Date: March 27, 2013 REQUEST FOR PROPOSALS Proposal Category: BANK DEPOSITORY SERVICES Proposal Number: 13-03-09 The Region One Education Service Center Purchasing Cooperative is accepting proposals for: Bank Depository Services Sealed proposals are to be mailed or hand delivered to the attention of Lori Atwood Ramos, Purchasing Coordinator, Region One ESC, 1900 West Schunior Street, Edinburg, Texas 78541-2233. Please mark your envelope plainly: Bank Depository Services Proposal 13-03-09 Sealed proposals will be accepted until 3:00 p.m. on Wednesday, April 24, 2013, at which time they will be opened. Proposals will be opened in the Business Office of Region One ESC, 1900 West Schunior Street, Edinburg, Texas. Bidders are invited to be present at the opening of the proposals at the above date and time. Only proposals received by the date and time specified will be considered. Proposals received after the deadline are considered late and will be returned unopened. Region One ESC is not responsible for proposals mislabeled, misplaced or mailed incorrectly. Faxed or E-mailed proposals will not be accepted. Please reply using the enclosed forms. Please submit one original, two copies, and one electronic copy of your proposal. Any questions on this proposal should be submitted in writing to Lori Atwood Ramos, Purchasing Coordinator via fax (956) 984-7602, mailed to her attention at 1900 West Schunior Street, Edinburg, Texas 78541-2233 or e-mailed at laramos@esc1.net. The awarding of the proposal will take place at a public Region One ESC board meeting. The Board of Region One ESC reserves the right to accept, reject any and/or all proposals, waive minor technicalities, to award contracts for individual items as they may appear advantageous to the Region One ESC and its members or to award the proposal to the most responsible offeror which best serves the interest of the Region One ESC and its members. We look forward to hearing from you. Enclosure Region One Education Service Center does not discriminate on the basis of age, gender, race, color, national origin, or disability.
REGION ONE EDUCATION SERVICE CENTER TABLE OF CONTENTS BANK DEPOSITORY SERVICE RFP 13-03-09 APRIL 24, 2013 PAGE A. REQUEST FOR PROPOSAL NOTICE 3 B. REQUEST FOR PROPOSAL FORM 6 C. ATTACHMENT A VOLUMES FOR PRICING TRANSACTIONS 27 D. ACKNOWLEDGEMENT/SIGNATURE SHEET 28 E. ATTACHMENT A VOLUMES FOR PRICING TRANSACTIONS 29 F. ATTACHMENT B REGION ONE CURRENT ACCOUNT STRUCTURE 60 G. ATTACHMENT C REGION ONE INVESTMENT POLICY 61 H. ATTACHMENT D SAMPLE COLLATERAL AGREEMENT 65 I. ATTACHMENT E AUDITED FINANCIAL STATEMENTS (LINK) 66 J. FORM W-9 67 K. FELONY CONVICTION NOTIFICATION 68 L. CONFLICT OF INTEREST QUESTIONAIRE 69 M. NON-COLLUSION STATEMENT 71 2
REGION ONE EDUCATION SERVICE CENTER REQUEST FOR PROPOSAL NOTICE BANK DEPOSITORY SERVICES PROPOSAL 13-03-09 Region One Education Service Center is soliciting proposals to serve as Depository for the purpose of assisting with the banking functions for funds of the Service Center. 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 Region One to select a Depository through soliciting proposals for a Depository services contract for a term of two years beginning September 1, 2013 and ending August 31, 2015 or until such time as a successor Depository is selected and qualified agrees to a depository agreement based on either fees or compensating balances. The Service Center and the Depository may agree to extend this contract for two (2) additional two-year terms in accordance with Section 45.205 of the Education Code. This Section requires that the contract and any extension of this contract coincide with the Region One s fiscal year. In the event the Service Center 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 Service Center may at its option change the term of this contract. The resulting contract and any extension(s) shall become binding upon Region One ESC and the Depository only upon acceptance by the Texas Education Agency. The legal provisions providing for the naming of a Depository of the Service Center are set forth in Subchapter G, School District Depositories, Sections 45.201 through 45.209, of the Texas Education Code. Investments by Region One will be governed by the Government Code, Chapter 2256, Public Funds Investment. Securities pledged as collateral to secure Service Center deposits will be governed by the Government Code, Chapter 2257, Collateral for Public Funds. Depository Questions A pre-proposal conference was held on Tuesday, March 5, 2013. Questions regarding this proposal request, or the services requested, will be accepted in written or e-mail form only, at the address above on or before 5:00 pm on Thursday, April 18, 2013. Responses to all material questions submitted will be communicated in writing or by e- mail to all known interested depositories by 12:00 pm on Monday, April 22, 2013. Proposal Submission To be eligible for consideration under this request, three (3) complete paper copies and one (1) electronic copy on a flash drive of each proposal shall be submitted by 3:00 pm CST/CDT on Wednesday, April 24, 2013 to the address below. Proposals received after that time by Region One will not be accepted. Late submissions to the Service Center address will be returned unopened. The proposal must be submitted in a sealed envelope or packet marked Bank Depository Services Proposal 13-03-09. An accompanying transmittal letter must 3
