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03-28-2016 Council Workshop
SPECIAL ACCOMMODATIONS: The City of Arlington strives to provide accessible meetings for people with disabilities. Please contact the ADA coordinator at (360) 403-3441 or 1-800-833-8388 (TDD only) prior to the meeting date if special accommodations are required. CALL TO ORDER Mayor Barb Tolbert PLEDGE OF ALLEGIANCE ROLL CALL Mayor Barb Tolbert - Wendy APPROVAL OF THE AGENDA Mayor Pro Tem Debora Nelson WORKSHOP ITEMS – NO FINAL ACTION WILL BE TAKEN 1. Dennis Smith – United Way Report – Community Funding Distribution After OSO 2. Alex Lark – Housing Hope – Supportive Housing for Twin Lakes Landing 3. Request for Proposal for Classification & Compensation Study ATTACHMENT A Staff Presentation: Kristin Banfield Council Liaison: Mayor Pro Tem Debora Nelson 4. 59th Avenue Repair – Apparent Low Bidder ATTACHMENT B Staff Presentation: Eric Scott Council Liaison: Jan Schuette 5. Award Contract for Banking Services ATTACHMENT C Staff Presentation: Kristin Garcia Council Liaison: Mayor Pro Tem Debora Nelson 6. February 2016 Financial Report ATTACHMENT D Staff Presentation: Kristin Garcia 7. Miscellaneous Council Items EXECUTIVE SESSION RECONVENE Arlington City Council Workshop Monday, March 28, 2016 at 7:00 p.m. City Council Chambers – 110 E Third St SPECIAL ACCOMMODATIONS: The City of Arlington strives to provide accessible meetings for people with disabilities. Please contact the ADA coordinator at (360) 403-3441 or 1-800-833-8388 (TDD only) prior to the meeting date if special accommodations are required. PUBLIC COMMENT For members of the public to speak to the Council regarding matters on the Council Workshop agenda. Please limit your remarks to three minutes. ADJOURNMENT Mayor Barb Tolbert To open all attachments, click here City of Arlington Council Agenda Bill Item: WS #3 Attachment A COUNCIL MEETING DATE: March 28, 2016 SUBJECT: Request for Proposal for Classification & Compensation Study ATTACHMENTS: Request for Proposals Salary Survey DEPARTMENT OF ORIGIN Human Resources EXPENDITURES REQUESTED: None BUDGET CATEGORY: N/A LEGAL REVIEW: DESCRIPTION: The City of Arlington (City) is soliciting proposals from interested, highly-qualified, and experienced consulting firms to design, conduct, and assist in the implementation of a comprehensive compensation study for the City’s employees. The purpose of the study is to determine the total value of salary and benefits for City positions and compare to the total value of salary and benefits of cities that are of comparable population and assessed valuation that are within the same labor market within a two-hour drive . HISTORY: The City is a general purpose local government and provides police, fire, EMS, street improvements, parks, and utilities. The City is governed by an elected council and mayor. The City currently has 125 full time employees (28 non-represented, 47 represented by AFSCME Local #2849, 27 represented by IAFF Local #3728, and 24 represented by APOA). The City of Arlington is requesting sealed proposals for a Comprehensive Compensation Study for our non- represented employees, including directors, and AFSCME represented positions. Proposals must be received no later than 4:00 pm on April 26, 2016. ALTERNATIVES RECOMMENDED MOTION: Workshop; discussion only. City of Arlington Request for Proposals for a Comprehensive Compensation Study Submittal Date: April 26, 2016 at 4:00 p.m. 1. Summary The City of Arlington (City) is soliciting proposals from interested, highly-qualified, and experienced consulting firms to design, conduct, and assist in the implementation of a comprehensive compensation study for the City’s employees. The purpose of the study is to determine the total value of salary and benefits for City positions and compare to the total value of salary and benefits of cities that are of comparable population and assessed valuation that are within the same labor market (within a two-hour drive). 2. Background Information The City is a general purpose local government and provides police, fire, EMS, street improvements, parks, and utilities. The City is governed by an elected council and mayor. The City currently has 125 full time employees (28 non-represented, 47 represented by AFSCME Local #2849, 27 represented by IAFF Local #3728, and 24 represented by APOA). More information about the City and the services it provides is available on our website at www.arlingtonwa.gov 3. Proposals The City of Arlington is requesting sealed proposals for a Comprehensive Compensation Study for our non-represented employees, including directors, and AFSCME represented positions. Proposals must be received no later than 4:00 pm on April 26, 2016. Proposals received after said time will not be considered. To guard against premature opening, each proposal shall be submitted to the City in a sealed envelope plainly marked with “City of Arlington Comprehensive Compensation Study.” Proposals shall be submitted to: City of Arlington Attention: Human Resources 238 N. Olympic Avenue Arlington, WA 98223 hr@arlingtonwa.gov 4. Schedule Issue RFP April 5, 2016 Deadline for Questions April 12, 2016 Deadline for Submittal of Proposals 4:00 p.m. April 26, 2016 Interview with Selected Firms (if necessary) May 2-5, 2016 Preliminary Selection of Firm May 5, 2016 Recommendation to City Council May 9, 2016 Contract Award May 16, 2016 Commence Work May 17, 2016 Complete Work No later than July 31, 2016 These dates are estimates and subject to change by the City 5. Scope of Services Required The City anticipates that the study will involve two phases of work comprised of the following key tasks: a) Salary Comparison Phase: Review all current non-represented and AFSCME City position job descriptions and review like positions at comparable cities. This may require interviews with management and staff to ensure full understanding of the scope of duties and to enable the consultant to find a suitable comparison. Consultant shall create a written report that compares current City salaries to other comparable cities. b) Benefits Comparison Phase: Review current City policies and labor contracts to identify all additional pay, leave, and benefits are available to City non-represented and AFSCME employees (vacation, sick leave, cashouts at separation/retirement, etc.). Review the same in comparable cities. This may require interviews with the City’s Finance Director, Human Resource Director, and/or payroll. Consultant shall create a written report that compares benefits for City employees to benefits available to employees of comparable cities. c) Periodic Status Reports: Consultant shall provide periodic status reports as requested. d) Additional Tasks: The Consultant or City may propose additional tasks or further exploration as deemed necessary to obtain a complete and thorough product. Any additional work shall be compensated as agreed upon in the contract. 6. Optional Scope of Services Depending on the total cost of the proposal, the city may opt to include any of the following tasks: a) Review of health insurance benefits provided to City non-represented and AFSCME employees (medical, dental, vision, long term disability). Review the same in comparable cities. Consultant shall create a written report that compares health insurance benefits for City employees to health insurance benefits available to employees of comparable cities. b) Review of health insurance cost sharing arrangements between city and non- represented and AFSCME employees (medical, dental, vision, long term disability). Review the same in comparable cities. Consultant shall create a written report that compares health insurance cost sharing arrangements of the city to health insurance cost sharing arrangements of comparable cities. c) Review of health insurance opt out programs provided to City non-represented and AFSCME employees (medical, dental, vision). Review the same in comparable cities. Consultant shall create a written report that compares health insurance opt out program for City employees to health insurance opt out programs available to employees of comparable cities. 7. Proposal Submission Requirements The Consultant shall be responsible for preparing an effective, clear, and concise proposal in the following format: a) Cover letter introducing the company, how many years in business, who the primary contact will be, his/her understanding of the service to be performed, commitment to the project, and a general timeline. b) Qualifications which demonstrates the knowledge, experience and capability that will enable him/her to provide the services required including number of compensation studies completed and the range of services offered. A reference list should be attached with past client names, contact persons and telephone numbers. c) A discussion of any methodologies used or approaches taken to a comprehensive salary and benefits study. d) A proposed fee schedule including any incidental or hourly fees and an estimated “not-to-exceed” amount for completing the required elements and each optional element, with a “not-to-exceed” amount for completing the entire project (required and optional elements combined). e) The signature of an authorized individual to bind the firm. The proposal must be a firm offer for a sixty (60) day period. Note: The City may require Commercial General Liability insurance of not less than $1 million and Workers Compensation insurance as required by the State of Washington. The City reserves the right to seek verification of the same prior to any contractual agreement. Deliver proposals (in Adobe pdf or compatible format) to City Hall – Human Resources to the email address below (preferred) or mail/deliver sealed proposals to the address below. If mailing sealed proposals, please provide five (5) copies. Email proposals shall not be deemed received until a confirmation email sent by the City is received in reply to the submitted Proposal, confirming that the email proposal was received and the format was readable by the City. Proposals should be prepared simply and economically, providing a straight forward, concise description of provider capabilities to satisfy the requirements of the request. Special bindings, colored displays, promotional materials, etc. are not required. Emphasis should be on completeness and clarity of content. 8. Selection Process Each of the proposals received will be evaluated to determine if it meets the stated requirements. Failure to meet these requirements will be a cause for eliminating the agency from further consideration. The City shall not be liable for any cost incurred by any offer or in the preparation of its proposal in response to this RFP nor for obtaining any insurance certification. The City reserves the right to reject any and all proposals, to waive any technicalities, informalities and irregularities, to accept or reject all or part of the proposal, and to be the sole judge of the suitability of the proposals offered. Evaluation of the proposals will be made by representatives of the City. In addition to evaluating written proposals, telephone or in-person interviews may be requested. Proposals will be evaluated, generally, on understanding of the project, prior experience in performing similar work with similar sized cities, qualifications of the company and its staff, methodology and scope of the proposed study, fees charged including not-to- exceed amount and the cost effectiveness of the proposed services, and references. 9. Supplemental Information Questions concerning this request for proposal may be submitted to: Kristin Banfield, Director of Human Resources & Communications City of Arlington 238 N. Olympic Avenue Arlington, WA 98223 kbanfield@arlingtonwa.gov 360-403-3441 Deana Dean, Human Resources/Payroll Analyst City of Arlington 238 N. Olympic Avenue Arlington, WA 98223 ddean@arlingtonwa.gov 360-403-3441 Proposals must be received by 4:00 pm on April 26, 2016. 10. Terms and Conditions a) The City reserves the right to reject any and all proposals and waive minor irregularities in any proposal. b) The City reserves the right to request clarification of information submitted and to request additional information from any firm. c) The City reserves the right to award any contract to the next most qualified firm, if the successful firm does not execute a contract within 30 days after selection. d) The contract resulting from the acceptance of a proposal by the City shall be in a form supplied or approved of by the City and shall reflect the specifications in this RFP. e) The City shall not be responsible for any costs incurred by the firm in preparing, submitting, or presenting its proposal. f) Persons with disabilities may request this information be prepared and supplied in an alternative form by phoning 711. City of Arlington Council Agenda Bill Item: WS #4 Attachment B COUNCIL MEETING DATE: March 28, 2016 SUBJECT: Apparent low bid for the 59th Avenue Repair Project ATTACHMENTS: Bid Tabulation from March 23, 2016 Bid Opening DEPARTMENT OF ORIGIN Public Works –Eric Scott EXPENDITURES REQUESTED: $ 83,120 (Apparent Low Bid) BUDGET CATEGORY: Transportation Benefit District LEGAL REVIEW: DESCRIPTION: The 59th Avenue Repair Project was recently advertised for construction and bids were opened on Wednesday March 23rd, a summary of the bids tabulation is attached. HISTORY: The 59th Avenue Repair was originally planned to be included as part of the 2016 pavement preservation construction package. However, due to increased concern by local businesses on the road quality, staff accelerated the schedule of the repair. The 59th Ave repair work is being separated from the asphalt overlay work and will be completed within the next few months (pending weather). Pavement overlay work for 59th Ave will be completed later in the year as planned. This project is being coordinated with the Transportation Benefit District’s 2016 pavement overlay program. ALTERNATIVES Reject Bids, re-advertise the project Remand to staff for further evaluation RECOMMENDED MOTION: Workshop; discussion only. At the April 4th Council Meeting, staff will recommend the following motion, “I move to award the 59th Avenue Repair Project to Lakeside Industries and authorize the Mayor to sign the Construction Contract, pending review by the City Attorney.” City of Arlington Council Agenda Bill Item: WS #5 Attachment C COUNCIL MEETING DATE: March 28, 2016 SUBJECT: Award Contract for Banking Services ATTACHMENTS: Request for proposal (RFP) Bank proposals Draft contract (see attachment C of the RFP) DEPARTMENT OF ORIGIN Finance; Kristin Garcia – Finance Director 360-403-3431 EXPENDITURES REQUESTED: N/A BUDGET CATEGORY: N/A LEGAL REVIEW: DESCRIPTION: The city published a request for proposal (RFP) for banking services on February 10, 2016. A total of four (4) proposals were received. Proposals were received from Skagit Bank, Opus Bank, US Bank and Columbia Bank. The review committee included myself, Sheri Amundson, Bryan Terry and Kristin Banfield. The request for proposals were evaluated based on the following criteria; responsiveness to the RFP, the bank’s ability to perform required services, fees, references, community presence and interviews. Proposers were required to meet minimum qualifications in regard to; having authority to do business in the State of Washington, access to the federal reserve system, be in legal compliance with federal, state and local laws, be a qualified depository for public funds and have a local banking office. Responsiveness to the RFP was broken down further and evaluated based on; online security, disaster recovery, training, online reporting capability, other services being offered (to meet future city needs), ACH, direct deposit and P-card programs. Two banks were eliminated during the first round of review. Skagit Bank was determined to be unresponsive as their proposal did not provide enough detailed information to determine if all requirements could be met. US Bank was also eliminated as their fees were higher than the city is currently paying and responses from the reference checks were not satisfactory. Opus Bank and Columbia bank made it to the final round of review and participated in an on- site interview. Opus Bank was selected as the most qualified. The review committee recommends awarding the banking contract to Opus Bank. The contract will commence April 1, 2016 for a period of three (3) years with an option to extend for an additional two (2) years. City of Arlington Council Agenda Bill Item: WS #5 Attachment C HISTORY: The City has been banking with Bank of America for at least the past 20 years. It is a prudent business practice to review processes and services on a periodic basis to determine if you are receiving the required level of service, quality of service and best pricing for those services. On February 8, 2016, the council approved the issuance of an RFP for banking services. ALTERNATIVES Do not accept the review committee’s recommendation Republish the request for proposal RECOMMENDED MOTION: Workshop; discussion only. At the April 4, 2016 council meeting the motion will read; “I move to award the banking services contract to Opus Bank and authorize the Mayor to sign it.” 1 Request for Proposal (RFP) for: Banking Services City of Arlington, WA Finance Department 238 N Olympic Ave Arlington, WA 98223 January 2016 2 City of Arlington REQUEST FOR PROPOSAL I PURPOSE OF REQUEST The City of Arlington (“City”) is requesting proposals for its primary banking services. The City’s needs are outlined in the following Request for Proposal (“RFP”). II BID PROCESS The City will attempt to follow this timetable, which should result in the implementation of a banking services agreement by April 1, 2016. Issue RFP February 10, 2016 Deadline for Questions February 17, 2016 Deadline for Submittal of Proposals - 4:00 p.m. February 29, 2016 Interview with Selected Firms (if necessary) March 7, 2016 Preliminary Selection of Firm March 14, 2016 Recommendation to City Council March 21, 2016 Contract Award March 30, 2016 Start Implementation of Banking Services April 1, 2016 Complete Implementation of Banking Services April 30, 2016 These dates are estimates and subject to change by the City III MINIMUM QUALIFICATIONS To be considered for selection, financial institutions must meet at least the following minimum qualifications: A. Authority to offer banking services. Institution must hold a charter from either the United States Government or the State of Washington. B. Access to the Federal Reserve System. Institution must be a member of (or have access to) the Federal Reserve System and have access to all Federal Reserve System services. C. Legal compliance. Institution must be in compliance with all applicable laws, rules, regulations, and ordinances of the City of Arlington, the State of Washington, and the United States. D. Public Deposit Protection Act. Institution must be a Washington State qualified depository for public funds and must be in compliance with the Washington Public Deposit Protection Act (RCW 39.58). E. Local banking office. Institution must have an established office or local branch within the city limits of City of Arlington and maintain a current City business license. 3 IV INSTRUCTIONS TO PROPOSERS A. All proposals and questions should be directed to: Kristin Garcia, Finance Director City of Arlington 238 N Olympic Ave Arlington, WA 98223 (360) 403-3431 kgarcia@arlingtonwa.gov B. All proposals must be received by February 29, 2016 at 4:00 p.m. Deliver proposals (in Adobe pdf or compatible format) to City Hall – Finance to the email addresses below (preferred) or mail/deliver sealed proposals to the address below. If mailing sealed proposals, please provide five (5) copies. Email Mail Kristin Garcia City of Arlington Finance Director Finance Department kgarcia@arlingtonwa.gov 238 N Olympic Ave Arlington, WA 98223 Sheri Amundson Assistant Finance Director “Banking RFP” Noted on Envelope samundson@arlingtonwa.gov Email proposals shall not be deemed received until a confirmation email sent by the City is received in reply to the submitted Proposal, confirming that the email proposal was received and the format was readable by the City. C. Proposals should be prepared simply and economically, providing a straight forward, concise description of provider capabilities to satisfy the requirements of the request. Special bindings, colored displays, promotional materials, etc. are not required. Emphasis should be on completeness and clarity of content. D. All proposals must include the following: 1. Cover letter signed by the proposer representative authorized to make contractual obligations. 2. Responses to Banking Services Questions/Statements in section VIII. 3. Statement of Financial Institution Qualifications found in section IX, signed and notarized. 4. Non-Collusion Affidavit Certificate found in section X, signed and notarized. 5. A detailed schedule of costs by specified task using the Bid Sheet form in Attachment B. Volumes indicated on the Bid Sheet are estimates and actual quantities may vary. Costs not included on the Bid Sheet, but which the financial institution proposes to charge, must be individually itemized and thoroughly 4 explained. If your financial institution does not charge for the service listed on the bid sheet, enter a zero dollar amount; if the financial institution does not offer the service listed on the bid sheet, enter N/A. Bid Sheets must be executed by an official of the firm in a position to commit the institution to provide the services in accordance with these terms and conditions. V SCOPE OF SERVICES See Attachment A VI TERMS AND CONDITIONS A. The City reserves the right to reject any and all proposals, and to waive minor irregularities in any proposal. B. The City reserves the right to request clarification of information submitted, and to request additional information on any proposal. C. The City reserves the right to award any contract to the next most qualified financial institution, if the successful financial institution does not execute a contract within 15 days of being notified of selection. D. Any proposal may be withdrawn up until the date and time set above for opening of the proposals. Any proposal not so timely withdrawn shall constitute an irrevocable offer, for a period of one hundred and twenty (120) days to sell to the City the services described in the attached specifications, or until one or more of the proposals have been approved by the City administration, whichever occurs first. E. The contract resulting from acceptance of a proposal by the City shall be in a form supplied or approved by the City, and shall reflect the specifications in this RFP. A copy of the proposed contract is attached (see Attachment C). The City reserves the right to reject any proposed agreement or contract that does not conform to the specifications contained in this RFP and which is not approved by the City Attorney’s office. F. The City shall not be responsible for any costs incurred by the financial institution in preparing, submitting or presenting its response to the RFP. VII EVALUATION PROCESS Proposals will be evaluated by a committee of City staff. Evaluations will be based on criteria outlined herein which may be weighted by the City in a manner it deems appropriate. All proposals will be evaluated using the same criteria. The criteria used will be: A. Responsiveness to the RFP The City will consider all the material submitted to determine whether the financial institution’s offering is in compliance with the RFP documents. 5 B. Ability to Perform Required Services The City will consider all the relevant material submitted by each financial institution, and other relevant material it may otherwise obtain, to determine whether the financial institution is capable of providing services of the type and scope specific to the RFP. The following elements may be given consideration by the City in determining whether a financial institution is capable: 1. The ability and capacity of the financial institution and the skills, experience, and availability of the specific individuals to be assigned to the City to perform the services required; 2. The quality of performance by the financial institution on previous and similar contracts and such other information as may be secured and considered relevant by the City, including information on customer service as supplied in section VIII 4 and obtained from references provided; 3. The ability of the financial institution to present professional and innovative work; the skill of the financial institution as demonstrated by samples of similar work and/or references from similar organizations; C. Fees As described in Section IV D. 4 and shown on Attachment B D. References As described in Section VIII 2. E. Community Presence As described in Section VIII 3. F. Interviews and Site Visits The City may conduct interviews and site visits as part of the final selection process. VIII BANKING SERVICES QUESTIONS/STATEMENTS Please provide your responses to the items below in the order presented. 1. Provide the names of individuals, with phone numbers and e-mail addresses, who will be working on the proposed services and their areas of responsibility including their specific experience relative to the request for proposal requirements. 2. Submit at least three (3) references (preferably from current local government customers) who can attest to the financial institution’s experience as it relates to providing banking services. The references must include contact name, title, address, e-mail address, telephone number and services used. 3. Describe your institution’s community participation/reinvestment program. 4. Describe your institution’s customer service philosophy and organizational structure and provide meaningful examples to illustrate. 6 5.Provide the following reports and information about your institution: a.Online reporting sample reports b.Monthly account analysis & bank statement c.Monthly merchant services report d.Most recent financial statement e.SEC and/or Moody’s credit rating or comparable rating 6.Provide a funds availability schedule. Describe one day, two day availability and wire requirements. 7.Describe your Balance Reporting systems and availability. a.What systems does the bank use to deliver balance and transaction detail information? b.What time is previous day information available for access by the customer? c.What are the hours of access of the Balance Reporting system? d.Does the bank provide current day information? i.How frequently is this information updated throughout the day? ii.What transaction types are available on current day reports? e.Describe the level of detail provided in previous and current day reports? f.How many days of history can be accessed through the system? g.In what format is information available? h.Provide a sample printout of the daily on-line balance information. i.What is your process of providing a customized report for your clients? 8.ACH Services: a. What is the recommended service delivery method (i.e. direct transmission, on-line, or other)? Does system have ability to integrate files from our CIS/ FIS systems? Is standard formatting used? i.What are the hardware/software requirements? ii.What training does the bank provide? iii.Does the software offer the ability to manage security and access levels by user? Describe. iv.What report options are available? v.What controls are in place to protect against lost files and duplications of transmissions? vi.Does the bank provide automatic file receipt acknowledgements? If so, how? vii. Describe the role of any third-party processor used by the bank to provide this service? Does the third party provide written report of security standards and protocols for client review? b.What are the hours of operation of the ACH unit? c.What are the bank’s cut-off times for customer initiation of ACH transactions? d.Describe the procedures used to verify accurate and secure receipt of transmissions. e.Can the bank automatically redeposit items returned for insufficient or uncollected funds? f.How does the bank handle file, batch, and item reversals and deletions? 9.Positive Pay a.What is the recommended service delivery method (i.e. direct transmission, on-line, or other)? What are the hardware/software requirements? b.What controls are in place to protect against lost files and duplications of transmissions? c.Does the bank provide automatic file receipt acknowledgements? If so, how? 7 d.Describe the role of any third-party processor used by the bank to provide this service. e.What is the bank’s deadline for transmitting files/data? f.What is the process for notifying the bank of a single check or small check run outside of the regular batch file? g.How does the City notify the bank of voided and stop payment checks? h.Does your bank have payee verification? i.Is the positive pay service fully implemented at all bank branches? j.How does the bank handle exception (“paid not issued”) items? i.Does the bank offer a daily listing of exception items? ii.Are there defaults available for each account to either automatically return or pay on exception items? iii.What is the timeline for reporting exceptions to the City? iv.How are exceptions reported to the City? Will an image be available? v.What is the timeline for the City to act on any exceptions? vi.What are the hours of operation of this service unit? 10.Purchase Card Program: a.Provide a funds availability schedule by card type. Is it negotiable? b.What is the settlement deadline? c.What daily and/or monthly reconciliation reports are available? d.What software platform do you use? e. What is the percentage of rebate? f.Describe your card management process including New card issuance Cancellation of cards Modification of card parameters (dollar limits) Lost/stolen cards 11.Payment of Fees. Respondents will need to provide information on the following: a.The effective rate and formula used to calculate the service charge credit for collected fund balances; b.The proposed method for setting rates on a compensating certificate of deposit; c.A time frame proposed to pay any additional fees not offset by service charge credit; d.Whether a service charge credit/debit can be carried forward to the next period; e.The formula for any fees in the event of an overdraft; f.Describe what constitutes a daylight and overnight overdraft situation 12.Errors and Adjustments a.Describe your adjustment process for resolving deposit discrepancies. b.At what dollar amount do you write off discrepancies? c.Do you adjust the deposit amount or process an adjusting debit or credit? 13.Describe how inquires requiring research and adjustments are handled by the institution. Are there established turn-around times for research and adjustment items? If yes, specify. What fees are associated with research in the event of a banking error/customer error? 14.Describe NSF or Returned Items processing procedures, fees or other related services available. The City will require re-depositing ‘NSF’ or ‘uncollected funds’ returned items so that they may be presented a second time prior to being charged back. How do you process items returned for reasons other than insufficient funds (ie: stop payments, account closing). 8 15.Security/Protection Measures: a.Is the institution compliant with all current IT security and network encryption standards? Please describe. b. Does the institution have a method of allowing secure submission of encrypted email with attachments for communication? c. Does the institution offer individual security certificates for client computer accessing encrypted portions of the online banking software? d. What security features are in place to minimize the risk of unauthorized transactions? e. How are the City’s assets restored to the City in the event of a security breach or hacking incident? f. What is the timeline for restoration of City Funds in the event of an unauthorized transaction? g.Identify key measures of the bank’s financial strength (ie: capital ratios, market capitalization, total assets). Provide the most recent annual report. 16.Service Enhancements: Describe any enhancements, technological or otherwise, that we should consider to improve operational or cash management efficiencies. 17.Provide information on how your institution plans to keep your product line competitive. Describe what approach the bank is taking in the development of new services and what new services and/or features the bank plans to offer and within what time frame. 18.Disaster Recovery: a.Describe your institution’s formal disaster recovery plan. b.How quickly will back-up facilities be activated? c.Describe your institution’s operating capabilities to assist the City in the event of a disaster or declared emergency. 19.Conversion/Implementation Plan: Describe the conversion plan you would coordinate to ensure a smooth transition from the current provider, including testing and a sample implementation schedule. 20.List the address and hours of operation at your nearest branch office and also the hours of operation for non-branch services. 21.Discuss any special conditions, other fees, other services, or deviations from the requested scope. 9 IX STATEMENT OF FINANCIAL INSTITUTION QUALIFICATIONS Each financial institution submitting a proposal for items included in this document shall prepare and submit the following data along with their proposal: 1. Name of Financial Institution 2. Business Address 3. Business Phone ___ Fax No. 4. E-mail address 5. How many years have you been in business under the present name? 6. General character of services provided by your institution: 7. City of Arlington Business License Number: 8. State of Washington Sales Tax Registration Number: 9. Federal I.R.S. Identification Number: 10. I certify that the institution: Is capable of providing the services as outlined in this proposal, and will comply with the rules and regulations outlined by the Revised Code of Washington, Arlington Municipal Code, and the Washington Public Deposit Protection Commission, and other applicable laws and regulations. I am authorized to commit my firm to this Proposal and that the information herein is valid for 60 days from this date. That all information presented herein is accurate and complete and that the scope of work can be performed as presented in this proposal upon the City’s request. That I have had an opportunity to ask questions regarding this RFP and that those questions have been answered. That I understand that any material omission of required forms or information may result in rejection of this proposal as non-responsive. That this proposal is made without prior understanding, agreement, or connection with any corporation, firm, or person submitting an offer for this proposal, and is in all respects fair and without collusion or fraud. 10 City of Arlington Banking Services Institution Name Authorized Signature Sworn before me, this day of, 2016. Notary Public in and for the State of Washington X NON-COLLUSION AFFIDAVIT CERTIFICATE State of Washington ) )ss County of ) The undersigned, being duly sworn, deposes and say that the person, firm, association, co- partnership, or corporation herein named has not either directly or indirectly entered into any agreement, participated in any collusion, or otherwise taken any action in restraint of free competitive bidding in the preparation and submission of a proposal to the Owner for consideration in the award of a contract on the improvement described as follows: City of Arlington Banking Services _____ Institution Name Authorized Signature Sworn before me, this day of , 2016. Notary Public in and for the State of Washington 11 XI OTHER INFORMATION For additional information or explanation of the contents or intent of these specifications, please e-mail your questions to Kristin Garcia, Finance Director, Finance Department at kgarcia@arlingtonwa.gov. XII PUBLICATION Name of Publication: Date Published: The Herald February 10 and February 14, 2016 12 Attachment A SCOPE OF SERVICES GENERAL INFORMATION The City of Arlington is soliciting proposals for a primary banking relationship with a financial institution which operates an office within the City limits. The City will be contracting for the following general services for an approximate three year period beginning April 1, 2016 and ending March 31, 2019. At the City’s option, a two year extension will be permitted with the same terms and conditions of the original contract or as amended. The following is a listing of mandatory services the City requires of its financial institution. This list is not comprehensive and shall in no way obligate the City to be required to use all listed services. •Demand deposit checking accounts •Banking supplies •Payroll direct deposit •Trust & escrow agent services •Merchant card services •ACH debit/credit services • On-line balance reporting • On-line stop-pays •ACH reporting •On-line wire transfers •Overdraft line of credit •Purchase cards • Excellent customer service & response • Check scanning services The City anticipates that proposed banking services will be compensated either by the credit earned on average collected balances, or a fee for service basis, but is also willing to consider other options. The following is a list of optional services the City may require: • Lock-box Services • Account Reconciliation Processing (ARP) •Positive-Pay on checking accounts Credit cards SERVICES REQUIRED Checking Accounts: The City currently utilizes two checking accounts: 1) the primary checking account and 2) a petty cash account for issuing checks for small, non-routine purchases. The institution will furnish the City with additional checking accounts as needed. Daily deposits are made at the branch office. NSF checks must be processed twice before being returned to the City. The basic checking account services should at least consist of: •Provide month-end statements by the 10th day of the following month and provide statements to various auditors upon request; •Provide electronic check image retrieval including necessary software; •Provide individual and consolidated monthly account analysis for all accounts by the 10th day of the following month; 13 • Provide an on-line wire transfer system for transferring money to other institutions, along with appropriate security levels for wire transfer initiations and approvals; • Provide an on-line computer balance reporting system, with information on collected, available and closing balances, as well as a detail of total debits and credits posted to the account for the previous day, by 7:00 a.m. each business day; • Provide an on-line reporting system that shows current day ACH credits and debits each business day. • Provide Positive Pay feature with exception reporting/return of unknown items; • Provide for on-line stop-pay look-up and notification; • Provide support in answering questions, trouble-shooting problems and resolving issues in a prompt manner; • Provide means to inquire about canceled checks and stop payment on checks upon proper authorization. Overdraft protection: Although the City will attempt to minimize daylight and overnight overdraft situations, it recognizes that there are times these situations could occur. (Note: an overdraft has not occurred within current institutional memory.) Trust and Escrow Agent Services: The City may require trust and escrow agent services to hold letters of credit and other third party commercial documents. The institution will, in most cases, be required to take physical custody of these securities, notify the Parties of their expiration thirty days prior to termination of the agreement and accept renewal or replacement of instruments. The City may also require retainage accounts be maintained for contractors choosing to place retainage funds in an interest bearing account. Safekeeping Services: The City currently is not requiring safekeeping services. However, the institution may, in the future, be required to provide safekeeping facilities and services for the City’s investment securities. Safekeeping services include (but are not limited to): • receive/deliver securities on a delivery versus payment method; • price securities to market; • collect coupon bond interest; • provide delivery confirmation on new security purchases; • provide a monthly statement of holdings; • register or transfer securities; • verify holdings as of specific dates for audit purposes; • credit the City’s account for interest and principal payments on the day received; • provide maturity and interest payment notices at least 5 days prior to payment date The City invests in U.S. Treasury and Agency securities that require safekeeping services and other securities allowed by Washington State Statute. The successful bidder will, at that time, be required to comply with all State and Federal regulations regarding safekeeping of municipal securities. Banking Supplies: The financial institution will be required to provide a supply of coin rollers, locking bank bags, tamper-proof plastic deposit bags, deposit slips, advance travel and other miscellaneous checks, and endorsement stamps for each location. (See Attachment B for the 14 number of endorsement stamps needed.) The cost of such supplies shall be charged against the City’s earnings credits. Training Services: Training, operating manuals and ongoing support are to be supplied by the bank for all services provided. Wire/ACH Transfers: The financial institution will provide the City with the ability to initiate wire and ACH transfers via online banking. ACH transactions consist primarily of debt service, retirement fund transfers, state and federal tax payments. The online banking platform will require a secure separation of duties for initiation and approval by city staff. Direct Deposit for Payroll: The City offers and encourages direct payroll deposit for its employees. The City pays its employees on the last working day of the month. On an average payroll, 126 employees receive direct deposit, which generates approximately 175 transactions per pay period due to many employees having multiple bank account transfers. The City is considering moving to a bi-monthly pay period. Currently, the City tries to transmit payroll data to the institution before 4:00 p.m. the second working day prior to payday. Deposits must be made into the employees’ accounts by 12:01 a.m. on payday. Any deviation from these time limits must be stated in the bid. Any bidder with less restrictive time requirements will be given favorable consideration. The City from time to time may need to transmit the payroll data one day prior to the pay date. We are therefore requesting bids on both a one-day and two-day turnaround. We are interested in what the deadlines for transmission are for both situations. Merchant Card Services: The Financial institution will provide the City with the ability to accept payment through the use of credit cards. The City currently accepts MasterCard, Visa and Discover credit cards in person and on-line for collection of recreation, certain permit fees, and utility bills and may expand for other types of collections as well. The City currently has three locations that accept credit cards, with the possibility of more locations in the future. The City will be credited daily for the gross amount of the bank card transactions. Any sales discount fee or percentage proposed will be billed at the end of each month as part of the activity charges. Night Depository Services: The City currently does not utilize ‘night drop’ deposits after hours and does not anticipate this service in the near future. Purchasing Cards: The City is utilizing a purchasing card program for making routine purchases in lieu of the normal requisition/purchase order mode of operations. Data Equipment Compatibility: The City relies on on-line transactions. Please note the specifications (equipment/software) needed for an automated wire transfer, ACH debit and credit, credit card, balance reporting and any other automated systems included in this proposal. Any costs associated with automated data and equipment should be identified on the Bid Sheet form in Attachment B. Miscellaneous Optional Services: In addition to the requirements listed above, the proposal shall identify proposed fees for the following services: 15 • Automatic Account Reconciliation • Courier services • Lockbox services • Payment of financial system upgrades and fees through use of service charge credits. In order to enhance our banking/financial processing capabilities, we may wish to pay for these fees through service charge credits. • Other services provided by your institution that would be beneficial to the City of Arlington, but have not specifically been addressed. Please itemize on the Bid Sheet form in Attachment B. Online Banking: The financial institution will provide the City with access to internet on-line banking, which, at a minimum, will include the following capabilities: Secure, dual administration (separation of duties) for initiating and approving user access, permissions, wire transfers, ACH transfers, template setups, etc. Future dated wire transfers and ACH transfers. Ability to identify via on-line reporting, by numeric code or text, the originating location of deposits made by City departments. Image viewing of deposit tickets Image viewing of cancelled checks Image viewing of Positive Pay exception items Stop payments Funds transfers between accounts The City shall not be charged or penalized for an overdraft if it is the result of the account balance information not being available at the specified time. The financial institution will provide float information on all deposited items. Electronic Federal Tax Deposit System: The financial institution will provide the ability for automatic withdrawal of payroll taxes by the Internal Revenue Service (IRS). Services Not Provided: In the event that the primary proposing financial institution does not provide all requested services included in this RFP, the financial institution will submit as part of its proposal additional partners/providers which do provide these services. It is the sole responsibility of the primary financial institution to secure and maintain the relationship with any additional providers. The primary financial institution, at the time of bid submittal, will identify all secondary providers. Services Provided: In the event that the primary proposing financial institution provides services not identified, the financial institution will include those items in the Bid Sheet under the Charges for Services Not Identified Above section. *** 16 Attachment B Bid Sheet Services Unit Price Estimated Monthly Volume Monthly Charge Explanation General Services Account Maintenance 4 Banking Center Deposit 24 BBD/Night Drop Deposit Deposit Correction non-cash 1 Vault Deposit Item Processing Deposit Debits Posted-other General Checks Paid Truncated 216 Returns-Chargeback 5 Returns-Reclear Returns-Reclear Services Cks Dep Pre-encoded Items Cks Dep Un-encoded Items 1953 Debits Posted-Electronic 48 Credits Posted-Electronic 136 Deposit Account Statements 4 Commercial Dep-Cash Vault Curr/Coin Dep/$100-Bkg Ctr Curr/Coin Dep/$100-Vlt Coin Supplied/Roll-Vlt Currency Supp/$100-NonStd-Vlt Currency Supp/$100-Std-Vlt Change Order-Auto-Vlt General ACH Services ACH Optional Rpts-Electronic 18 ACH Delete/Reversal ACH Return Item 4 ACH Monthly Maintenance 2 ACH Input-Echannel 5 Delete/Reversal Batch/File ACH Notify of change (NOC) ACH Standard Rpts-Electronic 4 ACH Pre-Note ACH Blocks Auth Instructions 33 ACH Blocks Auth Maintenance 1 ACH Consumer on US Credits 52 ACH Consumer off US Credits 239 17 ACH Credit Received Item 134 ACH Debit Received Item 50 Wire Transfer Maint Basic 1 PHN Wire Rept Template Storage Cust Mnt Temp Storage Elect Wire Out-Domestic Incoming Domestic Wire 2 Elect Wire Out-Book DB Wire Advise-Mail 2 Image Image Archive-90 Days 241 Image Archive-1 year Image Maintenance 3 Image Retrieval Electronic Statements Supplies Endorsement Stamps Deposit Books Plastic Bags per 100 Charges for Services Not Identified Above Express Tax Services Express Tax PC Tax Deposit 2 Mailed Tax Deposit Receipt 2 18 Formulas: Please describe: Daylight Overdraft Formula Overnight Overdraft Formula FDIC Insurance Formula Service Charge Credit Formula The undersigned, an institution or firm maintaining branch/office operations within the city limits of Arlington, Washington, submits the following proposal for the City’s banking services for the period April 1, 2016 through March 31, 2019: Authorization: Institution Name Date Mailing Address Phone Number City, State, Zip Fax Number By Title Contact Name (if different from above) Contact Phone Number 19 Attachment C Banking Services Agreement BANKING SERVICES AGREEMENT PROVISIONS FOR THE CITY OF ARLINGTON The City of Arlington, Washington, a municipal corporation (hereinafter the "City") and , whose address is , (hereinafter the "Financial Institution", agree and contract as follows: 1. SERVICES BY FINANCIAL INSTITUTION A. The Financial Institution agrees to perform the services described in this proposal, as Attachment A which is incorporated herein by reference. B. All services, and all duties incidental or necessary thereto, shall be conducted and performed diligently and completely and in accordance with professional standards of conduct and performance. 2. COMPENSATION A. The total compensation to be paid to the Financial Institution shall be detailed in Attachment B. The above fees include all labor, materials and expenses required for the completion of these services. B. Payment to Financial Institution by the City in accordance with the above shall be the total compensation for all work performed under this agreement and supporting documents hereto as well as all subcontractors’ fees and expenses, supervision, labor supplies, materials, equipment or the use thereof, reimbursable expenses, and other necessary incidentals. C. The Financial Institution shall be paid based on the acceptance of the proposed compensation. D. The City shall have the right to withhold payment to the Financial Institution for any service not completed in a satisfactory manner until such time as the Financial Institution modifies such service to the satisfaction of the City. E. Unless otherwise specified in this Agreement, any payment shall be considered timely if a check is mailed or is available within 45 days of the date of actual receipt by the City of an invoice conforming in all respects to the terms of this Agreement. 3. TERMINATION OF AGREEMENT The City reserves the right to terminate or suspend this Agreement at any time, with or without cause, by giving a forty-five (45) day notice to the Financial Institution in writing. 20 In the event of termination, all finished or unfinished reports, or other material prepared by the Financial Institution pursuant to the Agreement shall be provided to the City. In the event the City terminates this agreement prior to completion without cause, the Financial Institution may complete such analyses and records as may be necessary to place its records in order. The Financial Institution shall be entitled to receive just and equitable compensation of any satisfactory services completed prior to the date of suspension or termination, not to exceed the compensation set forth above. Should the Financial Institution desire to terminate this agreement, written notice of 120 days is required. 4. OWNERSHIP OF WORK PRODUCT Ownership of the originals of any reports, data, studies, surveys, charts, maps, drawings, specifications, figures, photographs, memoranda, and any other documents which are developed, compiled or produced as a result of this agreement, whether or not completed, shall be vested in the City. Any reuse of these materials by the City for projects or purposes other than those which fall within the scope of this agreement or the project to which it relates, without written concurrence by the Financial Institution will be at the sole risk of the City. 5. GENERAL ADMINISTRATION AND MANAGEMENT The Finance Director for the City of Arlington shall review and approve the Financial Institution’s charges to the City under this Agreement, shall have the primary responsibility for overseeing and approving services to be performed by the Financial Institution, and shall coordinate all communications with the Financial Institution from the City. 6. CONTRACT PERIOD The Banking Services Agreement is to extend for a period of three years beginning April 1, 2016 with a two (2) year option to renew the Agreement. The City in order to exercise its renewal option will need to do nothing. At the end of this period, the City may choose to negotiate a renewal option or to request additional proposals. 7. SUCCESSORS AND ASSIGNS The Financial Institution shall not assign, transfer, convey, pledge, or otherwise dispose of this agreement or any part of this agreement without prior written consent of the City. 8. NONDISCRIMINATION The Financial Institution shall, in all hiring or employment made possible or resulting from this agreement, take affirmative action to ensure that there shall be no unlawful discrimination against any employee or applicant for employment because of sex, race, age, color, creed, national origin, marital status or the presence of any sensory, mental or physical handicap, unless based upon a bona fide occupational qualification, and this requirement shall apply to but not be limited to the following: employment, advertising, layoff or termination, rates of pay or other forms of compensation and selection for 21 training, including apprenticeship. No person shall be denied or subjected to discrimination in receipt of the benefit of any services or activities made possible by or resulting from this Agreement on the grounds of sex, race, color, creed, national origin, age except minimum age and retirement provisions, marital status, or the presence of any sensory, mental or physical handicap. 9. HOLD HARMLESS/INDEMNIFICATION The Financial Institution shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the Financial Institution in performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. 10. LIABILITY INSURANCE COVERAGE A. Insurance Term The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Financial Institution, its agents, representatives, or employees. B. No Limitation Financial Institution’s maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Financial Institution to the coverage provided by such insurance, or otherwise limit the City’s recourse to any remedy available at law or in equity. C. Minimum Scope of Insurance Financial Institution shall obtain insurance of the types and coverage described below: 1. Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. 2. Commercial General Liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop-gap independent contractors and personal injury and advertising injury. The City shall be named as an additional insured under the Financial Institution’s Commercial General Liability insurance policy with respect to the work performed for the City using an additional insured endorsement at least as broad as ISO CG 20 26. 22 3. Workers’ Compensation coverage as required by the Industrial Insurance laws of the State of Washington. 4. Professional Liability insurance appropriate to the Financial Institution’s profession. D. Minimum Amounts of Insurance Financial Institution shall maintain the following insurance limits: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. 2. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. 3. Professional Liability insurance shall be written with limits no less than $1,000,000 per claim and $1,000,000 policy aggregate limit. E. Other Insurance Provision The Financial Institution’s Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance as respect the City. Any Insurance, self-insurance, or self-insured pool coverage maintained by the City shall be excess of the Financial Institution’s insurance and shall not contribute with it. F. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. G. Verification of Coverage Financial Institution shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Financial Institution before commencement of the work. H. Notice of Cancellation The Financial Institution shall provide the City with written notice of any policy cancellation within two business days of their receipt of such notice. I. Failure to Maintain Insurance Failure on the part of the Financial Institution to maintain the insurance as required shall 23 constitute a material breach of contract, upon which the City may, after giving five business days notice to the Financial Institution to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Financial Institution from the City. J. City Full Availability of Financial Institution Limits If the Financial Institution maintains higher insurance limits than the minimums shown above, the City shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Financial Institution, irrespective of whether such limits maintained by the Financial Institution are greater than those required by this contract or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by the Financial Institution. 11. COMPLIANCE WITH LAWS The Financial Institution shall comply with all applicable State, Federal and City laws, ordinances, regulations, and codes. 12. FUTURE SUPPORT The City makes no commitment and assumes no obligations for the support of Financial Institution activities except as set forth in this Agreement. 13. INDEPENDENT CONTRACTOR The Financial Institution is and shall be at all times during the term of this agreement an independent contractor. 14. EXTENT OF AGREEMENT/MODIFICATION This Agreement, together with all attachments and addenda, represents the entire and integrated Agreement between the parties hereto and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended, modified or added to only by written instrument properly signed by both parties hereto. 15. ADDITIONAL WORK The City may desire to have the Financial Institution perform other services in connection with the banking relationship other than provided for by the express intent of this contract. Any such services shall be considered as additional work, supplemental to this Agreement. Additional work shall not proceed unless so authorized in writing by the City. Authorized additional work will be compensated in accordance with a written supplemental 24 Agreement between the City and the Financial Institution. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates written below: FINANCIAL INSTITUTION: CITY OF ARLINGTON: By: By: Title: Title: Date: Date: Print Name:_______________________ Print Name: _______________________ APPROVED AS TO FORM: Arlington City Attorney Date: Test Case December 12, 2014 You’ll Notice The Difference. MEMBER FDIC Pa g e 1 SCOPE OF REVIEW The following findings are based on the company’s recent Bank of the West checking account transaction statements. CURRENT STRUCTURE OF ACCOUNTS Automatic loan advances to the Collection Account suggest the structure diagrammed below. The Collection Account’s first priority is to fund the presentments against the Disbursement Account. Then, any excess funds pay down the Line of Credit. However, if the Collection Account does not have sufficient funds to cover the Disbursement Account, it receives an advance from the Line of Credit (red flow arrow). Talking point(s) - If the notion of the Collection Account is to sequester revenue for accounting purposes, wouldn’t allowing loan advances create additional accounting? Presented to Banking Proposal February 29, 2016 Kristin Garcia Finance Director City of Arlington Regarding: Banking Services Proposal Thank you for this opportunity to provide City of Arlington with a banking services proposal. In this document we show how Columbia Bank can be your primary bank by adding value at a fair price. Columbia Bank’s banking service fee for December 2015 would be $320 for the same services Bank of America’s charged the City $1,253. This could be an annual savings of $11,200. Please see the Columbia Bank sample account analysis for specifics. Many communities have decided to move their public money out of multi-national banks to community banks or those large national banks have decided to drop the public entity as a customer because of Basel III. Columbia Bank is a community bank with assets of approximately $9 billion and 149 branches eager to acquire your business. Columbia Bank ranks 5th, out of 67 banks, in Washington State for public deposits. In 2016 Forbes ranked Columbia Bank the best bank headquartered in Washington State and number 19th in the nation. Columbia’s ranking outperforms many of the nation’s largest banks, including Bank of America, Chase, Wells Fargo, KeyBank, and US Bank. Columbia Bank’s deposit market share rates 8th out of 98 institutions in Washington. Columbia Bank has again been rated 5-Star for financial strength by BauerFinancial, an independent financial rating firm that evaluates the financial health of financial institutions throughout the United States. Ratings are based on a variety of factors, including capital, profitability, and loan quality. A 5-Star Superior Rating indicates that Columbia Bank is one of the strongest banks in the nation, a recognition that we are honored to continue to receive. In 2014, America Banker Magazine named Melanie Dressel, Columbia Bank’s President and CEO, one of the top 25 most powerful women in banking nationally. In 2013 Melanie was awarded the Executive Excellence Award by Seattle Business magazine in the CEO of the Year category. Columbia Bank’s Government Banking Team has specialists with depth of knowledge and experience in treasury management, merchant services, lending, investments, and purchase/credit cards. As your dedicated Government Banking Team Member, David Ragan will be your primary contact. With over 20 years of experience in banking, David brings valuable insight from both the bank’s and customers’ standpoint. David and the team are only a PAGE VIII BANKING SERVICES QUESTIONS/STATEMENTS 1. Names of individuals 4 2. References 9 3. Institution’s community participation/reinvestment program 10 4. Institution’s customer service philosophy 10 5. Reports and information about institution 12 6. Funds availability schedule 18 7. Balance Reporting systems 19 8. ACH Services 22 9. Positive Pay 25 10. Purchase Card Program 27 11. Payment of Fees 31 12. Errors and Adjustments 32 13. Inquires requiring research 32 14. NSF or Returned Items 33 15. Security/Protection Measures 33 16. Service Enhancements 37 17. Plans to keep product line competitive 38 18. Disaster Recovery 38 19. Conversion/Implementation Plan 39 20. Address and hours 42 SCOPE OF SERVICES Checking Accounts 42 Overdraft protection 42 Trust and Escrow Agent Services 43 Safekeeping Services 43 Banking Supplies 43 Training Services 43 Wire/ACH Transfers 43 Direct Deposit for Payroll 44 Merchant Card Services 44 Night Depository Services 45 Purchasing Cards 45 Data Equipment Compatibility 45 Miscellaneous Optional Services 45 Online Banking 47 Electronic Federal Tax Deposit System 47 IX STATEMENT OF FINANCIAL INSTITUTION QUALIFICATIONS 48 X Non-Collusion Affidavit Certificate 49 Attachment B - Fees Formulas 52 Authorization 53 Deposit Agreement INDEX City of Arlington – Banking Services Proposal Page | 4 VIII BANKING SERVICES QUESTIONS/STATEMENTS Please provide your responses to the items below in the order presented. 