REQUEST FOR PROPOSALS BANKING SERVICES

Transcription

1 REQUEST FOR PROPOSALS BANKING SERVICES PROPOSAL DUE DATE: TUESDAY, FEBRUARY 16, 2016, NOON PST

2 RFP INFORMATION Title: Banking Services Contact: Mary Mc Carthy, Finance Manager Phone: ANTICIPATED TIMELINE FOR SUBMISSION AND EVALUATION January 19, 2016 January 26, 2016 February 16, 2016 February 16-18, 2016 February 22, 2016 Release of Request for Proposals Deadline for Submission of Questions Proposals due by Noon Evaluation of Proposals* City Council Award of Contract * Banks may be requested to interview with staff during this period SUBMISSION INSTRUCTIONS Submit Proposals To: Format: Mary Mc Carthy Finance Manager City of Pleasant Hill 100 Gregory Lane Pleasant Hill, CA Submit three (3) printed copies including one (1) signed original. Also submit one (1) electronic (pdf) copy on disc or via . Deadline: February 16, 2016 at Noon 2

3 Section A DESCRIPTION OF WORK I. INTRODUCTION The City of Pleasant Hill (City) is seeking proposals from qualified financial institutions to provide comprehensive banking services for its bank accounts and related depository and cash management operations. The financial institution must be incorporated under the laws of the State of California or of the United States with an office/deposit location within the City limits or in close proximity. II. BACKGROUND The City of Pleasant Hill (City) was incorporated on November 14, 1961 under the laws of the State of California. The City operates under the City Council-City Manager form of government and provides the following services: police, highway and streets, public improvements, planning and zoning, and general administrative services. The City s primary banking relationship has been with Bank of America. The City has determined that a review of the services offered by qualifying institutions is appropriate at this time. It is the City s preference to maintain all commercial banking services with one financial institution to maximize cash flow and minimize administrative costs. The City s banking activities are overseen by the City Treasurer and the Finance Manager. This RFP does not cover institutional custody services or corporate trust services. The City will endeavor to administer the proposal process in accordance with the terms and dates outlined in this RFP. However, the City reserves the right to modify the activities, timeline, or any other aspect of the process at any time, as deemed necessary. By requesting proposals, the City is in no way obligated to award a contract or pay the expenses of proposing banks in connection with the preparation or submission of a proposal. The award of any contract shall be contingent on the requisite staff s and City Council s approvals. Determination of best value to the City shall be based upon, but not limited to, the following considerations: cost; the ability, capacity, and skill of the proposer to provide the services; the ability of the provider to deliver timely services; the character, integrity, reputation, judgment, experience, and efficiency of the provider; and the quality of the provider s performance on previous contracts with the City. No single factor will determine the final award decision III. SCOPE OF SERVICES 3

4 A. Establish at least two accounts (Depository Account and Subsidiary Zero Balance Account) to meet the banking requirements of the City. B. Disburse funds via repetitive wire transfers or ACH upon either telephone or online request of an authorized person. C. Accept and send ACH transactions and provide online notification of ACH deposits within 24 hours. D. Process direct deposit of employee payroll bi-weekly. Approximately 100 City employees receive their payroll via direct deposit. E. Provide credit card merchant services. F. Provide positive pay services. G. Accept deposits at branch locations or local depositories. H. Provide deposit slips, deposit bags, and coin wrappers free of charge to the City s Finance Department. I. Process State of California Local Agency Investment Fund transfers and receive electronic funds payments for deposit of other State and county apportionments. J. Provide automated account reconcilement reporting services for City accounts. Available information should include, but not be limited to: closing ledgers, closing collected, opening ledgers, opening collected, float, previous day debit, and credit details (including bankcard deposits, sweep transfers, and ACH credit and debit detail). K. Provide online access to account information including daily activity reports, monthly statements, cleared checks, and automated stop payment. L. Provide monthly activity and account analysis statements and reports for all accounts. The statement cutoff should be the last day of the month. Statements must be sent no later than the 10th of the following month. M. Provide a quarterly review of the City s account balances and opportunities to improve the City s cash management, to be held at the City Offices. 4

