Exhibit A to RFP-SG STATEMENT OF WORK (SOW) Banking Services

Transcription

1 Exhibit A to RFP-SG STATEMENT OF WORK (SOW) Banking Services 1.0 Introduction 1.1 Purpose Colorado Springs Utilities (Utilities) is requesting proposals from interested banks for the provision of bank payment and depository services. The scope of services includes, but is not limited to the following services: depository services, lockbox services, vault services, monthly bank statement reporting, including foreign vendor reporting monthly account analysis reporting, returned item processing, transaction research, automatic deposit and payment system, controlled disbursement services, Automated Clearing House (ACH) processing, wire processing, account reconciliation services, same day availability of funds, online banking services, positive pay services, stop payment services, record retention, image processing services, interest calculation, local bank branches, and other banking services, as needed 1.2 Contract Term This contract shall be for five (5) years, with five (5) one-year extensions allowed at the option of Utilities. 2.0 Background Utilities is a four-service (electric, gas, water, wastewater) regional utility provider with approximately $850 million in annual operating revenue. Utilities banking relationships are integral parts of Utilities cash and investment management programs. It is anticipated that this RFP will provide Utilities with the necessary tools to enable it to effectively respond to financial management challenges in the future. Please see Utilities most recent Annual Report at Utilities currently uses the following demand accounts: One (1) primary operating checking account Two (2) zero balance, sweep accounts Two (2) controlled disbursement accounts Exhibit A SOW Page 1 of 7 RFP-SG

2 Seven (7) savings accounts (interest-bearing) used primarily to segregate various restricted funds; there are very infrequent deposits up to $100 million dollars which may or may not be invested outside of the bank after deposit Two (2) checking accounts for sub-units One (1) savings accounts (interest-bearing) for a sub-unit It is possible that additional accounts could be added during the course of the banking services contract. Customer Revenue handles all collections; mail remittance, vendor lockbox, lobby payments, online credit cards, ATM/debit cards, and ACH. In addition, daily deposits are prepared and retrieved by an armored car service vendor. All return items are processed accordingly; to include checks, Auto Pay, ACH, credit card charge backs, and all vendor lockbox returns. Accounts Payable handles vendor invoice processing by check and sends electronic payment (non-wire) and positive pay files to the bank. A goal of Utilities is to continue to replace check processing with electronic forms of payment. Accounts Payable also processes employee reimbursements, travel reimbursements, vendor setup in various internal systems and IRS information reporting. Payroll processes Utilities payroll in-house. Employee payroll is bi-weekly. Payroll creates and sends ACH direct deposit and positive pay files to the bank. Payroll also prints payroll checks for employees not enrolled in direct deposit. Utilities does not currently have a payment card program for payroll. Treasury & Finance handles Utilities banking relations, monitors all bank debit and credit items daily, researches any discrepancies, and processes all outgoing wire requests. This area is also the central point for bank security administration for Utilities. Utilities Customer Care and Billing System (CC&B) is the central system recording movement of customer revenue and posts to the General Ledger Accounting System (Lawson). Utilities currently uses the following electronic interfaces with the systems: CC&B o Image Cash Letter (ICL) file upload o ACH/EFT file upload for customer payments o Lockbox file download Lawson using SFTP and GPG encryption o Accounts Payable CTX payments (twice per week) o Accounts Payable ACH payments (twice per week) o Accounts Payable Positive Pay file (twice per week) o Payroll ACH payments (every other week) o Payroll Positive Pay file (every other week) General Accounting is responsible for the reconciliation of bank statements and the reconciliation of CC&B with the bank. Utilities currently has approximately 31,000 customer accounts utilizing an ACH direct debit program. There are 133 locations that accept cash, check, credit card and debit card transactions for payments to Utilities. Self-service kiosk (51) payments are received through the bank lockbox; Western Union Convenience Pay (62) payments are deposited directly to the operating account from Western Union; drop boxes (19) are processed at Utilities Customer Service Center (UCSC) and deposited electronically to the operating account; lobby payments at UCSC are processed on-site and checks are deposited electronically while cash is sent via armored car for vault deposit. Pay by text message may be an option available to customers in the future. Exhibit A SOW Page 2 of 7 RFP-SG

