Document Sample
					                                     CITY OF FARMINGTON
                                     800 MUNICIPAL DRIVE
                                 FARMINGTON, NEW MEXICO 87401

                               BANKING AND MERCHANT SERVICES
                                        RFP #05-56926

                                      PROPOSAL OPENING DATE
                                          February 10, 2005
                                             2:00 P.M.

                                      Tentative Council Approval Date
                                               March 1, 2005

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                                                           TABLE OF CONTENTS

        Acknowledgement of Receipt Form ............................................................................................. 3

        Notice to Offerors........................................................................................................................... 4

        General Conditions for Proposal Submission ............................................................................. 6

        Instructions for Proposal Submission .......................................................................................... 7

        Request for Proposal
              I.       Introduction and Objectives ............................................................................. 13
              II.      Scope of Services ................................................................................................ 13
              III.     City Financial Overview.................................................................................... 14
              IV.      Financial Institutions Qualifications ................................................................ 15
              V.       Required Banking Services ............................................................................... 16
              VI.      Optional Services ............................................................................................... 26
              VII.     Merchant Services.............................................................................................. 28
              VIII. Alternative Services ........................................................................................... 29
              IX.      Bank Compensation........................................................................................... 29

                   Attachment A: Schedule of Proposed Fees
                   Attachment B: Historical Earnings Rates

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                                   BANKING AND MERCHANT SERVICES
                                          RFP # 05-56926
                                         February 10, 2005
                                            2:00 P.M.

                            ACKNOWLEDGEMENT OF RECEIPT FORM

In acknowledgement of receipt of the Banking Services – Merchant Services RFP packet #05-56926, the
undersigned agrees that he/she has received a complete copy, beginning with the title page and ending
with page Attachment B, FOR A TOTAL OF 36 PAGES.

The acknowledgement of the receipt should be signed and returned no later than February 1, 2005 in
accordance with the instructions below. Only potential Offerors who elect to return this form will receive
copies of all future communications, relating to, and including amendments to #05-56926, if issued.

                                           ___________ MERCHANT PROCESSING SERVICES



TITLE:                            ______           PHONE:

EMAIL:                            ______                    FAX:


CITY:            ______                            STATE:                  ZIP:

SIGNATURE:                                                         DATE:

This name and address will be used for all correspondence related to document #05-56926.

Firm does / does not (circle one) intend to respond to the RFP for Banking Services – Merchant Services,
#05-56926. If firm does not intend to reply, please give a brief reason for not responding:

Return original to:                        Edward Smylie, Purchasing Supervisor
                                           City of Farmington - Central Purchasing
                                           800 Municipal Drive
                                           Farmington, NM 87401

                                           Faxed Copies of this form will be accepted.
                                           Faxed RFP responses will not be accepted.

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                                         NOTICE TO OFFERORS

Competitive sealed proposals will be received by the City of Farmington, San Juan County, New Mexico,
at the Central Purchasing Office, Municipal Annex Building, 805 Municipal Drive, Farmington, New
Mexico 87401.

The proposals duly delivered and submitted will be opened and read aloud for supplying the following on
the dates and times reflected below:
                                     Banking and Merchant Services
                                            RFP # 05-56926
                                           February 10, 2005
                                               2:00 P.M.

Any proposal received after stated closing time will be returned unopened. If proposals are sent by mail to
the Central Purchasing Office, the Offeror shall be responsible for actual delivery of the proposal to the
Central Purchasing Office before the advertised date and hour for opening of the proposals. Proposals
which are delayed will not be considered and will be returned unopened.

RFP documents may be retrieved by accessing the Purchasing page of the City of Farmington website, Further details and criteria for award may be obtained at the above referenced Central
Purchasing Office address, or by calling (505) 599-1373. The City of Farmington reserves the right to
accept or reject any or all proposals.

Until the final award by the Farmington City Council, said City reserves the right to reject any and/or all
proposals, to waive technicalities to re-advertise, or to proceed otherwise when the best interest of said
City will be realized. Proposals will be submitted sealed and plainly marked with the date and time of

                                                   City of Farmington, New Mexico

                                                   City Clerk

Publication Date: January 19, 2005
Opening Date:     February 10, 2005

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                                                            Approved as to form:

RFP TITLE: Banking and Merchant
             Services                                       Lynette Singleton, C.P.M., CPPO
RFP #:       05-56926                                       Purchasing Officer
                                                            If you have any questions regarding this
CITY OF FAMINGTON                                           Invitation to Bid, please contact Edward Smylie.
                                                            Edward Smylie, Purchasing Supervisor
PROPOSAL OPENING DATE:                                      505-599-1369
February 10, 2005, 2:00 P.M.
                                                            NO PRE-PROPOSAL CONFERENCE



Sealed proposals will be received until 2:00PM MST on February 10, 2005, and then opened at the City
of Farmington Central Purchasing Department. The opening of proposals shall be conducted in private in
order to maintain the confidentiality of the contents of all proposals during the negotiation process.



 CONTACT PERSON (please print)                                                      TELEPHONE / FAX

 To be a valid bid, Authorized Representative must sign here.               Title
Bidder must check the appropriate box below if applicable:
Amendment No. ______ Dated______                       Amendment No. ______ Dated______
Amendment No. ______ Dated______                       Amendment No. ______ Dated______

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                                        GENERAL CONDITIONS

As required by13-1-111 NMSA 1978, the City of Farmington is requesting proposals for Banking
Services and Merchant Services. Proposals must fulfill the requirements set forth in the RFP. Proposals
submitted to the City may be withdrawn or modified prior to the time set for opening of proposals by
delivering written or telegraphic notice to the Central Purchasing Office. Offerors submitting proposals
may be afforded an opportunity for discussion and revision of proposals. Revisions may be permitted
after submissions of proposals and prior to award for the purpose of obtaining best and final offers.

The Central Purchasing office will open and evaluate all proposals; determine the need for, and conduct
any negotiation; and make a final recommendation to the City Council for award of the contract. The
opening of proposals shall be conducted in private in order to maintain the confidentiality of the contents
of all proposals during the negotiation process.

The City reserves the right to reject any or all proposals or to waive irregularities at its option when in the
best interest of the City of Farmington.

Award of the contract is contingent upon the budgeting and appropriation of funds for continuation of the
professional services contemplated by this Request for Proposal.

The Proposal total shall exclude all applicable taxes including applicable state gross receipts tax or
applicable local option tax. The City will pay for any taxes due on the contract and will pay any increase
in applicable taxes which become effective after the date the contract is entered into in addition to the
Proposal total based upon separate billings which the successful Offeror shall submit with each request
for payment. Taxes shall be shown as a separate amount on such billing or request for payment and shall
separately identify each tax being billed.

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    1.      Description

            The City of Farmington (City) is requesting proposals from qualified institutions (Offerors)
            able to provide the services as described below.

            The City’s primary objectives are to improve banking services, reduce operating costs,
            improve funds availability, and replace manual transactions with electronic interchange.

            The banking services described in this RFP are directed toward:
                       -100% utilization of idle funds,
                       -safety of City funds and securities,
                       -efficient utilization of available and developing banking services, and
                       -minimization of banking costs for the City.

    2.      Scope of Work

            The City requires one primary banking services provider for the services described under
            Banking Services, Required Services (Section V) below. Offeror should also provide
            information on the availability of services entitled Optional Services (Section VI) which are
            being evaluated by the City. The banking services provider must be able to provide all
            services required but need not provide Optional Services.

            Merchant Services (Section VII), may be submitted as a separate single proposal by an
            Offeror for only the Merchant Services portion of this request. Or, a Banking Services
            institution may submit a combined proposal for both the Banking Services and Merchant
            Services. Responses to all questions in Section VII are required for consideration as provider
            of merchant services.

            The City reserves the right to award this contract in part, or in whole, to one or more offerors
            as is deemed in the best interest of the City.

    3.      Qualifications of Offerors

            To assure a close working relationship and to facilitate banking services, only depository
            institutions with full depository service capabilities within the city limits of Farmington, New
            Mexico will be authorized to propose. Merchant Services providers do not have the same
            geographic limitation. Financial institutions offering to provide banking services must full
            provide qualification information in response to questions in Section IV.

            The City will accept proposals from banking institutions with the resources, experience, and
            qualifications required to perform the scope of work outlined in the RFP. Specific questions
            and additional information required are to be submitted in accordance with the directions in
            Section IV through VIII. In order to equitably evaluate each bank's ability to meet the
            banking service needs of the City, a standard format for all proposals is required
            following the outline of these sections.
            A response must be given to each item in Sections IV through VI along with completion
            of Attachments A and B. Responses for Merchant Services only are limited to Section VII
            and applicable sections of Attachment A.

            Responses must be in the same order as the questions presented, stating acceptance of,
            modifications or additions to, or a statement of the inability to provide said service.
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            Only proposals submitted in the prescribed format and using the provided Attachments
            will be considered and evaluated for contract award. Additional explanatory information
            may be included as part of a proposal.

    4.      Schedule & Submission of Proposals
           The City will make every effort to adhere to the following schedule:

         01/19/05        Release of Request for Proposal
         02/01/05        Deadline for Submission of questions regarding RFP
         02/04/05        Addendum/Responses to questions, provided to all Offerors
         02/10/05        Deadline for proposal submission
         03/01/05        City Council award of contract
         05/01/05        Contract commencement

            There will be no pre-proposal conference. Questions regarding this RFP, or the services
            requested in it, will be accepted in written (or e-mail) form only, at the City contact, on or
            before 1:00 pm, February 1, 2005. Responses to all material questions submitted will be
            communicated in writing to all known Offerors by 3:00 pm, February 4, 2005.