5 IV. QUALIFYING REQUIREMENTS A. Be a federally or State of California chartered financial institution. B. Be a member of the Federal Reserve System and have access to all services. C. Be a qualified depository for public funds. D. Be a full service bank in good standing among other comparable banks. E. Be capable of providing the services sought by the City. F. Have an established office within the City limits or in close proximity. G. Agree to assign experienced and dedicated staffs who are committed to and capable of servicing our accounts. H. Be in compliance and good standing with the Community Reinvestment Act. I. Be sufficiently capitalized to accommodate our cash/investment management needs. V. REQUIRED INFORMATION Interested proposers must provide a proposal containing the following information to the City to be considered a viable candidate for this contract: A. Financial Institution Profile 1. Provide a general overview of your financial institution, customer service philosophy, and identification of the primary office or branch that the City will be assigned to and where the City will conduct its banking business. 2. Describe the financial institution s experience in providing similar services for other public clients. Please include the number of public agency clients, the dollar amount of public funds on deposit, and your financial institution s knowledge of and adherence to the California Government Code and other applicable laws. B. Staffing Provide resumes of financial institution officers who will be directly involved in the management of the City account; who the primary contact will be; and what, if any, experience these officers have in working with public clients. C. Banking Services 1. Describe the financial institution's ability and approach to provide the banking services described in Section III, Scope of Services, above and to what extent, if any, the service is automated. 2. Describe how interest will be calculated and credited on all accounts. Be specific. 5

6 3. What is the ledger cutoff time for deposits at the financial institution s local branch and at the financial institution s Processing Center? 4. Describe in detail the financial institution s procedures for handling deposit adjustments. What documentation on discrepancies does the financial institution provide? Is the documentation different for cash deposits and check deposits? What is the minimum adjustment amount? How soon would support documentation of a deposit discrepancy be provided to the City? 5. Describe the financial institution s returned item handling and notification procedures. Is an automatic re-clearing option available? How long does it take for returned items to be sent to the City? 6. Describe the financial institution s stop payment service and features. Can stop payments be entered online? How long is a stop payment effective? 7. Provide a copy of the availability schedule that would apply to deposits into the City accounts. 8. List the address of all branch offices in the City s vicinity. 9. Provide a list of the financial institution's holidays. 10. Describe how the financial institution will collateralize the City deposits. 11. Provide a detailed description of the controls in place to insure the integrity of the funds transfer system. 12. Describe the types of insurance and bonding carried. 13. Describe any services and technological enhancements not previously mentioned that should be considered for further improving the effectiveness of the City s treasury management operations. 14. Will the financial institution guarantee payment of all items even if it results in the account being overdrawn temporarily for the day? 15. Does the financial institution have the ability to confirm the clearing status of a check as an online service? If not, by phone? 16. Describe how to receive copies of paid items. How long does it take to obtain a copy of a paid check? Is this service available online? 17. Does the financial institution offer a CD-ROM and online imaging service? If so, please describe the service, the costs associated with this service and how long images are available online. 18. The City transacts State of California Local Agency Investment Fund (LAIF) transfers on a regular basis and receives electronic funds payments for deposit of various State and county apportionments. Is the financial institution an approved State of California depository? 6