be signed by an individual authorized to bind the institution, state that the proposal is valid for one hundred eighty (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: Lori Atwood Ramos Purchasing Coordinator Region One Education Service Center 1900 West Schunior Street Edinburg, Texas 78541-2233 956-984-6123 laramos@esc1.net All questions in the attached uniform proposal blank should be answered and provided to Region One as the Depository s proposal. The Depository is to attach a Cashier's Check in the sum of five thousand dollars ($5,000.00) payable to Region One ESC. 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 Region One as liquidated damages. If the proposal is not accepted, the check will be returned to the Depository immediately after contract award. This proposal is being provided electronically by the Service Center also. 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 According to TEC 45.206(d), the Service Center must state the selection criteria and select the proposal based on the ranking in relation to the stated selection criteria. The following criteria will be used by Region One ESC for evaluation and award of the contract. 25% Cost of services charges for keeping Region One accounts, records, reports and furnishing checks, including conversion costs 20% Automated and additional services offered and available 20% Ability of the proposer to provide the necessary services and perform the duties as Depository; experience in providing Depository services to similar accounts strength of project team 10% Collateralization policy and type of third-party institution holding collateral 25% Interest rates offered on time deposits 100% Total Region One ESC reserves the right to reject any and/or all proposals and to accept the proposal the Service Center considers most advantageous. If any portion or provision of this proposal and/or any contract between Depository and Region One entered into is invalid, the remainder at the option of the Service Center 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. 4
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 Region One will make every effort to adhere to the following schedule. 03/27/13 Release of Request for Proposal 04/18/13 Deadline for questions concerning the RFP or services requested 04/22/13 Responses given to any questions provided to all known interested depositories 04/24/13 Deadline for proposal submission 05/16/13 Region One Board award of contract 05/17/13 Submission to TEA for approval 09/01/13 Contract commencement Region One ESC Rights The Service Center 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 Region One; - 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 Service Center. Other 1. The successful proposer will notify Region One in writing within ten (10) days of any changes in Federal or State regulations or laws that would thereafter affect the depository agreement throughout the contract period. 2. The bank's records relating to the Service Center's accounts shall be open to review by either Region One, its independent auditors and the Texas Education Agency during normal business hours. 3. The Service Center reserves the right to pay for Depository services by target balances or by fees. 4. Region One reserves the right to exclude direct payroll deposit service from the depository contract if the Depository does not offer direct payroll deposit service. 5
REGION ONE EDUCATION SERVICE CENTER REQUEST FOR PROPOSAL FORM BANK DEPOSITORY SERVICES PROPOSAL 13-03-09 All questions in this form should be answered and provided to Region One ESC as the Depository s proposal. The Service Center 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 Region One entered into is invalid, the remainder at the option of the Service Center shall remain in full force and effect and not be affected. BANK COMPENSATION Does Region One have the option to pay for Depository services by targeted balances or by fees? Please describe any differences in related costs to the Service Center with either option. If Region One chooses one option for the life of the contract, is there a difference in service fees? Target Balance Compensation Basis Region One may choose to pay for Depository services on a compensating balance basis, maintaining a targeted amount of its funds in the Depository. The Service Center 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 Region One. Any excess collected balance may be invested daily by the Bank as directed by the Service Center, in a Region One 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 Depository must complete the information by month according to Attachment A, Bank Historical Information. 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 Region One may choose to pay for Depository services on a straight fee basis in which no targeted balance will be maintained by the Service Center. Fees will be assessed and paid in accordance with the Depository s proposed fees as listed on Attachment A. 6
