REQUEST FOR PROPOSALS for BANKING AND MERCHANT SERVICES

Transcription

1 Small Town Atmosphere Outstanding Quality of Life REQUEST FOR PROPOSALS for BANKING AND MERCHANT SERVICES Deadline: February 17, 2015 at 4:00 p.m. OVERVIEW The Town of Danville (the Town ) is issuing this request for proposals (RFP) from financial institutions for Banking and Merchant Services. The goal of this process is to identify and enter into a long-term relationship with a banking service provider that delivers high-quality services at the most reasonable cost. About the Town of Danville The Town of Danville was incorporated in With a current population of 43,146, the Town encompasses 18 square miles in Contra Costa County, approximately 30 miles east of San Francisco. The Town is a limited service municipality, with utilities, fire and schools provided by special districts. The Town contracts with the Contra Costa County Sheriff s Office for police services. The Town s current annual operating budget is $30 million with a capital budget of $8 million. The Town maintains a healthy reserve of $11 million (largely held in investment funds). The Town is fiscally sound with a Moody s rating of Aaa. The Town employs approximately 90 full-time employees in addition to approximately 100 part time employees. The Town is suburban with an upscale small town atmosphere. Older, well maintained neighborhoods co-exist with newer subdivisions. The community enjoys natural creeks, hiking and biking trails, and dedicated open spaces. Danville s primary commercial district lies in the center of the community and offers boutique shopping, many resident service businesses and fine dining. Numerous holiday and special events attract visitors as well as residents to the historic downtown area throughout the year. Danville is a General Law Town and operates under the Council-Manager form of government. The Town is governed by a five member Town Council, which is elected at large and serves staggered four-year terms. Town Council elections are held in November of even numbered years. The Mayor is annually selected by the Town Council from among its membership, and serves a one-year term L A G O N D A W A Y, D A N V I L L E, C A L I F O R N I A Administration Building Engineering & Planning Transportation Maintenance Police Parks and Recreation (925) (925) (925) (925) (925) (925) (925)

2 Page 2 Current Banking Services The Town s primary commercial bank provider for over 30 years, First Republic Bank, will be exiting all public sector relationships by mid The Town views this as an opportunity to consolidate its banking and merchant service needs to one institution in order to maximize efficiencies. Timing and complete migration of all merchant services will depend upon existing contracts with current merchant service providers. As such, banking proposals must include services for the entire scope of the relationship outlined. This RFP does not cover services such as custody services, investments or bond trustee services. The Town s current banking activity consists of six checking accounts: 1. General Account (average ledger balance of $900,000) 2. Payroll Account (average ledger balance of $50,000) 3. Arts Fund (average ledge balance of $71,000) 4. Village Theatre Box Office Account (average ledger balance of $7,000) 5. Building & Planning Credit Card Account (average ledger balance of $34,000) 6. Building & Planning Internet Account (average ledger balance of $5,000) New Service Provider The Town intends to establish an initial five-year contract with renewals each year based upon satisfactory delivery of services. Should the bank continue meeting the Town s banking needs at competitive prices, the relationship should last well beyond five years. Pricing information included in proposals must represent all-inclusive pricing for all services required by the Town. MINIMUM QUALIFICATIONS To be considered for selection, proposing banks must have at least the following qualifications: 1. Be a Federal or State of California chartered financial institution. 2. Be a member of the Federal Reserve System and have access to all services. 3. Be a qualified State depository for public funds. 4. Be a full service bank in good standing among other comparable banks 5. Be capable of providing the services sought by the Town, to include a wide range of electronic payment, deposit and merchant services. 6. Have a physical location within reasonable distance of the Danville Town Offices. 7. Agree to assign experienced and dedicated staff committed and capable of servicing the Town s accounts. 8. Be in compliance and good standing with the Community Reinvestment Act. 9. Meet or exceed the Federal regulatory capital requirements of an Adequately Capitalized institution.

