REQUEST FOR PROPOSAL
BANKING SERVICES
NORTHERN COLLEGE OF APPLIED
ARTS & TECHNOLOGY
Contact:
Jodi DeLaurier
General Accounting Officer
Address:
P. O. Box 3211
Timmins, ON P4N 8R6
(705) 235-3211, ext. 2131
(705) 235-7117
delaurierj@northern.on.ca
Phone:
Fax:
E-Mail:
RFP BANKING SERVICES
INTRODUCTION
REQUEST FOR PROPOSALS FOR BANKING SERVICES
Northern College of Applied Arts and Technology invites the submission of proposals for the
provision of banking services in accordance with the attached documents.
Sealed proposals will be accepted until 4:00 p.m. local time, November 25, 2009. Proposal
envelopes received after the closing will not be accepted.
This request for proposals for banking services is being structured in four parts as follows:
1. General Background
2. Required Services
3. Optional Considerations
4. Terms and Conditions
The following is a guideline to assist in the preparation of a proposal for banking services for Northern
College. Responses to this call for proposals should address each of the service
requirements specified in part 2. Your response should include a commentary indicating how you
propose to handle each requirement, as well as, the remuneration required.
Banks are requested to respond on the basis of this structured format clearly providing
service commitments and cost components. Costs should be identified for each service on an
item by item basis, as well as, an alternative monthly or annual fee. If the Bank would like to
address a function in a different manner or include an alternate method of servicing a
specified requirement, please provide full details and indicate the related charges separately.
RFP BANKING SERVICES
1.0 GENERAL BACKGROUND
Northern College is a Schedule III Agency of the Ontario Ministry of Education and Training
and is governed by a Board of Governors.
The college currently operates in over twenty locations in the Cochrane/Temiskaming area.
Accounting functions are performed by Finance Services located at the Porcupine Campus.
Banking services will also be required for the following locations (for deposits, obtaining cash
for change, etc.):
South Porcupine/Timmins
Haileybury
Kirkland Lake
Moosonee
Kapuskasing
New Liskeard
The College accepts Visa, MasterCard, American Express and Debit Card payments
and online/telebanking payments for services rendered.
The College's financial information systems are maintained on an IBM A/S 400. The College
Payroll is processed in-house and paid by E.F.T. bi-weekly and semi-monthly. The payroll data is
presently transmitted on-line. The College also uses PAD services for Benefits payroll
monthly.
RFP BANKING SERVICES
2.0 REQUIRED SERVICES
The following is a description of the bank account structure and support services that the
College deems necessary to carry on its normal banking operations. In preparing your
submission please provide complete details indicating how your bank will accommodate these
service requirements and also provide a summary of your compensation requirements, based on
one or more of the following methods:
a) on a per unit service basis showing unit prices and estimated annual amount of each
service activity
b) a flat monthly or annual fee for all services detailed
c) a fixed non-interest bearing balance (reflecting net position of all accounts)
d) The main banking services are required to be located in the Timmins/South Porcupine area. All
accounts must be interest bearing and interest which the Bank will pay should be
quoted in terms of plus or minus (+ or -) prime floating.
2.1
General Account (Canadian Dollars)
Most revenues will be deposited to and most disbursements will originate from this
account. This general account will be a current account requiring a full range of
services. This account will be located in the Timmins/South Porcupine area.
All service charges, foreign exchange and other remuneration to the bank will be charged to
the general account. If the bank requires a float in lieu of any of its charges, the float
will be maintained in this account. All credits for such items as interest on surplus
funds will be made to this account.
The bank will ensure that postdated cheques, stale dated cheques and cheques on which
a stopped payment has been placed, are not charged to the College's General Account and
returned to Finance Services on a regular basis.
2.2
Service/Satellite Branches
The College requires the use of bank branches located closest to the College's
premises at each of its sites as set out in Section 1.0 of this document. The primary
use of these bank accounts will be for revenue deposits. All revenues deposited will
be credited to the College's general account through online bank transfers initiated by
Northern College. If this is not possible at any site, alternate arrangements should be
suggested. Please indicate night deposit box facilities, parking facilities and the
commercial banking services offered at these locations.
The College reserves the right to select a Bank branch, other than that of the successful
Bank if location and services are more convenient. In such a case, the successful Bank
will be requested to facilitate the transfer of funds from these Banks to the College's
general account.
RFP BANKING SERVICES
2.3
Bank Statements and Cancelled Cheques
The Bank will provide the College with bank statements and cancelled cheques
within ten (10) working days after the end of each month for all accounts.
Cancelled cheques will be returned sorted in numerical order. If an electronic
version of this process is available, please indicate and identify system
requirements and costs.
The various services offered by the Bank to assist the College in completing the monthly
reconciliation process should be described with any related charges being disclosed.
2.4
Reportinq Services
The College requires daily access to account information for cash flow forecasts and
for identifying funds available for investments, therefore online access should be
