ESBD_381867_1730468319319_RFP #25-09 Banking Depository Services.pdf

REQUEST FOR PROPOSALS (RFP) #25-09

BANKING DEPOSITORY SERVICES

PROPOSED SOLICITATION SCHEDULE

This schedule may be modified or changed at the sole discretion of SJCCD.

DATE ACTION

November 1, 2024 RFP issued.

November 13, 2024

Questions and/or Clarifications Deadline

Requests for questions and clarifications regarding RFP documents shall be submitted through the Questions tab in IonWave by 5:00 p.m. Central Time to be considered.

November 14, 2024 Issuance of final addendum, if necessary.

November 21, 2024

Proposal Submission Deadline

All proposal documents shall be submitted before 2:00 p.m. Central Time in IonWave.

The RFP opening will take place digitally through IonWave immediately following time due. A list of vendors who submitted will be made available upon written request to the Procurement Contact.

December 13, 2024 – December 19, 2024

Virtual Presentations / Interviews (top-ranked firms only) “may” be scheduled within these dates.

January 2024 Recommendation of award and approval to enter into contract.

Award will be announced after approval received.

E-Bidding Website: IonWave:

https://sanjac.ionwave.net

PROCUREMENT CONTACT

Farrah Khalil, Buyer 281-998-6326 farrah.khalil@sjcd.edu https://sanjac.ionwave.net/ mailto:farrah.khalil@sjcd.edu

RFP #25-09 Banking Depository Services

SCOPE OF WORK

1. GENERAL

San Jacinto Community College District (“SJCCD” or “College”) is soliciting sealed proposals from qualified firms to provide banking depository services.

The depository is an important component of the treasury and cash management system for deposits of funds and processing of checks from accounts payable and financial aid disbursements. Services utilized by the College include multiple checking accounts for collection and disbursement activities, a money market investment account, safekeeping services, and electronic fund transfer capabilities.

All work performed must be in compliance with existing federal, state and local codes, statutes and requirements.

SJCCD is a public community college district organized under Chapter 130 of the Texas Education Code and is tax exempt in the State of Texas.

2. EXHIBITS

The following exhibits shall be referenced throughout this solicitation in order to provide additional bank information regarding transaction volumes and dollar amounts.

• Exhibit 1 – Bank Accounts and Investment Pools

• Exhibit 2 – Average Bank Balances and Transactions

• Exhibit 3 – Electronic Vendor Payment from A/P Disbursement Account

• Exhibit 4 – Analysis of Payroll Amounts

• Exhibit 5 – Investment Policy and Investment Reports

3. ACCOUNT ACTIVITIES

The College has seven (7) active bank accounts with current Contractor and thirteen (13) accounts at other banks and investment pools, as set forth in Exhibit 1. See Exhibit 2 for average bank balances and transactions.

The College issues checks for vendor payments from the Accounts Payable (A/P) Disbursement Account and employee paychecks from the Payroll Account. Approximately 70% of vendor transactions are electronic payments and 99% of employees participate in direct deposits. See Exhibit 3 for electronic vendor payment and related dollar amounts.

The College offers its full-time and part-time employees direct deposit of payroll. See Exhibit 4 for biweekly and monthly checks and direct payroll count and net payroll amounts. Check-cashing services for employees’ payroll checks shall be provided by the Contractor at no charge to the employee. The College reserves the right to open or close any number or type of accounts as it deems necessary throughout the term of the depository services contract.

4. SERVICES: The following services shall include, but are not limited to:

a. Account Services

• Account maintenance

• Cash concentration back value

• Debit posted-electronic

• Credit posted-electronic

• Statement cycles

• Post No checks maintenance

• Cash concentration maintenance sub

b. Banking Center Services

• Branch Credits Posted

• Teller line cash verification

c. Vault Services

• Vault deposit

• Vault deposit per $1,000

• Vault deposit nonstandard strap notes

• Vault standard orders

• Vault order coin rolls

• Vault order currency nonstandard strap

• Vault deposit adjustment

d. Depository Services

• Credits posted

• Check deposited-on US

• Check deposited-Transit

• Return item

• Return-email notification

• Remote deposit capture maintenance

• Remote deposit capture item

e. Disbursement Services

• Checks/debits posted

• Exception notification-account

• Stop payment-electronic

• Check cashing non-account holder

• Stop payment automatic renewal

• Image storage per item

• Check inquiry maintenance

• Payee name verification

• Image capture per item

• Certificates of Deposit (CD) rom

• CD rom maintenance

• Positive pay maintenance

• Positive pay without reconciliation items

• Positive pay no reconciliation maintenance

f. Wire – U.S.