3 Page 3 TIMELINE The preliminary schedule is as follows: Target Dates December 24, 2014 January 22, 2015 February 5, 2015 February 17, 2015 at 4:00 p.m. March 4, 2015 March 12 or March 13, 2015 April 7, 2015 April 8 - May 31, 2015 June 1, 2015 Milestone Release RFP Pre-Bid Questions (if any) due from proposers Responses to proposers questions to be released Proposals due Proposal evaluations completed Interviews with finalists Town Council to award contract Implementation period Implementation completion PROPOSAL PROCEDURES A proposing bank must follow the instructions for preparing the proposal in the prescribed format. If a service requirement or section of the proposal is inconsistent with the bank s preferred response or the bank cannot meet the requirement, note such on the Bid Form and/or the relevant section of the proposal and describe the alternative solution/service offered by the bank. The Town reserves the right to reject any and all proposals and to waive any non-material irregularities or informalities. It is the responsibility of the proposer to identify information in their proposal responses that they consider to be confidential under the California Public Records Act. To the extent the Town agrees with the designation, such information will be held in confidence whenever possible. All other information will be considered public. This RFP and the bank s response, including all promises, warranties, commitments, and representations made in the successful proposal, will become binding contractual obligations and will be incorporated by reference into any agreement between the Town and the bank. Bank personnel signing the cover letter or any other related forms submitted must be authorized signers with the requisite authority to represent the bank and to enter into binding contracts with clients. Proposed services and related pricing and warranties contained in the proposal must be valid for a period of 120 days after the submission of the proposal.

4 Page 4 Pre-Bid Questions Any questions concerning this RFP must be submitted as part of the formal Pre-Bid Questions process. Questions must be sent via to: nrojanasathira@danville.ca.gov. All banks wishing to participate in the Pre-Bid Questions process are to provide an address by January 22, 2015 so the Town can respond to questions via to all proposing parties with the same information. Deadline and Delivery One signed original and five copies must be submitted with responses following the same order of the RFP as detailed in the Response Format section. This package must be sealed and marked Proposal for Banking Services and delivered to the Town of Danville no later than 4:00 p.m. Pacific Time on Tuesday, February 17, Late submissions, including fax or delivery, will not be accepted. The proposal is to be submitted to: Town of Danville 510 La Gonda Way Danville, CA Attention: Nat Rojanasathira, Assistant to the Town Manager An electronic version of the proposal must also be submitted to: nrojanasathira@danville.ca.gov. Inquiries The point of contact regarding this RFP is Nat Rojanasathira, Assistant to the Town Manager. Individuals or firms interested in submitting a proposal are asked not to contact other members of the Town of Danville staff, the mayor or councilmembers in connection with the RFP prior to the announcement of the successful bank. SELECTION CRITERIA The selection of the bank to provide banking and merchant services to the Town will be based on a comprehensive review of the bank s qualifications/responses as presented in their proposal, overall price and cost to the Town, experience and success of the bank in providing banking services to similar clients, the bank s ability to provide the services outlined in the RFP, and an evaluation of the bank s ability to be a good business partner with the Town. A screening committee will review the proposals.

