ESBD_File_350365_24-12 RFP Bank Depository Services.pdf

RFP 24-12 Depository Bank Services

HOUSTON COMMUNITY COLLEGE SYSTEM

Procurement Operations Department

3100 Main Street, 11th Floor Houston, Texas 77002

REQUEST FOR PROPOSAL

RFP No: 24-12

DEPOSITORY BANK SERVICES

ISSUED BY:

Procurement Operations Department

FOR :

FINANCE DEPARTMENT

PROCUREMENT OFFICER :

Yasmeen Hasan

E-mail: yasmeen.hasan@hccs.edu

PROPOSAL CLOSE DATE: March 18, 2024 TIME (BY): 2:00 p.m. (local time)

SUBMIT PROPOSAL PACKET IN THE:

HCC BID Portal:

Houston Community College bonfirehub.com

This RFP Solicitation Requires All Proposals To Be Submitted Electronically Through Bonfire. No Paper, Email Or Fax Submissions Will Be Accepted.

mailto:yasmeen.hasan@hccs.edu https://hccs.bonfirehub.com/portal/?tab=login

TABLE OF CONTENTS-

Section Headings Page Number Introduction and General Information 3 Section 1 – Submittal Instructions 4 Section 2 – Project Overview and Scope of Services 6 Section 3 – Schedule of Items and Pricing 33 Section 4 – Proposal Evaluations 39 Section 5 – Instructions to Proposers 34 Section 6 - General Information 42 Section 7 – Required Attachments 51

NOTE: All noted Attachments are to be completed and submitted with Proposal, Attachments 1, 5 and 7 must be signed and notarized.

Exhibit Number Exhibit Title Exhibit 1 Bank Transactions by Account Exhibit 2 Account Analysis Summary Exhibit 3 Financial Impact and Pricing (Reference in

Bonfire) Exhibit 4 Sample Depository Services Contract

SOLICITATION SCHEDULE

The following is the anticipated solicitation schedule including a brief description for milestone dates:

Solicitation Milestone Date & Time RFP released and posted to HCC’s & ESBD’s websites February 9, 2024 Virtual Pre-Proposal Meeting (Non-Mandatory) February 21, 2024, at 10:00 a.m. (local time) Deadline to receive written question/inquiries March 1, 2024, by 5:00 pm (local time) Responses to written questions/inquiries (estimated) March 9, 2024 Proposal Submittal Due Date March 19, 2024, by 2:00 pm (local time) Anticipated Board Recommendation and Approval May, 2024

NOTE: Houston Community College reserves the right to revise this schedule. Any such revision will be formalized by the issuance of an addendum to the RFP and posted on

INTRODUCTION

The Houston Community College, (“HCC” and/or the “College”) seeks proposals from qualified banking institutions or firms to provide Bank Depository and related services in accordance with the scope of services noted below. This includes the basic services of receiving deposits, paying items, wiring funds out, receiving funds wired in, stop payments, and other normal banking activities. Qualified respondents are invited to submit a written response outlining their qualifications and experience to provide the services as described in the Scope of Services, and in accordance with the terms, conditions and requirements set forth in this Request for Proposal (RFP). The successful proposer will provide the scope of services in accordance with all applicable laws, regulations, and professional standards.

This is a Request for Proposal (RFP) pursuant to Chapter 44.031 of the Texas Education Code.

Visit https://hccs.bonfirehub.com/portal for additional information on this and other business opportunities.

GENERAL INFORMATION

Houston Community College's service area is Houston Independent School District, Katy, Spring Branch, Alief Independent School Districts, Stafford Municipal District, and the Fort Bend portion of Missouri City.

The System is accredited by the Commission on Colleges of the Southern Association of Colleges and Schools to award an associate degree.

HCC serves its students each semester by offering associate degrees, certificates, academic preparation, workforce training, and lifelong learning opportunities that prepare students in our diverse community to compete in an increasingly technological and international society. Houston Community College plays an integral role in transforming the lives of its students and making our community work.

More information regarding HCC is located in the annual HCC Fact Book. The Fact Book can be found at www.hccs.edu/about-hcc/institutional-research/hcc-fact-book/.

VENDOR COMMUNICATION:

Communication between the Procurement Operations Department and vendors is helpful and encouraged.

