REQUEST FOR PROPOSAL NOTICE #1260 FOR DEPOSITORY SERVICES BY RICHARDSON INDEPENDENT SCHOOL DISTRICT 400 S. GREENVILLE AVE. RICHARDSON, TX 75081

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1 Page 1 of 4 REQUEST FOR PROPOSAL NOTICE #1260 FOR DEPOSITORY SERVICES BY RICHARDSON INDEPENDENT SCHOOL DISTRICT 400 S. GREENVILLE AVE. RICHARDSON, TX Richardson Independent School District is soliciting sealed proposals to serve as Depository for the purpose of assisting with the banking functions for funds of the District. Introduction Pursuant to existing provisions of Chapter 45, Subchapter G, School District Depositories, Texas Education Code, it is the intention of the Board of Trustees of the District to select a Depository through soliciting sealed proposals for a Depository services contract for a term of two years beginning July 1, 2013 and ending June 30, 2015 or until such time as a successor Depository is selected and qualified and agrees to a depository agreement based on either fees or compensating balances. The District and the Depository may agree to extend this contract for two additional two-year terms in accordance with Section of the Education Code. This Section requires that the contract and any extension of this contract coincide with the District s fiscal year. In the event the District changes its fiscal year, the term of the contract may be shortened or extended no more than one year by mutual agreement to coincide, provided that this contract is to remain in effect until its successor is selected and been qualified. If the parties cannot agree, the District may at its option change the term of this contract. The resulting contract and any extension(s) shall become binding upon the District and the Depository only upon acceptance by the Texas Education Agency. The legal provisions providing for the naming of a Depository of the District are set forth in Subchapter G, School District Depositories, Sections through , of the Texas Education Code. Investments by the District will be governed by the Government Code, Chapter 2256, Public Funds Investment. Securities pledged as collateral to secure District deposits will be governed by the Government Code, Chapter 2257, Collateral for Public Funds. Pre-Proposal Conference and Depository Questions There will be a pre-proposal conference which has been scheduled for February 26, 2013 at 2:00 pm CST/CDT and will be held in the District s Large Conference Room at 970 Security Row, Richardson, TX Questions regarding this proposal request, or the services requested, will be accepted by Jeanne Miller, Buyer, in written or form only, at this address or at jeanne.miller@risd.org on or before 4:00 pm on March 1, Responses to all material questions submitted will be communicated via an addendum to this request for sealed proposals that will be posted on the following website by March 8, 2013:

2 Page 2 of 4 Proposal Submission To be eligible for consideration under this request, three (3) complete paper copies of each proposal and one (1) electronic copy of the proposal on CD Rom or flash drive shall be submitted by 1:30 pm CST/CDT on March 19, 2013 to the address below. Proposals received after that time by the District will not be accepted. Late submissions to the District address will be returned unopened. The proposal must be submitted in a sealed envelope or packet marked Depository Services, RFP #1260. An accompanying transmittal letter must be signed by an individual authorized to bind the institution, state that the proposal is valid for 180 days from the submission date, and give full contact information regarding the proposal. The proposals must be delivered by mail, express mail, or in person to: Richardson ISD Purchasing Department Attn: Jeanne Miller, Buyer 970 Security Row Richardson TX All questions in the attached uniform proposal blank should be answered and provided to the District as the Depository s proposal. The Depository is to attach a Cashier's Check in the sum of $2,500 payable to Richardson Independent School District. If any portion of this contract is awarded to the Depository the check will be returned to the Depository. If the Depository fails to execute the contract in a reasonable time, the check shall be cashed by District as liquidated damages. If the proposal is not accepted, the check will be returned to the Depository immediately after contract award. This proposal is also being provided electronically by the District at the web address listed on the bottom of page 1 of this notice. The fee schedule, Attachment A, is in Excel format. The submitted proposal must be made in both paper and electronic form. Evaluation Process Selection Criteria The following criteria will be used by the District for evaluation and award of the contract. 18% Capabilities: Ability to perform the necessary services and duties as depository including online banking services 18% Cost of services, cost of transition, ECR, compensating balance policy and fee reduction incentives 10% Cash management information services, reporting, monitoring, notifications and image access 10% Collateralization policies, services, costs and limits 10% Fraud prevention and notification, security, positive pay, disaster recovery and online security measures 10% Investment options and interest rates including time deposits, interest bearing accounts and sweep accounts 10% Experience providing depository services for similar accounts, customer service ratings and references 5% Additional services offered and service enhancements such as purchasing cards, safekeeping and courier services

3 Page 3 of 4 5% Policies for intraday and interday overdrafts, limits, charges, rates, and payment holding policies 2% Funds availability and float schedule and deposit and payment cut-off times 2% Other considerations such as banking programs for employees and local community involvement 100% Total The District reserves the right to reject any and/or all proposals and to accept the proposal the District considers most advantageous. If any portion or provision of this proposal and/or any contract between Depository and District entered into is invalid, the remainder at the option of the District shall remain in full force and effect and not be affected. Acceptance of a proposal will be based on the total package of services offered by the banking institution. Legislative Change Changes in the law that may be enacted by the State Legislature, in session, could alter the scope of requirements as stated in this document. The proposal should conform to all statutes in effect at the time of proposal opening. Additional Information The District will make every effort to adhere to the following schedule. 02/15/2013 Release of Request for Proposal 02/26/2013 Pre-Proposal Conference: 2:00 pm CST 03/01/2013 Deadline for questions concerning the RFP or services requested: 4:00 pm CST 03/08/2013 Responses to questions will be posted to the website listed on the bottom of page 1 of this notice as an addendum 03/19/2013 Deadline for proposal submission: 1:30 pm CST 05/06/2013 District Board award of contract 07/01/2013 Contract commencement Other 1. The successful proposer will notify the District in writing within ten (10) days of any changes in Federal or State regulations or laws that would thereafter affect the depository agreement. 2. The bank's records relating to the District's accounts shall be open to review by either the District, its independent auditors and the Texas Education Agency. 3. The District reserves the right to pay for Depository services by targeted balances or by fees. 4. The District reserves the right to exclude direct payroll deposit service from the depository contract if the Depository does not offer direct payroll deposit service. District Rights The District reserves the right to: - waive any defect, irregularity or informality in the proposal or proposal procedures; - reject any and all proposals; - accept any proposal or portion thereof most advantageous to District;

4 Page 4 of 4 - request additional information or require a meeting with Depository representatives for clarification; - cancel, revise, and/or reissue this request for proposal or any portions thereof, - negotiate any conditions; - retain all other provisions even if any provision of the proposal is deemed invalid; - modify deadlines; and - select any proposal deemed to be in its best interest as determined by the District

5 PROPOSAL FORM RFP #1260 FOR DEPOSITORY SERVICES BY RICHARDSON INDEPENDENT SCHOOL DISTRICT Page 1 of 15 All questions in this form should be answered and provided to the District as the Depository s proposal. The District reserves the right to reject any and/or all proposals and if any portion or provision of this proposal and/or any contract between Depository and District entered into is invalid, the remainder at the option of the District shall remain in full force and effect and not be affected. BANK COMPENSATION Does the District have the option to pay for Depository services by targeted balances or by fees? Please describe any differences in related costs to the District with either option. If the District chooses one option for the life of the contract, is there a difference in service fees? Target Balance Compensation Basis: The District may choose to pay for Depository services on a compensating balance basis, maintaining a targeted amount of its funds in the Depository. The District will maintain balances in the checking accounts to compensate the Depository in full or in part for services provided. Earnings credit for these balances shall be reflected on the monthly account analysis provided to the District. Any excess collected balance may be invested daily by the Bank as directed by the District, in a District approved overnight investment, an interest bearing account, or an SEC registered money market mutual fund. The overnight investment and any index upon which the rate will be based should be listed below. The rate history at the Depository for the months beginning October 2012 and ending December 2012 was: Oct Nov Dec ECR Rate: Interest Bearing Accounts: Money Market Accounts: Sweep Accounts: % % % % % % % % % % % % If any of these rates is based on an index rate (such as the T-Bill auction rate) stipulate the index calculation basis. Fee Basis Compensation: The District may choose to pay for Depository services on a straight fee basis in which no targeted balance will be maintained by the District. Fees will be assessed and paid in accordance with the Depository s proposed fees as listed on Attachment A. Last Modified: 2/7/13

