Banking Services - California

Banking Request for Proposal/Qualifications Page 1 of 114

City of San Buenaventura NOTICE

REQUEST FOR PROPOSAL/QUALIFICATIONS No. P-130000416

Banking Services March 12, 2018

Notice is hereby given that sealed proposals will be received at the Finance Department, until Tuesday, April 24, 2018, at 4:00 pm local time, for providing banking services in accordance with the attached RFP/Q No. P-130000416.

Proposers are required to register with the City at www.cityofventura.ca.gov/bids to be eligible to submit a proposal. Copies of the proposal package may be obtained by contacting the Purchasing and Contracts Division at [email protected].

Proposals shall be delivered by mail, express mail, or in person to:

City of Ventura Attn: Purchasing and Contracts Division 501 Poli Street, Room 102 Ventura CA 93001

Proposals shall be submitted in a sealed envelope and plainly marked on the outside of the envelope: Request for Proposal/Qualifications No. P-130000416 Banking Services, Service Group (1, 2, 3, 4, and/or 5), Attn: Purchasing and Contracts Division, and shall include proposer’s name and submittal deadline date. No oral, telegraphic, electronic, facsimile, or telephonic proposals or modifications will be considered. One original, marked “ORIGINAL” and bearing original signatures, and four identical copies must be submitted, on or before, the submittal deadline date. If discrepancies are found between the copies, or between the original and copies, the original will provide the basis for resolving such discrepancies. If no document can be identified as the original, Proposer’s proposal may be rejected at the discretion of the City. Proposals received after the scheduled submittal deadline will be returned unopened. Proposals postmarked prior to submittal deadline, but received after the deadline, will be returned unopened.

Proposals will not be opened publicly, and the City will endeavor to keep such confidential until a preferred service provider is recommended to the City Council.

Any communication with City staff or the City Council, except for the Purchasing and Contracts Division, regarding this RFP/Q is strictly prohibited. Disregard of this provision could result in rejection of the proposal. All questions and comments regarding this solicitation must be submitted in writing, by email, to Jennifer Yates, Purchasing and Contracts Supervisor, at [email protected] by Tuesday, April 3, 2018. Any response will be in the form of an Addendum.

http://www.cityofventura.ca.gov/bids

mailto:[email protected]

mailto:[email protected]


Banking Services Request for Proposal Table of Contents

BACKGROUND INFORMATION/PURPOSE ........................................................ 4

City Background ........................................................................................................ 4

Treasury Background ................................................................................................ 4

Purpose ....................................................................................................................... 5

SCOPE OF SERVICE ................................................................................................. 6

Service Group 1 - General Banking Services .................................................. 6

Qualifications ............................................................................................................. 7

Collateral Requirements ........................................................................................... 7

General Account Services .......................................................................................... 8

Depository Services .................................................................................................... 9

Depository Agreement and Service Agreements .................................................... 11

Electronic Payments ................................................................................................ 11

Remote Deposit Services ......................................................................................... 11

Stop Payments and Electronic Payables ................................................................ 12

Payroll ...................................................................................................................... 13

Imaging of Incoming and Outgoing Checks ............................................................ 13

Wires and ACH ........................................................................................................ 13

Full Account Reconcilement .................................................................................... 14

Positive Pay .............................................................................................................. 15

Online Reporting ...................................................................................................... 15

Sweep Services ......................................................................................................... 16

Account Structure .................................................................................................... 17

Business Continuity ................................................................................................ 18

Bank Compensation ................................................................................................. 18

Monthly Statements ................................................................................................ 20

Account Executive .................................................................................................... 20

Conversion Process and Training ........................................................................... 20

Customer Service ..................................................................................................... 21

Optional Services ..................................................................................................... 23

Stored Value Cards .................................................................................................. 23

Company Banking ................................................................................................... 24

Service Group 2 - Merchant Services .............................................................. 25

Qualifications ........................................................................................................... 26

General Information ................................................................................................ 26

Card Acceptance ...................................................................................................... 27

Settlement Processing ............................................................................................. 27


Implementation Process .......................................................................................... 28

Security .................................................................................................................... 28

Payment for Services ............................................................................................... 28



Additional Information and Questions ................................................................... 30

Service Group 3 - Safekeeping/Custody Services ......................................... 31

Qualifications ........................................................................................................... 31

Required Services .................................................................................................... 31



Disaster Contingency ............................................................................................... 35

Service Group 4 - Public Funds Interest-bearing Accounts....................... 36

Qualifications ........................................................................................................... 36

Procedures ................................................................................................................ 37




Service Group 5 - Lockbox Services ................................................................. 40

Required Services .................................................................................................... 40




Sample Coupon for Lockbox Services ..................................................................... 44

INSTRUCTION TO PROPOSERS ......................................................................... 45

Qualifications and Submission Instructions .......................................................... 45

PROPOSAL REVIEW PROCESS ........................................................................... 50

Proposal Opening/Rejection/Waiver ........................................................................ 50

City Rights ............................................................................................................... 50

PROPOSAL EVALUATION CRITERIA AND AWARD OF CONTRACT ........ 52

EXHIBIT A – PRICING MATRIX ........................................................................... 54

EXHIBIT B – GENERAL PROVISIONS FOR STANDARD FORM

CONTRACTS ............................................................................................................. 58

GENERAL INSURANCE REQUIREMENTS ........................................................ 64

Small Local Business Purchasing Preference Certification ................................... 69

EXHIBIT C – GENERAL SERVICES AGREEMENT .......................................... 70

EXHIBIT D – NON-COLLUSION AFFIDAVIT .................................................... 84

EXHIBIT E – STATEMENT OF INVESTMENT POLICY .................................. 85

EXHIBIT F – ADMINISTRATIVE POLICY & PROCEDURE NO. 16.2 ......... 108

AUTHORIZATION SHEET ................................................................................... 114


BANKING SERVICES Section A BACKGROUND INFORMATION/PURPOSE

City Background The City of Ventura is a coastal community known for its marina, pier, golf courses, beaches, parks and passion for arts and culture. It is located in the State of California, 30 miles south of Santa Barbara and 60 miles northwest of Los Angeles. The City population is approximately 109,000. The City operates under its own charter with the City Council-Manager form of government. The City Council is comprised of seven members elected to serve overlapping terms, with one member serving as Mayor on a biennial term. Primary responsibility for the financial administration of the City rests with the Finance and Technology Director, or Chief Financial Officer. The office of City Treasurer is established within the Finance and Technology department. Unless otherwise directed by the City Manager, the Chief Financial Officer shall also serve as the City Treasurer. The City of Ventura is a full-service city comprised of more than 600 full-time and part-time employees in the following departments/offices:

City Attorney City Manager Community Development Fire Department Finance & Technology Human Resources

Parks, Recreation, & Community Partnerships Police Department Public Works Ventura Water

Treasury Background

The Treasurer serves as the banker, investor, and custodian of public funds for the City. As the City’s investment officer, the Treasurer oversees an approximate $200 million investment pool.

The City uses Enquesta for utility billing and Agresso for purchasing, accounts payable, accounts receivable, cash receipts, payroll and accounting functions. Clearwater Analytics is used for investment management. ActiveNet is used for billing for recreation activities/classes. The City’s Finance and Technology Department handles all banking, treasury, and investment activities as well as accounts payable, receivables, purchasing, payroll, financial analysis, and financial reporting functions. The Assistant Finance Director is responsible for these areas and reports to the Finance and Technology Director. The City has multiple locations at which funds are collected and from which funds may be deposited. The majority of the deposits originate in the Treasury Division at City Hall, but the Police Department will


deposit coin from parking meters directly at the bank. Currently, Treasury Division deposits are sent to the depository vault on a daily basis by a third-party armored transport courier. The Treasury and Accounting Divisions handle all reconciliations.

Purpose Currently, the City’s general banking services and merchant services are provided by Bank of America while the City’s safekeeping services are provided by Bank of America Merrill Lynch. Given the ongoing changes occurring within the banking industry and evolving technologies, the City has determined that a review of services offered is appropriate at this time. The City of San Buenaventura (“City”) is soliciting proposals from eligible financial institutions that can provide a complete range of banking and financial services for its day to day operations, in accordance with the City’s Statement of Investment Policy. Through a contract, the City intends to minimize banking costs, improve operational efficiency, maximize earnings and investment capabilities, and take advantage of new technologies where possible. This Request for Proposal/Qualifications (“RFP/Q”) presents the City's cash management goals, specifies all required qualifications, the banking services required, the method and terms of compensation, submission instructions and contract award provisions. All qualified and registered institutions, as defined below, are invited to submit a proposal. The City reserves the right to further negotiate the proposed work scope and/or method and amount of compensation. To facilitate the evaluation of proposals, the services are divided into five service groups as listed below. Financial institutions may propose to provide one or more of these services:

Service Group 1: General Banking Services Service Group 2: Merchant Services Service Group 3: Safekeeping/Custody Services Service Group 4: Public Funds Interest-bearing Accounts Service Group 5: Lockbox Services

Respondents must meet all requirements of the particular scope and be in compliance with all banking regulations, and all applicable federal and state laws. Institutions responding to this RFP/Q must be insured through the Federal Deposit Insurance Corporation (FDIC), and must be able to demonstrate a capacity to meet the City’s requirements. Securities pledged as collateral to secure City deposits will be governed by California Government Code Section 53652, as well as the more restrictive Section 9.0 of the City Investment Policy, City Administrative Policy and Procedures 16.2, and this RFP/Q.

With the exception of the Public Funds Interest-bearing Accounts which will be used to create a pool of qualified institutions, the City intends to enter into a five-year contract with five optional one-year extensions with the same fee levels, pending Council approval. It is anticipated that the contract term for all Service Groups 1-5 will begin on or about August 1, 2018.

http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV&sectionNum=53652.

http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV&sectionNum=53652.


BANKING SERVICES Section A SCOPE OF SERVICE

Service Group 1 - General Banking Services

Banking services for all accounts listed below are included in this Request for Proposal (RFP/Q). The City currently maintains four accounts which are listed below with a brief explanation of the account:

• General Operating Account (Zero Balance Account (ZBA) Master)

Used for general City deposits and disbursements, excluding Payroll, by check, ACH, or wire; City deposits; investment settlements.

• Payroll Account (ZBA Subsidiary)

Used to fund City’s bi-weekly payroll primarily by ACH.

• Worker’s Compensation Account (ZBA Subsidiary)

Used to fund weekly worker’s compensation expenses, processed by Athens (manual checks).

• Downtown Parking Account

(ZBA Subsidiary)

Used primarily to deposit monies collected from parking meters and to pay merchant fees for processing credit card transactions.

The City uses general banking services, positive pay, lockbox, online tax payments, electronic deposit and disbursement, online wire entry, and online stop payment placement. Online reporting includes prior day transactions and intraday transactions, but is also interested in current day activity. Compensating balances and a sweep account are utilized. Most daily activity will occur in the Operating account. Most disbursements, excluding payroll, are made from the operating account currently. Only the Operating and Downtown Parking accounts receive bank deposits. Automated Clearing House (ACH) instead of wires are used primarily. ACH transactions occur in all accounts. Filters are currently being used. Positive Pay is currently being used. No reconciliation services are currently used. Approximately $5.8 million is processed in payables monthly with most payable runs every Thursday. The Finance and Technology Department currently handles all reconciliation on the accounts, but is also interested in reconciliation services. Electronic statements for accounts are required. The City wants to automate banking services whenever efficient and cost effective. This proposal should address automation potential on any services. The City has not yet contemplated using e-payables and e-receivables; however, ideas moving the City slowly towards these services are requested within the RFP/Q questions.


Qualifications To be considered for selection, proposing banks must meet certain minimum qualifications. Financial institution must be a Federal or State chartered banking institution as defined in California Government Code; must be a qualified depository of public funds pursuant to California Government Code Section 53648; must collateralize the City’s deposits pursuant to all applicable sections of the California Government Code as well as enter into a collateralization agreement for public funds; must have at least a “satisfactory” Community Reinvestment Act (CRA) rating; must have at least a “satisfactory” rating from a nationally recognized bank rating service; and must have a dedicated government services unit. 1. Provide key measures of the bank’s financial strength, including ratings from nationally

recognized rating service(s) and bank rating service(s). Include one copy of the bank’s most recent audited financial statement and the most recent copy of the bank’s CRA rating from a nationally recognized bank rating service. The bank shall notify the City of any change in these ratings on a timely basis during the contract period. Confirm agreement to this requirement.

2. List branch locations within the City.

3. Provide the financial institution’s current level of public funds deposits and related collateral market value. Provide a copy of a recent collateral trust statement.

4. Provide a list of what differentiates your products and services from other banks, and why the City should select your bank.

5. Submission of an audited statement to the City each year of the contract period is required, as soon as it is available. Confirm agreement to this requirement.

Collateral Requirements Authorized collateral, as defined below, must be pledged against the total of time and demand deposits net of FDIC insurance with a margin on the collateral maintained daily by the bank as stated below. All the state requirements must be met by the bank. The proposal must state agreement to the following terms and conditions. 1. All collateral pledged to the City must be held in an independent, third party bank outside

the bank’s holding company.

2. A collateral agreement shall be executed or incorporated in the depository agreement in full compliance with Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) requiring a bank resolution. (Or completion of Circular 7 if the Federal Reserve is acting as custodian.)

3. All time and demand deposits above FDIC coverage shall be collateralized at the minimum margins shown below.


4. The bank shall be contractually liable for the daily monitoring and maintaining of collateral

at the City's required margin levels.

5. Pledged collateral shall be evidenced by original safekeeping receipts/report sent directly to the City by the custodian.

6. The City shall receive a monthly report of collateral pledged including description, par, market value and Committee on Uniform Security Identification Procedures number (CUSIP) directly from the custodian.

7. Substitution rights may 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. Substitution and release rights without City action may be granted if online monitoring of positions is available.

8. Collateral must be in place three days before any deposits are made originally.

9. Authorized collateral includes only:

a. Obligations of the US Treasury (110% margin). b. Obligations of US Government agencies and instrumentalities (110% margin). c. Mortgage backed securities which pass the bank test (150% margin). d. Letters of Credit (105% margin).

• State the bank’s acceptance of the collateral conditions above. Note clearly any exceptions.

• What institution will the bank use for the Custodian? The City prefers the Federal Reserve as Custodian.

• Are there collateral fees? What are they? How are they charged? General Account Services 1. Provide the bank’s availability schedule for the various types of deposits.

2. Describe the bank’s policy on and ability to provide daylight overdraft (intra-day) protection.

3. Describe your policy on and ability to provide inter-day overdrafts. Identify how the interest rate is determined. State the rate index basis and any fees for intra-day and inter-day overdrafts.

4. Are all accounts aggregated for overdraft calculation purposes or do accounts stand alone?


Depository Services Standard commercial deposit services are required. On average, the City makes 20-22 deposits per month in approximately 40 bags by courier charged through the account analysis. The City primarily uses vault services for deposits, but also deposits to banking centers. Armored transport of checks, cash and coin deposits are currently provided as part of banking services on Monday through Thursday, and alternate Fridays. The City deposits approximately $100,000 in currency and coin each month. Coins are not rolled and may be in partially filled bags. Currency is not strapped. The City deposits approximately 5,000 checks per month and does not use remote deposit. Deposited checks are endorsed and encoded. Deposits are batched with deposit listings attached. The City expects all deposited checks to clear based on the bank’s current published availability schedule, but, any expedited availability options available should be noted in the proposal. 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 wires, ACH transactions, on-us items, and U.S. government security maturities and coupon payments. 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.

1. Describe the bank’s required preparation for cash deposits, currency, coins and checks. What type of deposit bags are used or required? Are they provided or available from the bank? Is there any limit to the number of deposits in one bag? Are there separate advices? Can cash, coin and checks be deposited separately or must they be deposited together?

2. Identify the location of the cash vault and check processing center where the City’s deposits will be received and recorded. Include a list of all the bank’s deposit locations within the City’s limits (excluding ATM deposits).

3. What are the cut-off times for check and cash deposits at the bank’s operations center to ensure same day ledger credit?

4. Describe any program available for immediate credit on coin/currency such as use of a smart safe.

5. Is deposit reconciliation available? Describe the process and options.

6. Describe how the bank handles any deposit discrepancies, including checks deposited to the City by mistake. What dollar limits are used for decisioning? How soon will the City be notified? How will the City be notified? (Preference will be given to electronic delivery.) What supporting documents are provided for deposit adjustments?

7. Describe the bank’s return procedures for non-sufficient funds (NSF) checks. Will the bank be able to fulfill the City’s requirement that all returned deposit items be re-deposited at least once? How and when is the City notified of the NSF check?

8. Describe how the bank handles contaminated cash and coin.


9. Price and report the total fees which would apply to the following sample deposits

outlined below i.e., the total cost of the deposit handling would be: $ ________. (This does not reflect a normal City deposit and is used for cost comparison purposes only.)

SAMPLE DEPOSITS:

The Sample Deposit #1 would be made (a) in three tamper-proof deposit bags, (b) with cash and checks in separate bags, (c) with coins that are not rolled, (d) with deposit listings attached to encoded and endorsed checks. If there is a price difference to use straps, please indicate. Sample Deposit #1:

Currency Denom. Total $ $100 $ 30,100 $ 50 $ 5,250 $ 20 $ 6,820 $ 10 $ 710 $ 5 $ 875 $ 1 $ 14 $ 43,769 Coins $ .25 $ 41 $ .10 $ 12 $ .05 $ 3 $ .01 $ 2

$ 58 Checks 280 checks $ 140,252 Total Deposit $ 184,079

Sample Deposit #2: Image Cash Letter (ICL) file from LockBox 1 file, 275 items $ 82,625

10. Does the bank have any (e-receivables) program to actively assist the City in collection

through ACH for vendors or ongoing repetitive citizen payments?

11. How much advanced notice is required on coin and currency orders? Can orders be placed online? What is the turn-around time on orders?


Depository Agreement and Service Agreements Provide a copy of all depository and service agreements which will be required to be executed under the contract for services rendered (including collateral agreements). Any changes required on the agreements will be discussed and agreed upon before award of the contract is made by the City.

Electronic Payments The City receives approximately 3,600 utility payments each month by way of electronic payments (home banking payments). This will double in the next 2-3 years as the City moves toward monthly billing. Although the City is set up to receive payments electronically, approximately 10 percent of payments initiated online are still received by check. On a daily basis, the City downloads a file provided by our current lockbox vendor and transfers the file into the Utility Cash Receipts software, enQuesta, for processing.

1. Describe your electronic payment processing services.

2. What steps are taken to validate account numbers prior to remittance?

3. What services are available to reduce the number of paper checks received?

4. At what time of the day is the remittance file made available?

5. Describe how returns and account repairs are processed.

6. What reporting capabilities are available?

Remote Deposit Services The City currently does not use remote deposit. The City plans to consider options for remote deposit in the future. Checks will continue to be deposited at the vault or the bank and the City may add remote locations during the contract period. A web-based system is required.

1. Describe the bank's capabilities for remote capture. Describe equipment needs,

capabilities, and limitations.

2. What is the final deposit cut-off time with remote?

3. Are there any limitations on batch size or number of transmissions per day?

4. If a check is accepted and subsequently returned by the bank NSF, define the process. What obligations/liabilities does the City have? The bank? How will collection be made?


5. What options does the City have in scanners for use with the process in various volume locations? Is this equipment available through the contract: purchase or lease? List the equipment required.

6. The City currently uses Remit Plus to process water payments and to image the checks that come in to the City of Ventura as a form of payment. Teamed with the Canon Image Formula CR-190i II, the City is able to image the water payment stubs and payment checks that are submitted on a daily basis. Is this compatible with your service?

Stop Payments and Electronic Payables The City issues about 1,200 checks per month from its three accounts. The City places approximately three stop payments online each month and has the ability to view images of cleared checks online. 1. What are the time periods available for stop pays? What is the deadline for same day

action on stop pays? What are the time periods for extended stop pay periods? Is there a fee for renewals?

2. Are stop pays initiated and renewed/extended online? Is there any paper follow-up required? What information on current and expiring stop pays is available online?

3. Will the online system verify if the check was cleared before accepting the stop pay?

4. Does the bank have any ideas to reduce stop pays? Can positive pay files be used for stop pays?

5. What is the bank’s maximum character field size for check numbers? Will your bank test magnetic ink character recognition (MICR) encoding of new checks?

