EDMOND PUBLIC SCHOOLS

EDMOND PUBLIC SCHOOLS Empowering all students to succeed in a changing society March 1, 2017 Request for Proposal Banking Services Edmond Public Schools is requesting proposals from financial institutions to provide banking services for the district beginning as soon as feasible with the option to renew annually. Proposals will be accepted until March 20, 2017 at 2:00 p.m. Proposals received after this time will not be accepted. One original and two (2) copies of your proposal must be submitted. Responses must be sealed and clearly marked on the outside of the envelope with the name and address of the financial institution, opening date and time. Fax/email responses cannot be accepted. Address, mail or deliver all proposals and accessory documents to: Jennifer Harraman Banking Services Proposal Edmond Public Schools 1001 W. Danforth Edmond, OK 73003 Thank you for your interest in Edmond Public Schools. Jennifer Harraman Purchasing Agent Page 1 of 16

EDMOND PUBLIC SCHOOLS REQUEST FOR PROPOSAL FOR BANKING SERVICES TABLE OF CONTENTS I. INTRODUCTION A. General Information B. Term of Engagement C. Institution Requirements II. DESCRIPTION OF THE SCHOOL DISTRICT A. Key Personnel B. Background Information C. Banking Arrangements and Transaction Data III. NATURE OF SERVICES REQUIRED A. Bank Accounts B. Pledged Collateral C. Interest and Fees D. Deposits E. Payroll Direct Deposit F. Check Clearing G. Internet Banking H. Overdraft Agreement I. ATMs J. Employee Banking K. Statements and Research Tools L. Supplies M. Other IV. PROPOSAL REQUIREMENTS A. General Requirements B. Other Documentation Requirements V. EVALUATION PROCEDURES A. Review of Proposals B. Evaluation Criteria C. Oral Presentations D. Final Selection E. Right to Reject Proposals Page 2 of 16

APPENDICES A. Proposer Warranties B. Business Relationship Affidavit C. Non-Collusion Affidavit Page 3 of 16

EDMOND PUBLIC SCHOOLS REQUEST FOR PROPOSAL FOR PROFESSIONAL BANKING SERVICES I. INTRODUCTION A. General Information Edmond Public Schools ( District ) is requesting proposals from qualified financial institutions to provide banking services for the District beginning as soon as feasible with the option to renew annually. There is no expressed or implied obligation for Edmond Public Schools to reimburse responding financial institutions for any expenses incurred in preparing proposals in response to this request. Any inquiries concerning the request for proposal should be addressed in written form to Jeanise Morton, Business Manager, Edmond Public Schools, 1001 W. Danforth Rd. Edmond, OK 73003 or by email at jeanise.morton@edmondschools.net. During the evaluation process, Edmond Public Schools reserves the right, where it may serve the district's best interest, to request additional information or clarification from proposers, or to allow corrections of errors or omissions. At the discretion of Edmond Public Schools, financial institutions submitting proposals may be requested to make oral presentations as part of the evaluation process. Edmond Public Schools reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the financial institution of the conditions contained in this request for proposal, unless clearly and specifically noted in the proposal submission and confirmed in the contract between Edmond Public Schools and the financial institution selected. B. Term of Engagement A minimum five (5) year relationship is anticipated, subject to the annual review and recommendation by the business office and the satisfactory negotiation of terms and services. It is anticipated the selection of a financial institution will be completed by April 3, 2017. If the contract award is not to the district s current bank, the transfer of service may begin as soon as the contract is awarded and shall be completely in place as soon as possible thereafter. Page 4 of 16

C. Institution Requirements 1. Institution must be chartered under the laws of the United States and/or the State of Oklahoma and authorized by law to do banking business in the state of Oklahoma. The institution must have full service branch(es) located in Edmond, Oklahoma which service walk-in, drive-through, night deposit and courier transactions. Proposal shall include a list of branch locations in Edmond. 2. Institution must be in good financial health and in good regulatory standing. 3. Any recent or foreseen merger or acquisition must be disclosed. 4. Bank branch(es) must have adequate staffing and resources to handle the district s transaction volume, including cash/coin deposits from athletic events, school activities, and fundraising events. 5. The bank shall assign a local bank officer and account service representative to handle the District s accounts and serve as a point of contact for all inquiries. II. DESCRIPTION OF THE SCHOOL DISTRICT A. Key Personnel Cynthia Benson, Board President (signatory) Bret Towne, Superintendent Lori Smith, Chief Financial Officer and Treasurer (signatory) Jeanise Morton, Business Manager and Assistant Treasurer Judy Pendergraft, Board Clerk (signatory) B. Background Information Edmond Public Schools serves an approximate student population of 24,000 and is currently the third largest public school district in Oklahoma in terms of enrollment. The District currently operates 17 elementary schools, 6 middle schools, 3 comprehensive high schools, an alternative high school, and an early childhood center. The district s general fund operating budget for 2016-17 is $143,294,620. State aid funding (representing 21% of general fund collections) is received ratably over 11 months from August to June. Property tax collections (representing 45% of collections) are light July through November, heavy in December, January and April, and moderate in February, March, May and June. The district s annual payroll is approximately $132 million, which includes salaries and benefits for approximately 2,700 employees. All employees of Edmond Public Schools are paid via direct deposit as a condition of employment. Page 5 of 16

