Primary Depository Services DUE: August 13, 2026

SOLICITATION OVERVIEW

The City of Pflugerville, Texas is soliciting applications for:

TEXAS BID SYSTEM SITE: https://www.bidnetdirect.com/texas/city-of-pflugerville

RFA OPENING LOCATION:

Microsoft Teams meeting Join: https://teams.microsoft.com/meet/291009121602642?p=7CEzHDLH0qyCTHOTy0 Meeting ID: 291 009 121 602 642 Passcode: sk2tT3DM Need help? | System reference Dial in by phone +1 512-387-8593,,497902079# United States, Austin Find a local number Phone conference ID: 497 902 079# For organizers: Meeting options | Reset dial-in PIN

All references for times as stated in the RFA will be Central Time Zone.

TITLE VI of The Civil Rights Act

"The Recipient, in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. §§2000d to 2000d-4) and the Regulations, hereby notifies all bidders that it will affirmatively ensure that any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award."

Table of Contents

INTRODUCTION

REQUEST FOR APPLICATIONS 2026-022

PRIMARY DEPOSITORY SERVICES

The City of Pflugerville, Texas (the “City”) is soliciting sealed applications from eligible and qualified financial institutions to provide primary depository services. The initial term shall commence December 31, 2026 and end December 31, 2028, and upon the option of the City, may be extended for up to three (3) additional one-year periods under the same terms and conditions.

The application including all specifications and documents will be available for download at https://www.bidnetdirect.com/texas/city-of-pflugerville. Electronic applications will be accepted until 2:00 p.m. on Thursday, August 13, 2026 through https://www.bidnetdirect.com/texas/city-of-pflugerville.

Note: Applications received after 2:00 P.M. Thursday, August 13, 2026 will not be considered.

APPLICATIONS SUBMISSION SHALL INCLUDE THE FOLLOWING:

1. One completed application

2. The MS-Excel Bank Service Fee Schedule

The Excel fee schedule information and a PDF of the complete application are required.

Applicants shall use this RFA as the official response form. Submitted prices, rates, conditions, and answers shall be included in final agreement. The signed, submitted response must include copies of all completed worksheets and will be deemed the applicant’s official response. To reduce errors and increase the ease of both response and evaluation, the City is providing the RFA in a MS-Word format and Bank Services Fee Schedule in MS-Excel format. The RFA is a protected Word document to enable the applicant to respond to the questions and incorporate comments into the RFA. Applicants must provide unit pricing for service items listed on the MS–Excel worksheet of the Bank Services Fee Schedule.

Questions concerning this RFA should be directed in writing via email to the City of Pflugerville Purchasing Department, at Bids@Pflugervilletx.gov. Deadline for submission of questions will be 5:00 P.M. Monday, August 3, 2026.

To be eligible to respond to this RFA, the financial institution must have a full service “brick & mortar” presence within the municipal boundaries of the City of Pflugerville, Texas and or the Zip Codes of 78660, 78664, and 78728.

The City expects that the Depository Services Agreement included in Exhibit 2 of this RFA detailing the required services be duly executed between the City and the awarded financial institution.

Any and all charges and fees associated with the Depository Services Agreement must be clearly and accurately included in the RFA response. The charges and fees represented in the RFA response shall overrule any and all previous bank service or other agreements between the City and the financial institution, as they relate to the accounts and services included herein. The City will not be obligated by any charges and fees not clearly and accurately presented in the RFA response. Services initiated after consummation of the Depository Services Agreement shall carry charges and fees mutually agreed to, in writing, by the City and the financial institution. Regardless of time delay, the financial institution shall refund or credit the City for any erroneous charges and fees not agreed to in writing.

The City is soliciting applications for banking services currently utilized or being considered by the City. The City intends to manage its funds to minimize service charges and optimize investment income as authorized by policy and permitted by state law. Depending upon market conditions, future collected funds balances may be reduced and invested in other available investment alternatives.

The initial term shall be a two-year period of December 31, 2026 through December 31, 2028, with a provision for three (3) one-year extensions under the same terms and conditions, at the option of the City. A transition period not to exceed ninety (90) days for migration to a new financial institution at the end of the term must be provided.

The City reserves the right to open or close any number or types of accounts, as it deems necessary throughout the term of any agreement resulting from this RFA. Any fee charged for services not listed but later requested by the City will be mutually agreed upon in writing. All fees, rate formulas, and conditions shall be fixed for the entire term, including extensions.

The Depository Services Agreement is an important component of the treasury and cash management system of the City, and the City requires a financial institution that is:

· Capable of providing the services required by the City,

· Willing to be attentive and responsive to the City’s financial matters, and

· Financially sound and meets the City’s requirements.