Steps must be taken, however, to maintain a fair opportunity to compete for all vendors and to avoid any appearance of favoritism. In order to protect the integrity of the process, once the solicitation is issued, the following must be observed:

1. Other than the Assigned Procurement Officer listed, all communication is strictly forbidden and may result in disqualification.

2. All requests for clarifications, information and questions must be submitted in writing to the Assigned Procurement Officer during the Question-and-Answer time frame outlined in the solicitation document.

3. All responses and necessary corrections to the solicitation will be communicated through the addendum process by the Assigned Procurement Officer.

The above referenced guidelines will make certain the College is maintaining a fair and equal opportunity among all eligible vendors during the solicitation process.

http://www.hccs.edu/about-hcc/institutional-research/hcc-fact-book/

SECTION 1 – SUBMITTAL INSTRUCTIONS

1. Proposals Submission Instructions HCC prefers that all responses be submitted electronically using the Bonfire eProcurement system.

The College uses Bonfire, an online E-bidding and procurement software platform for supplier registration, solicitation notification, electronic bid submission and contract management. HCC issues solicitations through Bonfire and the supplier registration portal is open and available for vendors to register for bid notifications.

• Registration: To register and use the Bonfire bidding portal, the supplier may:

o Need help registering? If a supplier has questions about how to start the registration process, please review the five-minute training video

Visit Houston Community College bonfirehub.com for additional information on this and other business opportunities.

• Bonfire Supplier Support: For support using the platform, access the online knowledge base, search the FAQ, or contact the Bonfire support team at support@gobonfire.com or 1-800-354-8010.

A. The following are some important notes about Bonfire:

i. Official versions of HCC’s solicitation, associated documents and any updates are available through Bonfire;

ii. Questions are only accepted through Bonfire before the deadline as noted in the

Solicitation Schedule. Associated answers will be posted in Bonfire;

iii. Logging in and/or uploading files(s) does not mean that the response is submitted;

Proposers must successfully upload the required files(s), submit all required information including forms and attachments and click the submit button before Closing Date and Time;

iv. Proposers will receive an email confirmation receipt with a unique confirmation number once Proposers finalize their submission. This will confirm that Proposers have successfully submitted their response;

v. If an item in Requested Information is designated as Required, Proposers will not be able to complete their submission until the requirement is met;

vi. Uploading large documents may take significant time depending on the size of the file(s) and Proposer’s internet connection speed;

vii. Please note the type and number of files allowed. The maximum upload file size is 1000 MB. Please Do Not embed any documents within the uploaded files as they will not be accessible or evaluated;

https://vendorsupport.gobonfire.com/hc/en-us/articles/6796500613655-Vendor-Registration-and-Submission-VIDEO-https://hccs.bonfirehub.com/portal/?tab=openOpportunities https://linkprotect.cudasvc.com/url?a=https%3a%2f%2fsupport.gobonfire.com%2fhc%2fen-us&c=E,1,BJATYpPtdqYSoNMi5IwKEm4lyguXELYUNQZXVfLb7Dgx6ZCdzAQmaF2s9oJ4uDdUOjNGCjgpnZL86JHoTS0lhHrxL88FvRpuK1AKvacF4yzoJZ0byEtXOU_9&typo=1 https://linkprotect.cudasvc.com/url?a=https%3a%2f%2fsupport.gobonfire.com%2fhc%2fen-us&c=E,1,BJATYpPtdqYSoNMi5IwKEm4lyguXELYUNQZXVfLb7Dgx6ZCdzAQmaF2s9oJ4uDdUOjNGCjgpnZL86JHoTS0lhHrxL88FvRpuK1AKvacF4yzoJZ0byEtXOU_9&typo=1 https://linkprotect.cudasvc.com/url?a=https%3a%2f%2fsupport.gobonfire.com%2f&c=E,1,HenQsGBAsMLpYjIhXdko1DK2-z9ZvzBIu9exQ_6TnSVxll58xwD9uF2LQySYCEhb8G0Qs8ll2f8SFC0kuIwK0vIZ0T0M53PXw5iGBkRS8utBIscCbmwIsQ,,&typo=1 mailto:support@gobonfire.com

viii. Minimum system requirements for uploading files(s): Internet Explorer 11, Microsoft Edge, Google Chrome, or Mozilla Firefox. Java Script must be enabled;

ix. If Proposers need technical assistance with using Bonfire, you may contact Bonfire directly at Support@GoBonfire.com or 1.800.654.8010 x2;

x. Please note that all inquiries related to the actual solicitation contents and any clarifications must be submitted to HCC though the Opportunity Q&A feature in Bonfire; and

xi. By submitting a Proposal in Bonfire, Proposer acknowledges and accepts all addenda, questions and answers posted by HCC in Bonfire.

