Request for Proposal
(RFP)
Primary
Banking Services
(Contract)
City of York
Pennsylvania
101 South George Street
PO BOX 509
York, PA 17405
C. Kim Bracey
Mayor
Karin Krebs, Treasurer
Robert Lambert, Controller
Michael J. O’Rourke, Esq.
Cherie Alwine
Business Administrator
D.B.A., Finance
1
Issued
March 7, 2012
Request for Proposal:
Primary Banking Services
City of York, Pennsylvania
The City of York, Pennsylvania invites interested banking institutions, with locations within the
City of York, to submit proposals to provide Primary Banking Services to the City of York
consistent with the specifications described herein.
This Request for Proposal (RFP) is intended to provide qualified and interested banking
institutions with sufficient information to guide them through the development of their proposals
to submit for consideration by the City of York for primary banking services.
Terms used and conditions imposed in this RFP are not intended to imply or denote a particular
vendor nor are they to be construed as restrictive in any way.
While the City’s preference is to select one institution to provide all primary banking services,
the overriding goal is to select that proposal for each service that provides the best combination
of fees, service, and interest. The City may, at its sole discretion, select different institutions to
provide different services. The City also reserves the right to reject any and all proposals.
Remainder of Page Intentionally Left Blank
2
SECTION I – INTRODUCTION
The City of York
The City of York is a City of the 3rd Class organized under Pennsylvania’s 3rd Class City
Optional Charter Law. The City is 5.2 square miles and, according to the 2010 Census, is
inhabited by 43,763 residents.
The City is governed by a Mayor / Council Form of government with the Mayor being elected to
four year terms and the Council Members being elected at large to four year staggered terms.
The Government includes an elected Treasurer and Controller also elected to four year terms. A
five member cabinet is appointed by the Mayor, with the consent of City Council, and includes
the Business Administrator, the Director of Economic and Community Development, the
Director of Public Works, the Police Chief and the Chief of Fire and Rescue Services.
The City employs about 365 full time and about 65 part time and seasonal employees. The
workforce consists of five unions: The Fraternal Order of Police (FOP); the International
Association of Fire Fighters (IAFF); the York Public Employees Association (YPEA); the
Teamsters Union (TEAM) and the International Brotherhood of Electrical Workers (IBEW).
The elected, appointed, professional, supervisory and managerial employees are not represented
by a labor union.
The City provides a broad array of public services including police, a paid fire department,
public works, refuse collection, sanitary sewer, housing services, and various regulatory
activities. The City receives revenue from both the state and federal government, as well as
revenue from taxes, fees, and penalties.
Current Accounts and Estimated Activity
For the purposes of this RFP the accounts included in the proposal process are for the City only
unless otherwise noted. The accounts maintained by the City that are included in this proposal
are listed below along with the annual activity from 2011. However, the City does not guaranty
the same level of annual activity nor does it warrant to maintain any specific or minimum
periodic balances.
The City’s total 2012 budget in revenue/expense is $96,394,090/ $92,966,086 managed in
twenty-six funds. The largest of the funds is the General Fund at $43,155,717/$41,722,515,
followed by the Sewer Fund at $13,179,458/$10,287,590, the Internal Services Fund at
$12,286,701/$12,126,518, the Intermunicipal Sewer Fund at $7,710,102/$7,643,656 and the
Capital Fund at $6,163,358/$6,071,629. Detailed City Budgets for the years 2005-2012 are
available for review at http://yorkcity.org/finances as are Audited Financial Statements for 20032010, along with other financial information of the City.
3
Our current accounts and approximate 2011 activity are as follows:

Control Account – All monies collected are deposited into the Control Account and
transferred to specific accounts for the City, County and School District. Credit card
payments are directly deposited into the Control Account to be transferred to specific
City accounts. 2011 deposits $72,905,802.15.

Investment Account – This is the main City account. Monies are transferred into the
Investment Account on a daily basis from the Control Account. Also deposited into this
account, are ACH and wire transfers from vendors. ACH transfers and wire transfers are
initiated from this account. Most wire transfers are large (bond payments). 2011
deposits $81,389,101.37.

Accounts Payable – Transfers from other City accounts to cover the accounts payable
checks printed twice a week. This account is also used to process ACH transfers to
vendors. 2011 transfers from other City accounts $20,882,839.40.

Payroll – Transfers from other City accounts to cover City payroll, 26 pays per year.
2011 transfers from other City accounts $20,633,716.12

Community Development Block Grant / HOME / HPRP – These accounts are funded
through ACH transfers from Housing and Urban Development for checks issued.

CDBG Rental Rehab / PHFA Rental Rehab / High Risk Loan – These accounts are
funded through ACH transfers from CCO Mortgage consisting of monthly payments
from homeowners for improvements made to their homes using CDBG funding.

Liquid Fuels – This account is funded through ACH transfers from the State and from
monies collected by the City that are first deposited into the Control Account and then
transferred into the Liquid Fuels account.