6 RFP #1260 REQUEST FOR SEALED PROPOSAL FOR DEPOSITORY SERVICES Page 2 of 15 DISTRICT INVESTMENTS The District reserves the right to purchase, sell and invest its funds and funds under its control, including bond funds, as authorized by the Government Code, Chapter 2256, Public Funds Investment Act, and in compliance with the District s Investment Policy, a copy of which is attached as Attachment C. The District may choose to invest in time deposits at the Depository, but all investments including CDs are bid competitively at the time of purchase. COLLATERALIZATION The Depository must provide either corporate surety bonds or pledged securities as per Texas Education Code Please specify which method the Depository will use for collateralization of District funds. Collateral Conditions The Depository shall provide collateral equal to 102% of all District time and demand deposits plus accrued interest minus applicable FDIC coverage (110% if pledging mortgage backed securities.). Collateral will be pledged to the District and held in an independent safekeeping institution by a custodian or permitted institution as specified by the Public Funds Collateral Act (Texas Government Code, Chapter 2257). Alternatively, the District may specify any limitations on its preferred custodial arrangement. The Depository will be liable for monitoring and maintaining the collateral and the required margin at all times and will provide original safekeeping notice and a monthly report of the collateral to include the security description, par amount, cusip, and market value, at a minimum. The Depository and District shall execute a collateral agreement in accordance with FIRREA. A sample Collateral Agreement should be attached as Attachment D. The District estimates its maximum anticipated collateral requirement to be $80,000, [If voluntary collateral pooling is legislated during the period of this contract, the District may consider and agree to its use under this contract with mutual agreement of the Depository.] Eligible Collateral The District will accept only approved securities as specified by Texas Education Code as pledged collateral. BANKING SERVICES FEES Based on the Depository services required by the District, the Depository shall complete the proposed fee schedule, Attachment A. Last Modified: 2/7/13

7 RFP #1260 REQUEST FOR SEALED PROPOSAL FOR DEPOSITORY SERVICES Page 3 of 15 DEPOSITORY INFORMATION Please answer the following questions concerning the Depository. 1. State full name and address of the Depository and any parent holding company. List all branch locations within the District s boundary. 2. Provide the UPBR reference or annual audited financial statement for the most current fiscal year. This may be in printed form, but an electronic link to the web site(s) is preferable. Members of Depository holding companies must include corporate annual financial statements and the individual Depository's call report for the most recent operating quarter. 3. State the Depository s rating from an independent Depository rating agency or, if not available, the rating on the Depository s senior and subordinate debt. Any change in this rating during the period of the contract must be communicated to the District in a reasonable period of time. 4. Contact Information To insure smooth contract implementation and continuation of services, a specific account executive and a back-up must be assigned to the District account to coordinate services and expedite the solution of any problem encountered. a. Designate a Depository officer as a primary contact with the District. Name Title Telephone # Fax # b. Designate a Depository representative as a backup contact with the District. Name Title Telephone # Fax # c. In the event the primary and backup contacts aren t available, what is the District s procedure for an emergency contact? After hours? d. Describe in detail how the Depository handles problem resolution, customer service, day-to-day contact, and ongoing maintenance for governmental clients. Please be specific about exactly whom the District will be calling and working with for the above described situations. 5. List references from at least three of the Depository s current, comparable governmental clients. Include the length of time under contract, a client contact, title, and telephone number. Last Modified: 2/7/13

8 RFP #1260 REQUEST FOR SEALED PROPOSAL FOR DEPOSITORY SERVICES Page 4 of Based on the services required by the District, please provide a proposed timeline for implementation of the contract including the timeline activities and direct responsibilities of the District and the Depository during implementation. 7. Provide a copy of all agreements (including those not directly referenced in this RFP) which will be required to be executed under the contract. 8. The Depository awarded the contract will be required to review the then-current District Investment Policy and certify in writing to that review in accordance with the Public Funds Investment Act certifying that the Depository has sufficient controls in place to avoid transactions not authorized by the Policy. The District has attached its investment policy to this RFP notice. 9. A pre-award interview may be conducted on site at the Depository prior to contract award or at any other location of the District s choosing. Please provide the District with a contact name for arranging the pre-award interview. 10. Is the Depository offering any transition or retention incentive to the District? If so, please describe in detail. Last Modified: 2/7/13

9 RFP #1260 REQUEST FOR SEALED PROPOSAL FOR DEPOSITORY SERVICES Page 5 of 15 BANKING SERVICES 1. Consolidated Account Structure with Sweep Mechanism The District is interested in earning at then-current interest rates available at all times. The District wants the option to use an automated, daily sweep to a money market mutual fund or Depository alternative account (if competitive) to reach its full investment goal. The District s current account structure is listed as Attachment B. The District does not guarantee that the balances will be maintained. The Depository shall clearly describe the Depository's most cost effective account structure (interest bearing accounts, ZBA accounts, or sweep, etc.). a. Fully describe the proposed account structure. Would a sweep be from a master account with ZBAs or directly swept from the individual accounts. Is interest distributed at the account level? b. State the average interest rate on the recommended alternative structure for the past twelve months. c. If an SEC registered money market fund is utilized for the sweep proposal, provide the full name and a copy of the prospectus. d. Interest earned on interest bearing accounts shall not be charged as an expense on the account analysis. Confirm acceptance of this condition. The District may be required or may desire to open additional accounts, close accounts, or change account types during the contract period. If this occurs, the new accounts and services shall be charged at the same contracted amount or, if unanticipated, at not more than published rates. 2. Automated Cash Management Information The District is interested in automated balance and detail information. Minimum automated services shall include: prior day summary and detail balance reporting on all accounts intra-day detail and summary balances (on local main and payroll accounts) initiation and monitoring of stop pays positive pay exception transactions initiation and monitoring of internal and wire transfers image access controlled disbursement presentment totals a. Fully describe the Depository s on-line service. List the system capabilities (i.e. balance reporting, wires, positive pay, stop pay, etc.). b. What is the Depository s back-up process to provide balance reporting and transactions in case of system non-availability? c. When is daily balance information available? d. Submit samples of major screens available or provide web link access to a demonstration module. e. How are individual security sign-ons assigned and who maintains the security module? How many levels of security are available? Last Modified: 2/7/13

10 RFP #1260 REQUEST FOR SEALED PROPOSAL FOR DEPOSITORY SERVICES Page 6 of 15 f. With regard to controlled disbursements -- What is the cutoff time for disbursements? -- What Federal Reserve location do these accounts clear through? -- How does the District have access to this information? 3. Deposit Services Standard commercial deposit services are required for all accounts. The District expects all deposited checks to clear based on the Depository s current published availability schedule, but any expedited availability options should be noted in the proposal. All cleared deposits received by the Depository's established deadline must be processed for same day ledger credit. Failure to credit District accounts in a timely fashion will require interest payment reimbursement to the District at the then-current effective Fed Funds rate. a. What is the Depository s daily cut-off time to assure same day ledger credit? b. Describe how and when credit/debit advices are sent to the District? c. What type deposit bags are used/required? Are these available from the Depository? d. In what city does item processing occur? Remote Deposit The District is interested in establishing remote check deposit for a few high volume locations during the contract period. These deposits include both consumer and commercial checks. e. What are the Depository's current capabilities in remote check deposit? Describe how checks are processed and cleared. Please state the cut-off time for sameday ledger credit. f. Give two comparable references with contact information. g. Is a daily balancing report produced? Provide a sample. h. What scanner equipment is required to operate the system? Is this equipment available through the Depository on a purchase or lease basis? Please list the equipment required along with its cost. 4. Standard Disbursing Services The District is interested in positive pay services for designated accounts. a. Does the Depository image all checks and deposits? b. Are checks and deposit images available on-line? When? Is a CD provided monthly? If not, are reports downloadable? c. How long are checks and deposit images maintained on-line? d. Are all District checks paid without charge upon presentation? 5. Positive Pay The District is interested in positive pay services for designated accounts on which checks are written. The positive pay process should be fully automated and web based. Check information will be transmitted electronically to the Depository on each check run and as manual checks are created. Last Modified: 2/7/13