B. Proposers shall meet the following minimum requirements to be considered for evaluation:

i. The proposer shall complete the appropriate Pricing documents found in Bonfire based on goods and/or services offered. The proposer shall submit a fee schedule for any fees not already listed on the line items.

ii. The proposer shall submit all Requested Information in Bonfire and shall submit the

Form CIQ (Conflict of Interest Questionnaire) regardless if conflicts exist. By submitting a Proposal, with a completed Form CIQ, Proposer certifies compliance with the requirements therein.

iii. HCC reserves the right to request additional information as it deems necessary.

iv. It is incumbent upon the Proposer to review the solicitation in whole and particularly the evaluation categories and provide any other information that it deems relevant for HCC’s consideration of their Proposal.

BALANCE OF PAGE INTENTIONALLY LEFT BLANK.

2.0 SECTION 2 –PROJECT OVERVEW & SCOPE OF SERVICES

2.1 Project Overview

The Houston Community College System (“HCC and/or the “College”) is accepting sealed proposals from qualified respondents to provide Banking Depository services for Houston Community College. The purpose of this request is to allow HCC to purchase these goods and/or services from your company while remaining in compliance with state and federal proposal laws and requirements. HCC reserves the right to award separate contracts to multiple contractors.

2.2 Contract Term

The contract term for contract(s) awarded resulting from this solicitation, if any, will be three

(3) years with the option to renew for two (2) two-year terms. Further, HCC reserves the right to extend the contract term on a month-to-month basis, not to exceed three (3) months upon the expirations of the initial term and any successive renewal term.

Pre-Proposal Conference A pre-solicitation conference is scheduled for (February 21, 2024 at 10:00 am CST.) The pre-proposal meeting will be held virtually as indicated in the Solicitation Schedule above via Microsoft Team platform. Link to join the meeting: Pre Proposal Meeting.

Attendance is highly recommended to understand the requirements of this proposal. Any questions/clarifications that result from the meeting shall be submitted through the Vendor Discussions section in Bonfire.

2.3 Scope of Services

The College is requesting proposals from qualified financial institutions to provide the College banking services. The services provided will be in accordance with this RFP and attachments, if any. It is the College’s intent that a bank depository services contract detailing the services to be provided will be duly executed between the College and the selected bank as a result of this bid. The College may choose to waive any irregularities in any responses received and reserves the right to reject all bids.

Any and all charges and fees associated with the Bank Depository Services Contract must be clearly and accurately included in the bid/proposal response. The charges and fees represented in the bid/proposal response shall overrule any and all previous bank service or other agreements between the College and the financial institution, as they relate to the accounts and services included herein. The College will not be obligated by any charges and fees not clearly and the accurately presented in the bid response. Services initiated after consummation of the Bank Depository Services Contract shall carry charges and fees mutually agreed to, in writing, by the College and the awarded bank.

The College intends to manage its funds to minimize service charges and optimize investment income as authorized by College policy and permitted by the laws of the State of Texas. Depending upon market conditions, future collected funds balances may be reduced and invested in other available investment alternatives.

https://teams.microsoft.com/l/meetup-join/19%3ameeting_OGRjMWIzOGEtYWEwNC00ZTU0LWIwZjEtM2MzZjAwOGZhYjc4%40thread.v2/0?context=%7b%22Tid%22%3a%22bedc536d-9380-4d10-9954-ddfc8f5b5bdd%22%2c%22Oid%22%3a%228fe95571-f27f-4df0-a39a-04234dbd6bb1%22%7d

The College reserves the right to open or close any number or type of the accounts, as it deems necessary throughout the term of the agreement. Any fee charged for services not listed but later requested by the College will be mutually agreed upon in writing. All fees shall be fixed for each contract term unless changes in Federal or State of Texas law dictate a change.

