City of Madras. Request for Proposal (RFP) Banking Services. Date of Issuance: April 8, 2014 Proposals Due: May 14, 2014

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1 City of Madras Request for Proposal (RFP) Banking Services Date of Issuance: April 8, 2014 Proposals Due: May 14, 2014 City of Madras 125 SW E Street Madras, OR An Equal Opportunity Provider

2 ADVERTISEMENT CALL FOR SEALED PROPOSALS NOTICE IS HEREBY GIVEN that proposals will be accepted for banking services in accordance with a solicitation issued by the City of Madras. Information regarding specifications may be secured from the City of Madras, ATTN: Brandie McNamee, Finance Director, 125 SW E Street, Madras, Oregon Solicitation documents will be available beginning April 8, Pre-qualification of bidders will not be required. All bidders are required to comply with the applicable provisions of the Oregon Revised Statutes. Attention is directed to ORS 244, Government Ethics; ORS 279, Public Contracts and Purchasing; Oregon Administrative rules, Chapter 125, Division 300 to 360; Public Contract Exemptions; and State of Oregon Department of Justice Attorney General s Model Public Contract Rules Manual. The City of Madras reserves the right to: (1) reject any or all bids not in compliance with public bidding procedures, (2) postpone an award of the contract for a period of time the City determines reasonable, (3) waive informalities in the bids, and/or (4) terminate this solicitation. Dated this April 8, Brandie McNamee Finance Director PUBLISHED: Madras Pioneer: April 16, April 8, 2014 COPIES POSTED AS FOLLOWS: 1-City Hall, 125 SW E Street, Madras, Oregon City of Madras Bank Services RFP 2

3 REQUEST FOR PROPOSAL TABLE OF CONTENTS Title Page Page 1 Advertisement Page 2 Table of Contents Page 3 Introduction Page 4 1. Banking Services Proposal Instructions Page 5 2. Anticipated Schedule for Selection and Award of Contract Page 5 3. Current Banking Procedures Page 6 4. Required Banking Services Page Optional Banking Services Page Other Instructions and Information Required Page Proposal Response Format Page Evaluation Criteria Page Disclosure Page Conditions Qualifying a Bank to Propose Proposed Fee Schedule Authorized Representative Signed Agreement Exhibit A Exhibit B Exhibit C City of Madras Bank Services RFP 3

4 REQUEST FOR PROPOSAL (RFP) FOR BANKING SERVICES INTRODUCTION The City of Madras, Oregon (herein referred to as City or City of Madras ), through the Finance Department (herein referred to as Department ) is soliciting proposals from qualified banking entities for full banking services for a period of not less than three (3) years with options to renew. The purpose of this process is to obtain high quality requisite depository, banking, and merchant card services at a competitive price. The RFP will be available on April 8, 2014 on the City s website at under the Finance Department section. Proposals must be mailed or hand delivered no later than 4:00 pm on Thursday, May 14, Incomplete proposals will not be considered. Proposals must address all of the items listed in this request for proposal and be submitted in a sealed envelope marked Banking Services Proposal and be addressed to: City of Madras Attn: Finance Director 125 SW E Street Madras, Oregon, OR Please include one original and five copies of the proposal, along with an electronic version on CD or USB Drive for electronic document retention. Electronic submissions via or fax will not be accepted. Any questions or concerns regarding the RFP should be submitted in writing prior to May 1, 2014 to Brandie McNamee, Finance Director via to: bmcnaee@ci.madras.or.us. This RFP will not preclude the City from utilizing services of other financial institutions to complement this agreement and provide convenient banking for customers. The City of Madras reserves the right to: (1) reject any or all bids not in compliance with public bidding procedures, (2) postpone an award of the contract for a period of time the City determines reasonable, (3) waive informalities in the bids, and/or (4) terminate this solicitation. 1. BANKING SERVICES PROPOSAL INSTRUCTIONS Your response to the City s RFP must follow the enclosed Proposal Response Format, in the exact order listed. Any proposal that does not address or cannot provide all of the required banking services elements or conditions qualifying a financial institution to propose, or does not provide the information requested in other instructions, will be excluded from consideration unless the deviations are considered immaterial by the selection committee. The selection committee is comprised of the Finance Director and other persons designated by the Finance Director. City of Madras Bank Services RFP 4