REQUEST FOR APPLICATION

Pursuant to Chapter 105 of the Texas Local Government Code, this RFA is intended to serve as the application form for the Depository Services Agreement. There are multiple blanks to fill in and questions to be answered. The evaluation of the applications will be based on the responses included herein.

Exceptions, conditions, or qualifications to the provisions of the City’s specifications or requirements must be clearly identified as such, with the reasons therefore, and alternate language proposed by the respondent, if any, clearly stated and inserted in the appropriate place in the application submission.

Each of these exceptions, conditions, or qualifications to the City’s specifications may be included, as appropriate, in the contract documents. Items and matters not explicitly notated in this manner shall be deemed to be in conformance with the City’s specifications.

The RFA also requests certain information to be attached and specifically labeled. Responses must be complete, address all aspects of the RFA, and include all requested information to receive full consideration by the City in the selection process. The City may choose to waive any irregularities in any responses received and reserves the right to reject any and all applications.

The City desires to enter into a contract of mutual party benefit and will answer all questions pertaining to this RFA.

Please note the following calendar of events for the dates and times of key elements in the application process. This schedule of events is tentative and may be modified throughout the selection process at the discretion of the City of Pflugerville.

CALENDAR OF EVENTS

Wednesday, July 15, 2026 RFA available to prospective financial institutions

Monday, August 3, 2026 Deadline for Questions/Requests for Additional Information (5:00 P.M.)

Friday, August 7, 2026 Deadline for City Responses to Questions (5:00 P.M.)

Thursday, August 13, 2026 Responses due to Purchasing Office (2:00 P.M.)

Week of August 31, 2026 Invited applicant(s) Presentation/Demonstrations (if requested)

Tuesday, September 22, 2026 City Council consideration of Depository award (7:00 P.M.)

Friday, December 31, 2026 New Depository Services Agreement period begins

CRITERIA FOR EVALUATION

The City shall carefully review the submitted applications. The evaluation of the applications will be based on the most advantageous terms but not limited to, the following criteria, in no particular order of priority:

1. Ability to perform and provide the required and requested services;

2. References provided and quality of services;

3. Cost of services;

4. Transition cost, retention and transition offers and incentives;

5. Interest rates on interest bearing accounts and deposits;

6. Earnings credit calculation on compensating balances;

7. Completeness of application and agreement to points outlined in the RFA;

8. Applicants physical location as defined in the RFA and the convenience of location(s);

9. Previous service relationship with the City; and

10. Financial strength and stability of the institution.

The City reserves the right to negotiate with all applicants regarding their applications, and to request oral presentations and/or demonstrations from any one or all applicants.

The City reserves the right to contact any applicant, at any time prior to award, to clarify, verify or request information regarding any application. The City reserves the right to waive any formality or irregularity, to make awards to more than one applicant, or to reject any or all applications.

The City will award the contract to the applicant(s) whose response provides the most advantageous terms for the City, based on all factors which have a bearing on price and performance of the required services including, but not limited to, compliance with all RFA requirements, delivery, and the City’s needs.

The City reserves the right to accept or reject any qualified applications, to reject all applications, and to waive minor informalities.

IMPLEMENTATION

Transfer of funds will commence at such time the awarded financial institution has provided the City with all required forms and supplies necessary to ensure uninterrupted day-to-day operations. The awarded financial institution commits its “best efforts” to complete the execution of documentation and receipt of funds by the contract period start date, which will be no later than December 31, 2026.

The awarded financial institution, upon termination of any agreement resulting from this RFA, shall cooperate with a new financial institution for transfer of funds.

APPLICATION SUBMITTED BY

This application is being submitted to the City by the following person duly authorized to act on behalf of this applicant.

Name of Financial Institution

FDIC or NCUA Certificate #

Address of Financial Institution

Telephone #

Email Address

Officer Name & Title (printed)

Officer Signature _____________________________________________________________ Signature indicates respondent accepts the specifications, terms, and conditions of this RFA and that applicant is not delinquent on any payment due the City or involved in any lawsuit against the City.

Date:

REQUIRED DISCLOSURES

As defined in Section 105.015 (c), each applicant shall comply with the conflict of interest provision of Section 131.903 of the Texas Local Government Code in regard to the selection of the depositories:

Sec. 131.903. CONFLICT OF INTEREST.

