HomeMy WebLinkAboutRFP - 8408 SECURITIES SAFEKEEPING & CUSTODIAL SERVICESRFP 8408 Securities Safekeeping & Custodial Services Page 1 of 35
REQUEST FOR PROPOSAL
8408 SECURITIES SAFEKEEPING & CUSTODIAL SERVICES
The City of Fort Collins is requesting proposals from qualified firms for a securities safekeeping
and custodial services contract for the City's portfolio assets. Fort Collins is a municipal
corporation which derives its powers from the home rule charter of the City and from applicable
Colorado state law.
As part of the City’s commitment to Sustainable Purchasing, proposals submission via
email is preferred. Proposals shall be submitted in a single Microsoft Word or PDF file
under 20MB and e-mailed to: purchasing@fcgov.com. If electing to submit hard copy
proposals instead, five (5) copies, will be received at the City of Fort Collins' Purchasing
Division, 215 North Mason St., 2nd floor, Fort Collins, Colorado 80524. Proposals must be
received before 3:00 p.m. (our clock), November 14, 2016 and referenced as Proposal
No. 8408. If delivered, they are to be sent to 215 North Mason Street, 2nd Floor, Fort Collins,
Colorado 80524. If mailed, the address is P.O. Box 580, Fort Collins, 80522-0580. Please
note, additional time is required for bids mailed to the PO Box to be received at the
Purchasing Office.
The City encourages all Disadvantaged Business Enterprises (DBEs) to submit proposals in
response to all requests for proposals. No individual or business will be discriminated against
on the grounds of race, color, sex, or national origin. It is the City’s policy to create a level
playing field on which DBEs can compete fairly and to ensure nondiscrimination in the award
and administration of all contracts.
Questions concerning the scope of the bid should be directed to Project Manager, Harold Hall,
at (970) 221-6784 or hhall@fcgov.com.
Questions regarding bid submittal or process should be directed to Gerry Paul,
Purchasing Director at (970) 221-6779 or gspaul@fcgov.com.
All questions must be submitted in writing via email to Harold Hall , with a copy to
Gerry Paul, no later than 5:00 PM our clock on November 4, 2016. Questions received after
this deadline will not be answered.
A copy of the RFP may be obtained at www.rockymountainbidsystem.com.
The City of Fort Collins is subject to public information laws, which permit access to most
records and documents. Proprietary information in your response must be clearly identified and
will be protected to the extent legally permissible. Proposals may not be marked ‘Proprietary’ in
their entirety. All provisions of any contract resulting from this request for proposal will be
public information.
New Vendors:
The City requires new vendors receiving awards from the City to fill out and submit an IRS form
W-9 and to register for Direct Deposit (Electronic) payment. If needed, the W-9 form and the
Financial Services
Purchasing Division
215 N. Mason St. 2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6775
970.221.6707
fcgov.com/purchasing
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Vendor Direct Deposit Authorization Form can be found on the City’s Purchasing website at
www.fcgov.com/purchasing under Vendor Reference Documents.
Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall have
a financial interest in the sale to the City of any real or personal property, equipment, material,
supplies or services where such officer or employee exercises directly or indirectly any decision-
making authority concerning such sale or any supervisory authority over the services to be
rendered. This rule also applies to subcontracts with the City. Soliciting or accepting any gift,
gratuity favor, entertainment, kickback or any items of monetary value from any person who has
or is seeking to do business with the City of Fort Collins is prohibited.
Collusive or sham proposals: Any proposal deemed to be collusive or a sham proposal will be
rejected and reported to authorities as such. Your authorized signature of this proposal assures
that such proposal is genuine and is not a collusive or sham proposal.
The City of Fort Collins reserves the right to reject any and all proposals and to waive any
irregularities or informalities.
Utilization of Award by Other Agencies: The City of Fort Collins reserves the right to allow other
state and local governmental agencies, political subdivisions, and/or school districts to utilize the
resulting award under all terms and conditions specified and upon agreement by all parties.
Usage by any other entity shall not have a negative impact on the City of Fort Collins in the
current term or in any future terms.
Sustainability: Consulting firms/teams participating in the proposal are to provide an overview of
the organization’s philosophy and approach to Sustainability. In no more than two (2) pages
please describe how your organization strives to be sustainable in the use of materials,
equipment, vehicles, fuel, recycling, office practices, etc. The City of Fort Collins incorporates
the Triple Bottom Line into our decision process by including economic (or financial),
environmental, and social factors in our evaluation.
The selected Service Provider shall be expected to sign the City’s standard Agreement without
revision prior to commencing Services (see sample attached to this Proposal).
