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Request for Proposal(RFP)

PrimaryBanking Services

(Contract)

City of York Pennsylvania

101 South George StreetPO BOX 509

York, PA 17405

C. Kim BraceyMayor

Karin Krebs, TreasurerRobert Lambert, Controller

Michael J. O’Rourke, Esq. Cherie AlwineBusiness Administrator D.B.A., Finance

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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

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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 2003-2010, along with other financial information of the City.

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http://yorkcity.org/finances

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.

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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

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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 Date Issue Request for Proposal March 7, 2012 Last Day for Vendor Questions March 14, 2012 City’s Response to All Questions March 20, 2012 Submission of Proposals March 28, 2012 Proposal Review Week of April 2, 2012 Selection of Finalists April 10, 2012 Finalists Interviews (if necessary) Week of April 16, 2012 Selection by Temporary Investment Committee April 25, 2012 Contract Signing Week of April 30, 2012 Commence New Banking Service 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.

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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.

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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.


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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,

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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. Wire transfers can be submitted until 5:00 p.m. for processing the same day.

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.

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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.

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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 well-administered cash management system can provide market rates of return without exposure to risks.

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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.


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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.

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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.


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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.

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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.


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SECTION VI – PROPOSAL INSTRUCTIONS

RFP Questions and Main Contact

Questions should be emailed to Cherie Alwine at [email protected]. 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 QuinnOffice of Business Administration101 South George StreetP. O. Box 509York 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.

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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.

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ATTACHMENT A

THIS PROPOSAL andATTACHMENTS A, B, C, and D

MUST BE RECEIVED BYTHE CITY OF YORK BY

3:00 pmMarch 28, 2012

TO THE ATTENTION OF:

Alexa QuinnOffice of Business Administration

City Hall101 South George Street

P. O. Box 509York 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:

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ATTACHMENT B

ESTIMATED MONTHLY ACTIVITY ANALYSIS AND COST PROPOSAL

Investment Account

SERVICE AVERAGE MONTHLY VOLUME

UNIT COST MONTHLY TOTAL

Account Maintenance 1Monthly Statement 1Internal Transfers Debits

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Internal Transfers Credits

45

Incoming Wire Transfer 5Outgoing Wire Transfer 3ACH Maintenance 1ACH Credit 20ACH Debit 10Other Charges-Itemize

MONTHLY COST

Control Account



Account Maintenance 1Monthly Statement 1Internal Transfers Debits

60

Deposits 100ACH Maintenance 1ACH Debit 60Credit Card Deposits 170Other Charges-Itemize

MONTHLY COST

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ATTACHMENT B

ESTIMATED MONTHLY ACTIVITY ANALYSIS AND COST PROPOSAL(Continued)

Firefighters Pension



Account Maintenance 1Statement 1Incoming Wire Transfers

1

ACH Transfers 2

ACH File Processed 1Direct Deposit Items Included in ACH File

70

ACH Maintenance 1Checks Processing 14Other Charges-Itemize

MONTHLY COST

Police Pension



Account Maintenance 1Statement 1Incoming Wire Transfers 2ACH Transfers 4ACH File Processed 2Direct Deposit Items Included in ACH Files

182


MONTHLY COST

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ATTACHMENT B


O & E Pension



Account Maintenance 1Statement 1Incoming Wire Transfer 2ACH Transfers 6ACH File Processed 2Direct Deposit Items Included in ACH Files

160


MONTHLY COST

Accounts Payable Account



Account Maintenance 1Statement 1Checks Processing 501Internal Transfers Credits 26Stop Payment 1ACH Transfers 10ACH Maintenance 1Other Charges-Itemize

MONTHLY COST

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ATTACHMENT B


Payroll Account



Account Maintenance 1Statement 1Checks Processing 225Internal Transfers Credits 7Direct Deposit ACH File 2Direct Deposits included in File

1479

ACH transfers 12ACH Maintenance 1Stop Payment 1Other Charges-Itemize

MONTHLY COST

COMPENSATING BALANCE AND INTEREST CALCULATION SECTION

AVERAGE MONTHLY BALANCE SUMMARY AMOUNTAverage Monthly Ledger Balance (Investment Account) $8,501,031Average Monthly Float (Investment Account) 0Average Monthly Collected Balance (Investment Account) $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: ______________________________________________

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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:_________________________________________

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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 UNIT COST SERVICE UNIT COSTControlled Disbursement Acct.

Positive Pay Service

Full Reconciliation Sweep Account Fee

Credit Card Services

Optional Service Costs: Lock Box



Deposits to Lockbox 36

ACH File Handling-Direct Transmission

1

Checks Processed 3524ACH Monitor-Transmission Package

1

ACH PPD Debits 904Deposit Tickets 36Account Maintenance 1

Monthly Statement 1Average Ledger Balance This is a zero balance

accountOther Charges-Itemize

MONTHLY COST

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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. controlled disbursementb. full reconciliationc. partial reconciliationd. positive pay servicese. 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 availabilityb. deposit/transfer ticket availabilityc. cancelled check availability

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d. posting of intereste. Account analysis statement delivery datef. 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. Primary capital to total assetsb. Equity growth less asset growthc. Loan loss reserve to total loansd. Total relationships or accounts with deposits in amounts over $1,000,000

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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? Yes/Nob. Assess FDIC insurance cost? Yes/Noc. Assess 10% reserve requirement? Yes/No

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Request for Proposal - Home - City of York, Pennsylvania Banking RFP - COY.doc · Web viewCDBG...

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