7 What is the charge per transfer to LAIF? From LAIF? Please describe the LAIF transfer process. Are the transfers done by telephone, terminal (ACH), fax, wire transfer, etc.? Does the financial institution have an office in Sacramento that maintains a direct DDA banking relationship with the State Treasurer s Office and the State Controller s Office? 19. Direct Deposit of Payroll is currently in place, with the majority of the City s employees participating. The payroll files are transmitted by the City for paydays that occur on every other Thursday, except on holiday weeks. Please describe the financial institution's ACH and Direct Deposit service in detail. What are the different ACH file transmission options available to the City? What are the transmission deadlines for Direct Deposit ACH files? When (day and time) does the financial institution need the file from the City, and when specifically are funds debited from the City s account? Please describe in detail the financial institution s back-up plans for data transmissions. The City requires immediate notification of any changes or problems and the ability to re-send a file or to delete a file. What screening measures does the financial institution use to minimize errors on files sent to you i.e., pre-notes, ABA screening, etc.? 20. The City currently accepts Visa, MasterCard and Discover credit card payments. Please describe the financial institution's Bankcard and Point-of-Sale processing capabilities. What authorization methods do you support and which do you recommend? Please quote a discount rate and all other applicable charges for the credit card processing described above. Quote rates for both swiped and non-swiped transactions. What are the fees associated with debit card transactions? How is the applicable interchange fee determined for each transaction? What does the financial institution recommend to minimize interchange fees? When and how are the discount rate and other fees charged to the City? Can these fees be paid through account analysis? If the fees can be paid through account analysis, please describe how they are calculated and when they are charged. 7

8 Describe your reporting methodology and how adjustments and charge backs are handled. Are charge backs and other debit adjustments netted from daily proceeds or debited separately? Is the discount fee refunded when a charge back or refund occurs? What is the rebuttal process? When and how will the City receive funds for each day's transactions? Is settlement by ACH or Fed Wire? Are settlement amounts listed separately on the bank statement or will they appear as one lump sum? Will the financial institution break out settlement amounts by merchant location? Is the bankcard relationship managed by a separate unit of the financial institution, or by the Account Relationship Manager? Please briefly describe the structure of this area. What are the hardware costs if new terminals are required? 21. The City requires assurance of ability to provide financial services in the event of a major emergency and during the disaster recovery period. Describe in detail, the bank s compliance with state and federal regulations pertaining to this area. Describe testing of core service applications and systems that assure information backup, anti-intrusion and other privacy requirements. Describe operational diversification and geographical dispersal of service centers. 22. Provide copies of Depository and Service Agreements required to be executed under this contract for services rendered (including collateral agreements). Any changes or modifications required on any of these documents, agreements or forms will be discussed, reviewed by the City Attorney and mutually agreed upon before award of the contract is made by the City. 23. Describe the frequency and format of reports that you would provide to the City and include sample reports and records. 24. Provide the proposed prices for the list of basic banking services on the Requested Services Pricing worksheet included in Section E. Itemize any other charges that would apply to these accounts. 25. Does the City have the option of compensating your bank on either a fee or balance basis? Is the price the same for either option? If not, what is the difference? If on a fee basis, can excess balances be used to partially offset activity charges? 26. Please describe the procedures used to make an adjustment to bank statements and to assure a corresponding adjustment to account analysis statement. How is the adjustment handled if the analysis period has already ended? 27. How is your earnings credit determined, adjusted and applied? Please include in your explanation the impact of your reserve requirement, your formula for converting service charges to balance requirements, and a listing of your earning credits and reserve requirements. Are these calculated 8

9 quarterly or annually? 28. Describe the bank's policies concerning daylight overdrafts and what, if any, impact these policies may have on the management of the City's accounts. 29. There are services not otherwise identified in the City s RFP Scope of Services (Section III) that the proposer may offer to the City. Proposals are not required to address any additional services in order to be considered an acceptable proposal. However, final selection of the successful proposer may be based on the desirability and cost of the additional services offered. 30. Describe a conversion plan to transfer assets of the City to your financial institution. 31. What lead-time do you expect will be necessary before the conversion begins? 32. Describe your plans for educating and training the City employees in the use of your systems and for providing support after implementation. 9

