REQUEST FOR PROPOSAL FOR BANKING SERVICES
Public Utility District No. 1 of Asotin County
Issue Date: August 1, 2016
Due Date: 3:00 pm, August 31, 2016
TABLE OF CONTENTS
Proposal Calendar. ................................................................................................................................1 Introduction. ........................................................................................................................................... 2 Background ............................................................................................................................................ 2 Services Required ................................................................................................................................. 2 Checking Accounts ................................................................................................................... 2 On-Line Banking Services ........................................................................................................ 3 Electronic Funds Transfers ....................................................................................................... 3 Direct Deposit for Payroll .......................................................................................................... 3 Merchant Services .................................................................................................................... 4 Safekeeping............................................................................................................................... 4 Disaster Recovery Capabilities. ........................................................................................... 4 Banking Supplies & Other Services ......................................................................................... 4 Interim Financing....................................................................................................................... 4 Miscellaneous Services ............................................................................................................ 4 Services Not Provided .............................................................................................................. 4 Compensation ........................................................................................................................................ 5 Responsibilities and Requirements....................................................................................................... 5 Legal Responsibilities ............................................................................................................... 5 Clarkston Branch Institution ...................................................................................................... 5 Waiver of Informalities .............................................................................................................. 5 Right of Cancellation. ................................................................................................................ 5 Proposal Procedures ............................................................................................................................. 6 Responses to RFP Questions. .............................................................................................................. 6 Contact Office ........................................................................................................................................ 6 Effective Date and Term of Contract. ................................................................................................... 7 Final Selection........................................................................................................................................ 7 Awarding of Contract ............................................................................................................................. 7
REQUEST FOR PROPOSAL FOR BANKING SERVICES
Public Utility District No. 1 of Asotin County (Asotin PUD) is soliciting proposals for a primary banking relationship with a qualified banking institution operating a branch within the service territory of the District. The proposed schedule is as follows: SCHEDULE
August 1, 2016
Requests for Proposal (RFP) advertised and made available.
August 31, 2016
Sealed proposals with three copies must be received by the Director of Finance and Administration of Public Utility No. 1 of Asotin County, Washington, no later than 3:00 p.m. Proposals must be submitted to: Asotin PUD Bob Sischo, Director of Finance and Administration 1500 Scenic Way P.O. Box 605 Clarkston, WA 99403 bsischoAsotnpud.org Proposals must be signed by an official of the banking Institution authorized to bind the banking institution. The proposal must be valid for a period of not less than 90 calendar days from date of receipt.
September 7-9, 2016
Asotin PUD intends to conduct on-site interview(s) and/or presentation(s) of perspective banking institutions.
September 12, 2016
Asotin PUD shall complete its evaluation of all proposals. Asotin PUD may request clarification of any item during its evaluation process. Any questions and the answers deemed generally applicable will be made available to all participating banking institutions.
September 27, 2016
Commission approval and contract award.
November 1, 2016
Effective date of new contract.
INTRODUCTION Asotin PUD is requesting/accepting proposals for a primary banking relationship with a banking institution that operates an office within the service territory of the District. Asotin PUD will be contracting for an initial four-year period beginning November 1, 2016 and ending October 31, 2020. At Asotin PUD's option, two extensions, up to four years each, will be permitted with the same terms and conditions as the original contract or as it is amended. Asotin PUD will be contracting for the following banking services: Checking accounts On-line banking services Electronic funds transfer Payroll direct deposit Merchant Services
Autopayment of utility accounts Investment safekeeping services Banking supplies & other services Miscellaneous other services
The issuance, coordination, and decisions concerning this RFP are the responsibility of the Asotin PUD's Director of Finance and Administration, who will represent Asotin PUD in any resulting contractual relationship. This RFP should provide prospective banking institutions with the information necessary to assess the ability of their organization to meet the needs of Asotin PUD in providing the specified services. BACKGROUND Asotin PUD currently utilizes a checking account, sweep account, and money market account with one local banking institution including one zero balance account. Asotin PUD's Revenue account receives all revenues, maturing investments and performs as the general operating account. One zero balance account is used to clear checks. SERVICES REQUIRED Checking Accounts - Asotin PUD utilizes a checking account for operations, deposits, and a separate account for Revenue collection. Claims, refunds and payroll are included in the Operations account. The banking institution will furnish Asotin PUD with additional checking accounts as needed. Disbursements are made by warrant, ACH or wire. Approximately 150 checks are issued each month. At a minimum, the following basic checking account services should be available to Asotin PUD for each of its accounts on an "as needed" basis: • •
• • • • •
Provide month-end statements electronically by the 5th day of the following month; Provide statements and/or confirmations of account balances to various auditors upon request; Online electronic check image retrieval; Provide anti-fraud positive pay; Provide individual and consolidated monthly account analysis for all accounts within 15 days after the close of the month's activity; the monthly account analysis will also provide cumulative calendar year-to-date activity; Provide overdraft protection for Asotin PUD; Process NSF checks twice before returning them to Asotin PUD;
• • • •
Provide Asotin PUD with change and currency to perform daily customer service functions; Provide electronic check capabilities to interface with electronic check scanner; Provide Check 21 technology including remote deposit capture; and Provide general support in answering questions, troubleshooting problems and resolving issues in a prompt manner.