Sincerely,
Gerry S. Paul
Purchasing Director
RFP 8408 Securities Safekeeping & Custodial Services Page 3 of 35
TABLE OF CONTENTS
Section Description Page
SECTION 1. INTRODUCTION AND INFORMATION ABOUT THE CITY AND THE
FINANCE DEPARTMENT .................................................................................. 4
SECTION 2. PROPOSAL SUBMITTAL INSTRUCTIONS .................................................. 5
SECTION 3. PROPOSAL EVALUATION AND SELECTION ............................................. 6
SECTION 4. SCOPE OF SERVICES TO BE PROVIDED ................................................... 9
A. General Service Requirements and Overview ....................................................... 9
B. Mandatory Requirements .......................................................................................... 10
C. Institutional Profile Data ............................................................................................ 11
D. Required Services ........................................................................................................ 12
E. Optional Services ......................................................................................................... 18
F. Additional or Alternative Services........................................................................... 20
SECTION 5. PRICING PROPOSAL ...................................................................................... 20
A. Basis of Compensation .............................................................................................. 20
B. Pricing Schedule .......................................................................................................... 20
EXHIBITS ............................................................................................................................... 21
EXHIBIT A - Deadline, Cutoff and Notification Times................................................. 21
EXHIBIT B – Pricing Schedule .......................................................................................... 22
EXHIBIT C – Proposal Certification ................................................................................. 23
APPENDICES............................................................................................................................. 24
APPENDIX A – City of Fort Collins Standard Service Agreement (Sample) ........ 24
APPENDIX B – City of Fort Collins Portfolio of Assets ............................................. 32
RFP 8408 Securities Safekeeping & Custodial Services Page 4 of 35
SECTION 1. INTRODUCTION AND INFORMATION ABOUT THE CITY AND THE FINANCE
DEPARTMENT
Purpose and Objectives
The City of Fort Collins, Colorado, and its Finance Department (hereafter referred to as the
“City”) is seeking proposals for a safekeeping and custodial services contract for the City's
portfolio assets. These services are to meet the City’s needs as described in this Request for
Proposal (RFP).
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.
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 recognizes the custody of its securities and assets as an integral part of its cash
management and treasury management program. The leading priority of the City in
safekeeping and custodial services is the safety of public funds and assets. Through this
contract the City intends to assure the safety of its assets, minimize investment, safekeeping
and custodial costs and maximize its investment flexibility and capability.
Safekeeping and custodial service providers are being solicited from banks within Colorado,
banks outside Colorado, and non-bank custody providers (hereafter referred to as the
“Providers”). The institution chosen through this process will be responsible for the safekeeping
of the City's securities and for the safe transfer of public funds. The Provider's services will
complement those of the City's banking services provider and will be required to work with City
staff to assure safety and operational efficiencies. All funds and assets of the City are covered
by this proposal and include: operating funds, bond funds, and pension funds.
The City’s current provider of safekeeping and custodial services is US Bank. According to a
separate agreement and not subject to this RFP, First National Bank of Fort Collins provides
primary banking services to the City. The City has also issued RFP 8407 for Banking Services.
This contract does not include investment advisory or management services. The City reserves
its right to invest as it chooses and the Provider will execute on the proper order of authorized
City representatives. The Provider will not be responsible for the composition, compliance or
performance of the City's portfolio.
Current Investment Practices
During the first six months of 2016, the City’s portfolio averaged approximately $406 million,
consisting of a variety of securities that are legal investments under the Fort Collins Municipal
Code. The Financial Officer or his assigned representatives are authorized to buy, sell, and
exchange all such instruments. All transactions are handled on a delivery-versus-payment
basis. Dependent upon market conditions, the portfolio is traded somewhat actively, and
investment transactions can be expected daily including collateral transfers for repurchase
agreements. As of June 30, 2016, the portfolio allocation was as follows:
RFP 8408 Securities Safekeeping & Custodial Services Page 5 of 35
Par Value # Securities
US Government Treasuries 0 0
US Government Agencies 354,035,000 81
GNMAs 4,540 5
Corporate Bonds 47,217,000 13
Commercial Paper 0 0
Bankers' Acceptances 0 0
Repurchase Agreements 0 0
The City may use overnight or term repurchase agreements for short-term cash needs. The
Provider must be able to act as third party custodian for this collateral. Repurchase agreements
normally range from $50 to $125 million. Primary securities brokers or dealers (broker/dealers)
will deliver between 2 and 4 pieces of collateral per repo transaction. The average repo size for
the preceding six months has been $0 daily.
A copy of the current portfolio is attached as Appendix B.
Invitation to Propose
The City is soliciting prospective custody providers that have an interest and meet the
“Requirements to Propose” as specified below.
The intent of this Request for Proposal is to select one custodian for the City. The City does not
intend to split its safekeeping and custodial services between entities. The City may decide to
undertake securities lending transactions through an ancillary selection process.
The City has no expressed or implied obligation to reimburse responding Providers for any
expenses incurred in preparing proposals in response to this request.
All material submitted to the City of Fort Collins in response to or regarding this RFP becomes
the property of the City and will be returned to the institution only at the City’s option.
The City reserves the right to withdraw this RFP at any time and for any reason. The City may
issue any combination of clarifications, modifications, or amendments it may deem appropriate.
Proposal Calendar
The following calendar outlines the critical dates for the City of Fort Collins Safekeeping and
Custodial Services RFP process. The City reserves the right to adjust this timetable as required
and will provide written notice of any changes to all institutions that may desire to submit a
proposal.
Date Event
October 24, 2016 RFP Issued
November 4, 2016 Written proposal inquiries due by 5:00 p.m.
November 14, 2016 Proposals due by 3:00 p.m.
Week of November 28, 2016 Interviews, if necessary.
January 1, 2017 Contract begins.
SECTION 2. PROPOSAL SUBMITTAL INSTRUCTIONS
Format
All Providers 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.
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Significant deviation from the format prescribed below may also result in the proposal being
disqualified.
Providers 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.
The proposal should include the following items (in order):
1. Title Page
2. Table of Contents
3. Executive Summary
4. Copy of the Proposal Certification Form (Exhibit C)
5. Responses to the “Scope of Services to be Provided”
6. Completed Exhibit A: “Deadline, Cutoff and Notification Times”
7. Completed Exhibit B: “Pricing Schedule”
8. Sample Account Analysis Form
9. Sample Agreements (i.e., Wire Transfer Agreement)
10. Sample Reports
11. Appendices (i.e., Bank Call Reports)
Implied Requirements
Products and services that are not specifically requested in the RFP, but are necessary to
provide the functional capabilities offered by the Provider, shall be included in the proposal.