1. Provide the names of individuals, with phone numbers and e-mail addresses, who will be working on the proposed services and their areas of responsibility including their specific experience relative to the request for proposal requirements. Columbia Bank is committed to providing the highest level of customer service. We provide consistent support in a prompt, efficient manner. In addition , we monitor and recommend services and solutions in order to ensure you are having the best banking experience possible. Columbia Bank uses a team approach to provide uninterrupted outstanding customer service. The relationship team dedicated to serving t he City is listed below. The Government Banking Team will handle setups along with onsite and telephone training. Columbia Bank’s Government Banking Team has specialists with depth of knowledge and experience in treasury management, merchant services, lending, investments, and purchase/credit cards. Most of the daily transactions will be handled by Narda Tudder, the local branch manager, and her staff because they are closest to you and have the ability to resolve most situations that arise. As your dedicated Government Banking Team Member, David Ragan will be your primary contact. With over 20 years of experience in banking, David brings valuable insight from both the bank’s and customers’ standpoint. David and his team are only a phone call away and will focus the Bank’s resources on the City to achieve positive outcomes. David is supported by Terrance Menefee, Treasury Management Sales Analyst. Branch staff is available 9 AM to 5 PM Monday through Thursday and 9 AM to 6 PM on Friday. Commercial Care Team is available 8 AM to 5 PM Monday through Friday. Government Banking Team Columbia Bank has a wide range of experience in the Public Sector. We are regular supporters and exhibitors of various government and Municipal Finance Officers’ Association conferences. We stay abreast of the most crucial financial issues faced by our government clients. We have a team of officers experienced in the Public Sector that are dedicated to serving as a valuable resource. Our continued involvement in all facets of the relationship allows our team to act as consultants and advisors with our government agencies and municipalities, which our references will verify. For 22 years we have worked with cities, fire departments, counties, hospitals, government enterprise funds, irrigation districts and utilities, etc. City of Arlington – Banking Services Proposal Page | 5 Michael G. Macy, CTP – Vice President, Treasury Management Consultant, Government Banking Team Lead Phone: 509-839-1821 E-mail: mmacy@columbiabank.com Michael Macy has over 35 years of experience as a treasury management professional in banking and the public sector as a cash management officer and CFO/Auditor. Because of his extensive knowledge of government clients he will assist with the initial setup of the City of Arlington. Michael brings valuable insight from both the bank’s and customers’ standpoint. Michael has been the: Cash Management Officer for Clark County Treasurer, WA Chief Financial Officer/Auditor for Klickitat Public Utility City, Goldendale, WA Managed the cash management services for numerous large non -profit entities After finishing his MBA, he started his career as one of two Senior Cash Management Consultants in the Corporate Banking Division of First Interstate Bank. He was responsible for providing consultation for collection, disbursement and concentration services for customers with annual sales of $10 million dollars or more. This is where he earned his Certified Treasury Professional (CTP – certification by Association for Financial Professionals) credentials. Michael’s background and experience fits well for serving the City’s needs. Michael has: o Been responsible for billing and paying for services for 10,000 customers. These processes included ACH, debit and credit card transactions. o Served as the Cash Management Officer for Clark County Treasurer, Washington— at the time was the fourth largest County in Washington State. Michael was responsible for driving the annual banking service fees down from $347,000 to $17,500. He was responsible for managing banking services of 147 entities, including the County, and all the school, fire and port districts in the County. He automated the banking services including the processing of: 15,000 warrants/checks per month $50 million in wires some days $300 million annual cash flow 900 employee payroll Michael’s experiences help him quickly assess issues from the customer’s viewpoint and offer constructive solutions. City of Arlington – Banking Services Proposal Page | 6 Jessica Hamm – Treasury Management Analyst, Government Banking Team Phone: 253-305-1517 E-mail: jhamm@columbiabank.com Jessica Hamm is the Treasury Management Sales Analyst. Because of her extensive knowledge of government clients she will assist with the initial setup of the City of Arlington. Jessica works with the bank’s largest clients. Jessica has access to Columbia Bank’s suite of Internet Banking and Remote Deposit Capture systems so she can quickly resolve technical and operational issues. Jessica has been in banking for 13 years. David Ragan, AVP, Treasury Management Officer, Government Banking Team Phone: 253-396-6975 E-mail: dragan@columbiabank.com David’s varied banking career began 20 years ago with Harborstone Credit Union where he held various positions including: Online Banking Specialists, ACH Coordinator and Loss Prevention Specialist. For the past 8+ years he has been instrumental in the development and growth of Columbia Bank’s Treasury Management department. He has served a diverse customer base of non-profit and for-profit organizations in the Puget Sound region and oversees many of our Washington municipal accounts, including several cities. Terrance Menefee – Treasury Management Analyst, Government Banking Team Phone: 253-305-0339 E-mail: tmenefee@columbiabank.com David oversees the treasury management relationship, while Terrance is the contact for treasury management support. He will also serve as the focal point for ongoing product and technical implementation, and training. Terrance is a veteran of 10 years in the financial industry, all with Columbia Bank. Commercial Care Team Phone: 877-305-7125 E-mail: commercialcare@columbiabank.com The Team is staffed with twelve professionals. This telephone support can handle most immediate support needs; such as changing passwords, dealing with temporary ACH or remote deposit capture limit increases, quickly removing an individual’s access, and troubleshooting ACH or remote deposit capture transmissions. They are located in Tacoma, Washington. City of Arlington – Banking Services Proposal Page | 7 Luke Pingel - VP, Commercial Banking Officer, Municipal and Non-Profit Finance Phone: 206-223-4550 E-mail: lpingel@columbiabank.com Luke has nine years of Commercial Banking experience, with the last five years focused on municipal and Non-Profit bond finance. Columbia Bank’s private placement bond work in the Pacific Northwest has been centered on cities, counties, water and sewer districts, school districts, port districts, hospital districts and housing authorities. Bond transactions have included interim BANs / lines of credit (including USDA interim notes), General Obligation Bonds and Revenue Bonds. Columbia Bank works with municipal entities, both small and large to find lending solutions that work for our clients. Luke is a member of the Puget Sound Finance Officers Association. In additional to his role as the Bank’s Municipal Lender for Washington State, Luke has a background financing Marine Transportation companies, Alaskan Seafood companies, Finance companies, Tribal Gaming and Non-Profit entities. Jason M. McCrary, CFA® - VP, Senior Portfolio Manager, Government Banking Team Phone: 206-389-4805 E-mail: jmccrary@columbiabank.com Jason McCrary serves as Senior Portfolio Manager for Trust and Investment Services. He brings over 16 years of investment industry experience in managing portfolios for government, and non-profit organizations. In addition, he is also responsible for the primary research on the fixed income investment strategies. Prior to joining Columbia Bank, Jason worked as a financial advisor and investment analyst for UBS Financial Services providing sophisticated wealth management. He was also a portfolio manager and analyst at Wentworth Hauser Violich/Laird Norton Trust. In delivering the client experience, Jason takes the time to understand the needs, goals, and values to develop a highly individualized solution unique to your organization. He keeps you informed on a regular basis through portfolio reviews and can monitor your progress to keep your strategy on track toward your long-term goals. As your needs change, our ongoing process ensures that your investment st rategy responds to ever- changing markets and your evolving needs. Jason holds a Chartered Financial Analyst designation and is an active member of the CFA institute and CFA Society of Seattle. Jason is a graduate of University of Washington with a B.S. in Economics. City of Arlington – Banking Services Proposal Page | 8 Kathleen Larkin-Kuehn, VP, Business Development Manager, Merchant Card Services, Government Banking Team Phone: 253-589-2128 E-mail: klarkin@columbiabank.com Kathleen is the principal contact for the Merchant Card Services Division of Columbia Bank. She has had an extensive successful banking career with several financial institutions including Key Bank, as Territory Sales Manager, and most recently responsible for a Branch Network for America’s Credit Union. Kathleen’s banking career is centered in the commercial & development lending and training. She joined the Merchant Group in March, 2012 to represent a seasoned merchant team of professionals with 350 plus years of experience with a reputation for delivering a high level of customer service backed by highly skilled product knowledge. The team has been awarded “W.W. Phillip Excellence in Customer Service” recognition. Kathleen is well regarded for her coaching abilities with sta ff development and teaching customer sales and service skills. She understands customer needs from a financial and business perspective. Local Branch Team The Arlington Team is comprised of experienced bankers who focus on excellent customer service by providing solutions to their clients’ varied financial needs. Arlington is a quiet foothills town and proud of their community. You’ll notice the difference as they strive to exceed your expectations while building lasting relationships. Narda Tudder, AVP, Branch Manager, Arlington Branch Phone: 360-435-5545 E-mail: ntudder@columbiabank.com Narda Tudder is the Arlington Branch Manager. She has been with Columbia Bank for 5 years and in the banking industry for 26 years. She has worked within banking in the City of Arlington for 9 years, and is a member of the Arlington Rotary Club, Chamber of Commerce, and DABA (Downtown Arlington Business Association). She strives to support her community by volunteering for local events, work parties, and over the years has hosted several informational seminars designed to support local business owners. She has been involved with the Snohomish High School as a guest speaker in the Life After High School classes and is currently working to establish the same program in Arlington to bring banking knowledge to local students as they prep are for their future. Narda has lived in Marysville for 9 years and has two grown sons. City of Arlington – Banking Services Proposal Page | 9 Katie Rumple, Assistant Branch Manager, Arlington Branch Phone: 360-435-5545 E-mail: krumple@columbiabank.com Katie Rumple is the Arlington Assistant Branch Manager. She has been with Columbia Bank for 5 years and in the banking industry for 9 years. Katie has lived in the greater Arlington area for 12 years and her husband has been a resident for the past 35 yea rs. She has three children ages 5 to 17 all attending Arlington schools. Katie volunteers for several community activities such as the Relay for Life and The Arlington Street Fair/Fly In. She truly feels Arlington is a community she is proud to raise her children in and call my home. 2. Submit at least three (3) references (preferably from current local government customers) who can attest to the financial institution’s experience as it relates to providing banking services. The references must include contact name, title, address, e-mail address, telephone number and services used. Silver Lake Water and Sewer District - since 2015 Services Used: Online Banking with Wire module and ACH module, Remote Deposit Capture (X9), Positive Pay, CD-ROM and Lockbox. Contact: Brad Nelson, Finance Manager, Bothell, Washington; 360.337.4687; bnelson@slwsd.com Lake Stevens Sewer District – since 2011 Services Used: Online Banking with ACH module, Remote Deposit Capture, and Positive Pay. Contact: Tonya Christoffersen, Manager of Administration; Lake Stevens, Washington; 425-334-8588; tchristoffersen@lkstevenssewer.org Snohomish School District – since 2015 Services Used: Online Banking with ACH module, ACH Positive Pay, and CD- ROM. Contact: Shannon Smythe, Accounting & Budget Supervisor; Snohomish, Washington; 360-563-7244; shannon.smythe@sno.wednet.edu City of Puyallup – since 1998 Services Used: Online Banking, ACH and W ire Modules, CD-ROM, Lockbox, PayStation, and Merchant Card Services Contact: Melissa Perry, Utility Billing Supervisor; City of Puyallup, Washington; 253-841-5422; melissa@ci.puyallup.wa.us City of Arlington – Banking Services Proposal Page | 10 City of Gig Harbor – since 2011 Services Used: Online Banking with ACH module, Positive Pay, CD-ROM, and Merchant Card Services Contact: Jacki Auclair, Senior Accountant; City of Gig Harbor, Washington; 253- 853-7612; Auclairj@CityofGigHarbor.net 3. Describe your institution’s community participation/reinvestment program. Columbia Bank plays a vital role within the communities we serve. We consider it a privilege to support and volunteer in the communities we serve. We believe supporting the events, and serving the greater good alongside our customers, ensures successful community partnerships. This leads to strong customer loyalty, and advocacy in the communities we serve. We believe by building trust and advocacy with our customers, the organization’s strength will be sustainable. Being an Arlington business member, it is very important for Columbia Bank to be an active participant in the activities and events to support this community. The manager, Narda Tudder is a member of various organizations such as Chamber, DABA, as well as Rotary Club of Arlington. Through these club activities there are many opportunities to serve the needs of the community. Recently Narda has engaged in volunteer work parties for both the Youth Dynamics Mud Hut and the Boy Scouts Camp no rth of Arlington. This year Narda will be taking on the role of Assistant Treasurer of Rotary. The staff of the Arlington Columbia Bank Branch has taken part in the Operation Christmas Hope drive to collect toys and gifts for the economically challenged. Each year we have participated in the Arlington Street Fair and we are now a 3 year sponsor and active participant of the Arlington Duck Dash. Other events include the Arlington Fights Breast Cancer 5K walk/run, Relay for Life. We are creating an introduction to banking program to reach into the local elementary. Columbia Bank is a community-minded business and our employees embrace that concept. We grew up here, we live here, and our children attend school here. We are Arlington. 4. Describe your institution’s customer service philosophy and organizational structure and provide meaningful examples to illustrate. Columbia's strong commitment to highly personalized service, varied products and long - standing community presence attracts experienced, talented bankers. Our bankers work closely with our customers, emphasizing personalized, local decision-making in each of the markets they serve. Columbia Bank offers the varied menu of relationship banking products and sophistication of a regional bank, while retaining the appeal and service level of a community bank. We continue to develop a business culture in which customers are afforded the highest priority in all aspects of the City’s operations. Columbia Bank is committed to providing the highest level of customer service. We City of Arlington – Banking Services Proposal Page | 11 provide consistent support in a prompt, efficient manner. In addition, we monitor and recommend services and solutions that could save time, resources, and/or enhance security protocols. Columbia Bank uses a team approach to provide uninterrupted outstanding customer service. The Government Banking Team will handle implementations along with onsite and telephone training. Columbia Bank’s Government Banking Team has specialists with depth of knowledge and experience in treasury management, merchant services, lending, investments, and purchase/credit cards. Most of the day to day transactions will be handled by Narda Tudder, the local branch manager, and her staff because they are closest to you and have the ability to resolve most issues. Government Banking Team normally works proactively. But once in a while the Government Banking Team has to go reactive. We recently did this when a hospital Payroll Clerk forgot to release the ACH payroll file to pay 468 people. We worked with the hospital get their people paid on time. Below is the thank you we received from the hospital: I cannot express enough how thankful I am for your help on Friday. We have been doing electronic direct deposit since the late 1990’s and that was the first time we experienced the file not releasing. I really was at a loss for knowing how to handle it but knew I was in good hands with all of you. With 468 electronic transactions, only 16 returned to us and some of those were employees’ savings account with their primary deposits taking place. That is exceptional and I know it took a lot of work on the part of your staff. What could have been a very difficult day for my department issuing AP checks to all of the staff was surprisingly seamless, thanks to you! My motto on Friday was very fitting…. Shauna Patrick Fiscal Services, Controller Phn: 509.336.7526/ Fax: 509.332.4242 shauna.patrick@pullmanregional.org City of Arlington – Banking Services Proposal Page | 12 5. Provide the following reports and information about your institution: a. Online reporting sample reports Please see the following pages. Check Paid Report •All paid checks for a rolling 45 day period. •This report can be replaced by Stop and Inquiries in real time, if the customer pulls the paid checks from Stop and Inquiries it will go as far back as 7 years. •Exportable in Comma Separated or Tab Separated format. •Real time Stop and Inquires will not give customer an export function. Account Balance Report •Beneficial if customer is trying to view multiple account balances at one time •45 days history •Similar to Previous Day report but Account Balance Report does not have hyperlink to the account numbers. Previous Day Report •Transaction Search •Hard posted transactions •Best report for reconciliation •Offered in 3 formats (Summary, Transaction List and Statement Report) •Previous Day Report has account number hyperlinks where you can see the transaction detail by click on the account number. •Reports all transactions for a rolling 45 day period. •Can export data in comma separated, tab separated or BAI format (Bank Administration Institute) Cash Position Report •Shows Unreported Credit and Debit (Pending transactions) •Often used to forecast cash flow •Show ending Ledger balance •Transaction search capability •45 day history City of Arlington – Banking Services Proposal Page | 14 b. Monthly account analysis & bank statement Please see the following pages. Statement Date:Jan 15, 2016 Account Number:123456 ACCOUNT ANALYSIS DETAIL Account Number 123456 Report Cycle:12/01/2015 to 12/31/2015 Average Ledger Balance:$3,327,366.95 Days in Cycle:31 Less: Average Float $101,155.51 Average Collected Balance:$3,226,211.44 City of Arlington Less: Reserve (10%)$322,621.14 238 N Olympic Ave Investable Balance:$2,903,590.30 Arlington, WA 98223 Earnings Credit Allowance (0.2300%)567.19$ Transaction Type Volume Per Unit Cost Service Charges Required Balance Deposit Assessment 166.37$ 946,306$ Deposited Items 2143 0.1000$ 214.30$ 1,218,942$ Deposit 26 1 0.3500$ 9.10$ 51,761$ ACH Credits/Debits 168 1 0.1400$ 23.52$ 133,782$ Check 231 1 0.1800$ 41.58$ 236,508$ Wire Transfer In 1 1 15.0000$ 15.00$ 85,320$ Cash Deposited - per $100 1 0.1000$ -$ -$ Cash Deposited - bag of loose coin 1 20.0000$ -$ -$ Cash Furnished - per $100 1 0.1000$ -$ -$ Cash Furnished - per roll 1 0.1000$ -$ -$ Maintenance Fee 1 1 15.0000$ 15.00$ 85,320$ Corporate Online Banking 1 1 50.0000$ 50.00$ 284,401$ ACH Validator 1 1 100.0000$ 100.00$ 568,802$ ACH Batches 8 1 7.5000$ 60.00$ 341,281$ ACH Item Originated 286 1 0.1400$ 40.04$ 227,748$ Check Positive Pay 1 50.0000$ -$ -$ ACH Positive Pay 2 1 5.0000$ 10.00$ 56,880$ Wire Module 1 1 35.0000$ 35.00$ 199,081$ Wire Out - Domestic 1 1 12.0000$ 12.00$ 68,256$ Wire Advice - e-mail 1 1 FREE FREE FREE EDI Reporting 2 1 5.0000$ 10.00$ 56,880$ Returns- chargeback 6 1 10.0000$ 60.00$ 341,281$ Resubmitted returned item 0 1 2.0000$ -$ -$ Stop Payment- online - 6 months 1 1 25.0000$ 25.00$ 142,200$ Total Service Charge 887$ Total Earnings Credit 567$ (320)$ (1,253)$ 11,200$ ACCOUNT ANALYSIS DETAIL Compared to December Bank of America Account Analysis Bank of America fee for same services: Potential annual savings for same services: Columbia Bank fee for services: Checking Account Sample Statement City of Arlington – Banking Services Proposal Page | 16 c. Monthly merchant services report Please see the following pages. EXAMPLE BUSINESS ADDRESS CITY, STATE ZIP City of Arlington – Banking Services Proposal Page | 18 d. Most recent financial statement Because of its size the financial statement is a separate document. e. SEC and/or Moody’s credit rating or comparable rating Columbia Bank is not rated by Moody’s but in 2016 Forbes ranked Columbia Bank the best bank headquartered in Washington State and number 19th in the nation. Columbia’s ranking outperforms many of the nation’s largest banks, including Bank of America, Chase, Wells Fargo, KeyBank, and US Bank. Columbia Bank ranks 5 th, out of 67 banks, in WA State for public deposits and its deposit market share ranks 8th out of 98 institutions in Washington. Columbia Bank has again been rated 5-Star for financial strength by BauerFinancial, an independent financial rating firm that evaluates the financial health of financial institutions throughout the United States. Ratings are based on a variety of factors, including capital, profitability, and loan quality. A 5-Star Superior Rating indicates that Columbia Bank is one of the strongest banks in the nation, a recognition that we are honored to continue to receive. 6. Provide a funds availability schedule. Describe one day, two day availability and wire requirements. Wires and ACH transactions are immediately posted as collected funds. Government checks have one day float. Columbia Bank uses the Fiserv Clearing Network to clear all checks deposited. Columbia Bank immediate availability 125108272 123006729 123202280 123206011 123206189 123206448 123304023 125102278 125104315 125104865 125107875 125108146 125108159 US Travelers Cheques 2 day float 800000051 ALL OTHERS 1 day float City of Arlington – Banking Services Proposal Page | 19 7. Describe your Balance Reporting systems and availability. a. What systems does the bank use to deliver balance and transaction detail information? Columbia Bank utilizes ACI Enterprise Banker™ for its online system which is the industry-leading online banking system. This enterprise-wide solution offers a full range of online banking functionality — from balance and transaction reporting, ACH origination, wire transfer origination, stop payments, and reporting to payment and cash concentration. ACI Enterprise Banker™ is the same system used by several multi- national banks, such as Bank of America, Citibank and Wells Fargo Bank. b. What time is previous day information available for access by the customer? Detailed information for all transactions posted to the accounts the previous day is available by 7 AM each day. c. What are the hours of access of the Balance Reporting system? Access Columbia’s ACI Enterprise Banker™ using a standard web browser and your Internet provider, 24 hours a day, 7 days a week for real-time information. d. Does the bank provide current day information? i. How frequently is this information updated throughout the day? ii. What transaction types are available on current day reports? Current day reporting provides real-time information. For instance if a deposit or check is presented at the branch counter the item will memo post and the transaction will be seen through Columbia Online system. Wire and ACH transactions are posted as they are received and displayed on the online banking system. e. Describe the level of detail provided in previous and current day reports? For ease of use, our online system provides numerous reports such as: Cash Position Statements – summary and detail Checks Paid Report – transaction list Previous Day Report – summary and detail Balance information These reports can be customized and saved. The customization can include specific accounts, dates, summary, and sorting based on date, amount, serial nu mber and reference number or transaction type. f. How many days of history can be accessed through the system? History is kept on the system for 90 days and is fully accessible. In addition, individual City of Arlington – Banking Services Proposal Page | 20 checks, deposit slips and deposit items can be accessed for 7 years. Monthly bank statements and account analysis statements are available online for 18 months. g. In what format is information available? The system supports BAI (Bank Administration Institute), Comma Separated, as well as Tab Separated formats for downloading and exporting account data. h. Provide a sample printout of the daily on-line balance information. Please see the following page for an example. Daily On-line Balance Information City of Arlington – Banking Services Proposal Page | 22 i. What is your process of providing a customized report for your clients? We provide the ability for our clients to create their own customized reports. For ease of use, our online system provides numerous reports such as: Cash Position Statements – summary and detail Checks Paid Report – transaction list Previous Day Report – summary and detail Balance information These reports can be customized and saved. The customization can include specific accounts, dates, summary, and sorting based on date, amount, serial number and reference number or transaction type. 8. ACH Services: a. What is the recommended service delivery method (i.e. direct transmission, on- line, or other)? Does system have ability to integrate files from our CIS/ FIS systems? Is standard formatting used? Columbia Bank can accommodate a direct transmission or on-line upload of a NACHA (National Automated Clearing House Association) file. To upload information on-line a standard NACHA file is the easiest way. However, we have a lot of flexibility. For example, we can accommodate an on-line upload of only the dollar amount for specific individual/entity while the transit routing and account number are housed in a database within our online banking system. i. What are the hardware/software requirements? Access Columbia’s ACI Enterprise Banker™ using a standard web browser and your Internet provider, 24 hours a day, 7 days a week for real-time information. ii. What training does the bank provide? Onsite training is initially provided. In addition, telephone support is available through our Commercial Care Team. There is also a robust Help Button on each of the screens in the on-line banking system. iii. Does the software offer the ability to manage security and access levels by user? Describe. Multiple security levels can be established within the City’s online banking system to ensure dual control and dollar limits by user. Access and security levels are established at the user level, providing customization and flexibility to meet the City’s specific needs. Columbia utilizes ACI Enterprise Banker™ that provides several levels of security including: Encryption City of Arlington – Banking Services Proposal Page | 23 o ACI Enterprise Banker™ utilizes 128 bit Secure Sockets Layer (SSL) encryption to protect the data that travels between your computers and our computer system. Authentication o Strict procedures are in place to positively identify users. o Multi Factor Authentication o Tokens are used to authenticate the release of ACH files or wires. o A VeriSign Digital ID is used to positively identify Columbia Bank’s website. Authorization o Password security o Customizable levels for user security o Transaction security o Daily transaction dollar limits Dual authentication for the release of ACH batches is strongly suggested. Daily limits are established for ACH; however, these limits can be overridden with one hour’s notice. SecureSmart is used to learn the habits of users, help recognize unusual activity, and challenge those users entry into the system. Enhanced features include: Learns the behavior patterns of users and challenges users when accessing from an unfamiliar system, location or time of day Suspicious access results in a request to contact the user through one of up to four phone numbers the user provided at registration. The system will dial the number chosen and present a secure short code on the user’s computer that must be entered into the user’s phone to continue access The option to present traditional challenge questions may be substituted in lieu of the SecureSmart feature Trusteer Rapport, provided free by Columbia Bank, is software we recommend you download to all computers accessing Columbia Bank. This software protects your accounts against cybercriminals and fraud, works with antivirus and other security solutions to stop threats the other solutions can’t protect you from, is effective, easy to use, and won’t slow down your computer or impact your work with other business applications. Enhanced features include: • Security software that blocks malicious attempts to access or steal personal information, credentials, or money. • Locks down the browser to prevent malicious browser tampering • Disables key logging and screen capture attempts • Removes malware from machines and prevents future infections. • Prevents credential and payment card data theft by blocking access to suspected phishing sites. • Does not interfere with the computer’s normal processes – it runs quietly in the background. • Alerts users when they visit a fake website that looks like Columbia Bank’s website. City of Arlington – Banking Services Proposal Page | 24 iv. What report options are available? Online reporting shows the status of any files. The Batch Report shows all of the items within a batch “entered” but not yet “released”. The Validator Report shows the transaction ID for each item in the batch after the batch has been released. Returned ACH items can also be viewed on-line. v. What controls are in place to protect against lost files and duplications of transmissions? Our on-line batch report shows our customers at a glance the status of all ACH files. vi. Does the bank provide automatic file receipt acknowledgements? If so, how? During the upload of the file the format of the file is verified. Once the upload screen is refreshed the screen will indicate if the file has been successfully uploaded and the file will appear in the ACH Batch List as “entered”. Once the file is released it will show a status of “released”. City of Arlington – Banking Services Proposal Page | 25 vii. Describe the role of any third-party processor used by the bank to provide this service? Does the third party provide written report of security standards and protocols for client review? Columbia Bank is its own processor of ACH items; the Bank does not use a third party processor. b. What are the hours of operation of the ACH unit? 8 AM to 5 PM Monday through Friday. c. What are the bank’s cut-off times for customer initiation of ACH transactions? Files can be uploaded any business day until 4 PM for next business day delivery. However, NACHA rules suggest releasing the file two business days prior to the effective date as a best practice. The settlement of money is debited or credited to/from your account on the effective date of the file, not the date the information is entered. d. Describe the procedures used to verify accurate and secure receipt of transmissions. During the upload of the file the format of the file is verified. Once the upload screen is refreshed the screen will indicate if the file has been successfully uploaded and the file will appear in the ACH Batch List as “entered”. Once the file is released it will show a status of “released”. e. Can the bank automatically redeposit items returned for insufficient or uncollected funds? We are not able to automatically redeposit ACH items returned for insufficient or uncollected funds. f. How does the bank handle file, batch, and item reversals and deletions? We can give the City access to do this or our Customer Care Team can generate these items on demand. 9. Positive Pay a. What is the recommended service delivery method (i.e. direct transmission, on- line, or other)? What are the hardware/software requirements? Columbia Bank prefers the on-line delivery method. Our Positive Pay system is very flexible so we should be able to take whatever file layout the City can create. Access to the Positive Pay system is done using a standard web browser and internet connection, 24 hours a day, 7 days a week. City of Arlington – Banking Services Proposal Page | 26 b. What controls are in place to protect against lost files and duplications of transmissions? The system will not allow for duplicate checks to be uploaded. Once a file is uploaded the information is kept in the system forever unless specifically deleted. c. Does the bank provide automatic file receipt acknowledgements? If so, how? Once a file is uploaded the system will indicated if the file is “processed”, “processed with exceptions” or “denied”. d. Describe the role of any third-party processor used by the bank to provide this service. Columbia Bank is its own processor of Positive Pay items; the Bank does not use a third party processor. e. What is the bank’s deadline for transmitting files/data? When a file is uploaded Columbia Bank tellers have immed iate access to the information. Files uploaded by 4 PM will be used to verify checks clearing the bank that evening. f. What is the process for notifying the bank of a single check or small check run outside of the regular batch file? Multiple check runs can be uploaded during the day, or, items can be manually entered by simply entering the check number, amount and date. g. How does the City notify the bank of voided and stop payment checks? A “V” for void and stop payment can be entered either using the file upload or manually. h. Does your bank have payee verification? Columbia Bank tellers have access to the payee information. The City can also see the payee information when decisioning exceptions. The payee verification is not used during the automated clearing of checks. i. Is the positive pay service fully implemented at all bank branches? All Columbia Bank tellers have access to Positive Pay. j. How does the bank handle exception (“paid not issued”) items? i. Does the bank offer a daily listing of exception items? An e-mail is sent notifying City staff of exception items. In addition, when a staff member signs into the on-line system a banner will appear alerting the individual of the existence of exception items. Once you sign into the Positive Pay system a list of exception items is presented. City of Arlington – Banking Services Proposal Page | 27 ii. Are there defaults available for each account to either automatically return or pay on exception items? The system can be set to automatically default to return or pay all items. All the accounts must have the same default. iii. What is the timeline for reporting exceptions to the City? Exception information is available by 9 AM. iv. How are exceptions reported to the City? Will an image be available? The City staff is notified by e-mail when there are exceptions. The exception processing screen displays an image of the check. v. What is the timeline for the City to act on any exceptions? The City must make a pay or return decision by 1 PM. vi. What are the hours of operation of this service unit? Operation Staff is available 8 AM to 5 PM Monday through Friday. 10. Purchase Card Program: a. Provide a funds availability schedule by card type. Is it negotiable? (Merchant Service question) The availability schedule is two business days for all card types. This is non-negotiable. b. What is the settlement deadline? (Merchant Service question) The settlement deadline is two businesses on all card types. c. What daily and/or monthly reconciliation reports are available? Choose from over 60 standard reports (24 months of data available online), including: program, financial, supplier, tax & compliance, administration and global reports. Ad hoc reporting is available. The system can integrate with your electronic expense reporting platform (EER) systems to get valuable information to monitor T&E spending and aid in vendor negotiations. City of Arlington – Banking Services Proposal Page | 28 d.What software platform do you use? Columbia Bank partners with Elan to provide state of the art payment processing and reporting and financial incentives to the City. The system is widely recognized as being at the cutting edge of the industry. Web-based Tool: Access Online Available 24/7, Access Online is a robust, fully Web-enabled program management and reporting tool designed to meet the complex needs of any organization. This user - friendly solution for cardholders and Program Administrators offers card setup and account maintenance, on-demand and scheduled standard and ad hoc reporting, cost allocation and expense reporting tools, as well as file extracts for transaction data integration with the City’s accounting systems. The City will choose the features and functionality that best support and enhance your business processes. Access Online offers effective and efficient management controls, allowing multiple users within your organization to efficiently manage accounts, manage transactions and establish workflow. Using Access Online: Managers can: Review and approve cardholder maintenance requests Review and approve cardholder transactions View cardholder activity Generate management reports With Access Online, you can use the data from your Elan card program to make more informed business decisions, streamline operations and improve your bottom line. Simplify Accounting Built-in file extract capability makes it easy to import your Elan One Card transactions into your general ledger system, significantly reducing time used for manual processing. Access Online Data Exchange fully supports both upload and download capabilities for frequently used types of files such as statement billing files, general ledger data feeds City of Arlington – Banking Services Proposal Page | 29 and custom reports. This functionality provides easy, automated and secure access to your data, facilitating complete integration with the City’s systems. Access Online’s file transfer method allows users to transfer large numbers of files with consistent, uninterrupted access. Track and Analyze Spending Within Access Online, the City’s users can create reports that specify date ranges, departments and other options for customized spending analysis. Online, interactive reports allow you to review information in high-level spending summaries or by individual transaction, schedule reports to run on a certain date/time or on a recurring basis and then distribute this information via email to designated individuals. Our reporting solutions help our clients: Monitor and ensure compliance—Track employee spending by merchant type or location to identify when non-preferred vendors are used. Negotiate better pricing with key suppliers—Review your organization’s spending with key suppliers in order to more effectively negotiate discounts. Standard report categories available include: Program Management Reports Financial Management Reports Supplier Management Reports Tax and Compliance Management Reports Administration Reports In addition to these standard reports, Access Online offers the following ad hoc reporting and scheduling options: Flex Data Reporting—This Access Online feature puts the control in the user’s hands, so they can define what they want to see in a report. By setting the report context—date ranges, processing or reporting hierarchies and more—users are able to choose the amount of data. By defining report content (fields to include or calculate) users ensure the information they need—and only the information they need—is in the report. Users can define a logical grouping of data and at what level it should be subtotaled. Report Scheduler—This Access Online feature is available with our Standard Reports and allows Program Administrators to schedule reports to run once or on a recurring basis. Additional features include: o Reports can be delivered to multiple recipients o Recipients can be notified via email when the report is available o Access to functionality is controlled by Report Scheduler entitlement All reports are parameter-driven and offer a high degree of flexibility and variety of output formats, all fully exportable and viewable online. Reports are available in the following formats: Internet Access Online Secure Mailbox City of Arlington – Banking Services Proposal Page | 30 Export in .pdf and .xls formats Data File Access Online Data Exchange Manage and Approve Transactions Access Online provides users with tools to process and manage transactions in real time. The City can customize Access Online’s transaction management capabilities to reflect your organization’s processes and requirements. Transaction management functionality allows users to: Review transactions Dispute transactions Allocate and reallocate Review and add user-defined line items Add transaction comments Leverage inclusive report signature lines for convenient approval/sign off Access Online Transaction Approval Process is an aspect of the transaction management functionality that allows users to approve and audit transactions. The City can customize the transaction approval process to mirror your existing auditing procedures and policies. This feature expedites transaction review and approval, and generates a complete audit trail. In addition, authorized users can update individual cardholder account activity reports in real time allowing them to change allocations on - the-fly. Inclusive signature lines automatically print at the base of each cardholder activity report for convenient sign-off approval. The savings that can be accrued to the City are significant, often far surpassing the rebate dollars that an organization earns. e. What is the percentage of rebate? Rebates are based on volume of dollars spent, size of ticket, and speed of pay. Some of the minimum conditions of the rebate include: The contract is in place for a year, File Turn Days Payment Performance is equal to or less than 29 days, The Net Annual Charge Volume is equal to or greater than $1,000,000, and The Average Transaction Size is equal to or greater than $150. City of Arlington – Banking Services Proposal Page | 31 f. Describe your card management process including New card issuance Cancellation of cards Modification of card parameters (dollar limits) Lost/stolen cards These changes can be made by the designated Program Administrator at the City through the Access Online web-based system. Modifications to credit limits and card controls are in real time. Assistance is also available by calling the One Card Service Point team. 11. Payment of Fees. Respondents will need to provide information on the following: a. The effective rate and formula used to calculate the service charge credit for collected fund balances; The current earnings credit allowance is .23% and will change with the economy. Below is how the service charge credit is calculated based on the December Bank of America balance information that was provided: b. The proposed method for setting rates on a compensating certificate of deposit; Columbia Bank currently does not use this method to offset fees. c. A time frame proposed to pay any additional fees not offset by service charge credit; Excess fees can be settled monthly, quarterly, semi-annually or annually. The service charge credit or debit can be set to carry over monthly and to settle quarterly, semi- annually or annually. All fees must be settled on December 31st each year. Overdraft fees, if occurred, are directly charged to the account and do not go through account analysis. d. Whether a service charge credit/debit can be carried forward to the next period; The charge can be settled monthly, quarterly, semi-annually or annually. The service charge credit/debit can be set to carry over monthly and to settle quarterly, semi- annually or annually. All fees must settle up December 31st each year. Average Ledger Balance:$3,327,366.95 Less: Average Float $101,155.51 Average Collected Balance:$3,226,211.44 Less: Reserve (10%)$322,621.14 Investable Balance:$2,903,590.30 Earnings Credit Allowance (0.2300%)567.19$ City of Arlington – Banking Services Proposal Page | 32 e. The formula for any fees in the event of an overdraft; A fee of $35 per item is charged in the event of an overnight overdraft. An uncollected funds fee of Prime plus 5% will be charged if the account has an average uncollected balance for the entire month. Given the balances shown on the Bank of America statements that were provided we do not expect there to be an issue with uncollected balances. f. Describe what constitutes a daylight and overnight overdraft situation Columbia Bank does not currently charge for daylight overdrafts. However, we are considering the option. ACH files can be initiated without regard to the funds in the account; however, sufficient funds need to be in the account on the effective da te of the ACH file. Wires can normally be delayed until incoming funds from the WA LGIP or investments cover the daylight overdrafts. Overnight overdrafts occur when at the end of the night there are insufficient funds in the account to cover outgoing transactions. 12. Errors and Adjustments a. Describe your adjustment process for resolving deposit discrepancies. Based on the desires of the City we can make the adjustment and process the deposit or send the entire deposit back to the City to review and correct. Branch staff will work with the City to resolve discrepancies. b. At what dollar amount do you write off discrepancies? We will notify the City of any adjustments based upon instructions from the City. c. Do you adjust the deposit amount or process an adjusting debit or credit? Columbia Bank processes an adjusting debit or credit. 13. Describe how inquires requiring research and adjustments are handled by the institution. Are there established turn-around times for research and adjustment items? If yes, specify. What fees are associated with research in the event of a banking error/customer error? Researching items for the City will be done as quickly as possible. Day to day items can be researched and adjustments can be made normally in the same day. There is no cost for researching routine items. If a research request was received that would take an inordinate amount of time we would discuss the time involved with you. The cost for large research projects is $40 per hour. City of Arlington – Banking Services Proposal Page | 33 14. Describe NSF or Returned Items processing procedures, fees or other related services available. The City will require re-depositing ‘NSF’ or ‘uncollected funds’ returned items so that they may be presented a second time prior to being charged back. How do you process items returned for reasons other than insufficient funds (i.e.: stop payments, account closing). Items can be redeposited a second time. The cost is $10 per returned item. The cost to redeposit an item is $2. To speed up the notification of a returned item the City can receive an e -mail with a copy of the item attached. Instead of $10 per returned item the cost is $12 and includes the cost of special handling. 15. Security/Protection Measures: a. Is the institution compliant with all current IT security and network encryption standards? Please describe. Yes - Security is a high priority at Columbia Bank. Columbia utilizes ACI Enterprise Banker™ that provides several levels of security including: Encryption o ACI Enterprise Banker™ utilizes 128 bit Secure Sockets Layer (SSL) encryption to protect the data that travels between your computers and our computer system. Authentication o Strict procedures are in place to positively identify users. o Multi Factor Authentication o Tokens are used to authenticate the release of ACH files or wires. o A VeriSign Digital ID is used to positively identify Columbia Bank’s website. Authorization o Password security o Customizable levels for user security o Transaction security o Daily transaction dollar limits b. Does the institution have a method of allowing secure submission of encrypted email with attachments for communication? Yes- Columbia Bank uses Cisco Registered Email Services for secure email transmission. This service allows businesses to send encrypted messages via registered envelopes. The registered envelope is an encrypted email which may also be password-protected. If the envelope is password-protected, it can only be opened by authorized recipients who authenticate themselves. City of Arlington – Banking Services Proposal Page | 34 c. Does the institution offer individual security certificates for client computer accessing encrypted portions of the online banking software? Columbia Bank uses ACI Enterprise Banker™ that utilizes 128 bi Secure Sockets Layer (SSL) encryption to protect the data that travels between your computers and our computer system. d. What security features are in place to minimize the risk of unauthorized transactions? Authentication o Strict procedures are in place to positively identify users. o Multi Factor Authentication o Tokens are used to authenticate the release of ACH files or wires. o A VeriSign Digital ID is used to positively identify Columbia Bank’s website. Authorization o Password security o Customizable levels for user security o Transaction security o Daily transaction dollar limits e. How are the City’s assets restored to the City in the event of a security breach or hacking incident? Columbia Bank takes the safeguarding of our customer’s personal identifying information and account integrity seriously and deploys a number of layers of security to protect data and monitor for anomalous transactional behavior. With that said, in preparedness for any type of information security incident, Columbia Bank maintains a detailed Incident Response plan that includes steps for protecting data or information and responding to a breach or incident. As a federally regulated financial institution, Columbia Bank’s policies, procedures, and programs are reviewed on a regular basis by various federal and state agencies. f. What is the timeline for restoration of City Funds in the event of an unauthorized transaction? Please see the attached Account Agreement that details the required notifications from our customers to Columbia Bank for the various types of unauthorized transactions that could occur. Columbia Bank follows all federal and state laws and regulations as it pertains to investigating and restoring funds to the customer based on the type of transaction that occurred. g. Identify key measures of the bank’s financial strength (i.e.: capital ratios, market capitalization, total assets). Provide the most recent annual report. The most recent annual report is under separate cover. Please see information under separate cover called “Key Ratio for Columbia Bank”. City of Arlington – Banking Services Proposal Page | 35 Forbes “America’s Best Banks, 2016” list ranked Columbia Bank 19th in the country, based on asset quality, capital adequacy, net interest margin and profitability among the nation’s 100 largest publicly traded bank and thrifts. Columbia Bank received highest 5-star rating in June, 2015 for financial strength, including capital, profitability and loan quality, by BauerFinancial. Please see the following page for specific information. Financial Highlights $ in Millions 2015 2014 2013 2012 2011 Total Assets $8,954 $8,579 $7,162 $4,906 $4,786 Total Loans (1)$5,815 $5,445 $4,517 $2,947 $2,885 Purchased Credit Impaired Loans (1)$181 $231 $298 $421 $537 Core Deposits $7,128 $6,620 $5,696 $3,802 $3,510 Total Deposits $7,439 $6,925 $5,959 $4,042 $3,816 Nonperforming Assets/ Total Assets 0.39%0.62%0.98%1.32%2.37% Return on Average Assets 1.14%1.09%0.92%0.96%1.07% Return on Average Common Equity 7.93%7.36%6.14%6.06%6.57% Return on Average Tangible Equity 12.35%11.64%9.46%7.81%8.52% 21 (1) Total Loans include Purchased Credit Impaired Loans. Both are presented net of unearned income and gross of ALLL. City of Arlington – Banking Services Proposal Page | 37 16. Service Enhancements: Describe any enhancements, technological or otherwise, that we should consider to improve operational or cash management efficiencies. We suggest utilizing Check Positive Pay, Remote Deposit Capture, and our Government Investment Program: Remote Deposit Capture1 Columbia Bank offers Deposit Express for the same day deposit of checks from your desktop using a check scanner. This service accepts only checks. Utilizing a high speed scanner deposits are electronically presented to the bank and deposited into any or all of your accounts. You receive an e-mail confirming the deposit. To help with data flow and reconciling, multiple people can view the deposit online. Deposits can be made until 7 PM Pacific Time any business day. Any deposits made after the cut-off time will be credited to your account on the following business day. No longer will you need to photocopy deposited checks as many auditors require, simply print an image of all the deposited checks with one click of a button. Note fields can also be used and exported to a file to explain how to account for individual deposited items. Government Investment Program Columbia Bank’s Trust Department offers the Government Investment Program (CBGIP). What is the difference between a brokerage and trust program? A broker has an inventory of investment opportunities that he/she is trying to sell. This is juxtaposition to the CBGIP ran by our Trust Department. Columbia Bank’s Trust Department uses your investment policy to determine what is appropriate for your individual entity. Then they shop the market to obtain investments that meet your criteria. The CBGIP is run on behalf of the City. CB’s Trust Department works for you based on your organization’s investment policy. Features of CBGIP: Securities are managed based on the City’s Investment Policy All securities are held in an account in the City’s name This is an intermediate investment program. The City should manage its liquidity needs in short term investments such as a money market account. 1 Credit approval is required. City of Arlington – Banking Services Proposal Page | 38 The entire portfolio can be liquidated by the City at any time This service is custom priced per entity. 17. Provide information on how your institution plans to keep your product line competitive. Describe what approach the bank is taking in the development of new services and what new services and/or features the bank plans to offer and within what time frame. Columbia Bank is constantly looking to be current or ahead of technology and to provide these services to its clients as appropriate. David Ragan will continue to monitor and make suggestions to the City to improve its efficiency. When we consider product enhancements we have to weigh if it warrants putting the customer through a product migration. Within the last year we: • made major improvements to Positive Pay, • added PayStation (for the online acceptance of e -checks and merchant services) • added X.9 capabilities for upload of remote deposit capture images • added Positive Pay remote access • upgraded Trusteer Rapport • upgraded ACH and Remote deposit capture authentication • upgraded remote deposit capture systems • upgraded account analysis system 18. Disaster Recovery: a. Describe your institution’s formal disaster recovery plan. Columbia Bank’s business continuity plan (which includes disaster recovery) covers everything from small business interruptions to local/regional disasters and pandemic. The Bank’s plan is designed to meet FFIEC (Federal Financial Institutions Examination Council) guidance in order to meet regulatory standards. The plan is derived from an annual business impact analysis which determines which functions are critical in any given disaster event. The different functions are ranked by level of criticality in order to appropriately deploy resources for a particular event. The process of declaring and managing a business continuity event falls under the Crisis Management Team c omprised of Executive and Senior Management as well as key resource individuals from IT, Operations and other back room functions. Each department has its own plans which were developed with the overall plan in mind. When processing is no longer operational, those functions are failed over to the disaster recovery site in Spokane, WA. The site is operated by Columbia Bank’s co-location vendor, Rentsys Recovery Services. Critical systems are backed up and/or replicated to the DR site daily, offering faster failover/restore timeframes. In the most severe of circumstances where branch locations are not accessible, it is still possible to re-establish access via VPN to the DR site from any location with working City of Arlington – Banking Services Proposal Page | 39 internet access, firewall and computing resources. In addition, mobile branches are available from our partner, Rentsys, via their Mobile Recovery Units (MRU). A cellular capable router, switch and an ESX server hosting an SCCM Deployment Point are kept staged and updated in our rack space at IT Lifeline. This equipment replicates the IT infrastructure of a standard branch and can be easily transferred to the MRU and sent to any location. Testing is performed annually and consists of a variety of test methods from functional testing of contingency systems and simulated events, to table top “what if” discussions. Columbia Bank’s core banking system is hosted off -site by a leading banking services provider. Because of the third party processors we use our systems which can be switched between centers quickly to minimize outages. Once a disaster is declared to the DR site restoration efforts begin. Both production and DR locations have dedicated internet connections. Each site is protected by dedicated firewalls which are configured with on-demand VPN connectivity. This permits Columbia Bank staff to conduct business at any functioning location with internet access. Because critical functions are available remotely from the DR site, there is no need to physically travel to the DR facility in Spokane, WA unless desired. We have set RTO’s of 4- 8 hours depending on system criticality. There has not been an event requiring implementation of the plan. b. How quickly will back-up facilities be activated? Recovery options are activated almost immediately. c. Describe your institution’s operating capabilities to assist the City in the event of a disaster or declared emergency. As described above the Bank’s goal is to stay operational no matter what. On -line services, including access to account information and bank statements can be access through any internet provider with the appropriate security codes. For example, recently we had a college experience a denial of internet service because a menacing individual was holding the college hostage for a ransom. The college simply issued their finance department laptops with a separate web address and the department was able to obtain bank account information, upload Positive Pay information and sen d wires. 19. Conversion/Implementation Plan: Describe the conversion plan you would coordinate to ensure a smooth transition from the current provider, including testing and a sample implementation schedule. Michael Macy, Government Banking Team Lead with 35 + years of experience, David Ragan, Government Banking Team Member with 20+ years of experience, Jessica Hamm, Treasury Management Sales Analysist with 13+ years of experience, and Narda Tudder Arlington Branch Manager, will meet with the City to determine exactly what key stakeholders want and what their expectations are. City of Arlington – Banking Services Proposal Page | 40 At the first meeting, which we expect to last an hour and should to be attended by all stakeholders, we hope to determine who needs access to what systems/services. We will start collecting the information needed to give staff access to those systems. Information for signature cards will be collected individually. We will want to determine how the City wants services configured. If ACH blocks/filters/Positive Pay will be used we will obtain a list, with tax ID numbers, of any organizations making deposits or withdraws by account. If deposit location is utilized we need the numbers/names associated with each account. Approximately a week after the first meeting a second meeting, which we expect to last an hour and should to be attended by all stakeholders, we will go over the authorization agreements and hopefully have the key stakeholders sign off on the agreements. During this meeting any clarification of system needs will be discussed. Approximately a month after the second meeting all services will be implemented and onsite training will be provided by Michael, Jessica, David and Narda. In this third meeting, the onsite training for ACI Enterprise Banker will be approximately an hour and include: Signing on – what security features to expect Viewing accounts/checks/deposits Transferring between accounts ACH file upload/release Following the training sessions individual staff will be met with to make sure they individually can sign in, their token is active, and they have access to the information they need. Additionally, telephone support is available through the Commercial Care Team and a robust “help” feature in ACI Enterprise Banker. Please see the next several pages for a more detail plan. ID Task Name Duration Start Finish Resource Names 1 Responsible for implementation Michael 2 Approval of exception pricing Michael 3 4 Jump Start 5 Create standard contract based on RFP 1 day Fri 4/1/16 Fri 4/1/16 Michael 6 Sign off on Contract 5 days Mon 4/4/16 Fri 4/8/16 Customer 7 8 Determine number & names of accounts 0 days Fri 4/1/16 Fri 4/1/16 Customer 9 Create spreadsheet of accounts and services 1 day Mon 4/4/16 Mon 4/4/16 Michael 10 Determine types of accounts - public fund or AAS 1 day Mon 4/4/16 Mon 4/4/16 Michael 11 Set aside account numbers 0 days Fri 4/1/16 Fri 4/1/16 Branch 12 Send customer account numbers 2 days Mon 4/4/16 Tue 4/5/16 Michael 13 Obtain TIN Number 0 days Fri 4/1/16 Fri 4/1/16 Michael 14 Determine billing cycle 0 days Fri 4/1/16 Fri 4/1/16 Michael 15 Determine accounts on ACH 3 days Tue 4/5/16 Thu 4/7/16 Customer 16 Determine accounts on wires 3 days Tue 4/5/16 Thu 4/7/16 Customer 17 Determine accounts on Positive Pay 3 days Tue 4/5/16 Thu 4/7/16 Customer 18 Determine if EDI is needed 3 days Tue 4/5/16 Thu 4/7/16 Customer 19 Determine ONE Card needs 0 days Fri 4/1/16 Fri 4/1/16 Customer 20 Determine Merchant Service needs 0 days Fri 4/1/16 Fri 4/1/16 Customer 21 Determine Trust needs 0 days Fri 4/1/16 Fri 4/1/16 Customer 22 23 Determine ACH limits 0 days Thu 4/7/16 Thu 4/7/16 Michael/customer 24 25 Determine Services 0 days Fri 4/1/16 Fri 4/1/16 Michael/customer 26 Send spreadsheet to document online users 1 day Mon 4/4/16 Mon 4/4/16 Michael 27 28 Determine ACH/RDC/daylight overdraft needs 0 days Fri 4/1/16 Fri 4/1/16 29 Prepare ACH/RDC/daylight overdraft MPA request 1 day Fri 4/8/16 Fri 4/8/16 Jessica 30 Send MPA request to Luke 0 days Fri 4/8/16 Fri 4/8/16 Michael Project Master - city of arlington Page 1 ID Task Name Duration Start Finish Resource Names 31 Prepare limited ACH/RDC MPA request 1 day Mon 4/4/16 Mon 4/4/16 Jessica 32 Obtain limited ACH/RDC MPA 5 days Tue 4/5/16 Mon 4/11/16 Jessica 33 Board ACH/RDC limited MPA on Precision 1 day Tue 4/12/16 Tue 4/12/16 Jessica 34 Submit BSA 1 day Mon 4/4/16 Mon 4/4/16 Jessica 35 Obtain approval of BSA 3 days Tue 4/5/16 Thu 4/7/16 Jessica 36 37 Single Signer - so can start implementation 38 Send form to gather personal information 1 day Mon 4/4/16 Mon 4/4/16 Michael 39 Update Letter of Authorization 0 days Mon 4/4/16 Mon 4/4/16 Michael 40 Send Letter of Authorization 0 days Mon 4/4/16 Mon 4/4/16 Michael 41 Create facsimile signature request 1 day Thu 4/7/16 Thu 4/7/16 Michael 42 Send facsimile signature request 1 day Thu 4/7/16 Thu 4/7/16 Michael 43 receive back personal ID information 2 days Tue 4/5/16 Wed 4/6/16 Customer 44 prepare signature card 1 day Thu 4/7/16 Thu 4/7/16 Branch 45 obtain signature card signatures 2 days Fri 4/8/16 Mon 4/11/16 Customer 46 Obtain signed Letter of Authorization 0 days Thu 4/7/16 Thu 4/7/16 Customer 47 Obtain facsimile signatures authorization 0 days Thu 4/7/16 Thu 4/7/16 Customer 48 Complete Exception for Currency Transaction Reporting 0 days Wed 4/6/16 Wed 4/6/16 Branch 49 Pull last State Audit to create CIF 0 days Thu 4/7/16 Thu 4/7/16 Michael 50 Create CIF 1 day Fri 4/8/16 Fri 4/8/16 Branch 51 52 Other Information to Collect 53 Authorization to receive information 1 day Mon 4/4/16 Mon 4/4/16 Michael/customer 54 Create Authorization 1 day Tue 4/5/16 Tue 4/5/16 Branch 55 Obtain signature 1 day Wed 4/6/16 Wed 4/6/16 Customer 56 57 Where to send return checks 1 day Mon 4/4/16 Mon 4/4/16 Michael/customer 58 Create Authorization 1 day Tue 4/5/16 Tue 4/5/16 Branch 59 Obtain signature 1 day Wed 4/6/16 Wed 4/6/16 Customer Project Master - city of arlington Page 2 ID Task Name Duration Start Finish Resource Names 60 61 Order Supplies 62 Deposit Slips - not necessary with RDC 1 day Wed 4/6/16 Wed 4/6/16 Branch 63 Deposit Stamps 14 days Wed 4/6/16 Mon 4/25/16 Branch 64 Checks - style/color/number 14 days Wed 4/6/16 Mon 4/25/16 Branch 65 double check slips for micro number 14 days Thu 4/7/16 Tue 4/26/16 Michael 66 Review received order for correctness 0 days Tue 4/26/16 Tue 4/26/16 Michael 67 Delivery supplies to customer 1 day Wed 4/27/16 Wed 4/27/16 Michael 68 69 Create agreements 70 Complete users spreadsheet 5 days Tue 4/5/16 Mon 4/11/16 Customer 71 Get online user spreadsheet back from customer 1 day Tue 4/12/16 Tue 4/12/16 Michael 72 Online Banking 0 days Tue 4/12/16 Tue 4/12/16 Jessica 73 ACH 0 days Tue 4/12/16 Tue 4/12/16 Jessica 74 Wires 0 days Tue 4/12/16 Tue 4/12/16 Jessica 75 E-mail of wire notification 0 days Tue 4/12/16 Tue 4/12/16 Jessica 76 ACH Blocks/filters/Positive Pay 0 days Tue 4/12/16 Tue 4/12/16 Jessica 77 EDI Services 1 day Fri 4/8/16 Fri 4/8/16 Jessica 78 Obtain signed agreements 2 days Wed 4/13/16 Thu 4/14/16 Michael/customer 79 80 Give customer list of bank contacts 1 day Fri 4/15/16 Fri 4/15/16 Michael 81 82 Create ACH parameters 1 day Fri 4/8/16 Fri 4/8/16 Jessica 83 Give customer ACH parameter 1 day Mon 4/11/16 Mon 4/11/16 Michael 84 Implement online services 6 days Mon 4/18/16 Mon 4/25/16 Commercial Care 85 86 Test ACH files 1 day Tue 4/26/16 Tue 4/26/16 Jessica/customer 87 88 Train customer 1 day Fri 4/29/16 Fri 4/29/16 Michael/Jessica/customer Project Master - city of arlington Page 3 City of Arlington – Banking Services Proposal Page | 42 20. List the address and hours of operation at your nearest branch office and also the hours of operation for non-branch services. Arlington Branch 404 N West Ave Arlington, WA 98223 Government Banking Team 8 AM to 5 PM Monday through Friday Commercial Care Team 8 AM to 5 AM Monday through Friday 21. Discuss any special conditions, other fees, other services, or deviations from the requested scope. SERVICES REQUIRED Checking Accounts: Columbia Bank can provide all of the requested items. Overdraft protection: A fee of $35 per item is charged in the event of an overnight overdraft. An uncollected funds fee of Prime plus 5% will be charged if the account has an average uncollected balance for the entire month. Given the balances shown on the Bank of America statements that were provided we do not expect there to be an issue with uncollected balances. Trust and Escrow Agent Services: Currently Columbia Bank does not provide these services. City of Arlington – Banking Services Proposal Page | 43 Safekeeping Services: Columbia Bank does not offer safekeeping. We recommend the City uses the State Treasurer’s program. The Office of the State Treasurer (OST) is authorized to negotiate a statewide securities custody contract on behalf of local governments and institutions of higher education RCW 43.08.280. The most important benefit of this voluntary program is the opportunity for local governments to obtain the best rate and terms from a single financial institution for custody services. This contract will save significant time and money fo r participating local entities that will no longer have to do their own custody search. The "pooling" feature of the program will allow smaller jurisdictions to earn the same advantageous rates and terms now available to larger local governments. Currently there are 20 participants with assets of $4.9 billion. OST's role is to select the provider and negotiate a model contract. However, OST will not be a party to the contracts- individual contracts for custody services will be between Statewide Custody Provider and the local participants. If you have questions regarding the statewide securities custody program or would like a copy of the fee schedule contact Doug Extine at (360) 902-9012 or doug.extine@tre.wa.gov. Banking Supplies: Supplies can be charged to account analysis. Training Services: Training manuals along with ongoing training will be provided. The fee for onsite, telephone and manuals is being waived. There is a robust “help” button on each online banking screen. Wire/ACH Transfers: Columbia Bank can provide these services. City of Arlington – Banking Services Proposal Page | 44 Direct Deposit for Payroll: ACH files can be uploaded any business day until 4 PM for next business day delivery. There is no difference in the fee for uploading files one business day prior or two business days prior to the effective date. Best practices suggest customers release files two business days prior to the effective business day. Merchant Card Services: Columbia Bank’s Merchant Program has been consistently identified in the Top 100 processors nationwide. We were identified by “Discover Card” for being a merchant provider with one of the highest rates of merchant customer retention. We offer the most current card industry solutions with competitive pricing for processing and equipment. Our Service and Call Center are located in Washington State and our customers notice the difference. Our program has a proven track record. Our Merchant Center is staffed by local card professionals with a primary goal of providing the best possible customer service. Besides processing our own transactions, Columbia Bank processes Merchant Services for a number of other financial institutions. Some of the benefits of using Columbia Bank include: Local setup and service o Onsite training at implementation o Free point-of-sale supplies Promotes relationship banking o Month-to-month contract terms o No early termination fees Flexible equipment options o Use merchant-owned terminals if reprogrammable o Terminals available for purchase at a competitive price o Rent terminals on a month-to-month basis o Virtual terminal solutions can integrate directly into QuickBooks and various other accounting systems Straight-forward pricing o Pricing is tailored for each customer o Statements are easy to understand, with fees clearly disclosed Columbia Bank does not charge for some common fees such as: Minimum processing fees Chargeback fees ACH or batch fees Correction fees Terminal supply fees City of Arlington – Banking Services Proposal Page | 45 Statement fees Operator-assist fees Voice authorization fees Regulatory fees (IRS reporting, for example) The gross amount of sales is deposited with fees billed at month end. All processing fees are charged to the merchant and not charged to compensating balance earnings. Night Depository Services: Columbia Bank offers night depository as well as day drop services. Purchasing Cards: Columbia Bank partners with Elan to provide state of the art payment processing, reporting and financial incentives to the City. ONE CARD, which is widely recognized as being at the cutting edge of the industry, provides rebates based on volume of spend, size of ticket and speed of pay. The program is further discussed in Section VIII 10. Data Equipment Compatibility: Access Columbia Bank’s online banking, merchant services and purchase card services using a standard web browser and your Internet provider, 24 hours a day, 7 days a week. Miscellaneous Optional Services: In addition to the requirements listed above, the proposal shall identify proposed fees for the following services: • Automatic Account Reconciliation Columbia Bank’s versatile Positive Pay ($50 per account per month) program provides a number of account reconciliation tools, including these reports: Check reconciliation summary Deposit reconciliation summary All checks Outstanding issued checks Daily checks issued summary Paid checks Stops and voids ACH transactions Exception items Stale dated checks Bank exception report EDI and ACH reports ACH return notices City of Arlington – Banking Services Proposal Page | 46 • Courier services Deposits would be picked up each day about 9:00 AM. The cost is $12.00 per day plus fuel surcharge. (Currently the fuel charge is running about 5.50%.) This service would be directly billed to the City by Senvoy, LLC, whom is our service provider. • Lockbox services and other online receivable services Columbia Bank offers lockbox services through Retail Lockbox, Inc. (RLI). RLI delivers an integrated receivables management solution with Columbia Bank to meet the demands of 21st century account settlement and customer satisfaction. Since 1994, RLI has been refining the craft of remittance processing, data management, systems integration, and digital archiving, along with developing ground -breaking web-based payment solutions to meet the needs of a dynamic marketplace. Our commitment is to provide the fastest and most efficient error-free bill payment and imaging services in the world, with the flexibility and technological advances to meet the unique needs of each client. Columbia Bank and Retail Lockbox, Inc. Partnership There is a seamless relationship with Columbia Bank and RLI’s suite of services. The benefit of this partnership is a fully integrated solution to you, the customer. The value of our services goes beyond the accounting and finance departments who need competitive transaction rates, timely deposits, and accurate posting information. We provide services that include exception processing based on the client’s business rul es and special handling. Lockbox Lockbox remittance processing has been RLI’s core competency since 1994. Check payments are remitted to a PO Box before being processed at our Seattle facility and deposited to the City of Arlington’s designated bank acco unt. We customize our lockbox solution for the City of Arlington’s specific business rules and specifications. RetailWEB RetailWEB is our online image archive and research tool – documents that we image will be uploaded to this system. The City of Arlington will be able to view images of all documents we image simply by going online via web browser and logging into RetailWEB. RetailWEB has many features, including the ability to attach notes, email, fax, and edit on the fly. Images are searchable by data fields, such as: customer account number, batch number, dollar amount, date, check number, and others as requested. EPAY Electronic bill payments are generated from consumers utilizing their bank’s bill payment service. RLI consolidates these online bill payments from leading providers along with other payments to provide you a single source of payment processing. EPAY City of Arlington – Banking Services Proposal Page | 47 eliminates most manual, exception, and unprocessable items that are otherwise inevitable in the lockbox industry. Paystation® Logon with Electronic Bill Payment and Presentment (EBPP) Paystation® is a comprehensive online bill payment and presentment system. It provides the customer with a variety of online payment options including one -time, recurring, auto-debit, and future payments. Additionally, it accepts ACH, debit, and credit payments. Users are presented with an invoice and then directed to the online system (customized and styled for the City of Arlington) to make a payment. The system can be fully implemented in a convenience/service fee model. Interactive Voice Response (IVR) This technology will allow the City of Arlington’s customers to easily make payments over the phone, without the need for direct intervention. Information is entered by the customer through simple keypress. ACH, debit, and credit payments are accepted. The system is fully customizable, including but not limited to multiple language, script, payment type, call routing, voice selection, and navigation options. • Payment of financial system upgrades and fees through use of service charge credits. In order to enhance our banking/financial processing capabilities, we may wish to pay for these fees through service charge credits. Unfortunately, Columbia Bank does not provide this option. Online Banking: Please see the description of Columbia Bank’s robust online banking system described earlier. • Future dated wire transfers and ACH transfers. Wires can be initiated 30 days in advance. ACH transfers can also be initiated in advance. • Ability to identify via on-line reporting, by numeric code or text, the originating location of deposits made by City departments. This service can be provided through our Deposit Location service at no additional cost. The remaining qualifications can all be met. Electronic Federal Tax Deposit System: Columbia Bank can accommodate this requirement. City of Arlington – Banking Services Proposal Page | 48 IX STATEMENT OF FINANCIAL INSTITUTION QUALIFICATIONS Each financial institution submitting a proposal for items included in this document shall prepare and submit the following data along with their proposal: 1. Name of Financial Institution Columbia State Bank 2. Business Address 404 N West Ave, Arlington, WA 98223 3. Business Phone 509-839-1821___ Fax No. 206-855-8632 4. E-mail address mmacy@columbiabank.com 5. How many years have you been in business under the present name? 22 6. General character of services provided by your institution: Full banking services within the City of Arlington. 