GENERAL INFORMATION



DRAFT

City of vacaville

REQUEST FOR PROPOSALs

commercial banking services

Proposal Issue Date

October 15, 2003

Mandatory Pre-Preposal Conference

October 31, 2003

At xxx am/pm

Proposal Submittal Due Date

November 30, 2003

5:00 P.M.

The City of Vacaville is seeking proposals for Banking Services for its bank accounts and related depository and cash management services in accordance with this Request for Proposal. This Request for Proposals is expected to result in a firm fixed price contract; however, the City reserves the right not to enter into a fixed priced contract. The City also reserves the right to negotiate proposed prices and services before entering into any contract. Proposals must be received by the City by 5:00 P.M. on November 30, 2003 at 650 Merchant Street, Vacaville, CA 95688.

GEneral Information

The City of Vacaville is located in Solano County, on Interstate 80 approximately 50 miles northeast of San Francisco and approximately 30 miles west of Sacramento. The City has an estimated population of approximately 92,000. The City was incorporated in 1892 and is a general law city. The City has a council-manager form of government. The five members of the Council, mayor plus four council members, are elected at large by the City’s voters to four year terms. In addition to the Council, there is an elected Treasurer and City Clerk.

The City provides a full range of municipal services. The City has approximately 580 full-time employees, and over 330 part-time, temporary and seasonal employees working in the following operating departments: Administrative Services, Community Development, Fire, Housing and Redevelopment, City Attorney, City Manager, Police, Public Works, and Community Services.

The City of Vacaville seeks proposals from banks located within the City of Vacaville, interested in providing banking services. We encourage banks to submit the most comprehensive proposal possible offering the highest quality of service and enhancements to improve our current management of cash flow. We are also interested in various technological advances and pilots that could improve our banking, cash management and customer service capabilities.

Our banking relationship is currently with Bank of America. The City has determined that a review of the services offered by all qualifying institutions is appropriate at this time. The City wishes to create efficiencies, make improvements where possible, and take advantage of new, applicable technologies. It is the City’s intent to maintain all commercial banking services with one financial institution to maximize cash flow and minimize administrative costs. We encourage you to be creative and educational in your responses. Include information about your bank’s community involvement and the dedicated resources for serving the public sector. While your format must be consistent with the requirements of this RFP, if you believe there is additional information that would be beneficial to us, we invite you to include it in your proposal.

We intend to establish a five (5) year contract, with the option to renew annually for an additional two (2) years. Either party can cancel the contract for any reason with 90 days written notice.

Proposal Process

|Time Table |

|Distribution of RFP |October 15, 2003 |

|Pre-Bid Conference/or e-mail?? |October 31, 2003 |

|Proposal Submission |5:00 p.m. November 30, 2003 |

|Proposal Review |December 1-19, 2003 |

|Notification to Bidders |December 22, 2003 |

|Implementation |February 1, 2004 |

| | |

| | |

| | |

We have made every effort to include sufficient information within this Request for Proposal for a bank to prepare a responsive, comprehensive proposal. In order to achieve an equitable dissemination of information, a pre-proposal conference will be held to allow all interested bank representatives to ask questions for the mutual benefit of all involved. The timing of the proposal process is as follows:

BANKS INVITED TO RESPOND TO THE REQUEST FOR PROPOSAL:

Bank of the West Bank of America

First Northern Bank Solano Bank

US Bank Washington Mutual

Wells Fargo WestAmerica

a) Distribution of Request for Proposals: October 15, 2003

b) Mandatory Pre-Bid Conference: Our staff will meet collectively with bank representatives seeking additional information about the proposal process and the RFP. All banks interested in submitting a proposal must attend the pre-bid conference. The conference is scheduled for October 31,2003 beginning at 9:00 a.m. in the (conference room) at 650 Merchant Street,Vacaville,California. We request that the participating banks advise us of their attendees by contacting Geoff Bunton at 707/449-5119 no later than October 29, 2003.

c) Proposal Submission: Proposals must be delivered directly to the Finance Division no later than 5:00 p.m., November 30, 2003. Late submissions after the deadline or proposals delivered via fax will not be accepted. A total of four (4) identical proposals must be submitted and labeled as follows:

City of Vacaville

650 Merchant Street

Vacaville, CA 95688

Attention: Geoff Bunton, Finance Division

d) Proposal Review: Our review committee will evaluate each proposal submitted. It is anticipated that the review process will be completed by December 19, 2003.

e) Notification: We anticipate sending written notification to all banks regarding the outcome of the review and contract award process by December 22, 2003. Upon written request, we will provide a copy of the winning proposal.

f) Conversion Activities: The awarded bank will be required to coordinate with our staff all the activities necessary to ensure a smooth transition. Conversion activities will begin upon notification and are projected to be completed by May 1, 2004.