(a) A bank is not disqualified from serving as a depository for funds of a political subdivision if:

(1) an officer or employee of the political subdivision who does not have the duty to select the political subdivision's depository is an officer, director, or shareholder of the bank; or

(2) one or more officers or employees of the political subdivision who have the duty to select the political subdivision's depository are officers or directors of the bank or own or have a beneficial interest, individually or collectively, in 10 percent or less of the outstanding capital stock of the bank, if:

(A) a majority of the members of the board, commission, or other body of the political subdivision vote to select the bank as a depository; and

(B) the interested officer or employee does not vote or take part in the proceedings.

(b) This section may not be construed as changing or superseding a conflicting provision in the charter of a home-rule municipality.

In addition, the following disclosures apply:

Disclosure of interest: Pursuant to Chapter 176 of the Texas Local Government Code, a person, or agent of a person, who contracts or seeks to contract for the sale or purchase of property, goods, or services with the City of Pflugerville, Texas must file a completed conflict of interest questionnaire which is available at www.ethics.state.tx.us. The conflict of interest questionnaire must be filed with the City of Pflugerville, Texas no later than the seventh business day after the later of the date that the person or agent begins contract discussions or negotiations with the City or submits to the City an application, response to a request for proposal or bid, correspondence, or writing related to a potential agreement. An updated conflict of interest questionnaire must be filed in accordance with Chapter 176 of the Texas Local Government Code.

Certificate of interested parties: Section 2252.908 of the Texas Government Code applies to all contracts entered into on or after January 1, 2016. The law states that a governmental entity may not enter into certain contracts with a business entity unless the business entity submits a disclosure of interested parties to the governmental entity at the time the business entity submits the signed contract to the governmental entity. The law applies, with a few exceptions, to all contracts/purchases of a governmental entity that require action or vote by the governing body of the entity. The electronic filing application process can be started on the Texas Ethics Commission website at www.ethics.state.tx.us. The City acknowledges that publicly traded business entities are exempt from this requirement.

In compliance with Chapter 2252 Subchapter F, of the Texas Government Code, prohibiting government contracts with a company doing business with Iran, Sudan or a foreign terrorist organization, the City of Pflugerville, will not enter into a contract with a company reported on the LISTED COMPANIES per Section 2252.153.

The City’s current account structure is shown below. The City reserves the right to change account configuration after evaluation of received applications and adjust, if necessary, the account structure under the most advantageous terms for the City.

· Operating Account

· Utility Account

· General Fund Account

· Lakeside Meadows PID Account

· Pflugerville Community Development Corporation Account The Operating Account serves as the City’s primary operating account. For this account, checks are drawn, wires and ACH transfers are received, and bank deposits are made. Wire and ACH transfers are initiated. Activity also includes EFTs for Accounts Payable and Direct Deposits for Payroll.

The Utility Account receives bank deposits and credit card settlements. Chargebacks are presented and returned checks and deposit corrections are posted. ACH drafts from customer accounts are initiated. No checks are issued from this account.

The General Fund Account is for investment activity of purchases and sales. No checks are issued from this account.

The Lakeside Meadows PID Account is set up through a developer agreement. Funds are transferred into this account and wire and ACH transfers are initiated. No checks are issued from this account.

The Pflugerville Community Development Corporation Account is the bank account for the legally separate corporation, Pflugerville Community Development Corporation (PCDC). This account is maintained by the City for PCDC and is the primary operating account for PCDC. For this account, checks are drawn, and wires and ACH transfers are initiated.

EXPECTED BANK SERVICES

The following services must be provided as described and/or be provided in an alternative form that results in essentially the same outcome or capability.

ONLINE BANKING PORTAL

1. ONLINE REPORTING SERVICES – The City uses Tyler Technologies EERP (Munis) and expects online reporting that at a minimum includes:

· Ledger balance,

· Collected balance,

· One day float amount,

· Total credits,

· Total debits,

· Detail debits and credits,

· Transaction search capability, and

· Export capability to MS-Excel.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

2. BAI FORMAT – Does your bank provide BAI format files for the City to upload financial transaction data into their ERP system?

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

3. WIRE TRANSFERS – The online banking system must offer wire transfer capability. Wires may be one-time wires or be set up as repetitive wires of varying amounts. The City expects controls to be in place for the prevention of fraud in the wire transfer process. The City also expects online banking system capabilities for daily notification (alerts) of incoming wires and monitoring of such incoming wire activity.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

What is the deadline for originating domestic wire transfers:

4. ACH – The City expects a robust ACH system with the capability to create ACH credits for direct deposit of payroll and vendor payments, and to direct debit customer accounts for A/R and utility billing charges.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

5. ONLINE BANKING HISTORICAL INFORMATION RETENTION – How long is continuous historical information retained online and accessible by the users? We understand that the standard retention period for check images is 7 years. Please list your retention period for the items listed below:

· Account transaction history (standard)

· Account transaction history (for additional fee)

· Account Statements Comment:

6. ONLINE BANKING ADMINISTRATION/SELF-ADMINISTRATION – Once the service is in place, users are expected to be managed through self-administration. To confirm, can these services be completed online and without a request to the bank:

· Remote Deposit Capture access/functionality |_| Yes |_| No

· Are there any other functions that require the bank to make the changes rather than the self-administrators?

