REQUEST FOR PROPOSAL For Banking Services Bid Number: September 29, 2014

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1 Fresno Economic Opportunities Commission (Fresno EOC or Agency) is soliciting proposals to establish a contract with one (1) qualified and experienced Financial Institution to handle the banking activities for Fresno EOC and its subsidiaries. Through this contract, Fresno EOC and its subsidiaries intend to minimize banking costs, improve operational efficiency within cash management, and maximize investment capabilities. This Request for Proposal (RFP) specifies all required qualifications, the banking services required, the cash management goals, the estimated activity volumes on all accounts, the method and terms of compensation, submission instructions, and the contract award provisions. Proposals will be considered from qualified and experienced financial institutions who are regularly established in the business of banking and investment services, and who in the judgment of Fresno EOC are financially responsible. Through prior work performed, firms must be able to show evidence of reliability, ability, experience, and personnel to perform the services. You can also find The Request for Proposals (RFP) on the Fresno EOC website homepage Proposal Submission: Qualified Financial Institutions are invited to submit a proposal (six (6) hard copies and one digital copy) meeting the requirements described herein which must be received no later than 2:00 p.m., Monday, October 20, The electronic file is to be sent to rebecca.heinricy@fresnoeoc.org with the subject line of: Banking RFP. Mail or deliver hard copy proposals in a sealed envelope to: Fresno Economic Opportunities Commission ATTN: Rebecca Heinricy 1920 Mariposa Mall, Suite 330 Fresno, CA Failure to clearly label proposals may result in premature disclosure. It is the responsibility of the Bidder to ensure that proposals are received by the above deadline. Late proposals will not be considered. Questions: Direct all questions regarding this RFP to Rebecca Heinricy via rebecca.heinricy@fresnoeoc.org. All questions and responses are public and posted in a timely manner on the Fresno EOC website homepage ( under the RFP section. Fresno EOC will not accept questions after Friday, October 10, This Request for Proposal does not commit Fresno EOC to award a contract or pay any costs incurred in the preparation of a proposal in response to this request. Fresno EOC reserves the right to accept the proposal that it considers to be in its best interest. All materials submitted to Fresno EOC in response to this RFP become the sole property of Fresno EOC and may be used at its discretion unless the proposer identifies any trademarks or patents. Selection of the firm is at the sole discretion of the Fresno EOC Board of Commissioners. Thank you for your interest in working with Fresno Economic Opportunities Commission. Brian Angus, Chief Executive Officer Fresno Economic Opportunities Commission 1

2 Fresno EOC is soliciting proposals from qualified and experienced Financial Institutions to provide banking, cash management and investment services. Firms must demonstrate the ability to perform the work described in the Scope of Services and have significant experience to perform the outlined work successfully. Periodically, Fresno EOC carefully explores and considers all service provider options with the goal of adequately protecting the Agency from risk exposures within the limitations of available funding. About Fresno Economic Opportunities Commission (Fresno EOC): Fresno EOC is a non-profit community benefit corporation organized under section 501(c)(3) of the internal revenue code. Fresno EOC is part of a large network of Community Action Agencies authorized by the Economic Opportunities Act of Governed by a board of 24 commissioners representing the various regions of our county, its elected representatives, and community groups serving within the County, Fresno EOC has over the past 49 years emerged as one of the premier Community Action Agencies in the nation operating more than 30 programs directed towards the needs of, and empowering the poor in our community. Between checking, savings, money market, and investment accounts, Fresno EOC and its subsidiaries operate 33 bank accounts. Fresno EOC employs approximately 1,200 individuals at eighty-two (82) facilities. Fresno Community Development Financial Institution (Fresno CDFI) is a wholly-owned subsidiary of Fresno EOC which provides financing and training to grow businesses and jobs in 12 counties in California. Enterprise + Economic Development Center, Inc. (E+) is a wholly-owned subsidiary of Fresno EOC created in 1992 which undertakes economic development activities in distressed communities in Fresno County. Response mat: Responses should be concise and include the materials which are requested within this RFP. Generic marketing and promotional materials are neither required nor desired. Responding firms should concisely but completely describe the scope of services they feel are appropriate to Fresno EOC and its affiliate entities. Scope of Service: The firm selected will be required to provide the services described below. Any dollar amounts and activity volumes provided are estimates. Please see Table A below for estimated monthly activity volumes 1. Funds Deposited Cash and checks received by the Agency are deposited on a daily basis. Most deposits are processed through the Finance Office but a few other offices prepare deposits of small amounts of cash, checks, and money orders that they receive. Deposits may be delivered to the bank branch during business hours or placed in the night drop after hours or deposited remotely. Some grantor agencies prefer to deposit funds directly to Fresno EOC Account(s). In these cases, the grantor agency has been given the bank account information that allows them to create the electronic transactions through the automatic clearinghouse. Bank-provided software and a scanner are used to create a deposit of checks and money orders which makes funds available by the end of the day. The deposit detail report is reviewed and the approval is submitted by the end of the day by either the Finance Director or Assistant Finance Director. 2

