Comprehensive Banking Services

Town of Colchester— Comprehensive Banking Services RFP Page 1 Town of Colchester Request for Proposal Comprehensive Banking Services BID# 2022- 014 Proposal Due Date 12/16/2022 By: 11:00 am EST Town of Colchester— Comprehensive Banking Services RFP Page 2 Town of Colchester Board of Selectmen Invitation to Bid Comprehensive Banking Services Bids shall be addressed to 1st Selectman, Andreas Bisbikos, 127 Norwich Avenue, Suite 201, Colchester, Connecticut. 06415 on or before 11 A.M. Friday December 16, 2022. Bids shall be submitted in a sealed envelope clearly marked, “BID # 2002- 014 BANKING SERVICES.” Bid opening shall take place at the Colchester Town Hall, Office of the 1st Selectman, 127 Norwich Avenue, Suite 201, Colchester, CT. 06415 at 2:00 P.M. Friday, December 16, 2022. Any questions concerning this bid may be answered by contacting the Director of Finance Debbie Kratochvil at (860) 537-7229. No right shall accrue to any person submitting a bid until such bids have been

accepted and contract awarded in writing by the duly authorized representative of the Colchester Board of Selectman. The Colchester Board of Selectman reserves the right to reject any and all bids and to accept the lowest responsible bidder, and to waive any informalities, omissions, excess verbiage, or technical defects in the Bidding, if, in the opinion of the Board of Selectman, it would be in their best interest to do so. Town of Colchester— Comprehensive Banking Services RFP Page 3 Town of Colchester REQUEST FOR PROPOSAL (“RFP”) FOR COMPREHENSIVE BANKING SERVICES Table of Contents I. Introduction ...................................................................................................................................... 3 II. RFP Requirements and Schedule ...................................................................................................... 3 III. Scope of Services .............................................................................................................................. 7 IV. Information Requested ..................................................................................................................... 8 V. Evaluation and Award Criteria ........................................................................................................ 17 Appendix A: Intention to Submit a Proposal ............................................................................................... 18 Appendix B: Expected Volume Levels ......................................................................................................... 19 Appendix C: Current Account Structure ..................................................................................................... 20 Town of Colchester— Comprehensive Banking Services RFP Page 4 I. Introduction Town of Colchester seeks to create a strategic partnership with an Official Banking Services Provider, and desires to partner with a first-class organization that shares our values of extraordinary customer service, good stewardship of public resources, and giving back to the community. Town of Colchester is looking for a strategic partner who understands the value of the association with our Town locally, regionally, and nationally. II. RFP Requirements and Schedule This Request for Proposal (RFP) is issued to solicit proposals from qualified, experienced, financially sound, and responsible firms to provide comprehensive banking services for Town of Colchester. The services needed are outlined below. The scope of services is further defined in Section III. • Depository services • Positive pay services • Remote Deposit Capture • Electronic Funds Transfer—ACH, Wires • Cash management and investment services • Electronic banking • Merchant Services In selecting a financial institution, the Town’s primary goals are to partner with a financial institution that demonstrates quality and responsiveness in its customer service and can demonstrate the local decision- making authority available to handle the Town’s emergency needs as they arise. A detailed description and graphical representation of the current account structure is in Appendix C. Proposals may include alternate account structures that offer improved efficiency and economy. A. SCHEDULE OF PROPOSAL Issue RFP 11/04/2022 Written Clarifications Due 11/18/2022 Responses to Questions 12/02/2022 Proposals Due 12/16/2022 Bid Reviews /Evaluations 12/16/2022 Award bid-Selection (Board of Selectmen Meeting) TBD Implementation/Go-live TBD Town of Colchester— Comprehensive Banking Services RFP Page 5 B. INTENTION TO SUBMIT PROPOSAL If your financial institution is interested in receiving updates to this Request for Proposal, including responses to submitted questions from all participating financial institutions, please complete Appendix A: Intention to Submit Proposal. If we have not received the requested information in Appendix A from you by 11/18/2022, we will assume you are not submitting a proposal. C. SUBMISSION OF WRITTEN QUESTIONS All questions about the RFP shall be submitted by email by 11/18/2022 end of business to dkratochvil@colchesterct.gov The Town will provide electronic responses to questions to all prospective proposers by 12/02/2022 D. PREPARATION OF PROPOSAL Careful attention must be paid to all requested items contained in this RFP. Please read the entire package before bidding. Each proposal shall be prepared simply and economically, avoiding the use of elaborate promotional materials beyond what is sufficient to provide a complete, accurate, and