ESBD_563856_1790723311697_Brazos River Authority - RFP#26-1400 - Expected Bank Services Questionnaire - PROTECTED.docx

EXPECTED BANK SERVICES QUESTIONNAIRE

The following services must be provided as described or in an alternative form that results in essentially the same outcome or capability.

Online Banking Portal

1. ONLINE REPORTING SERVICES – The BRA uses Tyler Munis for accounts payable and general ledger and TruePoint for accounts receivable and billing, and expects online reporting that at a minimum includes:

· ledger balance,

· collected balance,

· one day float amount,

· total credits,

· total debits,

· detail debits and credits,

· transaction search capability, and

· export capability to MS-Excel.

2. BAI2 FORMAT – Does your bank provide BAI format files for the BRA to upload financial transaction data into their ERP system?

3. WIRE TRANSFERS – The online banking system must offer wire transfer capability. Wires may be one time or be set up as repetitive of varying amounts. Notification of incoming wire transfers shall be made via the online banking portal.

What is the deadline for originating domestic wire transfers:

4. ACH – The BRA expects a robust ACH system to create ACH credits. The BRA expects effective date settlement versus pre-funded settlement of ACH Files.

|_| Yes, can provide as expected. |_| No, cannot provide as expected.

Comment:

What is the ACH origination cut-off time for:

5. ONLINE BANKING HISTORICAL INFORMATION RETENTION – How long is continuous historical information retained online and accessible by the users? We understand that the standard retention period for check images is 7 years. Please list your retention period for the items listed below:

Comment:

6. ONLINE BANKING ADMINISTRATION/SELF-ADMINISTRATION – Once the service is in place, users are expected to be managed through self-administration. To confirm, can these services be completed online and without a request to the bank:

· Are there any other functions that require the bank to make the changes rather than the self-administrators?

Comment:

7. SELF-ADMINISTRATION DUAL CUSTODY – Does your self-administration offer dual custody for functions involving granting access to users that involve funds transfers via wire or ACH?

|_| Yes, can provide as described. |_| No, cannot provide as described.

Comment:

8. MOBILE APP FUNCTIONALITY/ACCESS – The BRA is interested in having access to perform certain online banking functions for the BRA via their smart phones. If your institution offers these services, what functions are available for use?

|_| Balance Reporting and Transaction Detail |_| Initiate Wire Transfers |_| Release/Approve Wire Transfers |_| ACH – Release/Approve Batches |_| Positive Pay Exception Decisions |_| Mobile Deposits Comment:

9. AUTHENTICATION FOR ACCESS – Please confirm the methods that are available with your bank for protecting the BRA against unauthorized access:

|_| Secure Token |_| Secure Token app through cell phone |_| Secure Browser |_| Confirmation code sent via text message or email |_| Biometric authentication Comment:

10. ALERT/MESSAGING SYSTEM – The BRA expects alerts sent via email and/or text messaging to alert the BRA of specific activity such as incoming wires, positive pay exceptions, etc. How is the BRA charged for this service?

|_| Messaging is provided at no cost |_| There is a fee for wire notification alerts of $ per notification.

|_| Messaging is provided as a fee per message/per device fee of

Comment:

11. ELECTRONIC DATA INTERCHANGE – The BRA is interested in Electronic Data Interchange (“EDI”) service in order to see addenda information included with ACH deposits.

12. PAID CHECK IMAGE OPTIONS – What options does your institution offer for providing copies of paid checks to the BRA?

|_| Image of paid checks printed on statements |_| Image of paid checks printed on the online version of the statements |_| PDF File downloadable to the BRA each month |_| Online Image Inquiry/Search

Collections

1. REMOTE DEPOSIT CAPTURE – The BRA expects remote deposit capture services for electronically preparing and submitting deposits. The BRA is currently utilizing this service and owns all of its scanners.

|_| Yes, can provide as expected. |_| No, cannot provide as expected.

Comment:

2. REMOTE DEPOSIT CAPTURE – ENDORSEMENTS – The BRA would prefer that the scanner electronically endorse the stamps rather than requiring the BRA to manually stamp each check. Does your system offer virtual endorsement of the deposited checks?

|_| Yes, can provide as described. |_| No, cannot provide as described.

Comment:

3. BRANCH DEPOSITORY SERVICE – On occasion, the BRA needs to visit a branch, most often for a check that is not scanning correctly for RDC.

Comment:

Fraud Protection Services

1. POSITIVE PAY – The BRA expects positive pay. Minimum payment verification criteria shall be date, check number, and amount. The BRA may approve and make pay/no pay decisions on any exception items.

|_| Yes, can provide as expected. |_| No, cannot provide as expected.