10 Section B GENERAL TERMS AND CONDITIONS PROPOSAL REQUIREMENTS 1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (proposer) shall meet all of the terms, and conditions of the Request for Proposals (RFP) specifications package. By virtue of its proposal submittal, the proposer acknowledges agreement with and acceptance of all provisions of the RFP specifications. 2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the specifications and accompanied by any other required submittals or supplemental materials. Proposal documents shall be enclosed in an envelope that shall be sealed and addressed to Mary Mc Carthy, Finance Manager, City of Pleasant Hill, 100 Gregory Lane, Pleasant Hill, CA, In order to guard against premature opening, the proposal should be clearly labeled with the proposal title, name of proposer, and date and time of proposal opening. No FAX submittals will be accepted. 3. Insurance Certificate. Each proposal must include a certificate of insurance showing: a. The insurance carrier and its A.M. Best rating. b. Scope of coverage and limits. c. Deductibles and self-insured retention. The purpose of this submittal is to generally assess the adequacy of the bidder s insurance coverage during proposal evaluation; as discussed under paragraph 11 below, endorsements are not required until contract award. The City s insurance requirements are stated in detail in the City s Professional Service Agreement in Section D. 4. Proposal Quotes and Unit Price Extensions. The extensions of unit prices for the quantities indicated and the lump sum prices quoted by the proposer must be entered in figures in the spaces provided on the Proposal Submittal Form(s). Any lump sum proposal shall be stated in figures. The Proposal Submittal Form(s) must be totally completed. If the unit price and the total amount stated by any proposer for any item are not in agreement, the unit price alone will be considered as representing the bidder's intention and the proposal total will be corrected to conform to the specified unit price. 5. Proposal Withdrawal and Opening. A proposer may withdraw its proposal, without prejudice prior to the time specified for the proposal opening, by submitting a written request to the Assistant city Manager for its withdrawal, in which event the proposal will be returned to the proposer unopened. No proposal received after the time specified or at any place other than that stated in the "Notice to Proposers will be considered. 6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested in more than one proposal, except an alternative proposal when specifically requested; however, an individual or business entity that has submitted a sub-proposal to a proposer submitting a proposal, or who has quoted prices on materials to such bidder, is not thereby disqualified from submitting a sub-proposal or from quoting prices to other proposers submitting proposals. 10

11 7. Communications. All timely requests for information submitted in writing via will receive a written response from the City. Telephone communications with City staff are not encouraged and any such oral communication shall not be binding on the City. CONTRACT AWARD AND EXECUTION 8. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of 60 days for examination and comparison. The City also reserves the right to waive non-substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations. See the "special terms and conditions" in Section C of these specifications for proposal evaluation and contract award criteria. 9. Competency and Responsibility of Bidder. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of proposers. Proposers will provide, in a timely manner, all information that the City deems necessary to make such a decision. 10. Contract Requirement. The proposer to whom award is made (Contractor) shall execute a written contract with the City within ten (10) calendar days after notice of the award has been sent by mail to it at the address given in its proposal. The contract shall be made in the form adopted by the City and incorporated in these specifications. Any requested deviations to the attached standard Professional Services Agreement must be set forth in the proposal. Otherwise, proposer shall be deemed to have accepted all terms of the Agreement. 11. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages and amounts specified in Section D of these specifications within 10 (ten) calendar days after notice of contract award as a precondition to contract execution. 12. Business License and Tax. The Contractor must have a valid City of Pleasant Hill business license and tax certificate before execution of the contract. Additional information regarding the City's business license and tax program may be obtained by calling (925) CONTRACT PERFORMANCE 13. Ability to Perform. The financial institution warrants that it possesses all licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county, city, and special district laws, ordinances, and regulations. 14. Laws to be Observed. The financial institution shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of Pleasant Hill ordinances, regulations, and adopted codes during its performance of the work. 11