reliable presentation. For ease of review, the proposals must follow the outline in Section IV of this RFP. Each response should be clearly numbered and the full question listed. Each page of the proposal must be sequentially numbered. E. SUBMISSION OF PROPOSALS In order to be considered for selection, financial institutions must submit response to this solicitation no later than 11:00 A.M. on 12/16/2022 No other distribution of the proposal shall be made by the financial institution. It is the responsibility of the financial institution to assure that the offer is delivered to the place designated to receive offers prior to the deadline. Offers received after the deadline may not be considered. No unsolicited corrected or resubmitted proposal will be accepted after the proposal submission deadline. F. TIME AND LOCATION OF PROPOSER’SPRESENTATION If deemed necessary, the Town may invite selected financial institutions to meet with the evaluation team. Town of Colchester— Comprehensive Banking Services RFP Page 6 G. EFFECTIVE PERIOD OF PROPOSALS Proposals must state the period for which the proposal shall remain in effect (i.e. how much time does the Town have to accept or reject the proposal under the terms proposed). Such period shall not be less than 180 days from the proposal date. H. BID RESERVATIONS Notwithstanding any other provisions of this RFP, the Town reserves the right to award this contract to the financial institution that best meets the requirements of the RFP and not necessarily to the lowest cost proposer. Further, the Town reserves the right to reject any or all bids, to award in whole or in part, and to waive minor immaterial defects in bids. The Town may consider, at its sole discretion, any alternative bid. I. CONTRACT NEGOTIATIONS Negotiations may include all aspects of services and fees. After a review of the proposals, and potentially in-person presentations, the Town intends to enter into contract negotiations with the selected financial institution. If a contract with the selected financial institution is not finalized within 90 days, the Town reserves the right to open negotiations with another financial institution. J. AWARD OF CONTRACT The selected financial institution shall be required to enter into a written contract with the Town in a form approved by legal counsel for the Town. This RFP and the proposal, or any part thereof, may be incorporated into and made a part of the final contract. The Town reserves the right to negotiate the terms and conditions of the contract with the selected proposer. K. CONTRACT TERM It is the intent to award the contract for an initial 3-year period with the option to renew it for an additional 3-year period. The decision to renew the contract will be at the sole discretion of the Town. Proposers must agree to fix contract fees for the first three (3) years. If the proposer intends to revise its fee schedule after the initial period, it must give written notice to the Town 90 days in advance of any fee change. Fees may be changed only on the contract anniversary date. These fees are subject to negotiation and approval by the Town and may not exceed the annual consumer price index-urban (CPI-U) for the most recently available 12-month trailing period. L. DISPOSITION OF PROPOSALS All proposals submitted become the property of the Town and will not be returned to the bidder. M. COST INCURRED IN RESPONDING This solicitation does not commit the Town to pay any costs incurred in the preparation and submission of proposals or in making necessary studies for the preparation thereof, nor to procure or contract for services. N. ASSIGNMENT The successful proposer shall not assign, transfer, convey or otherwise dispose of the contract, or right, title of interest, or power to execute such a contract to any person, firm, or corporation without the previous consent in writing by the Town. Town of Colchester— Comprehensive Banking Services RFP Page 7 O. CONTRACT STIPULATIONS The successful proposer shall indemnify and hold harmless the Town, its agents, employees, contractors, faculty members, students, and trustees from and against any and all claims, losses, actions, damages, expenses and all other liabilities, including, but not limited to attorney’s fees, directly or indirectly arising out of or resulting from the successful proposer’s and/or its employees’ and agents’ operations hereunder. The laws of New London County shall govern the interpretation and performance of the resulting agreement. Any action brought to enforce any provision of the agreement shall be brought in the appropriate courts of New London County. The contents of the proposal and any clarification thereto submitted by the successful proposer shall become part of the contractual obligation incorporated by reference into the ensuing agreement, unless modified by mutual agreement in writing. The successful proposer represents that the terms, conditions and prices established under the subsequent contract resulting from this RFP are equal to or better than those offered to other institutions, comparable Towns and Municipalities. If during the term of the contract the successful proposer offers more favorable terms, conditions or prices to another institution, comparable Town or Municipalities, the successful proposer agrees to notify the Town. The contract resulting from this RFP shall be amended to reflect more favorable terms, conditions, or prices. P. CAUSES FOR TERMINATION Causes for termination of the agreement may include an of the following: Failure to promptly and faithfully