Pay for most employees is annualized over 12 months. Direct deposit files for the summer months are created before the end of June and held by the district for ACH submissions in July and August. Certified personnel are paid monthly; support personnel are paid semi-monthly. Edmond Public Schools regularly issues bonds to finance capital projects associated with the District s sustained enrollment growth. Bond proceeds are generally received twice per year and bond principal and interest payments are made according to a semi-annual payment schedule. The district s credit rating with Standard and Poors is AA stable. More detailed information on the school district and its finances can be found in budget documents, annual financial reports, and policies and procedures manuals. To review any of these documents, visit the district s web site at www.edmondschools.net or contact Lori Smith at (405) 340-2808 or lori.smith@edmondschools.net. C. Banking Arrangements and Transaction Data The District manages a variety of interest-bearing checking accounts (see Section III, A). The district s business office manages the main depository and all clearing accounts. Each school has a cafeteria which collects cash and deposits to a central account. Each school has its own activity fund bank account. The District contracts with a licensed, bonded courier service for daily teller deposits. Secondary sites and the district office utilize remote deposit capture for check deposits. Checks deposited by elementary sites are delivered via courier for teller deposit. Courier deposits are managed in locked, zippered bags. The bank and the site hold keys; the courier service does not. Each deposit is logged with pickup and delivery receipts. Each bag is uniquely numbered and identified with the site name. The courier drops the current deposit with the bank and picks up the prior day deposit (with deposit receipts inside) for delivery to the school. The courier does not wait for the deposit to be worked. Bank personnel must be able to coordinate with the District and the district s courier to ensure proper bag tracking, deposit processing, and bag safekeeping. Account and transaction data provided on the following page is based on the 2016 calendar year. The District makes no representation about the transaction and balance levels expected in the future. Page 6 of 16

2016 Data for Banking RFP Main Depository Check Clearing, Tax Clearing Activity Funds Bank Card Clearing Insured Cash Sweep Misc. Accounts (Child Nutrition Depository, MAPS, Bagby) Total Number of Accounts 1 2 33 1 1 3 41 Average Balances $36,617,483 $14 $122,422 $24,408 $19,547,803 $189,972 $56,502,102 Peak month average-jan 2016 Total relationship $104,500,000 Peak day Jan 14, 2016 Total relationship $130,700,000 Number of Transactions: Checks - 6,575 9,618 - - 3 16,196 ACH Files 150 150 ACH Debits 98 176-12 - - 286 Outgoing Wire Transfers 38 - - - - - 38 RDC Deposits 208-1,680 - - 174 2,062 RDC Deposited Items 47,004 Regular Deposits 30-4,749 - - 4,496 9,275 ACH Deposits 298 - - 286-237 821 ACH Credits Originated 54,742 54,742 ACH Payroll Reversals 7 7 ACH Payroll Returns 18 18 Incoming Wire Transfers 34 - - - - - 34 Stop Payments 1 9 17 - - - 27 Intra-bank Transfers 427 * 346 ** - Returned Deposited Items 2-132 - - 74 208 * Internet Banking Transfers ** ZBA Transfers (from Main Depository) Cash ATM Activity: # of Transactions Withdrawal Totals Memorial 2075 $54,935 North 1804 $51,590 Santa Fe 3726 $82,990 Page 7 of 16

III. NATURE OF SERVICES REQUIRED A. Bank Accounts 1. Maintain the following demand accounts: Main depository account Child nutrition depository account Zero balance check clearing account Zero balance tax clearing account Bank card clearing account Bank card clearing account 34 activity fund checking accounts 2. In addition to demand accounts, provide capability for sweep account for overnight investing. 3. All accounts shall have no transaction limits or minimum balance requirements. B. Pledged Collateral 1. As required by state law and school board policy, all deposits in excess of FDIC coverage shall be collateralized at 110% at all times. 2. Allowable collateral includes: Obligations, including letters of credit, of the United States Government, its agencies and instrumentalities of which the full faith and credit of the Government of the United States is pledged. Obligations of this state or of a county, municipality or school district of this state or an instrumentality of this state or a county, municipality or school district of this state. Pledged securities shall be held for safekeeping in a restricted account at either a Federal Reserve Bank or Federal Home Loan Bank which serves Oklahoma with Edmond Public Schools designated as pledgee. 3. Bank shall provide a daily e-mailed report of deposit balances and pledged collateral. C. Interest and Fees 1. All accounts other than the zero-balance accounts will be interest bearing. 2. Bank shall not charge separately for fees, but shall consider the expense of providing services in setting the interest rates to be paid. 3. Proposing banks shall indicate the rate that would be paid on each account as a fixed rate or a variable rate indexed on the three month treasury bill rate, as published for the preceding month. 4. Proposal shall indicate how the investable balance is to be calculated, indicating any non-interest bearing reserve requirements. Page 8 of 16