Required Items
Each institution must include a Transmittal Letter. This letter should briefly state the Provider’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 Provider must submit one (1) copy each of its three (3) most recent audited financial
statements in a PDF document separate from the proposal.
Exceptions to the Prescribed Format
In prescribing the format for proposals, the City desires to make the responses from the
Providers consistent and comparable. The City recognizes that Providers 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 Provider’s reason for not submitting the requested
information must be given.
Proposal Term
All proposals must be valid for 90 calendar days from the required submittal date.
SECTION 3. PROPOSAL EVALUATION AND SELECTION
General Evaluation Guidelines
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
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negotiations and award. Only the names of the Providers submitting proposals will be released
prior to the completion of contract negotiations and award.
Evaluation: The City’s proposal evaluation team will read and evaluate all proposals submitted.
Use of Pre-determined Criteria: The evaluation team will use the evaluation criteria stated
below. The Director of Purchasing may eliminate proposals that are clearly non-responsive to
the stated requirements.
Additional Information: Throughout the evaluation and selection process, the Director of
Purchasing reserves the right, in the best interest of the City, to request additional information or
clarification from the Providers, or allow corrections of errors or omissions. At the discretion of
the City, Providers may be requested to make oral presentations as part of the evaluation
process.
Amendments: After proposals are opened, Providers may not amend or clarify submitted
proposals unless the Director of Purchasing requests such information.
Basis of Selection: The selection will be made on the basis of the one being the most
advantageous to the City, price and other factors considered. Lowest cost may not indicate the
highest ranked candidate. Cost is only one of several evaluation criteria.
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.
WEIGHTING
FACTOR
QUALIFICATION STANDARD
2.5 Cost
Fees and Compensation. The proposal that provides
the services at the lowest total cost to the City. The
total cost for the requested custodial services will be
determined using the attached Pricing Schedule
(Exhibit B). The City will consider the impact of
incremental revenues generated by proposed
Securities Lending activities.
2.5
Understanding City
Needs
Degree to which the proposal and supporting materials
demonstrate that the Provider 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 strength.
3.0 Scope of Services
The availability and quality of services proposed by the
Provider. Includes the value of any new product or
service suggestions or other new ideas and
enhancements.
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1.0 Experience
The experience, resources, and qualifications of the
Provider 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 Providers 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.
Performance Standard
In their proposals, Providers 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.
Acceptance Time
The City intends to make a bid selection for contract negotiations by December 12, 2016.
Award shall be recommended to the proposer whose proposal best meets the needs of the City,
not necessarily to the lowest cost proposer.
Contract Negotiation
If necessary, the City shall have the right to negotiate with one or more of the Providers that
respond to this RFP or the successful Provider. The content of the RFP and the selected
Provider, including the scope of services, will become an integral part of the Contract, but may
modified by the Contract.
By responding to this RFP, the Provider 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 Appendix A. The City expects that both parties will execute
the contract prior to the commencement of safekeeping and custody services on January 1,
2017.
If the selected Provider fails to sign and return the contract documents within 15 days following
the receipt thereof, the City may annul the award. The City may then alternately make the
award to the next highest ranked Provider. The City also retains the right not to make any
subsequent award.
According to the Contract, the City may terminate the Contract upon 90 calendar days written
notice.
The selected Provider 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 Provider 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 Provider’s capital
funds, and the nature, amount, market value, and location of the eligible collateral maintained or
RFP 8408 Securities Safekeeping & Custodial Services Page 9 of 35
pledged by it to secure City deposits.
Term of Contract
The City is seeking a contract for a period of one year, with the option to renew four additional
one-year periods. In order to determine the maximum cost of the safekeeping and custody
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 Exhibit B requires a total dollar cost for each of the five years.
Commencement of Services
The City expects that safekeeping and custody services selected through this RFP process
shall commence on or before January 1, 2017.
SECTION 4. SCOPE OF SERVICES TO BE PROVIDED
Any proposal must commence with responses or compliance statements to each
of the following points. Please reference the Section number for each response.
A. General Service Requirements and Overview
1. Safety of City assets is the highest priority under this contract. As the City's custodian,
the Provider will be acting as a fiduciary agent of the City. State the Provider's general
philosophy on the safeguarding of public assets in this capacity.
2. The City anticipates that it will establish a cash account with the Provider to fund
purchase of securities or accept credit from sale or interest of securities. The City may
also transfer funds on settlement day for all security deliveries. All deliveries will be
made delivery versus payment (DVP). On the sale or maturity of a security, funds would
normally be held in the cash account for reinvestment by the City. In the normal course
of business, should there be delays or fails on the deliveries, funds may be left in the
cash account for an unspecified period of time. This cash account would be maintained
by the Provider and must have the capability to be automatically swept into an
authorized investment vehicle (approved money market fund).
Since City funds must be collateralized, insured or invested, the proposal must describe
the general flow of funds anticipated and how those funds would be collateralized,
insured or invested.
3. There will be no investment activities transacted with the custodial branch of the
institution except the provision of an overnight sweep capability, if desired by the City.
Any repurchase agreement must be with a separate primary dealer as counterparty
although custody of collateral can be safekept with the Provider. Provider should
describe how such a relationship could be structured and/or state any difficulty with this
provision. Please provide a reference for a comparable relationship.