provide the services required at the prices indicated in the proposal; violation of any law governing services provided to the Town; failure to cooperate upon receiving any reasonable request for information or service; or improper actions of the officers or employees which, in the opinion of the Town, would adversely affect its interest, or endanger the structure of the banking institution such as a spin off or merger which materially affects the terms of this agreement. The Town may terminate the agreement without penalty on 90-day notice. Town of Colchester— Comprehensive Banking Services RFP Page 8 III. Scope of Services A. GENERAL REQUIREMENTS The Town prefers that the financial institution have a local branch network in order to meet the organization’s cash management needs and to serve its employees. B. DEPOSIT SERVICES The Town deposits approximately 921 checks per month using Remote Deposit Capture and deposits an average of $46,655.38 in currency and coin per month. Currency and coin deposits are delivered to the financial institution by a Town employee and Public Safety Officer. Required services include: • Process deposits of approximately 921 checks per month using RDC, • Process foreign and domestic wires received and sent by the Town, • Image deposited items, • Provide online access for deposit reconciliation including images of deposited items. C. DISBURSEMENT SERVICES The Town currently disburses approximately 320 checks per month. Positive pay services are not currently used on disbursement accounts. We are interested in exploring this as an option. Required services include: • Provide payee positive pay services with online transmission of check details, • Provide positive pay exception item review and correction online, • Provide online stop payment services, • Provide electronic archival of cleared checks (images of front and back), and • Provide online access to cashed check images. D. ELECTRONIC FUNDSTRANSFER The Town processes approximately 275 ACH Credits and 1625 ACH Debits each month. Required services include: • Accept and send ACH transactions, • Provide ACH debit blocking services, • Provide a secure electronic method to initiate intra-bank transfers, and • Provide a secure electronic method for authorization for wiring funds. E. REPORTING The Town requires access to daily reports of balances and transaction information. Prior day reporting must include ledger balance, available balance, and summary and details of credits/debits posted. Current day reporting requirements include wire transfer activity and ACH receipts. Required services include: • Provide online balance reporting services, • Allow Town employees with different levels of authorization to access the bank’s online reporting system, • Provide monthly activity statements and reports electronically, Town of Colchester— Comprehensive Banking Services RFP Page 9 • Provide a detailed monthly account analysis statement for each individual account and a consolidated statement showing charges for all account services. • Provide electronic notification on all returns with details F. BANK BALANCES During the past 12 months, the Town maintained an average collected balance of $6,000,000. Balances fluctuate throughout the year from $8 million to $20 million. Compensating balances are currently used to generate earnings credits, which offset service fees. The Town is also interested in investing funds in a sweep or interest-bearing account. Required services include: • Provide an overnight investment service (sweep) and/or interest-bearing account for excess cash balances in the demand deposit accounts. G. ADDITIONAL SERVICES You may include any additional services you desire to offer, along with the cost involved. All such proposals may be accepted individually or collectively, or rejected at the Town’s discretion. Each additional service will be evaluated on the basis of its net benefit to the Town. IV. Information Requested A. QUALIFICATIONS AND EXPERIENCE 1. Provide a general overview and brief history of your organization, including parent and/or subsidiary companies and the number of employees. 2. Provide the address of the office location(s) that will service the account. 3. Describe the experience of the financial institution in providing similar services for other Towns and Municipalities. 4. Complete the following table with current credit ratings by Standard & Poor’s Rating Services and Moody’s Investor Services. If the proposer is not rated by these rating organizations, provide other evidence of the institution’s financial strength. Town of Colchester— Comprehensive Banking Services RFP Page 10 Financial Institution Standard & Poor’s Rating Moody’s Investor Services Short-term Unsecured Senior Debt Long-term Unsecured Senior Debt Financial Institution Holding Company Standard & Poor’s Rating Moody’s Investor Services Short-term Unsecured Senior Debt Long-term Unsecured Senior Debt 5. Discuss the firm’s current capital structure, adequacy, and coverage. If applicable, provide the firm’s risk-based capital classification (Well Capitalized, Adequately Capitalized, Under Capitalized, Significantly Undercapitalized). 6. Include and electronic copy of the most recent audited financial statement and the latest 10-k report with the proposal. 7. Provide the bank’s Community Reinvestment Act (CRA) rating. B. PERSONNEL 1. Provide the name, title, address, phone number, fax number and email address of the primary contact person(s) assigned to this account. 2. Describe your firm’s policy on changing the primary contact person on an account. 