3 About 50 clients of Fresno CDFI who have received loans authorize us to initiate an ACH credit from their bank account for their monthly payment. 2. Payments Issued Approximately 2,500 checks are issued by Fresno EOC monthly in the normal course of business from the three major disbursement accounts. Additionally, approximately 2,350 employee paychecks are directly deposited to their account monthly (payroll is processed bi-weekly). Accounts payable vendors may also elect to receive electronic payments. A weekly batch of approximately 50 payments is created and approved within the bank-provided online service. A limited number of vendors (i.e. payroll taxes, utilities, postage meter) are authorized by Fresno EOC to create ACH debits from our accounts. The Imprest accounts, as a group, issue approximately 200 checks per month. The individual check amounts range from $10-$1,000. Fresno CDFI issues loans using multiple checking accounts. These checks are issued daily once loan packages are approved for disbursement. 3. Transfers Between Accounts On a weekly basis, funds from the depository accounts are transferred to the disbursement accounts in amounts necessary to cover the payments issued during the week. 4. Outgoing Wire Transfers Loans made by Fresno CDFI may be disbursed either by check (included in the volume numbers above) or by initiating an immediate wire transfer from our bank account. 5. Fraud Control Fresno EOC currently uses previous day reporting and positive pay services to identify and prevent unauthorized charges from being made on Agency accounts. The treasury accountant works closely with bank representatives to investigate and resolve suspicious transactions. 6. Line of Credit Fresno EOC requests access to an unsecured, revolving line of credit of $1.5 million dollars. 7. Online Banking A robust suite of services is desired including but not limited to: Current day and previous day detail reporting Intra-bank transfers Wire transfer creation ACH Processing Remote deposit service Activity downloads Access to monthly statements Positive Pay services 8. Bankcard Currently the Agency has less than ten (10) debit cards issued under the Agency s name for specific individuals, but does not require a personal guarantee. These cards are provided for the Executive 3

4 Leadership staff. Please provide a discussion of available options of credit / debit cards and any applicable linkage to the various accounts. 9. Bankcard Processing Currently we receive minimal credit/debit card payments but we desire to receive information on the services you can offer in this area, where these services could best fit our operations, and the fees to be charged. 10. Travel / Purchase Cards Please provide a discussion of purchase cards services, specifically those pertaining to employee travel, which are available. 11. Investment Management Fresno EOC holds an investment portfolio of approximately $3.9 million at June 30, This portfolio includes certificates of deposit, bonds, stocks, and cash. Specialized services related to this investment portfolio include: a) Reporting services b) Custodial and safekeeping review c) Broker/dealer due diligence and relations d) Credit analysis of security issuers and financial institutions e) Meetings with investment staff and governing bodies f) Development and review of investment policy and procedures g) Preparation of quarterly investment reports in a format specified h) Staff training and education All advisers shall be registered Investment Advisors as defined and regulated by the Securities and Exchange Commission. Adviser shall have a minimum seven years of experience in managing corporate investments. Fresno EOC Bank and Investment Accounts Overview: 1. Disbursement / General Accounts Fresno EOC maintains three major checking accounts from which payments to vendors and employees are made. These accounts are designated for servicing Payroll, Accounts Payable, and Health Benefits. These accounts are zero-balance accounts working in conjunction with the Core Account. 2. Sweep Account The Core account serves as the master account providing funds needed to pay the Payroll, Accounts Payable, and Health Benefits checks presented for payment each day. Excess funds are currently used to generate earnings credits to offset fees but they may also be invested to earn interest if that yields a better return. 3. Imprest Accounts A total of five accounts are designed for lesser volume activity and/or the payment of smaller amounts. These accounts issue checks, are generally funded monthly, and operate in a manner similar to petty cash funds. 4