5 All proposals are considered public records subject to disclosure to the extent that any information contained within the proposal is not exempt under Oregon Public Records Law. The applicant must specifically identify in the proposal what information, if any, is considered exempt and the Applicant shall assume all responsibilities for such defense. The City will endeavor not to disclose such information to the extent allowed under Oregon law. Pricing is not considered proprietary information and is not confidential in nature. Should there be any changes made in the RFP, a written addendum will be provided to all parties and will include any required adjustments in schedule dates. This addendum may be published on the internet or ed to those identified. 2. ANTICIPATED SCHEDULE FOR SELECTION AND AWARD OF CONTRACT Release of RFP April 8, 2014 Deadline for Submitting RFP Questions May 1, 2014 Sealed Proposals Due May 14, 2014 by 4:00 p.m. Evaluate Proposals May 15-28, 2014 Interview Finalists (if necessary) To be determined Notice of Intent to Award June 2, 2014 City Council Approval of Contract June 10, 2014 Implementation and Conversion June 11-July 31, 2014 Effective Date of New Contract August 1, 2014 These dates are estimates and subject to change by the City. The anticipated selection date expresses the present intent of the City of Madras to award a contract for banking services and is not a representation, agreement or promise that in fact any contract will be awarded on that date or any other time. Proposers are advised that if any information submitted is intended to remain confidential, it must be clearly identified as such. The City will endeavor not to disclose such information to the extent allowed under Oregon law. Questions or requests for clarification may be directed to Brandie McNamee, Finance Director at (541) or address at bmcnamee@ci.madras.or.us. 3. CURRENT BANKING PROCEDURES The City of Madras currently maintains a commercial banking relationship with two depositary institutions. The local branch of the City s primary account is no longer open for business in Madras as of January 1, 2014, and the City seeks a local banking institution that demonstrates a strong commitment to customer service through its banking services and products. In addition, the City seeks to improve its efficiency through customized systems and procedures by consolidating services with one commercial entity. The City will look to its bank partner for creativity and flexibility in meeting the City s needs. The City of Madras uses a pooled cash method of accounting, whereby cash from all governmental, proprietary and fiduciary funds are combined to maximize its earnings potential. An adequate cash balance is maintained in the Oregon State Treasury s Local City of Madras Bank Services RFP 5

6 Government Investment Pool (the LGIP ) to meet short-term requirements. Investments are regulated by Oregon Revised Statutes. Electronic transfers are made to and from the LGIP to meet immediate cash needs and maximize earnings. The City utilizes an interim local branch as its main depository account for the deposits of monies collected. Daily deposits of cash and checks are prepared by the City s Finance office and are transported by an employee to the local branch each afternoon. Once funds are deposited, staff completes wire transfers to the primary banking entity that no longer has a branch in Madras, however maintains all the current accounts. The City prints all checks from the accounting system on preformatted check stock with preprinted sequential numbering. There are three departments that accept credit / debit card payments utilizing three Merchant ID s throughout the City. One of these Merchant ID s is virtual merchant, with the remaining two utilizing a card swipe type terminal. The City also has two credit cards that is utilized by the Finance Director and Police Department to use for required credit on travel arrangements for staff or other online service orders. The City offers direct deposit of payroll. The City uses Caselle financial software, and creates an ACH file for direct deposits. In the future, the City may consider utilizing remote deposit capture services, positive pay, e- payables and other credit/debit card payment systems for directors. The City would prefer centralized services maintained to protect City assets at reasonable costs. The City seeks to improve operational and cash management efficiencies that may be available with alternative systems and procedures and will look to its bank for creativity, expertise and flexibility. 4. REQUIRED BANKING SERVICES A1. A depository account(s) to maintain regular daily activity. A2. Full-service bank branch located in Madras, Oregon. The successful proposer is required to have an active business license with the City at time of contract acceptance in June 2014, and maintain an active business license while conducting business within the City of Madras. A3. The bank will provide standard banking supplies and services; including but not limited to, duplicated deposit slips, depository keys, secured deposit bags and endorsement stamps to the City at no additional cost. The City will provide all checks utilized. A4. City requires that a night depository be available after 5:00 p.m. with depository keys. A5. The bank will provide online (web based) banking services to the City for daily and monthly reporting of account balances, managing controlled disbursements, collected and ledger balances, stop payment requests, returned checks, confirmations, detailed debits and credits, and image access for all warrants, checks, and deposits. City of Madras Bank Services RFP 6