            The offeror shall submit eight (8) copies of their proposal in a sealed envelope or packet
            plainly marked and containing any supplemental information which will assist the City in the

            Proposals to be submitted to the two following separate addresses:

            Seven (7) complete proposals must be delivered by mail, express mail, or in person to:
                        Mr. Edward Smylie                              505-599-1369
                        Purchasing Supervisor                
                        City of Farmington
                        800 Municipal Drive
                        Farmington, New Mexico 87401

             One (1) complete proposal should be delivered by mail, express mail, or in person to:
                       Linda T. Patterson                               512-320-5042
                       Patterson & Associates
                       301 Congress Avenue
                       Suite 570
                       Austin, Texas 78701

            The Offeror shall be prepared to respond to requests by the City for personal presentations,
            oral presentations and other areas deemed necessary to assist in the evaluation process. All
            expenses associated with this presentation will be borne by the Offeror.

            The authorized representative named in the Notice to Offerors Form submitted by your firm
            shall remain responsible throughout the implementation period of the contract. Any
            replacement must have the written approval of the City’s Administrative Services Director.

            An electronic PDF copy of this RFP is available by accessing the Purchasing Department
            page of the City of Farmington website Submission of the Proposal however
            must be in written form. An electronic copy in Word format with the Attachments in Excel
            format is available upon request to the City contact listed in paragraph 7 below.

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    5.      Bribery and Kickbacks

            As required by Section 13-1-191, NMSA, 1978; it should be noted that it is a third-degree
            felony under New Mexico law to commit the offense of bribery of a public officer or public
            employee (Section 30-24-2, NMSA, 1978); it is a fourth-degree felony to commit the offense
            of soliciting or receiving illegal kickbacks (Section 30-41-1, NMSA, 1978); it is a fourth-
            degree felony to commit the offense of offering or paying illegal kickbacks (Section 30-4-2,
            NMSA, 1978).

    6.      Conflict of Interest

            Offeror warrants that it presently has no interest and will not acquire any interest, direct or
            indirect, which would conflict in any manner or degree with the performance of service under
            this contract.

    7.      Contacts

            Questions, copies, and/or suggestions concerning this RFP shall be directed to:

                                               Edward Smylie
                                      City of Farmington – Purchasing
                                              505-599-1369 tel
                                              505-599-1377 fax


                                               Christy Cadrain
                                      City of Farmington – Purchasing
                                              505-599-1365 tel
                                              505-599-1159 fax

            The only approved contact shall be with the above referenced purchasing staff. Offerors
            making contact with any other City official, evaluation committee member, or City employee
            regarding this RFP may be disqualified.

    8.     Cost Proposal

            All fees and charges required for the provision of the services requested must be detailed on
            ATTACHMENT A (for Banking and Merchant Services). The performance history for
            various types of accounts for banking services must be provided on ATTACHMENT B.

    9.      Fixed-Price Contract

            The subsequent contract is considered a FIRM FIXED-PRICE CONTRACT. The fee
            proposed shall remain firm and shall include all charges that may be incurred in fulfilling the
            terms of the contract.

    10.     Contract Completion/Term of Contract

            The term of this contract shall be twelve consecutive months, and shall be renewed
            automatically, subject to the appropriation of funds by the City Council, from year to year for
            seven (7) additional consecutive one year periods, unless otherwise terminated.
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    11.     Payments

            Banking Services
            The City reserves the right to utilize either a fee basis or compensating balance basis (or a
            combination of each) for payment of services under the contract. The City reserves the right
            to change the payment methodology during the contract period upon no less than 30 days
            written notice to the bank with the change commencing the first of the following month. This
            will enable the City to take advantage of changing interest rate environments.

            The City currently uses an automated sweep to a bank directed repurchase agreement. The
            City will also consider a daily sweep to a SEC registered money market fund, or indexed
            account proposed by bank. As interest rates dictate, the City may choose to place funds in
            different type accounts or sweep vehicles.

               - When a compensating balance payment basis with a sweep is used, all accounts will be
                 swept to their compensating balance.
               - When a fee basis with a sweep is used, all accounts will be swept to zero. Within five
                 business days after receipt of the monthly account analysis (and approval of those fees
                 by City) the bank may direct debit the designated account for fees due.
            A complete account analysis will be required monthly regardless of the payment basis.

            Fees and service charges included in the successful proposal shall remain in effect for the first
            four-one year periods; however any Federal Reserve service charge increase may be passed
            through to the City upon 30-day written notice. Should new services be required during the
            contract period not contemplated by this RFP, those services will be negotiated but at fees not
            more than the bank’s then-current published rate.

            Any changes in fees for the extension periods will be negotiated and must be approved by the
            City in writing. In no instance will the rate increases in extension exceed the Western Region
            CPI increases during the same periods as reported by the Bureau of Labor Statistics.

            Merchant Services
            Merchant services will be paid on a fee basis unless incorporated into the overall banking
            services contract in which case it may be under the fee or compensating balance
            compensation methodology.

    12.     Proposal Validity Period

            All proposals shall remain firm for a period of ninety (90) calendar days after date specified
            for receipt of proposals.

    13.     Evaluation Criteria

            The City will consider proposals from institutions with the specific experience, resources and
            qualifications required. The specific questions below are directed to solicit evidence of the
            firm’s experience and abilities for banking and merchant services.

            The Banking Services and the Merchant Services will use the same evaluation criteria, but
            will be evaluated separately.

            An evaluation committee will evaluate all proposals, may conduct oral presentations or
            combination of both. The selection committee will have only the response to this solicitation

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            to review for selection of finalists and, therefore, it is critical to provide all pertinent
            information specific to the service(s).

            The following criteria will be used by the City as the weighting basis for evaluation of the
            proposals and the award recommendation.
                        40 % - responsiveness and ability to provide services required,
                        40 % - banking services/merchant services costs (evaluated separately),
                        10 % - experience, references, and continuity of bank and bank officials,
                        10 % - creditworthiness and stability of the bank.

            The City will consider the availability of services and the cost of those services as well as the
            earnings potential under the contract. All these elements will be combined for evaluation of
            the proposals.

            Award may not be made to the Offeror submitting the lowest price proposal. The City will
            choose the institution submitting the best, most responsive overall proposal to satisfy its

            The City’s Central Purchasing Department has the option to initiate discussions with Offerors
            in order to clarify aspects of the proposals, but, proposals may be accepted and evaluated
            without such discussion. Discussions shall not be initiated by Offerors.

            Finalist Offerors may be asked to submit revisions to the proposal for the purpose of
            obtaining the final and best offer for the City. The scheduled deadline for the final
            and best offer, if requested by the City, will be determined at that time and notifications will
            be issued to the finalist Offeror(s). The City reserves the right to request oral presentations
            from any or all Offerors.

   14.     City Retention of Rights

            The City reserves the right to:
               •        waive any defect, irregularity or informality in the proposal or proposal
               •        reject any and all proposals,
               •        accept any proposal or portion thereof most advantageous to City,
               •        request additional information or require a meeting with bank representatives for
               •        cancel, revise, and/or reissue this request for proposal,
               •        negotiate with Offerors,
               •        modify deadlines, and
               •        select any proposal deemed to be in its best interest as determined by the City of

            If any provision of this proposal or the resulting contract is deemed invalid, the City has the
            right to retain any or all other provisions.

    15.     Proposed Time Table for Services
            The contract is scheduled to be awarded by City Council on March 1, 2005. The contract will
            commence May 1, 2005. The RFP requires a schedule for implementation be submitted
            below in Required Services (Section IV).

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    16.    Protests

            Any protest by an offeror must be timely and in conformance with Section 13-1-172 NMSA
            1978 and applicable procurement regulations. The fifteen (15) day protest period for
            responsive offerors shall begin on the day following the Council’s contract award. Protests
            must be written and must include the name and address of the protestor and the request for
            proposals number. It must also contain a statement of grounds for protest including
            appropriate supporting exhibits. The protest must be delivered to:

                                        Lynette Singleton, C.P.M., CPPO
                                               Purchasing Officer
                                     City of Farmington, Central Purchasing
                                              800 Municipal Drive
                                        Farmington, New Mexico 87401

                               Protests received after the deadline will not be accepted.

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                                   CITY OF FARMINGTON, NEW MEXICO

                                       REQUEST FOR PROPOSAL

                           BANKING SERVICES - MERCHANT SERVICES

        I.     INTRODUCTION

                 Through this contract the City intends to minimize banking costs, improve operational
                 efficiency, and maximize its investment capabilities. This Request for Proposal (RFP),
                 which represents the City’s cash management goals, specifies all required qualifications,
                 the banking services required, the estimated activity volumes on all accounts, and the
                 method and terms of compensation. All qualified institutions, as defined, are invited to
                 submit a proposal.

                 Institutions responding to this Request for Proposal (RFP) must be insured through the
                 Federal Deposit Insurance Corporation (FDIC), and must be able to demonstrate a
                 capacity to meet the City’s requirements as stated in the RFP.

                 The City intends to utilize the resources of the banking system to the benefit of the City.
                 As such, the City needs business partners that are responsive to the needs of the City and
                 its needs for ongoing use of the state-of-the-art technological and informational evolution
                 within banking.

                 The City intends to use its bank for automation of operations where possible improving
                 information and business exchanges with its citizens, customers, and service providers.
                 The City expects its bank to take an active role in the development, marketing and
                 implementation of electronic communication ‘links’ with the City's customers, vendors,
                 and other government entities.