D. Deposits 1. Deposits received by the end of the banking day shall be processed and posted on the same banking day. 2. The institution must guarantee immediate availability of all incoming wire transfers. 3. The institution shall provide a deposit receipt or validated duplicate copy of the deposit slip for all teller deposits. 4. Deposit errors shall be reported to district personnel by telephone as quickly as possible. District will instruct the bank whether to adjust the deposit or whether the deposit should be returned without processing for correction. 5. Bank shall establish procedures to log and control deposits made by courier. 6. Bank shall provide remote deposit capture services at no additional cost (include in interest and fee arrangement). Bank shall provide software and support for remote deposit capture. District currently uses thirteen check scanners which are property of the District. If the district s check scanners are not compatible with the bank s software, bank shall provide compatible scanners at no cost to the District. District s current hardware consists of 13 Panini My Vision/Vision X scanners. E. Payroll Direct Deposit 1. Bank shall provide direct deposit capabilities for employee payroll. District employees may have payroll checks electronically deposited to any designated account over the ACH network. 2. Direct deposit files shall be required to be submitted not earlier than one (1) business day before the pay date. 3. Notification of any rejected deposits shall be communicated to designated district personnel on the day the rejection is received. 4. Bank must have the capability to receive more than one direct deposit file on the same day. 5. Bank shall process ACH reversals within the clearinghouse guidelines for any erroneous direct deposits when notified by the District. F. Check Clearing 1. Second deposit on presentation of all returned checks is required. 2. Bank shall not pay checks older than one year without obtaining express written permission by the District. 3. Bank shall provide a daily digital file of transactions in the zero balance check clearing account and monthly files for the other accounts in a file format compatible with the district s financial software interface. Any necessary programming on the part of the bank or by the District to ensure compatible file format will be at the expense of the bank. Page 9 of 16

G. Internet Banking Bank will provide access via internet website for all district accounts. Access must be setup with prescribed levels of security for district defined users (e.g. view only, full access, single vs. multiple accounts). At a minimum, the internet banking service should provide: Balance and transaction reporting Daily images of checks, deposits, transfers and corrections ACH services Wire transfers Stop payments Bank statements Fund transfers between accounts H. Overdraft Agreement Under state law, school districts are permitted to issue non-payable warrants/checks and/or use overdraft protection agreements. Proposing bank shall indicate rates and limits of overdraft protection to be offered. Variable rates based on prime will be considered. In no event can an overdraft rate exceed 10% set by law. I. ATMs The district s current bank has three ATMs in district buildings, one in each high school. Proposal should include placement of three ATMs at no cost to the district, indicating ATM fees to be charged to users as well as any revenue to be provided to the District. J. Employee Banking Bank shall provide an employee banking plan available to all district employees regardless of personal banking history. Proposal should include specifics of the terms, fees, and benefits of the employee banking program. K. Statement and Research Tools 1. Bank statement cycles shall begin on the first day of the month and end on the last day of the month. 2. Bank shall provide paper copies of bank statements mailed to the district s administration center at the address provided. 3. Bank shall provide digital check images, front and back, in place of original documents. Archived images shall be provided monthly. L. Supplies 1. Deposit slips shall be provided at the bank s expense, in carbonless duplicate and properly imprinted to identify each bank account. 2. Bank shall provide endorsement stamps for 40 accounts which do not use remote deposit capture. Page 10 of 16

3. Bank shall provide at its expense an adequate number of locking zippered bags for the district s use. The District currently uses 155 bags for courier rotation and 30 bags for night drop safekeeping. 4. Bank will provide tamper-evident disposable bank bags which are used by District from time to time when the volume of cash will not fit into the locking zippered bag or all bags are circulating in courier rotation due to schedule disruption. To provide a small supply at each site, bank will provide 80 disposable bags to start and replenish when necessary. 5. The District prints its own checks using a laser printer with MICR ink and encoding using district supplies at no cost to the bank. District will ensure printing quality meets bank standards for automated processing. M. Other 1. Services may be added, deleted, or modified without renegotiating the contract if agreed to by both the District and the financial institution. 2. Credit card processing and merchant account are not included in this RFP. 3. Purchasing cards are not included in this RFP. 4. Investment of excess funds is not included in this RFP. Each investment tranche is bid separately. The depository bank may bid on investments provided adequate collateral is available for both demand and time deposits. 5. Proposal may also offer other services. Such listing of services should be attached to the proposal and sufficiently detailed to permit evaluation thereof. Page 11 of 16