2.3.1 Objectives Of The Proposal

To serve as Depository for the Purpose of assisting with the Banking Functions for All or Certain Funds of Houston Community College as an important component of the overall treasury and cash management of the College. From this perspective, the College is seeking a financial institution that is:

a) capable of providing banking services required by the College and willing to be attentive to the College's financial/money matters;

b) Financially sound and meets the legal qualifications and the terms and conditions specified in this request for Proposal; and

c) To develop a foundation for a good working relationship with the depository bank.

2.3.2 Account Activities

The College anticipates establishing an account configuration that consists of the following bank accounts:

• General Accounts Payable Clearing Account

• Accounts Payable Clearing Account

• Accounts Payable Account

• Tuition/Fees/Other Campus Deposits Account

• State/Local Current Restricted Account

• Plant Fund Account

• Federal Restricted Funds Account

• Auxiliary Enterprise Fund Account

• TG Student Loan Account

• System Payroll Account

• Merchant Services Offset Account

• Current Operating Account

• 2013 Limited Tax Bonds Account

• Managed PFI Account

• Retirement of Indebtedness Account

• 2001A Bond Debt Service Reserve Account

• 2003 Limited Tax Bonds

The College issues checks through the A/P Clearing Account which is utilized to issue vendor payments. The average number of checks per month and the estimated dollar amount per month is included in Exhibit 1 and Exhibit 2. The average activity for 2023 with balance information for these accounts is provided in Exhibit 1 and Exhibit 2 and reflected on the Bank Services Fee Schedule. Actual balances and transaction activity could vary significantly.

The College offers its employees a direct deposit of payroll and approximately 4,057 of the 4,147 employees use this service. Also, an average of 90 employees are paid with Payroll Cards.

The College reserves the right to open or close any number or type of accounts as it deems necessary through the term of the Depository Services Contract. Any services not listed, but later requested by the College, will be charged for at a mutually agreed upon fee. Fees are to be fixed for the entire contract period. No additional set-up fees or software fees will be charged if the Depository Bank merges or is acquired by another bank.

Bank Services:

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

2.3.3 Online Reporting Services

The College uses Peoplesoft 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.

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

Comment:

2.3.4 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.

2.3.5 ACH – The College expects a robust ACH system to create ACH credits for direct deposit of payroll and vendor payments, and to direct debit customer accounts for A/R and utility billing charges. The College expects effective date settlement versus pre-funded settlement of ACH Files.

2.3.6 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 checking images is 7 years. Please list your retention period for the items listed below:

• Account transaction history (standard)

• Account transaction history (for additional fee)

• Account Statements

2.3.7 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:

• Remote Deposit Capture access/functionality Yes No

• Positive Pay User Access Yes No

• ACH User functionality Yes No

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

2.3.8 Mobile App Functionality/Access – The College is interested in having access to perform certain online banking functions for the College 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

Please list any additional functionality or clarifications in the comments

Our bank does not currently offer any banking services through a mobile app

2.3.9 Authentication For Access – Please confirm the methods that are available with your bank for protecting the College against unauthorized access:

Secure Token

Secure Token app through cell phone

Secure Browser

Confirmation code sent via text message or email

Biometric authentication

2.3.10 Alert/Messaging System – The College is interested in alerts sent via email and/or text messaging to alert the College of specific activity such as incoming wires, positive pay exceptions, etc.? If your institution offers this service, how is the College charged for this service?

Messaging is provided at no cost

Messaging is provided for a flat monthly fee of

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

Messaging of this type is not currently offered by our bank

2.3.11 ELECTRONIC DATA INTERCHANGE – The College expects Electronic Data Interchange (“EDI”) service in order to see addenda information included with ACH deposits.

2.3.12 Paid Check Image Options – What options does your institution offer for providing copies of paid checks to the College?

Image of paid checks printed on statements

Image of paid checks printed on the online version of the statements

PDF File downloadable to the College each month

Online Image Inquiry/Search

COLLECTIONS

2.3.13 Cash Vault – The College currently uses an armored courier and prefers an institution that offers a cash vault to receive and process the deposits from the armored courier.

Our bank offers and manages our cash vault in-house, located in

Our bank offers cash vault through a third-party vendor , located in

Our bank does not offer a vault option.