• Electronic fed debit S/T

• Federal credit S/T

• Federal wire surcharge post 5pm receipt

• Federal transfer fee

g. Automated Clearing House

• Automated Clearing House (ACH) Maintenance

• ACH Maintenance

• Debit originated

• Debit originated

• Credit originated

• Credit originated

• Addenda records originated

• Debit received

• Credit received

• Return item

• Return item redeposit

• Return notification-email

• ACH batch/file processed

• ACH trans block authorized ID

• Notification of change

• Notification of change-email

• Transaction block maintenance

h. Long term check storage

• Long term check storage for a minimum of five (5) years

5. BALANCE REPORTING AND ONLINE ACCESS

a. To maximize cash management control and investment opportunities, the Contractor shall provide balance reporting for daily access of bank accounts to obtain balance information. This shall be accomplished by an internet-based online reporting system which shall provide the following:

• Daily ending ledger and collected balances from the prior day for all accounts;

• A detail of the prior day's debits and credits, one-day float amount, two-day float amount, total credits, total debits;

• Detail debits and credits, current day disbursements, including deposit tickets and check numbers (if available); and

• Current day’s incoming or outgoing, wires, and current day ACH.

b. The system shall also allow online inter-bank and intra-bank transfers, ACH, stop payment, and wire transfer origination instruction processes with user-defined security requirements. The online system shall be inclusive of, but not limited to, the following:

• Accounts reported

• Monthly service

• Transaction reported within 45 days

• Extended transaction detail

• Online banking administration/self-administration

• Authentication for access

• ACH/wire template maintenance

• Payment status inquiry

6. COLLATERAL REQUIRED

Balances maintained in all accounts shall be collateralized in the same manner and under the same stipulations as outlined in paragraph 3.2, Pledge Requirements. The maximum ledger and investment balances are estimated to be $15,000,000 in the aggregate. See Exhibit 2 for average balances by bank.

7. BANK STATEMENTS

Bank statements shall be rendered within two (2) working days after the close of the calendar month. Statements shall include debits and credits made on the last day of the period and the detail items. Electronic downloads shall be available to the College.

8. PLEDGE REQUIREMENTS

a. Securities Pledged. As security for deposits of the College, the Contractor shall pledge to the College securities equal to 102% of the largest total balances the College maintains in the financial institution, less the amount provided by the Federal Deposit Insurance Corporation (FDIC). These aggregate balances are estimated not to exceed $100,000,000. Approved securities are restricted to those defined in the College Investment Policy (ref. Exhibit 5) and as provided for in the Texas Government Code, Chapter 2257, Collateral for Public Funds. This Pledge will be evidenced by a separate Depository Pledge Agreement in accordance with the requirements of State and Federal law (ref. Proposal Format, Section 1.4). Securities comprising the Pledge are to be calculated using market value. The securities so pledged, the amounts thereon, and the time for pledging shall satisfy statutory requirements and the College Investment Policy as available in Exhibit 5. The College will also accept a surety bond as collateral for the deposits of the College.