7 A6. The bank will provide overdraft protection services. The City shall not be charged or penalized if an overdraft results because the account balance information is not available by 8:00 a.m. Pacific Standard Time on a daily basis. The bank shall define, in detail, the rates and formula for calculating any charges resulting from an overdraft of minimum balance required of sweep account: (1) if balance drops below a predefined peg balance, (2) if account does not have sufficient balance to cover sweeps, or (3) if there is insufficient collected funds to cover sweeps. A7. Provide blocks and filters that can limit electronic credits and debits by Originating ID and limit debits by dollar amount on ACH transactions ( Electronic Payment Authorization ). A8. Capable of providing merchant bankcard services. A9. Capable of providing credit card services and ability to pay online from the primary account. A10. Automatic redeposit of returned checks a second time, if the instruments are initially dishonored due to NSF notations. NSF fees are to be assessed against the monthly analysis. A11. Monthly checking account statements with ability to provide images of both deposits and cleared checks at a minimum of (5) days after the end of each month. The check images need to be available either online for up to 12 months, downloadable each month, or available per CD-ROM for electronic document retention for audit and review purposes. A12. On-line banking shall provide the ability to electronically transfer balances between accounts as well as the ability to process ACH credit and debit files and perform wire transfer payments. The security administration provided within the on-line banking system should accommodate multiple users with different security levels relative to many different accounts. A13. Provide monthly account analysis statement clearly defining services, ledger and collected balances, credits for balances in excess of uncollected funds, and costs incurred by the City. All fees and costs of service are to be charged against the account analysis. Monthly account analysis statements shall be provided not later than fifteen (15) business days after the end of each month. The City is requesting an annual settlement date on all account analysis charges. A14. The bank must maintain wire transfer facilities through the Federal Reserve Bank System. In addition, the bank must be both a sending and receiving financial institution on the Automated Clearing House (ACH) system. A15. If the City develops a need for additional accounts or services during the term of the banking services agreement, those new accounts or services shall be provided with the most favorable conditions as apply to other customer accounts. City of Madras Bank Services RFP 7

8 A16. Direct Deposit of City Payroll - Describe the pricing and procedures you propose for direct deposit of City payroll. Briefly include pre-noting details, direct transmission format requirements, timing requirements of data exchange, and other details you consider relevant. Data is currently being transmitted by the City on approximately 20 employees utilizing an Excel (.xls) file format with a cutoff time of transmittal by 5:00 pm for credit the following morning to individual employee accounts. A17. The bank shall indicate the primary resource personnel and location of such personnel who will provide banking services to the City within the scope of this agreement. One primary bank officer should be designated for communication purposes. In addition, the bank shall identify liaison staff members on the basis of primary contact people and backup contact people who will be available during City business hours to assist in resolving issues. The resource personnel should be knowledgeable in government services and authorized to represent the bank. A18. An explanation of disaster recovery and backup procedures that are in place to protect the City and the bank in the event of disaster to either entity or both. A19. All stop payments shall be charged against the account analysis. Describe the effective length of the request and renewals. Are stop payments necessary for issued checks with a void Positive Pay in place? Is a log of current stop payments available? 5. OPTIONAL BANKING SERVICES B1. Please state what your bank can provide in terms of an automatic overnight investment account. Be certain that what is proposed is legal under Oregon Revised Statutes. The City reserves the right to request and negotiate with more than one financial institution without additional formal competitive procurement processes, in order to obtain optimum earnings during the contract period. B2. Semi-annual review of analysis statements by bank representative with Finance Director and staff to identify anomalies, problems, or opportunities for lower cost and improved services. B3. Remote deposit capture online services enabling the electronic capturing of check images and data. Transmitting that information for deposit and clearing of these check items. Please state capabilities and costs. B4. Purchase / prepaid cards capabilities and costs. B5. Utilizing electronic payment vs. paper check, benefits, costs, security, etc. (e-payables) B6. Check protection ( Positive Pay ) services. 6. OTHER INSTRUCTIONS AND INFORMATION REQUIRED C1. The proposal may include services in addition to those set forth in Sections 4 and 5 of this solicitation which the City may wish to consider and acquire. The City reserves City of Madras Bank Services RFP 8