We will make every effort to administer the proposal process in accordance with the terms and dates discussed in this RFP. However, we reserve the right to modify the proposal process and dates as deemed necessary.

MINIMUM QUALIFICATIONS

To be considered for selection, proposing banks must have at least the following qualifications:

a) Be a Federal or State of California chartered financial institution.

b) Be a member of the Federal Reserve System and have access to all services.

c) Be a qualified depository for public funds.

d) Be a full service bank in good standing among other comparable banks.

e) Be capable of providing the services sought by the agency.

f) Have established offices within the City of Vacaville.

g) Agree to assign experienced and dedicated staff who are committed and capable of servicing our accounts.

h) Be in compliance and good standing with the Community Reinvestment Act.

i) Be sufficiently capitalized to accommodate our cash/investment management needs.

ACCOUNT DESCRIPTION

The City of Vacaville deposits over 13,500 checks monthly through our general account. We also issue approximately 1,600 checks per month. We issue payroll twice per month to approximately 880 employees in excess of $1,300,000 per pay period. Vendor checks are issued weekly and vary widely from one run to the next and a vendor run can be as low as $400,000 and exceed $3,000,000.00. The City of Vacaville pays approximately 170 vendors and 320 Section 8 landlords by ACH payment.

Our general business requires one (1) demand account:

General Account: The general account is used for the majority of the City’s business. Payroll, payroll taxes, accounts payable, PERS contributions investments, wire transfers, purchasing cards, state subventions, and daily deposits all run through our general account.

There are additional minor account requirements.

Housing and Redevelopment: These are primarily deposit accounts for various programs which include: Section 8 Rental Subsidy, Section 108 Loan Guarantee, CDBG, RRP, NCP, Downtown loans, Bond Subsidy and DPAL.

Parking Citation: Depositing account for contracted vendor.

Bus Receipts: Depositing account for contracted vendor.

Required Services and format of proposal

In order for us to adequately compare and evaluate proposals objectively, all proposals must be submitted in accordance with this format:

Title Page/Cover: One printed page maximum. It should include the name of the proposing bank, its principal business address where the relationship will be managed, and the local branch address that can meet our daily banking needs.

Tab I - Table of Contents: Two printed pages maximum.

Tab II - Transmittal Letter: Two printed pages maximum. The letter should address the bank’s willingness and commitment, if selected, to provide the services, and why the Bank believes it should be selected. The letter should be addressed to Geoff Bunton, Investment Officer for the City of Vacaville and signed by the Relationship Manager assigned to our accounts.

Tab III - Bank and Staff Profile: Five printed pages maximum. Respond to the following sections:

a. Overview: Provide a corporate overview of your bank, and present the bank’s Community Reinvestment Act programs. The bank must have a full service branch in the City of Vacaville. Also identify the number of branches within our city limits, and the nearest full service branch that can assist us with our immediate banking needs.

b. Experience: Describe the Bank’s experience in providing services to the public sector. Include exclusive resources dedicated for the public sector. Provide three references most comparable to our size and financial needs that we may contact. Include a brief description of the services provided, how long such services have been provided and a contact person and telephone number for each client described.

c. Relationship Management: Describe the relationship team that will be assigned to service our relationship. Describe individual roles, responsibility and briefly detailing credential and related banking experience.

d. Compliance and Exceptions: Include statement to confirm your bank’s compliance to our minimum qualifications. Also list any exceptions to required services.

Tab IV - Deposit Processing: Four printed pages maximum. The City of Vacaville prepares a deposit each business day that is picked up by armored car and taken to a central cash vault. The deposit is straight forward, checks, cash and coin. The deposit amount is predominately checks with cash and coin being mimimal.

Describe how the bank would accommodate the volume associated with our account. Indicate deposit options, including cash vault centers. The bank should have a centralized cash vault operation that can accommodate the security, and deposit volume associated with our accounts. Also include information on the bank’s processing of returned/recleared items in this section.

Tab V - FDIC charges and Float: One printed page maximum. Provide information on applicable FDIC charges and the bank’s availability schedule. Also present any float advantages by converting our relationship to your bank.

Tab VI - Account Reconcilement: Three printed pages maximum. The bank must provide monthly account reconcilement reports, bank statements, account analysis statements, confirmations and other report related features. The bank must be able to provide various reports and statements in a computer media and also provide specialized reports, where feasible, as needed. Describe the account reconciliation services offered by the bank. Also describe the bank’s check truncation services, including estimated savings if used.