The Surety Bond must meet the requirements of the Texas Education Board and the College Investment Policy as available in Exhibit 5. The College will also accept a letter of credit backed by the Federal Home Loan Bank for a fixed annual amount.

b. Safekeeping. The securities pledged shall be held in safekeeping at a financial institution acceptable to the College. The original copies of all security receipts shall be filed with the Comptroller’s Office. The College will reimburse the Contractor for safekeeping charges, if any. Safekeeping Agreement shall clearly state that the Trustee is instructed to release collateralized securities to the College if the College has determined that the Contractor has failed to pay on any accounts including, but not limited to, matured investments in Certificates of Deposit, or the College has determined that the College funds are in jeopardy for any reason including, but not limited to, involuntary closure or change in ownership.

c. Substitutions. Any substitutions of securities or reductions in total amount pledged are to be made only by and with proper written authorization approved by an authorized signatory. The College will approve all securities pledged. In case of reductions, Contractor shall provide in writing that collateral will be available when needed to meet normal College balance increases throughout the year. Any securities pledged are to satisfy statutory requirements and the College Investment Policy as available in Exhibit 5.

d. Certification and Delivery of Collateral. In accordance with state law, the Board of

Directors of the selected Contractor shall provide a resolution of certification approving the commitment and delivery of the collateral to the safekeeping financial institution no later than five (5) calendar days before commencement of the contract period.

9. INVESTMENT ACTIVITIES

For illustration of the College’s investment activity, investment reports are available on the College’s website (Exhibit 5).

a. Direct Investment Alternative. The College requires a Contractor relationship which provides full legal flexibility in investment activities and currently uses four (4) broker/dealers to facilitate investment purchases Since state law permits the College to invest in direct debt securities of the United States Government or its agencies or instrumentalities guaranteed by full faith and credit of the United States Government, the College will have the right, at its sole discretion, and based on maturities and liquidity needs of the College, to select direct investment in government obligations.

b. Certificate of Deposit. Certificate of Deposit (CD) purchased for the College shall be non-negotiable and shall be registered in the name of the College. CDs must be fully insured by FDIC or collateralized by fully guaranteed Federal obligations that are pledged to the College and that have a market value equal to or greater than the CD for the life of the CD. Proof of collateral must be supplied to the College before CDs are paid for. (Ref. Section 9 – Pledge Requirements.)

c. Interest Calculations. Interest on all CDs shall be computed on an actual daily basis while the interest paid to the College shall be computed on maturity date. Payments shall be made by crediting the accounts from which investments were made. Interest calculations shall include the first day in the investment period but shall not include the day of maturity.

d. Extension of Investments. Contractor agrees to honor and continue any investments made during the term of depository services contract that will mature after the contract expiration date at the same rate established before contract expiration if applicable

10. OVERDRAFT PROVISIONS

The College does not intend to have a net overdraft position occur during the course of the contract period. A net overdraft is defined as a negative balance in the College's accounts collectively, not by individual account.

If a net overdraft condition occurs, Contractor shall notify the Comptroller’s Office, via email, providing information for the following:

• Maximum number of banking days the overdraft condition would be allowed

• Maximum amount of overdraft to be allowed

• Interest rate per annum that will be computed on an actual day basis (for days and amount of overdraft).

In the event a check(s) is presented for payment where there are insufficient funds for the purpose of paying checks, the Contractor agrees to promptly notify the Comptroller’s Office, by telephone or other means, of the overdraft condition, and to provide the Comptroller’s Office a period not exceeding one (1) business day to respond and rectify the condition.

11. ADDITIONAL STIPULATIONS

a. Right to Cancel Contract. In the event it would be ruled illegal under the provisions of any Federal or State laws or regulations for Contractor to comply with the requirements of depository services contract, then the College expressly reserves the right and privilege to cancel the depository services contract and to re-propose.

b. Right to Audit Records. Contractor's records relating to the College's accounts shall be open for review during normal business hours by designated College staff members or College appointed independent auditors.

c. Regulation Notices. Contractor shall notify the College in writing within ten

(10) calendar days of any changes in Federal or State regulations or laws that would affect the depository services contract.

12. REPORTING

a. Contractor shall provide the College a report of securities pledged at the end of each month or at any time requested by the Comptroller’s Office or any other designated official. The report shall reflect the total pledged securities itemized by:

• Name

• Type/Description

• Par Value

• Market Value

• Maturity Date

• Rating by Moody's or Standard & Poor's (both, if available)

b. The College requires a review meeting at least once every six months to evaluate the working relationship between the College and Contractor. The objectives include addressing any problems and to seek solutions, as well as keeping abreast of changes, new services, or new requirements.

