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HomeMy WebLinkAboutRESPONSE - RFP - 7266 BANKING SERVICES (2)City of Fort Collins Banking Services 0) First National Bank 205 W Oak Street Fort Collins, CO 80521 970.495.1288 keep that information confidential, separate and apart from the proposal, subject to the provisions of the Colorado Open Records Act (CRS 23-72-201 et.seq.) or order court. B. Format All banks should organize their proposals according to the format described below. Failure to comply with all provisions of this RFP may result in the proposal being disqualified. Significant deviation from the format prescribed below may also result in the proposal being disqualified. Banks must submit proposals that are substantially complete, thorough, and accurate. Brochures and other similar background material may be attached to the proposal but will not be used by the City evaluation team in determining the extent to which the proposal is responsive or complete. Proposal should be bound and include the following items (in order): 1. Title Page 2. Table of Contents 3. Executive Summary 4. Responses to the "Minimum Requirements" 5. Responses to the "General Requirements and Specifications" 6. Responses to the Response Items for Accounts and Services 7. Responses to the "Additional or Future Services and Enhancements" 8. Account Analysis Form 9. Signed Copy of the Proposal Certification Form (Attachment A) 10. Completed Service Pricing Schedule 11. Appendices The City has created a proposal checklist (Attachment C) to guide banks in the proposal preparation. Failure to include all items listed on the checklist may result in the disqualification of the proposal. C. Implied Requirements Products and services that are not specifically requested in the RFP, but are necessary to provide the functional capabilities offered by the bank, shall be included in the proposal. D. Required Items Included in the sealed proposal package, but not bound with the proposal, each bank must include a Transmittal Letter. This letter should briefly state the bank's understanding of the work to be accomplished, provide a commitment to perform the work, and indicate the proposal is firm and irrevocable for the period of the contract. It should also identify all materials and enclosures included in the response to the RFP. Each bank must submit copies of its three (3) most recent audited financial statements in the sealed proposal package, but should not bind the statements with the proposal document. 0 E. Exceptions to the Prescribed Format RFP 7266 Banking Services Page 6 of 44 In prescribing the format for proposals, the City desires to make the responses from the banks consistent and comparable. The City recognizes that banks may vary in their approach and processes to providing the required services. Proposals that deviate significantly to the required format may be rejected. All requested information must be submitted, or if not, an explanatory statement summarizing the bank's reasons for not submitting the requested information must be provided. F. Proposal Term All proposals must be valid for 180 calendar days from the required submittal date IX. PROPOSAL EVALUATION AND SELECTION A. General Evaluation Guidelines Opening Time and Date: Purchasing staff will open proposals on September 5, 2011, at 3:00 p.m. Mountain Daylight Savings Time, at the Purchasing Division Officer located at 215 N. Mason, Fort Collins, Colorado. Public Record Disclaimer: Under the Colorado Open Records Act, all information in the proposals is a public record and will be available for inspection upon completion of contract negotiations and award. Only the names of the banks submitting proposals will be released prior to the completion of contract negotiations and award. The City's proposal evaluation team will read and evaluate all proposals submitted. The evaluation team will include the Director of Purchasing and Risk Management, the Financial Officer, the Finance Department Investment Administrator, and other City staff . members. Throughout the evaluation and selection process, the Director of Purchasing and Financial Officer reserve the right, in the best interest of the City, to request additional information or clarification from the banks, or allow corrections of errors or omissions. At the discretion of the City, banks may be requested to make oral presentations as part of the evaluation process. 0 After proposals are opened, banks may not amend or clarify submitted proposals unless the Director of Purchasing and Risk Management requests such information. B. Criteria for Evaluation of Proposals The evaluation team will use the following criteria to judge and score the written proposals and, if necessary, for interviews. The rating scale shall be from 1 to 5, with 1 being the lowest score, 3 being an average rating, and 5 being an outstanding rating. RFP 7266 Banking Services Page 7 of 44 11 WEIGHTING FACTOR QUALIFICATION STANDARD 2.5 Cost Fees and Compensation The proposal that provides the banking services at the lowest total cost to the City. The total cost for the requested banking services will be determined using the attached Pricing .Schedule (Attachment B) 2.5 Understanding City Degree to which the proposal and supporting materials Needs demonstrate that the bank understands the City's needs and operational requirements. Quality and scope of the conversion implementation plan. 1.0 Financial Strength Evaluation of key financial ratios and financial position provided by independent rating services. 3.0 Scope of Services Scope of Banking Services. The availability and quality of services proposed by the bank. Includes the value of any new product or service suggestions or other new ideas and enhancements. 1.0 Experience The experience, resources, and qualifications of the bank and individuals assigned to the City's account. Relevant experience managing similar relationships with public sector clients. At the option of the City, interviews and site visits may be conducted with some or all of the banks responding to this Request for Proposal. The final selection will be based on an evaluation of all of the information submitted and the City's determinations that the proposal will best serve the City's needs. a. Performance Standard In their proposals, banks should strive to meet or exceed the standards of performance provided in this RFP. The evaluation team retains the SOLE responsibility to determine the extent to which proposals meet or exceed the standards of the City. b. Acceptance Time The City intends to make a bid selection for contract negotiations by October 3, 2011. Award shall be recommended to the respondent whose proposal best meets the needs of the city, not necessarily to the lowest cost respondent. c. Contract Negotiation If necessary, the City shall have the right to negotiate with one or more of the banks that respond to this RFP or the successful bank. The content of the RFP and the selected bank, including the scope of services, will become an integral part of the Contract, but may modified by the Contract. RFP 7266 Banking Services Page 8 of 44 By responding to this RFP, the bank acknowledges the willingness to include, in the Contract, any information provided in response to this RFP. A proposal in response to this RFP is an offer to contract with the City based on the terms, conditions, scope of work, and specifications contained in the RFP. The City's Standard Services Agreement is attached as Attachment E. The City expects that both parties will execute the contract prior to October 10, 2011. During the period between the award and the completion of the Contract, this RFP, in conjunction with the accepted proposal, will constitute, unless otherwise negotiated, a legal binding contract between the City and the selected bank. According to the Contract, the City may terminate the Contract upon 90 calendar days written notice. The selected bank shall waive all rights to security interests and rights to set -offs to City deposits. The City retains the specific power and authority to require the selected bank to furnish, such information the City may request or demand concerning the portion of deposits which are issued by the Federal Deposit Insurance Corporation, the amounts of the bank's capital funds, and the nature, amount, market value, and location of the eligible collateral maintained or pledged by it to secure City deposits. • d. Term of Contract 011 The City is seeking a contract for a period of one (1) year, with the option to renew four (4) additional one-year periods. In order to determine the maximum cost of the banking services contract, the City will evaluate each proposal based on the entire contract cost over five years. Therefore, specific annual costs must be given for each of the five years. Please note that Attachment B requires a total dollar cost for each of the five years. e. Commencement of Services The City expects that banking services selected through this RFP process shall commence on or before January 1, 2012. RFP 7266 Banking Services Page 9 of 44 C. General Requirements and Specifications a. Qualifications and Experience Describe the bank's size and location of primary site and service site, size of staff, staff designated for the City's account, and staff designated for the transition First National Bank, a division of First National Bank of Omaha is a locally - operated community bank that merged with First National of Omaha in September 2010. First National Bank of Omaha is a top 50 banking organization with over $14.7 billion in managed assets, $1.9 billion in equity and 4,900+ employees in 35 states. Our primary location in Colorado is 205 West Oak Street in Fort Collins with five additional locations in Fort Collins. Our Cash Management relationship team will provide a full suite of services that you can count on to meet all of your banking needs. One point of contact with a team to backup your primary relationship officer helps you to efficiently manage your business! Your designated account executives are: Christy Kelderman AVP, Cash Management ckelderman@lstnationalbank.com 970-613-4073 Christy has been with First National Bank for over 23 years. As an Assistant Vice President of Cash Management, Christy is responsible for sales and relationship management. She will focus on the entire banking relationship and assist in coordinating other areas of the bank in providing excellent service. Christy has worked in banking for the past 32 years, so her experience level in working with key relationships is almost unmatched in our industry and community. She is a certified ACH Accredited Professional, and has been involved in several fund raising events in the community. Judy Dedrick VP, Cash Management idedrick@lstnationalbank.com 970-613-4072 As Vice President of Cash Management, Judy Dedrick is responsible for relationship management, new product implementation, and product and service management. Judy has 30 years of experience in banking operations, credit card operations, and Cash Management sales and service. She is also responsible for managing the Cash Management staff with an average experience level of 18 years. Judy earned her Bachelor of Science degree in Accounting from Regis University in Denver in 2000 and her Certified Treasury Professional (CTP) designation in June 2004. She volunteers at Exempla Health Care as an Audit Committee member. RFP 7266 Banking Services Page 10 of 44 • Identify key measures of the bank's financial strength, for example, capital ratios, market capitalization, total assets etc. Our 2010 Annual Report is included in the banking services section. Some significant measures include: 2010 ROAE % (Return on Average Equity): 16.99% 2010 ROAA% (Return on Average Assets): 1.35% 2010 Core ROAE% 14.23% Capital Ratio 13.34% Tier 1 Leverage 8.7% Provide ratings for the bank and bank holding company from two of the following agencies: Standard & Poor's, Moody's, Thomson Bank Watch, or VERIBANC. First National Bank is not a publicly traded company. First National Bank is rated Green 3 Stars by Veribanc, Inc. as of 12/31/2010 and is a 4 star rated bank by BauerFinancial, Inc, an independent bank research firm. Bauer Financial recommends the four star rated banks as banks that are financially sound and operating well above its regulatory capital requirements. Key financial measurements are included in the 2010 Annual Report. • Provide Proof of Compliance with the Colorado Public Depository Act (PDPA). The State of Colorado will not disclose compliance information. Our certificate designating us as an Eligible Public Depository is included in the "Appendices" Section. First National Bank is in good standing. • Provide contact names and addresses from three other public entities with service demands similar in size and scope as the City of Fort Collins. Larimer County 200 W Oak Fort Collins, CO 80521 Gary Stoker Poudre School District 2413 LaPorte Fort Collins, CO 80521 LeeAnn Bayer Colorado State University (CSU) Campus Delivery Dr Fort Collins, CO 80521 Katie Nelson b. Collateralization Provisions • Copy of PDPA designation and Certificate of Eligible Public Depository Please see Appendix A for a copy of our PDPA designation and Certificate of Eligible Public Depository. • Explain how funds over $250,000 will be collateralized Full deposit insurance coverage for noninterest-bearing transaction accounts is in effect through December 31, 2012. RFP 7266 Banking Services Page 11 of 44 . When full FDIC insurance coverage is not available, collateral requirements are monitored regularly to ensure adequate pledging is maintained. We are required to collateralize all public deposits up to 102% of the uninsured total. First National Bank of Omaha is currently well above this margin. Our investment portfolio that is pledged for your balances above the FDIC insured limit of $250,000 contains AAA rated securities. The acceptable collateral is in compliance with the citation from 12 C.F.R. Part 9 and includes direct obligations of the United States and readily marketable securities of the classes in which banks exercising fiduciary powers are permitted to invest. For purposes of the Public Deposit Protection Act, an eligible public depository must have and maintain a minimum level of total capital to risk weighted assets in excess of B%. First National Bank's risk based capital ratio is currently at 13.3%, well above the minimum required by law. c. Conversion Considerations The Bank is to assist the City with conversion and compensate the City for any and all costs associated with banking services changes. • Describe the Bank's proposal for conversion. Provide a detailed description of any assistance the Bank would provide to the City during the conversion process. • Banks submitting proposals should describe how they would compensate the . City if the award of this RFP results in a bank change for the City. The description should be specific in addressing items such as: -Collection and replacement of all old forms, check stock, deposit slips, bank bags, endorsements stamps, VISA, MasterCard equipment, etc. -Coordination of computer and computer system compatibility -Customer service assistance during the conversion period -Customer service assistance after the conversion period -Reimbursement for City staff time or temporary employees required to convert services to the new bank -Reprogramming and revisions of the City's financial systems if required Itemize all estimated costs associated with the issues immediately above. Describe how the bank would compensate the City for the cost of conversion if selected. Because First National Bank serves as the current bank for The City of Fort Collins, there would be no transition or cost associated with a conversion. d. Banking Supplies and Forms The Bank will provide supplies and forms for services used by the City • Include a List of all supplies and forms to be used to provide the services • Costs to the City must be itemized and included on the Pricing Schedule First National Bank will provide the City with the deposit supplies needed for all the City services including demand account deposit slips, disposable deposit bags, and • Cashier's Checks. RFP 7266 Banking Services Page 12 of 44 • e. Report Formats All proposing banks must include sample reports. Please see Appendix B for all sample reports. f. Additional or Specific Response Items Related to General Requirements and Specifications: • How will the bank remain aware of and in compliance with federal and state requirements? The Bank operates with a full time compliance and legal staff at the holding company. These areas, as well as Bank management, is responsible for insuring compliance with all Federal and State requirements. In addition, we have a full- time team specializing in maintaining and complying with regulations associated with banking public entities within the State of Colorado. Further, the Bank subscribes to necessary external compliance resource tools (e.g., periodicals, on-line newsletters and compliance related manuals, etc.) and conducts appropriate and periodic training of staff, which is designed to maintain ongoing compliant operations. As Bank products or services materially change, or as external changes in applicable banking law occur, attention is given to impacted staff that may need refreshed training that relates to such changes. • List any known or anticipated banking structure changes for the Corporate, • Primary, and Local offices for the next five years. We do not anticipate any changes in our banking structure in the next five years. The City of Fort Collins will continue to be serviced at the local level by our Cash Management department. The bank recognizes the importance of local representation, especially as it relates to servicing our Colorado public entities. First National Bank of Omaha is also devoting additional resources in the coming years to advance our product development area within the Treasury Services group, and is in the process of updating systems that are utilized by our customers. We have invested several million dollars in the past three years in our lockbox service areas. The investment included upgrades to our Colorado lockbox systems, so we do not anticipate any interruption to maintaining a Post Office Box and lockbox operations within the State of Colorado. List any known or anticipated banking structure changes for the banking industry in general for the next five years. Please be specific. As we look to the next five years, here are some widely -held predictions of four major influences on the future structure of the banking industry. 1) With the passage and implementation of the Dodd -Frank Financial Reform legislation, an entirely new Regulatory body was created, the Consumer Finance Protection Bureau. This new Regulator will have wide-ranging power and authority over all consumer finance businesses. This regulatory authority includes the mortgage business, auto finance, credit card and any other RFP 7266 Banking Services Page 13 of 44 consumer lending. This level of regulatory activity could lead to more consolidation in the banking industry as smaller, community -based banks may have a difficult time managing the increased regulatory burden. This new agency initially does not have direct authority over institutions less than $10Billion in size, but it is our view that ultimately this burden will be passed to smaller institutions, thus creating the potential for consolidation in the industry. 2) Ten years ago the 1930s Glass-Steagel legislation, which separated Investment Banking from Commercial Banking, was for all practical purposes eliminated. This represented significant deregulation of commercial banking and investment banking, essentially eliminating the decades -long separation of these two types of financial institutions. Many Commercial Banks are now engaged in a full array of Investment Banking activity. The 2010 Dodd -Frank legislation will begin the process of the separation of these two types of banking activity once again. As part of the government's response to the 2008 financial crisis, investment banks that took on TARP finance were required to become bank holding companies. These complex structural changes in investment and commercial banking could ultimately lead to a de facto reinstitution of the separation of these banking activities as was previously present under Glass- Steagel. 3) The Basel III capital requirements will likely require larger institutions to maintain higher capital levels. This, along with historic limitations on deposit concentration and additional regulation in Dodd -Frank, could have the affect of • preventing mega -sized financial institutions from getting any larger. 4) Slow economic growth, particularly a protracted slump in housing in the U.S, will make it difficult for banks to grow revenues, thus forcing more consolidation in the industry. • List all recent or anticipated merger, acquisition, or charter change to the Bank that could affect the City in the next five years. Please be specific. First National Bank, a division of First National Bank of Omaha merged with First National of Omaha in September 2010. We do not anticipate any mergers, acquisitions or charter change during the next five years. Describe the type of insurance policy the bank carries on held funds and funds in transit. State the name of the insurance provider. The courier is insured to cover losses of items in transit to the Bank. The items are considered to be owned by the City until physically delivered to the Bank. We would coordinate with the City and the courier to reconstruct the items should the need arise. The insurance carrier for the courier is Marsh Inc. Held funds are considered to be deposited funds and would be secured and/or insured by either FDIC or collateral. g. Emergency Services and Disaster Recovery • Describe the bank's disaster recovery plan in detail; when was the plan last • updated? Tested? o What is the location of the off -site facilities? RFP 7266 Banking Services Page 14 of 44 0 o How quickly can the off -site facilities be activated in case of an emergency? o Has the emergency services and disaster recovery plan been implemented for a real disaster? Please provide a narrative describing the situation. o What is the contingency if the regular disaster back-up site is unavailable and prevents work from being processed on a same day basis? First National Bank has established business continuity plans that help us prepare to react quickly if faced with a significant business disruption by ensuring the health and safety of our employees, safeguarding bank properties, assessing financial and operational impact, quickly recovering and resuming operations, protecting all of First National Bank's information and records, and allowing customers to transact business. The business continuity plans and documents are the operational element of a complex process specifically designed to recover and restore the business functions and technical infrastructure of the company in the event of a disaster. These plans are updated regularly in accordance with the plan maintenance schedule and serve as a manual of responsibilities, processes, actions, guidelines and critical information necessary to effectively restore service in a timely manner. Through surveys, business impact analyses and communication with management, a prioritized list of bank functions and activities identify bank -wide business needs and allowable outage periods. Core banking applications and systems are given the highest priority in the recovery process. The plan provides for the restoration of the designated critical applications and systems within the time frame identified by the business unit and bank management. The plan identifies who can declare an emergency, what factors must be considered and details the activities and procedures to follow during an emergency situation. The Business Recovery Services team has the full-time responsibility of coordinating the development, testing and maintenance of all Bank business continuity plans. First National Bank uses a third party company to facilitate the recovery of our mainframe, document imaging, check sorting and remittance processing systems and our First National Business Park location at 144th and Dodge Street in Omaha Nebraska is used for the recovery of our Tandem and Open Systems environments. The Bank performs annual tests of these hot -sites for the restoration of the critical systems, applications, connectivity and processing capabilities. Upon completion of the test, the recovery results are evaluated and modifications to the recovery plan are made based on test findings. Does the bank compensate in the event of a loss? First National Bank recognizes the importance of working with our valued relationships, especially if an unusual circumstance occurs that is beyond the City's control. We want you to feel secure that we will work through the exceptional issues. While we cannot guarantee compensation especially as it involves a natural disaster, we will make sure that we will assist the City to work through any issue that may arise. RFP 7266 Banking Services Page 15 of 44 First National Bank A division of First National Bank of Omaha September 2, 2011 City of Fort Collins James B. O'Neill PO Box 580 Fort Collins, CO 80521 Dear Mr. O'Neill, 205 West Oak Snect P.O. Box 57S Fort Collins. CO 305"-0573 970.4814561 First National Bank is pleased to respond to Request for Proposal #7266 to provide the City of Fort Collins Banking Services. Understanding of Project Requirements We understand the City of Fort Collins is seeking banking services from a qualified Financial Institution that can provide depository services, electronic payment processing, lockbox services, online services, and armored car services. First National Bank can fully accommodate the City of Fort Collins with all services requested. First National Bank does meet the minimum requirements as indicated in the RFP that includes a Green 3 Star VERIBANC rating, total assets of at least $2 Billion, approval as an Eligible Public Fund Depository, and capital ratios that meet at least the minimum of adequately capitalized. Based on the Criteria for Evaluation of the proposals, we understand that the City of Fort Collins has weighted the Scope of Services, cost, and understanding of the City's needs as the top most important standards. We have an exceptional relationship team to implement our proposed banking service partnership with the City of Fort Collins. The team is led by senior management and includes individuals with experience in providing banking services to public institutions. We are committed to supporting and meeting the needs the City desires to improve your processes and effectively use technology to its greatest advantage. The City of FortCollins will continue to have a relationship team dedicated to providing you with the expertise and knowledge required to handle all your needs with a Sense of Urgency. Commitment The following Account Officers are authorized to contractually represent First National Bank regarding the Banking proposal and assist the City -staff with any question that you have regarding the Banking proposal including technical questions: Judy Dedrick, CTP Christy Kelderman, AAP Vice President, Cash Management Assistant Vice President, Cash Management 970-613-4072 970-613-4073 jdedrick@lstnationalbank.com ckelderman@lstnationalbank.com First National Bank has provided Banking services to the City of Fort Collins for over 28 years and we look forward to continuing this relationship in the years ahead. In this response to the RFP, we believe you will see a commitment to introduce new products and services that will improve the Bank's ability to service the City of Fort Collins banking needs, save money and provide greater efficiency. The proposal we respectfully submit to the City of Fort Collins is irrevocable for the period of the contract. DESCRIPTION OF CURRENT ACCOUNTS AND SERVICES BEING PROVIDED TO THE CITY h. Overview of Current Banking Services First National Bank of Fort Collins is the current provider of banking services for the City. The current banking relationship includes the following accounts and services (detailed descriptions provided below): 1. Item processing (credits and debits: including cash/ check clearing, Automated Clearing House deposits — ACHs and Electronic Funds Transfers — EFTs). 2. Receipt/disbursement accounts and safety deposit boxes. 3. Out -going and incoming wire services. 4. Lock -box processing for utility payments and sales and use tax payments. 5. Daily armored car courier service. 6. Daily transfers via online cash management system. 7. Account statements, reports and account analysis. . i. Accounts and Services i. Item processing 1. Receipts Deposits are collected from several City locations and taken to the bank where they are credited to the City's checking account. The bank also credits payments received from customer utility bills and sales tax receipts through a lock -box arrangement with the City. The bank collects payments on behalf of the City in the form of cash, check, account transfer, wire transfer, EFT and ACH. First National Bank will accept deposits and credits to the City's accounts via armored car or through the lockbox operation. The bank will also credit receipts to the City's accounts that are received in the form of cash, check, account transfer, wire transfer, EFT and ACH. 2. Disbursements The City processes its general payroll every two weeks and its pension payroll monthly. City employees have the option of receiving their payroll in the form of a paycard or a direct deposit. For direct deposit, the City provides the bank with a file containing all account information, and the bank handles the transfer. The City processes its accounts payable checks regularly on Thursday of each week. First National Bank will process the City's payroll utilizing the file that is transmitted based on the schedule outlined above. The bank will send email notifications to the appropriate individuals at the City to indicate that the files have been received successfully. Accounts payable checks will be processed by paper or can be processed through electronic files via ACH. The bank will accommodate the City's schedules as indicated above. ii. Accounts and Safety Deposit Boxes 1. Operating account Primary depository account for utility payment receipts, sales tax receipts and . customer deposits/payments. This account is swept to a zero balance each morning into a local government investment pool. RFP 7266 Banking Services Page 16 of 44 . First National Bank can accommodate the City's operating account needs as described. 