Comment:

7. SELF-ADMINISTATION DUAL CUSTODY – Does your self-administration offer dual custody for functions involving granting access to users that involve funds transfers via wire or ACH?

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

8. MOBILE APP FUNCTIONALITY/ACCESS – The City is interested in having access to perform certain online banking functions for the City via their smart phones. If your institution offers these services, what functions are available for use?

|_| Balance Reporting and Transaction Detail |_| Initiate Wire Transfers |_| Release/Approve Wire Transfers |_| ACH – Release/Approve Batches |_| Positive Pay Exception Decisions |_| Mobile Deposits

Comment:

9. AUTHENTICATION FOR ACCESS – Please confirm the methods that are available with your bank for protecting the City against unauthorized access:

|_| Secure Token |_| Secure Token app through cell phone |_| Secure Browser |_| Confirmation code sent via text message or email |_| Biometric authentication

10. ELECTRONIC DATA INTERCHANGE – The City expects Electronic Data Interchange (“EDI”) service in order to see addenda information included with ACH deposits.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

11. PAID CHECK IMAGE OPTIONS – What options does your institution offer for providing copies of paid checks to the City?

|_| Image of paid checks printed on statements |_| Image of paid checks printed on the online version of the statements |_| PDF File downloadable to the City each month |_| Online Image Inquiry/Search Comment:

12. STOP PAYMENTS – Do stop payments initiated online require a paper follow up? If so when?

|_| Yes, a paper follow up is required |_| No, there is not requirement for a paper follow up.

Comment:

COLLECTIONS

1. REMOTE DEPOSIT CAPTURE– The City expects remote deposit capture services for electronically preparing and submitting deposits. The City is currently utilizing this service.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

2. RETURNED CHECK PROCESSING – The City prefers next day notification of all returned items and electronic delivery of the returned item image.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

3. RETURNED CHECK REPROCESSING – The City would like to re-clear all returned items one time, and prefers to receive rejected items electronically on a same day or next day basis.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

4. BRANCH DEPOSITORY SERVICE – The City currently uses branch depository service. Cash Vault delivery via armored courier is not currently in use. The City makes cash deposits daily with a monthly total of deposits average of $95,000 per month.

Comment:

DISBURSEMENTS

1. PAYROLL PAY CARDS - The City is interested in offering Pay Cards to City employees so that all employees can be paid via direct deposit, even if they do not have a checking account. Does your bank offer this service?

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

FRAUD PROTECTION SERVICES

1. POSITIVE PAY – The City requires positive pay. Minimum payment verification criteria shall be payee name, date, check number, and amount. The City may approve and make pay/no pay decisions on any exception items.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

What is the deadline for responding to Positive Pay Exceptions:

2. PAYEE VALIDATION – The City expects payee validation with the positive Pay Service. Does your bank offer payee validation?

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

3. AUTOMATIC STALE DATING OF CHECKS – The City prefers the option of checks automatically becoming stale dated after a set period of time, based on the issue date in the Positive Pay system. Does your institution offer this feature, and if so, how does the institution handle items presented after they are stale?

|_|Yes, stale dating is offered. |_|No, stale dating is not offered as described.

Comment:

4. POST NO CHECKS – The City requires the fraud protection feature or service that prevents checks being presented for payment to be posted to the accounts from which checks are not issued.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

5. ACH POSITIVE PAY aka ACH Fraud Filter – The City requires ACH positive pay/filter capabilities on its accounts, with the ability to selectively permit specified ACH debits on certain accounts and restrict all ACH debits from certain accounts.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

MISCELLANEOUS

1. BANK STATEMENTS – The City expects that statements be rendered within three (3) working days after the close of the calendar month. Monthly cutoff of statements must occur on the last calendar day of each month. Accounts shall not be placed in dormant mode for inactivity. The statement shall include debits and credits made on the last day of the period and the detail items. Bank statements must be received monthly, even if there is no activity for the account. Checks and deposit slip images must be provided in a manner that the City can download them or save them to their internal storage systems.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

