REQUEST FOR PROPOSAL

BANKING SERVICES

In an effort to improve treasury management and take advantage of new banking technologies

in the most efficient and cost effective manner available, Roy City (“the City”) is currently

seeking proposals from local qualified financial institutions to provide full, integrated banking

services to the City. The City intends to maintain all banking services with one financial

institution to maximize cash flow and minimize administrative costs. As such, banking services

proposals must include services for the account system outlined.

The start date of the banking services agreement will be January 1, 2021.

Proposals shall be submitted no later than 5:00 p.m. on September 25, 2020 via email to Camille Cook, Management Services Director, ccook@royutah.org or mailed to:

Roy City Corporation Attn: Camille Cook 5051 South 1900 West Roy, Utah 84067

The City reserves the right to reject any and all proposals, cancel all or part of this RFP, waive

any minor irregularities and request additional information from respondents. The City will not

reimburse the respondents to this RFP for any expenses incurred in preparing the proposals, or

for the attendance at any meetings related to the proposal process. This RFP does not obligate

the City to accept or contract for any services. Bank selection will be made based upon criteria

detailed in the proposal specification document, the abilities of the financial institution and

costs of services, and in the sole judgment and opinion of the City.

The City has made every effort to include enough information in this RFP for a financial

institution to prepare a responsive proposal. Respondents are encouraged to submit the most

comprehensive and competitive proposal possible. Submission of a proposal indicates

acceptance by the financial institution of the conditions contained in the RFP, unless clearly and

specifically noted in the proposal submitted, and confirmed in the contract between the City of

Roy and the financial institution selected. All proposals shall contain the requested information

in the RFP and cost of services attachment. If the bank has additional charges other than those

outlined in the proposal, they should be added. Each financial institution is encouraged to

submit information outlining other security and/or cost-saving services that may be worthy of

consideration. All questions regarding this proposal must be emailed to Camille Cook,

Management Services Director, ccook@royutah.org.

GENERAL INFORMATION

The City requires depository services for the bank accounts as described below. The City

anticipates the proposed banking services be compensated on a fee for service basis via a

monthly account analysis that uses earnings credit to offset fees. Monthly account analysis

reports must be available by hard copy, via the online banking service, and in electronic format.

Certain accounts must be interest bearing and will not be included in earnings credit analysis.

The City utilizes two checking accounts. One account encompasses all aspects of banking for

Roy City, and the other, all aspects of banking for the Redevelopment Agency of Roy Utah

(“RDA”). Most deposits, accounts payable, payroll, wires, and ACH transactions are for Roy City

and are in the primary account. The City also maintains a savings account with a minimal

balance.

The City currently utilizes ACH direct deposit for one hundred percent of its employee payroll

transactions for approximately one hundred and sixty five (165) full time employees and up to

one hundred and fifty (150) part-time and seasonal employees. Payroll is processed bi-weekly

and transmitted to the financial institution via the internet prior to 4:00 p.m. the day before

payday. Caselle software creates an export file which is imported into the financial institutions

internet site by way of NACHA. Deposits must be made into the employee’s accounts by 9:00

a.m. on payday. Any deviations from these time limits must be stated in the bid.

The City processes a direct deposit batch for the payment of residential and commercial utility

bills. This is currently around the 25th of the “odd” numbered months, but will begin occurring

monthly in early 2021. Other ACH transactions such as federal tax deposits (EFTPS) flow

through the operating account each month.

The City accepts VISA, Mastercard, and Discover for most city services in-person and online.

Currently there are multiple physical locations and online sites that accept credit cards.

Merchant services are provided outside of this banking services contract.

The City shall have wire transfer capability to allow the City to wire funds to or from various accounts with its account via the City’s computer system. Funds are wired online on a repetitive basis to The Utah Public Treasurer’s Investment Fund, ICMA Retirement, and Utah Retirement System. Wire transfers received on a repetitive basis include weekly receipt of ambulance payments, Medicare B payments, tax revenue from the Public Treasurer’s Investment Fund, and draws from the online bill pay host bank.

The financial institution must have the capability to enable the City to perform on-line stop

payments and confirmation of stop payments. The stop payment must be permanent and have

no expiration unless revoked by the City. The search for checks should be available by check

number, date, and status. The City will provide checks and the financial institution will supply

deposit slips printed in duplicate.

The City requires daily online banking access to the activity of its bank account, not only for the purposes mentioned above, but to receive information on the following:

Beginning balance, summary debits, summary credits, and ending balance

Detailed debits with description

Detailed credits with description

Daily ACH and wire with full addenda information

Detail of miscellaneous charges/credits applied to the account

Check imaging

Monthly statements This information shall be available online no later than 7:00 a.m. Mountain Time. Preference

will be given for the ability to download statement information in a csv or excel format.