2. Payroll account Disbursement account used for bi-weekly and monthly payroll. First National Bank can accommodate the City's payroll account needs as described. 3. Accounts savable account Disbursement account used for all accounts payable checks, EFT, wires and ACH withdrawals. First National Bank can accommodate the City's accounts payable account needs as described. 4. Additional special accounts 1. Self insurance account (payment of claims) 2. HOME program account (receipt of federal grant draws) 3. CDBG account (receipt of program income, grant draws, etc.) 4. Check clearing fund (receipts with insufficient funds, closed accounts, are debited from this account) 5. Utility Funds' mini -checking account (low balance, low transaction account used by the City's utility funds for misc. payments) 6. Three checking accounts used for credit card receipts 7. Municipal Court checking account First National Bank can accommodate all of the City's Special accounts as described. We have additional services available to the City to help manage the accounts and the cash. i For accounts that receive credits only such as the CDBG, General Fund, and Home Program the City may want to consider ACH Debit Block and a Paper Check Block to ensure that no unauthorized activity can post to the accounts. The City utilizes Positive Pay on two of the Demand General accounts. The City may want to consider adding Positive Pay services to the Self Insurance account. The City may also want to consider automatic sweep services. The accounts can be setup to automatically sweep to specific City accounts so that it does not require manual effort by employees of the City. The automatic sweeps are flexible and can be setup with a target balance or a zero balance. The sweeps can be one way sweeps which are recommended on accounts that have credits only or two way sweeps on accounts that have both debit and credit activity. 5. Safety deposit boxes One large (3" by 6" by 12") box is required for use by the City. Currently First National provides one 5x10x22 box for the City at the Main Office. The Bank offers Safe Deposit Boxes at our Main, North College, Boardwalk and Harmony offices. All offices carry a variety of sizes to accommodate most needs. RFP 7266 Banking Services Page 17 of 44 iii. Wire services The City uses the fed wire system as a primary form of payment distribution. Both incoming and outgoing wires are handled by the City's primary banking relationship. First National Bank can accept incoming wires up to 4:00 p.m. local time. Any wire received prior to this cut off will be credited and available the same day for investment. Wire transfer activity is available for viewing online, so your staff will not have to wait for the mail to receive the information about these transactions. The detail online will help you immediately to determine the source of the funds within minutes of receiving the wire. Currently the City utilizes our online wire transfer module that is available through our online system, Cash Management Online, to initiate wire transfers. Wire transfers can also be initiated via the phone and in person at a Bank branch. The deadline for all wire transfer initiation is 2:30 PM local time. Our Internet based services require 128-bit encryption. The Bank will enforce the level of security desired by the City of Fort Collins based on the wire transfer agreement. The online wire application allows the City to provide certain individuals with limited or full access. Authorization levels are established by the procedures set forth in the Funds Transfer agreement, and by the City's online Administrator who sets up each individual on the online system. iv. Lock box processing • The Lock box must have a Fort Collins postal address. The City has a lock box arrangement with its current bank. Items are processed centrally at the primary bank location and credited directly to the City's account. First National Bank currently processes Utility payments through our lockbox center in Loveland Colorado. Currently we provide the following services through our lockbox processing including: Our lockbox operation is local enabling the City to continue to operate with a post office box in Fort Collins. Online access will continue to be available for lockbox totals and images. A daily extract file of your utility receipts will be available for posting to your accounting system to reduce the manual effort at the City while helping to minimize data entry errors. ➢ We will continue to provide the City with a CD Rom of all of your utility lockbox payments monthly for efficient long-term storage. We are pleased to provide the City with account number validation for your utility payments so that invalid account numbers do not impact your file posting into your accounting software. We have additional options available within our lockbox area that the City does not currently utilize including: The bank rejects approximately 1,000 payments each month back to the City. Most of the rejects are associated with payments that are received without • coupons. We can establish a "ghost" account within our lockbox system so that the payments are viewable online the same day that they are processed. RFP 7266 Banking Services Page 18 of 44 City employees can utilize this online system to post the payments without delaying the actual payment. Our lockbox software now has an online decision module that allows the City to resolve payment exceptions relative to missing or incorrect data. This could be used instead of a "ghost" account as mentioned above. We can provide the City with a MICR database which maintains ABA routing and account number information for previously applied payments to the City's customers' accounts. Address change isolation and presentment can be provided to the City in a separate file for viewing and updating or can be reviewed in the image archive. ➢ A remote deposit platform that is integrated with the remittance processing platform providing a consolidated payment archive and accounts receivable payment application file for orphaned payments sent directly to the City's utility locations. Sales/Use Tax lockbox payments are also processed at our lockbox service center in Loveland Colorado. While sales/use tax lockbox service is manual, some of the same options are available to you for these payments as is the case with your utility payments such as internet access to deposit totals and images. It may also be valuable to explore data entry options so that an extract file can be created for the City so your staff's process is also efficient for these payments. The bank would be happy to provide the City with a project team to work with the City's employees to explore possible enhancements to the lockbox service. v. Armored Car Courier Service The City's current banking services includes an armored car courier service that picks up deposits and receipts on a daily basis. The deposits are taken directly to the bank and credited to the City's account. The current armored car provider used by the Bank for the City's courier service is Loomis Fargo. The Bank will negotiate all daily services with this company or, if necessary, other companies on behalf of the City to receive the best pricing and service. Arrangements will be made to have the deposits picked up and delivered to the Bank for credit to the City's account same day. vi. On -Line Services On-line services will include the ability to review balance reporting for all accounts (prior day, current position, and lockbox availability), view disbursement account activity and initiate stop -payments, generate wire and ACH and book and drawdown transfers, and allow the setup of repetitive transfer templates. First National Bank can accommodate the City's Online Service needs that include balance reporting, account activity, stop payment initiation, Wire and ACH origination. The bank is investing into upgrades of the current online service in the first half of the year 2012 to include enhancements to the existing balance reporting system and wire module. The bank will also offer a wider range of email alerts to assist the City staff to better manage payments, balances, and activity. RFP 7266 Banking Services Page 19 of 44 0 E 0 i i I vii. Account statements! reports, and account analysis The bank provides: • Detailed account statements (hardcopy reports and data files) —Monthly Detailed account statements will be provided to the City Online on the 1 s` business day of the month. In addition statements will be provided to the City in paper form on a monthly basis. • Detailed account analysis — Monthly Detailed account analysis statements will be provided to the City Online by the 121h business day of the month. • CD-ROM containing images of cleared checks- Weekly A CD-ROM containing the images of cleared checks will be mailed on a weekly basis. Currently the City receives 2 CD-Rom's monthly. • Credit card merchant statement — Monthly The credit card merchant statement is provided by the merchant credit card processor at this time. Faxed copies of ACH returns — as needed ACH returns are provided online through the Cash Management Online system the same day they are received. An email alert is sent to the designated City employee(s) to let them know there is a return. The bank calculates all costs for services that are off -set by an earnings credit from compensating accounting balances. The account analysis statement depicts costs that are directly related to the number of transactions (for example, lock box processing, credit card processing, etc. The bank will continue to charge the City's service charges through the analysis statement. RFP 7266 Banking Services Page 20 of 44 RESPONSE ITEMS FOR ACCOUNTS AND SERVICES 0 j. Proposal for Accounts and Services • Proposals from banks must include a description for providing the City with accounts and services: o This should be a detailed technical and narrative response regarding the ability to provide and availability of the services itemized in Section XI. o Information provided in this narrative portion of the proposal must in be the order described in Section XI. o The narrative should adequately describe how the services proposed by the bank match the current banking services requirements of the City. o The narrative should provide a detailed description of the bank's proposal for the City's account structure, including the number and type of accounts, the relationship between the accounts, and the ability to transfer and track account balances. • Please include a description of all reporting and communication methods and identify any customer service issues. • All proposals for accounts and services must provide the minimum level and type of services described in Section XI. Any variations from the services currently used by the City must be expressly listed. • Proposals for accounts and services should be limited to services that provide, or are directly related to, the services described in Section XI. Any enhancements to the services described in Section XI must be provided in Section XIII: Additional or Future Services. See Section IX C-1 k. Additional or Specific Response Items Related to Accounts and Services • For each of the services desired by the City, explain how the bank will be compensated for its services. The Bank will be compensated by an earnings credit paid on balances through the monthly analysis statement and charged to the designated City account. • Describe how all charges for services and supplies are to be paid. Include all itemized costs for services on Attachment B- Service Pricing Form included with this RFP. All charges for fees, services and supplies will be allocated through the analysis process. • Describe the process required for the City or the bank to change or amend procedures. In the event the Bank or City would need to change or amend any procedures the bank will work directly with the designated City staff with the authority to make such decisions. Should the changes or amendments require a signature the bank will deliver the paperwork to the City. • State the procedure for dating the deposits that are delivered to the bank by courier. Is there a specific cut-off time for deposits to be credited on the same RFP 7266 Banking Services Page 21 of 44 day as deposited? Will they be dated as of the calendar day of delivery, especially on the last working day of the month? Deposits delivered by Armored car to a branch by 3:00 p.m. will be credited the same day. The deposits will be dated as of the calendar date of delivery, including the last working day of the month. • Describe how deposits will be listed on the bank statements. Deposits will be listed on the bank statement in date order. The bank has the ability to list location or department codes on the deposit tickets. This would allow the City to track deposits by location or department efficiently through the online system. The bank can discuss this in further detail the City has interest in reporting deposits by location. Please provide a detailed narrative describing your bank's controlled disbursement and positive pay processes. Currently the City does not utilize a controlled disbursement account. The City utilizes the Cash Management Online system to monitor all account activity, transfer funds between First National Bank accounts. and wire funds outside of First National Bank. The bank does have the ability to accommodate a controlled disbursement account by clearing items through another First National Bank affiliate in Fremont Nebraska. We would be happy to discuss the details with the City should there be a need. First National Bank is able to accommodate the City with Positive Pay services. Currently we work with your staff to extract information from the City's accounting and payroll software for upload into the Bank's positive pay system. This "issue" file is matched to a file of paid items that has been generated by the bank. If a check is presented for payment that is not in the issue file, an email alert will be sent to the designated staff to let them know that exception items are pending in the positive pay module online. The City's designated staff accesses the exceptions online and chooses to Pay or Return those items. • Describe the formats and media the bank's computer system accepts: - Checks issued and deposits for the month (City providing information to the bank) - Paid items and deposits received (bank providing information to the City) - All exceptions to the above. First National Bank can accommodate the majority of file formats used for both check issues and reconciliation. Currently the bank receives issue files through the online banking web site and sends the City the paid files monthly through a secure web site with standard formats. No file format changes need to be made at this time. • Describe how the bank will provide check cashing services for City employees with City checks who do not have an account with the bank. All City employees are able to cash City of Fort Collins checks, without any fees, whether the employee has a relationship with the Bank or not. Our only RFP 7266 Banking Services Page 22 of 44 . requirement is proper identification and a fingerprint in order to protect the City as well as the Bank. Indicate the cost of accounts for new City employees using direct deposit or for current employees who change to direct deposit. First National will accommodate the City's employees in opening an account with no minimum balance subject to qualification. Employees will be offered our First At Work Banking Program. The First at Work program is an exclusive account with great benefits; Free checking account if direct deposit is made once a month(1) Unlimited check writing Free Visa@ Check Card First order of checks free (subsequent orders at regular price) Low introductory rate on a Visa@ Credit Card (2) y Two free ATM transactions per month (3) i Free Online Banking Free BillPay Free eStatements Y Toll -free 24-Hour Telephone Banking 1. Subject to qualification. No minimum balance to open • 2. Subject to credit approval. 