Sewer Revenue – Transfers from Control Account for payments from municipalities to
cover usage charges

Wastewater Treatment Plant Operating/Reserve – Transfers from the Control
Account for payments from municipalities for the operation of the Wastewater Treatment
Plant and transfers to Accounts Payable and Payroll Accounts.

Self-Insured Worker’s Compensation and PMA Worker’s Compensation – These
accounts are funded by transfers from the Investment Account daily to cover worker’s
compensation payments that are automatically debited by PMA, our worker’s
compensation third party administrator.

Health Plan – This account is funded by transfers from the Investment Account on a
weekly basis to cover health claims from Capital Blue Cross and is automatically debited
by Capital Blue Cross.
4

Prescription Drug Plan – This account is funded by transfers from the Investment
Account on a weekly basis to cover prescription drug costs and is automatically debited
by Caremark.

Officers and Employees Pension / Police Pension / Firefighters Pension – The three
pension accounts are funded by wire transfers from State Street, the pension custodial, to
cover pension payroll checks. Checks for Officers and Employees and Police Pensions
are issued the 15th and the 30th of the month and Firefighters Pension checks are issued
the 19th of the month.

Ice Rink Revenue – All monies collected by the Ice Rink and all credit card payments
are deposited into this account. Weekly ACH transfers are processed from this account.

Returned Checks – Checks deposited into the Control Account that are returned by the
bank are charged back to this account instead of the Control Account.

AFLAC Flex Spending and HRA Pay Flex – These accounts are funded by transfers
from the Investment Account, as needed, to cover employee reimbursements and is
automatically debited by PayFlex.

Section 108 Rebuild York – This account is used for specific projects and transfers to
Accounts Payable to cover checks. This account should be closed sometime during 2012

Pending Forfeiture, County Escrow and Fire Escrow – These accounts are handled by
the Treasurer’s Office.
The provisions of the proposal will also be applicable for any new accounts opened during the
term of this agreement.
The objective of this request for proposal is to identify and select the banking institution that can
offer and provide the highest quality services at the lowest cost to our organization and the
taxpayers of the City. As you will see when you review this proposal, we are interested in
obtaining the best mix of services to meet our specific banking needs. The City is soliciting
proposals from qualified banking institutions with a branch in the City to provide the various
core banking services, including: checking accounts; saving accounts; account reconciliation
services; account analysis reports; wire transfers; bulk coin counting service; credit card
processing services; investment and custodial services; on-line banking services; and special
services/programs for City employees and citizens.
An important aspect of this proposal is to obtain competitive market rates of interest on all funds
held in our accounts with limited associated risks. The City is both authorized and limited to the
investment of excess funds by the Pennsylvania Code. Also, the code allows the City to
authorize the collateralization of our funds to be pooled with the collateral of other public bodies
in accordance with Act 72 of 1971 and the United States Circular No. 92. We expect that all
funds in excess of the FDIC insurance level will be collaterally secured in accordance with
5
Act 72. The City expects to receive a monthly report from the selected institution detailing the
securities that make up the collateral for Act 72 purposes.
The goal of this request for proposal is to select the banking institution that can: (1) best
consolidate the bulk of City banking services in order to take advantage of economies of scale in
cash management and to reduce aggregate costs; (2) maximize invested funds by utilizing state
of the art cash management techniques; and (3) provide for the safe, timely, and convenient
collection and deposit of City funds.
Schedule of Events
The City intends to progress in this procurement in a series of orderly steps. The schedule that
follows has been developed to provide adequate time for vendors to prepare definitive proposals
and to permit the City time to consider full various factors that may affect its decision. The
following dates will be observed:










Timeline Item
Issue Request for Proposal
Last Day for Vendor Questions
City’s Response to All Questions
Submission of Proposals
Proposal Review
Selection of Finalists
Finalists Interviews (if necessary)
Selection by Temporary Investment Committee
Contract Signing
Commence New Banking Service
Date
March 7, 2012
March 14, 2012
March 20, 2012
March 28, 2012
Week of April 2, 2012
April 10, 2012
Week of April 16, 2012
April 25, 2012
Week of April 30, 2012
June 1, 2012
Length of Contract
The City is interested in establishing a stable relationship with the successful organization. To
do this, we would like to develop a contract with the term of three (3) consecutive years with an
option to renew for another three (3) one year periods upon mutual agreement. After the initial
three (3) years, fees can be renegotiated should this be deemed necessary.
Either party may terminate the contract with sixty (60) days written notice. Should the bank
prematurely terminate the contract, all of the City’s costs to establish a new banking agreement
will be the responsibility of the terminating bank.
Also, the City can terminate the agreement immediately should information be received relating
to the dwindling creditworthiness of the bank or adverse changes to the collateral portfolio
securing the City’s funds held by the bank.
6
Selection Criteria
Any proposal determined to be non-responsive to any of the minimum evaluation criteria of this
RFP may be disqualified. The City may determine that the non-responsiveness is not substantial
and can be clarified. In such cases, the City may allow the vendor to make minor corrections and
apply the changes in the evaluation.
The respondent must: be a fully qualified public depository; meet the minimum requirements set
forth in this RFP; provide the requested financial information to determine its financial strength;
have the ability to supply an appropriate level of service for the scope of services described
herein; and have at least one branch within the City of York .
The City’s review committee will evaluate all proposals. Proposals will be evaluated using the
City criteria outlined below:





Creditworthiness
Investment of Funds
Cost of Services
Ability to Provide Services Efficiently and Effectively
Funds Deposited in Accordance with all Federal, State, and Local Laws
A vendor’s proposal will be rejected if the vendor fails to:







Adhere to one or more of the provisions established in the RFP.
Submit its proposal in the format specified.
Supply the minimum information requested in the RFP.
Meet most of the application criteria as specified.
Submit its proposal to the required address on or before the deadline.
Submit a cost proposal.
Provide truthful and accurate information in its proposal.
Vendors will be required to clarify proposals in writing or demonstrate its applications with the
City at any time during the procurement process.
Proposals may be withdrawn by written notice received by the City’s Business Administrator
any time prior to the time specified for receipt of proposals.
Prior to final selection, vendors may be required to submit additional information that the City
may deem necessary to determine the vendor’s qualifications.
Following the procedures previously described, the City will make a decision regarding selection
of the vendor with whom it wishes to enter into contract negotiations. This may or may not be
the vendor providing the lowest cost proposal. The City reserves the right to accept the
proposals for all types of services from the same financial institution or split the services among
different financial institutions if it’s in the best interest of the City to do so.
7
The successful vendor will be considered as the prime contractor and will be required to assume
total responsibility for primary banking services as described in this RFP. The City will consider
the successful vendor to be the sole point of contact with regard to all contractual matters,
including performance or service unless otherwise stated.
By submission of an RFP, the vendor agrees and acknowledges that the organization and all its
officers and representatives are entirely independent of all operations of the City of York, that
they have no oversight or influence of the City’s financial operations, and that the organization is
currently conducting no business or other transactions with the City or its officers and
representatives that may conflict with the services described in this submission.
Terms and Conditions
Be aware that this is not a competitive bid situation and, therefore, is not required to be
conducted in accordance with the laws governing competitive bidding requirements.
The terms and conditions of this proposal process are as follows:
1. Reserve the right to reject any or all proposals/bids received in response to the RFP;
2. Waive any irregularities or informalities and select the best proposal/bid in the opinion of
the City;
3. May render the bid invalid due to unauthorized modifications of bid specification forms
or terms.
The Contract term will be three (3) years, starting on June 1, 2012, with an option to renew for
another three (3) one year periods at the discretion of the City. Based on the results of the
proposals, a decision will be made by the temporary investment committee.
Remainder of Page Intentionally Left Blank
8
SECTION II – SCOPE OF BANKING SERVICES
This section describes the services the City intends to use as a bank customer and the services,
which are currently being provided.
The objective of requesting services is to more effectively and efficiently operate our cash
management system. We use services only when we feel there is a true cost/benefit relationship.
Therefore, please keep this in mind as your response is prepared. Should you determine that
additional services are prudent based on a cost/benefit analysis, please include this in your
response.
The services are organized based on the following categories:




Collection Services
Disbursement Services
Reporting Services
Investment Services
Collection Services
Collection services are those services related to the acceleration of the availability of funds for
investment or disbursement.

ACH and Wire Transfers – The City receives funding from the Commonwealth of
Pennsylvania, the United States of America, and other parties through ACH and wire
transfers. Also, we use wire transfers to move funds between financial institutions for
investment purposes. The City intends to consider these incoming wire transfers as
“available for investment” either by the City or the bank through the concentration
account investment vehicle.
If necessary, adjustments will be made for any lost interest or charges resulting from a
“fail” to consummate a transaction.

Over the Counter Deposits – The City collects various revenues and fees for which cash
and checks are received for payment. A City Treasurer’s Office employee prepares
deposits on a daily basis.
Again, the check-clearing time is vital in an effective cash management system.
Uncollected funds are not available for immediate investment. With the understanding
that most checks received by the City are drawn on local banks, please provide us with
your check-clearing method and policy to identify the time it will take for the deposited
funds to become collected and available for investment.

Bulk Coin Counting – The City requires bulk coin counting for the collection of parking
meter revenue. There are approximately 1,400 parking meters located in the City
municipal parking lots and parking meters are emptied on daily rotating basis. Currently,
9
the coins are delivered to the City’s current bank by Dunbar Armored. Please provide us
with an explanation of your bulk coin counting services.
Disbursement Services
Disbursement services are those relating to the disbursement of funds from the bank.

