Request for Proposal AFPD Banking Services.pdf

Request for Proposals –Banking Services Page 1 of 10

REQUEST FOR PROPOSAL

ARVADA FIRE PROTECTION DISTRICT

Banking Services

July 24, 2025

Request for Proposals –Banking Services Page 2 of 10

SECTION 1 – Introduction

The Arvada Fire Protection District (Arvada Fire/district) is a political subdivision of the State of Colorado. Arvada Fire maintains nine active fire stations, throughout approximately 63 square miles in the City of Arvada, the northern portion of the City of Wheat Ridge, and portions of unincorporated Jefferson County.

Arvada Fire has about 250 employees who serve approximately 172,000 citizens. We proudly serve our citizens and each other with dedication, integrity, compassion, courage, and respect.

Arvada Fire is internationally accredited by the Commission on Fire Accreditation International (CFAI) and has been awarded a Class 1 Public Protection Classification (PPC) from the Insurance Services Office (ISO).

Arvada Fire is a special district formed in 1949 and governed by a five-member board of directors elected by voters.

Proposal Requested The Arvada Fire Protection District (Arvada Fire/district) invites qualified financial institutions to submit proposals to provide comprehensive banking services. The goal is to establish a relationship with a financial partner capable of support the district’s cash management, transaction processing, fraud prevention needs in a secure, cost-effective, and technologically forward matter.

Project Background

The district manages an annual operating budget of approximately $74 million. Currently, the district maintains three primary operating accounts, including:

• A main operating account

• A sub operating account

• A sweep account for interest-earning purposes.

The district is currently working to enhance its banking infrastructure, with a focus on improving capabilities in areas such as =positive pay, fraud protection, API integrations, remote deposit, and online payment services.

SECTION 2-Timeline

Timeline Modification: Arvada Fire reserves the right to modify this timeline at any time. Changes will be posted on the Arvada Fire website as soon as information becomes available. All times listed are Mountain Standard Time (MST).

Request for Proposals –Banking Services Page 3 of 10

Timeline Date Time Issue Date July 24, 2025 10:00am Deadline for written questions August 1, 2025 4:00pm Proposal question responses emailed

August 6, 2025 4:00pm

Request for Proposals Due August 22, 2025 4:00pm Target Award Date September, 2025 4:00pm

SECTION 3-Scope of Project

The financial institution shall provide the following:

Wire Transfer Services This service is used minimally, but important when needed. On average, send 2 wires per year.

Describe services provided, including:

• Policy on daylight overdrafts, including aggregation of accounts and wire deadlines.

• Ability of district to initiate and monitor wire transfers online

• Ability to create and store future-dated wire instructions

• Security measures for wire initiation and approval

Automatic Clearing House (ACH) The district primarily utilizes this service to fund payroll through a third-party vendor and to pay utility expenses. As we continue to refine our accounts payable processes, we anticipate increased use of this service moving forward.

• On average the district sends 3,000 ACH per year and receives on average 200 ACH per year.

Describe services provided, including:

• Method by which the district can submit ACH files or initiate ACH via bank software.

• Pre-notification policy and cost.

• Re-presentment of checks (RCK) through ACH on a targeted date

• Security measures for ACH initiation/origination and ACH reception (ACH filters and blocks)

Availability of Funds

• Describe availability of funds and does this differ from Federal Bank availability schedule.

• Provide the bank’s policy on receiving same day credit for deposits and is expedited availability offered.

Monthly Statements and Account Analysis The district operates on a 10-day month-end cycle, with financial reports expected to be delivered to the executive team no later than the 12th of the month. To meet this timeline, it is essential that account statements are made available in a timely manner.

Request for Proposals –Banking Services Page 4 of 10

Describe services including:

• When reports are available and how they are made available (please include example of a report)

• How long report images are maintained online

• The bank’s dispute resolution process

Remote Deposit Services including Check Truncation and Check Conversion and Deposit Services Deposits are currently made remotely unless a cash deposit is needed, in which the nearest bank is utilized for such services.

Describe services, including:

• Scanning equipment (lease options), software, transfer procedures, batching, and security

• Portal entry or standard alone service

• Deadlines for same day credit of deposits

• Document retention polity for checks converted to ACH or processed via remote deposit capture

• Liability for fraudulent deposit items

• Cutoff times and requirements by location

• Discrepancy and write off policies

• Deposit locations

• Deposit reconciliation services availability

Lockbox The Emergency Medical Services (EMS) utilizes a lockbox for payment on services provided.

