Request for Proposals: Banking Services
THE HOUSING AUTHORITY OF THE CITY OF TIFTON
BANKING SERVICES
REQUEST FOR PROPOSALS
I. INTRODUCTION
The Housing Authority of the City of Tifton (the Authority) (THA) hereby invites qualified, licensed, and insured banking institutions (banks) in Tifton, Georgia who possess the capability and expertise to provide depository and various banking services for the Authority to submit proposals for the provision of those services, according to the requirements of this Request for Proposals (RFP).
The types of services covered by this RFP are limited to demand deposits and related services. The placement of time deposits is not addressed in this RFP. The Authority intends to follow its current policy of placing time deposits based on competitive bidding.
II. PERIOD
The selected banking institution shall be designated as the Authority's depository for an initial one-year term projected to commence July 1, 2023. The depository agreement shall contain an automatic annual renewal clause which may be used in the two (2) following years, thereby providing for three (3) years of depository and banking services. At the end of the three-year period, the contract shall be renewable on a monthly basis until another contract is signed. If the banking institution fails to provide the services required under the contract, the Authority will be entitled to cancel the contract after 90 days written notice to the bank. If the Authority fails to maintain the required compensating balances, the bank will be entitled to cancel the contract after 90 days written notice to the Authority.
III. INSTRUCTIONS FOR RFP SUBMISSION
All participating institutions must submit audited financial statements for the latest fiscal year. If available, include in the submission any reports available for the local institution.
If a bank proposes an individual service, the Authority will assume the proposal meets or exceeds the RFP's requirements. The Authority reserves the right to reject a bank's entire proposal if any required service cannot be provided. All proposals must be submitted in sealed envelopes bearing the words "THE HOUSING AUTHORITY OF THE CITY OF TIFTON, BANKING SERVICES PROPOSAL." It is the sole responsibility of the bank to ensure that the proposal arrives with the name of the bank and bears the handwritten original signature of a bank officer authorized to represent that institution. The name, office address, and office telephone number of the institution's contact person must be clearly identified.
Each institution will be allowed to submit only one proposal.
All questions must be submitted in writing to sclark@tiftonhousing.org and will be answered in writing. Telephone questions to individuals within the Authority are not encouraged but will be permitted in the interest of good communications. Nevertheless, the Authority will be bound only by those communications which are in writing. All other communications will be considered unofficial.
Proposals should be returned to the following address:
Shaundra Clark
Executive Director
P. O. Box 12
TIFTON, Georgia 31793
Completed proposals and bid forms must be received by the Authority no later than March 15, 2023.
IV. SELECTION CRITERIA
The selection criteria for evaluation of the proposal are as follows:
1. Satisfactory financial condition of institution.
2. Completeness of proposal.
3. Cost per unit and/or compensating balances.
4. Average interest rate on money market investment or
equivalent accounts.
While not required, consideration may be given to banks that can offer other services which may include in-house servicing of merchant services, and competitive rates on certificates of deposits, among others. If additional services are available, please provide a summary description with your proposal.
All proposals meeting the minimum criteria will be ordered into a list of qualifying competitors based upon cost per unit and/or compensating balances. Although net total cost to the Authority will be the principal factor in the selection of institution, other aspects of the proposal may cause the contract to be awarded to a bank other than the bank submitting the lowest cost per unit/compensating balances. In short, the award of the contract will be made to the bank whose proposal best complies with ALL requirements set forth in the RFP.
The Authority will evaluate the proposals and will ask the necessary clarifying questions. These questions, if necessary, will be in writing and the written answers received will become part of the official proposal(s).
When the Authority has tentatively selected a proposal, it may request a conference(s) to formulate plans, clarify any unclear areas, and complete any necessary negotiations prior to the formal award of the contract. During the conference(s), the Authority may choose to modify its choice of a selected proposal or to reject all proposals if such an action is in the Authority's best interest.
Based upon the Authority's proposal review and conference(s), a contract will be prepared, and a recommendation for contract approval will be made to the Board of Commissioners. Upon the approval, a contract will then be executed.
V. TERMS AND CONDITIONS
The institution awarded the contract must execute a contract within thirty days after the award of the contract. Otherwise, the Authority may award the contract to the next most qualified proposal or call for new proposals.
In no event will the Authority permit modifications to the proposed cost per unit and/or compensating balance(s). The proposal as submitted will be the last and final offer.
All participating institutions should thoroughly examine and be familiar with the proposal specifications. The failure or omission of any bank to receive or examine those specifications will not relieve that bank of obligations with respect to either the proposal or the subsequent contract.
The proposal specifications indicate the number of transactions anticipated in each account. Although these estimates represent the Authority's expected activity, the Authority does not guarantee them as minimum or maximum volumes.
Participating institutions must meet the following minimum qualifications:
1. The depository bank must maintain a full-service branch
or home office in Tifton, GA.
2. The depository bank must agree to at all times maintain Portfolio Securities in amounts equal to or greater than 100% of the average daily bank ledger balance, excluding those amounts insured by FDIC. No exception will be made to this requirement.
3. The depository bank must agree to the terms as stated in the "General Depository Agreement", a contract between THA and the depository bank with the U.S. Department of Housing and Urban Development listed as a third party. (See attached)
VI. SCOPE OF REQUIRED BANKING SERVICES
A. ACCOUNT STRUCTURE
The current accounts and their general characteristics are described below.