REGION ONE ESC INVESTMENTS The Service Center 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 Region One s Local Investment Policy CBF (Local), a copy of which is attached as Attachment C or at this link to the investment policy on Region One ESC s web site: http://pol.tasb.org/policy/code/648?filter=cbf Region One may choose to invest in time deposits at the Depository. The Depository will pay interest on funds of the Service Center placed in time deposits with maturities chosen by Region One. The interest rate spread on such deposits should be indicated as above, below or equal to the "asked" yield on the comparable maturity T-Bill of the proposed time deposit being purchased as reported in an independent, financial source. Single Maturity Time Deposits of more than $100,000: MATURITY Basis point spread over (+)/under (-) T-Bill "asked" yield [ESC-specified rate] 7 29 Days 30 59 Days 60 89 Days 90 179 Days 180 364 Days 365 Days or More COLLATERALIZATION The Depository must provide pledged securities as per Texas Education Code 45.201. Please specify which method the Depository will use for collateralization of Region One funds. Collateral Conditions The Depository shall provide collateral equal to 102% of all Region One ESC time and demand deposits plus accrued interest minus applicable FDIC coverage. Collateral will be pledged to the 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). 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 Service Center shall execute a collateral agreement in accordance with FIRREA. A sample Collateral Agreement should be attached as Attachment D. Region One ESC estimates its maximum anticipated collateral requirement to be $26,000,000. If voluntary collateral pooling is legislated during the period of this contract, Region One may consider and agree to its use under this contract with mutual agreement of the Depository. 7
Eligible Collateral Region One will accept only approved securities as specified by Texas Education Code 45.201 as pledged collateral. BANKING SERVICES FEES Based on the Depository services required by Region One, the Depository shall complete the proposed fee schedule, Attachment A. 8
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 Region One 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 Service Center 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 Region One account to coordinate services and expedite the solution of any problem encountered. a. Designate a Depository officer as a primary contact with Region One. Name Title Telephone # Fax # E-Mail b. Designate a Depository representative as a backup contact with Region One. Name Title Telephone # Fax # E-Mail 9
c. In the event the primary and backup contacts aren t available, what is Region One 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 Service Center 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. 6. Based on the services required by the Service Center, please provide a proposed timeline for implementation of the contract including the timeline activities and direct responsibilities of Region One 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 Region One 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. Region One ESC has attached its investment policy to this RFP notice and has provided a link to the investment policy on the Service Center s website http://www.esc1.net/. 9. A pre-award interview may be conducted on site at the Depository prior to contract award. Please provide Region One with a contact name for arranging the pre-award interview. 10. Is the Depository offering any transition or retention incentive to the Service Center? If so, please describe in detail. 10
BANKING SERVICES 1. Consolidated Account Structure with Sweep Mechanism Region One is interested in earning at then-current interest rates available at all times. The Service Center 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. Region One s current account structure is listed as Attachment B. The Service Center does not guarantee that the balances will be maintained at these same levels. 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. Region One ESC 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. 11
2. Automated Cash Management Information Region One 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? 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 Service Center have access to this information? 12