6. Describe the bank’s method for the placement of stop payment orders. Can the request be input online? If input online, is the confirmation immediate? How long do stop payment orders remain in effect?

7. How does the bank compensate the City for checks that are cashed: after a stop is placed, if the check was voided, or if stale dated, and how long does it take for the bank to reimburse the City?

8. Describe your electronic payables solution, all associated fees, controls, and security.

9. Do you offer tokens? If not, what kind of security check do you offer to assist in preventing fraudulent activities?


Payroll Payroll is paid biweekly and averages $3.7 million a month. The City uses direct deposit for payroll for 99% employees and checks for 1%. The City also intends to move toward more vendor payments by ACH.

1. When is daily check clearing information available online through intra-day reporting?

How long are transaction details maintained online?

2. The City requires that the bank shall cash free of charge all payroll checks for City employees regardless of the individual's account status with the bank. Confirm agreement with this condition.

3. Describe any payment consolidation services available. What data transfer options are available for payment consolidation systems?

Imaging of Incoming and Outgoing Checks

The City currently retrieves optical check images online. No physical checks are to be returned. In an effort to reduce paper handling and storage, the City is focused on imaging of documents as much as possible. The City currently does not receive monthly CD-ROMs, but would like to consider this option.

1. Describe the bank’s optical imaging process and list the items captured (checks,

statements, deposit slips, deposited items, etc.). Is there a fee for creation, use and retention of images? Describe. Are bank fees structured such that there are separate fees for creating, retaining and retrieving images?

2. What images are available online? When? Are all images downloadable? How long are images maintained online?

3. How long is archiving available?

4. Is a monthly CD-ROM provided? When? Can the City download all CD-ROM information without receiving a CD-ROM?

Wires and ACH

The City uses electronic funds transfers for both incoming receipts and outgoing payments through the ACH. The City receives all credit card settlements and state apportionments through ACH as well as a high percentage of payroll payments by ACH.

The City currently uses incoming and outgoing wire transfers for investment settlements, debt service payments, county apportionments and periodic miscellaneous payments. The City sends and receives approximately 20 wires per month. The City has the ability to initiate wires online, save recurring templates, and store future dated wires.


The City will require compensation for delays caused by the bank at that day’s Fed Funds rate at a minimum.

1. Describe the bank’s online wire transfer capabilities including the ability to create and

store repetitive wire templates and to create future-dated wires. What is the cut-off time for initiating wire transfers to ensure same-day execution? What safeguards and security measures does the bank have in place to protect the City, especially against unauthorized wires? Are there daily limits on wire transfers?

2. Describe the types of ACH files acceptable to the bank. What are your cut-off times for

delivery of the file? Does the bank have a file limitation for maximum dollar amounts or number of entries? Describe the acknowledgement the institution provides and timeline when a file transmission is received.

3. Describe the procedure for notifying the City when an outgoing ACH transmission fails. How soon will the notification occur? How soon is the City’s account made whole when a transmission fails?

4. Does the City have the ability to change, add or delete an item after transmitting the ACH file to the bank? If yes, describe the procedure and cutoff times.

5. Describe the bank’s security system in general and how it will guard against unauthorized ACH debits to the City’s accounts. If an unauthorized ACH debit posts to the City’s account, describe how the transaction would be resolved. We only allow certain accounts to take account debits; all others are blocked.

6. With regards to ACH and wire services, what are the bank’s contingency plans in the event of a system failure? Do you have a backup process if internet/transmission lines are unavailable?

7. What is the charge per ACH transfer to and from the bank accounts? Describe the transfer process.

8. Explain your suggestions for business resumption in the event that the City is unable to deliver a payroll ACH file to the bank in a timely manner. What could the bank do to assist in the event a file is sent past the cut-off date/time?

9. Can internal account transfers be processed totally online? Book debits/credits? Is there a fee for City internal transfers?

Full Account Reconcilement

The City would like to utilize full account reconcilement for the operating and payroll accounts.

1. Describe the bank’s full reconciliation service. What standard monthly reports are provided? What optional reports are offered? Provide an example of a standard statement and optional reports.


2. How soon after the end of the month can the City download the monthly statements?

What file formats are available?

3. Describe how the cleared check file is accessed by the City. What formats are available? Is .csv formatting available?

Positive Pay The proposal must provide a fully automated, web compatible transmission process for positive pay. The City issues checks twice weekly on its general operating account. Positive pay data is transmitted to the bank with each check run. Positive pay exceptions are reviewed daily by the City online. Manual check information must be able to be input online. The City is notified of exceptions by email to selected staff and the items are rejected by default if no decision is made within three days. The City uses basic positive pay service on the general operating account, worker’s compensation account, and the payroll account. The City receives approximately three exception items each month. 1. Describe the bank’s capabilities for positive pay and indicate what fields are currently

included. Does the bank offer payee validation? Describe the process. Provide the bank’s positive pay specifications.

2. Are all checks, including those received over-the-counter by the tellers, verified against

the positive pay file before processing? How often is teller information updated? If not verified, what are the process, liability, and security on OTC transactions?

3. How are exception items under positive pay reported to the City? Does the bank review exceptions errors for possible repair before creating a City exception item? Describe the process. Describe how the bank provides image viewing for exception items.

4. What is the procedure and timeline for paying or returning exception items? What is your default disposition if you do not receive a decision response by the deadline?

5. What is the bank’s procedure regarding checking to see if a check is fraudulent? How does the bank compensate for chasing fraudulent checks? How long does it take for the bank to reimburse the City?

Online Reporting

The City uses daily cash balance and transaction reporting information for all accounts. The City requires online access to real-time reporting including ledger balance and available balance with one-day float. Details of credits/debits posted are required for all accounts.

The City requires web-based, automated cash management services and daily balance real-time reporting with a minimum 180-day retention, for timely access to balance information and transactions. The City currently uses only prior day services, but is interested in current


day activity as well. Statements and account analyses are required in electronic form along with archiving of information.

1. Describe the bank’s online capabilities and security including the use of passwords, authentication, and/or encryption techniques used to protect online data. How and by whom is the administration of the security module established and maintained?

2. Describe the bank’s online information reporting system, including file export. Provide samples of the computer screens that show the information reports that the City can obtain from the system or provide a website and sign-on information for an online review of all the functions, if available.

3. At what time is prior day information available for access by City staff? Are intraday reports available online? How often is intraday information updated and when?

4. What are the hours of available technical support? How is support provided?

5. Describe the ability to search on historical transactions and reports and in what formats are they available?

6. Provide a report showing system down time for the past year. Include types of services that were unavailable and how it was communicated to your clients. Describe your backup procedures for times when the system in unavailable.

7. Do daily online reports include activity by account and location? Does the bank provide for location tracking on deposits? Are all deposits designated by location and tracked as such through the reporting?

Sweep Services When the interest rates increase, the City will evaluate the use of a sweep account into a money market mutual fund or an internal bank account. Every respondent should be able to provide a sweep mechanism though it may not be used initially. The City will utilize interest bearing or money market accounts dependent upon interest rate opportunities and will decide on the use of the account as interest rates and conditions vary. All decisions will be made by the City. (Proposals will be required to explain alternative account structures below.)

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. The City will not use the depository institution for brokerage services in order to assure ownership and complete separation on delivery versus payment delivery requirements.

1. Does the bank offer an overnight sweep service for collected balances with automatic fund transfer?

2. Describe in detail the investment options available under the sweep service, including


the current rate of return. Provide the Committee on Uniform Securities Identification Procedures (CUSIP) numbers and ticker symbols if applicable.

3. Is there a maximum amount you will accept in the sweep?

Account Structure The City is interested in assuring that all funds are earning at the best, then-current interest rates at all times. The ZBA account structure will be maintained. Because of the low rates the City does not currently use an automated, daily sweep but when rates rise (as they are expected to do during the contract period) a sweep mechanism should be available. The sweep should be to a SEC-registered money market mutual fund or a bank internal account alternative if applicable and competitive.

The money market fund would preferably be AAA-rated. The fund will be structured as a government or enhanced government (with CP) fund. If the bank has a valid alternative to a SEC money market fund which is in compliance with the City's Investment Policy, it may be presented.

A repurchase agreement and offshore accounts are not acceptable as sweep investment vehicles. In the responses to the questions below, the bank should clearly describe the bank's most cost-effective structure and methodology for both low and higher interest rates. Automated distribution of interest to the individual accounts on a sweep is preferred but not required and will be decided upon on the basis of cost.

• If a fee basis with a sweep is utilized for compensation purposes, all or designated accounts will be swept daily (EOD) by the bank to a zero balance (or rounded minimums) daily.

• If a compensating balance with a sweep is utilized for compensation purposes, all or designated accounts will be swept daily by the bank to the target compensating balance.

1. Describe the bank’s ability to provide the same ZBA structure and indicate whether the

individual accounts would be swept first to a master account or be swept directly from individual accounts (for interest proposal). Indicate your most cost beneficial structure.

2. Describe alternatives to a sweep to be used during this low interest rate environment before sweeps again provide a viable alternative. Is the bank offering an internal interest-bearing account for investment?

3. If money market accounts and interest-bearing accounts are available, are the rates indexed? If indexed list the basis for the index. (Historical rates are requested on Attachment B).

4. Will sweep activity, when used, be reported on a daily detail basis (each debit and credit) or summarized on a monthly basis in account reporting?


5. Can interest from sweeps be applied at the individual account level?

6. Provide the prospectus for any sweep fund alternatives being offered. An AAA-rated,

SEC registered fund is preferred for the sweep.

7. Is the sweep processed as an End of Day (EOD) transaction? If it is a next day sweep transaction, describe how funds are identified and collateralized overnight.

8. Will the bank assess a direct, hard dollar FDIC charge on the account analysis? At what rate is it currently charged?

9. Is the bank a member of the Federal Reserve? If not, what bank acts as its Fedwire correspondent?

10. Describe your analysis carry-over policy. (The City prefers a semi-annual carry-over.) Does the bank have any program to use excess earnings credits for additional or alternative services outside of banking services such as printing? Describe fully.

11. 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. Unanticipated or new services may be charged at not more than the then-published rates. Confirm agreement to this condition.

Business Continuity

1. Describe the bank’s disaster contingency plans, contacts and backup systems for continued City operations in the event of a system failure, natural disaster, and/or other emergencies. Is there a backup site? When was the institution’s disaster recovery plan last updated and tested?

2. Can the bank provide emergency cash at the City’s demand? And, if so, what are the limits?

3. Describe any other services that might help the City function with minimal interruption.

4. What support will the bank be able to offer the City in a disaster situation to maintain

stable banking functions? Focus on systems, telecommunications and power, operational facilities, and transportation.

Bank Compensation

The City requires a monthly account analysis statement with a summary page for all accounts. The City reserves the right to pay for banking services on either a fee and/or compensating basis. A decision on the methodology to be used will be made initially only after analysis of the proposals and on an on-going basis as interest rates change. A change of methodology will require a notification from the City no less than fifteen days before the first of the month in which the methodology changes.


If a fee basis is utilized, the bank may invoice the designated account each month. The City may or may not leave funds in the bank on this basis dependent upon the availability of a sweep mechanism and the interest rates being offered by the bank. All fees shall be fixed for the entire contract period as proposed on the Pricing Matrix. Only fees listed on Pricing Matrix will be accepted and paid throughout the contract period. Fees for services not anticipated by this RFP/Q will be charged at no more than the bank’s then-current fee schedule.

If a compensating balance basis is utilized without a sweep mechanism, the bank will be responsible for estimating and notifying the City of the compensating target balance using its published or designated Earnings Credit Rate (ECR). If a compensating balance basis is used with a sweep (when rates increase) the sweep will be established to meet the compensating balance needs. If a carry-over settlement is required it will be calculated on a semi-annual basis.

Each proposal must include a completed Pricing Matrix, listing all charges applicable to the services outlined in this proposal. The AFP number and basis of the charge (per item or per account/month) should be clearly noted for analysis purposes. If services or unbundled charges needed to provide this service are not currently listed on Pricing Matrix, add same by name and number, including applicable fees. Clearly stipulate how reporting, imaging, and account maintenance charges are to be charged. A complete account analysis will be required monthly regardless of the payment basis. 1. If collected balances are accepted as compensation for fees, provide the complete

formula for calculating the earnings credit. Is the bank’s earnings credit rate based on an index? List your actual earnings credit rate for each of the last 12 months. Can excess earnings credit be carried over and if so, what is the maximum amount allowed for carryover?

2. Are institution service codes and Association for Financial Professionals service codes

included on the account analysis statement? Can the statement be delivered electronically each month? Can the statement be accessed online? What formats are available? How quickly is the statement available? When is the analysis available each month? Can the information be exported and what format would be used (Excel, pdf, etc.)? Are paper statements also sent to the City, if provided online? Is there a fee for paper statements?

3. Can the bank invoice the City for analysis statement fees? Can the bank debit the City’s account for analysis statement fees?

4. Provide a sample of the bank’s account analysis statement as an exhibit.

5. Will the financial institution guarantee the prices in this proposal for the next five years?


Monthly Statements The bank must provide monthly account statements on all accounts. All accounts must be on a calendar monthly cycle and statements received within three business days. Timeliness of statements is critical.

1. Provide a sample monthly statement.

2. When and how are monthly statements available each month: online and/or paper form?

How long is it available online? Is it downloadable? Can the statements be exported and in what format?

3. Are paper statements also sent to the City if available online? Is there a fee for paper statements?

Account Executive

To insure smooth contract implementation and continuation of service levels, a specific account executive and a back-up for banking and automated services must be assigned to the City account to coordinate services and expedite the solution of any problem encountered. The account executive should be available to meet with City staff on banking matters as needed and at a minimum semi-annually. 1. Provide the outline for the client support structure to be provided the City by the bank.

Provide the name, title and location of the proposed account executives. What level of support is provided directly by the local representative?

2. How are technical or operational problems, questions, or changes to be handled?

Conversion Process and Training In the event that your bank is selected, key bank staff assigned to the City will be required to participate in an on-site review of the City and its existing banking practices. The bank will be expected to make a written report to the City of its findings and recommendations and develop a conversion plan based on the review. The timeline must reflect the number of calendar days required to put the services in place or the end date of when such services will be in place and available to the City. Default in promised delivery of services, without acceptable reasons, or failure to meet the terms or conditions of the depository contract without remedy, shall result in the City having the right to terminate the contract, but the exercising of such right to terminate the contract does not limit any other remedies the City may have for damages or other relief under law. The contract period is anticipated to commence August 1, 2018 to cover implementation, with full banking activity commencing by/on January 1, 2019. Collateral should be in place and documentation received three days before any funds are transferred to the bank.

1. How long does a typical conversion take? Provide a sample conversion


timetable/schedule. Include each activity required, defined by its responsible party and assigned responsibilities. Denote any limitations or potential delay points.

2. Will training be on-site, online, or will our staff need to attend training at your facilities?

If off-site training is required, where are the training facilities located?

3. Will the conversion be at no cost to the City? Will the bank provide a conversion allowance to the City and if so, how much of an allowance?

4. Will the bank take the lead and responsibility for conversion progress, with weekly updates of progress to staff?

5. Do you provide written user manuals for all services? How often are manuals updated? Are user manuals also available online?

6. Do you provide on-going training after implementation? Is the training on-site, off-site, or online?

Customer Service Service will be a primary focus of the City on a continuing basis. Effective and timely communication is vital to City operations. Describe the bank’s philosophy and approach to satisfying this need through the following responses.

1. What is distinctive about the bank’s approach to customer service? How does the bank

anticipate satisfying the City’s need for superior customer service? 2. How many service individuals does the bank have in the local bank? How will the bank

provide the City with relationship support for its services?

3. How are communications coordinated between local bank representatives and holding company departments when assisting with services or implementation of new products?

4. Is there a formal process for escalation of problem issues? How will service and overall contract performance be monitored?

5. Are there any new services planned which may impact the City? When are these planned to be available?

6. Is there any bank availability policy which differs from the availability schedule? If so, define specifically and define any elements which may delay City funds.

7. Is the bank offering any transition or retention incentives? Describe fully and quantify completely.

8. The City requires the right to use a third-party auditor to review the City’s accounts, collateral, transactions, and bank records at any reasonable time. Confirm agreement with this condition.


9. Does the bank have a formal process or plan for reviewing and analyzing services with

the City on a regular basis? Describe. 10. What is the notification timeline when the banking website is having upgrades, etc.? 11. What is the institution’s promised response timeframe to Voicemails? What will the

institution do in the event the promised timeframe is not met? Please address monetary and any other methods of compensation. Indicate how the City will receive the compensation offered.

12. What is the institution’s promised response timeframe to Emails? What will the institution

do in the event the promised timeframe is not met? Please address monetary and any other methods of compensation. Indicate how the City will receive the compensation offered. Please note: ‘Out of Office’ message do not count as responses. There must be a reply from someone within the organization to count as a response. If an ‘Out of Office’ message is received and includes instructions for another individual to contact including their contact information, the City will reach out to that person. Otherwise, the response time remains when the original email was sent.

13. What is the maximum timeframe a call will be on hold before it is answered? What will the


14. What days and hours are those who will be serving as contacts for the City be available

by phone and email? Times shall be in Pacific time. 15. If the institution’s proposal is accepted, they shall provide a list of representatives who

are to serve as the City’s points of contact for the services provided, along with their supervisor. The list shall include phone numbers, emails, and job titles. This list shall be updated within a month of staff changes, at least annually. If the contact information is a general phone number or email, include an alternative. All contact information provided cannot be general; at least one person’s individual contact information must be provided.

16. Provide a customer of similar size and activity who could act as a reference for the

timeframes promised within this proposal. 17. It is the goal of the City of Ventura to have a smooth, efficient and effective transition. In

the event there is a delay caused by the institution for any reason and the agreed upon implementation schedule is not kept, it will pose a hardship to the City. What will the institution do in the event the promised schedule is not met? Please address monetary and any other methods of compensation. Indicate how the City will receive the compensation offered.


Optional Services

The City continues to investigate and evaluate new services for inclusion under its banking services contract. These services in this section 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 banking contract. Availability of the service and its cost will be a secondary consideration in the evaluation of the primary proposal since the services are not required. The City reserves the right to accept optional services offered. If an optional service is initiated later in the contract period, the services and charges stipulated in the bank’s proposal in response to this RFP/Q will be applied. If the bank currently does not offer the service identified, but is planning to make it available during the contract period, the bank should so stipulate in its proposal and should state the anticipated date of activation. Stored Value Cards The City does not currently utilize stored value cards (as pay cards and potentially for other uses) but may consider their use. Users would have to have the ability to use the cards at point-of-sale as a debit card and/or for cash withdrawals at financial institutions and ATMs. The purchasing ability of the cards must be limited to the stored value of the card. The City must provide an opportunity for card holders to access the account information either through ATM or counter presentation without incurring a fee at the bank’s own facilities. The City will have 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

• Administration of accounts: maintenance of accounts, proposal of funds, authorization of transactions, related tracking

• Customer service functions

1. Does the bank currently provide stored value cards or a comparable service? How long has this process been available?

2. How many customers use the service? Provide three public references.

3. Describe the program and fee structure.


Company Banking The City is interested in giving its employees the opportunity for enhanced banking services.

1. Does the bank have a banking services program available for City employees?

2. List services provided under this program with applicable discounts or fees to the City or

employee.

3. Does the availability of the program require a direct deposit account?


Service Group 2 - Merchant Services

The City is requesting proposals from qualified financial institutions to provide merchant services. The City accepts Visa, MasterCard, and Discover payments by phone, in person at five locations, through an interactive voice response system (IVR), and at parking meters located throughout the Downtown area. The IVR only accepts utility (water/wastewater) payments. The City processes Ventura Water online credit card payments through a third-party. The City processes Business Tax online credit card and ACH payments through a third-party. Debit cards are processed as credit cards. The City does not have a convenience fee. All settlements must be on the gross amount; netting of fees is not acceptable. Settlements are required to by separated by merchant number.

The City currently has twelve merchant numbers: two for Business Tax, two for Parks and Recreation, and one for each of the following: IVR, aquatics services, building and safety, fire prevention, general parking, parking at the Beachfront Parking Structure, planning services, and for the Police Department. The City adds and deletes merchant numbers as needed.