Tab VII - Electronic Money Transfers: Two printed pages maximum. Describe the bank’s incoming and outgoing electronic money transfer services. Include safeguards and security measures offered by your service.

Tab VIII - Subvention Payments from the State and LAIF: One printed page maximum. Describe method the bank processes subvention payments from the State of California and LAIF transfers.

Tab IX - Change/Currency Order Services: One printed page maximum. Describe the bank’s procedures for requesting change/currency orders.

Tab X - Balance Reporting: Two printed pages maximum. The bank must have an electronic communication/file transmission system to allow us to receive no later than 7:30 a.m. Pacific Standard Time, previous day balance and transaction information for each designated account. We will use a personal computer and web based/modem to obtain a balance report each morning. The system must also have wire transfer capability. Describe the balance reporting system offered by the bank, its features, including “user-friendliness”.

Tab XI - Direct Deposit: Two pages maximum. The bank must have the capability to accommodate a wide range of electronic payment and deposit services. We utilize direct deposit services for our twice monthly payroll. Approximately 700 of our employees take advantage of the payment mechanism. In addition we pay approximately 450 vendors through our accounts payable division by electronic funds transfers. Describe the bank’s direct deposit services and any employee benefit program for our employees.

Tab XII - Payroll Tax Processing: One printed page maximum. Describe the services available from the bank to accommodate the City’s payment and reporting of payroll taxes.

Tab XIII - Credit Card Processing: Two printed pages maximum. Our average draft size is $135.00. Our monthly volume is approximately 1,300 transactions. The bank must be able to provide an electronic system, which will accommodate credit card authorizations. Describe the electronic system(s) available for processing credit card transactions.

Tab XIV - Controlled Disbursement: Two printed pages maximum. Described the controlled disbursement program offered by the bank.

Tab XV - Purchasing Card Program: One printed page maximum. The City uses purchasing cards for smaller purchases. The City currently has approximately 260 purchasing cards issued, 1,500 monthly transactions, with monthly purchases averaging $160,000. Describe the purchasing card program and transaction reporting offered by the bank.

Tab XVI - Overnight Sweep Account Facility: One printed page maximum. Describe the overnight sweep account offered by the Bank. Also include other overnight investment options available to maximize our earnings potential.

Tab XVII - Collected Balances and Earnings Allowance: Two printed pages maximum. Describe the bank’s calculation of collected balances, calculation of charges for funds advanced. Also describe the methodology that would be used to give credit to the City for bank balances.

Tab XVIII - Daylight Overdraft/Overdraft Protection: One printed page maximum. Describe any issues, concerns and charges associated with the use of a daylight overdraft/overdraft facility.

Tab XIX - Pricing Terms and Conditions: One printed page maximum. Include in this section, the bank’s proposed terms of contract, and method in which pricing adjustments will be calculated.

Tab XX - Pricing Schedule: Three printed pages maximum. Provide in this section, using our pro-forma (Attachment A), the pricing for services proposed by the bank.

Tab XXI - Conversion Plan: Two printed pages maximum. Describe the overall plan your bank would coordinate to ensure a smooth transition from the current provider. The bank must also provide on-site training to our personnel for the operation and use of the bank’s services and automated systems for all areas of service.

Tab XXII - Investment Services: Three printed pages maximum. We currently have a $156,000,000 investment portfolio. Describe investment services offered by the bank; exclude duplicate description of overnight Sweep Account capabilities in this section.

Tab XXIII - Service Enhancements: Three printed pages maximum. Based upon information presented in our RFP and your bank’s knowledge of the public sector, describe any enhancements, technological or otherwise, that we should consider to improve operational or cash management efficiencies.

Tab XXIV - Additional Information: Four printed pages maximum. Describe any other information not previously mentioned that the bank believes should be given consideration.

EXHIBITS TO BE INCLUDED IN PROPOSAL:

Tab A - Authorization to Contract. Provide pages as necessary. Provide either an excerpt from your Corporate Resolution, Certificate of Secretary, or correspondence from the Chief Executive Officer or chairperson attesting that the individual signing the proposal has the authority to make binding representations on behalf of the bank.

Tab B - Contract Samples. Provide pages as necessary. Include contract or agreement samples for banking services that is specific to the services represented in this RFP.

Tab C - Financial Ratings and Statements. Provide pages as necessary. Include your most current Standard & Poors, Moody’s or nationally recognized industry credit ratings . It is not necessary at this point to provide your banks most recent audited financial statements, or annual report.