9 the right to solicit comparable information on such services from all other banks responding to this request for proposal. C2. Include the bank and staff profile with a description of the bank s experience in providing services to the public sector, including staff resources dedicated to the public sector. Include three (3) Oregon public sector references, including a brief description of the services provided and a contact person and telephone number for each client identified. C3. Describe your organizational structure, identifying the process used in making decisions regarding the City s accounts. (i.e., decisions made at a local level versus regional level). C4. Include a sample of any service agreements your bank requires. C6. Include a schedule of all bank service fees covering all services your bank can provide. C7. Describe what index the earnings rate on the general account would be pegged to, listing the last six months applicable rates. C8. Merchant bankcard services - A separate Excel document, Exhibit B, is attached reflecting actual credit card activity for twelve (12) months and the departments presently accepting bankcard payments. Describe your merchant bankcard services offered and provide a cost estimate for credit card payment processing based on the volumes supplied, either one for the entity in total, or individually by department. Including one-time set-up and equipment fees. Also, include any other fees associated with setting up bankcard machines with your bank and costs of supplies. C9. Identify the index the earnings rate on the general account would be pegged to, listing the last six months applicable rates. C10. Though the City will normally attempt to keep the collected balance as low as possible, the earnings credit for the collected balance will be used to offset charges. Describe how the carry-forward is used in determining the earnings credit and the related settlement interval, monthly, quarterly, annually? Describe in detail the method of calculating the earnings credit and any applicable reserve requirements. Explain any charges that would not be offset by compensating balances. C11. Include a detailed description of the bank s online services available to the City and all its capabilities. Provide pricing for online services if applicable. C12. Include a sample of the monthly detailed statement. C13. Include a sample of the monthly account analysis statement. C14. Each proposer is requested to include a proximity study showing the nearest depository facility your financial institution provides. City of Madras Bank Services RFP 9

10 C15. Describe briefly your proposed implementation plan and related timetable, including any required training and how your staff can assist the City in making the transition to your financial institution. The plan should provide the City with sufficient detail to allow for a reasonable estimate of the complexities and costs. Specifically address the assistance that would be provided in a transfer of merchant services. 7. PROPOSAL RESPONSE FORMAT Please respond to the City s RFP in the exact order as listed. There is a maximum 25 page limitation for the proposal submission documents. Résumés, required submission forms attached, and supplemental information will not be counted in the maximum 25 page limitation. Please provide one original proposal with five copies and one electronic version either on CD or USB drive. Cover and Transmittal Letter The cover should designate the proposing bank, the primary address of the bank office where the government banking relationship will reside, the address of the local branch, if different, a contact for inquiries and be signed by the authorized bank officer. It should state the date the proposal was submitted. No pricing information should be included in the cover letter. The letter should also explain why the proposer believes it should be selected and briefly address its commitment, if selected, to provide services to the City of Madras. TAB 1. REQUIRED BANKING SERVICES- Meet all requirements in section 4, if not list exception items with detailed explanation. TAB 2. OPTIONAL BANKING SERVICES List any optional banking services your organization is able to provide that would benefit the City of Madras. TAB 3. OTHER INSTRUCTIONS AND ADDITIONAL INFORMATION- Provide copies of the additional materials requested to assist in properly evaluating your entity. TAB 4. CONDITIONS QUALIFYING A BANK TO PROPOSE- Answer the listed questions specified for eligibility per the attached form. TAB 5. PROPOSED FEE SCHEDULE- Complete the attached form. 8. EVALUATION CRITERIA It is the intent of the City of Madras to award the contract to the bank that will best serve the City s interests. To this end, each proposal will be evaluated on eight (8) key criteria. The contract will be awarded to the banking institution with the highest net total. The eight (8) criteria will be weighted according to the following allocations: Score Section Evaluation Description Range 1 Completeness of Proposal Banking Experience and personnel assigned to the account. Ability to illustrate benefits of local relationships and capacity to resolve issues timely. 1-5 City of Madras Bank Services RFP 10

11 3 Completeness of other items requested in Section 6 of the 1-10 proposal. Ability to provide examples that were clear and easy to understand. 4 Reference Check with other Public sector customers Ability to meet minimum requirements specified in section 4. All service requirements must be able to be installed and operating on the first day of the bank contract upon full implementation Ability to present optional banking services or options that 1-15 would benefit cash management and create efficiencies within the finance department. 7 Ability to specifically address merchant service rates that are cost 1-20 effective and provide solutions to various locations and activity levels. 8 Rate and Fee Structure of all proposal components TOTAL MAX POINTS ALLOWED DISCLOSURE: a. Proposers responding to this solicitation do so at their own expense. The City is not responsible for any expenses associated with the preparation of any proposals. The City reserves the right to reject any and all proposals and/or waive any and all formalities if in the City s best interests. b. If a contract is awarded, the City will award the contract to the proposer whose proposal will best serve the City s interests, taking into account price and various other considerations, including, without limitation, services offered, experience, capability, and expertise. The evaluation criteria provided above under Section 8 is intended to identify which proposer will be serve the City s interests. The City may, at its sole option, either accept a proposer's initial proposal by award of the contract or enter into discussion with the proposer whose proposal is deemed to be reasonably suitable for award. c. The City and any selected proposer will enter into a contract concerning banking services. The contract will contain terms and conditions required under applicable law and will otherwise be in form and content satisfactory to the City. Without otherwise limiting the generality of the immediately preceding sentence, the contract will include terms and conditions concerning, among other things, acceptable standards of performance, compensation, minimum insurance requirements, compliance with laws, indemnification, and representations and warranties. d. The City reserves the right to make such investigations as it deems necessary or appropriate to determine the ability of a proposer to furnish the required services, and each proposer will furnish all such information for this purpose as the City may reasonably request. e. Proposers must specifically identify any portions of their submittals deemed to contain confidential or proprietary information or trade secrets. Those portions must be readily separable from the balance of the proposal. Such designations will not necessarily be City of Madras Bank Services RFP 11