The expectation would be to obtain a copy of the check, payment remittance and correspondence.

Describe services, including:

• Deadline and format of data transmission

• Current lockbox address and location requirements

• Breakdown on wholesale versus retail processing

• Locations of processing centers

• Handling of processable items or return items

• How processing errors are resolved and expected timeframes for resolution

• Remittance document layout requirements

• Timing requirements

• Transmission requirements

• Treatment of exception (non-standard, un-processable, walk-in) items

• Imaging capabilities

• Conversion of consumer checks to ACH payments

• Disposition of documents (including imaging capabilities and truncation)

Request for Proposals –Banking Services Page 5 of 10

Online Banking Services Provide thorough information of the online banking services including but not limited to daily reporting, format of reporting, transaction execution, internal controls, and API access for integration with the districts ERP system, currently MIP.

Please provide outline of training for these services and supports provided after implementation.

Purchasing Card Services The district currently utilizes two separate financial institutions, one for daily banking needs and another for managing district-issued credit cards. While there are no immediate plans to change this structure, we are requesting a detailed overview of the services your institution provides in both areas. Additionally, please outline the potential advantages of consolidating daily banking and credit card services under a single provider.

Currently the district holds 25 cards with a $300K credit limit.

Fraud Protection Services

Positive Pay Describe services, including:

• Positive pay services and verification items

• Teller data update schedules

• Data transmission methods and time windows

• Control options – notification default

• Internet/Online access (including technical capabilities and system requirements)

Stop Payment Services Describe services, including:

• Online stop payment services (initiation and renewal)

• Confirmation requirements

• Duration of a stop payment (6 months or in perpetuity) and renewal processing options

Customer Service & Support

• Dedicated relationship manager

• 24/7 support for critical issues

• Training for staff during and after implementation

SECTION 4-Submittals The district intends to select an institution in September 2025, and have the project start shortly thereafter based on implementation plan submitted by the institution. Questions regarding this request for proposal (RFP) should be submitted via email to nicole.stewart@arvadafireco.gov.

Arvada Fire will attempt to answer all relevant questions submitted to this email address prior to

Request for Proposals –Banking Services Page 6 of 10 the question deadline listed in the timeline above. All such addenda issued by Arvada Fire prior to the time that proposals are received shall be considered part of this RFP.

Executive Summary Provide a concise summary of your institution’s approach, value proposition, and ability to meet the district’s needs.

Company Profile Legal name, headquarters location, branch locations and chartering authority

General banking Information

• Financial strength:

o Capital rations, asset quality, earnings, liquidity, sensitivity to market risk, deposits, and loans.

o Financial statements for the past two years (with an unqualified opinion from a certified public accountant).

o Call reports for the last four quarters or credit rating information for senior and subordinate debt from a recognized credit rating agency (e.g. Moody’s, S&P) o Rating information from recognized bank rating agencies (e.g. Veribanc, Highline) o Confirmation from the bank that it will communicate to the government any changes in its credit rating or bank rating during the contract period.

• Proof of current standing as an eligible public depository

• Community Reinvestment Act (CRA) rating and rating authority. Include information on the bank’s CRA activity within the government’s jurisdiction

• Description of industry standard index and spread upon which available balances earn interest or earnings credit by account type.

• Funds availability schedule and policy

• A copy of the bank’s proposed custodial agreement for the collateral pledge to secure the government’s account, if applicable. Requirement for execution of the agreement under FIRREA requirements

• Bank’s disaster recovery plan (back-up sites and system back-up process)

• Description of the bank’s dispute resolution and custom service/feedback process.

• Experience serving government entities, specifically Special District’s

Incentives offered by the bank for transition or retention

Accounting Services

• Designated account representative (representative should have sufficient decision-making authority within the bank in order to resolve issues. In addition, the representative should have a strong understanding of the districts operations).

• Back-up staff person

• Bios of all personnel assigned to the district

References (include comparable entities)

Request for Proposals –Banking Services Page 7 of 10

Fee schedule Provided a detailed fee structure including required and optional services. Facilitate comparison between banks.

Historical rate The average interest-bearing options for the prior 12 months (interest bearing accounts, money market accounts, ECR, and sweep rates).