11 RFP #1260 REQUEST FOR SEALED PROPOSAL FOR DEPOSITORY SERVICES Page 7 of 15 a. Describe the data transmission/transfer requirements for automated and manual checks. b. Is input available online for manual checks? If not on-line, how is information on individual manual checks transmitted to the Depository? c. How can check records be changed or deleted by the District, if necessary? d. How is the District to be notified of a positive pay exception? e. At what time is exception information reported to the District? At what time is the deadline for District exception elections? Are images of exceptions available? f. Are all checks, including those received by the tellers and vault, verified against the positive pay file before processing? How often is teller information updated? g. Does the Depository offer payroll positive pay? h. Please provide a copy of the Depository s file layout format. 6. Account Reconciliation The District anticipates use of partial or full reconciliation services on all accounts in concert with positive pay, dependent upon cost effectiveness. a. Describe the partial and full reconciliation processes. b. With what format(s) does the Depository s system interface? What record formats are required? How is reconciled data sent to the District? When? c. Specify all reporting alternatives. d. Are reports available online? How long are reports maintained online? Provide a sample copy of reports. 7. Funds Transfer and Wire Services Incoming wire transfers must receive immediate same day collected credit. Wire initiation should be available online. The District requires that wires be released the same business day if information is provided by the established deadline. a. Describe the process of online wire initiation. What back-up process is available for the on-line process in case of system unavailability? b. Is any paper transaction required for transfers or wires as follow-up? c. How and when will the Depository notify the District of incoming wires? Online? ? d. Is future dating available for both repetitive and non-repetitive wires and transfers? How far in advance? e. What is the deadline for initiation -- by telephone? -- on-line? f. Are templates available for repetitive transfers? 8. Optical Imaging The District desires optical images which are downloadable or on CD on all accounts. a. What items and reports are available on-line (checks, statements, deposit slips, deposited items, etc.)? b. What items are captured on the monthly CD, if provided? c. When are the monthly CD or imaged reports available? d. When and how long are statements and account analyses available on-line? Last Modified: 2/7/13

12 RFP #1260 REQUEST FOR SEALED PROPOSAL FOR DEPOSITORY SERVICES Page 8 of ACH Services The District expects to move toward more ACH transactions for payable and receivable transactions. The District requires a pre-notification (pre-note) on all new transactions. a. Describe the transmission alternatives for individual ACH transactions. Is the District able to initiate individual ACH transactions on line? b. What filters and blocks are available on District accounts for ACH transactions? c. Are ACH addenda shown in their entirety on-line and on reports? d. What is the Depository s policy on pre-notification? Is the pre-note charged as a standard ACH transaction? e. What is the deadline for transmission (hour and day) for a payroll to credit employee accounts on a Friday? 10. Investments and Safekeeping Services The Depository will be required to provide book-entry safekeeping services for any securities owned by the District. All District investments will be made by the District and instructions for clearing and safekeeping will be transmitted to the Depository in writing. All securities must be cleared on a delivery versus payment (DVP) basis and ownership documented by original clearing confirmations and safe-keeping receipts provided within one business day of the transaction. Funds for investments will be drawn from a designated District DDA account. All P&I payments, coupon payments, and maturities must receive automated same day collected credit on the District designated account without requiring any additional District action. If the Depository is not a member of the Federal Reserve or a federal home loan bank and utilizes a correspondent bank for safekeeping of District securities, the transactions will be handled through the Depository's systems and shall not require additional interaction by the District with the correspondent bank. No delay in transactions, wires or flow of funds will be acceptable under a correspondent relationship. a. Is the Depository a member of the Federal Reserve or a federal home loan bank? If not, name the correspondent Depository to be used for clearing and safekeeping. Describe any safekeeping arrangement proposed with a correspondent Depository including processing requirements by the District. b. Are security transactions available on-line for either origination or monitoring? c. What is the deadline for settlement instructions on a cash (same day) settlement? Is there any charge incurred for late instructions? The District may choose to purchase time deposits from the Depository, but all time deposits will be competitively bid at the time of purchase. 11. Collateral Requirements All the requirements, including those beyond the Public Funds Collateral Act, as stated in the District s Investment Policy and below, must be met by the Depository. The proposal must state agreement to the following terms and conditions. All collateral pledged to the District must be held by a custodian or permitted institution as specified by the Public Funds Collateral Act (Texas Government Code, Chapter 2257) Last Modified: 2/7/13

13 RFP #1260 REQUEST FOR SEALED PROPOSAL FOR DEPOSITORY SERVICES Page 9 of 15 Last Modified: 2/7/13 A tri-party safekeeping agreement shall be executed between the District, the Depository, and the safekeeping bank for custody of pledged securities in full compliance with FIRREA requiring a Depository resolution. (Or completion of Circular 7 if the Federal Reserve is acting as custodian. Use of the FRB will still require a depository agreement be executed between the District and the Depository.) All time and demand deposits above FDIC coverage shall be collateralized at a minimum of 102% of principal plus accrued interest at all times (110% on mortgage backed securities.) The Depository shall be contractually liable for the continuous monitoring and maintaining of collateral at the District's required margin levels. Pledged collateral shall be evidenced by original safekeeping receipts/report sent directly to the District by the custodian within one business day of receipt. The District shall receive a monthly report of collateral pledged including description, par, market value and cusip, at a minimum. Substitution rights shall be granted if the Depository obtains the District s prior approval and if substituting securities are received before previously pledged securities are removed from safekeeping. Authorized collateral includes only approved securities as specified by Texas Education Code a. Does the Depository propose any collateral charges? If so, under what conditions are they charged and how is the charge applied? b. What is the Depository s deadline for requesting collateral in excess of existing requirements? c. Can the Depository collateralize deposits based on ledger balances instead of collected balances? If so, what additional charges would apply? d. Because the District s revenue is the greatest from November to February, there is a higher risk of having excess collateral during these months. What can the Depository offer to minimize collateral fees during these months? 12. Account Analysis Monthly account analysis reports should be provided for each account and on a consolidated account basis. a. When is the analysis available each month? b. Is the account analysis available online? Is it imaged monthly? c. Are paper statements also sent to the District? If so, when? d. How long will it take the Depository to correct any billing errors on account analysis? 13. Monthly Statements The Depository must provide monthly account statements on all accounts with complete supporting documentation. a. State when monthly statements will be available each month. b. Is the monthly statement available online? If so, when and how long? Are the statements imaged or on a CD? c. If imaged, are paper statements also sent to the District? If so, when?

14 RFP #1260 REQUEST FOR SEALED PROPOSAL FOR DEPOSITORY SERVICES Page 10 of Overdrafts a. Are all accounts aggregated for overdraft calculation purposes? b. State the rate basis for intra-day and inter-day overdrafts. c. What is the policy for daylight overdrafts? 15. Stop Payments An automated stop pay process is desired. a. What are the time period options available for stop pays? b. What are the time period options for extended stop pay periods? How is it extended? c. What is the cut-off hour for same day action on stop pays? d. Can stop pay orders be initiated on-line? If so, is there any paper follow-up document required? e. What information on current and expiring stop pays is available on-line? 16. Customer Service Does the Depository offer customer services in languages other than English? languages are offered? What 17. Service Enhancements Based on the information provided in the RFP and your firm 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 District s treasury management operations. Last Modified: 2/7/13

15 RFP #1260 REQUEST FOR SEALED PROPOSAL FOR DEPOSITORY SERVICES Page 11 of 15 OPTIONAL SERVICES 1. NSF Checks Represented as ACH (RCK) The District may want the option of the second presentment to be made by ACH to targeted dates for maximum collection potential. a. Is the Depository currently using ACH for collection of NSF checks? How long has the Depository been providing this service? Provide two comparable references with contact information. b. How are the NSF and the later ACH matched/reconciled? Does the Depository system cross reference the two transactions in any way? c. Is the NSF information, image, or occurrence available on-line? When and how? How long is it available online? d. Can the District specify any target pay day(s)? 2. Merchant Services. The District is interested in possibly accepting credit card payments for various activities. The service should include daily capture, transmission and authorization of payments at point-of-sale and on the web. Reporting would be required by location. a. Does the Depository currently offer merchant card processing services? How long has this service been available? What interface format(s) does the Depository s system supply? b. How many institutions and end customers do you have? c. Describe the fee components of a merchant card processing relationship. Provide a list of all the fees to the District. State the association fees, discount rates, and the Depository's fee per transaction. d. Does the Depository have software available for implementation which allows on-line payments to the District through the Depository s portal? e. Describe the reporting functions and data availability. f. Detail billing options. g. Describe the authorization method/process used. How are incorrect authorizations reversed? h. Describe your debit card processing capabilities. Do you identify between debit and credit cards on BIN number? Can you program a debit card to the lowest cost network? i. Describe your transmission process. Describe the monitoring and notification process if transmissions fail. j. Is data imaging available on line? What is available online? When? For how long? k. Describe the dispute resolution process. l. Describe your security measures for internet transactions and unauthorized use. 3. Payroll Cards/Debit Cards The District is exploring the use of stored value cards (payroll card/debit card) as a payroll option for employees at a minimum. Card holders should have the ability to use the cards for purchases at point of sale as a debit card as well as cash withdrawals at financial institutions and ATMs. Last Modified: 2/7/13