2. ACCOUNT ANALYSIS – The City expects account analysis statements by individual account and at group level, reflecting average ledger balance, average uncollected funds, average collected balance, reserve requirement, average available balance, rate and amount of earnings credit, detail of services provided with quantities and unit fees for each, and total service cost, delivered to the City on a monthly basis. This requirement applies to “No Fee” or “Fee Waiver” applications.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

3. PAYMENT FOR SERVICES and ACCOUNT SETTLEMENT – The City expects to pay for all services provided by the earnings credit amount generated by account balances, or by direct payment, or a combination of both. If deficient, settlement is to be made by direct debit to the City’s designated account.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

4. Balance ASSESSMENT – State how the institution will treat any Balance Assessment or balance based fee applicable to the City (i.e., Deposit Supervisory Fee, Premium Assessment Fee, etc.). Please indicate if the assessment will be for all depository balances or non-interest bearing balances only. (Also, please reflect treatment on the attached Fee Schedule) |_| Fees apply to only non-interest-bearing balances.

5. RESERVE REQUIREMENT FOR EARNINGS CREDIT CALCULATION– Applicant must indicate whether or not a reserve requirement on balances used in calculating earnings credit is required.

Comment:

6. RESERVE REQUIREMENT FOR INTEREST CALCULATIONS– Applicant must indicate whether or not a reserve requirement on balances used in calculating hard interest to be paid on balances is required.

Comment:

7. EARNINGS CREDIT RATE – The applicant must state the current ECR, rate index (if applicable) and rate floor being proposed (if any).

8. INTEREST RATE OPTION(S) – Please mark the account types available to the City, the rate basis, the rate and any fees (if applicable) for the City’s balances maintained at the bank:

Indexed/Market/Bank Managed

|_| Investment Sweep/MMF

If offering an Investment Sweep/MMF, please provide the related ticket symbol(s)

Comments/additional information if desired to clarify determination of interest rate:

Are these account types and rate options available to the City even if another bank is selected for the primary depository contract?

|_| Yes |_| No

Comment:

9. OPTION TO FORGO ECR? – If the interest rate offered by the bank is higher than the ECR, can the City forgo earnings credit and earn interest on all balances and pay the service fees on a monthly basis?

|_| Yes |_| No

10. Will interest earned on interest bearing accounts be charged as an expense on the account analysis?

|_| No, interest will NOT be charged as an expense on the account analysis statement.

|_| Yes, interest will be charged as an expense on the account analysis statement.

Comment:

SAFEKEEPING OF CITY OWNED SECURITIES

The Public Funds Investment Act in conjunction with the City’s Investment Policy shall govern the City’s investment activity and the successful applicant shall be expected to provide services within the constraints of both.

The City requests that the institution provide safekeeping services for the securities owned by the City, or offer an alternative option for safekeeping services.

The institution will act as securities clearing agent for all security purchases made by the City and for sales of securities from the investment portfolio, and will provide the necessary wire transfer and delivery services required to support investment activities. All securities will be handled on a Delivery Versus Payment (DVP) basis as they are cleared into and out of the City’s account. Necessary controls will be negotiated with the institution. Confirmation of trades must be provided to the City within one (1) business day.

Security clearance and safekeeping services shall be governed by a "Safekeeping Agreement” or similar contract executed between the City and the Institution. All interest payments on securities held are to be posted on the due date or on the next business day in the event the due date falls on a weekend or bank holiday. The City must be notified within seven (7) days of a call date notice for any securities being called prior to maturity.

The City prefers a web-based safekeeping transaction monitoring and reporting mechanism.

Please provide a schedule of securities safekeeping fees with the required Response Attachments.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

If your bank offers this service, would you be willing to provide Safekeeping for the City even if your bank is not selected at the primary depository.

|_| Yes |_| No

Comment:

COLLATERAL REQUIREMENTS

1. COLLATERALIZATION – The successful bank shall pledge collateral to satisfy the requirements of the Public Funds Collateral Act, Chapter 2257, Government Code, and the City’s Investment Policy. Ledger balance shall determine the total balance level. The successful bank shall pledge collateral equal to or in excess of the required level on a same day basis.

The City shall approve, in advance and in writing, all proposed collateral.