Tab D - Account Analysis. Provide pages as necessary. Provide a sample of your bank’s account analysis and a user guide for the account analysis.

EVALUATION OF PROPOSALS

The evaluation criteria will include the following:

A. Proper Submission of Proposal: Receipt of proposal by due date as outlined in this proposal according to our specifications. Late submissions or delivery via facsimile will not be considered.

A. Comprehensiveness of Services Provide: Overall capabilities of the bank to meet the required service levels described in this RFP.

A. Public Sector Experience and Resources: The Bank’s experience in providing services to the public sector, as well as dedicated resources and personnel.

A. Strength and Stability of Bank: The bank’s financial standing among its peers and the associated credit quality ratings.

A. Assigned Relationship Manager/Team: The credentials and experience of the person(s) assigned to our relationship.

A. Charges for Services: The amount of proposed charges and pricing increases in subsequent years.

A. Service Enhancements: The bank’s efforts to understand our banking needs and goals, and the creativity the bank shows in introducing new technologies and efficiencies to improve our current practices and procedures.

A. Community Involvement: Your bank’s role as a corporate citizen and related CRA contributions.

A. Other Factors: Any other factors that we believe would be in our best interest to consider which were not previously described.

FINAL COMMENTS

We reserve the right to reject any and all proposals, cancel all or part of this RFP, waive any minor irregularities and to request additional information from proposing banks. By requesting proposals, we are in no way obligated to award a contract or pay expenses of the proposing banks in connection with the preparation or submission of a proposal.

Our decision to award a contract will be based on many factors including but not limited to service, cost, financial strength and innovation. The City of Vacaville reserves the right to negotiate all proposals. No single factor, such as cost, will determine the final decision to award.

We appreciate the efforts all the banks and their respective staffs have put forth responding to the Banking Services Request for Proposal.

Attachments to this RFP

Attachment A - Pro-forma Pricing Matrix

ATTACHMENT A

|Pro-forma Pricing Matrix |

|Based on Estimated Monthly Volume |

| |Est. Monthly | | |

| | |Unit |Total |

|Services |Volume |Price |Price |

|General Account Services | | | |

|Account Maintenance |5 | | |

|Additional Paper Statements |1 | | |

|Facsimile Transmission |1 | | |

|Photocopies |1 | | |

| | | | |

|Depository Services | | | |

|Banking Center Deposit |70 | | |

|Curr/Coin Dep/$100 Bkg Ctr |100 | | |

|Curr/Coin Dep/$100 Vlt |1,650 | | |

|Checks Deposited-CA |13,500 | | |

|Returns-Chargeback-CA |25 | | |

|Returns-Reclear-CA |50 | | |

|Returns-Maker Required-CA |25 | | |

|Deposit Correction |3 | | |

| | | | |

|Paper Disbursement Services | | | |

|General Checks Pd Truncated |1,550 | | |

|Stop Pay Manual |3 | | |

| |0 | | |

|Paper Disb Recon Services | | | |

|Full Recon Maint |1 | | |

|AR Transmission Input per item |1,550 | | |

|Check Issue Input-Transm Media |6 | | |

|Check Issue-Input Manual |1 | | |

|Recon Transmission |1 | | |

| | | | |

|General ACH Services | | | |

|ACH monthly Maintenance |4 | | |

|Corporate On US Credits |24 | | |

|Corporate Off US Credits |123 | | |

|Corporate On US Debit |6 | | |

|Consumer On US Credit |317 | | |

|Consumer Off US Credit |1,521 | | |

|Consumer On US Debit |159 | | |

|Consumer Off US Debit |577 | | |

|ACH Debit Received Item |43 | | |

|ACH Credit Received Item |51 | | |

|ACH Return Item |10 | | |

|ACH Input Transmission |9 | | |

|ACH Notif of Change |8 | | |

|ACH Optional Reports Fax |32 | | |

| | | | |

|Wire & Other Funds TRNSF SVCS | | | |

|Elec Wire out-Domestic |2 | | |

|Manual Transfer |1 | | |

|Manual Wire Out- Domestic |13 | | |

|Manual Wire Book Debit |1 | | |

|Incoming Domestic Wire |6 | | |

| | | | |

|Information Services | | | |

|Previous Day Balance Reporting |1 | | |

| | | | |

|Credit Card Processing Charges: | | | |

|Terminal Fee |5 | | |

|Printer Fee |5 | | |

|Pinpad Fee |4 | | |

|Discount Percentage (list by card) | | | |

|Other Fees (list by card) | | | |

| | | | |

| | | | |

|Total Monthly Fees | | | |

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