RFP 25-09 Banking Depository Services 8

13. COLLEGE LOCATIONS

a. District Offices – 4620 Fairmont Parkway, Pasadena, TX 77504

b. Central Campus – 8060 Spencer Hwy, Pasadena, TX 77505

c. North Campus – 5800 Uvalde, Houston, TX 77049

d. South Campus – 13735 Beamer Road, Houston, TX 77089

e. Maritime – 3700 Old Hwy 146, La Porte, TX 77571

f. Generation Park Campus – 13455 Lockwood Rd., Houston, TX 77044

14. SUPPLIER DIVERSITY REPORTING

SJCCD does not give preference to historically underutilized or small business in the awarding of contracts. However, if the awarded contractor utilizes a subcontractor(s) to fulfill the proposed requirements, the contractor will be required to track and report the amount paid to each subcontractor along with the subcontractor’s supplier diversity classification. This information will only be used for the purpose of statistical tracking. The reportable classifications include:

• African American

• Asian Pacific American

• Caucasian

• Hispanic American

• Native American

• Small Business

• Veteran Owned

• Minority Owned

• Woman Owned

• LGBTQ

• Other / Non-disclosed

15. CONTRACT TERM

The contract term, if any, for contract(s) awarded from this solicitation will be five (5) years with renewal options of two (2) one-year time periods subject to the termination provisions as further described in the sample contract terms and conditions on the Attachments tab section of this solicitation.

RFP 25-09 Banking Depository Services 9

EVALUATION CRITERIA

An Evaluation Committee will review all proposals according to the criteria stated herein. The committee’s evaluations will be based on all available information, including qualification statements, subsequent interviews/presentations, reports, discussions, reference checks, and other appropriate review.

Proposals will be evaluated using the following criteria:

Factor Points

Section 1: Qualifications and Experience of Firm and Personnel 10

Section 2: Scope Understanding, Approach, and Implementation 10

Section 3: Balance Reporting and Online Access 15

Section 4: Interest Rates 10

Section 5: Attachments A-J 35

Section 6: References 5

Section 7: Exceptions to Terms and Conditions 5

Section 8: Price Proposal 10

Total 100

The price proposal for each firm will be evaluated in comparison with the other firms’ price proposals; however, the number of points possible may be evaluated in proportion to each respondent’s evaluation scores received for Sections 2-5.

RFP 25-09 Banking Depository Services 10

The College’s Evaluation Committee will evaluate and rank each submittal based on the criteria detailed above. The highest rated proposer(s) evaluated by the Committee may be invited to presentations / interview with the Evaluation Committee. If interviews occur, they will be evaluated on the following criteria:

Presentation / Interview Max Points Presentation: must include a demonstration of balance reporting, online access tools and features as listed in Section 5 of the Scope. 20

Interview 20 Total 40

If interviews are held, the final score for selection of a firm will be obtained by combining the Evaluation Committee’s total points of the qualifications, price, and interviews as follows:

Qualifications and Price 100 points maximum Interviews 40 points maximum Total 140 points maximum

RFP 25-09 Banking Depository Services 11

PROPOSAL RESPONSE REQUIREMENTS

All proposal response requirements must be submitted through IonWave. The system does not allow a proposal submission unless all requirements have been met, including Attributes and Response Attachments. These requirements include, but are not limited to, the following:

Written Proposal:

Written Proposal shall be submitted as a Response Attachment in IonWave and shall include responses to Section 1 – 4. Written Proposals shall be a single PDF document with a maximum of twenty-five (25) pages. Sections must be in order and clearly labeled as outlined below.

Include a coversheet that includes your firm’s name, representative, and contact information.

Coversheet does not count towards the 25-page limit. Requested attachments, both mandatory and optional, do not count toward the 25-page limit.

