RFP 13-012Page 1 of 26
Request for Proposal
ShawneeMission Unified School District No. 512
ALL RESPONSES MUST BE DELIVERED IN SEALED ENVELOPES TO:ShawneeMission Unified Schools
Purchasing Department
ATTN: RON ROE
7235 Antioch
ShawneeMission, Kansas66204Front of envelope must be marked:
RFP #13-012, BANKING SERVICES
FAXED RESPONSES ARE NOT ACCEPTABLE / Date: March 5, 2013 RFP 13-012
For: BANKING SERVICES
Proposals will be accepted until:
Date: March 26, 2013
Day: Tuesday
Time: 2:00 p.m.
Proposals will not be publicly opened at the above due time and date. Only the names of the responding offerors will be announced. Content of proposals will be available for review after contract award.
Refer Inquiries To: RON ROE
Fax: (913) 993-6225
Telephone: (913) 993-6434
E-Mail address: / Name and Address of Offeror:
GENERAL: Proposals are subject to the attached Standard Terms and Conditions. Any questions regarding specifications or proposal procedures should be directed by email to Ron Roe, Manager of Purchasing Services no later than Tuesday March 26, 2013 @ .
SCOPE OF PROPOSED CONTRACT: ShawneeMissionSchool District is seeking proposals for Banking Services.
SHAWNEE MISSION PUBLIC SCHOOLS
(UNIFIED SCHOOL DISTRICT NO. 512)
JOHNSON COUNTY, KANSAS
REQUEST FOR PROPOSAL
FOR
BANKING SERVICES
RFP – 13-012
HOWARDMcEACHENADMINISTRATIONCENTER
7235 ANTIOCH
SHAWNEEMISSION KS 66204-1798
March 5, 2013
1.00Introduction
1.01Background
The Shawnee Mission Public School District No. 512 (hereinafter "the District") is requesting sealed proposals from qualified financial institutions (hereinafter "Banks") to be the primary depository of public funds for the District. The objective of this proposal is to obtain a banking services agreement with one bank for five fiscal years beginning July 1, 2013.
Banks wishing to respond to this RFP should note that the District wishes to maximize interest revenues, net of bank fees. However, security of the underlying funds is the foremost consideration.
All banking agreements must comply with all federal regulations and Kansas Statutes governing banking and investing activities of school districts, including K.S.A. 9-1401 to 9-1406, inclusive, and K.S.A.121675 and 12-1676, all as amended.
The successful bidder bank must pledge qualified securities listed in K.S.A. 9-1402, as amended, equal to 100 percent of the deposits in excess of FDIC coverage, and securities pledged must be at market value. The successful bidder bank must provide a detail list of the pledged securities on a monthly basis.
1.02Proposal Instructions
To be considered, three copies of your proposal, along with a copy of the Bank's audited annual report for the last two years, must be received by 2:00 p.m. on March 26, 2013. The proposer must deliver the completed proposal in a sealed envelope to the following address:
Ronald Roe, Manager of Purchasing Services
ShawneeMissionSchool District
Howard McEachen Administrative Center
7235 Antioch
ShawneeMission, Kansas66204
RE: RFP 13-012
All proposals must be submitted in the format outlined in this proposal. The District reserves the right to waive any defects in proposals received or to accept or reject any or all proposals submitted.
All costs directly or indirectly related to preparation of a response to this RFP shall be the responsibility of the Bank.
If the Bank desires that proprietary information in the proposal not be disclosed, the Bank must identify such information in a cover letter at the time it submits the proposal. The district will honor proprietary information as allowed by statute. If the Bank fails to identify proprietary information, the Bank agrees, by submission of its proposal, that those sections shall be deemed non-proprietary and available for public inspection.
The proposal must include a statement that the terms of the proposal are valid for a minimum period of one hundred twenty (120) days subsequent to the RFP closing date, March 26, 2013, or until a formal contract is signed.
1.03Calendar of Events
March 5, 2013.....Request for Proposals e-mailed to Banks by District
March 26, 2013....Sealed proposals due by no later than 2:00 p.m.
April 22, 2013.....Board of Education considers superintendent's recommendation and contract awarded
May 31, 2013...... Sign written banking services agreement by no later than this date
July 1, 2013...... Accounts opened at Bank
1.04 Selection Criteria
Evaluation criteria outlined below shall be applied to all eligible, responsive banks in comparing proposals and selecting the successful proposer. A bank considered qualified for primary depository must meet all Federal regulations and State Statutes governing banking and investing activity for school districts.
The following criteria will be considered in evaluating proposals.
- Ability to provide all services requested.
- Total evaluated earnings potential, net of costs.
- Convenience/number of locations.
- Financial stability of the bank based upon the three ratios/items listed below. Please list the bank’s current ratio.