3 Purchasing cards and merchant services is not within the scope of this RFP. 2.1 Investments Utilities operates an in-house investment portfolio averaging approximately $100 million. Utilities custodial and banking/brokerage safekeeping programs are not within the scope of this RFP. 3.0 Scope Utilities seeks a comprehensive solution for the general banking services described below. 3.1 Depository and Vault Services The bank shall provide depository services including Night drop Vault Branch deposits Branch services Check processing of both encoded and non-encoded items Coin and currency purchasing and counting Deposit/vault supplies The bank shall support deposit tickets with auxiliary MICR field for our location code and transaction information. 3.2 Monthly Bank Statement Reporting The bank shall provide a monthly bank statement with documentation supporting all entries on the statement. The statement shall list all activity for all accounts. The bank shall provide a separate statement for each account with a summary for all accounts. 3.3 Monthly Account Analysis Reporting The bank shall provide Utilities with an account analysis statement within ten (10) days after the end of the month. The analysis shall detail all activity levels and charges for all accounts covered by this contract. Any activity information that is not part of the bank s standard account analysis, e.g. balance reporting charges and ACH activity, shall be provided in a supplemental report format. The account analysis shall be presented in a hard copy report format as well as online. The monthly account analysis shall include a consolidated report summary that shows the total activity levels and charges for all Utilities bank accounts. The bank shall provide sufficient details (such as item counts, rates, etc.) for all activity charges and Utilities will make the sole determination of whether adequate information has been provided. 3.4 Returned Item Processing The bank shall have the ability to automatically redeposit returned items against the demand account where it was originally deposited The bank shall provide copies or images of all redeposited returned items daily. 3.5 Transaction Research The bank shall provide required research, as well as a list of the maximum response time Utilities should expect for responding to research items related to various types of transactions and other banking services. Exhibit A SOW Page 3 of 7 RFP-SG

4 3.6 Automatic Deposit and Payment System Utilities currently pays almost all of its employees through ACH direct deposit. The bank shall have the ability to report this information online on a daily basis The bank shall provide a phone number and a list of contacts for ACH and EDI inquiries and problem resolution The bank shall provide Utilities with the bank s settlement policy on ACH transactions (one-day, two-day, etc.) Utilities makes electronic payments through various formats that include ACH credits (including CTX transactions), ACH debits and EDI. The bank shall have the ability to receive payment information directly from Utilities through electronic file transmissions that may occur multiple times per day The bank shall agree to use secure communication channels (e.g., virtual private network) for all electronic transactions in this section of the SOW. The bank shall agree to ensure all online actions are made using a secure (e.g., secure socket layer (SSL)) connection and ensure any links from the established connection remain within the secure session (no links to unsecure online locations from within the online session). 3.7 Controlled Disbursement Services The bank shall report the amount of disbursements for Accounts Payable checks that will be charged to Utilities account daily. 3.8 ACH Processing The bank shall provide the ability to securely transfer funds via ACH. Utilities ACH file transfers include: Accounts Payable payments Daily Utilities customer payments Payroll direct deposits The bank shall provide a report that includes detailed addenda records related to ACH debits and credits The bank shall guarantee the settlement time for all ACH files, including direct deposit to employee accounts The bank shall provide edit capabilities such as dollar limit tests and duplicate file checks The bank shall provide ACH fraud controls including the ability to set and provide filters. 3.9 Wire Transfer Services The bank shall maintain wire transfer facilities to the Federal Reserve Bank with the ability to: Provide Internet capability to initiate outgoing transfers and receive data on incoming wire transfers in a secured environment Provide dual control of wire setup of one-time wires and creation of repetitive templates Provide a reliable backup in the event of computer system problems or other unexpected events Assure that, except in cases of wire service malfunction or receiving bank system failure, outgoing wires sent pursuant to timely and correct wire instructions are received by close of business at the wire destination. The bank must specify the Exhibit A SOW Page 4 of 7 RFP-SG