Cumulatively, the City expects to process approximately 300,000 transactions a year with an estimated $3.4M in sales. The City estimates fewer than ten chargebacks a year, representing less than 0.01% of sales.

Credit Cards:

Division Estimated

Annual Sales

Aquatics $10,000 Building and Safety 1,250,000 Business Tax 430,000 Fire Prevention 20,000 Downtown Parking Meters 520,000

Planning and Development 110,000 Police Department 105,000 Utility 870,000 Parks and Recreation 120,000

Total $3,435,000

The City currently owns First Data FD100Ti, Hypercom T4205, and Hypercom T7 processors.

It also owns First Data Rapid Connect RCNCT – Loco Mobi – Mojo Buypass – Buypass,

4006.

All fees shall be fixed for the entire contract period as proposed on the Pricing Matrix. Only fees listed on Pricing Matrix will be accepted and paid throughout the contract period. Fees for services not anticipated by this RFP/Q will be charged at no more than the institution’s then-current fee schedule.


Each proposal must include a completed Pricing Matrix, listing all charges applicable to the services outlined in this Service Group. The AFP number and basis of the charge (per item or per account/month) should be clearly noted for analysis purposes. If services or unbundled charges needed to provide this service are not currently listed on Pricing Matrix, add same by name and number, including applicable fees. Clearly stipulate how reporting, imaging, and account maintenance charges are to be charged. A complete account analysis will be required monthly regardless of the payment basis. Qualifications

Financial institution must be financially stable and Payment Card Industry (PCI) Data Security Standard compliant.

1. Provide key measures for the financial institution’s strength, including ratings from nationally recognized ratings services. Include one copy of the institution’s most recent audited financial statement.

2. Provide proof of compliance with PCI-DSS.

3. Settlements are required to be made on the gross amount and separated by merchant number.

General Information 1. Provide the financial institution’s headquarters and indicate the location of the office

servicing California accounts.

2. Detail the institution’s annual credit card processing volume for the last three years and the relative ranking among other processors.

3. Does the financial institution use a third party for any segment of customer service or card processing services? If yes, please explain.

4. How do the financial institution and staff stay current and competitive in merchant services?

5. What new services or features has the financial institution implemented in the past two years?

6. Describe the financial institution’s disaster contingency plans and backup systems for continued City operations in the event of a system failure, natural disaster, and/or other emergency. Is there a backup site? When was the financial institution’s disaster recovery plan last updated and tested?


Card Acceptance

1. Describe the steps involved for acceptance of credit cards. 2. What are the hardware and software requirements? Is replacement or reprogramming

necessary for the City’s existing equipment? Detail and discuss costs.

3. What authorization gateway options do you support? Which do you recommend? List and describe alternatives.

Settlement Processing

1. Describe the settlement process for the City with terminal based and virtual systems.

2. Discuss clearing time between credit card settlement and deposit to the City’s operating account. How are funds transferred?

3. Describe the platforms that the financial institution uses. Are the platforms proprietary or are they commonly used by other financial institutions?

4. Will Saturday and Sunday activity be combined into Monday activity? The City prefers three separate transactions.

5. Describe how the financial institution handles retrieval and charge-back requests. What are the retrieval compliance timeframes? How will the City be informed a charge-back has been posted? Do you provide email notification?

Online Reporting

The City uses daily cash balance and transaction reporting information for all accounts. The City requires online access to real-time reporting with a minimum 180-day retention, for timely access to transactions.

1. Describe the institution’s online capabilities and security including the use of passwords, authentication, and/or encryption techniques used to protect online data. How and by whom is the administration of the security module established and maintained?

2. Describe the institution’s online information reporting system, including file export. Provide samples of the computer screens that show the information reports that the City can obtain from the system or provide a website and sign-on information for an online review of all the functions, if available.





6. Do daily online reports include activity by account and location? Are all batches designated by Merchant ID and tracked as such throughout the reporting?

Implementation Process 1. Outline the schedule for implementation to include all merchant accounts and any

necessary equipment changes.

2. Describe new customer training and account set-up.

Security

1. How are PCI compliance requirements monitored and incorporated into the institution’s processes?

2. Does the financial institution monitor PCI compliance of its merchants?

3. How will PCI issues be communicated to the City?

4. What training will be made available to the City?

5. Describe the security measures used to prevent unauthorized user access to either the system or the data?

Payment for Services

1. Can the financial institution invoice the City for merchant services? Can the invoice be delivered electronically? Can the invoice be accessed online? How quickly is the invoice available? How often will the City be invoiced? What formats are available? Can the information be exported and what format would be used (Excel, pdf, etc.)? Are paper statements also sent to the City, if provided online? Is there a fee for paper statements? Are institution service codes and Association for Financial Professionals service codes included on the account analysis statement?

2. Can the financial institution debit City’s operating account for merchant services?


4. Provide a copy of a sample invoice as an exhibit.


Customer Service Service will be a primary focus of the City on a continuing basis. Effective and timely communication is vital to City operations. Describe the institution’s philosophy and approach to satisfying this need through the following responses.

1. What is distinctive about the institution’s approach to customer service? How does the

institution anticipate satisfying the City’s need for superior customer service? 2. Is there a location within Ventura city limits?

3. How are communications coordinated between local representatives and holding

company departments when assisting with services or implementation of new products?



6. Is there any funds availability policy which differs from the availability schedule? If so, define specifically and define any elements which may delay City funds.

7. Is the institution offering any transition or retention incentives? Describe fully and quantify completely.


9. Does the institution have a formal process or plan for reviewing and analyzing services with the City on a regular basis? Describe.

10. What is the notification timeline when the banking website is having upgrades, etc.? 11. What is the institution’s promised response timeframe to Voicemails? What will the













Additional Information and Questions

1. What differentiates your product and service from other financial institutions? Why should

the City select your financial institution? 2. Are any changes to the existing processes recommended to reduce fees and/or improve

productivity? 3. Describe the institution’s ability to implement convenience fee programs.


Service Group 3 - Safekeeping/Custody Services

The City has a $200 million portfolio with approximately $150 million in 200 negotiable security holdings. Assets are fixed-income investments, primarily U.S. treasuries, U.S. agencies, and municipal bonds. Over time, the City may purchase other investments authorized by California Government Code 53601. On average, the City settles three to six investments per month purchased from one of six approved brokers and has two to five maturities per month.


Each proposal must include a completed Pricing Matrix, listing all charges applicable to the services outlined in this Service Group. The AFP number and basis of the charge (per item or per account/month) should be clearly noted for analysis purposes. If services or unbundled charges needed to provide this service are not currently listed on Pricing Matrix, add same by name and number, including applicable fees. Clearly stipulate how reporting, imaging, and account maintenance charges are to be charged. A complete account analysis will be required monthly regardless of the payment basis. Qualifications To be considered for selection, proposing banks must meet certain minimum qualifications. Financial institutions must be a qualified institution pursuant to California Government Code Section 53608 and have provided safekeeping services for a minimum of ten years. 1. What is the financial institution’s overall rating with the Community Reinvestment Act

(CRA)? Provide a copy of the most recent rating.

2. Provide key measures of the bank’s financial strength, including ratings from nationally recognized rating service(s) and bank rating service(s). Include one copy of the bank’s most recent audited financial statement.

Required Services The City uses a custodian bank as safekeeping agent, however, securities may be held by the same institution that sold the security if they are kept in a separate area of the institution, such as trust department, and the security is in the City of Ventura’s name. The bank must be able to export all investment transactions from Clearwater Analytics into their software. The City requires its custodian to be thoroughly familiar with the public sector and the investment of public funds. The custodian settles security trades per instructions received from the Finance Director. The custodian collects coupons and income on securities and electronically transfers maturities, income, and interest to the City’s operating account on a


daily basis. The custodian bank has no responsibility for investing or reinvesting these monies. All negotiable security purchases settle on a delivery versus payment (DVP) basis and ownership documented by original confirmations/receipts provided within one business day of the transaction. Funds for investments will be drawn from a designated City DDA account. All coupon payments and maturities must receive automated same-day collected credit on the City designated account without requiring any additional City action. If the bank is not a member of the Federal Reserve and uses a correspondent bank for safekeeping of City securities, the transactions will be handled through the depository bank’s systems and shall not require additional interaction by the City. No delay in transactions, wires, or flow of funds will be acceptable under a correspondent relationship. 1. Describe the bank’s investment safekeeping operations. Is this function performed by a

separate trust entity within the bank? Describe or give an example of the standard reporting package. Are reports available online?

2. What information does the bank require from the City when a purchase is made? How does this information need to be transmitted to the bank? Provide a timetable for notification of purchases.

3. What time are delivery instructions required? Is there a fee charged for late instructions?

4. How does the bank confirm settlement of purchases, interest payments and maturities for

the day? Is online reporting of portfolio activity and holdings available on a real-time or next day basis?

5. Describe the policies regarding a failed settlement.

6. What is the current balance of investments held in safekeeping by the custody division?

7. Provide an implementation schedule for the conversion from the City’s existing custodian.

8. Does your bank mark the investments to market on a monthly basis?

9. How soon after month end are monthly statements available? Are statements available online?

10. What type of online reporting system does the bank offer? What information is available? Is information available on a real-time basis? What formats are available?

11. Are safekeeping fees charged through the account analysis or hard charged?

12. Are services bundles under safekeeping by CUSIP or paramount or are charges made for individual clearing, safekeeping and income distribution?





institution anticipate satisfying the City’s need for superior customer service? 2. Is there a location within Ventura city limits?

3. How are communications coordinated between local representatives and holding

company departments when assisting with services or implementation of new products?




















Online Reporting







Disaster Contingency

1. Describe the bank’s disaster contingency plans, contacts and backup systems for continued City operations in the event of a system failure, natural disaster, and/or other emergencies. Is there a backup site?

2. When was the financial institution’s disaster recovery plan last updated and tested?


Service Group 4 - Public Funds Interest-bearing Accounts

The City invests approximately $15 million in collateralized certificates of deposit and interest-bearing accounts. The City uses a list of three to six approved financial institutions to obtain bids on certificates of deposit in the one to three-year range and/or liquid savings accounts. The City is looking to expand this list and may select one or several financial institutions to be added to this list. The City Treasurer is a signatory on all interest-bearing accounts along with his designee(s), usually an Assistant Finance Director(s).


Each proposal must include a completed Pricing Matrix, listing all charges applicable to the services outlined in this Service Group. The AFP number and basis of the charge (per item or per account/month) should be clearly noted for analysis purposes. If services or unbundled charges needed to provide this service are not currently listed on Pricing Matrix, add same by name and number, including applicable fees. Clearly stipulate how reporting, imaging, and account maintenance charges are to be charged. A complete account analysis will be required monthly regardless of the payment basis.

Qualifications

To be considered for selection, proposing banks must meet certain minimum qualifications. Financial institutions must be a state or national bank as defined in California Government Code, insured by the Federal Deposit Insurance Corporation (FDIC), a qualified depository of public funds as defined in the California Government Code, in compliance with the California Government Code in regards to serving the credit need of California communities and maintain a satisfactory rating from a national bank rating service.

1. What is the bank’s overall rating with the Community Reinvestment Act (CRA)? Provide

a copy of the most recent rating.

2. Provide key measures of the bank’s financial strength, including ratings from nationally recognized rating service(s) and bank rating service(s). Include one copy of the bank’s most recent audited financial statement.

3. Is the bank a member of the Federal Reserve System?

4. Does the bank have a dedicated government services unit?

5. What is your institution’s current level of public funds deposits and related collateral

market value? Provide a copy of a recent collateral trust statement.


Procedures

The City deposits to and withdraws from the accounts by wire transfer. All wires to and from the accounts will be made to and from the City’s general operating account. The Treasurer will authorize the bank to release information to City staff responsible for monitoring the accounts. Interest may be paid by ACH or by check

1. What public funds certificate of deposit terms are offered by the bank? What money

market or savings accounts are offered by the bank?

2. Will your institution accept wires to open and/or deposit to collateralized interest bearing accounts and certificates of deposit? Are funds wired directly to the account or to a general ledger account?

3. Will you release account information to staff other than the account signers as authorized by the City Treasurer?

4. What are the interest payment options for savings and money market accounts? What are interest payment options for certificates of deposit? Include frequency, interest basis and payment method.

5. What type of documentation is required to open the first account? What is required to open additional accounts? Describe what type of personal information is required from City staff when they are selected as authorized signatories in light of the Patriot Act, if any.

6. What type of documentation is required to close a certificate of deposit or withdraw from a savings/money market account?




institution anticipate satisfying the City’s need for superior customer service?

2. Is there a location within Ventura city limits?

3. How are communications coordinated between local representatives and holding company departments when assisting with services or implementation of new products?



5. Are there any new services planned which may impact the City? When are these planned

to be available?















16. Provide a customer of similar size and activity who could act as a reference for the timeframes promised within this proposal.

17. It is the goal of the City of Ventura to have a smooth, efficient and effective transition. In


Online Reporting










Service Group 5 - Lockbox Services

The City uses retail lockbox services to process water/wastewater payments made by mail. The City updates its water/wastewater accounts with a daily file received from the current lockbox vendor. Exceptions, dependent on the type of exception, are either handled online or sent back to the City. The City receives approximately 7,000 checks per month through lockbox which is expected to double in two to three years.


Each proposal must include a completed Pricing Matrix, listing all charges applicable to the services outlined in this Service Group. The AFP number and basis of the charge (per item or per account/month) should be clearly noted for analysis purposes. If services or unbundled charges needed to provide this service are not currently listed on Pricing Matrix, add same by name and number, including applicable fees. Clearly stipulate how reporting, imaging, and account maintenance charges are to be charged. A copy of the District’s sample customer water bill/ remittance document is included as Attachment C. Required Services

The City requires the lockbox provider to process, including imaging, checks and remittance documents received. They must provide online access to images of processed items and remittance documents within 24 hours. Online reporting and downloading of transaction detail and summary including account numbers and payment amounts must be available. The lockbox provider must provide exception handling (research and analysis) daily to only provide true exceptions to the City for further processing. Online exception item review and correction is required to be available. The City requires a daily ICL (image cash letter) to the City’s bank with day’s payment data no later than 3:30 p.m.

1. Price and report the total fees which would apply to the following sample monthly

volume outlined below i.e., the total cost of the deposit handling would be: $ ________. (This does not reflect a normal City file and is used for cost comparison purposes only.) SAMPLE MONTHLY VOLUME:

Transaction Capture Fee Item Count Matched Items 7,500 Multiple Items (>Check/Stub) 1,300 Check Only 600 Check & List (# Accounts) 200 Exception – Unmatched Items 5 Electronic Check Deposit 5


Fax/Copy/Email 5 Safekeeping/secure destruction 17,000 Transportation Courier Overnight delivery of exceptions

2. Describe the institution’s retail lockbox services and reports provided.

3. Provide the location where lockbox payments are mailed and processed. Provide a schedule for mail pickups form the P.O. Box.

4. What are the lockbox processing deadlines? What is the schedule of availability for lockbox deposits?

5. At what time of the day is the information reported? Does the institution provide notification when the file is available?

6. Describe the lockbox file format and its compatibility with the City’s Enquesta system.

7. How are exception items handled? Can they be handled online? Please describe the process.

8. Provide the coupon and envelope specifications.

9. Are institution service codes and Association for Financial Professionals service codes included on the account analysis statement? Can the statement be delivered electronically each month? Can the statement be accessed online? What formats are available? How quickly is the statement available? When is the analysis available each month? Can the information be exported and what format would be used (Excel, pdf, etc.)? Are paper statements also sent to the City, if provided online? Is there a fee for paper statements?

10. Provide a sample of the account analysis statement as an exhibit.

11. Will the financial institution guarantee the prices in this proposal for the next five years? Customer Service Service will be a primary focus of the City on a continuing basis. Effective and timely communication is vital to City operations. Describe the institution’s philosophy and approach to satisfying this need through the following responses.


institution anticipate satisfying the City’s need for superior customer service?

2. Is there a location within Ventura city limits?


3. How are communications coordinated between local representatives and holding company departments when assisting with services or implementation of new products?















are to serve as the City’s points of contact for the services provided, along with their


supervisor. The list shall include phone numbers, emails, and job titles. This list shall be updated within a month of staff changes, at least annually. If the contact information is a general phone number or email, include an alternative. All contact information provided cannot be general; at least one person’s individual contact information must be provided.




Online Reporting










Sample Coupon for Lockbox Services

Sample Coupon for Lockbox Services

Water & Wastewater Bill Account No. 39823300

Cycle No. 8 Bill Date: 02/08/2018

336 Sanjon Road • Ventura, CA 93001 For account information call (805) 667-6500

Reading Period Covers: 11/27/2017 To: 01/24/2018 Customer Name

Customer Mailing Address Meter No. Meter Size Prior Read Current Read HCF Units VENTURA, CA 93001

53331 3/4" 3929 3952 23*

*HCF= Hundred Cubic Feet One HCF= 748 Gallons of Water 296.64 Gallons Per Day (this period)

35

30

25

20

15

10

5

0 FEB APR JUN AUG OCT DEC FEB

Previous Activity

Wastewater Charge Estuary Protection Total Shortage Rate Charge

Total Amount Due

$154.58

$15.46 $286.20

$286.20

Pay by 02/27/2018 to avoid a 10% late fee

Please detach and return this bottom portion with your payment.

336 Sanjon Road Ventura, CA 93001

VE50207A AUTO SCH 5-DIGIT 93001

7000000658 00.0002.0280 616/1

For account information call (805) 667-6500

Due Date 02/27/2018

Total Amount Due

Amount Paid

$286.20

Make checks payable to: Ventura Water Please ensure the address below is visible through the window of the return envelope.

ANEMGOB BLDIBLCICK AJAJNIGAF J MDCBLK ANIKLAFHIMAHMOOMKK ABBCEFGK AKLEIFKCK DDLDDDDLDLDLDDDDLL

Customer Name Customer Mailing Address VENTURA CA 93001

VENTURA WATER PO BOX 612770 SAN JOSE, CA 95161-2770

Last Bill/Previous Balance: $286.20

Payments Received, Total: -$314.82 Adjustment: $28.62

Current Charges

Service Charge $33.69

Water Consumption Charges Tier 1 Rate 12 @ 2.770 $33.24

Tier 2 Rate 8 @ 3.750 $30.00

Tier 3 Rate 3 @ 6.410 $19.23


BANKING SERVICES Section B INSTRUCTION TO PROPOSERS

PROPOSAL REQUIREMENTS

Qualifications and Submission Instructions By submitting a proposal in response to this RFP/Q, depositories will be deemed to agree to the City of San Buenaventura mandatory Professional Services Agreement (“PSA”), Standard Provisions for Standard Contracts (“General Provisions”), and the service provisions contained herein. This RFP/Q and the proposal submitted will be incorporated into the PSA and form the basis of the bank depository services contract. Each proposal must contain the following: A. Table of Contents

Outline in sequential order the major areas of the proposal.

B. Introduction and Cover Letter

Provide a cover letter describing your interest in this RFP/Q. The accompanying letter must be: (a) signed by an individual authorized to bind the institution and negotiate conditions of the contract, (b) state that the proposal is valid for 180 days from the submission date, and (c) give the name, address, phone number, and email address of the contact person for the proposal. The cover letter may not exceed one page in length. C. Scope of Services

Proposer must respond to all questions in the Scope of Services and provide an explanation of how Proposer will perform the work. Proposer must describe in detail how the requirements of this RFP/Q will be met, and may provide additional related information with the proposal. The proposal should be presented in a format and in the same order as the sections outlined in the Scope of Services. Responses to each section and subsection should be labeled to indicate which item is being addressed. Proposal should be straightforward, concise, and provide “layman” explanations of technical terms that are used. Emphasis should be concentrated on conforming to the RFP/Q instructions and responding to the RFP/Q requirements.

To be considered, the proposal must include a response to each question in this

section and all its associated fees must be detailed on Attachment A. Add any level of detail as necessary for complete disclosure.


D. Required Services

It is the City’s intent that the contract negotiated between the City and the institution(s) selected through this process will encompass all the services and conditions required here. Additional services offered by the institution(s) may be included in an appropriate section or separately. In addition, Section I requires supplemental information on “Optional Services” that the City does not require, but may review for potential use during the contract period.