3. Surcharges apply on foreign ATMs. An ATM is considered a "foreign ATM" if it is not branded with the Circle One ATM logo. If we own the foreign ATM: (1) we will not charge you a foreign ATM fee for using it; (2) if a surcharge applies, it will be disclosed at the ATM. Contact a Personal Banker for a complete listing of the Circle One Logo ATMs. "Free withdrawals from a foreign may be reimbursed to the extent that your account terms cover foreign ATM surcharge reimbursements). Describe how the bank will use Electronic Data Interchange, Electronic Funds Interchange or other technological methods to pay City invoices. First National Bank offers a full range of electronic data interchange (EDI) services including: The bank can accommodate the City to provide options for using ACH to pay vendors or to use our purchasing card program —both can streamline your procurement process. v ACH Vendor Payments can be processed through our Online system —A CCD type code is an available option when paying vendors, so additional addenda information may be sent as part of the payment record. Dual controls help to secure the ACH Vendor Payment process just as with accounts payable checks, you can designate an entry person and a ':signer" that can release the payments • Describe armored car service to the City according to the schedule provided at Attachment D. Include all costs and describe how this service would operate. If unable to provide this service, explicitly describe an alternative arrangement. First National Bank has contracted and will continue to contract with Loomis Armored car to pickup and deliver deposits on behalf of the City. The monthly RFP 7266 Banking Services Page 23 of 44 i service stops at 22 locations based on a pre -determined schedule as indicated in Attachment D for all but;three of the stops. For the scheduled stops, Loomis charges a flat monthly fee that averages $366 per location that includes an insurance fee, and a fuel fee. The fuel and insurance fees can vary especially as gas prices fluctuate. We have had discussions with Loomis to determine how the City may reduce armored service expense. The following are recommendations that the City may want to consider in an overall expense reduction for this service: All armored car companies charge on a per stop basis even if the stops are within the same location. The City has three separate stops at 215 N Mason, so we would recommend the three departments consolidate deposits to one department to save approximately $10,200 per year. Loomis is contracted to pickup two times a day at the Customer Information Services department. The City should consider reducing this to one time per day to realize an additional savings of approximately $5,700 per year. The three locations that are not on a regular scheduled pickup include Collindale, City Park, and Southridge Golf Courses. The City should consider a summer and winter schedule, and contract to setup a regular schedule for the golf courses. This could potentially save the City an additional $3,000 per year. • Please address the following daily cash management and investment issues: • - Minimum balance for accounts The Bank will not require any minimum balance to be held in the accounts unless the City wishes to offset'service charges imposed with balances. In that case, the Bank will work with the City's staff to determine an appropriate balance level to be maintained. j The Bank will offer a tiered Earnings Credit Rate to the City for higher balances that is subject to change, however, the current earnings credit rate tiers are as follows: Collected balances $0 - $500,000 earn .25% earnings credit rate. Collected balances $501,000 - $999,999 earn .35% earnings credit rate. Collected balances $1,000,000 + earn .45% earnings credit rate. - Method used for handling daylight overdrafts First National Bank can provide for daylight overdrafts as long as a cap is established and approved at least on an annual basis. The bank does not currently have an approved daylight overdraft cap for the City, but this is a service we would be happy to provide based on an agreed upon dollar amount. - How and when the bank will notify the City when an account on direct deposit is closed Direct deposit returns and correction notices are reported online through the Cash Management Online system the same day they are received. An email alert is sent to the designated City employee anytime a return has been received and reported through the online system. RFP 7266 Banking Services Page 24 of 44 0 Requirements for notification of cancellation of direct deposits, both before and after the tape is processed by the City and provided to the Bank Any change that needs to be made to an ACH file after the file has been transmitted to the Federal Reserve will require a reversal file to be sent. The reversal file will need to be prepared within 5 days of the effective date of the file, in accordance with the NACHA rules. The Bank will work with the City staff to insure the file is constructed properly and timely. - Describe the time variance between processing the direct deposit tape by the Bank and the official release date of funds The Bank will accept a direct deposit file with a next business day effective date, although we encourage customers to consider sending files two days in advance of the effective date to allow for recovery should there be any issues with the file. The receiving financial institution is required to have the ACH funds available for their customers by their opening of business on the day of settlement. I. Performance Indicators The Bank Administration Institute has established quality indicators for services contemplated in this Request for Proposal. Does your bank measure performance using these indicators? If so, please indicate the measurements reported for the most recent Annual BAI survey. If not, please provide other indicators of the quality of services that your bank would provide to the City. We are careful to consider customer feedback as our number one source for implementing quality improvements. While it is important to measure errors as is the case with the BAI critical quality report, it is also as important to listen to the feedback from our customers and it is important to evaluate our competition. We will meet with the City regularly t illicit edback about our services. We have found this is the most effective or cess to measure the quality of the service we provide. As we have received suggestions from the City's staff, we have responded to or noted needed enhancements for the future. m. Implementation • Provide a copy of all documents the bank will require to implement the services that it would provide to the City. • Provide a detailed description of the implementation process, including testing, and a sample implementation schedule. • What is the average lead time required for implementation? What are the critical factors that may impact the lead time? • Describe the training the bank will provide for the implementation, including materials to be supplied by the bank or required of the City. Because the City of Fort Collins already banks with First National Bank and most services are being utilized, there will be no new documents, processing, testing or training needed on existing services. RFP 7266 Banking Services Page 25 of 44 James B. O'Neill Page Two September 2, 2011 Enclosures 1. Executive Summary 2. Responses to the "Minimum Requirements" 3. Responses to the "General Requirements and Specifications" 4. Responses to the Response Items for Accounts and Services 5. Responses to the "Additional or Future Services and Enhancements" 6. Account Analysis Form 7. Signed Copy of the Proposal Certification Form (Attachment A) 8. Completed Service Pricing Schedule 9. Addendum No. 1 Receipt Acknowledgement 10. Appendices PDPA Certificate Sample Reports Remote Deposit Capture Agreement ACH Debit Block Agreement First National Bank has been a leader in financial services for over 150 years. Our commitment in this proposal is a reflection to our commitment to the community and to the long term growth of our area's economy. Respectfully submitted, FIRST NATIONAL BANK Mark Driscoll President D. Future Services and Enhancements The following are examples of areas that a bank could provide service enhancements. The list is intended to be illustrative, not limiting. a. Credit Cards. Corporate Card Program: First National Bank of Omaha Corporate Card offers a program that allows for expedited vendor payments, better cost management with spending controls, and easily manageable company purchases with innovative options like Central Billing Accounts, Declining Balance Cards, One Time Usage Cards, and Virtual/Ghost Accounts. Access to online reporting is a feature that adds value to the program. At any level, including company, department, organization point, or individual cardholder, the City will have the ability to control spending across their cardholder base by utilizing the restrictions such as Transaction limit controls, Credit limits, Cash, Industry / Merchant Category Code restrictions (MCC). These restrictions will be determined during Implementation based on requirements of the City, and may be modified as the needs or structure grow and change. In addition to our standard Commercial Card, First National Bank of Omaha can offer several product variations in order to allow for more robust controls through unique product offerings, in addition to the restrictions and controls already highlighted. To provide maximum flexibility, First National Bank of Omaha offers eighteen (18) different billing cycles to choose from. First National Bank of Omaha can offer the City various Payment Options, such as Conventional Checks, Online Payments, Auto Pay, Wire Transfers, and Phone. We offer Central Billing accounts, where charges roll nightly to a central account. Central Billing accounts are perfect for organizations needing to receive one bill for a group of charges and make payment for all individual accounts that fall under that central bill. Individual accounts will receive a 'memo' statement (memo bill) that details out transactions, but no payment is due from the individual account holder. We can also offer Individual Billing. A statement / bill will be produced for each individual account, and payment will be due from each individual account holder. Commercial Card Online Reporting: First National Bank of Omaha's robust reporting tool, Commercial Card Online Reporting (CCOR), offers a series of 'modules' that include: • Over 20 standard reports, • Customized reports for over 700 data points, • Expense reporting including ability to add cash receipts, and • Cost accounting module including the ability to manually assign, or set default accounting codes. CCOR's modules are accessible and customizable according client's needs. • CCOR includes 24x7 access via a secure website, user defined access that is RFP 7266 Banking Services Page 26 of 44 C J password protected and accessible via Internet Explorer 5.5 or Mozilla Firefox 1.5. Key highlights of the comprehensive online reporting tool include: • Aggregated view of the entire organization, specific organization points or specific accounts; • Report scheduler which allows scheduled reports to run one time, daily, weekly and monthly; • Query data by custom billing cycles; • Email notification on completion; • Advanced filtering; • Standard report formats include PDF, Word or Excel. There are over 20 standard reports available in 14 different languages including: • Program management • Spend analysis at various levels such as organization point, account, etc. • Merchant activity • Expense review First National Bank of Omaha can provide the City a daily data file of all card transactions via online reporting tool. First National Bank of Omaha provides 36 months of rolling history via our online reporting system. Additionally, up to seven years of data could be restored from archive, should there be a need. The reports that are available electronically can be emailed, viewed online, or off line. Additionally, customized reports are also available as PDF output. First National Bank of Omaha is able to provide Level I, II and III data for all Commercial card transactions. However, Level II&III data is driven at the merchant level. If merchants provide that type of data, our client's would be able to retrieve that information. If a vendor list is provided then First National Bank of Omaha will provide a vendor matching list in order to identify those vendors that supply that detailed transactional data. Commercial Card Program Support: First National Bank of Omaha will provide the City with hands-on training for Program Administrators, managers, accounting staff, etc deemed necessary by the City. Training guides and manuals will be provided throughout the training process for your reference both during training and in the future. We also hold monthly webinars for Program Administrators which typically review specific functionalities of the CCOR system on a monthly basis. First National Bank of Omaha has an extensive disaster recovery program that is in place nationwide. Card authorization is uninterrupted. Our standard, which we test annually, requires us to become fully operational within a 24-hour time frame should a disaster render the First National Bank of Omaha Technology Center unusable. RFP 7266 Banking Services Page 27 of 44 • First National Bank of Omaha offers both corporate liability and joint and several liability card programs for the Travel and Entertainment program, and corporate liability only for our Purchasing Card program. With corporate liability the City will be the only liable party, and no credit will be pulled on individual cardholders. With joint and several liability (offered on our T&E cards), the cardholder holds primary