Transition Plan Describe the transition plan approach and timeline defining implementation periods and defined responsibilities.

Conflicts of Interest Disclose any conflicts or perceived conflicts of interest. Identify what procedures your firm utilizes to identify and resolve conflicts of interest.

Insurance Requirements A General Commercial Liability with at least $1 million policy and Workers Compensation at statutorily required limits. Refer to section five for more details.

SECTION 4-Selection Criteria Proposals will be evaluated to identify the best value for Arvada Fire. Proposals will be reviewed by an internal committee where quotes will be evaluated. Proposing bidders may be asked to participate in an interview to further discuss qualifications and to answer questions from the committee. The evaluation process is designed to award this procurement not necessarily to the respondent of least cost. The proposal will be awarded to the responsible, responsive firm whose quote, conforming to this solicitation, will be most advantageous to the district, price and other factors considered.

Proposals will be evaluated based on the following weighted criteria:

Evaluation Criteria Points Quality of Services and Technology 25 Experience and governmental knowledge 15 Fraud Protection & Security Capabilities 15 Fees and Cost Competitiveness 20 Implementation Plan and Support 15 Quality of references 10 Total 100

The district reserves the right to accept or reject any or all quotes, in part or whole, and to waive informalities and minor irregularities in bids received.

Arvada Fire makes no guarantee that an award will be made as a result of this RFP and reserves the right to accept or reject any or all proposals, waive any formalities or technical

Request for Proposals –Banking Services Page 8 of 10 inconsistencies, or delete any item/requirements from this RFP or resulting contract when deemed to be in Arvada Fire’s best interest.

Representations made within the proposal will be binding on the bidder. Failure to comply with the requirements contained in this RFP will result in the rejection of your proposal.

Bidder recognizes and understands that any costs incurred by the bidder from submitting a response to this RFP are the responsibility of the bidder.

Note: Criteria may be modified in subsequent addenda. Arvada Fire is not bound to accept the lowest priced proposal if that proposal is not the best value for Arvada Fire in its sole discretion.

Submission of a proposal indicates bidder’s acceptance of the evaluation technique and recognition that some subjective judgments must be made by Arvada Fire during the selection process.

SECTION 5-RFP Terms and Conditions Submittal Instructions All submittals must adhere to the instructions provided above to be considered.

Proprietary Information It is understood that Arvada Fire is a political subdivision of the State of Colorado and, as such, is subject to the Colorado Open Records Act, CRS §§ 24-72-101 et. seq. (“CORA”). Except as otherwise agreed prior to the award or finalization of any vendor transaction, Arvada Fire shall provide upon request by any third party all information pertaining to such transaction which must be disclosed pursuant to CORA, and Arvada Fire’s obligations under CORA supersede its obligations under any agreement, contract, purchase order, or negotiated transaction. Please contact Arvada Fire if you feel you need to submit confidential information, or clearly mark all information which you consider proprietary and/or confidential.

Refusal Arvada Fire reserves the right to refuse any and/or all proposals or any part thereof.

Withdrawal of Proposal You may withdraw your proposal at any time prior to the date and time set for closing.

Discussions/Negotiations Arvada Fire reserves the right to contact any bidder for clarification of information submitted;

Arvada Fire reserves the right to conduct discussions with bidders, to accept or not accept revisions of proposals, and to negotiate any point in the proposal or the subsequent contract at the sole discretion of the Fire Chief and/or District Board.

Award Awards shall be made to any or all responsible bidders whose submittals are determined to be advantageous to Arvada Fire based on the evaluation factors described above. Price, although a consideration, will not be the sole determining factor. Arvada Fire reserves the right to ask for the “Best and Final Offer” from any or all bidders.

Request for Proposals –Banking Services Page 9 of 10

Pre-Award Presentations Arvada Fire reserves the right to require presentations from the highest-ranking bidders, in which they may be asked to provide additional information and answer questions.

Contract The successful bidder is expected to enter a contract with Arvada Fire that includes terms and conditions acceptable to Arvada Fire. If Arvada Fire cannot reach an agreement with the successful bidder on a contract form acceptable to Arvada Fire, then Arvada Fire may terminate negotiations with the successful bidder and either enter negotiations with another qualified bidder or issue a new RFP, in Arvada Fire’s sole discretion. The contract shall be construed in accordance with the laws of the State of Colorado. In the event any dispute arises hereunder, the venue for any legal proceedings shall be in Jefferson County, Colorado, and bidder hereby submits and agrees to the jurisdiction of the courts therein.

