regional district okanagan similkameenthe rdos is a local government providing direct and indirect...

RFP: Banking Services Close Date: June 20, 2014

REGIONAL DISTRICT OKANAGAN

SIMILKAMEEN

REGIONAL DISTRICT

OKANAGAN•SIMILKAMEEN

Request for Proposal

BANKING SERVICES

Submission Deadline: June 20, 2014


1. SCOPE OF REQUEST FOR PROPOSAL

a) IntroductionThis Request for Proposal (REP), describes the services sought by the Regional District

Okanagan Similkameen and the Okanagan Similkameen Regional Hospital District, collectively

referred to as the RDOS. It also sets out the RFP process, basic proposal requirements and

the evaluation criteria.

b) Scope of ServicesDetails and specifications of the services are set out in Appendix A. Please view this listing as

a minimum requirement. Proponents are encouraged to propose alternatives that may be

beneficial to the RDOS.

2. PROPOSAL SUBMISSION

Three (3) hard copies of the proposal and one electronic copy must be submitted.

Appendix B — Proposal Submission and Pricing form must be submitted with the proposal.

Submissions are to be clearly marked “PROPOSAL FOR BANKING SERVICES” and be

delivered to:

Sandy Croteau, Finance Manager

Regional District Okanagan Similkameen101 Martin Street, Penticton, BC V2A 5J9Ph: 250-490-4230 Fax: 250-492-0063

[email protected]

For purposes of this Request for Proposal (REP), the above noted will be identified as the

“contact person”.

Submission of proposals by facsimile or email will be considered.

Deadline: Friday, June 20, 2014 at 4:00 pm

Submissions received after the deadline will not be considered.

Please note,submissions will not be opened publicly.

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3. TERMS AND CONDITIONS

a) Ownership of Proposals and Confidential InformationAll documents, including proposals, submitted to the RDOS become the property of the RDOS.The RDOS reserves the right to make copies of all proposals received for its internal reviewand for review by its financial, accounting, legal, and technical consultants.

Proponents should be aware that the RDOS is subject to the provisions of the Freedom ofInformation and Protection of Privacy Act and that this may affect the District’s ability towithhold information and records from disclosure.

All information contained in a Proposal submitted in response to this REP will, in general, beavailable to the public in accordance with the Freedom of Information and Protection of PrivacyAct. The Proposal will become the property of the Regional District and will not be returned tothe Proponent(s).

If the Proponent(s) believe any of the information requested in this REP and provided by themis confidential, then Proponents must declare what information is proprietary by clearly markingthose pages as “CONFIDENTIAL” and provide a rationale as to why it should not be releasedunder “Freedom of Information” legislation.

The rationale for keeping information confidential under this legislation includes:a) Trade secrets of the Proponent;b) Financial, commercial, scientific or technical information, the disclosure of

which could reasonably be expected to result in material financial loss or gain orcould reasonably be expected to prejudice the competitive position of theProponent; or

c) Information the disclosure of which could be reasonably expected tointerfere with contractual or other negotiations of the Proponent.

b) Proponents’ ExpensesProponents are solely responsible for their own expenses in preparing a proposal. If theRDOS elects to reject all proposals, the RDOS will not be liable to any proponent for anyclaims for costs or damages incurred by the Proponent in preparing the proposal, loss ofanticipated profit in connection with a final agreement, costs for returning unopened proposals,or any matter whatsoever.

c) Currency and TaxesPrice quoted is to be in Canadian dollars and inclusive of duty and delivery charges whereapplicable and exclusive of any applicable taxes.

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d) Definition of Contract

Notice in writing to a proponent of the acceptance of its proposal by the RDOS and the

subsequent full execution of a written agreement will constitute an agreement for the goods

and/or service contained in this solicitation. No Proponent will acquire any legal or equitable

rights or privileges relative to the goods and/or services until the occurrence of both such

events.

e) Confidentiality of Regional District Information

Information pertaining to the RDOS obtained by the Proponent as a result of participation in

this project is confidential and must not be disclosed without written authorization from the

RDOS.

f) AddendaInquiries must be communicated to the contact person at least five (5) business days prior to

the Request for Proposal closing deadline.

Changes to the REP document may only be made by the issuance of Addenda by the RDOS.

