111 Erie Street North, Leamington, ON, Canada N8H 2Z9 Telephone (519) 326-5761 • Fax (519) 326-2481
Corporation of the Municipality of Leamington
Request for Proposal Municipal Banking Services
June, 2015
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RFP Banking Services The Corporation of the Municipality of Leamington
June 2015
Request For Proposal Municipal Banking Services June, 2015 TABLE OF CONTENTS Section
Page
A
Information for Proponents 1. Purpose 2. Background 3. Contact Person
4
B
Terms and Conditions 1. General Terms and Conditions 2. Closing Date and Time 3. Key Dates 4. Alternative Proposals 5. Withdrawal Procedures 6. Expiry of Offer 7. Selection Criteria 8. Evaluation Process 9. Final Selection 10. Confidential Nature of Information
5
6
C
Proposal Content 1. Statement of Acceptance 2. Financial Institution Contact 3. Services 4. Service Charges and Fees 5. Transition 6. References 7. Contracts 8. Copies Required 9. Checklist
7
D
Service Requirements 1. Length of Agreement 2. Location of Branch 3. Liability 4. EDI Compatibility 5. Maintenance and Operation of Accounts 6. Depository Requirements 7. Disbursement Requirements 8. Treasury Requirements 9. Other Potential Services
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2
9 10
RFP Banking Services The Corporation of the Municipality of Leamington
June 2015
Request For Proposal Municipal Banking Services June, 2015 Schedule 1 2 3
Page
Statement of Acceptance Checklist Monthly Volumes
11 12 13
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RFP Banking Services The Corporation of the Municipality of Leamington
June 2015
Section A – Information for Proponents 1. Purpose The Corporation of the Municipality of Leamington (the Municipality), is requesting proposals for the supply of banking services commencing on or about October 9, 2015. 2. Background The Municipality, with a population just over 28,000, has an annual operating and capital budget in excess of $45,000,000. CIBC is the Municipality’s current banking service provider. Investments are handled by Local Authority Services (LAS) through The One Investment Program and are not a requirement of this proposal. Debit and credit card services are provided by Global Payments and are not a requirement of this proposal. The Municipality’s financial software is Vadim Software’s iCity. This RFP will cover the entire scope of basic banking services within the Municipality. Services include deposits, disbursements, electronic banking and more. Should any Proponent be awarded, they will be required to fulfill the full range of services listed. The Municipality is seeking the implementation of new technologies in banking to help reduce costs and increase efficiency. Proponents are responsible for ensuring complete proposals are submitted, outlining a comprehensive, high quality and efficient banking service. All services required are included in this RFP and Proponents are to provide by-service pricing. However, should any services be missed or if any further, non-essential, potential services are available, it is the Proponent’s responsibility to ensure their inclusion. Key purposes of this RFP for banking services include: a) An opportunity to review existing banking arrangements and services; b) An opportunity to improve the overall banking arrangement and services; c) To find efficiencies in the banking services by allowing applicants to recommend or propose alternatives to current procedures; d) To explore the option of new services that financial institutions may be able to provide; e) To have an efficient and effective banking service provided at the least net cost to the Municipality; and f) To offer improved services to our customers. 3. Contact Person Any questions or concerns arising out of this Request for Proposal (RFP) should be addressed to: Ms. Ramona Nordemann, CPA, CA Director of Finance and Business Services Phone: (519) 326-5761 x1201 Fax: (519) 326-2481
[email protected] For emails, please use the subject line “Additional Information Required: RFP – Banking Services.” If additional information is required, an addendum to the proposal call will be issued.
