request for proposals - procurement.novascotia.ca · request for proposals municipality banking...

2019

Municipality of the

County of Kings

181 Coldbrook Village

Park Drive

Coldbrook, NS

B4R 1B9

Ph: (902) 690-6136

[REQUEST FOR

PROPOSALS]

FIN 19-19

MUNICIPALITY

BANKING SERVICES

Proposals will be received not later than 2:00 PM local time, July 5, 2019

REQUEST FOR PROPOSALS MUNICIPALITY BANKING SERVICES

RFP Number FIN 19-19 Closing Date & Time July 5, 2019 - 2:00 pm

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Table of Contents

1 Background Information .................................................................................................... 3

2 Instructions ......................................................................................................................... 3

3 Submissions ........................................................................................................................ 4

4 Evaluation Process ............................................................................................................. 4

5 Timeline .............................................................................................................................. 5

6 Service Specifications ........................................................................................................ 5

6.1 General Requirements ................................................................................................. 5

6.2 Service Expectations .................................................................................................... 6

6.3 Investment Services ..................................................................................................... 7

6.4 Transaction Services .................................................................................................... 7

7 Current Services ............................................................................................................... 10

7.1 Current Bank Accounts .............................................................................................. 11

7.2 Annual Volumes ........................................................................................................ 12

8 Schedule A: Banking Services Proposal Form ................................................................. 14

9 Appendix A: RFP General Terms and Conditions ........................................................... 15



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1 Background Information

The Municipality of the County of Kings is a rural Municipality in western Nova Scotia, incorporating the upper half of the Annapolis Valley and stretching from Kingston in the southwest to Hantsport in the northwest. The largest communities within the geographic boundaries of the county include New Minas and Greenwood. The Municipality of the County of Kings has a population of approximately 50,000 and is the third largest municipal unit in Nova Scotia. Kings County has significant agricultural and ecological resources to protect as we encourage new residential, industrial and commercial development. The Municipality is proud to be a part of the “Land of Orchards, Vineyards and Tides”, Nova Scotia’s richest agricultural region. The Municipality has grown to 30,000 assessed properties and approximately 74 employees. In accordance with its Procurement Policy, the Municipality contracts banking services on a one-year term to be renewed on an annual basis up to a five (5) year maximum. Proposals for banking services are being requested for the Municipality covering a five (5) year period from October 1st, 2019 to September 30th, 2024. Further information is available on the municipal website at www.county.kings.ns.ca 2 Instructions

The Municipality of the County of Kings invites proposals for its banking services. The Proposals will be based upon the specifications contained in this document. The contract will take effect following Council approval for a five (5) year period. For questions concerning specifications, requirements, or application, please contact:

Greg Barr, Director of Finance and IT Municipality of the County of Kings 181 Coldbrook Village Park Drive Coldbrook, Nova Scotia B4R 1B9 Tel: (902) 690-6136 Toll Free: 1-888-337-2999 E-mail: [email protected]

http://www.county.kings.ns.ca/



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3 Submissions

You are urged to structure your response in accordance with the requirements contained in this document. It will be by these criteria that we will determine whether a response is complete, appropriate and competitive. Proposals that do not conform to these requirements may not be considered. All information supplied in response to the RFP must contain sufficient details to support the services being proposed. All bids shall be provided on company letterhead. All bids represent an irrevocable offer and shall be valid for a period of 90 days following the closing date for submissions. All bids must be received before 2:00 PM local time July 5, 2019. Three copies of a letter format proposal and one copy on USB memory stick containing the information noted in this RFP are to be submitted as follows: Submit in a sealed opaque envelope plainly marked “Contract No. FIN 19-19: Municipal Banking Services” If delivered by mail, address to: Financial Services Municipality of the County of Kings PO Box 100 Kentville, Nova Scotia B4N 3W3

If delivered by hand, deliver to: Financial Services Municipality of the County of Kings 181 Coldbrook Village Park Drive Coldbrook, Nova Scotia Deposit in the tender box until the RFP closing