IV. PROPOSAL REQUIREMENTS A. General Requirements Submission of Proposals. The following material is required to be received by March 20, 2017 for a proposing bank to be considered: One original and two (2) copies of bank s proposal to include the following: 1. Title page showing the request for proposal subject; the bank name, address and telephone number of a contact person; and the date of the proposal. 2. Table of contents 3. Transmittal letter briefly stating the proposer's understanding of the services requested, a statement why the proposer believes itself to be the best qualified, and a statement that the proposal is a firm and irrevocable offer for ninety (90) days. 4. Detailed proposal for services as set forth in Section III of this request for proposal. 5. Executed copies of: Proposer Warranties (Appendix A) Business Relationship Affidavit (Appendix B) Non-collusion Affidavit (Appendix C) B. Other Documentation Requirements 1. Most recent annual audited financial statements. 2. Most recent quarter call report. 3. List of government entity clients and clients of similar size. 4. Any other information that the proposer feels would be relevant. Page 12 of 16

V. EVALUATION PROCEDURES A. Review of Proposals The district s financial management personnel will evaluate the proposals. B. Evaluation Criteria Proposals will be evaluated using three (3) sets of criteria. Institutions must meet the mandatory elements in order to have their proposals evaluated and scored for interest and fees and overall benefit to the District. The following are the principal selection criteria which will be considered during the evaluation process: 1. Mandatory Elements The financial institution adheres to the instructions in this request for proposal on preparing and submitting the proposal. The financial institution meets the institution requirements listed in Section I, C above. The financial institution can provide the full scope of services described in Section III above. 2. Interest and Fees 3. Best overall benefit to the District C. Oral Presentations During the evaluation process, Edmond Public Schools may, at its discretion, request any one or all financial institutions to make oral presentations. Such presentations will provide financial institutions with an opportunity to answer any questions on a bank s proposal. D. Final Selection It is anticipated that a bank will be selected by April 3, 2017. E. Right to Reject Proposals Edmond Public Schools reserves the right without prejudice to reject any and all proposals. Page 13 of 16

APPENDIX A PROPOSER WARRANTIES A. Proposer warrants that it is willing and able to comply with the laws of the State of Oklahoma. B. Proposer warrants that it is willing and able to obtain an errors and omissions insurance policy providing a prudent amount of coverage for the willful or negligent acts, or omissions of any officers, employees or agents thereof. C. Proposer certifies it can and will provide and make available, at a minimum, all services set forth in Section III, Nature of Services Required. D. Proposer warrants that it will not delegate or subcontract its responsibilities under this agreement without the express prior written permission of Edmond Public Schools. E. Proposer warrants that all information provided by it in connection with this proposal is true and accurate. F. Proposer warrants that it has disclosed any recent or foreseen merger or acquisition. Signature of Official: Name (Typed or Printed): Title: Institution Name: Address: Date: Page 14 of 16

STATE OF OKLAHOMA ) ) ss COUNTY OF ) APPENDIX B BUSINESS RELATIONSHIP AFFIDAVIT, of lawful age, being first duly sworn, on oath that (s)he is the agent authorized by the bidder to submit the attached bid. Affiant further states that the nature of any partnership, joint venture, or other business relationship presently in effect of which existed within one (1) year prior to the date of this statement is as follows: Affiant further states that any such business relationship presently in effect or which existed within one (1) year prior to the date of this statement between any officer or director of the bidding company and any officer or director is as follows: Affiant further states that the names of all persons having any such business relationships and the positions they hold with their respective companies or firms are as follows: If none of the business relationships hereinabove mentioned exist affiant should so state. Signature: Date: Subscribed and sworn to before me this day of, 2017. My commission expires, 20. Notary Public (SEAL) Page 15 of 16

APPENDIX C NON-COLLUSION AFFIDAVIT STATE OF OKLAHOMA ) ) ss COUNTY OF ) I, of lawful age, being first duly sworn on oath says, that (s)he is the agent authorized by the bidder to submit the attached bid. Affiant further states that the bidder has not been a party to any collusion among the bidders in restraint of freedom of competition by agreement to bid at a fixed price or to refrain from bidding; or with any state official or employee as to quantity, quality, or price in the prospective contract, or any other terms of said prospective contract; or in any discussions between bidders and any state official concerning the exchange of money or other things of value for special consideration in the letting of a contract. Offeror (Financial Institution Name) Signature of Company Representative Subscribed and sworn to before me this day of, 2017. My commission expires, 20. Notary Public (SEAL) Page 16 of 16