4. The City wants to be able to report all investments in its financial statements as
Category #1 under GASB Statement III ("Deposits with Financial Institutions,
Investments and Reverse Repurchase Agreements") provisions which requires
securities be insured or registered in the name of the governmental entity or held by the
entity's agent in the governmental entity's name. Please describe how the Provider
assures such classification.
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B. Mandatory Requirements
1. Non-Discrimination of Provider and Sub-Contractors
The City is committed to equal opportunity and affirmative action. It is the policy of the
City that the maximum practical opportunity to participate in government contracts be
provided to minority and women enterprises. The Provider shall at all times in the
bidding and contracting period comply with all applicable city, county, state and federal
anti-discrimination laws, rules, regulations and requirements.
2. Bank Providers
a. In accordance with the provisions of Colorado State law, Colorado Banking
Institutions must be designated as a public depository by the State of Colorado.
Please state the Provider's status.
b. The Community Reinvestment Act (CRA) of 1977 stipulates that banks and other
financial institutions must meet the credit needs of the communities they serve.
Proposals should include a copy of the bank's most current CRA policy statement
and the current CRA rating of the institution.
3. Insurance Requirements
Provider must have either insurance or collateral for City funds. State what insurance is
available for City funds or whether collateral is available for funds in transit.
4. Ability to Handle All Security Transaction Types
a. Provider must be able to handle the following types of security transactions through
their own operations or through an established correspondent banking relationship.
Please respond to each and state whether each operates on a same day posting
and crediting basis for all credit transactions.
Fed Wireable Security Transfer (FedWire)
Depository Trust Corporation (DTC)
Participatory Trust Corporation (PTC)
Physical Security Settlement (New York)
List your depository memberships (FRB, DTC, PTC) and the services you use at
each. How long have you had this membership? Is membership through the
Provider or correspondent? Fully describe the use of any sub-custodians.
b. If any of these transactions are to occur through a correspondent or sub-custodian
relationships, those relationships should be fully disclosed including the length of the
relationships.
c. What criteria do you use to select sub-custodians?
5. Same Day Posting Requirements
Same day posting of all credits and debits (cash transfers, interest payments, maturities,
and sales, etc.) is required. Please stipulate the Provider's policy on posting of debits
and credits. Please include a schedule of your income and collection standards.
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6. Immediate Instruction Execution
Provider will be required to act promptly on all instructions given by authorized
representatives of the City through mutually agreed upon procedures. There is no
requirement for the Provider to verify the validity of the transaction, or compliance of that
transaction, with state statute or City policy. Please describe Provider's policy and
limitations on this issue.
C. Institutional Profile Data
1. Brief History and Service Statement
a. The Proposal should state a brief history of the Provider institution and development
of its custodial division(s) which indicates the scope of service, philosophy as a
public depository, and key dates of implementation and enhancement to its custodial
services.
b. Describe the Provider's commitment to the custodial services business.
2. Financial Information
a. The City requires a Provider that is fiscally strong and able to provide these custodial
services on an uninterrupted basis. Foremost in any system must be safety of
assets and accuracy of information with provision for an adequate audit trail. In
order to fulfill the City's fiduciary responsibility to protect public funds, all proposals
will include, as part of the proposal:
(1) audited financial statements for the three most recent fiscal years,
(2) if the Provider is owned by a holding company, financials must also be
provided for the holding company, and
(3) if a bank, the most recent call reports must be supplied.
b. Please provide a statement regarding any recent or anticipated merger, acquisition,
or charter change affecting the Provider.
c. If the potential Provider is a bank, the City requires a minimum of a “green”
VERIBANC rating. Please state your current VERIBANC rating and any other ratings
of note. Banks that do not 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.
3. Organization
a. Briefly describe your organization and its institutional custody division(s). Describe
the structure of the organization with core businesses, locations and services.
b. Briefly describe your institutional custody service capabilities and what capabilities
set you apart from other providers.
c. Provide an organizational chart showing the operating interrelationships and
authorities within the Provider's entire organization.
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d. How many professional staff are devoted exclusively to institutional custodial
services?
e. Are accounts administered by teams or individually?
f. Comment on the personnel turnover you have experienced in the last year in the
division.
4. Client Base and Trust Assets
a. Please state the total of all assets held in custody by the Provider and the number of
trust or custodial clients (and average size) currently served. Provide a breakdown
of our client base in the categories of personal and institutional accounts, both
globally and domestically.
b. How many public entities are currently served? How many twelve months ago?
Provide five (5) accounts of comparable size (and asset type) to be used for
references. List the name, address and phone number of the appropriate contact
person to be used for this reference.
c. How many custodial clients has the Provider gained in the last twelve months?
d. How many custodial clients has the Provider lost during the past twelve months?
And what percent of your total clients does this represent? For each client lost
provide the reason for the termination.
5. Service Commitment
a. Describe your approach to and level of commitment to client service. Include a
statement describing the Provider's approach to satisfying the services requirements
of the City. What is the Provider's commitment to institutional custody relationships?
Please illustrate.
b. How do you monitor customer satisfaction?
6. Training
Describe any ongoing educational seminars, user meetings, publications, or other
training mechanisms you use for keeping clients informed and educated.
7. Outstanding Litigation
Identify and describe any litigation or investigations by a regulatory agency or authority
or contingent liabilities your company, its officers or its principals, have been involved in
within the last three years relative to your custodial service.
D. Required Services
1. Legal Segregation of Securities and Accounts
The City requires that all its assets be legally segregated from all other clients for safety.