The Required Services are minimum requirements, and any respondent refusing or failing to provide such minimal services will not be considered for selection. If a complete response cannot be provided without referencing supporting documentation, you must provide such documentation with the proposal indicating where the supplemental information can be found. Proposals, which appear unrealistic in the terms of technical commitments, lack of technical competence, or are indicative of failure to comprehend the complexity and risk of this RFP/Q, may be rejected.

E. Proposer’s Background

Each Proposer shall be skilled and regularly engaged in the general class or type of work called for in the section of this RFP/Q they are submitting a proposal for. The Proposer’s experience shall be set forth and submitted, as follows:

1. Company ownership: If incorporated, the state in which the company is incorporated and

the date of incorporation.

2. Point of contact: Name, address, email address, and telephone number of the Proposer’s point of contact for this project.

3. Key Personnel: Provide an organization chart and list of key personnel dedicated to the relationship, including name, position and location. Provide a description of their experience and qualifications.

4. Experience: Describe the financial institution’s experience in providing the requested services to the public sector including length of time.

F. Negative History

Proposer must include in his/her proposal a complete disclosure of any alleged significant prior or ongoing contract failures, any civil or criminal litigation, or investigation pending which involves the Proposer or in which the Proposer has been judged guilty or liable within the last 5 years.

If there is no information to disclose then, Proposer must affirmatively state there is no negative history.


Failure to comply with the terms of this provision may disqualify any proposal. The City reserves the right to reject any proposal based upon the Proposer’s prior history with the City or with any other party, which documents, without limitation, unsatisfactory performance, adversarial or contentious demeanor, significant failures to meet contract milestones or other contractual failures.

G. Client References

Proposer shall provide a minimum of three references from California public sector entities for which the proposer has provided similar services within the last three years. Information provided shall include:

1. Client name, contact, address, telephone number, and email address. 2. Type of service provided to client. 3. Start and end dates of service. 4. Staff assigned to that project.

H. Compensation

This section should include the cost for requested products and services outlined in the Scope of Service for the specific Service Group(s) proposals are submitted for:

Service Group 1 - General Banking Services: Pricing must specifically itemize fees for service utilizing the Pricing Matrix.

Service Group 2 - Merchant Services: Provide Interchange and Assessment plus Pass Through pricing with breakdown of all fees charged by Proposer, including, but not limited to, discount rate, conversion costs, charge-back, authorizations, statements, early termination, and PCI compliance. The City recognizes that proposers do not control interchange and assessment pricing. Proposers should quote only those prices they control and confirm that it will pass assessments through to the City at true cost. Service Group 3 - Safekeeping/Custody Services: Provide a detailed fee structure including all charges. Service Group 4 - Public Funds Interest-bearing Accounts: Provide a list of fees, if any, associated with the deposit of funds in collateralized interest-bearing accounts. Service Group 5 – Lockbox Services: Provide a list of fees associated with lockbox services.

I. Proposal Exceptions

Provide any exceptions or requested changes that the Proposer has to the City’s RFP/Q conditions, requirements, and sample contract. If there are no exceptions noted, it is assumed the Proposer will accept all conditions and requirements identified.


J. Depository Agreement and Service Agreements

Provide a copy of all depository and service agreements which will be required to be executed under the contract for services rendered (including collateral agreements). Any changes required on the agreements will be discussed and agreed upon before award of the contract is made by the City.

K. Any other information which would assist City in making this contract award decision.

Information may include any information that the bank believes appropriate such as the bank’s philosophy regarding its relationship with governmental accounts and/or the bank’s involvement in the local community

L. Documents to Be Returned with Proposal

Failure to completely execute and submit the required documents before the Submittal Deadline may render a proposal non-responsive. In addition to documents previously indicated as required, if bank agreements are subject to online information or online information is incorporated into a contract, the institution must inform the City at the time of proposal submission. Any terms/conditions will be subject to the primary agreement and will not be modified during the Initial Term. Terms/conditions may be modified at the outset of an extended term with 60 days prior written notice.

M. Other

1. Any successful institutions will notify the City in writing within 10 days of any changes in

Federal or State regulations or laws that would thereafter affect the depository agreement throughout the contract period.

2. The records relating to the City's accounts shall be open to review by either the City or its independent auditors during normal business hours.

3. The City reserves the right to pay for depository services by target balances or by fees.

4. Any successful institutions will provide audited annual financial statements to the City for the duration of the contract.

5. Any successful institutions will notify the City with any change in credit ratings or status within a reasonable commercial period.

6. All exceptions must be detailed within the proposal submitted. No exceptions will be considered/allowed after proposal submission.

7. Any documents, conditions or contracts the City would be subject to and/or required to sign must be provided at proposal submission.


8. This RFP/Q and the proposal submitted will be incorporated into and form the basis of the contract(s), and be considered the primary agreement. Fees will be set for the entire contract period as proposed in the RFP/Q Response.

9. Any and all notices must be sent by mail to the Treasury Division of the City of Ventura.


BANKING SERVICES Section C PROPOSAL REVIEW PROCESS

PROPOSAL REVIEW AND AWARD SCHEDULE

The following is an outline of the anticipated schedule for proposal review and contract award:

Issue RFP/Q Tuesday, March 13, 2018 Written questions due from Proposers Tuesday, April 3, 2018 Distribution of answers to questions Tuesday, April 17, 2018 Proposals submittal deadline Tuesday, April 24, 2018 Complete proposal evaluation Friday, May 18, 2018 Conduct finalist interviews Tuesday, May 29 through

Friday, June 1, 2018 Contract negotiations complete June 29, 2018 City Council meeting/Award Contract July (Note: City Council is dark during the month of August)

Proposal Opening/Rejection/Waiver All proposals, irrespective of irregularities or informalities, will be opened at the time stipulated in the RFP/Q document. This is not a public opening. A tally of the names will be performed and may be released upon request. No other information will be released.

The City of Ventura reserves the right to postpone the submittal deadline and opening of proposals any time before the date and time announced in the RFP/Q or subsequent Addenda.

City also reserves the right to waive non-substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations.

The City reserves the right to reject the proposal of any proposer who previously failed to perform adequately for the City or any other governmental agency. The City expressly reserves the right to reject the proposal of any proposer who is in default on the payment of taxes, licenses or other monies due the City of Ventura. City Rights The City reserves the right to:

• Waive any defect, irregularity or informality in the proposal or proposal procedures;

• Reject any and all proposals;

• Accept any proposal or portion thereof most advantageous to City;


• Request additional information or require a meeting with proposer’s representatives for clarification;

• Cancel, revise, and/or reissue this request for proposal or any portions thereof,

• Negotiate any conditions;

• Retain all other provisions even if any provision of the proposal is deemed invalid;

• Modify deadlines; and

• Select any proposal deemed to be in its best interest as determined by the City.


BANKING SERVICES Section D PROPOSAL EVALUATION CRITERIA AND AWARD OF CONTRACT

Proposals will be evaluated by a review committee of City staff using a two-stage selection process described below. The Committee will evaluate all proposals received in accordance with the Evaluation Criteria. The City reserves the right to establish weight factors that will be applied to the criteria depending upon order of importance. The criteria, however, are not listed in any order of preference. Weight factors and evaluation scores will not be released. The City is not obligated to accept the lowest proposal, but will make an award in the best interests of the City after all factors have been evaluated. Phase 1 – Written Proposal Review/Finalist Candidates Selection. The City reserves the right to further negotiate the proposed work scope and/or method and amount of compensation. A group of finalist candidates may be selected for follow-up interviews and presentations. The Evaluation Criteria are as follows:

a. RFP Completeness and Quality: Completeness of the proposal. Requirements, conditions and instructions are met as set forth in the RFP for each Service Group.

b. Ability to Provide Required Services: Understanding the service needs and requirements of the City as set forth in the Scope of Service and the ability to provide these services in an efficient and effective manner. Evaluation also includes on-going support structure.

c. Proposers Experience and Financial Strength: Proposer’s experience, including the Proposer’s stability, resources, qualifications, and relevant experience and/or record of past performance in implementing and delivering such services to local governments with similar operations located within the State of California.

d. Technology: Quality of Proposer’s technology solutions for processing and reporting, including ease of navigation, seamless integration of multiple systems interfaces, timeliness and system stability.

e. Proposed Fees for Services: Proposed fees, which in the judgment of the City, which will provide the most comprehensive service at the most reasonable cost.

f. Conversion Plan: The thoroughness of the conversion plan to ensure a smooth and timely transition.


g. Exceptions: The materiality of exceptions taken to the requirements set forth in the RFP.

h. Other Criteria: Other criteria as deemed necessary by the evaluation committee including but not limited to service enhancements.

The Review committee may also contact and evaluate the Proposer's and subcontractor's references; contact any Proposer to clarify any response; contact any current users of a Proposer’s services; solicit information from any available source concerning any aspect of a proposal; and seek and review any other information deemed pertinent to the evaluation process.

Discussions may, at the City’s sole option, be conducted with responsible Proposers who submit proposals determined to be reasonably susceptible of being selected for an award. Discussions may be for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Proposers shall be accorded fair and equal treatment with respect to any opportunity for discussion and written revision of proposals. Revisions may be permitted after submissions and before award for obtaining best and final proposals. In conducting discussions, the City will not disclose information derived from proposals submitted by competing Proposers. Phase 2 - Oral Presentations/Interviews and Consultant Selection Finalist candidates will be invited to make a presentation to the Review Committee and answer questions about their proposal. The purpose of this second phase is two-fold: to present the project and to clarify and resolve any outstanding questions or issues about the proposal. The City reserves the right to further negotiate the proposed work scope and/or method and amount of compensation. Contract award will be based on a combination of factors that represent the best overall value for completing the work as determined by City, including: the written proposal criteria described above; results of background and reference checks; results from the interviews and presentation phase; and proposed compensation. The City reserves the right to award a single contract or multiple contracts by Service Group listed in the Scope of Service. A Notification of Intent to Award may be sent to any Proposer selected. Award is contingent upon the successful negotiation of final contract terms. Negotiations shall be confidential and not subject to disclosure to competing Proposers unless an agreement is reached. If contract negotiations cannot be concluded successfully, the City in its sole discretion may negotiate a contract with another Proposer or withdraw the RFP/Q.


EXHIBIT A – PRICING MATRIX

Required only for Service Group 1 – General Banking Services

If the institution does not or cannot provide a specific requested service, please indicate "no proposal" and, if appropriate, recommend an alternate service. If your firm does not charge for a particular service, please indicate "no charge." If your firm has additional costs or sub-categories associated with the requested service, add those line items. If the cost differentiates by volume of transactions, add all tiers.

Where there is a discrepancy between item unit price and extended total, the unit price will govern.

Service Description Unit Price

Estimated Annual Cost

General Account Services

Quarterly Tax Statement

Online Tax Payment

Online Tax Subscription

Zero Balance Master Account Maintenance

Zero Balance Monthly Base

Account Maintenance w/o Returned Checks

Bank Confirmation Audit Request

Debits Posted (per item charge for debits other than checks)

Credits Posted (per item charge for non-electronic credits)

FDIC Assessment

Other – Specify

Other – Specify

Other – Specify

Total General Services

Lockbox Services

Monthly Maintenance

Retail Lockbox Transmission Item

Retail Lockbox Incoming Overnight Mail

Retail Lockbox Monthly Base

Retail Lockbox Item Processed

Retail Lockbox Partial Payment

Retail Lockbox Multiple Payment

Retail Lockbox Unprocessable Item

Retail Lockbox Cash Payment

Retail Lockbox Custom Report

Retail Lockbox Data Capture

Retail Lockbox Courier Outgoing




Retail Lockbox Transmission Monthly Base Retail Lockbox Post Office Box Rental Other – Specify

Other – Specify Other – Specify

Total Lockbox Services

Depository Services

Desktop Deposit Credit Posted (per deposit)

Cash Vault Monthly Base (per location)

Vault Deposited Coin - Rolled

Cash Vault Coin Deposit Subject to Count

Cash Vault Coin Deposit – Partial/Mix Bag

Cash Vault Deposit Adjustment

Cash Vault Currency/Coin Deposited

Cash Vault Adjustment Advice US Mail

Deposited Checks - On Us

Deposited Checks – Non On Us

Desktop Deposit – On Us

Desktop Deposit – Non On Us

Retail Lockbox Deposited Checks – On Us

Retail Lockbox Deposited Checks – Non On Us

Cash Dep/$1 Ver at Teller Window

Cash Vault Bag Deposit Processing

Change Order Charge – Branch/Store

Currency Ordered / $1 – Branch/Store Returned Item – Chargeback

Online Return Item Retrieval – Image

Online Return Item Service Monthly Base

Return Item Special Instructions

Return Item Special Instruction Monthly Base

Return Item Redeposited

Other – Specify

Other – Specify

Other – Specify

Total Depository Services

Paper Disbursement Services

Positive Pay Exception – Online Image

Full Recon Checks Paid

Non Full Recon Checks Paid

Positive Pay Exception Checks Returned

Stop Payment – Online

Online Image View < 90 Days – Item

Online Image View > 90 Days – Item

Positive Pay Monthly Base

Paid Check Monthly Base

Paid Check Images per CD

Online Check Search




Online Paid Check per Item Other – Specify

Other – Specify

Other – Specify

Total Paper Disbursement Services

Paper Disbursement Recon Services

Full Recon Monthly Base Full Recon per Item Full Recon Output – Transmission Full Recon Optional Reports Full Recon Aged Issue Records Other – Specify Other – Specify Other – Specify

Total Paper Disbursement Recon Services

General ACH Services

ACH Online Subscription – Account ACH Online Subscription – Item Electronic Credits Posted ACH Monthly Base ACH One Day Item ACH Two Day Item ACH Originated Addenda Received ACH Received Item ACH Return Item – Fax Advice ACH Transmission Charge ACH Delete – Item ACH Online Fraud Filter Stop Monthly Base ACH Online Fraud Filter Review Monthly Base ACH Online Fraud Filter Review – Item ACH Notice of Correction – Fax Advice Other – Specify Other – Specify Other – Specify

Total General ACH Services

Electronic Data Interchange

Electronic Receivables Transmission Charge Electronic Receivables Received Addenda Electronic Receivables Monthly Base Bill Pay On Us Items Electronic Consumer Collection Payment Electronic Consumer Collection Return Receivables Manager per Item – ACH Other – Specify Other – Specify Other – Specify



Total Electronic Payment Services


Wire & Other Funds Transfer Service

Wire Detail Report Subscription – Account Wire Detail Report Subscription – Item Online Wire Domestic Incoming Online Wire Domestic Outgoing Other – Specify Other – Specify Other – Specify

Total Wire & Other Transfer Service

Information Services

Online Previous Day Subscription Online Previous Day Subscription Detail - Item Online Intra Day Subscription Monthly Base Online Intra Day Subscription Detail – Item Event Messaging Service – Email Extended Storage of Online Detail (30 days)

Total Information Services

Investment Services

Sweep Mutual Fund Monthly Base Online Additional Sweep Reporting Sweep Mutual Fund Electronic Statement Other – Specify Other – Specify Other – Specify

Total Investment Services

Other Monthly Fees

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Total Other Monthly Fees

Total Estimated Charges


EXHIBIT B – GENERAL PROVISIONS FOR STANDARD FORM CONTRACTS

CITY OF SAN BUENAVENTURA

GENERAL PROVISIONS FOR STANDARD FORM CONTRACTS

Please Read Carefully

These provisions are part of your Bid/Proposal/Quotation and any resultant Agreement.

Definitions:

A. “Bidder’ is any individual, partnership, or corporation that submits a bid, proposal, or quotation.

B. “Bid,” “Proposal,” or “Quotation” shall hereafter be referred to as “Bid.”

C. “Assistant Finance Director” shall mean the Assistant Finance Director or designee.

The Bidder agrees that: A. Bidder has carefully examined the specifications, and all provisions relating to the item(s) to be furnished or

the work to be done;

B. Bidder understands the meaning, intent, and requirements of the items to be furnished or work to be done;

and

C. Bidder will enter into a written contract and furnish the item(s) or complete the work required in the time

specified, in strict conformity with the specifications of the City of San Buenaventura (“City”) for the prices

quoted. 1. Prices:

All prices and notations must be in ink or typewritten. Mistakes may be crossed out and corrections typed or written

in with ink adjacent to the error. The person signing the bid must initial corrections in ink.

Bids shall indicate the unit price extended to show the total price for each item bid. Any difference between the unit

price extended and the total price shown for all items bid shall be resolved in favor of the unit prices.

2. Bidder’s Security:

Intentionally Deleted

3. Faithful Performance Bond:


4. Items Offered:

If the item offered has a trade name, brand, and/or catalog number, such shall be stated in the bid. If the Bidder

proposes to furnish an item of a manufacturer or bidder other than that mentioned on the face hereof, Bidder must

specify maker, brand, quality, catalog number, or other trade designation. Unless such is noted on the bid form, it will

be deemed that the item offered is that designated even though the bid may state “or equal.”

5. Brand Names:

Whenever reference to a specific brand name is made, it is intended to describe a component that has been determined

to best meet operational, performance, or reliability standards of the City, thereby incorporating these

standards by reference within the specifications. These specifications are not meant to limit the Bidder. They are

guidelines to minimum qualifications. The Bidder shall indicate their compliance or non-compliance for each line of

the specification. Any deviations from the specifications, or where submitted literature does not fully support the

meaning of the specifications, must be clearly cited in writing by the Bidder.

An equivalent (“or equal”) may be offered by the Bidder, subject to evaluation and acceptance by the City. It is the

Bidder’s responsibility to provide, at Bidder’s expense, samples, test data, or other documentation the City may require


to fully evaluate and determine acceptability of an offered substitute. The City reserves the right to reject a substituted

component that will not meet or exceed City specifications.

6. Samples:

Samples may be required for bid evaluation and testing purposes. Bidders agree to provide samples within forty-eight

(48) hours upon request and at no additional cost to the City.

7. Verification of Quotations:

Prices must be verified prior to bid submittal, as withdrawal or correction may not be permitted after the bid has been

opened.

8. Firm Prices:

Prices on bid shall be firm prices not subject to escalation. In the event the specifications provide for escalation, the

maximum limit shall be shown, or the bid shall not be considered. In the event of a decline in market price below a

price bid, the City shall receive the benefit of such decline.

9. Alternative Bids:

To be responsive, Bidder must submit a bid that meets all specific bid requirements. Once Bidder has proposed a

product which is responsive to the specification, Bidder may include with the bid any additional bids or alternative

products that Bidder believes can meet or exceed the City’s requirements and that may offer additional advantages,

benefits, or cost savings. The City reserves the right to evaluate, and accept or reject, such alternatives as though they

were part of the original specifications without advertising for further bids, when in the best interests of the City. Any

awards so made will be based on operational and cost analysis considerations that would result in the optimum

economic advantage to the City.

10. Confidential Information:

Any information deemed confidential or proprietary should be clearly identified by the Bidder as such. It may then

be protected and treated with confidentiality only to the extent permitted by law. Otherwise the information shall be

considered a public record. Information or data submitted with a bid will not be returned.

11. Quality:

Unless otherwise required in the specifications, Bidder shall assume that all goods furnished shall be new and unused.

12. Tropical Hardwoods:

Bidder shall not provide any tropical hardwood items to the City.

13. Modification or Withdrawal of Bids:

Bids may be modified or withdrawn by written notice sent by regular U.S. mail or email and received by the Purchasing

and Contracts Section of the City’s Finance & Technology Department prior to the exact hour and date specified for

receipt of bid. A bid may also be withdrawn in person by a bidder, or bidder’s authorized representative, prior to the

exact hour and date set for receipt of bids. Telephone withdrawals are not permitted.

14. Late Bids:

Bids received after the exact time and date specified for receipt will not be considered.

15. Mistake in Bid:

(a) If the Bidder discovers a mistake in the bid prior to the hour and date specified for receipt of bid, Bidder may

correct the mistake by modifying or withdrawing the bid in accordance with Section 13 above.