5 Page 5 The proposals will be evaluated and ranked in accordance with the evaluation criteria described below. Bank financial strength and ability to protect and collateralize Town deposits. Overall cost to Town and ability to guarantee pricing for contract period. Revenue sharing and/or cost reduction opportunities offered by the bank. Ability to meet minimum required service levels and offer required bank products. Quality of references and overall experience with public agencies. Qualifications and strength of the relationship management team. Ability to offer product and service enhancements. Location of bank offices, including its proximity to Danville Town Offices. Other qualitative characteristics requested in the RFP and included in the bank s proposal, such as local investment within the Danville community. RESPONSE FORMAT To assist the Town to adequately compare and evaluate each bank s qualifications objectively, all proposals must be submitted in the prescribed format: Title Page/Cover: Include the name of the proposing bank, its principal business address where the relationship will be managed, contact person for this proposal and the branch address that can meet the daily banking needs of the Town. Table of Contents: Should be limited to one page and follow the RFP format Transmittal Letter: The letter should address the bank s willingness and commitment, if selected, to provide the service and why the bank believes it should be selected. The letter should contain a statement that the bank has read and will comply with all the terms and conditions of the RFP. Section A - Bank and Personnel Profile: Please respond to the following: 1. Bank Overview Provide a general overview of the bank s operations, fundamental management and customer service philosophy, and financial strength. Identify the primary office or branch that the Town will be assigned to and where the Town will conduct its primary banking business. 2. Experience Describe the bank s direct experience in servicing public sector clients. Please include information such as the number of nationwide and California public agency clients, the dollar amount of public funds on deposit for each of these categories, and the bank s knowledge of and adherence to the California Government Code and other applicable laws.

6 Page 6 3. Relationship Management Identify the size and scope of your California-based public banking unit, bank officers responsible for the Town s accounts, what each person s role and responsibilities will be, and the relevant credentials and experience of each person on the relationship management team. 4. Customer Service Describe how the bank handles problem resolution, customer service, day-to-day contact, and ongoing maintenance for governmental entities. Specify whom the Town will be calling for day-to-day banking and treasury management issues. Explain the process for elevating an issue to a higher level to obtain a quick resolution when the day-to-day contact is not responsive. 5. Compliance and Exceptions Include a statement to confirm the bank s compliance to the specific minimum qualifications, listing any exceptions to required services. Section B - References: Please provide three (3) references. References should include other California cities of similar size and scope of service utilization as the Town. Select both long-standing and recent customers. Include the following information for each reference: Contact name and title Name of agency Telephone number and address Number of years as a customer Services provided Section C Demand Deposit Accounts: The Town currently uses six (6) demand deposit account (DDA) or checking accounts. Please respond to the following questions in this section: 1. How many days after month-end will the Town receive its bank statements? 2. Are bank statements available online and if so, when? 3. Does the bank offer Zero Balance Accounts (ZBA s)? If so, please describe the service. 4. Does the bank offer analyzed interest bearing demand accounts? If so, please describe the service. 5. What type of demand accounts are available for the Town s use? Section D Collateralization of Deposits: The bank is required to collateralize public funds deposits under the California Government Code, Sections and Copies of the reports filed with the State of California shall be made available to the Town upon request. Please detail the bank s procedures for collateralizing public funds deposits.

7 Page 7 1. What types of securities are used as collateral? Can the Town select the type of collateral used? 2. Which bank department is responsible for tracking deposits and monitoring collateral? 3. What is the bank s current level ($ amount) of California public funds deposits and the related collateral? 4. What is the frequency of reporting to the State Treasurer s Office? 5. Please include a copy of the Bank s Contract for Deposit of Moneys in this section. Section E Bank Compensation: Historically, the Town has primarily paid the bank for services with compensating balances. Please indicate the following in this section: 1. Can the Town compensate the bank for services with earnings from its balances? What procedure or payment method is used if a deficiency occurs? 2. Can the Town choose between paying for any analysis deficiencies by check, auto debit, or ACH credit? 3. What is the bank s Earnings Credit Rate (ECR) based on, and how is it calculated each month? 4. List the bank s actual ECR for each of the past 12 months. 5. Using the ECR for the month of November 2014, please calculate the level of compensating balances (after float and reserves) needed to offset one dollar of bank services. ($1 in services = $ in compensating balances.) 6. Please explain, in detail, how and when the FDIC assessment is computed and charged. 7. What is the bank s settlement period for account analysis and billing purposes - monthly, quarterly, semiannually, or annually? How long can any excess balances be carried forward to apply to charges in future billing periods? 8. Please detail which types of items and services can be applied against account analysis in addition to standard bank services, such as merchant bankcard processing, messenger service, supplies, etc. Is there a mark-up for any of the items? If so, how much? 9. How does the bank charge for overdrafts? Does the bank charge for the use of uncollected funds? If so, how is the charge calculated? 10. Please state the negative collected balance charge that the Town will pay and, in detail, explain how this charge is computed. Is the rate quoted in this proposal good for the term of the contract? 11. Are Account Analysis reports available online? If so, is there a cost? 12. What procedure is used to make any adjustments to Account Analysis statements and how long does it take for adjustments to take effect?