12 conclusive, and proposers may be required to justify why the City should not, upon written request, disclose such materials. f. A proposer awarded the contract will be required to obtain the City s business license, and maintain an active business license while conducting work within the City of Madras. City of Madras Bank Services RFP 12

13 EXHIBIT A: CONDITIONS QUALIFYING A BANK TO PROPOSE Banking institutions submitting proposals must meet or exceed the following minimum criteria: (Indicate this by checking YES or NO next to each item) 1. Comply with Oregon Revised Statute (ORS) Chapter 295 governing the collateralization of public funds? YES NO 2. Be an approved Qualified Depository for Public Funds on the Oregon State Treasury website at the following? YES NO 3. Have a full-service bank branch located in the City of Madras? YES NO 4. Be a member of the Federal Reserve System and have access to all of its services? YES NO 5. Be insured by the Federal Deposit Insurance Corporation (FDIC)? YES NO 6. Be able to facilitate transfers to and from the Local Government Investment Pool managed by the Oregon State Treasurer s Office? YES NO 7. Be a full service bank capable of providing, at a minimum, the services described in the Required Banking Services section of this Request for Proposals? YES NO 8. Be a federally or State of Oregon chartered financial institution? YES NO 9. Work with the City on implementing technological advancements that would be cost effective for the City? Proposals regarding these kinds of services should be described separately as optional services. YES NO 10 Agree to assign experienced and dedicated staffs who are committed and capable of servicing the City s accounts? YES NO 11. Be able to facilitate NACHA formatted Automated Clearing House ACH payments? YES NO City of Madras Bank Services RFP 13

14 EXHIBIT B - PROPOSED FEE SCHEDULE COMPARISON The Proposer shall provide a schedule of fees using this format. Volumes indicated on this are average volumes for 3 months, and actual may vary from month to month. For services not specific on the form, but which the vendor proposes to charge for, or where a differing level of service is proposed, the vendor shall provide a description of the service and the proposed fee structure. Average Monthly Accounting Services Volume Checks Paid 160 Deposits Processed 21 Monthly Maintenance 1 Deposit Administration Fee (Checks deposited- Non- Coded) 892 Non-encoded on US 99 Non-encoded on Local and Non-Local 898 Returned Deposit Items 3 Electronic ACH Credits 65 Electronic ACE Debits 13 Federal Tax Payment 2 WD Check Imaging 2 WD MID Mkt Base Fee 1 WD MID Mkt Pre Day Balance Items 170 WD MID Mkt Pre Day Detail Items 260 WD Analysis Statement 2 WD Deposit Statement 1 WD ACH Monthly Maintenance Cash Services 1 Currency Deposited 26,827 Coin Deposited 2 Dual Control Deposit 15 Unit Price Monthly Charge Total Annual Cost City of Madras Bank Services RFP 14

15 EXHIBIT C AUTHORIZED REPRESENATIVE SIGNED AGREEMENT City of Madras Request for Proposal Banking Services I, the undersigned, an authorized representative of whose address is:, have read and thoroughly understand the specifications, instructions and all other conditions of the request for proposal issued by City of Madras for banking services. Acting on behalf of my bank, which is listed above, I do attest that the services offered by us meet the specifications of the City of Madras in every respect, (check one) without exceptions or with exceptions (attached). We, therefore, offer and make this proposal to furnish the City of Madras with the banking services detailed in our proposal at the prices indicated. Bank Name: Address of Home Office: Date: Signature: Printed Name: Title: City of Madras Bank Services RFP 15