The City requires a sweep feature to the operating account in order to permit excess balances

remaining in the account to be automatically invested in a money market or government fund

on an overnight basis.

The City from time-to-time will deposit checks that will eventually be returned. The checks must be sent through a second time by the bank before they are charged to the account. Returned checks must be emailed to the City Treasurer on the day the checks are debited to the account. Although it is not expected to be needed, please provide information on overdraft protection plans that would cover the City’s accounts. If this feature is not necessary because of protective features in another plan, please provide that information as well. The City uses FedEDI service to automatically search their FedACH transactions for financial Electronic Data Interchange (EDI) messages and other important information. The service translates EDI payment and remittance information into human-readable reports or makes the information available as a machine-readable file. The service can distribute this information to business customers so they are able to match ACH payments to documentation such as invoices. The service also searches for other important ACH data such as returns then compiles the information into automatically-generated human-readable reports.

The City does not require any Lockbox Services, Safety Deposit Boxes, or Vault Services at this

time.

Additional information such as the latest CAFR, Budgets, etc., may be found on the Roy City

website at https://www.royutah.org/, Click on “Transparency” to access documents.

PROPOSAL SPECIFICATIONS

Schedule

Release and Publication of Proposal Request 08/31/2020

Deadline to submit questions 09/18/2020

Proposal Due Date 09/25/2020 – 5:00 p.m.

Evaluation of Proposals 09/28/2020-10/16/2020

Interviews with Selected Financial Institutions 10/19/2020-10/30/2020

Recommendation of Selection to City Council 11/17/2020

Implementation 01/01/2021

Questions

Questions regarding the RFP must be sent via email to Camille Cook, Management

Services Director at ccook@royutah.org no later than 5:00 p.m. on September 18, 2020.

All questions will be answered via email.

Minimum Qualifications

1. A federal or State of Utah chartered institution.

2. A member of the Federal Reserve, with access to all services.

3. Have deposit insurance under the provisions of the Federal Deposit Insurance Act.

4. In compliance with all applicable laws, rules, regulations, and ordinances of Roy City, the

State of Utah, and the United States.

5. A qualified depository under the Utah Money Management Act.

6. Experienced in providing banking services to large organizations, preferably other

municipalities.

7. Capable of providing the services sought by the City.

Instructions

1. Please complete the Banking Services Proposal Form by answering all questions.

Emphasis should be placed on completeness and clarity of content.

2. Complete Attachment B by entering all fees/costs on the Bid Sheet form.

3. Submit the Banking Services Proposal Form including any necessary attachments,

Attachment B, and the following items:

a. Proof of current standing as an eligible public depository

b. Financial statements past two years (or website link to view/download)

c. Copy of bank’s collateral custodial agreement

d. At least two public entity references

Banking Services Proposal for Roy City

ATTACHMENT A – BANKING SERVICES QUESTIONS/STATEMENTS

Please provide your responses to the items below in the order presented. 1. Provide the names of individuals, with phone numbers and e-mail addresses, who will be

working on the proposed services and their area of responsibility including their specific experience relative to the request for proposal requirements.

2. Submit at least three (3) references (preferably from current local government customers) who can attest to the financial institution’s experience as it relates to providing banking services. The references must include contact name, title, address, e-mail address, telephone number, and services used.

3. Describe your institution’s community participation/reinvestment program within the City limits including your Community Reinvestment Act (CRA) rating.

4. Describe your institutions customer service philosophy and organizational structure.

5. Provide the following reports and information about your institution: a. Monthly account analysis b. Monthly bank statement c. Most recent financial statement d. SEC and/or Moody’s credit rating or comparable rating

6. ACH services

a. What is the recommended service delivery method (i.e. direct transmission, on-line, other)?

b. Are there specific hardware/software requirements? c. Does the bank provide training, if needed? d. What are the security measures for ACH initiation/origination and ACH reception (ACH

filters and blocks). e. Does the software offer the ability to manage security and access levels by user? f. Does the bank provide automatic file receipt acknowledgements? If so, how? g. What are the hours of the ACH unit? h. What are the cut-off times for customer initiation of ACH transactions? i. What are the pre-notification policies and costs? j. Can the bank automatically redeposit items returned for insufficient or uncollectible

funds? k. How does the bank handle file, batch, and item reversals and deletions?

7. Errors and adjustments

a. Describe your adjustment process for resolving deposit discrepancies. b. Do you adjust the deposit amount or process an adjusting debit or credit?

8. Describe how inquiries requiring research and adjustments are handled by the institution. Are there established turn-around times? If yes, specify.

