REQUEST FOR PROPOSALS (RFP) FOR BANKING SERVICES CABOT WATER AND WASTEWATER COMMISSION

Transcription

1 CABOT One City Plaza, Suite B P.O. BOX 1287 Cabot, Arkansas Phone Fax REQUEST FOR PROPOSALS (RFP) FOR BANKING SERVICES CABOT WATER AND WASTEWATER COMMISSION DATE ISSUED: October 27, 2009 SUBMITTAL DEADLINE: SUBMIT TO: November 13, 2009, 2:30 p.m. Cabot WaterWorks Tim Joyner, General Manager One City Plaza, Suite B Cabot, Arkansas, Tim.Joyner@CabotWaterworks.Com Cabot Water Works is accepting sealed proposals for banking services. This Request for Proposals (RFP) includes a description of the services required and a response form for making your proposal. CWW plans to select a financial institution by December, 2009 In order to be considered, five copies of your proposal must be received by the submittal deadline at Cabot Waterworks Administrative Offices at the location stated above in a sealed envelope marked "RFP for Banking Services": Questions about the RFP for Banking Services should be directed to Tim Joyner, General Manager for Cabot WaterWorks. 1 of 6

2 INTRODUCTION: Cabot WaterWorks (CWW) is accepting proposals from financial institutions to provide full banking services for the next three (3) years, subject to termination provisions. Proposals must be received by CWW, at the previously stated address and no later than the submittal deadline. CWW is under no obligation, expressed or implied, to reimburse a responding financial institution for expenses incurred in preparing proposals in response to this RFP. CWW reserves the right to retain all proposals submitted and to use ideas obtained from the proposals, regardless of whether the proposal is selected. The submission of a proposal indicates acceptance by the financial institution of the terms and conditions contained in this request, unless clearly and specifically noted in the proposal submitted and confirmed in the engagement letter between CWW and the financial institution selected. All proposals submitted to CWW are a public record and subject to disclosure to the public pursuant to the Arkansas Freedom of Information Act. Cabot Waterworks reserves the right to reject any or all proposals and to waive any formalities or minor exceptions and will select the most qualified and responsive proposal in the opinion of CWW utilizing the procedures established by the selection committee appointed by the Cabot Water and Wastewater Commission and the Cabot Water and Wastewater Commission. Either party may terminate the contract upon a 90-day written notice. Cabot WaterWorks Basic Financial Information: CWW maintains 10 depositary accounts, with annual revenues totaling approximately $6,000,000. The Accounts Payable Department issues approximately 1,700 checks annually. The Payroll Checking Account issues approximately $1,000,000 in direct deposit (ACH) transactions annually. 2 of 6

3 NATURE OF SERVICES REQUIRED: CWW desires to place all of the above accounts with one financial institution; however, CWW reserves the right to award separate contracts for banking functions relating to Lockbox, Credit Card, and Internet services. The following services will be required: Automated Clearinghouse Collections and Payments (ACH): Approximately 20% of CWW s Customers use ACH to pay their monthly utility bills. 90% of the CWW payroll (is paid through direct deposit (ACH) and approximately 3% of Accounts Payable vendors are paid through the means of direct deposit (ACH). The utilization of these services is expected to increase in the future. ACH files are transmitted in NACHA format at No Cost to CWW. On-line Banking Services: CWW utilizes On-line Banking Services on all of the accounts mentioned in the above descriptions. Monthly Bank Statements: Monthly account statements with photographic images of checks and deposit slips. Statements shall also be available through online banking services in PDF format. Return of All Other Items: The services must include the monthly Return of All Other Items, including Debit and Credit Memorandums. Stop Payment Orders at No Cost to CWW. Zero-based Sweep Accounts: CWW may utilize zero-based Sweep Accounts or a comparable alternative should be offered in the RFP. Returned Items: Each proposal should recommend the most efficient and cost-effective methodology for handling payments or deposits that are returned as insufficient. Collateralized Deposits: CWW requires that accounts at the financial institution shall be collateralized by U.S. Government Securities held on deposit with the Federal Reserve Bank in an amount no less than 102 % of the daily balance of each CWW account. Wire Transfers. Including a Specified Notification Method: CWW agrees to notify a designated representative at the bank prior to 12:00 p.m. noon of every outgoing wire transfer. Wire transfers ordered by 12:00 p.m. noon and not received by the destination party by 2 p.m. the same day will be traced from origin to destination to determine the party responsible for delaying the transfer. If necessary, adjustments will be made for any lost interest or charges resulting from a failure to consummate a wire transaction. Credit Card and Internet Payment Services. CWW utilizes an outside vendor to allow customers to make bill payments by credit card through the Internet on our web site. These funds are transferred by ACH for deposit to CWW account. Trust Accounts: Investment Activity: U.S. Treasury Bills and U.S. Treasury Notes may be purchased by CWW for the Trust Accounts described herein. After receiving instruction from CWW to purchase such bills or notes, the financial institution will notify CWW when the purchase has been consummated (notification will include date, time, and cost of investment instrument). After receiving instruction from CWW to liquidate investments, the financial institution will notify CWW of the date, time, and amount of the proceeds. In order to assure CWW that the best market price is obtained for U.S. Treasury securities, competitive notification may be required at the execution of the purchase. Monthly Banking Statements on Trust Accounts: Statements on the Trust Accounts shall be issued on a monthly basis and shall include itemization of deposits by date and 3 of 6