On-Line Banking Services - In addition to the services set out below, banking institutions are also encouraged to provide information on internet based or other electronic services that Asotin PUD has not specifically identified that could potentially enhance the efficiency and effectiveness of Asotin PUD's current processes. Where applicable, banking institutions should also provide detailed information, including cost estimates, for implementation of such services including the cost of software, hardware, or non-standard file format requirements or any other costs associated with online banking services. Asotin PUD desires the following on- line banking services: • • • • • • • • •
Ability to view and download transaction detail for selected Asotin PUD accounts for prior day and intraday activity including the collected, available and closing balances for each account; Ability to transfer/upload positive or reverse positive pay files; Ability to transfer/upload files for Asotin PUD's twice-monthly direct deposit; Ability to view and print cancelled checks and/or other images of debit/credit documents; Ability to upload, view and print account reconciliation information; Ability to retrieve and download or print current or prior period monthly statements; Ability to initiate on-line banking transactions including ACH, wire, stop payment and inter-account transfers and to establish security for such transactions including the appropriate approval requirements and user restrictions; Ability to initiate wire transfers with same day receipt to recipient; and An automated wiring process to be used for Federal tax deposits related to Asotin PUD's twice-monthly payroll. This is mandatory for compliance with Federal tax deposit regulations.
Electronic Funds Transfer - The banking institution shall have access to the wire transfer services of the Federal Reserve wire system, participate in the National Automated Clearing House Association and conform to Uniform Commercial Code Article 4A (UCC4A) rules. Direct Deposit for Payroll - Asotin PUD offers direct deposit for employee payroll and reimbursements. There are approximately 40 direct deposit transactions per month. Asotin PUD pays its employees twice-monthly with 24 payrolls annually.
Asotin PUD currently transmits its direct deposits via a secure internet site provided by its current banking institution by 3:00 p.m. the day prior to payday. Any banking institutions that cannot process the direct deposits within this one-day time frame should specify the time requirement restrictions in their response. Merchant Services - The banking institution may provide Asotin PUD with the ability to accept payment through the use of the District's 3rd party credit card and ACH payment vendor. Safekeeping - The selected banking institution may be Asotin PUD's custodial agent in charge of providing safekeeping facilities and services for all securities that Asotin PUD purchases. Asotin PUD reserves the right to contract for these services through the Statewide Contract for Security Services as negotiated by the Washington State Treasurer's Office. If chosen to provide custody services, the banking institution will comply with all State and Federal regulations regarding safekeeping of Asotin PUD securities. The banking institution will provide a complete inventory listing of the securities being held in safekeeping for Asotin PUD each month and additional reports upon request. Disaster Recovery Capabilities - The banking institution will provide a disaster recovery plan that is acceptable to Asotin PUD. Banking Supplies & Other Services - Asotin PUD may request the banking institution to provide certain banking supplies and other services on an as needed basis for select accounts. Institutions responding to the RFP should provide cost estimates for supply items such as reusable deposit bags and two-part deposit slips. The cost of such items may be charged to Asotin PUD's account through analysis. Interim Financing - Asotin PUD may require short-term financing most commonly in the f o r m of a line or letter of credit. The successful banking institution agrees to respond to all legally acceptable interim financing requests by Asotin PUD on a prompt and competitive basis. Miscellaneous Services - If there are other services provided by your institution that would be beneficial to Asotin PUD, please itemize them in your proposal. Services Not Provided - In the event that a banking institution does not provide all requested services included in this RFP, the banking institution will submit as part of its proposal additional partners/providers who will provide these services. It is the sole responsibility of the banking institution to secure and maintain the contractual relationship with all such additional partners/providers.
