INDEPENDENT SCHOOL DISTRICT 196
14445 Diamond Path West
Rosemount, Minnesota 55068
Educating our students to reach their full potential
REQUEST FOR PROPOSAL: BANKING SERVICES
A. Introduction:
Independent School District196 (the District) is requesting proposals for banking services from qualified banking institutions located within the district's boundaries. The District is a tax-exempt entity and therefore taxes are not to be included in the proposal fee calculations.
The District administration and a three-member Audit/Finance Committee of the District School Board will evaluate proposals submitted. During the evaluation process, the District reserves the right, where it may serve the best interest of the District, to request additional information or clarifications from institutions. At the discretion of the District, institutions submitting proposals may be requested to make oral presentations as part of the evaluation process.
B. Background Information:
The District serves an area of 110square miles with a population of approximately 147,700. Kindergarten through twelfth grade education, as well as community education services, is provided to the citizens of this District.
The District's fiscal year begins on July1 and ends on June30. The District has an annual budget of $324 million, of which over 70 percent goes to the payment of employee salaries and benefits. There were approximately 5,900 W-2s issued for calendar year 2006.
The accounting and financial operations are centralized in the finance department headed by Stella Y. Johnson. The District utilizes an information services consortium (TIES) for computer services in both the finance and payroll/personnel areas.
C. Proposals:
a. Schedule
Issuance of RFP Monday, March 5, 2007
Proposals Due Monday, March 26, 2007
b. Preparation
Prior to submitting a proposal, each banking institution is required to examine all specifications. Submission of a proposal shall be proof that such an examination has been made and that the banking institution is familiar with all requirements. The District will not be responsible for, nor honor any claims resulting from, or alleged to be the result of misunderstanding by the banking institution. There is no expressed or implied obligation for the District to reimburse responding banks for any expenses incurred in preparing proposals in response to this request.
c. Submission
1. Submit one original completed proposal form that is furnished with this request for proposals with full name and address of banking institution; no facsimile copies will be accepted.
2. All blank spaces on the proposal form must be completely filled in with ink or typewritten without alteration or erasure.
3. Proposal forms must be signed in longhand, executed by a principal duly authorized to enter into a contract.
4. Provide the address of where the District’s armored truck service provider drops off deposits.
5. A hard copy of the completed pricing sheets must accompany the original completed proposal form.
6. A diskette, CD or an email of the pricing file (workbook) must be sent.
7. Provide a list of references that includes:
· school districts
· organizations of comparable size to the District
8. Provide a detail description of your website including the features
9. Provide a copy of your latest audited financial report
10. Proposals will be addressed to
Independent School District 196
Attn: Beth Sullivan, Budget Analyst/MIS Supervisor
14445 Diamond Path West
Rosemount, MN 55068-4199
11. Proposals for Banking Services will be received at the District Office until Monday, March 26, 2007, at 4:30 pm. Proposals received after the stated time may not be opened or considered.
d. Inquiries
All inquiries concerning this Request for Proposal shall be directed to Beth Sullivan, Independent School District 196, 14445 Diamond Path West, Rosemount, MN 55068-4199; telephone (651) 423-7780; e-mail . It is the banking institution’s responsibility to bring all discrepancies, ambiguities, omissions or matters that need clarification to the attention of Beth Sullivan, Budget Analyst/MIS Supervisor.
e. Contract
It is anticipated that the evaluation process will be completed by April23, 2007. Following the notification of the selected banking institution, it is expected a contract will be executed between both parties by July1, 2007.
Services requested are for a five-year cycle, beginning on July1, 2007. However, the services are subject to an annual review and the District reserves the right to terminate the contract.
f. Other
The District reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected.
Submission of a proposal indicates acceptance by the banking institution of the conditions contained in this request for proposal, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the District and the banking institution selected.
D. Scope of Services:
While the exact range and extent of services to be provided will be subject to contract negotiation, the District anticipates that the selected bank shall provide, at a minimum, professional services and dedicated personnel necessary to perform the following services and products.
The District has five separate main accounts that are handled by one bank (General, Payroll, Food Service, Community Education and Employee Flex). A different bank currently acts has the clearing house for our payroll direct deposits.
It is the District's intent to continue to maintain five separate main accounts as listed above along with consolidating the payroll direct deposit clearing account into the payroll main account. Account descriptions are listed in Section E of this RFP and 2006 annual volume history is contained in the pricing workbook. The District expects to earn interest or earning credits on some or all of the five accounts described above.
The District uses an armored truck service to pick up the deposits at each of its’ 31 sites and delivery to the District’s main banking institution along with providing cash vault services. The bank may be required to mail the deposit receipts to the District Office after the delivery of the deposits. The District requires that the main bank be able to cash check(s) (payable to the bank) for the District’s armored truck provider to reimburse them for the cash that was delivered to the sites.
The following are services that the bank will need to provide for some and/or all of the five accounts.
a. Customer Service
The District has been entrusted with public funds and takes this responsibility very seriously and needs to choose a bank that provides the highest quality of service for a reasonable price.
It is imperative that the District has a primary contact(s) at the banking institution chosen from this RFP. If internet access is not available, the District needs to contact the bank by 7:30 a.m. to obtain opening balances for investment needs or has other questions about the District’s accounts. The District will require this primary contact(s) to be familiar with the District’s accounts. Please provide a short summary of what differentiates your services and products from other banking institutions.
b. Depository Services
The District sends, via our armored truck provider, deposits to the bank from all our sites at least weekly. The District requires that all items returned for insufficient funds are presented for payment a second time.