7. City of Arlington Business License Number: 256 8. State of Washington Sales Tax Registration Number: 601480486 9. Federal I.R.S. Identification Number: 91-1422237 10. I certify that the institution: Is capable of providing the services as outlined in this proposal, and will comply with the rules and regulations outlined by the Revised Code of Washington, Arlington Municipal Code, and the Washington Public Deposit Protection Commission, and other applicable laws and regulations. I am authorized to commit my firm to this Proposal and that the information herein is valid for 60 days from this date. That all information presented herein is accurate and complete and that the scope of work can be performed as presented in this proposal upon the City’s request. That I have had an opportunity to ask questions regarding this RFP and that those questions have been answered. That I understand that any material omission of required forms or information may result in rejection of this proposal as non-responsive. That this proposal is made without prior understanding, agreement, or connection with any corporation, firm, or person submitting an offer for this proposal, and is in all respects fair and without collusion or fraud. Columbia State Bank Services Unit Price Estimated Monthly Volume Monthly Charge Explanation General Services Account Maintenance 15.00$ 4 15.00$ Only one account will be charge for. The account with limited activity will be FREE. Banking Center Deposit 0.35 24 8.40 BBD/Night Drop Deposit 0.35 - Deposit Correction non-cash FREE 1 FREE Vault Deposit 0.35 - Item Processing Deposit 0.10 - Debits Posted-other 0.35 - General Checks Paid Truncated 0.18 216 38.88 Returns-Chargebacks 10.00 5 50.00 Returns-Reclear 2.00 - Returns-Reclear Services FREE FREE Cks Dep Pre-encoded items 0.10 - Cks Dep Un-encoded items 0.10 1953 195.30 Debits Posted-Electronic 0.14 48 6.72 Credits Posted-Electronic 0.14 136 19.04 Deposit Account Statements FREE 4 FREE Commercial Dep-Cash Vault Curr/Coin Dep/$100-Bkg Ctr 0.10 - Curr/Coin Dep/$100-Vlt 0.10 - Coin Supplied/Roll-Vlt 0.10 - Currency Supp/$100-NonStd-Vlt 0.10 - Currency Supp/$100-Std-Vlt 0.10 - Change Order-Auto-Vlt FREE FREE simply call the branch General ACH Services ACH Optional Rpts-Electronic 5.00 18 5.00 per account- EDI-Electronic Data Interchange ACH Delete/Reversal ACH Return Item 6.00 4 24.00 ACH Monthly Maintenance 100.00 2 100.00 only one service required for multiple accounts ACH Input-Echannel 7.50 5 37.50 Attachment B Bid Sheet Columbia Bank’s banking service fee for December 2015 would be $320 for the same services Bank of America’s charged the City $1,253. This could be an annual savings of $11,200. Please see the Columbia Bank sample account analysis for specifics. $7.50 per batch plus $.14 per item 1 Columbia State Bank Services Unit Price Estimated Monthly Volume Monthly Charge Explanation Delete/Reversal Batch/File ACH Notify of change (NOC)FREE FREE ACH Standard Rpts-Electronic FREE 4 FREE ACH Pre-Note 0.14 - ACH Blocks Auth Instructions FREE 33 FREE ACH Blocks Auth Maintenance 5.00 1 5.00 per account - can also do ACH Positive Pay for same price ACH Consumer on US Credits 0.14 52 7.28 ACH Consumer off US Credits 0.14 239 33.46 ACH Credit Received Item 0.14 134 18.76 ACH Debit Received Item 0.14 50 7.00 Wire Transfer Maint Basic 35.00 1 35.00 PHN Wire Rept Template Storage FREE FREE Cust Mnt Temp Storage FREE FREE Elect Wire Out-Domestic - online 12.00 - Incoming Domestic Wire 15.00 2 30.00 Elect Wire Out-Book DB 3.00 - Wire Advise-Mail FREE 2 FREE e-mailed Image Image Archive-90 Days FREE 241 FREE Image Archive-1 year FREE FREE Image Maintenance FREE 3 FREE Image Retrieval FREE FREE Electronic Statements FREE FREE Supplies Endorsement Stamps at cost at cost Deposit Books at cost at cost Plastic Bags per 100 at cost at cost Charges for Services Not Identified Above Express Tax Services Express Tax PC Tax Deposit See ACH section 2 See ACH section Process as an ACH item. Mailed Tax Deposit Receipt See ACH section 2 See ACH section Process as an ACH item. Return with special instructions 12.00 CD ROM 20.00 Can hold 30,000 images from multiple accounts Online banking - without wire module 25.00 Online banking - with wire module 50.00 Courier per day - rate could possibly go up 3% per year- will be billed directly by courier to City Deposit Assessment Current earnings credit 0.23% $0.05 per $1,000 Could save $60 per month in reduced module cost if wires are processed through the branch using "PIN and Test". Cost for outgoing domestic wire would be $25 instead of $12 per wire. One or the other. Not both. $12 plus fuel charge $7.50 per batch plus $.14 per item 2 Columbia State Bank Services Unit Price Estimated Monthly Volume Monthly Charge Explanation Reserve Requirement 10.00% Check Positive Pay 50.00 Stop Payments - online - 6 months 25.00 Stop Payment - through a branch - 6 months 35.00 Stop Payment - through a branch - 12 months 45.00 Remote Deposit Capture 50.00 Elect Wire Out-Domestic - manual 25.00 All set up fees for above services waived Merchant Card Services (MCS) - see detail comparison to current processors. Information following equipment. Reporting - Econnections $0.00 $0.00 Online portal to view daily activity & monthly statements Monthly paper statements $0.00 $0.00 One-time set up $60.00 Per merchant account Annual fee $50.00 Per merchant account Visa/MasterCard/Discover Pricing American Express Pricing < or = $100 1.86%+$0.10 American Express Pricing $100.01 to $3000 2.21%+$0.10 American Express Pricing > $3000 2.66%+$0.10 MCS Data Security Compliance Payment Card Industry Data Security Standard (PCI DSS) Self- Assessment Questionnaire (SAQ)$3.00 Annual First IP Quarterly Scan (if required)$9.00 Monthly Each additional IP Scan (if required)$5.00 Monthly Breach Protection Program (optional)$5.00 $100,000 coverage PCI DSS Non-Compliance Fee $25.00 Monthly (if applicable) MCS Equipment Ingenico iCT220 EMV (internal pin pad) - rental $25.00 Month-to-month rental Ingenico iCT220 EMV (internal pin pad) - purchase $345.00 Purchase price plus tax & shipping Ingenico iPP310 EMV (external pin pad) - rental $25.00 Month-to-month rental Ingenico iPP310 EMV (external pin pad) - purchase $240.00 Purchase price plus tax & shipping MCS Network Fee $11.00 Monthly per terminal ID WebPASS - virtual terminal $8.00 Monthly gateway WebPASS - per item $0.10 0.14% Discount rate plus pass-through interchange, card association dues/assessments & per occurrence processing fees. 3 Columbia State Bank Services Unit Price Estimated Monthly Volume Monthly Charge Explanation MCS Dues/Assessments for VS credit transactions 0.13%Applied to Visa credit card volume MCS Dues/Assessments for VS debit transactions 0.11%Applied to Visa signature-based debit card volume MasterCard Dues/Assessments > = $1000 0.14%Applied to credit volume only for transactions $1000 or higher MasterCard Dues/Assessments < $1000 0.12%Applied to volume for transactions less than $1000 Discover Dues/Assessments 0.11%Applied to credit card volume American Express (AMEX) Network Fee 0.15%Applied to credit card volume MCS Per Occurrence Fees Visa Network Acquirer Processing Fee (NAPF) DB $0.0155 Per each signature-based Visa debit transaction Visa Network Acquirer Processing Fee (NAPF) CR $0.0195 Per each Visa credit transaction MasterCard Brand Usage Fee (NABU)$0.0195 Per each MasterCard transaction Discover Data Usage Charge (DDUC)$0.0195 Per each Discover transaction Misuse of Authorization $0.0450 Per each Visa authorization without a corresponding sale Zero Floor Limit $0.10 Per each Visa transaction without a valid authorization Transaction Integrity Fee $0.10 Per each Visa transaction that does not meet card qualifications Address Verification Services (AVS)$0.05 Applied to transactions using card verification values Visa Fixed Acquirer Network Fee (FANF)Varies Monthly fee applied to Visa activity. Varies depending on card-present volume, card- not-present volume, number of merchant locations & merchant category code MasterCard Acquirer Licensing Fee 0.02%Applies to all MasterCard volume MasterCard Digital Enablement 0.01%Applies to card-not-present MasterCard volume excluding pin-debit transactions Visa International Assessment Fee 0.80%Applied to transactions with cards issued outside of the U.S. Visa International Acquirer Fee 0.45% Applied to transactions where card is issued in a different country than merchant location MasterCard Cross Border Assessment 0.60%Applied to transactions with cards issued outside of the U.S. MasterCard Acquirer Program Support Fee (APSF)0.85% Applied to transactions where card is issued in a different country than merchant location Discover International Processing Fee 0.50%Applied to transactions with cards issued outside of the U.S. Discover International Service Fee 0.80% Applied to transactions where card is issued in a different country than merchant location AMEX Inbound Fee 0.40%Applied to transactions with cards issued outside of the U.S. AMEX Non-swiped Fee 0.30%Card-not-present or hand keyed transactions AMEX Non-compliance Fee 0.75%Transactions that do not comply with technical specifications AMEX Data Qualify Fee 0.75%Transactions that do not meet data quality standards AMEX Chargeback fee $25.00 Excessive chargeback fee ACCEL Merchant Participation $8.00 Annual assessment for the ACCEL debit network Below are card brand assessments and processing fees THAT WILL BE CHARGED BY ALL PROCESSORS. Provided here only as a disclosure. 4 -1- T:/PRODUCTS & EQUIP/NOV 2015 PRODUCTS & EQUIP.DOC Rev: 11/20/15 PRODUCTS & EQUIPMENT PRICING ONLY POS COUNTERTOP SOLUTIONS: INGENICO: *(EMV = EUROPAY/MASTERCARD/VISA NFC = NEAR FIELD COMMUNICATION) $ 25.00 Terminal Rental – per unit (Monthly Charge) $ 11.00 MCS Network – per Terminal ID (Monthly Charge) PURCHASE OPTION AVAILABLE: iCT220 Ingenico - $345.00 + Tax iPP310 Ingenico - $249.00 + Tax $ 25.00 Pin Pad Rental – per unit (Monthly Charge) $ .26 Debit Transaction Per Item Plus Network Interchange PURCHASE OPTION AVAILABLE: iCT250 Ingenico - $360.00 + Tax iPP320 Ingenico - $337.50 + Tax $ 25.00 Pin Pad Rental – per unit (Monthly Charge) $ .26 Debit Transaction Per Item Plus Network Interchange MERCHANT OWNED EQUIPMENT REPROGRAMMING: TERMINAL: $30.00 REPROGRAMMING TERMINAL - EMV/NFC ENABLED: $37.00 REPROG/ENCRYPTION EXTERNAL PIN PAD: - $25.00 ENCRYPTION VERIFONE: $ 25.00 Terminal Rental – per unit (Monthly Charge) $ 11.00 MCS Network – per Terminal ID (Monthly Charge) PURCHASE OPTION AVAILABLE: Vx520 Verifone - $345.00 + Tax $ 25.00 Pin Pad Rental – per unit (Monthly Charge) PURCHASE OPTION AVAILABLE: Vx805 EMV - $217.50 + Tax $ .26 Debit Transaction Per Item Plus Network Interchange VERIFONE VX520SCDC - ETHERNET (DIGITAL PHONE LINES) EMV/NFC/PIN PAD INTERNAL MULTI-MERCHANT EXTERNAL PIN PADS: VERIFONE VX805 External Pin Pad ICT250 INGENICO – ETHERNET (DIGITAL PHONE LINES) COLOR DISPLAY * EMV/NFC/PIN PAD INTERNAL VOLTAGE – END TO END ENCRYPTION ICT250 EXTERNAL PIN PADS: iPP320 INGENICO - EMV/NFC ICT220 INGENICO – ETHERNET (DIGITAL PHONE LINES) BLACK & WHITE DISPLAY *EMV/NFC/PIN PAD INTERNAL VOLTAGE – END TO END ENCRYPTION ICT220 EXTERNAL PIN PADS: iPP310 INGENICO - EMV/NFC -2- T:/PRODUCTS & EQUIP/NOV 2015 PRODUCTS & EQUIP.DOC Rev: 11/20/15 WIRELESS SOLUTIONS: PURCHASE ONLY: iWL250GPRS - $738.75 + Tax (One-Time Charge) * Includes Terminal & Dual Comm/Charge Base $ 14.00 Sim Card (One-Time Charge) $ 35.00 Wireless STARTUP (One-Time Charge) $ 21.50 Wireless Service (Monthly Charge) $ 11.00 MCS Network (Monthly Charge) PURCHASE ONLY: iWL220 BLUE TOOTH - $697.50 + Tax (One-Time Charge/Unit) One Base required for up to 7 terminals *Blue Tooth/Charge Base - $228.75 + Tax (One-Time Charge) *Up to 7 Terminals per Base – Add’l Base required for over 7 termimals $ 11.00 MCS Network (Monthly Charge) VX680 GPRS 3G VERIFONE EMV/NFC PURCHASE ONLY: VX680GPRS - $622.50 + Tax (One-Time Charge) *$232.50 - Docking Base – Charger/Dual Comm (Ethernet/Analog) *$112.50 - Ethernet Dongle for programming *$154.50 - Analog Dongle for programming *Plus Tax & Shipping/Handling $ 14.00 Sim Card (One-Time Charge) $ 35.00 Wireless STARTUP (One-Time Charge) $ 21.50 Wireless Service (Monthly Charge) $ 11.00 MCS Network (Monthly Charge) ROAMPAY MOBILE SOLUTION: NO STARTUP $ 6.95 Gateway (Monthly Charge) $ .10 Per Transaction $ 5.00 Telecom/Network (Monthly Charge) $45.00 Roam Card Reader (Plus Tax & Shipping/Handling) ADD’L LINE: $5.00 STARTUP (One-Time Charge) $4.95 Gateway (Monthly Charge) VIRTUAL TERMINAL: NO STARTUP $8.00 Gateway (Monthly Charge) $ .10 Per Transaction $105.00 USB BLK MAGTEK 21073062 (Plus Tax & Shipping/Handling) VIRTUAL TERMINAL CNP/Retail E-Commerce NO STARTUP $ 15.00 Gateway (includes Value-Added Services – ARB/CIM/AFDS) $ .10 Per Transaction $ 5.00 Telecom/Network (Monthly Charge) $105.00 USB BLK MAGTEK - 21040102 (Plus Tax & Shipping/Handling) ROAMPAY COMPATIBILITY WITH 100+ MOBILE DEVICES AND GROWING IWL250 GPRS 3G INGENICO EMV/NFC/PIN PAD INTERNAL VOLTAGE – END TO END ENCRYPTION WEBPASS –CP & CNP MULTI-MERCH *IWL220 BLUE TOOTH INGENICO EMV/NFC/PIN PAD INTERNAL VOLTAGE – END TO END ENCRYPTION *RESTAURANT PAY-AT-THE-TABLE SOLUTION -3- T:/PRODUCTS & EQUIP/NOV 2015 PRODUCTS & EQUIP.DOC Rev: 11/20/15 1stPAYGATEWAY PRODUCT SOLUTIONS: 1stPayGateway VIRTUAL TERMINAL CNP/Retail E-Commerce $ 50.00 STARTUP (One-Time Charge) $ 15.00 Gateway (includes Free Tech Support-Monthly Charge) $ .10 Per Transaction $ 5.00 Telecom/Network (Monthly Charge) $ 10.00 CIM (Monthly Charge) $ 5.00 Additional MID’s (Monthly Charge) Recurring Billing – Free Fraud Protection – Free $105.00 USB Magtek Card Reader (Plus Tax Shipping/Handling) 1stPayGateway QUICKBOOKS PLUG-IN (includes Virtual Terminal) Compatible Versions: Professional – 2008 & Newer Premier – 2008 & Newer Enterprise – 2008 & Newer $100.00 STARTUP (One-Time Charge) $ 19.95 Gateway (includes Free Tech Support) (Monthly Charge) $ .20 Per Transaction $ 5.00 Telecom/Network (Monthly Charge) CIM – Free Recurring Billing – Free Fraud Protection - Free 1stPayGateway MOBILE SOLUTION CNP/Retail http://www.idtechproducts.com/products/mobile- readers/138.html NO STARTUP $ 12.50 Gateway (includes Free Technical Support) (Monthly Charge) $ .10 Per Transaction $ 5.00 Telecom/Network (Monthly Charge) $69.00 IDTECH Card Reader (Plus Tax & Shipping/Handling) POS STATION SYSTEM: 1stPayGateway iPad Solution (iPads not included) A-LA-CARTE EQUIPMENT COSTS (Plus Tax & Shipping/Handling): $156.00 Rest Stand (Removal iPad) $156.00 Windfall Stand (Secured iPad) $156.00 Windfall Stand (Mini iPad) $156.00 Windfall Stand (iPad Air) $132.00 iDynamo Secure Card Reader (Lightning) $413.00 Kitchen Printer (2 Ply Paper) $359.00 Star Thermal Printer (LAN Connection) $212.00 APG Cash Drawer $ .10 Per Transaction $ 5.00 Telecom/Network (Monthly Charge) $839.00 POS System – 2 Packages Available: Pckg #1 Hardware Bundle includes: Rest Stand (removal iPad) Star Thermal Printer (LAN connection required) iDynamo Secure Card Reader (Lighting) APG Cash Drawer Pckg #2 Hardware Bundle includes: Windfall Stand (Secured iPad) Star Thermal Printer (LAN connection required) iDynamo Secure Card Reader (Lighting) APG Cash Drawer CHARGES ASSESSED BY 1STPAYGATEWAY: $ 39.99 per Month – 1st Register $ 24.99 per Month – Each Additional Register or iPad Merchant Name: Volume: $5,037.25 Average Ticket: $125.93 # of Transactions: 40 Comparison Based on: Jan-16 Proposed Rate: 0.14% Type Volume Rate # Trans Fee / Trans TOTAL Volume Rate # Trans Fee / Trans TOTAL DISCOUNT VISA SALES $3,249.32 0.42%29 $13.69 $3,249.32 0.14%29 $4.55 MASTERCARD SALES $1,742.93 0.57%12 $9.92 $1,742.93 0.14%12 $2.44 CARD ASSOCIATION DUES MC ACQUIRER LICENSING $1,742.93 0.00%$0.00 $1,742.93 0.02%$0.35 MC DUES & ASSESSMENTS >=$1K $0.00 0.00%$0.00 $0.00 0.13%$0.00 MC DUES & ASSESSMENTS $1,742.93 0.12%$2.03 $1,742.93 0.12%$2.09 VISA DUES & ASSESSMENTS - CR $3,249.32 0.13%$4.16 $3,249.32 0.13%$4.22 VISA DUES & ASSESSMENTS - DB $0.00 0.00%$0.00 $0.00 0.11%$0.00 DISCOVER DUES & ASSESSMENTS $0.00 0.00%$0.00 $0.00 0.11%$0.00 AMEX NETWORK FEE $0.00 0.00%$0.00 $0.00 0.15%$0.00 PASS-THROUGH INTERCHANGE VISA INTERCHANGE $3,249.32 29 $62.45 $3,249.32 29 $62.45 MASTERCARD INTERCHANGE $1,742.93 12 $19.54 $1,742.93 12 $19.54 AUTHORIZATION & PROCESSING VS ACQUIRER PROCESSING FEE DEBIT 11 $0.0155 $0.17 11 $0.0155 $0.17 VS ACQUIRER PROCESSING FEE CREDIT 17 $0.0195 $0.33 17 $0.0195 $0.33 MC NETWORK ACCESS FEE 12 $0.0195 $0.23 12 $0.0195 $0.23 DS DATA USAGE FEE 0 $0.0000 $0.00 0 $0.0185 $0.00 ADDRESS VERIFICATION SERVICES 0 $0.00 $0.00 12 $0.05 $0.60 MC DIGITAL ENABLEMENT $1,742.00 0.01%$0.17 $1,742.00 0.01%$0.17 VISA AUTHORIZATION 28 $0.0450 $1.26 28 $0.00 $0.00 MASTERCARD AUTHORIZATION 12 $0.0450 $0.54 12 $0.00 $0.00 MC CVC2 TRANSACTION FEE 12 $0.0025 $0.03 12 $0.00 $0.00 MC AVS CNP 12 $0.01 $0.12 12 $0.00 $0.00 MC FILE TRANSMISSION FE 12 $0.0034 $0.04 12 $0.00 $0.00 VISA BASE II TRAN FEE 29 $0.0035 $0.10 29 $0.00 $0.00 BATCH SETTLEMENT 18 $0.10 $1.80 18 $0.00 $0.00 OTHER FEES ANNUAL FEE 1 $89.00 $89.00 1 $50.00 $50.00 ON FILE FEE 1 $10.00 $10.00 VS FIXED ACQUIRER NETWORK FEE CNP 0 $0.00 $0.00 0 $0.00 $0.00 VS FIXED ACQUIRER NETWORK FEE CP 1 $18.35 $18.35 1 $18.35 $18.35 BREACH PROTECTION PROGRAM ?1 $5.00 $5.00 PCI DSS COMPLIANCE 1 $7.50 $7.50 1 $11.00 $11.00 MCS NETWORK 1 $11.00 $11.00 SUPPLIES 40 ??40 $0.00 $0.00 $241.44 $192.50 TOTAL DISCOUNT & FEES $241.44 $192.50 EFFECTIVE RATE 4.79%3.82% $48.94 PLEASE NOTE: 1) The Payment Card Industry Data Security Standard (PCI DSS) compliance fee is assessed monthly or annually based on merchant's preference. The amount is contingent upon the processing method. 2) Underwriting card-not-present (CNP) merchant accounts requires a review of financial statements & tax returns. Merchant Card Services Rate Comparison COLUMBIA BANK MERCHANT CARD SERVICES City of Arlington - Permit Center (online payments) ITRANSIT Prepared by: SM SAVINGS T:\Merchant Card Services\Pricing\MERCHANT BIDS\City of Arlington - RFP Merchant Name: Volume: $172,191.89 Average Ticket: $137.86 # of Transactions: 1,249 Comparison Based on: Dec-15 Proposed Rate: 0.14% Type Volume Rate # Trans Fee / Trans TOTAL Volume Rate # Trans Fee / Trans TOTAL DISCOUNT VISA SALES $121,001.44 0.04%853 $48.40 $121,001.44 0.14%853 $169.40 MASTERCARD SALES $49,886.34 0.04%385 $19.95 $49,886.34 0.14%385 $69.84 DISCOVER $1,304.11 0.04%11 $0.52 $1,304.11 0.14%11 $1.83 CARD ASSOCIATION DUES MC ACQUIRER LICENSING $49,886.34 0.00%$0.00 $49,886.34 0.02%$9.98 MC DUES & ASSESSMENTS >=$1K $0.00 0.00%$0.00 $0.00 0.13%$0.00 MC DUES & ASSESSMENTS $49,886.34 0.12%$59.86 $49,886.34 0.12%$59.86 VISA DUES & ASSESSMENTS - CR $45,516.17 0.13%$59.17 $45,516.17 0.13%$59.17 VISA DUES & ASSESSMENTS - DB $75,485.27 0.11%$83.03 $75,485.27 0.11%$83.03 DISCOVER DUES & ASSESSMENTS $1,304.11 0.11%$1.43 $1,304.11 0.11%$1.43 AMEX NETWORK FEE $0.00 0.15%$0.00 $0.00 0.15%$0.00 INTERCHANGE MASTERCARD CORP DATA RATE 1 $578.60 2.65%5 $0.10 $15.83 $578.60 2.65%5 $0.10 $15.83 CONSUMER CREDIT UTILITIES $1,005.43 0.00%8 $0.65 $5.20 $1,005.43 0.00%8 $0.65 $5.20 ENHANCED UTILITIES $674.76 0.00%5 $0.65 $3.25 $674.76 0.00%5 $0.65 $3.25 WORLD UTILITIES $2,066.43 0.00%17 $0.65 $11.05 $2,066.43 0.00%17 $0.65 $11.05 WORLD ELITE UTILITIES $1,301.26 0.00%11 $0.75 $8.25 $1,301.26 0.00%11 $0.75 $8.25 HIGH VALUE UTILITIES $9,217.59 0.00%3 $0.75 $2.25 $9,217.59 0.00%3 $0.75 $2.25 COMMERCIAL UTILITIES $800.60 0.00%4 $1.50 $6.00 $800.60 0.00%4 $1.50 $6.00 BUSINESS LVL2 UTILITIES $256.03 0.00%2 $1.50 $3.00 $256.03 0.00%2 $1.50 $3.00 MASTERCARD DEBIT DEBIT UTILITIES $4,291.59 0.00%37 $0.45 $16.65 $4,291.59 0.00%37 $0.45 $16.65 UTILITIES PREPAID $1,195.81 0.00%11 $0.65 $7.15 $1,195.81 0.00%11 $0.65 $7.15 REGF CONSUMER UTILITY DB $36,788.24 0.05%282 $0.22 $80.43 $36,788.24 0.05%282 $0.22 $80.43 VISA STANDARD CREDIT $26,024.33 2.70%185 $0.10 $721.16 $26,024.33 2.70%185 $0.10 $721.16 BUSINESS STND T4 $3,928.66 2.95%12 $0.25 $118.90 $3,928.66 2.95%12 $0.25 $118.90 SIGNATURE PREFERRED STND NON TRVL $15,563.18 2.95%76 $0.10 $466.71 $15,563.18 2.95%76 $0.10 $466.71 VISA DEBIT STANDARD DB $16,794.54 1.90%131 $0.25 $351.85 $16,794.54 1.90%131 $0.25 $351.85 STANDARD PP $1,681.15 1.90%14 $0.25 $35.44 $1,681.15 1.90%14 $0.25 $35.44 BUSINESS CARD STND DB $423.33 2.95%3 $0.10 $12.79 $423.33 2.95%3 $0.10 $12.79 REG DB STANDARD $56,450.94 0.05%431 $0.22 $123.05 $56,450.94 0.05%431 $0.22 $123.05 REG PP US STD $135.31 0.05%1 $0.22 $0.29 $135.31 0.05%1 $0.22 $0.29 DISCOVER PSL UTILITIES REWARDS $725.68 0.00%5 $0.75 $3.75 $725.68 0.00%5 $0.75 $3.75 PSL UTILITIES PR $303.16 0.00%2 $0.75 $1.50 $303.16 0.00%2 $0.75 $1.50 COMMERCIAL UTILITIES $275.27 0.00%4 $1.50 $6.00 $275.27 0.00%4 $1.50 $6.00 AUTHORIZATION & PROCESSING VS ACQUIRER PROCESSING FEE DEBIT 580 $0.0155 $8.99 580 $0.0155 $8.99 VS ACQUIRER PROCESSING FEE CREDIT 273 $0.0195 $5.32 273 $0.0195 $5.32 MC NETWORK ACCESS FEE 385 $0.0195 $7.51 385 $0.0195 $7.51 DS DATA USAGE FEE 11 $0.0185 $0.20 11 $0.0185 $0.20 ADDRESS VERIFICATION SERVICES 0 $0.00 $0.00 12 $0.05 $0.60 MC DIGITAL ENABLEMENT $49,886.34 0.01%$4.89 $49,886.34 0.01%$4.99 PAYMENTECH VISA ELECTRONIC AUTH 916 $0.15 $137.40 916 $0.00 $0.00 PAYMENTECH MC ELECTRONIC AUTH 401 $0.15 $60.15 401 $0.00 $0.00 PAYMENTECH DISC ELECTRONIC AUTH 12 $0.15 $1.80 12 $0.00 $0.00 VISA BASE II TRAN FEE 853 $0.0035 $2.99 853 $0.00 $0.00 OTHER FEES NPC SECURE HOSTING FEE 1 $8.98 $8.98 0 $0.00 $0.00 VS FIXED ACQUIRER NETWORK FEE CNP 0 $0.00 $0.00 0 $0.00 $0.00 VS FIXED ACQUIRER NETWORK FEE CP 1 $6.08 $6.08 1 $6.08 $6.08 BREACH PROTECTION PROGRAM ?1 $5.00 $5.00 PCI DSS COMPLIANCE 1 ??1 $11.00 $11.00 MCS NETWORK 1 $11.00 $11.00 SUPPLIES 1249 ??1249 $0.00 $0.00 $2,517.18 $2,515.73 TOTAL DISCOUNT & FEES $2,517.18 $2,515.73 EFFECTIVE RATE 1.46%1.46% PLEASE NOTE: 1) Comparison is based on the $172,191.89 processing detail volume and 1249 transactions of the December 2015 statement. For purposes of completing the comparison, did not use the statement activity summary volume of $219,627.46 with 1287 transactions as we do not know what card types & volume make up the difference of 38 transactions totaling $47,435.57. 2) The Payment Card Industry Data Security Standard (PCI DSS) compliance fee is assessed monthly or annually based on merchant's preference. The amount is contingent upon the processing method. 3) Underwriting card-not-present (CNP) merchant accounts requires a review of financial statements & tax returns. Merchant Card Services Rate Comparison City of Arlington - Xpress Bill Pay (online payments)Prepared by: SM TSYS COLUMBIA BANK MERCHANT CARD SERVICES T:\Merchant Card Services\Pricing\MERCHANT BIDS\City of Arlington - RFP Merchant Name: Volume: $13,824.46 Average Ticket: $314.19 # of Transactions: 44 Comparison Based on: Jan-16 Proposed Rate: 0.14% Type Volume Rate # Trans Fee / Trans TOTAL Volume Rate # Trans Fee / Trans TOTAL DISCOUNT VISA SALES $11,464.36 0.02%27 $2.29 $11,464.36 0.14%27 $16.05 MASTERCARD SALES $515.00 0.02%16 $0.11 $515.00 0.14%16 $0.72 DISCOVER SALES $1,845.10 0.02%1 $0.37 $1,845.10 0.14%1 $2.58 CARD ASSOCIATION DUES MC ACQUIRER LICENSING $515.00 0.00%$0.00 $515.00 0.02%$0.10 MC DUES & ASSESSMENTS >=$1K $0.00 0.00%$0.00 $0.00 0.13%$0.00 MC DUES & ASSESSMENTS $515.00 0.12%$0.62 $515.00 0.12%$0.62 VISA DUES & ASSESSMENTS - CR $11,464.36 0.13%$14.71 $11,464.36 0.13%$14.90 VISA DUES & ASSESSMENTS - DB $0.00 0.11%$0.00 $0.00 0.11%$0.00 DISCOVER DUES & ASSESSMENTS $1,845.10 0.11%$2.03 $1,845.10 0.11%$2.03 AMEX NETWORK FEE $0.00 0.15%$0.00 $0.00 0.15%$0.00 INTERCHANGE VISA SALES $11,464.36 27 $301.62 $11,464.36 27 $301.62 MASTERCARD SALES $515.00 16 $7.74 $515.00 16 $7.74 DISCOVER SALES $1,845.10 1 $9.98 $1,845.10 1 $9.98 AUTHORIZATION & PROCESSING VS ACQUIRER PROCESSING FEE DEBIT 17 $0.0155 $0.26 17 $0.0155 $0.26 VS ACQUIRER PROCESSING FEE CREDIT 10 $0.0195 $0.20 10 $0.0195 $0.20 MC NETWORK ACCESS FEE 18 $0.0195 $0.35 18 $0.0195 $0.35 DS DATA USAGE FEE 1 $0.0185 $0.02 1 $0.0185 $0.02 ADDRESS VERIFICATION SERVICES 0 $0.00 $0.00 3 $0.05 $0.15 MC DIGITAL ENABLEMENT $325.00 0.01%$0.03 $325.00 0.01%$0.03 MC CVC2 TRANSACTION FEE 2 $0.0050 $0.01 2 $0.00 $0.00 MC FILE TRANSMISSION FEE 16 $0.0013 $0.02 16 $0.00 $0.00 VISA BASE II TRAN FEE 29 $0.0035 $0.10 29 $0.00 $0.00 VISA TRANS INTEGRITY FEE 1 $0.10 $0.10 1 $0.10 $0.10 MC AVS CARD NOT PRESENT 1 $0.01 $0.01 1 $0.00 $0.00 VISA AUTH 29 $0.10 $2.90 29 $0.00 $0.00 MASTERCARD AUTH 2 $0.10 $0.20 2 $0.00 $0.00 MASTERCARD AUTH 16 $0.10 $1.60 16 $0.00 $0.00 DISCOVER AUTH 1 $0.10 $0.10 1 $0.00 $0.00 OTHER FEES VS FIXED ACQUIRER NETWORK FEE CNP 0 $0.00 $0.00 0 $0.00 $0.00 VS FIXED ACQUIRER NETWORK FEE CP 1 $13.21 $13.21 1 $13.21 $13.21 BREACH PROTECTION PROGRAM ?1 $5.00 $5.00 PCI DSS COMPLIANCE 1 ??$3.00 MCS NETWORK 1 $11.00 $11.00 SUPPLIES 44 ??44 $0.00 $0.00 $358.58 $386.67 TOTAL DISCOUNT & FEES $358.58 $386.67 EFFECTIVE RATE 2.59%2.80% -$28.09 PLEASE NOTE: 1 The Payment Card Industry Data Security Standard (PCI DSS) compliance fee is assessed monthly or annually based on merchant's preference. The amount is contingent upon the processing method. 2) Underwriting card-not-present (CNP) merchant accounts requires a review of financial statements & tax returns. DIFFERENCE Merchant Card Services Rate Comparison City of Arlington - Finance (terminals)Prepared by: SM VANTIV COLUMBIA BANK MERCHANT CARD SERVICES T:\Merchant Card Services\Pricing\MERCHANT BIDS\City of Arlington - RFP City of Arlington – Banking Services Proposal Page | 51 Lockbox Fee Schedule for City of Arlington2 Wholesale Lockbox Processing Services Monthly Minimum Transaction Fee $ 420.00 per month Includes: 800 transactions per month Daily Detail and Summary Reports Image Cash Letter Deposit Secure Storage and Shredding Assumes OCR A scanline on remittance document Transactions over 800 $ 0.15 per transaction (over monthly minimum) Manual, Multiple, Exception and Unprocessable Transactions $ 0.35 per transaction Implementation & Programming $ 850.00 one-time Waived RetailWEB RetailWEB Image Hosting: Price per Seat $ 25.00 per seat, per month Image Storage for RetailWEB $ 0.0025 per image, per month Correspondence Image Scan $ 0.15 per image Other Fees Overnight/Certified Mailed Items $ 4.00 per transaction Cash Handling $ 5.00 per transaction P.O. Box Fees $ As Billed Courier Fees $ As Billed Annual Compliance Fee 3% of Annual Billings (Billed annually in December) EPAY Note: transaction rate and waiving of implementation fee contingent upon EPAY being purchased with lockbox EPAY Programming and Implementation $ 950.00 one-time Waived EPAY Transactions $ 0.25 per transaction Paystation® or IVR Upon Request Miscellaneous Services Change Request or Maintenance Charges $ 185.00 per hour The above pricing proposal is valid for 60 days and predicated on the services offered as outlined above. Any other or custom functionality may be an additional charge. 2 All fees on this page will be direct billed to the City by Retail Lockbox, Inc. City of Arlington – Banking Services Proposal Page | 52 Formulas: Please describe: Daylight Overdraft Formula Columbia Bank does not currently charge for daylight overdrafts, however, we are in the process of considering this option. Overnight Overdraft Formula A fee of $35 per item is charged in the event of an overnight overdraft. An uncollected funds fee of Prime plus 5% will be charged if the account has an average uncollected balance for the entire month. Given the balances shown on the Bank of America statements that were provided we do not expect there to be an issue with uncollected balances. FDIC Insurance Formula Columbia Bank labels this “Deposit Assessment”. The fee is $.05 per $1,000 average monthly ledger balance. Service Charge Credit Formula The current earnings credit allowance is .23% and will change with the economy. Below is how the service charge credit is calculated based on the December Bank of America balance information that was provided: If there is a fee owing it can be settled monthly, quarterly, semi-annually or annually. The service charge credit/debit can be set to carry over monthly and to settle quarterly, semi-annually or annually. All fees must settle up December 31st each year. Overdraft fees are directly charged to the account and do not go through account analysis. Average Ledger Balance:$3,327,366.95 Less: Average Float $101,155.51 Average Collected Balance:$3,226,211.44 Less: Reserve (10%)$322,621.14 Investable Balance:$2,903,590.30 Earnings Credit Allowance (0.2300%)567.19$ DEPOSIT ACCOUNT AGREEMENT WASHINGTON BUSINESS ACCOUNTS 1 TABLE OF CONTENTS Welcome ................................................................................................................................................................................................................................. 2 Agreement............................................................................................................................................................................................................................... 2 Who We Are ............................................................................................................................................................................................................................ 2 Definitions ............................................................................................................................................................................................................................... 2 FDIC Insurance ....................................................................................................................................................................................................................... 2 GENERAL TERMS OF YOUR ACCOUNT Important Information About Procedures for Opening a New Account ................................................................................................................................... 2 Credit Verification ................................................................................................................................................................................................................. 2 Unlawful Internet Gambling Notice ........................................................................................................................................................................................ 2 Amendments and Termination .............................................................................................................................................................................................. 2 No Waiver of Agreement ....................................................................................................................................................................................................... 2 Waiver of Notices .................................................................................................................................................................................................................. 2 Liability ................................................................................................................................................................................................................................. 2 Arbitration ............................................................................................................................................................................................................................. 3 Governing Law ..................................................................................................................................................................................................................... 3 Conditions of Your Deposit ................................................................................................................................................................................................... 3 Statement of Your Account ................................................................................................................................................................................................... 3 Costs, Services and Maintenance Charges........................................................................................................................................................................... 3 Right of Offset ....................................................................................................................................................................................................................... 3 Security Interest .................................................................................................................................................................................................................... 3 Signature Authorizations ....................................................................................................................................................................................................... 3 Facsimile Signatures ............................................................................................................................................................................................................ 4 Appointment of Attorney In Fact ............................................................................................................................................................................................ 4 Power of Attorney ................................................................................................................................................................................................................. 4 Legal Actions Affecting Your Account ................................................................................................................................................................................... 4 Resolving Account Disputes ................................................................................................................................................................................................. 4 Transfer of Ownership .......................................................................................................................................................................................................... 4 Notice of Withdrawal ............................................................................................................................................................................................................. 4 Withdrawals .......................................................................................................................................................................................................................... 4 Overdrafts ............................................................................................................................................................................................................................. 5 Customer’s Death or Incompetence ...................................................................................................................................................................................... 5 Security ................................................................................................................................................................................................................................ 5 Claim of Loss ........................................................................................................................................................................................................................ 5 Endorsements ...................................................................................................................................................................................................................... 5 Monitoring and Recording Telephone Calls........................................................................................................................................................................... 6 Telephonic Instructions ......................................................................................................................................................................................................... 6 Direct Deposits ..................................................................................................................................................................................................................... 6 Early Withdrawal Penalties ................................................................................................................................................................................................... 6 Address or Name Changes ................................................................................................................................................................................................... 6 Deposits ............................................................................................................................................................................................................................... 6 Foreign Transactions ............................................................................................................................................................................................................ 6 Backup Withholding/TIN Certification .................................................................................................................................................................................... 6 CHECKINGACCOUNTS Checking Accounts ............................................................................................................................................................................................................... 6 Stop Payment Requests ....................................................................................................................................................................................................... 6 Payment Order of Items ........................................................................................................................................................................................................ 7 Check Processing ................................................................................................................................................................................................................. 7 Restrictive Legends .............................................................................................................................................................................................................. 7 Re-Presented Checks ........................................................................................................................................................................................................... 7 Remotely Created Checks .................................................................................................................................................................................................... 7 Stale-Dated Checks .............................................................................................................................................................................................................. 7 Electronic Check Conversions .............................................................................................................................................................................................. 7 ACCOUNT OWNERSHIP TYPES Ownership of Account and Beneficiary Designation .............................................................................................................................................................. 7 Corporations, Partnerships, Sole Proprietorships, Limited Liability Company, Limited Liability Partnership, Fiduciary or Unincorporated Association Accounts ............................................................................................................................................................. 7 Fiduciary Accounts ............................................................................................................................................................................................................... 7 Non-Probate Assets .............................................................................................................................................................................................................. 7 SUBSTITUTE CHECKS AND YOUR RIGHTS......................................................................................................................................................................... 8 SERVICES Wire Transfers and ACH Payments ...................................................................................................................................................................................... 8 Night Depository ................................................................................................................................................................................................................... 8 Telephone Transfers ............................................................................................................................................................................................................. 8 Check Cashing ..................................................................................................................................................................................................................... 8 SAVINGS AND MONEY MARKET ACCOUNTS Transfer Limitations .............................................................................................................................................................................................................. 8 Waivers ................................................................................................................................................................................................................................ 8 ATM/DEBITCARD Termination........................................................................................................................................................................................................................... 9 Other Agreements ................................................................................................................................................................................................................ 9 Security ................................................................................................................................................................................................................................ 9 INACTIVE OR ABANDONED DEPOSIT ACCOUNTS Inactive Account Charges ..................................................................................................................................................................................................... 9 Abandoned Checking and Savings Accounts ........................................................................................................................................................................ 9 Abandoned Time Deposit Accounts ...................................................................................................................................................................................... 9 Payment of Interest Will Cease ............................................................................................................................................................................................. 9 Balance Forwarded To The State ......................................................................................................................................................................................... 9 FUNDS AVAILABILITY POLICY ............................................................................................................................................................................................ 9 2 DEPOSIT ACCOUNT AGREEMENT WASHINGTON BUSINESS ACCOUNTS WELCOME - Thank you for opening an account with us. The terms of your agreement with us include the terms contained in this Agreement and the terms of any additional agreements applicable to certain bank services and/or certain types of accounts we offer. AGREEMENT - This document, along with any other documents we give you pertaining to your account(s), is a contract that establishes rules which control your account(s) with us. Please read this carefully and retain it for future reference. If you sign the signature card or open or continue to use the account, you agree to these rules. You will receive a separate schedule of rates, qualifying balances, and fees if they are not included in this document. If you have any questions, please call us. This agreement is subject to applicable federal laws, the laws of the state of Washington and other applicable rules such as the operating letters of the Federal Reserve Banks and payment processing system rules (except to the extent that this agreement can and does vary such rules or laws). The body of state and federal law that governs our relationship with you, however, is too large and complex to be reproduced here. The purpose of this document is to: (1) summarize some laws that apply to common transactions; (2) establish rules to cover transactions or events which the law does not regulate; (3) establish rules for certain transactions or events which the law regulates but permits variation by agreement; and (4) give you disclosures of some of our policies to which you may be entitled or in which you may be interested. If any provision of this document is found to be unenforceable according to its terms, all remaining provisions will continue in full force and effect. We may permit some variations from our standard agreement, but we must agree to any variation in writing either on the signature card for your account or in some other document. WHO WE ARE - We are Columbia State Bank, a Washington chartered commercial bank. We are owned by Columbia Banking System, Inc. We also operate under one or more trade names including Columbia Bank. When you bank with Columbia Bank, you are banking with Columbia State Bank. Deposits with Columbia Bank are not insured separately by the FDIC. DEFINITIONS - The words “you” and “your” mean, for individuals, including sole proprietorships and fiduciaries, the person or persons, authorized to sign on the account, and for partnerships, corporations, limited liability companies, limited liability partnerships, fiduciary accou nts, unincorporated associations, and Native American Tribes, the entity in whose name the account is carried. The words “bank”, “us”, “our”, “Columbia Bank” mean Columbia State Bank. However this agreement does not intend, and the terms “you” and “your” should not be interpreted, to expand an individual’s responsibility for an organization’s liability. If this account is owned by a corporation, partnership or other organization, individual liability is determined by the laws generally applicable to that type of organization. The headings in this document are for convenience or reference only and will not govern the interpretation of the provisions. Unless it would be inconsistent to do so, words and phrases used in this document should be construed so the singular includes the plural and the plural includes the singular. FDIC INSURANCE - Funds in your account(s) with us are insured by the Federal Deposit Insurance Corporation (FDIC) and backed by the full faith and credit of the United States. The amount of insurance c overage you have depends on the number of accounts you have with us that are of different “ownership.” An individual account is one unique form of “ownership”; a joint account, a pay-on-death account, and a self-directed qualified retirement account (e.g., an IRA) are examples of some of the others. Deposit insurance for a person’s self-directed qualified retirement account is up to $250,000. (An IRA is a self-directed qualified retirement account as is any account where the owner decides where and how to i nvest the balance.) Funds are insured to $250,000 per depositor for the total of funds combined in all of your other insured accounts with us. If you want a more deta iled explanation or additional information, you may ask us or contact the FDIC. You can also visit the FDIC website at www.fdic.gov and click on the Deposit Insurance link. The link includes detailed contact information as well as a deposit insurance estimator. GENERAL TERMS OF YOUR ACCOUNT IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT - To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that i dentifies each person who opens an account. What this means to you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. Also, federal law and our policies r equire that we obtain your social security or tax identification number when you open or maintain an account with us. Even if you have been a customer with us for some time, we may still ask you for this information and documentation because w e may not have done so in the past. CREDIT VERIFICATION - By requesting to open an account with us, or by agreeing to be a signer on an account or obtaining any other service from us, you (and, if acting in a representative capacity, individually and for such entity) agree that we may verify credit and employment history by any necessary means, including preparation of a credit report by a credit reporting agency. We may do so at the time you open the account, at any time while your account is open, or after your account is closed if you owe us any amounts related to your account. If you do not handle your account in a satisfactory manner and it is necessary to charge off your account as a loss, we will report such negative information to check or credit reporting agencies. UNLAWFUL INTERNET GAMBLING NOTICE - Restricted transactions as defined in Federal Reserve Regulation GG are prohibited from being processed through this account or relationship. Restricted transactions generally include, but are not limited to, those in which credit, electronic fund transfers, checks, or drafts are knowingly accepted by gambling businesses in connection with the participation by others in unlawful Internet gambling. AMENDMENTS AND TERMINATION - We may change any term of this Agreement. Rules governing changes in interest rates are provided separately in the Truth-in-Savings disclosure or in another document. For other changes, we will give you reasonable notice in writing or by any other m ethod permitted by law. We may also close this account at any time upon reasonable notice to you and tender of the account balance personally or by mail. Items presented for payment after the account is closed may be dishonored. When you close your account, you are responsible for leaving enough money in the account to cover any outstanding items to be paid from the account. Reasonable notice depends on the circumstances, and in some cases such as when we cannot verify your identity or we suspect fraud, it might be reasonable for us to give you notice after the change or account closure becomes effective. For instance, if we suspect fraudulent activity with respect to your account, we might immediately freeze or close your account and then give you notice. You agree to keep us informed of your current address at all times. Notice from us to any one of you is notice to all of you. If we have notified you of a change in any term of your account and you continue to have your account after the effective date of the change, you have agreed to the new term(s). We may refuse to open any account and may close your account at any time for any reason or for no reason at all. If you close an interest bearing account before accrued interest is paid the accrued interest will be forfeited. NO WAIVER OF AGREEMENT - No waiver of this Agreement or any part of this Agreement is valid unless it is in writing and signed by an authorized officer of ours. Delayed enforcement of any part of this Agreement does not constitute a waiver. Waiver of any part of this Agreement at any one time does not stop us from exercising its terms at any other time. WAIVER OF NOTICES - You waive any notice of non-payment, dishonor or protest regarding any items credited to or charged against your account. LIABILITY - You agree, for yourself (and the person or entity you represent if you sign as a representative of another) to the terms of t his account and the Services & Fees Schedule. You authorize us to deduct these charges, without notice to you, directly from the ac count balance as accrued. You will pay any additional reasonable charges for services you request which are not covered by this Agreement. Each of you also agrees to be jointly and severally (individually) liable for any account shortage resulting from ch arges or overdrafts, whether caused by you or another with access to this account. This liability is due immediately, and can be deducted directly from the account bala nce whenever sufficient funds are available. You have no right to defer payment of this liability, and you are liable regardless of whether you signed the item or benefited from the charge or overdraft. 