3. Name the individuals who will work with the Town on a day-to-day basis. Information should include: a. Experience working with other Towns and Municipalities b. Proposed role with regard to the Town’s account c. Number of years of experience in this field d. Number of years with your firm e. Describe the level of local decision-making authority these individuals have to handle emergency needs of the Town as they arise. 4. Will a specific customer service representative or a customer service department be assigned to handle day-to-day transactions for the Town? a. Describe the responsibilities of the customer service personnel, including the chain of command for problem resolutions. b. Is local customer service support available at the bank’s local branches? c. What are the hours of operation of each customer service unit involved in supporting the proposed services? d. If an error is discovered by the Town, how would you propose to resolve it (i.e. who should the Town contact first, etc.)? 5. IT Resources: Will the bank provide dedicated IT liaison(s) to work on set-up, file transfer, testing and troubleshooting/issue resolution? During what hours is technical support available? Town of Colchester— Comprehensive Banking Services RFP Page 11 C. GENERAL BANKING SERVICES 1. Deposit Processing a. Please provide a listing of bank branches, noting the address and distance of the branch closest to the Town. b. For deposits collected and transported by the Town, which branch location do you propose the Town use to deposit funds? c. Does the financial institution accept loose and/or rolled coin for deposit at this branch? d. What is the ledger cutoff time for deposits? e. How are deposits credited? Are all items immediately verified? If provisional credit is given, when does verification take place? If the financial institution corrects a deposit, how with the Town be informed of this change? 2. Remote Deposit Capture a. Describe the financial institution’s ability to process checks by RDC. b. Is there a limit on the number of checks that can be contained in a single deposit? c. Does your service allow for multiple deposits in a single day? d. How will we be notified of deposit corrections and/or adjustments? e. Describe the process used for balancing and correcting deposits transmitted to your institution. f. Does your service offer the ability to adjust data using recognition technology that was not captured correctly by the scanner? If yes, please describe. If not, does the service allow the addition, deletion, and rescanning of checks during both the correction and balancing functions? g. What equipment does the financial institution recommend for RDC and what is the price for this equipment? h. Can checks be automatically endorsed with the financial institution’s RDC service? Is the automatic endorsement an electronic image or printed on the check? i. Are checks cleared as ACHs or image replacement documents? How does the financial institution’s software determine the clearing mechanism? j. Is there a difference in legal standing for items clearing by ACH or image replacement documents (IRDs)? If so, please describe. 3. Coin/Currency Ordering Services a. Does the financial institution have an automated coin/currency ordering service? Describe the deposit and change order procedures, cutoff times, security and other features of this system. b. Describe change order procedures and restrictions for branch pick up. 4. Returned Item Processing a. Does the financial institution offer any options that may increase the collection of NSF checks? b. Can the financial institution provide online access to electronic images (back and front) of returned items? How soon after an item is returned can these images be accessed? c. Can the financial institution provide a summary report of returned items identifying the payer’s name, depositing location, deposit date, and the type of item being returned? Town of Colchester— Comprehensive Banking Services RFP Page 12 5. Availability of Deposits a. How does the financial institution determine and calculate availability of deposited items? b. Does the financial institution give immediately availability for on-us items? c. Does the financial institution calculate availability by item or formula? d. Is the availability assignment made continuously as checks are released for collection, or is assignment made at specific times during the day? e. Provide a copy of the availability schedules the financial institution proposes to use. Is this the best schedule offered to any customer? If not, quantify the difference and explain how the Town may obtain the financial institution’s best availability schedule. Describe the extra charge, if any, for obtaining the financial institution’s best availability schedule. f. List your cutoff times for giving same-day value on EFTs (e.g. wire, ACH/bulk) received. How soon after the bank receives incoming funds (e.g. wire, ACH/bulk), or notification of incoming funds, does the Town receive good value in its account? g. What is the float period assigned to foreign items? 