Describe how this separation will be established and maintained.
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2. Account Executive
a. To insure smooth implementation and continuation of services, an account executive
must be assigned to the City's account to coordinate the account services and
expedite the solution of any problem. The account executive will work with the City
representative as central coordinators on all matters under the resulting contract.
The City expects that all custodial problems and questions can be addressed
through this one account executive. Provide the name, title and qualifications of the
account executive expected to be assigned to the account. Please state how long
the person has been in their current position and the training or experience they have
had.
b. How many accounts are assigned to the executive? Typically how many accounts
are assigned to each account representative?
c. Is account administration handled as a team or individual effort?
d. Trained and competent backup for the account executive, familiar with the account,
should also be assigned. Provide the name, title and qualifications of the back-up
personnel expected to be assigned to the account.
e. Describe the policy on notification of changes in these positions during the contract
period.
3. Accounting
a. Accurate accounting is critical to the City. Describe your accounting process (or
module) and the degree of flexibility available through it.
b. Does your system report or accommodate trade date, settlement date and accrual
accounting? What accounting methods do you offer? (Trade or settlement? Cost
basis? Amortization?)
c. What is your source of pay down information? When is this posted? Do you
maintain records of the original face amount?
d. How do you handle corrections/reversals (i.e. as an adjustment or an offsetting sale
or purchase?)
e. What is your policy toward same day crediting of interest and dividends on payable
dates? Are payments credited in same day funds? If not credited on the same day
how is the City compensated?
f. When are funds withdrawn for purchases?
4. Security
a. What security procedures and precautions are in place to protect City information,
especially with respect to unauthorized on-line access or telephone instructions?
Please fully describe all security measures.
b. What procedures restrict unauthorized use at the time of transaction recording?
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c. How are authorization codes assigned? Are authorization codes changed
periodically? How often?
5. Delivery versus Payment “DVP” Settlement
All securities transactions must be delivery versus payment (DVP). Describe how this
process will function and how the DVP protection is assured.
6. Securities Movement and Trade Settlement
a. Describe your system for settlement, registration and custody of assets. Can you
handle same-day turnaround transactions?
b. Describe where and how the receipt and delivery of physical securities occurs and
how they are secured. Describe any involvement by correspondent banks in the
clearing.
c. Describe the physical security systems of your vault and custody areas.
d. Do you verify transaction detail from client instructions? How? When?
e. Describe the flow of data for the following transaction types. (Provide flow charts if
necessary.)
(1) Receipt and transference of trade instructions on purchases and sales.
(2) Clearing functions.
(3) Transfer to safekeeping.
(4) Payment for income and maturities.
(5) Handling of repurchase agreement collateral.
(6) Handling of reverse repurchase agreement activity.
(7) Delayed deliveries and sales.
f. How do you handle corporate actions? (splits, dividends, etc.)
7. Service Deadlines and Cutoffs
What are your trade settlement instruction deadlines for timely processing of regular and
same-day transactions? Proposal must include completion of Exhibit A.
8. Fail Process and Policy
a. Does the Provider take responsibility for collection of due bills, interest and fails?
Describe your policy.
b. What is your client compensation policy on failed transactions?
c. What procedures are in place to identify, follow-up and resolve failing trades? What
percent of transactions failed for the most recent calendar year? (Purchases and
sales.)
d. How many times in the past year have your electronic information systems been out
of service due to reasons internal to your company? How long were the downtimes?
RFP 8408 Securities Safekeeping & Custodial Services Page 15 of 35
If you had outages or downtimes, what has been done to eliminate the problem(s)?
9. Wire Transfers
a. A separate wire transfer agreement must be executed with the Provider establishing
the names of authorized individuals and repetitive wires, etc. This may be the
Provider's standard agreement form. The City will retain the right to modify the form
if found necessary. Please provide a copy of this agreement.
b. Describe the procedures and controls for repetitive and non-repetitive wires including
security controls. Is wire transfer transaction processing available on line?
c. Wire transfers must be credited the same day as received. The proposal will list all
deadlines and cutoff times on Exhibit A.
10. Daylight Overdraft Provisions
Every effort will be made to eliminate daylight overdraft situations on the City's account.
However, in case this situation does arise, the proposal should include any and all
policies regarding daylight overdraft charges or handling procedures.
11. Sweep Provisions
a. Do you provide an automated daily sweep mechanism for anticipated or
unanticipated cash balances? Describe all alternatives available to the City for its
cash balances. Include timing restraints and controls that assure that funds are not
left unprotected. The prospectus for each alternative must be provided for review and
approval before use by the City.
b. Are balances automatically monitored to assure no un-invested balances? Who
directs this process and what are the deadlines for the service?
12. Collateralization
a. If a non-Colorado bank, the Provider will agree to obtain and maintain collateral
acceptable to the City sufficient to cover all anticipated intra-day and overnight
balances, above the FDIC insured limit of $250,000. Please state bank's agreement
to this requirement. How will the City be assured that acceptable collateral is
maintained? Colorado Banks must be designated as Colorado Public Depositories
by the State of Colorado and meet all Public Depository Protection Act requirements.
b. Describe any alternative to this collateralization requirement.
c. What margin will be used for collateral provided?
13. Pricing of Securities
a. Describe your pricing services.
b. What is the source of your pricing data for securities authorized by the City?
c. How do you price securities not available from pricing services?
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d. How frequently do you price securities?
e. Will the City have access to your pricing service?