THA General Fund Checking: This account will serve as the checking account for the Authority's General Fund as well as the General Depository Account. Funds will be disbursed by means of electronic payments (ACH), electronic withdrawals for pre-authorized transactions, and checks. Funds will be received from the U. S. Department of Housing and Urban Development via ACH monthly.
Capital Fund Checking: This account will contain all funds used in the authority's modernization projects. Funds will be received from HUD in the General Fund Receipts Account via ACH and will be transferred to this account. Only a few checks per month will be drawn on the account.
Special Projects Checking Account: This account will contain funds of the Authority's local (non-federal) fund. Occasional deposits and in-house transfers will be made.
Tifton Housing Partners General Fund Checking: This account will serve as the checking account for the Authority's General Fund as well as the General Depository Account. Funds will be disbursed by means of electronic payments (ACH), electronic withdrawals for pre-authorized transactions, and checks. Funds will be received from the U. S. Department of Housing and Urban Development via ACH on a monthly basis.
Tifton Housing Partners Reserve Account: This account will serve as the reserve account for the Non-Profit. A very limited number of checks will be drawn from this account.
Tifton Housing Partners Surplus Account: This account will serve as the surplus account for the Non-Profit. A very limited number of checks will be drawn from this account.
The Authority reserves the right to change accounts from non-interest to Money Market Investment (high interest) or to Interest Checking or vice versa at any time based on Bank availability. In addition, the Authority reserves the right to change the bank account structure in order to accommodate the use of a concentration account with accompanying zero-balance accounts. Finally, the Authority reserves the right to close existing accounts or to open new accounts as operations require. All new accounts opened during the contract period are governed by the same rules and provisions as existing accounts.
B. REPORTING REQUIREMENTS
The awarded bank will provide the following documentation and/or reports to the Authority's Finance Department:
1. An electronic internet system to make transfers and provide the book
balance and the collected balance for various accounts. Additionally, the electronic system must provide:
· Daily reports on balances in each account
· Daily debit and credit transactions for each account
· Inquiry status of checks
· Request and confirmation of stop payments
· Transfer funds between agency accounts
· Transfer funds to other financial institutions
· View and print paid checks and deposits
2. Timely provision of debit and/or credit memoranda for ALL transactions except deposits made directly by the Authority and checks written by the Authority.
3. Monthly account statements. All such statements should be received by the Authority by the tenth business day of each month. For checking accounts, the bank should provide a statement listing checks in numerical order along with the check images presented in numerical order.
4. A quarterly report from the Federal Reserve listing all collateral securities. pledged to cover deposits of the Authority.
C. AVAILABILITY OF FUNDS
The bank will guarantee immediate availability of all wire transfers, U.S. Treasury Checks, and ACH deposits. All other checks will be based on the bank's availability schedule.
D. OTHER SERVICES
· The Authority intends to pay for all services as stated as specified within this RFP unless specifically waived by the institution. Banking documents and services customarily provided to demand deposit customers will be provided to the Authority at no charge. These documents and services may include deposit slips, deposit bags, stop payment forms, endorsement stamps, and investment advisory services.
· The institution awarded the contract must have the capability of handling direct deposit for payroll which would include other banks.
· Furnish research items within 24 hours.
· No return check charges on any account.
· Bank must assign a relationship manager for the
VII. PROCEDURE FOR SUBMISSION OF PROPOSALS
A. FORM OF PAYMENT
The Authority will compensate the awarded bank through compensating balances intentionally left on deposit with the bank. These balances will be non-interest bearing regardless of the nature of the demand deposit account. The value of the services provided during the month will determine the compensating balance needed to pay for those services. Any over or under compensation will be carried over to the next month as an adjustment to the compensating balance needed for that month.
The initial target balance will be the balance specified in the proposal form. Each account's portion of the target balance will be prorated by the value of services rendered for the account.
B. CALCULATING THE REQUIRED COMPENSATING BALANCE
Monthly Activity Service Charges / (1 - Reserve Requirement)
Earnings Allowance
The terms are defined as follows:
Monthly Activity Service Charges: The sum of all charges for the month's actual activity based on unit prices specified in the proposal multiplied by the actual monthly activity. The unit prices will remain constant over the entire contract term.
Earnings Allowance: The earnings allowance will be the monthly average of the 13-week U.S. Treasury Bill average weekly auction results (coupon equivalent yield) as reported by the U.S. Department of the Treasury (www.treasury.gov). This amount will be converted to a monthly rate (12.1667 months per year). In completing the bid form, all bidders will assume an earning allowance of 1.94%
Reserve Requirement: The banks current reserve requirements specified by the Federal Reserve Bank as of February 7, 2023. In completing the proposal, all bidders will use a reserve requirement of 10.0%.
An example of the Required Compensating Balance calculation is shown below:
Monthly Service Charge: $1,000.00
Treasury Bill Rate: 1.94%
Reserve Requirement: 10.00%
1,000 / (1 - .10) = $696,833 Required Compensating Balance
1.94 % / 12.1667
Earnings in excess of Required Compensating Balances will be split to each account based on their outstanding balance for the month.