6. Positive Pay a. Does the financial institution offer Positive Pay and Payee Positive Pay? b. How would the Town transmit check issuance information to the financial institution? c. What is the deadline for the transmission of check issuance files to the financial institution? d. How frequently can transmission files be uploaded to the financial institution for the issuance of additional checks, and/or recently voided items? Is there a limit to the number of files per day? e. Does the financial institution offer the ability to manually enter one-time check disbursements issued during the day? Please describe. f. What controls are in place to protect against lost files and duplications of transmissions? If duplicates are sent, is there a penalty or potential issue? g. How will the Town be notified of exception items? What time will the Town receive the information on exception items? What time does the Town have to notify if an exception should be accepted or rejected? Does the financial institution offer a “do not pay” default for exception items? h. Will stale dated checks be reported as exception items? i. Is Positive Pay required for all demand deposit accounts, even on accounts with no check writing functionality? Can accounts be designated as “post no checks” to prevent potential fraud? Is there a cost to make this account designation? j. Is Teller Positive Pay available? How frequently is check issuance information updated and available to tellers? k. Are there any other fraud protection services that the financial institution provides and/or recommends? 7. Stop Payments a. How are stop payment orders placed? Can stop payments be placed on line? b. Are stop payment requests effective immediately? If not, how long does it take for a stop payment request to be effective? c. Will the system verify if a check has been paid before processing the stop Town of Colchester— Comprehensive Banking Services RFP Page 13 payment request? d. What term options are available for stop payments? e. Can stop payments be automatically renewed? If so, for how long? What is the associated fee for each renewal? 8. ACH Processing a. What ACH file transmission options are available? b. What are the transmission deadlines for ACH files? When does the financial institution need the file from the Town and when are the funds debited from the Town’s accounts? c. How are returned and rejected ACH transactions handled? What information does the financial institution provide to assist in identifying returned and rejected ACH transmissions? When is this information available? d. Describe the financial institution’s procedures for handling debits to the Town’s accounts that were not authorized by the Town. Does the financial institution notify the Town of the receipt of an unauthorized ACH debit? e. If the financial institution provides ACH debit blocking, what level of filtering can be applied? f. Does the financial institution offer ACH Positive Pay (ability to make pay/no pay decisions on unidentified ACH transactions)? g. Does the financial institution offer Universal Payment Identification Codes (ability to mask visible account numbers to reduce the risk of unauthorized direct debits)? 9. Wire Processing a. Describe the process of initiating wire transfers including USD domestic wires, repetitive wires, USD international wires, and foreign currency international wires. b. During what hours is the wire transfer system available? c. If wire transfers can be initiated online, describe the system’s security features. Can varying degrees of authorization be set (i.e. multiple authorizers, maximum dollar amounts, etc.)? d. Does the financial institution offer dual control release options (secondary approval levels) for electronically initiated transfers? If so, describe. e. What is the cutoff time for same-day wire transfers? f. What is the financial institution’s maximum retention period for future dated transactions? For future dated transactions, at what time are warehoused wire transfers automatically released on the transaction date? What types of wire transfers can be warehoused? Are there warehousing charges? g. Describe the financial institution’s procedure for providing payment confirmation information (e.g., reference numbers) upon acceptance and execution of the wire transfer request, including the availability and method of delivery of internal confirmation/sequence number and clearing system reference number. h. Describe the financial institution’s policy for handling a failed wire transfer. How and when would the Town be notified? 10. Intra-financial Institution Account Transfers a. Describe the process of initiating an intra-bank account transfer. b. Does the financial institution offer dual control release options (secondary approval levels) for electronically initiated transfers? If so, describe. Town of Colchester— Comprehensive Banking Services RFP Page 14 c. What is the cutoff time for same-day intra-bank account transfers? 11. Statements and Documents a. How soon after the cutoff date are the following items ready? Online Bank statements Full reconciliation information Account analysis statements b. Are electronic images stored on the financial institution’s online reporting system? c. How long are electronic images for deposited and disbursement items stored on the reporting system and available for customer access? d. How does your image system capture and report images for damaged checks? e. If online access only, how long after the termination of a contract will the financial institution allow the Town to access historical images on the reporting site? Can historical data be downloaded? 