CREATING A GREAT BANKING RFPGovernment Perspective

SEAN POLLAND, CFA TREASURY MANAGERORANGE COUNTY COMPTROLLER’S OFFICE

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Agenda Project Timetable Establish Committee Write RFP Issue & Advertise Preproposal Conference Evaluation and Selection

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Project Timetable

06/30/09Current Contract Expires03/30/09Negotiate Contract/Implementation03/27/09Submit to Board02/28/09Evaluate Responses/Recommendation02/21/09RFP Responses Due02/07/09Pre-proposal Conference01/21/09Issue RFP/Advertise01/19/09Finalize RFP Document01/08/09Establish RFP CommitteeDeadlineTask

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Establish RFP Committee

Committee Chair Cash Manager Fiscal Administration Accounting Others

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Writing RFP

Objectives Scope of Services Terms and Conditions Proposal Instructions

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Objectives Sealed proposals from qualifying banks to

provide comprehensive banking services.

To enter into a contract for all requested services from one bank.

Range of services shall include collection and deposit, concentration and disbursement, and balance compensation/investment services.

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Scope of Services Contract period Bank qualifications Contract structure Account structure Collection and deposit services Concentration and disbursement services Account maintenance Account analysis Balance compensation Other services

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Contract Period

Term of contract Optional renewals Timetable of transition, conversion

and implementation of operations

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Bank Qualifications

QPD – Chapter 280, FL Statutes

Bank financial strength

Geographic proximity

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Contract Structure

Master banking and treasury management agreement

Supplemental agreements: Wire transfer agreement ACH service agreement Cash vault service agreement Lockbox agreements Winning proposal shall become an integral part of master agreement

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Account Structure Number of bank accounts Collection and deposit accounts

Pooled accounts Enterprise funds ACH and fedwire receipts Construction, P&I and bond reserves

Concentration and disbursement accounts Check clearing (payroll, general and other) EFT disbursements

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Collection and Deposit Services

Funds availability Ledger cutoff time Deposit deadlines Collected balances: ACH, wires, “on us”

checks ACH and wire transfers Returned items Merchant services Wholesale and retail lockbox

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Merchant Services Transactions

Card not present/Retail211,745$17,007,979Public Utilities

Card not present/Retail27,476$805,682Solid Waste

Card not present/Retail323$32,210Mandatory Refuse

Card not present33$8,365Great Oaks Village

Card not present/Retail1,032$142,073Fire Rescue Service

Card not present/Retail26,315$5,559,723Convention Center

Retail22,608$203,733Convention Ctr Parking

Card not present/Retail607$139,833Community Corrections

Card not present/Retail1,210$49,908Cashier’s Office

Card not present/Retail12,421$5,819,766Building Division

Card not present/Retail2,928$130,125Animal Services

Processing ModeTransactionsSalesMerchant

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Lockbox Specifications

By 2:00 P.M.Deposit Processing

SpecificationsService

Fax of deposit summaryElectronic Reporting

CDEnvelopes/Stubs/Check Copies

Forward to CountyForeign Items

AcceptCash

Use scriptDifferent Amounts

Forward to CountyStale Dated Items

Accept if less than 2 daysPostdated Items

AcceptUndated Items

AllAcceptable Payee

By 9:00 A.M.Pickup Time

By BankBox Collection

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Concentration & Disbursement Services

Fraud Control ACH block ACH control

Positive pay services Check reconciliation Stop payment Wire transfers

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Account Maintenance Electronic banking

Windows NT/XP Professional Environment Explorer 7.0 or later 128-bit encryption technology

Account analysis statement Earnings credit

Interest earning DDA Now account Overnight repo Money market mutual fund

Monthly statements Overdrafts – Daylight and overnight

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Account Analysis Monthly account analysis statement

Services rendered Service volume Unit costs Compensation (direct payment or debit) Services and supplies not included in

proposal shall be provided free of charge

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Balance Compensation Earnings credit

Average collected balance Net of reserve requirement Gross of reserve requirement

Credit rate Spread on reference rate (i.e., fed funds) Minimum credit rate

Request a sample earnings calculation

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Sample ECR Calculation

$31,630Earnings credit

0.1699% 31/365 Applied to December

2% Earnings credit rate (e.g., fed funds)

18,620,617 Net collected balance

2,068,957 Reserve requirement @ 10%

$20,689,575 Average monthly collected balance

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Other Services

Cash vault Workplace banking Imaging services Relationship management Privacy

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Terms & Conditions Require use of response forms Number of copies Sealed proposals by deadline Lobbying blackout Proposal opening Cancellation or postponement Corrections Acceptance and withdrawals Evaluation Award Protest M/WBE ordinance Litigation statement Drug-free workplace

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Response Forms Bank Information Response Form Objectives and Scope of Services Pro forma Account Analysis Proposer’s Warranty Employment Data, Schedule of Minorities and Women Schedule of Subcontracting – M/WBE Participation Conflict/Non-Conflict of Interest Statement and

Litigation Statement Drug-Free Workplace Form

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Required Attachments to RFP Implementation schedule Evidence of QPD status Evidence of status as a top 50 bank Map of branch locations; cash vault confirmation Deposit deadline schedules Funds availability schedule; float computation Pro forma agreements Earnings credit calculation Names & vitae of bank officers Bank privacy policy Prospective service described Audited financial statements for past two years Bank references Bank exceptions

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Issue RFP & Advertise

Issue to all qualified banks in area Advertise in local newspaper Post RFP on website

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REQUEST FOR PROPOSALSFOR

COMPREHENSIVE BANKING SERVICESThe Orange County Comptroller (Comptroller) requests sealed proposals from qualifying banks to provide the Orange County Board of County Commissioners and her office (together as County) comprehensive banking and treasury management services. The County will enter into a contract for all requested services with a single bank.The range of services includes collection and deposits, concentration and disbursement, account maintenance, and overnight investment services. The Comptroller issues this RFP in her capacity as chief financial officer of the County.A mandatory preproposal conference for proposers is scheduled Wednesday, February 7, 2009, at 2:00 PM, at the Orange County Administration Center, 201 S. Rosalind Avenue, Orlando, Florida in the Comptroller’s Conference Room A; located on the 4th Floor. Interested bidders must attend.Sealed proposals must be received in the office of the Clerk of the Board of County Commissioners, Orange County Administration Center, 201 S. Rosalind Avenue, 4th Floor, Orlando, Florida 32801, no later than 4:00 PM, Wednesday, February 21, 2007. For further information or a copy of the RFP, contact Sean Polland at 407-836-5755.

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Pre-proposal Conference At least two weeks prior to proposal

due date Request confirmation of attendance Provide opportunity to ask questions Receive clarifications from procurement

committee Communication blackout period after

conference

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Evaluation Sample award criteria:

Service capability: 25% Quality: 25% Cost: 40% Compliance with M/WBE: 10%

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Selection/Implementation

Committee selects bank Recommend to Comptroller/Clerk Board approval Begin implementation

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Sean Polland, CFA Treasury ManagerOrange County Comptroller’s Office201 S. Rosalind Avenue, 4th FloorOrlando, Florida 32801Phone: 407-836-5755Fax: 407-836-5753E-mail: sean.polland@occompt.com