DISBURSEMENTS

2.3.14 Controlled Disbursement Account(S) - The College currently utilizes two controlled disbursement accounts for its disbursements. The controlled disbursement presentment notification must also be accessible through online banking services.

This information must be available and accessible by 10:00 A.M. local time.

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

2.3.15 Zero Balance Account - The College expects a zero-balance account for its Payroll

Account and may consider replacing the two controlled disbursement accounts with zero balance accounts. The bank teller function must identify the Payroll Account as a ZBA to ensure employee presentments made at the bank are honored.

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

FRAUD PROTECTION SERVICES

1. Positive Pay And Account Reconciliation Service – The College expects positive pay and full/partial account reconciliation service on designated accounts from which checks are issued. The College electronically transmits the issued check files to the institution. Minimum payment verification criteria shall be payee name, date, check number, and amount. The College may approve and make pay/no pay decisions on any exception items.

2. Automatic Stale Dating Of Checks – The College 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.

3. Post No Checks – The College 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.

4. ACH POSITIVE PAY / ACH FRAUD FILTER – The College 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.

MISCELLANEOUS

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

2. ACCOUNT STATEMENTS – The College expects that statements be rendered within five (5) working days after the close of the calendar month. Monthly cutoff of statements must occur on the last calendar day of each month. Bank will notify College before inactive accounts are placed in dormant status for inactivity. The statement shall include debits and credits made on the last day of the period and the detail items. Bank statements must be received monthly, even if there is no activity for the account. The College expects to have access to online bank statements with images for at least the previous twelve months of statements.

3. ACCOUNT ANALYSIS – The College 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 College on a monthly basis. This requirement applies to “No Fee” or “Fee Waiver” proposals.

4. PAYMENT FOR SERVICES and ACCOUNT SETTLEMENT – The College 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. The College prefers that settlement of the excess/deficient condition as reflected by the group level account analysis occur on a quarterly basis. The College reserves the right to select Monthly Settlement if the pricing structure of the awarded financial institution favors Monthly Settlement. If deficient, settlement is to be made by direct debit to the College’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 College (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)

Fees apply only to non-interest-bearing balances.

Fees to be waived.

Fees to be partially waived.

Fee to be passed in full to the College.

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

Yes

No

Reserve Requirement %

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

Reserve Requirement %

8. EARNINGS CREDIT RATE – The institution must state the current ECR, rate formula, and rate floor being proposed:

ECR %

Rate Formula (i.e., is there an index or is it a bank determination?):

How often will the ECR adjust if not indexed?

Rate Floor:

9. INTEREST RATE OPTION – Please state the current rate, rate formula, and floor being proposed:

Interest Rate %

Rate Basis (i.e., is the rate indexed or bank determination?):

Rate tiers based on balance.

Rate Floor:

Type of Account: (MMA, Interest Bearing Account, ICS, Investment Sweep Account):

Any Fees associated with the recommended investment option:

Are there any restrictions on the number of withdrawals per month for your bank’s recommended interest rate option?

Yes, withdrawals are limited to withdrawals per month.

No, there are no restrictions on withdrawals.

10. OPTION TO FORGO ECR? – If the interest rate offered by the bank is higher than the ECR, can the

College forgo earnings credit and earn interest on all balances and pay the service fees on a monthly basis?

11. Interest earned on interest bearing accounts must NOT be charged as an expense on the account analysis. Please confirm acceptance of this condition.

Yes, confirmed

No, interest will be charged as an expense on the account analysis statement.

SAFEKEEPING OF COLLEGE OWNED SECURITIES

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

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

The institution will act as securities clearing agent for all security purchases made by the College 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 College’s account. Necessary controls will be negotiated with the institution. Confirmation of trades must be provided to the College within one (1) business day.

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

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

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

SERVICES UNDER CONSIDERATION

1. SMART SAFE – The College is considering the possible use of Smart Safe for the secure handling of cash receipts. Please provide details for this service including cost associated with this service.

Please describe any requirements the College would have to consider for this service.

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

Please provide a detailed description of how this service is set up, including pricing options for transactions and all equipment:

Description:

2. APPLICATION PROGRAM INTERFACE (API) – Does your bank offer APIs to assist with the following:

Establish connectivity to wire payment services through our ERP system

Initiate Payment transactions (via wire or ACH)

Transmit positive pay files to bank

Obtain status of wire transfers

Obtain account balance, transaction activity, charges, etc. for internal reporting purposes

Please use the section below to provide additional information regarding how your APIs can add efficiency to our treasury management operations. Please provide details on the specific API call types supported (web services, REST, etc.…) and what authentication methods you support for connecting to those.

