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REQUEST FOR PROPOSAL NO.: COL-16-145

ISSUED: June 6, 2016

SUBMISSION DATE: July 29, 2016 @ 16:00 Local Time

Request for Proposals

For

Banking Services

TABLE OF CONTENTS

PART 1 – INTRODUCTION ..................................................................................................... 1 1.1 INVITATION ..................................................................................................................................................... 1 1.2 AGREEMENT ON INTERNAL TRADE .................................................................................................... 1 1.3 SUBMISSION INSTRUCTIONS ......................................................................................... 1 1.4 RESPONDENTS TO REVIEW RFP .................................................................................. 3 1.5 ALL NEW INFORMATION TO RESPONDENTS BY WAY OF ADDENDA .................................. 3 1.6 DEBRIEFING ........................................................................................................................... 3 1.7 BID PROTEST PROCEDURE ........................................................................................... 3

PART 2 – EVALUATION OF PROPOSALS ............................................................................. 3 2.1 STAGES OF EVALUATION.............................................................................................. 3 2.2 MANDATORY REQUIREMENTS ....................................................................................... 3

2.2.1 PROPOSAL FORM ......................................................................................... 3 2.2.2 OTHER MANDATORY CRITERIA ...................................................................... 3

2.3 RATED CRITERIA .......................................................................................................... 4 2.4 TIE SCORE ................................................................................................................... 6

PART 3 – TERMS OF REFERENCE AND GOVERNING LAW ......................................................... 6

PART 4 – DELIVERABLES ...................................................................................................... 7

COL-16-145; Banking Services Page 1 of 13

IMPORTANT DATES

Issue Date of RFP June 6, 2016

Deadline for Questions July 18, 2016 @ 16:00 Local Time

Deadline for Issuing Addenda July 22, 2016

Submission Date July 29, 2016 @ 16:00 Local Time

Presentations (if required) Week of September 12, 2016

City Council Approval October 3, 2016

Notice of Award October 4, 2016

Rectification Period Three (3) Business Days from notification of rectification

The RFP timetable is tentative only, and may be changed by the City at any time prior to the Submission Date. Responses submitted after the Submission Date will be rejected.

A respondent may, at its option, email the City Contact prior to the Submission Date with delivery details, including the name of the Courier, shipment or waybill # and anticipated arrival time of its response. In the event a response does not arrive as scheduled, the City may provide those respondents who have given such prior notice one additional Business Day to effect the delivery of their responses. The Submission Date shall be deemed to be adjusted accordingly for the purpose of accepting those responses. For the purposes of this Section, “Business Day” means any working day between 8:00 a.m. and 4:30 p.m., Monday to Friday inclusive, but excluding statutory and other holidays that the City has elected to be closed for business.

PART 1 – INTRODUCTION

1.1 Invitation This Request for Proposals (“the RFP”) issued by the City of Lethbridge (the “City”) is an invitation to submit non-binding offers for the provision of Banking Services as further described in Part 4, for the Rates established in Appendix A. The respondent selected pursuant to this RFP process will be informed in writing. Respondents not selected will also be informed in writing.

The City of Lethbridge is requesting proposals from qualified banking institutions to provide banking services for a four (4) year period commencing February 1, 2017, with the provision for an extension of up to one (1) four (4) additional years upon the mutual agreement of both parties.

For the purposes of this procurement process, the “City Contact” shall be: Murray Reid, Purchasing Supervisor; Email: [email protected]

1.2 Agreement on Internal Trade Respondents should note that procurements falling within the scope of Chapter 5 of the Agreement on Internal Trade are subject to that chapter but that the rights and obligations of the parties shall be governed by the specific terms of each particular tender call. For further reference please see the Internal Trade Secretariat website at http://www.ait-aci.ca/.

1.3 Submission Instructions Respondents are requested to submit their Proposal Form (Appendix A) in the manner prescribed herein by the Submission Date: All submissions if delivered in person or sent by mail shall be directed to:

mailto:[email protected]

http://www.ait-aci.ca/


City of Lethbridge 6th Floor City Hall, 910 - 4th Ave S Lethbridge, AB T1J 0P6

Attn: Tenders’ Office

If sent by Courier shall be directed to:

City of Lethbridge 450 - 4th Ave. N, Unit 3 Lethbridge, AB T1H 0K2 Attn: Tenders’ Office

Email submissions may be sent to [email protected] followed by five (5) hard copies within three (3) business days. Email submissions that are larger than twenty (20) MB are to be sent within a zip file.

If an email submission is not made five (5) hard copies accompanied by one (1) electronic copy submitted on CD or digital storage device in Adobe PDF format are required by closing date and time. One (1) hard copy must be clearly marked “Original” and the other four (4) hard copies clearly marked “Copy”. Any differences between the hard copy and the electronic copy, the hard copy marked “Original” will prevail.

All submissions are to be prominently marked with the competition title and number (see cover of bid document), with the full legal name and return address of the proponent, and with the Submission Date. All pricing information is to be submitted separately either in a sealed envelope apart from the rest of the paper submission or as a separate electronic document. If submitting in person or by mail/courier the sealed envelope containing the pricing should be placed with the rest of the proposal into a sealed package and directed as set out above. The submission shall convey the respondent’s methodology in a clear and concise manner. The main body of the submission shall be no more than twenty-five (25) pages (single sided, minimum 10 pt. font). Appendices, organizational charts, diagrams and personnel resumes are not to be considered in the number of pages. It is requested that the layout of submissions follow, as closely as possible, the layout of the Scope & Specifications of Banking Services section.

