REQUEST FOR PROPOSAL FOR BANKING SERVICES CITY OF GREENVILLE 411 South Lafayette Street, Greenville, MI 48838

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1 REQUEST FOR PROPOSAL FOR BANKING SERVICES CITY OF GREENVILLE 411 South Lafayette Street, Greenville, MI INTRODUCTION A. PURPOSE AND SCOPE The City of Greenville is seeking proposals from qualified banking institutions (the "bank") to serve as a depository for our government checking accounts and provide various banking services for a period of at least three years as described herein. The objective is to identify the banking institution(s) that can offer the most comprehensive services at the most competitive rates. The proposal has been divided into the following sections: 1. Financial Services Overview 2. General Banking Information 3. Depository and Collection Services 4. Treasury Management Services 5. Merchant Services 6. Purchasing Cards 7. Pricing Proposal It is the City s intent to maintain most banking services with one bank. B. ELIGIBLE BANKS A proposed bank must be a federally or State of Michigan chartered banking institution with offices located in Michigan, ideally in the City of Greenville. C. ACCOUNT COMPLIANCE All accounts proposed by the banking institutions must be in compliance with Michigan Act 20 PA 1943, as amended, and the City's Cash and Investment Policy, which is provided.

2 D. PROPOSAL FORMAT A proposer must follow the suggested format in submitting a proposal. The proposal must be completed in its entirety. Any relevant supplemental information should be included as attachments. If a bank cannot meet a service requirement, the bank should enter "No Proposal" for the specific requirement. E. TIMELINE RFP distributed to banks (November 4, 2016) Proposals due from banks (November 18, 2016) Interviews of top banks (Week of November 21, 2016) Recommendation to Board (December 6, 2016) F. RESPONSE DATE One copy of your proposal must be received by the City no later than November 18, 2016 by 5:00 pm. Proposals must be clearly marked "BANKING SERVICES PROPOSAL" in a sealed envelope. Mail or deliver responses to: City of Greenville, 411 South Lafayette Street, Greenville, MI Late proposals will not be considered. Amendments to proposals will be considered only if they are received by the above deadline or requested by the City. A corporate official, legally authorized to bind the bank, must sign the proposal. G. QUESTIONS Questions regarding the bid process or specific aspects of the RFP should be ed to: ntrasmussen@greemvillemi.org. Questions and answers will be consolidated and provided via to all banks on record as having received the RFP by November 16, H. SELECTION CRITERION It is the City's desire to select the bank that will provide the best overall value on a long term relationship rather than simply selecting the "low bidder". I. TERM OF BANKING SERVICE AGREEMENT The City is proposing a contractual agreement of at least three years. We would like to suggest that a banking representative plan to visit our office at least once a quarter to evaluate opportunities together. J. RIGHT TO REJECT PROPOSALS The City also reserves the right to waive any information or irregularities in any proposal and to reject any or all proposals.

3 SECTION 1 - FINANCIAL SERVICES OVERVIEW A. CURRENT ACCOUNT STRUCTURES/DIAGRAMS Below is the current account structure for the City: General Clearing Account All funds are deposited to this account General Account Trust & Agency Account Payroll Account DESIRED SERVICES 1) We require access to our account for internet banking for on-line transactions, transfers between accounts, wire transfers, ACH transmissions, etc. In addition, we would like online access to statements to print each month. 2) We do not require cancelled checks; however, we do need the availability to access them on-line by viewing the front and back of the check. 3) Please provide information on how far back we can access statements, and view and print images of our archived checks/deposits. 4) Please provide a detailed list of all service charges listed in Appendix A, along with any additional fees or services that would apply. 5) Please describe your process for non-sufficient checks including whether or not items may be resubmitted and, if so, how many times. 6) We will require four main checking accounts: General fund for deposits/disbursements Tax and Agency account for tax deposits/disbursements. Payroll Account Clearing Account

4 Please provide monthly interest rates on these accounts. We will also need up to six minimum balance disbursement accounts plus one credit card merchant checking account. 7) We are looking for ACH Debit Block (if you offer this service) to prevent any ACH debits from posting without our prior approval. Please provide information on the process including how we would be notified, the response time, and whether or not recurring debits can be approved once within a set dollar limit. Please provide information on any fees associated with this service. 8) We currently use Positive Pay and would like information on the procedures for processing and any fees associated with this service. 9) We use ACH processing for direct deposit of payroll, state withholding taxes, pension, utility and tax payments, etc. Please describe the procedure for processing and if there are any fees associated with this service. 10) We have credit card/e-check deposits that are processed through PayGov. We also make daily deposits with cash and checks at the bank. Our average Clearing Fund cash deposit is $20-25,000 per month and we average 1,160 checks per month. In the months of February, July, August, and December, our average cash deposit is $50,000 per month and we average 2,400 checks per month. August is the heaviest month with cash of $100,000 and approximately 3,000 checks. The average month-end balance of the general fund for the last 12 months was $5,128,000, and the clearing account balance was $517,394 over the last 14 months. The Trust & Agency account has an average month-end balance of 1,308,957 and writes an average of 20 checks per month. 11) For investment purposes, please provide information on services you may offer including money markets, savings, certificates of deposits, etc. Please provide interest rates, terms, etc. and if we are able to see interest rates on monthly statements or online. 12) Please provide the lengths of time the amounts of any fees are guaranteed. 13) Do you provide a free courier service on a daily or weekly basis? Do you provide check scanners on site? 14) Will you provide on-site assistance during the change-over from our current vendor? 15) Will you provide starter checks or purchase our existing checks from us? SECTION 2 - GENERAL BANKING INFORMATION I. FINANCIAL STRENGTH A. SAFETY AND SOUNDNESS Identify key measures of the bank's financial strength (e.g. capital

