Depository Bank ServicesQuestionnaire:
Required Services
The following services are required to be provided as described and/or be provided in an alternative form that results in essentially the same outcome or capability.
1)Online Banking Services – SAWS requiresonline banking services accessible through the internet that at a minimum include balance reporting, initiation of ACH debits and credits and wire transfers, interbank account transfers, and placement of stop payments on checks. Additional capabilities should include the ability to reprint statements and export information to MS-Excel. The minimum balance reporting information should be for intra-day and previous business day and include: ledger balance, collected balance, one-day float amount, two-day float amount, total credits, total debits, detail debits and credits, and should allow transaction search capability. Historical information should be maintained online and accessible for a minimum of six (6) months.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
2)ACH – SAWS requires a robust ACH system with the capability to create ACH credits for direct deposit of payroll and vendor payments, and to direct debit customer accounts for billing charges. Please provide a description of the bank’s policy on pre-notes and whether it is charged as a standard ACH transaction. Provide in response comments as to your institutions membership in National Automated Clearing House Association.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
3)ACH Debit Blocking and Filtering – SAWS requires ACH debit blocking and filtering capabilities on its accounts, with the ability to selectively permit specified ACH debits on certain accounts and restrict all ACH debits from certain accounts.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
4)Zero Balance Accounts – SAWS requires Zero Balance Accounts (ZBA) for designated accounts with the Concentration Account as the master funding account to the ZBAs. The bank teller function must identify the account as a ZBA to ensure honoring of presentments made at the bank.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
5)Electronic Data Interchange– SAWS requires Electronic Data Interchange (“EDI”) service capability with the ability of obtaining monthly reports and transacting vendor payments.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
6)Remote Deposit Capture– SAWS requires direct deposit capture services for electronically preparing and submitting deposits. SAW currently has three Customer Service Centers utilizing scanners for customer payments. Please provide initiation and cut-off times for file transmission, information related to scanners offered and technology specifications or system requirements, as well as the cost of scanners and monthly maintenance and transaction fees.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
7)Wire Transfers– SAWS requires an online banking system that provides for initiating wire transfers. Wires may be one-time wires or set up as repetitive wires of varying amounts. Please describe the security features utilized by the bank related to wire transactions, and please state wire access times, posting times and cut-off times.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
8)Post No Checks – SAWS requires the fraud protection feature or service that prevents checks from being posted to designated electronic-only accounts.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
9)Positive Pay and Account Reconciliation Service– SAWS requires positive pay and the ability to offer full account reconciliation services on designated accounts from which checks are issued. SAWS would electronically transmit the issued check file to the bank. The bank would only honor those checks issued by SAWS that are pre-authorized through the positive pay system. Payment verification criteria will be date, check number, amount, and payee name. Please indicate the deadline for check issuance file transmission, what time exceptions are reported and when SAWS instruction must be received.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
10)Consumer Bill Pay Processing– SAWS currently utilizes third-party vendors for consumer bill pay processing (sometimes referred to Electronic Lockbox) for receipts of customer payments generated from personal customer bank bill pay programs. On a daily basis, the remittance data and payment amount captured during processing is transmitted to SAWS for the update of the accounts receivable file. Monthly items processed are approximately 74,000 totaling $6,500,000. Please indicate if the bank can provide consumer bill pay processing. (Additionally, please include pricing information on Schedule I.)
Yes, can provide as requested.No, cannot provide as requested.
Comment:
11)Cash Vault Services– SAWS currently utilizes, under a separate contract, an armored car service to deliver deposits to the bank. The bank should be willing to accept deposits via a courier or armored car service.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
12)Armored Car Services– Can the bank provide an armored car service for SAWS? If so, please provide the details of the service and how it would be billed.
Fees to be waived.
Fees to be partially waived; billed through analysis.
Fees to be passed in full to SAWS; billed through analysis.
Cannot provide.