14. Reporting
a. Accurate and timely reporting is of critical importance to the City. Describe your
standard and custom reporting package(s) and alternatives. Describe and submit
copies of all standard reports available and how they are made available (paper only,
on-line, real-time, next day, delayed, etc.). Describe all aspects of reporting and
download capabilities.
b. How soon after calendar month-end can you provide reports? Can you provide
system to system electronic data transmission? PC downloading? Internet access?
c. What information is available on-line? How long is historical data available on-line?
How long does the Provider maintain historical data? Are there charges for
research?
d. Describe the confirmation process for each settlement. Provide a sample
confirmation.
e. Is an original safekeeping receipt issued for each holding?
f. How do you handle notification on mortgaged-backed securities principal and
interest?
g. Do you use CUSIPs or internal identification numbers for your securities? Are
CUSIP numbers on each report?
h. What is the interday time lag between trade execution, posting, and availability of on-
line information to the client?
I. What are your transaction confirmation procedures as it relates to notifying the City
on upcoming interest payments, call actions, and receipts of payments and calls.
15. Systems
a. Describe the automated systems and environment supporting the custodial services
(age, state of development, etc.) and describe the Provider's commitment to system
development and maintenance. Include your current capacity and track record.
b. Within your institution, does your custody system use dedicated or shared
computers? If shared, what is its priority level?
c. Between what hours each business day is information available? The proposal
should state in Mountain Standard Time (MST) when information and access will be
available each business day.
d. How long has on-line inquiry and reporting been available to clients?
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e. The City desires on-line transaction processing if possible. Can all custody
transactions be entered, completed and reviewed on-line? Provide examples of all
transaction screens.
f. Please provide your system support phone number.
g. What system's training is available for the City personnel?
h. Briefly describe you method of controlling client access.
i. How long has the current system been in place? What changes in the systems, if
any, are anticipated and in what time-frame?
j. How much funding have you committed to computer systems and data processing
for custodial accounts and systems in the past five years?
k. Does the system provide electronic mail capabilities between the City's and
Provider's personnel?
l. List any circumstances or situations in which the information sent electronically by
the City would be manually entered at the Provider.
m. Back-up via telephone must be available for transaction processing. Describe this
process.
n. Specify any hardware and software required of the City for on-line services.
o. Do you have an online cash management system?
p. Can cash balances be invested in Certificates of Deposits, Commercial Paper, and/or
Money Market Mutual Funds through your online system?
q. Describe the process for online investing. Also provide a list of the investment
options available.
r. Specify the costs associated with investing online.
16. Auditing Procedures
a. Describe your daily and periodic auditing procedures for both internal and external
processes. Will the City have access to audit information?
b. Would the City’s accounting reports be audited for accuracy before submission to the
City? Describe this process.
17. Back-up and Disaster Plans
a. It is imperative that the City have access to its financial assets in case of a disaster.
Describe your disaster and back-up plan and capabilities including data processing
systems, telephone access, system security controls, and customer identity controls.
b. How often is the plan tested?
RFP 8408 Securities Safekeeping & Custodial Services Page 18 of 35
c. Has this plan had to be used within the past three years?
18. Conversion
a. Describe your approach to the implementation and conversion process as City
assets are moved to the Provider. Include an estimated conversion calendar.
b. What resources will be dedicated to the conversion effort?
c. What controls are suggested for this period?
d. What type and level of City involvement do you foresee in the process?
e. What training is offered to the City during transition?
f. What is the relationship between the transition team and the permanent support
staff? What role will the account executive play in the conversion?
g. What costs are associated with the conversion? List all types and charges on Exhibit
B.
h. Will the Provider defray any costs the City may incur from the present custodian for
transferring assets?
E. Optional Services
1. Subsequently Added Services
It is the intent of the City to pay for all services on a fee basis. If new services become
available and are provided during the period of this contract, how will the City be
charged? Describe your policy on subsequently added services.
2. US Treasury Auctions
During the course of the contract the City may wish to take advantage of the US
Treasury's Automated Auction Bidding for Institutional Investors. Since this requires
electronic bid submission and FedLine connections, the proposal should state whether
the Provider currently has, or plans to have, the capability to handle such transactions.
3. Computer Terminal Link
Should services provided by the Provider require a special computer terminal for inquiry
and updates (not available through a personal computer), the City would request that
two terminals be provided by the Provider for the City's Treasury and Accounting
Departments. Provide a full explanation and cost estimate. Specify systems
requirements and costs.
4. Securities Lending
The City may elect to do securities lending transactions.
a. Do you provide securities lending? If so, describe your program and the services
provided. What differentiates your program from others?
b. Is the securities lending group in-house? A part of the custody operation?
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c. How long have you provided securities lending services?
d. If provided through a third party, identify the vendor, their split of revenues and the
residual percentage to the City. How long have you had this relationship?
e. How do you minimize the risk in securities lending?
f. Provide a list of borrowers with whom the Provider works and a copy of the current
collateral contract.
g. How many institutional custodial clients currently use the securities lending services?
(Identify public versus private.)
h. How often is the creditworthiness of borrowers reviewed?
I. Describe the type of securities in the program.
j. Do you mark-to-market daily? Is collateral adequacy monitored daily?
k. How is cash collateral invested?
l. Provide a copy of all transaction and income reports. Describe the on-line reporting
availability for securities lending.
m. Can assets be designated as available for different sector types and varying time
frames?
n. Are loaned securities flagged on the custody reports for client identification?
o. To what degree are the securities lending clients insured against losses in the
program?
p. On the City's portfolio provided as part of this RFP, what incremental revenues (in
basis points per annum) could be expected in a year? Do you guarantee income?