5 ratios, market capitalization, total assets). B. FINANCIAL STATEMENTS Each proposal must include a copy of their most recent annual financial report. II. ACCOUNT SERVICING A. BANK CONTACTS List names, titles, telephone, cell numbers, and addresses for key bank contact personnel. We would also like length of experience in current position. B. DISASTER RECOVERY Provide an overview of the bank's disaster recovery plan. C. IMPLEMENTATION What is the average lead-time required for implementation, including but not limited to the following services? Account Opening Deposit Ticket Orders and Endorsement Stamps Information Reporting Other SECTION 3 - DEPOSITORY AND COLLECTION SERVICES I. BASIC INFORMATION The City of Greenville currently has four (4) main depository accounts and six (6) minimum balance disbursement account. The average daily balances are approximately $7,000,000. Duplicate deposit tickets are returned by the bank to the City of Greenville. A. PROCESSING What is the cut-off time to ensure same day ledger credit? B. BANK COMPENSATION 1. How do you determine and calculate availability of deposited items? Do you give immediate availability for on-us items? Do you use a standard schedule? Do you use an accelerated schedule? How often are they updated? 2. Provide your bank's availability schedule. 3. How are your bank's monthly earnings credit rates calculated?

6 C. RETURNED ITEMS 1. Describe your procedure for handling non-sufficient fund checks deposited into a City of Greenville account. 2. Can return items be automatically redeposited? If so, how many times? D. STOP PAYMENTS 1. Can stop payments be placed manually? On-line? 2. Can the period be extended? 3. Can you request stop payments for a range of checks? What is the limit of the range? SECTION 4 - TREASURY MANAGEMENT SERVICES I. INFORMATION REPORTING SERVICES Provide a brief description of the information reporting services that the bank offers. Please provide sample reports. II. ACH PROCESSING (DIRECT DEPOSIT OF PAYROLL) The City of Greenville currently uses ACH processing for PAYROLL, FEDERAL TAXES, etc. 1. Describe the service delivery method (direct transmission, PC-based system, web based) that you recommend based upon the information outlined for our organization. 2. Describe the product features including, but not limited to: Transmission procedures Transmission time windows/ach hours of operation Electronic reporting capabilities Security features SECTION 5 - MERCHANT SERVICES Describe how the current merchant processing is handled, and the billing structure. Our community center and recreation department use merchant services on average about 95 transactions per month and $1,900 in revenue.

7 SECTION 6 - PURCHASING CARDS Describe the number of cards, limits, and desired controls. We estimate our usage for 25 cards and 75 transaction up to $25,000 usage per month total. SECTION 7 - PRICING PROPOSAL This is a firm and irrevocable offer for ninety (90) days. The proposed length of this contract is at least three years. SECTION 8 NON-DISCRIMINATION Upon submission of this proposal, the Financial Institution agrees that he/she will comply with the Federal Civil Rights Act of 1964 as amended; the Federal Civil Rights Act of 1991 as amended; the Americans with Disabilities Act of 1990 as amended; the Elliot-Larson Civil Rights Act, Article 2, Act No. 453, Public Act of 1976 as amended; the Michigan Handicapper's Civil Rights Act, Article 2, Act No. 220; Public Act of 1976 as amended, and all other applicable Federal, State, and Local laws and regulations. Specifically, providers are required not to discriminate against any employee or applicant for employment with respect to such person's hire, tenure, terms, conditions, or privileges of employment, or any other matter directly or indirectly related to employment because of such person' s race, color, religion, national origin, ancestry, age, sex, or disability, as defined by law. Breach of this covenant may be regarded as a material breach of the contract or purchase agreement and may be processed as provided under the State of Michigan laws. Official Submitting Proposal: Organization: Name: Title: Phone: Date: Signature:

8 * Please Identify any additional services and charges associated with the listed service. Average Collected Balance In Account Earnings Credit Rate (If Applicable) Interest Rate (If Applicable) Item Items Per Item Fee Charge Deposit Services Credit Items Deposits Posted $ - Deposited Items $ - ACH Credits Received $ - Cash/Coin Deposits Per $1,000 $ - Incoming Wire Transfer (Domestic) $ - *Additional Services Debit Items Checks Paid $ - ACH Debits Received $ - Outgoing Wire Transfer (Domestic) $ - Return Deposited Item $ - Return Items Redeposit Charge $ - *Additional Services Stop Payments Inquiries $ - Placement $ - Photocopies $ - *Additional Services Total Fees for Deposit Services $ - Online Banking Monthly Maintenance Fee $ - Per Account Fee $ - Per User Fee $ - Internal Transfer Fee $ - *Additional Services Total Fee for Online Banking $ - ACH Origination Fee Monthly Maintenance Fee $ - Items Originated - ACH Credits $ - Items Originated - ACH Debits $ - Returned Item/Notification Fee $ -

9 One Time Set Up Fee $ - *Additional Services Total Fees for ACH Origination $ - Fraud Protection Positive Pay Maintenance $ - Per item $ - Per Exception $ - ACH Blocks/ Filters Maintenance (Per Account) $ - ACH Blocks/ Filters per item $ - ACH Blocks/ Filters Per Exception $ - *Additional Services Total Fees for Fraud Protection $ - Deposit Administration Fee/Fees for daily balances held Per $1,000 collected balance $ - Per $100,000 collected balance $ - Other deposit balances fees assessed for $ - Total Fees for deposit administration $ - Total Monthly Fees $ - (Earnings Credit) $ - Net Monthly Fee $ - + Interest Earned $ - Net Monthly Position $ -

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