without charge upon presentation.
Because of the proliferation of fraudulent checks, advance reconciliation (positive
pay) services are a required feature. Describe the bank's automated positive pay
(advance reconciliation) services. The City will be using the positive pay feature for all
general disbursement accounts. The City utilizes a payroll company and individual
payroll checks will not be disbursed from the City account.
4.1 Describe all information transfer requirements (digital file transmission, etc.) and
notification times.
4.2 What options are available for transmittal of individual check information or
deletes to the bank?
4.3 Are teller checks verified against the file? How often is teller information updated?
4.4 If not verified, what is the process and security on OTC transactions?
4.5 How is exception information reported to the City? What is the default
disposition? What review or range criteria are available for exceptions?
5. WIRE TRANSFER SERVICE - Incoming wire transfers must receive same day credit.
Wire initiation and monitoring should be available over the automated system. The
City will require compensation for delays caused by bank errors at the day's Fed Funds
rate.
5.1 List the available methods of wire initiation.
5.2 Describe the system to be used and the required repetitive and non-repetitive
wire procedures and confirmations. Include a description of security provisions,
PINS, and back-up systems.
5.3 What secondary authorization features are available?
5.4 What is the availability of future dating of wires and storing vendor information
for repetitive wires?
5.5 State wire access times, incoming notification, posting times, and required
authorizations.
5.6 State the bank's policy on the use of balances for outgoing wires in anticipation of
daily activity or incoming wires. Include a copy of your standard wire agreement
as an attachment.
6. OPTICAL IMAGING - Describe the bank's optical imaging process and what items are
captured (checks, statements, deposited items, etc.)
6.1 Describe the service and provide sample reports and screen layouts.
6.2 Describe any City software or hardware requirements.
6.3 Describe all retrieval capabilities.
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City of Nassau Bay, Texas
Request for Proposal - Depository Services
7. ACH SERVICES - ACH service is required. ACH is currently used for many transactions
including payroll lump sum, bank drafting utility bill payments, and some accounts
payable transactions as well.
7.1 Describe the bank's ACH service availability online.
7.2 State data transfer alternatives (online, etc.).
7.3 Provide required deadlines, formats, and reports.
7.4 What are the dollar threshold caps on ACH transactions?
7.5 What process is used for reversals and corrections?
7.6 How is notification of ACH returns provided to the City?
7.7 Confirm status as both a sending and receiving bank of the National Automated
Clearing House Association (NACHA).
8. ACCOUNT RECONCILIATION - The City plans to evaluate all levels of reconciliation. No
physical checks are required.
8.1 Describe the level of reconciliation services available and automation alternatives.
8.2 Specify data transmission alternatives (online, etc.).
8.3 Are images available online? When? For how long?
8.4 Provide samples of account reconciliation reports.
9. LOCKBOX - The City does not currently utilize lockbox services via our depository but
instead contracts with a vendor to receive and process e-checks. The City would be
interested in considering options via our depository to directly receipt e-checks for
processing, eliminating the need for the third-party contractor. Please describe the
bank's lockbox capabilities.
9.1 City would potentially use this service for approximately 2,500 e-checks issued
predominantly by residential utility customers.
9.2 Please describe the bank's process for utilizing lockbox services including:
9.2.1 Deadline and format of data transmissions
9.2.2 Current lockbox address and location requirements
9.2.3 Location of processing centers
9.2.4 Handling of items that cannot be processed or returned items.
9.2.5 Resolution and timeframe for processing errors
9.2.6 Remittance document layout requirements
9.2.7 Treatment of exception items
9.2.8 Imaging capabilities
9.2.9 Conversion of consumer checks to ACH payments
9.2.10 Disposition of documents
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