1. Qualifications and Experience of Firm and Personnel

a. Include a description of the firm including firm’s history and size. Provide information regarding how long the proposer has provided the services requested in this RFP.

b. Describe previous experience with SJCCD or other public entities and/or colleges. Include how many public entities and/or college accounts are in your current client base. Did your company perform satisfactorily to the terms and conditions of the last award given to your company? Were there any discrepancies, issues or complaints reported concerning your organization’s performance?

c. Include a project-staffing plan and organizational chart for all proposed key staff members who will be assigned to this project. Identify their respective responsibilities for this project. If personnel substitutions are contemplated on a contingency basis, they should also be identified.

d. Provide brief resumes for key staff members outlining the qualifications and experience directly related to this RFP.

2. Scope Understanding, Approach, and Implementation

a. Describe how your services meet the scope listed in this RFP. Address any variances between your proposal and the scope.

b. Data Compliance:

i. Describe your system’s compliance with Family Educational Rights and Privacy Act (FERPA) and other relevant privacy and security requirements.

ii. Describe how you protect the College’s non-public data.

c. Include details pertaining to your firm’s management approach, implementation, and capabilities as are relevant to this proposal.

RFP 25-09 Banking Depository Services 12

d. The “go live” date for these services is September 1, 2025. Are there any issues the College should be made aware of that could potentially prevent your firm from meeting this deadline?

e. Describe the implementation process and support:

i. Provide a description of your implementation process including a typical timeline and milestones;

ii. List typical policy and procedure decisions needed by the College to complete implementation;

iii. List data feeds required from College data systems;

iv. Describe how you will staff the implementation using partners or internal resources.

f. Are fraud-management training or awareness programs provided? If yes, describe.

3. Balance Reporting and Online Access

a. Describe your firm’s ability to provide balance reporting for daily access of bank accounts to obtain balance information as detailed in Section 5.a. of the Scope.

b. Describe your firm’s ability to provide online inter-bank and intra-bank transfers, ACH, stop payment, and wire transfer origination instruction processes with user-defined security requirements as detailed in Section 5.b. of the Scope.

4. Interest Rates

The collected balances in each account shall be accessible via internet and shall be available for investment at the option of the College. Funds in interest bearing accounts shall earn interest at the rate paid on interest bearing accounts. Provide an explanation of financial institution's policy and methodology used in setting rates paid on interest bearing accounts.

Indicate if they are based on a market rate such as T-Bill discount or yield rate, or federal funds rate, etc., and when the rates are changed.

5. Attachments A-J

Upload Attachments A-J. in the Response Attachments tab in IonWave. Attachment A is provided for use in Attachments tab in IonWave; Attachments B-J shall be provided by firm.

a. Attachment A – Certificate of Deposit Investments: Provide scenarios of Certificate of Deposit investment opportunities (use Attachment A provided in Attachments tab in IonWave). Proposers shall state the rate of interest payable and the basis used to establish the rate for each of the time periods as indicated on Certificates of Deposit $100,000 or more. Also, indicate the investment minimums and maximums for maturity lengths and dollar amounts.

b. Attachment B – Sample Monthly Account Analysis: Settlement of excess/deficient condition as reflected by the group level account analysis is to occur on a quarterly basis.

Upload a sample of the monthly account analysis statement that will be provided to the College.

RFP 25-09 Banking Depository Services 13

c. Attachment C – Depository Pledge Agreement: Submit a copy of your Depository

Pledge Agreement (ref. Section 9.a. Securities Pledged).

d. Attachment D – Safekeeping Agreement: Submit a copy of your Safekeeping Agreement (ref. Section 9.b. Safekeeping).

e. Attachment E – Financial Reports: Submit copies of the following financial reports:

• Latest audited annual financial statements

• Past two most recent quarterly FDIC call reports

• Uniform Bank Performance Report for the latest fiscal year end

• Depository’s rating from an independent depository-rating agency

i. Attachment F – Additional Bank Services: List any value-added services and/or benefits your company. If these services are not included in the price proposal, clearly indicate the respective fees for these additional services.

j. Attachment G – Balance Reporting for Daily Access: To maximize control and investment opportunities, the College requires balance reporting for daily access of its bank accounts to obtain balance information. The access must be accomplished via Internet. The information to be contained in the report would be for previous business day and include: (1) ledger balance, (2) collected balance, (3) one-day float amount, (4) two-day float amount, (5) total credits, total debits, and (6) detail debits and credits.