12 Section C SPECIAL TERMS AND CONDITIONS 1. Contract Term. The term of the contract shall be for a period of three years at which time the performance of the bank will be evaluated. Upon mutual agreement at that time, the City Manager or their designee may extend the contract for another period of three years. 2. Chartered Institution/Branch Office in City. Proposers must be a federally or State of California chartered institution and must maintain a full-service branch within the limits of the City of Pleasant Hill during the term of the contract. 3. Commencement of Banking Services. The successful proposer shall begin providing the full scope of services no later than March 1, Proposal Content. Your proposal submission package must include the following information: Submittal Forms These are provided in Section E: a. Proposal submittal summary b. References from four companies (preferably government agencies) for whom you have provided similar services and a list of any clients where similar services were provided who terminated services in the last three years prior to the end of the service agreement. c. Statement of past contract disqualifications or terminations for 10 years. d. Required services pricing schedule Note: For ease of preparation, proposers may recreate these forms electronically as long as the same information is provided in a similar format. Supplemental Attachments To be an acceptable proposal, all of the above documents must be included with the submittal, along with responses to the Required Information set forth in Section A. In addition, the following attachments may be required: e. If the prospective banking institution is proposing alternatives or non-substantial deviations to the Banking Services, a full description and justification for the proposed alternative or deviation must be included with the proposal. 12

13 f. If the prospective banking institution is proposing an alternative method for pricing of banking services, a full description of the alternative must be included with the proposal along with computation detail. g. We encourage you to be creative and educational in your responses. Include information about the bank s community involvement and the dedicated resources for serving the public sector. While your format must be consistent with the requirements of this RFP, if you believe there is additional information that would be beneficial to us, we invite you to include it in your proposal. Proposal Length and Copies h. Proposals should not exceed 25 pages, including attachments and supplemental materials. Proposals should be on 8 1/2x11 inch paper, minimum 11 point font and top/bottom margins of at least 0.5 inches and left/right margins of at least 1.0 inches. i. Three copies of the proposal must be submitted (one signed). 5. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee based on the following criteria: a. Understanding of the work required by the City. b. Quality, clarity and responsiveness of the proposal. c. Demonstrated competence and professional qualifications necessary for successfully performing the work required by the City. d. Recent experience in successfully performing similar services. e. Ability to provide evolving technologies, products and services. f. Reliability and quality of customer service. g. Financial strength and capitalization. h. Commitment to the government market. i. Proposed approach in completing the work. 13

14 j. References. k. Background and related experience of the specific individuals to be assigned to this project. l. Proposed compensation. As reflected above, contract award will not be based solely on price, but on a combination of factors as determined to be in the best interest of the City. After evaluating the proposals and discussing them further with the finalists or the tentatively selected contractor, the City reserves the right to further negotiate the proposed work and/or method and amount of compensation. 6. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by the banking institution as part of the work or services under these specifications shall be the property of City. 7. Copies of Reports and Information. If the City requests additional copies of reports, or any other material in addition to what the banking institution is required to furnish in limited quantities as part of the work or services under these specifications, the banking institution shall provide such additional copies as are requested, and City shall compensate the banking institution for the costs of duplicating of such copies at the banking institution s direct expense. 8. Non-Exclusive Contract. The City reserves the right to contract with other banking institutions during the contract term. 14