3. Deposit Services Standard commercial deposit services are required for all accounts. Region One 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 Service Center s accounts in a timely fashion will require interest payment reimbursement to Region One 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 Region One? c. What type deposit bags are used/required? Are these available from the Service Center? d. In what city does item processing occur? Remote Deposit Region One 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. a. 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 same-day ledger credit. b. Give two comparable references with contact information. 13
c. Is a daily balancing report produced? Provide a sample. d. 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 Service Center 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 Region One checks paid without charge upon presentation? 5. Positive Pay The Service Center currently maintains 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. a. Describe the data transmission/transfer requirements for automated and manual checks. 14
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 Region One, if necessary? d. How is the Service Center to be notified of a positive pay exception? e. At what time is exception information reported to Region One? At what time is the deadline for Region One 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 Region One 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. 15
b. With what format(s) does the Depository s system interface? What record formats are required? Region One currently accepts files in the following text format: the first seventeen digits are the bank account number; the second ten digits are the check number; the third ten digits are the zero-filled amount. A maximum of two check number/amounts can be on one record. The record size must be 80. Date selection is based on check date. How is reconciled data sent to the Service Center? 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. Region One 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 Service Center of incoming wires? Online? E-mail? d. Is future dating available for both repetitive and non-repetitive wires and transfers? How far in advance? 16
e. What is the deadline for initiation -- By telephone? -- On-line? f. Are templates available for repetitive transfers? 8. Optical Imaging Region One 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? 9. ACH Services Region One expects to continue toward more ACH transactions for payable and receivable transactions. The Service Center requires a pre-notification (pre-note) on all new transactions. a. Describe the transmission alternatives for individual ACH transactions. Is Region One able to initiate individual ACH transactions on line? 17
b. What filters and blocks are available on Service Center 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 Region One. All Service Center investments will be made by Region One 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 Region One DDA account. All P&I payments, coupon payments, and maturities must receive automated same day collected credit on the Service Center designated account without requiring any additional Region One 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 Region One securities, the transactions will be handled through the Depository's systems and shall not require additional interaction by the Service Center 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 Region One. 18
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 Service Center 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 Region One 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 Service Center must be held by a custodian or permitted institution as specified by the Public Funds Collateral Act (Texas Government Code, Chapter 2257). A tri-party safekeeping agreement shall be executed between Region One, 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 Service Center 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 daily monitoring and maintaining of collateral at Region One's required margin levels. Pledged collateral shall be evidenced by original safekeeping receipts/report sent directly to the Service Center by the custodian within one business day of receipt. Region One 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 Service Center 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 45.201. a. Does the Depository propose any collateral charges? If so, under what conditions are they charged and how is the charge applied? 19
b. What is the Depository s deadline for requesting collateral in excess of existing requirements? 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 Region One? 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 Service Center? If so, when? 20
14. 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? 21
16. Customer Service Does the Depository offer customer services in languages other than English? What languages are offered? 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 Region One s treasury management operations. 22