This document is not intended to limit a Respondent’s submission, but rather to provide a common framework for the Municipality to assess each proposal in a professional manner, in a demonstrably fair process. Bidders are encouraged to provide any unsolicited information or material not specifically covered in the sections of this RFP. 4 Evaluation Process

All proposals will be evaluated for completeness and suitability for the requirements. Bidders will be contacted, if necessary, to clarify any major items in question. Based on the analysis of the Proposals, a ranking of Bidders will be established. A successful Bidder will be selected and will be recommended to the Municipal Council of the County of Kings. A decision on the successful bid will be based on:

1) Compliance by the Bidder with the Request for Proposal pass/fail 2) Reputation of Service to Existing Customers 25% 3) Technical Qualifications 15% 4) Control Features of Services Provided 15% 5) Transition Plans 5% 6) Service Fees and value 40%



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5 Timeline

This Request for Proposal process will be governed by the following timetable of events. Although the Municipality will attempt to meet all dates, it specifically reserves the right to modify any date(s) at its sole discretion by notifying all Respondents in writing at the addresses noted in the Proposals submitted to the Municipality.

Item Date

Availability of RFP June 3rd, 2019

Proposal Submission Deadline July 5th, 2019

Submission Evaluations July 2019

Preferred Respondent Recommendation to Council July/August 2019

No submission after the Proposal Submission Deadline date of Friday, July 5th, 2019 shall constitute any commitment by the Municipality for any review, evaluation, selection, and announcement or contract finalization. 6 Service Specifications

6.1 General Requirements

1. Proponents must complete “Schedule A: Banking Services Proposal Form”.

2. Proposals must include information on their capabilities and technical requirements for each area of the service specifications in Section 6 and any other services submitted in the Respondent's proposal. Where relevant, proposals must include all taxes, rates and charges applicable at the time the proposal is awarded.

3. For comparative purposes, Respondents are requested to show the cost broken down into the cost of providing services currently in use and the cost of providing each of the additional services of interest to the Municipality. Clearly identify all charges for carrying out each service presented in the proposal as well as any costs associated with training municipal staff. Where no service charge is quoted it is deemed to be free of charge. In addition, please provide details of any cost reductions that the Municipality would achieve by maintaining an agreed upon minimum balance in its consolidated group of accounts.

4. Proposals should include a description of the Respondent's requirements to assume banking services on behalf of the Municipality. State in detail all assumptions and recommendations about the manner in which the Municipality’s banking services will be transferred.



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The tentative date for transfer of accounts and full implementation has been set for on or before October 1, 2019 or as agreed to by the successful Respondent, Municipality and current banking service provider.

6.2 Service Expectations

Credit Facilities Each year the Municipality arranges credit with the Respondent to meet the anticipated needs of the Municipality for one year. The credit facilities normally are as follows:

1. An operating line of credit ($2,000,000); 2. Term loans (as described in Respondent loans below) for anticipated capital projects; and 3. Major credit card expense accounts ($10,000).

Operating Line of Credit

On an annual basis the Municipal Council, if required, approves a borrowing resolution for operating purposes. The amount approved is an estimate of the Municipality’s needs for the year. During the past few years, the Municipality did not require an operating loan due to maintaining a positive cash position.

Term Loans – Capital Projects The Municipality normally requires temporary borrowings for capital projects. Temporary borrowing resolutions approved by the Department of Municipal Affairs support each loan. When debentures are issued at completion of capital projects, any loans outstanding are repaid from the debenture proceeds.

Credit Cards for Expenses Authorized employees are issued credit cards for relevant municipal expenses. It is in the interest of the Municipality to have at least three separate tiered levels of online access, based on the authority of positions within the Municipality. We would consider it an asset to have the option to enable department employees to electronically review and department managers to electronically review and authorize transactions within their respective departments as well as assign these expenses to the appropriate G/Ls prior to electronic submission to our accounts payable department.