8 Page 8 Section F Deposit Activity: The Town currently brings cash and checks to the local branch for deposit. Average monthly volumes are listed under Overview: Current Banking Services (p. 2). Deposited items should be automatically re-cleared once. The Town requires the ability to use the local branch to make branch deposits, to get change and for other miscellaneous activities. Which bank department is responsible for tracking deposits and monitoring collateral? 1. Please identify your full-service branch locations within the Town of Danville. 2. Please describe the bank s deposit requirements. How should the coin and currency deposits be prepared? How should encoded check deposits be prepared? 3. How would the Town order deposit supplies? How is payment made for such supplies? Would the Town s bank account be auto-debited? 4. Please describe in detail the bank's procedures for handling deposit adjustments. What documentation on discrepancies does the bank provide? 5. Is the deposit adjustment 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 Town? 6. Please describe the bank s returned item handling and notification procedures. Is an automatic re-clear option available? How long does it take for returned items to be sent to the Town? 7. What are the cut-off times for deposits at the bank s local branch and at the bank s Processing Center to ensure same day credit? Where is the Processing Center/Cash Vault located? Will the Town deal directly with the Cash Vault on deposit adjustments or with a local representative? 8. Does the bank support remote deposit processing (Check 21)? The Town is considering this form of processing for its deposits in the future. Section G Wire Transfers: The Town currently transacts wire transfers on-line, initiating an average of four (4) wires and eight (8) book transfers per month, and receiving an average of five (5) incoming wires per month as well. 1. Please describe the bank s online wire transfer service capabilities and process. 2. What is the deadline for initiating wire transfers? 3. What safeguards and security measures does the bank have in place to protect the Town? Section H Credit/Purchase Card Services: The Town currently uses the State of California s California Purchase Card (CAL-Card) program through U.S. Bank for small credit card purchase transactions. The Town issues credit cards to 26 employees. Average monthly purchases Town-wide total $25,000. The monthly credit limit per credit card is $2,000 for most cards. Please provide information on your bank s purchase/credit card program, if available.

9 Page 9 Section I Automated Clearing House (ACH) Direct Deposit for Payroll: The Town utilizes direct deposit services for bi-weekly payroll for the Town. Depending upon the time of year, approximately of the Town s employees take advantage of the direct deposit service. Please address the following: 1. Describe the bank s direct deposit services in detail, including the software requirements and transmission options available. 2. Discuss screening measures that the bank uses to minimize errors on files sent to the bank. Describe the processes and timing available for file/error correction. 3. Indicate the transmission deadlines for direct deposit ACH files, including date and time when the bank needs the file from the Town and when funds are debited from the Town s account. 4. Discuss any employee benefit programs that you would make available for Town employees and indicate if the bank would be able to participate in Town-hosted employee benefits presentations. 5. Is there direct support for file testing? Section J ACH Vendor Payments: The Town does not currently process vendor payments through ACH but may be interested in doing so. Describe the program used by the bank to facilitate these vendor payments. Section K Payroll Tax Processing: Please describe the bank s payroll tax withholding services and its related costs, if a service is available. Currently, the Town works directly with federal and state agencies to have funds taken out/debited directly from the Town s account. Section L - State Activity/LAIF Transfers: The Town transacts State of California Local Agency Investment Fund (LAIF) transfers on a regular basis and receives State electronic payments. All transactions are initiated by the Town. 1. What is the charge per transfer to LAIF? From LAIF? Would there be any limits on the number of transfers per month? 2. Does the bank have an office in Sacramento that maintains a direct DDA banking relationship with the State Treasurer s office and the State Controller s office? 3. Is the bank an approved State of California depository? 4. What is the charge for the deposit of State electronic payments? Section M Account Reconcilement: The Town issues approximately 350 Accounts Payable checks monthly, utilizing Full Account Reconcilement with Positive Pay services for its disbursement accounts. In addition, the Town processes approximately 100 Payroll checks (via direct deposit) on a bi-monthly basis.