3 You will be liable for our costs as well as for our reasonable attorneys’ fees, to the extent permitted by law, whether incurred as a result of collection or in any other dispute involving your account. This includes, but is not limited to, disputes between you and another joint owner; you and an authorized signer or similar party; or a third party claiming an interest in your account. This also includes any action that you or a third party takes regarding the account that causes us, in good faith, to seek the advice of an attorney, whether or not we become involved in the dispute. All costs and attorneys’ fees can be deducted from your account when they are incurred, without notice to you. You agree that except as provided in this Agreement and to the extent allowed by law, we are not liable for any indirect, inc idental, special, consequential or punitive damages for any error or mistake we mak e in good faith. The limitation applies to any damages that might be in contract or tort, and whether or not the consequences were foreseeable by us. ARBITRATION - Either you or we may require that any dispute between you and us be resolved by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association. Except as otherwise required by law, the decision of the arbitrator will be final and binding. GOVERNING LAW - This Agreement will be governed by and construed in accordance with laws of our state of formation and federal banking laws. CONDITIONS OF YOUR DEPOSIT - In receiving checks or other items for deposit or collection, we act only as your collecting agent and assume no responsibility beyond the exercise of ordinary care. Our verification of the accuracy of any deposit slip may be limited to adjustments in an amount established by us. Applicable law will govern the handling, collecting and holding of the items. We may refuse to accept or p ay any item that we believe has been altered or amended in any manner. If you deposit a check, draft, or any item other than cash, we have the right to clear it, that is, get paid by the bank it i s drawn on before we make the money available to you. When the money will be available to you will vary. (see Funds Availability Policy). If any item credited to your account is returned to us unpaid, we will send you a notice and charge the item back to your acc ount. If there is not enough money in your account to cover the item, we may retain the item until you refund the amount of the difference to us. A charge back fee may also be charged to your account. If an item is returned to us unpaid because of insufficient funds, we may at our discretion and without noti ce to you, resubmit the item to the bank it is drawn on in order to collect the funds. Sending the item again to the original bank will not affect our right to c harge your account for the amount of the item plus a charge back fee in the event the item is again returned to us unpaid. The applicable fees are reflected in the Services & Fees Schedule. STATEMENT OF YOUR ACCOUNT - A statement of your account will be periodically prepared for you. You agree that each statement is considered to be made available to you from the moment the information that will appear in the statement is accessible by you, regardless of when it is sent or retrieved by you. For joint accounts, you agree that any statement made available to one joint owner or signer is deemed to have been made available to all joint owners or signers. Unless you ask otherwise, all statements, documents, or notices relating to your account will be mailed to your l ast address on file with us and will be considered delivered 3 days after mailing. You assume all responsibility for keeping your mailing address current with us and for all loss or miscarriage in the mails. If you ask to pick up your statement, it will be considered delivered when ready and may be mailed if you have not picked it up within one month of when it was ready. Contact us if you do not receive your regular statement. If this is a business account, you agree that you will have at least two people review your statements, notices, and returned checks, or in the alternative, the person who reviews these will be someone who does not have authority to transact business on the account. When you choose to receive your checking account statement electronically through Online Banking, we will stop sendi ng you paper versions. If you select electronic statements, you will no longer receive images of your checks with your statement and we will email each signer who has requested an electronic statement when a new statement is available online. You are responsible for notifying us if you change your email address. If we do not have a valid email address for you, we cannot notify you when your statement and notices are available and will be forced to deliver your statement through the US Mail. You should examine the statement of your account and related items as soon as they are available to you. You should compare the entries to your checkbook register with your statement. Copies of your cancelled checks are available upon request, and we may charge you for such a request. Refer to the Services & Fees Schedule for the applicable fee. If you believe there has been an error on your statement, or if a check contains an unauthorized or forged signature, an alte ration, or an unauthorized endorsement, you should report this to us immediately. In the case of an unauthorized or forged s ignature, an alteration, or an unauthorized endorsement, you agree that “report” means to inform us in writing by delivery of an Affidavit of Forgery or other written notice to the b ranch at which your account is kept. The notice must include the check number, date, and amount of each check or item in question. If you do not contact us regarding such discrepancies in writing within a reasonable time not to exceed 30 days of the date the statement was made available to you, you cannot make a ny claim against us for any such unauthorized or forged signature, alteration, or endorsement. The time periods will begin to run from the time your stat ement and related items are considered made available to you. We will have no liability for any unauthorized facsimile signature, or for failure to discover a forgery, counterfeit check or alteration that a reasonable person could not discover. COSTS, SERVICES, AND MAINTENANCE CHARGES - We may charge you, and you agree to pay us service and maintenance charges on your accou nt, whether the account is active or inactive. Along with this Agreement you received a Truth -in-Savings disclosure and Services & Fees Schedule which are part of this Agreement and Terms. All Agreements and Disclosures are also available at your branch. The maintenance charges and service fees may be changed by us at any time. We will give you prior notice of the changes if we are required to do so under applicable law. Your contin ued use of your account following any changes will constitute your agreement to these changes. We may deduct, without notice, from your account any service, maintenance, or other charges, all costs, expenses, and fees (i ncluding reasonable attorneys’ fees) which we incur on your behalf as a result of your account or otherwise. We will not be liable for dishonoring your checks, transfers, or other withdrawal requests because we made the above deductions from your account. You agree to indemnify us, our affiliates, and the directors, officers and employees of ours, and our affiliates, against all losses, costs, attorneys’ fees and any other liabilities that we incur by reason of responding to any legal action involving you or your account, regardless of the manner of such response, which manner is solely within our discretion. As part of the indemnity, if we incur liability to a creditor of yours as a result of our response or failure to respond to a legal action, you agree to pay to us on demand the amount of our liability to your creditor and to reimburse us for any expen se, attorneys’ fees or other costs we may incur in collecting the amount from you. We will only be liable for willful violations of any duty to you which may arise by reason of the legal action. RIGHT OF OFFSET - Except as limited by law, we have the right to offset amounts you owe us against your accounts with us. You give us the right, without demand or prior notice, to apply all or part of the money in your accounts with us, including, unless expressly prohibited by law, joint accounts, against any debt any one or more of you owe us now or in the future. Such a debt may include your obligations under a loan or guaranty and any fees you owe us. Our right of offset is in addition to, but subordinate to, a security interest that we may have in your account. SECURITY INTEREST - You grant to us a security interest in all your accounts with us to secure any amount you owe us, now or in the future. We ma y enforce our security interest without demand or prior notice to you. We will not be liable to you if enforcing our securi ty interest against your account(s) leaves insufficient funds to cover outstanding items or other obligations, or results in an overdraft. You agree to hold us harmless from any claims arising as the result of our security interest in, or enforcement of our security interest against your account. You promise that you will not pledge a security interest in your account to any third party without our prior written consent . Any pledge of your account to a third party remains subject to our security interest and right of offset. No assignment is binding on us without our written approval of the assignment and our receipt of a signed copy of the assignment. SIGNATURE AUTHORIZATIONS - Any signature appearing upon the signature card for your account authorizes the signer to access the account and conduct any transactions or business relating to your account subject to any limitations noted on that card. We may allow any signer, including a signer on a joint account, to add authorized signers to an account; however, we have the right to require the signature of all signers to make the change. Only under special circumstances and subject to prior approval by us, may a signer remove another signer from an account. No change in a uthorized signers is effective until we have received written notice of the change and have had adequate time to approve and act on it. You agree that we may treat an y signature on a check or other item drawn on your account as authorized, regardless of whether the signer is designated as an auth orized signer on a signature card, if the 4 signer has actual, implied or apparent authority to act on your behalf. We may act on any signature we believe in good faith is authorized, and we will not be liable for our actions in doing so except in the extent required by law. If you voluntarily give information about your account (such as our routing number and your account number) to a party that i s seeking to sell you goods or services, any debit to your account initiated by the party to whom you gave your information is deemed authorized, even if you gave the information in error. You authorize us to store and use signature card information in any reasonable form we deem necessary, including any digitize d signature capture process. FACSIMILE SIGNATURES - Unless you make advance arrangements with us, we have no obligation to honor facsimile signatures on your checks or other orders. If we do agree to honor items containing facsimile signatures, you authorize us, at any time, to charge you for all c hecks, drafts, or other orders, for the payment of money, that are drawn on us. You give us this authority regardless of by whom or by what means the facsimile s ignature(s) may have been affixed so long as they resemble the facsimile signature specimen filed with us, and contain the required number of signatures for this purpose. You must notify us at once if you suspect that your facsimile signature is being or has been misused. If you use a facsimile signature or other form of mechanically reproduced signature (such as, but not limited to, desktop publishing, digitized, or computer software generated signature), you agree you will have the sole responsibility for maintaining security of the facsimile or m echanically reproduced signature and the device by which the facsimile or mechanically reproduced signature is affixed. You will bear the entire risk for unauthorized use of the signature o r device whether or not you are negligent. You agree that no facsimile or mechanically reproduced signature we have been author ized to honor may be considered a forgery or an unauthorized signature, but that such facsimile or mechanically reproduced signature will be effec tive as your signature or endorsement whether or not you have been negligent. You further agree to indemnify and hold us harmless from and against any and all loss, costs, damage, liability, or exposure (including reasonable attorneys' fees) we or you may suffer or incur as a result of the unauthorized u se, or misuse by any person of any such facsimile or mechanically reproduced signature or the devise by which it is affixed. If you use any form of facsimile or mechanically reproduced signat ure device, you agree to deliver a sample to us if we request it. APPOINTMENT OF ATTORNEY IN FACT - In any account, if joint depositors are involved, each depositor appoints the other or each of the others as his or her attorney in fact to endorse all instruments to be deposited, to make deposits and withdrawals and to stop payment of chec ks or other items against the account. It is the intent of each joint depositor that the authority conferred on the other or others can be exercised notwithstanding the d epositors disability or incapacity or any uncertainty as to whether or not he or she is living. POWER OF ATTORNEY - You may wish to appoint an agent to conduct transactions on your behalf. (We, however, have no duty or agreement whatsoever to monitor or insure that the acts of the agent are for your benefit.) This may be done by allowing your agent to sign in tha t capacity on the signature card or by separate form, such as a power of attorney. A power of attorney continues until your death or the death of the person give n the power. If the power of attorney is not “durable,” it is revoked when you become incompetent. We may continue to honor the transactions of the agent until: (a) we have received written notice or have actual knowledge of the termination of the authority or the death of an owner, and (b) we have had a r easonable opportunity to act on that notice or knowledge. You agree not to hold us responsible for any loss or damage you may incur as a result of our following instructions given by an agent acting under a valid power of attorney. LEGAL ACTIONS AFFECTING YOUR ACCOUNT - If we are served with a subpoena, restraining order, writ of attachment or execution, levy, garnishment, search warrant, or similar order relating to your account (termed “legal action” in this section), we will comply with that l egal action. Or, in our discretion, we may freeze the assets in the account and not allow any payments out of the account until a final court determination regardin g the legal action. We may do these things even if the legal action involves less than all of you. In these cases, we will not have any liability to you if there are insufficient funds to pay your items because we have withdrawn funds from your account or in any way restricted access to your funds in accordance with the legal action. Any fees or expenses we incur in responding to any legal action (including, without limitation, attorneys’ fees and our internal expenses) may be charged against y our account. The Services & Fees Schedule applicable to your account(s) provided elsewhere may specify additional fees that we ma y charge for certain legal actions. RESOLVING ACCOUNT DISPUTES - We may place an administrative hold on the funds in your account (refuse payment or withdrawal of the funds) if it becomes subject to a claim adverse to (1) your own interest; (2) others claimi ng an interest as survivors or beneficiaries of your account; or (3) a claim arising by operation of law. The hold may be placed for such period of time as we believe reasonably necessary to allow a legal proce eding to determine the merits of the claim or until we receive evidence satisfactory to us that the dispute has been resolved. We will not be liable for any items that are dishonored as a consequence of placing a hold on funds in your account for these reasons. TRANSFER OF OWNERSHIP - Your account is not transferable except on our books and records. If you would like to transfer ownership of your account, we may require that the account be closed and a new account be opened. NOTICE OF WITHDRAWAL - We reserve the right to require not less than 7 days’ notice in writing before each withdrawal from an interest-bearing account other than a time deposit, or from any other savings account as defined by Regulation D. (The law requires us to reserve this right, but it is not our general policy to use it.) Withdrawals from a time account prior to maturity or prior to any notice period may be restricted and may be subject to penalty. See your notice of penalty for early withdrawal. WITHDRAWALS - We may require that your withdrawal orders be written in ink. Withdrawals may be made, subject to the limitations below, only through payment to you or as follows: • To a person having your legal power of attorney or other authorization, such as an automated clearing house authorization, to make such withdrawal, • To any person, including us, who has extended credit to you secured by your deposit, where such payment is made so that the creditor can rely upon such security, • According to a court order, • Upon your death or incapacity, to any person legally authorized to receive your deposit, • Upon your authorization in a form acceptable to us, to any person willing to receive such payment, or • According to a separate agreement with us, by an automated teller machine (ATM), telephone transaction, point of sale termina l, Internet payment, or check card or other access device offered by us. Interest may be paid to a third person according to written instruction or assignment by you, accepted by us, and placed on file. Generally - Unless clearly indicated otherwise on the account records, any of you, acting alone, who signs to open the account or has authority to make withdrawals may withdraw or transfer all or any part of the account balance at any time. Each of you (until we receive writte n notice to the contrary) authorizes each other person who signs or has authority to make withdrawals to endorse any item payable to you or your order for deposit to this account or any other transaction with us. Postdated checks - A postdated check is one which bears a date later than the dat e on which the check is written. We may properly pay and charge your account for a postdated check even though payment was made before the date of the check, unless we have received written notice of the postdating in time to have a reasonable opportunity to act. Because we process checks mechanically, your notice will not be effective and we will not be liable for failing to honor your notice unless it precisely identifies the number, date, amount and payee of the item. Checks and withdrawal rules - If you do not purchase your check blanks from us, you must be certain that we approve the check blanks you purchase. We may refuse any withdrawal or transfer request which you attempt on forms not approved by us or by any method we do not specif ically permit. We may refuse any withdrawal or transfer request which is greater in number than the frequency permitted, or which is for an amount greater or less than any withdrawal limitations. We will use the date the transaction is completed by us (as opposed to the da te you initiate it) to apply the frequency limitations. In addition, we may place limitations on the account until your identity is verified. Even if we honor a nonconforming request, we are not required to do so later. If you violate the stated transacti on limitations (if any), in our discretion we may close your account or reclassify it as a transaction account. If we reclassify your account, your account will be subject to the fees and earnings rules of the new account classification. If we are presented with an item drawn against your account that would be a “substitute check,” as defined by law, but for an error or defect in the item introduced in the substitute check creation process, you agree that we may pay such item. 5 See the funds availability policy disclosure for information about when you can withdraw funds you deposit. For those accounts to which our funds availab ility policy disclosure does not apply, you can ask us when you make a deposit when those funds will be available for withdrawal. W e may determine the amount of available funds in your account for the purpose of deciding whether to return an item for insufficient funds at any time between the time we receive the item and when we return the item or send a notice in lieu of return. We need only make one determination, but if we choose to make a subsequent determination, the account balance at the subsequent time will determine whether there are insufficient available funds. Multiple signatures, electronic check conversion, and similar transactions - An electronic check conversion transaction is a transaction where a check or similar item is converted into an electronic fund transfer as defined in the Electronic Fund Transfers regulation. In thes e types of transactions the check or similar item is either removed from circulation (truncated) or given back to you. As a result, we have no opportunity to review the c heck to examine the signatures on the item. You agree that, as to these or any items as to which we have no opportunity to examine the signatures, you waive any requirement of multiple signatures. OVERDRAFTS - You understand that we may, at our discretion, honor withdrawal requests that overdraw your account. However, the fact that we may honor withdrawal requests that overdraw the account balance does not obligate us to do so later. So you can NOT rely on us to pay overdrafts on your account regardless of how frequently or under what circumstances we have paid overdrafts on your account in the past. We can change o ur practice of paying overdrafts on your account without notice to you. You can ask us if we have other account services that might be available to you where we commit to paying overdrafts under certain circumstances, such as an overdraft protection line -of-credit or a plan to sweep funds from another account you have with us. You agree that we may charge fees for overdrafts. For consumer accounts, we will not charge fees for overdrafts caused by ATM wit hdrawals or one-time debit card transactions if you have not opted-in to that service. We may use subsequent deposits, including direct deposits of social security or other government benefits, to cover such overdrafts and overdraft fees. Overdraft Protection Plans - Upon our receipt of the applicable Bank form, your checking account can be linked to one of the following: a checking account, savings account, money market account, Business Reserve Line (BRL), or a line of credit with us, (each a “linked account”) for the purpose of coveri ng overdrafts that may occur on your checking account. If on any day your checking account does not have sufficient funds to cover items that are presented for payment, funds will be automatically transferred from the linked account to cover the overdraft. Funds will be transferred even if there a re insufficient funds in the linked account to cover the amount of the overdraft in your checking account. A fee will be assessed for each automatic transfer to cover an overdraft in your checking account. Such fees shall be assesse d to the covered checking account. Funds will be transferred from the linked account to the checking account and fees assessed regardless of the nature of the d ebit that created the overdraft in the checking account. Such debits may include checks, wire transfers, ACH withdrawals, debit card charges, and ATM withdrawals. Overdraft protection shall not limit right of setoff or recoupment. CUSTOMER’S DEATH OR INCOMPETENCE - You agree to notify us promptly if any person with a right to withdraw funds from your account(s) dies or becomes legally incompetent. We may continue to honor your checks, items, and instructions until: (a) we know of your death o r incompetence, and (b) we have had a reasonable opportunity to act on that knowledge. You agree that we may pay checks drawn on or before the date of death or legal incompetence for up to ten (10) days after we become aware of your death or legal incompetence unless ordered to stop payment by someone c laiming an interest in the account. SECURITY - It is your responsibility to protect the account numbers and electronic access devices (e.g., an ATM card) we provide you for your account(s). Do not discuss, compare, or share information about your account number(s) with anyone unless you are willing to give them fu ll use of your money. An account number can be used by thieves to encode your number on a false demand draft which looks like and functions like an au thorized check. If you furnish your access device and grant actual authority to make transfers to another person (a family member or coworker, for example) who then exceeds that authority, you are liable for the transfers unless we have been notified that transfers by that person are no longer authoriz ed. Your account number can also be used to electronically remove money from your account. If you provide your account number in response to a telephone solicitation for the purpose of making a transfer (to purchase a service or merchandise, for example), payment can be made fr om your account even though you did not contact us directly and order the payment. You must also take precaution in safeguarding your blank checks. Notify us at once if you believe your checks have been lost or stolen. As between you and us, if you are negligent in safeguarding your checks, you must bear the loss entirely yourself or share the loss with us (we may have to share some of the loss if we failed to use ordinary care and if we substantially contributed to the loss). You agree that if we offer you services appropriate for your account to help identify and limit fraud or other unauthorized transactions against your account, such as positive pay or commercially reasonable security procedures, and you reject those services, you will be responsible f or any fraudulent or unauthorized transactions which could have been prevented by the services we offered, unless we acted in bad faith or to the extent our negligence contributed to the loss. Should you experience fraudulent activity on your account we may require you to close that account and reopen a new ac count. You also agree to file a police report concerning any fraudulent activity. CLAIM OF LOSS - If you claim a credit or refund because of a forgery, alteration, or any other unauthorized withdrawal, you agree to cooperat e with us in the investigation of the loss, including giving us an affidavit containing whatever reasonable information we require concerning your account, the transaction, and the circumstances surrounding the loss. You will notify law enforcement authorities of any criminal act related to the claim of lost, missing, or stolen checks or unauthorized withdrawals. We will have a reasonable period of time to investigate the facts and circumstances surrounding any claim of loss. Unless we have acted in bad faith, we will not be liable for special or consequential damages, including loss of profits or opportunity, or for attorneys’ fees incurred by you. You agree that you will not waive any rights you have to recover your loss against anyone who is obligated to repay, insure, or otherwise reimburse you for your loss. You will pursue your rights or, at our option, assign them to us so that we may pursue them. Our liability will be reduced by the amount you recover or are entitled to recover from these other sources. ENDORSEMENTS - We may accept for deposit any item payable to you or your order, even if they are not endorsed by you. We may give cash back to any one of you. We may supply any missing endorsement(s) for any item we accept for deposit or collection, and you warrant that a ll endorsements are genuine. To ensure that your check is processed without delay, you must endorse it (sign it on the back) in a specific area. Your enti re endorsement (whether a signature or a stamp) along with any other endorsement information (e.g. additional endor sements, ID information, driver’s license number, etc.) must fall within 11/2” of the “trailing edge” of a check. As you look at the front of a check, the “trailing edge” is the left edge. When you flip the check over, be sure to keep all endorsement information within 11/2” of that edge. 6 It is important that you confine the endorsement information to this area since the remaining blank space will be used by others in the processing of the check to place additional needed endorsements and information. You agree that you will indemnify, defend, and hold us harmless for any loss, liability, damage or expense that occurs because your endorsement, a prior endorsement or information you have prin ted on the back of the check obscures our endorsement. These endorsement guidelines apply to both personal and business checks. MONITORING AND RECORDING TELEPHONE CALLS - We may monitor or record phone calls for security reasons and to ensure that you receive courteous and efficient service. You consent in advance to any such recording. We need not remind you of our recording before each phone conversation. TELEPHONIC INSTRUCTIONS - Unless we have agreed otherwise in writing, we are not required to act upon instructions you give us via facsimile transmission or leave by voice mail or on a telephone answering machine. DIRECT DEPOSITS - If we are required for any reason to reimburse the federal government for all or any portion of a benefit payment that was di rectly deposited into your account, you authorize us to deduct the amount of our liability to the federal government from the accoun t or from any other account you have with us, without prior notice and at any time, except as prohibited by law. We may also use any other legal remedy to recover the amount of our liability. EARLY WITHDRAWAL PENALTIES (and involuntary withdrawals) - We may impose early withdrawal penalties on a withdrawal from a time account even if you don’t initiate the withdrawal. For instance, the early withdrawal penalty may be imposed if the withdrawal is caused by our setoff against funds in the account or as a result of an attachment or other legal process. We may close your account and impose the early withdrawal pen alty on the entire account balance in the event of a partial early withdrawal. See your notice of penalty for early withdrawals for additional informati on. ADDRESS OR NAME CHANGES - You are responsible for notifying us of any change in your address or your name. Unless we agree otherwise, change of address or name must be made in writing by at least one of the account holders. Informing us of your address or name change o n a check reorder form is not sufficient. We will attempt to communicate with you only by use of the most recent address you have provided to us. If provided elsewhere, we may impose a service fee if we attempt to locate you. DEPOSITS - We will give only provisional credit until collection is final for any items, other than cash, we accept for deposit (includi ng items drawn “on us”). Before settlement of any item becomes final, we act only as your agent, regardless of the form of endorsement or lack of endo rsement on the item and even though we provide you provisional credit for the item. We may reverse any provisional credit for items that are lost, stolen, or returned. Actual credit for deposits of, or payable in, foreign currency will be at the exchange rate in effect on final collection in U.S. dollars. We a re not responsible for transactions by mail or outside depository until we actually record them. We will treat and record all transactions received after our “daily cutoff time ” on a business day we are open, or received on a day we are not open for business, as if initiated on the next business day that we are open. At our option, we may take an item for collection rather than for deposit. If we accept a third-party check for deposit, we may require any third-party endorsers to verify or guarantee their endorsements, or endorse in our presence. FOREIGN TRANSACTIONS - Transactions must be in U.S. Dollars. If you use an automated teller machine (ATM) or conduct a point -of-sale (POS) transaction or electronic funds transfer in a foreign country, or write a check in a foreign currency, and we choose at our o ption to process the transaction, we will charge the item against your account at the foreign exchange rate imposed on us when we receive the item. It you receive a credit or deposit a check or electronic fund transfer to your account in foreign currency, we may at our option, reject, accept, or accept on a collection basis, and if accepted, credit your account at the foreign currency exchange rate imposed on us on the day of the credit or deposit. This exchange rate may be di fferent from the exchange rate in effect on the day you made or accepted the debit, credit, or check transaction and a transaction fee may be charged. If any d ebit or credit is reversed for any reason, we will reverse the transaction at the foreign exchange rate imposed on us on the date o f the reversal. Visa Debit Card transactions made in currencies other than U.S. Dollars will be converted to U.S. Dollars under Visa® regulations. This International Service Asse ssment (ISA) fee will appear as a separate transaction on your monthly deposit account statement. BACKUP WITHHOLDING/TIN CERTIFICATION - Federal tax law requires us to report interest payments we make to you of $10 or more in a year, and to include your taxpayer identification number (TIN) on the report (the taxpayer identification number is your social security numbe r if you are an individual). Interest includes dividends, interest and bonus payments for purposes of this rule. Therefore, we require you to provide us with your TIN and to certify that it is correct. In some circumstances, federal law requires us to withhold and pay to the IRS a percentage of the interest that i s earned on funds in your accounts. This is known as backup withholding. We will not have to withhold interest payments when you open your account if you certify your TIN and certify that you are not subject to backup withholding due to underreporting of interest. (There are special rules if you do not have a TIN but have applied for one, if you are a foreign person, or if you are exempt from the reporting requirements.) We may subsequently be required to begin bac kup withholding if the IRS informs us that you supplied an incorrect TIN or that you underreported your interest income. CHECKING ACCOUNTS CHECKING ACCOUNTS - Your interest bearing checking account may consist of a master account with two sub-accounts. This in an internal accounting procedure related to the regulatory reserve calculation and will not affect the availability of funds, interest rate, or the fee structure of your account. STOP PAYMENT REQUESTS - You may request that we stop payment on a check, draft, or similar paper instrument drawn against your account. We will charge your account a stop payment fee, as reflected in the Services & Fees Schedule, which is in effect at the time the request is made. We may accept your request by oral, written, or electronic means. When using electronic (online) means to perform stop payment requests, it is your responsibility to verify that the item has not already been paid before the stop payment request is made. If the stop payment request was taken verbal ly you may be required to 7 confirm the request in writing within 14 days of the original request. If this is a joint ac count, we will accept a stop payment request from any joint owner regardless of who signed the check. You must allow us a reasonable opportunity to act on a stop payment request before we take any other action on the instrument . Any stop order must include your account number, the number and date of the check, the name of the payee, and the exact amount. All information you give us must be correct and accurate. You will receive a notice on your account asking you to verify the accuracy of this stop payment information. If we do not hear from you, we assume the information is correct and we will keep the stop payment in effect for six months. We will not be responsible if the paym ent cannot be stopped because information on the form is not correct and you fail to notify us or fail to give any other reasonable information regarding the item. Requests to remove a stop payment from your account must be confirmed in writing. You acknowledge that you have no right to stop payment on a cashier's check, official check, teller's check or other check that is not drawn on your account. PAYMENT ORDER OF ITEMS- The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. The payment order can affect the number of items overdrawn or returned unpaid and the amount of the fees you may have to pay. To assist you in managing your account, we are providing you with the following information regarding how we process those items. Our policy is to process withdrawals first - according to the dollar amount with the smallest items being processed first for the day on which they are processed. We process POS transactions second - according to the dollar amount with the smallest items being processed first for the day on which they are processed. We process ATM transactions third - according to the dollar amount with the smallest items being processed first for the day on which they are processed. We process online transfer withdrawals fourth - according to the dollar amount with the smallest items being processed first for the day on which they are processed. We process checks you have written fifth - according to the serial number order for the day on which they are processed. We process ACH transactions sixth - according to the dollar amount with the smallest items being processed first for the day on which they are processed. If a check, item or transaction (other than an ATM or everyday debit card transaction) is presented without sufficient funds in your account to pay it, we may, at our discretion, pay the item (creating an overdraft) or return the item for insufficient funds (NSF). The amounts of the o verdraft and NSF fees are disclosed elsewhere, as are your rights to opt in to overdraft services for ATM and everyday debit card transactions, if applicable. We encourage you to make careful records and practice good account management. This will help you to avoid creating items without sufficient funds and potenti ally incurring the resulting fees. CHECK PROCESSING - We process items mechanically by relying solely on the information encoded in magnetic ink along the bottom of the items. Thi s means that we do not individually examine all of your items to determine if the item is properly completed, signed and endo rsed or to determine if it contains any information other than what is encoded in magnetic ink. You agree that we have not failed to exercise ordinary care solel y because we use our automated system to process items and do not inspect all items processed i n such a manner. Using an automated process helps us keep costs down for you and all account holders. RESTRICTIVE LEGENDS - The automated processing of the large volume of checks we receive prevents us from inspecting or looking for special instructions or “restrictive legends” on every check. Examples of restrictive legends placed on checks are “must be presented within 90 days” or “not valid for more than $1,000.00.” For this reason, we are not required to honor any restrictive legend placed on checks you write unless we have agreed in writing to the restriction. We are not responsible for any losses, claims, damages, or expenses that result from your placement of these or other special instructions on your checks. RE-PRESENTED CHECKS - If a merchant or payee electronically re-presents a paper check that was returned because you did not have enough money in your account, the transaction is not covered by the Electronic Funds Transfer Act. Checks that are re-presented will not be included with your statement. A merchant may electronically collect a fee associated with a re-presented check. If collected from a consumer account, the fee is covered by the Electronic Funds Transfer Act and subject to the Electronic Funds Transfer Agreement and Disclosure below. The fee will appear on your statement. REMOTELY CREATED CHECKS - Like any standard check or draft, a remotely created check (sometimes called a telecheck, preauthorized draft or demand draft) is a check or draft that can be used to withdraw money from an account. Unlike a typical check or draft, however, a remotely created check is not issued by the paying bank and does not contain the signature of the account owner (or a signature purported to be the signatu re of the account owner). In place of a signature, the check usually has a statement that the owner authorized the check or has the owner’s name typed or printed on the signatu re line. For example, if a person provides an account number in response to a telephone solicitation, the telephone solicitor can use the account number to issue a remotely created check to withdraw money from that account. You warrant and agree to the following for every remotely created check we receive from you for deposit or collection: (1) yo u have received express and verifiable authorization to create the check in the amount and to the payee that appears on the check; (2) you will maintain proof of the authorization for at least 2 years from the date of the authorization, and supply us the proof if we ask; and (3) if a check is returned you owe us the amount of the check, regardless of when the check is returned. We may take funds from your account to pay the amount you owe us, and if there are insufficient funds in your account, you still owe us the remaining balance. STALE-DATED CHECKS - We are not obligated to, but may at our option, pay a check, other than a certified check, presented for payment more than si x months after its date. If you do not want us to pay a stale-dated check, you must place a stop-payment order on the check in the manner we have described elsewhere. ELECTRONIC CHECK CONVERSION - You may authorize a merchant or other payee to make a one time electronic payment from your checking account using information from your check to pay for purchases or pay bills. This applies whether the check is blank, partially completed, or fully completed and signed, whether it is presented at the point-of-sale or mailed to a merchant or lockbox and later converted to an EFT, or whether it is retained by you or the merchant or payee. This is called an electronic check conversion. We have the right to convert an item into an electronic image and if we receive an image instead of the item, you may request a copy of the image. OWNERSHIP TYPES OWNERSHIP OF ACCOUNT AND BENEFICIARY DESIGNATION - These rules apply to this account depending on the form of ownership and beneficiary designation, if any, specified on the account records. We reserve the right to refuse some forms of ownership on any or all o f our accounts. We make no representations as to the appropriateness or effect of the ownership and beneficiary designations, except as they determine to who m we pay the account funds. CORPORATIONS, PARTNERSHIPS, SOLE PROPRIETORSHIPS, LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, FIDUCIARY OR UNINCORPORATED ASSOCIATION ACCOUNTS - In addition to this Agreement, each account of a corporation, partnership, sole proprietorship, limited liability company, limited liability partnership, fiduciary, unincorporated association or other organization will be governed by separate resolutions, documents and agreements with us. If this is a partnership or limited liability partnership or voluntary association account, any one o r more of the partners or members named on this account has full authority to act for the partnership or association, and for every partner or member in all partnership and association transactions. The signature of any one partner or member will bind the partnership or association and all other partners or m embers whether or not named on this account. We will not be liable for payment made or other actions taken in reliance on the orders or instructions of any partner or member. Every partner or member named represents to us that the partnership or association exists and that each partner or member is authorized to transact any business relating to this account. The partnership or association will provide any supporting documentation which we may request. FIDUCIARY ACCOUNTS - Accounts may be opened by a person acting in a fiduciary capacity. A fiduciary is someone who is appointed to act on behalf of and for the benefit of another. This account may be opened and maintained by a person or persons named as a trustee under a written trust agreement, or as executors, administrators, or conservators under court orders. You understand that by merely opening such an account, we are not acting in the capacity of a trustee in connection with the trust nor do we undertake any obligation to monitor or enforce the terms of the trust or letters. NON-PROBATE ASSETS - For Washington accounts, upon the death of a depositor, a surviving depositor's or beneficiary's rights to receive payment under the terms of a Joint Account With Right of Survivorship or a Trust or P. O. D. account may in some cases be superseded by the terms of a depositor's will where the will is made after the date the account is opened and the Bank receives proper notice of a claim to the account. No tice must be timely so as to afford us a reasonable opportunity to act, but in no event will less than 5 days’ notice be sufficient. In the absence of proper and timely notice, the terms of the Joint Account With Right of Survivorship, Trust or P. O. D. account will govern. 8 SUBSTITUTE CHECKS AND YOUR RIGHTS As our customer we think it’s important for you to know about substitute checks. The following Substitute Check Disclosure provides informa tion about substitute checks and your rights. What is a substitute check? To make check processing faster, federal law permits banks to replace original checks with “substitute checks.” These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of a substitute check states: “Th is is a legal copy of your check. You can use it the same way you would use the original check.” You may use a substitute check as proof of payment just like the o riginal check. Some or all of the checks that you receive back from us may be substitute checks. This notice d escribes rights you have when you receive substitute checks from us. The rights in this notice do not apply to original checks or to electronic debits to your account. However, you have rights under other law with respect to those transactions. What are my rights regarding substitute checks? In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a sub stitute check is posted to your account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawn from yo ur account and fees that were charged as a result of the withdrawal (for example, bounced check fees). The amount of your refund under this procedure is limited to the amount of your loss or the amount of the substitute check, whichever is less. You also are entitled to interest on the amount of your refund if your account is an interest-bearing account. If your loss exceeds the amount of the substitute check, you may be able to recover additional amounts under other law. If you use this procedure, you may receive up to $2,500 of your refund (plus i nterest if your account earns interest) within 10 business days after we received your claim and the remainder of your refund (plus interest if your account earns interest) not later than 45 calenda r days after we received your claim. We may reverse the refund (including any interest on the refund) if we later are able to demonstrate that the substitute check was correctly poste d to your account. How do I make a claim for a refund? If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your account, please contact us at: Columbia Bank PO Box 2056 Tacoma, WA 98401-2056 1-800-305-1905 You must contact us within 40 calendar days of the date that we mailed (or otherwise delivered by a means to whic h you agreed) the substitute check in question or the account statement showing that the substitute check was posted to your account, whichever is later. We will e xtend this time period if you were not able to make a timely claim because of extraordinary circumstances. Your claim must include — • A description of why you have suffered a loss (for example, you think the amount withdrawn was incorrect); • An estimate of the amount of your loss; • An explanation of why the substitute check you received is insufficient to confirm that you suffered a loss; and • A copy of the substitute check or the following information to help us identify the substitute check: the check number, the a mount of the check, and the name of the person to whom you wrote the check. SERVICES WIRE TRANSFERS AND ACH PAYMENTS - Wire transfers are subject to the Wire Transfer Terms and Conditions, as amended from time to time. A copy of the Wire Transfer Terms and Conditions is available at any branch. We have no obligation to accept incoming funds transfers for your benefit. All credi ts to your account(s) for a funds transfer are provisional until we receive final payment for the amount of the transfer. If we do not receive final payment, you agree to refund to us the amount of the transfer. We will not provide you with a separate notice each time we receive a wire transf er to your account. If we accept a payment through an automated clearing house (ACH), the operating rules of the National Automated Clearing House Association will apply, and we will not give you notice of the payment. Instead, incoming wires and ACH payments will be reflected on your periodic statement. If you request paper, fax or email advice for wire transfers, and we agree separately in writing to comply with such request, you agree to exercise care in maintaining y our own security in the receipt of advice of wire transfers. You acknowledge that you alone assume full responsibility for maintena nce of your internal security procedures to keep your information confidential. You agree that we will not be required to provide any other notice to you. NIGHT DEPOSITORY - You assume any and all risk arising out of the use of any night depository facilit y. You agree that we are not responsible for any loss or damage that results from a mechanical defect, act of God, or malfunction with respect to the facility itself, lock bag or any other receptacle used by you, unless such damage or loss is caused by our gross negligence or deliberate malfeasance. You further agree that we will not be responsible for any loss or personal or pecuniary injury occasioned by the use of the night deposit facility resulting from unlawful acts of other person s, including, but not limited to assault, theft, vandalism, or malicious mischief. TELEPHONE TRANSFERS - A telephone transfer of funds from this account to another account with us, if otherwise arranged for or permitted, may be made by the same persons and under the same conditions generally applicable to withdrawals made in writing. Unless a different limitation is disclosed in writing, we restrict the number of transfers from a savings account to another account or to third parties, to a maximum of six per mo nth (less the number of “preauthorized transfers” during the month). Other account transfer restrictions may be described elsewhere. CHECK CASHING - We may charge a fee for anyone that does not have an account with us who is cashing a check, draft or other instrument writ ten on your account. We may also require reasonable identification to cash such a check, draft or other instrument. We can decide what id entification is reasonable under the circumstances and such identification may be documentary or physical and may include collecting a thumbprint or fingerprint. SAVINGS AND MONEY MARKET ACCOUNTS TRANSFER LIMITATIONS - For savings and money market accounts you may make up to six transfers or withdrawals by means of a preauthorized, automatic, or telephonic transfer to another account of yours or to a third party or by check, debit card, or similar order to a third party during any calendar month (or statement cycle of at least four weeks). A preauthorized transfer includes any arrangement with us to pay a third p arty from your account at (i) a predetermined time; (ii) on a fixed schedule or (iii) upon oral or written orders including orders received through the autom ated clearing house (ACH). If the transfer or withdrawal is initiated in person, by mail, or at an ATM then there is no limit on the number of payments that may be made directly to you, directly to us for amounts you owe us, or transfers to other accounts you have with us. Withdrawals by phone are also unlimited if you are requesting that a check be mailed to you. More than 6 withdrawals per calendar month would be considered a violation of law and this agreement. Violations of this natu re may result in us closing your account. WAIVERS - Even if we honor a nonconforming request, we are not required to do so later. We may treat continued abuse of the stated limitations (if any) as your act of closing the account, or we may at our option reclassify your account as a transaction account. If we reclassify y our account, your account will be subject to the fees and earnings rules of the new account classification. 9 ATM/DEBIT CARD TERMINATION - We reserve the right to terminate your use of your Cash Card or VISA® Debit Card with or without cause. We may immediately do so if (a) you or any authorized user of the card breaches this or any other agreement with us, (b) we have reason to believe that someone has transferred or may transfer money from your accounts(s) without your permission, or (c) you or any authorized user of your card or account(s), w hich may be accessed by your card, requests that we do so. If you ask us to terminate or suspend your account(s) or card(s), you will remain liable for su bsequent Electronic Funds Transfer (EFT) transactions performed by you or any authorized user. OTHER AGREEMENTS - Your use of your Cash Card, VISA® Debit Card, or Online Banking may be subject to the terms of one or more separate agreements, which are incorporated into this Agreement. All terms, conditions and agreements which govern your account (inclu ding those appearing in this Agreement, on the signature card or any other rules and regulations or agreements) also apply to any electronic transactions including the use of your Cash Card, VISA® Debit Card, or Online Banking except where this Agreement provides differently. SECURITY - You agree not to disclose or otherwise make your Cash Card or VISA® Debit Card, or PIN or any other access device available t o anyone without our prior written consent. Do not write your PIN on your card or keep in the same location as your card. You a gree that to the extent allowed by applicable law, you will be liable for all transactions conducted using your card or PIN. INACTIVE OR ABANDONED DEPOSIT ACCOUNTS INACTIVE ACCOUNT CHARGES - To the extent allowed by law and after any required notice to you, we may impose a reasonable monthly service charge, as reflected in the Services & Fees Schedule, for all inactive checking, money market, and savings accounts. Checking, money market, and savings accounts are considered inactive after 15 months, unless you have increased or decreased the amount on deposit, exclusive of interest, fees or other adjustments by us. We may impose an inactive service charge or terminate Online Banking access on inactive Online Banking accounts. Online Banki ng accounts are considered inactive if you have not logged in for at least six months. ABANDONED CHECKING AND SAVINGS ACCOUNTS - Your checking and savings accounts, including a money market account, will be presumed abandoned after 3 years of inactivity unless you have: • Increased or decreased the amount on deposit, exclusive of interest, fees or other adjustments by us, or • Communicated with us in writing concerning the deposit account, or • Met other requirements imposed by state law. ABANDONED TIME DEPOSIT ACCOUNTS - If you have a matured time deposit account with us, it will be presumed abandoned 3 years after the maturity date unless you have: • Increased or decreased the amount on deposit, exclusive of interest, fees or other adjustments by us, or • Communicated with us in writing concerning the deposit account, or • Met other requirements imposed by state law. If your time deposit account is automatically renewable, the above 3 year time period will begin to run at the expiration of the initial maturity period. If your automatically renewable time deposit has an initial maturity period less than 1 year, the above time periods begins to run 1 year after the date of the original deposit. PAYMENT OF INTEREST WILL CEASE - At the time your interest earning deposit account is considered abandoned, it will no longer earn interest. BALANCE FORWARDED TO THE STATE - If your deposit account is presumed abandoned, the balance will be forwarded to the state as “abandoned” under state law. Thereafter, you may recover the money by making a claim directly to the state. FUNDS AVAILABILITY POLICY This policy statement applies to “transaction” accounts. Transaction accounts, in general, are accounts which permit an unlimited number of payments to third persons and an unlimited number of telephone and preauthorized transfers to other accounts of yours with us. Checking a ccounts are the most common transaction accounts. Feel free to ask us whether any of your other accounts might also be under this policy. Our policy is to make funds from your cash and check deposits available to you on the first business day after the day we rec eive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once the funds are available, you can withdraw them in cash and we will use the funds to pay checks that you have written. Please remember that even after we have made funds available to you, and you have withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit. For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, and federal holida ys. If you make a deposit before closing on a business day that we are open, we will consider that day to be the day of your deposit. However, if you m ake a deposit after closing or on a day we are not open, we will consider that the deposit was made on the next business day we are open. If you make a deposit at an ATM before 2:00 P.M. unless otherwise posted on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit at an ATM after 2:00 P.M. unless otherwise posted or on a day we are not open, we will consider that the deposit was made on the next business day we are open. If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it. If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in th e other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited. LONGER DELAYS MAY APPLY Funds you deposit by check may be delayed for a longer period under the following circumstances: We believe a check you deposit will not be paid. You deposit checks totaling more than $5,000 on any one day. You redeposit a check that has been returned unpaid. You have overdrawn your account repeatedly in the last six months. There is an emergency, such as failure of computer or communications equipment. We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the seventh business day after the day of your deposit. SPECIAL RULES FOR NEW ACCOUNTS If you are a new customer, the following special rules will apply during the first 30 days your account is open. Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,000 of a day’s total deposits of cashier’s, certified, teller’s, traveler’s, and federa l, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable t o you (and you may have to use a special deposit slip). The excess over $5,000 will be available on the seventh business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,000 will not be available unti l the second business day after the day of your deposit. Funds from all other check deposits will be available on the seventh business day after the day of your deposit. EFFECTIVE DATE: 6-13-14 © 1992, 1993, 1995 Wolters Kluwer Financial Services – Bankers Systems™ Form AIB-B 8/4/95 8d Custom TC,3o 4132316-010 BANKING SERVICES PROPOSAL | 1 Banking Services Proposal February 29, 2016 Prepared for the City of Arlington By Opus Bank’s Municipality, Treasury Management & Commercial Depository Services (CDS) Divisions Corporate Office 19900 MacArthur Blvd., 12th Floor • Irvine, CA 92612 Arlington Office 3532 172nd Street NE • Arlington, WA 98223 For any questions please contact: Brittany Loyear Director, Treasury Management Officer 188 106th Ave NE • Bellevue, WA 98004 (425) 956‐1122 Debbie McLeod EVP, Head of Municipal Banking 2828 Colby Avenue • Everett, WA 98201 (425) 259‐7806 Phil Petrozzi SVP, Senior Managing Director, Commercial Depository Services – Municipal Banking 19900 MacArthur Blvd 12th Floor • Irvine, CA 92612 (949) 251‐8207 BANKING SERVICES PROPOSAL | 2 Table of Contents COVER LETTER / ABOUT OPUS BANK .................................................................................................... 3 BANKING AND STAFF PROFILE ...............................................................................................................6 REFERENCES ...........................................................................................................................................8 COMMUNITY REINVESTMENT ................................................................................................................9 ONLINE BANKING OVERVIEW ............................................................................................................... 12 ACH SERVICES ........................................................................................................................................15 POSITIVE PAY .........................................................................................................................................19 PURCHASE CARD PROGRAM.................................................................................................................. 22 ADJUSTMENTS / RETURNED ITEM HANDLING / SECURITY MEASURES………………………………….…..…….…26 SERVICE ENHANCEMENTS.. ....................................................................................................................29 DISASTER RECOVERY / IMMLEMENTATION PLAN ................................................................................ 31 SCOPE OF SERVICES (RESPONSES)………………………………………………………………………………………….…………..33 COMPLETED BID SHEET…………………………………………………………………………………………………………….…………39 SIDE BY SIDE COST COMPARISON…………………………………………………………………………………………….…………42 FORMULAS……………………………………………………………………………………………………………………………….………..43 BANKING SERVICES PROPOSAL | 3 February, 29 2016 Kristin Garcia Finance Director City of Arlington ‐ Finance Department 238 N Olympic Avenue Arlington, WA 98223 Re: Banking Services Proposal Dear Kristin, Opus Bank is pleased to submit the attached proposal to the City of Arlington for its banking services. As requested, our proposal contains the following: i. Responses to Banking Services Questions / Statements ii. Responses to Scope of Services Statements iii. Statement of financial institution qualifications iv. Non‐Collusion Affidavit Certificate v. A detailed schedule of costs by specific task We are grateful for the opportunity to be considered for the banking relationship with the City of Arlington. Upon acceptance of our proposal, I will work as the City’s primary banker, in partnership with a team of dedicated banking specialists that includes; Commercial Depository Services (CDS), Treasury Management Client Fulfillment Services (CFS), and the Smokey Point Client Experience Center (CEC). These teams are focused not only on a seamless onboarding, but on the continued enhancement of the services and client support proposed by Opus Bank. As one of the best‐capitalized banks in the Western region*, Opus Bank is focused on helping restore the economic vibrancy of every community where we operate by getting capital into the hands of successful entrepreneurs and business leaders who have rounded the economic corner and now need a partner for growth. Opus Bank has helped fund nearly $1 billion dollars in multi‐family housing as well as provided financial services to small and mid‐sized businesses, entrepreneurs, real estate investors, professionals, and families throughout our communities. Our mission is not to be big — but rather, to have an Opus Bank in many communities throughout the Western Region — serving the unique needs of each community as if it were our only community. At Opus Bank, we also feel a responsibility to give back to the communities where we live and work. We are committed to make a social and economic difference in the Western region. Our mission is to improve the quality of life of individuals and families living in or around Opus Bank’s service areas, particularly for the least advantaged, by providing financial support to nonprofit organizations that make a positive and meaningful impact in the community. Opus Bank strives to maintain an exceptional client experience, and again, is grateful for the opportunity to provide a banking services proposal to the City of Arlington. If you have any questions, please do not hesitate to contact me directly, at 425‐956‐1122. BANKING SERVICES PROPOSAL | 4 * Opus Bank has a 9.59% Tier 1 Leverage Ratio as of 12/31/2015 THE INFORMATION CONTAINED IN THIS PROPOSAL IS CONFIDENTIAL AND IS INTENDED SOLELY FOR THE USE OF THE CITY OF ARLINGTON AND ITS EMPLOYEES. THIS INFORMATION MAY NOT BE DISCLOSED OUTSIDE OF THE CITY OF ARLINGTON AND SHALL NOT BE DUPLICATED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. Opus Bank appreciates the opportunity to share our vision with the City of Arlington and we are confident we will exceed your expectations. Sincerely, X__________________________________ Brittany Loyear Director, Treasury Management Officer Opus Bank X___________________________________ X_____________________________ Phil Petrozzi Debbie McLeod SVP, Senior Managing Director EVP, Head of Municipal Banking Commercial Depository Services ‐ Municipal Banking Opus Bank BANKING SERVICES PROPOSAL | 5 About Opus Bank Opus Bank is an FDIC insured California‐chartered commercial bank with $6.6 billion of total assets, $5.5 billion of total loans, and $5.3 billion in total deposits as of December 31, 2015. Opus Bank is also authorized to do business in Washington as a result of its merger and acquisition of Cascade Bank on June 30, 2011 (documentation via the WA state banking authorities can be provided upon request). Opus Bank provides high‐value, relationship‐based banking products, services, and solutions to its clients through its Retail Bank, Commercial Bank, Merchant Bank, and Correspondent Bank. Opus Bank offers a suite of treasury and cash management and depository solutions and a wide range of loan products, including commercial business, healthcare, technology, multifamily residential, commercial real estate, and structured finance, and is an SBA preferred lender. Opus Bank offers commercial escrow services and facilitates 1031 exchange transactions through its Escrow and Exchange divisions. Opus Bank provides clients with financial and advisory services related to raising equity capital, targeted acquisition and divestiture strategies, general mergers and acquisitions, debt and equity financing, balance sheet restructuring, valuation, strategy, and performance improvement through its broker‐ dealer subsidiary, Opus Financial Partners. Opus Bank is an Equal Housing Lender. Opus Bank operates 58 client experience centers, including 22 in the Seattle/Puget Sound region in Washington and one in Portland Oregon, 33 in California and two in the Phoenix metropolitan area of Arizona. Financial Highlights Opus Bank is a public company (NASDAQ: “OPB”) Opus Bank capital ratios continue to be strong and well in excess of bank regulatory requirements Beginning in the first quarter of 2015, we calculated our capital ratios under the FDIC Regulatory Capital Interim Final Rule (Basel III). As of December 31st, 2015, our Tier 1 leverage ratio was 9.59% and total risk‐based capital ratio was 12.22% A focus on Municipalities Opus Bank sees the value in developing long term banking relationships with municipalities, and our public deposits have continued to grow as a result. In the State of Washington, Opus Bank currently holds depository relationships with 28 public entities. The below link to the Public Deposit Protection Commission for Washington Public Depositories is for your reference. http://www.tre.wa.gov/documents/pdpc_banklisting.pdf Opus Bank is a full service Financial Institution approved as a public depository by the WA State Public Depository Commission. The below link to the current list of financial institutions approved to accept public deposits is for your reference. http://www.tre.wa.gov/documents/pdpc/publicDepositoriesBanks‐Thrifts.shtml BANKING SERVICES PROPOSAL | 6 Responses to Banking Services Questions / Statements 1. Provide the names of individuals, with phone numbers and e‐mail addresses, who will be working on the proposed services and their areas of responsibility including their specific experience relative to the request for proposal requirements. Primary Relationship Manager & Treasury Management Officer Brittany Loyear, Director Direct: (425) 956‐1122 | email: bloyear@opusbank.com PNW Director of Retail Strategies & Head of Municipal Banking Debbie McLeod, EVP Direct: (425) 259‐7806 | email: dmcleod@opusbank.com Senior Managing Director Fiduciary Banking Phil Petrozzi, SVP Direct: (949) 251‐8207 | email ppetrozzi@opusbank.com Brittany Loyear has 5+ years of experience in the field of Treasury Advisory Services, and Client Support. Using the Cash Management expertise she’s developed over her banking career, some of which has been spent partnering with Government entities specifically, Ms. Loyear is dedicated to providing Opus Bank’s valued customers with efficiency creating and innovative Treasury Management solutions, allowing a greater amount of their time to be spent in more pertinent areas. She takes pride in her partnership with the Treasury Management Client Support & Commercial Depository Services teams to ensure seamless onboarding’s, as well as in the ongoing client relationships she fosters through regular relationship reviews. Debbie McLeod is Executive Vice President, Retail Banking, Pacific Northwest Region. She has 27 years in the banking industry and joined Opus Bank through the acquisition of Cascade Bank in 2011. At Cascade Bank Ms. McLeod served as an Executive Vice President for over 10 years where she was responsible for the bank’s branches including the government banking division. Ms. McLeod is Opus Bank’s senior executive representative in Washington where she leads the bank’s retail team efforts in developing meaningful and mutually beneficial client relationships. She earned her Bachelor’s degree from Pacific Lutheran University and is a graduate of Pacific Coast Banking School. Ms. McLeod resides in Kirkland. Phil Petrozzi leads Opus Bank’s Commercial Depository Services (CDS) ‐ as Senior Vice President, Senior Managing Director. Phil is responsible for the development and management of industry‐specific deposits, municipal deposits, payment processing, fraud prevention, and other services for the bank’s clients. The Commercial Depository Services Division at Opus Bank serves municipalities, escrow and title companies, 1031 exchange accommodators, property and community management firms, homeowners associations, retention escrow, and other companies acting as fiduciaries. Throughout his 33‐year banking career, Phil has developed a wide range of competitive and successful revenue‐generating products and services, focusing on the client relationship and experience, while simplifying delivery. BANKING SERVICES PROPOSAL | 7 Treasury Management Sales Associate & Implementation Coordinator Julio Mejia Direct: (425) 956‐1119 | email: jmejia@opusbank.com Julio Mejia has 4+ years in the banking industry, with the majority of that time spent in the realm of Treasury Management client support & Implementation. Throughout that time, Mr. Mejia has continued to pride himself on the customized implementation strategies he builds in partnership with each of our new clients, and the ongoing support of those clients as well. Commercial Depository Services (CDS) Direct: (877) 774‐4722 Email: CDS@opusbank.com Hours of operation: M‐F 7:00am ‐ 6:00pm PST Lead by Desiree Alonso, VP & Operations Manager, the Commercial Depository Services (CDS) team is committed in working to exceed the client banking relationship experience. CDS is your dedicated resource for day to day banking needs, including (but not limited to) the following: Research Items Adjustments and Errors Order Cashier’s Checks Order Bank Supplies – Checks, Deposit Tickets, Endorsement Stamps, etc. Update (Add or Delete) authorized signers ‐ Signature Cards Update TM product Users (Add or Delete) New Account Opening Treasury Management Client Support Direct: (855) 860‐5952 Email: TMClientSupport@opusbank.com Hours of operation: M‐F 7:00am ‐ 6:00pm PST Lead by Jaime Sibrian, VP and Manager, the Treasury Management Client Service and Fulfillment department is a team of seven (7), dedicated to servicing clients with Treasury Management Services such as Business Online Banking, Remote Deposit Capture, ACH Origination, Positive Pay and more. In addition to day‐to‐day servicing, the Client Fulfillment team works directly with Opus Bank clientele providing training and product implementation. In our efforts to be the Best in Customer Service and Customer Satisfaction we maintain a group of dedicated Treasury Management Client Fulfillment and Servicing Analysts (CFSA) who will address the needs of our most valued customers. A Treasury Management CSS will be assigned to your relationship and will serve as your immediate and direct point of contact for any customer service related items or inquiries with Opus Bank. We understand the importance and desire of our customers to receive solutions promptly and efficiently. This additional service was established to offer a continual and even greater level of support for you and your organization. BANKING SERVICES PROPOSAL | 8 2. Submit at least three (3) references (preferably from current local government customers) who can attest to the financial institution’s experience as it relates to providing banking services. The references must include contact name, title, address, e‐mail address, telephone number and services used. Entity Services used Port of Edmonds 336 Admiral Way, Edmonds, WA 98020 Tina Drennan, Finance Manager TDrennan@portofedmonds.org 425‐774‐0549 Client Since 2002 Full depository relationship; Business Online Banking; ACH Services Olympic View Water and Sewer District 8128 228th Street SW, SW Edmonds, WA 98026 Lynn Danielson, General Manager lynned@ovwater.com 425‐774‐7769 Client Since 2010 Full depository relationship; Business Online Banking; ACH Services Everett Housing Authority 3107 Colby Ave, Everett, WA 98201 Wendy Abbey, Assistant Finance Director wendya@evha.org 425‐339‐1021 New Client as of December 2015 Full depository relationship; Business Online Banking; ACH Services; Online Wires; Remote Deposit Capture; Positive Pay & Purchasing card BANKING SERVICES PROPOSAL | 9 3. Describe your institution’s community participation/reinvestment program. The Board of Directors acknowledges the Bank’s important obligation to demonstrate that it is helping to meet the financial needs, including the credit needs, of the communities in which it is license to do business. The Bank will meet this obligation through direct lending, investment and service activities, including those activities that have community development as their primary purpose. The Board of Directors, Executive Management, Officers and team members of the Bank are committed to full compliance with the Community Reinvestment Act (“CRA”) ‐ a commitment that is reflected through a strong belief that serving all segments of the Bank’s market areas, including low‐ and moderate‐income segments, is not only basic to good business practice, but also the Bank’s long term vitality. While Opus Bank is focused on supporting and rebuilding our communities by providing much needed capital funding to small and mid‐sized businesses, entrepreneurs, real estate investors, professionals, and consumers, we recognize that there are many other vital needs in our communities. Opus Community Foundation was incorporated in December 2009 and organized exclusively to support charitable causes within its market areas, which coincide with those of the Bank. The Opus Community Foundation was funded by Opus Bank on September 30, 2010 with an initial $4.3 million dollars for the purpose of reinvesting in the communities where we live and work. Charitable grants and donations provided by the Foundation are expected to stimulate economic growth, promote reinvestment and improve the quality of life for the disadvantaged. The Opus Community Foundation (OCF) is a private 501(c)(3) grant making organization. The mission of the Opus Community Foundation is to improve the quality of life of individuals and families living in or around Opus Bank’s service areas, particularly for the least advantaged, by providing financial support to nonprofit organizations that make a positive and meaningful impact in the community. The OCF targets its philanthropic efforts in the areas of affordable housing, community development, education, financial literacy, health and human services, and the arts with ambitious goals to stimulate economic change, promote reinvestment, inspire philanthropy, and strengthen the communities around us. To support the OCF, Opus Bank has also initiated the “Great Works” committee to select and coordinate local volunteer opportunities for our team members. Rolling up our collective sleeves, we organized volunteer days teaching financial education with Junior Achievement, helped build homes with Habitat for Humanity, ran a special event benefitting Providence Medical Center, and hosted backpack, food and clothing drives for Families Forward, Share Our Selves, YWCA of Snohomish County, Clothes the Deal, Dress for Success, Working Wardrobes and Volunteers of America. Through a nonprofit matching gift program, an Opus Bank team member’s charitable contributions to qualified 501(c)(3) charities will be matched by the OCF up to the amount of $250 per charity. BANKING SERVICES PROPOSAL | 10 The organizations listed below represent just a few of the 384 grants made by the OCF in Washington State since Opus Bank entered the Washington market in June of 2011: Arlington Kids’ Kloset (multiple grants) Arlington Village Community Services Arlington Cedar Park Christian School Bothell Royal Family Kids Camp Bothell North Counties Family Services Darrington American Red Cross ‐ Snohomish County Everett Big Brothers Big Sisters of Snohomish Everett Habitat for Humanity of Snohomish County Everett Volunteers of America ‐ Western WA Everett Boys & Girls Clubs of Snohomish County Everett 4. Describe your institution’s customer service philosophy and organizational structure and provide meaningful examples to illustrate. The foundation of our customer service philosophy is rooted in our focus – not on customers ‐‐ but on our clients. We pride ourselves on building relationships with our clients because we understand they seek ongoing solutions and active partners to achieve their financial goals and business objectives. The City of Arlington will be selecting a high‐touch, market‐oriented financial institution with the electronic capabilities you need and the relationship‐driven culture you want. As an Opus Bank client the City of Arlington will enjoy personalized service and unparalleled access to your banking team. Our Chairman & Chief Executive has frequently expressed that “we want to take banking back to a time when banks respected their clients – and the client respected their bank.” However, our service philosophy is best reflected by the experience of our clients, and we are proud to share several recent commendations from them: What Opus Bank Clients Are Saying… "I have never had a “personal banker” in the 20‐plus years of my business. I didn’t realize I needed one. My decision to go with Opus Bank has been the best banking decision I have made in 20 years." John J. Carsten Carsten Cleaning Everett, WA "I know they have my business and family’s best interests in mind. The Opus team has saved me hours with business tools such as remote deposit capture and electronic payroll. Opus knows me and this gives me peace of mind. I am treated as a person not an account number." Cheryl Miller Everett Therapeutic Center, LLC Everett, WA BANKING SERVICES PROPOSAL | 11 "I look forward to my banking experience every time I walk into Opus Bank. They know my name and they are ready and willing to help me in any way they can. Other banks I have used in the past don’t know me or don’t care to get to know me from any other customer. And it can make all the difference." Betty Roeder ACCEL Distribution Kirkland, WA Opus Bank appreciates the opportunity to share our vision with the City of Arlington and we are confident we will exceed your expectations. 