liability, with the City serving as the secondary liability upon extreme cardholder delinquency. Commercial Card Program Benefits: First National Bank of Omaha also offers Rewards and Revenue Share program which is based on billing or liability type, file turn or client held days or average transaction size, or normal uncomplicated credit card payment terms of a 30-day cycle and a 25 day grace period. We offer several business rewards programs. In addition to that we have developed customized rewards programs based on the specific requirements of our partners. The standard business rewards program is Maximum Rewards@ for Business. Maximum Rewards@ for Business is a points -based program which allows cardholders or companies to earn points on every purchase. Business cardholders are awarded one point for each one dollar in qualifying card transactions posted to the cardholders account. Rewards include cash back in the form of a credit to the account, travel, gift cards, electronics, charitable donations, items for business and home, sports and outdoors, accessories for any occasion, experiential travel and much more. . All the above mentioned services can be offered to you for a very minimal charge of $10 per card, and a more detailed pricing schedule and references can be provided to you upon First National Bank of Omaha being chosen as one of the finalists. b. Additional Services at City Locations The City is interested in the bank's ability to provide banking services to specific City locations that may benefit City customers and employees. For example, a bank may be willing to set up a limited banking services site at City locations that have high service demands. Another example would be providing Automated Teller Machines at certain sites. First National Bank would be happy to evaluate the banking services needs of specific locations. We would also be excited to be invited into employee benefit meetings to provide them with our First At Work program that can provide employees with discounted bank services. c. Short-term Financing From time to time, the City may need to have short-term, emergency financing available. Please indicate the bank's willingness to have such "on -demand" short-term financing service. Please explain the minimum and maximum amount and term of the financing. Please indicate the procedure and time frame to arrange such financing. First National Bank is a full service lending organization. Whatever the objective - whether the City needs to acquire equipment or inventory, fund acquisitions, purchase real estate or maximize cash flow we can provide appropriate, RFP 7266 Banking Services Page 28 of 44 competitively priced financing. All requests are subject to standard underwriting guidelines and we strive to make the process fast and efficient. d. Small Scale Financing Occasionally, the City or its component units need to conduct short-term borrowings. Please indicate the bank's interest in participating in small, short-term borrowings. The City would like to know how competitive the bank could be in such situations. First National Bank is a full service lending organization and will review any lending need the City may have. The bank has the ability to offer lines of credit that can be drawn on to meet short term funding needs. e. Bond Issues and Lease -Purchase Transactions The City is a regular issuer of long-term bonds and lease -purchase transactions. Please indicate if the bank has the capability, interest, and competitiveness to bid on such transactions. Does the bank have the experience and capability to provide financial advisor for competitive sale bond issues? First National Bank Wealth Management is currently providing Lease -Purchase Services to the City of Fort Collins within your Lease Payment Agreements. Annual fees are based on processing and administrative responsibilities and our minimum annual fee is $2,500. This fee would be waived on all future Lease Payment Agreements for the City of Fort Collins as part of this proposal. First National's Corporate Trust group has been an experienced provider of trust and custodial services to institutions since 1929. Our clients include municipalities, corporations, insurance companies, retirement plans, foundations, endowments, and mutual fund companies. The Corporate Team provides administration services for relationships in which First National acts in one of the following capacities: • Trustee and/or Paying Agent for municipal bond issues • Escrow Agent for various types of escrow arrangements including subscriptions, holdbacks, and tax deferred exchanges • Securities Custodian for institutional relationships, including endowments, foundations, insurance companies • Taft -Hartley trusts, mutual funds, and investment entities As of December 31, 2010 First National acted as (1) trustee, paying agent and registrar for 50 municipal bond issues with aggregate principal outstanding of $636 million and (2) paying agent and registrar for an additional 153 bond issues. We also act as (1) transfer agent and registrar for several issuers of common stock, (2) as escrow agent in a variety of matters, including bond defeasance escrows, and (3) paying agent for corporate acquisitions. f. Training Programs for City Employees Many of the City's employees have an interest in investing, economics, finance, and banking. Please describe any training or educational programs the bank may provide to employees of their clients. Please indicate the banks level of interest in partnering with the City to provide such a program for its employees. RFP 7266 Banking Services Page 29 of 44 We have worked with several different segments in the community to provide information on a variety of topics. Credit (the benefits and consequences) has been a popular topic at presentations for various service organizations. With the wealth of expertise at First National Bank, we can address virtually any topic that is important to your employees. g. Technological Advances The City is interested in technological advances that the bank has to offer. Please identify areas of technology in which that the bank is proficient. The City is continuously seeking methods to use technology to improve productivity and enhance customer service. Throughout this proposal, we made some recommendations regarding services we believe will benefit the City. The following is a summary of technological advances we would encourage the City to evaluate: 9 The City may want to consider Remote Deposit Capture within the utility area to capture rejected lockbox transactions. The Bank can integrate reporting into the Iockbox extract file for posting to the City's accounting software to help to improve work flow efficiencies. This process would take about one week to receive the scanner, install and train your staff. See appendix C for Remote Capture Customer Application Form. We would also like to recommend ACH Debit Block or ACH Debit Filter to add as fraud control on City accounts. If an ACH item is presented for payment and is not on the authorized list an email alert will be sent to the designated City employee. This individual and then make the decision to pay or return the item. ACH Debit Filter would take about 3 days to implement once the agreement is signed. Training is minimal and requires only a few minutes to show the designated user how to review exceptions online. See appendix D for Smart ACH Blocking Form. We have many more options available to the City within our Iockbox area to reduce the number of rejected items. The Bank would be happy to assign a project team to work with the City to explore possible enhancements to improve the efficiency of processing items through the Iockbox area. The Bank is currently working on a project to upgrade our Cash Management Online system that we anticipate will take effect in the first half of 2012. The enhancements will include a number of changes to the balance reporting and wire modules. We are also looking to invest in additional email alert options to help the City better manage processes, payments, and transactions. h. Other Enhancements The City is continuously striving to keep up with advances in the finance and banking fields. Please indicate any other services or capabilities that your institution believes would be beneficial to the City of Fort Collins. The Finance Department is always interested in suggestions to improve the way it conducts its financial procedures and affairs. Practical suggestions may or may not be considered in the evaluation of the proposal. RFP 7266 Banking Services Page 30 of 44 0 We would encourage the City to review all deposit accounts to ensure there is adequate fraud protection such as positive pay. The City does not utilize positive pay on all accounts. ➢ We believe that the City can save approximately $19,000 per year making changes to schedules and consolidating pickup locations. RFP 7266 Banking Services Page 31 of 44 . ACCOUNT ANALYSIS FORM See appendix E. 0 11 RFP 7266 Banking Services Page 32 of 44 ,. ATTACHMENT A - CERTIFICATION BY INSTITUTIONS RESPONDING TO THE REQUEST FOR PROPOSALS City of Fort Collins Request for Proposal: 7266 Banking Services Proposal Certification The undersigned hereby affirms that: 1. He or she is a duly authorized agent of the Bank issuing this proposal and that all information provided in the proposal is true and accurate; 2. He or she has read the conditions and specifications that have been made available to the bank in conjunction with this RFP and fully understand and accepts these terms unless specific variations have been expressly listed in the bank's proposal; 3. The bank will follow and adhere to all terms and conditions and provide, at a minimum, all services as expressed in the RFP and the bank's proposal responding to the RFP; 4. The bank is qualified as a public depository as required in this RFP or, if not, has submitted a Justification for Consideration addressing any failure to meet the criteria; 5. The bank's proposal is offered independently of any other proposer and is in full compliance with the terms specified in the RFP; 6. The bank will accept any awards made to it, contingent on contract negotiation, as a result of this RFP for a minimum of ninety (90) calendar days following the date and time of the bid opening; and 7. If awarded a contract, the bank warrants that it will not delegate or subcontract it's responsibilities without the express prior written permission of the City of Fort Collins. Signature of Bank Official: Name of Official (typed): Title: Name of Bank: Date: Vice President, Cash Management First National Bank September 2, 2011 . Note: Proposals submitted without the manual signature of an authorized agent of the bank may be considered non -responsive and ineligible for award. RFP 7266 Banking Services Page 33 of 44 0 • Attachment B - Service Pricing Form PRICING SCHEDULE Type of Service Annual Number of Items Processed Cost per Item or I monthly charges Annual Cost o Service A Depository Services Demand Accounts 8 Activity Interest -bearing demand accounts $ 1,000 $ 48,00 Non -interest bearing demand accts E $ 1.000 $ 96.00 Balance transfers 1,50C $ 0.100 $ 150.00 Deposits by check(local) 446,0 $ 0.043 $ 19,178.00 Payment of checks (clearing) 32,052 $ 0.060 $ 1,923.12 Check redeposit ] $ 0.500 $ 350.00 Slop payments 20 $ 2,500 $ 500.00 Returned checks 70 $ 1.000 $ 700.00 Banking Supplies Checks 1, $ 0.080 $ 80.00 Demand account deposit at psi 4, $ 0.050 $ 200.00 Currency exchange 12 $ $ Cashier's checks 1,0 $ Safe deposit box 1 $ $ Coin wrappers 3,00 $ $ Petty cash requests 61 $ $ Locking money bags $ $ B. Automated Clearing House Originated — DebiVChonil 182,00 $ 0.050 $ 9,100.00 Return Items 22 $ 0.500 $ 112.50 Batch Items 18 $ 0.500 $ 90.00 C. Wire Transfer Services $ Incoming domestic 12 $ 2.000 $ 250.00 Outgoing domestic 7 $ 5.000 $ 3,750.00 Incoming intemalional 1 $ 2.000 $ 20.00 Outgoing international 1 $ 5.000 $ 50.00 D. Lock Box Service Utility Payments 258, $ 0.167 $ 43,086.00 Sale B Use tax payments 40, $ 0.250 $ Motto W Pages Shredded 3W.00 $ - $ - E. Controlled Disbursement, Account Recon and Positive Pay Item Recon & Positive Pay 32,05 $ 0.030 $ 961.56 Reconciliation Reports 1 $ Is F. Information Reporting Amt statements (hardcopy rpt) 14 $ $ Account statements (file) 14 $ $ Cleared checks images (CD-ROM) 2 $ 10.000 $ 3,120.00 Amount analysis 1 $ $ G. On -Line Banking Service Access Online Services Is 60.000 1 $ 2,160, 0 H. Armored Car Courier' Number of City locations 2 $ 366.000 $ 87,840.00 Number of pickups 3. I. Bank Representatives to Work with City TOTAL ANNUAL COST OF SERVICE for 2012 TOTAL ANNUAL COST OF SERVICE for 2013 TOTAL ANNUAL COST OF SERVICE for 2014 TOTAL ANNUAL COST OF SERVICE for 2015 TOTAL ANNUAL COST OF SERVICE for 2016 TOTAL COST FOR FIVE YEARS Current Earnings Credit Rate on Compansating Belames: $186,643.00 $189,607.00 $192,660.00 $195,805.00 $199,044.00 $963,759.00 For balances greater than $1 mitlion Current ECR is.45%. Comments 'Applies to credits, not the cost of the supplies. 2Armored services will be a pass through from the armored car service that Is contracted. RFP 7266 Banking Services ��C.,2 Page 34 of 44 0 ATTACHMENT C - PROPOSAL PREPARATION CHECKLIST City of Fort Collins Proposal Checklist Part 1. The Proposal Title Page Table of Contents Executive Summary Response to Section X Response to Section XI Response to Section XI Response to Section XIII Account Analysis Form Samples of Bank Transaction Form, Supplies, and Reports Executed copy of Attachment A- Certification by Institutions Responding to the Request for Proposals Completed copy of Attachment B- Services Pricing Schedule Appendices Part 2. Additional Items (not bound with the proposal) Signed Letter of Transmittal Written Justification for Consideration (only for banks that do not meet the minimum requirements) Three (3) most recent Financial Statements Proprietary or confidential information Please cross-reference such information to the appropriate section of the bound proposal RFP 7266 Banking Services Page 35 of 44 [l 4 1] 0 ATTACHMENT D-ARMORED CAR COURIER SERVICE STOPS City of Fort Collins Banking Services Armored Car Courier Service Stops Facili Street Address Service Fre uenc DaV of the Week City Finance Department 215 N. Mason, 2Id Floor 5 times a week Customer Information Services 117 N. Mason Street 10 times a week Municipal Court Office 215 N. Mason, 1s' Floor 5 times a week Recreation/Northside Aztlan Center 112 E. Willow 5 times a week Library 201 Peterson Street 5 times a week Museum 200 Mathews 1 time a week Friday Mulberry Pool 424 W. Mulberry 5 times a week EPIC 1801 Riverside Avenue 5 times a week Lincoln Center 417 W. Magnolia 5 times a week Senior Center 1200 Raintree 5 times a week Cemetery 1900 W. Mountain Ave. 1 time a week Parks Department 413 S. Bryan 1 time a week Collindale Golf 1441 E. Horsetooth Road 4 times a week City Park Nine Golf 411 S. Bryan Street 4 times a week Southrid a Golf 5750 S. Lemay Street 4 times a week TransFort 6570 Portner Road 1 time a week Parking Office 215 N. Mason, 1" Floor 5 times a week Parkina Gara a 102 Remington Street 6 times a week Building Inspection 281 N. College 5 times a week Police 2221 Timberline 1 time a week Engineering 281 N. College 5 times a week RFP 7266 Banking Services Page 36 of 44 0 a ATTACHMENT E-CITY OF FORT COLLINS STANDARD SERVICES AGREEMENT (SAMPLE) SERVICES AGREEMENT THIS AGREEMENT made and entered into the day and year set forth below by and between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter referred to as the "City" and , hereinafter referred to as "Service Provider". WITNESSETH: In consideration of the mutual covenants and obligations herein expressed, it is agreed by and between the parties hereto as follows: 1. Scope of Services. The Service Provider agrees to provide services in accordance with the scope of services attached hereto as Exhibit "A", consisting of pages and incorporated herein by this reference. 