Responders are required to notify the contact person of any ambiguities or omissions in this

REP document. Notices must be in writing and delivered in sufficient time for the RDOS to

issue an addendum. Addenda may also be issued during the Proposal period in response to

queries received from Proponents.

Addenda will be in written form. Oral explanations or instructions will not be binding on the

RDOS.

g) Evaluation

The RDOS intends to evaluate proposals based on the evaluation criteria outlined in Appendix

Cof this RFP.

The RDOS intends to select the proposal that it considers most favourable to the District’s

interests. The RDOS considers that “Best Value” is an essential part of engaging a service

provider and therefore the RDOS may prefer a proposal with a higher cost, if the RDOS

considers that proposal offers greater value and better serves the District’s interest.

The RDOS may establish an evaluation committee to evaluate proposals and make

recommendations.

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During evaluations, the RDOS may seek clarification from a proponent respecting its proposalto assist in the evaluations. The top three ranking proponents may be invited to provide anonsite demonstration of their available services.

h) NegotiationThe RDOS may choose to negotiate with a preferred proponent, or any proponent, on anyaspect of their proposal, including changes to the service to be provided and to price.

4. PROPOSAL CONTENT

a) Covering LetterA covering letter signed by an authorized representative of the proponent, outlining theproposal and stating that the information contained in the proposal accurately describes theservices to be provided should be included.

b) Proponent’s Profile and ReferencesA description of the proponent’s organization, size, services provided, areas of expertise andlength of time in operation must be included as well as a list of references including any currentlocal government references.

c) Services and SchedulingProposals must provide an outline of a proposed method of service delivery and must providea typical timeline for implementation (ie start up, information gathering, site visits, preliminaryplanning, etc). In addition, the proposal must indicate requirements expected from the RDOSwith respect to staff resources.

d) Fees and DisbursementsProposals must set out all fees and disbursements to be charged to the RDOS for theprovision of services and shall break out such amounts for each service component, whereapplicable.

f) System/Technical RequirementsAll software and hardware requirements must be detailed.

5. ACKNOWLEDGEMENT AND UNDERSTANDINGIn submitting a proposal, the Firm acknowledges and agrees that it has read, understood andagreed to all terms and conditions described in this document.

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APPENDIX A

The RDOS is a local government providing direct and indirect services to the South Okanagan

and Similkameen Valley. It has a service area of approximately 10,400 km2 and serves about

90,000 residents. The RDOS employs approximately 60 full time employees.

Financial statements for previous years can be viewed on our website: www.rdo.bc.ca

The District maintains two accounts; a General account for the Regional District of Okanagan

Similkameen and a General account for the Okanagan Similkameen Regional Hospital District.

The RDOS typically maintains average monthly bank balances of between $500,000 - $2.5

million dollars in the Regional District General account and $2 - $3 million in the Regional

Hospital District account.

Generally the Regional District invests in pooled investment funds managed by the Municipal

Finance Authority but may also invest in highly liquid, secure, investment grade securities

issued by Canada, a Province or a chartered bank.

The average monthly volumes of the Regional District General account are outlined below:

Transaction Type Number Value

Deposits 50 $2,250,000

Cheques Issued 350 $2,500,000

Electronic Funds Transfer (Vendor Pmts) 130 $1,200,000

Electronic Payroll Transfers 230 $275,000

Debit Card Transactions 75 $40,000

Credit Card (Visa/MC) Transactions 175 $60,000

lnterbank Transfers (Electronic Customer 80 $45,000Pmts)Preauthorized Monthly Payments 285 23,000

The Regional Hospital District General account has very few transactions in a year.

Transaction volumes for the Regional Hospital District average 2 or 3 per month, almost

exclusively EFT debits and credits for debt payments/loan transactions with the Municipal

Finance Authority.

The RDOS is seeking to maximize the interest rate paid on current account balances, reduce

Visa/MasterCard/debit card transaction costs, reduce transaction processing costs and

maintain the flexibility of payment options for its customers. The RDOS uses electronic

interfaces to transfer information between itself and its banker as much as possible, including

daily deposit transactions, consolidated direct payroll deposit and pre-authorized customer

debits.

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The District currently uses web based bank software to access bank transactions online, andrequires online access for stop payments, interbank transfers, daily transaction details, balancereporting and the ability to search cleared items. Weekly cutoff bank statements for theRegional District account and monthly bank statements for the Regional Hospital Districtaccount must be available online.