1.4 Respondents to Review RFP

Respondents shall promptly examine all of the documents comprising this RFP and (a) shall report any errors, omissions or ambiguities and (b) may direct questions or seek additional information in writing by e-mail or fax on or before the Deadline for Questions to the City Contact. The City is under no obligation to provide additional information but may do so at its sole discretion. It is the responsibility of the respondent to seek clarification from the City Contact on any matter it considers to be unclear. The City shall not be responsible for any misunderstanding on the part of the respondent concerning this RFP or its process. Respondents and their representatives may not contact individuals employed or engaged by any member of the City, other than the City Contact, concerning matters regarding this RFP. Only information received by the City Contact will be considered in the RFP process. All such communications must be in writing. Any respondent that does not follow these instructions

mailto:[email protected]


may be disqualified.

1.5 All New Information to Respondents by Way of Addenda

This RFP may be amended only by an addendum in accordance with this section. If the City, for any reason, determines that it is necessary to provide additional information relating to this RFP, such information will be communicated to all respondents by addenda. Each addendum shall form an integral part of this RFP. Such addenda may contain important information, including significant changes to this RFP. Respondents are responsible for obtaining all addenda issued by the City.

1.6 Debriefing Respondents may request a debriefing after receipt of a notification of award. All requests must be made in writing to the City Contact and must be made within sixty (60) days of notification of award. The intent of the debriefing information session is to aid the respondent in presenting a better response in subsequent procurement opportunities. Any debriefing provided is not for the purpose of providing an opportunity to challenge the procurement process.

1.7 Bid Protest Procedure

If a respondent wishes to challenge the outcome of the RFP process, it should provide written notice to the City Contact within ten (10) days of notification of award, and the City will respond in accordance with its bid protest procedures.

PART 2 – EVALUATION OF PROPOSALS

2.1 Stages of Evaluation The evaluation of proposals will be conducted in the following stages:

Stage I will consist of a review to determine which submissions satisfy all of the mandatory requirements. Respondents submitting responses that do not meet the mandatory requirements may be provided an opportunity prior to the Rectification Date to rectify any deficiencies. Responses satisfying the mandatory requirements before the Rectification Date will proceed to Stage II. Responses failing to satisfy the mandatory requirements will be excluded from further consideration.

Stage II will consist of a scoring on the basis of the Rated Criteria. Subject to the Terms of Reference and Governing Law, the top-ranked respondent as established under the evaluation will be selected to enter into a contract for the provision of the Deliverables. The selected respondent will be expected to enter into a contract within the timeframe specified in the selection notice. Failure to do so may, among other things, result in the disqualification of the respondent and the selection of another respondent, or the cancellation of the RFP.

2.2 MANDATORY REQUIREMENTS

2.2.1 Proposal Form

Each proposal must include a Proposal Form (Appendix A) completed and signed by the respondent.

2.2.2 Other Mandatory Criteria

Copy of Certificate of Insurance

Appendix B – Reference From

Schedule 1 - Pricing


2.3 Rated Criteria

Stage II will consist of an evaluation of the proposal to determine the high score based on the following criteria:

Evaluation Criteria Points Weight Score

Organizational Background & Structure 10 1.0 10

Service Approach & Technical Offering 10 5.0 50

Value-Added Services 10 1.0 10

Pricing 10 3.0 30

TOTAL POINTS 100

Points will be assigned for each applicable criteria based on the information provided in the response. Points could be modified, depending upon reference checks and other independent information received and confirmed. Scoring shall be awarded on a scale of 0 to 10. Partial scores or scores not defined below will not be used. The range is defined as follows:

0

Lack of response or complete misunderstanding of the requirements, no probability of success.

2

Does not meet expectations or demonstrate understanding of the requirements, major weakness or deficiencies, low probability of success.

4 Partially meets expectations; minor weakness or deficiencies, fair probability of success.

6

Fully meets expectations; Proponent has good understanding of requirement, no weakness or deficiencies, good probability of success.

8 Somewhat exceeds expectations; high probability of success

10

Fully exceeds expectations; Proponent clearly understands the requirement, excellent probability of success.

In addition to submitting the Proposal Form, noted above, respondents should respond to the non-price factors described above with reference to the applicable section numbers of the RFP.

Organizational Background & Structure (10 points)

Organizational background and structure, affiliations, and partnerships

Branch Location(s) and hours of service

Prior municipal banking experience with emphasis on comparable local governments and similar agencies.

Account representative/contact and staff availability to provide advice when required

Service Approach & Technical Offerings (50 points)

Ability to meet the current and projected scope and specifications over the term of the banking contract as noted in Part 4 Deliverables - section 2.0

Detailed description of your electronic reporting and cash management software (e.g. electronic receipt of bank statements, cleared cheques, and stop payments, etc.).

Electronic funds transfer capabilities, processes and protocols


Automatic advances of short-term borrowings to cover account balance when in a debit position

Wire transfers, direct deposit, telephone and internet banking capabilities, processes and protocols including security and user access controls.

Online/Electronic Fraud protection and bank reconciliation capabilities and services

Online banking administrative changes/security features

Compliance with the Payment Application Data Security Standard (“PA-DSS”)

Technical support availability and hours of service

Value-added Services (10 points)

Enhanced level of Service for Incoming Payments, Transfers and Deposits as noted in Part 4 Deliverables –section 2.4.10.

Enhanced level of Service for Outgoing Payments, Pre-authorized Debits & Transfers as noted in Part 4 Deliverables –section 2.5.8.

Additional Services as noted in Part 4 Deliverables –section 2.6.5.

Firm policy / process for ensuring a smooth transition to and from another financial institution at the beginning and end of the agreement.

Provision to receive customer payments through Electronic Data Interchange (EDI) or other electronic formats

Provision to make vendor payments through EFT or Electronic Data Interchange (EDI) or other electronic formats

Enhanced level of service regarding automated bank reconciliation process.

Provision for automatic cheque deposits via electronic transmission.

Pricing (30 Points)

Pricing will be scored based on a relative pricing formula using the Rates set out in Schedule 1 – Pricing.