9. Described NSF or Returned Item processing procedures, fees or other related services available. The City will require redepositing “NSF” or “uncollected funds” returned items so that they may be presented a second time prior to being charged back.

10. What security features are in place to minimize the risk of unauthorized transactions?

11. Describe any enhancements, technological or otherwise, that we should consider to improve operational or cash management efficiencies.

12. Discuss the use of the internet in providing services to your municipal/business customers.

13. Describe your institutions formal disaster recovery plan and how quickly back-up facilities will be activated.

14. Provide a detailed description of the implementation process, including testing and a sample implementation schedule.

15. List the address and hours of operation at our nearest branch office and also the hours of operation for non-branch services.

16. Discuss any special conditions, other fees, other services, or deviations from the required scope.

Services

Please describe under separate attachment(s) the bank’s following services/policies:

1. Availability of funds policy/schedule

2. ACH Services

3. Remote Deposit Services

4. Online Banking Services

5. Positive Pay Service

6. Stop Payment Service

7. Any other services the bank may believe worthy of consideration

ATTACHMENT B – BID SHEET

Volumes indicated on the Bid Sheet are estimates. Costs not included on the Bid Sheet, but

which the financial institution proposes to charge, must be individually itemized and thoroughly

explained. Bid Sheets must be executed by an official of the financial institution in a position to

commit the institution to provide the services in accordance with these terms and conditions.

Item

Unit Price

Estimated Monthly Volume

Monthly

Cost

Explanation Ongoing services:

Daily cash/check deposits 23

Merchant credit card settlements 230

Wire transfers in:

Utility direct pay items (bi-monthly) 510

Public Treasurer’s Investment Fund 4

On-line bill pay (Xpress Bill Pay) 4

ACH transfers in:

Medicare payments 5

Ambulance collections 5

Wire transfers/ACH out:

Payroll direct deposit items 700

Retirement Plans 6

Payroll tax, EFTPS, Insurance ACH 14

Public Treasurer’s Investment Fund 2

Other withdrawals:

NSF checks 15

Monthly vendor fees (auto pay) 2

On-line banking:

Image retrieval – paid/deposit item 4

Stop payment 2

Fees, if applicable:

Fed EDI reporting

Re-deposit returned item

Check/deposit detail returned with statement

ATTACHMENT B – BID SHEET, CONTINUED

Notes or Item Description:

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

Service charge credit formula, if applicable:

______________________________________________________________________________

Interest formula, if applicable:

______________________________________________________________________________

The undersigned, an institution or firm maintaining a branch/office operation within the city limits of Roy, Utah, submits the following proposal for the City’s banking services for the period January 1, 2021 through January 1, 2026.

Authorization:

___________________________________ _________________________________________ Institution Name Date ___________________________________ _________________________________________ Mailing Address Phone Number ___________________________________ ___________________ ________________ City, State, Zip Email ___________________________________ ___________________ ______ ______________ By Title ________________________________________ Signature

ATTACHMENT C – BANKING SERVICES AGREEMENT

Financial Services Agreement

This Agreement, entered into and effective this ____ day of __________, 2020 by and between Roy City

Corporation, a municipal corporation of the State of Utah, hereinafter “City”, and

_____________________ hereinafter “Financial Institution.”

Witnessed:

Whereas, City has established a need for certain professional services; and

Whereas, Financial Institution has proposed to provide such professional services

Now, Therefore, in consideration of the mutual covenants and agreements stated herein and of the

payments for services hereinafter described, the parties hereto do mutually agree as follows:

1. Performance of Services. City hereby agrees to engage Financial Institution, and Financial

Institution hereby agrees to provide financial services as specified in Exhibit A attached hereto and

incorporated herein.

2. Time of Performance. This Agreement shall commence on the effective date of this agreement

and shall continue until terminated as hereinafter provided.

3. Compensation. The City shall compensate Financial Institution for services provided under this

agreement in accordance with Exhibit B which is attached hereto and incorporated by reference herein.

4. Termination of Agreement for Cause. If, through any cause, Contractor shall fail to fulfill, in a

timely and proper manner, its obligations under this Agreement, of if Financial Institution shall violate

any of the covenants, agreements of stipulations of this Agreement, City shall have the right to

terminate this Agreement by giving written notice to Contractor of such termination and specifying the

effective date thereof. In the event of termination for cause, Financial Institution shall be entitled to

receive only the pro rata share of the total compensation which is equal to any satisfactory work

completed as of the date of termination.