COMPENSATION
Asotin PUD's preferred method of compensation for banking services is to include all charges in a monthly analysis fee. Earnings credit on compensating deposits should be netted with cumulative charges in arriving at Asotin PUD's net position at month-end. Institutions should provide proposed rates for compensating deposits or interest bearing accounts. RESPONSIBILITIES AND REQUIREMENTS
Each proposal must be accompanied by the banking institution's latest financial report and references listing customers with similar systems or volume requirements. This will assist Asotin PUD in determining the banking institution's capacity to fulfill the terms and conditions set forth in these specifications. The successful banking institutions will continue to furnish Asotin PUD with the latest annual financial report for the duration of the contract. In the event of a bank merger, contract pricing must be honored throughout the contract term. If a particular service will no longer be available, Asotin PUD must be notified in writing of the change to service levels. Legal Responsibilities - The banking institution is required to comply with all depository laws and regulations as set forth in all applicable State and Federal laws and statutes. The banking institution must be insured by the Federal Deposit Insurance Corporation (FDIC). The banking institution must provide evidence of designation as a qualified public depository by the Washington State Public Deposit Protection Commission. Qualified designation must remain in effect for the duration of the banking services contract. Clarkston Branch Institution - As mentioned previously, the parties responding will be limited to those full-service banking institutions maintaining branch offices within the Asotin PUD service territory. Waiver of Informalities - Asotin PUD reserves the right to waive any informalities in this RFP and any attachments, providing the change is compatible with the cash management program and banking procedures of Asotin PUD as well as reserving the right to accept or reject any or all proposals or any part of any proposal at any stage of the proceedings. Right of Cancellation - Asotin PUD reserves the right to cancel any contract a w a r d e d pursuant hereto, at any time for inadequate or poor performance, subject to notice being filed with the banking institution by Asotin PUD at least 90 days in advance of the cancellation date. The banking institution is granted the right of cancellation of the banking services contract, at any time if Asotin PUD has not paid its obligations more than 90 days past due, subject to notice being filed with Asotin PUD by the banking institution at least 180 days in advance of the cancellation date.
PROPOSAL PROCEDURES
Proposals will be accepted and evaluated in accordance with the guidelines below. Institutions wishing to respond must complete the attached Banking Services Proposal (Attachment A). Any exceptions to the specifications must be clearly noted and indicated on the Banking Services Proposal. The Banking Services Proposal will be the primary basis for selecting finalists. Interviews and/or visits to the banking institution may be conducted and included in the process to select finalists as well. The contract will be awarded to the institution offering the most favorable combination of costs and service. A banking institution may submit equivalent alternative proposals for any and all of the service requirements. Banking institution acknowledges that Asotin PUD is subject to the public records disclosure provisions of RCW 42.56 and that all proposals and related information submitted to Asotin PUD under or as a consequence of it (collectively for this section called the "Materials"), shall be public records as defined in RCW 42.56. Any specific part of the Materials that is claimed by the banking institution to be Confidential Information or proprietary information must be clearly identified as such by the banking institution on each page and/or individual piece as opposed to marking only the first page or a cover page. Costs not included on the Banking Services Proposal, which the banking institution proposes to charge, must also be individually itemized on a separate page attached to the Banking Services Proposal. Banking Services Proposals must be executed by an official of the banking institution in a position to commit the institution to provide the services in accordance with these terms and conditions. The completed Banking Services Proposal will form the basis of the formal contract which will be executed between the banking institution and Asotin PUD. Sealed proposals must be received by the Director of Finance & Administration no later than 3:00 p.m., August 31, 2016, and will be evaluated on the following criteria: 1. 2. 3. 4. 5.