Cost per transaction or fixed costs of the base services outlined in Part 4 Deliverables section 2.0 and as noted within Schedule 1.

An all-inclusive cost of the base services outlined in Part 4 Deliverable - Section 2 above.

Additional costs related to value added services will be considered separately.

The yearly incremental price increases, if any as noted in Schedule 1.

Provision of billing and charges to aid in reconciliation.

Please identify any transition costs with your proposal.

Consideration will be given to the potential interest earned on deposits which may offset the overall fees quoted in Schedule 1.

Each respondent will receive a percentage of the total possible points allocated to price. For example, if a proponents total cost is $100,000 and that is the lowest bid price, that proponent receives 100% of the possible points (100,000/100,000 = 100%). A proponent who bids $150,000 receives 67% of the possible points (100,000/150,000 = 67%), and a proponent who bids $240,000 receives 42% of the possible points (100,000/240,000 = 42%).

Lowest price ------------------- x Total available points = Score for proposal with second-lowest price Second-lowest price Lowest price ------------------- x Total available points = Score for proposal with third-lowest price Third-lowest price

And so on, for each proposal.


2.4 Tie Score

In the event of a tie score, the successful respondent will be determined by a simple random method chosen in the City’s sole discretion, which may consist of, without limitation, a coin toss or a lottery name draw. The coin toss or lottery draw shall be conducted in the presence of a representative of each of the tied respondents.

PART 3 – TERMS OF REFERENCE AND GOVERNING LAW

In responding to this RFP, and to be eligible for consideration, each respondent must submit a completed and signed Proposal Form that, among other things, acknowledges its acceptance of the RFP Terms of Reference and Governing Law as contained hereunder:

(a) this RFP process is not intended to create a formal legally binding bidding process and shall not give rise to the legal rights or duties applied to a formal “Contract A” binding bidding process or any other legal obligations arising out of any tendering process contract or collateral contract, and instead shall be governed by the common law applicable to direct commercial negotiations;

(b) neither party shall have the right to make any breach of contract, tort or other claims against the other with respect to the award of a contract, the failure to award a contract or the failure to honour a proposal;

(c) the respondent will bear its own costs associated with, or incurred in, the preparation

and presentation of its response, including, if applicable, costs incurred for interviews or demonstrations;

(d) no legal obligation regarding the procurement of any good or service shall be created

between the respondent and the City until the City accepts the respondent’s offer in writing;

(e) when evaluating proposals, the City may request further information from the respondents or third parties in order to verify, clarify or supplement the information provided in the respondent’s submission, and the City may revisit and re-evaluate the respondent’s submission or ranking on the basis of any such information;

(f) the City may consider the respondent’s past performance on previous contracts or any

other relevant information taken into account by the City when determining the acceptability of a respondent;

(g) the respondent consents to the City’s collection of the information as contemplated

under this RFP for the uses contemplated under this RFP; (h) the City may elect not to consider a respondent whose proposal contains

misrepresentations or any other inaccurate, misleading or incomplete information; (i) the City may prohibit a respondent from participating in a procurement process based

on poor past performance or based on inappropriate conduct in a prior procurement process, and such inappropriate conduct shall include but not be limited to (i) the submission of proposals containing misrepresentations or any other inaccurate, misleading or incomplete information, (ii) the refusal of the respondent to honor its pricing or other commitments made in its proposal, or (iii) any other conduct, situation or circumstance, as solely determined by the City, which constitutes a Conflict of Interest; and


(j) the City may cancel this RFP process at any time.

The parties also acknowledge that these terms (a) are included for greater certainty and are intended to be interpreted broadly and separately (with no particular provision intended to limit the scope of any other provision); (b) are non-exhaustive (and shall not be construed as intending to limit the pre-existing rights of the parties to engage in pre-contractual discussions in accordance with the common law governing direct commercial negotiations); and (c) are to be governed by, and interpreted and construed in accordance with, the laws of the province or territory within which the City is located and the federal laws of Canada applicable therein.

PART 4 – DELIVERABLES

A. DELIVERABLES The City of Lethbridge is requesting proposals from qualified banking institutions to provide banking services for a four (4) year period commencing February 1, 2017, with the provision for an extension of up to one (1) four (4) additional years upon the mutual agreement of both parties.

4. SERVICE REQUIREMENTS

1.1. Background

The purpose of this Request for Proposal (RFP) is to invite Banking Institutions to submit proposals to provide annual banking services to the City of Lethbridge. The City of Lethbridge has undertaken this Request for Proposal with the intention to possibly enter into an agreement with a qualified Proponent. This Request for Proposal does not constitute an offer, and the City will not have any liability or obligation to anyone in connection with this Request for Proposal unless the City of Lethbridge executes and delivers an agreement in writing approved by City Council. Banking institutions are invited to expand their response to this RFP to cover more features or extra performance providing that it at least meets the specification as a minimum. The City of Lethbridge reserves the right to accept the proposal, which it deems most advantageous, and the right to reject any or all proposal. In no event will the City of Lethbridge be responsible for the costs or preparation or submission of any preliminary submission or proposal.

1.2. General Information The City of Lethbridge is an urban municipality of approximately 94,800 residents located in southwest Alberta. Municipal services are provided to the residents by approximately 1,200 full time and 300 part time staff. The administration of the City is the responsibility of the Mayor and Council and delegated through the City Manager to five operating Divisions (Governance, Corporate Services, Community Services, Planning & Development and Infrastructure Services). The City’s assessment base is currently approximately 83% residential and 17% non-residential.

The City’s fiscal year is from January 1st to December 31st.