What is the deadline for responding to Positive Pay Exceptions:

2. POSITIVE PAY FILE FORMAT REQUIREMENTS – Does the bank accept client‑defined Positive Pay file formats or does it require the client to use the bank’s standard file layout?

|_| Bank accepts client‑defined file format and will map it to the bank’s system.

|_| Client must use the bank’s required Positive Pay file format/specification.

Comment:

3. PAYEE VALIDATION – The BRA expects payee validation with the positive Pay Service. Does your bank offer payee validation?

|_| Yes, can provide as expected. |_| No, cannot provide as expected.

Comment:

4. ACCOUNT RECONCILIATION SERVICE – The BRA expects full/partial account reconciliation service on designated accounts from which checks are issued. The BRA electronically transmits the issued check files to the institution. The BRA expects to be able to download a monthly file of paid checks. Please describe in the comments what options are available for the BRA to download the paid checks file.

|_| Yes, can provide as expected. |_| No, cannot provide as expected.

Comment:

5. AUTOMATIC STALE DATING OF CHECKS – The BRA prefers the option of checks automatically becoming stale dated after a set period of time, based on the issue date in the Positive Pay system. Does your institution offer this feature, and if so, how does the institution handle items presented after they are stale?

|_| Yes, stale dating is offered. |_| No, stale dating is not offered as described.

Comment:

6. POST NO CHECKS – The BRA expects the fraud protection feature or service that prevents checks being presented for payment to be posted to the accounts from which checks are not issued.

|_| Yes, can provide as expected. |_| No, cannot provide as expected.

Comment:

7. ACH POSITIVE PAY / ACH FRAUD FILTER – The BRA expects ACH positive pay/filter 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 expected. |_| No, cannot provide as expected.

Comment:

8. CONVERTED CHECK BLOCK – Does your ACH Positive Pay/ ACH Fraud Filter block checks that are converted to ACH debits? (This is not regarding checks converted via remote deposit capture, it is specific to checks converted to ACH payments by retailers at checkout.)

|_| Yes |_| No

Miscellaneous

1. EMPLOYEE CHECK CASHING – The BRA expects the institution to cash checks issued to employees (with proper identification) without service charges or fees to the employee or the BRA, and without requiring the employee to open an account with the institution.

|_| Yes, can provide as expected. |_| No, cannot provide as expected.

Comment:

2. ACCOUNT SIGNATURE CARD REQUIREMENTS – Does your bank require signers to provide their Social Security Number as part of the authorization/KYC process?

|_| Yes, SSN is required. |_| No, SSN is not required from the signers.

Comment:

3. ACCOUNT ANALYSIS – The BRA expects account analysis statements by individual account and at group level, reflecting 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, delivered to the BRA on a monthly basis. This requirement applies to “No Fee” or “Fee Waiver” Proposals.

|_| Yes, can provide as expected. |_| No, cannot provide as expected.

Comment:

4. PAYMENT FOR SERVICES and ACCOUNT SETTLEMENT – The BRA expects to pay for all services provided by the earnings credit amount generated by account balances, or by direct payment, or a combination of both. If deficient, settlement is to be made by direct debit to the BRA’s designated account.

|_| Yes, can provide as expected. |_| No, cannot provide as expected.

Comment:

5. Balance ASSESSMENT – State how the institution will treat any Balance Assessment or balance-based fee applicable to the BRA (i.e., Deposit Supervisory Fee, Premium Assessment Fee, etc.). Please indicate if the assessment will be for all depository balances or non-interest-bearing balances only. (Also, please reflect treatment on the attached Fee Schedule)

|_| Fee to be passed in full to the BRA.

|_| Fees apply to only non-interest-bearing balances.

|_| Fees to be waived.

Comment:

6. RESERVE REQUIREMENT FOR EARNINGS CREDIT CALCULATION – Proposer must indicate whether or not a reserve requirement on balances used in calculating earnings credit is required.

Comment:

7. RESERVE REQUIREMENT FOR INTEREST CALCULATIONS – Proposer must indicate whether or not a reserve requirement on balances used in calculating hard interest to be paid on balances.

Comment:

8. EARNINGS CREDIT RATE – The institution must state the current ECR, rate index (if applicable), and rate floor being proposed (if any):

Comment:

9. INTEREST RATE OPTION(S) – Please mark the account types available to the BRA, the rate basis, the rate, and any fees (if applicable) for the BRA’s balances maintained at the bank:

Indexed/Market/Bank Managed

If offering an Investment Sweep/MMF, please provide the related ticker symbol(s)

Comments/additional info if desired to clarify determination of interest rate:

10. Are these account types and rate options available to the BRA even if another bank is selected for the primary depository contract?

|_| Yes |_| No

Comment:

11. OPTION TO FORGO ECR? – If the interest rate offered by the bank is higher than the ECR, can the BRA forgo earnings credit and earn interest on all balances and pay the service fees on a monthly basis?

|_| Yes |_| No

Comment:

12. Will interest earned on interest bearing accounts be charged as an expense on the account analysis?

Comment:

SAFEKEEPING OF BRA OWNED SECURITIES

The Public Funds Investment Act in conjunction with the Authority’s Investment Policy shall govern the Authority’s investment activity and the successful proposer shall be expected to provide services within the constraints of both. ☐

The Authority requests that the institution provide safekeeping services for the securities owned by the Authority, or offer an alternative option for safekeeping services.