12. Online Reporting a. Describe the different reporting solutions and methods by which the institution makes deposit and balance information available. b. How will the Town access the reporting system? c. What levels of authorization (e.g. accounts viewed, transaction capabilities, etc.) can be permitted or turned off for individual users? Is there a limit on the number of users that can access the online services? d. What current day reporting is available through the reporting system (e.g. beginning and ending ledger balances, collected balances, available balances, and float assignment)? e. Are there differences in information available for current day and previous day reporting? If yes, please describe. f. What time is previous day information available? g. In what file formats can data be downloaded? h. Can electronic reports be customized? Is there an additional charge? i. How many business days of balance history are stored on the reporting system for previous day reporting? If there are differences in information available for current day and previous day reporting, how many business days of balance history are stored on the reporting system for current day reporting? j. List all other transaction types that can be initiated using the online system. 13. Reconciliation Services a. Does the bank offer Account Reconciliation Program (ARP) services? Please discuss options, provide sample reports and file specifications for reconciliation services. b. Are the systems integrated for check, ACH and wire transfers? If so, describe. If not, describe any plans to do so. c. Describe how reconciliation data is transmitted to the Town. 14. File Transfer a. How are file transfers initiated? In what formats is the information available for retrieval? b. Do the means to connect to the financial institution’s systems vary by Town of Colchester— Comprehensive Banking Services RFP Page 15 transaction type? c. Does your system provide for electronic confirmation of receipt for file transmissions? d. How is connectivity initiated? What protocols are used to facilitate the interface? e. Describe the process the financial institution uses to verify all records have been received and processed. f. What controls are in place to protect against lost files and duplicate transmissions? How will the Town be notified of a duplicate file? 15. Credit/Debit Card Processing Services a. Describe the processing platforms pertinent to your recommended solution. Provide system specifications, if appropriate. b. Describe your credit card processing capabilities. Which other networks can you use? c. Do you provide the ability to process PIN based debit card transactions? d. What equipment do you recommend we obtain for processing? Do you provide this equipment for lease/sale? Provide pricing details. What is your maintenance and/or replacement policy for this equipment? Notes: We utilize Point and Pay and Invoice Cloud for our credit card transactions. The bank will only see ACH deposits for these transactions. We will not require them to process credit/debit card transactions. e. Outline the security measures in place for the protection of data transmitted for processing. f. Describe the security measures used to prevent unauthorized user access to either the system or the data. g. Provide names and phone numbers of three references, preferably similar to our organization or with comparable volumes and communication capabilities, who are currently using your card processing services. Select a mix of long-standing and recently acquired customers. h. Provide any additional information that is relevant to this RFP and your capabilities to provide the services requested (e.g., product brochures, articles in trade journals). 16. Account Analysis Statements a. Please provide a sample analysis statement. b. Are account analysis statements available online? Can the account analysis data be sent electronically? c. Will the bank assess FDIC or FICO charges to the Town? If so, what is the current charge for an entire year on a $1 million balance? How is this charge computed? 17. Overdrafts a. What are the fees and interest charges associated with overdrafts? How are these charges calculated? b. Is there a fee per check or per occurrence when there is an overdraft? c. Is there a daily cap on fees? 18. Specify whether the online capabilities are accessible 24/7. If not, list the hours of availability for each service. Town of Colchester— Comprehensive Banking Services RFP Page 16 19. Describe the electronic and/or manual system used to provide the proposed services along with backup and recovery capabilities. Who would the Town contact to initiate day-to- day banking transactions if online capabilities and functionality are temporarily unavailable? 20. Describe the financial institutions security procedures for its information reporting system, both for access and information protection. 21. Is system administration performed by the financial institution or the customer? What functions does the security administrator perform? 22. Is an audit trail report available, showing all activity, by whom and when, for each system? 23. Describe the types of insurance and bonding carried. 24. Include a copy of the financial institution’s most recent reports issued in accordance with the Statement on Standards for Attestation Engagements (SSAE 16) for any processes or systems relevant to the services under this RFP. 25. If not already covered in the SSAE 16 report, describe the disaster recovery plans for each proposed service for short- and long-term disaster and power failure recovery. 26. Describe any additional security measures available to the Town to minimize the risk of unauthorized transactions in its accounts. D. IMPLEMENTATION/CONVERSION 1. Provide a conversion plan for transitioning each of the proposed services to your financial institution. 