The City of Lethbridge Public Library is established under the Provincial Libraries Act and is governed by a separate board. It is located at 810-5th Avenue South and is accountable to City Council, the Province and to City residents. The Lethbridge Regional Police is governed by the Police Commission and is located at 135 1st Avenue South and is accountable to City Council, the Province and to City residents. The Galt Museum & Archives is established under a Bylaw of the City of Lethbridge and is governed by a separate board. It is located at the West end of 5th Avenue South and is accountable to City Council and to City residents. More detailed information on the government and its finances can be found in the Annual Report, the three year Operating Budget, and the ten year Capital Improvement Program located at www.lethbridge.ca. The City of Lethbridge utilizes primarily the JD Edwards Enterprise Resource System as its financial information application. Some of the specific modules that relate to the overall banking processes and requirements include: 1. General Ledger 2. Accounts Payable 3. Accounts Receivable 4. Supply Chain Management (Purchasing) 5. Expense Management

In addition to JD Edwards, the City also utilizes the following software/applications: 1. Tempest (point of sale) 2. Class (point of sale)

The City is in the process of planning further implementations of software that will allow customers to gain access to their individual account balances or request other services via our website or other electronic means. This will include the requirement to be able to pay for City services via these methods. Although this is currently in the planning stages and timelines have not been set, proponents are expected to provide information on any services or programs that could facilitate these future enhanced levels of service for our customers.

1.3. Mandatory Institutional Qualifications

1.3.1. The Banking Institution must be a member of the Canadian Payments Association

and its operations must comply with that Association’s standards and conventions.

1.3.2. The Banking Institution must have its long-term deposits rated A or better by at

least two of the major rating agencies. OR

Another institution that meets the above rating criteria must guarantee deposits of the Banking Institution. Proposals not meeting all mandatory requirements will be rejected without further consideration.

1.4. Dismissal of Banking Institution In the event that the Banking Institution at any time fails to comply with the provisions of


this Agreement to the satisfaction of the City, the City of Lethbridge immediately shall become empowered to dismiss and discharge the Banking Institution from any further execution of the Agreement provided a thirty (30) day notice has been given.

1.5. Assignment of Service Agreement Any agreement resulting from this RFP is not assignable by the Banking Institution without the prior written consent of the City.

2. SCOPE & SPECIFICATIONS OF BANKING SERVICES

2.1. Operating Bank Accounts At present the City maintains nine (9) bank accounts:

(1) General account

(1) Payroll account

(1) Cheque Clearing account

(1) Library Capital Fund account

(4) Imprest accounts for Enmax Centre cash machine transactions.

(1) US Dollar account

These accounts will be the City’s minimum requirement.

Requirements:

- Daily statements and cleared cheques received electronically

- Monthly interest paid on account balances

- Electronic funds transfer for payroll, utilities and tax payment plans

- Direct deposit and telephone banking

- Online electronic bank reconciliation

- Online Banking and administrative changes with dual approval for transfers to external parties.

- Cheque fraud protection service

Detailed information on these accounts appears within Attachment 1. The information is provided only as a guide and not a guarantee of levels to be experienced.

2.2. Electronic Services & Reporting

2.2.1. Electronic Balance & Transaction Reporting The City requires a flexible online reporting system for use by Finance and Treasury Management. The system needs to provide data relating to: prior business days, real time balances, historical data reports, as well as, all the City’s accounting including the high volume cheque clearance listing. Prior day’s reports are required by 7:30 am local time. City requires an electronic copy of cleared cheques to be received on a weekly basis. The proponent must provide electronic balance and transaction reporting for all bank accounts, plus the ability to transfer funds between accounts and the ability to make stop payments on cheques.

2.2.2. Stop Payments

The City requires the ability to initiate and receive confirmation for stop payments through on line electronic service.

2.2.3. Electronic reporting and Cash Management Software


The City of Lethbridge requires the ability to manage the creation, modification and access rights of users to these applicable systems. The City requires on-line access for a minimum of 30 City personnel. The proposal must include a detailed description of your electronic reporting and cash management software, including any charges for this service. Additional costs for customization or enhancement should be included. Proponents are requested to outline the type and level of service provided as well as associated security and approval processes.

2.3. Credit Services

2.3.1. Borrowing for Current Expenditures

The City of Lethbridge does not often have to obtain short-term borrowings. In the event they may be required, however, a line of credit must be available. The current maximum short-term borrowing permitted by Council resolution is $10,000,000. Of the $10,000,000, the City’s electric utility provider requires the City to have a Letter of Credit on file for $6,500,000; with the remaining $3,500,000 balance available for operations. Advances are to be made in pre-determined increments and are automatically made when the account is in a debit position. Repayments should be made automatically when the account balance has adequate funds. Proponents should address the pre-determined increments and automatic advance/repayment with respect to the line of credit. The security for the line of credit is property tax revenue. The City reserves the right to borrow from other agencies.

2.3.2. Borrowing for Casual Expenditures Long-term borrowing in excess of one year is obtained from the Alberta Municipal Financing Corporation. If temporary borrowing for capital projects is required prior to securing financing through the Alberta Municipal Financing Corporation, the banking institution will be asked to provide interim financing at an interest rate to be negotiated. The City reserves the right to borrow from other agencies.

2.4. Incoming Payments, Transfers and Deposits

2.4.1. Wire Transfer & EFT

The City receives payments from some vendors by wire transfer and EFT. The City requires that the originators of these payments are clearly indentified on the bank statement and that supporting documentation is promptly provided to the City.

Proponents are asked to confirm their ability to deliver this level of service and all related costs.

2.4.2. Acceptance of Payments The bank must provide the option of making payments over the counter, through internet banking, telephone banking and through the City website as well as acting as a central clearing house for the acceptance of payments at other financial institutions by any of these same means. The expectation is that our financial institution will act as the lead in consolidating these payments made through other financial institutions. The bank must be able to transmit electronically a record of these payments in a format that will allow the City to upload the data, directly into its accounting system on a daily basis.