Comment:
13)Bank Supplies – Will the bank offer any bank supplies at no charge? A list of supplies currently utilized by SAWS with estimated volumes are provided in Schedule I. Please list the cost information on Schedule I for supplies SAWS will need to purchase.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
14)Funds Availability– SAWS requires, at a minimum, same day credit for all transactions submitted before 4:00 P.M., subject to the bank’s availability schedule.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
15)Employee Check Cashing– SAWS requires the bank to cash checks issued to employees (with proper identification) without service charges or fees to the employee or SAWS and without requiring the employee to open an account with the bank.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
16)Returned Check Reprocessing– SAWS requires deposited checks to be processed for collection at least twice before making non-paid check images available for download by SAWS within two business days of the final rejected presentment. SAWS requires same day notification of all returned items in excess of $5,000.00.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
17)Account Analysis– SAWS requires account analysis statements by individual account and at group level, which will reflect average ledger balance, average uncollected funds, average collected balance, reserve requirement, average available balance, rate and amount of earnings credit, detail of services provided with quantities and unit fees for each, and total service cost, provided to SAWS on a monthly basis. This is also a requirement for “No Fee” or “Fee Waiver” proposals.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
18)Bank Statements– SAWS requires that Statements be rendered to SAWS within five (5) working days after the close of the calendar month. Accounts shall not be placed in dormant mode for inactivity. The statement shall include debits and credits made on the last day of the period and the detail items. Bank statements should be received on a monthly basis, even if there is no activity for the account. Bank Statements must include copies of deposit slips, and copies of the front and back of all checks.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
19)Payment for Services– SAWS intends to pay for all services provided by the earnings credit amount generated by account balances, or by direct payment, or a combination of both.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
20)Account Settlement– Settlement of the excess/deficient condition as reflected by the group level account analysis is required to occur on a quarterly basis. If deficient, settlement is to be made by direct debit to SAWS designated account.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
21)Research– SAWS requires that all research requests are responded to within three business days of the request.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
22)Bank Errors– Bank errors resulting in lost interest to SAWS will be reimbursed by the bank to SAWS. The bank and SAWS will agree upon the method of reimbursement.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
23)Investment Account– Please provide a description of the bank’s best “hard dollar” interest earning option SAWS may utilize for cash in excess of general operating needs. If a sweep option is proposed, confirm its compliance with Local Government Code Chapter 2256, the “Public Funds Investment Act”, and SAWS Investment Policy.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
24)Audit Confirmations– Bank will provide electronic account balance audit confirmations to SAWS audit firm annually at no charge.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
25)Balance Assessment– State how the bank will treat any Balance Assessment or balance based fee applicable to SAWS (i.e. Deposit Supervisory Fee, Premium Assessment Fee, etc.). Also, please reflect treatment on the attached Schedule I.
Fees to be waived.
Fees to be partially waived.
Fees to be passed in full to SAWS.
Comment:
26)Reserve Requirement– State whether or not the bank imposes a reserve requirement on balances used in calculating earnings credit.
Yes.
No.
Reserve Requirement %
Comment:
27)Earnings Credit Rate– The bank must state the ECR and rate formula being proposed.
ECR %
Rate Formula:
Comment:
Services that May Be Considered
The following services may be considered; please indicate the bank’s ability to provide the services as described.
1)Back-up Lockbox Services– SAWSperforms its own lockbox services for customerremittance processing and the deposit of customer checks, however it requests that the depository bank agree to provide emergency back-up service, should mechanical or other failure render SAWS equipment inoperable. The back-up service would entail the scanning and processing of items received and collected by SAWS until the equipment issue is resolved. Please indicate if the bank can offer back-up lockbox services. (Additionally, please include the cost of this service on Schedule I.)
Yes, can provide as requested.No, cannot provide as requested.
Comment:
2)Gift Cards– SAWS may consider the use of bank-provided gift cards for quarterly service awards to employees, if available. SAWS averages approximately 400 gift cards per year with loadable dollar amounts ranging from $25 to $150. Please indicate if the bank can offer Gift Card services. (Additionally, please include the cost of this service on Schedule I.)
Yes, can provide as requested.No, cannot provide as requested.
Comment:
Collateral Requirements
1)Collateralization– The awarded depository bank shall pledge collateral to satisfy the requirements of the Public Funds Collateral Act, Chapter 2257, Government Code, based on collateral approved by the SAWS Investment Policy. Ledger balance shall determine the total balance level. The successful bank shall pledge collateral at a minimum of 110% on asame day basis.
SAWS shall approve, in advance and in writing, all proposed collateral.
If prior day ending ledger balance is to be used as the basis for calculating the required collateral pledge, in order to minimize any period where SAWS balances could be under collateralized, SAWS will require that the pledged amount be maintained at a minimum of 130% of the prior day ending ledger balance.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
2)Collateral Amount– The maximum ledger balances could exceed $50,000,000 in the aggregate. Historically, the average balances are less than $30,000,000. Please clearly explain any collateral limitations or fees. SAWS shall approve, in advance, all proposed collateral increase and reduction requests. SAWS reserves the right to maximize or minimize bank balances regardless of historical patterns. It is expected that the awarded depository bank will monitor the collateral adequacy on a daily basis and provide additional collateral to secure balances as required.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
3)Collateral Custody– The pledged securities shall be held at an independent custodian acceptable to both SAWS and the awarded depository bank. Monthly holding reports shall be filed with the designated contact of SAWS and delivered directly from custodian. Please provide the name of the proposed independent custodian as well as any related fees.