Wire Transfers – Wire transfers are initiated by the City to transfer funds from our bank
accounts to other financial institutions for investment purposes. Also, we make various
payments with wire transfers.
Currently, the City processes wire transfers through the bank’s internet website.
transfers can be submitted until 5:00 p.m. for processing the same day.
Wire
If necessary, adjustments will be made for any lost interest or charges resulting from the
bank’s failure to consummate an investment transaction.
The City requires the ability to send and receive wire transfers from all of the accounts
listed in Section I. Please supply a sample wire transfer agreement, including daily
deadlines for receiving and sending wire transfers.

Automatic Clearing House (ACH) Payments – The City offers direct deposit payroll to
all employees. Currently, approximately 80% of our employees participate in the direct
deposit service. A standard NACHA file will be submitted to the City’s financial
institution two (2) business days prior to the transfer date. The City expects that the bank
will not deduct funds from the Payroll account until the actual transfer date. The City
prefers to be notified via fax or e-mail of any Notifications of Change (NOC’s) or returns
and will prenote any new or revised payroll instructions.
The City currently uploads encrypted standard NACHA files and prefers to utilize a
similar process going forward.
Please be sure to provide a detailed description of file transfer protocols available
including file transmission deadlines. Any costs for new file transmission software or
hardware will be covered by the bank.

Controlled Disbursement Account – The City does not presently utilize services
typically offered through controlled disbursement accounts. However, should this seem
useful for your cash management system, thus increasing our interest earnings, we will
explore this possibility. Please include this service as a possible additional service to be
considered in your response.

Account Reconcilement Service – The City requires a system that allows us to obtain an
electronic listing of cleared checks from the bank. The information must include check
number, amount, and date paid. The City will need copies of the front and back of all
cancelled checks in a digital format.
10
The City is interested in exploring full reconciliation and positive pay services. Please be
sure to include details about these services in your response.
Monthly Reporting
The financial institution will, on a monthly basis, provide the City with a detailed statement of
activity listing each transaction and ending daily bank balance. Also, a listing of the cleared
checks in numerical order must be provided. This listing should include the check number,
check clearing amount, and the date the check was cleared. Also, this report must include a total
of cleared checks for the month. The City should receive these reports by the seventh (7th)
business day of the following month.
The City requires a detailed account analysis statement that includes each account listed in
Section I of this RFP. This analysis should include all account charges for the period. Please
include sample analysis statements and the frequency with which they are available. Also,
please supply sample copies of bank statements and the frequency with which they are available.
In addition, please indicate the frequency in which cancelled checks, debit/credit memos and
deposit/transfer tickets are available.
On-Line Banking Services / Electronic Reporting
The City requires the use of an online banking system which offers the following online
capabilities:




Previous and current day balance and transaction reporting
Transaction initiation of repetitive and non-repetitive wires and ACH transactions
Initiation of transfers between City accounts
Submission of stop payments
It would also be helpful if this same platform could provide images of checks paid on the City’s
accounts and could serve as the platform for the provision of full reconciliation and positive pay
services, if utilized by the City.
The City would prefer that these services be offered via a web based product. It is important that
these services by available via a web based product after normal business hours.
Investment Services
The effective and efficient cash management system accelerates receipts of funds, delays
disbursement of funds, and minimizes idle cash balances. Each of these objectives has been
discussed in detail previously within this section of the Request for Banking Services. However,
a truly exceptional system should be measured on the full investment of cash at market rates with
very little or no risk associated with the program.
11
Since banks have so many differing investment products, please provide us with your detailed
suggestions relating to the investment vehicle you will provide us. These suggestions must
include the following information:
1. The method used to fully collateralize our account balance in excess of FDIC. The City
is extremely conservative in its approach to collateralization. The City requires that:
a. the collateral will be marked to market at least once per month
b. the market value of the collateral will be at least equal to 102% of the amount of the
applicable public deposits (in excess of the FDIC insurance limits)
c. the collateral will consist solely of either full faith and credit obligations of the United
States Government or fixed rate obligations of agencies or instrumentalities of the
United States Government
d. the collateral will be held by the custodian in a separately designated Act 72 pledge
account (the “Act 72 Account”)
e. in accordance with Section 6 of Act 72, the bank will provide a monthly report to the
depositor regarding the aggregate applicable public deposits being secured by the
collateral, a listing of the collateral, and the market value of the collateral (the bank
will determine the value of collateral in good faith based on recognized valuation
sources)
f. an irrevocable letter of credit (“LOC”) issued by a Federal Home Loan Bank in an
amount equal to or greater than the total amount of public deposits being secured,
provided that the Federal Home Loan Bank (“FHL Bank”) issuing the irrevocable
letter of credit maintains a credit rating of at least the second highest rating level from
a nationally recognized rating agency
2. Explain the calculation of the daily interest rate including the specific interest index.
3. Explain the calculation of interest earned on a monthly basis (i.e. 360-365 day basis,
average daily balance, average monthly interest rate, calculated daily based on daily rate
and daily balance).
4. Provide description of the amount of cash balance on which the interest calculation is
based such as collected funds and reserve amounts.
5. Any additional information you deem necessary for the City to fully understand your
suggested investment vehicle.
Please understand the City is extremely conservative and adverse to risk. However, a welladministered cash management system can provide market rates of return without exposure to
risks.
12
Third Party Service Providers
Please describe any pertinent information on the bank’s third party service providers and if the
bank has any plans to make all services in-house. We are interested in understanding if the bank
uses a third party service provider for any of the following services:




Wire room
Web reporting
Lockbox department
Credit Card Services
Optional Services
The City is interested in instituting and/or continuing the following services and requests that
your bank provide information concerning availability and cost.