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RFP Banking Services The Corporation of the Municipality of Leamington
June 2015
Section B – Terms and Conditions 1. General Terms and Conditions This RFP is subject to the Municipality’s Procurement Policies and Procedures as outlined in the Municipality’s Purchasing Policy F17 as amended by #C-354-10. To be eligible, the Proponent must be a Chartered Canadian Bank or Credit Union and have a branch location in the Municipality of Leamington to provide the services outlined. The Municipality reserves the right to reject any and all proposals received in response to this request. The lowest price proposal will not necessarily be accepted. The Municipality is not responsible in any way for any costs related to the preparation of the response to this RFP. 2. Closing Time and Date Proposals must be received no later than 4:29 p.m. E.S.T. on July 3, 2015. Proposals should be returned in a sealed envelope marked: “RFP – Banking Services – July 3, 2015” at the following address: The Corporation of the Municipality of Leamington 111 Erie St. North Leamington, Ontario N8H 2Z9 Attention: Ramona Nordemann, Director of Finance and Business Services Any proposal received after this deadline will be rejected. 3. Key Dates The Municipality will conduct the RFP process according to the following dates. These dates are tentative and subject to change. Task
Target Date
Issue request for proposal
June 8, 2015
Receipt of Proponents questions
June 22, 2015
Response to Proponents questions
June 24, 2015
RFP closed
July 3, 2015
Evaluation of proposals
July 6 - 10, 2015
Proponent interviews (if required)
July 13 - 15, 2015
Selection of preferred Proponent
July 17, 2015
Council approval and award of contract
August 10, 2015
Transfer of account (if necessary)
October 9, 2015
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RFP Banking Services The Corporation of the Municipality of Leamington
June 2015
4. Alternative Proposals Submission of more than one proposal providing an alternative to the original Service Requirements are welcome. Alternatives will be accepted so long as Proponents follow the essential requirements of the proposal and submit the alternative in addition to the original proposal. 5. Withdrawal Procedures Proponents may request that their proposal be withdrawn, up until the closing date. The withdrawal of a proposal does not disqualify that applicant from submitting another proposal, so long as the new proposal is submitted before the closing date. 6. Expiry of Offer The terms, conditions and pricing of all proposals submitted shall remain firm as quoted for a period of ninety (90) days from the date of closing. 7. Selection Criteria Proposals will be evaluated on the basis of the following criteria (order is not indicative of weight or importance): • Extent to which the services provided address the requirements in this document; • Identification of new technologies that will improve efficiency and reduce costs; • Dependability, consistency and timeliness regarding the processing of transactions; • Proponent’s implementation strategy; • Proponent’s ability to provide electronic services compatible with Vadim iCity • Proponent’s record: o Customer satisfaction as evidenced by Proponent’s references; o Financial security and longevity; o Qualifications of personnel; and o Proponent may be requested to make an oral presentation; and • Availability and service quality for ongoing technical support. 8. Evaluation Process Evaluation of each submission will be performed by the Project Team comprised of members from the Municipality’s Finance and Business Services and Legal and Legislative Services. After evaluating all Proponents’ proposals, the Project Team will recommend a short-list of preferred Proponents. During this process, references may be contacted. 9. Final Selection After reviewing the proposals, the Project Team will make recommendations to the Management Committee regarding the preferred Proponent. A report will then be taken to Council for final approval. The Municipality reserves the right to reject any and/or all of the proposals. The lowest priced proposal will not necessarily be accepted. 10. Confidential Nature of Information All information obtained by Proponents in connection with this request for proposal must be treated as confidential. The Proponent shall not use said information for any purpose that is not associated with the RFP and subsequent agreement, if awarded.
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RFP Banking Services The Corporation of the Municipality of Leamington
June 2015
Section C – Proposal Content At a minimum the proposal must include the following requirements: 1. Statement of Acceptance Proponents shall provide, with their proposals, a Statement of Acceptance to the Municipality as to the terms, conditions, process etc. outlined in this RFP. The Statement of Acceptance is attached as Schedule 1. 2. Financial Institution Contact 2.1 Please provide the name and contact information for the person who can be contacted for clarification of your proposal, if required, during the evaluation process of the proposals. 2.2 Please provide the name and contact information for the person(s) who will handle the account should the contract be awarded. Include a chart showing the lines of communication between the Municipality, the local branch and banking headquarters. 3. Services Please provide a detailed outline as to how the Proponent will meet the Section D - Service Requirements. 4. Service Charges and Fees All charges for any proposed undertaking of service must be clearly identified. Where no service charge or fee is quoted, it will be deemed that it is recovered elsewhere in the proposal. The Municipality will not be subject to any service charge or fee during the term of the agreement that is not expressly indicated in the agreement. 5. Transition Attach information outlining a proposed plan to transition the Municipality’s banking services, if you are not the incumbent; include conversion costs and a timeline. 6. References Please list the names of senior staff from municipal or corporate client accounts, who can attest to the dependability, consistency and timeliness of processing information. 7. Contracts Attach all contract templates that would be required to be negotiated prior to contract execution. 8. Copies Required Please submit three (3) hard copies and one electronic copy of your proposal complete with your RFP response and all requested information attached. Electronic copies are to be in .pdf format, emailed to
[email protected] subject: RFP Banking Services. 9. Checklist Please enclose all related documents in the proposal envelope along with a completed Checklist as provided in Schedule 2.