10 Page 10 Section N Internet Banking Processes and Information Reporting: The Town currently utilizes a web-based internet banking system to perform a variety of processes, such as placing stop payments and accessing online balance reporting information (prior day) for all accounts. 1. Please describe the bank s online banking and information reporting system(s), including a list of all services provided. 2. What are the current computer hardware and software specifications for most effectively utilizing the bank s online system? 3. At what time (Pacific Standard Time) is prior day information available? 4. Is there a per item fee for prior day reporting? If so, how is the fee calculated? 5. Can the reports be customized? Exported to Excel? 6. What types of security measures are in place? How is the assignment of user IDs and passwords managed? 7. What is the bank s contingency plan for providing this information in the event of unexpected bank system problems or natural disasters? 8. Does the bank offer electronic delivery of statements, reports and notices? Section O Merchant Services: The Town currently accepts Visa and MasterCard credit card payments approximating $35,000 in collections per month, with transactions averaging at approximately 120 per month. The Town currently has two (2) merchant locations or IDs accepting payments for Town services such as various permits and development fees, parks and recreation classes, room/facility rentals, and other miscellaneous payments. Payments are accepted over-the-counter, by mail, and by telephone. The Town prefers a single point of contact for technical issues, configuration changes, upgrades, maintenance and troubleshooting for any merchant bankcard issues. 1. Please describe the bank s Merchant Bankcard and Point-of-Sale processing capabilities. 2. Please describe your reporting methodology and how adjustments and charge backs are handled. How is the Town notified of charge backs? Is online response and status tracking available? Are charge backs and other debit adjustments netted from daily proceeds or debited from daily proceeds or debited separately? Is the discount fee refunded when a charge back or refund occurs? What is the rebuttal process? 3. When and how will the Town 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 in one lump sum? Will the bank break out settlement amounts by merchant location? 4. What is the settlement cutoff time for card transactions? 5. Does the bank supply the Town with the terminals? 6. Is the bankcard relationship managed by a separate unit of the bank, or by the Account Relationship Manager? Please briefly describe the structure of this area. 7. When and how are the discount rate and other fees charged to the Town? Can this fee be paid through analysis? Is tiered pricing available?

11 Page Is reporting information available online? What is the fee associated with this service? Is a corporate level view available to see all merchant accounts? 9. What network will be used for front end and back end operations? 10. Please explain your rate increase policies. Can the rates be fixed for any period of time during the Town s contract? 11. What PCI Compliance services are provided? 12. The following pertains to the associated discount rate and other applicable charges. Please provide the following information: a. Visa, MasterCard and American Express Authorization Fees b. Monthly Service Fee c. Monthly Statement Fee d. Please list all other monthly or other fees that the Town would be charged. Section P Town Disaster Preparedness Program: Please describe any processes in place to assist the Town in the event of a natural disaster. Section Q Implementation Plan: As part of any conversion, the Town requires an efficient transition to the new bank. 1. Please describe the overall plan the bank would coordinate to ensure such a conversion. 2. Please detail all costs and the responsible party (bank or Town) associated with the conversion of all new services. 3. What size of conversion allowance will the bank provide to the Town? Please state a specific dollar amount or identify those supplies, products or services included. 4. Will the bank provide on-site training for Town personnel for all of the services selected? How is the training typically structured? Section R Service Enhancements: Based on the information provided in the RFP and your bank s knowledge of the public sector, please describe any services or technological enhancements, not previously mentioned, that should be considered for further improving the effectiveness of the Town s treasury management operations. Section S Banking Services: 1. Complete the Bid Form with pricing information (at the end of this proposal document). If modifications to the Bid Form are necessary, please confirm any changes in format with the Town prior to submission to ensure consistency and ease of review/evaluation. The Town s estimated monthly volume for its current services is provided here as well. 2. Is the bank willing to guarantee the proposed fees for the entire term of the contract of five (5) years? If not, for how long? 3. Is the bank willing to offer any transition or retention incentives?