OPTIONAL SERVICES 1. NSF Checks Represented as ACH (RCK) Region One 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 Service Center specify any target pay day(s)? 2. Merchant Services Region One ESC currently accepts Visa/MasterCard/American Express/Discover/debit card payments approximating four thousand three hundred and forty dollars ($4,340) in collections a month with an average ticket size of eight hundred and seventy dollars ($870). There is one (1) location with one (1) terminal. The Service Center current accepts 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? 23
c. Describe the fee components of a merchant card processing relationship. Provide a list of all the fees to the Service Center. 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 Region One 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? 24
k. Describe the dispute resolution process. l. Describe your security measures for internet transactions and unauthorized use. 3. Purchasing Cards Region One may consider a purchasing card program during the contract period. Cards would be assigned to Service Center employees for defined use. a. What a 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? 25
g. Provide three comparable references for the service. 4. Company Bank Program Region One is interested in giving its employees the opportunity for enhanced, personal banking services. a. Does the Depository have a banking program available for Service Center employees? b. List services provided under this program with applicable discounts or fees to Region One or employee. c. Is availability of the program based on use of direct deposit or Service Center employment? 26
List of schedules/attachments provided by Region One ESC: Attachment A, Volumes for Pricing Transactions Attachment B, Region One s Current Account Structure Attachment C, Region One s Investment Policy http://pol.tasb.org/policy/code/648?filter=cbf Attachment E, Region One s audited financial statements http://www.esc1.net/cms/lib/tx21000366/centricity/domain/14/audit.pdf 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) 27
REGION ONE EDUCATION SERVICE CENTER PURCHASING COOPERATIVE ACKNOWLEDGEMENT/SIGNATURE SHEET BANK DEPOSITORY SERVICE RFP 13-03-09 APRIL 24, 2013 The undersigned affirms that he/she is duly authorized to execute this contract, that this company, corporation, firm, partnership or individual has not prepared this proposal in collusion with any other offeror, and that the contents of this proposal as to prices, terms or conditions of said proposal have not been communicated by the undersigned nor by any employee or agent to any other person engaged in this type of business or any individual affiliated with Region One ESC prior to the official opening of this proposal. I further affirm that the contents of this proposal will not be discussed with any individual other than the Compliance Auditor (or his designee) prior to the approval of this proposal by the Board. Failure to observe this procedure may be course for rejection of the proposal. 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 Region One ESC 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 Region One 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. I,, have read the standard terms and conditions. (Print/Type Name of Company Officer) I fully understand them, and will fully execute them if I am awarded this proposal. I have represented the truth concerning the felony conviction notification. I have checked off one of the three statements. I fully understand the proposal specifications. FIRM ADDRESS CITY/STATE/ZIP CODE (AREA CODE) TELEPHONE ( ) EMAIL SIGNATURE DATE TITLE PRINTED NAME OF ABOVE EMAIL The signing of this page indicates understanding and acceptance of this proposal s terms and conditions. 28
ATTACHMENT A VOLUMES FOR PRICING TRANSACTIONS BANK DEPOSITORY SERVICE RFP 13-03-09 APRIL 24, 2013 29
ATTACHMENT A INSTRUCTIONS Summary tab REGION ONE EDUCATION SERVICE CENTER ATTACHMENT A VOLUMES FOR PRICING TRANSACTIONS RFP 13-03-09 04/24/13 Region One has filled in the available volumes to provide the bank with information necessary to provide the appropriate pricing for the service. The bank will fill in the pricing when returning the proposal package. The bank enters the unit charges according to the unit basis in columns c-d-e. Region One entered the available estimated volumes (from monthly account analysis statements). Bank may enter "N/A" in the cell for any items which are not applicable. Region One historical info tab Region One will fill in the historical available information in the following categories to provide the bank with information necessary to provide the appropriate pricing for the service: Average ledger balance Average collected balance Merchant services (credit cards) Purchasing cards Region One may add information for additional services if available and relevant to the Service Center's required services. Region One may also omit any information if it is not interested in certain services. Bank historical info tab Region One can request the bank to provide the historical available information in the following categories to provide the information necessary to evaluate the bids or proposals: ECR Rate Interest-bearing accounts rate Money market accounts rate Sweep accounts rate Region One may add information for additional rates if available and relevant to the Service Center's required services. Region One may also omit any information if it is not interested in certain services.