16 RFP #1260 REQUEST FOR SEALED PROPOSAL FOR DEPOSITORY SERVICES Page 12 of 15 The purchasing ability of the cards must be limited to the stored value of the card. The District may choose to not pay for access fees for the employees issued the stored value cards. The District will be responsible for any marketing of the program and has total discretion on the distribution of the cards. The District will enroll the employees. The Depository is required to provide card holders with all processing and transaction information and reports. Services expected from the Depository would include, at a minimum: - embossing, encoding and distributing standard cards as directed by District - provision of paper/electronic statements to cardholders - administration of accounts to include maintenance of accounts, application of funds, authorization of transactions, related tracking - customer service functions a. Does the Depository currently provide this service? If so, how long has it been available? b. How many institutions and end customers use the service? Provide three comparable references for the service. c. Which program (authorization marks) does your program use? (Visa, MC, etc.) d. Describe the enrollment process. Is enrollment batched and web-based? e. Describe the manner by which funds will be made available to the card-holders. f. What are the inactivity levels for the program? Do these generate additional fees? Describe any other potential fees. g. Are all funding transmissions by standard ACH? Describe the data transmission requirements and deadlines. 4. Purchasing Cards The District may consider a purchasing card program during the contract period. Cards would be assigned to District employees for defined use. a. What card platform does the Depository support (MC, Visa)? Is a third party processor used? b. What, if any, information is available on-line? When? Describe data download and integration capabilities. Describe reporting capabilities c. What client support is available? How is it provided? d. Describe the diverse parameters and restrictions available for the card control. How many access levels are available? e. Discuss settlement and corporate liability terms. Include information on Depository support for the program, the Depository s experience, settlement terms on payment, security procedures, and license requirements. How will billing be received? f. Describe how cards are issued, deleted or replaced. How are lost/stolen cards handled? g. Provide three comparable references for the service. Last Modified: 2/7/13

17 RFP #1260 REQUEST FOR SEALED PROPOSAL FOR DEPOSITORY SERVICES Page 13 of Company Bank Program The District is interested in giving its employees the opportunity for enhanced, personal banking services. a. Does the Depository have a banking program available for District employees? b. List services provided under this program with applicable discounts or fees to the District or employee. c. Is availability of the program based on use of direct deposit or District employment? Last Modified: 2/7/13

18 RFP #1260 REQUEST FOR SEALED PROPOSAL FOR DEPOSITORY SERVICES Page 14 of 15 List of schedules/attachments provided by District: District audited financial statements: Attachment A, Volumes for Pricing Transactions (filled in with volumes) Attachment B, District s Current Account Structure Attachment C, District Investment Policy General Stipulations and Conditions of Proposal Conflict of Interest Questionnaire Certification Regarding Debarment, Suspension, and Other Responsibility Matters List of schedules/attachments to be provided by Depository: The following information must be included with the proposal: Copy of Depository audited financial statements or link to web site Corporate audited financial statements and the individual Depository s call report (for members of Depository holding companies) or link to web site UPBR reference Attachment A, Volumes for Pricing Transactions (filled in with rates) Sample Account Analysis Statement and User s Guide (if applicable) Attachment D, Sample Collateral Agreement (if applicable) Any agreements (including those not directly referenced in this RFP) which will be required to be executed under the contract (if applicable) Samples of major screens or web access for automated cash management (if applicable) Sample daily balancing report for Remote Deposit (if applicable) Sample account reconciliation reports (if applicable) Signature Sheet from General Stipulations and Conditions of Proposal Conflict of Interest Questionnaire Certification Regarding Debarment, Suspension, and Other Responsibility Matters Last Modified: 2/7/13

19 RFP #1260 REQUEST FOR SEALED PROPOSAL FOR DEPOSITORY SERVICES Page 15 of 15 Optional Acknowledgements The Depository confirms that interest earned will not be charged on the account analysis. If awarded the contract, the Depository will be required to review the then-current District Investment Policy and certify in writing to that review in accordance with the Public Funds Investment Act certifying that the Depository has sufficient controls in place to avoid transactions not authorized by the Policy. The Depository accepts the investment options and/or collateral conditions as specified in the District s Investment Policy. By virtue of the proposal submission, the Proposer acknowledges agreement with and acceptance of all provisions of the specifications except as expressly qualified in the proposal. Firm: Address: City/State/Zip: Phone No: Fax No: Address: Typed Name: Date: Last Modified: 2/7/13

20 ATTACHMENT A (see Pricing Sheet link for electronic version) RICHARDSON ISD - RFP # DEPOSITORY SERVICES Provide a price schedule for all services and include any one-time charges or set-up fees. Est. Unit Bank Explanatory Service Unit Basis Vol. Charge Notes, if applicable Account Deposit Services Master Account Maintenance Fee Per account 8 Subsidiary Account Maintenance Per account Money Market Account Maintenance Fee Per account Interest Bearing Accounts Maintenance Fee Per account ZBA Accounts Maintenance Fee Master Per account 1 ZBA Accounts Maintenance Subsidiary Per account 3 ZBA Account Transfers Investment Sweep - Master Account Investment Sweep - Subsidiary Accounts Per account/mo Per account/mo Debits Posted 2 Credits Posted 1 Debits Posted - Electronic 30 Credits Posted - Electronic 111 General Checks Paid Truncated 933 Checks Deposited Unencoded Items 6,936 Online DDA Statement Per statement 8 DDA Statement Per statement 9 Paper DDA Statement Resent Per statement 1 Image Deposit - Image Cash Letter 43 Image Deposit - Remote Deposit 1,494 Online Account Transfer Per transfer 1 Automated Services - Balance & Detail If Services are Bundled: Bundled Balance & Activity Reporting Monthly Maintenance Detail Item Fees Per month Per month/account If services are Un-Bundled (by Module) Online Information Services Per month 1 Online Information Reporting Maintenance Per month 1 Balance Reporting Module Maintenance Per account Daily Balance Reporting Per account 11 Previous day Reporting Per account 12 Previous Day Dr/Cr Items ACH Module Maintenance Per account/overall ACH Detail Reconciliation Module Maintenance Per account/overall Recon detail Stop Pay Module Maintenance Per account/overall Stop pay item Wire and Internal Transfer Module Maintenance Per account/overall Addenda reporting Positive Pay Module Per account/mo

21 ATTACHMENT A (see Pricing Sheet link for electronic version) RICHARDSON ISD - RFP # DEPOSITORY SERVICES Provide a price schedule for all services and include any one-time charges or set-up fees. PP Detail Est. Unit Bank Explanatory Service Unit Basis Vol. Charge Notes, if applicable Detail Transactions - All modules IDX Previous Day Account Per account 2 Previous Day Stored Item 1,491 Previous Day Item Stored for 2 Months 1,056 Previous Day Max Item 336 Current Day Stored Item 1,960 Previous Day Ext Item 2,037 Paid Item Inquiry Online Per inquiry 33 Deposits Commercial Account Maintenance Per account Banking Center Deposits 13 Night Drop Deposit 26 Items Deposited Items deposited Per deposit 9 On-us Items Local items Local Fed/RCPC Clearing City Items (in state) Per Item Other State Items 11th Fed Country Items Other 11th Fed RCPC Items Transit Item Clearing Encoding Charge Cash Vault Cash Vault Base Fee Processing Fee Standard Deposit Vault Per deposit 1,419 Standard Deposit Note Vault Per deposit Deposit Conditiioning Surcharge Per deposit 44 Currency Deposits Cash deposited Per $100 4,461 Strapped currency furnished Per strap 2 Currency Wraps Shipped Per strap Coin Deposits Full bag - loose coin Partial bag of loose coin Per bag 3 Rolled Coin Furnished Per roll 2 Minimum Change Order Nonstandard Bag Surcharge Per bag 1 Branch Order Processing Per Order Branch Per Deposit Per Deposit Branch Coin Shipped Per Shipment Change Order 3