Service Level Expectations

It is the expectation of the Municipality that an acceptable level of customer service be maintained for the life of this agreement. We expect a commitment to timely responses to our concerns / inquiries and an assurance that unreasonable delays with respect to the above will not come at a cost the Municipality.



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6.3 Investment Services Interest on Municipal Respondent Accounts

The accounts in Group 1 of the schedule “Current Bank Accounts” in Section 7.1 are to be consolidated for purposes of interest on account or overdraft charge calculations. The accounts in Group 2 of the same schedule are to have interest on account or overdraft charges calculated for each individual account.

Money Market Investments Surplus cash is invested in money market investments for various terms depending on the Municipality’s cash flow needs. Any time surplus cash is to be invested it will be done in accordance with the Municipal Government Act.

6.4 Transaction Services

Account Management and Information Services

The Municipality requires various current accounts. To facilitate account management and meet the information needs of the Municipality, the following are required:

Monthly statements, cancelled cheques, debit memos and credit memos within five (5) business days of the end of each month;

Electronic access to all bank accounts on a real-time basis, as well as access by any other alternate channel which may become available during the life of the agreement;

The Municipality hires the services of a Security Company to take the deposits to the bank. Delivery of reports from the bank will be coordinated with the Security Company.

Account Reconciliation This would allow the Municipality to download transaction information to enable automated bank reconciliation.

Cash Management

Funds Collection Products

Bill Payment Services

This service would allow Municipal taxpayers and water utility customers to make payments on their accounts in one of four ways:

Automated teller machines;

Internet banking on personal computers;

Mobile banking;

Pre-authorized payment;

Telebanking; or



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At teller wickets.

The Respondent would make arrangements with other financial institutions, so that the Municipality’s account can be credited directly at the end of each day. The Municipality presently uses acceptance of payment of accounts, or the APA system, as a method for taxpayers to pay their accounts at any branch of a financial institution. Therefore our tax bill format is a standardized MICR encoded bill that conforms to the current Canadian Payments Association Standards. The Municipality requires the interested supplier of banking services to be knowledgeable of and in compliance with Canadian Payments Association Standards and to be able to deal directly with our printer regarding any standard format questions and tests.

Electronic Transfer Facilities

The Municipality requires the ability to transfer funds between its own accounts via online access.

On Line Balanced Transaction Inquiries

The Municipality requires the ability to access transactions and balances on all accounts on a daily basis via online access. Allows the Municipality’s cashier to accept debit cards in payment for any indebtedness to the Municipality. The supplier of banking services would have to make all appropriate arrangements for both point of sale equipment and appropriate authorizations.

Disbursement Products

Cheques

The number of cheques issued on an annual basis is approximately 2,800. The majority of the Municipality’s suppliers are paid every week by computer-generated cheques issued through either the general operating account or the general capital account.

Direct Deposit (payroll)

Payment of the Municipality’s payroll is handled by direct deposit. The Municipality provides the Respondent with a list of recipients and the Respondent withdraws the total from the Municipality’s general account. The list is forwarded to the Respondent by way of a direct transmission.



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Electronic Data Interchange

The Municipality is currently using the Flat File Format for the electronic payment of Taxes and Water bills. The Respondent will accept payments on behalf of the Municipality, and then the Municipality would benefit from the exchange of electronic information without the rekeying of data. Our Tax accounts are eight (8) digits in the format of 88888888 and our Water Accounts are thirteen (13) digits in the format of 8888888888888. Payments for Taxes and Water billings are sent through separate files. In addition, the Municipality would require the ability to direct payment of supplier invoices.

Payroll Processing

Currently, the Municipality processes its own payroll but uses its current Bank for direct deposit.

Safekeeping and Custody

Marketable investments purchased through the Respondent and electronic back-up and data will require safekeeping services.



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7 Current Services

The Municipality’s banking service expectations consist of the following list of current services provided to the Municipality plus services which may be of interest depending on the cost and quality of the available service.

