GM 04-324
SCOPE OF WORK
Attachment A
Page 1
MINIMUM QUALIFICATIONS:
To be considered for selection, proposing banks must have at least the following
qualifications:
a)
b)
c)
d)
e)
f)
g)
h)
Be a State chartered financial institution and have access to the services of the
Federal Reserve System.
Be a full service bank in good standing among other comparable banks.
Be a qualified depository for public funds.
Be capable of providing the services sought by the District.
Have an established full service branch within the City of Oakland.
Have experience in providing banking services for other large organizations,
preferably to other public agencies.
Be sufficiently capitalized to accommodate our cash/investment management
needs.
Agree to assign experience and dedicated staff who are committed and capable
of servicing our accounts and business needs.
TRANSMITTAL LETTER
The letter should briefly address the bank's willingness and commitment, if selected, to
provide the services, and why the bank believes it should be selected.
BANK AND STAFF PROFILE
a)
Provide a corporate overview of your bank, and present the bank's Community
Reinvestment Act programs. Identify the nearest full service branch that can
assist us with our immediate banking needs. The bank must have a full service
branch in the City of Oakland.
b)
Describe the Bank's experience in providing services to the public sector.
Include exclusive resources dedicated for the public sector. Provide three (3)
references most comparable to our size and financial needs that we may
contact. Include a brief description of the services provided and how long such
services have been provided and a contact person and telephone number for
each client described.
Attachment A
Page 2
c)
Describe the team that will be assigned to service our relationship. Describe
individual roles, responsibility and briefly detailing credentials and related
banking experience.
d)
Include a statement to confirm your bank's compliance to our minimum
qualifications. Also list any exceptions to required services.
e)
Provide a summary of the bank's disaster preparedness plan and how it would
ensure the integrity of ongoing District operations.
Attachment A
Page 3
ACCOUNT DESCRIPTION:
1.
Concentration Account
a)
b)
c)
2.
Workers' Compensation Account (Zero Balance Account)
a)
b)
3.
Average monthly clearings of $8,200,000
Average monthly clearings of 1,200 checks
Payroll Account (Zero Balance Account)
a)
b)
c)
5.
Average monthly clearings of $780,000
Average monthly clearings of 1,800 checks
Controlled Disbursement Account (Zero Balance Account)
a)
b)
4.
Average monthly ledger balance of $1,000,000
Average monthly collected balance of $100,000
Average daily deposits of currency/coin $80,000
Average monthly clearings of $7,000,000
Average monthly clearings of 5,300 checks
Size and frequency of Payroll:
weekly checks
weekly direct deposit
$650,000
$600,000
1,300 checks
950 items
semi-monthly checks
semi-monthly direct dep.
$110,000
$530,000
60 checks
280 items
Retiree Payroll Account (Zero Balance Account)
a)
b)
c)
Average monthly clearings of $1,100,000
Average monthly clearings of 140 checks
Size and frequency of Payroll:
monthly checks
monthly direct deposit
$110,000
$950,000
140 checks
960 items
Attachment A
Page 4
6.
Money Market Account (Interest Bearing)
a)
b)
c)
Average monthly balance of $3,000
Average monthly deposit of 1
Average monthly check clearing of 1
The concentration account is used for all deposits, investment, disbursement and
money transfer activities. The Workers' Compensation, Payroll, Retiree Payroll, and
Controlled Disbursement Accounts are zero balance accounts to the concentration
account. The money market account is used for short-term holding of excess funds.
Attachment A
Page 5
REQUIRED SERVICES:
Deposit Processing: Describe how the bank would accommodate the volume of
deposits associated with our account. Indicate deposit options, including cash vault
centers. Please indicate the cutoff time for local branch over-the-counter deposits, in
order to receive same day credit.
Coin deposits are reported by deposit slip, while currency deposits will be rolled and
bundled by denomination. Both will be delivered by our armored car service.
The bank should have a centralized cash vault operation that can accommodate the
security, deposit volume, and change order demands associated with our accounts.
Provide the address of the cash vault and the cut-off times for armored car delivery, in
order to receive same day credit of currency and checks. Please provide a list of the
armored car service providers that utilize your cash vault center.
Deposit Returned Items: All returned items are to be automatically re-cleared twice
(2) by the bank without notification to the District. Items which do not clear the second
time are to be forwarded to the District's Treasury Department within three (3) working
days and the respective depository account debited in the amount of the face value of
the check. In addition, deposit items returned that are over $100.00 must be reported,
same day by fax or telephone, to the District's Treasury Department.
Bank Charges: Bank analysis charges should be charged monthly against the
concentration account on a pre-determined schedule.
Account Reconcilement: The District currently has the workers' compensation,
payroll, retiree payroll, and controlled disbursement accounts on partial reconcilement
service. The bank provides a magnetic tape of check clearings sorted in check number
sequence and includes check number, amount, and date cleared. In addition the bank
provides a hard copy report of this information by the 10th of the following month.