22 ATTACHMENT A (see Pricing Sheet link for electronic version) RICHARDSON ISD - RFP # DEPOSITORY SERVICES Provide a price schedule for all services and include any one-time charges or set-up fees. Est. Unit Bank Explanatory Service Unit Basis Vol. Charge Notes, if applicable Nonstandard Currency Supplied Per $100 2 Deposit Corrections 26 Fax Notification - Deposit Correction Notice - Vault 14 Duplicate Fax Notification - Deposit Correction 17 Return Item - Return Items Return and Reclear 33 Return Items - Reclear Services Per account 2 Charge-backs 20 Return Check Notice Fax Return Check Notice Internet ACH Processing Service Monthly Maintenance (Base) Fee Per month/account 2 ACH Transactions Originated Debits Originated Credits Originated Electronic Consumer Credit Received/Posted Per Item 6,556 Electronic Corporate Credit Received/Posted Per Item 10 Electronic Debit Recived/Posted Electronic Originated Addenda 592 ACH Return Items 3 Return Notification Per Item Deletions or Reversal Charges 2 Transmission Per file 7 Transmission Setup/Test Per Item 1 ACH Setup Per Item 1 Fraud Filter - Review - Base Fee Per month 1 Fraud Filter - Review - Per Item 10 Fraud Filter - Add/Change 1 Reports - by Fax 4 Optional Reports - Electronic 1 ACH Notification of Change 2 Online ACH Notifications 1 ACH Positive Pay Account Maintenance Per account 1 Positive Pay Service Monthly Maintenance (Base) Fee* Per account or mo Positive Pay Item 1 charge with Partial Recon charge with Full Recon without recon services Transmission - File Transmission Positive Pay Return - Other than Fraud 1 Teller Positive Pay Issue Not Found 1 Imaging Imaging Maintenance Per month 6 CD Rom Service - Per Item 4,284

23 ATTACHMENT A (see Pricing Sheet link for electronic version) RICHARDSON ISD - RFP # DEPOSITORY SERVICES Provide a price schedule for all services and include any one-time charges or set-up fees. Est. Unit Bank Explanatory Service Unit Basis Vol. Charge Notes, if applicable CD Rom Service - Per Disk 2 Image Retrieval Online 260 Reconciliation ACH Monthly Maintenance Per Month Partial Recon Monthly Maintenance Per Month Partial reconciliation - detail Full recon monthly maintenance Per month 4 Full recon detail 2,750 Deposit Reconciliation - Mo Maintenance Per Month 2 Deposit Recon - per detail 1,643 Transmissions Per Transmission 6 Transmission Detail

24 ATTACHMENT A (see Pricing Sheet link for electronic version) RICHARDSON ISD - RFP # DEPOSITORY SERVICES Provide a price schedule for all services and include any one-time charges or set-up fees. Est. Unit Bank Explanatory Service Unit Basis Vol. Charge Notes, if applicable Safekeeping Service Monthly Maintenance Custody Per month 1 Clearing Fees Securities Received/ Delivered - DVP 2 Safekeeping Fees Per $1,000 1,000 Custody per Cusip/Holding Per cusip 23 Income Collection to DDA 7 Asset Maintenance Monthly Fee Per $1,000 60,117 Stop Pays Stop Pays (automated) 22 Stop Pay Item Inquiry Online 1 Wire Transfers Service Monthly Maintenance* Per month 1 Online Wire Monthly Maintenance Fee Per month 1 Incoming - Domestic Straight 3 Outgoing - repetitive - automated,domestic 8 Outgoing - non-repetitive - automated,domestic 3 Book Transfer Internet Initiated 1 Wire Advices Faxed/Mailed Wire Book Maintenance Temporary Storage 12 OPTIONAL SERVICES REQUESTED Remote capture of checks One-time set-up or training fees One time Monthly maintenance Per month/card 1 Capture and transmission fee from provider 1,539 On-us Item Local Item Transit Item Online Image Storage 73,633 Remote Check Scanner Maintenance Per month 1 Deposit Correction - Remote Deposit 2 RCK Services RCK Maintenance RCK Detail Per account/mo s Pay/Debit Cards Service Monthly Maintenance Processing and servicing Implementation fee Initial system design and development Enrollment Corrections Per month Per card One time One time Per card Employee Charges ATM Cash Withdrawal - On-us ATM Cash Withdrawal - non-bank Cash Advance OTC

25 ATTACHMENT A (see Pricing Sheet link for electronic version) RICHARDSON ISD - RFP # DEPOSITORY SERVICES Provide a price schedule for all services and include any one-time charges or set-up fees. Est. Unit Bank Explanatory Service Unit Basis Vol. Charge Notes, if applicable ATM Balance Inquiry Overdraft Fee Lost/stolen replacement fee Per card Standard reporting Purchasing Cards Service Monthly Maintenance Card Issuance Fee Transaction Fee License Fee Rebate on amt purchased <$1mm Per month Per card Per month Merchant Card Services Fees One-time set up fee Application fees: First location Locations 2-5 Locations >5 Annual fee / Monthly Maintenance fee Per month/location Monthly Statement Fee Per month Supply fee Per month Minimum processing fee Internet Set-up fee Per location Credit Card Processing fees VISA CPS-2 Interchange % Assocation % Visa fee $ Bank fee $ MC Merit III Interchange % Assocation % MC fee $ Bank fee $ Visa Check Card Interchange (Signature) % Assocation % Visa fee $ Bank fee $ MC Debit Card Interchange (Signature) % Assocation % MC fee $ Bank fee $ Debit Card Processing MC/Visa Authorization Fees Voice authorizations Address verification Terminal Authorizations MC Electronic authorization Discover Electronic authorization AmEx Electronic authorization Processing Fees Chargeback processing Batch settlement fee

26 ATTACHMENT A (see Pricing Sheet link for electronic version) RICHARDSON ISD - RFP # DEPOSITORY SERVICES Provide a price schedule for all services and include any one-time charges or set-up fees. Transmission Fee Transmission - Item Est. Unit Bank Explanatory Service Unit Basis Vol. Charge Notes, if applicable Other Collected Overdraft Interest Charge $ 1,731 FDIC Assessment $ 35,416,538 Controlled Disbursement Maintenance Per account 1 Controlled Disbursement Checks Paid 1,722 Controlled Disbursement Funding Credits Per transaction 21 Nonrelationship Customer Checks Cashed 34 Average Collected Balance $ 12,306,232 Average Ledger Balance $ 11,098,236

27 ATTACHMENT B RFP #1260 DEPOSITORY SERVICES FOR RICHARDSON INDEPENDENT SCHOOL DISTRICT DISTRICT S CURRENT ACCOUNT STRUCTURE The District presently maintains accounts as listed below. The District reserves the right to open additional accounts or to close accounts during the course of the depository contract. Type of Account Number of Interest Bearing/ Accounts Non-Interest Bearing General Operating Account 1 NIB Debt Service Fund 1 NIB Food Service Fund 1 NIB Capital Projects Fund 1 NIB Accounts Payables Controlled Disbursement 1 NIB Payroll Clearing ZBA 1 NIB Flexible Spending ZBA 1 NIB Worker s Compensation ZBA 1 NIB Savings Account 1 IB

28 Richardson ISD OTHER REVENUES INVESTMENTS CDA (LOCAL) POLICY PRUDENCE OBJECTIVES INVESTMENT STRATEGY It is the policy of the District to invest public funds in a manner that ensures the safety of invested funds, maintains sufficient liquidity to provide for the daily needs of the District, and provides the highest investment return. All investments made by the District shall comply with the Public Funds Investment Act (Texas Government Code Chapter 2256, Subchapter A) and all federal, state, and local statutes, rules, and regulations. Investments shall be made with judgment and care, under thenprevailing circumstances, which a person of prudence, discretion, and intelligence exercises in the management of the person s own affairs, not for speculation, but for investment, considering the probable safety of the capital, as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the prudent person standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security credit risk or market price changes, provided that deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. In order of importance, the primary objectives of the District s investment activities are: Safety Investments of the District shall be selected in a manner that seeks to ensure the preservation of capital in the overall portfolio. To meet this objective, the portfolio must be diversified in such a way that potential losses of individual securities do not exceed the income generated from the remainder of the portfolio. Liquidity The District s investment portfolio will remain sufficiently liquid to enable the District to meet all operating requirements that can be reasonably anticipated based upon cash flow projections, which are to be prepared on a combination of a weekly, monthly, and annual basis. Return on Investment The District s investment portfolio shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with the District s investment risk constraints and the cash flow characteristics of the portfolio. The District shall have a written investment strategy for each fund or group of funds it controls. Additional descriptions of investment DATE ISSUED: 3/7/ of 9 LDU CDA(LOCAL)-X