If prior day ending ledger balance is to be used as the basis for calculating the required collateral pledge, in order to minimize any period where the City balances could be under collateralized, the City will require that the pledged amount be maintained at a minimum of 110% of the prior day ending ledger balance.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

2. COLLATERAL AMOUNT – The maximum ledger balances could exceed $30,000,000 in the aggregate. Historically, the average analyzed balances are less than $12,000,000. Applicant must clearly explain any collateral limitations or fees. The City reserves the right to maximize or minimize bank balances regardless of historical patterns. The successful applicant must monitor the collateral adequacy daily and provide additional collateral to secure balances as required. Comment by Lauren Henkes: Thoughts on this @Tracy Waldron? I have made a best guess on the $30M, $12M. Comment by Tracy Waldron: I think these are good estimates.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

3. COLLATERAL CUSTODY – The pledged securities shall be held at an independent custodian acceptable to both the City and the successful bank. Monthly holding reports shall be filed with the designated contact of the City. Please provide the name of the proposed independent custodian as well as any related fees.

Name of Proposed Custodian:

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

4. COLLATERAL SUBSTITUTION – Any substitutions of the pledged securities or reductions in the total amount pledged shall be made only by and with the proper written authorization of an authorized City signatory.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

5. COLLATERAL REPORT – The successful applicant and the custodial bank shall provide City a monthly pledged securities report or additional reports at any time requested by City. The report must describe the total pledged securities by:

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

6. BOARD RESOLUTION – The Board of Directors or designated committee of the successful bank will be required to provide a FIRREA compliant resolution of certification approving the award of the agreement and commitment for delivery of the collateral to the custodian not later than five days before the commencement of the agreement period. The following is an extract of the FIRREA requirement from the FDIC Code:

e) AGREEMENTS AGAINST INTERESTS OF CORPORATION.--

(1) IN GENERAL.--No agreement which tends to diminish or defeat the interest of the Corporation in any asset acquired by it under this section or section 11, either as security for a loan or by purchase or as receiver of any insured depository institution, shall be valid against the Corporation unless such agreement--

(A) is in writing,

(B) was executed by the depository institution and any person claiming an adverse interest thereunder, including the obligor, contemporaneously with the acquisition of the asset by the depository institution,

(C) was approved by the board of directors of the depository institution or its loan committee, which approval shall be reflected in the minutes of said board or committee, and

(D) has been, continuously, from the time of its execution, an official record of the depository institution.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

INVESTMENT ACTIVITIES

The Public Funds Investment Act in conjunction with the City’s Investment Policy shall govern the City’s investment activity and the successful applicant shall be required to provide services within the constraints of both.

1. DIRECT INVESTMENT ALTERNATIVE – The City’s direct investment activities may take place in any and all the City accounts. The City shall have the right, at its sole discretion, to direct investment of its funds. The successful applicant shall be required to provide clearing and safekeeping services for the City investment activity. Interest earnings on interest bearing accounts shall be credited monthly regardless of the amount, with no minimum amount restriction. The Investment Policy outlines City’s options for investing. The Investment Policy is subject to annual review and revision by the City Council.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

2. CERTIFICATES OF DEPOSIT – Certificates of Deposit (“CDs”) purchased for the City shall be non-negotiable and shall be registered in the name of the City. The CDs must be fully insured by the FDIC or collateralized in accordance with the RFA requirements. Proof of collateral must be supplied to the City prior to CD settlement. Extension of CDs – The successful applicant agrees to honor and continue any CD made during the term of any agreement resulting from this RFA that will mature after the expiration date of such agreement at the same rate established at the time of placement.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

3. SECURITY CLEARANCE/SAFEKEEPING SERVICES – The City prefers that their depository bank provide safekeeping services for the securities owned by the City or offers an alternative option for safekeeping services. All securities will be handled on a Delivery Versus Payment (DVP) basis as they are cleared into and out of the City’s account.

The bank will act as securities clearing agent for all security purchases made by the City and for sales of securities from the investment portfolio, and will provide the necessary wire transfer and physical delivery services required to support investment activities. Necessary controls will be negotiated with the bank. Confirmation of trades must be provided to the City within one (1) business day.

Security clearance and safekeeping services shall be governed by a "Safekeeping Agent” or similar agreement executed between the City and the bank. All interest payments on securities held are to be posted on the due date or on the next business day in the event the due date falls on a weekend or bank holiday. The City must be notified within seven (7) days of a call date notice for any securities being called prior to maturity. The City prefers a web-based safekeeping transaction monitoring and reporting mechanism.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

OTHER STIPULATIONS

1. TERMS VALID FOR 180 DAYS – The responding bank agrees that the terms in the application will be valid for 180 days from the submission date.

|_| Agreed Comment:

2. RIGHT TO CANCEL UNDER FEDERAL OR STATE LAW RULINGS – In the event it would be ruled illegal under the provisions of any Federal or State laws or regulations for the awarded financial institution to comply with the requirements of the agreement, then the City expressly reserves the right and privilege to cancel the agreement and to re-solicit applications.