15 Section D FORM OF AGREEMENT AGREEMENT FOR PROFESSIONAL SERVICES This Agreement is made and entered into as of the day of, 201, by and between the City of Pleasant Hill ("City") and, ("Consultant"). RECITALS A. Consultant is specially trained, experienced and competent to perform the special services which will be required by this Agreement; and B. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement on the terms and conditions described herein. AGREEMENT 1. Scope of Services. The Consultant shall furnish the following services in a professional manner: [Insert description of services to be provided] OR "Consultant shall perform the services described on Exhibit A which is attached hereto and incorporated herein by reference. Consultant shall provide said services at the time, place, and in the manner specified in Exhibit A, subject to the direction of the City through its staff that it may provide from time to time." 2. Time of Performance. The services of Consultant are to commence upon execution of this Agreement and shall continue until all authorized work is approved by the City. All such work shall be completed no later than. 3. Compensation. Compensation to be paid to Consultant shall be in accordance with the Schedule of Charges set forth in Exhibit A, which is attached hereto and incorporated herein by reference. In no event shall Consultant's compensation exceed without additional authorization from the City. Payment by City under this Agreement shall not be deemed a waiver of defects, even if such defects were known to the City at the time of payment. 4. Method of Payment. Consultant shall submit monthly billings to City describing the work performed during the preceding month. Consultant's bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, and a description of any reimbursable expenditures. City shall pay Consultant no later than 30 days after approval of the monthly invoice by City staff. When payments made by City equal 90% of the maximum fee provided for in this Agreement, no further payments shall be made until the final work under this Agreement has been accepted by City. 5. Ownership of Documents. All plans, studies, documents and other writings prepared by and for Consultant, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notes and internal documents, shall become the property of the City upon payment to Consultant for such work, and the City shall have the sole right to use such materials in its discretion without further compensation to Consultant or to any other party. Consultant shall, at Consultant's expense, provide such reports, plans, studies, documents and other writings to City upon written request. 6 Independent Contractor. It is understood that Consultant, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and shall not act as an agent or employee of the City. Consultant shall obtain no rights to retirement benefits or other benefits which accrue to City's employees, and Consultant hereby expressly waives any claim it may have to any such rights. 7. Interest of Consultant. Consultant (including principals, associates and professional employees) covenants and represents that it does not now have any investment or interest in real property and shall not acquire any interest, direct or 15

16 indirect, in the area covered by this Agreement or any other source of income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant's services hereunder. Consultant further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement. Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant will not: a. make a governmental decision whether to: 1. approve a rate, rule, or regulation; 2. adopt or enforce a law; 3. issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement; 4. authorize the City to enter into, modify, or renew a contract provided it is the type of contract that requires agency approval; 5. grant City approval to a contract that requires agency approval and to which the City is a party, or to the specifications for such a contract; 6. grant City approval to a plan, design, report, study, or similar item; 7. adopt, or grant City approval of, policies, standards, or guidelines for the agency, or for any subdivision thereof; or b. serve in a staff capacity with the City and in that capacity participate in making a governmental decision as defined in 2 California Code of Regulations ( C.C.R ) 18704(a) and (b) or perform the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City s Conflict of Interest Code under 2 C.C.R (2 C.C.R ) 8. Professional Ability of Consultant. City has relied upon the professional training and ability of Consultant to perform the services hereunder as a material inducement to enter into this Agreement. Consultant shall therefore provide properly skilled professional and technical personnel to perform all services under this Agreement. All work performed by Consultant under this Agreement shall be in accordance with applicable legal requirements and shall meet the standard of quality ordinarily to be expected of competent professionals in Consultant's field of expertise. [If more appropriate, you may want to use the following language in place of the second sentence above: "The primary provider of the services called for by this Agreement shall be, who shall not be replaced without the written consent of the City."] 9. Indemnity. Consultant agrees to defend, indemnify and hold harmless the City, its officers, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damages, injuries, and liability, direct or indirect (including any and all related costs and expenses in connection therein), arising out of the performance of this Agreement, except for any such claim arising out of the sole negligence or willful misconduct of the City, its officers, agents, employees or volunteers. 10. Insurance Requirements. a. Consultant, at Consultant's own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies. To the extent that any portion of the following requirements are satisfied through excess or umbrella coverage, such coverage shall be maintained on the same terms as are required for the primary policies under this Agreement. i. Workers' Compensation Coverage. Consultant shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his/her employees in accordance with the laws of the State of California. In addition, Consultant shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non-renewal of all Workers' Compensation policies must be received by the City at least thirty (30) days prior to such change. The insurer shall agree to waive all rights of subrogation 16 against City, its officers, agents, employees and