City Employee Services – The City understands that banks often provide special account
programs or services to municipal government employees when combined with direct
deposit of payroll. Please detail any special services that your bank would provide to
City employees.

Community Programs or Services – The City welcomes any programs or services that
taxpayers may directly or indirectly benefit from. Please describe any program or service
that your bank would offer to the citizens of the City and the community.

Banking Services for the Treasurer’s Office of the City of York – The Treasurer of
York City is an elected official and operates independently of the Finance Department of
the City. The Treasurer’s Office is responsible for the collection of real estate taxes for
the City, the School District of the City of York, and York County,
Treasurer’s Control Account – This account serves as the City Treasurer’s primary
account for the collection and disbursement of all revenue collected. The account is used
for deposits, ACHs, and internal transfers to other City accounts.
Remainder of Page Intentionally Left Blank
13
SECTION III – BANK CREDIT EVALUATION
Although properly structured collateral offers the City very good insurance against financial
institution credit problems, we would be remiss in not evaluating the prospective bank’s
creditworthiness. Although this will not be the primary evaluating criteria, it will be used to
include a financial institution in our proposal process.
The City will utilize the standard rating services to evaluate your financial institution. Should
you be rated unfavorably by this rating system, we will notify you of this fact and allow you to
respond accordingly.
Each financial institution will also submit the following information: independent audited
financial statements for the last three (3) fiscal years, including Auditor’s Opinion; balance sheet;
income statement; statement of changes in financial position; and notes to the financial
statement.
Each financial institution shall submit the following ratios based on the most recent Uniform
Bank Performance Report or equivalent statement: primary capital to total assets; equity growth
to asset growth; loan loss reserves to total loans; and percent of non-performing loans.
Each financial institution will disclose whether it has been under the management supervision of
any federal or state regulatory agency.
Each financial institution will also disclose whether it has been acquired by another bank since
January 1, 2012 or is currently in negotiations to be acquired or to purchase another financial
institution.
Each financial institution shall provide a list of the name, address, contact name, and telephone
number of at least five (5) references located in the Commonwealth of Pennsylvania that have
engaged the bank for municipal banking activity.
Each financial institution will provide the address and operating hours of the bank’s branch with
which the City would most regularly conduct business, and the address of all branches located in
York, Lancaster, Adams and Dauphin Counties. Financial institutions will also provide the
names and the professional backgrounds of the following personnel that would be expected to
deal with the City on a regular basis: the branch manager, a cash management representative, a
regional vice president and/or municipal services representative.
14
SECTION IV – BANKING SERVICE FEES
Since banking services can be paid for by one of the two methods, we are requesting that your
proposal response include both the compensating balance and direct charge methods.
The City currently pays for banking services through the use of a compensating balance. Please
describe the method used to determine the average collected or available balance and the method
used to calculate the earnings allowance on the compensated balance.
Attachment B of this document includes a listing of the number of transactions used during a
normal month for each banking service. Please provide us with the per item cost and the
monthly costs for each service. Also, please provide us with your compensated balance
calculations and your policies relating to the evaluation of this established balance.
Remainder of Page Intentionally Left Blank
15
SECTION V – ADDITIONAL INFORMATION
Execution of Contract
1. Upon the acceptance of a proposal, the City will prepare and submit a contract to the
successful vendor for signing. In the event that the successful vendor fails, neglects or
refuses to execute the contract within fourteen (14) days after the receipt of said contract,
the City may at its option terminate and cancel its action in awarding the contract and the
contract shall become null and void and of no effect.
2. Incorporated by reference into the contract which is to be entered into by the City and the
successful vendor pursuant to this RFP will be:
a. All of the information presented in or with this RFP and the vendor’s response
thereto, and
b. All written communications between the City, its agents and the successful vendor
whose proposal is accepted.
Exemption from Federal Excise and Pennsylvania Sales Tax
The City of York is exempt from Federal Excise Tax and Pennsylvania Sales Tax as a political
subdivision of the Commonwealth of Pennsylvania. Net prices as shown in the cost proposal
shall be exclusive of such taxes.
No Assignment