Currently In Use Of Interest

CREDIT SERVICES

Credit Facilities

Bank Loans

Operating Loans

Credit Cards for expenses

Electronic review and approval of credit card statements INVESTMENT SERVICES

Interest on the Municipality’s Bank accounts

Money Market investments

TRANSACTION SERVICES

Account Management and Information Services

Cash Management:

-- Bill payment services

-- Electronic transfer facilities

Disbursement products – Cheques

-- Direct deposit (payroll)

Electronic Data Interchange

Payroll Processing

Safekeeping and Custody



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7.1 Current Bank Accounts

Group 1 Accounts consolidated for interest & overdraft

General Operating For general operating fund revenues and expenditures. Revenues and expenditures from other operating funds go through this account with settlement made via electronic transfers.

General Capital For capital funds and expenditures.

Greenwood Water Utility Operating For water utility revenue and expenditures

Greenwood Water Utility Capital Water Utility’s capital replacement fund

Regional Sewer Operating For regional sewer revenue and expenditures

Regional Sewer Capital For regional sewer capital funds and expenditures

Capital Reserve Account For reserve funds for general capital

Operating Reserve Account For reserve funds for operations

Group 2 Interest paid directly to each account

Tax Sale Surplus Proceeds received from tax sales in excess of amounts for taxes, interest and expenses to be held for twenty years

5% Open Space Developer contributions toward recreation facilities.

Employee Gift Fund Employee gift fund

Employee Social Fund Employee social fund



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7.2 Annual Volumes

Type of Transaction

Annual Volume

Description

Tax Bills Tax Bill Reminder Notices Water Bills Payroll – total payments Payroll items for 2018/2019

April May June July August September October November December January February March

59,000

7,000

2,900

3,512

286 286 433 264 263 263 263 393 246 259 279 277

Twice per year - May 1 and September 1 due at the end of the month Twice per year - November and March Quarterly for service to March 31, June 30, September 30 and December 31 Processed at the Municipality with payroll distribution service provided by the Respondent (transmitted electronically)



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2018 Client Activity

Debit Cheques

Credit Cheques

EDI'S Internal

Transfers Preapproved

Payments Cash Deposits

($)

Daily Credit Balance ($)

(General operating account)

Total Balance All

Accounts ($)

January 257 157 547 10 775 23,310 9,419,993 40,777,995

February 179 155 541 811 15,864 8,798,333 40,110,297

March 144 146 663 776 42,788 3,575,243 36,073,838

April 284 137 920 771 24,946 1,901,715 34,218,486

May 254 2266 8828 1298 304,171 12,616,797 44,178,089

June 246 789 1231 10 775 53,679 14,681,142 45,212,426

July 301 167 828 10 775 55,598 8,721,772 39,211,887

August 194 205 677 811 43,134 5,396,299 37,106,434

September 194 2010 9568 1273 315,926 18,703,585 49,878,310

October 324 1003 1200 10 782 70,063 19,562,300 52,127,302

November 188 223 1053 813 32,075 14,306,341 45,919,580

December 188 155 768 778 12,503 14,077,413 45,555,949



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8 Schedule A: Banking Services Proposal Form

THE MUNICIPALITY OF THE COUNTY OF KINGS

The Municipality of the County of Kings request for proposals for banking services for a period of five years, reviewed and renewable on an annual basis.

RESPONDENT

ADDRESS

PHONE FAX

NAME OF PERSON SIGNING FOR RESPONDENT

POSITION OF PERSON SIGNING FOR RESPONDENT

I/We, the undersigned, having examined the attached Request for Proposal for Banking Services, and having read, understood, and accepted the conditions outlined in the Request for Proposal, each and all of which form a part of this proposal, hereby offer to supply banking services in strict accordance with the conditions hereto attached and as outlined in this proposal. I/We hereby agree that prices, terms, and conditions of this proposal are to remain firm for the five year term of this proposal and that this offer is irrevocable. SIGNED AT THE ________________ OF ______________________ IN THE COUNTY OF _____________________________ THIS _____________ DAY OF ___________________________, 20_____