                 The City insists on the highest standards. It supports the use of developing industry
                 standards in information and data systems design and transmission for service and
                 information delivery. The City is dedicated to the use of electronic information
                 technology and alternative media as a replacement for paper-based systems.

                 •   The City will employ technology, automated systems, and bank resources whenever
                     practical to efficiently and effectively perform its financial responsibilities.
                 •   The City supports ongoing communication with all its service providers to exchange
                     information, to educate, to problem solve and to discuss on-going strategic planning.
                 •   The City expects to meet regularly with bank representatives to review the service
                     levels, to revisit service needs, to explore evolutionary systems and technology, and
                     to exchange current ideas within the banking industry.
                 •   The City expects the bank to act as a consultant in matters of funds processing and
                     electronic data interchange services.

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        II       SCOPE OF SERVICES:

                 The City requires one primary banking services provider for the banking services
                 described under Banking Services Required Services (Section V.).

                 The City is additionally interested in obtaining Merchant Processing Services (Section
                 VII.) which may be performed by the banking services institution as part of the banking
                 services contract or a separate institution. Offerors may submit a proposal for ONLY
                 merchant processing services.

                 Either resulting contract will be based upon information submitted in this Request for
                 Proposal (RFP) and the proposal submitted, both of which will be incorporated as part of
                 the final contract.

                 The fees proposed (on Attachment A) shall include all charges for all services provided
                 under the contract (bundled or unbundled). The Offeror will be responsible for providing
                 fee information even if a specific fee is not specifically requested on Attachment A for
                 that service. No fees for additional services will be permitted under the contract unless
                 included in the original proposal or unless specifically agreed to by both parties.

                 Any additional or supplemental information you wish to be considered should be
                 included under the specific subject section of the proposal.


                 The City Finance Division of the Administrative Services Department handles all
                 banking, treasury, and investment activities as well as accounts payable, receivables,
                 payroll, and financial reporting functions. There are currently fifteen (15) remote City
                 departmental locations which make deposits independently.             The Administrative
                 Services Director is responsible for the department and all banking relations regardless of
                 depositing agent.

                 The City currently maintains five (5) ZBA accounts and utilizes a bank-directed
                 overnight repurchase agreement for idle funds. The average balances for these accounts
                 are outlined below based on historical rates:

                                      Avg Mo
                 Description          Balance Type/Notes
                 Operating            $ 3,000,000   ZBA Master, Swept to Repo Daily, no
                 Disbursement         $    000      ZBA, positive pay
                 Payroll              $    000      ZBA, positive pay
                 Health Account       $     000     ZBA
                 Customer Deposits    $     000     ZBA

                 Most bank activity will occur in the Operating Account. This is the Master ZBA account
                 and is currently swept daily to a bank-directed repo. All accounts, except the
                 Disbursement Account, receive deposits. Wires and securities transactions occur in the
                 Operating Account. ACH transactions occur in Operating, Payroll and Disbursement
                 accounts. Positive pay has been established on two accounts but will be required on all
                 disbursing accounts under the new contract. Full reconciliation services are currently

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                   used on Operating, Disbursement and Payroll accounts. The City is however considering
                   partial reconciliation as well under this proposal.

                           Approximately $ 1,500,000 is processed in payables monthly.
                           The City has a bi-weekly payroll for approximately 960 employees with a total
                           payroll averaging $ 800,000. Direct Deposit payroll transactions are used by
                           approximately 690 employees with the number of ACH deposits totaling
                           approximately 1,050 and averaging $ 700,000 on the bi-weekly payroll.

                   Under the anticipated contract the City anticipates that it will maintain its basic current
                   account structure. However, the City may utilize money market accounts dependent upon
                   interest rate opportunities and will decide on the use of the account as interest rates vary.
                   All balance decisions will be made by the City. (Proposals for sweeping funds or
                   alternative account structures must be outlined and explained thoroughly in response to
                   questions in Section V.1.)

                   Any or all City funds may be maintained and invested by the City outside this contract.
                   The City will be under no obligation to maintain funds in the bank except under a
                   compensating balance situation.

                   Primary responsibility for administration of the banking services agreement within the
                   organization resides with the Administrative Services Director, or his designee, who will
                   monitor the bank’s performance against provisions of the agreement, including the bank’s
                   proposal submitted in the response to this RFP. The Administrative Services Director, or
                   his designee, will also be responsible for administering the agreement with respect to
                   day-to-day activities, including deposits and withdrawals, ACH transactions,
                   maintenance of account balances, daily reporting, etc. A list of City personnel authorized
                   to deal directly with the bank will be provided following agreement award. The bank
                   shall provide the City with a similar list of authorized personnel.


                          To be considered the proposal must include a response to
                                      each question in this Section IV.

             1.   In order to fulfill the City's fiduciary responsibility to protect public funds, each bank,
                  submitting a proposal shall provide, in response to this item:
                   a. an audited annual financial statement for the most recent fiscal period,
                   b. the bank’s CRA rating (noting the specific rating agency),and
                   c. a statement regarding any recent or foreseen merger or acquisition.

                   The Bank shall be required to provide a Statement of Conditions each quarter and the
                   audited financial statement each year for the period of the Contract.

                   d. Bank will provide a statement agreeing to the requirements for continuing
                      financial disclosure.

        2.         Describe the bank's philosophy and approach to satisfying the City’s need for customer
                   service requirements and the desire to develop and maintain state-of-the-art electronic

                   a. What, if anything, is distinctive about the bank's approach to customer service?
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                 b. What is distinctive about the bank's approach to its uses and development of
                 c. Is the bank offering any transition incentive to assist in covering transition costs?

        3.       List references from at least three of the bank’s current, comparable governmental clients,
                 preferably in New Mexico. Include the length of time under contract, a client contact,
                 title, and telephone number.

        4.       Provide the bank’s most recent Sheshunoff, Veribanc or comparable bank rating from an
                 independent rating service. The bank will be responsible for notifying the City within
                 thirty (30) days of any change in this rating during the entire contract period.

        5.       Provide a proposed timeline for implementation of the contract including the timeline
                 activities and direct responsibilities of the City and the Bank during implementation.

        6.       Provide a copy of all agreements (even if not directly referenced or required in this RFP)
                 which will be required to be executed under the contract. Any changes required on the
                 agreements will be made and agreed upon before award of the contract is made by the
                 City Council.

        7.       Describe the Bank’s current disaster recovery plan addressing possible loss of data and
                 service interruptions.


             To be considered, the proposal must include a response to each of the questions
               in this Section V and all associated fees must be detailed on Attachment A.
                 All fees for all services anticipated must be detailed on the Attachment.
                                     Add any level of detail as necessary.

        1.     Consolidated Account Structure with Sweep Mechanism

                 The City is interested in assuring that all funds are continuously earning at the best, then-
                 current interest rates. The City sweeps to a daily zero balance currently using a bank-
                 directed sweep to a repurchase agreement but prefers an automated, daily sweep to a
                 money market fund in order to procure its full investment goal. AAA-rated, SEC
                 registered, government (or an enhanced government) money market mutual fund is to be
                 used for the sweep. If the bank has a valid alternative to a SEC money market mutual
                 fund it should be presented.

                 The bank shall clearly stipulate whether the sweep is to be from a consolidated master
                 account with ZBA accounts, as currently structured, or directly swept from individual
                 accounts. The City is interested in eliminating internal interest distribution among
                 accounts therefore automated distribution of interest to the individual accounts is
                 preferred. The proposal should describe the bank's most cost effective methodology for
                 creating the sweep. A history of net rates for any vehicle proposed is required on
                 Attachment B.

                         If a fee compensation basis with a sweep is utilized for compensation purposes,
                         all or certain accounts will be swept daily by the bank to a zero balance (or
                         rounded minimums). Other accounts will pay fees or maintain balances.

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                         If a compensating balance basis with a sweep is utilized for compensation
                         purposes, all accounts will be swept automatically by the bank to the target
                         compensating balance daily.
                         Interest from the sweeps will accrue daily and be credited monthly in a timely
                         On a compensating balance basis, any net earnings credits shall be carried over
                         for net settlement on a semi-annual basis.

                 a.      Fully describe the proposed sweep mechanism(s) focusing on the best historical
                         rates and most cost effective structure. Detail whether the sweep will be from a
                         master account with ZBAs or directly swept from the individual accounts.
                         (Costs for all account types should be clearly stipulated on Attachment A.)
                 b.      If the bank is proposing an alternative to a sweep, such as an indexed interest
                         bearing or money market account, detail fully and stipulate historical earnings
                         rates on Attachment B.
                 c.      Will the City be required to initiate any transactions (via internet, phone or fax)
                         or transfer balances for sweeps, under any condition? If so, describe.
                 d.      State specifically when the interest from sweeps and interest on interest bearing
                         accounts will be credited to the accounts (master and individual accounts).
                 e.      Describe how sweep balance activity will be reported on a daily basis on City
                         reports, i.e. will daily activity reports show detailed balance amounts being swept
                         in and out of the accounts?
                 f.      Describe how sweep interest earned from the sweep will be applied and reported
                         to the City (at the account level or master account level) monthly.
                 g.      If an SEC registered money market fund is utilized for the proposal, include the
                         full name and identifying cusip of the fund along with a copy of the prospectus.
                         Minimum amounts and cut-offs should be provided as well as any other pertinent
                         requirements of the fund.
                 h.      Net historical rate information on the sweep (for all alternatives) must be
                         provided on Attachment B. Provide the proposed computation basis for interest
                         bearing and money market accounts if rates are based on a set index or security
                         (such as the 3-month Treasury Bill).
                 i.      State how and when FDIC Assessments will be collected.