Assignment by the successful vendor to any third party of any contract based on the RFP or any
money due shall be absolutely prohibited and will not be recognized by the City unless approved
in advance by the City in writing.
Confidentiality
The Commonwealth of Pennsylvania statutes regarding the public right to know applies to the
proposals, except for financial information regarding the vendors, which shall be returned to the
vendors upon request.
Rights to Submitted Material
All proposal, response inquiries, or correspondence relating to or in reference to this RFP, and all
reports, charts, displays, schedules, exhibits and other documentation submitted by vendors shall
become the property of the City when received.
The City retains the right to use any or all ideas presented in any proposal in response to the
RFP, whether amended or not.
16
Statement of Time
Time, when stated as a number of days, shall include Saturdays, Sundays and Legal Holidays.
Non-Discrimination
1. The financial institution shall not discriminate against any qualified employee or
applicant for employment because of race, color, national origin, ancestry, age, sex,
religion, sexual orientation or physical or mental handicap.
2. The financial institution shall be responsible for and agrees to indemnify and hold
harmless the City of York from all loses, damages, expenses, claims, demands, suits and
actions brought by any party against the City of York as a result of the financial
institution’s failure to comply with these provisions.
3. In the event of the financial institution’s non-compliance with the provisions of this
section, the City shall impose such sanctions, as it deems appropriate, including but not
limited to the following:
a. Withholding of payments due to vendor until the vendor complies.
b. Termination or suspension of any contract or agreement pursuant to this RFP.
Remainder of Page Intentionally Left Blank
17
SECTION VI – PROPOSAL INSTRUCTIONS
RFP Questions and Main Contact
Questions should be emailed to Cherie Alwine at calwine@yorkcity.org. All inquiries must be
received no later than March 14, 2012. Questions which have been received will be combined
into one list of questions and responses and sent to all vendors who have received the RFP
document. All questions submitted must reference the specific section and page number(s) of
the RFP. Additionally, the financial institution must identify the name of their company or
organization on the question sheet.
Submission of Proposal
Submissions must be by either of the following two methods:
1. Hardcopies in a sealed package containing six (6) signed copies. A sealed package
containing the original and five (5) copies of the Proposal must be labeled as follows:
(Vendor Name)
Proposal for Banking Services- RFP#
For the City of York, PA
The original and five copies of the proposal must be delivered no later than 3:00 pm on
March 28, 2012:
Alexa Quinn
Office of Business Administration
101 South George Street
P. O. Box 509
York PA, 17405
2. One compact disc in Microsoft Word format in a sealed package with one hard copy of
all required signature pages.
The City of York is not responsible for costs incurred to vendors in to the RFP or the
proposal process as a whole.
Response to Proposal
Please complete Attachment A, B, C, and D and organize your proposal in the following manner:
1. Attachment A: The title page includes the name of the financial institution, contact
person, address, telephone, and fax number, the signature, name and title of the duly
authorized officer presenting the proposal.
18
2. Table of Contents: Include a clear identification of the material by attachment and item
number.
3. Attachment B: Primary banking service estimated monthly activity analysis and cost
proposal and compensating balance and interest calculation section.
4. Attachment C: Provide the information regarding the applicable costs associated with
either one or more of the optional services listed.
5. Attachment D: Please provide answers to all questions appearing in the proposal
question and answer section.
Should additional space be necessary for a complete response, please attach a sheet of paper, and
return accordingly. Attachment A, B, C and D may be provided in electronic (Word and Excel)
format upon your request.
19
ATTACHMENT A
THIS PROPOSAL and
ATTACHMENTS A, B, C, and D
MUST BE RECEIVED BY
THE CITY OF YORK BY
3:00 pm
March 28, 2012
TO THE ATTENTION OF:
Alexa Quinn
Office of Business Administration
City Hall
101 South George Street
P. O. Box 509
York PA 17405
NAME OF BANK:
CONTACT PERSON:
CONTACT’S EMAIL ADDRESS:________________________________________________
STREET ADDRESS:
CITY/STATE/ZIP:
TELEPHONE NUMBER:
FAX NUMBER:
SIGNATURE OF
AUTHORIZED BANKING OFFICER:
PRINT NAME:
TITLE:
20
ATTACHMENT B
ESTIMATED MONTHLY ACTIVITY ANALYSIS AND COST PROPOSAL
Investment Account
SERVICE
Account Maintenance
Monthly Statement
Internal Transfers
Debits
Internal Transfers
Credits
Incoming Wire Transfer
Outgoing Wire Transfer
ACH Maintenance
ACH Credit
ACH Debit
Other Charges-Itemize
AVERAGE
MONTHLY VOLUME
1
1
45
UNIT COST
MONTHLY
TOTAL
UNIT COST
MONTHLY
TOTAL
45
5
3
1
20
10
MONTHLY COST
Control Account
SERVICE
Account Maintenance
Monthly Statement
Internal Transfers
Debits
Deposits
ACH Maintenance
ACH Debit
Credit Card Deposits
Other Charges-Itemize
AVERAGE
MONTHLY VOLUME
1
1
60
100
1
60
170
MONTHLY COST
21
ATTACHMENT B
ESTIMATED MONTHLY ACTIVITY ANALYSIS AND COST PROPOSAL