5. Provide the following reports and information about your institution: A. Online reporting sample reports – Please see Exhibit 1 B. Monthly account analysis & bank statement – Please see Exhibit 2 C. Monthly merchant services report – Please see Exhibit 8 D. Most recent financial statement – Please see Exhibit 3 E. SEC and / or Moody’s credit rating or comparable rating: Opus Bank is rated by IDC Financial Publishing. Opus Bank’s most recent IDC rating was 211. A rating of 211 is categorized as “Excellent” by IDC. The Excellent category is defined by IDC as follows: “Banks rated Excellent are strong institutions. Their ratios reflect quality management from a balance sheet and income performance standpoint. Operating expenses and costs of funding are under control, producing a healthy return on equity (ROE)’” About IDC Financial Publishing… IDC Financial Publishing, Inc. does not accept compensation prior to or as a requirement to rate an institution, and is therefore impartial when determining a rank. Clients which subscribe to IDC's published ranks include the Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Government National Mortgage Association, Federal Home Loan Banks, Federal Reserve Banks, state and municipal governments, insurance companies, financial firms specializing in brokered certificates of deposit, individuals and institutions investing in brokered deposits, portfolio managers, treasurers of corporations, and individuals concerned about their bank safety ratings. IDC ranks over 6,500 commercial banks and over 1,000 bank holding companies using its proprietary methodology and regulatory reports submitted to the federal government. Additional information regarding IDC Financial Publishing can be obtained at: http://www.idcfp.com/. 6. Provide a funds availability schedule. Describe one day, two day availability and wire requirements. For a copy of our funds availability schedule, please see Exhibit 4. BANKING SERVICES PROPOSAL | 12 Opus Bank’s policy is to generally make funds from check deposits available on the first business day after the day we receive a deposit. Cash deposits and electronic direct deposits, e.g. ACH and Wire Transfer, will be available on the day we receive the deposit. Once funds are available, the City of Arlington is able to initiate ACH transactions, Wire Transfers and book transfers via Business Online Banking, and issue checks. For determining the availability of deposits, every day is a business day except Saturdays, Sundays and federal holidays. Deposits made before 7:00 p.m. via Remote Deposit Capture, or, in‐person at any of our Banking Offices before 5:00 p.m. Monday through Thursday or before 6:00 p.m. on Friday will be posted on that day. 7. Describe your Balance Reporting systems and availability. Balance and account activity is available to authorized users designated by the City of Arlington 24 hours a day 7 days a week via Opus Bank’s Business Online Banking Balance and account activity is available to authorized users designated by the City of Arlington 24 hours a day 7 days a week via Opus Bank’s Business Online Banking. BANKING SERVICES PROPOSAL | 13 Business Online Banking has transaction inquiry capabilities in various modules such as Current Day, Previous Day, Current Statement, Previous Statement and All Transactions for all posted transactions and check image inquiry. Additional search options allow for the search of specific transaction items within a date range either by the amount, transaction type or item number. For example, a search for check number 12345 between the dates December 10th through the 15th can be specified in the parameters for the requested report or by the individually reported item. Business Online Banking Tutorial Video: https://www.onlinebanktours.com/oec/?b=1053&c=9286 A. What systems does the bank use to deliver balance and transaction detail information? Balance and transaction detail information is provided via Business Online Banking in a secure (HTTPS) internet based environment. Data can be downloaded in CSV. Account statements are rendered on the final day of the statement cycle and available electronically via Business Online Banking on the business day following the last day of a statement cycle for an account. Opus Bank’s commercial business checking accounts cycle concludes on the final day of each month, therefore statements are delivered electronically via Business Online Banking on the first business day of each month. Interim reporting is available 24/7 via Business Online Banking as noted above. A personal computer or other access device will be required. The device must be capable of accessing the Internet (e.g., a modem and available phone line, a cable Internet connection or some other means of access to the Internet, and an active account with an Internet service provider). An Internet web browser that is capable of supporting 128‐bit SSL encrypted communications, which requires a minimum web browser version of: o Microsoft Internet Explorer (IE) for Windows version 9.0 or higher (including IE 11)‐except Metro mode o Mozilla Firefox version latest version o Safari version 6.0 or higher for MAC or on PC (iPhone app available) o Google Chrome latest version Operating Systems o Microsoft Windows 8 ‐32 bit – All editions o Microsoft Windows 7 ‐32 bit – All editions BANKING SERVICES PROPOSAL | 14 o Microsoft Windows Vista – 32 bit – Business o MAC OS 10.6 An active e‐mail account will be required. This enables us to communicate with you electronically regarding your account(s). Software that permits you to receive and access Portable Document Format or “PDF” files, such as Adobe Acrobat Reader version 6.0 or higher. Your eStatements are delivered in the PDF file format. B. What time is previous day information available for access by the customer? Previous day information will be available to authorized users designated by the City of Arlington no later than 6:00 a.m. on any business day following the date of activity via Business Online Banking. C. What are the hours of access of the balance reporting system? Business Online Banking is available 24/7. D. Does the bank provide current day information? Yes. Current day information is available via Business Online Banking. i. How frequently is this information updated throughout the day? Information in connection to deposits made via Remote Deposit Capture, Wire Transfers and in‐person transactions negotiated at an Opus Bank Banking Office will be visible to authorized users designated by the City of Arlington in Business Online Banking within 20 minutes of processing. ii. What transaction types are available on current day reports? Current day information will include all physical items presented to the bank during the day, such as; checks presented for cash at a Banking Office as well as many forms of electronic transactions including; book transfers performed via Business Online Banking, ACH Credits and Debits, Wire Transfers, and Deposits made via Remote Deposit Capture. Current day reporting will not include in‐clearing items such as checks processed by other banks that may post to the account on that banking day. E. Describe the level of detail provided in previous and current day reports? Previous day reports will include all transaction details such as deposit amount, check number, dollar amount, images of cleared checks (when applicable), “to” and “from” account detail related to book BANKING SERVICES PROPOSAL | 15 transfers performed via Business Online Banking, and all ACH remittance information required by Regulation E. Current day reports include details such as check number, dollar amount, images (when applicable), “to” and “from” account detail related to book transfers performed via online banking, and limited details pertaining to ACH transactions. A sample of previous and current day reporting is available as an attachment to this Banking Services Proposal. F. How many days of history can be accessed through the system? The Business Online Banking system will store up to 18 months of daily account activity, including check images. Should the City of Arlington require historical information beyond 18 months, statements can be obtained for 7 years and check images for 3 years. Standard research fees ($30/hour) may apply for document retrieval. G. In what format is information available? Data can be downloaded in CSV, .OFX (Microsoft Money), QBO, .IIF (QuickBooks), .QFX, .QIF (quicken) and Adobe PDF. H. Provide a sample printout of the daily on‐line balance information. Please see Exhibit 1. I. What is your process of providing a customized report for your clients? If customized reporting is needed, Opus would work with the City to either provide an existing solution, or if a solution is not currently available, to determine the scope / timeframe of the project required in order to fulfil the need. 8. ACH Services: A. What is the recommended service delivery method (i.e. direct transmission, on‐line, or other)? Does the system have the ability to integrate file from our CIS / FIS systems? Is standard formatting used? The recommended service delivery method is on‐line file import. Opus Bank’s ACH services are available within a module of Business Online Banking referred to as ACH Manager. Opus Bank would work with the City to determine whether or not BIAS Accounting Software has the ability to generate a standard ACH file format (NACHA or CSV), which could then be uploaded to the ACH Manager module. If BIAS is unable to generate a file, Opus Bank is extremely flexible in regards to the imported file requirements, and would provide the City with guidance on generating a custom file, if helpful. BANKING SERVICES PROPOSAL | 16 i. What are the hardware/software requirements? A personal computer or other access device will be required. The device must be capable of accessing the Internet (e.g., a modem and available phone line, a cable Internet connection or some other means of access to the Internet, and an active account with an Internet service provider). An Internet web browser that is capable of supporting 128‐bit SSL encrypted communications, which requires a minimum web browser version of: o Microsoft Internet Explorer (IE) for Windows version 9.0 or higher (including IE 11)‐except Metro mode o Mozilla Firefox version latest version o Safari version 6.0 or higher for MAC or on PC (iPhone app available) o Google Chrome latest version Operating Systems o Microsoft Windows 8 ‐32 bit – All editions o Microsoft Windows 7 ‐32 bit – All editions o Microsoft Windows Vista – 32 bit – Business o MAC OS 10.6 An active e‐mail account will be required. This enables us to communicate with you electronically regarding your account(s). Software that permits you to receive and access Portable Document Format or “PDF” files, such as Adobe Acrobat Reader version 6.0 or higher. Some documents may be delivered in PDF file format. ii. What training does the bank provide? Training will be provided in a variety of ways: The most critical of which is during initial set‐up and implementation. During the set‐up and implementation period, in‐person support and training will be provided for as much time as the City of Arlington needs to be comfortable with the new services by the local Treasury Management and Payment Solutions team, Brittany Loyear and Julio Mejia, with additional support from the Treasury Management Client Support, and Commercial Depository Services teams as needed. BANKING SERVICES PROPOSAL | 17 Online tutorials and User Guides are available via Opus Bank’s website for use 24/7. With permission from the City of Arlington, Opus Bank’s Treasury Management Client Support team can utilize Bomgar™ software to support the City of Arlington’s users remotely. Phone support is provided by the Treasury Management Client Support team which is available Monday thru Friday; 7:00 a.m. to 6:00 p.m. iii. Does the software offer the ability to manage security and access levels by user? Yes. Opus Bank’s Business Online Banking’s ACH Manager system has controls which can restrict user access from specific accounts, services and dollar limit. User security and access levels are managed with assistance from the Treasury Management and Client Support team with documented written approval from the City of Arlington’s authorized designee. iv. What report options are available? Reports can be generated via Business Online Banking which can include daily account ACH activity, over a specified timeframe, and parsed into ACH credit transactions and/or ACH debit transactions that post to the City of Arlington’s account(s). These reports can be downloaded in multiple file formats such as, CSV, .OFX (Microsoft Money),QBO, .IIF (QuickBooks), .QFX, .QIF (quicken) and Adobe PDF. Individual ACH entry details may be obtained from ACH Manager and are available for print or image retention (reports generated via Business Online Banking will not display the individual entry detail from a particular ACH file). ACH file records are accessible from ACH Manager for 180 days. v. What controls are in place to protect against lost files and duplications of transmissions? To protect against lost files, each ACH file successfully transmitted by the City of Arlington to Opus Bank via ACH Manager will be archived for 180 days. Each file will also be assigned a confirmation number once it has been successfully transmitted. To protect against duplications of transmissions ACH Manager will verify the dollar amount, payee, routing number and receiving account number of each entry within an ACH file that is transmitted to Opus Bank by the City of Arlington. If a duplicate entry is detected, ACH Manager will reject the file due to “Duplicate Items” and the file will not be transmitted. ACH Manager will only allow ACH files to be submitted for processing under dual‐control, therefore two users authorized by the City of Arlington will be required to approve all ACH files. This added layer of security will also enhance controls to protect against duplications of transmissions. ACH returns, notification of adjustments / correction are accessible via the “documents” section of the online banking platform. vi. Does the bank provide automatic file receipt acknowledgements? If so, how? Yes. Automatic file receipt acknowledgements are delivered via email to designated users authorized by the City of Arlington. BANKING SERVICES PROPOSAL | 18 vii. Describe the role of any third‐party processor used by the bank to provide this service? Does the third party provide written report of security standards and protocols for client review? Opus Bank does not use a third‐party processor for ACH services. Opus Bank uses an ACH processing system provided by Fiserv. Day‐to‐day processing functions such as client setup, security administration and handling of returns are performed by Opus Bank staff. B. What are the hours of operation of the ACH unit? Support for ACH services is provided by the Treasury Management Client Support team which is available Monday thru Friday; 7:00 a.m. to 6:00 p.m. C. What are the bank’s cut‐off times for customer initiation of ACH transactions? Opus Bank recommends that the City of Arlington initiate ACH transactions before 5:00 p.m. two business days prior to the effective, or settlement, date of the ACH file. Opus bank can however facilitate ACH transactions on a 1‐day basis, should the City find it beneficial. D. Describe the procedures used to verify accurate and secure receipt of transmissions. ACH Manager is accessed via Business Online Banking and is therefore operating in a HTTP Secure environment. Opus Bank’s ACH services are available within a module of Business Online Banking referred to as ACH Manager; therefore, operating in a HTTP Secure environment. Each of the City of Arlington’s authorized ACH Manager users will be assigned Vasco® security tokens. These security tokens generate one‐time use passwords which are required for access into Business Online Banking and at the time of ACH file transmission to Opus Bank. BANKING SERVICES PROPOSAL | 19 ACH Manager will only allow ACH files to be submitted for processing under dual‐control; therefore, two separate individual users authorized by the City of Arlington will be required to approve all ACH files. This added layer of security will also enhance controls to protect against duplications of transmissions. E. Can the bank automatically redeposit items returned for insufficient or uncollected funds? Opus Bank does not automatically re‐clear ACH entries that are returned for insufficient or uncollected funds. F. How does the bank handle file, batch, and item reversals and deletions? Should a file, batch or item need to be reversed, an authorized user designated by the City of Arlington will be able to perform a reversal within ACH Manager. ACH files, batches or items can be deleted by an authorized user designated by the City of Arlington until the time the file, batch or item is submitted to the bank for processing. After being submitted for processing the file, batch or item may only be reversed. A file, batch or item submitted to the bank for processing may not be deleted. 9. Positive Pay A. What is the recommended service delivery method (i.e. direct transmission, on‐line, or other)? What are the hardware/software requirements? The City of Arlington will have the ability to transfer through Business Online Banking the check issuance file for positive pay. The City will also have access to download a paid check file for all checks paid during the specified statement cycle. Lastly, the City of Arlington also has the option to include cleared check images on the monthly CD‐ROM for reconciliation and archival purposes. Files may be transmitted to Opus Bank at any time throughout the day. Files must be received by 7:00 p.m. the day prior to clearing in order to be compared against in‐clearing checks presented to Opus Bank on the next day. BANKING SERVICES PROPOSAL | 20 Exception items are available via Positive Pay within Business Online Banking for designated users authorized by the City of Arlington to make a “Pay” or “Return” decision by 11:30 a.m. each business day. If no decision is made, we will first attempt, via our dedicated customer service representative, to contact the City of Arlington. If unable to achieve this the default decision is used. The default decision will be established by the City of Arlington as part of the Positive Pay setup. The City of Arlington may choose “Pay” or “Return” as a default for each account. Software requirement: A personal computer or other access device will be required. The device must be capable of accessing the Internet (e.g., a modem and available phone line, a cable Internet connection or some other means of access to the Internet, and an active account with an Internet service provider). An Internet web browser that is capable of supporting 128‐bit SSL encrypted communications, which requires a minimum web browser version of: o Microsoft Internet Explorer (IE) for Windows version 9.0 or higher (including IE 11)‐except Metro mode o Mozilla Firefox version latest version o Safari version 6.0 or higher for MAC or on PC (IPhone app available) o Google Chrome latest version Operating Systems o Microsoft Windows 8 ‐32 bit – All editions o Microsoft Windows 7 ‐32 bit – All editions o Microsoft Windows Vista – 32 bit – Business o MAC OS 10.6 An active e‐mail account will be required. This enables us to communicate with you electronically regarding your account. Software that permits you to receive and access Portable Document Format or “PDF” files, such as Adobe Acrobat Reader version 6.0 or higher. Some documents may be delivered in PDF file format. B. What controls are in place to protect against lost files and duplications of transmissions? During file transmission or when entering items manually Positive Pay will check for items already in the system and will only import the items that are not in the system. BANKING SERVICES PROPOSAL | 21 An automated email alert is delivered to designated users authorized by the City of Arlington which will confirm successful upload of the files. Reports are available to users authorized by the City of Arlington including reports on issued items that have been transmitted to Opus Bank and outstanding issued items. C. Does the bank provide automatic file receipt acknowledgements? If so, how? Yes. Automatic file receipt acknowledgements are delivered via email to designated users as requested by individual(s) authorized by the City of Arlington. D. Describe the role of any third‐party processor used by the bank to provide this service? Opus Bank licenses the Positive Pay application from Centrix Solutions and it is run in‐house. E. What is the bank’s deadline for transmitting files/data? Files may be transmitted to Opus Bank at any time throughout the day. Files must be received by 11:59 p.m. in order to be compared against in‐clearing checks presented to Opus Bank on the same day. F. What is the process for notifying the bank of a single check or small check run outside of the regular batch file? Designated users authorized by the City of Arlington will have the option to manually enter issued checks online outside of the regular batch file. G. How does the City notify the bank of voided and stop payment checks? During normal file transmission, or when using the manual entry option, specific items may be coded by users authorized by the City of Arlington to indicate that a check has been voided or has a stop payment. H. Does your bank have payee verification? Yes. Payee Positive Pay will match payee name, check serial number and corresponding dollar amount matching exactly as transmitted by the City of Arlington to Opus Bank. I. Is the positive pay service fully implemented at all bank branches? The Positive Pay service is implemented by connection to Opus Bank’s core deposit system. As such, all of the City of Arlington’s accounts enrolled in Positive Pay will be subject to item verification prior to final positing of checks to the City’s account(s). If an item does not match it will be flagged for exception processing whereby authorized users designated by the City of Arlington may “pay” or “return” the item. This includes items negotiated at all of Opus Bank’s Banking Offices. J. How does the bank handle exception (“paid not issued”) items? Exception “paid not issued” items are available via Positive Pay within Business Online Banking for designated users authorized by the City of Arlington to make a “Pay” or “Return” decision by 11:30 a.m. each business day. BANKING SERVICES PROPOSAL | 22 If no decision is made, the default decision is used. The default decision will be established by the City of Arlington as part of the Positive Pay setup. The City of Arlington may choose “Pay” or “Return” as a default for each account. i. Does the bank offer a daily listing of exception items? Yes. An exception item listing will be available each day via Positive Pay within Business Online Banking to designated users authorized by the City of Arlington. ii. Are there defaults available for each account to either automatically return or pay on exception items? Yes. The City of Arlington may choose “Pay” or “Return” as a default for each account. iii. What is the timeline for reporting exceptions to the city? On days when exception items are reported to the City of Arlington by Opus Bank, an automatic email notification will be delivered to designated users authorized by the City of Arlington by 6:00 a.m. iv. How are exceptions reported to the city? Will an image be available? An exception item listing will be available each day via Positive Pay within Business Online Banking to designated users authorized by the City of Arlington. Exceptions will also be reported to the City of Arlington via automatic email notification delivered to designated users authorized by the City of Arlington by 6:00 a.m. Check images are available for review on‐line via Business Online Banking prior to making a Positive Pay decision. v. What is the timeline for the city to act on any exceptions? The City of Arlington must act on any exception by 11:30 a.m. otherwise the default action established at the time of set‐up will be taken. vi. What are the hours of operation of this service unit? Positive Pay support is provided by the Treasury Management Client Support team which is available Monday thru Friday; 7:00 a.m. to 6:00 p.m. 10. Purchase Card Program: Note that Opus Bank partners with Elan Financial Services to provide the One Card, a versatile T&E / AP purchasing card platform that offers multiple layers of customization and robust reporting features. BANKING SERVICES PROPOSAL | 23 A. Provide a funds available schedule by the card type. Is it negotiable? (The city expanded upon this question by specifying the inquiry was in regards to “Different card limits per department and spending limits.”) Realizing that needs may vary across departments, divisions or employees, the One Card offers several spending control options that can be tailored to an individual account or group of accounts. Complementary fraud controls are automatically integrated into your program to help prevent losses associated with fraudulent card usage. B. What is the settlement deadline? The billing cycle is 19 cycle dates, from the 6th through the 25th day of each month (exclusive of the 19th of each month). Payment on individually billed cards is due within 25 days from statement date. Corporate bill accounts require payment in full within 14 days of the statement date. C. What daily and/ or monthly reconciliation reports are available? Standard report categories available include: Program Management Reports Financial Management Reports Supplier Management Reports Tax and Compliance Management Reports Administration Reports In addition to these standard reports, Access Online offers the following ad hoc reporting options: Flex Data Reporting—This Access Online feature puts the control in the user’s hands, so they can define what they want to see in a report. Report Scheduler—This Access Online feature is available with our Standard Reports and Flex Data Reporting and allows Program Administrators to schedule reports to run once or on a recurring basis. D. What software platform do you use? Elan Web‐based Tool: Access Online ‐ Available 24/7, Access Online is a robust, fully Web‐enabled program management and reporting tool designed to meet the complex needs of any organization. The City will choose the features and functionality that best support and enhance your business processes. Access Online offers effective and efficient management controls, allowing multiple users within your organization to efficiently manage accounts, manage transactions and establish workflow. E. What percentage of rebate? Although the existing spend volume provided by the City does not meet the minimum required in order to earn a rebate, Opus Bank and Elan would partner with the City to review their AP processes & BANKING SERVICES PROPOSAL | 24 payment methods, in an effort to determine if a portion of the checks being written for AP could be converted to card, and in turn increase the annual spend figure and the associated potential rebate. Part 1: Performance Volume Incentive At the end of each annual period, Elan will calculate two performance indicators to qualify for the Part 1 incentive, which are Net charge volume for the entire program, and average transaction size. The result will be applied to the Part 1 matrix below and the qualifying incentive opportunity will be determined. Net Annual Charge Volume Average Transaction Size $150.00 $300.00 $500.00 Volume Rebate Percentage $1,000,000.00 0.3500% 0.4000% 0.4500% $2,000,000.00 0.4000% 0.4500% 0.5000% $3,000,000.00 0.4500% 0.5000% 0.5500% $4,000,000.00 0.5000% 0.5500% 0.6000% $5,000,000.00 0.5500% 0.6000% 0.6500% $6,000,000.00 0.6000% 0.6500% 0.7000% $7,000,000.00 0.6500% 0.7000% 0.7500% $8,000,000.00 0.7000% 0.7500% 0.8000% $9,000,000.00 0.7500% 0.8000% 0.8500% $10,000,000.00 0.8000% 0.8500% 0.9000% Part 2: Speed of Payment Incentive At the end of each annual period, Elan will calculate the speed of payment (file turn/client held2) performance for the entire program. The result will be applied to the Part 2 matrix below and the qualifying incentive opportunity will be determined. Table A File Turn Days Performance Rebate Percentage 29 0.0000% 28 0.0050% 27 0.0100% 26 0.0150% 25 0.0200% 24 0.0250% 23 0.0300% 22 0.0350% 21 0.0400% 20 0.0450% 19 0.0500% 18 0.0550% 17 0.0600% 16 0.0650% 15 0.0700% 14 0.0750% 13 0.0800% BANKING SERVICES PROPOSAL | 25 F. Describe your card management process including: New Card issuance Cancellation of card Modification of card parameters (dollar limits) Lost / stolen cards Elan recommends that our clients use the Automated Card Issuance program for the initial rollout. Our client submits a data file that lists all employees authorized to receive a card. Once the file is received, the card order takes approximately six business days to process. After processing, Elan mails all cards to cardholders directly. The advantages of Automated Card Issuance are: Elan can process all of the Authority’s cards at once Complete cardholder implementation from the outset No need to follow up with employees regarding card application completion Simplified enrollment process for both our client and its employees Significantly quicker program implementation All commercial cards in good standing are automatically reissued every three years. They are mailed directly to all cardholders six weeks prior to the expiration date. Ongoing Issuance After implementation, Program Administrators can submit an application using Access Online, or send via fax or email. All applications submitted through Access Online are processed within 24 hours and expedited delivery can be completed within 24 to 48 hours in the United States and two business days elsewhere. Standard processing for applications received via fax or mail is fulfilled within five to seven days. There is a fee for expedited card delivery as indicated in the fee table. Cards are activated when the cardholder calls the activation phone number listed on the sticker applied to the new card. 11. Payment of Fees. Respondents will need to provide information on the following: A. The effective rate and formula used to calculate the service charge credit for calculated fund balances; For the earnings credit calculation formula, please see Exhibit 5. NOTE: A special ECR of .75 bps has been approved for the City of Arlington B. The proposed method for setting rates on a compensating certificate of deposit; Balances in interest bearing accounts such as Certificates of Deposit, Money Market Accounts or Savings Accounts will not be considered when calculating Earnings Credit Allowances used to offset fees. Interest rates for municipal certificates of deposit and other interest bearing accounts are established by Opus Bank’s pricing committee and set on a competitive basis. C. A timeframe proposed to pay any additional fees not offset by service charge credit; BANKING SERVICES PROPOSAL | 26 Although (per Attachment 1 ‐ Cost Comparison) Opus Bank does not anticipate the City generating a fee in excess of Earnings Credits, Opus Bank will provide the City of Arlington annual billing services; any net deficit accumulated over the course of a calendar year will be settled by automatic debit from the City of Arlington’s primary checking account at the end of the year for which charges were incurred. D. Whether a service charge credit/debit can be carried forward to the next period; Both, service charges and Earnings Credits can be carried forward. We have the flexibility to offer a Monthly, Quarterly, Semiannual or annual settlement of the net service charges. Analysis Statements are produced every month and show the amount of fees and Earnings Credits carried forward. E. The formula for any fees in the event of an overdraft; Overdraft fees will only be charged to the City of Arlington in the event of an overnight overdraft situation which occurs after all credits have posted to an account for a given business day and the subsequent clearing of debit items presented to the bank on the same business day cause the balance in an account to fall below $0.00 and remain below $0.00 through the following business day. Debit items are paid in sequential order and charged at a rate of $30 per item with no maximum per day. Additionally, a $5 per day Continuous Overdraft fee will be incurred each day the account remains overdrawn, beginning the 2nd calendar day following the first date of overdraft. F. Describe what constitutes a daylight and overnight overdraft situation? A daylight overdraft would occur on a business day during normal banking hours when, as items are negotiated for payment or transactions are processed via Business Online Banking, an account balance falls below $0.00 but when the balance is returned to $0.00 or greater prior to the close of business on that same business day either by automated sweep, advance from a line of credit or book transfer. An overnight overdraft would occur after all credits have posted to an account for a given business day and the subsequent clearing of debit items presented to the bank on the same business day cause the balance in an account to fall below $0.00 and remain below $0.00 through the following business day. 12. Errors and Adjustments A. Describe your adjustment process for resolving deposit discrepancies. This Banking Services Proposal includes a recommendation for the City of Arlington to utilize Opus Bank’s Remote Deposit Capture service (See response to question 16) which, among many enhanced features, provides the City of Arlington greater control and visibility for deposit transactions. Of these enhanced features, deposit balancing and review will significantly reduce deposit discrepancies. Deposit discrepancies found as a result of normal items processing are resolved by transacting a separate debit or credit entry. B. At what dollar amount do you write off discrepancies? Discrepancies less than $5.00 will be corrected to the City of Arlington account and written off by Opus Bank. BANKING SERVICES PROPOSAL | 27 C. Do you adjust the deposit amount or process an adjusting debit or credit? Deposit adjustments will be made by separate debit or credit entries. 13. Describe how inquires requiring research and adjustments are handled by the institution. Are there established turn‐around times for research and adjustment items? If yes, specify. What fees are associated with research in the event of a banking error/customer error? Research inquiries submitted by the City of Arlington should be directed to the Commercial Depository Services group. The established turn‐around time for research and adjustment is 24 hours. In such rare cases where additional research may be required, that would extend the turn‐around time beyond 24 hours, Opus Bank will provide the City of Arlington an estimated date of completion base on the scope of research anticipated. Opus Bank will process adjustments identified during normal item processing within the same business day. There are no fees associated with research and adjustment inquires. 14. Describe NSF or Returned Items processing procedures, fees or other related services available. The City will require re‐depositing ‘NSF’ or ‘uncollected funds’ returned items so that they may be presented a second time prior to being charged back. Opus Bank provides electronic notification of returned items via Business Online Banking. Users authorized by the City of Arlington will be able to view returned item notices and check images one business day following the date of return. The default handling method for returned items would be to return them to the City in order for them to be presented a second time, or a special instruction can be put in place allowing Opus Bank to manage the second presentment on the City’s behalf. Regardless of handling, a $10 returned item fee will be assessed per return, and charged to the City’s monthly account analysis activity. 15. Security/Protection Measures: A. Is the institution compliant with all current IT security and network encryption standards? Please describe. Yes, Opus Bank is compliant with all current IT security and network encryption standards. Business Online Banking operates in a HTTP Secure environment and utilizes multi factor authentication. B. Does the institution have a method of allowing secure submission of encrypted emails with attachments for communication? BANKING SERVICES PROPOSAL | 28 Yes, Opus bank utilizes a service called ZixMessage Center via a 3rd party partnership with ZixCorp, and all email communications containing sensitive information (or attachments containing sensitive information) are sent via encrypted email without exception. C. Does the institution offer individual security certification for client computer accessing encrypted portions of the online banking software? Opus Bank will issue each of the City’s users authorized to initiate ACH and / or Wire Transfers Vasco® security tokens. These security tokens generate one‐time use passwords which are required for access into Business Online Banking and at the time of an ACH file or Wire Transfer transmission to Opus Bank. D. What Security Features are in place to minimize the risk of unauthorized transactions? In addition to the tokens described above, Business Online Banking and ACH Manager will only allow ACH files and Wire Transfers to be submitted for processing under dual‐control; therefore, two separate individual users authorized by the City of Arlington will be required to approve all ACH files and Wire Transfers. Opus Bank also offers an optional layer of added protection with an IP Whitelist, which would only allow online access to authorized users logging on from devices associated with previously approved public IP addresses. Finally, Opus Bank strongly recommends the use of both incoming ACH debit and Check Positive Pay, allowing the City to decision all outgoing transactions that weren’t previously authorized or included in a paid check file provided to the bank. E. How are the City’s assets restored to the City in the event of a security breach or hacking incident? Opus Bank’s standard policy is to provide provisional credit the day that the incident is reported, followed by an immediate investigation to determine the cause of the breach, and to ensure the City adhered to all required security measures, at which point the credit would become permanent. F. What is the timeline for restoration of City Funds in the event of an unauthorized transaction? Although the combination of required (dual authorization / security token) and recommended (Positive Pay / IP Address whitelist) security features would eliminate the chances of an unauthorized transaction occurring almost entirely, opus Bank would work with the City to restore funds the day the incident is reported, so long as the City does so within the timeframe in which a transaction can be returned (same business day for a wire, one business day for checks, and two business days for ACH transactions). If the incident is reported outside of that timeframe, Opus Bank would work diligently with the City to ensure funds were restored; however the timeframe would depend on various factors. G. Identify key measures of the bank’s financial strength (ie: capital ratios, market capitalization, total assets). Provide the recent annual report. Please see “About Opus Bank” section at the beginning of this response, as well as Exhibit 4. BANKING SERVICES PROPOSAL | 29 16. Service Enhancements: Describe any enhancements, technological or otherwise, that we should consider to improve operational or cash management efficiencies. Remote Deposit Capture* ‐ Based on the City’s volume of deposited checks, Opus Bank strongly recommends the use of Remote Deposit Capture (RDC), allowing items to be deposited on‐site, as opposed to being taken to a local branch for processing. RDC would create numerous efficiencies, including (but not limited to) the following: Extended Processing Window ‐ Deposits made up until 7:00pm (M‐F) will be posted the same business day (with funds becoming available the following business day). Electronic Endorsement & Deposit Slip Creation ‐ The stamping of checks would no longer be required, as the RDC platform (accessible via a module in Business Online Banking) would endorse the checks virtually. Additionally, deposit slips would no longer be required as one is created virtually per deposit as well. Electronic Storage of Check Images ‐ Check images and daily deposit reporting are available via the RDC Module for 45 business days, eliminating the need to make and store images of branch deposited items. Security of Employees ‐ Because RDC would greatly reduce the trips required to a branch (cash deposits could be made less frequently based on volume, or via armored courier services ‐ an option to be discussed at the City’s request should volume support it) the liability associated with sending employees to the bank, as well as the time associated with the task, would be significantly reduced as well. Payee (check) Positive Pay* Although the City is currently utilizing incoming ACH debit Positive Pay, Opus Bank strongly recommends the addition of Payee (check) Positive Pay, ensuring all payment types are shielded from potential fraud. The addition of this fraud tool would allow the City to provide Opus Bank with a list of issued checks (uploaded via the Positive Pay Module within Business Online Banking, or keyed manually within that module as well) that would then require each check clearing against the City’s account to be verified against said list (via the following parameters: check number, issue date, dollar amount and Payee name), and allowing the City to decision any items attempting to clear that are flagged as an exception. *Please see exhibit 6 for additional information on these recommended services. Pricing for each will also be noted on the included bid sheet (attachment B) as well as notes regarding the payment of said fees via the excess earnings credit being anticipated (Scope of Services Responses ‐ attachment A). Increase the use of Electronic Payment Methods ‐ Opus Bank commends the City for utilizing both ACH (primarily Payroll) and a Purchasing Card program (primarily card‐in‐hand T&E transactions) to manage a good portion of the City’s payables. That being said, Opus Bank would partner with the City to maximize those efforts, moving as many of the existing payments still made via check, to ACH or Card where possible. BANKING SERVICES PROPOSAL | 30 By reducing check volume and identifying which of your vendors would be willing to accept an ACH or card payment, the City inurn would: Decrease Fraud ‐ Paper check fraud continues to be the most prevalent form of fraud businesses are effected by. Reduce Cost ‐ The cost of the supplies and time associated with getting a check out the door range between $2 and $27 per item depending on various factors, while fees associated with electronic payment methods are typically minimal. Improve Speed of Delivery ‐ Reducing the time associated with vendor payments can also work to reduce the time associated with tracking payments and fielding calls from vendors inquiring as to when their payments should arrive. 17. Provide information on how your institution plans to keep your product line competitive. Describe what approach the bank is taking in the development of new services and what new services and/or features the bank plans to offer and within what time frame. Opus Bank continually monitors changes in technology and business trends to ensure that our products and services are competitive. Banking personnel are active in trade organizations and user groups where current and future directions of the industry are discussed. There is also attendance at various trade shows that offer the newest and latest technologies. All of which keep the products Opus Bank offers current and competitive. The development of new services and /or features may be initiated from direct client feedback, input from our team, or otherwise. The following services are planned enhancements to our product set. Integrated Receivables ‐ Aggregates payments and their remittance details received from multiple payment sources, such as lockbox, checks, wire transfers, ACH, EDI, and cards. The solution provides a consolidated account receivables feed, reducing the time and internal processes required to update Account Receivables systems. This new product is slated for Q3 2016. Electronic Bill Presentment and Payment (EBPP) Platform – A multichannel billing and payment solution that allows our client’s to send electronic invoices to their customers, enabling them to collect payments more efficiently, and reduce costs. This new product is slated for Q4 2016. BANKING SERVICES PROPOSAL | 31 18. Disaster Recovery: A. Describe your institution’s formal disaster recovery plan. With operations centers in Everett, Washington, and Fullerton, Irvine and Redondo Beach in California, Opus Bank’s Disaster/Recovery Plan benefits from unparalleled flexibility to relocate operations impaired by a disaster and resume those operations elsewhere. The technology that enables and serves these operation centers employs a set of core and electronic banking systems that are operated in Des Moines, Iowa. Connectivity between Opus Bank’s operations centers and the enabling technology is achieved via a cloud‐based network and firewall environment operated by AT&T. Because of the broad reach of its network and its off‐site technology, Opus Bank is in a unique position to resume operations with minimal business disruption. B. How quickly will back‐up facilities be activated? Opus Bank’s operations centers are “live” back‐up facilities for each other. This holds true also for the network and firewall that enable connectivity between these facilities and Opus Bank technology center. This high degree of readiness, however, does not yet extend to Opus Bank’s core and electronic banking technology in Des Moines, Iowa. Should an event interrupt these technology services, the back‐ up technology facilities would be activated within ten (10) hours following the disaster declaration. C. Describe your institution’s operating capabilities to assist the City in the event of a disaster or declared emergency. The objective of Opus Bank’s Disaster/Recovery Plan is to resume normal business operations as quickly as possible while maintaining the safety of our team members. With this in mind, Opus Bank will strive to provide whatever assistance which might normally be provided outside the circumstances of a disaster or declared emergency, in a prudent and timely manner. 19. Conversion / Implementation Plan: Provide a detailed description of the implementation process, including testing, and a sample implementation schedule. Please see Exhibit 7 for a sample copy of our detailed and customizable implementation plan. The most important element to a smooth transition is gaining a thorough understanding of the respective needs and capabilities of the client (City of Arlington) and the service provider (Opus Bank). As such, the conversion will begin with a due diligence meeting with participation from the City of Arlington personnel involved in decision making, and, day‐to‐day operations as well as personnel from Opus Bank led by Brittany Loyear, Julio Mejia and representatives from the Commercial Depository Services & Treasury Management Client Support teams. One significant take away from this due diligence meeting will be an implementation timeline agreed to by both parties with resources accountable to delivery of certain items and or services. Adherence to the timeline will aid a smooth transition as key dates will be anticipated and therefore communication will support any changes that might affect stakeholders (e.g. Employees of the City of Arlington and/or citizens of the City of Arlington). BANKING SERVICES PROPOSAL | 32 The implementation process will include multiple layers and options for training to be provided to the City of Arlington as noted earlier in this Banking Services Proposal. The final stage of implementation will include testing of all accounts, products, and services to ensure a smooth and seamless transition. Finally, as it is with due diligence, communication is critical to ensuring a smooth transition. Communication throughout the conversion process will be led by Brittany Loyear, and may include daily status reporting and conversations with the City of Arlington, either in person or by phone. The scope of communication expectations will be agreed upon during the initial due diligence meeting(s). 20. List the address and hours of operation at your nearest branch office and also the hours of operation for non‐branch services. Smokey Point Banking Office: Hours: Monday thru Thursday 9 – 5 Friday 9 – 6 Additional services: ATM, Drive up, Night Drop Box Address: 3532 172nd St NE Arlington, WA 98223 Phone: 360.653.1900 Treasury Management Client Support: TM Support Toll‐free Client Support Line: 855.860.5952 Email: TMClientSupport@opusbank.com Fax: 714.870.8288 Treasury Management Client Support is a dedicated team of specialists available Monday thru Friday; 7:00 a.m. to 6:00 p.m. Commercial Depository Services CDS Toll‐free support line: 877.774.4722 Email: CDS@opusbank.com Fax: 714.773.7325 Commercial Depository Services is a dedicated team of specialists available Monday thru Friday; 7:00 a.m. to 6:00 p.m. BANKING SERVICES PROPOSAL | 33 21. Discuss any special conditions, other fees, other services, or deviations from the requested scope. Pricing for each of the recommended service additions will be noted on the included bid sheet (attachment B) as well as notes regarding the payment of said fees via the excess earnings credit being anticipated (Scope of Services Responses ‐ attachment A). Attachment A SCOPE OF SERVICES See Opus Bank responses (where applicable) in Red. GENERAL INFORMATION The City of Arlington is soliciting proposals for a primary banking relationship with a financial institution which operates an office within the City limits. The City will be contracting for the following general services for an approximate three year period beginning April 1, 2016 and ending March 31, 2019. At the City’s option, a two year extension will be permitted with the same terms and conditions of the original contract or as amended. The following is a listing of mandatory services the City requires of its financial institution. This list is not comprehensive and shall in no way obligate the City to be required to use all listed services. • Demand deposit checking accounts • Banking supplies • Payroll direct deposit • Trust & escrow agent services • Merchant card services • ACH debit/credit services • On‐line balance reporting • On‐line stop‐pays • ACH reporting • On‐line wire transfers • Overdraft line of credit • Purchase cards • Excellent customer service & response • Check scanning services The City anticipates that proposed banking services will be compensated either by the credit earned on average collected balances, or a fee for service basis, but is also willing to consider other options. The following is a list of optional services the City may require: • Lock‐box Services • Account Reconciliation Processing (ARP) • Positive‐Pay on checking accounts Credit cards Opus Bank offers all of the services listed above. SERVICES REQUIRED Checking Accounts: The City currently utilizes two checking accounts: 1) the primary checking account and 2) a petty cash account for issuing checks for small, non‐routine purchases. The BANKING SERVICES PROPOSAL | 34 institution will furnish the City with additional checking accounts as needed. Daily deposits are made at the branch office. NSF checks must be processed twice before being returned to the City. The basic checking account services should at least consist of: • Provide month‐end statements by the 10th day of the following month and provide statements to various auditors upon request; Bank statements are made available via Business Online Banking within 2‐3 business days of the previous month end. Provide electronic check image retrieval including necessary software; Check images are available via Business Online Banking for 18‐months, and software requirements for access to that platform are provided earlier in this response. Should an image of a check that cleared more than 18 months prior be required, Opus Bank’s Commercial Depository Services (CDS) team would facilitate the request. Provide individual and consolidated monthly account analysis for all accounts by the 10th day of the following month; Account analysis statements (both individual and consolidated) are typically available by the 10th day of the following month, however a special instruction can be put in place to provide the City with a pre‐cut version of the analysis statement(s), which are generated within 2‐3 business days of the previous months’ end. • Provide an on‐line wire transfer system for transferring money to other institutions, along with appropriate security levels for wire transfer initiations and approvals; Opus Bank offers online wire origination via the wire manager module within Business Online Banking, which requires dual approval for any and all outgoing wire transactions. • Provide an on‐line computer balance reporting system, with information on collected, available and closing balances, as well as a detail of total debits and credits posted to the account for the previous day, by 7:00 a.m. each business day; Opus Bank’s Business Online Banking Platform offers these reporting capabilities. • Provide an on‐line reporting system that shows current day ACH credits and debits each business day. Opus Bank’s Business Online Banking Platform offers these reporting capabilities. • Provide Positive Pay feature with exception reporting/return of unknown items; The • Positive Pay module within Opus Bank’s Business Online Banking Platform offers this Capability. • Provide for on‐line stop‐pay look‐up and notification; Stop payments can be made via Business Online Banking, and previously placed stops can be searched / viewed as well. • Provide support in answering questions, trouble‐shooting problems and resolving issues in a prompt manner; Opus Bank prides itself on the client service and efficient resolutions we’re able to provide, through offering a dedicated team of contacts (Commercial Depository Services), available via phone or email 7:00am ‐ 6:00pm M‐F. • Provide means to inquire about canceled checks and stop payment on checks upon proper authorization. Opus Bank’s Business Online Banking Platform provides said means, however the inquires can also be placed with our Commercial Depository Services team via phone or email, 7:00am ‐ 6:00pm M‐F. Overdraft protection: Although the City will attempt to minimize daylight and overnight overdraft situations, it recognizes that there are times these situations could occur. (Note: an overdraft has not occurred within current institutional memory.) BANKING SERVICES PROPOSAL | 35 Opus Bank with work closely with the City to ensure any overdraft situation is first and foremost avoided, but should one occur, that items pending payment are not affected, and that guidance is provided in regards to what needs to take place for any potential fee(s) to be avoided. Trust and Escrow Agent Services: The City may require trust and escrow agent services to hold letters of credit and other third party commercial documents. The institution will, in most cases, be required to take physical custody of these securities, notify the Parties of their expiration thirty days prior to termination of the agreement and accept renewal or replacement of instruments. The City may also require retainage accounts be maintained for contractors choosing to place retainage funds in an interest bearing account. Trust and Escrow Agent services available with Opus Bank's Escrow Division ‐ Commerce Escrow a division of Opus Bank. Safekeeping Services: The City currently is not requiring safekeeping services. However, the institution may, in the future, be required to provide safekeeping facilities and services for the City’s investment securities. Safekeeping services include (but are not limited to): • receive/deliver securities on a delivery versus payment method; • price securities to market; • collect coupon bond interest; • provide delivery confirmation on new security purchases; • provide a monthly statement of holdings; • register or transfer securities; • verify holdings as of specific dates for audit purposes; • credit the City’s account for interest and principal payments on the day received; • provide maturity and interest payment notices at least 5 days prior to payment date The City invests in U.S. Treasury and Agency securities that require safekeeping services and other securities allowed by Washington State Statute. The successful bidder will, at that time, be required to comply with all State and Federal regulations regarding safekeeping of municipal securities. Opus Bank does not currently offer Safekeeping Services, however should the City in the future be required to provide such services, Opus Bank would partner with the City to help identify a qualified 3rd Party Service Provider. Banking Supplies: The financial institution will be required to provide a supply of coin rollers, locking bank bags, tamper‐proof plastic deposit bags, deposit slips, advance travel and other miscellaneous checks, and endorsement stamps for each location. (See Attachment B for the number of endorsement stamps needed.) The cost of such supplies shall be charged against the City’s earnings credits. Opus Bank’s Commercial Depository Services team is readily available to facilitate the purchase of all needed banking supplies, fees for which would be billed via the City’s Account Analysis. Training Services: Training, operating manuals and ongoing support are to be supplied by the bank for all services provided. BANKING SERVICES PROPOSAL | 36 Training will be facilitated in person during the initial onboarding, as well as at any point the City would find it beneficial moving forward. Additionally, ongoing training can be scheduled, or take place without required notice via Opus Bank’s Treasury Management Client Support team, available via phone and email 7:00am ‐ 6:00pm, M‐F. Product user guides and online tutorials will also be providing during the onboarding process or at any point in the future as needed. Wire/ACH Transfers: The financial institution will provide the City with the ability to initiate wire and ACH transfers via online banking. ACH transactions consist primarily of debt service, retirement fund transfers, state and federal tax payments. The online banking platform will require a secure separation of duties for initiation and approval by city staff. The City will have the ability to initiate both ACH and Wire transactions through the ACH and Wire Manager Modules within Opus Bank’s Business Online Banking platform, both of which will require a separation of duties for initiation and approval. Direct Deposit for Payroll: The City offers and encourages direct payroll deposit for its employees. The City pays its employees on the last working day of the month. On an average payroll, 126 employees receive direct deposit, which generates approximately 175 transactions per pay period due to many employees having multiple bank account transfers. The City is considering moving to a bi‐monthly pay period. Currently, the City tries to transmit payroll data to the institution before 4:00 p.m. the second working day prior to payday. Deposits must be made into the employees’ accounts by 12:01 a.m. on payday. Any deviation from these time limits must be stated in the bid. Any bidder with less restrictive time requirements will be given favorable consideration. The City from time to time may need to transmit the payroll data one day prior to the pay date. We are therefore requesting bids on both a one‐day and two‐day turnaround. We are interested in what the deadlines for transmission are for both situations. Opus Bank can facilitate the City’s need for Direct Deposit via the ACH Manager module within the Business Online Banking Platform. ACH files can be transmitted until 5:00pm PST on the business day prior to the effective date of the transactions, while still meeting the City’s requirement to credit employee checking accounts by 12:01am on said effective date. Pricing for one and two day initiated ACH items is the same, and reflected on the Bid Sheet (attachment B). Merchant Card Services: The Financial institution will provide the City with the ability to accept payment through the use of credit cards. The City currently accepts MasterCard, Visa and Discover credit cards in person and on‐line for collection of recreation, certain permit fees, and utility bills and may expand for other types of collections as well. The City currently has three locations that accept credit cards, with the possibility of more locations in the future. The City will be credited daily for the gross amount of the bank card transactions. Any sales discount fee or percentage proposed will be billed at the end of each month as part of the activity charges. Opus Bank has partnered with Vantiv to offer its customers access to Vantiv’s innovative, secure payment processing services, and related technology. The City is already acquainted with Vantiv, and this is an opportunity to pull all merchant processing accounts under one service relationship. Based on the additional information provided by the City during the question / BANKING SERVICES PROPOSAL | 37 answer process, Vantiv has prepared a separate and comprehensive response to this section, which can be found via Exhibit 8. Night Depository Services: The City currently does not utilize ‘night drop’ deposits after hours and does not anticipate this service in the near future. Should the City require Night Depository Services in the Future, the Opus Bank branch located in Arlington can facilitate. Purchasing Cards: The City is utilizing a purchasing card program for making routine purchases in lieu of the normal requisition/purchase order mode of operations. Opus Bank can facilitate the City’s existing Purchase Card program via a partnership with Elan, and their One Card platform. Additional details regarding that platform are provided via the Banking Services Questions / Statements portion of the RFP response. Data Equipment Compatibility: The City relies on on‐line transactions. Please note the specifications (equipment/software) needed for an automated wire transfer, ACH debit and credit, credit card, balance reporting and any other automated systems included in this proposal. Any costs associated with automated data and equipment should be identified on the Bid Sheet form in Attachment B. Equipment / software requirements are noted in the Banking Services Questions / Statements portion of the response in regards to Opus Bank’s Business Online Banking Platform and Elan’s One Card, as well as via Exhibit 8 in regards to Vantiv’s Merchant Services options. Miscellaneous Optional Services: In addition to the requirements listed above, the proposal shall identify proposed fees for the following services: • Automatic Account Reconciliation ‐ Account Recon services are provided as part of Opus Bank’s Positive Pay services, pricing for which is included via the Bid Sheet / Attachment B. • Courier services ‐ Opus Bank partners with Loomis for the purpose of Courier services, pricing for which can be provided separately from this proposal upon request. • Lockbox services ‐ Basic maintenance and per item pricing provided via the Bid Sheet / attachment B. A more comprehensive proposal would be provided should the City decide to move forward with this service. • Payment of financial system upgrades and fees through use of service charge credits. In order to enhance our banking/financial processing capabilities, we may wish to pay for these fees through service charge credits. ‐ Should the City decided to move forward with Opus Bank, the projected excess earnings credits would work to cover the addition of any of the selected recommended services (Positive Pay / RDC), as well as the purchase of related hardware (check scanners). Once The City has been a client for six months, Opus Bank would evaluate the excess earnings credit accumulated, and meet with the City to discuss the potential use of said credits for other banking related 3rd party services, such as the development of BIAS, or other accounting software. • Other services provided by your institution that would be beneficial to the City of Arlington, but have not specifically been addressed. Please itemize on the Bid Sheet form in Attachment B. BANKING SERVICES PROPOSAL | 38 Online Banking: The financial institution will provide the City with access to internet on‐line banking, which, at a minimum, will include the following capabilities: Secure, dual administration (separation of duties) for initiating and approving user access, permissions, wire transfers, ACH transfers, template setups, etc. ‐ Available. Future dated wire transfers and ACH transfers. ‐ Both options are available. Ability to identify via on‐line reporting, by numeric code or text, the originating location of deposits made by City departments. ‐ Available, but would require encoded deposit slips (the order of which could be facilitated by Opus Bank). Image viewing of deposit tickets ‐ Available. Image viewing of cancelled checks ‐ Available. Image viewing of Positive Pay exception items ‐ Available. Stop payments ‐ Available. Funds transfers between accounts ‐ Available. The City shall not be charged or penalized for an overdraft if it is the result of the account balance information not being available at the specified time. ‐ An overdraft fee would not be assessed. The financial