                 If the Bank cannot provide a sweep mechanism, or if alternative account types are
                 proposed in lieu of a sweep, describe the alternative proposed including the specific type
                 of accounts (interest bearing, money market, ZBA, etc.) along with a plan for the overall
                 account structure. Provide historical rates for these alternatives on Attachment B.

                 j. If a SEC fund is not to be used, describe the type of account to be used in lieu of a
                    sweep (i.e. NOW, SuperNow, money market account, interest bearing) and fully
                    describe any restrictions on the accounts such as withdrawal limitations.
                 k. Provide the proposed computation basis for interest bearing accounts if rates are
                    based on a set index or security (such as the 3-month Treasury Bill).

                 Interest earned on interest bearing accounts shall not be charged as an expense on the
                 account analysis.

                 The City may be required or may desire to open additional accounts, or change account
                 types during the contract period. If this occurs the new accounts and their services shall
                 be charged at the same contracted amount.

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         2.    Automated Cash Management Information Access and EDI

                 The City requires automated cash management services and daily balance reporting for
                 timely access to balance information and transactions. The City is interested in replacing
                 paper based and manual systems to electronic versions as efficient technology becomes
                 available. Minimum automated services shall include:

                         •    prior day summary and detail balance reporting on all accounts,
                         •    initiation and monitoring of same day stop pays,
                         •    initiation of ACH,
                         •    positive pay reporting and exception transactions,
                         •    initiation and monitoring of account transfers, and
                         •    initiation and monitoring of internal and wire transfers.

                 Preferably, monthly statements and account analyses will be available on-line. Prior day
                 balance reporting shall include:

                         •        detail on all transactions
                         •        summary account reporting with prior day closing ledger and collected
                                  (available) balances
                         •        one-day float.

                 a.      Fully describe the bank’s on-line service capabilities and whether service is to be
                         a direct link or web-based. List the system service capabilities (i.e. balance
                         reporting, wires, positive pay, stop pay, etc.).
                 b.      Describe back-up provisions and procedures to the automated system. What is
                         the bank’s back-up process to provide balance reporting and transactions in case
                         of system non-availability. Describe provisions for off-site backup and
                         continuation of services under acts of God or terrorism.
                 c.      Describe the capability and process for security and password administration by
                         the City or the bank.
                 d.      Is the system capable of maintaining audit trails on input by user?
                 e.      Are on-line service charges bundled or are separate modules charged
                         independently? Describe (and define costs clearly as such on Attachment A).
                 f.      State the access times and update times for daily information including wires,
                         transfers, etc.
                 g.      Does the basic system provide full trailer information on wires and ACH for
                         identification purposes?
                 h.      Submit samples of major screens. If available, provide a sample website (and
                         sign-on information if required) for an on-line review of the system.
                 i.      Specify any City hardware and software requirements for access.
                 j.      What training is to be available to the City? How many hours?
                 k.      How many hours has the system been down in the last six months?
                 l.      Is the system a proprietary system or provided by a third-party?

        3.     Standard Collection/Deposit Services

                 Standard commercial deposit services are required for all accounts. Deposits will consist
                 of a small amount of coin and currency and include endorsed, encoded, and un-encoded
                 checks. The City requires same bank day credit on all cash (coin and currency) deposits
                 and on-us checks. There is very little cash vault activity in the deposits. Coin may be
                 deposited loose, in partially filled bags. Coins will not be rolled. The City makes an
                 average of fifteen (15) daily deposits by courier or by City employee with an average
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                 daily deposit of $ 400,000. Deposits are batched with tapes attached. The City does
                 currently encode checks but will evaluate the cost effectiveness of discontinuing this

                 The City is interested in establishing remote electronic input of check deposits which will
                 allow deposit of both consumer and commercial checks (as substitute checks or ACH as

                 The City has established limited merchant services to accept credit and debit cards over
                 the telephone, the internet and in person for multiple services and fees at multiple
                 locations. Specific questions regarding merchant services (as a separate service or part of
                 the banking proposal) are below in Section VII.

                 All cleared deposits received by the bank's established deadline must be processed for
                 same day credit. The bank shall guarantee immediate credit on all incoming wire
                 transfers, US Treasury checks, ACH transactions, on-us items, and U.S. government
                 security maturities and coupon payments.

                 The City expects all deposited checks to clear based on the bank’s current published FRB
                 availability schedule, but, any expedited availability options should be noted in the
                 proposal. Failure to credit City accounts in a timely fashion will require interest payment
                 reimbursement to the City at the then current daily Fed Funds rate.

                 The use of a lockbox for utility payments is contemplated as an optional service under
                 this RFP. Questions regarding lockbox are found in Section VI.

                 a.      What is the bank’s daily cut-off time to assure same day ledger, and, pending
                         availability, collected credit? Will this vary by location (lobby, teller, vault)?
                 b.      Is there a differentiation for deposit cut-offs on encoded versus un-encoded
                 c.      What are the bank's capabilities in processing remotely input, electronically
                         captured consumer and commercial checks? Is the bank able to assist the City in
                         establishing the process? How would the checks be processed in this situation?
                         When and how are they cleared? What do you require from the City? Can the
                         bank assist the City in establishing this process? What additional service fees, if
                         any, would be included?
                 d.      When are credit/debit advices sent to the City? On-line or in paper form?
                 e.      How are notifications of overages/shortages reported? When?
                 f.      What type deposit bags are required or used? Are they provided by the bank?
                 g.      Are dual verification security measures used on receipt of deposits? (Teller and
                         vault processing.)
                 h.      State the bank’s Availability Policy if it differs from the published Availability
                 i.      Does the bank offer expedited availability? Are any deposits or credits delayed
                         for any reason?
                 j.      If provisional credit is given on deposit before verification, when does
                         verification occur?
                 k.      Describe handling on stale dated checks. (City checks are considered good for
                         six months but the stipulation is not currently pre-printed on the checks.)
                 l.      Include a list of all the bank's deposit locations and alternatives (banking centers,
                         depository facilities, processing center, cash vaults).
                 m.      Describe your EDI capabilities in receiving remittance information.

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                 NSF checks paid to the City are to be automatically re-deposited for collection.
                 Complete information must be provided on all NSF returned items including name and
                 reason for return. To reduce handling cost and improve collection ability, the City is
                 interested in the redeposit by ACH of NSF checks received to allow for date specificity
                 and to improve collection rates.

                 n.      Describe the bank’s NSF process.
                 o.      Is the bank able to create an ACH debit for second presentment to further the
                         collection effort? Is the bank currently offering this option? Fully describe the
                         bank’s process using ACH.
                 p.      Are checks automatically re-deposited with or without ACH? How many times?
                 q.      Is the NSF information or occurrence available on-line?

    4.        Standard Disbursing Services

                 Standard disbursing services for all accounts are required. Although currently in place
                 on only two accounts, the City requires automated positive pay services for all its checks.

                 The City currently disburses from the disbursement, health, and payroll accounts, as well
                 as limited disbursement activity on the utility customer account. All these accounts are
                 ZBA to the operating account.

                 The City has made available direct deposit for its employees and is interested in
                 implementing a pay card system. (See Sections V.9. and V.17.)

                 a.      Is truncation used on all checks? Under what conditions are checks not
                 b.      What constitutes a standard check signature? Are there additional fees for
                         special signature requirements such as dual signatures?
                 c.      Does the bank image all checks? Is there a cost for the return of checks?
                 d.      Are check images available on-line? When are they available and how long are
                         they available on-line?
                 e.      Describe the bank's capabilities and services for electronic funds disbursement
                         and payment information transfer to trading partners. What are the transmission
                         and formatting requirements for the City? What edits are performed? How is the
                         choice of transmission selected by the bank?
                 f.      The City would be interested in establishing remote electronic processing of City
                         checks as substitute checks produced by the City as the technology becomes
                         available. Can the bank provide this service, and at what cost?

    5.    Positive Pay

                 To safeguard against fraudulent checks, positive pay is required on all City accounts.
                 The City requires positive pay services with complete indemnification for fraudulent
                 checks. The proposal must address a positive pay process which is fully automated and
                 web compatible. Check information will be transmitted electronically to the bank on
                 each check run and on-line for manually generated checks. All exception checks must be
                 reported to the City before rejection (bouncing).

                 The City would prefer positive pay to be combined with partial or full reconciliation

                 a.          Is positive pay input for manual checks and exception handling available on-
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                 b.          How would information on individual manual City checks be transmitted to
                             the bank?
                 c.          Describe the data transfer requirements or alternatives for check registers
                             (transmission requirements).
                 d.          How can check records be deleted by the City, if necessary?
                 e.          Do you require any paper transactions on positive pay notification or
                             exception decisions?
                 f.          Are all checks, including those received by the tellers, verified against the
                             positive pay file before processing? How often is teller information updated?
                             If not verified, what is the process, liability, and security on OTC
                 g.          How and when (what time) is exception information reported to the City?
                             What is the response deadline (what time) for City exception elections?
                 h.          What options are available on default disposition for exceptions? How are
                             defaults set?
                 i.          What review criteria are available?
                 j.          Can the bank provide fraud control paper check stock?