The proposal must cover both an initial three year term as well as an optional additional twoyears, and all charges must be itemized. If there is no charge for a service, that must also bespecified. If the list of charges/fees would remain the same through the extra two years, thenplease indicate this and if not, then please identify all charges in the additional two years.

The REP must provide a means for the RDOS to determine the complete bank costs it wouldbe paying.

The REP shall disclose the interest rate and method of calculation to be paid on RegionalDistrict deposits and the interest rate to be charged on Regional District borrowings. Proposalsshould indicate rates taking into consideration the probable total pooled funds on deposit forboth the Regional District and Regional Hospital District accounts.

REQUIREMENTSIf you are unable to provide any of the following, please specify which item and, if applicable,how you would meet the same need in a different fashion.

a) DepositsThe RDOS receives payments by a variety of payment methods. Customers have a choice ofpaying at the District office, directly at their bank!ATM, or by telephone or Internet banking.

Deposits, including cash and cheques, are made daily to the bank. The RDOS requiresdeposit books imprinted with the account name and number be provided by the proponent.The RDOS requires access to secured depository facilities in the City of Penticton.

The RDOS uses Moneris to accept debit and credit cards. The District uses point of saleterminals at 5 locations for accepting payment by Visa, MasterCard or debit card transactions.The District also accepts customer credit card payments directly via its own internet site. TheRDOS expects qualifying banks in this tender process to include their point of sale servicedetails in the tender. The Regional District reserves the right to enter into an agreement with analternative vendor for this particular product if it deems the cost and program to be a better fitfor the RDOS.

The RDOS requires the ability to debit and credit the accounts of pre-authorized payment andonline banking customers. The RDOS has a pre-authorized and monthly payment plan for itsutility customers. The RDOS takes full responsibility for enrolling customers in these

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programs, and for their administration. The application must be able to generate the file two

ways. The majority of the payments are processed through an electronic “pull “file created

through the RDOS Vadim billing system. Other transactions may need to be created manually

on an individual basis for specific accounts and the RDOS requires the tool to create these

transactions to be provided by the financial institution. For both methods of creating batches,

the RDOS upload the electronic text file to the institution, which then validates the file, advises

the RDOS of any errors for correction, collects the funds and deposits them. Canadian

Payment Association formats and rules apply to these transactions. The RDOS requires full

reporting of the processing results in an electronic format suitable for data manipulation.

Confirmation of pull files requests and electronic deposit transactions are required on a same

day basis. Detailed payment information related to NSF payments will be available online

within four working days.

The RDOS expects that deposits will be backdated to the actual date of deposit to ensure that

if deposits arrive late in the business day, they will not be considered as deposited on the

following business day.

Deposit bags will be provided by the successful proponent.

The RDOS has coin deposits from our transit system. Please indicate whether coin-rolling

services are available and outline any additional fees that may be related to that service.

Excellent customer service in the form of timely investigation of missing deposits and

responses regarding NSF cheque and chargebacks is expected.

b) Payments

The Regional District prints its own cheques and issues primarily in Canadian funds. Very

infrequently, the RDOS issues payments in US Funds. The financial institution must describe

cost effective options for processing these items. The Regional District prefers not to maintain

a U.S. chequing account.

The RDOS requires that copies of all cleared cheques (scanned images of the front and back

are acceptable) be available on line on request.

Some vendors are paid by EFT. Please confirm your ability to continue to process such

payments and any specific requirements to facilitate this type of payment. Proponents should

describe options for transmitting vendor payments electronically including how attachments or

vendor statement information would be transmitted and the cost.

Proponents are encouraged to identify any resources available to efficiently expand this

service.

The RDOS expects timely investigation and return of counterfeit notes or fraudulent cheques.

7


The RDOS processes its payroll through a web based, electronic direct deposit system on a biweekly basis.

The RDOS makes infrequent payments by money orders, certified cheque, wire transfer orbank draft in Canadian and US dollars. Please specify all costs related to processing thesetypes of payments.

c) On line BankingThe RDOS requires, at minimum, the following functions to be available through onlinebanking:

• View account details for multiple accounts• View images of cleared cheques• On line transfers between RDOS accounts• On line remittance payments (ie WCB, GST, PST)• Transfers between RDOS accounts• Multiple users with varying security levels• Stop payment capabilities

• Ability to download account transaction data into Excel format

The RDOS currently makes and receives payments through electronic banking. Pleaseprovide details of the technical requirements regarding file type/formatting required.