institution will provide float information on all deposited items. ‐ Available. Electronic Federal Tax Deposit System: The financial institution will provide the ability for automatic withdrawal of payroll taxes by the Internal Revenue Service (IRS). Opus Bank will allow for such withdrawals; however it should be noted that with ACH Positive Pay in place, the withdrawals may have to be reviewed / approved the first time they’re deducted from an Opus Bank account after the banking conversion. Services Not Provided: In the event that the primary proposing financial institution does not provide all requested services included in this RFP, the financial institution will submit as part of its proposal additional partners/providers which do provide these services. It is the sole responsibility of the primary financial institution to secure and maintain the relationship with any additional providers. The primary financial institution, at the time of bid submittal, will identify all secondary providers. Services Provided: In the event that the primary proposing financial institution provides services not identified, the financial institution will include those items in the Bid Sheet under the Charges for Services Not Identified Above section. *** BANKING SERVICES PROPOSAL | 39 Bid Sheet: Attachment B Services Unit Price Estimated Monthly Volume Monthly Charge Explanation General Services Account Maintenance $15.00 2 $30.00 Banking Center Deposit $1.55 24 $37.20 BBD/Night Drop Deposit $1.55 Deposit Correction non-cash $3.00 1 Vault Deposit $2.15 Item Processing Deposit N/A Need additional detail Debits Posted-other $0 No charge General Checks Paid Truncated $.16 216 $34.56 Returns-Chargeback $10 5 $50.00 Returns-Reclear $0 No charge Returns-Reclear Services $0 No charge Cks Dep Pre-encoded Items $.16 Cks Dep Un-encoded Items $.16 1953 $312.48 Debits Posted-Electronic $0 48 $0 No charge Credits Posted-Electronic $0 136 $0 No charge Deposit Account Statements $0 4 $0 No charge (online PDF) Commercial Dep-Cash Vault Curr/Coin Dep/$100-Bkg Ctr $.125 Curr/Coin Dep/$100-Vlt $.00748 Per deposited bill Coin Supplied/Roll-Vlt $.10 Currency Supp/$100-NonStd-Vlt $0 No charge (in addition to per order fee) Currency Supp/$100-Std-Vlt $0 No charge (in addition to per order fee) Change Order-Auto-Vlt $6.00 General ACH Services ACH Optional Rpts-Electronic $0 18 $0 No charge ACH Delete/Reversal $0 No charge ACH Return Item $.16 4 $.64 ACH Monthly Maintenance $25.00 1 $25.00 Charged at the relationship (not per account) level ACH Input-Echannel $10.00 5 $50.00 Per uploaded file Delete/Reversal Batch/File $0 ACH Notify of change (NOC) $0 No charge BANKING SERVICES PROPOSAL | 40 ACH Standard Rpts-Electronic $0 4 $0 No charge ACH Pre-Note $.16 ACH Blocks Auth Instructions $0 33 $0 No charge ‐ with ACH Positive Pay there is a one‐ time $5 set‐up fee per optional filter ACH Blocks Auth Maintenance $12.00 1 $12.00 This fee is waived should check positive pay be implemented ACH Consumer on US Credits $.16 52 $8.32 ACH Consumer off US Credits $.16 239 $38.24 ACH Credit Received Item $.16 134 $21.44 ACH Debit Received Item $.16 50 $8.00 Wire Transfer Maint Basic $25.00 1 $25.00 PHN Wire Rept Template Storage N/A Templates are stored online only, at no cost Cust Mnt Temp Storage $0 Elect Wire Out-Domestic $15.00 Incoming Domestic Wire $11.00 2 $22.00 Elect Wire Out-Book DB $0 Internal book transfers are available at no cost Wire Advise-Mail $0 2 $0 Wire advices are available online at no cost Image Image Archive-90 Days $0 241 $0 No charge Image Archive-1 year $0 No charge Image Maintenance $0 3 $0 18 months of access is available at no cost Image Retrieval $0 No charge Electronic Statements $0 No charge Supplies Endorsement Stamps TBD Purchased via Superior Press (vendor) Deposit Books TBD Purchased via BANKING SERVICES PROPOSAL | 41 Superior Press (vendor) Plastic Bags per 100 TBD Purchased via Superior Press (vendor) Charges for Services Not Identified Above Express Tax Services N/A Not available ‐ can discuss additional options upon implementation Express Tax PC Tax Deposit N/A 2 Mailed Tax Deposit Receipt N/A 2 Recommended Services: Positive Pay Positive Pay Maintenance $25 1 $25 Payee Match Module $5 1 $25 Positive per Item (w/ payee) $.08 216 $17.28 Remote Deposit Capture RDC Monthly Maintenance $25 1 $25 Multi-feed RDC Scanner (purchase) $75 1 $75 First 12 months only Per RDC Scanned Item $.16 1953 $312.48 Would replace branch deposited per item above Per RDC Deposit $1.50 27 $40.50 Would replace branch per deposit above Requested via Scope of Services: Lockbox* Lockbox Set-up (one time) fee $80.00 1 $80.00 Lockbox Monthly fee $150.00 1 $150.00 Lockbox Per Deposit $.035 1953 $68.36 Per check deposited Lockbox Per Item $.40 1953 $781.20 Lockbox Document Image Capture $.16 Per document Lockbox Check Image Capture $.065 1953 $126.95 Per check Lockbox Online Access $200 1 $200.00 For 1,000+ items *Additional lockbox charges could apply, a comprehensive proposal can be provided upon request. BANKING SERVICES PROPOSAL | 42 Side by Side Comparison Because the City provided a December 2015 analysis statment, Opus Bank has created the following side by side price comparrison, which reflects the special ECR Of .75%, and the projected elimination of all analysis charges associated with the City’s current banking services. It also reflects an excess earnings credit that would work to offset the addition of Opus Bank’s reccomended services, Remote Deposit Capture (RDC) and Positive Pay. BANKING SERVICES PROPOSAL | 43 Attachment B Continued ‐ Formulas: Daylight Overdraft Formula: There will be no fees imposed for daylight overdrafts. A daylight overdraft would occur on a business day during normal banking hours when, as items are negotiated for payment or transactions are processed via Business Online Banking, an account balance falls below $0.00 but when the balance is returned to $0.00 or greater prior to the close of business on that same business day either by automated sweep, advance from a line of credit or book transfer. That said, Opus Bank takes the approach to work with their clients; we would of course monitor the City of Arlington’s accounts and work closely with the City on any daily overdraft situations. Overnight Overdraft Formula: Non‐Sufficient Funds (Overdraft and Returned Item Fees) of $30 per item ‐ This fee applies to items presented against non‐sufficient funds whether we pay the item and overdraw your account or return an unpaid item. We will not impose this fee on a transaction amount of $10 or less. FDIC Insurance Formula: Fees associated with the cost of FDIC Insurance are charged at a rate of $0.10 per $1000 of average collected balances during each statement cycle. The standard statement cycle for commercial business checking accounts coincides with each calendar month. Example: Average collected balance (during cycle) = $100,000; $0.10 x 100 = $10 fee Service Charge Credit Formula: Please see Exhibit 5. The undersigned, an institution or firm maintaining branch/office operations within the city limits of Arlington, Washington, submits the following proposal for the City’s banking services for the period April 1, 2016 through March 31, 2019: Authorization: Opus Bank 2/29/2016 Institution Name Date 188 106th Ave. NE, Suite 690 425‐956‐1122 Mailing Address Phone Number BANKING SERVICES PROPOSAL | 44 Bellevue, WA 98004 425‐455‐2326 City, State, Zip Fax Number Brittany Loyear Director, Treasury Management Officer By Title Contact Name (if different from above) Contact Phone Number Presented To City of Arlington, WA February 29, 2016 Randy Teddy, CTP Treasury Management Consultant 1420 Fifth Avenue Seattle, WA 98101 206.344.2151 randal.teddy@usbank.com Laurie Baker, VP Relationship Manager U.S. Bank Government Banking 101 S. Capitol Blvd., Ste. 1500 Boise, ID 83702 208.308.0127 laurie.baker1@usbank.com Sam Griffith, AVP Branch Manager Community Banking 17110 Smokey Point Blvd. Arlington, WA 98223 360.653.5313 samuel.griffith@usbank.com U.S. Bank City of Arlington, WA Our Offer U.S. Bank offers the following to the City of Arlington: Earnings Credit Rate (ECR) to offset the City of Arlington’s service fees. With interest rates at historic lows, this allows the City of Arlington to get more purchasing power from its balances. U.S. Bank’s offered ECR is Average Fed Funds Flat with a floor of 35 basis points, or .35%. Transition Bonus of $4,000 that can be used to offset cost to the City of Arlington for printing, etc. No start up implementation costs, a savings of up to $1,000. New Service Bonus of $1,500 for new services added within the first year! Should the City of Arlington add services, U.S. Bank would calculate the increased monthly average balance to offset the associated fees. SinglePoint online banking program. Our award-winning, easy-to-use program will allow the City of Arlington to self-manage all banking needs. Fraud protection services, including payee positive pay, ACH filters and blocks. Confidentiality Agreement This proposal may contain certain nonpublic information about U.S. Bancorp and its subsidiaries and affiliates that we deem proprietary and confidential. By accepting these materials, you agree to use this information only to evaluate the proposal and to hold this material in confidence, sharing it only with your employees and advisors on a need-to-know basis. By your acceptance of these materials, you also acknowledge that U.S. Bancorp is not committing to extend credit or render services to you or any other person. For purposes of this proposal, we may have relied upon financial information provided to U.S. Bancorp by your authorized representatives or officers. You agree that U.S. Bancorp is not responsible for the completeness or accuracy of such information. This proposal has been prepared for discussion purposes only and may not be relied upon by any third party. This proposal represents the basis for a proposed business relationship and is not a contract for services. The pricing quoted in this proposal is effective for 120 days following the submission of this proposal. The terms of this bid, if accepted will be in effect for an initial three (3) year term. Either party may terminate the General Banking Services at any time upon 30 days prior written notice. The U.S. Bank Earnings Credit Rate is bank managed and is subject to review and change. With the changing Federal Capital Liquidity costs, U.S. Bank will be reviewing the collateral needs and Earnings Credit Rate on a frequent basis. U.S. Bank is requesting a maximum balance of $1,095,000 on all combined balances with the depository. All remaining balances may be invested to allow the City to increase earnings. In the event that Federal Capital Liquidity costs change, this may result in a pass thru assessment for the cost of collateral. Earnings Credit is our bank managed rate currently at 35 basis points. Transition Bonus: $4,000 New Service: $1,500 ______________________________________________________________ In an effort to conserve natural resources, this proposal has been produced on minimum 30% recycled paper. U.S. Bank City of Arlington, WA Cover Letter February 29, 2016 City of Arlington, WA Kristin Garcia, Finance Director 238 N Olympic Avenue Arlington, WA 98223 Dear Ms. Garcia, On behalf of U.S. Bank, thank you for the opportunity to present our response to the City of Arlington (the City) banking services proposal. U.S. Bank has a full and complete understanding of the requirements and is able to meet all the specifications as outlined by the City. Our proposal offers solutions to minimize banking costs; improve operational efficiency and maximize earnings. We offer a full service banking relationship that includes credit relations, safekeeping solutions, merchant solutions and bond payee services. In selecting a banking partner the City will most certainly be looking for the provider who offers the best value. In search of value, you may consider price, qualifications, experience, service, capability, financial strength and credit relations. We believe that the best value comes from the most appropriate combination of these factors. The City will encounter excellence in banking services by establishing a partnership with U.S. Bank. In this response to your Request for Proposal, you will find U.S. Bank delivers on each of your primary objectives and introduces smart solutions to add efficiency and savings. A Trusted Advisor - U.S. Bank is committed to earning your business and your trust. The City may be assured that the individuals you work with at U.S. Bank are familiar with the unique needs and requirements of the City. The commitment of your Relationship Manager and a coordinated Relationship Team who understands the needs of public clients gives you an advocate with industry specific expertise, providing: • Appropriate solutions and important industry information for consideration • A consultative partnership focused on workflows and their associated cash flows • Industry-leading solutions designed to help increase process efficiencies and maximize your FTE utilization This experience in the public sector also allows issues or concerns to be addressed and resolved quickly. Knowing who to call, coupled with an expectation for satisfaction, is a powerful statement of trust in a true partnering relationship. U.S. Bank began key banking partnerships with local, state and federal governmental entities more than 150 years ago. The Government Banking Division represents a part of our industry specialization within the Bank. By focusing strictly on the needs of public entities, our clients indicate we bring added value through the ability to share solutions among peers that are themselves part of a unique customer segment. U.S. Bank City of Arlington, WA A Truly Consultative Approach The City will find our consultative approach to delivering specific services is reflected in our tailored solutions and value optimization for your evolving needs. Our client focus is supported by U.S. Bank’s disciplined operations, and more customized solutions. Further, you can be assured you are partnering with a financially sound institution, as exemplified by U.S. Bank’s high credit ratings. An Institution of Unequaled Stability Within the constraints of the current U.S. economy, public agencies are under increased scrutiny. We understand that, your constituents are more demanding of you services and agency accountability. We know that governments are feeling the pressure to do more with less. We believe the City wants a strong, seasoned, and trusted banking partner to rely on. U.S. Bank is that partner. We are consistently one of the strongest financially performing banks in the United States, ranked among the top U.S. bank holding companies based on several key measures of profitability and efficiency. U.S. Bank has been repeatedly recognized both nationally and worldwide for our strength and integrity. Fortune Magazine’s 2011, 2012, 2013 & 2014 ranking of the World’s Most Admired Companies named U.S. Bancorp as this year’s Most Admired Company in the Superregional Banks category. With compelling solutions and attractive price, U.S. Bank can meet the City’s requirements in full. Your U.S. Bank team is ready to examine processes in a manner to create solutions that add efficiency and reduce cost. U.S. Bank asks for the privilege of serving the City, and we look forward to working with you and your team. Thank you for your consideration. Respectfully submitted, Vice President Treasury Management Consultant 1420 Fifth Avenue Seattle, WA 98101 (206) 344-2151 randal.teddy@usbank.com Laurie Baker Vice President Government Banking Relationship Manager 101 South Capital Blvd., Ste. 1500 Boise, ID 83702 (208) 308-0127 laurie.baker1@usbank.com Assistant Vice President Branch Manager Community Banking 17110 Smokey Point Blvd. Arlington, WA 98223 360.386.3431 samuel.griffith@usbank.com “The upgrade of USB’s ratings is reflective of an institution that for several years now has set itself apart from peer institutions due to a number of competitive advantages and a strong operating culture. This has led to better earnings and credit performance than nearly all peer banks over multiple operating cycles, and Fitch believes USB is taking steps to extend its advantages compared to peer institutions.” - Fitch Ratings October 2015 U.S. Bank City of Arlington, WA Table of Contents Cover Letter .................................................................................................................................... Table of Contents ............................................................................................................................ Tab 1 – Banking Services Questions/Statements.......................................................................... 1 Tab 2 – Statement of Financial Institution Qualifications .......................................................... 47 Tab 3 – Non-Collusion Affidavit Certificate .............................................................................. 49 Tab 4 – Attachment A – Scope of Services ................................................................................ 50 Tab 5 – Attachment B – Bid Sheet ............................................................................................. 74 Tab 6 – Attachment C – Banking Services Agreement .............................................................. 81 Tab 7 – Exhibits .......................................................................................................................... 87 U.S. Bank City of Arlington, WA Tab 1 – Banking Services Questions/Statements Please provide your responses to the items below in the order presented. 1. Provide the names of individuals, with phone numbers and e-mail addresses, who will be working on the proposed services and their areas of responsibility including their specific experience relative to the request for proposal requirements. TREASURY MANAGEMENT CONTACT Randal Teddy, CTP Vice President Treasury Management Client Manager 1420 Fifth Ave Suite 1100 Seattle, WA. 98101 Phone: 206.344.2151 Fax: 206.344.2331 randal.teddy@usbank.com Randal joined U.S. Bank in 1993. PROFESSIONAL EXPERIENCE: • Treasury Management Client Manager - 2013 to present • Client Manager - 2006- 2013 • Correspondent Banking – 2000 – 2006 • Sales Trainer- 1998 - 2000 • Various Branch Positions - 1993 - 1998 EDUCATIONAL EXPERIENCE: • Bachelor Of Arts – George Fox College AREAS OF EXPERTISE: • Certified Treasury Professional • Customer Service U.S. Bank City of Arlington, WA GOVERNMENT SPECIFIC PRIMARY CONTACT Laurie Baker Vice President Government Banking Relationship Manager 101 S. Capitol Blvd., Ste. 1500 Boise, ID 83702 Phone: 208.308.0127 Fax: 208.737.5117 laurie.baker1@usbank.com Laurie Baker is a Relationship Manager for U.S. Bank’s Local Government Banking Team - Nevada. Laurie began her banking career with U.S. Bank in 1996. PROFESSIONAL EXPERIENCE: • Government Banking Relationship Manger - 2006 to present • Treasury Management Partner - 2006 - 2004 • Branch Manager – 2002 – 2004 • Sales Manager 2000 - 2002 • Personal Banker - 2000 - 1996 EDUCATIONAL EXPERIENCE: • Bachelor of Science – University of Nebraska • Associates of Ag – Chadron State College • Taichung Language School – Tai Chung, Taiwan GOVERNMENT BANKING CLIENTS INCLUDE: • Port of Sunnyside, WA • City of Liberty Lake, WA • City of Maple Valley, WA • City of Union Gap, WA • City of Mukilteo, WA • Kittitas County Reclamation, WA AREAS OF EXPERTISE: • Office of Controller of Currency, Deposit Regulations and Compliance • NACHA rules • Treasury Tools • U.S. Bank City of Arlington, WA LOCAL BRANCH PRIMARY CONTACT Sam Griffith Assistant Vice President Branch Manager Arlington Office 17110 Smokey Point Blvd. Arlington, WA 98223 Phone: 360.653.5313 samual.griffith@usbank.com Samuel Griffith, AVP Branch Manager at U.S. Bank’s Smokey Point Office in Arlington Washington. Samuel joined U.S. Bank in 2008 Professional experience: • Branch Manager- 2012 to present • Small Business Specialist- 2010-2012 • Personal Banker- 2008-2010 Educational Experience: • BA – Charter University Areas of expertise: • Consumer Lending • Small Business Banking • Small Business Lending • MERCHANT SERVICES CONTACT Michael Hodge Government Sales Executive U.S. Bank Payment Solutions 555 SW Oak St., Ste. P700 Portland, OR 97204 Phone: 503.464.4858 Fax: 678.731.3630 michael.hodge@usbank.com He possesses over 20 years of experience in this field. consultation regarding matters of security, technologies, compliance and regulatory items. Services and owned a privatel wholesale distribution business. Michael attended Drake University emphasis study Economics and Finance. Michael works exclusively with Government/Public Sector meet, but exceed the spent the past 30 years managing relationships. PROFESSIONAL EXPERIENCE: ■ Regional Sales Manager for Government and Public Sector 1995 to present. EDUCATIONAL EXPERIENCE: ■ Attended Drake University, Des Moines IA. Emphasis in Economics and Finance. GOVERNMENT BANKING CLIENTS: ■ State of Alaska ■ City of Bellingham, WA ■ City of Olympia, WA ■ City of Renton, WA ■ City of Yakima, WA U.S. Bank City of Arlington, WA Commercial Customer Service provides a premier level of service on your depository, loan and treasury management products. Our specially trained staff will respond to both routine and complex inquiries through on-line access to the bank's many systems and product databases. Our Service Bankers take ownership of your inquiry with final resolution often occurring during the initial call. More complex issues are personally managed and tracked by the service banker until resolved. You may contact Commercial Customer Service when needed to ensure the most appropriate action is taken and your satisfaction is achieved. GOVERNMENT CUSTOMER SERVICE TEAM NORTHWEST REGION 1420 Fifth Ave. Seattle, WA 98101 800.346.2249 toll free 877.324.1677 toll free fax Commercialcustserviceseattle4@ usbank.com - Mark Buchanan, Team Leader– Mark joined U.S. Bank in January 2010. He has held many bank operational positions spanning Teller up through Team Lead. For 10 years, Prior to joining U.S. banking industry - Evangeline Abanes, Commercial Service Banker – 24 years banking experience working in operations and customer service, the l Customer Service. - Arlene Baluca, Commercial Service Banker – 22 years seven years. - Joan Bautista, Commercial Service Banker -- Customer Service for the past five years. - Lisa Dolan, Commercial Service Banker -- servi which have been in U.S. Bank Commercial Customer Service. - Christina “C.J.” Garry, Commercial Service Banker – 20 years banking experience w Bank Commercial Customer Service. - Racheal Williams, Commercial Service Banker – 15 years banking experience working in operations and customer service; U.S. Bank Commerc 5 years. AREA OF EXPERTISE: SinglePoint® Training, day to day operations, adjustments, manual wires and stops payments, transaction research. That’s an average of 23 years of banking experience U.S. Bank City of Arlington, WA 2. Submit at least three (3) references (preferably from current local government customers) who can attest to the financial institution’s experience as it relates to providing banking services. The references must include contact name, title, address, e-mail address, telephone number and services used. Company City of Oak Harbor Contact Name and Title Address E-mail Telephone Number Services Used Company City of Bellingham Contact Name and Title Brian Henshaw, Finance Director Address 210 Lottie Street – Bellingham, WA 98225 E-mail bhenshaw@cob.org Telephone Number 360-778-8036 Services Used SinglePoint (information reporting, stop payment, wires, positive pay including teller & payee, external messaging Company City of Sedro Woolley Contact Name and Title Patsy Nelson, Finance Director Address 325 Metcalf Street - Sedro Woolley, WA 98284 E-mail pnelson@ci.sedro-woolley.wa.us Telephone Number 360-855-1661 Services Used SinglePoint Essentials (information reporting, stop payment, ACH and reports), Zero Balance Accounts Company City of Port Angeles Contact Name and Title Byron Olson, Chief Financial Officer Address 321 E. 5th Street - Port Angeles, WA 98362 E-mail finance@cityofpa.us Telephone Number 360-417-4600 Services Used SinglePoint (information reporting, stop payment, wires, positive pay including teller & payee and reports), Zero 3. Describe your institution’s community participation/reinvestment program. U.S. Bank makes it a priority to be a catalyst for positive change in the communities we serve. By investing our time, knowledge and financial resources in local projects, programs and organization, U.S. Bank helps transform communities. U.S. Bank City of Arlington, WA U.S. Bank enjoys close partnership with hundreds of organizations across our 24-state banking region. These partnerships allow us to help bring about significant change within our communities. Efforts to which U.S. Bank contributes include: ■ Funding affordable housing projects ■ Fostering economic revitalization, and ■ Providing extensive training and education to small businesses, consumers and first- time homebuyers Our record demonstrates a firm commitment to providing financial and leadership support to national and regional equity funds. U.S. Bank actively invests in Low-Income Housing Tax Credits projects to further energize the creation of affordable housing units. This impressive record proves that the success of our communities is success for us all. All communities are interdependent, and as one flourishes, so does the next. U.S. Bank CRA Rating: This institution is rated Outstanding. Performance Levels U.S. Bank National Association Performance Test X X X U.S. Bank National Association is proud to have been awarded an “Outstanding” rating for its commitment to the letter and the spirit of the Community Reinvestment Act (CRA). This is the highest possible rating given by the Office of the Comptroller of the Currency (OCC). The OCC reported that we were “Outstanding” in all three CRA categories, giving U.S. Bank National Association an “Outstanding” in the lending, investment and service test. At U.S. Bank, developing communities’ means investing in people and their hopes and dreams for the future. By providing products and services that meet the diverse needs of our communities- such as our innovative mortgages program for first-time homebuyers- U.S. Bank is helping to provide a social and economic foundation for achieving affordable housing, productive small businesses, and culturally vibrant communities. It is a big goal, one we can’t achieve alone. That is why U.S. Bank works in partnership with organizations throughout the Seattle, Bellevue and Everett region; this includes Arlington in Snohomish and King Counties. We focus on helping to develop affordable housing economic revitalization, or provide training and education to small businesses, consumers Bank On, BankWorks programs, Individual Development accounts to build assets, and first-time homebuyers. It is also, why we are committed to proving financial and leadership support to national and regional equity funds as well as actively investing in Low Income Affordable Housing Tax Credits projects to further support the creation of affordable housing units. U.S. Bank City of Arlington, WA We firmly believe that when our communities succeed, we all succeed. That’s what community development at U.S. Bank is all about and it’s integral to the way we do business and a true investment. 4. Describe your institution’s customer service philosophy and organizational structure and provide meaningful examples to illustrate. U.S. Bank’s commitment to best-in-class customer service has been the hallmark of our company for generations. Our “All of US Serving You” brand line reinforces our company’s core objective to deliver exceptional service experiences to our customers. At U.S. Bank, we promise to deliver exceptional service with every transaction, every customer, and every time. We’re working together every day to understand our customers’ needs and goals so we can recommend solutions that serve them best. Our goal is to deliver an excellent customer experience that makes our clients feel valued and helps them succeed. Whether your business is global or your world is local.... you don't just get one of us, you get all of us serving you. Customer service organizational structure U.S. Bank’s customer service approach is distinctive with our dedicated Commercial Customer Service (CCS) that specializes in governmental clients. CCS provides a premier level of service to customers to include timely, thorough and responsive measures which insure customer satisfaction. A specially trained service staff responds to both routine and complex inquiries through on-line access to the bank’s many systems and product databases. With the introduction of a Lotus Notes based call-tracking system, anyone in CCS readily can respond to either new or historical issues. This saves our customers valuable time and allows the bank to identify service and quality trends with an eye toward improvement. CCS personnel take ownership of the customer’s inquiry with final resolution often occurring during the initial call. More complex issues are personally managed and escalated, if necessary, and tracked by the Commercial Service Banker (CSB), who took the initial call, until resolved. Our twenty-four hour servicing guideline insures that the customer receives a call with a complete response, an estimate of additional time required or a request for the submission of documents to satisfy more complex issues, when necessary. Commercial Customer Service is staffed to provide coverage for our nationwide client base with representatives available from 8:00 a.m. to 6:00 p.m. MT. Our voice mail system allows you to leave messages after business hours so you may be assured your inquiry will be logged and activated at the beginning of the next business day. Dedicated Customer Service Team: Our Commercial Customer Service (CCS) Team is your day-to-day contact for all problem resolution and ongoing service maintenance of your banking relationship. Whenever you call CCS during business hours, a person will answer the phone. U.S. Bank City of Arlington, WA Our team will answer questions, complete adjustments, provide fraud resolution, and facilitate the accurate and same-day approach to service. The City may contact CCS when needed, to ensure the most appropriate action is taken and your satisfaction is achieved. It is U.S. Bank’s intent to resolve all issues on a same-day basis. Please see below a sample of services provided by Commercial Customer Service. Commercial Customer Service Servicing • • Assist with fraud issues • Open and close accounts • Correct deposit errors and provide correction documentation • Issue stop payments • Transfer funds • Perform routine maintenance, such as address changes, special handling requests, returned items • Provide copies of specific transactions at your request • Research errors, missing deposits, etc. • Treasury Management Services • • Deposit Reconciliation • Full/Partial Reconciliation and Positive Pay • • E-Payments • Focal Point Plus • Interstate Banking • Lockbox • On-site Electronic Deposits • • • Bill Consolidator Payments • Controlled Disbursement • EDI (Electronic Data Interchange) • Wires • • • • Deposit ticket images • Deposited item images • Adjustment images • Meaningful examples As an example of our customer service, the last three calls to CCS from a single customer were related to SinglePoint. One call was an issue with their token, where the customer’s employee was unable to get into the needed module and CCS assisted in unlocking the token. The problem was resolved within minutes of receiving the call. The second call was a question about an encoding error on a check number. U.S. Bank City of Arlington, WA The customer was worried the real check would reject. CCS showed the customer’s employee where to look in SinglePoint to find the correction U.S. Bank made on the encoding error. She was reassured the real check would post with no problem. The last call was on a check that appeared to have posted to their account when a cancel was issued. The CCS representative told her that it was returned “refer to maker” and showed her in SinglePoint how to find that information. All three calls resolved the callers’ issues while on the phone with no delay in their work processes. A City in Washington had a deputy finance director out ill for several days. Their debt service payment to the Bank of NY was over looked. They received a call from the BNY on the due date. The City called the RM and Commercial Customer Service, the debt payment was sent out immediately and made the time frame of before close of business NY time that day. Municipal Client sent their payroll file to be payable on a holiday, not realizing it was a holiday, until the day before. The client called CCS requesting options – the ACH file was pulled back and the ACH file was converted into a Batch Wire File, sending all the payroll out via wire same day, therefore everyone was paid on time. Based on these calls, CCS not only resolves issues, but they take the opportunity to train your employees with the tools already in place to assist with their day to day efficiencies. Commercial Customer Service’s promise to you We promise to be accessible to you between 8 a.m. and 5 p.m.—you will not have to leave a message—we will answer your phone call in person If you choose to leave a message with an individual, send a fax, or send an e-mail message, we promise same day response if received before 3 p.m. We will take ownership of your request and follow it through to resolution We promise that you will always have an opportunity to work with more than one Commercial Service Banker who is knowledgeable and will take responsibility for your request. We guarantee same day completion of banking transactions initiated through Commercial Customer Service within our published timeframes. 5. Provide the following reports and information about your institution: a. Online reporting sample reports A series of reports that are available on our SinglePoint Information Reporting Service can be found in the Exhibits Section of this proposal. b. Monthly account analysis & bank statement SinglePoint® Information Reporting will provide the City with access to monthly account analysis statements no later than the 7th business day of each month. Statements can be retrieved online in PDF, TXT and CSV formats. Account analysis U.S. Bank City of Arlington, WA paper-based statements are mailed no later than the 9th business day of the month. Formats available include PDF, TXT and CSV. U.S. Bank SinglePoint® will maintain a rolling 12-month archive of the City’s account analysis statements at all times. If your statement is changed or re-analyzed for any reason, a revised analysis will be available for view, print or download the following morning. Please see the Exhibits Section to view a sample Analysis Statement from U.S. Bank. SinglePoint® Information Reporting will provide the City with access to monthly bank statements no later than two days following the statement cut-off date. Bank statements can be retrieved online in PDF, TXT and CSV formats, paper-based statements are mailed no later than the 5th business day of the month. In addition, U.S. Bank SinglePoint will maintain a rolling 12-month archive of the City’s bank statements, making them easily accessible for City staff and auditors. Please see the Exhibits Section to view a sample bank statement from U.S. Bank. c. Monthly merchant services report Our www.merchantconnect.com website provides sample reporting and other information to assist our Elavon Merchant Clients. d. Most recent financial statement U.S. Bank’s most recent annual report is provided as requested; additional reports and financial documents can be accessed online at: Our most recent Annual Reports can be accessed online at: http://phx.corporate-ir.net/phoenix.zhtml?c=117565&p=irol-reportsannual The Bank’s quarterly earnings reports can be found: http://phx.corporate-ir.net/phoenix.zhtml?c=117565&p=irol-quarterlyearnings e. SEC and/or Moody’s credit rating or comparable rating U.S. Bank’s outstanding Debt Ratings can be viewed on the following pages. U.S. Bank City of Arlington, WA 6. Provide a funds availability schedule. Describe one day, two day availability and wire requirements. Availability is assigned based on the availability schedule of the local depository site. U.S. Bank is able to identify all float and availability associated with each deposit, regardless of deposit location, as is illustrated on the Previous Day report provided by U.S. Bank’s information reporting products. U.S. Bank is proud to offer our most aggressive funds availability schedule to the City of Arlington. Please see the Exhibits Section of this RFP to view our Premier Funds Availability schedule. We will credit the City’s account for all incoming wires received before 3 p.m. PT each business day. U.S. Bank’s Wire Transfer department will stay open to receive and process incoming wire transfers if Fed-wire hours are extended. 7. Describe your Balance Reporting systems and availability. a. What systems does the bank use to deliver balance and transaction detail information? SinglePoint, which is featured throughout this proposal, is U.S. Bank’s comprehensive, web based, information reporting and transaction initiation tool. SinglePoint was created in-house by U.S. Bank based on customer needs and suggestions. With the help of our customers, we have created a friendly online treasury management system to meet our customer’s needs. Customer feedback has become the backbone of this online system’s continual development. SinglePoint is browser-based; therefore, no additional software is required. In general, SinglePoint is tested and certified for Windows environments and its suite of services provides the ability to: U.S. Bank City of Arlington, WA • Monitor Account Activity • Access Images • Transfer Money • Prevent Fraud • Control Access and Stay Informed SPT ID and Password have changed ID: easy12 Password: all4u U.S. Bank’s SinglePoint on-line business portal provides many options for the City to receive account detail. The reporting includes previous and current day reporting of all transactions as well as specific types of transactions like ACH and wire transfer detail. User access to reports is configured by an administrator at the City and can be modified by the administrator as needed. b. What time is previous day information available for access by the customer? U.S. Bank currently provides online banking with daily reporting for previous and current intraday reporting of ACH and wire transactions by 6:00 am daily, twenty four hours (24) a day seven (7) days a week. c. What are the hours of access of the Balance Reporting system? Previous and current intraday reporting of ACH and wire transactions by 6:00 am daily, twenty four hours (24) a day seven (7) days a week. d. Does the bank provide current day information? Yes, SinglePoint Information Reporting may be configured to include current day reporting for the City. i. How frequently is this information updated throughout the day? U.S. Bank City of Arlington, WA Type of Data Update Schedule Wire transfer information Updated continuously and in real time. ACH data Updated twice during business hours: 5:00 am and 7:00 am PT. Deposit reporting (Book transfers) Continuous and updated according to site-specific schedules. Lockbox Continuous and updated according to site-specific schedules. ii. What transaction types are available on current day reports? Transaction types reported in current day reporting include: • ACH transactions • Wire transfer transactions • Controlled Disbursement Check Debits • Lockbox Deposit • Other Paper Deposits • Book Transfer e. Describe the level of detail provided in previous and current day reports? Previous Day Summary & Detail Current Day Summary & Detail Opening Ledger Balance 3 Day + Float Interim Ledger Balance Total Credits Collected Balance + 1 Day Float Number of Credits Interim Collected Balance Total Debits One Day Float Number of Debits 2 Day Float Detailed Transaction List f. How many days of history can be accessed through the system? Standard report retention of 45 days; 10 days for current day reports. Extended retention is available upon request. Its robust filtering enables the City to create customized reports. g. In what format is information available? U.S. Bank City of Arlington, WA Current and previous day reporting is available in a variety of exportable formats, including, BAI2, Excel, and CSV. h. Provide a sample printout of the daily on-line balance information. Please see the Exhibits Section of this RFP for details. i. What is your process of providing a customized report for your clients? SinglePoint will allow the City to create custom reports based upon your specified criteria. 8. ACH Services: a. What is the recommended service delivery method (i.e. direct transmission, on-line, or other)? Does system have ability to integrate files from our CIS/FIS systems? Is standard formatting used? As one of the top ten largest originators of ACH transactions in the United States, U.S. Bank is able to offer the City of Arlington a variety of ACH services that allow you to decrease or eliminate paper checks by using electronic payments. ACH is both cost- effective and secure. There are two ways in which the City can send ACH files to U.S. Bank. They are: ACH Direct Transmission - ACH files created on the City's application systems can be transmitted to U.S. Bank in NACHA format with a high level of security and reliability. Files sent to ACH by 8:30 p.m. PT are processed on the same day. SinglePoint ACH – Provides the City with complete online management and processing of ACH files. SinglePoint is U.S. Bank’s one stop internet-based treasury management application. SinglePoint puts the City of Arlington just clicks away from ACH processing and other payment options such as wire transfers and book transfers. Transaction data is stored on-line by U.S. Bank, accessible 24 hours a day/7 days a week. ACH Files that have been initiated and approved in SinglePoint by 7:00 p.m. PT are processed on the same business day, regardless if the file effective date is one or two business days in the future. Additionally, U.S. Bank accepts and processes same- day effective-dated files originated through SinglePoint ACH services for transactions exclusively between U.S. Bank accounts. i. What are the hardware/software requirements? Direct Transmission requirements: U.S. Bank supports a variety of methods for customers to transfer data files to and from U.S. Bank. All can work with any treasury management product that requires incoming or outgoing data such as Automated Clearing House (ACH) related services, lockbox, account reconciliation, Positive Pay, information reporting, mainframe batch wire or Electronic Data Interchange (EDI). U.S. Bank supported transmission methods include five Internet-based options: U.S. Bank City of Arlington, WA • Secure Hypertext Transfer Protocol (HTTPS, Web browser based) with 128-bit SSL encryption • File Transfer Protocol Secure (FTPS-SSL) with 128-bit encryption • Secure File Transfer Protocol (SFTP-SSH) using AES 256-CBC encryption • Secure AS2 (formerly called EDI/INT) • Internet Virtual Private Network (VPN) The bank also supports VPN leased circuits over a DES3 encrypted channel, as well as value added network (VAN) transmissions. Optional PGP file level encryption is also available. SinglePoint ACH requirements: • A PC with an internet connection, with a 28.8 kps or faster modem • A browser that supports 128-bit SSL encryption: U.S. Bank recommends Microsoft Internet Explorer version 6.0 SP2 or higher, for Mac Firefox 2 is required. ii. What training does the bank provide? One of the characteristics that differentiate U.S. Bank from our peers is our implementation process. U.S. Bank dedicates an experienced professional to work with all relevant product lines and support groups to ensure all products and services are implemented efficiently and accurately. Additionally, the process will be managed on both sides through the use of a detailed implementation plan and regularly scheduled meetings. The plan outlines key dates and responsibilities, as well as implementation lead times. Our implementation process has been extremely well received and ensures a thorough, timely implementation of services to meet the City’s requirements. Customers who send ACH files via direct transmission log onto a secure website and upload the file to be processed. Step by step instructions are provided when service is released into production. Your Implementation Coordinator or Commercial Customer Service representative can walk users through a simple file upload process. SinglePoint is easy and intuitive to use. There is a detailed and context-sensitive online help function in the application. Personalized training in any or all of SinglePoint’s services is available upon request. U.S. Bank SinglePoint® Training Options Attend scheduled Webinar training sessions—Webinar training sessions are a prerequisite to individualized training requests. Scheduled online training sessions are available Monday through Friday at 11 am PT and are approximately 60 minutes long. The training session will walk through logging on, navigation, Information Reporting and System Administration. All callers are muted to protect their anonymity. Questions can be submitted through a private chat session with the trainer. Sessions are available at no charge. U.S. Bank City of Arlington, WA Request individualized training—Training topics will be tailored to your needs. There is no limit to the number of users attending. Can be accommodated via webinar or in-person at your office. Online course—You can access self-paced training eLearning course anytime, at no cost. Online demo—The detailed demo provides a convenient place to view the look and feel of most pages within the SinglePoint services. A helpful Hint area at the top of each demo page tells you what to do. Online tools within SinglePoint—Every page in SinglePoint has a link to page-specific assistance. Certain fields have a link to additional context-specific information. The SinglePoint Help Center provides information about all SinglePoint services and includes user guides in PDF format. During all testing and set up processes, the U.S. Bank team will ensure that the City has the technical assistance, training, user guides, and on-site visits necessary to ensure a successful implementation of new services. iii. Does the software offer the ability to manage security and access levels by user? Describe. The City defines security levels for SinglePoint as part of the implementation process. Security levels are set at account, function and user levels. The City can also set a dollar amount limit at the company level and individual user level for both batch initiation and approval. Additional security controls, such as locking and confidentiality, prevent unauthorized users from modifying transaction detail or initiating invalid batches. The implementation team at U.S. Bank establishes customer-defined security levels during setup. System administrators at the City may change user and account security levels using SinglePoint’s system administration service. By default, modifications by system administrators are subject to dual approval. Alternately, you may also request that implementation representatives at U.S. Bank complete desired security changes. SinglePoint allows system administrator users to modify certain ACH security settings, including: General entitlement of user access to the ACH module in SinglePoint User-level transaction limits Global template and batch approvals Account and SEC code access iv. What report options are available? SinglePoint’s Previous Day and Current Day ACH summary and detail reports are available and can be exported in BAI and CSV formats for import into other systems. These ACH reports are also available within SinglePoint and are exportable to PDF and spreadsheet formats. U.S. Bank City of Arlington, WA ■ ACH Company Daily Activity Report ■ ACH Daily Batch Summary Report ■ ACH Daily Batch Detail Report ■ ACH Template Summary Report ■ ACH Template Detail Report ■ ACH User Audit Report ■ ACH Import Error Report (PDF only) ■ ACH NOC Update Report These special reports are available from SinglePoint’s Special Reports menu in PDF format. ■ ACH Return and NOC Report ■ ACH Received Item Report ■ ACH Redeposit Report ■ ACH Settlement Report ■ ACH Filter Rejected Item Report ■ ACH Filter Authorization Report ■ ACH Transaction Capture Report ■ EDI Remittance Report v. What controls are in place to protect against lost files and duplications of transmissions? The ACH File Confirmation process detects missing files by matching the control totals reported to U.S. Bank by the customer with the transmitted files. The ACH system detects duplicate files by comparing newly transmitted files with customer files processed in the prior 30 calendar days. U.S. Bank notifies customers by phone regarding any possible duplication or loss of files. vi. Does the bank provide automatic file receipt acknowledgements? If so, how? Yes, U.S. Bank can provide an automatic file receipt confirmation within 30 minutes to one hour of receiving a customer’s ACH file. The ACH File Confirmation notification provides information from the file including: file creation date and time file ID modifier batch count entry and addenda debit and credit amount positive or negative confirmation regarding the file. For negative confirmations, customers are instructed to contact ACH Services for further assistance. Following are the confirmation options and notification processes. Confirmation Process Customer Notification Process U.S. Bank City of Arlington, WA provided file controls transmission, or by re-accessing the IVR. An error is noted if: The file totals entered on the IVR do not match the file A file was received without the corresponding IVR entry An IVR entry was received without the corresponding file. The file confirmation sent back to the customer notes that contact ACH Services. ACH Services also proactively calls the provided; reliance on the confirmation notice the confirmation notice, the notice is sent via fax, email or notice and notify U.S. Bank in the event of a problem. ACH vii. Describe the role of any third-party processor used by the bank to provide this service? Does the third party provide written report of security standards and protocols for client review? U.S. Bank engages several vendors for treasury management services, but the Bank retains responsibility for setup and customer support. U.S. Bank outsources services when the vendor offers a proven product and provides quality services. U.S. Bank currently uses these treasury management vendors: Service Vendor responsible for customer setup and (formerly called Xpedite, a US Ptek b. What are the hours of operation of the ACH unit? ■ ACH Operations has staff on site Monday through Friday from 3:00 a.m. until 10:00 p.m. PT. ■ ACH Customer Service support is available Monday through Friday from 6:00 a.m. until 3:30 p.m. PT. ■ U.S. Bank's Transmission Client Service Group is staffed 24 hours a day, seven days a week to resolve problems related to data transmissions. U.S. Bank City of Arlington, WA ■ Commercial Customer Service (CCS) for our Government Banking clients is also available to assist with ACH questions and issues that arise. Commercial Customer Service is available Monday through Friday from 7:00 a.m. until 5:00 p.m. PT. c. What are the bank’s cut-off times for customer initiation of ACH transactions? Customer Input Method Cut-Off Time Settlement U.S. Bank Accounts d. Describe the procedures used to verify accurate and secure receipt of transmissions. U.S. Bank offers touch-tone response access with validation totals followed by a confirmation from the Bank that the ACH file was received and will be processed. Customers can confirm receipt during a window beginning 30 minutes after validating control totals and ending one hour after control total validation. Customers can confirm through fax, email, transmission or manually by re-accessing the Interactive Voice Response (IVR) unit. The ACH File Confirmation notification provides information from the file including: ■ file creation date and time ■ file ID modifier ■ batch count ■ entry and addenda ■ debit and credit amount ■ positive or negative confirmation regarding the file For negative confirmations, the City would be instructed to contact U.S. Bank ACH Services for further assistance. Customers originating through Direct Transmission can access the ACH File Confirmation System by touch-tone telephone. The customer enters transaction totals as prompted by an IVR. The IVR compares entered amounts with amounts on the file and confirms matches and discrepancies within 30 minutes of submission. The control totals and file should be submitted simultaneously. The customer calls into the service and selects the confirmation option to validate entered totals. Customers can choose to bypass entering control totals prior to processing if their company’s security procedures prevent them from doing so. U.S. Bank then processes the file received from the customer with no control totals requiring reconciliation. The option to bypass entry of control totals requires the customer to receive a file confirmation through one of the notification methods and to respond to any processing issues noted in the confirmation. U.S. Bank City of Arlington, WA e. Can the bank automatically redeposit items returned for insufficient or uncollected funds? The ACH Redeposit service will allow the City to establish standing instructions based on days or dates (also known as “lags”) for U.S. Bank to automatically redeposit and represent an ACH transaction returned for non-sufficient funds (NSF) or uncollected funds (UCF). In accordance with NACHA rules, an item can be redeposited no more than two times following the return of the original entry. f. How does the bank handle file, batch, and item reversals and deletions? The City has several options for requesting an adjustment to its file, batch or items, including through fax and phone. ACH Operations then processes these requests received on behalf of the City by accessing the ACH System and creating the updated transaction using dual authorization and security procedures. All modifications are automatically reported to an audit log maintained on the ACH System. 9. Positive Pay a. What is the recommended service delivery method (i.e. direct transmission, on-line, or other)? What are the hardware/software requirements? U.S. Bank’s Direct Transmission provides the highest level of security, convenience, and efficiencies related to the delivery of Positive Pay files. Files created by the City’s application system can be transmitted to U.S. Bank via our Data Transmission Website. U.S. Bank has enhanced the security of data transmissions to include the option of Extended Security of transmission files. The City can encrypt the data prior to transmission, to extend security surrounding your incoming and outgoing data transmissions with U.S. Bank. These encrypted files are transmitted over an encrypted channel (communication session), using either private networks or the Internet, which ensures that the confidential data remains private. As an alternative to Direct Transmission, we offer on-line capabilities through SinglePoint. Direct Transmission requirements: U.S. Bank supports a variety of methods for the City to transfer data files to and from U.S. Bank. All can work with any treasury management product that requires incoming or outgoing data such as Automated Clearing House (ACH) related services, lockbox, account reconciliation, Positive Pay, information reporting, mainframe batch wire or Electronic Data Interchange (EDI). U.S. Bank supported transmission methods include five Internet-based options: Secure Hypertext Transfer Protocol (HTTPS, Web browser based) with 128-bit SSL encryption File Transfer Protocol Secure (FTPS-SSL) with 128-bit encryption Secure File Transfer Protocol (SFTP-SSH) using AES 256-CBC encryption Secure AS2 (formerly called EDI/INT) Internet Virtual Private Network (VPN) U.S. Bank City of Arlington, WA The bank also supports VPN leased circuits over a DES3 encrypted channel, as well as value added network (VAN) transmissions. Optional PGP file level encryption is also available. SinglePoint Issue Maintenance requirements: • A PC with an internet connection, with a 28.8 kps or faster modem • A browser that supports 128-bit SSL encryption b. What controls are in place to protect against lost files and duplications of transmissions? Risk Exposure U.S. Bank Control File loss transmitted to the Bank was received and processed. • File Confirmations generate within two hours of the file’s receipt. Confirmations are available through secured email or automated fax. • The File Confirmation Report provides number and dollar totals of issues and cancels. Duplicate transmissions identifying duplicate issues. SMS rejects the duplicates Inadvertent acceptance of duplicate returns from sending duplicate returns by allowing only one c. Does the bank provide automatic file receipt acknowledgements? If so, how? U.S. Bank offers an optional Positive Pay File Confirmation Service. This service verifies that the file transmitted to the Bank was received and processed. File Confirmations generate within two hours of the file’s receipt. Confirmations are available through SinglePoint Issue Maintenance File Confirmation, secured email or automated fax. The File Confirmation Report provides: The total number of issues and cancels per account The dollar amount of the issues and cancels The first and last record transmitted d. Describe the role of any third-party processor used by the bank to provide this service. U.S. Bank does not utilize any third-party processor’s to support our Positive Pay services. e. What is the bank’s deadline for transmitting files/data? U.S. Bank City of Arlington, WA The City may transmit issued and cancelled check data to U.S. Bank at any time of the day up until 7:50 p.m. PT. Our Positive Pay system updates every hour at 10 minutes to the hour. Data received after 7:50 p.m. PT will be updated the next business day. f. What is the process for notifying the bank of a single check or small check run outside of the regular batch file? SinglePoint Issue Maintenance simplifies and automates check issues and check cancels. Issue Maintenance is tightly integrated with our Positive Pay service. The City can expect the ability to immediately reissue checks as necessary using Issue Maintenance. U.S. Bank SinglePoint Issue Maintenance enables the City to: Enter check issue and cancel information online, from the internet, throughout the day. Upload files with issue and cancel information in the U.S. Bank standard format (CSV) or create a customized delimited or fixed length format. Enter payee names to support the Payee Positive Pay service option, if applicable. Retrieve up to 45 days of issue-cancel history. Search on issue-cancel history by using search criteria such as date, dollar amount and serial number. View Data Transmitted File Confirmation information. Issue files are updated to the bank and teller line hourly from 4:50 a.m. to 7:50 p.m. PT each business day. g. How does the City notify the bank of voided and stop payment checks? The City will use SinglePoint Issue Maintenance and SinglePoint Stop Payment to input voided and stop payment checks. Initiate stop payments online conveniently as you work—SinglePoint Stop Payments provides three methods of initiating stop payments: after initiating a check inquiry, by directly entering a stop payment request, and by importing stop payment requests. Each method supports single, batch and range entry. By default, stop payments are placed for 12 months, but you can adjust the term to either 6 or 24 months. You can also revoke a stop payment online. Save time by entering multiple stop payments from all accounts on one entry page—You can define ranges up to 50 checks and process a maximum 2,500 check inquiries or stop payments in a single submission. You can also revoke stops and batches of stops at the same capacity and rate. Inquire and act on checks paid—Find up to 45 days of historical data about specific stop payments or checks paid using the robust record search function. Search results include all stop payments placed at U.S. Bank, even stops that were placed outside of SinglePoint. If the check was not paid, stop payment options are available. If the check was paid, the link is to the paid check image. If you use SinglePoint Account Reconciliation, Positive Pay or Reverse Positive Pay, you can place stop payments on checks that were already paid. Stop payments are often placed on U.S. Bank City of Arlington, WA paid checks that were returned through Positive Pay, paid with a check number misread or are fraudulent items. h. Does your bank have payee verification? Yes U.S. Bank Positive Pay is enhanced to help the City detect and prevent altered payee name fraud on deposited and cash letter items, as well as items presented at the teller line. U.S. Bank will enable the City to detect fraud by helping you identify any items with non-matching payee names. We offer two payee verification service options: Teller Payee Positive Pay and Payee Positive Pay. Teller Payee Positive Pay option With this option the City of Arlington will have the option to have payee name information verified prior to checks being cashed by U.S. Bank tellers. Reduce check fraud at the teller window—The check amount, check number and payee name on checks presented for payment are matched to the data on the City’s issue file. Any mismatches are not cashed, but returned to the presenter. Requirements: - Add payee name information to issue files. - Verify that the payee name on the check exactly matches the payee name on the issue file. Payee Positive Pay option In addition to Teller Payee Positive Pay, leverage our most advanced Positive Pay service which provides the most complete fraud protection. This service expands our payee name verification to all items processed for The City’s Positive Pay accounts, both at U.S. Bank’s teller line and in the back office. The Payee Positive Pay service is available only through U.S. Bank SinglePoint®, our suite of integrated online Treasury Management solutions. Timely fraud alerts—U.S. Bank Payee Positive Pay identifies payee name mismatches. These exceptions will be presented to the City daily in the SinglePoint Positive Pay Exceptions List for review, along with all other Positive Pay exceptions. Easily view exception images and make payment decisions online—Link directly from the exception list to the corresponding check image. Users can view and manipulate the image and easily make decisions from the image viewer. Requirements: - Add payee name information to the City’s issue file. - Verify that City check stock meets the specifications on the U.S. Bank Payee Positive Pay Check Formatting Guidelines. - Complete and return the U.S. Bank Payee Positive Pay Check Image Questionnaire. - U.S. Bank evaluates and confirms the payee name readability of the City’s check images. i. Is the positive pay service fully implemented at all bank branches? Yes, Teller Payee Positive Pay allows payee name information to be verified on checks prior to being cashed at U.S. Bank teller lines. Customers need to use a transmission file format which allows them to send payee information on the issue file. U.S. Bank City of Arlington, WA j. How does the bank handle exception (“paid not issued”) items? U.S. Bank will provide a Positive Pay Exception Report through SinglePoint. Exceptions will be handled based on the established default decision; but the City will have an opportunity to override the default by making changes to the disposition of the item. i. Does the bank offer a daily listing of exception items? Each day, U.S. Bank updates your exceptions list with mismatches between presented and issued checks. Review Positive Pay exceptions on multiple accounts at the same time. Exception items include checks that have been converted to ACH items. The City can decision each exception from the list and submit to the bank in a matter of seconds. The City’s online decisions can include adjustments to an item’s dollar amount and/or check number, and automatic creation of updated issue information. ii. Are there defaults available for each account to either automatically return or pay on exception items? Yes. The City sets the default when the service is activated and can choose “return all” or “pay all” per account. U.S. Bank recommends the “return all” option. The City also has the ability to change the default decision at an account level using SinglePoint® Positive Pay. Default changes must be made prior to the account deadline and are effective immediately. iii. What is the timeline for reporting exceptions to the City? U.S. Bank will report all exception checks daily to the City by 9:00 a.m. PT for items that were presented for payment the previous business day. Exception item information is available every business day from 9:00 a.m. until 2:00 p.m. PT. iv. How are exceptions reported to the City? Will an image be available? U.S. Bank SinglePoint’s image-enhanced Positive Pay product provides real-time access to images of exception items over the Internet. The City will be able to view, manipulate and print images of exception items and enter pay/no-pay decisions on that same exception list in SinglePoint. Errors and misreads will be edited from the Positive Pay report before they are available for the City to view. These items will be reported separately in the Bank Corrected Exceptions List on SinglePoint Positive Pay. v. What is the timeline for the City to act on any exceptions? Exception item information is available every business day from 9:00 a.m. until 2:00 p.m. PT. The City must enter decisions to pay or return exceptions by 2:00 p.m. PT, otherwise U.S. Bank will act upon the default decision the City has chosen for Positive Pay exception items. U.S. Bank City of Arlington, WA vi. What are the hours of operation of this service unit? Positive Pay Customer Service is available Monday through Friday from 8:00 a.m. until 5:00 p.m. PT. In addition, the City of Arlington may also contact U.S. Bank Commercial Customer Service for assistance with Positive Pay services Monday through Friday from 7:00 a.m. until 5:00 p.m. PT. 10. Purchase Card Program: a. Provide a funds availability schedule by card type. Is it negotiable? During implementation, we would work with the City to derive the original issuance of cards for your program. As an ongoing program, designated the City employees could issue new cards online or by contacting our team members identified to support your account. Cards are only issued to employees authorized by the City. The following screen shot reflects Account Administration activity menu which would be available to designated City program administrators: b. What is the settlement deadline? The City can have Bi-weekly or Monthly Statements that are available online and ready to be downloaded. You can view individual card holder statements and/or consolidated billing statements. Billing cycle end dates can be selected from the 6th through 25th of the month. For example if the City selects the 15th of the month, the U.S. Bank City of Arlington, WA next following business day, your statements will be available online for your review. Master Statement samples have been provided which list the account number, name, and card activity by merchant, the dates of the transactions, and the charges/costs incurred for those items. A Late fee may be applied after 30 days past due. Late fees are listed in our Financial Exhibit and listed below: Fee assessed on the entire past due amount if full balance is not paid by the due date Fee assessed each subsequent cycle on the entire 1.0% (Minimum $2.00) 2.5% (Minimum $2.00) Payments will not be processed or posted if presented at the local bank facility. Payments to accounts via check are asked to be mailed on to our processing centers for application of payment. The City can remit payment to U.S. Bank by Check, ACH, or Wire Transfer. The rebate presented to the City provides enhanced rebate terms, when payment is received in shorter terms to the bank. c. What daily and/or monthly reconciliation reports are available? Report categories available include: ■ Program Management Reports ■ Financial Management Reports ■ Supplier Management Reports ■ Tax and Compliance Management Reports ■ Administration Reports U.S. Bank City of Arlington, WA In addition to our standard reports, Access Online offers the following ad hoc reporting and scheduling options: ■ Flex Data Reporting—This Access Online feature puts the control in the user’s hands, so they can define what they want to see in a report. By setting the report context—date ranges, processing or reporting hierarchies and more—users are able to choose the amount of data. By defining report content (fields to include or calculate) users ensure the information they need—and only the information they need—is in the report. Users can define a logical grouping of data, and at what level it should be subtotaled. ■ Report Scheduler—This Access Online feature is available with our Standard Reports and allows Program Administrators to schedule reports to run once or on a recurring basis. Additional features include: • Reports can be delivered to multiple recipients • Recipients can be notified via email when the report is available • Access to functionality is controlled by Report Scheduler entitlement d. What software platform do you use? Access Online is a user-friendly, web-enabled system with modest computing requirements: ■ Desktop/Personal Computer • Computer with a 486/66 MHz processor or higher • Operating systems: Microsoft Windows 98 or higher • Recommended screen resolution size of 1024 x 768 • Adobe® Acrobat® Reader 5.0 (for reports exported in PDF formats) • Excel Viewer (for reports exported in XLS or CSV formats) ■ Internet Connection • 56k or faster • DSL or Cable recommended ■ Browser* • Microsoft Internet Explorer versions 6.x Service Pack 1 (SP1) and higher • JavaScript Enabled • Adobe Acrobat Reader 5.0 ■ Web-Based Training Software Requirements • Macromedia Flash™ 6.0 Plug-in • Adobe Acrobat Reader 5.0 *Access Online can be accessed on any device with an internet browser (including Macs, PCs, mobile devices, etc.) The preferred browser is Internet Explorer, on which U.S. Bank Access Online has been certified. e. What is the percentage of rebate? As a member of the State of Washington Purchasing Cooperative and a state agency, the City of Arlington is eligible to participate in the commercial card programs negotiated by the State on behalf of its own agencies as well as members of the purchasing cooperative. Specific information with regards to the program, including financials may be found at: http://www.des.wa.gov/Pages/default.aspx U.S. Bank City of Arlington, WA For specific rebate information please review the Pricing and Ordering Information under current documents: https://fortress.wa.gov/ga/apps/ContractSearch/ContractSummary.aspx?c=00612 f. Describe your card management process including • New card issuance • Cancellation of cards • Modification of card parameters (dollar limits) • Lost/stolen cards The City’s Program Administrator can make the following real time changes within Access Online, our proprietary system for program management and reporting. Limits/Cash Access—Adjust total credit limit, adjust single purchasing limit, add cash withdrawal access or remove cash if cash is available on program Demographic information—Alter address, phone, alternate phone, email and two optional fields for employee ID or other Reporting hierarchy—Move cardholders within the reporting or processing hierarchy. Some hierarchy changes are queued up to take place the day after cycle for billing purposes, rather than in real time Account Setup/Cancel and Card Order—Set up new accounts and order cards, enter desired embossing text, cancel accounts and reopen previously cancelled accounts Group changes—Alter groups assigned as “open” or “closed” on an account within the limits established by the organization (corporate liability only) Other controls can be changed upon request through Service Point and typically will take effect the next day. Overarching changes need to be made through your Relationship Manager. The Program Admi nistrators shall have the ability to access an online system that will permit us to cancel/suspend a card immediately for various reasons, request replacement cards due to name change or damage and enter the online application information to order a new card. It is not feasible for the Program Admi nistrators to spend all day making phone calls to effectively manage our program. 