2.4.3. Pre-authorized Property Tax Payments The City offers a property tax payments plan called the Tax Installment Payment Plan (TIPP), using electronic funds transfers. This occurs on the first banking day of each month during August - May. The volume of transactions under this plan is expected to grow. All information for this electronic transaction is transmitted directly to the bank. Any rejected or returned items are forwarded to the City


within 3 business days in an electronic file detailing each item for tracing purposes. The Banking Institution must continue these programs for our customers.

2.4.4. Pre-authorized Utility Payments The direct withdrawal for Utility payments is performed on a weekly basis. An electronic file is sent to the City’s bank to facilitate funds to be withdrawn from client accounts and credited to the City’s general account. Any rejected or returned items are forwarded to the City within 3 business days in an electronic file detailing each item for tracing purposes. The Banking Institution must continue these programs for our customers.

2.4.5. Deposits Deposits are delivered to the banking institution each day by armoured car service. The institution must have the facility to serve the armoured car service personnel without him or her waiting in the normal customer line. The City makes additional deposits during property tax collection time in late June in order to minimize the amount of cash on hand in the City administrative offices. The City of Lethbridge uses both manual and electronically created deposit slips. Therefore, proponents are required to provide manual deposit books as well as accepting electronic deposits slips (City Hall Cashiers). As deposits are made from several locations within the City, the institution must have a way of identifying where each deposit originated.

2.4.6. Coin Deposits

The City of Lethbridge deposits a substantial amount of pre-rolled coinage taken from our Transit and Parking Meter Activities. These deposits are currently counted and rolled in house by City of Lethbridge staff, and is not within the scope of this RFP.

2.4.7. Electronic Customer Payments

The City is interested in the potential for receiving customer payments via EDI or other formats that would result in efficiencies and cost savings. Outline your available alternative payment methods including required resources, implementation plans, settlement timelines (i.e. same day settlement), and associated costs. Security features should also be identified.

2.4.8. Night Depository Service The City of Lethbridge requires night depository facilities for monies collected after normal banking hours. Proponents are asked to describe the location, setup and security offered.

2.4.9. Inter-Branch Service To accommodate the various business units within the organization, the City of Lethbridge requires the ability to make deposits at any of its bank’s branches.

2.4.10. Enhanced Service Level Describe any method of providing the above mentioned services, along with costs, which are considered an enhancement to the descriptions above. Should the enhancement involve files sent via Internet, please detail all file security, including encryption.

2.5. Outgoing Payments, Pre-authorized Debits & Transfers

2.5.1. Vendor Payments & Pre-authorized Debits

The City has requirement for corporations to debit the City’s general account on


a predetermined schedule. The City requires the bank to assign these debits with the description of the originator on the bank statement in order to identify these debits. Please confirm your ability to deliver this service and all related costs.

2.5.2. Wire Transfer, Money Orders & EFT The City of Lethbridge requires the ability to produce wire transfers, money orders and/or EFT’s to complete payments to vendors and financial institutions. Proponents are requested to outline the type and level of service provided as well as associated security and approval processes.

2.5.3. Pre-authorized Payment Reversal To facilitate effective customer service, the City requires the ability to reverse pre-authorized payments to customer accounts. This feature is currently utilized in both our TIPP and Utility pre-authorized payment programs for overpayments.

2.5.4. Payroll Transfers The bank must provide the ability for bi-weekly electronic funds transfers so that direct payroll deposits can be made to employees bank accounts whether in a bank, credit union or any other financial institution. At present, this transfer is initiated through an online banking system.

For purposes of making payment by direct deposit, net pay information is transmitted electronically to the bank. The data content (information fields), file format and responsibilities for each part are detailed within the service agreement, and should be addressed in the proposal. Particulars of the number of days in advance of the payroll date and cheque recall deadlines should be included in the proposal. The City of Lethbridge is responsible for the issue of payroll EFTs and cheques.

2.5.5. US Dollar Chequing Account A US Dollar account is required to facilitate payments for US Dollar invoices. Cheques are generated on a weekly basis. Monthly statements and cleared cheques are required for this account as well.

2.5.6. Electronic Vendor Payment The City is interested in the potential for paying vendors through EFT, EDI or other formats that would result in efficiencies and cost savings. Outline your available alternative payment methods including required resources, implementation plans, settlement timelines (i.e. same day settlement), and associated costs. Security features should also be identified.

2.5.7. Authorized Signing Authority Two authorized signatures are required on all City of Lethbridge cheques. Cheques require two electronic signatures. Describe the process used to monitor and validate that only authorized signatures are present on the face of the cheque.

2.5.8. Enhanced Service Level Describe any method of providing the above mentioned services, along with costs, which are considered an enhancement to the descriptions above. Should the enhancement involve files sent via Internet, please detail all file security, including encryption.

2.5.9. Fraudulent Cheque Protection Proponents to describe the method of ensuring cleared cheques reconcile to the city’s electronic cheque register. Reconciliation shall include serial number, dollar amount, issue date, total dollar value as well as payee name.


2.6. Miscellaneous

2.6.1. Business Hours The bank must provide full banking services a minimum of five (5) days of the

week and during normal business hours.

2.6.2. Account Representative/Contact The bank must provide an account representative who will be directly responsible for the City’s accounts and who will be readily available for routine operational concerns.

2.6.3. Transition Costs It is anticipated that a change of financial institutions will result in costs to the City in both staff time and new forms to transfer the accounts. Describe what type of support your financial institution would offer to help assist with or minimize these costs. Please describe the resources that your financial institution would be prepared to offer and any associated costs with assisting in the transition. As well, please advise when a transition could occur, how long it would take and how would you approach it to minimize disruption to the City.

2.6.4. Deposit Bags The City of Lethbridge requires the use of plastic sealed bags. The bank must include these bags within their monthly charge.

2.6.5. Additional Services Proponents can offer services not specifically addressed in this request that may be beneficial to the operation of the City’s bank accounts. As well, any professional education programs that would be available to City staff should be outlined. These costs, if any, of these services must be stated separately from the other essential services in the Request for Proposal.