5 4. Depository / Money Market and Savings Accounts Fresno EOC administers grants on behalf of many government agencies. Grants which provide funds in advance of need also require that unspent funds be deposited into interest bearing accounts until they are disbursed. 5. Fresno Community Development Financial Institution Accounts Fresno CDFI operates a variety of revolving loan funds from which loans are made to small businesses in underserved areas throughout Central California. We have received funds from certain government agencies which require tripartite deposit control agreements be signed. These accounts may only be serviced by a bank which agrees to the control agreements already in place. Please provide information regarding the forecasted ability of your financial institution to become parties to such agreements and what review process might be required for such agreements. Future similar agreements may also be necessary. 6. Investment Accounts Fresno EOC holds compensating assets against large liabilities and our self-funded health benefits plan. These funds are conservatively invested to provide safety, timely access, and income. Specifications: Responses to this RFP should cover the following components: 1. Background Company Name Contact Name and Title Home Office Address Address of the office to provide the services under the contract Contact s address Phone Fax Website 2. Structure and Experience General description of the financial institution Number of branches and size (especially in the Fresno County area) Number of employees Identify key staff and office location that if selected, will work on this account Number of years in existence Local and overall organizational structure Legal and other resources General services you are able to provide Percentage of business by product line 3. Non Profit Expertise / Relevant Experience Descriptions / examples of previous experience that may be relevant to servicing the banking needs of Fresno EOC. Provide a list of current clients with a similar non-profit structure. 5

6 4. Proposed Service Approach Describe your understanding of Fresno EOC s desired services. Discuss your firm s philosophy on the process of providing banking and investment services, including proposed techniques and methodology to be used for each task. Describe your firm s technological capabilities and what resources are available as a result. Provide information on resources used for benchmarking. Describe available resources utilized to stay current with, and to forecast, industry trends. Describe any services or portion of services, which will be performed by another firm, and provide relevant information on said firm s qualifications and personnel. State any difficulties foreseen in performing the designated tasks. 5. Service Team Describe the proposed account team including name, job title, current responsibilities, and years of experience, number of years with your firm, professional affiliations, and professional qualifications of the primary staff who will be assigned to Fresno EOC. Provide resumes of these key individuals as an Appendix to this proposal. Include your approach to providing quality customer service and response times on services such as opening new bank accounts and changes to the authorized signers. 6. Value Added Services Describe the value added services you would bring if you were selected (e.g. online access, training, customer support). Due to the significant government funding received by the Agency, please provide details on account structure and cash management options available that would provide insurance above and beyond that offered by FDIC and SIPC. Please list any normal courtesies or benefits that will be provided to the Agency and its employees (e.g. pricing discounts, free services). 7. Implementation Plan Supply an outline of an implementation plan including a timeline, key milestones, work streams, roles and responsibilities. 8. Commitment to Community Describe your institution s community participation/reinvestment program including your Community Reinvestment Act (CRA) rating, with special emphasis on its impact in Fresno County. Please submit a copy of the most recent rating. Please provide details of past partnerships between your institution and Fresno EOC or any of its affiliates. 9. Client References List three current non-profit clients who may be contacted as references. Please also include the number of years you have been working (or worked) with them. 10. Small, Women, Disabled Veteran, or Minority Owned Business and Diversity 6