5. Investment Management
a. What investment management services do you provide?
b. Does the Provider act as third party custodian for existing repurchase agreement
programs with multiple primary dealers which allows on-line rate inquiry and
transaction processing?
6. Performance Management
a. Does the Provider provide portfolio performance measurement? What are the
performance products available? What portion of these services are available on-
line? What are the advantages of using your performance management services?
b. What level of control on the reporting and options are available for this service?
c. Can the program download to Excel? Other software applications?
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d. What training is available to the City in understanding your performance products?
e. What costs are associated with these services?
F. Additional or Alternative Services
Any additional service or permissible alternatives to the required services, whether for
charge or no charge, should be specified under this section. If alternatives are offered on
services outlined above, please note the reference number from the RFP for the service.
Give a full description of the service along with all charges and detail charges on Exhibit B.
The volume for such transactions will be available upon written request.
Describe any service restrictions or limitations.
SECTION 5. PRICING PROPOSAL
A. Basis of Compensation
a. Compensation will be on a fee basis with respect to the services used and detailed on
the account analysis. The Provider will be paid upon receipt and verification of the
account analysis maintenance report each month. If another payment schedule is
desired, proposal should so state the schedule and requirements of that proposal.
b. Please state when the account analysis will be provided and provide a sample of the
proposed account analysis form.
B. Pricing Schedule
Each proposal must include a completed Exhibit B – Pricing Schedule which details all
services and the fee to be charged for each. Any additional services should also be
stipulated on Exhibit B.
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EXHIBITS
EXHIBIT A - Deadline, Cutoff and Notification Times
Purchase/ Sale/
Receipt Delivery
SAME DAY TRANSACTIONS
Federal Reserve (FedWire)
NY Physical - (Muni/Equities/Corporates)
NY Physical Money Markets (CP)
DTC
PTC
REGULAR SETTLEMENT (NEXT DAY / CORPORATES – 3 DAY)
Federal Reserve (FedWire)
NY Physical - (Muni/Equities/Corporates)
NY Physical Money Markets (CP)
DTC
PTC
State any exemptions, restrictions or limitations on these deadlines below.
RFP 8408 Securities Safekeeping & Custodial Services Page 22 of 35
EXHIBIT B – Pricing Schedule
Please see the attached Excel spreadsheet titled “Exhibit B – Pricing Schedule”.
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EXHIBIT C – Proposal Certification
CITY OF FORT COLLINS
REQUEST FOR PROPOSAL 8408
SECURITIES SAFEKEEPING AND CUSTODIAL SERVICES
PROPOSAL CERTIFICATION FORM
The undersigned hereby affirms that:
1. He or she is a duly authorized agent of the custody provider 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
custody provider in conjunction with this RFP and fully understands and accepts these terms
unless specific variations have been expressly listed in the custody provider’s proposal;
3. The custody provider will follow and adhere to all terms and conditions and provide, at a
minimum, all services as expressed in the RFP and the custody provider’s proposal
responding to the RFP;
4. The custody provider’s proposal is offered independently of any other proposer and is in full
compliance with the terms specified in the RFP;
5. The custody provider will accept any awards made to it, contingent on contract negotiation,
as a result of the RFP for a minimum of ninety (90) calendar days following the date and
time of the bid opening; and
6. If awarded a contract, the custody provider warrants that it will not delegate or subcontract
its responsibilities without the express prior written permission of the City of Fort Collins.
Signature of the Custody Provider Official:
Name of Official (typed):
Title:
Name of Custody Provider:
Address:
City, State, Zip:
Phone: Email:
Note: Proposals submitted without the signature of an authorized agent of the custody
provider may be considered non-responsive and ineligible for award.
RFP 8408 Securities Safekeeping & Custodial Services Page 24 of 35
APPENDICES
APPENDIX A – City of Fort Collins Standard Service Agreement (Sample)
SAMPLE SERVICES AGREEMENT
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 ( )
page and incorporated herein by this reference. Irrespective of references in Exhibit
A to certain named third parties, Service Provider shall be solely responsible for
performance of all duties hereunder.
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 ( ) page , 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. 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. Written notice of
renewal shall be provided to the Service Provider and mailed no later than thirty (30) 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
RFP 8408 Securities Safekeeping & Custodial Services Page 25 of 35
from the onset of such condition.
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:
Service Provider: City: Copy to:
Attn:
City of Fort Collins
Attn:
PO Box 580
Fort Collins, CO 80522
City of Fort Collins
Attn: Purchasing Dept.
PO Box 580
Fort Collins, CO 80522
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, ($ ) as per the
attached Exhibit " ", consisting of page , 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. Subcontractors. Service Provider may not subcontract any of the Work set forth in the
Exhibit A, Statement of Work without the prior written consent of the city, which shall not
be unreasonably withheld. If any of the Work is subcontracted hereunder (with the
consent of the City), then the following provisions shall apply: (a) the subcontractor must
be a reputable, qualified firm with an established record of successful performance in its
respective trade performing identical or substantially similar work, (b) the subcontractor will
be required to comply with all applicable terms of this Agreement, (c) the subcontract will
not create any contractual relationship between any such subcontractor and the City, nor
will it obligate the City to pay or see to the payment of any subcontractor, and (d) the work
of the subcontractor will be subject to inspection by the City to the same extent as the
RFP 8408 Securities Safekeeping & Custodial Services Page 26 of 35
work of the Service Provider.
11. 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.
12. 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
Agreement.
13. 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.