11. Payment of Fees. Respondents will need to provide information on the following: a. The effective rate and formula used to calculate the service charge credit for collected fund balances; U. S. Bank is pleased to have this opportunity to offer the City of Arlington an aggressive Earnings Credit rate of 0.35% our bank managed rate with a floor, to help significantly reduce monthly service costs. We do not withhold 10% of balances but we pay on 100% of average positive collected balances. Earnings on account balances are provided to clients as compensation for collected balances held in the Bank and used to offset service charges. U.S. Bank’s Earnings Credit Rate is calculated on average positive collected balances. U.S. Bank City of Arlington, WA [Collected Balance Available for Earnings Credit x the Earnings Credit Rate] X the actual days in the month 365 or 366* *The actual number of days in the year is used. b. The proposed method for setting rates on a compensating certificate of deposit; In today’s current rate environment of Fed Funds 0% - 0.25%, U.S. Bank suggests considering a Compensating Certificate of Deposit for the term of the contract to offset service fees. The unique benefit of this Compensating Balance Certificate of Deposit is that any excess is paid out as interest. The Compensating CD also offers monthly, quarterly and semi-annual payout options. For these options rate are lower and are subject to change daily. For an annual payout, you decide which month the payment is made to coincide with your fiscal calendar. c. A time frame proposed to pay any additional fees not offset by service charge credit; Analysis statements are compiled on the 8th business day of the month. The City’s account would be assessed any net deficit service fees on the 9th business day of the month. The City has the options to remit payment for services monthly, quarterly, semi- annually or annually. d. Whether a service charge credit/debit can be carried forward to the next period; Service charge credits/debits are carried forward when selecting a quarterly, semi- annual or annual settlement method. e. The formula for any fees in the event of an overdraft; Daylight U.S. Bank does not charge for general Daylight Overdrafts (DOD). We may contact the City by telephone to determine the source of funds to cover the DOD. If this is a frequent occurrence, we will work with the City to set up an internal guidance line that would limit the phone calls to only those times when the internal limit is exceeded. Most customers do not require a DOD Limit. Overnight U.S. Bank monitors overdrafts daily and will notify the City in the event that an overdraft situation occurs. Overdraft fees will be processed through the monthly account analysis charges and not directly charged at the time of overdraft. Overdraft fees are $36.00 per item. The City would incur Uncollected Funds Usage fees as non-qualified bank financing. The rate is tied to the Prime rate, converted to a daily rate. The uncollected funds charge is the balance x # of days x rate. U.S. Bank City of Arlington, WA f. Describe what constitutes a daylight and overnight overdraft situation A daylight overdraft is a condition where the City has initiated an outgoing wire transfer prior to the funds being received by the bank. U.S. Bank will approve these on an “as needed” basis. We may also contact the City to verify the wire and the source of funds. Should this be a frequent need, we may establish an internal threshold to limit the number of phone calls to the City. We do not encourage daylight overdrafts. We do not charge a fee for daylight overdraft. Overnight Overdrafts occur when more dollars have been withdrawn from the City’s account than posted during the posting period. This will result in an early morning phone call to the City to alert you each business day that an overdraft has occurred and funding is required as soon as possible. Charges for overnight overdrafts are outlined in item “e” above. 12. Errors and Adjustments a. Describe your adjustment process for resolving deposit discrepancies. Branch: All night drop discrepancies greater than $50.00 are verified by two or more tellers. In addition, the City is notified of discrepancies over $50.00 and are asked for instruction to continue processing the deposit. For deposits left for post-verification or drop-off, the City may establish their own discrepancy procedures. Discrepancies found with the cash portion of over-the-counter deposits are adjusted immediately Cash Vault Services: Identifies all discrepancies and adjusts the City’s account for differences over $10.00. Item processing / Proof Corrections: Item Processing / Proof identifies all discrepancies and adjusts the City’s account for differences over $50.00. b. At what dollar amount do you write off discrepancies? Branch: Discrepancies are usually not written off. They are communicated and corrected with the customer Cash Vault: For discrepancies of $10.00 or less, no adjustments are made to the deposit. Proof: For discrepancies of $50.00 or less, no adjustments are made to the deposit. c. Do you adjust the deposit amount or process an adjusting debit or credit? Based on the direction given by the City, the deposit adjustment will be recorded in dual control and processed accordingly. Branch: For over-the-counter deposit discrepancies, the customer can change and initial the deposit slip reflecting the adjusted deposit amount. Another option the U.S. Bank City of Arlington, WA branch has is to process the adjustment as a separate credit or debit transaction with the deposit posting for the amount on the deposit slip. Night deposit or post-verification deposit discrepancies may be processed as separate credit or debit transactions or the deposit slip may be adjusted, depending on the branch’s contact with the customer and/or special written deposit adjustment procedures the customer has in place with the branch. Any branch adjustment to a deposit ticket when the customer is not present requires that two tellers verify the deposit amount and initial the deposit ticket. Cash Vault Services creates a separate customer deposit credit or debit adjustment for discrepancies. Should the teller identify a discrepancy of any dollar amount, it is recounted in dual control. Upon re-verification, the branch staff will notify the City. Once the City has confirmed the discrepancy, the branch will adjust the deposit accordingly. Based on the direction given by the City, the deposit adjustment will be recorded in dual control and processed accordingly. Night deposit or post-verification deposit discrepancies may be processed as separate credit or debit transactions or the deposit slip may be adjusted, depending on the branch’s contact with the customer and/or special written deposit adjustment procedures the customer has in place with the branch. Any branch adjustment to a deposit ticket when the customer is not present requires that two tellers verify the deposit amount and initial the deposit ticket. 13. Describe how inquires requiring research and adjustments are handled by the institution. Are there established turn-around times for research and adjustment items? If yes, specify. What fees are associated with research in the event of a banking error/customer error? Our Government Banking Commercial Customer Service Team is your day-to-day contact for all problem resolution and ongoing service maintenance of your banking relationship. All government Banking Customers call Commercial Customer Service (CCS) 1.800.346.2249 for inquiries regarding research and adjustments. When you call U.S. Bank’s Commercial Customer Service a service banker will answer the phone to provide immediate service. If an email or voicemail message is left for a specific service banker by 3:00 p.m., you will be contacted same day for resolution. If resolution cannot be provided in the initial call, then the details of the call will be researched and follow-up will continue until there is resolution. Complex issues are also personally managed and tracked by the Customer Service Banker who initially took the call until it is resolved. Commercial Customer Service is a team dedicated to provide depository and treasury management support. They offer an unsurpassed premier level of service to customers including timely, thorough and responsive measures which insure customer satisfaction. Our highly skilled and extensively trained service staff is able to respond to both routine and complex inquiries through on-line access to the bank’s systems and product databases. With a call-tracking system, anyone in Commercial Customer Service can U.S. Bank City of Arlington, WA readily respond to new or historical issues. This saves our customers valuable time and allows the bank to identify service and quality trends with an eye toward improvement. 14. Describe NSF or Returned Items processing procedures, fees or other related services available. The City will require re-depositing ‘NSF’ or ‘uncollected funds’ returned items so that they may be presented a second time prior to being charged back. How do you process items returned for reasons other than insufficient funds (ie: stop payments, account closing). U.S. Bank’s standard service is to chargeback the deposit account with a first return. U.S. Bank currently processes returned items at two Operations Centers: St. Paul, Minnesota and Portland, Oregon. The City may establish special instructions for redeposit, phone call, fax, store number, alternate address, second copy, alternate charge account or transmission of returned item information. Special instructions are available by account or location. As the City’s returned items are processed by U.S. Bank, they go through a number of steps to determine processing procedures. Outlined below is a description of the critical steps that comprise that process: Items are imaged. The MICR line of the item is read and compared against a cleared item file created during the initial deposit process. The returned item is matched to an associated deposit ticket on the cleared items file. Following the match, the system accesses the returned item special instructions associated with the item. Returned items are processed in accordance with the special instructions (such as redeposit, assign a store number, send to company for collection, and so on). When returned items are forwarded to the City, the returned items are attached to an advice. A maximum of eight returned items can be attached to a single advice. For reconcilement purposes, a single advice matches a single debit on a City’s bank statement. U.S. Bank recommends using SinglePoint to access images of returned deposited items and advices as an alternative to fax and duplicate notifications. Returned deposited items may be viewed the next business day following the date the check was returned and charged back to the original deposit account. 15. Security/Protection Measures: a. Is the institution compliant with all current IT security and network encryption standards? Please describe. Yes, U.S. Bank has implemented encryption and authentication to protect customer data. b. Does the institution have a method of allowing secure submission of encrypted email with attachments for communication? U.S. Bank City of Arlington, WA The U.S. Bank Secure Mail site provides a secure means for us to exchange confidential information electronically. Each time you receive a secure mail email notification from someone at U.S. Bank; it will include a link to retrieve the message from the secure server. You then click the link to access our Secure Mail Web site, log in and retrieve the information. You must follow the instructions below to become a registered Secure Mail user to receive email. The login to U.S. Bank Secure Mail is via a secure https connection. c. Does the institution offer individual security certificates for client computer accessing encrypted portions of the online banking software? SinglePoint protects account information with the most current and proven technology available, including: ■ Two-way 128-bit encryption ■ SSLv3 ■ Individual client IDs, passwords and digital signatures ■ VeriSign time based tokens are required for users to access payment services (ACH and Wire Transfer). Tokens are pre-programmed to produce a new numerical code every 60 seconds. One token is assigned to each user at your site. ■ By default, all SinglePoint entitlements must be approved by a second system administrator. Customers must complete additional paperwork to waive the dual approval requirement. An optional IP white listing security feature is available for customers who want to restrict user access to allow only specific IP addresses or IP address ranges. The application also uses a tool called Passive Monitoring, which detects anomalies in web traffic between user PC’s and the bank application. These anomalies include user PC viruses. Once detected, the bank contacts users to communicate the detection of viruses that were identified including corrective measures to ‘clean’ the user PC’s. d. What security features are in place to minimize the risk of unauthorized transactions? U.S. Bank: The Most Trusted Bank in America U.S. Bank has taken an industry-leading, proactive approach to the importance and daily application of transaction and account information security. Time and time again, we have been recognized by bank industry experts and consumer watch-dog groups as the verifiable leader in the development of security best practices. U.S. Bank was ranked number one as the “most trusted retail bank” for customer privacy and data security by the Ponemon Institute, a research group dedicated to responsible information management and security in business and government, for the ninth consecutive year. The Ponemon Institute© (www.ponemon.org) is dedicated to advancing responsible information and privacy management practices in business and government. To achieve this objective, the Institute conducts independent research, educates leaders from the private and public sectors and verifies the privacy and data protection practices of organizations in a variety of industries. U.S. Bank City of Arlington, WA Facility Safeguards & Security To safeguard data centers and processing facilities, U.S. Bank employs an array of facility security protocols to meet industry regulations and requirements: • Authorization Groups – All system users are assigned to user authorization groups that give them the proper access to the work areas, work systems and data required to perform their jobs. Tied to both the card access system, which controls access to sensitive facilities and areas, and data systems permissions, which control access to various systems and data, these authorization groups significantly reduce any opportunities for misuse and unauthorized modifications. • Card Access Systems – Using the preprogrammed User Authorization Groups, access to sensitive facilities/areas, equipment and data are restricted to the proper authorization groups. • 24x7x365 Facility Surveillance – All U.S. Bank processing and data centers have around-the-clock security camera surveillance in sensitive areas and entry points. • Onsite Security Monitoring – All U.S. Bank data and processing centers have on- site security personnel monitoring lobbies, entrances and surveillance cameras. • Visitor Access Restrictions – Visitors are restricted from entering any facility or area without authorized approval and escorts through the facility. Internal Data Security Protocols U.S. Bank recognizes the importance of online security technologies and has implemented various tools and processes that provide the ability to address data security threats and unauthorized access risks as they arise. The tools utilized by U.S. Bank to manage security risks include: Active Countermeasures – Such as external and internal firewalls, access lists, and intrusion prevention systems that limit access to areas of the network based on defined security policies. Passive Countermeasures – Such as intrusion detection systems that identify certain types of attacks that may be seen as normal traffic by Active Countermeasure systems. Some passive tools offer the flexibility to modify firewall policies on an as-needed basis. User Authentication – On network devices to control access to network switches, routers, and servers. Security Monitoring Systems – Provide visibility into network devices to provide data gathering, analysis and notification. Encryption – That uses sophisticated algorithms to encode data. Web-enabled products support the Secure Socket Layer (SSL) protocol to provide privacy for data exchanged between browsers and servers. Contracted “Hacking” Services – Special security companies that attempt to breach our systems on a daily basis o These subcontractors provide regular reports of attempted security breaches. U.S. Bank City of Arlington, WA Agent-Based Monitoring Tools – Monitor activity on the network, platforms and devices. Event Correlation Software – Analyzes events from disparate devices, logs and tools. Automated Notification – Automatically notifies or pages personnel upon the occurrence of events that are outside of expected results and that could indicate a security issue. Dedicated Security Team – A dedicated team is responsible for monitoring security event and log information. This internal group provides regular monitoring reports including attempted security breaches. Additional Security Measures available: U.S. Bank Payee Positive Pay In addition to Teller Payee Positive Pay, leverage our most advanced Positive Pay service, which provides the most complete fraud protection. This service expands our payee name verification to all items processed for your Positive Pay account, both at U.S. Bank’s teller line and in the back office. U.S. Bank UPIC® secure account identifier is a unique account number that allows ACH credit transactions to post to a designated U.S. Bank account, while blocking ACH debits from your account. A UPIC looks and acts just like a regular bank account. It masks the companies account number allowing companies to receive electronic credit payment without revealing sensitive bank information to their business partners. Using a UPIC, your company can publish account information freely to encourage your trading partners to send electronic payments without the fear of fraud on your business DDA account. U.S. Bank ACH Positive Pay service is available online through U.S. Bank SinglePoint. The service detects ACH fraud by electronically matching incoming ACH transactions to account authorizations that customers can create and manage online. A customer creates authorizations on each of their accounts. Authorizations are a set of rules the customer establishes to determine which incoming ACH credits and debits they want to allow to post to their accounts. The Bank uses these authorizations to compare against ACH transactions set to post to the customer’s accounts. ACH Positive Pay identifies any non-matching items. With ACH Positive Pay, each day customers are able to review a list of these non-matching transactions and decision them. The decision options are to either “pay” the item, allowing it to post, or to return exception items back to their originator. As a default, SinglePoint will also “return all” exception items that haven’t been decisioned by end of day on their effective settlement date. This means that the exception items will be returned unless the company instructs U.S. Bank, through SinglePoint, to handle an exception item differently. ACH Filter and Block enables customers to authorize specific ACH debits and/or credits or prevent ACH transactions from posting to their U.S. Bank account. U.S. Bank City of Arlington, WA Business eCheck Block is intended to prevent potentially unauthorized transactions from posting to U.S. Bank accounts. It provides customers with the option to accept or reject converted check items such as ARC, POP or RCK, as well as WEB/TEL transactions, from posting to their account. - ARC – Accounts Receivable - POP – Point of Purchase - RCK – Return Check - WEB/TEL – initiated via the internet or telephone The U.S. Bank Check Filter Service mitigates risk and helps reduce losses due to check fraud. It allows U.S. Bank business checking and money market account holders to prevent check transactions over a customer-specified dollar amount from posting to an account. Any check presented where the dollar amount is in excess of the established threshold will be returned Refer to Maker. Many customers will choose to "block all" checks from posting to an account. SinglePoint Security Security is of utmost importance to U.S. Bank. The City will define security levels for SinglePoint as part of the implementation process. Security levels are set at account, function and user levels. The City can also set a dollar amount limit at the company level and individual user level for both batch initiation and approval. Additional security controls, such as locking and confidentiality, prevent unauthorized users from modifying transaction detail or initiating invalid batches. The implementation team at U.S. Bank establishes customer-defined security levels during setup. System administrators at the City may change user and account security levels using SinglePoint’s system administration service. By default, modifications by system administrators are subject to dual approval. Alternately, you may also request that implementation representatives at U.S. Bank complete desired security changes. SinglePoint allows system administrator users to modify certain ACH security settings, including: General entitlement of user access to the ACH module in SinglePoint User-level transaction limits Global template and batch approvals Account and SEC code access System Security Controls SinglePoint® e. How are the City’s assets restored to the City in the event of a security breach or U.S. Bank City of Arlington, WA hacking incident? Positive Pay service helps customers reduce fraud losses. In the event the City were to consciously choose to forego implementing this service are responsible for any fraudulent or counterfeit items clearing the City's account. The Bank utilizes sophisticated fraud detection software produced by Carreker-Antinori – ASI 16. This is used in processing teller transactions and transit items. U.S. Bank also offers a variety of services to help safeguard customers against check fraud. 1. U.S. Bank Check Filter prevents checks (all or those more than a specified amount) from posting to an account. 2. U.S. Bank Positive Pay, U.S. Bank Teller Positive Pay and U.S. Bank Reverse Positive Pay quickly identify potentially fraudulent checks. 3. U.S. Bank Account Reconciliation and U.S. Bank Returned Items assist with monitoring and reconciling account activity on a timely basis through Information Reporting. 4. U.S. Bank offers paperless alternatives for transferring funds: Wire Transfer and U.S. Bank ACH. Positive Pay is the best and most affordable protection against fraudulent check activity. If customers choose not to use Positive Pay services, they are responsible for, and more susceptible to, fraudulent activity within their accounts. f. What is the timeline for restoration of City Funds in the event of an unauthorized transaction? U.S. Bank offers certain products and Services such as Positive Pay and account blocks or filters that are designed to detect or deter fraud. Failure to use such Services could substantially increase the likelihood of fraud. If Customer fails to implement any of these products or Services, or if Customer fails to follow these or other precautions reasonable for its particular circumstances, Customer agrees: (i) it will be precluded from asserting any claims against Bank for paying any unauthorized, altered, counterfeit or other fraudulent item that such product, Service, or precaution was designed to detect or deter; (ii) Bank will not be required to re-credit Customer’s account or otherwise have any liability for paying such items. g. Identify key measures of the bank’s financial strength (ie: capital ratios, market capitalization, total assets). Provide the most recent annual report. Our Annual Reports may also be accessed online at: http://phx.corporate-ir.net/phoenix.zhtml?c=117565&p=irol-reportsannual The Bank’s quarterly earnings reports can be found at: http://phx.corporate-ir.net/phoenix.zhtml?c=117565&p=irol-quarterlyearnings. U.S. Bank City of Arlington, WA 16. Service Enhancements: Describe any enhancements, technological or otherwise, that we should consider to improve operational or cash management efficiencies. As technology continues to advance, your U.S. Bank relationship team is ready to help you leverage the emerging opportunities within the banking industry today and tomorrow. Our team will work with you to uncover areas in which the City may be able to both improve functionality with updated processes and subsequently create cost savings by moving toward more automated and simplified capabilities. Enlisting the services of U.S. Bank means you benefit from the full force of our continued investment in technology. Ongoing expansion and the introduction of numerous electronic and technological enhancements through monitoring of trends, industry developments and competitor evaluation help keep our products and services at the forefront of efficiency within the banking industry. Working Capital Engagement U.S. Bank is uniquely positioned to be your strategic partner as we view your card, check- based and electronic payments spend holistically, and recommend solutions based on optimizing the entire, tiered payables process. We offer our unique Working Capital DNA model to solve for your entire payable strategy. Working Capital DNA Process consultation is a multi-phased approach that will analyze your current Accounts Payables (AP) environment to develop a customized payments strategy helping you optimize your working capital. This model is designed to align your current payment solution with the latest technologies in a tiered, holistic fashion. We will optimize your check, wire, card and ACH process with a tiered strategy, offering your vendors the payment terms and types that provide the City with the most savings and rebate available based on the City’s procurement and payment process. This model, and the consulting process incorporated into it, is part of our offer and the City incurs no additional cost. We extend an offer to City of Arlington to meet with U.S. Bank’s National Payments Consulting experts who will listen and advise based upon your unique business model for maximum efficiency, flexibility and control. This process typically starts with mapping your complete payment model. From there, we can engineer a solution based on solving your individual challenges of cash flow, working capital and payables management. To accomplish this, we host a session on site (less than 90 minutes), at no charge, to understand more about your organization's process flow, from procurement to payment. This session is an informal discussion of your current process and does not require any pre-work on your behalf. U.S. Bank will review this information, compare it to industry best practices and lessons learned, and provide recommendations during a subsequent visit. The next meeting is the recommendation session. This is when we present our recommendations to optimize your working capital including: ■ Creating process improvements ■ Changing payment methods ■ Improving payment terms ■ Employing supplier enablement ■ Developing deployment strategies This service is a long-term business solution built on our commitment to be a treasury advisor who understands your strategic and tactical initiatives at the City. We know that partnering across all payment types in a working capital optimization engagement is the U.S. Bank City of Arlington, WA most transformative exercise your payables process can undergo and we look forward to supporting the City of Arlington in this end-to-end advisory capacity should we be selected as a partner. Onsite Electronic Deposit Deposit checks electronically from the convenience of your office or using a mobile device to maximize funds availability. Reduce desk float, errors and unnecessary risk often associated with processing paper checks when you deposit checks electronically using On- Site Electronic Deposit. Save time and money by consolidating banking relationships to make check deposits from your remote locations. Electronify paper checks at point of receipt. Deposit checks as soon as they are received without leaving your office. Increase productivity and reduce risk by not having employees leave the office to make bank deposits. Make deposits from a mobile device. Make check deposits outside of the office, anytime, anywhere using a supported mobile device.* Capture remittance information and/or images with check deposits to post payment information to your accounts receivable system in an automated fashion. Distributed workforces collecting check payments can meet daily cutoff times to accelerate the check collection process. Reduce manual tasks. Automatically capture check and remittance data, including images of remittance coupons and full page documents. Expedite payment processing and reduce manual intervention by automatically posting payment information to your accounts receivable systems. Strengthen internal controls. Facilitate regulatory, audit and internal control compliance by enabling separation of duties, establishing deposit approval queues, and utilizing dual control for processing your receivables. Access online reporting and research capabilities. View extensive reporting options for deposit, transmission and remittance data as well as access to images of checks and remittance items for more than two years. Payee Positive Pay In addition to Positive Pay and Teller Payee Positive Pay, leverage our most advanced Positive Pay service, which provides the most complete fraud protection. This service expands our payee name verification to all items processed for your Positive Pay account, both at U.S. Bank’s teller line and in the back office. Receive timely fraud alerts. U.S. Bank Payee Positive Pay identifies payee name mismatches. These exceptions will be presented to you daily in the SinglePoint Positive Pay Exceptions List for your review, along with all other Positive Pay exceptions. Easily view exception images and make payment decisions online. You can link directly from the exception list to the corresponding check image. You can view and manipulate the image and easily make your decision from the image viewer. Mobile SinglePoint Mobile SinglePoint® is designed specifically for users who are always on the go. Mobile SinglePoint allows you to access all the treasury management tools you need when you are away from a computer. It is available from a browser based, mobile optimized website and is compatible with devices such as iPhone, Blackberry, Android and Windows Mobile. An iPhone and iPad app containing the most popular Mobile SinglePoint functions is also available as an app from the App Store. Approve wire transfers, book and loan transfers, U.S. Bank City of Arlington, WA ACH payments, template modifications, Positive Pay decisions, password resets and user change, initiate a repetitive wire transfer or an ACH batch. View balances and track transactions. View account summary, transaction detail, check images, previous day and current day data, and previous day data from foreign bank accounts. Transfer funds between U.S. Bank accounts. Control access, reset passwords, and inactivate or reactivate users. 17. Provide information on how your institution plans to keep your product line competitive. Describe what approach the bank is taking in the development of new services and what new services and/or features the bank plans to offer and within what time frame. U.S. Bank has a full time team dedicated to continual upgrades and maintenance of its services. Part of the team’s regular duties includes close review of, and response to, regulatory notices, industry publications and developments or trends in competitors’ offerings. U.S. Bank commits the resources necessary to respond quickly to new industry best practices and regulations. Participation in industry groups allows U.S. Bank to remain involved, informed and aware of industry trends and new requirements, new regulation, and pertinent issues of import to providing banking and treasury management services. It helps U.S. Bank stay aware of and respond to a changing banking climate, technology and customer needs. From time to time, U.S. Bank performs its own research on specific customer needs and topics. In many cases, service enhancements are customer driven. Customers are invited to participate in product focus groups and pilot programs for valuable feedback on usability and ease of use of our services. U.S. Bank produces a quarterly Treasury Management Newsletter to keep customers informed on treasury management news. The newsletter can be delivered via email or retrieved through SinglePoint. 18. Disaster Recovery: a. Describe your institution’s formal disaster recovery plan. U.S. Bancorp Business Continuity Planning & Disaster Recovery Program: General Statement The mission of U.S. Bancorp’s Business Continuity Program is to establish and support an on-going Business Continuity and Contingency Planning Program to evaluate the impact of significant events that may adversely affect customers, assets, or employees. This program is designed to ensure that U.S. Bancorp can recover its mission-critical functions and applications, thereby, meeting its fiduciary responsibility to its stakeholders and complying with the requirements of the Federal Financial Institutions Examination Council (FFIEC), the Securities and Exchange Commission (SEC), the Office of the Comptroller of the Currency (OCC) and the Office of the Superintendent of Financial Institutions (OSFI). In addition, U.S. Bancorp has met all recovery criteria as prescribed by the Interagency White Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System. U.S. Bank City of Arlington, WA The U.S. Bancorp and U.S. Bank NA Board of Directors approve the Business Continuity Program Policy annually, and key issues and status are reported to the Board and Senior Executives on a periodic basis. U.S. Bancorp has developed detailed Business Continuity Plans and Disaster Recovery Plans for the restoration of critical processes, applications, infrastructure, and operations. U.S. Bancorp has dedicated resources to its contingency planning and disaster recovery program. Key features of U.S. Bancorp’s planning process include: • Employee safety strategies and communications/notifications • Systems and telecommunications accessibility • Alternate physical site location and preparedness • Emergency Notification Processes and Systems • System and data backup and recovery A Corporate Crisis Management Department coordinates all emergency and crisis response processes for the entire U.S. Bancorp. A key team of Senior Business Line Executives make up the Crisis Management Team. The Enterprise Readiness Services Department coordinates planning, strategy, testing, and monitoring of the Business Continuity Management Program across U.S. Bancorp. The Enterprise Readiness Services Department has set forth guidelines which incorporate industry best practices for critical business units. • Business Impact Analysis –The risk impact analysis measures the effects of resource loss and escalating losses over time, in order to provide management with reliable data upon which to base risk mitigation and continuity planning. • Business Continuity and Disaster Recovery Plans - The Plans are a documented collection of procedures and information that is developed and maintained to enable U.S. Bancorp to provide products and services at an acceptable predefined level. Recovery Plans are reviewed/approved biennially at a minimum or as changes occur to mission critical functions and applications or as a result of issues discovered during exercises/test. Plans subject to the Interagency White Paper are reviewed/approved annually. • Exercising/Testing – All aspects of the plans are periodically exercised /tested in accordance with regulatory requirements and U.S. Bank policy, and to demonstrate the level of recoverability. This includes plan activation simulation, including recovery strategies, crisis management and response, business continuity processes, and critical infrastructure disaster recovery. Key mission critical applications are exercised on a quarterly basis. Mainframe data is mirrored and replicated to the hot site and server backups are stored off-site in a secured climate-controlled environment. • Audit – Annual internal audits and periodic OCC/Federal Reserve exams are conducted of the business continuity and disaster recovery program. • Board of Directors Updates – Enterprise Readiness Services provides regular updates on the status of its contingency and recovery program to the Audit Committee of the Board of Directors of U.S.Bancorp. • Employee Training and Awareness - This includes promoting awareness, testing evacuation procedures, and identifying employees’ roles and responsibilities U.S. Bank City of Arlington, WA in a significant event. Clear communication during an outage is vital, many U.S. Bancorp employees who support mission critical functions have cell phones and recovery plans. U.S. Bancorp’s Business Continuity Plans are developed and maintained to address multiple recovery scenarios to include key recovery strategies for such events as: high employee absenteeism, technology outages, natural hazard impacts, etc. Below are a few examples of what might occur if we experience an interruption of our normal business operations. • In the event of a Data Center outage, U.S. Bancorp utilizes an internal alternate data center, which is geographically disbursed, and utilizes real-time mirroring and replication of data to our key recovery centers within prescribed Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO). • In the event a business site becomes inaccessible, U.S. Bancorp presently employs the following recovery strategies for Mission critical functions: Transfer Work: Work is transferred to another location that does the same business function or has been cross trained. Relocate People within Business: Team members are relocated to another site. Relocate to Regional Recovery Center: A location, other than normal facility, used to process data and/or conduct critical or necessary business functions. Vendor Work Area Recovery: An external site used for the recovery of mission critical personnel and processes utilizing a third party owned location. Work from Home: Team members working from home on a bank-owned laptop or PC. In the event of a disaster at U.S. Bancorp, you would be notified by a member of the Product/Service Customer Support Team. Since it is impossible to anticipate every type of potential disaster, there can be no assurance that there will be no interruption of the U.S. Bancorp’s business functions in all circumstances. This plan is subject to modification at any time. b. How quickly will back-up facilities be activated? In the event a business site becomes inaccessible, U.S. Bancorp currently employs a number of recovery strategies: Mission critical functions are recovered at another geographically disbursed location within their business line. U.S. Bancorp maintains six internal geographically disbursed Regional Recovery Centers to recover those business lines not recovering themselves. U.S. Bancorp also utilizes external recovery vendors. In the event of a disaster, mission critical employees are relocated to the recovery locations to reestablish mission critical functions within their Recovery Time Objectives (RTO). As part of our on-going commitment to ensure the highest level of security, peak operating efficiency and completely redundant operating systems, in 2008 U.S. Bank U.S. Bank City of Arlington, WA began building a state-of-the-art, best –in-class Data Operations and Recovery facility. The facility is hardened against natural disasters, secured against physical threats, and engineered for operational redundancy and provides the complete elimination of any single point of failure. This data center has been built with significant capacity well beyond our current needs which allow us to recover in a shorter timeframe. Following a disaster declaration, U.S. Bank's disaster recovery sites can be up and running in sufficient time to meet its Recovery Time Objectives (RTO) and regulatory requirements for all critical applications. In a worst-case scenario, U.S. Bank can be up and running at its disaster recovery sites within 24 hours for all critical applications required to meet the RTO. c. Describe your institution’s operating capabilities to assist the City in the event of a disaster or declared emergency. U.S. Bank will do whatever we can to assist the City should you experience a disaster and are unable to operate from your own facility. U.S. Bank SinglePoint is browser-based and doesn’t require client-side software or any special middleware to operate at the City’s site. The City can access the system from any location as long as you have your user ID and passwords. Our Commercial Customer Service (CCS) group will assist you as well. As long as an authorized individual contacts CCS they have the ability to access your account transaction information, print reports, fax reports and assist the City in any way possible. 19. Conversion/Implementation Plan: Describe the conversion plan you would coordinate to ensure a smooth transition from the current provider, including testing and a sample implementation schedule. To quote a client on our recent full banking services implementation; . - Scott Matheson, King County Treasury Manager Your Conversion Plan is customized based on your specific needs and requirements. We begin with an Implementation Meeting. This initial discussion helps us prepare a timeline together, including details related to programming, data communication and other setup activities. Of course, your implementation timeline is also tailored to your unique objectives and priorities. Implementation begins once we received all the required documentation. U.S. Bank's Implementation Team includes a Treasury Management Implementation Coordinator, a Relationship Manager (Paul Wentink) and the assigned Treasury Management Consultant (Jennifer Verdugo). Additional team members may include representatives from data processing, communications and operations, based upon the services you selected. U.S. Bank City of Arlington, WA Depository accounts will be opened by a Commercial Customer Service Banker (CCS). Your Commercial Customer Service Banker will: Explain the product options and services to the customer. Determine the account type based on customer dialogue and open the account. Mail/email the necessary forms and disclosures to the customer for the new account. Conversion Plan/Implementation Overview One of the characteristics that differentiate U.S. Bank from our peers is our implementation process. U.S. Bank dedicates an experienced professional to work with all relevant product lines and support groups to ensure all products and services are implemented efficiently and accurately. Additionally, the process will be managed on both sides through the use of a detailed implementation plan and regularly scheduled meetings. The plan outlines key dates and responsibilities, as well as implementation lead times. Our implementation process has been extremely well received and ensures a thorough, timely implementation of services to meet the City’s requirements. This process, entitled “Implementation Excellence” within the bank, is led by a dedicated, professional, and experienced Implementation Coordinator in the Bank’s Treasury Management Department. The Implementation Coordinator works with every department within the bank and coordinates those efforts with your designated contact for the project; ensuring timelines are met by identifying obstacles that may occur and addressing them. Regular communication is key, along with knowing who has responsibility and when activities are to be completed. During all testing and set up processes, the U.S. Bank team will ensure that you have the technical assistance, training, user guides, and on site visits necessary to ensure a successful implementation and transition. Implementation Process The key steps in the implementation process are: The Relationship Manager or Treasury Management Sales Consultant gathers basic information to provide initial direction to the Implementation Coordinator. The City designates primary contacts to coordinate the implementation process. The Implementation Coordinator will work with the designated contacts to obtain additional details and coordinate service setup with all of the areas involved. After obtaining all required information, U.S. Bank sends applicable documentation, including service agreements, user guides and other materials as necessary. The documentation is completed and received by the Implementation Coordinator, which marks the start of the service setup. Testing During setup, U.S. Bank tests data transmissions between the customer and U.S. Bank for customers using direct transmissions. U.S. Bank first tests connectivity through a telecommunications “handshake.” Next, customer test files are transmitted for each applicable service to verify proper receipt of the data. U.S Bank schedules a production date when testing is successful. The average time for an implementation is determined by the product. Implementation time frames range from a minimum of two days to a maximum of eight weeks. U.S. Bank City of Arlington, WA Customization of programming potentially could extend this timeframe. We track the average time per product implementation or modification, as well as in total. Product Implementation Timeline Average 10 - 15 business days 12 days 10-40 business days 20 days Cash Vault 10 business days Seven days Controlled Disbursement Electronic Statement (EDI) 20 – 35 business days 22 days Image Archive CD-ROM Onsite Electronic Deposit Returned Items Special Instructions Seven business days Four days SinglePoint 10 business days Seven days Sweep Account Wire Transfer Zero Balance Account 20. List the address and hours of operation at your nearest branch office and also the hours of operation for non-branch services. U.S. Bank’s Arlington Branch offers full service banking support to the City, 5.2 miles away: U.S. Bank, Smokey Point Office 17110 Smokey Point Blvd. Arlington, WA 98223 360.653.5313 The Branch and Drive-through are open 10:00 a.m. to 6:00 p.m., Monday through Friday, and 10:00 a.m. to 1:00 p.m. on Saturdays. The location also supports a full-service ATM for daytime or after- hours automated banking services Non-branch services are addressed by our Commercial Customer Service (CCS) teams. CCS can be reached at 1.800.346.2249 for inquiries regarding research and adjustments. When you call U.S. Bank’s Commercial Customer Service a service banker will answer the phone to provide immediate service. Commercial Customer Service hours are 7:30 AM PT to 5:00 PM PT. Non-branch services: Commercial Customer Service 800.346.2249 M-F 7:30 a.m. PT – 5:00 p.m. PT Wire Room Customer Service 888.799.4737 M-F 5:30 a.m. PT – 4:30 p.m. PT ACH Production/Operations 800.944.7504 M-F 3:00 a.m. PT – 10:00 p.m. PT ACH Customer Service 800.937.6310 M-F 6:00 a.m. PT – 5:00 p.m. PT Randy Teddy 206.344.2151 M-F 8:00 a.m. PT – 5:00 p.m. PT U.S. Bank City of Arlington, WA Laurie Baker 208.308.0127 M-F 8:00 a.m. PT – 5:00 p.m. PT 21. Discuss any special conditions, other fees, other services, or deviations from the requested scope. U.S. Bank does not anticipate any special conditions, other fees, other services, or deviations from the requested, general banking services, scope. All fees are included in the price document. Any that we believe will be incurred but were not listed by the City have been added to the document with a description of the fee. U.S. Bank City of Arlington, WA Tab 2 – Statement of Financial Institution Qualifications Each financial institution submitting a proposal for items included in this document shall prepare and submit the following data along with their proposal: 1. Name of Financial Institution U.S. Bank National Association 2. Business Address 17110 Smokey Point Blvd., Arlington, WA 98223 3. Business Phone 208.308.0127 Fax No. 4. E-mail address laurie.baker1@usbank.com 5. How many years have you been in business under the present name? The Bank was organized on July 13, 1863 under Office of the Comptroller of the Currency (OCC) Charter Number 24. OCC Charter Number 24 has operated under the title U.S. Bank National Association since 2001, but the title U.S. Bank National Association has also been used by banks that have merged into Charter Number 24 prior to 2001. 6. General character of services provided by your institution: Financial Services 7. City of Arlington Business License Number: in process 8. State of Washington Sales Tax Registration Number: WA UBI #601658491 9. Federal I.R.S. Identification Number: 31-0841368 10. I certify that the institution: • Is capable of providing the services as outlined in this proposal, and will comply with the rules and regulations outlined by the Revised Code of Washington, Arlington Municipal Code, and the Washington Public Deposit Protection Commission, and other applicable laws and regulations. • I am authorized to commit my firm to this Proposal and that the information herein is valid for 60 days from this date. • That all information presented herein is accurate and complete and that the scope of work can be performed as presented in this proposal upon the City’s request. • That I have had an opportunity to ask questions regarding this RFP and that those questions have been answered. • That I understand that any material omission of required forms or information may result in rejection of this proposal as non-responsive. • That this proposal is made without prior understanding, agreement, or connection with any corporation, firm, or person submitting an offer for this proposal, and is in all respects fair and without collusion or fraud. U.S. Bank City of Arlington, WA U.S. Bank City of Arlington, WA Tab 3 – Non-Collusion Affidavit Certificate U.S. Bank City of Arlington, WA Tab 4 – Attachment A – Scope of Services GENERAL INFORMATION The City of Arlington is soliciting proposals for a primary banking relationship with a financial institution which operates an office within the City limits. The City will be contracting for the following general services for an approximate three year period beginning April 1, 2016 and ending March 31, 2019. At the City’s option, a two year extension will be permitted with the same terms and conditions of the original contract or as amended. The following is a listing of mandatory services the City requires of its financial institution. This list is not comprehensive and shall in no way obligate the City to be required to use all listed services. • Demand deposit checking accounts • Banking supplies • Payroll direct deposit • Trust & escrow agent services • Merchant card services • ACH debit/credit services • On-line balance reporting • On-line stop-pays • ACH reporting • On-line wire transfers • Overdraft line of credit • Purchase cards • Excellent customer service & response • Check scanning services The City anticipates that proposed banking services will be compensated either by the credit earned on average collected balances, or a fee for service basis, but is also willing to consider other options. The following is a list of optional services the City may require: • Lock-box Services • Account Reconciliation Processing (ARP) • Positive-Pay on checking accounts • Credit cards SERVICES REQUIRED Checking Accounts: The City currently utilizes two checking accounts: 1) the primary checking account and 2) a petty cash account for issuing checks for small, non-routine purchases. The institution will furnish the City with additional checking accounts as needed. Daily deposits are made at the branch office. NSF checks must be processed twice before being returned to the City. The basic checking account services should at least consist of: U.S. Bank will provide the City with additional checking accounts as needed. The City can expect to receive same day credit for deposits delivered to a local U.S. Bank branch before closing time. U.S. Bank will automatically redeposit NSF checks as requested by the City. • Provide month-end statements by the 10th day of the following month and provide statements to various auditors upon request; U.S. Bank is fully prepared to comply with this requirement. Statements are available one to two business days after statement cutoff through our online platform system, SinglePoint®. SinglePoint® maintains a 12 month archive of statements making them easily U.S. Bank City of Arlington, WA accessible to the authorized City employees as well as auditors. Monthly bank statements are mailed no later than the 5th business day of the month. • Provide electronic check image retrieval including necessary software; SinglePoint Image Access will enable the City to view, save, and print images of checks, deposit tickets and other paper receipts. Images less than 90 days old can be viewed immediately. Images older than 90 days can be requested from SinglePoint’s digital image archive. SinglePoint is browser-based; therefore, no additional software is required. • Provide individual and consolidated monthly account analysis for all accounts by the 10th day of the following month; At U.S. Bank, account analysis statements are generated on the 6th business day of the month. Statements can be retrieved online via U.S. Bank SinglePoint® in PDF, CSV and TXT formats on the 7th business day of the month. Account analysis paper-based statements are mailed no later than the 9th business day. U.S. Bank SinglePoint® will maintain a rolling 12-month archive of the City’s account analysis statements at all times. If your statement is changed or re-analyzed for any reason, a revised analysis will be available for view, print or download the following morning. • Provide an on-line wire transfer system for transferring money to other institutions, along with appropriate security levels for wire transfer initiations and approvals; Wire Transfers via SinglePoint is available as an add-on service. Wire transfer functionality allows the City to initiate both domestic and international wire transfer transactions. There are multiple levels of security through entitlements established at the company level and the user initiation level. System access is authenticated through entry of a token-generated password as well as User ID and password. In addition, each user set up with the Wire Transfer service requires a Wire Transfer service PIN to initiate wire transfers using SinglePoint. User transaction and daily cumulative limits for initiation and approval are available. User access can be granted by wire transfer type, account and function. Audit reports track activity by wire transfer and by user. A sophisticated encryption system secures data during transmission. SinglePoint customers utilizing the Wire Transfer functionality will receive the Wire Daily Activity report that identifies originated Wire items from SinglePoint. U.S. Bank Wire Risk policy requires a Wire Transfer Authorization Form be completed. This form identifies users who are authorized to initiate and approve wire transfers and is signed by an authorized signer of the company. Wire Transfer Features • Customize and initiate non-repetitive and repetitive wire transfers based on payment needs. • Initiate and approve domestic and international wire transfers. U.S. Bank City of Arlington, WA • Initiate and approve multiple domestic and international wire transfers at once via the batch entry and batch approval function. • Make international payments since wire transfers can settle in either U.S. dollars or foreign currency. • Enter wire transfers anytime, day or night. Transactions initiated and approved outside of processing hours are queued and processed immediately during the next regular wire transfer business day. • Import files of repetitive and non-repetitive wire transfer records. • Protect sensitive financial information with multiple levels of security, including token password requests. • Provide an on-line computer balance reporting system, with information on collected, available and closing balances, as well as a detail of total debits and credits posted to the account for the previous day, by 7:00 a.m. each business day; U.S. Bank SinglePoint® Information Reporting will provide the City with the ability to view availability of funds no later than 7:00 a.m. PT every business day. Standard Previous Day and Current Day reports include the following information: Previous Day Summary & Detail Current Day Summary & Detail • Provide an on-line reporting system that shows current day ACH credits and debits each business day. Current Day information is available by 7:00 a.m. PT and is updated at different times for different applications. Wire transfer data is updated continuously from 5:30 a.m. through 3:00 p.m. PT. ACH data is updated twice a day at 5:00 a.m. and 7:00 a.m. PT. Detail of information provided is based on the information received with the transaction. Example: Deposits will include the Location Number if one has been assigned, the date of the deposit, the amount of the deposit U.S. Bank City of Arlington, WA ACH transactions will include the date of the transaction, bank reference number, transaction reference number and the identifying transaction information provided by the initiator. Checks paid will include the date paid, the amount, the check number and Location number (if assigned). • Provide Positive Pay feature with exception reporting/return of unknown items; U.S. Bank Positive Pay Services help detect check fraud by electronically matching checks that are presented for payment to the checks the City has issued. SinglePoint Positive Pay provides the tools to review exceptions, view images, make payment or return decisions, request adjustments and access history online. Review exceptions and make payment decisions online—Decision each exception from the list and submit to the bank in a matter of seconds. Online decisions can include adjustments to an item’s dollar amount and/or check number, and automatic creation of updated issue information. View an exception item image online—Link directly from the exception list to the corresponding check image. View and manipulate the image. Decision from the image viewer. Change default decisions online—Change the default decision for every account. Default changes must be made prior to the account deadline and are effective immediately. • Provide for on-line stop-pay look-up and notification; The City has various options when a stop payment is needed. • Contact our Commercial Customer Service group to place the stop payment. • Visit a U.S. Bank branch to request a stop payment be placed. • Place the stop payment online utilizing SinglePoint SinglePoint Stop Payments offers the City the ability to request to stop payment on a check online. By default, stop payments are placed for 12 months, but the term can be changed to either 6 or 24 months. A stop payment can also be revoked online. The City can expect access to 45 calendar days of historical data about specific stop payments or checks paid. If the check has not cleared, then stop payment options are available, if the check has cleared, the link is to the paid check image. Check images are available by 7:00 am local time the day after they are paid. The SinglePoint Stop Payment Expiration Report reflects stop payments that are in effect, regardless of how the original stop payment order was placed. Please see the Exhibits Section of this RFP to view this report as well as the Stop Payment Daily Activity report. • Provide support in answering questions, trouble-shooting problems and resolving issues in a prompt manner; Our Government Banking Commercial Customer Service Team is your day-to-day contact for all problem resolution and ongoing service maintenance of your banking relationship. U.S. Bank City of Arlington, WA When you call U.S. Bank’s Commercial Customer Service (CCS) 1.800.346.2249, a service banker will answer the phone to provide immediate service. Dial the number and try it now! CCS will answer questions, complete adjustments, provide fraud resolution, and facilitate accurate and same-day service while ensuring the most appropriate action is taken and your satisfaction is achieved. If an email or voicemail message is left for a specific service banker by 3:00 p.m., you will be contacted the same day for resolution. If resolution cannot be provided in the initial call, then the details of the call will be researched and follow-up will continue until there is resolution. Complex issues are also personally managed and tracked by the Customer Service Banker who initially took the call until it is resolved. It is U.S. Bank’s intent to resolve all issues on a same-day basis. • Provide means to inquire about canceled checks and stop payment on checks upon proper authorization. U.S. Bank SinglePoint® Stop Payment has powerful search and stop payment tools that will enable the City to initiate stop payments online. This is accomplished by simply initiating a check inquiry by entering or importing stop payment requests. Although the City will attempt to minimize daylight and overnight overdraft situations, it recognizes that there are times these situations could occur. (Note: an overdraft has not occurred within current institutional memory.) U.S. Bank will honor all City authorized checks in the event of an overdraft. The City will be contacted by telephone, should an overdraft occur, in order to ascertain the cause of the overdraft and the source of funds to correct it. Should the overdraft be a result of bank error, we will back date the deposit and cover all fees. If not, there is an analysis fee of $35.00 per occurrence and overnight interest at a rate of U.S. Bank’s Prime Rate + 4.0% on and actual 365/366 accrual basis. Should the City exceed 5 days in an overdrawn status and/or exceeds the collected funds in all accounts, U.S. Bank may return items; fees will apply. : The City may require trust and escrow agent services to hold letters of credit and other third party commercial documents. The institution will, in most cases, be required to take physical custody of these securities, notify the Parties of their expiration thirty days prior to termination of the agreement and accept renewal or replacement of instruments. The City may also require retainage accounts be maintained for contractors choosing to place retainage funds in an interest bearing account. U.S. Bank is a leading provider of Corporate Trust and Escrow Agent services throughout the United States. We provide these services from all of our 49 Corporate Trust Services locations, including our Seattle office, where we would handle the administration of the accounts for the City of Arlington. We are highly experienced in providing Escrow Agent Services including the ability to hold letters of credit and other third party commercial documents. U.S. Bank Corporate Trust Services has the ability to take physical custody of these securities, notify the Parties of their expiration thirty days prior to termination of the agreement and accept renewal or replacement of instruments. U.S. Bank Corporate Trust Services also handles numerous retainage escrow accounts throughout the country and in our local Seattle Office. We U.S. Bank City of Arlington, WA maintain these accounts for contractors choosing to place retainage funds in an interest bearing account. Escrow Services are a large part of U.S. Bank Corporate Trust Services business. Across our national business line we work on more than 1,000 such transactions year-over year. In addition to our vast experience with these kinds of transactions, U.S. Bank also offers – • Prompt, reliable review and execution of documents by highly knowledgeable professionals; • Quick response time for documentation turnaround and in setting up escrow and disbursement accounts; • A wide variety of money market funds and accounts; • The safety and stability of a large, highly rated financial institution, and • Competitive fees. Locally our staff of Account Managers in the Seattle U.S. Bank Corporate Trust Office has on average over Twenty Five years of experience working in Corporate Trust Services. Our specialists at U.S. Bank provide you with the level of service you’re looking for to make escrow holdings one less