3. 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.

4. INTEGRATED DISBURSEMENT SERVICES – The College is interested in considering different levels of outsourcing for its disbursement function including, but not necessarily limited to, check printing and distribution.

Yes, can provide. No, cannot provide.

INCENTIVES/ENHANCEMENTS OFFERED

1. TAMPERPROOF DEPOSIT BAGS – Will the institution provide tamperproof bags at no charge?

2. ENDORSEMENT STAMPS & DEPOSIT SLIPS – Will the institution provide endorsement stamps and deposit slips at no charge?

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

Yes, institution is offering the following:

Number of scanner(s)

Brand of Scanner

Single feed, or number of documents scanned / minute

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

4. 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

Number of months of the fee waiver:

Maximum dollar amount of waiver (if any limitations):

No waivers - Institution is not offering a waiver of fees

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

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

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 College expressly reserves the right and privilege to cancel the contract and to re-solicit proposals.

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

4. RIGHT TO TERMINATE – The College 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.

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

6. SEMI-ANNUAL MEETING – The College expects a review meeting at least once every six months to evaluate the working relationship between the College 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.

7. FORMAL CONTRACT REQUIRED – The final appointment of the successful institution shall be made by the College Board of Trustees. The successful institution shall be required to enter into a contract that incorporates all of the requirements of their official response to this RFP, along with the accompanying related schedules and materials as called for in this RFP. The formal agreements should include: a primary depository services contract, a collateral custodial agreement, and a FIRREA compliant resolution of certification (see reference under the Collateral Requirements). A sample of the proposed contract is attached.

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

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

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

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

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

Description Name Title Phone Relationship Officer Address Email Address

COLLATERAL REQUIREMENTS

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

1. COLLATERAL AMOUNT – The maximum ledger balances could exceed $6,000,000 in the aggregate. Historically, the average balances are less than $5,000,000. Applicant must clearly explain any collateral limitations or fees. The College 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 custodian acceptable to both the College 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 College’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 College’s Investment Policy. This level may be adjusted monthly for seasonality based on historical patterns, but the College also requires daily monitoring of the College’s balances to insure adequate collateral levels. If current collateral levels will be exceeded, the College will notify the bank the day before so that adequate collateral can be added.

5. COLLATERAL SUBSTITUTION – The College 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 College signatory. How does your institution handle substitutions?

Substitutions will only be done with prior written authorization from the College

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 College, at its sole discretion, has the right to request a different security if the substituted security is unacceptable.

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

Reductions will only be done with prior written authorization from the College

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 College?

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

Name Type / Description

CUSIP

Par Value Current Face Value Maturity Date

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

9. 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.

REQUIRED DISCLOSURES

As defined in Section 105.015 (c), each applicant shall comply with the conflict-of-interest provision of Section 131.903 of the Texas Local Government Code in regard to the selection of the depositories: ☐

Sec. 131.903. CONFLICT OF INTEREST.

(a) A bank is not disqualified from serving as a depository for funds of a political subdivision if:

(1) an officer or employee of the political subdivision who does not have the duty to select the political subdivision's depository is an officer, director, or shareholder of the bank; or

(2) one or more officers or employees of the political subdivision who have the duty to select the political subdivision's depository are officers or directors of the bank or own or have a beneficial interest, individually or collectively, in 10 percent or less of the outstanding capital stock of the bank, if:

(A) a majority of the members of the board, commission, or other body of the political subdivision vote to select the bank as a depository; and

(B) the interested officer or employee does not vote or take part in the proceedings.

(b) This section may not be construed as changing or superseding a conflicting provision in the charter of a home-rule municipality.

In addition, the following disclosures apply:

Disclosure of interest: Pursuant to Chapter 176 of the Texas Local Government Code, a person, or agent of a person, who contracts or seeks to contract for the sale or purchase of property, goods, or services with the College of College, Texas must file a completed conflict of interest questionnaire which is available at www.ethics.state.tx.us. The conflict-of-interest questionnaire must be filed with the College of College, Texas no later than the seventh business day after the later of the date that the person or agent begins contract discussions or negotiations with the College or submits to the College an proposal, response to a request for proposal or bid, correspondence, or writing related to a potential agreement. An updated conflict of interest questionnaire must be filed in accordance with Chapter 176 of the Texas Local Government Code. An offense under Chapter 176 is a Class C misdemeanor.