14. 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.
15. 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 liable to the non-defaulting party for the non-defaulting party's reasonable
attorney fees and costs incurred because of the default.
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16. 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.
17. 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 , 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 Purchasing Director, 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.
18. 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.
19. 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.
20. 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
RFP 8408 Securities Safekeeping & Custodial Services Page 28 of 35
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:
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.
21. Special Provisions. Special provisions or conditions relating to the services to be
performed pursuant to this Agreement are set forth in Exhibit " " - Confidentiality,
consisting of one (1) page, attached hereto and incorporated herein by this reference.
RFP 8408 Securities Safekeeping & Custodial Services Page 29 of 35
THE CITY OF FORT COLLINS, COLORADO
By:
Gerry Paul
Purchasing Director
DATE:
ATTEST:
APPROVED AS TO FORM:
SERVICE PROVIDER'S NAME
By:
Printed:
Title:
CORPORATE PRESIDENT OR VICE PRESIDENT
Date:
RFP 8408 Securities Safekeeping & Custodial Services Page 30 of 35
EXHIBIT
INSURANCE REQUIREMENTS
1. The Service Provider will provide, from insurance companies acceptable to the City, the
insurance coverage designated hereinafter and pay all costs. Before commencing work
under this bid, the Service Provider shall furnish the City with certificates of insurance
showing the type, amount, class of operations covered, effective dates and date of
expiration of policies, and containing substantially the following statement:
“The insurance evidenced by this Certificate will not reduce coverage or limits and
will not be cancelled, except after thirty (30) days written notice has been received
by the City of Fort Collins.”
In case of the breach of any provision of the Insurance Requirements, the City, at its
option, may take out and maintain, at the expense of the Service Provider, such
insurance as the City may deem proper and may deduct the cost of such insurance from
any monies which may be due or become due the Service Provider under this
Agreement. The City, its officers, agents and employees shall be named as additional
insureds on the Service Provider 's general liability and automobile liability insurance
policies for any claims arising out of work performed under this Agreement.
2. Insurance coverages shall be as follows:
A. Workers' Compensation & Employer's Liability. The Service Provider shall
maintain during the life of this Agreement for all of the Service Provider's
employees engaged in work performed under this agreement:
1. Workers' Compensation insurance with statutory limits as required by
Colorado law.
2. Employer's Liability insurance with limits of $100,000 per accident,
$500,000 disease aggregate, and $100,000 disease each employee.
B. Commercial General & Vehicle Liability. The Service Provider shall maintain
during the life of this Agreement such commercial general liability and automobile
liability insurance as will provide coverage for damage claims of personal injury,
including accidental death, as well as for claims for property damage, which may
arise directly or indirectly from the performance of work under this Agreement.
Coverage for property damage shall be on a "broad form" basis. The amount of
insurance for each coverage, Commercial General and Vehicle, shall not be less
than $1,000,000 combined single limits for bodily injury and property damage.
In the event any work is performed by a subcontractor, the Service Provider shall
be responsible for any liability directly or indirectly arising out of the work
performed under this Agreement by a subcontractor, which liability is not covered
by the subcontractor's insurance.
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EXHIBIT
CONFIDENTIALITY
IN CONNECTION WITH SERVICES provided to the City of Fort Collins (the “City”) pursuant to
this Agreement (the “Agreement”), the Service Provider hereby acknowledges that it has been
informed that the City has established policies and procedures with regard to the handling of
confidential information and other sensitive materials.
In consideration of access to certain information, data and material (hereinafter individually and
collectively, regardless of nature, referred to as “information”) that are the property of and/or
relate to the City or its employees, customers or suppliers, which access is related to the
performance of services that the Service Provider has agreed to perform, the Service Provider
hereby acknowledges and agrees as follows:
That information that has or will come into its possession or knowledge in connection with the
performance of services for the City may be confidential and/or proprietary. The Service
Provider agrees to treat as confidential (a) all information that is owned by the City, or that
relates to the business of the City, or that is used by the City in carrying on business, and (b) all
information that is proprietary to a third party (including but not limited to customers and
suppliers of the City). The Service Provider shall not disclose any such information to any
person not having a legitimate need-to-know for purposes authorized by the City. Further, the
Service Provider shall not use such information to obtain any economic or other benefit for itself,
or any third party, except as specifically authorized by the City.
The foregoing to the contrary notwithstanding, the Service Provider understands that it shall
have no obligation under this Agreement with respect to information and material that (a)
becomes generally known to the public by publication or some means other than a breach of
duty of this Agreement, or (b) is required by law, regulation or court order to be disclosed,
provided that the request for such disclosure is proper and the disclosure does not exceed that
which is required. In the event of any disclosure under (b) above, the Service Provider shall
furnish a copy of this Agreement to anyone to whom it is required to make such disclosure and
shall promptly advise the City in writing of each such disclosure.
In the event that the Service Provider ceases to perform services for the City, or the City so
requests for any reason, the Service Provider shall promptly return to the City any and all
information described hereinabove, including all copies, notes and/or summaries (handwritten or
mechanically produced) thereof, in its possession or control or as to which it otherwise has
access.
The Service Provider understands and agrees that the City’s remedies at law for a breach of the
Service Provider’s obligations under this Confidentiality Agreement may be inadequate and that
the City shall, in the event of any such breach, be entitled to seek equitable relief (including
without limitation preliminary and permanent injunctive relief and specific performance) in
addition to all other remedies provided hereunder or available at law.
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APPENDIX B – City of Fort Collins Portfolio of Assets
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