Name of Proposed Custodian:
Yes, can provide as requested.No, cannot provide as requested.
Comment:
4)Collateral Substitution– Any substitutions of the pledged securities or reductions in the total amount pledged shall be made only by and with the proper written authorization of an authorized SAWS signatory.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
5)Collateral Report– The custodian shall provide SAWS a monthly pledged securities report or additional reports at any time requested by SAWS. The report should describe the total pledged securities by:
Name
Type / Description
CUSIP
Par Value
Current Face Value
Market Value
Maturity Date
Rating by Moody’s or Standard & Poor’s
Yes, can provide as requested.No, cannot provide as requested.
Comment:
6)Board Resolution– The Board of Directors or designated committee of the awarded depository bank will be required to provide a FIRREA compliant resolution of certification approving the award of the agreement and commitment for delivery of the collateral to the custodian not later than five days before the commencement of the agreement period. The following is an extract of the FIRREA requirement from the FDIC Code.
e) AGREEMENTS AGAINST INTERESTS OF CORPORATION.--
(1) IN GENERAL.--No agreement which tends to diminish or defeat the interest of the Corporation in any asset acquired by it under this section or section 11, either as security for a loan or by purchase or as receiver of any insured depository institution, shall be valid against the Corporation unless such agreement--
(A) is in writing,
(B) was executed by the depository institution and any person claiming an adverse interest thereunder, including the obligor, contemporaneously with the acquisition of the asset by the depository institution,
(C) was approved by the board of directors of the depository institution or its loan committee, which approval shall be reflected in the minutes of said board or committee, and
(D) has been, continuously, from the time of its execution, an official record of the depository institution.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
Investment Activities
The Public Funds Investment Act in conjunction with SAWS Investment Policy shall govern SAWS investment activity and the successful bank will be required to provide services within the constraints of both
1)Direct Investment Alternative– SAWS direct investment activities may take place in any and all of the SAWS accounts. SAWS shall have the right, at its sole discretion, to direct investment of its funds. Interest earnings on interest bearing accounts shall be credited monthly regardless of the amount, with no minimum amount restriction.
As part of SAWS investment strategy SAWS reserves the right to open any number of accounts at other financial institution(s), in the form of DDA, MMA, and/or CDs as deemed appropriate by the SAWS management and adopted Investment Policy. The Investment Policy outlines SAWS options for investing. The Policy is subject to annual review and revision by SAWS Board of Trustees.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
2)Certificates of Deposit– Certificates of Deposit (CDs) purchased for SAWS shall be non-negotiable and shall be registered in the name of SAWS. The CDs must be fully insured by the FDIC or collateralized in accordance with the RFP requirements. Proof of collateral must be supplied to SAWS prior to CD settlement.
Extension of CDs – The successful bank agrees to honor and continue any CD made during the term of the agreement that will mature after the expiration date of the agreement at the same rate established at the time of placement.
Yes, can provide as requested.No, cannot provide as requested.
Comment:
3)Security Clearance/Safekeeping Services– SAWS requires that the bank provide safekeeping services for the securities owned by SAWS, or offers an alternative option for safekeeping services. All securities will be handled on a Delivery Versus Payment (DVP) basis as they are cleared into and out of the SAWS account.
Excluding money market funds and investment pools, in total, SAWS had fixed income assets totaling $893 million par value at December 31, 2017, consisting of 93 securities held in safekeeping. SAWS averages approximately 10 investment security purchases per month.
The bank will act as securities clearing agent for all security purchases made by SAWS and for sales of securities from the investment portfolio, and will provide the necessary wire transfer and physical delivery services required to support investment activities. Necessary controls will be negotiated with the bank. Confirmation of trades must be provided to SAWS within one (1) business day.
Security clearance and safekeeping services shall be governed by a "Safekeeping Agent” or similar agreement executed between SAWS and the bank. All interest payments on securities held are to be posted on the due date or on the next business day in the event the due date falls on a weekend or bank holiday. SAWS must be notified within five (5) days of a call date notice for any securities being called prior to maturity.
SAWS prefers a web-based safekeeping transaction monitoring and reporting mechanism.
All fees related to investment services provided by the bank, including safekeeping services, should be itemized and included on Schedule I submitted in response to this RFP. Also, please provide a schedule of securities safekeeping fees (information sheet) as a part of IV. Submitting a Response C. #8 Price, if one is available. SAWS prefers safekeeping fees be included on the account analysis to be offset by earnings credit.