2. Who will be responsible for coordinating the transition for each of the proposed services? If a conversion team is used, how with the Town’s account be transitioned to the ongoing client service team? 3. Indicate the financial institution’s plans for initial and ongoing educating and training Town employees in the use of your systems. 4. Will the Town be allotted a fixed number of hours of training? E. NEW SERVICES AND IDEAS 1. Describe any new services or ideas that will enhance the Town’s utilization of financial institution services described. 2. Please provide any additional information that your financial institution believes to be pertinent, but not specifically requested elsewhere in the RFP. F. REFERENCES 1. Provide at least three references, if possible, including client name, contact person, address, phone number, services provided, and the length of time your financial institution has worked for the entity. 2. How many clients has the proposed relationship manager gained and lost in the last five years? Town of Colchester— Comprehensive Banking Services RFP Page 17 G. SAMPLE CONTRACT 1. Provide a sample of the proposed contract for your financial institution’s services. Please also provide samples of all other documents which will need to be signed/entered into related to the provision of the services requested in this RFP, including any documents referenced or incorporated into the contracts/agreements. 2. It is the intention to incorporate the RFP and your financial institution’s proposal response as part of the overall contract. Is this acceptable? If not, why? H. PRICING AND ACCOUNT ANALYSIS 1. For how long is the financial institution willing to guarantee the proposed fees? 2. Can fees be debited directly from the Town’s accounts rather than billed to the Town? 3. Provide a complete fee schedule for all of the services described in your financial institution’s proposal using Association of Finance Professionals (AFP) Service Codes, if possible. A list of services currently used with volume levels is provided in Appendix B. Fees related to all services described in the proposal must be listed, even if the service is not shown on the schedule. Also, include any one-time or set-up charges, research fees, minimum fees and all other fees that will be charged. Include any incentives or price breaks offered based on volume, timeliness of payment, rebates or other measures. 4. Are you willing to offer any transition or retention incentives? 5. Are there any additional price breaks or incentives? Town of Colchester— Comprehensive Banking Services RFP Page 18 V. Evaluation and Award Criteria This RFP seeks financial institutions to provide comprehensive banking services to the Town. A preliminary evaluation will be conducted identifying the financial institutions deemed fully qualified and best suited among those submitting proposals on the basis of the evaluation factors listed below (not in priority order): Criteria Operational Requirements • Understanding the needs and operation requirements of the Town • Financial institution and branch locations • Scope of services offered, including degree of automation Experience • Experience, resources, and qualifications of the financial institution and individuals assigned to this account • Relevant experience managing similar account relationships with Towns and Municipalities • Quality and responsiveness of customer service • Local decision-making authority to handle emergency needs Financial Strength • Financial strength of proposing institution • Adequacy of financial controls and protection against loss Transition • Quality and scope of implementation/conversion plan • Value of any new product or service suggestions or other new ideas and enhancements Compliance with the requirements of this RFP and quality of proposal Fees • Proposed fees, compensation and other quantitative measures (although fees and compensation will be an important factor in the evaluation of proposals, the Town is not required to choose the lowest cost proposer) Town of Colchester— Comprehensive Banking Services RFP Page 19 Appendix A: Intention to Submit a Proposal In order to provide timely updates to this Request for Proposal, including the responses to questions submitted, we ask that potential financial institutions submit the information below via email no later than 4:00 p.m. on 11/18/2022. To: Debbie Kratochvil Finance Director at; dkratochvil@colchesterct.gov INTENTION TO SUBMIT A PROPOSAL Financial institution name: Contact name and title: Email, phone and fax numbers: Physical address: Mailing address, if different: Intention to Submit Proposal:  Yes, we plan to submit a proposal. Please continue to provide updates to the individual above, or  No, we do not plan to submit proposal. Town of Colchester— Comprehensive Banking Services RFP Page 20 Appendix B: Expected Volume Levels Service Description Annual Volume Maint. Fee Checks Written Stop Payments Electronic Debits (Withdraws) Electronic Credits (Deposits) Deposits On Us items Transit Items Charge Back Items Incoming Wires Outgoing Wires ACH Origination Maint. ACH Origination Batches ACH Origination Items ACH Notification of Change ACH Returns Remote Deposit Maint Remote Deposits Remote Deposit Items Positive Pay Positive Pay Exceptions Positive Pay Stops Average Monthly Balance Town of Colchester— Comprehensive Banking Services RFP Page 21 Appendix C: Current Account Structure • Operating Account • Sales Tax Account • Account (international wires) 1. Operating Account—the Town’s primary account; vendor disbursements via check, ACH and wire transfers, merchant services deposits, as well as payroll wire.