1. Tier 1 capital is the core measure of a bank's financial strength from a regulator's point of view. It consists of the types of financial capital considered the most reliable and liquid, primarily Shareholders' equity.Examples of Tier 1 capital are common stock, preferred stock that is irredeemable and non-cumulative, and retained earnings. To be adequately capitalized under federal bank regulatory agency definitions, a bank holding company must have a Tier 1 capital ratio of at least 4%, a combined Tier 1 and Tier 2 capital ratio of at least 8%, and a leverage ratio of at least 4%, and not be subject to a directive, order, or written agreement to meet and maintain specific capital levels. To be well-capitalized under federal bank regulatory agency definitions, a bank holding company must have a Tier 1 capital ratio of at least 6%.
2. Financial leverage (FL) takes the form of a loan or other borrowings (debt), the proceeds of which are reinvested with the intent to earn a greater rate of return than the cost of interest. If the firm's rate of return on assets (ROA) is higher than the rate of interest on the loan, then its return on equity (ROE) will be higher than if it did not borrow. On the other hand, if the firm's ROA is lower than the interest rate, then its ROE will be lower than if it did not borrow. Leverage allows greater potential returns to the investor than otherwise would have been available. The potential for loss is also greater, because if the investment becomes worthless, the loan principal and all accrued interest on the loan still need to be repaid.
3. Risk Based Capital - Amount of Capital required of federally chartered lending institutions depending on the type of Assets they own. The more risky the asset, the more capital required. Requirements are enforced by the Federal Reserve System.
Example: Regulated commercial banks must comply with risk-based capital requirements that require a certain percentage of capital for each dollar amount of mortgage securities they buy and a larger percentage for each mortgage they make.
These capital ratios are reported quarterly on the Call Report or Thrift Financial Report.
Collateral Requirements – The Bank shall secure all deposits, repurchase agreements, and certificate of deposits (CD’s) by pledging (collateral) securities. Such security shall be United States Treasury Securities and/or Federal Agency Securities with a final maturity date of five years or less, valued at market (repriced to current market value on the first day of each month) in an amount equal to at least one hundred percent (100%) of the amount on deposit, less the amount insured by the FDIC.
1.05Terms of Banking Agreement
The District is required to include Section 1 through 5 of K.S.A. 44-1030 (as follows) in all contracts to which we are party, except those with contractors, vendors, or suppliers whose cumulative dollar total in any fiscal year is $5,000 or less, or who have fewer than four employees:
The contractor shall observe the provisions of the Kansas Act Against Discrimination and shall not discriminate against any person in the performance of work under the present contract because of race, religion, color, sex, physical handicap unrelated to such person's ability to engage in the particular work, national origin or ancestry;
In all solicitations or advertisements for employees, the contractor shall include the phrase, "equal opportunity employer," or similar phrase to be approved by the commission;
If the contractor fails to comply with the manner in which the contractor reports to the commission in accordance with the provisions of K.S.A. 1976 Supple. 44-1030, as amended, the contractor shall be deemed to have breached the present contract and it may be canceled, terminated or suspended, in whole or in part, by the contracting agency, and;
The contractor shall include the provisions of paragraphs (1) through (4) inclusively of K.S.A.441030(a) in every subcontract or purchase order so that such provision will be binding upon such contractor or vendor.
Although the District cannot enter into an agreement for more than one year at a time, it is the District's intent to maintain our banking service with the same bank for a period of five years. An annual review will be performed. Based upon service provided, a recommendation to renew the contract will be made to the Board of Education. The banking agreement may be terminated by either party on June 30 of any fiscal year provided a 120day prior written notice is given. The district may terminate the agreement without prior notice for good cause.
2.00Scope of Banking Services
2.01Current accounts
At the present time, the District maintains the following interest bearing checking accounts:
Consolidated Account
Food Service Account
Workers' Compensation Account
Contingency Reserve Account
Clearing Account
Payroll Account
EFTPS Account
Merchant Bankcard Account
Merchant Summer School Bankcard Account
Merchant E-School Bankcard Account
KPERS Account
A summary of each account is included later in this RFP.
Additionally, each HighSchool in the district (5), currently maintains an individual checking account with UMB bank. All accounts will be established with the successful bidder bank commencing July 1, 2013.
The types and number of accounts will be determined based upon the range of services provided by the successful bidder bank.
The District reserves the right to open, close or reconfigure accounts to meet District needs.
2.02Scope of Banking Services
The following list of required banking services for individual and/or all accounts are anticipated within the terms of this agreement:
A.Standard check writing services will be available to the District. The District will provide its own checks. No limit on the number of checks that can be written per account per month.
B.Standard depository services will be available to the District. The Bank will provide duplicate deposit slips for the District and its various locations. The bank will provide triplicate deposit slips for the food service account and its various locations. No limit on items deposited per day or month. Deposits will be credited to the District's accounts in accordance with the Bank's current availability schedule. A copy of the Bank's availability schedule must be attached to the proposal. The District reserves the right to request verification of the deposit at the time of presentation to the bank.