2. The Work Schedule. [Optional] The services to be performed pursuant to this Agreement shall be performed in accordance with the Work Schedule attached hereto as Exhibit "B", consisting of ( ) pages, and incorporated herein by this reference. 3. Time of Commencement and Completion of Services. The services to be performed pursuant to this Agreement shall be initiated within ( ) days following execution of this Agreement. Services shall be completed no later than . Time is of the essence. Any extensions of the time limit set forth above must be agreed upon in a writing signed by the parties. 4. Contract Period. [Option 11 This Agreement shall commence upon the date of execution shown on the signature page of this Agreement and shall continue in full force and effect for one (1) year, unless sooner terminated as herein provided. In addition, at the option of the City, the Agreement may be extended for an additional period of one (1) year at the rates RFP 7266 Banking Services Page 37 of 44 . provided with written notice to the Professional mailed no later than ninety (90) days prior to contract end. 4. Contract Period. [Option 2] This Agreement shall commence 200 , and shall continue in full force and effect until , 200 , unless sooner terminated as herein provided. In addition, at the option of the City, the Agreement may be extended for additional one year periods not to exceed ( ) additional one year periods. Renewals and pricing changes shall be negotiated by and agreed to by both parties. The Denver Boulder Greeley CPIU published by the Colorado State Planning and Budget Office will be used as a guide. Written notice of renewal shall be provided to the Service Provider and mailed no later than ninety (90) days prior to contract end. 5. Delay. If either party is prevented in whole or in part from performing its obligations by unforeseeable causes beyond its reasonable control and without its fault or • negligence, then the party so prevented shall be excused from whatever performance is prevented by such cause. To the extent that the performance is actually prevented, the Service Provider must provide written notice to the City of such condition within fifteen (15) days from the onset of such condition. [Early Termination clause here as an option 6. Early Termination by City/Notice. Notwithstanding the time periods contained herein, the City may terminate this Agreement at any time without cause by providing written notice of termination to the Service Provider. Such notice shall be delivered at least fifteen (15) days prior to the termination date contained in said notice unless otherwise agreed in writing by the parties. All notices provided under this Agreement shall be effective when mailed, postage prepaid and sent to the following addresses: City: Copy to: Service Provider: City of Fort Collins City of Fort Collins Attn: Purchasing Attn: PO Box 580 PO Box 580 Fort Collins, CO 80522 Fort Collins, CO 80522 RFP 7266 Banking Services Page 38 of 44 In the event of early termination by the City, the Service Provider shall be paid for services rendered to the date of termination, subject only to the satisfactory performance of the Service Provider's obligations under this Agreement. Such payment shall be the Service Provider's sole right and remedy for such termination. 7. Contract Sum. The City shall pay the Service provider for the performance of this Contract, subject to additions and deletions provided herein, per the attached Exhibit "A", consisting of pages, and incorporated herein by this reference. 8. City Representative. The City will designate, prior to commencement of the work, its representative who shall make, within the scope of his or her authority, all necessary and proper decisions with reference to the services provided under this agreement. All requests concerning this agreement shall be directed to the City Representative. 9. Independent Service provider. The services to be performed by Service Provider • are those of an independent service provider and not of an employee of the City of Fort Collins. The City shall not be responsible for withholding any portion of Service Provider's compensation hereunder for the payment of FICA, Workmen's Compensation or other taxes or benefits or for any other purpose. 10. Personal Services. It is understood that the City enters into the Agreement based on the special abilities of the Service Provider and that this Agreement shall be considered as an agreement for personal services. Accordingly, the Service Provider shall neither assign any responsibilities nor delegate any duties arising under the Agreement without the prior written consent of the City. 11. Acceptance Not Waiver. The City's approval or acceptance of, or payment for any of the services shall not be construed to operate as a waiver of any rights or benefits provided to the City under this Agreement or cause of action arising out of performance of this 0 Agreement. RFP 7266 Banking Services Page 39 of 44 12. Warranty. a. Service Provider warrants that all work performed hereunder shall be performed with the highest degree of competence and care in accordance with accepted standards for work of a similar nature. b. Unless otherwise provided in the Agreement, all materials and equipment incorporated into any work shall be new and, where not specified, of the most suitable grade of their respective kinds for their intended use, and all workmanship shall be acceptable to City. C. Service Provider warrants all equipment, materials, labor and other work, provided under this Agreement, except City -furnished materials, equipment and labor, against defects and nonconformances in design, materials and workmanship/workwomanship for a period beginning with the start of the work and ending twelve (12) months from and after final acceptance under the Agreement, regardless whether the same were furnished or performed by Service Provider or by any of its subcontractors of any tier. Upon receipt of written notice from City of any such defect or nonconformances, the affected item or part thereof shall be redesigned, repaired or replaced by Service Provider in a manner and at a time acceptable to City. 13. Default. Each and every term and condition hereof shall be deemed to be a material element of this Agreement. In the event either party should fail or refuse to perform according to the terms of this agreement, such party may be declared in default thereof. 14. Remedies. In the event a party has been declared in default, such defaulting party shall be allowed a period of ten (10) days within which to cure said default. In the event the default remains uncorrected, the party declaring default may elect to (a) terminate the Agreement and seek damages; (b) treat the Agreement as continuing and require specific performance; or (c) avail himself of any other remedy at law or equity. If the non -defaulting party commences legal or equitable actions against the defaulting party, the defaulting party shall be RFP 7266 Banking Services Page 40 of 44 liable to the non -defaulting party for the non -defaulting party's reasonable attorney fees and costs incurred because of the default. 15. Binding Effect. This writing, together with the exhibits hereto, constitutes the entire agreement between the parties and shall be binding upon said parties, their officers, employees, agents and assigns and shall inure to the benefit of the respective survivors, heirs, personal representatives, successors and assigns of said parties. 16. Indemnity/Insurance. a. The Service Provider agrees to indemnify and save harmless the City, its officers, agents and employees against and from any and all actions, suits, claims, demands or liability of any character whatsoever brought or asserted for injuries to or death of any person or persons, or damages to property arising out of, result from or occurring in connection with the performance of any service hereunder. b. The Service Provider shall take all necessary precautions in performing the work hereunder to prevent injury to persons and property. c. Without limiting any of the Service Provider's obligations hereunder, the Service Provider shall provide and maintain insurance coverage naming the City as an additional insured under this Agreement of the type and with the limits specified within Exhibit B, consisting of one (1) page, attached hereto and incorporated herein by this reference. The Service Provider before commencing services hereunder, shall deliver to the City's Director of Purchasing and Risk Management, P. O. Box 580 Fort Collins, Colorado 80522 one copy of a certificate evidencing the insurance coverage required from an insurance company acceptable to the City. 17. Entire Agreement. This Agreement, along with all Exhibits and other documents incorporated herein, shall constitute the entire Agreement of the parties. Covenants or representations not contained in this Agreement shall not be binding on the parties. RFP 7266 Banking Services Page 41 of 44 18. Law/Severability. The laws of the State of Colorado shall govern the construction interpretation, execution and enforcement of this Agreement. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Agreement. 19. Prohibition Against Employing Illegal Aliens. Pursuant to Section 8-17.5-101, C.R.S., et. seq., Service Provider represents and agrees that: a. As of the date of this Agreement: 1. Service Provider does not knowingly employ or contract with an illegal alien who will perform work under this Agreement; and 2. Service Provider will participate in either the e-Verify program created in Public Law 208, 104th Congress, as amended, and expanded in Public Law 156, 108th • Congress, as amended, administered by the United States Department of Homeland Security (the "e-Verify Program") or the Department Program (the "Department Program"), an employment verification program established pursuant to Section 8-17.5-102(5)(c) C.R.S. in order to confirm the employment eligibility of all newly hired employees to perform work under this Agreement. b. Service Provider shall not knowingly employ or contract with an illegal alien to perform work under this Agreement or knowingly enter into a contract with a subcontractor that knowingly employs or contracts with an illegal alien to perform work under this Agreement. c. Service Provider is prohibited from using the e-Verify Program or Department Program procedures to undertake pre -employment screening of job applicants while this Agreement is being performed. d. If Service Provider obtains actual knowledge that a subcontractor performing work under this Agreement knowingly employs or contracts with an illegal alien, Service Provider shall: RFP 7266 Banking Services Page 42 of 44 0 1. Notify such subcontractor and the City within three days that Service Provider has actual knowledge that the subcontractor is employing or contracting with an illegal alien; and 2. Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this section the subcontractor does not cease employing or contracting with the illegal alien; except that Service Provider shall not terminate the contract with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. e. Service Provider shall comply with any reasonable request by the Colorado Department of Labor and Employment (the "Department") made in the course of an investigation that the Department undertakes or is undertaking pursuant to the authority . established in Subsection 8-17.5-102 (5), C.R.S. f. If Service Provider violates any provision of this Agreement pertaining to the • duties imposed by Subsection 8-17.5-102, C.R.S. the City may terminate this Agreement. If this Agreement is so terminated, Service Provider shall be liable for actual and consequential damages to the City arising out of Service Provider's violation of Subsection 8-17.5-102, C.R.S. g. The City will notify the Office of the Secretary of State if Service Provider violates this provision of this Agreement and the City terminates the Agreement for such breach. 20. Special Provisions. [Optional) Special provisions or conditions relating to the services to be performed pursuant to this Agreement are set forth in Exhibit " ", consisting of ( ) pages, attached hereto and incorporated herein by this reference. RFP 7266 Banking Services Page 43 of 44 11 • • ATTEST: City Clerk APPROVED AS TO FORM: Assistant City Attorney CITY OF FORT COLLINS, COLORADO a municipal corporation By: James B. O'Neill II, CPPO, FNIGP Director of Purchasing and Risk Management Date: PRINT NAME CORPORATE PRESIDENT OR VICE PRESIDENT Date: ATTEST: (Corporate Seal) CORPORATE SECRETARY RFP 7266 Banking Services Page 44 of 44 E Table of Contents 1. Executive Summary .................................................................................................... 2 2. Responses to the "Minimum Requirements" IV. Minimum Requirement to Propose.................................................................... 4 3. Responses to the "General Requirements and Specifications" C. General Requirement and Specifications........................................................... 10 - 15 a. Qualifications and Experience..................................................................... 10 - 11 b. Collateralization Provisions......................................................................... 11 - 12 c. Conversion Considerations......................................................................... 12 d. Banking Supplies and Forms....................................................................... 12 e. Report Formats.......................................................................................... 13 f. Additional or Specific Response Items Related to General Requirements and Specification.............................................................. 13 - 14 g. Emergency Services and Disaster Recovery .................................................. 14 - 15 h. Overview of Current Banking Services......................................................... 16 i. Accounts and Services............................................................................... 16 - 20 4. Responses to the Response Items for Accounts and Services j. Proposal for Accounts and Services............................................................ 21 k. Additional or Specific Response Items Related to Accounts and Services........................................................................... 