29 Richardson ISD OTHER REVENUES INVESTMENTS CDA (LOCAL) objectives and strategies may be found in the Administrators Operating Guide (AOG). Covered funds shall include the: COVERED FUNDS 1. General fund. 2. Special revenue fund(s) including funds used to account for federal, state, and local grants, as well as the food service fund and the campus activity fund. 3. Debt service fund(s). 4. Capital project fund(s). 5. Proprietary fund(s) including the funds used to account for the workers compensation program. 6. Trust and agency funds including the student activity fund. The District shall follow the investment strategies listed below (in order of importance) for each covered fund: 1. Each investment option shall be reviewed to ensure understanding of the suitability of the investment to the financial requirements of the District; 2. Investments shall be selected that provide preservation and safety of invested funds; 3. Investments shall support the District s objective to remain sufficiently liquid; 4. Investments shall be marketable if the need arises to liquidate invested funds before maturity; 5. The investment type shall be consistent with the Board s desired diversification of the investment portfolio; and 6. All invested funds of the District shall attain a rate of return commensurate with the District s investment risk constraints and the cash flow characteristics of the portfolio. The District shall diversify its investments in all funds by security type and institution. The District shall consider purchase of high quality short-term to medium-term securities that will complement each other in a laddered or liability-matching portfolio structure. In addition to the strategies explained above for the debt service fund, the District may purchase securities that have maturities longer than one year provided the legal limits are not exceeded. The investment committee shall review the investment strategies annually and make recommendations for revision as necessary. The investment committee includes, but is not limited to, the trea- DATE ISSUED: 3/7/ of 9 LDU CDA(LOCAL)-X

30 Richardson ISD OTHER REVENUES INVESTMENTS CDA (LOCAL) AUTHORITY FOR INVESTMENT PROGRAM QUALITY AND CAPABILITY OF INVESTMENT MANAGEMENT INVESTMENT TRAINING ETHICS AND CONFLICTS OF INTEREST surer of the Board, the assistant superintendent of finance and support services, the director of treasury services, and the cash manager. In accordance with the Public Funds Investment Act (PFIA), the responsibility for conducting investment transactions resides with the Board. Management oversight responsibility for the investment program is delegated to the assistant superintendent of finance and support services, who shall develop and maintain written procedures for the operation of the investment program consistent with these policies. Procedures to be set forth in the AOG should include reference to safekeeping, bond market association repurchase agreements, depository contracts, and collateral agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures set forth in the AOG. The assistant superintendent of finance and support services shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Designated investment officers of the District shall participate in periodic training through courses and seminars offered by professional organizations, associations, and other independent sources approved by the investment committee to ensure the quality and capability of investment management in compliance with the PFIA. The District s designated investment officers shall attend an investment training session not less than once every two fiscal years and shall receive not less than ten hours of instruction relating to investment responsibilities. The investment training shall be provided by an independent source approved by the investment committee and shall comply with the PFIA. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or that could impair their ability to make impartial decisions. Employees and investment officers shall disclose to the Superintendent any material financial interest in financial institutions that could conduct business within this jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the District, particularly with regard to the time of purchases and sales. A District investment officer who has a personal relationship [see Gov t Code ] with a business organization offering to engage in an investment transaction with the District, or who is related within the second degree by affinity or con- DATE ISSUED: 3/7/ of 9 LDU CDA(LOCAL)-X

31 Richardson ISD OTHER REVENUES INVESTMENTS CDA (LOCAL) sanguinity to a qualified representative in that organization, shall file a statement disclosing that personal business interest in the manner described in the PERSONAL INTEREST section of CDA(LEGAL). AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS COMPETITIVE BIDDING The investment officer will maintain a list of financial institutions, approved by the investment committee, who are authorized to provide investment services. In addition, a list shall also be maintained of approved security brokers/dealers selected by creditworthiness who are authorized to provide investment services in the state of Texas. These brokers/dealers may include primary dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule). No public deposit shall be made except in a qualified public depository as established by state laws. All financial institutions and brokers/dealers who desire to become qualified bidders for investment transactions must supply the investment officer with the following: 1. Audited financial statements; 2. Proof of Financial Industry Regulatory Authority (FINRA) certification; 3. Trading resolution; 4. Proof of registration in the state of Texas; 5. Completed broker/dealer questionnaire; and 6. Certification of having read the District s investment policy. Investments shall be made only with business organizations and their qualified representatives that have certified in writing that reasonable procedures and control have been implemented in an effort to preclude unauthorized transactions with the District. Gov t Code (k)(2) This information shall be reviewed by the investment officer and a recommendation for addition to the list of approved bidders shall be submitted to the investment committee for approval. An annual review of the financial condition and registration of new qualified bidders shall be conducted by the investment committee. The District shall require competitive bidding for all individual security purchases and sales except for: 1. Transactions with money market mutual funds and local government investment pools, and DATE ISSUED: 3/7/ of 9 LDU CDA(LOCAL)-X

32 Richardson ISD OTHER REVENUES INVESTMENTS CDA (LOCAL) AUTHORIZED AND SUITABLE INVESTMENTS 2. Treasury and agency securities purchased at issue through an approved broker/dealer or financial institution. From those investments authorized by law and described in CDA (LEGAL), the Board shall permit investment of District funds in the following investment types only, consistent with the strategies and maturities defined in this policy: 1. Obligations of the United States or its agencies and instrumentalities; direct obligations of the state of Texas or its agencies; other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the state of Texas, the United States, or its instrumentalities, including obligations that are fully guaranteed or insured by the FDIC or by the explicit full faith and credit of the United States; obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent. Gov t Code Certificates of deposit (CDs) issued by a depository institution that has its main office or branch office in Texas, that is guaranteed or insured by the FDIC or its successor and is secured by obligations described in item 1 above, including mortgagebacked securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates or are secured in any other manner and amount provided by law for the deposits of the investment entity; or CDs invested through an approved broker or depository institution that has its main office or a branch office in Texas, is appointed by the District as custodian, and who arranges for the deposit of funds in CDs in one or more federally insured depository institutions, in which the full amount of the principal and accrued interest is insured by the United States or its instrumentalities. Gov t Code Bids for certificates of deposit may be solicited orally, in writing, electronically, or in any combination of those methods. Gov t Code (c) 3. Fully collateralized repurchase agreements that have a defined termination date, are secured by a combination of cash and obligations of the United States or its instrumentalities, are pledged to the District, held in the District s name, and deposited with a third party selected and approved by the investment committee, and placed through a primary government securities dealer, as defined by the Federal Reserve or a bank domiciled in Texas. Gov t Code DATE ISSUED: 3/7/ of 9 LDU CDA(LOCAL)-X

33 Richardson ISD OTHER REVENUES INVESTMENTS CDA (LOCAL) The District shall have a master repurchase agreement signed with the bank or dealer with whom all repurchase agreements are traded. 4. No-load money market mutual funds that are regulated by the SEC, have a dollar-weighted average stated maturity of 90 days or fewer, are invested exclusively in obligations described by items 1 4 above, and include in their investment objectives the maintenance of a stable net asset value of $1 for each share. Investments in mutual funds shall be limited to the percentages authorized by Government Code (c). Gov t Code A public funds investment pool meeting the requirements of Government Code Gov t Code The District currently invests in the following public funds investment pools: a. Lone Star Investment Pool (maximum dollar-weighted average maturity is 60 days); b. TexPool (maximum dollar-weighted average maturity is 60 days); and c. TexSTAR (maximum dollar-weighted average maturity is 60 days). 6. Guaranteed investment contracts that have a defined termination date and are secured by obligations described by Government Code (a)(1), excluding those obligations described by Government Code (b), in an amount at least equal to the amount of bond proceeds invested under the contract; such obligations must be pledged to the District and held in the District s name with an approved third party. Gov t Code EFFECT OF LOSS OF REQUIRED RATING EXISTING INVESTMENTS COLLATERAL The District shall take all prudent measures consistent with its investment policy to liquidate an investment that does not have the minimum rating. The District is not required to liquidate investments that were authorized investments mandated by the Board-adopted investment policy at the time of purchase. Collateralization shall be required on two types of investments: 1. Certificates of deposit, and 2. Repurchase agreements. DATE ISSUED: 3/7/ of 9 LDU CDA(LOCAL)-X