C.The bank will offer an automated Cash Management System to allow the District to manage its cash resources daily. Transfers between accounts will be posted the same day, if requested by District personnel by 2:00 p.m. A mutually agreeable control system will be worked out between the Bank and the District. The District desires to perform the following functions via this Cash Management System: place/remove stop payments, place wire transfers to district and non-district accounts, place vendor payments, place ACH accounts receivable, obtain current day activity, and view check images
D.Incoming and outgoing wire transfer capability must be offered to the District. Such wires typically include wires from the State of Kansas STARS system, wires to and from the Kansas Municipal Investment Pool and incoming and outgoing wires to local banks. Outgoing wires may be requested by telephone or terminal and will be settled on the same day if requested by District personnel by an agreed upon time. Incoming wires will be considered collected at time received. Wire transfers ordered by noon and not received by the destination party by 2:00 p.m. same day will be traced from origin to destination to ascertain the party responsible for delaying the transfer. The bank will be responsible for any lost interest from a failure to consummate transaction. A mutually agreeable control system will be worked out between the Bank and the District.
E.NSF checks deposited within the District's accounts will be returned to the District for collection only after a second deposit attempt is made.
- Stop payments will be processed in a timely manner. The Bank will provide stop payment through either telephone or Internet access.
G.The Bank must be able to accept positive pay files daily through Internet access. These files should be in ASCII format.
H.The Bank must be able to accept payroll ACH files via Internet. Deposits must be made into employees’ accounts by open of business on payday. Additionally, provide your banks ACH timelines and cutoff dates and times and any deviation from these time limits must be stated in the proposal. The Bank will provide the ability for automatic withdrawal of payroll taxes by the Internal Revenue Service (IRS) and the Kansas Department of Revenue.
I.ACH settlements required for accounts receivable will be processed at various times. These are initiated by the district for payment of fees due by district parents with an average of 360 per month. Provide your banks ACH timelines and cutoff dates and times.
J.Electronic Vendor Payments – The district also pays some of its vendors electronically. ACH settlements are required for accounts payable. Please describe any electronic payment system your bank provides. Provide your banks ACH timelines and cutoff dates and times.
- The bank shall provide credit cards for District use. The District currentlyhas 17 credit cards. No late payment fees shall be assessed to the District if payment is made within 30 days of invoice date.
- The District currently has the ability to place ACH filters and blocks on its accounts to minimize the potential of fraudulent withdrawals. Please describe your program and all costs associated with implementing filters,blocks and any other security feature.
M.Merchant Credit Card Services. The District receives payments for school fees, lunch accounts, summer school and E-school via credit card using Pinnacle Payment Processing to interface with our student data base. The District’s Bistro restaurant receives payments via credit card using Elavon Network Processing to interface with its data base, but will be using Pinnacle Payment Processing in the future. Payments are updated immediately to our student data base and transfer of funds is made to our operating account on a regular basis. Please detail your credit card processing including any applicable charges.
2.03Scope of Reconciliation Service
The District wishes to establish a controlled disbursement arrangement with full reconciliation services.
The following is a list of the minimum reconciliation services to be provided at no charge to the District:
A.Daily clearing totals must be available for on-line review by 9:00 am.
B.On-line review of daily detailed reports of the previous day’s transactions.
C.Monthly bank statement cut-off date for all accounts will be the last day of the month. A monthly bank statement must be provided to the District within eight (8) working days of the end of the month. The reconciliation file must be submitted through Internet access. The canceled checks with an image of both sides of the check may be submitted via CD or through Internet access.
The Bank agrees to:
Provide the District's IS department record layouts by May 15, if required.
Provide the District's IS department the name and telephone number of a contact person at the bank.
2.04 Other Services
The Bank will provide the District with names and phone numbers of contact persons for the purposes of answering inquiries regarding account activity, bank services, or other details.
Inquiries from District personnel will be handled on a priority basis. As needed by District personnel, account activity and/or account balance information will be produced in "hard copy" at no charge.
The designated bank, or its branch, must be located within the boundaries of the ShawneeMissionSchool District. In the event that the main bank is not located within the boundaries of the District, the District reserves the right to designate a branch of the selected bank as the primary depository of the District.
The District also intends to provide courier services for all schools/centers on a scheduled basis. The successful bidder will be required to assist in coordinating and providing the use of locked bags, deposit tickets, and night depository services.
The bank will be asked to cash district checks to establish petty cash and change funds at the beginning of the school year. Change funds for school lunchrooms will be provided on an as-needed basis and will be processed through the use of the designated District courier service. These funds will be available to the courier service as soon as the bank opens. These requests may either be sent with the prior day’s deposit or faxed to the bank. Petty cash funds may need to be replenished throughout the school year and may be processed through the use of the designated District courier service. These requests may either be sent with the prior day’s deposit or brought into the designated bank or branch.