Request for Applications Primary Bank and Depository Services

The City of Hutto, Texas is soliciting applications for Primary Bank and Depository Services through a Request for Applications (RFA #2024-020-AB-001) released on March 22, 2024. The procurement seeks a financial institution with a physical location within Hutto's municipal boundaries to provide comprehensive banking services for an initial contract period from October 1, 2024, to September 30, 2026, with potential extensions for three additional one-year periods. Required services include online banking, wire transfers, ACH processing, fraud protection, collections, and collateral management, with specific technological requirements such as remote deposit capture, positive pay, ACH fraud filtering, and account analysis statements. Evaluation criteria will encompass service fees, earnings credit rates, interest rates, transition costs, and the ability to meet the City's technological and operational banking needs. A non-mandatory pre-application conference is scheduled for April 1, 2024, via Zoom, with proposal responses due by May 3, 2024, at 2:00 PM CST, and the City Council anticipated to consider the award on July 11, 2024.

The RFA includes specific requirements regarding Texas government code provisions related to boycotts and discrimination, with no explicit set-aside designations for disadvantaged enterprises mentioned. The City currently operates with two remote deposit scanners and requires four total bank accounts, processing ACH payments 1-2 times per week with weekly ACH payment volumes ranging from $500,000 to $2 million. Maximum annual wire transfers are expected to be up to $7 million for principal and interest payments, with potential ledger balances exceeding $25 million (historical averages under $15 million). The selected bank must provide a 102% collateral requirement for pledged securities and conduct daily collateral monitoring. While no specific budget range is explicitly stated, the comprehensive fee schedule indicates the City is seeking a cost-effective solution with potentially zero-cost services across multiple banking service categories. The financial institution must demonstrate robust technological capabilities, financial stability, and the ability to integrate with the City's existing banking infrastructure.