2.7. Out of Scope

The following services do not form part of this request for proposal: Investment of Funds Corporate Pcard Armored Car Service Coin Rolling Point of Sale Hardware, Systems & Services

B. MATERIAL DISCLOSURES

CITY OF LETHBRIDGE BUSINESS LICENSE – Successful respondent may be required

to possess a valid City of Lethbridge Business License (City By-law 3998).

Respondent will also provide proof of good status with W.C.B. at time of contract

execution and payment.

The City of Lethbridge will not accept contractual provisions which limit liability of the service provider to the value of the contract, fees paid or the value of the services rendered. Any limit on liability must be agreed to by the City prior to the award of the contract.

Attachment 1 – Statistical Information for Operating Accounts

C. TERMS AND CONDITIONS

Attachment 2 – Insurance & Indemnification

Proposed agreement – Custom contract.

COL-16-145, Banking Services - Proposal Form Page 1 of 3

APPENDIX A – Proposal Form

COL-16-145 Banking Services

(Must be filled out, signed on Page 3 and returned with bid)

1. Respondent Information

Please fill out the following form, and name one person to be the contact for this RFP response and for any clarifications or amendments that might be necessary. Appendix A must be included in your submission.

Full Legal Name of Respondent:

Any Other Relevant Name under Which the Respondent Carries on Business:

Street Address:

City, Province/State:

Postal Code:

Phone Number:

Fax Number:

Company Website (If Any):

RFP Contact Person and Title:

RFP Contact Phone:

RFP Contact Facsimile:

RFP Contact E-mail:

2. Acknowledgement of Terms of Reference and Governing Law

The respondent acknowledges that this RFP process will be governed by the specific Terms of Reference and Governing Law set out in this RFP, and that, among other things, the Terms of Reference and Governing Law confirm that this procurement process does not constitute a formal legally binding bidding process, and that there will be no legal relationship or obligations created until the City accepts the respondent’s offer in writing.

3. Ability to Provide Deliverables

The respondent has carefully examined this RFP and has a clear and comprehensive knowledge of the Deliverables required. The respondent represents and warrants its ability to provide the Deliverables in accordance with the requirements of the RFP for the pricing set out below and has provided a list of any subcontractors to be used to complete the proposed contract.

. 4. Non-binding Price Estimates

Respondents should provide pricing for the Deliverables described hereunder:

See Schedule 1 - Pricing The respondent confirms that the pricing information provided is accurate. The respondent acknowledges that any inaccurate, misleading or incomplete information, including withdrawn or altered pricing, could adversely impact the acceptance of its proposal or its eligibility for future work.

The respondent acknowledges that the pricing is quoted in Canadian dollars and includes all


applicable duties and taxes except Goods and Services Tax (GST), which should be itemized separately, all labour and material costs, all travel and carriage costs, all insurance costs, all bonding costs, all costs of delivery to the City, all costs of installation and set-up, including any pre-delivery inspection charges and all other overhead, including any fees or other charges required by law.

5. Addenda The proponent is deemed to have read and accepted all addenda issued by the City prior to the Deadline for Issuing Addenda. The onus remains on proponents to make any necessary amendments to their response based on the addenda. The proponent is requested to confirm that it has received all addenda by listing the addenda numbers or, if no addenda were issued, by writing the word “None” on the following line: . Proponents who fail to complete this section will be deemed to have received all posted addenda.

6. Conflict of Interest

Prior to completing this portion of the Form of Offer, respondents should refer to the following definition of Conflict of Interest:

“Conflict of Interest” includes, but is not limited to, any situation or circumstance where (a) in relation to the bidding process, the respondent has an unfair advantage or

engages in conduct, directly or indirectly, that may give it an unfair advantage, including but not limited to (i) having, or having access to, information in the preparation of its proposal that is confidential and not available to other respondents, (ii) communicating with any person with a view to influencing preferred treatment in the RFP process, or (iii) engaging in conduct that compromises, or could be seen to compromise, the integrity of the open and competitive RFP process and render that process non-competitive and unfair; or

(b) in relation to the performance of its contractual obligations contemplated in the contract that is the subject of this procurement, the respondent’s other commitments, relationships or financial interests (i) could, or could be seen to, exercise an improper influence over the objective, unbiased and impartial exercise of its independent judgement, or (ii) could, or could be seen to, compromise, impair or be incompatible with the effective performance of its contractual obligations.

If the box below is left blank, the respondent will be deemed to declare that (a) there was no Conflict of Interest in preparing its proposal; and (b) there is no foreseeable Conflict of Interest in performing the contractual obligations contemplated in the RFP.

Otherwise, if the statement below applies, check the box.

The respondent declares that there is an actual or potential Conflict of Interest relating to

the preparation of its proposal, and/or the respondent foresees an actual or potential Conflict of Interest in performing the contractual obligations contemplated in the RFP.

If the respondent declares an actual or potential Conflict of Interest by marking the box above, the respondent must set out below details of the actual or potential Conflict of Interest:

The following individuals, as employees, advisers, or in any other capacity (a) participated in


the preparation of our proposal; AND (b) were employees of the City and have ceased that employment within twelve (12) months prior to the submission deadline:

Name of Individual:

Job Classification:

Department:

Last Date of Employment with the City:

Name of Last Supervisor with the City:

Brief Description of Individual’s Job Functions:

Brief Description of Nature of Individual’s Participation in the Preparation of the Submission:

(Repeat above for each identified individual) The respondent agrees that, upon request, the respondent shall provide the City with additional information from each individual identified above in the form prescribed by the City.