(1) ____________________________________________ ______________________________________ WITNESS SIGNATURE AUTHORIZED SIGNATURE

(2) ____________________________________________ WITNESS SIGNATURE

___________________________________________________________________________________________ ADDRESS OF WITNESSES



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9 Appendix A: RFP General Terms and Conditions

The following is the general terms and conditions for the Request for Proposals (RFP) except as modified by addenda issued by the Municipality of the County of Kings (Municipality) prior to the RFP closing date. 1. Notices

1.1. By submitting a response to the RFP, the Respondent represents and warrants that such bid is genuine and not false and collusive or made in the interest or in behalf of any person therein named, and that the Respondent has not, directly or indirectly, induced or solicited any other Respondent to put in a false bid, or any other person, firm or corporation to refrain from bidding, and that the Respondent has not in any manner sought by collusion to secure to the bidder an advantage over any other Respondent .

1.2. If at any time it shall be found that the person, firm or corporation to whom a contract has been awarded has in presenting any bid or bids, colluded with any other party or parties, then the contract so awarded shall be liable to the Municipality for all loss or damage which the Municipality may suffer thereby; and the Municipality may advertise for a new contract and for said labour, supplies, materials, equipment or service. Unauthorized conditions, limitations or provisions attached to an RFP may cause its rejection.

1.3. The Respondent, by submitting a bid, shall represent and warrant that he / she has sufficiently informed themselves in all matters affecting the performance of the work or the furnishing of the labour, supplies, materials, equipment, or service called for in the quotation documents; that he/she has checked their bid for errors and omissions; that the amounts stated in his/her bid are correct.

1.4. The Respondent shall confirm in their submission that the Respondent agrees to abide by the terms and conditions outlined in the RFP. Submissions which do not have this confirmation will not be considered.

1.5. The submission of a bid shall be deemed to indicate that the Respondent has read, understood and considered all addenda issued prior to the closing date and time.

2. Inquiries

2.1. All questions concerning this Request for Proposals shall be directed to Greg Barr, Director of Finance and IT at (902) 690-6136.

2.2. Any attempt by the Proponent or any of its employees, agents, contractors, or representatives to contact members of Municipal Council or Municipal staff not identified in Section 2 of this RFP may lead to disqualification.

2.3. Any changes to this RFP shall be stated in writing by Addenda. All requests for clarification must be received in writing at least four (4) working days prior to the closing date to allow written clarification to be issued to all respondents. Verbal responses are only binding when confirmed by written addenda.



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2.4. Written addenda, in addition to the RFP will be posted on the Municipality’s procurement website – http://www.countyofkings.ca/business/tenders.aspxb. Written addenda will be posted on this site no later than 48 hours before RFP closing. The Municipality will not maintain a plan taker’s list; prospective bidders shall be responsible to review the website for any addenda that have been issued. All potential Respondents who download the RFP documents from the Municipality’s website or a third party website are advised that they should periodically check those websites for any addendums that may be issued. Those websites do not record or otherwise track information on persons downloading RFP documents.

3. Privilege

3.1. The Municipality reserves the right to suspend or cancel any RFP at any time for any reason without penalty.

3.2. The Municipality reserves the right to reject any and all bids or accept any bid or part thereof and may award all or a portion of the work to one or more Respondents.

3.3. The Municipality reserves the right to accept other than the lowest fee offered. 3.4. The Municipality reserves the right to award a contract on the basis of the initial offers

received, without discussions or requests for best or final offers. 3.5. The Municipality reserves the right to waive any informalities, formalities,

technicalities or to reject any or all RFPs based on the Respondent’s lack of proven experience, performance on similar projects or the suitability of proceeding with the execution of the work.

3.6. In the event that a number of suppliers submits bids in substantially the same amount or score, the Municipality may, at its discretion, call upon those Respondents to submit further bids.