(b) If prior to the issuance of a purchase order or a contract, the apparent low and best bidder discovers a mistake in

the bid of a serious and significant nature which is unfavorable to Bidder, Bidder may request consideration be given

to modify the bid if it remains the lowest, responsive, and responsible bid. The right is reserved by the City to reject

any and all requests for correction of mistakes in bids received after the hour and date of the bid closing. The decision

of the Assistant Finance Director is final with regard to acceptance or rejection of requests for correction of bids.


16. Signature:

All bids shall be signed and the title and firm name indicated. A bid by a corporation shall be signed by an authorized

officer, employee, or agent, and indicate his or her title.

17. Litigation Warranty:

The Bidder warrants that Bidder is not currently involved in litigation or arbitration concerning the materials or

performance relative to the same or similar material or service to be supplied pursuant to this bid. Bidder further

warrants that no judgments or awards have been made against Bidder on this basis. Disclosure to the City in the bid

of pending litigation, arbitration, judgment, or award involving the same or similar material or service as to be supplied

herein may disqualify the Bidder. The City reserves the right to consider the facts surrounding such disclosure and,

in the event the bid is awarded to Bidder, to require Bidder to furnish the City with a surety bond pursuant to Section

2, above.

18. Royalties, Licenses and Patents:

Unless otherwise specified, the Bidder shall pay all royalties, license fees, and patent fees. The Bidder warrants that

the materials to be supplied do not infringe any patent, trademark, or copyright, and further agrees to defend any and

all suits, actions, and claims for infringement that are brought against the City, and to defend, indemnify, and hold

harmless the City from all loss or damages, whether general, exemplary or punitive, as a result of any actual or claimed

infringement asserted against the City, the Bidder, or those furnishing materials to Bidder to meet the bid

specifications.

19. Performance Standards:

Performance of work and acceptability of equipment or materials supplied pursuant to any contract or award shall be

to the satisfaction of the City.

20. Warranties:

(a) All material, labor, or equipment provided under the contract shall be warranted by Bidder and/or manufacturer

for at least twelve (12) months after acceptance by City. Greater warranty protection will be accepted. Lesser warranty

protection must be indicated by Bidder on the bid as an exception.

(b) Bidder shall be considered primarily responsible to the City for all warranty service, parts, and labor applicable

to the goods or equipment provided by Bidder under this bid, regardless of whether Bidder is an agent, broker,

fabricator, or manufacturer’s dealer. Bidder shall be responsible for ensuring that warranty work is performed at a

local agency or facility convenient to City and that services, parts, and labor are available and provided to meet City’s

schedules and deadlines.

21. Addenda:

Before submitting a bid, each bidder shall ascertain whether any addenda have been issued. Failure to cover in this

bid any such addenda issued may render the bid non-responsive and result in its rejection.

22. Taxes:

The City is exempt from Federal Excise Tax. The City is liable for State, City, and County Sales Taxes.

23. Living Wage Requirements:


24. Prevailing Wage Requirements:



25. Conflict of Interest:

No City employee or elected or appointed member of City government, or member of the employee’s immediate

family, may participate directly or indirectly in the procurement process pertaining to this bid if they:

(a) Have a financial interest or other personal interest that is incompatible with the proper discharge of their official

duties in the public interest or would tend to impair their independence, judgment, or action in the performance of

their official duties.

(b) Are negotiating for or have an arrangement concerning prospective employment with Bidder. The Bidder

warrants to the best of his knowledge that the submission of the bid will not create such conflict of interest. In the

event such a conflict occurs, the Bidder is to report it immediately to the Assistant Finance Director. For breach or

violation of this warranty, the City shall have the right to annul this contract without liability at its discretion, and

Bidder may be subject to damages and/or debarment or suspension.

26. Gratuities:

The City may rescind the right of the Bidder to proceed under this agreement if it is found that gratuities in the form

of entertainment, gifts, or otherwise are offered or given by the Bidder, or any agent or representative of the Bidder,

to any officer or employee of the City with the intent of influencing award of this agreement or securing favorable

treatment with respect to performance of this agreement.

27. Insurance: Insurance Requirement will become Exhibit “C” of the General Services Agreement

Prior to commencement of the services required by this bid, the Bidder shall procure and maintain in full force and

effect all of the insurance required by Attachment “A,” attached hereto and incorporated herein by this reference.

28. Indemnification:

As a separate and independent covenant from BIDDER’s obligations under Section 27 hereof, BIDDER shall

indemnify, protect, defend with counsel acceptable to the CITY, and hold CITY and CITY’s officers, employees,

agents, and volunteers harmless and free from any and all claims, liabilities, or expenses, including attorney’s fees,

arising out of or relating to any negligent act, negligent omission, or wrongful conduct related in any way to BIDDER’s

performance of its services pursuant to this Agreement. In the event CITY and/or any of CITY’s officers, employees,

agents, or volunteers are named in any lawsuit, or should any claim be made against it or any of them by lawsuit or

otherwise arising out of or relating to such negligent act, negligent omission, or wrongful conduct, BIDDER shall

indemnify them for any judgment rendered against them for such negligent act, negligent omission, or wrongful act,

any sums paid out in settlement or otherwise, and all costs incurred by them in their defense, including but not limited

to attorney’s fees.

BIDDER also understands and agrees that it is being employed to perform the services provided for by this

Agreement because of BIDDER’s professed expertise and experience in performing such services. In addition,

BIDDER understands and agrees that while CITY or CITY’s officers, employees, agents, or volunteers may elect to

do so, they have no duty to review, inspect, monitor, or supervise the work performed by BIDDER pursuant to this

Agreement except as otherwise expressly provided for by this Agreement. As a consequence, BIDDER waives any

right of contribution against CITY or any of CITY’s officers, employees, agents, or volunteers arising out of such

failure to inspect, review, monitor, or supervise the work performed by BIDDER pursuant to this Agreement.

The BIDDER’s obligations under this Section of the Agreement shall survive the termination of the

Agreement.

29. Award of Contract:

(a) Bids will be analyzed and award will be made to the lowest, responsive, and responsible bidder whose bid

conforms to the solicitation and whose bid is considered to be most advantageous to the City.

(b) The City reserves the right to reject any item or items.

(c) The City reserves the right to award one or more contracts on the bids submitted, either by award of all items to

one bidder or by award of separate items or groups of items to various bidders as the interests of the City may require,

unless the bidder clearly specifies otherwise in his bid.


Upon acceptance by the City, the solicitation, bid, price quotation, and a purchase order issued to the successful bidder

shall be deemed to result in a binding contract incorporating those terms and these General Provisions.

30. Request for Proposal (RFP) Submittals:

The documents submitted by prospective bidders are competitive sealed proposals and not competitive sealed bids.

When proposals are opened, prices, and other information will not be made public until the proposal is awarded. There

will be no disclosure of any bidder’s information to competing bidders prior to the award of the proposal. At that

time, the executed contract and proposals will become public information.

31. Protests:

Protests by unsuccessful bidders to the selection for award shall be submitted in writing to the Assistant Finance

Director no later than ten (10) calendar days from the date of the letter of notice. Failure to submit a timely written

protest to the Assistant Finance Director shall bar consideration of such protest. The Assistant Finance Director shall

consider the merits of the protest and make a determination that shall be immediately communicated to the protesting

bidder. Any appeal concerning the determination of the Assistant Finance Director shall be submitted in writing to

the Finance & Technology Director no later than five (5) calendar days after the original determination is

communicated to the Bidder. The Finance & Technology Director shall hear the documented arguments of the protest

and a written determination will be made and returned to the affected bidder(s). Determinations by the Finance &

Technology Director concerning protests are final.

32. Documentation:

Due to the time constraints that affect contract performance, all required documents, certificates of insurance, and

bonds shall be provided to the City within ten (10) calendar days following award or date of request by City, whichever

is later. Any failure to comply may result in the bid being declared non-responsive and rejected, and at City’s option,

if a bid bond was required, it may be attached for damages suffered.

33. Document Ownership:

(a) All technical documents and records originated or prepared pursuant to this solicitation, including papers, reports,

charts, and computer programs, shall be delivered to and become the exclusive property of the City and may be

copyrighted by the City. Bidder assigns all copyrights to City by undertaking this agreement.

(b) All inventions, discoveries, enhancements, changes, or improvements of computer programs developed pursuant

to this solicitation shall be the property of the City, and all patents or copyrights shall be assigned to City, unless

otherwise agreed. Bidder agrees that City may make modifications to computer software furnished by Bidder without

infringing Bidder’s copyright or any license granted to City.

34. Advertisements, Product Endorsements:

City employees and agencies or organizations funded by the City are prohibited from making endorsements, either

implied or direct, of their company, commercial products, or services, without prior written approval of the City

Manager.

35. Optional Cooperative Purchase Agreement

It is intended that any other public agency (i.e., city, district, public agency, municipality, or state agency) located

within California shall have the option to participate in any award made as a result of this bid. The City shall incur

no financial responsibility in connection with purchase orders or contracts made by the Bidder with another public

agency resulting from this bid. The public agency shall accept sole responsibility for placing orders and making

applicable payments to the Bidder. The option shall not be considered in the bid evaluation.

36. City Provisions to Prevail:

The City’s General Provisions shall govern any contract award. Any standard terms and conditions submitted by

Bidder may result in the rejection of the bid. To the extent not otherwise provided for by the contract documents, the

California Commercial Code shall apply.

37. Invalid Provisions:

In the event that any one or more of the provisions of this bid shall be found to be invalid, illegal, or unenforceable,

the remaining provisions shall remain in effect and be enforceable.


38. Lawful Performance:

Bidder shall abide by all Federal, State and Local Laws, Ordinances, Regulations, and Statutes as may be related to

the performance of duties under this solicitation. In addition, all applicable permits and licenses required shall be

obtained by the Bidder, at Bidder’s sole expense.

39. Venue:

This agreement shall be governed by and interpreted according to the laws of the State of California, and venue for

any proceeding shall be in the Superior Court of California, County of Ventura.

40. Small Local Business Purchasing Preference:

In determining the lowest responsible bidder for any city purchase of goods or public works construction contract that

is for $250,000 or less, and when responsibility and quality are equal, a credit of five percent (5%) of the bid submitted

by the lowest responsible bidder meeting specifications shall be given to a bidder that meets the definition of a “Small

Local Business,” as defined in Attachment “B.”

Certification: Should Bidder meet the requirements of a Small Local Business, Attachment “B” must be completed

and returned with a valid and authorized quotation. APPROVED AS TO FORM PER SBMC, SECTION 4.600.050

Gregory G. Diaz, City Attorney


Attachment A GENERAL INSURANCE REQUIREMENTS

Prior to contract approval, CONSULTANT/CONTRACTOR/SELLER/BIDDER (hereafter

referred to as “Contractor”) must procure, agree to maintain and supply evidence of

insurance at the levels listed and in accordance with the other provisions listed in this

document.

1. Coverage Types and Limits

a) Commercial General Liability (ISO CGL CG 00 01) - including coverage for

bodily injury, property damage, products & completed operations, and

personal injury arising from the contractor’s activities.

Commercial General Liability (CGL) per Occurrence

Commercial General Liability Aggregate or Combined Single Limit (CSL)

$1 million

$2 million

b) Auto Liability for owned, hired, and non-owned vehicles per Occurrence (or

non-owned & hired if contractor has no autos).

Auto Liability Aggregate or Combined Single Limit

$1 million

$2 million

c) Worker's Compensation with a Waiver of Subrogation in favor of the City

Employer's Liability

Statutory Limits

$500,000

d) Crime/Employee Dishonesty Policy

The Crime policy shall name The City of San Buenaventura as Loss Payee.

Pertains to IT and Financial contracts. Contact Risk Manager for specific

requirements.

$5 million

e) Professional Liability Policy

See item (v) below for examples of Contractors that may need to supply

evidence of this coverage.

$5 million

f) Cyber Liability Policy with Network Security/Data Privacy Coverage

Pertains to contracts with IT component. Contact Risk Manager for specific

requirements.

$5 million

g) Technology E&O/Technology Professional Liability

Contact Risk Manager for specific r equirements.

n/a

2. Insurance Policy Provisions, Endorsements, and other Requirements


Contractor agrees to comply with the following additional requirements with respect to the insurance:

a) Liability Coverage shall apply on a primary non-contributing basis in relation to any other insurance or self-insurance, primary or excess, available to City or any officer, employee, agent, or volunteer of City. As such, a Primary and Non-Contributory Endorsement (with coverage at least as broad as ISO CG 2001 04 13) is required on all liability policies.

b) Contractor waives its right of subrogation against the City. As such, a Waiver of

Subrogation Endorsement is required on the Contractor's Worker's Compensation

policy.

c) A "Blanket" Additional Insured Endorsement (a/k/a "automatic additional insured

endorsement"), attached to the Commercial General Liability policy covering

premises liability, ongoing operations, product liability, and completed operations is

required. If a "Blanket" endorsement is not available, Contractor may submit a

combination of the following endorsements:

An Additional Insured Endorsement covering Premises and Ongoing Operations CG

20 10 04 13 or its equivalent (CG 20 26, CG 20 33, or CG 20 38) AND

an Additional Insured Endorsement covering Completed Operations CG 20 37 04 13.

d) Insurance Policies must be issued by an insurance company licensed to do business

in the State of California with an AM Best rating of not less than A:VII.

e) Each insurance policy required above shall provide that coverage shall not be

canceled except with 30 days’ notice to the City.

f) The Description section of the Certificate must include the following language:

The City of San Buenaventura, its officers, officials, agents, employees and volunteers

shall be named as an additional insured under the General Liability and Auto Liability

policies. All Liability policies are primary and Non-Contributory. Waiver of Subrogation

applies to the Worker’s Compensation policy. 30-day notice of cancellation will be

provided to the Certificate Holder.

g) A Certificate of Insurance must include the following language in the Certificate Holder section:

City of San Buenaventura, its officers, officials, agents, employees and volunteers

501 Poli Street

Ventura, CA 93002

h) Contractor will provide proof that policies of insurance required herein expiring during

the term of this Agreement have been renewed or replaced with other policies


providing at least the same coverage. Such proof will be submitted to the City within

10 days of renewal.

i) Contractor shall provide evidence of the insurance required herein, satisfactory to City,

consisting of certificate(s) of insurance and any required endorsements evidencing

all of the coverages required. Any failure on the part of City or any other additional

insured under these requirements to obtain proof of insurance required under this

Agreement in no way waives any right or remedy of City or any other additional insured

in this or any other regard.

j) Contractor shall ensure that coverage provided to meet these requirements is

applicable separately to each insured, and that there will be no cross-liability

exclusions that preclude coverage for any legal action between Contractor and City,

between Contractor and any other named insureds or additional insureds under the

insurance policy, or between City and any party associated with City or City’s officers,

officials, employees, agents, or volunteers.

k) Coverage shall not be limited to the vicarious liability or supervisory role of any

additional insured. There shall be no cross-liability exclusion and no Contractor

limitation endorsement. In addition, there shall be no endorsement or modification

limiting the scope of coverage for liability arising from pollution, explosion, collapse,

underground property damage, or employment-related practices, except for a

provision or endorsement limiting liability arising from pollution to liability caused by

sudden or accidental pollution.

l) Any umbrella liability insurance over primary insurance provided to meet primary limits

shall apply to bodily injury, personal injury, and property damage, at a minimum.

Coverage shall be as broad as any required underlying primary coverage, and shall

include a “drop down” provision providing primary coverage for liability not covered

by primary policies but covered by the umbrella policy. Coverage shall be provided

with defense costs payable in addition to policy limits. Coverage shall have starting

and ending dates concurrent with the underlying coverage.

m) Coverage shall be written on an “occurrence basis” if such coverage is available, or

on a “claims made” basis if not available. When coverage is provided on a “claims

made” basis, Contractor shall continue to maintain the insurance in effect for a period

of three (3) years after this Agreement expires or is terminated. Such insurance shall

have the same coverage and limits as the policy that was in effect during the term of

this Agreement, and shall cover Contractor for all claims made by City arising out of

any errors or omissions of Contractor, or the officers, employees or agents of

Contractor during the time this Agreement was in effect.

n) Contractor shall require all sub-contractors or other parties hired by Contractor to


perform any part of the services required by this Agreement to purchase and maintain

all of the insurance specified above and submit evidence of all such insurance.

Contractor shall obtain certificates evidencing such coverage and make reasonable

efforts to ensure that such coverage is provided as required herein.

o) No contract used by any Contractor, or contracts Contractor enters into on behalf of

City, will reserve the right to charge back to City the cost of insurance required by this

Agreement. When requested, Contractor shall provide City with all agreements with

sub-Contractors or others with whom Contractor contracts on behalf of City, and with

all certificates of insurance obtained in compliance with this paragraph. Failure of City

to request copies of such documents will not impose any liability on City, or its

employees.

p) In the event any policy of insurance required under this Agreement does not comply

with these requirements or is canceled and not replaced, City has the right, but not

the duty, to obtain the insurance it deems necessary to meet the requirements of this

Agreement, and any premium paid by City for such insurance will be promptly

reimbursed by Contractor, or, if not promptly reimbursed, deducted from any

compensation to be paid by City to Contractor pursuant to this Agreement.

q) Requirements of specific coverage features or limits contained in this Section are not

intended as a limitation on coverage, limits or other requirements, or a waiver of any

coverage normally provided by any insurance. Specific reference to a given coverage

feature is for purposes of clarification only and is not intended by any party to be all

inclusive, or to the exclusion of other coverage, or a waiver of any type. Coverage

shall not be limited to the specific location, individual, or entity designated as the

address of the project or services provided for by this Agreement. Insurance coverage

limits are subject to change based on the unique liability associated with each project

over and above standard coverage limits at the discretion of the City's Risk Manager

or their designee.

r) Contractor shall provide immediate notice to City of any claim against Contractor or

any loss involving Contractor that could result in City or any of City’s officers,

employees, agents, or volunteers being named as a defendant in any litigation arising

out of such claim or loss. City shall not incur any obligation or liability by reason of the

receipt of such notice. However, City shall have the right, but not the duty, to monitor

the handling of any such claim or loss that is likely to involve City.

s) In the event of any loss that is not insured due to the failure of Contractor to comply

with these requirements, Contractor will be personally responsible for any and all

losses, claims, suits, damages, defense obligations, and liability of any kind attributed

to City, or City’s officers, employees, agents, or volunteers as a result of such failure.


Please note:

t) Automobile Liability insurance is not required if the Vendor and its employees

does NO traveling in providing services for completion of the Agreement (e.g. telecommuting). If the Vendor has employees but no vehicles registered to the business (personal vehicles only), the non-owned and hired automobile liability coverage should be included in the Vendor's Commercial Auto Liability policy

u) Workers Compensation insurance is not required if the Contractor is a sole

proprietor/partner/corporate officer with no employees. Otherwise, Worker’s

Compensation is required under CA Labor Code Section 3700. A Workers

Compensation Insurance Waiver is required stating Contractor is a sole

proprietor/partner/corporate officer with no employees. This waiver is to be included

with the other submitted documents.

v) Professional Liability may be required for the following types of contractors. These

are only examples and not an all-inclusive list. Contact Risk Manager for clarification

and requirements. Examples:

Appraisers, notaries, imaging of records, EOC plan, Fair Housing assessments, trainers

Chemists, auditors, insurance agents and brokers, lawyers, laboratories, surveyors,

building inspectors, traffic engineering services.

Ambulance services, actuaries, counselors, medical providers. Also includes

engineers, architects, construction managers, hazardous materials evaluators,

environmental impact evaluators. All IT related projects, contractors and consultants.

w) Cyber Liability and Network Security/Data Privacy Coverage and Technology

E&O/Technology Professional Liability coverage may be required in agreements that

have an IT or data component. Contact Risk Manager for clarification and

requirements.


Small Local Business Purchasing Preference Certification

Attachment “B”

SMALL LOCAL BUSINESS PURCHASING PREFERENCE CERTIFICATION

The City of San Buenaventura’s (“City”) Small Local Business Purchasing Preference policy is applicable to this

Request for Proposal/Bid (ITB/RFP).

Qualified bidders that desire consideration as a small local business for purposes of this ITB/RFP must complete this

Certification and submit it as a part of their bid. Late submittals of the “Statement of Small Local Business

Certification” will not be considered.