Please describe your institution account reconcilement services.
Account Analysis: Monthly account analysis reports for each account shall include a
monthly summary for all accounts including the following information: average daily
cash balances, average daily float, average daily collect balances, earnings allowance,
overdraft charges, account activity, transaction volume, and unit and extended charges
for all activity.
Attachment A
Page 6
Bank Statements: Monthly bank statements including all canceled checks for each
account will be mailed or delivered to the District within five (5) business days from the
end of the month. The bank cutoff date will be the month-end unless otherwise
specified. The statement should include: a listing of checks along with the date the
check cleared and the amount; amounts and dates of all deposits; and amounts and
dates of all other account transactions such as electronic transfers, bank charges, bank
credits, etc.
The statement should also include a summary of beginning cash balances,
deposits/credits, checks/debits, and ending cash balances for the period.
FDIC Charges and Float: Provide information on applicable FDIC charges. Include
schedule of the bank's availability schedule for float on check deposits. Since many of
the District's deposits are from Local, State, and Federal sources, present any float
advantages by converting our relationship to your bank.
Electronic Money Transfers: Describe the bank's incoming and outgoing electronic
money transfer services. Include safeguards and security measures offered by your
service. The bank should also provide a money transfer service that allows the District
to initiate wire transfers with the use of a personal computer.
Incoming Electronic Transfers: Ability to accept incoming electronic transfers from
various entities including, the U.S. Treasury for various Federal grant programs.
Guarantee immediate (same day) credit on all wire transfers received.
Debit/Credit Information: All debit and credit information over $100.00 must be faxed
to the District's Treasury Department on the same day. In addition, all debit and credit
information must be received by the District within three (3) working days following the
date the transaction occurred.
Change/Currency Order Services: Describe the bank's procedures for requesting
change/currency orders.
Balance Reporting: The bank must have the capability to offer an electronic
communication/file or web based solution to allow us to access current and previous
day detailed transactions and balances on all accounts. We must be able to access
this information no later than 7:00 a.m. Pacific Standard Time. Information required on
a daily basis includes the ledger, collected and available balances and total debit and
credit information detail for the previous day's activity. Describe the balance reporting
system offered by the bank and it’s features.
Attachment A
Page 7
Stop Payments: The District is currently using an "online" stop payment service for
checks drawn on the workers' compensation, payroll, retiree payroll, and controlled
disbursement accounts. We utilize a personal computer for access to the stop payment
service. Describe the stop payment service offered by your bank.
Direct Deposit: The bank must have the capability to accommodate electronic
payment and deposit services. We currently utilize direct deposit services for our
payroll and retiree payroll account. Describe the bank's electronic payment and direct
deposit services.
Payroll Tax Processing: Describe the services available from the bank to
accommodate the District's payment and reporting of payroll taxes.
Credit Card Processing: The bank must be able to provide an electronic system
which will accommodate credit card authorizations. Describe the electronic system
available for processing credit card transactions including reporting capabilities. Please
include a list of credit card providers that may be accepted with this system.
Controlled Disbursement: The District utilizes a controlled disbursement account for
accounts payable checks. Please describe the controlled disbursement program
offered by the bank. Please include the name and location of the controlled
disbursement bank.
Collected Balances and Earnings Allowance: Describe the bank's calculation of
collected balances, calculation of charges for funds advanced. Also describe the
methodology that would be used to give credit to the District for bank balances.
Daylight Overdraft Protection: Describe any issues, concerns and charges
associated with the use of a daylight overdraft facility.
Pricing Terms and Conditions: Include in this section, the bank's proposed terms of
contract, and method in which pricing adjustments will be calculated.
Pricing Schedule: Provide in this section, using our pro-forma (Attachment B), the
pricing for services proposed by the bank.
ACH Services: Describe the bank's ACH debit and credit services. Include safeguards
and security measures offered by your service.
Imaging Services: Describe the bank’s imaging features. If you do not currently offer
imaging services, do you plan to do so within the next year?
Attachment A
Page 8
Customer Service: Describe how inquiries and technical support issues will be
handled. Describe your backup procedures for times when the system is unavailable or
during special emergencies.
Investment Services: The District currently utilizes repurchase agreements held in the
District's name that are 102% collateralized by U.S. Treasury securities only.
Repurchase agreement investments will require a Master Repurchase Agreement.
Repurchase agreement transactions will be awarded by competitive bid, in accordance
with the District's Investment Policy. Describe the investment services offered by your
bank for both overnight and short-term investments.
Conversion Plan: Describe the overall plan (including time lines) your bank would
coordinate to ensure a smooth transition from the current provider. The bank must also
provide on-site training to our personnel for the operation and use of the bank's
services and automated systems for all areas of service.