(Continued)
Firefighters Pension
SERVICE
Account Maintenance
Statement
Incoming Wire
Transfers
ACH Transfers
ACH File Processed
Direct Deposit Items
Included in ACH File
ACH Maintenance
Checks Processing
Other Charges-Itemize
AVERAGE
MONTHLY VOLUME
1
1
1
UNIT COST
MONTHLY
TOTAL
UNIT COST
MONTHLY
TOTAL
2
1
70
1
14
MONTHLY COST
Police Pension
SERVICE
Account Maintenance
Statement
Incoming Wire Transfers
ACH Transfers
ACH File Processed
Direct Deposit Items
Included in ACH Files
ACH Maintenance
Checks Processing
Other Charges-Itemize
AVERAGE
MONTHLY VOLUME
1
1
2
4
2
182
1
47
MONTHLY COST
22
ATTACHMENT B
ESTIMATED MONTHLY ACTIVITY ANALYSIS AND COST PROPOSAL
(Continued)
O & E Pension
SERVICE
Account Maintenance
Statement
Incoming Wire Transfer
ACH Transfers
ACH File Processed
Direct Deposit Items
Included in ACH Files
ACH Maintenance
Checks Processing
Other Charges-Itemize
AVERAGE
MONTHLY VOLUME
1
1
2
6
2
160
UNIT COST
MONTHLY
TOTAL
UNIT COST
MONTHLY
TOTAL
1
35
MONTHLY COST
Accounts Payable Account
SERVICE
Account Maintenance
Statement
Checks Processing
Internal Transfers Credits
Stop Payment
ACH Transfers
ACH Maintenance
Other Charges-Itemize
AVERAGE
MONTHLY VOLUME
1
1
501
26
1
10
1
MONTHLY COST
23
ATTACHMENT B
ESTIMATED MONTHLY ACTIVITY ANALYSIS AND COST PROPOSAL
(Continued)
Payroll Account
SERVICE
Account Maintenance
Statement
Checks Processing
Internal Transfers Credits
Direct Deposit ACH File
Direct Deposits included
in File
ACH transfers
ACH Maintenance
Stop Payment
Other Charges-Itemize
AVERAGE
MONTHLY VOLUME
1
1
225
7
2
1479
UNIT COST
MONTHLY
TOTAL
12
1
1
MONTHLY COST
COMPENSATING BALANCE AND INTEREST CALCULATION SECTION
AVERAGE MONTHLY BALANCE SUMMARY
Average Monthly Ledger Balance (Investment Account)
Average Monthly Float (Investment Account)
Average Monthly Collected Balance (Investment Account)
AMOUNT
$8,501,031
0
$8,501,031
1. Monthly Compensating Balance Requirements
Standard Banking Services (Needed for Claim on Cash Account from Attachment B,
Page 1) _______________________
2. Compensating Balance-Interest Earning Potential on Available Cash (Claim on
Cash Account ONLY)
Please illustrate a monthly interest calculation under the compensating balance method.
In order that all proposals are standardized, please use the assumed available cash balance
of $5,000,000 and the interest rates in effect for March 2012.
Interest Index Being Applied: ______________________________________________
24
Interest Rate Applied to Available Cash: ______________________________________
Projected Monthly Interest Earnings: _________________________________________
3. Direct Charge Method-Interest Earning Potential on Available Cash (Claim on
Cash Account ONLY)
Please show the monthly interest calculation under the scenario that the City will pay for
banking fees through a direct charge.
In order that all proposals are standardized, please use the assumed available cash balance
of $5,000,000 and the interest rates in effect for March 2012.
Interest Index Being Applied: ______________________________________________
Interest Rate Applied to Available Cash: ______________________________________
Projected Monthly Interest Earnings:_________________________________________
25
ATTACHMENT C
OPTIONAL SERVICE COSTS
(Please use the additional blank rows to write in any service and related cost that the City has
not requested, but might be worthy of consideration.)
Optional Service Costs
SERVICE
Controlled
Disbursement Acct.
Full Reconciliation
UNIT COST
SERVICE
Positive Pay Service
UNIT COST
Sweep Account Fee
Credit Card Services
Optional Service Costs: Lock Box
SERVICE
Deposits to Lockbox
ACH File HandlingDirect Transmission
Checks Processed
ACH MonitorTransmission Package
ACH PPD Debits
Deposit Tickets
Account Maintenance
Monthly Statement
Average Ledger Balance
AVERAGE
MONTHLY VOLUME
36
1
3524
1
904
36
1
1
This is a zero balance
account
Other Charges-Itemize
MONTHLY COST
26
UNIT COST
MONTHLY
TOTAL
ATTACHMENT D
PROPOSAL QUESTION AND ANSWER SECTION
Note: This attachment is available to be e-mailed to your banking institution for
completion if requested.
1. Please indicate any deviations from the conditions relating to banking services contained
in Section II – Scope of Banking Services. Are the length and general term of agreement
acceptable?
2. What time of day is the bank cutoff to credit daily deposits?
3. Provide the check clearing method, schedule, and policy to identify the time deposited
items become available for (a) investment, and (b) disbursement to include cash, local,
out of state, and federal deposits.
4. The City currently places all parking meter coins into coin bags and Dunbar Armored
delivers them to a designated bank branch for processing. Please describe the bulk coin
counting services you bank can provide including details of the process once the coins are
brought to the bank branch and the amount of time it will take to get the City’s bank
account credited for the deposit.
5. Supply a sample wire transfer agreement including daily deadlines for receiving and
sending wire transfers.
6. Give a detailed description of the direct deposit process including the initial submission
of the direct deposit files, deadlines and the movement of funds. Please indicate whether
or not the financial institution is able to accept the direct deposit file transmission of
encrypted standard NACHA files.