STATEMENT OF SMALL LOCAL BUSINESS CERTIFICATION


I _____________________________________________, __________________________________________

(Individual submitting bid) (Title)

Of/for ___________________________________, Certify under penalty of perjury that______________________

(Company Name) (Company Name)

Is a City of Ventura small local business as defined under Article 40 of these General Provisions and therefore

qualifies for the Small Local Business purchasing preference.

______________________________________, _____________

(Signature) (Date)


EXHIBIT C – GENERAL SERVICES AGREEMENT

By this General Services Agreement (“Agreement”), the City of San Buenaventura (“CITY”) agrees to engage the services of CONTRACTOR (identified below), and CONTRACTOR agrees to perform the services for CITY as herein described, for the compensation, during the term, and otherwise subject to the covenants and conditions herein set forth. CITY and CONTRACTOR may be individually referred to as “Party” or collectively as the “Parties.” 1. SUMMARY DESCRIPTION OF SERVICES. _________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 2. PARTIES.

CITY OF SAN BUENAVENTURA (“CITY”), a charter city and municipal corporation of the State of California, located at 501 Poli Street, Ventura, CA 93002 __________________________________ (“CONTRACTOR”), [capacity] ,located at __________________________________________________

3. TERM OF AGREEMENT: From (Date): ___________________To(Date): _____________ Optional Extension (initial term, plus any option to extend, shall not exceed a total of ten (10) years): __________________________________________________________________ 4. AGREEMENT AMOUNT: See Section 8 “Compensation” 5. DESIGNATED REPRESENTATIVES.

The Designated Representatives listed below shall be authorized to act on behalf of the named Party, be responsible for negotiations and contractual matters, and coordinate with each other to perform the services under this Agreement. Additionally, CONTRACTOR’s services shall be performed or immediately supervised by the CONTRACTOR’s Representative:

CITY: Designated Representative: Name: Title: Phone: Email: Mailing Address (if differs from above):

CONTRACTOR: Designated Representative: Name: Title: Phone: Email: Mailing Address (if differs from above):


6. CONTRACTUAL PREREQUISITES.

6.1. This Agreement must first be approved as to form by the City Attorney, then executed by the CONTRACTOR, after which the Agreement may be executed by an authorized person on behalf of the CITY. 6.2. A request for modification of the terms herein must be made in writing and presented to the Designated Representative of the CITY prior to the time this Agreement is executed. 6.3. All proof of business license, insurance, and W-9 forms is required prior to execution of this Agreement.

7. CONTRACTOR'S SERVICES.

CONTRACTOR shall perform/agrees to perform the tasks, obligations, and services set forth in the “Scope of Services,” attached to and incorporated into this Agreement as “Exhibit A.” Once this Agreement is executed, the Scope of Services may only be modified by written Amendment pursuant to Section 18 of this Agreement.

8. COMPENSATION. CITY shall pay CONTRACTOR for the services performed pursuant to the terms of this Agreement in the time and manner set forth in the “Schedule of Compensation,” attached to and incorporated into this Agreement as “Exhibit B.” Once this Agreement is executed, the Schedule of Compensation may only be modified by written Amendment pursuant to Section 18 of this Agreement.

9. PAYMENT. The CITY shall pay all undisputed portions of any applicable invoice within thirty (30) days after receipt of an invoice. In the event the CITY disputes one or more items in an invoice, the CITY shall, within thirty (30) days after receipt of such invoice, notify the CONTRACTOR of the item(s) being disputed and the reason(s) therefore. The CITY may withhold payment for such disputed items until resolution of the dispute. 10. COMMENCEMENT OF PERFORMANCE. CONTRACTOR shall not perform any work under this Agreement until: (i) CONTRACTOR furnishes proof of insurance as required under Section 21 of this Agreement, and (ii) CITY provides CONTRACTOR a signed General Services Agreement, which shall serve as a Notice to Proceed. All services required of CONTRACTOR under this Agreement shall be completed on or before the end of the term of the Agreement.


11. STATUS OF CONTRACTOR. The Parties agree that CONTRACTOR (and any subcontractors), in performing the services herein specified, shall act as an independent contractor and shall have control of all work for which CONTRACTOR is responsible, and the manner in which it is performed. CONTRACTOR shall be free to contract for similar service to be performed for other employers while under contract with CITY, provided that such work does not create a conflict of interest. CONTRACTOR shall have no right or power to bind the CITY to any contracts or agreements with third parties. CONTRACTOR is not an agent or employee of the CITY and is not entitled to participate in any pension plan, insurance, bonus, or similar benefits CITY provides for its employees. However, the CITY retains the right to provide general instructions to and observe the CONTRACTOR in the performance of all services done on behalf of the CITY. In the event CONTRACTOR or an employee, agent, or subcontractor of CONTRACTOR providing services under this Agreement is determined by a court of competent jurisdiction with the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the CITY, CONTRACTOR shall indemnify, protect, defend, and hold harmless the CITY for the payment of any employee and/or employer contributions for PERS benefits on behalf of CONTRACTOR or their employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which might otherwise be deemed the responsibility of the CITY. 12. LAWFUL PERFORMANCE. CONTRACTOR shall abide by all Federal, State, and Local Laws and Regulations as may be related to the performance of duties under this Agreement. CONTRACTOR, at its sole expense, shall obtain and maintain during the term of this Agreement, all appropriate permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement. 13. SAFETY REQUIREMENTS. CONTRACTOR shall not perform any services for the CITY when the CONTRACTOR is impaired by alcohol or a controlled substance. When there is reasonable cause to believe that any person has violated this provision, that person shall be immediately removed from the premises and be subject to any applicable civil and/or criminal penalties under the CITY’s Code and/or under state law. All work performed under this Agreement shall be performed in such a manner as to provide safety to the public. The CITY reserves the right to issue restraining or cease and desist orders to CONTRACTOR when unsafe or harmful acts are observed or reported relative to the performance of the work under this Agreement. The acceptance of CONTRACTOR's work by CITY shall not operate as a release of the CONTRACTOR from such standard of care and workmanship.


14. OWNERSHIP OF CONTRACTOR’S WORK PRODUCT. CITY shall be the owner of any and all technical documents and records, including, computations, plans, correspondence, and/or other pertinent data and information, both hard copy and electronic, gathered or prepared by CONTRACTOR in performance of this Agreement and shall be entitled to immediate possession of the same upon completion of the work under this Agreement, or at any earlier or later time when the same may be requested by CITY.

14.1. Records and Inspections. The CONTRACTOR shall maintain full and accurate records, with respect to all services and matters covered under this Agreement. The CITY shall have free access at all reasonable times to such records, both hard copy and electronic, and the right to examine and audit the same and to make transcripts therefrom, and to inspect all program data, documents, proceedings, and activities.

14.2. Deliverables. CONTRACTOR shall deliver to the CITY the studies, plans, specifications, or other documents as are identified in the Scope of Services; and CONTRACTOR shall, upon completion of all work, submit to the CITY all information developed in the course of the CONTRACTOR's services. CONTRACTOR shall, in such time and in such form as the CITY may require, furnish reports concerning the status of services required under this Agreement. CONTRACTOR shall, upon request by CITY and upon completion or termination of this Agreement, deliver to the CITY all material furnished to CONTRACTOR by the CITY.

14.3. Ownership – Generally. All inventions, discoveries, enhancements, changes, or improvements of computer programs developed pursuant to this Agreement shall be the property of the CITY, and all patents or copyrights shall be assigned to the CITY, unless otherwise agreed. CONTRACTOR agrees that CITY may make modifications to computer software furnished by CONTRACTOR without infringing CONTRACTOR’s copyright or any license granted to CITY, unless otherwise agreed.

14.4. Ownership of Documents. Every report, draft, work product, map, record, and other document reproduced, prepared, or caused to be prepared by the CONTRACTOR pursuant to or in connection with this Agreement shall be the exclusive property of the CITY.

14.5. Confidentiality. CONTRACTOR may be granted access to information that is exempt from disclosure to the public (Government Code Section 6254 and 6254.16) and may contain “trade secrets” (see Government Code Section 6254.7) when it is necessary for CONTRACTOR to perform its obligations pursuant to this Agreement. If CONTRACTOR is granted such access to confidential information, CONTRACTOR shall not be considered to be a member of the public as that term is used in Government Code Section 6254.5. 14.6. Disclosure of Information. CONTRACTOR shall not disclose, publish, or authorize others to disclose or publish, design data, drawings, specifications,


reports, or other information pertaining to the projects assigned to CONTRACTOR by the CITY or other information to which the CONTRACTOR has had access during the term of this Agreement without the prior written approval of the CITY’s Designated Representative during the term of this Agreement and for a period of two (2) years after the termination of this Agreement.

15. NON-APPROPRIATION OF FUNDS.

Payments due and payable to CONTRACTOR for current services are within the current budget and within an available, unexhausted, and unencumbered appropriation of the CITY. In the event the CITY has not appropriated sufficient funds for payment of CONTRACTOR’s services beyond the current fiscal year, and if no funds are legally available from other sources to lawfully make the payments, this Agreement may be terminated at the end of the original term or renewal term and the CITY shall not be obligated to make further payments beyond the current original or renewal term. The CITY will provide notice of its inability to continue the Agreement at such time as the CITY’s Designated Representative is aware of the non-appropriation of funds. However, failure to notify does not renew the term of the contract. 16. TERMINATION OF AGREEMENT. At any time, with or without cause, the CITY shall have the right, in its sole discretion, to terminate this Agreement by giving written notice to CONTRACTOR pursuant to Section 31 of this Agreement, and such termination shall be effective immediately upon giving notice. There shall be no period of grace after giving the notice of termination. Upon termination, CITY shall be liable to CONTRACTOR only for work done by CONTRACTOR up to and including the date of termination of this Agreement unless the termination is for cause, in which event CONTRACTOR need be compensated only to the extent required by law. CONTRACTOR may terminate this Agreement at any time during the term of the Agreement by giving the CITY sixty (60) days’ written notice. 17. OPTION TO EXTEND AGREEMENT. When in the CITY’s best interest, this Agreement may be extended on a daily, month-to-month, annual, or other basis by modification pursuant to Section 18 of this Agreement. The initial term, plus any option to extend, shall not exceed a total of five (5) years. 18. MODIFICATION OF AGREEMENT. This Agreement may be amended, modified, or otherwise altered, or its provisions waived, only upon mutual consent of the Parties by written amendment, and as authorized by the San Buenaventura Municipal Code, sections 4.600.190 and 4.600.200.


19. ASSIGNMENT. This Agreement is for the non-professional services of CONTRACTOR. Any attempt by CONTRACTOR to assign the benefits or burdens of this Agreement without the prior written approval of CITY shall be prohibited and shall be null and void. CONTRACTOR's services pursuant to this Agreement shall be provided by the CONTRACTOR’s Designated Representative or directly under his/her supervision, and CONTRACTOR shall not assign another to supervise the CONTRACTOR's performance of this Agreement without the prior written approval of CITY, by and through the CITY’s Designated Representative. 20. INDEMNIFICATION & HOLD HARMLESS. As a separate and independent covenant from CONTRACTOR’s obligations under Section 21 hereof, CONTRACTOR shall indemnify, protect, defend with counsel acceptable to the CITY, and hold CITY and CITY’s officers, employees, agents, and volunteers harmless and free from any and all claims, liabilities, or expenses, including attorney’s fees, arising out of or relating to any negligent act, negligent omission, or wrongful conduct related in any way to CONTRACTOR’s performance of its services pursuant to this Agreement. In the event CITY and/or any of CITY’s officers, employees, agents, or volunteers are named in any lawsuit, or should any claim be made against it or any of them by lawsuit or otherwise arising out of or relating to such negligent act, negligent omission, or wrongful conduct, CONTRACTOR shall indemnify them for any judgment rendered against them for such negligent act, negligent omission, or wrongful act, any sums paid out in settlement or otherwise, and all costs incurred by them in their defense, including but not limited to attorney’s fees. CONTRACTOR also understands and agrees that it is being employed to perform the services provided for by this Agreement because of CONTRACTOR’s professed expertise and experience in performing such services. In addition, CONTRACTOR understands and agrees that while CITY or CITY’s officers, employees, agents, or volunteers may elect to do so, they have no duty to review, inspect, monitor, or supervise the work performed by CONTRACTOR pursuant to this Agreement except as otherwise expressly provided for by this Agreement. As a consequence, CONTRACTOR waives any right of contribution against CITY or any of CITY’s officers, employees, agents, or volunteers arising out of such failure to inspect, review, monitor, or supervise the work performed by CONTRACTOR pursuant to this Agreement. The CONTRACTOR’s obligations under this Section of the Agreement shall survive the termination of the Agreement. 21. INSURANCE.

Prior to commencing the services required by this Agreement, and at all other times this Agreement remains in effect, the CONTRACTOR shall procure and maintain in full force and effect all of the insurance required by Exhibit “C,” attached hereto and incorporated herein by this reference.


22. LIVING WAGE REQUIREMENTS. Intentionally Deleted 23. PREVAILING WAGE REQUIREMENTS. Intentionally Deleted 24. COVENANTS AND CONDITIONS. Each term and each provision of this Agreement to be performed by CONTRACTOR shall be construed to be both a covenant and a condition. 25. NOTICE OF BREACH AND OPPORTUNITY TO CURE.

Neither Party will be deemed to be in breach of this Agreement based on a breach that is capable of being cured until it has received written notice of the breach from the other Party. The Party charged with breach will have fifteen (15) days from the date of receiving such notice in which to cure the breach or otherwise respond. If the circumstances leading to the charge that the Agreement was breached have not been cured or explained to the satisfaction of the other Party within fifteen (15) days from the date on which the Party received notice of breach, the non-breaching Party may terminate this Agreement. 26. WAIVER.

CITY’s review or acceptance of, or payment for, work product prepared by CONTRACTOR under this Agreement will not be construed to operate as a waiver of any rights CITY may have under this Agreement or of any cause of action arising from CONTRACTOR’s performance. A waiver by CITY of any breach of any term, covenant, or condition contained in this Agreement will not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this Agreement, whether of the same or different character. 27. DISPUTES. Except as otherwise provided in these provisions, any dispute concerning a question of fact arising under this Agreement, shall be decided by the CITY’s Designated Representative, who shall reduce this decision to writing and mail a copy to the CONTRACTOR. The decision of the CITY’s Designated Representative shall be final and conclusive unless CONTRACTOR requests mediation within ten (10) calendar days. Pending final decision of a dispute, the CONTRACTOR shall proceed diligently with the performance of the Agreement and in accordance with the decision of the CITY’s Designated Representative. 28. DISPUTE RESOLUTION.


Should an unresolved dispute arise out of this Agreement, any Party may request that it be submitted to mediation. The Parties shall meet in mediation within a reasonable time not to exceed forty-five (45) days of a request. The mediator shall be agreed to by the mediating Parties. In the absence of an agreement on a mediator, the Parties shall each submit one name from mediators listed by the American Arbitration Association, the California State Board of Mediation and Conciliation, or other agreed-upon service. The mediator shall be selected by a “blindfold” process. The cost of mediation shall be borne equally by both Parties. Neither Party shall be deemed the prevailing Party. No Party shall be permitted to file a legal action without first meeting in mediation and making a good faith attempt to reach a mediated settlement. The mediation process, once commenced by a meeting with the mediator, shall last until agreement is reached by the Parties but not more than sixty (60) days, unless the maximum time is extended in writing by both Parties. 29. TAXPAYER IDENTIFICATION NUMBER. CONTRACTOR shall provide CITY with a complete Request for Taxpayer Identification Number and Certification as issued by the Internal Revenue Service. 30. USE OF THE TERM “CITY.” Reference to “CITY” in this Agreement includes the CITY, its City Manager, or any authorized representative acting on behalf of the CITY. 31. NOTICES. All notices given or required to be given pursuant to this Agreement shall be in writing and may be given by personal delivery or by first-class mail. Notice sent by mail shall be addressed to each Party’s Designated Representative as set forth above in Section 5. When addressed in accordance with this Section, such notice shall be deemed given upon deposit in the United States mail, postage prepaid. In all other instances, notices shall be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this Section.


32. FORCE MAJEURE.

Neither the CONTRACTOR nor the CITY shall be responsible for any delay caused by any contingency beyond their control, including, but not limited to, war or insurrection, walkouts by the Party’s own employees, fires, natural calamities, riots, or demands or requirements of governmental agencies other than the CITY. 33. GOVERNING LAW. The terms of this Agreement shall be interpreted according to the laws of the State of California. Should litigation occur, venue shall be in the Superior Court of California, County of Ventura. 34. SEVERABILITY.

If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect and be enforceable. 35. INTEGRATED AGREEMENT. This Agreement and the attached exhibits to this Agreement represent the entire understanding between the Parties. No verbal agreement or implied covenant shall be held to vary the provisions of this Agreement. This Agreement shall bind and inure to the benefit of the Parties to this Agreement and any subsequent successors and assigns. 36. NO THIRD-PARTY BENEFICIARY. This Agreement shall not be construed to be an agreement for the benefit of any third-party or parties, and no third party or parties shall have any claim or right of action under this Agreement. 37. AUTHORITY TO EXECUTE. Each Party hereto expressly warrants and represents that through its Designated Representative it has the authority to execute this Agreement on behalf of its corporation, partnership, business entity, or governmental entity, and warrants and represents that the Designated Representative has the authority to bind each Party to the performance of its obligations hereunder.


38. EXECUTION – COUNTERPARTS. This Agreement may be executed in any number of counterparts and each such duplicate counterpart shall constitute an original, but they shall not be effective nor enforceable unless and until it is executed with the handwritten signature of an authorized representative of each of the relevant Parties. No counterpart shall be deemed to be an original or presumed delivered unless and until the counterpart executed by the other Party to this Agreement is in the physical possession of the Party seeking enforcement thereof. 39. INCONSISTENT OR CONFLICTING TERMS. In the event of any contradictions or inconsistencies between any attached documents or exhibits incorporated by reference herein and the provisions of the Agreement itself, the terms of the Agreement shall control. Any exhibit that is attached and incorporated by reference shall be limited to the purposes for which it is attached, as specified in this Agreement. Any contractual terms or conditions contained in such exhibit imposing additional obligations on the CITY are not binding upon the CITY’s Designated Representative unless specifically agreed to in writing, and initiated by CITY’s Designated Representative, as to each additional contractual term or condition. 40. ORDER OF PRECEDENCE. In all cases of conflict arising from the terms in the various documents comprising this General Services Agreement, the following Order of Precedence shall prevail, notwithstanding any language to the contrary in any of the documents which may affect this agreement:

(1) The CITY RFP/Q dated March 9, 2018; (2) This General Services Agreement between BANK and CITY

41. ACKNOWLEDGEMENT. By signing below, CONTRACTOR acknowledges that it has reviewed the CITY’s General Services Agreement terms and conditions and insurance requirements and that CONTRACTOR hereby agrees to full compliance.

Signatures Follow


In witness whereof, the Parties have entered this Agreement on the date last signed below (“Effective Date”). CITY OF SAN BUENAVENTURA [CONTRACTOR NAME] ______________________________ ________________________________ Name: Name: Title: Title: ______________________________ ________________________________ Date Date

________________________________ Name: Title:

_______________________________ Date _______________________________ Tax Identification Number

APPROVED AS TO FORM GREGORY G. DIAZ, CITY ATTORNEY PER SBMC, SECTION 4.600.050 Any modification to this pre-approved Standard Form requires further review and approval by the City Attorney.


EXHIBIT A

GENERAL SERVICE AGREEMENT (City of San Buenaventura and )

SCOPE OF SERVICES

This page intentionally left blank. Will be filled in at time of award.


EXHIBIT B

GENERAL SERVICE AGREEMENT (City of San Buenaventura and )

SCHEDULE OF COMPENSATION

This page intentionally left blank. Will be filled in at time of award


EXHIBIT C

GENERAL SERVICES AGREEMENT (City of San Buenaventura and )

INSURANCE REQUIREMENTS

This page intentionally left blank. Will be filled in at time of award with Attachment “A” Insurance Requirement.