Legal and other qualifications met by the banking institutions; Responsiveness to the specifications; Financial strength and capacity of the banking institution; Ability to meet required services within this RFP; and Total cost to Asotin PUD.
Any proposal received after the specified date and time will not be considered. It is the sole responsibility of the banking institution to ensure proper delivery of the proposal. Alterations to the proposal documents will not be allowed after the deadline for submission of the proposals. RESPONSES TO RFP QUESTIONS
If you have questions regarding this RFP, please contact Bob Sischo, Director of Finance & Administration, at 509-758-1010 or
[email protected] CONTACT OFFICE
The Director of Finance & Administration shall be the only contact for any or all aspects of this RFP.
EFFECTIVE DATE AND TERM OF CONTRACT
The contract will be effective November 1, 2016 and run for a period of four years. Upon mutual consent between Asotin PUD and the banking institution, the agreement may be extended two times for four years each extension. FINAL SELECTION
Asotin PUD reserves the right at its sole discretion to reject any or all proposals for any reason whatsoever prior to the execution of contract. The issuance of this RFP does not compel Asotin PUD to purchase services. The final selection, if any, will be that proposal which in the opinion of Asotin PUD best meets the requirements set forth in this RFP, and is in the best interest of Asotin PUD. A single response to this RFP may be deemed a failure of competition and, at the sole option of Asotin PUD, the RFP may be canceled. Likewise, receipt of only one response may allow Asotin PUD to claim it as a valid acquisition of services. AWARDING OF CONTRACT
Asotin PUD's Banking Services Contract is expected to be awarded at the Board meeting to be held on Tuesday, September 27, 2016, at 5:30 p.m. in Asotin PUD's Conference Room, 1500 Scenic Way, Clarkston, WA 99403.
Attachment A - Banking Services Proposal Mr. Bob Sischo Director of Finance & Administration P0 Box 605 Clarkston, WA 99403 Dear Mr. Sischo: We have read Asotin PUD’s Request for Proposal for Banking Services and fully understand its intent. We certify that we have adequate personnel, equipment, and facilities to fulfill the requirements. We maintain branch operations within the Asotin PUD service territory, Washington, and are submitting the following Banking Services Proposal (BSP) for Asotin PUD's banking services for the period November 1, 2016 through October 31, 2020. The unit quantities noted below are approximations for comparing proposals, and no claim shall be made against Asotin PUD for excess or deficiency therein. All extensions of the Unit Price, where shown, will be subject to verification by Asotin PUD. In case of inconsistency between the Unit Price and the Monthly Cost, the Unit Price shall prevail. In case of error in addition, the correct total shall prevail.
Type of Service
Estimated Monthly Volume
Unit Price
Monthly Cost
DEPOSITORY SERVICES
Re-Deposited Returned Item
5
$ $ $ $ $ $ $ $ $
Statement with Advices
1
$
Account Maintenance Deposits Processed
1 25
Electronic Credits
250
Checks Paid/Debits
150
Electronic Debits Checks Deposited/Local and Non-Local
25 4000
Checks Deposited/Foreign
0
Deposited Items Returned
15
$ $ $ $ $ $ $ $ $ $
Type of Service
Estimated Monthly Volume
Unit Price
Monthly Cost
ACCOUNT RECONCILIATION SERVICES Partial/Positive Pay Maintenance
1
Partial/Positive Pay Per Item
363
Positive Pay Exception Items
4
$ $ $
$ $ $
$ $ $ $ $
$ $ $ $ $ $ $ $ $
WIRE TRANSFERS Wire Monthly Pin Maintenance
0
Incoming Fed Wires
0
Domestic Repeat Wires via Internet
0
Domestic Non-Repeat Wires via Internet
0
Wire Transfers - International
0
INTERNET BANK REPORTING
Stop Placed Per Item
1
Online Statement Delivery
1
$ $ $ $
1
$
$
1
$ $ $ $
$ $ $ $
$ $ $ $ $ $
$ $ $ $ $ $
Online Access Base Fee Detailed Daily Transactions
1-6 Accounts