The District receives incoming wire transfers and ACH deposits and will expect the transfers be accepted by the bank on the date the wire/ACH is received.
c. Disbursement Services
The District has paper disbursements from both the general and payroll accounts. The District is interested in having images made of paid checks (front and back) burned to a CD-ROM or available for download.
The District requires that the bank handle requests for wire transfers in an expeditious manner, regardless whether the request is by telephone or via terminal access. The District has ACH payments from the general, payroll and employee flex accounts. The bank must have and maintain ACH originating capabilities.
The District desires the ability to initiate on-line or via the phone stop payments for both the paper disbursements and ACH payments with immediate acknowledgment that the stop payment was accepted.
d. Internet Services
The District requires secure internet services including but not limited to user administration, account balances, reporting (transactional history), statements, wire transfers, stop payments, images and internal funds transfer.
e. Other Services
The District will require that the last day of each month be the statement cut-off day. The District may choose to utilize advance reconciliation services such as positive pay to reduce the possibility of check fraud.
The District desires information about sweep account services to optimize the investment return on account balances. The District may also choose to remote capture deposits and requests information regarding these services and products.
E. Account Descriptions
a. General Checking Account
This account is used for all daily transactions and is to be considered the primary District account. All District disbursements except payroll are made from this account. The average monthly available balance for calendar year 2006 on this account was $690,202. Daily investment activity results in wire transfers in and out to other financial institutions. Investment activity can range from $100,000 to over $10million on a daily basis.
Present collateral pledged for the District’s account totals approximately $8 million. To meet legal requirements, it is possible that for short periods of time collateral requirements could exceed $20million.
Large amounts of funds are received from the State of Minnesota and Dakota County in the form of electronic fund transfers or warrants/checks.
Federal and Minnesota state withholding and sales taxes are paid via ACH transactions along with an ACH for the monthly payment of the District’s procurement card transactions.
b. Payroll Account
This account is a zero balance account, with funds transferring from the general checking account to cover daily transactions.
This account will be used for clearing all payroll checks as well as receiving a file from TIES to process all the direct deposits (the file is compliant with NOCHA standards). Approximately 75 percent of all payroll transactions are handled through the direct deposit method of payment. The District will require a contact name and telephone number from the bank in the event a direct deposit or a check needs to be canceled or stopped.
c. Food Service Account
This account is used for all food service deposits and will require only depository services. There is no disbursement checks needed for this account, however, an investment sweep or internal transfer to the general account will be required. The average monthly available balance for calendar year 2006 on this account was $300,532.
d. Community Education Account
This account is a depository account for credit card payments community education has received from our merchant account at another bank. There is no disbursement checks needed for this account, however, an investment sweep or internal transfer to the general account will be required. The average monthly available balance for calendar year 2006 on this account was $247,945.
e. Employee Flex Account
This account is used to deposit employees’ deductions for their medical and childcare flexible spending accounts. Currently, a transfer from the general account to this account occurs on payroll dates and the company that administers these funds for our employees pulls the funds via an ACH. There is no disbursement checks needed for this account, however, an internal transfer from the general account will be required. The average monthly available balance for calendar year 2006 on this account was $247,945.
F. Basis for Proposal Award
Proposal award will be based upon, but not necessarily limited to, the factors of:
1. quality of services and products
2. price of services and products
3. ability of banking institution to fulfill contract and scope of services
District 196 reserves the right to:
1. award this proposal in part or whole to a single bank
2. reject any or all proposals
3. negotiate with banks after proposals have been submitted
4. waive minor irregularities or discrepancies as defined by District policy and regulations, and
5. cancel contract entered into with the successful bank any time during the life of the contract if the District deems the bank’s services and/or products fail to meet the standards established by the detailed scope of services or the general provisions outlines in this RFP
G. Successful Proposal
This is an informal proposal which will not be read at a public opening however, the information may be publicly reviewed after award. The successful proposal(s) shall enter into a formal contract with District 196.
INDEPENDENT SCHOOL DISTRICT 196
Rosemount, Minnesota 55068-4199
Educating our students to reach their full potential
PROPOSAL FORM: BANKING SERVICES
1. Banking Institution Information-Corporate
Name:Address:
City State Zip
2. Banking Institution Information-Branch in the District’s Boundaries
Name:Address:
City State Zip
3. Primary Contact Person Information (please provide other contact information on a separate sheet as deemed necessary)
Name:E-Mail Address:
Phone Number: / ( )
Fax Number / ( )
4. Authorization
SignatureDate
Title
5. Location for armored truck deposit drop off & check cashing
Address:City, State Zip
6. Check if you have included the pricing sheets
Hard Copy of pricing worksheet must be included with this original proposal formEmail the Excel pricing workbook to
OR
CD or Diskette of Excel pricing workbook (file) with this proposal form
7. Attach a list of references including school districts and other organizations
8. Summary of what differentiates your services and products from others
9. Please provide a detail description of your website including the features
10. Include a copy of your latest financial report
Return by Monday, March 26, 2007 (4:30 pm) to:
Independent School District 196
Attn: Beth Sullivan, Budget Analyst/MIS Supervisor
14445 Diamond Path West
Rosemount, MN 55068-4199
Page 1 of 7 ISD 196
RFP: 2007 Banking Services