    6.     Account Reconciliation

                 The City currently uses full reconciliation services but wants to consider partial
                 reconciliation under this proposal combined with positive pay on all accounts, dependent
                 on its cost effectiveness and the service levels proposed. Positive pay is currently used
                 only on the disbursement and payroll accounts. Reconciliation reports are due within five
                 business days of the beginning of each month.

                 a.      Fully describe the bank’s partial and full reconciliation services (capabilities,
                         services, reports, etc.) and the differences between the two levels of service.
                 b.      What level of automation is available. How much flexibility is there for bank
                         systems to interface with existing in-house systems?
                 c.      Specify reporting alternatives (on-line or paper).
                 d.      Provide a sample copy of partial and full reconciliation reports.
                 e.      When are reports available from partial or full reconciliation?

                 Include the costs of both partial and full reconciliation on Attachment A for comparison

    7.     Funds Transfer and Wire Services

                 The City currently has an average of five (5) incoming wires per month and rarely
                 utilizes outgoing wires or internal transfers. Because of the small number of wires, no
                 real time monitoring will be required.

                 Incoming wire transfers must receive immediate same day collected credit. Wire
                 initiation and monitoring is preferred but not required to be available on-line. The City
                 will require compensation for delays caused by bank errors at that day’s Fed Funds rate.

                 a.      List the methods of wire initiation and monitoring available. Provide a screen
                         print of the input and monitoring screens.
                 b.      Are there additional fees for initiation of wires on-line? On paper?
                 c.      Is a paper follow-up transaction required in addition to transfer and wire on-line
                 d.      How will the bank notify the City of incoming wires? When?

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                 e.      Include a description of security provisions, PIN requirements, and back-up
                         systems on wires and transfers on the automated system.
                 f.      What secondary or tertiary authorization features are available on-line? Is dual
                         authorization required?
                 g.      Is future dating of wires and transfers available? How far in advance? Is future
                         dating available for both repetitive and non-repetitive wires and transfers?
                 h.      State wire access times, posting times, and cut-offs.
                 i.      State the bank’s policy on the use of ledger balances for outgoing wires in
                         anticipation of daily security activity or incoming wires.

     8.    Optical Imaging

                 The City is currently receiving and requires optical images on CD on all accounts.

                 a.      Is optical imaging currently available? On-line? On CD?
                 b.      What items are captured (checks, statements, deposit slips, deposited items, etc.)?
                 c.      Describe your on-line retrieval capabilities. Which images are available on-line?
                 d.      How long are images retained on-line? Does the bank provide optional extended
                         availability? Is there an additional charge for extended on-line availability?
                 e.      Describe any City software or hardware requirements.

9.    ACH Services

                 ACH services are required for receiving payments and making vendor payments and
                 transfers. ACH is currently used primarily for payrolls and vendor payments.
                 Approximately 2,000 credit transactions and 1,500 debit transactions are processed
                 monthly. The City may consider institution of a separate ACH clearing account during
                 the contract period with filters and blocks to minimize the possibility of fraudulent
                 transactions. The City requires a pre-notification on all new addresses. The City will not
                 pre-fund entries.

                 a.      Is the ACH service fully available on-line for individual transactions as well as
                         transmitted files? Is the City able to initiate individual ACH transactions on-line?
                 b.      What filter and block mechanisms are available on ACH transactions?
                 c.      Are ACH addenda shown in their entirety on-line (prior day detail) and on
                         reports? Note any limitations applicable.
                 d.      State data transfer alternatives, requirements and limitations (transmission, web,
                         or tape).
                 e.      State the availability policy for debit and credit ACH transactions.
                 f.      Does the bank routinely pre-note? Is the pre-note charged as a standard ACH
                         transaction? If not, how is it charged?
                 g.      Are there any specific ACH reports on paper or on-line? If so, please describe
                         and submit a sample.
                 h.      Is the deadline for transmission for a payroll to credit employee accounts on
                         Thursday different from the standard clearing house requirements?
                 i.      Describe any other uses for ACH not contemplated by this RFP.

     10.   Investments and Safekeeping Services

                 The bank will be required to provide book-entry segregated safekeeping services for
                 securities owned by the City. All City investments will be made by the City, or its
                 investment advisor, and instructions for clearing and safekeeping will be given to the
                 bank in writing.

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                 Custody must be in the bank and not a brokerage subsidiary of the bank. All securities
                 must be cleared on a delivery versus payment (DVP) basis and ownership documented
                 by original clearing confirmations and safe-keeping receipts provided within one business
                 day of transaction settlement. Funds for investments will be drawn from a designated
                 City DDA account. All P&I payments, coupon payments, and maturities must receive
                 automated same day collected credit on the City designated account without requiring
                 any additional City action.

                 All City investments are made on a competitive basis. The bank will be eligible to
                 become an authorized broker/dealer to City, however, securities purchased by or through
                 the brokerage of the bank must be safe-kept in the Trust Department of the bank or with
                 an independent custodian in order to perfect delivery versus payment independence on
                 the trade. No additional safekeeping and clearing fees will be accepted on such
                 transactions. The bank's brokerage bids/offers must be shown net in the trades.

                 If the bank utilizes a correspondent bank for safekeeping of City securities, City
                 instructions will be directed to the bank and the transactions will be handled through the
                 bank's systems without additional manual or automatic transactions by the City with the
                 correspondent bank. No delay in transactions, wires, or flow of funds will be acceptable
                 under a correspondent relationship and may be basis for termination.

                 A monthly custody listing of securities held will be required to be sent to the City.

                 The City currently holds no securities but could anticipate an average of ten and fifteen
                 securities in FRB and/or DTC safekeeping at any one time. All fees for clearing and
                 safekeeping must be stipulated on Attachment A.

                 a.      Is the bank a member of the Federal Reserve and DTC?
                         Will the bank be the safekeeping bank for City owned securities or a
                         correspondent? If not, state the name and location of the correspondent bank to
                         be used for clearing and safekeeping.
                 b.      Describe any safekeeping arrangement proposed with a correspondent bank
                         including processing requirements by the City. What delays or transactions does
                         this create if any?
                 c.      Are security transactions available on-line for origination and monitoring?
                 d.      Can the positions and transactions be monitored on-line in real time? Does real-
                         time information require additional charges?
                 e.      Does the bank have a brokerage subsidiary?

                 The City may choose to purchase time deposits from the bank but all time deposits will
                 be competitively bid at the time of purchase.

    11.   Collateral Requirements

                 Authorized collateral, as defined in the City's Investment Policy and state statute 6-10-10
                 NMSA, 1978, Subsection G, must be pledged against the total time and demand deposits,
                 net of FDIC insurance with a minimum 100% margin on the collateral maintained at all
                 times by the bank in accordance with the City's Policy.

                 The proposal must state agreement to the following terms and conditions.

                         All collateral pledged to the City must be held in an independent, third party
                         bank outside the bank’s holding company.

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                             A tri-party safekeeping agreement shall be executed between the City, the
                             depository, and the safekeeping bank for custody of pledged securities in full
                             compliance with FIRREA1 requiring a bank resolution. (Or completion of
                             Circular 7 if the Federal Reserve is acting as custodian.)
                             All time and demand deposits will be collateralized at a minimum of 100% of
                             principal plus accrued interest at all times, net of FDIC insurance.
                             The bank will be contractually liable for the continuous monitoring and
                             maintaining of collateral at the City's required margin levels.
                             Pledged collateral will be evidenced by original safekeeping receipts/report sent
                             directly to the City by the custodian within one business day.
                             The City shall receive a monthly report of collateral pledged including
                             description, par, market value and cusip at a minimum.
                             Substitution rights will be granted if the bank obtains the City’s prior approval
                             and if substituting securities are received before previously pledged securities are
                             removed from safekeeping.
                             Authorized collateral includes only:
                                 Obligations of the US Treasury (at market value)
                                 Obligations of US Government agencies and instrumentalities including
                                 mortgage backed securities which pass the bank test (at market value)
                                 Securities of the State of New Mexico and its subdivisions (at par value)
                                 Revenue bonds of public entities in the US rated not less than BAA or
                                 equivalent by two nationally recognized rating agencies (at market value)

                   a.       State the bank’s acceptance of all the collateral conditions above. Any
                            discrepancies should be fully noted and supported in the proposal.
                   b.        Does the bank propose any collateral charges? If so, how is the charge
                             calculated/applied? (Note charges incurred as a result of the conditions, such as
                             security type restrictions or deposit timing, on Attachment A.)
                   c.       Provide the bank’s collateral agreement for review.

    12.     Account Analysis

                   Monthly account analysis reports must be provided for each account and on a
                   consolidated account basis by the fifth (5th) business day of the succeeding month.
                   Within five business days of receipt of the monthly account analysis (and subsequent
                   approval of the fees by City) the bank may direct debit the designated account for fees
                   due if compensation is being calculated on a fee basis.

                   A complete account analysis will be required monthly regardless of the payment basis.

                   a.        Provide a sample account analysis including calculation bases.
                   b.        State when the analysis will be available each month.
                   c.        Describe the ability of the bank to provide reports on-line. If on-line, how long
                             are they accessible?

    13.     Monthly Statements

                   The bank must provide monthly account statements on all accounts with complete
                   supporting documentation on a timely basis. All accounts must be on a calendar monthly
                   cycle and statements received by the fifth working day of the succeeding month.
                   Timeliness of statements is critical and non-performance will be grounds for termination
                   of contract.