The institution will act as securities clearing agent for all security purchases made by the Authority and for sales of securities from the investment portfolio, and will provide the necessary wire transfer and delivery services required to support investment activities. All securities will be handled on a Delivery Versus Payment (DVP) basis as they are cleared into and out of the Authority’s account. Necessary controls will be negotiated with the institution. Confirmation of trades must be provided to the Authority within one (1) business day.

Security clearance and safekeeping services shall be governed by a "Safekeeping Agreement” or similar contract executed between the Authority and the Institution. 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. The Authority must be notified within seven (7) days of a call date notice for any securities being called prior to maturity.

The Authority prefers a web-based safekeeping transaction monitoring and reporting mechanism.

Please provide a schedule of securities safekeeping fees with the required Response Attachments.

|_| Yes, can provide as expected. |_| No, cannot provide as expected.

Comment:

If your bank offers this service, would you be willing to provide Safekeeping for Brazos River Authority even if your bank is not selected at the primary depository.

|_| Yes |_| No

SERVICES UNDER CONSIDERATION

1. ACCOUNT VALIDATION SERVICES – Can your bank verify account status and account ownership of accounts for outgoing payments using the Early Warning System?

|_| Yes, can provide as described. |_| No, cannot provide as described.

2. INTEGRATED PAYABLES – The Authority is open to exploring varying levels of outsourcing for its payables functions, including ACH transactions, check printing and distribution, and virtual card solutions.

|_| Yes, can provide. |_| No, cannot provide.

INCENTIVES / ENHANCEMENTS OFFERED

1. REMOTE DEPOSIT SCANNERS – Is the institution offering a scanner(s) to the Authority at no additional cost?

|_| Yes, institution is offering the following:

|_| No, institution is not offering a free scanner with the response.

2. INCENTIVE FEE WAIVER – If your institution is offering a waiver of monthly service fees during a specific timeframe, please provide the following information for clarity of the terms of your offer.

|_| Zero-pricing waiver (no fees assessed) during the timeframe of the offer and interest can be earned on balances during this time

Comment:

|_| No waivers - Institution is not offering a waiver of fees

3. CASH TRANSITION ALLOWANCE / RETENTION BONUS/OFFER – If Institution is offering a cash amount to offset the cost of the transition, please provide that amount.

Comment:

4.

OTHER STIPULATIONS

1. TERMS VALID FOR 180 DAYS – The responding bank agrees that the terms in the Proposal will be valid for 180 days from the submission date.

|_| Agreed Comment:

2. RIGHT TO CANCEL UNDER FEDERAL OR STATE LAW RULINGS – In the event it would be ruled illegal under the provisions of any Federal or State laws or regulations for the successful institution to comply with the requirements of the contract, then the Authority expressly reserves the right and privilege to cancel the contract and to re-solicit Proposals.

|_| Agreed Comment:

3. RIGHT TO OPEN & MAINTAIN OTHER ACCOUNTS – The Authority shall have the right, at its sole discretion, to direct, open and maintain accounts at other institutions.

|_| Agreed Comment:

4. RIGHT TO TERMINATE – The Authority expressly reserves the right to terminate the contract with or without cause at any time by providing ninety (90) days written notice to the successful institution to close its accounts and terminate services.

|_| Agreed Comment:

5. TERMS FIXED – All fees, rate indexes (not the rates, just the indexes), and conditions shall be fixed for the entire contract period, including any and all continuations.

|_| Agreed Comment:

6. SEMI-ANNUAL MEETING – The Authority expects a review meeting at least once every six months to evaluate the working relationship between the Authority and the successful institution. The objective shall be to address any problems and to seek solutions as well as keeping abreast of changes, new services, or new requirements.

|_| Agreed Comment:

7. FORMAL CONTRACT REQUIRED – The final appointment of the successful institution shall be made by the Board of Directors. The successful institution shall be required to enter into a contract that incorporates all requirements of its official response to this RFP, together with all schedules, forms, and materials submitted in response to this RFP. The formal agreements must include, at a minimum: (1) a primary depository services contract, (2) a collateral custodial agreement, and (3) a FIRREA‑compliant resolution of certification (see Collateral Requirements). The Authority’s Proposed Depository Services Contract, included with this RFP, will serve as the governing agreement for the provision of depository services.