7. The City currently does not utilize any of the following:
a.
b.
c.
d.
e.
controlled disbursement
full reconciliation
partial reconciliation
positive pay services
sweeping
If any one or all of these services could be beneficial to the City especially by providing
increased interest earnings or lower administrative costs, please furnish specific
information on the service(s) and the associated costs.
8.
Provide the frequency for the following:
a. debit/credit memo availability
b. deposit/transfer ticket availability
c. cancelled check availability
27
d. posting of interest
e. Account analysis statement delivery date
f. Statement delivery date
Please furnish sample copies of an account analysis and bank statement.
9. Describe the bank’s electronic reporting capabilities to include: balance and transaction
inquiry; transaction initiation (both intra-bank and ACH and fed wire system); and stop
payment initiation. Include time of day information is made available and deadlines for
initiation of different transfer types (wires, book transfers, inter-account transfers). Also
include list price for various services discussed if any.
10. Specifically address items (1) through (6) under the Investment Services section of this
RFP (pages 9-10).
11. Please provide a description of the recommended account structure, including the basis
for determining the amounts of funds invested and the method and basis for properly
collateralizing funds.
12. If the bank uses any third party service providers for the wire room, web reporting,
lockbox department or credit card services, please describe any relevant information
regarding the service. Please note if the bank has any plans to make all services in-house.
13. Give a brief overview of lockbox services.
14. Please describe special programs or services that would be offered to City employees
who have bank accounts at your bank and participate in direct deposit of payroll
15. If your bank would provide a service or program that would benefit City residents, please
give details of what could be offered. Include specific examples of anything provided in
the past or present to other municipalities and include your Community Reinvestment Act
rating.
16. Please include copies of your last three (3) years audited financial statements including
Auditor’s Opinion, balance sheet, income statement, statement of changes in financial
position and notes to the financial statement. The successful bank is required to provide
the City with subsequent annual audit reports as they become available.
17. Each bank will submit with its proposal the following statistics based on information
contained in the uniform bank performance reports, or in similar reports for calendar
years 2008, 2009, and 2010 (and 2011 if available), and based upon Federal Reserve
Bank definitions. Please specifically summarize:
a.
b.
c.
d.
Primary capital to total assets
Equity growth less asset growth
Loan loss reserve to total loans
Total relationships or accounts with deposits in amounts over $1,000,000
28
18. As of January 1, 2012, and thereafter, each bidder will disclose whether it was acquired;
did acquire; or will be acquired or acquiring another banking institution (if so, specify the
institution, address, date of acquisition, and amount of assets acquired). Please reveal if
the financial institution has ever been under management supervision of any federal or
state regulatory agency.
19. Provide references from at least five (5) current government clients within the
Commonwealth of Pennsylvania. The references should include the name and mailing
address of the jurisdiction, along with the contact name, telephone number and e-mail.
State the specific banking relationships for each reference.
20. Submit the address and operating hours of the bank’s branch with which the City would
most regularly conduct business, and the address of all branches located in York,
Lancaster, Adams, and Dauphin Counties. Please list the names and professional
backgrounds of the following personnel that would be expected to deal with the City on a
regular basis: the branch manager, a cash management representative, a regional vice
president and/or municipal services representative.
21. Discuss the method used to calculate the earnings allowance on the compensated balance
calculation from Attachment B and provide your policies relating to the evaluation of this
established balance.
22. Explain the calculation of the earnings credit rate, and provide monthly earnings credit
rate history for January 1, 2011, through February 29, 2012, and basis of rate. Please list
the index by which the earnings credit rate will be benchmarked. (Example: federal
funds rate plus 50 basis points, 90 day treasury rate plus 50 basis points, LIBOR plus 50
basis points etc.).
23. Provide monthly history of interest rates applied to checking account balances for the
period January 1, 2011, through February 29, 2012. If your bank uses sweep investment
funds, then please provide monthly averages for the same period and indicate all fees
assessed for investment sweep. Please list the index by which the interest rates will be
benchmarked. (Example: federal funds rate plus 50 basis points, 90 day treasury rate plus
50, LIBOR plus 50 basis points etc.).
24. Answer each of the following:
a. Permit redeposit of NSF checks?
b. Assess FDIC insurance cost?
c. Assess 10% reserve requirement?
Yes/No
Yes/No
Yes/No
29