thing to worry about as you complete your critical transactions. We’ve built a reputation as a provider that responds quickly to your needs and executes transactions to meet your deadlines, no matter how short they may be. Handling an escrow transaction involves capabilities in a variety of areas. You can rely on the experts at U.S. Bank to provide you with: • Document review • Investment vehicle options • Payment and deposit services • Detailed activity and asset reporting U.S. Bank will provide an escrow agent service to administer and maintain retainage deposits for contractors to place retainage funds in an interest bearing account We’re ready to work with you every step of the way to help accomplish your escrow transactions timely and effectively The City currently is not requiring safekeeping services. However, the institution may, in the future, be required to provide safekeeping facilities and services for the City’s investment securities. Safekeeping services include (but are not limited to): • receive/deliver securities on a delivery versus payment method; U.S. Bank Safekeeping is a direct member/participant with the Federal Reserve Bank and the Depository Trust Company. Securities are received and delivered on a delivery versus payment method. • price securities to market; U.S. Bank Safekeeping prices securities in the morning on the last business day of the month. Pricing is provided at no extra cost. • collect coupon bond interest; U.S. Bank City of Arlington, WA U.S. Bank Safekeeping collects all coupons and other periodic income on securities held and processes the payments per instructions received from an authorized customer representative. • provide delivery confirmation on new security purchases; Trade confirmations are available via U.S. Bank’s SinglePoint application. Confirmations can also be mailed on the day the trade is entered to our system of record. • provide a monthly statement of holdings; The Safekeeping Monthly Activity and Position statement is available on SinglePoint on the 1st business day of the month. It can also be mailed within 3 business days of the first of the month. • register or transfer securities; U.S. Bank Safekeeping is able to transfer and/or register securities held for our clients per their instructions. • verify holdings as of specific dates for audit purposes; Holdings statements are available on an ad hoc basis upon request from an authorized customer representative. • credit the City’s account for interest and principal payments on the day received; U.S. Bank Safekeeping collects all coupons and other periodic income on securities held and processes the payments on the day received. • provide maturity and interest payment notices at least 5 days prior to payment date Credit Advices are available via SinglePoint 7 business days prior to payment date. Maturity Notices are available via SinglePoint 14 days prior to maturity date. The City invests in U.S. Treasury and Agency securities that require safekeeping services and other securities allowed by Washington State Statute. The successful bidder will, at that time, be required to comply with all State and Federal regulations regarding safekeeping of municipal securities. U.S. Bank Safekeeping is able to hold all Fed and DTC eligible securities, in addition to physical certificates. This includes, but is not limited to, US Treasury and Agency securities and municipal bonds. The financial institution will be required to provide a supply of coin rollers, locking bank bags, tamper-proof plastic deposit bags, deposit slips, advance travel and other miscellaneous checks, and endorsement stamps for each location. (See Attachment B for the number of endorsement stamps needed.) The cost of such supplies shall be charged against the City’s earnings credits. U.S. Bank City of Arlington, WA U.S. Bank will provide the supplies listed above and process the charges to the account or to the Monthly Analysis, whichever the City prefers. Banking Supplies will be provided to the City as outlined above and covered by the $3,500 Earnings Credit Bonus once awarded the banking contract. Training, operating manuals and ongoing support are to be supplied by the bank for all services provided. U.S. Bank SinglePoint® Training Options Attend scheduled Webinar training sessions—Webinar training sessions are a prerequisite to individualized training requests. Scheduled online training sessions are available Monday through Friday at 11 am PT and are approximately 60 minutes long. The training session will walk through logging on, navigation, Information Reporting and System Administration. All callers are muted to protect their anonymity. Questions can be submitted through a private chat session with the trainer. Sessions are available at no charge. Request individualized training—Training topics will be tailored to your needs. There is no limit to the number of users attending and can be accommodated via webinar or in-person at your office. Online course—Access self-paced training eLearning course anytime, at no cost. Online demo—The detailed demo provides a convenient place to view the look and feel of most pages within the SinglePoint services. A helpful Hint area at the top of each demo page tells you what to do. Online tools within SinglePoint—Every page in SinglePoint has a link to page-specific assistance. Certain fields have a link to additional context-specific information. The SinglePoint Help Center provides information about all SinglePoint services and includes user guides in PDF format. The financial institution will provide the City with the ability to initiate wire and ACH transfers via online banking. ACH transactions consist primarily of debt service, retirement fund transfers, state and federal tax payments. The online banking platform will require a secure separation of duties for initiation and approval by city staff. U.S. Bank offers a variety of Automated Clearing House (ACH) and Wire services that allows the City to eliminate paper checks by using electronic transactions. The ACH Network is a nationwide batch-oriented electronic funds transfer system governed by the NACHA OPERATING RULES, which provides for the interbank clearing of electronic payments for participating depository financial institutions. The Federal Reserve and Electronic Payments Network act as ACH Operators, central clearing facilities through which financial institutions transmit or receive ACH entries. Transfer & Manage Money SinglePoint enables you to initiate ACH, book transfers, and wire transfers. SinglePoint ACH is a full-service application that creates, stores, and originates ACH transactions from any location at any time, enabling the City to originate ACH transactions online through a Web browser. ACH transactions can be used for many purposes, including: U.S. Bank City of Arlington, WA Direct Deposit of Payroll Pre-Authorized Debits Corporate-to-Corporate Payments Tax Payments Book Transfer allows you to move funds from one U.S. Bank account to another and have those funds immediately available in the destination account. In addition, SinglePoint offers the flexibility to initiate Access Wire Transfers and Wire Activity reports from any PC with Internet access. A VeriSign token is required for users to access the wire transfer service. Features include: Create book transfers up to 30 days in advance Choose from more than 14 ACH transaction types, including tax payments, payroll, cash concentration and others Notifications of Change are automatically retrieved and update transactions within templates Store and reuse transaction details Set recurring payment schedules Transmission is made over a secure FTP Passwords are encrypted during transmission SinglePoint Security - There is no limit to the number of City users accessing SinglePoint. The SinglePoint system administrator serves as your “security manager.” U.S. Bank assigns the system administrator at set-up after all necessary clearance documents are processed. The system administrator: ■ Creates and deletes SinglePoint users ■ Requests and maintains tokens, required to initiate payment transactions ■ Sets and modifies user payment and transaction quantity limits ■ Assigns user access to services and accounts ■ Assigns initiation and approval entitlements ■ Resets own and other users’ passwords when necessary (regular users can change their own passwords) Audit features include: ■ User activity audit reporting for all of the services ■ Token maintenance and status reports ■ User profile reports ■ Account profile reports ■ Service profile reports SinglePoint offers dual system administration as an option upon set-up. If the City selects the option requiring dual system administration, then all changes to user access or limits require a second system administrator approval to process. The City can determine which accounts, services, functionality, and limits each user can see and use in SinglePoint. Administrators can add, copy and reuse user profiles to streamline the set-up of new users. Modify user entitlements, account access, and transaction limits at any time with immediate updates. Change user status for interim periods. Assign entitlements by U.S. Bank City of Arlington, WA service area, function and account access. Set user payment limits for ACH, book transfers and wire transfers. Wire Security and Notifications - If the City chooses to initiate wires online, each authorized user would have an initiation and approval limit, a wire pin and a token. An additional layer of security can be added by using SinglePoint Essentials’ External Messaging service. With this service, the City can choose to send an email notification to designated personnel every time a wire is initiated, sent or received. Voice-initiated wire transfers also require pre-authorization by designated Treasury Management signers. The City offers and encourages direct payroll deposit for its employees. The City pays its employees on the last working day of the month. On an average payroll, 126 employees receive direct deposit, which generates approximately 175 transactions per pay period due to many employees having multiple bank account transfers. The City is considering moving to a bi-monthly pay period. Currently, the City tries to transmit payroll data to the institution before 4:00 p.m. the second working day prior to payday. Deposits must be made into the employees’ accounts by 12:01 a.m. on payday. Any deviation from these time limits must be stated in the bid. Any bidder with less restrictive time requirements will be given favorable consideration. The City from time to time may need to transmit the payroll data one day prior to the pay date. We are therefore requesting bids on both a one-day and two-day turnaround. We are interested in what the deadlines for transmission are for both situations. U.S. Bank will see to it that direct deposits will be made to employee accounts by 8:00 a.m. on payday provided that the files are received for processing as outlined above. U.S. Bank accepts and processes PPD payroll files for next day credit. However, in accordance with NACHA rules, the receiving institution is required to make funds available to your employees at the opening of business the next day. U.S. Bank strongly suggests that the City sends their payroll file two days prior to the effective date by 8:00 p.m. PT to ensure employees are paid timely. Additionally, U.S. Bank accepts and will process same-day effective dated files originated through SinglePoint® ACH services for transactions exclusively between U.S. Bank accounts. U.S. Bank offers two methods for files to be submitted for ACH processing: Direct Transmission or SinglePoint ACH. U.S. Bank’s ACH Direct Transmission Service accepts both industry standard (NACHA) and proprietary data formatted files and provides a confirmation notice back to you that your file was received for processing. Files received by 8:00 p.m. PT are processed on the same business day, regardless if the file effective date is one or two business days in the future, and accounts are credited/debited on the scheduled effective date. A file confirmation supplies information from the file including file creation date and time, file ID modifier, batch count, entry/addenda, debit/credit amount, and positive or negative confirmation regarding the file. U.S. Bank City of Arlington, WA SinglePoint ACH provides you the ability to originate ACH transactions on-line through a secure U.S. Bank web site. Transaction data is stored on-line by U.S. Bank, accessible 24 hours a day/7 days a week. ACH Files that have been initiated and approved in SinglePoint by 9:00 p.m. PT are processed on the same business day, regardless if the file effective date is one or two business days in the future, and accounts are credited/debited on the scheduled effective date. ACH Prenotes U.S. Bank also recommends processing prenotes for each type of ACH transaction. The prenote is an excellent way to ensure that the bank ABA and receiver account number are accurate. We suggest initiating prenotes six business days in advance of live transmission in accordance with NACHA rules. Workplace Banking Perks – Banking Services for Employees In addition to the convenience and savings that U.S. Bank provides to our clientele, U.S. Bank offers to all employees of the City of Arlington a special package of banking products and services. U.S. Bank WorkPlace Banking features special membership offers, discounts, and bonuses on a variety of valuable products and services for employees who use direct deposit. The program is an excellent benefits package that offers your employees real value at no cost to the City or its employees. Employee Benefits include: ■ Checking with no service fee; no minimum balance requirement ■ Free first order of WorkPlace Banking checks ■ Visa Check Card ■ No returned checks with U.S. Bank overdraft protection ■ All accounts on one easy-to-read statement ■ No fee Visa card upon qualification ■ Bonus interest on CDs/IRAs ■ Special mortgage loan benefits ■ Installment Loan discounts ■ Discounted safe deposit box ■ Free financial consultation ■ Free Notary Public service ■ Free U.S. Bank online Bill Pay Payroll Cards For employees who do not have checking accounts and are required to use electronic deposit of their payroll checks, we offer payroll cards which are reloadable. The City sends an ACH file (like you would for direct deposit) into a specified routing and account number attached to this payroll card. The funds are available to the employee once the funds are received. The employee has the option to use a check to cash out the funds or use the card as a debit/visa card. The Financial institution will provide the City with the ability to accept payment through the use of credit cards. The City currently accepts MasterCard, Visa and Discover credit cards in person and on-line for collection of recreation, certain permit fees, and utility bills and may expand for other types of collections as well. The City currently has three locations that accept credit cards, with the possibility of more locations in the future. The City U.S. Bank City of Arlington, WA will be credited daily for the gross amount of the bank card transactions. Any sales discount fee or percentage proposed will be billed at the end of each month as part of the activity charges. U.S. Bank Payment Solutions has been providing electronic payment solutions to merchants since 1968. U.S. Bancorp operates a wholly-owned subsidiary, Elavon, specializing in providing integrated credit and debit card payment processing services, and electronic check/check verification processing services. Through its alliance with its payment platform network, Elavon, U.S. Bank Payment Solutions provides processing services for more than one (1.5) million Merchants worldwide and processes more than $200 billion in payments, making U.S. Bank Payment Solutions the 2nd largest merchant processor in the United States in terms of number of locations / client relationships supported, and the 4th largest processor in terms of volume processed annually. Elavon was founded in 1991 to provide technically sophisticated, service-oriented solutions to service the credit card processing needs of the merchant community. Unlike most organizations, both our front end and back end processing systems are managed from within. For you this means that U.S. Bank / Elavon has direct influence over all aspects of electronic payment processing including electronic authorizations, settlements and clearing, reporting, and customer service. All Discover, MasterCard, and Visa association authorization, interchange, assessment, and settlement fees are passed at cost. Elavon utilizes a sophisticated qualification system to ensure each transaction receives optimal interchange fees. Interchange and Assessment pricing is dependent upon interchange and other fees imposed on all credit card processors by Discover, MasterCard, and Visa and other third parties. Elavon will pass through increases or decreases of these fees imposed by the Discover, MasterCard, and Visa Association upon written notice. The City currently does not utilize ‘night drop’ deposits after hours and does not anticipate this service in the near future. U.S. Bank is pleased to accommodate the City’s night depository needs. U.S. Bank will provide the City with tamper evident bangs at no cost. Should the City require lockable depository bags, U.S. Bank will apply the charges to your account analysis to be offset with earning credit on compensating balances. Night drops are available 24 hours per day, seven days per week. Tamper evident polyurethane (poly) deposit bags must be used for night drop, drop off and armored carrier delivery of branch cash deposits. The City is utilizing a purchasing card program for making routine purchases in lieu of the normal requisition/purchase order mode of operations. U.S. Bank has partnered with the State of Washington to offer our P-Card, One Card, Corporate Card and Travel Card services to all governmental entities in the State. Contract # 00612 – Effective date January 1, 2014 through December 31, 2018 with the option to extend for up to two years at the mutual agreement of the State of WA and U.S. Bank. State Contract Benefits: U.S. Bank City of Arlington, WA No implementation charges No card fees No minimum spend to earn rebate Late fees = 1% after 30 days VISA fraud coverage Access Online account management tool General Administration Program Resources http://www.ga.wa.gov/pca/VisaProgram.htm Clayton Long – clayton.long@des.wa.gov - FAQ’s link - Washington State Contract - Washington State P-Card Policy - Rebate Information As a member of the State of Washington Purchasing Cooperative and a state agency, the City of Arlington is eligible to participate in the commercial card programs negotiated by the State on behalf of its own agencies as well as members of the purchasing cooperative. Specific information with regards to the program, including financials may be found at: http://www.des.wa.gov/Pages/default.aspx The City relies on on-line transactions. Please note the specifications (equipment/software) needed for an automated wire transfer, ACH debit and credit, credit card, balance reporting and any other automated systems included in this proposal. Any costs associated with automated data and equipment should be identified on the Bid Sheet form in Attachment B. For Internet-based banking applications such as SinglePoint, U.S. Bank hosts the secure Internet connection, so no communication protocol is involved. For direct transmission of files, such as ACH or ARP, the Bank supports a wide range of protocols including: Secure File Transfer Protocol (SFTP) Secure Command Line File Transfer Protocol (FTP) Secure Hypertext Transfer Protocol (HTTPS) SinglePoint® exports current or previous day data into a comma-separated value (CSV) file, which is ideal for importing into other applications. SinglePoint® is browser-based and doesn’t require client-side software or any special middleware to operate at the customer site. In general, SinglePoint® is tested and certified for Windows environments. Below are minimal and optimal system requirements: Users may also need Adobe® Reader and Microsoft® Excel to view and print certain reports. COMPONENT OPTIMAL MINIMUM U.S. Bank City of Arlington, WA *Vista Certified NT, ME, XP or Vista, Mac OSX Browser IE 6.0 with SP2 or IE 7.0 IE 6.0 or higher with 128 bit encryption SPECIFICATION DESCRIPTION include: 1) Comma Separated Values (CSV) 2) PDF 3) HTML banking, including extensive self-administration capabilities that allow the modern FTP standard = "Secure FTP." Secure FTP offers self-service FTP options such as HTTPS and Secure FTP and VPNs, all of which use channel level encryption. U.S. Bank also supports PGP file-level encryption. SinglePoint® requires login ID and password, and SecurID Tokens are U.S. Bank supported transmission methods include five Internet-based options: Secure Hypertext Transfer Protocol (HTTPS, Web browser based) with 128-bit SSL encryption File Transfer Protocol Secure (FTPS-SSL) with 128-bit encryption Secure File Transfer Protocol (SFTP-SSH) using AES 256-CBC encryption Secure AS2 (formerly called EDI/INT) Internet Virtual Private Network (VPN) The bank also supports VPN leased circuits over a DES3 encrypted channel, as well as value added network (VAN) transmissions. Optional PGP file level encryption is also available. In addition to the requirements listed above, the proposal shall identify proposed fees for the following services: • Automatic Account Reconciliation U.S. Bank Account Reconciliation delivers prompt and accurate computer-generated reports on paid and outstanding checks. Our services reduce your clerical work, help reduce fraud, and give you more time to run your business. Our services are designed to fit with your computerized accounting system and provide you flexible reporting options for a wide variety of accounting cycles. U.S. Bank City of Arlington, WA View reports and data based on your requirements—U.S. Bank provides your information via hard copy report, data transmission or online through SinglePoint® Account Reconciliation. Select a reconciliation option to meet your needs—U.S. Bank provides two options to help reduce or virtually eliminate staff time for reconciliation. − U.S. Bank Partial Reconciliation: Provides paid checks and missing items in numerical order. The Paid Only Report provides detail including date paid, dollar amount, and check number of each check. Flexible cut-off times allow you to customize the statement period. − U.S. Bank Full Account Reconciliation: Provides a set of comprehensive reports listing all outstanding and paid checks along with all other check activity. With Full Reconciliation, you simply forward to U.S. Bank the register information on all checks issued along with a list of deleted or cancelled items. Your issue information is then compared to your account activity to produce the reports. Since U.S. Bank automatically adjusts and corrects mis-encoded items, this service virtually balances your checking account for you. Automatically cancel outstanding issued checks—You can cancel outstanding issued checks by simply setting specified stale date parameters using our Stale Date processing option. U.S. Bank will automatically cancel any issued items that exceed these limits. • Courier services U.S. Bank highly recommends the City contracts with a reputable courier. We are happy to place these charges on Analysis at the City’s request. • Lockbox services While others have exited the Lockbox Services sector, we have invested in upgrading technology and local processing for our important clients. Each of our regional sites, Seattle, Portland, and Denver, have been upgraded to Image Platform Systems which includes an image-based platform using front-end imaging workflow, full color image for Web/CD-ROM/transmission output, scannable processing, and uses Image Exchange to deliver check deposits to Item Processing versus the traditional paper delivery to enhance overall processing efficiencies, thus reducing manual intervention and processing errors. U.S. Bank offers the most advanced multi-product line of lockbox services. Our quality service, image technology, and diverse remittance reporting differentiates us from other providers. U.S. Bank’s geographical presence and expertise enable us to provide the City of Arlington with the best choices related to remittance processing, availability, mail time, and reporting. U.S. Bank has provided remittance processing services for over 50 years. We currently process over three million payments for thousands of customers each month. U.S. Bank Wholesale Lockbox accelerates the handling of your remittances by reducing time lost in mail float, processing and delivery. Our lockbox processing and imaging systems speed U.S. Bank City of Arlington, WA the availability of funds and provide the detailed information you need to make quick, informed business decisions. Accelerated funds availability—U.S. Bank Wholesale Lockbox offers a cost- effective solution for converting remittances into earning assets as quickly as possible. We provide same-day availability information on your deposits, allowing the City to use funds as soon as they are available. Enhanced management of your receivables—U.S. Bank Wholesale Lockbox reduces clerical time for processing and depositing. We perform this back-office process, meeting critical clearing deadlines and maximizing funds availability. Spending less time on processing and depositing enables you to focus on City business. Improved balancing accuracy—Payment processing and data capture are customized and performed to your specifications. Detailed payment information is available through data transmission or U.S. Bank SinglePoint® Information Reporting so you can immediately update your accounts receivable records. Convenient payment alternative—You can add an optional payment method to your invoice to allow students to use a credit card for ad-hoc payments. This additional payment method may enhance the volume of receipts and provide added convenience for your students. Up-to-date information aids cash forecasting—U.S. Bank Wholesale Lockbox provides you the information you need to make informed business decisions. Intra- day lockbox deposit and check-clearing information are available via U.S. Bank SinglePoint® Information Reporting. Internet access to color images of your checks and remittances is also available the same day the payments are processed. Streamlined mail processing—Early and frequent mail pickups reduce mail delivery times, allowing for earlier processing. Multiple locations to choose from—U.S. Bank has a national network of wholesale lockbox processing sites. Our services deliver enhanced imaging and standardized reporting capabilities in Chicago, Cincinnati, Denver, Los Angeles, Milwaukee, Portland, Seattle, St. Louis and St. Paul. Let your Treasury Management Consultant help you determine which sites best meet your specific needs. • Payment of financial system upgrades and fees through use of service charge credits. In order to enhance our banking/financial processing capabilities, we may wish to pay for these fees through service charge credits. U.S. Bank agrees and is pleased to offer the City of Arlington an Transition Bonus of $3,000 to assist in this process. • Other services provided by your institution that would be beneficial to the City of Arlington, but have not specifically been addressed. Please itemize on the Bid Sheet form in Attachment B. On-site Electronic Deposit (OED) U.S. Bank City of Arlington, WA For payments received at the local office, drop box or U.S. mail, U.S. Bank On-Site Electronic Deposit service would enable the City to take advantage of electronic check conversion technology. Using U.S. Bank’s scanning equipment; the City could electronically deposit all checks (consumer and business), eliminating physical delivery of deposits to the bank. Checks are imaged, eliminating any photocopying; the deposit is balanced and sent to the bank electronically. The City would have image access to the deposits for up to 2 years. The administration of the program and detailed reports are available via SinglePoint. Electronify paper checks at point of receipt—When payment is dropped off or mailed to the City, your employee simply scans the check in order to deposit the item electronically. Accelerate posting of payments—On-Site Electronic Deposit reduces float inefficiencies by enabling you to make same-day deposits quickly and easily without leaving the office. Capture valuable remittance data – Payment remittance data, including images of payment coupons and large remittance documents (8.5 x 11 inches), can be captured when the check is scanned. Remittance data can be downloaded or sent via transmission for posting to your accounts receivable system once or multiple times per day. You also have the ability to apply payments from the Electronic Deposit Manager to either outstanding customer invoices or general ledger accounts within supported accounts receivable or accounting software packages. Check Filter – U.S. Bank Check Filter helps customers protect their accounts against unauthorized check transactions and potential fraud, giving them greater control and security on their accounts. It is a simple, efficient, and cost effective tool that can be used as an alternative and/or complement to more sophisticated check fraud prevention products such as Positive Pay, Reverse Positive Pay, etc. ACH Filter and Blocks – U.S. Bank ACH Filter and Block Services allows the City to authorize specific Automated Clearing House (ACH) debits and/or credits or prevent all ACH transactions from posting to your U.S. Bank account. These services protect against unauthorized or erroneous ACH entries. U.S. Bank City of Arlington, WA eCheck Block ‐ Business eCheck Block is intended to prevent potentially unauthorized transactions from posting to the City’s checking and money market accounts. It provides you with the option to accept or reject converted check items such as ARC, POP or RCK, as well as WEB/TEL transactions, from posting to your account. U.S. Bank Workplace Banking is designed to benefit you and your employees. It is a package of banking products and services that will increase your employees’ use of direct deposit and thereby reduce your payroll processing costs. U.S. Bank Workplace Banking features special membership offers, discounts and bonuses on a variety of valuable products and services for employees who use direct deposit. The program is an excellent benefits package that offers your employees real value. And it doesn’t cost you a penny. Workplace Banking saves you money by simplifying your payroll processing—Employee use of direct deposit streamlines payroll operations and reduces payroll processing costs. Employee Benefits: Checking with no service fee; no minimum balance requirement ($10 service fee when direct deposit does not occur in a cycle, first two cycles waived after opening account) Free first order of Workplace Banking checks Visa Check Card No bounced checks with U.S. Bank overdraft protection All accounts on one easy-to-read statement Investments – Money Center U.S. Bank’s Money Center will provide up-to date investment rates and will work closely with the City to ensure the investment needs are met and followed as per the City’s investment policy. The Money Center Department of U.S. Bank N.A. provides a full range of fixed income products with a focus on short-term money market investments. Investment purchases, interest credits and maturities can be either settled through your DDA or wired to or from other institutions, as you require. Managing your portfolio can be a challenging task. A Money Center sales representative can help you tailor financial solutions for your investment portfolio. Investment Strategies to meet your needs Build and manage your investment portfolio to meet your investment objectives: • Laddering maturities combines higher yielding longer securities with liquidity of short-term securities • Diversification allows investors to spread credit exposure across different issuers • Monthly, quarterly, semi-annual or annual income payments allow investors to schedule payments to meet their cash flow needs Variety of Investment Products The Money Center Department provides a variety of investment products including: • United States Treasury securities and government agency securities • Certificates of Deposit • Commercial Paper • Repurchase agreements • Eurodollar deposits U.S. Bank City of Arlington, WA • Eurodollar, U.S. Bank N.A. Commercial Paper and Repurchase Agreement DDA Sweeps Loans U.S. Bank has a seasoned credit team available to address the City’s potential credit needs. The continued strength of U.S. Bank’s credit ratings has resulted in significant increase in the number of credit requests. One of the decisioning criteria for whether or not our credit team can entertain a specific credit request is whether U.S. Bank is or is not the requestor’s main bank. Standby letters of credit are targeted to U.S. Bank clients that desire support for payment under open account terms, contract bidding, performance bonds, warranties, or credit enhancements for financing such as commercial paper back up facilities. Available credit and rate will be determined based on the specific credit request of the City, at the time of the financing needs. Government Leasing and Finance At U.S. Bancorp Government Leasing and Finance we understand that a public offering is not always the solution for public entities. Our private placement funding structures are tailored specifically to meet the needs of our clients. Government entities rely on U.S. Bancorp for financing a wide variety of essential use equipment and projects, including: • Construction equipment • IT and telecom hardware and software • Parking and utility meters • Energy management systems • Portable buildings • Project “soft costs” including installation, shipping, training, software and maintenance • Vehicles The financial institution will provide the City with access to internet on- line banking, which, at a minimum, will include the following capabilities: • Secure, dual administration (separation of duties) for initiating and approving user access, permissions, wire transfers, ACH transfers, template setups, etc. System Administration via SinglePoint offers the opportunity to manage access to banking services, accounts and actions, and to rename your accounts, if desired. Through administrator-placed entitlements, users can only access the accounts or perform the services for which they are assigned. Upon initial setup, per your instructions, an administrative user is created within SinglePoint. The system administrator user has the ability to create and entitle additional system administrator users to perform administrative functions. An administrative user is entitled to all services and to all accounts associated with those services (per your profile) and upon initial login to SinglePoint. SinglePoint Administration Features Dual administration function requires approval by a second system administrator to U.S. Bank City of Arlington, WA add, delete or modify users Ability to quickly examine and assess user, account and service configurations from profile reports Establish initiation and approval limits for wire transfers, ACH payments and book transfers Assign individual services and specific account access to individual users Modify user entitlements, account access and transaction limits Assign entitlements for all SinglePoint services from a single main page Copy and reuse users profiles to streamline the setup of new users Reset user passwords and reassign payment tokens SinglePoint® is browser-based and doesn’t require client-side software or any special middleware to operate at the customer site. In general, SinglePoint is tested and certified for Windows environments. • Future dated wire transfers and ACH transfers. SinglePoint Wire Transfer and ACH Origination will allow the City to submit wire transfers and ACH files up to 30 days in advance of the effective date. • Ability to identify via on-line reporting, by numeric code or text, the originating location of deposits made by City departments. Current Day information is available by 7:00 AM PT and is updated is updated at different times for different applications. Wire transfer data is updated continuously from 5:30 a.m. through 3:00 p.m. Pacific Time. ACH data is updated twice a day at 5:00 am and 7:00 a.m. Pacific Time. Detail of information provided is based on the information received with the transaction. Example: Deposits will include the Location Number if one has been assigned, the date of the deposit, the amount of the deposit ACH transactions will include the date of the transaction, bank reference number, transaction reference number and the identifying transaction information provided by the initiator. Checks paid will include the date paid, the amount, the check number and Location number (if assigned). • Image viewing of deposit tickets U.S. Bank SinglePoint® Image Access enables the City to retrieve and review sharp, detailed images of all paid checks and other paper items during the month using the Internet. • Image viewing of cancelled checks U.S. Bank SinglePoint® Image Access will enable the City to retrieve and review sharp, detailed images of all paid checks, deposit tickets, deposited checks, and paper U.S. Bank City of Arlington, WA debit and credit memos using the Internet. Images of returned deposited items, returned redeposited items and advices are also available. ■ Powerful research tools —In SinglePoint Image Access, the flexible search tool lets users search by transaction type, account number (or “all accounts”), check number, amount or date. Pre-filled dropdown selections make criteria selection fast. Sort search results by any column with one click. Search results can also be downloaded for further research. ■ Respond quickly to inquiries about issued checks—Retrieve an image in seconds rather than waiting hours or days to receive a copy from the bank. Enhance the ability to serve the City’s customers and communicate with vendors. ■ Access up to seven years of images—The City can expect to view images immediately if they are less than 90 days old. Paid check images can be viewed by 7:00 am local time the day after they are paid. Images older than 90 days and photocopies can be requested online from our archive. Requests for digital archived images appear in an Image Inbox and can be shared with others. ■ Zoom in on the details—The SinglePoint Image Access image viewer offers front and back, zoomed in and out, rotated and inverted views. Also, users can zoom directly to the endorsement, signature line, routing number or bank-of-first-deposit. ■ Save, print and share images—Users can save images for historical reference and paid check confirmation. Front and back images can be saved as standard .png files or in .zip files. You can print images to local or network printers and print multiple images at one time. U.S. Bank SinglePoint® Issue Maintenance will provide the City with the ability to input issue and cancel information and update issue files hourly online. Access to transmitted file confirmations is also available for direct data transmissions. ■ Enter issues and cancels throughout the day—For newly issued or canceled checks, the City can enter check issue and cancel information online. Up to 10 items for multiple accounts can be added on a single page with no limit on the total number of transactions that can be entered throughout the day. ■ Send updates hourly—Issue files at the bank, including the teller line, are updated hourly, ten minutes prior to the hour, from 4:50 am to 7:50 pm PT each business day. ■ Automatically create cancels—When placing stop payments on SinglePoint, users can be set up to have the corresponding issue information automatically canceled. ■ View and track transaction history summary and detail—History details include check number, dollar amount, date, action, submission date and time, approver and payee name information. You can also view an audit log of all issue and cancel activity in three levels of detail. • Image viewing of Positive Pay exception items U.S. Bank SinglePoint’s image-enhanced Positive Pay product provides real-time access to images of exception items over the Internet. The City can view, manipulate and print images of exception items and enter pay/no-pay decisions on that same exception list in SinglePoint. • Stop payments The City has various options when a stop payment is needed. • Contact our Commercial Customer Service group to place the stop payment. U.S. Bank City of Arlington, WA • Visit a U.S. Bank branch to request a stop payment be placed. • Place the stop payment online utilizing SinglePoint U.S. Bank SinglePoint® Stop Payments enables businesses to manage their financial position with powerful search and stop payment tools. ■ Initiate stop payments online conveniently as you work—SinglePoint Stop Payments provides three methods of initiating stop payments: after initiating a check inquiry, by directly entering a stop payment request, and by importing stop payment requests. Each method supports single, batch, and range entry. By default, stop payments are placed for 12 months, but you can adjust the term to either 6 or 24 months. You can also revoke a stop payment online. ■ Save time by entering multiple stop payments from all accounts on one entry page—You can define ranges up to 50 checks and process a maximum 2,500 check inquiries or stop payments in a single submission. You can also revoke stops and batches of stops at the same capacity and rate. ■ Inquire and act on checks paid—Find up to 45 days of historical data about specific stop payments or checks paid using the robust record search function. Search results include all stop payments placed at U.S. Bank, even stops that were placed outside of SinglePoint. From the results, click a link that takes you to your next logical action. If the check has not cleared, then stop payment options are available. If the check has cleared, the link is to the paid check image. ■ Quickly view images of specific checks that cleared within the last 45 days—If you plan to stop a check and after inquiry you find that it’s cleared, the check’s image is available from a “View image” link on the Check Inquiry Results page. Check images are available by 7 a.m. local time the day after they are paid. ■ Track and manage your stop payments—You can search for stop payments initiated up to 45 calendar days in the past. View stop payment history and generate detailed daily activity reports on stop payments initiated within SinglePoint. A stops expiration page identifies which stop payments will expire within five days – even if those stops were placed on a system other than SinglePoint. Using this page, you can select any of the expiring or expired stop payments and place a new stop payment to avoid checks being paid. ■ Import CSV files—If you create stop payment or check inquiry data using an internal treasury workstation (TWS) or Enterprise Resource Planning (ERP) application, you can import comma separated value (CSV) files of up to 500 check inquiries and stop payments. ■ Set up optional approval processes—You can enhance security by requiring secondary approval of all stop payments and revocations of orders. The SinglePoint Stop Payment Expiration Report reflects stop payments that are in effect, regardless of how the original stop payment order was placed. Please see the Sample Reports Section to view this report as well as the Stop Payment Daily Activity report. • Funds transfers between accounts SinglePoint Book Transfer will provide the City with the ability to transfer funds between accounts in real time. ■ Create account transfers to up 30 days in advance—For maximum flexibility, funds movement can be future dated. U.S. Bank City of Arlington, WA ■ Enhance security through optional secondary approval—An approval process provides up to two levels of control. Approvers can view full details of each book transfer and confirm approval or make modifications to single or multiple book transfers. Approval levels can be set separately for different users and template or non-template transfers. ■ Use time saving methods—Create templates for commonly used book transfer details and add a schedule to the template so that transfers are automatically initiated based on scheduled dates. Virtually all customer account information is pre-filled with default values and is otherwise selectable from dropdown lists. You only need to select a source, a destination, a value date and the amount. Annotate each transaction using the Memo field. The memos are accessible on the list pages (daily activity and history) and on the Book Transfer reports. ■ Track and manage book transfer information—SinglePoint Book Transfers opens with a daily activity list page and also offers a searchable history page. View accessible checking account balances on the debit (source) account. As an option, if balances are not sufficient in the debit account to process the transfer, the transfer can be held until balances are sufficient. Prioritize the processing order for your book transfers. View the total dollar amount of book transfers on the confirmation page before you initiate them. Access Book Transfer reports of daily activity and historical activity. • The City shall not be charged or penalized for an overdraft if it is the result of the account balance information not being available at the specified time. U.S. Bank will provide the City with overdraft protection including daylight overdrafts. We will honor all demands upon the City’s account(s) including outgoing wire instructions by the City. U.S. Bank does not charge for the overdraft protection. However, there is a negative collected funds charge at the rate of prime (currently 3.25%) plus 4 which is currently 7.25 total. A per item overdraft fee for items we are paying is $35.00 per item. Should the City become overdrawn, there would be a discussion with your relationship manager to discuss how to process the fees, such as processing though to analysis. • The financial institution will provide float information on all deposited items. SinglePoint’s Previous Day detail reporting will display float information for each deposit made by the City of Arlington. Please see the Sample Reports section to view a Previous Day Detail & Summary Report. : The financial institution will provide the ability for automatic withdrawal of payroll taxes by the Internal Revenue Service (IRS). We can accommodate the tax payments needs of the City by allowing payments originated by the IRS to post to a designated checking account. As an alternative we would like to offer our EasyTax service. U.S. Bank EasyTax is an easy-to-use electronic tax payment service. When you enroll, you will receive an access code and Personal Identification Number (PIN) allowing you to initiate federal or state tax payments. It works in any state that allows state taxes to be paid electronically. You may make your payments through the Internet or using a touch-tone phone. The tax payment is deducted from your U.S. Bank business checking account the same U.S. Bank City of Arlington, WA day the tax payment is initiated and make the payments to the appropriate state and the Internal Revenue Service (IRS) on the tax payment due date. Save time and money—Paying taxes is faster with less paperwork. You save the time and expense of writing checks, preparing coupons, making extra trips to the bank, and last-minute tracking down of check signers. Increased accuracy and security—Payment information is repeated back via touch- tone phone for verification. The system will notify you of duplicate payments entered same day for the identical tax authority. After the transaction is complete, you will receive a payment verification number and can request to receive a receipt in the mail or by fax. EFTPS compliance—If you have been notified by the IRS that your company must pay taxes electronically (EFTPS). U.S. Bank’s EasyTax service is a convenient way to meet this IRS requirement. EasyTax Internet tax payment service provides the following functionality: Manage your User Profile—Once you are setup on EasyTax, you can manage your entitlements by adding or removing tax authorities and jurisdictions. View Transaction History—View up to one year of transaction history online by payment jurisdiction. Same Day Payment Deletion—If you made a payment in error the same day, you can delete the payment through the Internet before the payment deadline same day. In the event that the primary proposing financial institution does not provide all requested services included in this RFP, the financial institution will submit as part of its proposal additional partners/providers which do provide these services. It is the sole responsibility of the primary financial institution to secure and maintain the relationship with any additional providers. The primary financial institution, at the time of bid submittal, will identify all secondary providers. U.S. Bank is able to provide all services as requested in this proposal. In the event that the primary proposing financial institution provides services not identified, the financial institution will include those items in the Bid Sheet under the Charges for Services Not Identified Above section. U.S. Bank has provided cost of the various services provided to the City. Additional fee’s may apply for services not discussed, but requested by the City at the time of implementation. Cost of these services can be negotiated upon mutual consent of both the City of Arlington and U.S. Bank. U.S. Bank City of Arlington, WA Tab 5 – Attachment B – Bid Sheet Services Unit Price Estimated Monthly Monthly Charge Explanation General Services 1 Commercial Dep-Cash Vault General ACH Services U.S. Bank City of Arlington, WA $16.08 $6.00 Wire Transfer Image Supplies Bank with Transition Bonus Charges for Services Not Identified Above U.S. Bank City of Arlington, WA U.S. Bank City of Arlington, WA U.S. Bank City of Arlington, WA U.S. Bank City of Arlington, WA Formulas: Please describe: Daylight Overdraft Formula U.S. Bank does not charge for Daylight Overdrafts (DOD). We may contact the City by telephone to determine the source of funds to cover the DOD. If this is a frequent occurrence, we will work with the City to set up an internal guidance line that would limit the phone calls to only those times when the internal limit is exceeded. Most customers do not require a DOD Limit. Overnight Overdraft Formula Overdraft fees are assessed at $35.00 per occurrence and also overnight interest at a rate of U.S. Bank’s Prime Rate + 4.0% on and actual 365/366 accrual basis. Of course these charges do not apply for any situations caused by a bank error. FDIC Insurance Formula Deposit Coverage formula is $0.12075 per $1,000 of collected balances held on deposit at U.S. Bank. Example: 1,000,000 x .0012075 = $120.75 in deposit coverage fee’s Service Charge Credit Formula Earnings Credit: Collected Balance Available for Earnings Credit Services × Earnings Credit Rate × Actual Days in Month ÷ Actual Days in Year Example: 1,000,000 x .35% x 30 ÷ 365 = $287.67 U.S. Bank City of Arlington, WA The undersigned, an institution or firm maintaining branch/office operations within the city limits of Arlington, Washington, submits the following proposal for the City’s banking services for the period April 1, 2016 through March 31, 2019: Authorization: U.S. Bank N.A. February 26, 2016 Institution Name Date 17110 Smokey Point Blvd 360.386.3431 Mailing Address Phone Number Arlington, WA 98223 City, State, Zip Fax Number Samuel G. Griffith Branch Manager By Title Randy Teddy 206.344.2151 Contact Name (if different from above) Contact Phone Number U.S. Bank City of Arlington, WA Tab 6 – Attachment C – Banking Services Agreement BANKING SERVICES AGREEMENT PROVISIONS FOR THE CITY OF ARLINGTON The City of Arlington, Washington, a municipal corporation (hereinafter the "City") and U.S. Bank N.A. , whose address is 17110 Smokey Point Blvd., Arlington, WA 98223 , (hereinafter the "Financial Institution", agree and contract as follows: 1. SERVICES BY FINANCIAL INSTITUTION A. The Financial Institution agrees to perform the services described in this proposal, as Attachment A which is incorporated herein by reference. B. All services, and all duties incidental or necessary thereto, shall be conducted and performed diligently and completely and in accordance with professional standards of conduct and performance. 2. COMPENSATION A. The total compensation to be paid to the Financial Institution shall be detailed in Attachment B. The above fees include all labor, materials and expenses required for the completion of these services. B. Payment to Financial Institution by the City in accordance with the above shall be the total compensation for all work performed under this agreement and supporting documents hereto as well as all subcontractors’ fees and expenses, supervision, labor supplies, materials, equipment or the use thereof, reimbursable expenses, and other necessary incidentals. C. The Financial Institution shall be paid based on the acceptance of the proposed compensation. D. The City shall have the right to withhold payment to the Financial Institution for any service not completed in a satisfactory manner until such time as the Financial Institution modifies such service to the satisfaction of the City. E. Unless otherwise specified in this Agreement, any payment shall be considered timely if a check is mailed or is available within 45 days of the date of actual receipt by the City of an invoice conforming in all respects to the terms of this Agreement. 3. TERMINATION OF AGREEMENT The City reserves the right to terminate or suspend this Agreement at any time, with or without cause, by giving a forty-five (45) day notice to the Financial Institution in writing. U.S. Bank City of Arlington, WA In the event of termination, all finished or unfinished reports, or other material prepared by the Financial Institution pursuant to the Agreement shall be provided to the City. In the event the City terminates this agreement prior to completion without cause, the Financial Institution may complete such analyses and records as may be necessary to place its records in order. The Financial Institution shall be entitled to receive just and equitable compensation of any satisfactory services completed prior to the date of suspension or termination, not to exceed the compensation set forth above. Should the Financial Institution desire to terminate this agreement, written notice of 120 days is required. 4. OWNERSHIP OF WORK PRODUCT Ownership of the originals of any reports, data, studies, surveys, charts, maps, drawings, specifications, figures, photographs, memoranda, and any other documents which are developed, compiled or produced as a result of this agreement, whether or not completed, shall be vested in the City. Any reuse of these materials by the City for projects or purposes other than those which fall within the scope of this agreement or the project to which it relates, without written concurrence by the Financial Institution will be at the sole risk of the City. 5. GENERAL ADMINISTRATION AND MANAGEMENT The Finance Director for the City of Arlington shall review and approve the Financial Institution’s charges to the City under this Agreement, shall have the primary responsibility for overseeing and approving services to be performed by the Financial Institution, and shall coordinate all communications with the Financial Institution from the City. 6. CONTRACT PERIOD The Banking Services Agreement is to extend for a period of three years beginning April 1, 2016 with a two (2) year option to renew the Agreement if both parties agree to such a renewal in writing. The City in order to exercise its renewal option will need to do nothing. At the end of this period, the City may choose to negotiate a renewal option or to request additional proposals. 7. SUCCESSORS AND ASSIGNS Except for assignments arising under operation of law following any merger or acquisition of the Financial Institution, the Financial Institution shall not assign, transfer, convey, pledge, or otherwise dispose of this agreement or any part of this agreement without prior written consent of the City. 8. NONDISCRIMINATION The Financial Institution shall, in all hiring or employment made possible or resulting from this agreement, take affirmative action to ensure that there shall be no unlawful discrimination against any employee or applicant for employment because of sex, race, age, color, creed, national origin, marital status or the presence of any sensory, mental or physical handicap, unless based upon a bona fide occupational qualification, and this requirement shall apply to but not be limited to the following: U.S. Bank City of Arlington, WA employment, advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. No person shall be denied or subjected to discrimination in receipt of the benefit of any services or activities made possible by or resulting from this Agreement on the grounds of sex, race, color, creed, national origin, age except minimum age and retirement provisions, marital status, or the presence of any sensory, mental or physical handicap. 9. HOLD HARMLESS/INDEMNIFICATION The Financial Institution shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the Financial Institution in performance of this Agreement, except for injuries and damages caused by the sole negligence of the City or the City’s agents. 10. LIABILITY INSURANCE COVERAGE A. Insurance Term The Consultant shall procure and must maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Financial Institution, its agents, representatives, or employees. B. No Limitation Financial Institution’s maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Financial Institution to the coverage provided by such insurance, or otherwise limit the City’s recourse to any remedy available at law or in equity. C. Minimum Scope of Insurance Financial Institution shall obtain must maintain insurance of the types and coverage described below: 1. Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. 2. Commercial General Liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall must cover liability arising from premises, operations, stop-gap independent contractors and personal injury and advertising injury. The City shall be named as an g r a n t e d additional insured status under the Financial Institution’s Commercial General Liability insurance policy with respect to the work performed for the City. using an additional insured endorsement at least as broad as ISO CG U.S. Bank City of Arlington, WA 20 26. 3. Workers’ Compensation coverage as required by the Industrial Insurance laws of the State of Washington. 4. Professional Liability insurance appropriate to the Financial Institution’s profession. D. Minimum Amounts of Insurance Financial Institution shall maintain the following insurance limits: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. 2. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. 3. Professional Liability insurance shall be written with limits no less than $1,000,000 per claim and $1,000,000 policy aggregate limit. E. Other Insurance Provision The Financial Institution’s Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance as respect the City. Any Insurance, self-insurance, or self- insured pool coverage maintained by the City shall be excess of the Financial Institution’s insurance and shall not contribute with it. F. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. G. Verification of Coverage Financial Institution shall furnish the City with original certificates o f i n s u r a n c e , and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Financial Institution before commencement of the work. H. Notice of Cancellation The Financial Institution shall provide the City with written notice of any policy cancellation. within two business days of their receipt of such notice. I. Failure to Maintain Insurance Failure on the part of the Financial Institution to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business days’ notice to the Financial Institution to correct the breach, immediately terminate the contract. or, at its discretion, U.S. Bank City of Arlington, WA procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Financial Institution from the City. J. City Full Availability of Financial Institution Limits If the Financial Institution maintains higher insurance limits than the minimums shown above, the City shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Financial Institution, irrespective of whether such limits maintained by the Financial Institution are greater than those required by this contract or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by the Financial Institution. 11. COMPLIANCE WITH LAWS The Financial Institution shall comply with all applicable State, Federal and City laws, ordinances, regulations, and codes that are applicable to the Financial Institution. 12. FUTURE SUPPORT The City makes no commitment and assumes no obligations for the support of Financial Institution activities except as set forth in this Agreement. 13. INDEPENDENT CONTRACTOR The Financial Institution is and shall be at all times during the term of this agreement an independent contractor. 14. EXTENT OF AGREEMENT/MODIFICATION This Agreement, together with all attachments and addenda, represents the entire and integrated Agreement between the parties hereto and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended, modified or added to only by written instrument properly signed by both parties hereto. 15. ADDITIONAL WORK The City may desire to have the Financial Institution perform other services in connection with the banking relationship other than provided for by the express intent of this contract. Any such services shall be considered as additional work, supplemental to this Agreement. Additional work shall not proceed unless so authorized in writing by the City. Authorized additional work will be compensated in accordance with a written supplemental. 16. INSERT A U.S. Bank City of Arlington, WA This agreement is subject to the provisions of the U.S. Bank Services Terms and Conditions (as the same may be modified from time to time, the "Terms & Conditions") and U.S. Bank's Deposit Account Agreement (as the same may be modified from time to time, the "DAA''), the terms of both the Terms and Conditions and the DAA are incorporated herein by reference. To the extent the terms of this agreement contradict the terms set forth in the Terms & Conditions or the DAA, the terms of this agreement shall govern. Agreement between the City and the Financial Institution. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates written below: FINANCIAL INSTITUTION: CITY OF ARLINGTON: By: By: Title:Vice President – Government Banking Title: Date: Date: Print Name: Laurie Baker Print Name: APPROVED AS TO FORM: Arlington City Attorney Date: U.S. Bank City of Arlington, WA Tab 7 – Exhibits In our efforts to conserve natural resources we only include the following exhibits in the original copy of our proposal. If you do need additional copies of the following exhibits, they can be made available upon request. • SinglePoint Sample Reports o Previous Day Summary and Detail o DDA Checks Paid o Returned Items Report o ACH Return NOC Report o Stop Payment Expiration Report o Sample Depository Statement o Sample Analysis Statement • Washington Premier Funds Availability Schedule • Master Services Agreement ( MSA) • Instructions MSA – Government Entities • Appendix A & Instructions • Appendix B & Instructions • Wire Transfer Authorization Form & Instructions • ACH Authorization Form • USB Services Terms & Conditions City of Arlington Council Agenda Bill Item: WS #6 Attachment D COUNCIL MEETING DATE: March 28, 2016 SUBJECT: February 2016 Financial Report ATTACHMENTS: Financial Reports – Narrative General Fund Operating Statement Chart of General Fund Ending Fund Balance by Month Revenue Charts Other Fund Operating Statements DEPARTMENT OF ORIGIN Finance; Kristin Garcia – Finance Director 360-403-3431 EXPENDITURES REQUESTED: 0 BUDGET CATEGORY: N/A LEGAL REVIEW: DESCRIPTION: Attached is the February 2016 financial report. HISTORY: ALTERNATIVES RECOMMENDED MOTION: Workshop; discussion only. 1 2016 February Financial Report – Kristin Garcia, Finance Director GENERAL FUND In follow up to the year‐end financial report when we reviewed the general fund’s ending fund balance by month (see graph in packet), I wanted to share more detail with you on some of the contributing factors to the cash flow pattern. Overall, general fund revenues are at 13% of budget and expenditures are at 15% of budget. This means that at the end of February expenditures are exceeding revenues. This resulted in a decrease in the general fund’s ending fund balance of $109,936 since January. The decline in fund balance meets our cash flow expectation as several revenue streams, in addition to property taxes, are not received evenly throughout the year. Additionally, several expenses are paid during the first quarter of each year further impacting the first quarter decline in fund balance. Fund balance will increase in May and November when the bulk of our property taxes and other revenues are received. See below for more specific information; The General Fund Ending Fund Balance was $897,026 at the end of February. Leasehold excise tax payments are received 4 times per year so it is not unusual to have zero revenues year to date. I would expect the first payment to be received within the next month or two. Intergovernmental revenues are primarily received on a quarterly basis with the exception of grant funding and the PUD tax which is received one time per year (usually between September and November). It is expected to see a low percentage of budget in this revenue category until closer to 3rd quarter. We did receive $28,925 from the wildfire mobilization grant which reimbursed the city for a portion of wages and vehicle costs related to our assistance in the Chelan/East Side Fires of 2015. Legislative expenses are at 32% of budget because of voter registration costs being paid in January and February. Voter registration costs represent 17% of the total legislative budget and because these costs are typically paid within the first quarter of each year, the percentage of budget will be higher in the first quarter and will even out as the year progresses. The general government services expense category also has a high percentage to budget due to timing of payments in the first quarter. This was discussed in the January financial report. 2 Other general fund items to note; Sales taxes received in February were $366,184 which brings the year to date total 2% over budget projections! In January, it was reported that we did not receive a garbage utility tax payment or a payment for cable tv franchise fees. Payments for both revenue items were received in February bringing the year to date totals to where they should be. OTHER FUNDS Growth Management Fund – On March 21 the council approved an inter‐fund loan of $106,440 to the EMS fund to meet short term cash flow needs. Interest will be paid on the loan at the monthly Local Government Investment Pool rate. The interest rate was .42% as of February 2016. EMS Fund – At the end of February, the EMS Fund required an inter‐fund loan of $106,440. Based on cash flow projections, it is likely additional loans will be required for March and April. The fund still has an outstanding loan balance from 2015 of $325,698. $499 of interest was paid on that loan in 2015. A repayment plan will be crucial when development begins on the 2017‐2018 biennial budget. Transport fees are running about 2% over budget with $163,863 collected year to date. REET 1 Fund – The 800 MHZ annual maintenance payment was $7,251 over what was budgeted. The payment is based on a combined percentage of population, area and calls for service which is applied to an operations and maintenance assessment fee for all participating districts/cities. We have reached out to Snohomish County for further clarification on how our fee was derived as our fee increase was significantly more than our percentage increase of population, area and calls for service. I will provide an update once more information can be obtained from Snohomish County. Additionally, this will most likely trigger a budget amendment at year end. Equipment Replacement Fund – In January, the second payment on the fire apparatus was made and the loan financing was received in February. The second draw on the loan was $570,787 bringing the total amount outstanding on the loan to $1,355,552. One final draw will be made for the loose equipment which was recently approved by the council.