12 Page 12 Section T Standard Bank Fee Schedule for Government Clients: Please include a schedule of standard bank fees for public sector clients. Section U Sample Account Analysis Statement and Users Guide: Attach an example of the bank s statement and related information. Section V Relevant Cash Management/Banking Services Agreement: Attach the bank s agreement for services. Section W Financial Statements and Ratings: Provide the most recent audited financial statements or annual report for the bank (a reference to electronic availability will suffice). Also include the bank s most current Standard & Poor s, Moody s and/or Fitch credit ratings, where available.

13 Page 13 Banking Services Bid Form (Associated with Section S): If the bank does not provide a requested service, or is suggesting an alternative approach, indicate such and include as an attachment. Where fees vary from the format presented below, indicate such and provide an estimate of the total annual cost. Current estimated monthly volumes should be taken from the Estimated Monthly Unit Volume listed in the table below. Where the Town s estimated monthly unit volume is zero, please still list per unit cost. This form is being used strictly compare costs based on current average monthly volume. If the form fails to include relevant cost items, please note such in your response and indicate the related cost information. Please include a schedule of other bank fees for government clients in Section T. Item General Account Services Account Maintenance Statement Per Account Per Unit Cost Estimated Monthly Unit Volume 6 accounts 6 accounts Total Monthly Cost Estimated Total Annual Cost Depository Services Branch Deposits 12 Currency/Coin Deposits Returns-Chargeback Large Item Returned Deposit Correction-Cash Deposit Correction-Non Cash Paper Disbursement Services General Checks Paid 450 NSF Items Paid/Returned Online Paid Item Inquiry Stop Pay Automated-12 months Paper Disb. Recon. Services Full Recon w/ Pos Pay Maint Auto Full Pos Pay Input Per Item Transm Check Issue Input-File Rejects Check Issue Input Manual Recon Transmission

14 Page 14 Item General ACH Services Per Unit Cost Estimated Monthly Unit Volume Total Monthly Cost Estimated Total Annual Cost ACH Monthly Maintenance Payroll Tax Payment Consumer Debit On Us ACH Blocks Auth Instructions ACH Blocks Auth Maintenance ACH Debit Received Item ACH Credit Received Item ACH Return Item ACH Input-Transmission ACH Delete/Reversal ACH Notif of Change (NOC) ACH Reports-Electronic ACH Reports-Mail Wire & Other Funds Transfer Electronic Wire Out Incoming Domestic Wire Customer Maintenance Template Storage Online Wire Maintenance Fee Internet Banking Fee Online Information Services Previous Day Account Fee Previous Day Standard Item Previous Day Maintenance Service Enhancements/Other Remote Deposit Services Check stock Merchant Services Credit Card Transactions Dollars Processed

15 Page 15 Item Credit/Purchase Card Services Per Unit Cost Estimated Monthly Unit Volume Total Monthly Cost Estimated Total Annual Cost Monthly fee Late payment fee (%) Minimum late fee Overage fee Other Information Earnings Credit Rate for most current month Uncollected Funds Rate (%) Overdraft Rate (%) Fixed Pricing Guarantee (# of Years)