5 latest time of day when it can receive wiring instructions and assure that wires are received by the close of business at the wire destination Credit incoming wires to Utilities as of the date the bank receives credit Initiate wire transfers even in the event that such transfers might cause a daylight overdraft Support priority wire transfers requiring special handing and immediate release, for example, wires received by a certain time of day Support international wire transfers Account Reconciliation Services The bank shall create a daily file of checks redeemed to be imported to the Utilities financial system (Lawson). The file must include check number, issue date, redeem date, and redeem amount. The file must be retrievable via a secured process Availability of funds The bank shall provide same day availability of funds that are deposited by a specified cut off period The bank shall include on the proposal the latest time that deposits will be accepted at its operations center and branches for same day credit Online Banking Services The bank shall provide online banking services for reporting, transaction, processing, research and internal controls. Reports shall be available online and downloadable in PDF and Excel format The Utilities must be able to execute the following transactions online: Transfers between accounts Initiation of wire transfers Initiation of ACH payments Initiation of stop payment, cancel, and void orders Positive pay actions Maintenance of wire and ACH transfer templates The online banking web site shall include the following internal controls: Online check information and images Multi-level security administration State of the art authentication such as dynamic tokens Positive pay reports (including imaging of exception items) Training of Utilities system administrators for managing access ACH fraud filters The bank shall provide training for online services at implementation and ongoing for new users and to support new products, product enhancements, and upgrades The bank shall provide the ability for Utilities to receive banking information (such as controlled disbursement amounts) in an alternative format if online services are not available Positive Pay Services The bank shall provide the ability for Utilities to upload check issue files that include the check number, issue date, payee name and address, and check amount for validation before the check is redeemed. Exhibit A SOW Page 5 of 7 RFP-SG

6 The bank shall notify Utilities of exception items (or lack of) on a daily basis by 10:00 a.m. Mountain time each day Stop Payment Services The bank shall provide the ability for Utilities to stop, cancel or void checks by individual item number or range of items numbers The bank shall provide an alternative method for Utilities to stop, cancel or void checks in the event that online services are not available Record Retention The bank shall retain all records related to the performance of this contract for the period required by law. Utilities representatives and third parties authorized by Utilities shall have the right to examine these records during this period Image Processing Services The bank shall provide front and back check detail in electronic format for the retention period required by law Customer Service The bank shall provide a single point of contact for this contract The bank shall provide and maintain a current list of bank personnel who will be available to answer questions or provide information pertaining to all services or related transactions. The list will be provided to Utilities within 30 days of the contract award. The bank will revise the list and provide to Utilities whenever any change of personnel occurs The bank shall provide technical customer support for software and communications issues Disaster Preparedness/Security The bank shall have a detailed disaster recovery and Security plan that includes off-site recovery facilities and recovery procedures The bank shall provide a copy or overview of the disaster recovery and security plan on an annual basis The bank shall support Utilities disaster recovery needs that may include access to branch locations for emergency operations and supporting Utilities disaster exercises Implementation The bank shall formulate an implementation plan and provide that plan to Utilities within 30 days of the award of contract Other Services In response to this RFP, other services or innovative approaches which the bank believes would be of benefit to Utilities may be proposed together with any associated charges and quantified monthly benefits to Utilities. Utilities, at their option, may accept a proposal for basic banking services only or for basic banking services plus any or all of these other services offered by the bank. 4.0 Deliverables & Schedule Exhibit A SOW Page 6 of 7 RFP-SG

7 Provide services detailed in Section 3 above on an ongoing basis, or as needed. The anticipated go live date, after testing and implementation, is January 2, Acceptance Criteria Acceptance criteria will be detailed and tied to the deliverables contained above, and will be negotiated in detail upon award of the contract. 6.0 Security Requirements 6.1 The bank agrees that all bank personnel assigned to this Project shall adhere to all Utilities security policies and guidelines at all times and at all Utilities locations. 6.2 If the bank is a creditor or agency subject to the requirements of the Red Flags Rule, and the bank will receive or have access to Utilities customer information during the proposal period or during the proposed project, the bank shall provide a copy of the bank s required Identity Theft Prevention Program. The bank shall also provide a narrative describing how the bank s ITPP will be applied to protect Utilities customer information in Utilities possession or accessible to it during the course of the project. 7.0 Change Control 7.1 In Scope Changes. Utilities has expended great efforts in preparing this SOW and in attempting to describe as thoroughly the requirements therein; however, it is possible that some of the requirements might have been inadvertently omitted from the SOW. If any requirements have been overlooked that relate to, or are similar to, the requirements contained in the SOW, those requirements shall be included if those additional requirements do not impact time, schedules, resource allocation, or incur additional costs. 7.2 Out of Scope Changes. For all requests for services that are outside of the agreed upon scope and objectives contained in this SOW, the performance of such services shall require a mutually agreed upon Amendment to the SOW. Utilities shall not be liable for any out of scope work or services which are performed prior to the execution of the Amendment between parties. Exhibit A SOW Page 7 of 7 RFP-SG