21 - 25 I. Performance Indicators.............................................................................. 25 m. Implementation.......................................................................................... 25 • 5. Responses to the "Additional or Future Services and Enhancements" D. Future Services and Enhancements................................................................... 26 - 31 a. Credit Cards.............................................................................................. 26 - 28 b. Additional Services at City Locations........................................................... 28 c. Short-term Financing................................................................................. 28 - 29 d. Small Scale Financing................................................................................ 29 e. Bond Issues and Lease -Purchase Transactions ............................................ 29 f. Training Programs for City Employees......................................................... 29 - 30 g. Technological Advances............................................................................. 30 h. Other Enhancements.................................................................................. 30 - 31 6. Account Analysis Form.............................................................................................. 32 7. Attachments Attachment A - Certification by Institutions Responding to the Requestfor Proposals....................................................................................... 33 Attachment B - Service Pricing Form........................................................................ 34 Attachment C - Proposal Preparation Checklist......................................................... 35 Attachment D - Armored Car Courier Service Stops ................................................... 36 Attachment E - City of Fort Collins Standard Services Agreement ............................... 37 - 44 8. Appendices • Appendix A - Certificate of Eligible Public Depository Appendix B - Sample Reports Appendix C - Remote Capture Customer Application Form Appendix D - Smart ACH Blocking Form Appendix E - Sample Account Analysis Form Appendix F - Addendum No. 1 4•�O� D � ra Division of Banking . ^e Steven A. Strunk ' State Bank Commissioner `rave • Department of Regulatory Agencies 1] Bill Ritter, Jr. Governor Barbara J. Kelley Executive Director COLORADO STATE BANKING BOARD DESIGNATION AS AN ELIGIBLE PUBLIC DEPOSITORY AND CERTIFICATION TO HOLD PUBLIC DEPOSITS Pursuant to the provisions of the Colorado Revised Statutes, Title 11, Article 10.5, Section 106 of the Public Deposit Protection Act (PDPA), the undersigned does hereby accept the written statements filed on behalf of First National Bank of Omaha, Omaha, Nebraska, and designates said bank an eligible public depository under the provisions of the PDPA and the rules and regulations promulgated thereunder. This certificate acknowledges that First National Bank of Omaha, doing business in Colorado as First National Bank, or First National Bank of Colorado, a Division of First National Bank of Omaha, having complied with the requirements of Section I1- 10.5-106, C.R.S., and having been designated hereunder as an eligible public depository by the Colorado State Banking Board, is an eligible public depository certified to hold public deposits in accordance with and subject to the provisions of C.R.S., Title 11, Article 10.5, from this date until such time as this designation and certification is canceled, revoked, or suspended. FOR: COLORADO STATE BANKING BOARD Steven A. Strunk Signatu a Date State Bank Commissioner Title 11, Article 10.5, C.R.S. PDPA Bank Identification Number: 900071 1560 Broadway, Suite 975 Denver, Colorado 80202 Phone 303.894.7575 Cons um� on Fax 303.894.7570 www.dorastate.co.us PDPA 303.894.7588 U E E Balance Inquiry Check Services> Balance Inquiry > Deposit Balance: Account Balances A<WOnl rl.mb.r r:Bubmll'::r R..ei't' Appoav rumOW:12J.56]ABA11111111a Dahrthne: 0]2]1101010 �500 Balance Try- Bw. Mn opminp LM 1 510,30000 �closing LMper S1,000.00 Cunenl ledger STO0.00 .cl a'np AnOaWa f10,)00.00 curfewbWlow. SJ.000.00 Ou de S200.00 Ifl"t TOUl cleat $300D0 'a ,BOF_ $0.00 1-0a.ROW U.JOU '2pDryFloal 62.J000000 BW.. Try. 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ORIGINATOR LINE 2............. f ORIGINATOR LINE 3 ............. t ORIGINATOR LINE 4............. Originator Bank Information S STBNL21 i ORDER BANK UNE 1 ............. ORDER BANK LINE 2 ............. ORDER BANK LINE 3 ............. ORDER BANK LINE 4 ............. Senders Referansa Number 4 Debit Account s Debit Name Debit Address Boston, MA Beneficary Account a 12345678 Beneficiary information Reference far Beneficiary PF2110410602623B I I Total Account 1732465 $90,815.30 $6,034.08 Total Debits/Crtdi. 31 51 TOLals for A0A001111118 S90,815.30 $6,034.081 Total Debits/Credits 1 31 a Nelp PteHous Nazi PNnt Close . Executive Summary First National Bank is a full service commercial bank and has been in business in Fort Collins since 1934. The Bank is a division of First National of Nebraska, a holding company domiciled in Omaha, Nebraska, with an asset base of nearly $14.7 billion. The principal bank, First National Bank of Omaha has been in existence since 1857. The company strives to maintain each of its banks as a "community" bank operating autonomously in each of the respective markets. • • The management team involved with the City of Fort Collins accounts will be: Mark Driscoll, Judy Dedrick, and Christy Kelderman with assistance from other staff members as required. The principal contact will be Christy Kelderman with the professional back up of Judy Dedrick. RFP 7266 Banking Services Page 2 of 44 • Additional Reports Menus (partial lists) Report Selection 0 Prior Day Closlnd Ledper and Opening AvallaOle Previous Da• Prior Dav COmelned Reoon Prior Day Summary and Detail Previous Da Pller Dny Detall Prlor Day Detail Previous Day Ptlor Day Summary Pd0l Day Summary Totals PleNOus, Prior Dav Summary TotalsNt Pdar Dap Summary Totals Nt Ptevious Da Prior Summary CreditTonals ONer Summary Try Prior Credit PreNOUSD Prior Summary DeOM1 Totals Oner Summary Totals DeDd PlaNOu Da Cunenl Day Detail Curren Day Detall Cument Dal Cunenl Dav Summary Current Day Summary Cutmnt Day a • • Remote Deposit Capture Customer Application Customer Information Business Name (Legal): Business DBA Name: Business Address (City/State/ZIP): Business Contact Name: Phone — Fax: TIN #: Sponsoring Entity TIN#: Email: Shipping Address Shipping Address (City/State ZIP): Phone — Email — Fax: If multiple scanners, should all scanners be shipped here? ❑ yes ❑ No First National Representative Name: Business Address Cit/State/ZIP): Phone — Email — Fax: t a u'e �r a �; nn nr.� .rywran Setup Information Requested Log in ID: Primary Administrator (Name): Secondary Administrator (Name): Direct Service Provider ❑ Yes ❑ No Account Information: (Please provide an attachment for additional account numbers) TIN# Account Number Account Title Location Name 0 r L Remote Deposit Capture Customer Application A. Location 1: Location Name: Location Address: Contact Person at Business Location: Contact Phone: Contact Email: IT Contact Person: Contact Phone: Contact Email: Date of Site Visit: B. Location 2: Location Name: Location Address: Contact Person at Business Location: Contact Phone: Contact Email: IT Contact Person: Contact Phone: Contact Email: Date of Site Visit: 41 General Questions Responses - I I Do you have an existing relationship with the bank? If yes, How long have you been a customer with the bank? Are you currently an on-line customer? Explain. ❑ Yes ❑ No ❑ Yes [-]No 2 How long have you been in business? 3 List any additional names that you use for conducting business with the bank. Attach a spreadsheet if necessary 4 Do you currently deposit checks with the bank? ❑ Yes ❑ No 5 Will your checks be from consumers, businesses or both? ❑ Consumers ❑ Businesses 6 Will you deposit remotely created checks (unsigned pre- authorized paper drafts) on behalf of another company? ❑ Yes ❑ No 7 How many checks do you deposit in a month? 8 What is your average daily and monthly deposit amount? 9 How many checks are returned to you each month? 10 During the month, do you have any deposit peaks? Explain. ❑ Yes [-]No L J Remote Deposit Capture Customer Application I I Is your business seasonal? Explain. ❑ Yes ❑ No 12 During what months of the year do you see peak check volumes/deposit amounts? 13 With whom do you have your primary banking relationship? 14 Do you have non U.S. locations or operate from a foreign ❑ Yes ❑ No address? If yes, do you anticipate originating RDC transactions from the international location? Please Explain. 15 Is data captured from checks or remittance forms to be used ❑ Yes ❑ No in other computer applications? If yes, explain. 16 Are remittance coupons submitted with payments? ❑ Yes ❑ No 17 Do you require additional data entry fields for payment ❑ Yes ❑ No information in addition to amount? (add'] charges may apply)? If yes, explain. Customer Business Information Describe the business (i.e. products/services provided, number of locations and employees). This application is subject to approval by the Bank. The undersigned, individually and on behalf of the business entity named in this application (the "Customer"), certifies that: (i) all of the information provided in this application is true and accurate, (ii) the undersigned is authorized to sign on behalf of and to obligate the Customer and (iii) they have been informed of the inherent risks associated with Remote Deposit Capture and acknowledge such risks. By signing below, the undersigned, on behalf of the Customer, acknowledges receipt of and agrees to the applicable Terms and Conditions for either Business First Remote Deposit Checking or Corporate Treasury Services, the Commercial Deposit Account Agreement and the applicable Disclosure of Account Terms for Commercial or Business Checking Accounts. CUSTOMER/ENTITY LEGAL NAME: By: Name: Title: Date: CJ Remote Deposit Capture Customer Application 0 Relationship Manager Checklist -(Review Risk Document with Customer) 0 0 ❑ I discussed and provided a copy of the RDC Risk document which outlines the inherent risks associated with depositing images while maintaining original checks (i.e. duplicate deposit), and ❑ the customer understood and acknowledged those risks, and ❑ the customer demonstrated a method of securing original checks from time of image deposit until destruction, and ❑ the customer demonstrated an adequate method of check destruction (shred). rd • APPENDIX E RDC Risk Document Risks in the Remote Deposit Capture Environment The remote deposit capture (RDC) function is a convenient, automated method of making your check deposits. This product also brings new risks not present in the paper check deposit process. The fact that the physical paper check stays in the possession of the depositor magnifies risks. Some things to consider are: • Multiple Presentment: Often referred to as "Duplicate Presentment", this occurs when a check is replicated and wrongfully deposited multiple times. For example: A check may be scanned and deposited via RDC, then either wrongfully processed again or wrongfully taken to a branch for deposit, etc. • Deposit Errors / Mis-Encoding: Occurs when items deposited are read improperly by the scanner and not corrected by the person scanning the deposit, or when an operator may choose to wrongfully change the amount of a check for the purpose of increasing the deposited amount. • Intentional fraud: May occur when an employee that has control of both the receivables and disbursements intentionally adds fictitious checks, alters check amounts or payees, or merely inputs incorrect amounts on checks, and . subsequently processes the excessive deposits and creates an improper disbursement transaction to wrongfully take the excess funds themselves. • Theft: Employee temptation to steal checks may be increased if they believe they have less chance of getting caught by waiting to take the check until after you complete the RDC scanning process (because you won't miss the money). The end results of a worst -case scenario include financial write-offs, lost business, exception processing / added expenses and reputation / brand damage. Please be aware that these risks exist. Losses from these and other risks that arise in the course of remote deposit capture processing are your responsibility not the bank's. Reducing Risks Although each customer needs to carefully consider its own situation and decide what will work best for it, here are some steps to consider to reduce RDC risks. • Conduct your deposit processing activities and keep your scanner and related computer equipment in a secure area. • Utilize Dual Control: Many of the risks described above can be reduced by requiring dual controls within the deposit making process. For example: . o Have one person prepare checks for deposit by making a listing of the checks and inspecting the basics on the face of the checks (like date written and payee). o Have another person actually scan and balance the deposit within the remote deposit application. o Have the initial person (or a third person) actually review the deposit and release it to the bank for processing. o Separate the functions pertaining to deposits and receivables from disbursements. • The scanner that you use should be set to automatically endorse the original checks. o If it is, make sure before scanning that the checks have not already been endorsed (which indicates they have already been scanned). o If it is not, endorse your checks before scanning them. • After scanning, immediately move the original checks to storage in a safe that is located within in a secure area (such as a locked room) within your office. • Store checks for at least 30 days, by date, wrapped in a detailed deposit report printed on the date of initial deposit. • Destroy checks carefully and completely (such as by shredding) after the above storage period expires. Don't throw checks in the garbage. . o Pick a certain day of the week and always have two employees retrieve checks from the secured storage, verify back to deposit reports for the destruction period, and maintain a log identifying who was present and what deposits were destroyed. • Print detailed reports that are available within the remote deposit application and keep those with your other important financial reports. • Select your staff carefully. Make sure that your staff is adequately trained in RDC procedures and security. Periodically verify (e.g., using supervisors or internal auditors) that procedures are followed. • Contact your relationship manager immediately if your equipment isn't working properly, if you suspect a security breach has occurred or if you become aware of any other problem with the service. U k 10 MII :1 • • First National Bank Cash Management Services ACH USER DOCUMENTATION —Smart ACH Blocking You may choose from the following services: i. ACH Debit Block —All 2. ACH Block —All 3- ACH Debit Filtering ACH USER DOCUMENTATION —Smart ACH Blocking Product Definitions 1. ACH Debit Block —All This product utilizes your FNB account number to block all debit items presented for payment. 