ATTACHMENT A Region One Education Service Center Provide a price schedule for all services and include any one-time charges or set-up fees. Service Account Deposit Services Master Account Maintenance Fee Subsidiary Account Maintenance Money Market Account Maintenance Fee Interest Bearing Accounts Maintenance Fee ZBA Accounts Maintenance Fee Master ZBA Accounts Maintenance Subsidiary ZBA Account Transfers Investment Sweep - master account Investment Sweep - Subsidiary accounts Debits Posted Credits Posted Unit Basis Per account Per account Per account Per account Per account Per account Per account/mo Per account/mo Est. Vol. JAN Est. Vol. FEB Est. Vol. MAR Refer to tab Account Analysis Unit Bank Charge Explanatory Notes, if applicable Automated Services - Balance & Detail If Services are Bundled: Bundled Balance & Activity Reporting Monthly Maintenance Detail Item Fees If services are Un-Bundled (by Module) Balance Reporting Module Maintenance Daily Balance Reporting Previous day Reporting Previous Day Dr/Cr Items ACH Module Maintenance ACH Detail Reconciliation Module Maintenance Recon detail Stop Pay Module Maintenance Stop pay item Wire and Internal Transfer Module Maintenance Addenda reporting Positive Pay Module PP Detail Detail Transactions - All modules Per month Per month/account Per account Per account Per account Per account/overall Per account/overall Per account/overall Per account/overall Per account/mo Accounts are set up for individual account analysis and services are set up separate Deposits Commercial Account Maintenance Per account Banking Center Deposits Night Drop Deposit Items Deposited Items deposited Per deposit 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 Please refer to tab Account Analysis N/A Please refer to tab Account Analysis
Service Unit Basis Deposits Cash Vault Base Fee Processing Fee Standard Deposit Vault Per deposit Standard Deposit Note Vault Per deposit Currency Deposits Cash deposited Per $$ Strapped currency furnished Currency Wraps Shipped Per strap Coin Deposits Full bag - loose coin Partial bag of loose coin Rolled Coin Furnished Per roll Minimum Change Order Branch Order Processing Per Order Branch Per Deposit Per Deposit Branch Coin Shipped Per Shipment Change Order Deposit Corrections Return Item - Return Items Return and Reclear Charge-backs Return Check Notice Fax Return Check Notice Internet Est. Vol. JAN Est. Vol. FEB Est. Vol. MAR Not being utilized by company but service are available. N/A Refer to tab Account Analysis ONLY 2 chargebacks for the lookback of 3 months N/A N/A Unit Bank Charge Explanatory Notes, if applicable ACH Processing Service Monthly Maintenance (Base) Fee ACH Transactions Originated Debits originated Credits Originated Electronic Credit Received/Posted Electronic Debit Recived/Posted Electronic Originated Addenda ACH Return Items Return Notification Deletions or Reversal Charges Transmission Fraud Filter - Review - Base Fee Fraud Filter - Review - Per Item Reports - by Fax Per month/account Per Item Per Item Per file Per month Please refer to ACH Processing and Returns tab Bank offers this services at no additional charge N/A Positive Pay Service Monthly Maintenance (Base) Fee* Positive Pay Item charge with Partial Recon charge with Full Recon without recon services Transmission - File Transmission Per account or mo Refer to Positive Pay tab Imaging Imaging Maintenance CD Rom Service - Per Item CD Rom Service - Per Disk Per month N/A Business utilizes online banking for image archive
Service Unit Basis Est. Vol. JAN Est. Vol. FEB Est. Vol. MAR Unit Bank Charge Explanatory Notes, if applicable Reconciliation ACH Monthly Maintenance Per Month Partial Recon Monthly Maintenance Per Month Partial reconciliation - detail Full recon monthly maintenance Per month Full recon detail Deposit Reconciliation - Mo Maintenance Per Month Deposit Recon - per detail Transmissions Per Transmission Transmission Detail Safekeeping Service Monthly Maintenance Custody Per month Clearing Fees Securities Received/ Delivered - DVP Safekeeping Fees Custody per Cusip/Holding Per cusip Income Collection to DDA N/A N/A Stop Pays Stop Payments 14 Wire Transfers Service Monthly Maintenance* Incoming - domestic Straight Outgoing - repetitive - automated,domestic Outgoing - non-repetitive - automated,domestic Book Transfer Internet Initiated Wire Advices Faxed/Mailed Per month No wire transfer activity OPTIONAL SERVICES REQUESTED Remote capture of checks One-time set-up or training fees Monthly maintenance Capture and transmission fee from provider On-us Item Local Item Transit Item One time Per month/card 0 0 0 309 487 231 RCK Services RCK Maintenance RCK Detail Per account/mo s Represented Check Entries N/A Pay/Debit Cards Service Monthly Maintenance Processing and servicing Implementation fee Initial system design and development Enrollment Corrections Employee Charges ATM Cash Withdrawal - On-us ATM Cash Withdrawal - non-bank Cash Advance OTC ATM Balance Inquiry Overdraft Fee Lost/stolen replacement fee Standard reporting Per month Per card One time One time Per card Per card N/A Based on type of account employee selects. Purchasing Cards Service Monthly Maintenance Card Issuance Fee Transaction Fee License Fee Rebate on amt purchased <$1mm Per month Per card Per month N/A