|_| Agreed Comment:

8. OVERDRAFT NOTIFICATION – In the event a check or checks shall be presented for payment where there are insufficient funds in Authority’s collective accounts, the successful institution agrees to promptly notify the Authority’s Chief Financial Officer or other signatory person, by telephone or other means, of the overdraft condition, and to provide the Authority a period not exceeding one business day to respond and rectify the condition.

|_| Agreed

9. RESEARCH – The Authority expects that all research requests are responded to within three business days of the request.

|_| Agreed Comment:

10. BANK ERRORS – Bank errors resulting in lost interest or incorrect service fees to the Authority must be reimbursed by the bank to the Authority, utilizing a mutually agreed upon method of reimbursement.

|_| Agreed

Comment:

11. AUDIT CONFIRMATIONS – Successful institution must provide account balance audit confirmations to the Authority’s audit firm annually at no charge.

|_| Agreed Comment:

12. ONE RELATIONSHIP OFFICER – The Authority requests one relationship manager to coordinate the successful institution’s efforts and remain directly responsible for facilitating all Authority/Institution interaction.

COLLATERAL REQUIREMENTS

The institution shall pledge collateral to satisfy the requirements of the Public Funds Collateral Act, Chapter 2257, Government Code, and the Authority’s Investment Policy.

1. COLLATERAL AMOUNT – The maximum ledger balances could exceed $1,000,000 in the aggregate. Historically, the average balances are less than $100,000. However, if your bank is proposing an on-balance sheet deposit requiring collateralization, the amounts could exceed $25 million for short time periods, and will likely average in the range of $5 million. Proposer must clearly explain any collateral limitations or fees. The Authority reserves the right to maximize or minimize bank balances regardless of historical patterns. The institution must monitor the collateral adequacy daily and provide additional collateral to secure balances as required.

|_| Yes, can provide as expected. |_| No, cannot provide as expected.

Comment:

2. COLLATERAL CUSTODY – The pledged securities shall be held at an independent collateral custodian acceptable to both the Authority and the institution.

Please provide the name of the proposed independent custodian as well as any related fees.

Name of Proposed Custodian:

|_| Yes, can provide as expected. |_| No, cannot provide as expected.

Comment:

3. LETTERS OF CREDIT or PLEDGED SECURITIES – How will your institution collateralize the Authority’s deposits:

|_| Letters of Credit |_| IntraFi Structure (or similar FDIC spreading program) |_| Pledged Securities

If Pledging Securities please respond to the following:

4. COLLATERAL LEVEL – The typical monthly maximum balance shall determine the total collateral level to be maintained each month in accordance with the Authority’s Investment Policy. This level may be adjusted monthly for seasonality based on historical patterns, but the Authority also requires daily monitoring of the Authority’s balances to insure adequate collateral levels. If current collateral levels will be exceeded, the Authority will notify the bank the day before so that adequate collateral can be added.

|_| Yes, can provide as expected. |_| No, cannot provide as expected.

Comment:

5. COLLATERAL SUBSTITUTION – The Authority prefers that any substitutions of the pledged securities in the total amount pledged shall be made only by and with the proper written authorization of an authorized Authority signatory. How does your institution handle substitutions?

|_| Substitutions will only be done with prior written authorization from the Authority

|_| Substitutions will be done without prior written approval, but always for securities of equal or greater quality and with a market value greater than or equal to the securities being replaced. The Authority, at its sole discretion, has the right to request a different security if the substituted security is unacceptable.

Comment:

6. COLLATERAL REDUCTIONS – The Authority strongly prefers that any reduction of the total amount pledged shall be made only by and with the proper written authorization of an authorized Authority signatory. How does your institution handle collateral reductions?

|_| Reductions will only be done with prior written authorization from the Authority |_| Reductions MAY be done without prior written approval.

If the second option is the one your institution uses, will your bank agree to maintain a minimum threshold of collateral that will not be lowered without prior approval from the Authority?

|_| Yes, can provide as expected. |_| No, cannot provide as expected.

Comment:

7. ADDING COLLATERAL - What is the deadline for requesting additional collateral:

8. COLLATERAL REPORT – The institution and the custodian shall provide Authority a monthly pledged securities report or additional reports at any time requested by Authority. The report must describe the total pledged securities by:

|_| Yes, can provide as expected. |_| No, cannot provide as expected.

Comment:

9. ONLINE REPORTING - Is daily online access to the Authority’s collateral account available through the third-party custodian?

|_| Yes, can provide as requested. |_| No, cannot provide as requested.

Comment:

10. BOARD RESOLUTION – The Board of Directors or designated committee of the institution will be required to provide a FIRREA compliant resolution. The following is an excerpt 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 expected. |_| No, cannot provide as expected.