34 Richardson ISD OTHER REVENUES INVESTMENTS CDA (LOCAL) In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 110 percent of market value of principal and accrued interest. The District chooses to limit collateral to those items that are listed as authorized investments above. Collateral shall always be held by an independent third party with whom the District has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the District and retained. The District shall grant the right of collateral substitution with prior notice and consent from the District. INTEREST RATE RISK MARKET PRICING MONITORING RATING CHANGES SAFEKEEPING AND CUSTODY DIVERSIFICATION To reduce exposure to changes in interest rates that could adversely affect the value of investments, the District shall use final and weighted-average-maturity limits and diversification. The District shall monitor interest rate risk using weighted average maturity and specific identification. Market prices shall be monitored for all investments acquired with public funds as described by Government Code (a)(1). Prices shall be acquired through the District s investment software, which downloads software based on the investments CUSIP number. In accordance with Government Code (b), the investment officer shall develop a procedure to monitor changes in investment ratings and to liquidate investments that do not maintain satisfactory ratings. All security transactions, including collateral for repurchase agreements, entered into by the District shall be conducted on a deliveryversus-payment (DVP) basis. Securities shall be held by a thirdparty custodian designated by the investment committee and evidenced by safekeeping receipts. The District shall diversify its investments by security type and institution. The asset mix of the District s portfolio is expressed in terms of maximum commitment so as to allow sufficient flexibility to take advantage of market considerations within the context of this policy. The asset mix requirements are as follows: Money Market Accounts Certificates of Deposit U.S. Treasury Obligations U.S. Government Securities 10% (maximum) 50% (maximum) 100% (maximum) 100% (maximum) DATE ISSUED: 3/7/ of 9 LDU CDA(LOCAL)-X

35 Richardson ISD OTHER REVENUES INVESTMENTS CDA (LOCAL) MAXIMUM MATURITY INTERNAL CONTROL PERFORMANCE STANDARDS MARKET YIELD (BENCHMARK) REPORTING Repurchase Agreements Public Funds Investment Pools Guaranteed Investment Contracts 15% (maximum) 100% (maximum) 25% (maximum) The District may elect to use a singular investment instrument, either a flexible repurchase agreement, as defined in Section 9.3, or a guaranteed investment contract, as defined in Section 9.7 for the face value of the notes plus any accrued but unpaid interest. The District may elect to use a singular investment instrument, either a flexible repurchase agreement, as defined in Section 9.3, or a guaranteed investment contract, as defined in Section 9.7 for the bond proceeds plus any accrued interest received upon delivery of such proceeds. To the extent possible, the District shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the District shall not directly invest in securities maturing more than 24 months from the date of purchase. However, securities with a maturity of greater than 12 months shall not exceed 20 percent of the total portfolio. Bond proceeds may be invested in securities exceeding 12 months if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. The investment portfolio, as well as compliance with this policy, shall be reviewed annually by the investment committee and the District s external auditor in conjunction with the annual audit of the District s financial statements. Gov t Code (m) The investment portfolio shall be designed with the objective of obtaining a rate of return through budgetary and economic cycles, commensurate with the investment risk constraints and cash flow needs. The District s investment strategy is a passive one, in that the majority of securities shall be purchased and held to maturity. Additionally, cash inflows and outflows shall be monitored daily. Given this strategy, the basis used by the investment officer to determine whether market yields are being achieved shall be the 90-day U.S. Treasury Bill and the average Fed Funds rate. The assistant superintendent of finance and support services shall present to the Board a quarterly report, prepared by the investment officer, on the investment portfolio, including the cost of investments and market value as of quarter-end currently held in the portfolio, a breakdown of the percentage of portfolio of each in- DATE ISSUED: 3/7/ of 9 LDU CDA(LOCAL)-X

36 Richardson ISD OTHER REVENUES INVESTMENTS CDA (LOCAL) strument, the average buy yield versus the established benchmark, as well as a report on the maturities of the portfolio and their percentages of the portfolio. On a quarterly basis, the investment officer shall prepare a report that includes a summary statement by fund with: 1. The beginning market value for the period, the ending market value for the period, and the fully accrued interest for the period. 2. The book value and market value of each separately invested asset at the end of the reporting period by the type of asset and fund type invested. 3. The maturity of each investment. 4. The compliance of the investment portfolio as it relates to this policy and the District s investment strategy. The District shall retain an independent auditor to formally review its investment reports at least annually; the auditor shall report the results of the review to the Board. INVESTMENT POLICY ADOPTION The District s investment policy shall be adopted by resolution of the Board. The policy shall be reviewed annually and approved by the Board. DATE ISSUED: 3/7/2012 ADOPTED: 9 of 9 LDU CDA(LOCAL)-X

37 RICHARDSON INDEPENDENT SCHOOL DISTRICT Richardson, Texas GENERAL STIPULATIONS AND CONDITIONS OF PROPOSAL PROFESSIONAL SERVICES IF THERE ARE CONTRADICTIONS BETWEEN THE GENERAL STIPULATIONS AND CONDITIONS OF BID/ PROPOSAL AND THE SPECIFICATIONS, WRITTEN OR VERBAL, THE GENERAL STIPULATIONS AND CONDITIONS OF PROPOSAL SHALL CONTROL. I. INVITATION TO SUBMIT STATEMENT OF QUALIFICATIONS: A. Richardson Independent School District invites all interested and qualified firms to submit proposals in accordance with directions available in the Purchasing Department, 970 Security Row, Richardson, Texas, B. For the purpose and clarity of this document only, the terms RISD or District will herein mean the Richardson Independent School District and/or the Board of Trustees of Richardson, Dallas County, Texas. As used herein, the term Proposer means any reliable person, entity, broker, vendor, and/or contractor who wants to submit a proposal in response to a Request for Statement of Qualifications (RFQ). The term Proposal refers to all responses or proposals submitted hereunder. C. The District will receive sealed Proposals until date and time indicated on the RFQ cover. Proposals must be delivered to the Purchasing Department, 970 Security Row, Richardson, Texas, where they will be opened. II. PROPOSAL PREPARATION, SPECIFICATIONS SHEET, AND PROPOSAL OPENING: A. An authorized representative of the firm must sign all Proposals. It is the intent of this RFQ that should a given Proposal be accepted, it will automatically become a part of a binding contract. B. At the time RISD opens the Proposals, the responsible Buyer, or his/her delegated support staff member shall open and record all Proposals received. Sufficient time will be allotted to analyze all Proposals received and the final recommendations shall be prepared for District review and approval. The District will follow the review process described in the RFQ. III. BILLING AND PAYMENT/DISCOUNTING: A. All invoices are to be submitted in duplicate and mailed in accordance with instructions as shown on purchase order (unless otherwise noted). All invoices shall be forwarded to: 2/13/2013