Please provide a summary of the security systems in place to protect sensitive and confidentialdata.

d) ReportingThe RDOS uses its bank’s web based software to create an ASCII or CSV format file ofcheques issued data, which is imported into its Vadim financial system for automation of themonthly bank reconciliation. The successful proponent must be able to provide a similar uploadof cheques issued data.

In addition to viewing and exporting the account transactions through the online reporting, theRDOS requires electronic copies of the bank statement on a monthly basis including thecleared cheque images, sorted in sequential cheque number order. These statements arerequired within ten (10) working days following the end of the month.

e) Purchasing CardsThe RDOS uses a Purchasing Card program with approximately 50 cardholders. Monthlypurchase volumes average of $40,000 per month. The RDOS does not guarantee thesevolumes. The RDOS expects the successful bank in this tender process to include theirpurchasing card program details in the tender. It is our intent to move to a more automatedprocess for entering purchasing card transactions. The ability to provide on-linereporting/reconciliation for cardholders and administrators will be a requirement for the

S


purchasing card system. The Regional District reserves the right to enter into an agreementwith an alternative vendor for this particular product if it deems the cost and program to be abetter fit for itself.

f) InterestThe RDOS expects the interest to be calculated using the daily balance of all Canadian dollaraccounts. The interest amounts for the Regional District and Regional Hospital Districtaccounts will be calculated separately and deposited into the respective main accounts on amonthly basis.

Please indicate the benchmark used to compute the interest amount paid on the dailybalances.

g) LendingThe RDOS may require a line of credit from time to time. Separate annual operating lines of

credit may be required of up to $2,000,000 for each of the Regional District and the Regional

Hospital District. Please outline the terms and conditions available to accommodate those

needs.

h) Customer ServiceThe RDOS requires a designated on-site Account Representative based in the Penticton office

authorized to handle all customer service issues related to the RDOS accounts. The

representative will be our main point of contact for any banking related issues.

Due to our structure, we need to periodically change the signing officers. Please indicate your

procedure for facilitating changes to signing officers. Preference will be given to proponents

who can arrange to attend the RDOS offices for this event.

Please provide service level or response time commitments you will make in regard to

providing responses to issues/requests.

Any other services not specifically requested but offered by the proponent that could increase

the efficiency of our banking functions should also be outlined.

I) Implementation PlanPlease provide a detailed implementation plan outlining the steps required for completing the

transition, along with the resources available that you, as the successful proponent will

dedicate and the estimated resources expected from the RDOS. The plan must also include

any technical or computer resources required

j) Requirements SummaryTable 1 provides a summary of the Services required. Proponents are urged to complete thelast three columns of the Table and submit with their proposal.

9

RFP: Banking Services Close Date: June 20. 2014

APPENDIX—B

Proposal Submission and Pricing FormBANKING SERVICES

CLOSING DATE AND TIME: FRIDAY JUNE 20. 2014 AT 4:00 PM

This form must be completed and signed and included with the submission.

The undersigned confirms that their submission is in response to the Request forProposal for Banking Services, and provided the Proposal is accepted within ninety (90)days from the closing date, the undersign agrees, on behalf of the company notedbelow, to supply the goods and services listed for the service period*, at the quotedprice**, under the instructions, terms and conditions set forth in this RFP document, theProponent’s proposal, any and all addendum, which shall together form the Agreement.*Service period is for a three year term, with the option to renew for an additional twoyears upon the mutual agreement of both parties.**Quoted Price — please attach a detailed listing of fees payable by the RDOS forservices required and interest payable to the RDOS on deposits and investments asoutlined in the RFP

Firm Name:

Address:

Contact Name:

Phone Number:

Fax:

Email:

Authorized Name Authorized Signature

Title Date

10

RFP: Bnkine Servkes Close Date: June 20. 2014

APPENDIX-C

Deposits 5PaymentS 5

On Line Banking 5Reporting 5Lending 5

TOTAL

EVALUATION CRITERIA FOR BANKING SERVICES RFP

CRITERIAFee Structure/Overall Cost

Customer Service

Interest

Implementation Plan

WEIGHT25

20

20

10

Poor0.25

Average

0.50Good0.75

Exceptional1.00

Total(Max 100)

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regional district okanagan similkameenthe rdos is a local government providing direct and indirect...

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