7 7 REQUEST FOR PROPOSAL Efforts will be made to utilize small businesses, women, disabled veteran, and minority-owned businesses, with the consideration that the primary responsibility is the most favorable return to Fresno EOC. If applicable, provide publically certified documentation or a self-certification statement that is subject to examination. If not applicable, please so state. Please provide details of any efforts towards diversity by your financial institution. 11. Conflict of Interest Provide a statement of conflicts your firm; associate firms and/or key staff may have regarding these services. The statement should not only include actual conflicts, but also any working relationships that may be perceived by disinterested parties as a conflict. If no potential conflicts of interest are identified, state so within your proposal. 12. Proposed Fee Structure / Pricing Please include a copy of your firm s fee schedule applicable to the services specific to this RFP. Identify whether costs are per transaction, monthly, etc. Please see Table A below for estimated monthly activity volumes If there are minimum fees, provide how it would be determined. Identify any expenses (including initial set up fees) required to fulfill these services which may not be covered in the standard fee schedule. All pricing must be typed or written in ink. No erasures or correction fluid is permitted. Pricing will be reviewed based on reasonableness for services being provided, competitive market rates, and fee structure. Fresno EOC is not obligated to select the firm with the lowest fee proposal to perform these professional services. Right to Reject Fresno EOC reserves the right to reject any and all proposals received in response to this RFP. A contract for the accepted proposal will be based upon the factors described in this RFP. Fresno EOC reserves the right to waive informalities or irregularities in bids. In case of deviation from enclosed specifications, the bidders shall indicate in writing the exception(s) from the specifications. If no exception(s) is noted, it is understood that the specification will be complied within detail as requested WITH NO EXCEPTION. Patent Indemnity The Bidder shall hold Fresno EOC, its officers, agents, and employees, harmless from liabilities of any nature or kind on account of use of any copyrighted or un-copyrighted composition, secret process, patented or unpatented invention, article of appliance furnished or used under this RFP. Selection Process All eligible proposals will be reviewed and rated for their qualifications, experience, price, and suitability to complete the Scope of Work for this RFP. A short list of Financial Institutions will be called for oral interviews Fresno EOC, at its discretion, may request presentations or additional information from any or all Bidders to clarify or negotiate modifications to the Bidders proposals. However, Fresno EOC reserves the right to make an award without further discussion of the proposals submitted. Therefore, proposals should be submitted initially on the most favorable terms, from both technical and price standpoints, which the Bidder can propose. All bids

8 are subject to approval by the Fresno EOC Board of Commissioners. Notice to selected bidder to proceed with scope of work is anticipated by December 19, Proposal evaluation shall be based solely on the information provided in the proposal submittal package. Be sure to include all relevant information and evidence of your firm s record of performance and ability to perform the work. Table A-Monthly Transaction Volume Deposit Services Account Reconciliation FDIC Insurance 1,532,500 CD Imaging Monthly 1 Monthly Maintenance Fee 15 CD Imaging Item 2,500 Checks Paid 2,500 Stand Alone Positive Pay Monthly 2 Deposit Tickets 110 Stand Alone Positive Pay Items 2,000 Items Deposited 260 Stand Alone Payee Positive Pay Mo. 1 Currency Deposit (per $100) 220 Stand Alone Payee Positive Pay Items 500 Remote Check Maintenance 1 Deposit Control Agreement Maint 5 ACH Monthly Maintenance Fee 3 Online Services ACH Item Originated 2,400 Cash Manager Suite 1 ACH Batch Processed 9 Web ACH Module 2 ACH Credit Received 10 Positive Pay Module 3 ACH Debit Received 20 Domestic Wire Transfer out 10 ACH Debit Block 2 Cash Management ACH Debit Filter 4 ZBA Parent 1 ZBA Child 3 8

9 Firm Name Maximum Points Score Firm Structure and Experience Service Approach Key Personnel Diversity and SWaM Preference Regional Investments under CRA Price Structure and Experience [size, employee turnover, location(s)] 10 Experience with non profits 10 Understanding and innovation within scope of services 25 Experience and availability of assigned staff, including administrative staff 10 Small, Women, Disabled Veteran, and Minority Owned Business 10 Impact of CRA efforts in Fresno and the surrounding area 10 Competitive and Reasonable Pricing 25 Total Score 100 Reviewer's Signature Reviewer's Name Date 9