OPTIONAL SERVICES:
Account Reconcilement: Describe the services available that would assist us with
fraud prevention on check clearings, such as positive pay. Include electronic
transmission capabilities either to or from the District's network system.
Overnight Sweep Account Facility: Describe the overnight sweep account offered by
the Bank. Also include other overnight investment options available to maximize our
earnings potential.
Check Storage: Describe what services are available for check storage (on microfilm
or media) of the District's cancelled checks, including the availability for the District to
get photocopies of checks.
Payroll Pay Card: Describe any services or systems which might be available for the
District to pay employees electronically with a pay card.
Service Enhancements: Based upon information presented in our RFP and your
bank's knowledge of the public sector, describe any enhancements, technological or
otherwise, that we should consider to improve operational or cash management
efficiencies.
Services for Employees: Describe any bank services that might be provided to our
employees at a free or reduced fee.
Additional Information: Describe any other information not previously mentioned that
the bank believes should be given consideration.
Attachment A
Page 9
CUSTODY AND INVESTMENT SAFEKEEPING SERVICES:
The custodial account for the District is presently held by a third-party safekeeping
institution. The ability to provide custodial service is not a requirement for bidding on
the banking services contained in this RFP.
The District currently maintains an investment portfolio of $40-50 million. Governed
primarily by Sections 53601 and 53635 of the California Government Code, in
accordance with the District's Investment Policy, the District could maintain holdings in
numerous securities including government securities and agencies, negotiable
certificates of deposit, commercial paper, bankers acceptances, and local agencies
investment funds. A listing of the District's Investment Policy is provided for your
reference as Attachment (C), respectively.
The custodial agent in charge of the District's investment securities, shall maintain
appropriate control of the securities through its own independent safekeeping
department. All proposals should identify where safekeeping facilities will be located
and the offices to be used as correspondent. Proposals should clearly specify services
to be performed.
CUSTODIAL SERVICE REQUIREMENTS:
a)
Institution must be a member of the Federal Reserve Bank and be a state or
federally chartered commercial bank having insurance of accounts through
the appropriate federal insuring agency of the United States.
b)
Safekeep and clear securities as agent for the District on a "Delivery versus
Payment" basis. Upon implementation of the services, securities owned by the
District will be delivered into safekeeping on a free delivery basis.
c)
Provide confirmation documentation and "online" information to the District on a
daily basis, identifying asset description, purchases, sale, maturity, call or
transfer date, accrued interest, total cost, par value, and collateral value held.
d)
Provide a monthly statement of assets, cash receipts and disbursements,
detailing each transaction during the month and describing each asset
completely. Monthly statements must be received no later than five (5)
business days following month's end.
Attachment A
Page 10
e)
Maintain all District assets in the District's name in the bank's vault, the bank's
account at the Federal Reserve, or a correspondent depository acceptable to the
District.
f)
Promptly notify the District's Treasury Department no later than 11:00 a.m.
Pacific Standard Time of any failure to deliver or failure to receive
securities of funds in connection with any transaction. State your policy
regarding the rejection of a purchase or sale of a security without first
notifying the District's Treasury Department.
g)
Collect and receive interest income, maturity and sale proceeds from the
securities held by the bank in safekeeping.
h)
Wire transfer and receive funds by wire in accordance with instructions from the
District's authorized staff.
i)
The District shall have the right to examine and audit securities, cash and
records held by the bank for the District either directly or through its
auditors during the bank's normal business hours, without notice.
j)
Provide bank cutoff times for security transfers and wire transfers.
Respondents to the custodial services must provide a statement of the bank's
experience and capability to provide security safekeeping, clearance and reporting
services similar in nature and activity volume to those required by the District. Included
in this statement should be: (1) listing of personnel responsible for the custodial account
(2) the technical resources to be used by the bank (3) and the approximate number of
clients whose safekeeping, clearance, and reporting services are comparable to or
greater in size than the District's accounts. The statement must be signed by an officer
of the bank authorized to bind the bank to all commitments made in the proposal.
Attachment A
Page 11
EXHIBITS TO BE INCLUDED IN PROPOSAL:
Authorization to Contract: Provide either an excerpt from your Corporate Resolution,
Certificate of Secretary, or correspondence from the Chief Executive Officer or
chairperson attesting that the individual signing the proposal has the authority to make
binding representations on behalf of the bank.
Contract Samples: Include contract or agreement samples for banking services that is
specific to the services represented in this RFP.
Financial Statements and Ratings: Provide the most recent audited financial
statements, or annual report for the bank. Also include your most current Standard &
Poors and Moody's credit ratings.
Account Analysis: Provide a sample of your bank's account analysis and a user guide
for the account analysis.
Bank Statements: Provide a sample of your bank's account statement and a user
guide to the information.
On line System: Provide a statement specifying the type of computer, modem, and
software and any other equipment necessary to access the online systems available
through your institution.