1 Financial Institutions Resource and Recovery Enforcement Act.
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                 At a minimum, the following information will be required:
                 •       detail on all debit and credit transactions by account,
                 •       all cleared checks,
                 •       full wire and ACH trailer information,
                 •       all deposits,
                 •       balance, and
                 •       copies of all transactions performed by bank personnel.

                 a.      Describe the statements and provide a sample.
                 b.      Describe the ability of the bank to provide reports on-line and/or imaged.
                 c.      When are on-line or optically imaged reports available? If accessible on-line,
                         how long are they accessible?

    14.   Account Executive

                 To insure smooth contract implementation and continuation of services, a specific
                 account executive and a back-up must be assigned to the City account to coordinate
                 services and expedite the solution of any operational problem encountered. The account
                 executive should be available to meet with City staff on banking matters as needed and at
                 a minimum semi-annually. The Account Executive shall be available during work hours
                 to serve as the City’s single point-of-contact at the bank, and shall be capable of
                 addressing all issues that may arise in connection with the bank's services.

                 a.      Provide the name, location, and title of the proposed account executive with a
                         short bio.
                 b.      Provide the name, location, and title of the backup representative.

    15.   Overdrafts

                 Every effort will be made to eliminate intra-day and inter-day overdrafts.

                 a.      State the bank’s policy regarding account and aggregated account overdrafts and
                         detail rates and fees, if any, to be charged on a per event or per account basis.
                 b.      Are all accounts aggregated for overdraft calculation purposes or do accounts
                 c.      State the rate basis for intra-day and inter-day overdrafts.

    16.   Stop Payments

                 The City has very few stop pays. An automated stop pay process is preferred however if
                 it is cost effective.

                 a.      Can stop pay orders be initiated on-line? Is a paper follow-up document
                 b.      How long do stop pays remain in effect normally? What options are available for
                         extended stop pay periods?
                 c.      What is the deadline for same day action on stop pays?
                 d.      Will the teller and clearing systems verify the check status before accepting the
                         stop pay?
                 e.      Provide the stop pay authorization levels and notification requirements.
                 f.      What information on current and expiring stop pays is available on-line?

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    17.     Pay Cards/Debit Cards

                 The City has attempted to implement prepaid cards (pay card/debit card) for payroll
                 payment to employees without banking accounts. However, the high fees required of the
                 employees has made implementation unsuccessful. Please indicate in Attachment A the
                 cost to provide this service. The employees should have the ability to use the cards for
                 purchases at participating merchants and/or cash withdrawals at financial institutions and

                 The purchasing ability of the cards would be limited to the amounts funded by the City.
                 No charge may be assessed to users for on-us withdrawals at the bank.

                 The City is also interested in perhaps creating a flexible spending account (such as a
                 medical savings account) through the pay card mechanism.

                 The City will be responsible for all marketing and marketing materials on the program
                 and retains total discretion on the distribution of the cards. The banking institution is
                 required to provide card holders with all processing and transaction information.
                 Services expected from the bank would include at a minimum:
                         embossing, encoding and distributing cards as directed by City
                         provision of electronic statements to cardholders via on-line web access or paper
                         administration of accounts: maintenance of accounts, application of funds,
                         authorization of transactions, related tracking
                         customer service functions

                 a.      How long has the bank provided this or a comparable service?
                 b.      How many customers use the service? Provide three comparable references for
                         the service.
                 c.      Which program (authorization marks) does your program use? (Visa, MC, ?)
                 d.      What are the inactivity levels for the program?
                 e.      How do you track unclaimed funds?
                 f.      How does the bank provide confidentiality of information?
                 g.      Can the term of the program be matched to the banking services depository
                 h.      Describe your customer servicing process.
                 i.      Describe the data transmission requirements and deadlines?

          18.   Company Banking

                 The City is interested in giving its employees the opportunity for enhanced banking

                 a.      Describe any program the bank has available to benefit the employees and/or
                         students of the City.
                 b.      List services provided and applicable fees to the City or employee.
                 c.      Is availability of the program based on use of direct deposit?


                To be considered the proposal must include a response to this Section VI.
                and all fees associated with the service must be shown on Attachment A.
                              If the service is not available respond as such.

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    The City continues to investigate new services for inclusion under its depository services contract.
    These services are not currently required but will be evaluated in terms of availability, feasibility,
    service levels, services provided and charges for potential current, or future, use under the contract.
    The City may make its determination on the service’s use anytime during the contract period. If the
    service is initiated later in the contract period the services and charges stipulated in this proposal will
    be applied. If the bank currently does not offer the service but is planning to make it available during
    the initial contract period, it should so stipulate along with the anticipated date of activation.

        1.       Retail Lockbox

                 The City is investigating the use of an automated lockbox to process its utility payments.
                 Currently, the City bills eighteeen (18) cycles of bills for a total of approximately 40,000
                 accounts/payments per month and maintains an internal lockbox operation processing
                 approximately 1,500 checks and $100,000 per day. Cycles are basically equal to the
                 number of bills and the dollar amounts represented. The City will require assistance in
                 reviewing and possibly designing its lockbox remittance document. Currently the
                 document is printed externally.

                 A copy of the current remittance document is attached. The accounts are identified by a
                 customer account number and a cycle number. A late fee is computed and included for
                 payment after a specified payment due date.

                 The lockbox would deposit directly to the Operating account on standing instructions.
                 The City requires an imaged check with full check MICR capture and imaged remittance

                 a.      Does the bank have its own lockbox operation or is it outsourced?
                 b.      If not a bank proposing on banking services, provide credit ratings senior debt,
                         subordinated debt, and long term debt of the company. (D&B, S&P, etc.)
                 c.      How many employees does the Offeror have in the location to be used? How
                         long has it been in operation? What is the average years of experience?
                 d.      Where is the lockbox facility located? What address would the remittance
                         document carry?
                 e.      Describe the major components of your lockbox process. Include overall
                         processing and quality control checkpoints. How many times is the lockbox
                         emptied? How many deposits are made daily? What controls are in place?
                         Describe any priority handling. Provide a list of lockbox holidays. Does this
                         location handle both wholesale and retail processing? Do you use any remote
                         data entry? How do you handle correspondence?
                 f.      What are your recommended specifications for remittance documents?
                 g.      Mail processing: Will there be a unique zip? Who performs the fine sort? List
                         your procedures for security on cash in envelopes.
                 h.      Is image processing included on both remittance documents and checks? If not,
                         when will imaging be available?
                 i.      Can you combine multiple deposits to a single ledger credit for statement
                 j.      Provide the names, contact names and telephone numbers of at least three
                         comparable lockbox clients.
                 k.      Describe how availability will be computed. Do availability schedules differ
                         from regular deposits?
                 l.      How do you handle credit card charges?
                 m.      Describe the data transmission process and provide all sample reports to be
                         received by the City. What times do you anticipate for transmissions?

F:\PURCHASE\RFP\Banking Services 05-56926\details05-56926.doc                                          27
                 n.      What is the earliest transmission time that information is available daily? How is
                         this made available?
                 o.      Describe the system and methods used by which you make deposits to the City
                 p.      On any given day, at what time can you report the total amount to be credited to
                         the City account? How is this information reported?
                 q.      How long before the notification deadline do you stop accepting/processing
                         incoming mail for the specific lockbox?
                 r.      Provide a copy of all required agreements for implementation of the service.
                 s.      What is the desired lead time for implementation?
                 t.      Describe your compensation requirements, if not proposing banking services.

        2.     Courier or Armored Car Service

                 The City currently uses an independent courier service for pick-ups from City Hall under
                 a separate contract. (Remote locations utilize city employees for this purpose.) The
                 courier is used to deliver the City’s deposit to the bank one time with three (3) deposits
                 each business day. The City would be interested in linking courier service to the banking
                 services contract , if such an option is available.

                 a.      Discuss the bank’s ability to provide courier or armed car service under this


                 Merchant Bankcard Services.

                 The City currently accepts credit/debit card payments in all departments by telephone,
                 internet, and in person primarily for utility payments, service charges, and entry/use fees.
                 The City is working toward implementing this for all fees and charges.

                 Merchant Bankcard services are currently provided under a contract with Bank of
                 America but the City is interested in obtaining a competitive price proposal for this
                 service. The service should include daily capture, transmission and authorization of
                 payments at point-of-sale. Reporting would be required by location.

                 For the twelve (12) month period (ending December 31, 2004) the following volumes
                 were processed through the bankcard merchant relationship:

                 •       Ten (10) merchant accounts
                 •       80% of revenue was produced in utility payments and at Pinion Hills Golf
                 •       The majority of charges were Visa/MC with 1% Discover cards
                 •       The average ticket was approximately $ 100 (utilities at $150, golf at $50)

                 a.      How long has the firm offered merchant card (credit and debit cards) processing
                         services? Is a third party used?
                 b.      Describe the level of support during implementation and on an ongoing basis.
                 c.      Describe the fee components of a merchant bankcard processing relationship.
                         What is the cost to the City for different levels of processing fees? Provide a
                         funds availability schedule. How late can data be transmitted to meet these
                 d.      Is settlement made by Fedwire or ACH? Are settlement amounts listed
                         separately or in a lump sum?
F:\PURCHASE\RFP\Banking Services 05-56926\details05-56926.doc                                         28
                 e.      Can the firm assist in developing, or have software available for, on-line
                         payments to the City?
                 f.      How many customers (entities and cards) do you have? How many have you lost
                         in the past year?
                 g.      Provide credit ratings for the firm.
                 h.      Describe data availability and reporting.
                 i.      Detail billing options.
                 j.      Describe the authorization method process used.              How are incorrect
                         authorizations reversed?
                 k.      Describe the dispute and charge-back processing procedures.
                 l.      What is the funds availability schedule? Is it negotiable? Is settlement by ACH
                         or FedWire?
                 m.      Describe your debit card processing capabilities. How do you identify between
                         debit and credit cards? Do you support BIN processing to differentiate credit and
                         debit cards? Can you direct a debit card to the lowest cost network
                 n.      Describe your transmission process. Describe the monitoring and notification
                         process if transmissions fail. What is the process to reverse an incorrect
                         authorization? What is your recommended transmission process?
                 o.      Is data imaging available? If so, please describe.
                 p.      Describe the dispute resolution process.
                 q.      Describe your security measures for internet transactions and unauthorized use.
                 r.      Are there limitations by day, file, or batch? Do you support fraud awareness
                 s.      List any processor specific hardware needed. Describe your process for handling
                         test transactions.
                 t.      What authorization methods do you support/recommend? What is your average
                         response time for authorizations?
                 u.      Are there limitations on number of transactions by batch or day?
                 v.      Include a copy of the agreements to be executed.