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RFP Banking Services The Corporation of the Municipality of Leamington
June 2015
Section D – Service Requirements The following outlines the banking services required by the Municipality in regards to account structures, support services, cash management, banking supplies and other general services. Please respond as to how the Proponent is able meet each of the required services. 1. Length of Agreement The term of the agreement shall be for a period of five (5) years commencing September 30, 2015. Thereafter, a further renewal may be considered. 2. Location of Branch The Proponent must have a branch location in the Municipality of Leamington assigned to provide the service requirements. Please provide the location of the proposed main branch along with any other branches that will accept regular deposits and/or night deposits. Also include the hours of operation along with the weekdays upon which the branch is open. 3. Liability The contract should include wording that should the Proponent be found negligent in their services, the Proponent will indemnify. 4. EDI Compatibility Vadim Software’s iCity is the primary software used by the Municipality’s Financial and Business Services. All EDI’s and any other associated electronic banking files must be compatible with the Vadim software. 5. Maintenance and Operation of Accounts The following is a description of the Municipality’s bank account structure. Schedule 3 tables a summary of account activity for the Municipality’s accounts. General Account – The General Account is a full service account and will be the principal receiver and dispenser of funds. Income is to be handled by deposit, bank transfer, PC/Telephone payments, debit card payment and interfund transfers. Cheques, bank drafts, bank transfers and electronic fund transfers will pay out expenditures. U.S. Account – The U.S. Account income will be handled by deposits and transfers to/from the general account only. Cheques, bank drafts, and bank transfers will pay out expenditures. Reserve Accounts - Generally these accounts have limited activity throughout the year. Transactions consist primarily of transfers to/from the general account. Other Accounts – Generally these accounts have limited activity, however will have deposits and transfers to/from the General Account. Examples of these accounts are the Cemetery Account and Union Water Supply System Account. 6. Depository Requirements 6.1 Regular Deposits On a daily basis, Financial and Business Services processes cash and cheque deposits, and debit and credit card payments from a variety of sources such as property tax payments, various license fees, provincial offence payments, development charges, building permit fees, etc. In addition to making traditional deposits, the Municipality is looking to scan cheques and deposit them electronically in batches from the municipal offices in order to reduce time spent on deposits and increase efficiency.
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RFP Banking Services The Corporation of the Municipality of Leamington
June 2015
• Please outline how the Proponent will handle these deposit services along with any technological improvements. 6.2 Night Deposits The Municipality does not currently make night deposits but may require the availability of night depository services on an irregular and infrequent basis. • Please describe the process, availability and location of a branch with night deposit services. 6.3 PAP (Pre-Authorized Payments) Each month, 2000 - 3000 payments are made by way of automatic debit to customers’ designated bank accounts. Taxes, marina services, recreation complex memberships and other miscellaneous ARs are settled via PAP. Payments are made monthly, bi-monthly as well as on due dates. Currently, records of PAP transactions are faxed to the Municipality. PAP records must be made available in a downloadable format that is compatible with Vadim iCity. 6.4 Non-Sufficient Funds The Municipality requires the ability to locate details online as to what payments have been declared as NSF. A list of NSF transactions should be provided in a format that is compatible with Vadim. 6.5 Interest Paid on Account Balances It is expected that interest on the combined balances in all bank accounts will be paid. Interest shall be credited to each individual account. 6.6 Bank Supplies The Municipality currently requires a supply of pre-printed deposit books, cheque stamps and coin wrappers. The Municipality is interested in replacing hand-written deposit books with printable Vadim iCity ledgers. 7. Disbursement Requirements 7.1 Cheques Cheques are drawn on the General Account and the U.S. Account. The bank returns all cashed cheques or provides a separate report showing the front and back of each cashed cheque on a monthly basis with the bank statements. 7.2 Payroll The Municipality employs over 100 full-time staff and upwards of 130 additional part-time staff at any given time. A payment distribution service involving direct deposit is required. These payments must be available to the financial institution of the employees’ choosing with next day payment distribution and a report of payment provided to the Municipality the following day. 7.3 Stop Payments The successful Proponent will be required to accept stop payment instructions by telephone, fax or online. 7.4 Wire Transfers The Municipality makes wire transfers on an infrequent basis. Proponents are expected to provide this service should it be required.