5. Termination for Convenience. The City or Financial Institution may terminate the Agreement at

any time by providing 60 day advance written notice to the other party. If the Agreement is terminated

by City as provided herein, City shall pay Financial Institution a percentage of the established fee for

work performed up to the time of such termination. Said percentage shall be based on the ratio of work

completed to the total work required.

6. Non-assignability. Financial Institution shall not assign any interest in this Agreement and shall

not transfer any interest in the same (whether by assignment of novation) without the prior written

consent of the City thereto.

7. Interest of Contractor. Financial Institution covenants that Financial Institution presently has no

interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or

degree with the performance of the services hereunder. Contractor further covenants that in the

performance of this Agreement no person having such interest shall be employ. The parties agree that

Financial Institution is free to accept any other employment which does not conflict with their

representation of the City. If such employment, in the City’s opinion, does conflict with Contractors

duties hereunder, and such conflict cannot be resolved to the City’s satisfaction, the city will have the

right to terminate this agreement. Financial Institution agrees that it has a duty to inform the City of any

potential conflicts of interest as soon as possible so that such conflicts can be confronted and resolved.

8. Confidentiality. Unless otherwise required by law or agreed to by the parties, all dealings of the

parties hereto are confidential, and no report, data, information or communication developed, prepared

or assembled by Financial Institution hereunder shall be revealed or made available to any person or

entity other than the City, without the City’s permission except as provided by law. Should any request

be made of Financial Institution for confidential information by a third party, Financial Institution shall

notify the City in writing immediately, and shall cooperate with the City in responding to such request.

Financial Institution shall return all confidential information in its possession to the City upon

termination of this Agreement or upon request at any time. Financial Institution shall certify in writing

that all confidential information has been returned to the City upon request.

9. Indemnification Financial Institution agrees to indemnify, save harmless and defend City and its

elected officials, officers, employees, authorized agents and volunteers from and against any and all

claims, damages, demands, actions, costs and charges arising out of or by reason of Contractor’s

performance or failure to perform this agreement.

10. Attorney’s Fees. In the event either party institutes litigation to enforce its rights under this

Agreement, the prevailing party in such litigation shall be entitled to an award of its reasonable

attorney’s fees and costs.

11. Notice. Any notice, or notices, required or permitted to be given pursuant to this Agreement,

may be personally served on the other party by the party giving such notice, or may be served by

certified mail, return receipt requested, to the following addresses:

Attention: Roy City Management Services Director

5051 South 1900 West Roy, UT 84067 Telephone (801)774-1032

Financial Institution: _________________

_________________

_________________

12. Independent Contractor. Contractor is independent of the City and shall perform all services

according to its own methods without being subject to the control of the City except as to the results

obtained. The City shall not carry Worker’s Compensation insurance or any health or accident insurance

to cover Contractor. The City shall not pay nor be responsible for any contribution to Social Security,

unemployment insurance, federal or state withholding taxes, nor provide any other contributions or

benefits which might be expect in an employer-employee relationship. Contractor, as an independent

contractor, shall provide and be responsible for any and all of Contractor, and its employees or agents,

Worker’s Compensation contributions, federal and state withholding, unemployment compensation

contributions and social security tax withholdings, etc.

13. When Rights and Remedies Not Waived. In no event shall any payment by City hereunder

constitute or be construed to be a waiver by City of any breach of conditions or any default which may

then exist, or while any such breach or default shall exist, in no way impair or prejudice any right or

remedy available to City with respect to such breach or default.

14. Integrated Document. This Agreement embodies the entire agreement between City and

Contractor for the scope of services and the term and conditions. No verbal agreements or

conversations with any officer, agent or employee of City prior to the execution of this Agreement shall

affect or modify any of the terms or obligations contained in any documents comprising this Agreement.

Any such verbal agreement shall be considered as unofficial information an in no way binding upon City.

15. Compliance with Laws. Contractor shall comply with all laws, ordinances, regulations, rules,

etc., of the federal, state and local government in connection with the performance of this Agreement.

16. Severability of Provisions. If any provisions of this Agreement are held invalid, the remainder of

this Agreement shall not be affected thereby if such remainder would then continue to conform to the

terms and requirements of applicable law.

17. Modifications. No oral modifications or amendments to this Agreement shall be effective, but

this Agreement may be modified or amended by written agreement.

18. Governing Law. This Agreement, its terms and conditions, shall be governed by Utah law.

Jurisdiction and venue for any litigation concerning this Agreement shall be in state or federal courts

located in the State of Utah.

In Witness Whereof, the parties hereto execute the foregoing instrument as of the day and year first

above written.

Roy City Corporation:

__________________________

Matt Andrews, City Manager

Attest:

__________________________

Morgan Langholf, City Recorder

Financial Institution:

__________________________

Authorized Representative