|_| Agreed

Comment:

3. RIGHT TO OPEN & MAINTAIN OTHER ACCOUNTS – The City shall have the right, at its sole discretion, to direct, open and maintain accounts at other institutions.

|_| Agreed

Comment:

4. RIGHT TO TERMINATE – The City expressly reserves the right to terminate the agreement with or without cause at any time by providing ninety (90) days written notice to the awarded financial institution to close its accounts and terminate services.

|_| Agreed

Comment:

5. TERMS FIXED – All fees, rate indexes (not the rate, just the indexes), and conditions shall be fixed for the entire agreement period, including any and all continuations.

|_| Agreed

6. RESEARCH – The City requests that all research requests are responded to within three business days of the request.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

7. BANK ERRORS – Bank errors resulting in lost interest to the City must be reimbursed by the bank to the City, utilizing a mutually agreed upon method of reimbursement.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

8. OVERDRAFT NOTIFICATION – In the event a check or checks shall be presented for payment where there are insufficient funds in City’s collective accounts, the awarded financial institution agrees to promptly notify the City’s Finance Director and Assistant Finance Director or other signatory person, by telephone or other electronic means, of the overdraft condition, and to provide the City a period not exceeding one business day to respond and rectify the condition.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

9. AUDIT CONFIRMATIONS – Successful applicant must provide account balance audit confirmations to the City’s audit firm annually at no charge.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

10. SEMI-ANNUAL MEETING – The City shall require a review meeting at least once every six months to evaluate the working relationship between the City and the awarded financial institution. The objective shall be to address any problems and to seek solutions as well as keeping abreast of changes, new services, or new requirements.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

11. FORMAL AGREEMENT REQUIRED – The final appointment of the awarded financial institution shall be made by the City Council of Pflugerville. The awarded financial institution shall be required to enter into an agreement that incorporates all of the requirements of their official response to this RFA, along with the accompanying related schedules and materials as called for in this RFA. The formal agreements should include: a depository bank services agreement, a collateral custodial agreement, and a FIRREA compliant resolution of certification (see #6 under the Collateral Requirements).

A sample of the Proposed Agreement form is found as Exhibit 3. This agreement is a sample only and subject to change based on legal review.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

12. ONE RELATIONSHIP OFFICER – The City requests one relationship manager to coordinate the awarded financial institution’s efforts and remain directly responsible for facilitating all City/Bank interaction.

MISCELLANEOUS

1. TAMPERPROOF DEPOSIT BAGS – Will the financial institution provide tamperproof bags at no charge?

|_|Yes, can provide as requested. |_|No, cannot provide as requested.

Comment:

2. ENDORSEMENT STAMPS & DEPOSIT SLILPS – Will the financial institution provide endorsement stamps and deposit slips at no charge?

|_|Yes, can provide as requested. |_|No, cannot provide as requested.

3. INCENTIVE FEE WAIVER – If your institution is offering a waiver of monthly service fees during a specific timeframe, please provide the following information for clarity of the terms of your offer.

|_| Zero-pricing waiver (no fees assessed) during the timeframe of the offer and interest can be earned on balances during this time Number of months of the fee waiver:

Maximum dollar amount of waiver (if any limitations):

Comment:

|_| No waivers - Institution is not offering a waiver of fees

4. CASH TRANSITION ALLOWANCE / RETENTION BONUS/OFFER – If Institution is offering a cash amount to offset the cost of the transition, please provide that amount.

Comment:

SERVICES THAT MAY BE CONSIDERED

The City is interested in considering the following services:

1. ZERO BALANCE ACCOUNT - The City expects zero-balance account services. The bank teller function must identify the account as a ZBA to ensure check presentments made at the bank are honored.

|_|Yes, can provide as requested/required. |_|No, cannot provide as requested/required.

Comment:

2. COURIER OR ARMORED CAR SERVICES – The City currently delivers deposits directly to the financial institution, using the banks night drop option. For the safety and convenience of City staff, the City will during the evaluation period of all applications, consider the benefits and offers for courier or armored car services. Will your institution include in your application terms which could be offered? The City currently deposits approximately $95,000 per month in cash and coin.

|_| Credit towards Courier and or Armored Car Fees, if so amount offered $ |_| Fees to be partially waived; billed through analysis |_| Fee to be passed in full to the City; billed through analysis |_| Cannot provide.

Comment:

3. SMART SAFE– The City is considering the possible use of Smart Safe for the secure handling of cash receipts. Please provide details for this service including cost associated with this service. Please describe any requirements the City would have to consider for this service.

|_|Yes, can provide as requested. |_|No, cannot provide as requested.