EXHIBIT D – NON-COLLUSION AFFIDAVIT

I, , hereby declare as follows:

I am of the party making the foregoing proposal that the proposal is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the proposal is genuine and not collusive or sham; that the proposer has not directly or indirectly induced or solicited any other proposer to put in a false or sham proposal, and has not directly or indirectly colluded, conspired, connived, or agreed with any proposer or anyone else to put in a sham proposal, or that anyone shall refrain from proposing; that the proposer has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the proposal price of the proposer or any other proposer, or to fix any overhead, profit, or cost element of the proposal price, or of that of any other proposer, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the proposal are true; and, further, that the proposer has not, directly or indirectly, submitted his or her proposal price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, proposal depository, or to any member or agent thereof to effectuate a collusive or sham proposal. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Proposer Signature

By Name

Title

Organization

Address

NON-COLLUSION AFFIDAVIT FORM BANKING SERVICES

TO BE EXECUTED BY PROPOSER AND

SUBMITTED WITH PROPOSAL


EXHIBIT E – STATEMENT OF INVESTMENT POLICY

CITY OF VENTURA

FISCAL YEAR 2016-17 STATEMENT OF INVESTMENT POLICY

(This Statement of Investment Policy encompasses the following areas of concern to a sound investment and cash management program)

STATEMENT OF INVESTMENT POLICY:

Section I. Policy Statement ............................................................................................. 2

Section II. Scope ............................................................................................................... 2

Section III. Prudent Investment Standards ...................................................................... 3

Section IV. Objectives ........................................................................................................ 3

Section V. Investment Philosophy ................................................................................... 5

Section VI. Delegation of Authority................................................................................... 5

Section VII. Public Trust ..................................................................................................... 7

Section VIII. Ethics and Conflicts of Interest ...................................................................... 7

Section IX. Authorized Financial Institutions & Broker Dealers ..................................... 8

Section X. Suitable Investments .................................................................................... 10

Section XI. Collateralization ............................................................................................ 19

Section XII. Safekeeping and Custody ............................................................................ 19

Section XIII. Diversification Guidelines & Risks .............................................................. 20

Section XIV. Maturity Limits .............................................................................................. 20

Section XV. Internal Controls .......................................................................................... 21

Section XVI. Performance Standards ................................................................................ 24

Section XVII. Reporting ....................................................................................................... 24

Section XII. Statement of Investment Policy Review and Adoption .............................. 26

Section XIX. Attachment 1-3 Descriptions ........................................................................ 26

ATTACHMENTS TO EXHIBIT A:

Attachment 1 Glossary of Terms ........................................................................... 28-33

Attachment 2 Financial Institutions Questionnaire and Certification ................. 34-35


I. POLICY STATEMENT

This Investment Policy (“Policy”) Statement, as set forth by the City of San Buenaventura (“City”), provides the guidelines for prudent investment of the City’s idle or reserve cash and outlines the policies essential to ensuring the safety and financial strength of the City’s investment portfolio. This Policy is based on the principles of prudent money management and conforms to all applicable Federal and State Laws governing the investment of public funds. In instances in which the Policy is more restrictive than Federal or State Law, the Policy will supersede.

II. SCOPE In accordance with the Charter of the City of San Buenaventura, and under authority granted by the City Council on in Chapter 2.327.020 of the City’s Municipal Code, the Treasurer is responsible for investing the unexpended cash in the City Treasury. This investment policy applies to all the investment activities of the City of San Buenaventura, except for employees retirement funds, which are administered separately, and the proceeds of certain debt issues which are invested in qualified mutual funds or managed and invested by trustees appointed under indenture agreements. All financial assets of all other funds shall be administered in accordance with the provisions of this policy.

III. PRUDENT INVESTMENT STANDARDS The standard to be used by investment officials shall be that of a “prudent person” and shall be applied in the context of managing all aspects of the City’s investment portfolio.

The Prudent Person Standard: Governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of sections 16429.1 and 53600 through 53684 of the California Government Code and considering individual investments as a part of an overall strategy, a trustee is authorized to acquire investments as authorized by law. IV. OBJECTIVES

It is the policy of the City to invest public funds in a manner which will provide for the preservation of capital while meeting the daily cash flow requirements of the City, and attaining a market average rate of return within an acceptable and defined level of risk.


The Policy has three primary objectives in order of priority:

1. Preservation of Capital (Safety) – the protection of principal is the foremost consideration when undertaking investment decisions that affect public funds. The objective is to mitigate credit risk and interest rate risk.

Credit Risk

Credit Risk is the risk of loss of principal due to the failure of the security issuer. Credit Risk can be mitigated by:

• Limiting investments to the safest types of securities.

• Pre-qualifying accountants, auditors, financial institutions, broker/dealers, financial advisors and other outside consultants with which the City does business.

• Diversifying the investment portfolio so that potential losses are minimized.

Interest Rate Risk

Interest rate risk is the risk that the market value of securities will fall due to a rise in general market interest rates. It is the policy of the City to hold individual securities to maturity in an effort to meet liquidity demands. Interest rate risk can be mitigated by:

• Holding individual securities to maturity - Structuring the investment portfolio so that securities mature to meet cash flow requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity.

• Employing a laddering strategy whereby staggering maturities of individual securities so that bonds come due in increments assuring an overall liquidity pattern.

• Limiting maturities of individual securities and the average maturity of the overall portfolio.

2. Liquidity – the investment portfolio shall remain sufficiently liquid to meet all daily cash flow and operating requirements that may be reasonably expected or anticipated.

3. Return or Yield – attain a “market average rate of return” consistent with the primary objectives of safety and liquidity, throughout budgetary and economic cycles.

A market-average rate of return is defined as the average return on Treasury securities with a maturity that matches the weighted average maturity of the portfolio as tracked by common fixed income indexes.


V. INVESTMENT PHILOSOPHY

It is the investment philosophy of the City, to make investment decisions based on an overall passive management style that embodies a prudent investor standard and investments are purchased with the intent to hold until maturity. Accordingly, the City’s conservative philosophy prohibits active trading and speculation; i.e., the purchase of securities with the intent to profit from favorable market changes in market prices or market conditions. Leveraging or borrowing money for the purpose of investing is specifically prohibited. However, the City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity, or yield of the portfolio in response to market conditions or City needs. VI. DELEGATION OF AUTHORITY Chapter 3.327.20 of the City of San Buenaventura Municipal Code designates the Director of Financial and Technology to also serve as City Treasurer. The Treasurer, or his or her designee, has the authority to manage the City’s investment portfolio in accordance with California Government Code Sections 53600 and 53630 et seq. and all related State and Federal laws. The Treasurer will provide written notification to the City Manager and the Oversight Committee regarding the designation of responsibilities. The Treasurer shall establish written procedures for the operation and management of the City’s investment portfolio consistent with this investment policy. The procedures should include reference to safekeeping, repurchase agreements, wire transfer agreements, banking service contracts, collateral or depository agreements, competitive bid process and due diligence. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the investment procedures established by the Treasurer and approved by the City Manager and the Oversight Committee. VII. PUBLIC TRUST All participants in the investment process shall act as custodians of public funds. Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of public trust. In a diversified portfolio it must be recognized that occasional measured losses are inevitable, and must be considered in the context of the overall portfolio’s investment return, provided that adequate diversification has been implemented.


VIII. ETHICS AND CONFLICTS OF INTEREST

Elected officials and employees of the City involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial decisions under the Political Reform Act and Government Code Section 1090 et seq. Elected officials and employees shall disclose to the City Manager any material interests in financial institutions that conduct business with the City, and they shall further disclose any personal investment position or financial asset that could be related to the performance of the City’s investment program. Elected officials and employees shall subordinate their personal investment transactions to those of the City particularly with regard to the time of purchases and sales. The City has adopted an employee handbook called “Core Ethical Principles to Work By” to encourage high standards of employee behavior, increase public confidence, and to assist employees with the decision making process. Additionally, the officers and employees involved in the investment program are required to complete State of California Form 700, Statement of Economic Interests Disclosure requiring annual disclosure on material financial interests. All persons, firms, broker/dealers, financial institutions and advisors providing investment services or bond issue assistance shall disclose to the City Manager and the Treasurer all fee sharing, fee-splitting and commission arrangements with other entities or persons prior to the City agreeing to buy an investment or issue bonds. IX. AUTHORIZED FINANCIAL INSTITUTIONS AND BROKER/DEALERS The Treasurer will maintain a list of qualified financial institutions and broker/dealers authorized to transact business with the City as stated in Appendix “B”. The financial entities eligible to transact investment business with the City are: 1. Federal Reserve Bank:

Direct purchase of U.S. Treasury Bills, Notes and Bonds using primary government dealers as designated by the Federal Reserve are exempt from quality requirements and are encouraged due to commission or mark-up discounts.

2. Nationally or State Chartered Banks, Savings and Loans and Credit Unions: The City may purchase investments offered from Banks, Savings and Loans and Credit Unions provided the institutions are:

• Nationally or State Chartered Institutions.

• Registered as investment securities dealers.

• Ranked in the top 15 percent of institutions within their respective peer group. The signatures of two individuals shall be required for the opening and closing of any bank account (the Treasurer and City Manager or Assistant City Manager). Accounting, which is


independent of the investment function, shall keep a record of all opened and closed accounts. 3. Broker/Dealers: The City will purchase investments from primary dealers whenever possible, however, if an investment deemed appropriate for the portfolio is not available through the primary market than the Treasurer may use an authorized broker/dealer from the pre-approved list of broker/dealers on record. For a broker/dealer to be considered for placement on the pre-approved list they must comply with the following:

• Minimum capitalization of $10,000,000 or more

• Primary or Regional dealers that qualify for SEC Rule 15c3-1

• Provide audited financial statements from the two most frequent years

• A statement certifying that the institution has reviewed the City’s Investment Policy and California Government Code Section 53600 et seq. and that all securities offered to the City shall comply fully with all provisions of the Policy and the California Government Code.IX

• The signatures of two individuals shall be required for the opening and closing of any broker/dealer account (the Treasurer and City Manager or Assistant City Manager).

• The Treasurer is responsible for ensuring that settlement occurs in a timely matter and that execution confirmations reflect accurate trade data.

X. SUITABLE INVESTMENTS

Investment of City funds is governed by the California Government Code Sections 53600, 53601, 53601.5, 53601.6, 53635 and 53635.5 et seq. Within the context of the limitations, the following investments are authorized, as further limited herein:

INVESTMENT

TYPE

MAXIMUM

MATURITY

MAXIMUM

SPECIFIED

% OF

PORTFOLIO

MINIMUM QUALITY

REQUIREMENTS

Local Agency Bonds 5 years None None

U.S. Treasury Obligations 5 years None None

State Obligations— CA

And Others 5 years None None

CA Local Agency

Obligations 5 years None None

U.S Agency Obligations 5 years None None

Bankers’ Acceptances 180 days 40%E None

Commercial Paper—

Select Agencies

270 days

25% of the

agency’s money

“A-1” if the issuer has issued

long-term debt it must be rated

“A” without regard to modifiers


Commercial Paper— Other

Agencies

270 days

40% of the

agency’s moneyJ

“A-1” if the issuer has issued

long-term debt it must be rated

“A” without regard to modifiers

Negotiable Certificates of

Deposit

5 years

20%

(combined with placement service CDs)

None

Placement Service

Deposits

5 years

30%

(inclusive of placement service CDs)

None

Placement Service

Certificates of Deposit

5 years

30%

(combined with negotiable CDs)

None

Repurchase Agreements 1 year None None

Reverse Repurchase

Agreements and Securities

Lending Agreements

92 days 20% of the base

value of the portfolio

NoneM

Medium-Term NotesN 5 years 30% “A” Rating

Mutual Funds And Money

Market Mutual Funds N/A 20%O Multiple

Collateralized Bank

Deposits 5 years None None

Mortgage Pass–Through

Securities 5 years 20% “A” Rating

Bank/Time Deposits 5 years None None

County Pooled

Investment Funds N/A None None

Joint Powers Authority Pool N/A None Multiple

Local Agency Investment Fund

(LAIF) N/A None None

Voluntary Investment

Program FundT N/A None None

When possible, two ratings should be obtained to determine if an investment meets the Policy’s quality standard. Currently under this Policy, only Standard and Poor’s (S&P), Moody’s Investor Service (Moody’s), and Fitch are recognized investment ratings providers. Should an investment’s percentage exceeded the Policy limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Treasurer shall consider reconstructing the portfolio within the Policy established percentage limits. Investment Pools Government sponsored investment pools (Pools) are permitted under California Government Code Section 53601 et seq. and an excellent short-term investment option for cash management facilities. These pools can provide safety, liquidity and yield in a single diversified investment. However, thoughtful investigation and due diligence are required both initially at time of purchase and ongoing analysis to determine that the investment pool is being managed in a manner consistent with the objectives of the Policy. The following guidelines include, but are not limited to:


• Shall have attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations, or shall be insured by a municipal insurance corporation.

• The Pool marks to market weekly at a minimum.

• The Pool provides a comprehensive, timely monthly reports which include detailed transaction listings, reports realized and unrealized gains and losses, provides accurate market values for each security, provides quality rating for individual securities, takes delivery DVP, provides third party safekeeping of all investments, and for whom an audit is conducted annually by an independent auditor with no relationship to the Pool.

Money market mutual funds Money market mutual funds provide another safe, liquid and diversified investment option for the City’s surplus capital; however, certain conditions need to be met both initially and on an ongoing basis. The money market may only invest in US Government securities permitted under this policy and under California Government Code Section 53601 et seq. with final stated maturities of one year or less “Government Money Market Funds.” In order to be an eligible money market investment under this section, the primary objective of the money market, as stated in the fund’s prospectus, is to maintain a constant $1.00 Net Asset Value (NAV). The following additional guidelines include, but are not limited to:

• Only invests in US Government securities, and the weighted average maturity of the portfolio is less than 180 days.

• The fund shall be registered with the SEC.

• The fund shall have a minimum of $500 million to total asset size of portfolio at time of investment, and should not drop below this threshold.

• The money market shall have attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations, and shall maintain these ratings for the duration of the investment.

Prohibited Investments State and Federal laws notwithstanding, any investment not specifically described herein including, but not limited to, reverse repurchase agreements, derivatives, options, futures, zero coupon bonds, inverse floaters, range notes, first mortgages or trust deeds, collateralized mortgage obligations (CMO’s), limited partnerships, real estate investments trusts (REIT’s), open-end mutual funds, closed-end mutual funds, mutual funds with a weighted average maturity greater than 180 days, unregulated and/or uninsured investment pools, common stock, preferred stock, commodities, precious metals, securities with high price volatility, limited marketability (less than three active bidders), securities that may default on interest payments and any other speculative investment deemed inappropriate under the Prudent Investor standard are strictly prohibited. In addition, any investment transaction that might impair public confidence in the City government is to be avoided.


XI. COLLATERALIZATION Collateral for Certificates of Deposit (CD) and Negotiated Certificates of Deposit (NCD) must comply with Government Code, Chapter 4, Bank Deposit Law Section 16500 et seq. and the Savings and Loan and Credit Union Deposit Law Government Code Section 16600 et seq. In addition, if the CD is not FDIC insured or goes over the FDIC $100,000 limit, collateral is required equal to 100 percent of principal of either US Treasury securities or Federal Agency securities.

Collateral for Repurchase Agreements shall be 102 percent of market value of principal and accrued interest. Collateral can be either US Treasury securities or Federal Agency securities. This will provide an addition level of security due to inevitable changes in market conditions.

Collateral will always be held by an independent third party with whom the City has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The right of collateral substitution is granted, within the parameters and constraints of this Policy.

XII. SAFEKEEPING AND CUSTODY To protect against fraud, embezzlement, or losses caused by a collapse of an individual securities dealer, all securities owned by the City shall be held in safekeeping by a third party bank trust department, acting as an agent of the city under the terms of a custody agreement. However, as to the minimum legal requirement per Government Code Sections 53601 and 53608, as long as the securities for safekeeping are held in the name of or under the control of the agency and kept legally separate trust department, they can be held by the same firm from which they were purchased. Securities held in custody for the City shall be independently audited on an annual basis to verify investment holdings.

XIII. DIVERSIFICATION GUIDELINES AND RISKS

The City recognizes diversification is an investment strategy that will mitigate risk in the investment portfolio. The City’s investment portfolio shall be diversified to avoid incurring unreasonable and avoidable risks with regard to specific investment types. Within investment types, the City shall also maintain a mix of securities to avoid concentrations within individual financial institutions, geographic areas, industry types and maturities. With the exception of U.S. Treasuries, Agencies, and authorized pools, such as LAIF, no more than 30% of the City's total investment portfolio will be invested in a single security type or with a single issuer. Investments are further limited by specific language relating to each investment type as stated in Section X of this Policy.


XIV. MATURITY LIMITS The longer the maturity of securities, the greater the market volatility. Therefore, the maximum maturity limit for any given security in the investment portfolio shall not exceed five (5) years. It is also important to note that specific investments, detailed under the “authorized and suitable investments” section, may be restricted to a shorter maturity. The weighted average life of the portfolio may not exceed two and a half (2.5) years in duration. Maturities will be selected based on a sufficiently detailed cash flow projection that facilitates selecting investment maturity dates to approximately match the projected dates of budgeted expenditures. Extensions in the maximum maturity and average weighted life of the portfolio must be supported by detailed cash flow forecasts demonstrating the adequacy of cash from maturing assets to meet one hundred twenty-five percent (125%) of monthly expenditures for each prospective quarter ending with the current maximum including capital expenditures funded on a pay-as-you-go basis. XV. INTERNAL CONTROLS

The Treasurer will implement and maintain a system of internal investment controls and segregate responsibilities of investment functions in order to prevent fraud, theft, loss of principal, loss of control over funds, inaccurate reporting and negligence.

• Annual Management Review and Audit

An annual audit of the City’s Investment Policy, practices, procedures and portfolio status will be conducted by an independent auditor of all items including, but not limited to, items specified in the Audit Checklist provided in the City’s Procedure Manual. The auditor will provide the City with written observations and recommendations regarding the adequacy of investment controls.

• Segregated Investment Execution, Recordkeeping and Reporting An independent member of City staff will record the Treasurer’s investment records or confirmations to the City’s general ledger. In addition, independent staff will perform the monthly reconciliation of bank, broker/dealer and safekeeping confirmations.

• Secondary Approval Required The City Manager will review and approve the establishment of investment accounts, broker/dealer and financial institution relationships, and any agreements or contracts related to investments or investment related activity.

• Wire Transfer Controls All City wire transfers will be executed in accordance with a written agreement


specifying control procedures required for wire transfers of funds; including the establishment of repetitive wires to pay for securities transactions with approved securities dealers as well as any other routine money transfers. All other non-repetitive wires require City Manager approval prior to release.

Investment Oversight Committee: Established in 1985, the primary purpose of the Committee is to review the City’s investment portfolio to ensure that it is in compliance with provisions of the City investment policy and State law. The Committee will provide oversight for investment activity, investment strategies, and to provide recommendations on the type of investments that the City should or should not purchase. The Finance, Audit, and Budget Committee is the appointing authority and will appoint three qualified citizens of the City of Ventura to the Committee. The term of service for the public members shall be three years, with a maximum of two terms (six years). One term will expire each year to allow continuity in the committee. The committee will meet quarterly and provide an annual report to the City Council. The following persons will serve on this committee:

• The City Manager/or other designated City employee;

• Finance and Technology Director/Treasurer; and

• Assistant Finance Director/Deputy Treasurer; and

• Three Qualified Citizens.

A qualified citizen has: 1) Residency in the City of Ventura, 2) Preferably a background in treasury operations or financial services, 3) No felonies or convictions for any type of theft, 4) No actual, perceived, or potential conflict of interest, and 5) It is preferred that the appointees have experience in one or more of the following:

• Government investing at the state or local level,

• Corporate treasury functions,

• Brokers or investment professionals,

• Investment advisors,

• Public administration experience (City Manager or similar)

• Bankers, or

• Certified Public Accountant.