available.
The costs associated with the above should be clearly stated, including those which would be
picked up directly by the College (i.e. modems, line charges, etc.)
2.5
Cheques and Deposit Requirements
The College will provide its own cheques which are encoded and will conform to
the bank's specifications.
The bank will provide encoded deposit slip books. Deposit bags will also be required.
2.6
Borrowing/Line of Credit
Borrowing for current and/or capital purposes may be required by the College periodically. The
proposal should describe the Bank's lending policy including interest rates.
2.7
Short Term Investments
Short term investments are made by the College periodically, based on projected cash
flow.
The College prefers to place these with the successful bidder for convenience,
providing their rates are competitive.
Any minimum balances required by the bank for various classes of
investments should be clearly stated.
2.8
Wire Transfers
The majority of the College's payments are made by cheque, however, in some cases
the College may require a wire transfer of funds.
2.9
Stop Pavments
Stop payments on College issued cheques may be required occasionally. In the event
that a cheque for which a stop payment has been requested is paid, the Bank must notify the
College as soon as possible.
RFP BANKING SERVICES
2.10 Safetv Deposit Box
The College may require the use of a Safety Deposit Box for storage of securities and
other documents, the proposal should include the annual cost of a large sized box,
located at the branch nearest to the College's central office.
2.11 Bank Debit and Credit Memos
The bank shall forward daily, to the College, all documentation in support of any bank initiated
transactions, for example, foreign exchange on cheques and deposits, N.S.F. cheques,
interest, funds transfers and a duplicate shall be provided with the bank statement.
2.12 Foreiqn Exchanqe Transactions
Occasionally, foreign exchange transactions are required. The Bank is required to
quote current conversion rates and provide same day money orders or bank drafts.
2.13 Payroll Services - Canada Savings Bonds
Canada Savings Bonds are purchased through payroll deductions. The 08/09 promotion
resulted in 70 employees purchasing certificates for a total approximate value of
$219.000.
2.14 Debit Card and Credit Card Receipts
The College receives payments of approximately $2 million annually through
MasterCard, Visa, American Express and Debit Cards. Currently the College is
operating with five Point of Sale terminals. The Bank should indicate its ability to
provide Point of Sale services including detailed fee schedules for discount rates
and/or transaction fees, as well as, any installation fees and device rental charges.
Monthly Point of Sale activity statements will be required and the Bank should outline
the advantages of their statements in completing the reconciliation process and any
other services it has to offer in this regard.
If separate accounts are required for these receipts, daily transfers to the general
account are required.
RFP BANKING SERVICES
3.0 OPTIONAL SERVICES
The College is anxious to consider some different mechanisms from the traditional
approaches and processes. Banks are invited to submit proposals on alternatives which
reflect their systems development and service capabilities.
Investments
Any investment alternative/vehicles which the Bank feels may be beneficial to the
College should be outlined. Balances may be invested in short (one day to one year)
and long (greater than one year) term investments. Please specify any minimum or
maximum Block Investments acceptable through these or other investment vehicles and
applicable fees for the service. The College does not guarantee that all or any
investments will be placed with the successful bidder.
Payroll
The College currently processes it payroll utilizing on-line banking access. While this bank services
Proposal Call is not intended to include a proposal on payroll processing, any Bank may include
such information without being penalized. Information on payroll processing should be
included in a separate package.
Please outline any other available services the Bank considers would be of benefit to
the College.
RFP BANKING SERVICES
4.0 TERMS AND CONDITIONS
4.1
Closing Time and Date
Proposals in duplicate shall be enclosed in a sealed envelope clearly marked Proposal for
Banking Services and addressed to:
V.P. Finance & Administration &
Aboriginal Services
Northern College
Porcupine Campus
4715 Highway 101 East
P.O. Box 3211 Timmins,
Ontario P4N 8R6
Proposals must be submitted to the V.P. Finance & Administration & Aboriginal Services
no later than 4 p.m., November 25, 2009. Late proposals will not be considered.
4.2
Validitv of Proposal
The terms and conditions of the Bank proposal must be valid for a period of 90
calendar days following the closing date.
4.3
Evaluation/Decision
The proposals will be evaluated and ranked, and based upon the criteria weighting, the
Banking Committee may invite top ranked Banks to make a presentation prior to
awarding the service contract. It is expected that the Representative who would be
assigned to the account would make the presentation on behalf of the Bank.
4.4
Period of Service
The period of service will cover a term of five years. The College reserves the right to
review the financial institution's performance, on an annual basis, and not reappoint if
dissatisfied, in any way, with the performance or any other elements of the service
provided. The agreement will contain a termination option, whereby either party may
cancel the service upon 120 days written notice. If terminated by the Bank, the Bank
must fully compensate the College for the cost of the supply of preprinted cheques on
hand at the date of termination.
4.5
Proposal Content
The proposal must, as a minimum, provide the information requested below, in the following
order:

Account Team and Bank Profile
Information as to the location of the office(s) which would be responsible for the
banking services, the names and resumes indicating the experience of the manager and
account representatives who will be assigned to the account if successful.

Bank Experience
Include experience in public sector, particularly strengths relevant to public sector
clients and breadth of other clientele.
RFP BANKING SERVICES

4.6
Client References
Three current client officials who could act as contact references.
Banking Services

For each of the required services outlined in this Proposal Call, a commentary
describing service commitments, accompanied by the related cost components must be
clearly identified, with reference to the paragraph numbers used herein.
Where no service charge is allocated, this should be clearly stated.
It is expected that the quoted charges for services requested herein will remain
constant for five years.

Other services to include the availability of other advisory/support services.
4.7
Proposal Costs
All costs incurred by the Bank in preparation of their response to this Proposal Call are
considered to be at their own expense.
4.8
Contact Person at the Bank
The Bank should include in their proposal, the name and telephone number and email address of
a person who can provide or receive clarification, if required, during the evaluation
process.
4.9
Transfer of Accounts
If the successful bidder is other than the incumbent bank, the new banking
arrangements are tentatively planned to be effective January 1, 2010.
The College requires that the successful bidder provide its resources to supplement those of
the College to achieve a smooth transition. The Bank proposal should outline what support
it will provide in this respect and identify the costs that it will incur for any conversion.
4.10
Selection Criteria
The College reserves the sole right to decide which proposal best meets the requirements of
the College. The lowest bidder will not necessarily be accepted.
Tender Section
Weight
Account team and Bank profile
20%
Bank experience
20%
Client references
5%
Banking services
50%
Other services
5%
100%
RFP BANKING SERVICES
APPENDIX A
NORTHERN COLLEGE
PROPOSAL CALL FOR BANKING SERVICES
CONTENTS
1.
Bank transaction information
(chart attached also)
2.
Investment information
3.
2008/2009 Northern College Financial Statements
(Available at www.northernc.on.ca/about)
RFP BANKING SERVICES
1.
Bank transaction information
Relevant data applicable to general bank account:

an average of 680 cheques are issued monthly

payroll E.F.T. of approximately 942 transactions per month

an average of 8 night deposits per month

daily Visa, MasterCard, American Express and Debit Card deposits

an average of 24 electronic deposits per month

an average of 6 direct deposits of Ministry funding monthly

average monthly account ending balance 6.2 million dollars
Relevant data applicable to branch bank accounts:

5 to 10 deposits each per month

daily Visa, Mastercard, American Express & Debit Card deposits

Average monthly account ending balance 0.5 million dollars
RFP BANKING SERVICES
Banking Activity Services and Fees
Activity
Cheque Reconciliation
Account Transfers
Average Monthly
Activity
680.0
3.0
Balance Reporting:
Additional Accounts
(General plus additonal sites)
Visa Acounts
6.0
12.0
Account Activity:
Electronic Dep/Cred
(moneris stmt)
133.0
Regular Deposits
20.0
Electronic Debits
24.0
NSF
2.0
Other Cheques written
(Cheques on Petty Cash accounts)
2.0
Advices with Image
1.7
Account Images
0.3
PAP (Benefits):
Files
Pymts
1.0
107.0
PAD (Payroll):
Files
Pymts
3.8
942.0
Stop Payments
1.0
E-Statement access
7.0
Balance Confirmation
(required once/year on each account)
Fee
RFP BANKING SERVICES
2. Investment information
Currently 3.9 million dollars is invested in various types of investments.