Indemnification Successful bidder shall indemnify and save Arvada Fire harmless from any and all claims, demands, suits, and actions which may arise from errors or omissions caused by the bidder in conjunction with its contractual obligations including, but not limited to, obligations for the preparation of any and all documents required by Arvada Fire in conjunction therewith, and shall defend all suits, in the name of Arvada Fire when applicable, and shall pay all costs and judgments which may issue thereon.

Insurance All vendors/companies/groups (herein referred to as “Vendor”) providing services to or doing business with Arvada Fire Protection District (Arvada Fire) must maintain the following types of insurance with minimum limits of liability as stated below for the duration of the contract. Please send these requirements to your insurance agent or broker and have them provide a compliant Certificate of Liability Insurance (preferably a standard Acord form) to Arvada Fire.

Certificates of Liability Insurance evidencing the coverage, limits and endorsements outlined below must be issued by the insurance agent or carrier at least (5) working days prior to contract execution or work commencing.

Coverage Minimum Limit

Commercial General Liability (CGL) Limit minimum $1,000,000 The Vendor shall maintain CGL coverage for itself and all additional insureds for the duration of the services performed for Arvada Fire and maintain Completed Operations coverage required herein in full force and effect until the expiration of any applicable statutes of limitations. Arvada Fire, a political subdivision of the State of Colorado and its affiliates shall be listed as an additional insured, including without limitation for Ongoing Operations and Products and Completed Operations. The insurance shall include a provision that such insurance afforded by the policy for the benefit of the additional insureds shall be primary and non-contributory to any insurance or self-insurance maintained by the additional insureds. In addition, a Waiver of Subrogation shall be issued in favor of Arvada Fire.

Request for Proposals –Banking Services Page 10 of 10

Workers’ Compensation Statutory Limits ($100,000/$500,000/$100,000) Vendor shall maintain the coverage required by the state for Workers’ Compensation / Employer’s Liability insurance. The policy shall contain a Waiver of Subrogation in favor of Arvada Fire. If vendor is not required by the state to carry Workers’ Compensation / Employer’s Liability insurance and officers have rejected coverage, vendor is required to complete a Declaration of Independent Contractor Status form.

SECTION 6-Warranties, Representations, and Acknowledgments of Bidder

A. By submitting a proposal, Bidder acknowledges and agrees that (1) this RFP is a solicitation for proposal and is not a contract or an offer to contract, and (2) the submission of a proposal by Bidder in response to this RFP will not create a contract between Arvada Fire and Bidder.

B. By submitting a proposal, Bidder offers and agrees to furnish to Arvada Fire the products and/or services described in its proposal, at the prices quoted in the proposal, and to comply with all terms, conditions, and requirements set forth in the RFP documents and contained herein.

C. By submitting a proposal, Bidder represents and warrants that (1) Bidder is a reputable company regularly engaged in providing products and/or services necessary to meet the terms, conditions, and requirements of the RFP; (2) Bidder has the necessary experience, knowledge, abilities, skills, and resources to satisfactorily perform the terms, conditions, and requirements of the RFP; (3) Bidder is aware of, is fully informed about, and is in full compliance with all applicable federal, state, and local laws, rules, regulations, and ordinances; (4) Bidder understands the requirements and specifications set forth in this RFP and the terms and conditions set forth; and (5) all statements, information, and representations prepared and submitted in response to this RFP are current, complete, true, and accurate.

Bidder acknowledges that Arvada Fire will rely on such statements, information, and representations in selecting the successful bidder. If selected by Arvada Fire as the successful bidder, Bidder will notify Arvada Fire immediately of any material change in any matters regarding which Bidder has made a statement or representation or provided information.

SECTION 7-Other Attachments District Documents | Arvada Fire Protection District

2025 Adopted Budget & Financial Policies https://special_district-arvada-fire-protection-district-co-budget-book.cleargov.com/19709/introduction/transmittal-letter https://www.arvadafireco.gov/164/District-Documents https://special_district-arvada-fire-protection-district-co-budget-book.cleargov.com/19709/introduction/transmittal-letter https://special_district-arvada-fire-protection-district-co-budget-book.cleargov.com/19709/introduction/transmittal-letter

SECTION 1 – Introduction