7. Confidential Information of Proponent

A proponent should identify any information in its response or any accompanying documentation supplied in confidence for which confidentiality is to be maintained by the City. The confidentiality of such information will be maintained by the City, except as otherwise required by law or by order of a court or tribunal. Proponents are advised that their responses will, as necessary, be disclosed on a confidential basis, to the City’s advisers retained for the purpose of evaluating or participating in the evaluation of their responses. If a proponent has any questions about the collection and use of personal information pursuant to this RFP, questions are to be submitted to the City Contact.

8. Signature of Proponent Representative and Witness

Appendix A – Proposal Form must be signed by the person authorized to sign on behalf of the Proponent along with name and signature of a witness. Please sign below and submit with your bid.

Signature of Witness Signature of Proponent Representative

Name of Witness Name and Title

Date: ______________________________

I have authority to bind the proponent

APPENDIX B – REFERENCE FORM COL-16-145

Banking Services

Company Name______________________________________________________________ Respondents are to provide three relevant customer references, including contact name, role, telephone number / email address and description of completed project(s). The project(s) should be of a similar scope and size as identified in this RFP document and ideally from a Municipality similar to the City of Lethbridge.

Reference #1

Company Name:

Company Address:

Contact Name:

Contact Telephone Number:

Date Work Undertaken:

Nature of Assignment:

Email address:

Reference #2

Company Name:

Company Address:

Contact Name:




Email address:

Reference #3

Company Name:

Company Address:

Contact Name:




Email address:

Attachment 1

Page 1 of 2

STATISTICAL INFORMATION FOR OPERATING ACCOUNTS

For the period from January 1, 2015 to December 31, 2015

General Account: Transaction types:

Cash, cheque & coin deposits

Electronic funds transfer of grants from the Provincial Government and debenture funds from Alberta Municipal Financing Corporation

EFT funds transfers for property tax are credited to the General Account

U.S. Money Orders

Semi-monthly pre-authorized debenture payments are charged to the General account by the Alberta Municipal Financing Corporation

Average daily balance projected: $4 – 5 million

Average # of manual deposits per month: 225

Average # of direct deposits per month: 540

Average # of wire deposits per month: 8

Average # of wire payments per month: 8

Average # of cheques deposited per month: 3,700

Average # of cheques issued per month: 600

Average # of cheques charged back per month: 8

Average # of cheque certifications and/or stop payments per year: 10

Average # of cheque voids/delete payments per month: 16

Average # of transfers to other accounts:

- General to payroll 30 per year - Imprest to General 720 per year - General to US 63 per year

Average # of EFT “funds in” per month: - Taxes (from Aug – May) 8 transfers $ 666,938.98 - Utilities: 125 transfers $ 1,243,531 - Electric Retailer 12 transfers $ 3,651,007

Average # of EFT “funds out” per month : 5,500

Average # of EDI payments sent per month : 23,000

Payroll Account: Transaction types:

EFT funds transfers for payroll are credited to employee accounts

Average daily balance: $80,000-100,000

Transfers “in” per year: 26

REVISED - Attachment 1

Page 2 of 2

Average # of cheques issued per month: 30 Average # of EFT “funds out” transactions per month: 4,645 Average # of EFT Banks/Branches per transaction file: 2,144 Imprest Account: Transaction types:

• Transfers are made between the Imprest Account and the General Account.

• Large number of direct deposits made to account. Average daily balance: $20,000 Transfers out per year: 720 US Account: Transaction types:

• Transfers are made between theUS Account and the General Account. Average daily balance: $ 53,000 Average # of cheques issued per month 40 Transfers “in” per year 61

Attachment 2


1 INDEMNIFICATION AND INSURANCE

1.1. The Banking Institution shall indemnify, defend, pay on behalf of and hold harmless the City of Lethbridge (the City) from and against all loss, financial or accounting errors, claims, demands, costs, damages, actions, suits, or proceedings arising out of or in connection with the activities or performance by the Banking Institution, specific to this contract of Banking Services. The Liability of the Financial Institution shall survive the termination of this agreement.

1.2. The Banking Institution shall ensure compliance on his part and on the part of his

employees, agents, representatives, with all of the provisions of the Occupational Health and Safety Act of the Province of Alberta and Regulations there under. Should the act or regulations not be complied with, the City may give written notice to the Banking Institution to discontinue their operations until steps are taken to comply with the Act or Regulations. The Banking Institution shall discontinue work as of the date of receipt of such notice. The Banking Institution shall be solely responsible for any fees, expenses, damages, etc., resulting from such breach of any of the provisions of the Act or Regulations, and the Banking Institution shall indemnify the City for any costs incurred as a result of such breach.

2. INSURANCE

Without restricting the generalities of the foregoing Indemnification requirements, the Banking Institution shall procure, maintain, keep in force for the duration of the contract and pay for coverage listed in this condition, unless otherwise stipulated, in a form acceptable to the City. 2.1 Minimum Scope of Coverage

a) Minimum Scope of Coverage Commercial General Liability Insurance: Occurrence Form coverage as respects liability arising out of activities performed by or on behalf of the Banking Institution including Non-Owned Automobile Liability, Broad Form Property Damage Liability, Tenants All Risk Legal Liability, Products and Completed Operations Liability, Contingent Employer Liability, and Blanket Contractual Liability.

b) All Risk Property Insurance: Covering loss or damage to the Banking Institution’s own chattels, machinery, tools and equipment owned, borrowed or leased by the Banking Institution in performing the work as specified in the contract in accordance with, at minimum, the actual cash value of such machinery, tools and equipment. The City is not responsible for loss or damage to the property of others.

c) Automobile Liability Insurance: Covering all vehicles owned, operated or licensed in the name of the Banking Institution.

d) Workers’ Compensation Insurance/Assessments: To protect the Banking Institution and the City from claims arising from injury to workers and Employment Insurance Assessments in accordance with the requirements of the Alberta Workers Compensation Act. If the Banking Institution is in an exempt industry or does not qualify for Workers’ Compensation coverage in Alberta, the Banking