                 Responding financial institutions are encouraged to indicate any reservations or
                 exceptions to the RFP and submit alternative approaches in the proper questions
                 sequence. Such reservations or exceptions should be clearly noted.


                 The City will take into account both costs and earnings potential as part of the evaluation
                 of each proposal. It is critical that the Attachments A and B be completed in their
                 entirety for this information.

                 Attachment A has been provided for the detailing of all anticipated fees. If the
                 Attachment does not detail line item fees required for a particular service, the fee type
                 and level should be added and identified by the applicable TMA (AFT) code, if possible.
                 Bundled fees should be clearly delineated especially regarding on-line services to assure
                 accurate evaluation.

                 The City reserves the right to utilize either a direct fee basis or a compensating balance
                 basis (or a combination of each) for payment of services under the contract based on fees.
                 The City reserves the right to change the fee methodology during the contract period
                 upon no less than 30 days written notice to the bank with the change commencing the

F:\PURCHASE\RFP\Banking Services 05-56926\details05-56926.doc                                        29
                 beginning of the following month.        This will enable the City to take advantage of
                 changing interest rate environments.

                 •       If fees are used with a sweep as the basis for compensation, fees will be paid as a
                         direct debit to a designated account after a five day City review and approval of
                         the account analysis charges.
                 •       If a compensating balance basis with a sweep is used for the basis of
                         compensation, the City requires carry-over of balances with semi-annual net
                 •       Regardless of the payment methodology a monthly account analysis will be

                 Any cost (bundled or unbundled) not included on Attachment A will not be paid under
                 this agreement, with the exception of costs related to new or optional services negotiated
                 subsequent to the initial agreement.

                 Attachment B must also be completed in order to evaluate the historic earnings rate at
                 the bank.

                 Fees and service charges included in the successful proposal shall remain in effect for the
                 first four, one year periods; however any Federal Reserve service charge increase may be
                 passed through to the City upon 30-day written notice. Should new services be required
                 during the contract period not contemplated by this RFP, those services will be negotiated
                 but at fees not more than the bank’s then-current published rate. Any changes in fees for
                 the extension periods will be negotiated and must be approved by the City in writing. In
                 no instance will the rate increases in extension periods exceed the Western Region CPI
                 increases during the same periods as reported by the Bureau of Labor Statistics.

F:\PURCHASE\RFP\Banking Services 05-56926\details05-56926.doc                                        30
                        ATTACHMENT A

          Activity volumes are estimates based on historical levels. The AFP Code for several of the services
          has been provided where available. Change as necessary.
          Provide a price schedule for all services using AFP Service Codes and include
          any one-time or set-up charges, and all other fees that will be charged for services proposed.
 AFP                                                                                                  Unit Bank      Explanatory
Code *                         Service                              Unit Basis            Vol          Charge     Notes, if applicable
          Account Deposit Services
          FDIC Assessment (on Avg Ledger)
000210    Use of Uncollected Funds (Overdraft)
010000     Master Account Maintenance Fee                      Per account                 1
010000     Subsidiary Account Maintenance                      Per account                 4
010000     Account Maintenance with Check Return               Per account
010000     Account Maintenance with Check Storage              Per Account
010021     ZBA Accounts Maintenance Fee Master                 Per account                 1
010021     ZBA Accounts Subsidiary                             Per account                 4
010112     ZBA Account Transfers                               Per item
010320     Account Research Fee
010000      Money Market Account Maintenance Fee               Per account
010000      Interest Bearing Accounts Maintenance Fee          Per account
010000      Non-interest Bearing Account Maint. Fee            Per account
450020     Investment Sweep                                    Per account/Per Mo          1
                  Dr/Cr Transaction Fee                        Per item
010100     Debits Posted                                       Per item                   1,850
010101     Credits Posted                                      Per item                    450
           Checks Paid - Truncated                             Per item                   1,401
           Checks Paid - Not Truncated                         Per item                    450
           Electronic Credit Posted                            Per Item                    350
           Electronic Debit Posted                             Per item                     25
010310     DDA Statement - Multiple Cutoffs                    Per item                     40
010110     Deposit Processing - Teller OTC                     Per deposit
010112     ZBA Account Transfers                               Per transfer
010402     Internet Stmt Copy Request                          Per item
010703     Statements Rendered                                 Per item
100400     Return Items                                        Per item                    40
100402     Reclears                                            Per item                    60
           Non-sufficient Funds
           Positive Pay Maintenance                                                        5
150401     Telephone Inquiry                                   Per item

400000    Automated Services - Balance & Detail
401003      Software Installation Fee                          One Time
              Workspace Set-up fees
400000       Monthly Maintenance (Base) Fee*                   Monthly per acct
010300       Cost per account E-Statements                     Per account/overall
010300       Cost per item - E-Statements                      Per account/overall
          If Services are Bundled:
400000          Bundled Balance & Activity Reporting           Per month
                Detail Item Fees                               Per item

          If services are Un-Bundled (by Module)
100700       a. Balance Reporting Module Maintenance           Per account                 5
                   Daily Balance Reporting
40000Z             Detail Daily Reporting                      Per account/overall
400000             Previous day Reporting                      Per account                  5
400000                  Previous Day Dr/Cr Items               Per item                   2,600
400003             Intra-day Reporting                         Per item
                        Current Day DR/Cr Items                Per item
400110            Draw Reporting                               Per item
                   Statement                                   Per item

 Attachment A                                                                                                                            1
 AFP                                                                                      Unit Bank      Explanatory
Code *                       Service                            Unit Basis       Vol       Charge     Notes, if applicable
            b. ACH Module                                 Per account/overall     1
            c. EDI Reporting Module                       Per account/overall     1
300200              EDI Detail                            Per line               300
            d. Reconciliation Module                      Per account/overall
150410      e. Stop Pay Module                            Per account/overall     1
450002      f. Sweep Module                               Per account/overall
           g. Wire Transfer Module                        Per account/overall     1
                      Addenda                             Per item
450020     h. Safekeeping Module
450100     i. Investment Sweep Module                                             1
           j. Internal Transfer Module                    Per account/overall     1
           k. Account Analysis Electronic Form            Per Account             1
400001     l. Detail item fee (all modules)               Per item
400800     Extended On-Line Storage                       Per item

          Deposits - Include and list branch fees if different
           Commercial Account Maintenance                  Per account            1
                Banking Center Deposits                    Per item               15
                Night Drop Deposit                         Per item              184
109999     Items Deposited                                 Per deposit
109999             Items deposited                         Per item                42
100220         On-us Items                                 Per item              2,730
100223         Local items                                 Per item              4,902
100221        Affiliate Bank Clearing                      Per item
100222        Local Fed/RCPC Clearing                      Per item             13,215
100222        NM City Items                                Per Item
              Other NM Items                               Per item
100223         11th Fed Country Items                      Per item
100224         Other 12th Fed City Items                   Per item
100225         Other 12th Fed RCPC Items                   Per item              3,310
               National FRB                                Per item
100224         Transit Item Clearing                       Per item
           Remote capture of checks
               Remote capture and transmission             Per item
           Rejects (including limits)                      Per item               140
100228     Encoding Charge                                 Per item              1,930
100212     Encoded Local Clearing                          Per item
100213     Encoded Regional                                Per item

          Cash Vault
100100    Cash Vault Base Fee Processing Fee              Per item
010110     Deposit Processing - OTC                       Per item
                Check Only Deposits                       Per deposit
                Fed Ready Bags (Full Order Proc)          Per item               2,500
100010          Full bag - loose coin                     Per item               2,500
100012          Plastic Bag Deposit                       Per item
100013          Partial bag of loose coin                 Per item
100047          Minimum Change Order                      Per item
10004A          Strapped currency furnished               Per item
100100          Standard Deposit Vault                    Per item
100101          Standard Deposit Note Vault               Per item
100102          Cash Deposit                              Per item              400,000
           Branch Order Processing                        Per Order
           Branch Per Deposit                             Per Deposit
           Branch Coin Shipped                            Per Shipment
                Coin Rolls Shipped                        Per roll
                Currency Wraps Shipped                    Per strap
100100     Currency Deposit                               Per deposit
                Fed Ready (strapped bulk)                 Per deposit/strap
                Standard Deposit                          Per deposit/strap
                Mixed                                     Per deposit/strap
100102          Currency Deposit                          Per item