2. ACH Block —All This product will stop all debit and credit entries. 3. ACH Debit Filtering This product will stop all ACH debit entries other than those originating from a pre -authorized entity and gives you an opportunity to make a "pay/no pay" decision on each stopped entry. You will have until 10:00 a.m. (MST) on the settlement day to advise us of the "pay/no pay" decision. Detailed instructions will be provided to you, if you chose this product. Unless otherwise mutually agreed, blocked entries will be returned with the return codes we specify. You agree not to authorize others to initiate ACH entries that are inconsistent with the blocking services you request from us. In the event that we fail to block a debit entry, our sole obligation shall be to promptly re -credit the amount hereof to your account, whereupon we shall be subrogated to all of your rights and remedies related to the entry the transaction out of which it arose. In the event that we fail to block a credit entry, our sole obligation shall e transfer the subject funds back to the Originator of the entry, if you so request. You agree to execute such additional documents as we may reasonably request from time to time relating to the services provided hereunder. Account Number Account Name Type of Service (# 1-3) . REQUEST FOR PROPOSAL CITY OF FORT COLLINS PROPOSAL NO. 7266 BANKING SERVICES PURPOSE AND OBJECTIVES The City of Fort Collins and its Finance Department (hereafter referred to as the City) is seeking proposals from qualified banks interested in providing banking and direct deposit payroll processing services to the City and its employees. These services are to meet the City's banking services needs as described in this Request for Proposal (RFP) and shall include: Depository Services Automated Clearing House (ACH) Wire Transfer Services Electronic Data Interchange (EDI) Lock Box Service Direct Deposit Payroll Controlled Disbursements, Account Reconciliation, and Positive Pay Information Reporting Banking -Treasury Workstations Armored Car Courier Additional Future Services or Enhancements This RFP contains the instructions governing the proposals to be submitted, the material to be . included within the RFP, minimum requirements that must be met to be eligible for consideration, and other requirements. II. BACKGROUND INFORMATION The City is a municipal corporation organized under Article XX of the Constitution of the State of Colorado. The City derives its powers from the State Constitution, applicable Colorado Revised Statues, and the home rule charter. The City's current banking services are provided by the First National Bank of Fort Collins. First National (and its predecessors) has provided banking services to the City for over 25 years. According to a separate agreement and not subject to this RFP, Wells Fargo provides the City with security safe -keeping services. Ill. INVITATION TO PROPOSE By this Request for Proposal, the City is contacting prospective banks that have an interest or are known to meet the "Requirements to Propose" as specified below. All interested institutions that were not contacted are invited to submit a proposal in accordance with the policies, procedures, and dates set forth herein. NOTE: In the event of a "no proposal," please sign the RFP, indicate "No Proposal," and return. The City has no expressed or implied obligation to reimburse responding banks for any expenses incurred in preparing proposals in response to this request. 0 RFP 7266 Banking Services Page 3 of 44 First National Bank Cash Management Services ACH USER DOCUMENTATION —Signature Page IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date(s) indicated below. FIRST NATIONAL BANK Signature Name: Title Date CUSTOMER Signature Name Title Date his ACH User Documentation Form may be updated and amended from time to time. We will notify you of -h updates. E low A I LI, IT), 1) 0 � El E 0 First National Bank A dMsion of First National Bank of Omaha • SAMPLE ANALYSIS REPORT ADDRESS ADDRESS Statement Date: 05/31/11 Page 1 Account: F12345 Contact: CASH MANAGEMENT Email: CASHMGMT@FNNI.COM --------- FAMILY PARENT ANALYSIS STATEMENT FOR THE PERIOD 05/01/11 THROUGH 05/31/11 There are 2 accounts in the relationship. They are: 12345 54321 < BALANCE COMPUTATION FOR THE PERIOD >------- Average Daily Book Balance .............. 787,289.87 Less Average Daily Float 60,864.29 Average Daily Collected Balance......... 726,425.58 Less Legal Reserve Requirement (10%) 72,642.56 Balance To Support Services ............. 653,783.02 --- ACCOUNT POSITION FOR THE PERIOD --------- FEE BASIS - BALANCE BASIS Current Period Credit (.25%) 138.82 653,783.02 Current Period Analyzed Charges 1,367.46 6,440,299.01 Analyzed Charges Due before Credit 1,367.46 6,440,299.01 Analyzed Charges Due after Credit TOTAL FEES NOW DUE --> 1,228.64 5,786,501.24 1,228.64 5,786,501.24 Balance shortage for the current period --> (5,786,501.24) < SERVICE CHARGE DETAIL >-- SERVICES RENDERED IN PERIOD..... VOLUME PRICE CHARGE BALANCE DDA Maint 20.00 94,193 Chargeable Debits 290 .1900 55.10 259,503 Chargeable Credits 141 .1900 26.79 126,172 ACH Debit 19 .1500 2.85 13,423 ACH Credit 142 .1000 14.20 66,877 Local Items Deposited 4,599 .1200 551.88 2,599,177 Remote Corporate Capture / Mo. M 1 45.0000 45.00 211,935 Remote Corporate Capture/ Per it 1,288 .1300 167.44 788,588 Check Image -CD-ROM 1 10.0000 10.00 47,097 Ppr Disb Recon Rpts-Transm 2 10.0000 20.00 94,194 ACH Originated-Debit/Credit 2,385 .1200 286.20 1,347,910 ACH Return Item-Debit/Credit 5 5.0000 25.00 117,742 ACH Input -Batch Fee 9 2.0000 18.00 84,774 Outgoing Wire Online 7 15.0000 105.00 494,516 Incoming Fedwire Trnsf 2 10.0000 20.00 94,194 Total Activity Charges ................... 1,367.46 6,440,299 Total Charges Listed Before Credit....... 1,367.46 6,440,299 Analyzed charge subtotal ............... 1,367.46 6,440,299 $4,709.68 in collected balance will offset $1.00 of charges. This factor includes a provision for reserves. 9 The Earnings Credit Rate for June is .25% SAMPLE ANALYSIS REPORT ADDRESS ADDRESS ACCOUNT #1 Statement Date: 05/31/11 Page 1 Account: 54321 Contact: CASH MANAGEMENT Email: CASHMGMT@FNNI.COM ------- SUBSIDIARY ACCOUNT ANALYSIS STATEMENT ---- FOR THE PERIOD 05/01/11 THROUGH 05/31/11 12345 is the Relationship Parent Account Number ----< BALANCE COMPUTATION FOR THE PERIOD > Average Daily Book Balance .............. 0.00 Less Average Daily Float 0.00 Average Daily Collected Balance......... 0.00 Balance To Support Services ............. 0.00 --- ACCOUNT POSITION FOR THE PERIOD --------- FEE BASIS - BALANCE BASIS Current Period Credit (.25%) 0.00 0.00 Current Period Analyzed Charges 63.65 299,770.96 Analyzed Charges Due after Credit 63.65 FEES PASSED TO THE PARENT ACCOUNT --> 63.65 Balance shortage for the current period --> ---- < SERVICE CHARGE DETAIL >- (299,770.96) SERVICES RENDERED IN PERIOD..... VOLUME PRICE CHARGE BALANCE DDA Maint 10.00 47,097 Chargeable Debits 280 .1900 53.20 250,555 ACH Debit 3 .1500 0.45 2,119 Total Activity Charges ................... 63.65 299,771 Total Charges Listed Before Credit....... 63.65 299,771 Analyzed charge subtotal ............... 63.65 299,771 $4,709.68 in collected balance will offset $1.00 of charges. This factor includes a provision for reserves. The Earnings Credit Rate for June is .25% SAMPLE ANALYSIS REPORT ADDRESS ADDRESS ACCOUNT #2 Statement Date: 05/31/11 Page 1 Account: 12345 Contact: CASH MANAGEMENT Email: CASHMGMT®FNNI.COM ------- SUBSIDIARY ACCOUNT ANALYSIS STATEMENT ---- FOR THE PERIOD 05/01/11 THROUGH 05/31/11 12345 is the Relationship Parent Account Number ------------< BALANCE COMPUTATION FOR THE PERIOD > Average Daily Book Balance .............. 786,912.36 Less Average Daily Float 60,864.29 Average Daily Collected Balance......... 726,048.07 Less Legal Reserve Requirement (10%) 72,604.81 Balance To Support Services ............. 653,443.26 --- ACCOUNT POSITION FOR THE PERIOD --------- FEE BASIS - BALANCE BASIS Current Period Credit (.25%) 138.74 653,443.26 Current Period Analyzed Charges 1,303.81 6,140,527.88 Analyzed Charges Due after Credit 1,303.81 FEES PASSED TO THE PARENT ACCOUNT --> 1.303.81 Balance shortage for the current period --> (6,140,527.88) -------------------< SERVICE CHARGE DETAIL > ---------------------------- RENDERED IN PERIOD..... VOLUME PRICE CHARGE BALANCE �SERVICES DDA Maint 10.00 47,097 Chargeable Debits 10 .1900 1.90 8,948 Chargeable Credits 141 .1900 26.79 126,172 ACH Debit 16 .1500 2.40 11,303 ACH Credit 142 .1000 14.20 66,877 Local Items Deposited 4,599 .1200 551.88 2,599,177 Remote Corporate Capture / Mo. M 1 45.0000 45.00 211,935 Remote Corporate Capture/ Per it 1,288 .1300 167.44 788,588 Check Image -CD-ROM 1 10.0000 10.00 47,097 Ppr Disb Recon Rpts-Transm 2 10.0000 20.00 94,194 ACH Originated-Debit/Credit 2,385 .1200 286.20 1,347,910 ACH Return Item-Debit/Credit 5 5.0000 25.00 117,742 ACH Input -Batch Fee 3 .0000 0.00 0 6 3.0000 18.00 84,774 Outgoing Wire Online 7 15.0000 105.00 494,516 Incoming Fedwire Trnsf 2 10.0000 20.00 94,194 Total Activity Charges ................... 1,303.81 6,140,528 Total Charges Listed Before Credit....... 1,303.81 6,140,528 Analyzed charge subtotal ............... 1,303.81 6,140,528 $4,709.68 in collected balance will offset $1.00 of charges. This factor includes a provision for reserves. The Earnings Credit Rate for June is .25% 4 • 0 Financial Services Purchasing Division 215 N. Mason St. 2n° Floor PC Boy, 580 Fon Collins. CC 80522 970.221.61-75 970.221.6707 tcgov. com1purcnasing ADDENDUM No. 1 SPECIFICATIONS AND CONTRACT DOCUMENTS Description of BID 7266: Banking Services OPENING DATE: 3:00 PM (Our Clock) September 7, 2011 To all prospective bidders under the specifications and contract documents described above, the following changes/additions are hereby made and detailed in the following sections of this addendum: Exhibit 1 — Questions & Answers Exhibit 2 — Sales Tax Lockbox Info & Sample Payment Stub Exhibit 3— Utilities Lockbox Info & Sample Payment Stub Please contact James B. O'Neill, FNIGP, CPPO, Buyer at (970) 221-6779 with any questions regarding this addendum: RECEIPT OF THIS ADDENDUM MUST STATEMENT ENCLOSED WITH THE ADDENDUM HAS BEEN RECEIVED. Addendum 1 — 7266 Banking Services BE ACKNOWLEDGED BY A WRITTEN BID/QUOTE STATING THAT THIS Page 1 of 18 0 IV. MINIMUM REQUIREMENTS TO PROPOSE The City's minimum requirements for banks responding to this RFP include: a. A Green VERIBANC, Inc. rating First National Bank, a division of First National Bank of Omaha is rated Green 3 Star by Veribanc, Inc. as of 12/31/2010 and is a 4 star rated bank by BauerFinancial, Inc, an independent bank research firm. b. Total assets of at least $2 Billion First National Bank is a top 50 banking organization with over $14.7 billion in assets. c. Approval as an Eligible Public Fund Depository by the Colorado State Banking Board First National Bank is an Eligible Public Fund Depository by the Colorado State Banking Board. Please see Appendix A for a copy of certificate. d. Capital ratios indicating the bank is at least adequately capitalized First National Bank maintains a tier one leverage of 8.7% and a capital ratio of 13.34%. The City cannot enter into a contract with a bank that does not meet the minimum criteria outlined above. Bids from banks that do not meet the minimum criteria may not be considered. Banks that do not currently meet the minimum criteria but desire to submit a proposal must include a written Justification for Consideration. A written Justification for Consideration does not obligate the selection committee to consider the proposal of a bank that does not meet the minimum criteria. Designation as an eligible public depository by the State Banking Board cannot be waived. V. PROPOSAL MEETING CALENDAR The following calendar outlines the critical dates for the City of Fort Collins Banking Services RFP process. The City reserves the right to adjust this timetable as required and will provide written notice of any changes to all banks that may desire to submit a proposal. Date Event July 26, 2011 RFP issued August 15, 2011 Written Proposal Inquiries Due by 3:00 p.m. September 7, 2011 Sealed proposals due, five (5) copies. September 20, 2011 Interviews, if necessary. October 3, 2011 Evaluations completed. Contract sent to selected bank October 10 to December 31, 2011 Implementation January 1, 2012 Contract begins VI. INQUIRIES ABOUT THE REQUEST FOR PROPOSAL AND THE SUBJECT Any questions or clarification regarding this RFP and the subjects contained therein must be made in writing on or before August 151h. If there is any perceived ambiguity, conflict, discrepancy, omission, or other error in the RFP, the Bank should immediately notify the City in writing and request modification or clarification of the document. RFP 7266 Banking Services Page 4 of 44 The bank desiring to submit a proposal is responsible for clarifying any ambiguity, conflict, discrepancy, omission, or other error in the RFP prior to submitting the proposal. Please direct all written inquiries to: James B. O'Neill, Director of Purchasing City of Fort Collins PO Box 580 Fort Collins, CO 80521 By facsimile: (970) 221-6707 Via e-mail: joneill@fcgov.com Such inquiries will be accepted until 3:00 p.m., August 15, 2011. All inquiries regarding content or banking services issues received by the Purchasing Department will be forwarded to the appropriate staff person for review and will receive a response. Contact with City personnel, other than written inquiries to Jim O'Neill, Chuck Seest, or Harold Hall regarding this RFP may be grounds for elimination from the selection process. VII. NEWS RELEASE News releases pertaining to this selection process or any part of the subject shall not be made without prior written approval by the Financial Officer. Direct all information regarding news releases to: Mr. John Voss, Financial Officer City of Fort Collins Finance Department P.O. Box 580 Fort Collins, CO 80522-0580 Facsimile: 970/221-6782 E-mail: jvoss@fcgov.com Vill. PROPOSAL SUBMITTAL INSTRUCTIONS A. Submittal The City reserves the right to retain all proposals submitted and to use any ideas or information provided in a proposal regardless of whether that proposal is selected. Submittal of a proposal indicates acceptance by the bank of the conditions contained in the RFP unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the Bank. According to the Colorado Open Records Act, all information submitted in response to this RFP is a public record. Such information will be available for inspection upon completion of contract negotiations and award. The bidder should not include as a part of the response to this RFP any information that the bank believes to be a trade secret or other privileged or confidential data. If the bank wishes to include such information in the proposal, then the material must be placed in a separate envelope and labeled with the proposal number and clearly marked "CONFIDENTIAL". The City will endeavor to RFP 7266 Banking Services Page 5 of 44