3.7. The Municipality reserves the right to inspect any products supplied as a result of this quotation, either during or after manufacture and delivery, and shall be the sole judge as to whether product supplied meets specifications.

3.8. The Municipality reserves the right to reject any Respondent if after an investigation of the evidence submitted by the Respondent fails to satisfy the Municipality that the Respondent is properly qualified to carry out the obligations of the contract and to complete the work contemplated therein.

3.9. No term or condition shall be implied, based upon any industry or trade practice or custom, any practice or policy of the Municipality or otherwise, which are inconsistent with the provisions contained herein.

4. Municipality of Kings Preference

The Municipality of the County of Kings recognizes the importance of buying locally and using local suppliers as much as possible. This factor will always be taken into account when evaluating effectiveness and efficiency. For details on the Municipality of Kings preference,

http://www.countyofkings.ca/business/tenders.aspxb



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refer to Section 16 of the Municipality’s Procurement Policy, which is located on the Municipality’s website:

http://www.county.kings.ns.ca/upload/All_Uploads/Policies/Finance/FIN-05-006%20Procurement.pdf

5. Confidentiality

5.1. RFP documents (including all attachments and appendices) may not be used for any purpose other than the submission of a proposal. By submitting a proposal, the Respondent agrees to public disclosure of its contents subject to the provisions of the Municipal Government Act relating to Freedom of Information and Protection of Privacy. Anything in the submission that the Respondent considers to be “personal information” or “confidential information” of a proprietary nature should be marked confidential and will be subject to appropriate consideration of the Municipal Government Act as noted above.

5.2. The work described in any RFP is being conducted with public funds, and the fees and expenses proposed in the Respondent’s submission will be made public.

6. Law

6.1. The law applicable to the RFP and any subsequent agreements shall be the law in force in the

Province of Nova Scotia. 6.2. In responding to the RFP, Respondents warrant their compliance with all appropriate

Municipal, Provincial and Federal regulations, laws and orders. 6.3. Respondents must agree to indemnify the Municipality and its employees if they fail to

comply, and the Municipality reserves the right to cancel any agreement arising from the RFP if the proponent fails to comply with the above.

6.4. The successful Respondent shall indemnify the Municipality, its officers and employees against and damage caused to the Municipality as a result of any negligence or unlawful acts of the successful Respondent, its employees, agents or manufacturer of the products sold to the Municipality. Similarly, the successful Respondent shall agree to indemnify the Municipality, its officers and employees against any claims or costs initiated by third parties as a result of any negligence or wrongful acts of the successful Respondent, its employees, agents or manufacturer of the products sold to the Municipality.

7. Submission and Evaluation

7.1. Preparation: All expenses incurred in the preparation and presentation of submissions of the response to the RFP is entirely the responsibility of the Bidder. This includes but is not limited to labour, materials and the cost of site visits if applicable.





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7.2. Method of Submission: Hard copy proposals will be the only form accepted along with a supplementing electronic copy via E-mail. Facsimile or telephone proposals will not be considered unless otherwise specified.

7.3. Completeness: It is the Respondent’s responsibility to ensure that their submission is

complete and is delivered to the Municipality by the date and time indicated. Proposals submitted after the above noted time will be returned unopened.

7.4. Changes to Submissions: Changes in a submission will only be considered if submitted in

writing in a sealed envelope, and providing such change is received by the Financial Services Department prior to the established closing date and time. E-mail and fax amendments or withdrawals shall not be accepted. Changes to a submission will not be accepted after the established closing date and time.

8. Quotations

Prices must be in Canadian funds, and shall include all handling, freight, duty, and any other charges, which are applicable at time quotation is awarded. It is the responsibility of the Respondent to find out from the appropriate authorities what rates and charges are applicable to this quotation.

9. Data and Documents

All data materials, and information collected and work products created (i.e. calculations, reports, etc.) either directly for, or in support of the work outlined in the RFP is the property of the Municipality. The Bidder shall not be permitted to publish or in any way use said information without the expression or final approval of the Municipality of the County of Kings.