Certificate of interested parties: Section 2252.908 of the Texas Government Code applies to all contracts entered into on or after January 1, 2016. The law states that a governmental entity may not enter into certain contracts with a business entity unless the business entity submits a disclosure of interested parties to the governmental entity at the time the business entity submits the signed contract to the governmental entity. The law applies, with a few exceptions, to all contracts/purchases of a governmental entity that require action or vote by the governing body of the entity. The electronic filing proposal process can be started on the Texas Ethics Commission website at www.ethics.state.tx.us. The College acknowledges that publicly traded business entities are exempt from this requirement.

http://www.ethics.state.tx.us/ http://www.ethics.state.tx.us/

In compliance with Chapter 2252 Subchapter F, of the Texas Government Code, prohibiting government contracts with a company doing business with Iran, Sudan or a foreign terrorist organization, the College of College, Texas will not enter into a contract with a company reported on the LISTED COMPANIES per Section 2252.153.

REQUIRED CERTFICATIONS

1. Certification Regarding Boycotting of Israel. Texas Government Code, Title 10, Subtitle F, Chapter

2271.002 - Provision Required in Contract. (a) This section applies only to a contract that:

(1) Is between a governmental entity and a company with 10 or more full-time employees; and

(2) Has a value of $100,000 or more that is to be paid wholly or partly from public funds of the government entity.

(b) A governmental entity may not enter into a contract with a company for goods or services unless the contract contains a written verification from the company that it:

(1) Does not boycott Israel; and

(2) Will not boycott Israel during the term of the contract.

2. Certification Regarding Boycotting of Certain Energy Companies. Texas Government Code, Title 10, Subtitle F, Chapter 2276.002 - Provision Required in Contract. (a) This section applies only to a contract that:

(1) Is between a governmental entity and a company with 10 or more full-time employees; and

(2) Has a value of $100,000 or more that is to be paid wholly or partly from public funds of the government entity.

(b) Except as provided in Subsection (c), a governmental entity may not enter into a contract with a company for goods or services unless the contract contains a written verification from the company that it:

(1) Does not boycott energy companies; and

(2) Will not boycott energy companies during the term of the contract.

(c) Subsection (b) does not apply to a governmental entity that determines the requirement of Subsection (b) are inconsistent with the governmental entity’s constitutional or statutory duties related to the issuance, incurrence, or management of debt obligations or the deposit, custody, management, borrowing, or investment of funds.

3. Certification Regarding Boycotting of Firearms Entity or Firearms Trade Association. Texas Government Code, Title 10, Subtitle F, Chapter 2274.002 - Provision Required in Contract. (a) This section applies only to a contract that:

(1) Is between a governmental entity and a company with at least 10 full-time employees; and

(2) Has a value of at least $100,000 that is paid wholly or partly from public funds of the government entity.

(b) Except as provided by Subsection (c) and Section 2274.003, a governmental entity may not enter into a contract with a company for the purchase of goods or services unless the contract contains a written verification from the company that it:

(1) Does not have a practice, policy, guidance, or directive that discriminates against a firearm entity of firearm trade association; and

(2) Will not discriminate during the term of the contract against a firearm entity or firearm trade association.

(c) Subsection (b) does not apply to a governmental entity that:

(1) Contracts with a sole-source provider; or

(2) Does not receive any bids from a company that is able to provide the written verification required by that subsection.

PROPOSAL SUBMITTED BY

This proposal is being submitted to the College by the following person duly authorized to act on behalf of this applicant.

Name of Financial Institution FDIC or NCUA Certificate #

Address of Financial Institution

Telephone #

Email Address

Officer Name & Title (printed)

Officer Signature _____________________________________________________________

Signature indicates respondent accepts the specifications, terms and conditions of this RFP and that applicant is not delinquent on any payment due the College or involved in any lawsuit against the College.