17 volunteers for losses arising from work performed by Consultant for City. [If the Consultant does not have any employees, add the following to the end of subparagraph i.: "This provision shall not apply if Consultant has no employees performing work under this Agreement. If the Consultant has no employees for the purposes of this Agreement, Consultant shall sign the "Certificate of Exemption from Workers' Compensation Insurance" which is attached hereto as Exhibit."] ii. General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. iii. Automobile Liability Coverage. Consultant shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than two million dollars ($2,000,000) combined single limit for each occurrence. iv. Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant's operations under this Agreement, whether such operations be by the Consultant or by its employees, subcontractors, or subconsultants. The amount of this insurance shall not be less than two million dollars ($2,000,000) on a claims-made annual aggregate basis, or a combined single-limit per occurrence basis. b. Policy Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a Best's rating of no less than A:VII and shall be endorsed with the following specific language: i. The City of Pleasant Hill, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work or operations. ii. This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self-insured retention the City may have, shall be considered excess insurance only and shall not contribute with it. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers. v. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City. c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the City's option, Consultant shall demonstrate financial capability for payment of such deductibles or self-insured retentions. d. Certificates of Insurance and Endorsements. Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement. 11. Compliance with Laws. Consultant shall use the standard of care in its profession to comply with all applicable federal, state and local laws, codes, ordinances and regulations. 12. Licenses. Consultant represents and warrants to City that it has all licenses, permits, qualifications, insurance and approvals of whatsoever nature which are legally required of Consultant to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, insurance and approvals which 17 are legally required of Consultant to practice its profession.

18 Consultant shall maintain a City of Pleasant Hill business license. 13. Controlling Law Venue. This Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Agreement shall be held exclusively in a state court in the County of Contra Costa, Martinez, California. 14. Written Notification. Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party shall be in writing and either served personally or sent prepaid, first class mail. Any such notice, demand, etc. shall be addressed to the other party at the address set forth herein below. Either party may change its address by notifying the other party of the change of address. Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section. If to City: If to Consultant: City of Pleasant Hill 100 Gregory Lane Pleasant Hill, CA [add name and address] 15. Consultant's Books and Records. a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant to this Agreement. b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Consultant's address indicated for receipt of notices in this Agreement. d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant's business, City may, by written request by any of the above named officers, require that custody of the records be given to the City and that the records and documents be maintained in City Hall. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant's representatives, or Consultant's successor-in-interest. 16. Entire Agreement. This Agreement constitutes the complete and exclusive statement of Agreement between the City and Consultant. All prior written and oral communications, including correspondence, drafts, memoranda, and representations, are superseded in total by this Agreement. 17. Amendments. This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney. 18. Waiver. No failure on the part of either party to exercise any right or remedy hereunder shall operate as a waiver of any other right or remedy that party may have hereunder. 19. Litigation Expenses and Attorneys' Fees. If either party to this Agreement commences any legal action against the other party arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and attorneys' fees. 20. Execution. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart. 18

19 21. Assignment and Subcontracting. The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Consultant. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express consent of the City. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of the City. If City consents to such subcontract, Consultant shall be fully responsible to City for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise is required by law. 22. Termination. This Agreement may be terminated immediately for cause or by either party without cause upon fifteen days' written notice of termination. Upon termination, Consultant shall be entitled to compensation for services performed up to the effective date of termination. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above. CITY OF PLEASANT HILL: CONSULTANT: June W. Catalano City Manager By: Title: Business License # APPROVED AS TO FORM: ATTEST: Janet E. Coleson City Attorney City Clerk Attachments: Exhibit A Blanket Endorsement Exhibit B - Additional Insured Endorsement CERTIFICATE OF EXEMPTION FROM WORKERS' COMPENSATION INSURANCE I hereby certify that in the performance of the work for which this Agreement is entered into, I shall not employ any person in any manner so as to become subject to the Workers' Compensation Laws of the State of California. Executed on this day of, 200, at Pleasant Hill, California. [Add Consultant's name and title] 19