38 RICHARDSON INDEPENDENT SCHOOL DISTRICT ATTENTION: ACCOUNTS PAYABLE DEPARTMENT 970 SECURITY ROW RICHARDSON, TEXAS B. Invoices will be returned for correction unless they contain a detailed description of the invoiced services that is sufficient to allow the District to ascertain the specific services provided and the dates of those services provided. Any expenses that the District has agreed to reimburse shall be itemized. RISD will not be responsible for normal overhead or overtime costs unless the District has specifically agreed to such expenses in advance. The original and one copy of the invoice shall be forwarded to the office listed above. C. The standard terms for payment are Net 30 days from receipt of complete/correct invoice. All discounts, including prompt payment, shall be included in any bid or proposal price(s) submitted. IV. COLLUSION: All Proposers shall sign the appropriate certification as provided on the signature sheet. The District may reject any Proposal that does not include the required certification. V. COMPLIANCE WITH SPECIFICATIONS: A. The Proposer shall abide and comply with the true intent of the specifications and not take advantage of any unintentional error or omission. B. The District reserves the right to reject any or all Proposals that comply with these specifications, or to accept a higher Proposal price that complies, when, in the judgment of the District, such Proposal offers additional value or function, which justifies the difference in price. VI. DEVIATIONS FROM SPECIFICATIONS: All requested deviations from the specifications and requirements stated in the RFQ must be specified in writing by the Proposer at the time the Proposal is submitted. The absence of a written list of requested deviations or exceptions when the Proposal is submitted will hold the firm strictly accountable to the District to the specification or requirement as written. The District reserves the right to reject or modify any requested exception or deviation. Excessive exceptions may result in disqualification of a Proposal. VII. ERRORS IN PROPOSALS: Proposers and their authorized representatives shall fully inform themselves as to the conditions, requirements, and specifications before submitting a Proposal. Failure to do so will be at the firm s risk. 2/13/2013

39 VIII. QUALITY OF PROFESSIONAL SERVICE: RISD expects that each vendor will perform all contracted services in a good, thorough and professional manner consistent with industry and professional standards for similar services. IX. SIGNATURE TO BIDS: Each Proposal must show the full business address and telephone number of the firm and be signed by the person or persons legally authorized to sign contacts. All correspondence concerning the Proposal and contract, including Notice of Award, and Purchase Order, will be mailed or delivered to the address shown on the Proposal in the absence of written instructions from the Proposer to the contrary. The vendor is responsible for notifying RISD in writing of any change of company name, address, or contact person. X. TAXES: A. The District is exempt from the payment of the Texas Sales Tax. Exemption Certificates for the Federal Excise Tax may be furnished upon request. B. Prices quoted shall not include federal excise or state sales and use taxes. C. The District s Tax Identification Number is XI. DISPUTE RESOLUTION: Any disputes arising out of Proposal or subsequent contract shall be resolved informally, where possible, through conference with the District official responsible for the professional service area in question. Any dispute that cannot be promptly resolved through informal conference shall be presented to the District in writing pursuant to Board Policy (GF) Public Complaints. The timelines set out in that policy shall be followed. A copy of the policy is available at or from the Director of Purchasing. XII. GOVERNING LAW/VENUE: Any contract resulting from the Proposal and all matters related thereto shall be construed according to the laws of the State of Texas. Venue for any disputes between the parties shall lie in Dallas County, Texas. 2/13/2013

40 SIGNATURE SHEET My/our signature below confirms that I/we: 1. propose to provide professional services to the Richardson Independent School District, as described in the accompanying proposal; 2. certify that this Proposal is made without any previous understanding, agreement, or connection with any person, firm, or corporation making a Proposal for the same services and is in all respects fair and without collusion or fraud; and 3. certify that this firm is an equal opportunity employer and that all employment decisions are made without regard to the color, race, sex, national origin, religion, age, or disability status of otherwise qualified individuals. COMPANY NAME: SIGNATURE: By: (Print Name) Title: DATE SIGNED: ADDRESS: TELEPHONE: FAX : TERMS: RETURN TO: RICHARDSON INDEPENDENT SCHOOL DISTRICT 970 SECURITY ROW RICHARDSON, TX Return completed sheet with proposal 2/13/2013

41 RICHARDSON INDEPENDENT SCHOOL DISTRICT STATEMENT OF EQUAL OPPORTUNITY AND NON-DISCRIMINATION The Richardson Independent School District is committed to fair and equal competition among all vendors. It is the policy of the Richardson ISD to encourage participation in the competitive bid process by all interested parties. The Richardson ISD does not discriminate against any otherwise qualified vendor because of the vendor s race, color, national origin, age, religion, sex, or disability. 2/13/2013

42 CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS I. DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION (a) In accordance with the provisions of Appendix A to 49 CFR (Code of Federal Regulations), Part 29, the offeror certifies to the best of the offeror s knowledge and belief, that it and its principals: (1) are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal, State or Local Government department or agency; (2) have not within a three (3) year period preceding this offer been convicted of or had a civil judgment rendered against them for the commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes, or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (3) are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local with commission of any of the offenses enumerated in (a)(2) above; and (4) have not within a three (3) year period preceding this offer had one or more public transactions (Federal, State, or local) terminated for cause or default. (b) Where the offeror is unable to certify to any of the statements above, the offeror shall attach a full explanation to this offer. (c) For any subcontract at any tier expected to equal or exceed $25,000: (1) In accordance with the provisions of Appendix B to 49 CFR, Part 29, the prospective lower tier subcontractor certifies, by submission of this offer, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. (2) Where the prospective lower tier participant is unable to certify to the statement, above, an explanation shall be attached to the offer. (3) This certification (specified in paragraphs (c)(1) and (c) (2), above, shall be included in all applicable subcontracts and a copy kept on file by the prime contractor. The prime contractor shall be required to furnish copies of the certifications to the Authority upon request. 2/13/2013

43 II. FELONY CONVICTION NOTIFICATION AND CRIMINAL BACKGROUND CHECK (a) (b) (c) Offeror must give advance notice to the Owner if the person or an owner or operator of the business entity has been convicted of a felony. The notice must include a general description of the conduct resulting in the conviction of a felony. The District may terminate any Agreement or if the Owner determines that the person or business entity failed to give notice as required by this paragraph or misrepresented the conduct resulting in the conviction. This paragraph requiring advance notice does not apply to a publicly held corporation. Offeror will obtain criminal history record information that relates to an employee, applicant for employment, or agent of the Offeror if the employee, applicant, or agent has or will have continuing duties related to the contracted services; and the duties are or will be performed on school property or at another location where students are regularly present. The Offeror certifies to the Owner before beginning work and at no less than an annual basis thereafter that criminal history record information has been obtained. Offeror shall assume all expenses associated with the background checks, and shall immediately remove any employee or agent who was convicted of a felony, or misdemeanor involving moral turpitude, as defined by Texas law, from Owner property or other location where students are regularly present. District shall be the final decider of what constitutes a location where students are regularly present. Offeror s violation of this section shall constitute a substantial failure. If the Offeror is the person or owner or operator of the business entity, that individual may not self-certify regarding the criminal history record information and its review, and must submit original evidence acceptable to the District with this Agreement showing compliance. Signature below acknowledges compliance with Section I. DEBARMENT, SUSPENSION, INELIGILITY AND VOLUNTARY EXCLUSION and Section II. FELONY CONVICTION NOTIFICATION AND CRIMINAL BACKGROUND CHECK. SIGNATURE OF OFFEROR: DATE: PRINTED/TYPED NAME OF OFFEROR: COMPANY NAME: TEL#: Complete and return with sealed bid or proposal. 2/13/2013

44 RICHARDSON INDEPENDENT SCHOOL DISTRICT PURCHASING DEPARTMENT Notice to Vendors: Conflict of Interest Questionnaire Required by Chapter 176 of the Texas Local Government Code Effective January 1, 2006, any person or entity who contracts or seeks to contract with RISD for the sale or purchase of property, goods, or services (as well as agents of such persons) (hereafter referred to as Vendors) are required to file a Conflict of Interest Questionnaire with the District. Each covered person or entity who seeks to or who contracts with RISD is responsible for complying with any applicable disclosure requirements. RISD will post the completed questionnaires on its website. The Conflict of Interest Questionnaire must be filed: No later than the seventh business day after the date that the Vendor begins contract discussions or negotiations with the government entity, or submits to the entity an application, response to a request for proposal or bid, correspondence, or other writing related to a potential agreement with the entity. The Vendor also shall file an updated questionnaire not later than September 1 of each year in which a covered transaction is pending, and the seventh business day after the date of an event that would make a statement in the questionnaire incomplete or inaccurate. Note: A Vendor is not required to file an updated questionnaire if the person had filed an updated statement on or after June 1, but before September 1 of the year. Please sign and return the following Conflict of Interest Questionnaire from the Texas Ethics Commission with your bid/proposal to the following address: Richardson Independent School District Attn: Purchasing Department 970 Security Row Richardson, Texas The Local Government Officers of the Richardson Independent School District are: Board of Trustees: Superintendent: Kim Quirk Karen Ellis Kim Caston Lanet Greenhaw Karen Holburn Kris Oliver Adam Meierhofer Kay Waggoner, Ph.D.

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