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RFP Banking Services The Corporation of the Municipality of Leamington
June 2015
8. Treasury Requirements 8.1 Account Administration The Municipality requires physical bank statements, cashed and cancelled cheques and other account details returned monthly. Include an estimation of the time frame for receiving such documents. Memos affecting municipal accounts must be returned to the Municipality the day after they are made. Each memo should clearly indicate the reason for the memo and any related documentation should be attached. Additionally, electronic cash management solutions, which allow for the daily monitoring of cash flow, are required. As a minimum, this service should provide; • On-line inquiries for each account, including activity as of closing time on the previous working day; • A summary report listing all Municipal accounts and their previous day’s balance, amount credited, amount debited, net change and present balance; • A current account statement for each account listing all transactions including individual deposits, credit memos, debit memos and individual cheques cashed; and • A means of creating a current account statement for a specified period and downloading the information into spreadsheet format (i.e. Excel) to accommodate bank reconciliations and general ledger postings. Your proposal should be as specific as possible concerning PC-based on-line banking capabilities. Include technical hardware/software requirements to support your PC-based on-line banking system. 8.2 Online Signatures The Municipality’s policies require that documents such as online funds transfers receive two signatures. The Proponent’s online disbursement procedures must require two signatures in accordance with municipal policy. 8.3 Foreign Exchange Rates The Municipality handles the receipt of U.S. funds at several locations. Daily foreign exchange buy and sell rates should be available for viewing online. 8.4 Purchasing of U.S. Funds Occasionally, large capital purchases are made by the Municipality in U.S. funds. It is required that Proponents be able to exchange Canadian funds for U.S. funds for purchases up to $200,000 in U.S. funds. Provide an outline of this process including authorization, service charges and online capabilities. 8.5 Borrowing/Line of Credit The Municipality may require a line of credit to temporarily finance capital and operations. Please indicate what line of credit will be available to the Municipality with terms, rates, etc. along with what notification is required to draw on the line of credit and what potential there is for increasing the line of credit over time. 9. Other Potential Services The Municipality is looking for ways to make work processes more efficient and cost effective. In this section, outline any new services that can make the Municipality’s banking services more efficient and effective. Please provide specific examples of online, PC, and hardware technologies that could be implemented into the Municipality’s banking services.
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RFP Banking Services The Corporation of the Municipality of Leamington
June 2015
SCHEDULE 1 – STATEMENT OF ACCEPTANCE I/We, the undersigned, having examined the RFP and do hereby affirm the acceptance of the requirements of the RFP. I/We do certify the information supplied in the Proposal to be true and complete in all respects and is open for acceptance by the Municipality within 90 days of the closing date. I/We _____________________________________________________________________________ (Name – Print) (Position) of _____________________________________________________________________________ (Financial Institution Name) Dated at___________________ this _______________ day of ___________________, 20____ _____________________________________________________________________________ Print Name Authorized Signature _____________________________________________________________________________ Street Address _____________________________________________________________________________ City Province Postal _____________________________________________________________________________ Telephone No. Facsimile No. Email Address Signature in the designated space, by an authorized officer of the Proponent company affirms acceptance of the Request for Proposal requirements set forth in this document, the associated costs (where applicable) attributed to the business arrangement between the Proponent and The Corporation of the Municipality of Leamington and hereby certifies that the information supplied in this proposal to be true and compete in all respects.
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RFP Banking Services The Corporation of the Municipality of Leamington
June 2015
Schedule 2 - Checklist (To be enclosed in the Proposal Envelope) Your proposal may be disqualified if ANY of the foregoing points have not been complied with. Before sealing the envelope, please check that the following things have been done: 1.
Have you identified and addressed all requirements of Section D?
2.
Have you included:
3.
_____
(a) A signed acceptance (Schedule 1)
_____
(b) Contact information (Section C 2)
_____
(c) A detailed technical response (Section D)
_____
(d) Fees (Section C 4)
_____
(e) A transition plan (If necessary (Section C 5))
_____
(f) A list of references (Section C 6)
_____
(g) Contract templates (Section C 7)
_____
(h) Three hard copies of the proposal and one electronic copy (Section C 8).
_____
Have you determined you can meet the commencement deadlines as per
_____
Section B 3?
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RFP Banking Services The Corporation of the Municipality of Leamington
June 2015
SCHEDULE 3 – MONTHLY VOLUMES CASH MANAGEMENT SERVICES
VOLUMES
Over the Counter (OTC) Deposits
87
OTC Currency – Bills $ Deposited
93,333
OTC Coin $ Deposited
375
OTC Cheque $ Deposited
1,551,024
OTC Cheque – Number
1,071
Electronic Deposits
134
Cheques Issues and Other Debits
424
Cheques Charged Back
3
Stop Payments – Complete Details
1
Account Administration – Current # of Accounts Other Service Chargeable Debit and Credit Items PAP (Pre Authorized Payments) – Number of Items PAP Electronic Returns
17 8 1,952 10
Direct Deposit – Number of Items
621
EDI Receiver – Per Remittance
127
EDI Receiver – Per Remittance Item
993
CMO (Cash Management Online) – Monthly Maintenance
1
CMO – # of Transfers
2
CMO - EFT File Upload Count
11
CMO – Prior Day Account Activity
62
CMO – Current Day Account Activity
3
CMO – Customer’s Total Accounts
17
Merchant Electronic Bill Payments – Monthly Maintenance Merchant Electronic Bill Payments - Payments
13
1 110