Service Unit Basis Est. Vol. JAN Est. Vol. FEB Est. Vol. MAR Unit Bank Charge Explanatory Notes, if applicable Merchant Card Services Fees One-time set up fee Application fees: First location N/A Locations 2-5 Locations >5 Annual fee / Monthly Maintenance fee Per month/location 1 Annual Fee Monthly Statement Fee Per month 1 1 1 Supply fee Per month N/A Minimum processing fee Internet Set-up fee Per location N/A NONE 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) % Refer to tab Merchant Services 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 N/A N/A Terminal Authorizations MC Electronic authorization 10 3 8 Discover Electronic authorization AmEx Electronic authorization Processing Fees Chargeback processing Batch settlement fee 7 N/A NONE 3 3 Transmission Fee N/A Transmission - Item N/A
ATTACHMENT A Region One Education Service Center Service General Operating Account Maintenance Fee 1 1 1 FDIC Insurance Fee 1 1 1 Debits 6 8 8 Credits 68 46 70 Credits 2 On Us Items Deposited 4 15 11 Local Items 68 135 82 Foreign Items 174 272 162 Interest Paid Chargeback Fee 2 Service Volume JAN 2013 Volume JAN 2013 Volume FEB 2013 Volume FEB 2013 Volume MAR 2013 Volume MAR 2013 Payroll Clearing Fund Maintenance Fee 1 1 1 FDIC Insurance Fee Debits 39 41 48 Local Items 2 Interest Paid Service Volume JAN 2013 Volume FEB 2013 Volume MAR 2013 Merchant Services Maintenance Fee 1 1 1 FDIC Insruance Fee Credits 6 3 2 Interest Paid Service Finance Clearing Fund Maintenance Fee 1 1 1 FDIC Insurance Fee Debits 298 425 333 Credits 1 Interest Paid Service Volume JAN 2013 Volume JAN 2013 Volume FEB 2013 Volume FEB 2013 Volume MAR 2013 Volume MAR 2013 General Maintenance Fee 1 1 1 FDIC Insurance Fee Interest Paid
ATTACHMENT A Region One Education Service Center ACH Processing 1/10/2013 42 1/17/2013 65 1/18/2013 292 1/22/2013 1 1/23/2013 208 1/24/2013 30 1/31/2013 34 2/7/2013 38 2/14/2013 30 2/21/2013 20 2/21/2013 293 2/22/2013 207 2/28/2013 45 3/7/2013 46 3/20/2013 287 3/21/2013 40 3/22/2013 207 3/28/2013 27 Returns 1/28/2013 1 1/29/2013 3 2/28/2013 4 3/27/2013 6
ATTACHMENT A Region One Education Service Center Create Date Description Deposit Status Count Amount Total Deposit Count Total Deposit Amount Remote Deposit Capture Transactions Jan 1/11/2013 09:32:27.0255630 1/11/2013 Deposit Partial Deposit 36 $229,589.90 36 $229,679.90 1/17/2013 14:01:15.6808012 1/17/2013 Deposit Partial Deposit 55 $41,013.04 55 $41,013.04 1/17/2013 15:02:17.4780525 1/17/2013 Deposit Deposited 76 $29,512.46 77 $29,512.46 1/21/2013 13:49:49.4640465 1/21/2013 Deposit Deposited 38 $319,882.00 35 $319,882.00 1/22/2013 13:38:29.5092825 1/22/2013 Deposit Deposited 43 $121,253.09 43 $121,253.09 1/29/2013 14:02:13.8159671 1/29/2013 Deposit Deposited 63 $192,524.94 63 $192,524.94 309 $933,865.43 Feb 2/6/2013 09:58:40.1246842 2/6/2013 Deposit Deposited 46 $53,845.84 46 $53,845.84 2/6/2013 10:13:32.8647727 2/6/2013 Deposit Deposited 54 $22,873.11 54 $22,873.11 2/7/2013 16:19:34.8980304 2/7/2013 Deposit Deposited 65 $420,183.66 65 $420,183.66 2/11/2013 14:01:19.7768807 2/11/2013 Deposit Deposited 37 $23,457.11 37 $23,457.11 2/14/2013 09:55:03.3564377 2/14/2013 Deposit Deposited 2 $356.74 2 $356.74 2/14/2013 13:51:55.6817710 2/14/2013 Deposit Deposited 37 $262,711.54 37 $262,711.54 2/15/2013 10:21:01.7117049 2/15/2013 Deposit Deposited 59 $34,593.80 59 $34,593.80 2/15/2013 15:28:02.4281963 2/15/2013 Deposit Deposited 28 $74,251.91 28 $74,251.91 2/21/2013 15:06:34.4390493 2/21/2013 Deposit Deposited 30 $255,221.47 31 $255,221.47 2/26/2013 12:13:27.7748859 2/26/2013 Deposit Deposited 54 $15,487.88 54 $15,487.88 2/28/2013 11:09:38.8538062 2/28/2013 Deposit Deposited 62 $246,556.82 62 $246,556.82 2/28/2013 16:07:59.3572923 2/28/2013 Deposit Deposited 12 $33,151.73 12 $33,151.73 487 $1,442,691.61 March 3/1/2013 14:54:40.8703474 3/1/2013 Deposit Deposited 2 $757.65 2 $757.65 3/7/2013 12:58:22.7179539 3/7/2013 Deposit Deposited 2 $515.94 2 $515.94 3/7/2013 12:59:16.6408642 3/7/2013 Deposit Deposited 42 $28,296.68 42 $28,296.68 3/7/2013 13:42:38.6711367 3/7/2013 Deposit Deposited 43 $287,837.59 43 $287,837.59 3/18/2013 16:05:18.6935253 3/18/2013 Deposit Deposited 40 $193,447.55 40 $193,447.55 3/27/2013 10:08:45.7926550 3/27/2013 Deposit Deposited 60 $37,242.06 60 $37,242.06 3/27/2013 14:53:26.7851518 3/27/2013 Deposit Deposited 40 $285,154.53 40 $285,154.53 3/27/2013 14:59:46.8525166 3/27/2013 Deposit Deposited 2 $799.46 2 $799.46 231 $834,051.46