Attachment 2


Institution must provide an Employer’s Liability Extension Endorsement to their Commercial General Liability policy.

e) Network Security and Privacy Cyber Risk Liability Insurance: To Cover

damages arising from a failure of a computer security system breach, or a wrongful release of private information.

f) Financial Institution Bond: This insurance Coverage should include: (A) Fidelity, (B) On Premises, (C) In Transit, (D) Forgery or Alteration, (E) Securities, (F) Counterfeit Currency, (G) Electronic, (H) Cyber Crime and (I) Computer Fraud.

g) Bankers Professional Liability: Covering economic losses resulting from mistakes committed in providing financial services

2.2 Minimum Limits of Insurance

The Banking Institution shall maintain limits no less than:

a) Commercial General Liability: $5,000,000 combined single limit per occurrence for personal injury (including bodily injury and/or death) sustained by any person or persons and damage to property.

b) Automobile Liability: $2,000,000 combined single limit per accident for bodily

injury and property damage.

c) Professional Errors & Omissions Liability Insurance: $2,000,000 combined single limit per accident. Annual Aggregate $2,000,000.

d) Network Security and Privacy Cyber Risk Liability Insurance: $2,000,000 single limits per occurrence. Annual Aggregate $2,000,000.

e) Financial Institution Bond: As required by the Office of the Superintendent of Financial Institutions (OSFI)

2.3 Other Insurance Provisions

The policies are to contain or be endorsed to contain, the following Commercial General Liability Policy extensions:

a) The City shall be added as Additional Insured as respects liability arising out of

activities performed by or on behalf of the Banking Institution arising out of or in connection with the activities or performance by the Banking Institution, specific to this contract of Banking Services and the coverage shall contain no special limitations on the scope of protection afforded to the City.

b) The coverage shall include a Cross Liability or Severability of Interest wording to

the effect that the coverage shall apply to each Insured in the same manner as if separate policies had been issued to each Insured. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City.

2.4 Cancellation of Insurance Coverage

The Commercial General Liability Insurance policy required by the clause shall be endorsed to state that each insurer will endeavor to provide the City with 30 days prior

Attachment 2


written notice of cancellation by registered mail.

2.5 Verification of Coverage The Banking Institution shall furnish the City with a Certificate of Insurance and original endorsements effecting coverage required by this clause. The Banking Institution is to provide an overview of your relevant insurance programs and to summarize the protections/indemnities applicable to the City.

2.6 Representation

The City does not make any representation or warranty with respect to the extent or adequacy of the insurance protection as noted in the foregoing.

2.7 Obligations

The furnishing of this insurance shall not limit any of the obligations or liabilities expressed elsewhere in the contract documents.

2.8 Sub-Contractors

The Banking Institution Shall provide the City with proof of insurance for all and Subcontractors hired by the Banking Institution as per the requirements stated in Clause 2 of this agreement.

2.9 Reporting of Incidents The Banking Institution shall report all incidents of loss, including financial or accounting errors, claims, demands, costs, damages, actions, suits, or proceedings arising out of or in connection with the activities or performance by the Banking Institution, specific to this contract of Banking Services. The Banking Institution must submit a copy of the incident report to the City immediately upon completion. The Banking Institution shall cooperate and assist the City if further investigation of the incident is deemed necessary.

Description

Monthly/Yearly Average Cost Per

Transaction

(if applicable)

Fixed Cost

(if applicable)

Total Cost

General Account:

Manual Deposits Monthly 225

Direct Deposits Monthly 540

Wire Deposits Monthly 8

Wire payments Monthly 8

Cheques deposited Monthly 3,700

Cheques issued Monthly 600

Cheques charged back Monthly 8

Cheque certifications and/or

stop payments

Cheque voids/delete payments Monthly 16

Transfers to other accounts:

General to payroll Yearly 30

Imprest to General Yearly 720

General to US Yearly 63

EFT 'funds in':

Taxes (from Aug - May) Monthly 8

Utilities Monthly 125

Electric Retailer Monthly 12

EFT 'funds out' Monthly 5500

EDI Payment sent Monthly 23,000

Payroll Account:

Transfers 'in' per year Yearly 26


EFT 'funds out' Monthly 4,200

EFT Banks/Branches per transfer Monthly 2,144

Imprest Account:

Transfers 'out' Yearly 720

US Account:


Tranfers 'in' Yearly 61

Other charges not mentioned above Monthly

Other charges not mentioned above Yearly

Total charges for all services

Annual Incremental Pricing:

Incremental increase in costs and rates for year 2 _______%



Interest Rates:

Interest rate to be paid on the consolidated monthly balance of all accounts (interest is to be paid monthly) __________%

Interest rate for short-term borrowings __________%

Maximum revolving amount for short-term borrowings $___________

Other Required Services, In Scope:

Are there any other banking services that would be

required in order to reach the level of service outlined in

Section 2 that have not been included in the above? If

so, describe each service and the associated costs.

Discontinued Services:

Are there any banking services that your firm expects to

discontinue within in the next two years? If so, describe

each service, the replacement service and the cost

associated.

Enhanced Service Level:

Describe any additional services which your firm feels

will add value or improvement to an existing base

service level that was described in Section 2.

Optional – Fixed Monthly Rate:

Does your bank offer a fixed monthly rate that would

include all of the services and transactions itemized in

the Pricing Sheet? If so, provide detailed information

indicating the rate, services and number of transactions

whtat would be included in the fixed monthly rate. This

is optional information only, the Pricing Sheet must

be completed regardless.

Note: All costs and rates provided in the below table are assumed to hold true for the full fixed term of the contract (Feb 1,

2011 to Jan 31, 2014), unless otherwise indicated below in the ‘Annual Incremental Pricing) segment.

Schedule 1 -Pricing

Yearly 10

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