Date:

COMPLETE PROPOSAL CHECKLIST

(Please provide in the order listed)

☐ Executive Summary / Coversheet ☐ Completed RFP in PDF format uploaded to Bonfire.

☐ Completed Fee Schedule uploaded to Bonfire.

COMMENTS:

☐ PRO-FORMA ACCOUNT ANALYSIS – A pro-forma account analysis statement using your format and service descriptions that reflect your proposed fees based on the volumes provided in this RFP and indicate any capability to provide the information electronically.

COMMENTS:

☐ SAMPLE COLLATERAL AGREEMENT – As required by Bank/Custodian named in the RFP.

COMMENTS:

☐ SAMPLE SAFEKEEPING AGREEMENT – As required by Safekeeping Agent.

COMMENTS:

☐ SAMPLE SAFEKEEPING REPORT OF COLLEGE-OWNED SECURITIES – Sample safekeeping report of the College owned securities that the College will receive monthly.

☐ SECURITIES SAFEKEEPING FEES – Schedule of Securities Safekeeping Fees.

☐ REFERENCES – List of at least three (3) comparable references and current Texas public funds clients, with total number of collateralized Texas public fund clients.

☐ SAMPLE FIRREA COMPLIANT DOCUMENT – A sample copy of the document that clearly shows that the institution’s Board or designated committee has accepted the Depository Contract and authorized the pledge of collateral, with a permanent record of this action to be maintained in the minutes of the institution.

☐ COMPLETED AND SIGNED DISCLOSURES – As required and applicable within the RFP.

☐ COMPLETED AND SIGNED PROPOSAL SUBMITTED BY FORM – Please include the signed form in the PDF file as well.

COMMENTS:

☐ EXCEPTIONS TO RFP REQUIREMENTS – Please provide a summary of any exceptions your institution has noted regarding the requirements as contained in this RFP.

APPLICANT’S INITIALS: _______

Section 2 – Bank Services Fee Schedule

1. Instructions Proposer must complete this section in its entirety and may supplement this section with additional pages as to provide HCC with a more detailed breakdown, backup and/or options of related cost associated with the services being solicited in this solicitation. The Total Cost for the solution provided must be a turnkey cost inclusive of but not limited to travel and living expenses.

2. Schedule of items and prices

Refer to and complete the attached Exhibit No. 03 Financial Impact and Pricing posted in Bonfire.

3. Price Proposal Signature The information in this RFP is to be utilized solely for preparing the proposal response to this RFP and does not constitute a commitment by HCC to procure any product or service in any volume.

Name:

Title:

Revised 05.26.23.

Section 3 – Proposal Evaluations

An Evaluation Committee (“Committee”) will review all proposals to determine which proposers have qualified for consideration according to the criteria stated herein. The Committee’s evaluations will be based on all available information, including qualification statements, subsequent interviews, if necessary, reports, discussions, reference checks, and other appropriate checks. The highest rated proposer(s) evaluated by the Committee may be invited to make an oral presentation of their written proposal to the Committee.

An evaluation committee will score proposals on the basis of the following evaluation criteria:

Evaluation Criteria (Phase one) Max Points Firm’s Qualification and Experience (Tab 1) & Demonstrated Qualifications of Personnel and Team (Tab 2)

Range of services offered (Tab 3) 25

Vendor’s Past Performance and references (Tab 4) 20

Financial Impact and Pricing (Tab 5) 35

Total Points 100

The College’s Evaluation Committee will evaluate and rank each submittal based on the qualification criteria detailed above, the College may schedule interviews and demonstrations with the highest ranked firm(s).

*Price points shall be calculated based on the cost of services and the interest rates offered on the College’s average balances.

The following criteria will also be part of the analysis:

1. Financial strength and stability of institution (Financial Impact and Pricing);

2. Completeness of proposal and agreement to points outlined in the RFP (approach and methodology);

3. Ability to perform and provide the required and requested services (approach and methodology);

4. Reputation of proposer and quality of services (past performance);

5. Cost of services (Financial Impact and Pricing);

6. Earnings credit calculation on compensating balances (Financial Impact and Pricing);

7. Transition cost, retention and transition offers and incentives (Financial Impact and Pricing);

8. Funds availability (Financial Impact and Pricing);

9. Interest paid on interest bearing accounts and deposits (Financial Impact and Pricing);

10. Previous service relationship with the College (Past performance and…