Comment:

Please provide a detailed description of how this service is set up, including pricing options for transactions and all equipment:

Description:

4. LOCKBOX PROCESSING – The City may consider lockbox processing services for remittances of Utility Billing payments.

|_| Our bank offers and manages our lockbox in-house, located in |_| Our bank offers lockbox through a third-party vendor , located in |_| Our bank does not offer lockbox.

Does your bank offer a retail lockbox that captures scannable coupons?

|_|Yes |_|No

Comment:

Is there a minimum volume requirement for retail lockbox processing?

|_|Yes, minimum volume is:

|_|No minimum volume Comment:

Are any aspects of the operation processed by a third-party provider?

|_|Yes |_|No

Comment:

5. ELECTRONIC LOCKBOX/ E-LOCKBOX / E-BOX - The City will consider this service for receipts of utility payments generated from personal customer bank bill pay applications as they arrive from multiple bill pay processors. The remittance data and payment amount captured during processing must be transmitted to the City daily for the update of the accounts receivable file.

|_|Yes, can provide as requested. |_|No, cannot provide as requested.

If your bank offers E‑Box, please indicate whether the service includes the following functions:

Exception handling: Can payments with missing or incorrect account data be flagged, corrected, or redirected?

|_|Yes, exceptions can be modified. |_|Exceptions cannot be changed online.

Stops and swaps: Can the City stop a payment from posting if it looks suspicious or misapplied, or swap it to the correct account?

|_|Yes, can provide as described. |_|No, cannot provide as described.

Autocorrect – If a customer enters an incorrect account number when making a payment, will the City need to manually correct that error each time a payment is received, or does the system automatically apply the correction to future payments once the account number has been corrected the first time?

|_|Correction applies to future payments. |_|Correction will need to be made each month.

Comment:

6. ACCOUNT VALIDATION SERVICES – Can your bank verify account status and account ownership of accounts for outgoing payments using the Early Warning System?

|_|Yes, can provide as described. |_|No, cannot provide as described.

EXHIBIT 1

Average Monthly Balances

AVERAGE MONTHLY BALANCES

Primary Depository Bank Services RFA Page 20

EXHIBIT 2

SAMPLE Depository Services Agreement THIS DEPOSITORY SERVICES AGREEMENT hereinafter called the “Agreement”, is made and entered into on the date last herein written by and between the City of Pflugerville, Texas, hereinafter called the “City”, and ___________________ a banking association, organized under the law of the United States and authorized by law to do banking business in the State of Texas, hereinafter called the "Bank”, and provides as follows:SAMPLE

1. Designation of Depository. The City, through action of the City Council, on September 22, 2026, hereby designates Bank as a primary depository bank for the period beginning December 31, 2026, and continuing through December 31, 2028, with the option for three (3) one-year extensions under the same terms and conditions.

2. General. All services rendered to City by Bank under this Agreement shall be performed in accordance with accepted commercial banking standards for public fund organizations and under the overall direction and instructions of City pursuant to Bank’s standard operations, policies, and procedures.

3. Scope of Services. Bank agrees to provide those services as described in the City of Pflugerville Request for Application for Depository Services released on July 15, 2026, hereinafter referred to as the “RFA”. The RFA and Bank’s response to the RFA, hereinafter referred to as the “Application”, are incorporated herein by reference. Bank acknowledges that all services performed by Bank are subject to the approval of City.

4. City Representatives. During the term of this Agreement, City will, through appropriate action of its City Council, designate the officer, or officers, who singly or jointly will be authorized to represent and act on behalf of City in any and all matters of every kind arising under this Agreement and to (a) appoint and designate, from time to time, a person or persons who may request withdrawals, orders for payment or transfer on behalf of City in accordance with the electronic funds or funds transfer agreement and addenda, and (b) make withdrawals or transfer by written instrument.

5. Custodian. City and Bank, by execution of this Agreement, hereby designate ______________ as custodian, hereinafter called “Custodian”, to hold in trust, according to the terms and conditions of this Agreement, the collateral described and pledged by Bank in accordance with the provisions of this Agreement.

6. Custodian Fees. Any and all fees associated with Custodian’s holding of collateral for the benefit of City shall be paid by Bank and City will have no liability therefore.

7. Entire Agreement. The entire agreement between Bank and City shall consist of this Agreement, City’s RFA (except to the extent Bank took specific exceptions in the Bank’s Application), Bank’s Application, the Custodial Agreement with Custodian, and other such bank service agreements, policies and documents as may be required and approved by the parties (together, the “Banking Agreements”), each incorporated by…