20 Section E PROPOSAL SUBMITTAL SUMMARY The undersigned declares that she or he: Has carefully examined the Request for Proposal, which is hereby made a part of this proposal. Is thoroughly familiar with its contents. Is authorized to represent the proposing firm. Agrees to perform the work as set forth in this proposal. Certifies this proposal meets or exceeds all of the requirements Request for Proposal, except as otherwise indicated and supported by supplemental schedules or attachments included with this proposal. Certificate of insurance attached; insurance company s A.M. Best rating:. Firm Name and Address Contact Phone Corresponding Bank (if applicable): Local Branch Address Branch Manager Signature of Authorized Representative Phone Date The undersigned declares that they have carefully examined the Request for Proposal, which is hereby made a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing firm; and agrees to perform the specified work for the following cost quoted in full. 20

21 REFERENCES Number of years engaged in providing the services included within the scope of the specifications under the present business name:. Describe fully the banking services provided to five government agencies performed by your financial institution which demonstrate your ability to provide the services included with the scope of the specifications. Attach additional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference No. 1 Customer Name Contact Individual Telephone Address Street Address City, State, Zip Code Reference No. 2 Customer Name Contact Individual Telephone Address Street Address City, State, Zip Code Reference No. 3 Customer Name Contact Individual Telephone Address Street Address City, State, Zip Code Reference No. 4 Customer Name Contact Individual Telephone Address Street Address City, State, Zip Code Additionally, attach a listing of any clients where similar services were provided who terminated services in the last three years prior to the end of the service agreement. 21

22 REQUIRED SERVICES PRICING SCHEDULE Please complete all items on this attachment. (1) If your financial institution does not or cannot provide a specific requested service, please indicate no proposal and if appropriate recommend an alternate service and include as a specified attachment. (2) If the service is contracted to a thirdparty, please mark this clearly. In addition to submitting proposal responses, this form must also be completed: Please enter: TRANSACTION MONTHLY AVG SERVICE DESCRIPTION BALANCE & COMPENSATION INFORMATION Dep. Insurance-Bank Assessment 9,136 STANDARD FEE PER UNIT GENERAL ACCOUNT SERVICES Account Maintenance 2 ZBA-Depository + Master Maintenance 1 ZBA Subsidiary Account Maintenance 1 Debits Posted-Other 18 Credits Posted-Other 25 GCS Transaction History 0.08 Photocopies 0.08 DEPOSITORY SERVICES Banking Center Deposits 2 QBD/Night Drop Deposit 3 Currency/Coin Dep/$100-QBD/ND 3 Currency/Coin Dep/$100-Banking Center 51 Checks Deposits Un-Encoded Items 562 Returns-Chargebacks 0.75 Returns-Re-clear 0.5 Deposit Correction-Cash 0.16 Deposit Correction-Non-Cash 0.16 PAPER DISBURSEMENT SERVICES General Checks Paid Truncated 332 Positive Pay Exception 0.75 Supplies-Checks $21.00 Stop Pay Automated<=12 Months 0.41 Stop Pay Automated>=12 Months Image Retrieval CPO Image Maintenance CPO 1 CPO ARP Positive Pay Notifications 85 ARP PPAY Input File-Trans 6 22

23 REQUIRED SERVICES PRICING SCHEDULE (continued) TRANSACTION MONTHLY AVG SERVICE DESCRIPTION GENERAL ACH SERVICES ACH Monthly Maintenance 1 ACH Consumer On Us Credits 71 ACH Consumer Off Us Credits 266 ACH Debit Received Item 24 ACH Credit Received Item 25 ACH Return Item 0.08 ACH Input-File 2 ACH Optional Reports-Fax 4 ACH Standard Report-Fax 0.08 Please enter: STANDARD FEE PER UNIT WIRE & OTHER FUNDS TRANSFER SERVICES CPO GP Monthly Maintenance Basic 1 Elec Wire Out-Domestic 15 Incoming Domestic Wire 0.58 Book Credit 0.08 CPO GP Customer Maintenance Temp Storage 22 INFORMATION SERVICES CPO Prem PDR Account 2 CPO Prem CDR Account 1 CPO Prem PDR Item Stored 1216 CPO Prem CDR Item 517 CPO Online Subscription 1 CPO Prem IR Maintenance 1 23

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