Confirm the capability of your bank to provide this service, options available, and pricing.

k. Attachment H – Controlled Disbursement Account: The College may consider the use of a controlled disbursement account for vendor payments. Confirm the capability of your bank to provide this service, options available, and pricing.

l. Attachment I – Funds Availability: Provide a schedule and detailed explanation of funds availability showing both time and day of availability and specify the financial institution location to which the availability is applicable. If more than one availability schedule is applicable, provide both.

m. Attachment J – Convenience of Locations: Submit bank locations as listing addresses within three miles of each of the College campuses detailed in Section 14 of the Scope.

6. References

Include references in the Attributes tab in IonWave for the following:

a. The proposer shall provide at least five (5) references on recent projects for which the proposer's company is currently providing or has provided the same type and level of service required in this RFP within the past three years. Include the name, telephone number, and valid email address of a reference person who may be contacted for further information. It is highly preferable that these references are other colleges or public sector accounts comparable in size or larger.

RFP 25-09 Banking Depository Services 14

b. All references will be contacted by email. Evaluations will be based on responses received from references. It is advisable to notify your references ahead of time that a reference will be requested by email.

7. Exceptions to Terms and Conditions

An exception includes any addition, deletion, or other modification. Submit exceptions to terms and conditions as an attachment in the Response Attachment tab in IonWave as follows:

a. If you select Yes to “EXCEPTIONS TO TERMS AND CONDITIONS” under the Attributes tab, you must submit a written summary of each exception to this RFP, including the scope, specifications, and/or sample contract, as applicable. The summary shall include supporting justification that clearly identifies the specific reference, page, section, and sub-section of the change, relevance of the change, the vendor’s rationale for the change, and benefit to the College for accepting the change for the submitted exceptions to be considered in the evaluation.

b. The College’s evaluation of submitted exceptions will address the quantity of exceptions, type of exceptions, and justification(s) for exceptions. Fewer exceptions and/or exceptions with a lower risk to the College, if accepted, will equate to a higher score.

c. Any exceptions not explicitly stated may not be considered during contract negotiations, if any. The submittal of exceptions to terms and conditions does not guarantee the College’s acceptance of exceptions. The College reserves the right to accept or reject any exceptions as necessary to negotiate a mutually beneficial contract.

8. Price Proposal

Include pricing in the Line Items tab in IonWave for (seventy-six) 76 line items.

Any services not listed, but later requested by the College, shall be charged at a mutually agreed upon fee. Fees are to be fixed for the entire contract period. No additional setup fees or software fees may be charged if the Contractor merges with or is acquired by another bank.

Upload a Response Attachment document, if needed, to provide details of any fees not listed in the Line Items section. Any fees not explicitly stated in a proposal response shall not be charged to the College.

RFP 25-09 Banking Depository Services 15

List of Response Attachments:

Include the following documents in the Response Attachments tab in IonWave.

All forms are available to download under the Attachments tab in IonWave. Except when listed as Optional, all Response Attachment documents are required and failure to provide a required document may deem the proposer non-responsive and disqualify the response from consideration for award.

1. Written Proposal (Sections 1-4)

2. Attachment A – Certificate of Deposit Investments

3. Attachment B – Sample Monthly Account Analysis

4. Attachment C – Depository Pledge Agreement

5. Attachment D – Safekeeping Agreement

6. Attachment E – Financial Reports

7. Attachment F – Additional Bank Services

8. Attachment G – Balance Reporting for Daily Access

9. Attachment H – Controlled Disbursement Account

10. Attachment I – Funds Availability

11. Attachment J – Convenience Locations

12. Conflict of Interest form

13. Proof of Insurance Requirements

14. Exceptions to Terms and Conditions (optional)

15. Additional Fees Not Included in Pricing (optional)