4 amount; acquisition by type, date, and amount; liquidation by date and amount; and the fair market value (FMV) of each investment at the end of each month. Lockbox Services: Proposals for Lockbox Services should be stated separately. CWW reserves the right to separately award Lockbox Services. Cabot WaterWorks currently does not utilize Lockbox Service. BANK QUALIFICATIONS: In order for a financial institution to qualify for consideration under this RFP, it must: Be licensed in the State of Arkansas and be a participant in the Federal Deposit Insurance Corporation (FDIC). Must operate a branch bank in the City Limits of Cabot, Arkansas, with resources, staffing, and deposits to provide CWW with full banking services. Provide a copy of the financial institution's latest annual report and Community Reinvestment Act (CRA) rating. Provide contact names, telephone numbers, and credentials of bank personnel who will work with CWW. CWW must be notified if assigned financial institution personnel changes. PROPOSALS: CWW will consider proposals made in the following manner: Banking Services: Option I: The financial institution agrees to provide the required services at no cost to CWW and bid a net fixed interest rate that will be paid on daily account balances. Interest Rates shall be quoted in terms of APY. Option II: The financial institution agrees to provide the required services at no cost to CWW and bid a net Variable interest rate that will be paid on daily account balances. Current Variable interest Rates shall be quoted in terms of APY. Provide basis for variable rate adjustments. Option III: The financial institution may agree to charge CWW fees for specified services and pay a quoted interest rate on daily account balances. Interest Rates shall be quoted in terms of APY. Trust Services: State costs and fees charged. Lockbox Services: State the costs and transaction fees involved and the location of the processing center. 4 of 6

5 Financial institutions may also propose additional services to CWW at no cost or for a specified fee. These additional services will be considered by CWW in the evaluation of the proposal if the economic benefit can be quantified. Proposals should include technological changes or other improvements in banking services to customers and available new services that would benefit CWW. Examples of these new services may include: Investment advice for Treasury Management, Lockbox Services, Automated Teller Machine (ATM) Payment Processing, and Credit Card Services. CWW reserves the right to separately award or reject the Banking Services, Lockbox Services, and Credit Card Services. INTERVIEWS, EVALUATION, AND AWARD After the receipt and initial evaluation of the proposals, CWW may schedule interviews with some of the financial institutions that have submitted a timely response. The selected financial institutions will be notified by CWW. The Selection Committee will then make a formal recommendation to the CWW Board of Commissioners at the next schedule meeting in November or December CWW shall make its final evaluation of those proposals. Such evaluation shall be based on price, availability, and accessibility of services offered, experience, innovations, and other advantages presented by the financial institution. There may be other information contained in the proposal or developed during the interview that may be beneficial to the evaluation process. Unless it is determined that all proposals should be rejected, CWW shall award the contract to the financial institution whose proposal is determined by CWW to be the most qualified, responsive and advantageous, taking into account all factors considered in the evaluation process. CWW shall notify all responding financial institutions of its award. The decision reached by CWW shall be final. 5 of 6

6 BANKING SERVICES BID FORM: Option I. Fixed Interest rate, Bank agrees to pay on daily balances in APY. % Option II. Variable Interest rate, Bank agrees to pay on daily balances. Provide current rate in APY and basis for future adjustments. Basis must be published and referenced to nationally recognized publications. % (Basis for Variable Rate and frequency adjusted) Option II. Fixed Interest rate, Bank agrees to pay on daily balances in APY plus a schedule of fees charged, attached hereto by Bank. % TRUST SERVICES: Please, attach a pricing sheet. LOCKBOX SERVICES: Please, attach a pricing sheet and indicate the location of the processing center. Other services may be included but must be attached separately. FINANCIAL INSTITUTION NAME: AUTHORIZED SIGNATURE: TITLE: CONTACT PHONE#: CONTACT ADDRESS: 6 of 6