Depository Banking Services

The City of Weslaco, Texas is soliciting proposals for a comprehensive Depository Banking Services contract through a Request for Proposal (RFP) numbered 2022-23-24. The procurement seeks a full-service financial institution to provide banking functions for the city's designated funds, with specific requirements that the institution must be located within the city limits or within five miles of the city limits. The contract will have an initial three-year term from October 1, 2023, to September 30, 2026, with potential for a two-year extension. Required services include a consolidated account structure with sweep mechanism, automated cash management, deposit and collection services, disbursing services, remote deposit capabilities, positive pay services, and safekeeping/custody services. Key deliverables include electronic statements, reports, and account analysis, with a preference for increased automation and ACH transactions. The pre-proposal conference is scheduled for July 6, 2023, at 10:00 AM via Zoom, and proposals are due by July 21, 2023, at 10:00 AM, with the City Council expected to award the contract on August 1, 2023. Evaluation criteria will include cost of banking services, service capabilities, financial institution strength, earnings potential, collateralization, and customer service structure.

The RFP does not explicitly mention specific set-aside designations or restrictions for disadvantaged enterprises. The city currently maintains seven stand-alone bank accounts with an average monthly ledger balance of $12,148,251 and processes approximately 350 employee bi-weekly payrolls averaging $524,026. The city requires the selected bank to provide 102% collateralization of deposits, maintain FDIC coverage, and offer competitive interest rates and service fees. The current banking relationship is with PNC Bank, though the RFP suggests the contract is open to competitive bidding. While a precise award value is not specified, the city's monthly financial activities suggest a significant contract value, with average monthly deposits of $6.8 million and total average ledger balances around $12-14.8 million. The city utilizes Incode X as its primary ERP system and has specific requirements for banking integration, including dual control for ACH and wire transfers, lockbox services, and secure cash deposit procedures.