 Attachment A                                                                                                                2
 AFP                                                                            Unit Bank      Explanatory
Code *                       Service                      Unit Basis    Vol      Charge     Notes, if applicable
100101     Coin Deposit                             Per deposit
100144          Rolled Coin Furnished               Per item             15
           Commercial Deposits - Vault
               Immediate Verification
           Deposit Corrections                      Per item             1
           Change Order                             Per item             2
100400    Deposit Returned Items                    Per item
100402     Reclear                                  Per item
100500     Deposit Corrections                      Per item
100401     Special Handling - Base Charge or Item
100430     Return Check Notice Fax                  Per item
100700     Return Check Notice Internet             Per item
100410     Return Item Account                      Per account
100410     Return Item - Per item                   Per item

          ACH Processing
250000     File Maintenance - Internet Base Fee     Per month            1
250110     Monthly Maintenance (Base) Fee*          Per month/account    5
250102     One-day credit                           Per file
250102     One-day debit                            Per item
           Consumer On Us Credit                    Per item             310
           Consumer Off-Us Credit                   Per item            1,800
           Corporate On-Us Credit                   Per item              3
           Corporate Off-Us Credit                  Per item              20
250102     Two-day credit                           Per item
250200     Two-day debit                            Per item
           Consumer On Us Debit                     Per item             350
           Consumer Off-Us Debit                    Per item            1,800
           Consumer Off-Us Debit
           Elecronic Input - Per transaction        Per item             25
           Electronic Originated Addenda            Per item             23
           Electronic Credit Posted                 Per item
250201     Electronic Debit Posted                  Per item
250202     DR/CR Received Item                      Per item
250120     ACH Addendum Received                    Per item
250302     ACH Return Items                         Per item
250302     Return Items - Fax                       Per item
251070     Return Notification                      Per Item
250642     Deletions or Reversal Charges            Per item
250500     Transmission                             Per file
250401     Notification                             Per item/file
251050     Fraud Filter - Stop - Base Fee           Per month
251050     Fraud Filter - Review - Base Fee         Per month
251053     Fraud Filter - Review - Per Item         Per item
250710     Reports - by Fax                         Per item             8

          Positive Pay
150120     Positive Pay Item                        Per item            2,000
150120     Positive Pay Rejects                     Per item              4
           Monthly Maintenance (Base) Fee*          Per month             1
150410     Per item charge with Partial Recon       Per item            2,000
           Per item charge without Recon            Per item
           No Issue                                 Per item
           Exception Notification                   Per item
150340     NSF Handling Fee                         Per item              5
151353     CD Rom Service - Per Item                Per item            5,000
151353     CD Rom Service - Per Disk                Per item              1
           Transmission - File Transmission         Per item              3
           Transmission - Diskette                  Per item
           Check Safekeeping                        Per item
           Return other than Fraud                  Per item

 Attachment A                                                                                                      3
 AFP                                                                          Unit Bank      Explanatory
Code *                       Service                    Unit Basis    Vol      Charge     Notes, if applicable
          Imaging - CD
           Imaging Maintenance                     Per month            1
           Image Safekeeping - CD                  Per CD               1
           Image Safekeeping - Per Item            Per Item           5,000
           Check Retention (90 days)               Per item

          Pay/Debit Cards
           Monthly Maintenance                     Per month           1
           Processing and servicing                Per month           1
           Implementation fee                                          10
           Initial system design and development                       1
           Special programming                     per hour
           ATM Cash Withdrawal - On-us             Per item           100
           ATM Cash Withdrawal - non-bank                              10
           Cash Advance OTC                        Per item            10
           ATM Balance Inquiry                     Per item           100
           Overdraft Fee                           Per item
           Lost/stolen replacement fee             Per card
250201     Funding credits                         Per item
           Standard reporting                      Per item
           Account reconciliation
           Corrections                             Per item

200410     Monthly Maintenance (Base) Fee*         Per Month           1
151199     Monthly Sort & List Maintenance         Per month
151100                   Per item sequencing       Per item
200020     Partial Recon Monthly Maintenance
150100       ARP Checks Paid Partial               Per item
200120       Partial Recon with positive pay       Per item
           Full recon monthly maintenance          Per month            2
             Full recon detail                     Per item           1,400
           Deposit Reconciliation                  Per item
               Monthly Maintenance                 Per account/mo
150100     Cancelled Check Return                  Per item
151330     Truncation                              Per item
           Manual Issue Input                      Per item            110
200201     Transmissions                           Per Transmission     2
200201     Transmission Detail                     Per item           1,700
           Addenda Reporting                       Per item
           ARP Monthly Maintenance - Per Account   Per Account
200305     ARP Statement On-Line                   Per report

450000      Monthly Maintenance Custody            Per month           1
459999      Clearing Fees
459999          FRB                                Per item            5
459999          DTC                                Per item            1
450102      Securities Received/ Del - DVP         Per item            1
459999      Safekeeping Fees                       Per item
450499          FRB                                Per item            10
450499          DTC                                Per item            2
450111     Custody per Cusip/Holding               Per cusip           12
450102     Custody Fixed Income                    Per item            10
            Income Collection to DDA                                   2
450102     Income Collection - Coupons             Per item            1
459999     Income Collection - Maturities          Per item            1
459999     Income Collection - Calls               Per item            1

          Stop Pays
150420     Stop Pays (automated)                   Per item            10

 Attachment A                                                                                                    4
  AFP                                                                                                  Unit Bank              Explanatory
 Code *                              Service                              Unit Basis        Vol         Charge             Notes, if applicable
               Wire Transfers
 350300         Monthly Maintenance*                                Per month                1
 350300         Incoming - domestic Straight                        Per item                 5
 350100         Outgoing - repetitive - automated,domestic          Per item
 350202         Outgoing - non-repetitive - automated,dom           Per item
 350104         Wire Out Domestic Drawdown Internet                 Per item
 350124         Wire Book Transfer Internet Initiated               Per item
 350411         Wire Advices Faxed/Mailed                           Per item
 359999         Template Storage                                    Per item
                Mail Advice                                         Per item                 4
 350412         Phone Advice                                        Per item                 4

               Optical Imaging
 159999         Handling Fee                                        Per month
 150030         Monthly Maintenance (Base) Fee*                     Per month                1
 151399         CD Image - Detail                                   Per item                 1
 151353         CD Image                                            First CD               1,400

               Collateral Fees                                      (please note basis)
                  Collateral Pledge Report
 550160           Collateral (or Excess) Fees

               Overdraft                                            Rate basis

 010610         Photo Copies                                        Per item
 150511         Cashier Check                                       Per item
 160107         Check Printing                                      Per item

               Merchant Card Services
               One-time or Set-up fees
                Monthly Maintenance                                 Per item
                Processing fees                                     Per item
                Provide your network pricing schedule
                Funds transfer charges
                Mail movement charges
                Transmission Fee                                    Per item
                Transmission - Item                                 Per item
                Equipment Costs

               OPTIONAL SERVICES

               Retail LockBox
 050010           Monthly Maintenance                               Per month
 050012          Lockbox Box Rental                                 Per month
 050020          Lockbox Data Entry/Capture                         Per item
                   Matched                                          Per item
                   Un-Matched                                       Per item
 050104          Minimum Item Processing                            Per item
 050200          Retail Item                                        Per item
 050117          Special Handling                                   Per item
 050310          Data Transmission                                  Per item
 050310               Detail Transmission                           Per item
 050320           Reporting - On Line                               Per item
                                                                    Per item

 101020        Courier                                              Per month

* An effort has been made to incorporate the most widely charged fees in both bundled and unbundled pricings. Please add
 any explanation to the form to clarify your pricing to avoid misrepresentation.
   Attachment A                                                                                                                                   5
                          ATTACHMENT B - HISTORICAL RATES
                           CITY OF FARMINGTON, NEW MEXICO

                          ALL RATES MUST BE NET RATES.

Earnings Credit Rate (ECR)
         Month/Year                        Rate                                                   Rate            Rate
             Jan-04                                                  May-04                              Sep-04
             Feb-04                                                  Jun-04                              Oct-04
             Mar-04                                                   Jul-04                             Nov-04
              Apr-04                                                 Aug-04                              Dec-04

Interest Bearing Accounts

            Month/Year                     Rate                                                   Rate            Rate
               Jan-04                                                May-04                              Sep-04
               Feb-04                                                Jun-04                              Oct-04
               Mar-04                                                 Jul-04                             Nov-04
               Apr-04                                                Aug-04                              Dec-04

Money Market Accounts

            Month/Year                     Rate                                                   Rate            Rate
               Jan-04                                                May-04                              Sep-04
               Feb-04                                                Jun-04                              Oct-04
               Mar-04                                                 Jul-04                             Nov-04
               Apr-04                                                Aug-04                              Dec-04

Sweep Alternative(s) Describe fully in Section V.1. More than one alternative may be submitted.

            Month/Year                     Rate                                                   Rate            Rate
               Jan-04                                                May-04                              Sep-04
               Feb-04                                                Jun-04                              Oct-04
               Mar-04                                                 Jul-04                             Nov-04
               Apr-04                                                Aug-04                              Dec-04

6-Month Time Deposits

            Month/Year                     Rate                                                   Rate            Rate
               Jan-04                                                May-04                              Sep-04
               Feb-04                                                Jun-04                              Oct-04
               Mar-04                                                 Jul-04                             Nov-04
               Apr-04                                                Aug-04                              Dec-04

12-Month Time Deposits

            Month/Year                     Rate                                                   Rate            Rate
               Jan-04                                                May-04                              Sep-04
               Feb-04                                                Jun-04                              Oct-04
               Mar-04                                                 Jul-04                             Nov-04
               Apr-04                                                Aug-04                              Dec-04

     Attachment B                                                               1