XVI. PERFORMANCE STANDARDS Investment performance is continually monitored and evaluated by the City Treasurer. Investment activity reports are generated on a monthly basis for presentation to the City Manager and Oversight Committee. The weighted average maturity of the pooled portfolio shall not exceed two and a half years and shall be designated to attain a market average rate of return comparable to the average rate of return comparable to the average one year U.S. Constant Maturity Treasury (CMT). An annual audit of the City’s Investment Policy, practices, procedures and portfolio status


will be conducted by an independent auditor of all items including, but not limited to, items specified in the Audit Checklist provided in the City’s Procedure Manual. The auditor will provide the City Manager and Oversight Committee with written observations and recommendations regarding the adequacy of investment controls. XVII. REPORTING The Treasurer shall submit a “Monthly Treasurer’s Report” to the City Manager and Oversight Commit tee within 30 days following the last day of the month, to be submitted to the Investment Oversight Committee. These reports shall disclose information relevant to the risk characteristics of the City’s investment portfolio and shall include the following information: Monthly Treasurer’s Report

A. Cash receipts, disbursements and balances in total.

B. A summary of the investment portfolio.

C. An asset list showing the issuer, type of investment, par value, cost basis, maturity date and interest rate.

D. Information regarding the amount of interest earnings.

E. Average rate of return on the City’s investment portfolio.

F. Maturity aging grouped by type of investment and chronologically.

G. Sector allocation and diversification of investment portfolio.

H. A reconciliation of all cash disbursements.

I. A listing of individual investment transactions during the month as required by Government Code section 53607.

J. A statement of ability to meet upcoming operating expenses and spending requirements for the next six months.

K. A statement of compliance with the Investment Policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio, and a timetable for resolution.

Annual Report

The annual report will be prepared by the City Treasurer and submitted to the City Manager each fiscal year to ensure consistency. The annual report will include an overall analysis of the portfolio, return v. benchmarks, and shall suggest policies and improvements to enhance the City’s investment program. These enhancements will be annually considered by City Council and the authority to amend the Policy rests with City Council.


XVII. STATEMENT OF INVESTMENT POLICY REVIEW AND ADOPTION

The City Council’s primary responsibilities over the investment function includes establishing investment policies, annually reviewing such policies, appointing a City Treasurer, reviewing quarterly investment reports issued by the Treasurer, authorizing bond documents and financing transactions, and adopting recommended changes to the City’s Investment Policy as deemed necessary. The City’s investment policy shall be adopted by resolution of the City Council. The policy shall be reviewed annually by the City Council and any modifications made thereto must be approved the City Council. The City Council has charged the Investment Oversight Committee and the Finance, Audit, and Budget Committee with the responsibility to review and to recommend changes to the Policy. XIX. ATTACHMENT 1- 3 DESCRIPTIONS

The documents described below are attached to and made a part of this Policy (Exhibit A):

XIX.1 GLOSSARY (Attachment 1): Except as otherwise provided in this policy, whenever the words defined or described in the Glossary attached to this policy are used in this policy, they shall have the same meaning attributed to them in the Glossary; however, if there is a conflict between a definition contained in the Glossary and a definition of those same words in Sections 53600 et. seq. of the Government Code, the definition in the Government code shall govern.

XIX.II FINANCIAL INSTITUTION QUESTIONNAIRE AND CERTIFICATION (Attachment 2): Each financial institution that wishes to become qualified to become a qualified bidder for investment transactions with the City must provide the information requested in the questionnaire and certification form attached to this policy and must sign the certification contained in that form. The Treasurer and the AFD may require that the financial institution furnish other information relating to the financial institutions’ operations and qualifications.

XIX.III BROKER/DEALERS QUESTIONNAIRE AND CERTIFICATION (Attachment 3): Each broker/dealer that wishes to become qualified to become a qualified bidder for investment transactions with the City must provide the information requested in the questionnaire and certification form and must sign the certification contained in that form. The Treasurer and the AFD may require that the broker/dealer furnish other information relating to the broker/dealers’ operations and qualifications.


GLOSSARY OF TERMS AGENCIES: Federal agency securities and/or Government-sponsored enterprises.

Accrued Interest -Interest earned but not yet received. Amortization - An accounting practice of gradually decreasing (increasing) an asset's book value by spreading its depreciation (accretion) over a period of time ASKING PRICE: The price at which securities are offered.

BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. Bond - A financial obligation for which the issuer promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment. Book Value - The value at which a debt security is shown on the holder's balance sheet. Book value is acquisition cost less amortization of premium or plus accretion of discount

BROKER: A broker brings buyers and sellers together for a commission.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD's are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual financial report for the City. It includes government wide and fund financial statements prepared in conformity with Generally Accepted Accounting Principals (GAAP). CONSTANT MATURITY TREASURY (CMT) - An average yield of a specific Treasury maturity sector for a specific time frame. This is a market index for reference of past direction of interest rates for the given Treasury maturity range.


COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.

CURRENT YIELD - The interest paid on an investment expressed as a percentage of the current price of the security.

CUSTODY - A banking service that provides safekeeping for the individual securities in a customer's investment portfolio under a written agreement which also calls for the bank to collect and pay out income, to buy, sell, receive and deliver securities when ordered to do so by the principal.

DEALER: A dealer, as opposed to a broker acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DELIVERY VERSUS PAYMENT (DVP): Delivery of securities with a simultaneous exchange of payment for the securities.

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities).

DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale is also considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury bills.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

FEDERAL CREDIT AGENCIES: Agencies of the Federal Government set up to supply credit to various classes of institutions and individuals, e.g., Savings and Loans (S&L’s), small business firms, students, farmers, farm cooperatives, and exporters.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.

FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. The Federal Reserve through open-market operations currently pegs this rate.


FEDERAL HOME LOAN BANKS (FHLB): Government-sponsored wholesale banks (currently 12 regional banks) that lend funds and provide correspondent banking services to member commercial banks, thrift institutions credit unions, and insurance companies. The mission of the FHLBs is to liquefy the housing-related assets of its members who must purchase stock in their district bank.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D. C., 12 regional banks and about 5,700 commercial banks that are members of the system. HOME-BASED FINANCIAL INSTITUTIONS: A financial institution that receives its charter in the County.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, saving and loans associations and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by FHA, VA or FMHM mortgages. The term “pass-through” is often used to describe Ginnie Maes.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market a security is said to be liquid if the spread between bid and asked prices is narrow and sales of reasonable size can be done at those quotes.

LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.


MASTER REPURCHASE AGREEMENT: A written contact covering all future transactions between the parties to repurchase - reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.

OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid.

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool.

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state - the so-called legal list. In other states, the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and, which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.


REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. SAFEKEEPING: See custody. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See uniform net capital rule. STUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations that have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. TREASURY BILLS: A non-interest bearing security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term U.S. Treasury securities having initial maturities of more than ten years. TREASURY NOTES: Intermediate term coupon bearing U.S. Treasury securities having initial maturities of one to ten years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as non-member broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.


CITY OF VENTURA TREASURY DIVISION

FINANCIAL INSTITUTIONS QUESTIONNAIRE AND CERTIFICATION 1. Firm Name 2. Address 3. Telephone No. ( ) ( ) (Local) (National Headquarters) 4. Primary Representative: Manager: Name Name Title Title Telephone No. Telephone No. 5. What is the total of assets of the Bank/Thrift? 6. What are the current ratios? Prior year? Net Worth Tangible Capital Core-based Capital Risk-based Capital Equity-to-Assets 7. Has there been a year during the past three years in which the Bank/Thrift did not make

profit?

8. What is the education level of the Primary Contact(s)?

9. How many years of related experience does the Primary Contact(s) have?

10. Where is the collateral for Time Deposits of the Bank/Savings and Loan held?

11. Has there been a period during the past five years when Time Deposits of the Bank/Thrift

have not been fully collateralized? If yes, explain.


12. Describe the precautions taken by your Bank/Thrift to protect the interest of the public

when dealing with government agencies as depositors or investors.

13. What other banking services would you be interested in providing the City of Ventura?

14. What transaction documents and reports would we receive?

15. What information would you provide to our Treasurer?

16. Please provide your entity's most recent certified financial statement. 17. Please provide your Contract of Deposit of Moneys pre-signed and sealed by your

institution as well as any signature cards that you may require. 18. Please provide your wiring instructions.

Attached is our Investment Policy. The representatives assigned to the account must acknowledge that they have received, read and understood the Policy, dated by signing below. Signature Name and Title Signature Name and Title (Countersigned by company president or person in charge of government security operations) NOTE: Completion of this questionnaire is only part of the City of Ventura’s Certification

process and DOES NOT guarantee that the applicant will be approved to do business with the City.


CITY OF VENTURA

BROKER/DEALER QUESTIONNAIRE Firm Name:

CRD Number:

Office servicing account:

Address:

Primary Representative:

Please attach bio of primary and secondary representatives covering this account.

Telephone:

Fax:

E-Mail:

CRD Number:

Secondary Representative or sales assistant:

Telephone:

E-Mail:

CRD Number:

Branch Manager:

Telephone:

Is your firm designated as a primary dealer by the Federal Reserve?*

If not, does your firm maintain an inventory? (dealer status)*

Is the firm registered with the State of State Securities Board?*

Is the firm and all its representatives registered with the NASD?*

In what market sectors does the account representative specialize?

List three comparable public clients currently working with this representative. Entity name, contact and phone number.

*If the answer to any of these questions is no, please explain each separately.


Attach complete delivery instructions.


BROKER/DEALER QUESTIONNAIRE

Page 2 to be completed by non-primary broker/dealers only.

Firm Name: CRD #:

Years in business at this location: Total years:

What are the market sectors in which you and your firm are involved? Please feel free to provide additional information regarding specialization in any of the following market sectors.

Firm Involvement Broker Involvement

US Treasuries US Agencies Repo MBS CP/BA Corporate CD Other

Has this firm, or the representatives assigned to this account, been subject to a regulatory agency, state or federal investigation for alleged improper, disreputable, unfair or fraudulent activities related to the sale of securities or money market instruments that resulted in a suspension or censure? Is there outstanding litigation that would materially affect the firm’s financial stability?

Do you provide any fixed income research and economic commentary? Please attach sample.

What portfolio information to you require from your clients?

Please provide the firm’s most recent audited financial statement. (The City will require an annual financial statement be provided.) Describe the precautions taken by your firm to protect the interests of the public when dealing with a public entity.

Attached is our Investment Policy. The representatives assigned to the account must acknowledge that they have received, read and understood the Policy, dated _____________ by signing below.

Signature Name and Title

Signature Name and Title


EXHIBIT F – ADMINISTRATIVE POLICY & PROCEDURE NO. 16.2


ADMINISTRATIVE POLICY AND PROCEDURE

Subject:

Investment Portfolio Guidelines APP No. 16.2

Issued by:

Finance and Technology Department

Approved by:

Rick Cole, City Manager

Date Issued:

July 1, 2002

Expiration Date:

June 30, 2011

Review/Update Frequency:

Annual

Review/Update Responsibility:

Treasurer (Chief Financial Officer)

Date of this Revision:

July 1, 2010

Date of Previous Revision:

Annually on July 1, starting in 2003

Departments/Divisions Affected by

Policy/Procedure:

Finance and Technology Department

Treasury, and the Financial Planning and

Analysis Divisions

Authority:

California Government Code 53600 and Annual

Statement of Investment Policy

INVESTMENT PORTFOLIO GUIDELINES

1. PURPOSE

The purpose of these guidelines is to document the direction and control over investment activities and to assure that the goals established in the City's Statement of Investment Policy are attained. These guidelines further define in more detail the current practices for internal controls set forth in the City's Statement of Investment Policy and the practices followed by the Treasurer. Furthermore, the guidelines establish the investment plan parameters for the upcoming fiscal year. All limitations to investment purchases are not outlined in these guidelines; therefore, the City's Statement of Investment Policy and the California Government Code Sections 53600, et. seq. takes precedence over the guidelines outlined herein.

2. GENERAL FACTORS

Several factors must be considered for effective portfolio management:


A. Cash Forecast

The cash flow of the City shall be updated daily with an analysis of cash receipts and expenditures. A close working relationship with City Programs having a significant impact on cash flow is maintained to maximize the efficiency of the City's cash management system.

B. Pooled Cash

Whenever practical, the City's cash will be consolidated into one bank account and invested on a pooled concept basis. Interest earnings are allocated according to specific fund ledger balances. No City bank account may be opened without the knowledge and consent of the Treasurer.

C. Authorized Broker/Dealers/Financial Institutions

A list of approved broker/dealers and financial institutions, which meet the criteria of the Statement of Investment Policy and have been authorized by the Treasurer to do business with the City, will be maintained and regularly updated. Investment transactions will be executed only with approved broker/dealers and financial institutions.

D. Preservation of Portfolio Value

Yield standards are in place in an effort to maintain earnings consistent with the market average rate of return.

E. Golden Rule of Portfolio Management

Investment instrument characteristics will be known and understood before a purchase of the investment instrument is executed.

F. Application of Prudent Investor Principles

Recognizing that there are no firm and steadfast rules (strategies) for portfolio management due to the fact that investor expectations change by the day, hour and minute and because of the market instability, prudent investor principles of fiscal management must be applied at all times.

3. INVESTMENT PLAN/STRATEGY

The investment plan (the plan) reflects the City's definition of a suitable portfolio. The plan translates investment policy generalities into a specific representation of what the City deems as suitable and comparing that plan against the action and the policy. The plan should establish specific parameters for portfolio liquidity, for various fixed income sectors i.e., U.S. agencies and treasuries and for the duration of the portfolio. The plan should be thoughtful, flexible, and accountable. It will provide the Treasurer, Assistant Chief Financial Officer, and Investment Committee with early warning signs should the portfolio drift too far from plan parameters. Rarely, however, will or should the actual portfolio match the plan. The plan parameters will be reviewed on an annual basis, and may or may not, need to change from year to year.

A. Investment Plan Parameters

(1) Portfolio liquidity is set at 20%, or higher depending upon the economic environment.

(2) Portfolio diversification is allocated as follows:

a. U.S. Treasury Notes 10%;

b. U.S. Agencies 50%; and

c. Corporate Notes 20%.

(3) Portfolio duration is currently pegged at or near the two-year treasury.

Strategy refers to the plan of action for managing financial resources in the most advantageous manner.

The Treasurer uses the following elements for developing strategies.


B. Investment Strategy

(1) Economic Forecasts

Information developed by economists and financial experts, input from approved broker/dealers and depository banks, and the Wall Street Journal are used to assist the Assistant Chief Financial Officer and Treasurer with the formulation of investment strategies.

(2) Investment Implementation

Investment transactions will be executed in conformance with anticipated cash flow requirements, economic conditions, and interest rate trends and must be consistent with the established Statement of Investment Policy.

(3) Yield Enhancement

Various investment techniques will be utilized to increase yield such as maintaining a fully invested position while providing for adequate cash flow needs and for taking advantage of market opportunities with the goal of attaining a market rate of return.

4. PURCHASING INVESTMENTS

The Treasurer has developed internal investment procedures to provide for effective cash management. Segregation of responsibilities are maintained to assure an adequate system of internal control over the investment function.

A. Delegation of Authority

Pursuant to the California Government Code Sections 53600, et seq. and Section 5.1 of the City's Statement of Investment Policy, the Treasurer has delegated the Assistant Chief Financial Officer to act as the Treasurer's deputy in performing the Treasurer's functions and duties. The Assistant Chief Financial Officer is subject to the same limitations, obligations, and requirements as the Treasurer.

B. Diversification

The fund should consist of a mix of various types of securities, issuers, and maturities.

C. Investment Transactions

Investment transactions will be authorized by the Assistant Chief Financial Officer as defined in Section 5.1 of the Statement of Investment Policy. In the Assistant Chief Financial Officer's absence, the Accountant will execute transactions as prescribed by the Assistant Chief Financial Officer. In the event of unexpected absence and unavailability by the Assistant Chief Financial Officer or Treasurer, the staff person assigned to the Cash Management section of Treasury will place the monies either in LAIF or an overnight investment and advise the Chief Financial Officer/Treasurer.

D. Wire Transfers

Wherever possible, the City will use preformatted or repetitive wire transfers to restrict the transfer of funds to pre-authorized accounts only. All wire transfers require an approved initiator plus an approval by an authorized employee to verify the wire transfer request. All wire transfers will be transacted in accordance with Bank of America's Telephone Wire Transfer Agreement (Form 00-35-09487NSBW 03-2001).

E. Safekeeping

Securities purchased from broker/dealers shall be held in third party safekeeping with the City's safekeeping agent. All purchases will be on a deliver-versus-payment basis. The safekeeping agent must have a confirmation signed by the Assistant Chief Financial Officer or Treasurer authorizing the investment transaction. Certificates of Deposits, or confirmation evidencing such purchases, will be issued in the City's name and held in the Treasury vault for safekeeping.


F. Repurchase Agreements

These transactions shall be made in accordance with California Government Code Section 53601 and Section 8.7 of the City's Statement of Investment Policy.

G. Collateral/Depository Agreements

Collateral requirements are addressed in California Government Code Section 53652 and Section 9.0 of the City's Statement of Investment Policy. Depository agreements on inactive "Time Deposits" and active deposits will be maintained on file in the Treasury and Revenue Division.

H. Banking Services Contract

The City has entered into a banking services contract with Bank of America. The current contract expires December 31, 2011, with one or two year options to extend thereafter.

Financial institutions providing banking services must be able to provide a wide range of diversified services to meet the needs of the City and its cash management program.

I. Cash Management Services

These services are provided for within the current banking contract with Bank of America.

5. INVESTMENT CRITERIA

All investments will be in compliance with any Federal, State, and Local laws governing the investment of City funds and in accordance with the Statement of Investment Policy.

A. Maturity of Investment

Investment maturities will be determined by the cash flow needs of the City and market opportunities to enhance return. Securities may be sold prior to maturity for cash flow purposes or to enhance or improve the portfolio.

B. Certificate of Deposit Evaluation

(1) Time deposits shall be evaluated in terms of FDIC or FSLIC coverage and in accordance with Section 8.6 of the Statement of Investment Policy. The City has established a self-imposed limit on Certificates of Deposits for investment up to the insured amount only.

(2) Negotiable Certificates of Deposit shall be evaluated in terms of the credit worthiness of the issuer as these deposits are uninsured and uncollateralized promissory notes.

6. PRIMARY GOALS

As set forth in the Statement of Investment Policy, the primary goals for the City of Ventura are safety, liquidity, and return on investments, in that priority order.

A. Safety

The safety/risk associated with an investment refers to the potential loss of principal, accrued interest, or a combination of these. The City of Ventura employs investment instruments that are considered safe. The primary duty of the Treasurer and Assistant Chief Financial Officer is to protect the cash and investments placed in their trust on behalf of the City Council and the citizens of the community.

B. Liquidity

Liquidity refers to the ability to convert investment holdings to cash immediately with a minimal loss of principal or accrued interest. The quality of an investment is important should an unexpected need for funds occur.

C. Return on Investments (Income)


Income is the dollar earnings the investment provides. Income becomes important only after the fundamental requirements of safety and liquidity are met.

7. INTERNAL CONTROL OF INVESTMENTS

Investment transactions are controlled through distribution of responsibilities within the Treasury Division by the following procedures:

A. The Treasurer and/or Assistant Chief Financial Officer will initiate each investment transaction.

(1) A confirmation authorized by the Assistant Chief Financial Officer will be forwarded to the City's safekeeping agent at least one day prior to settlement of the security.

(2) The Assistant Chief Financial Officer or a staff person assigned to the Cash Management section of Treasury will ensure the City's settling bank has sufficient cash on hand to execute the trade.

B. Details of the investment will be recorded from a confirmation provided to the Accountant responsible for recording the trade details into the City's portfolio tracking system.

C. Each investment transaction will be documented, reviewed, and signed off for compliance to the Statement of Investment Policy by the Assistant Chief Financial Officer, a staff person assigned to the Cash Management section of Treasury, and the Financial Planning and Analysis Division designee (Form located on the Treasury I-Drive:/Investment Worksheets/202-502 Investment Transaction Compliance Review.doc).

D. A staff person assigned to the Cash Management section of Treasury will maintain a file of all investment transactions (meaning active/matured/early redemptions) that includes all documentation, authorizations and confirmations by investment number. This documentation will be available for review either by the Controller or by the City's outside auditors.

E. Each business day, the Treasury Division downloads from the bank a printed report via the bank's money tracking system called "Bank of America Direct". This report contains checking account balances, a listing of debits and credits, all investment activity, a record of funds wired in and out, and all cleared checks. The Accountant will review and code this report daily according to type of transactions. This reporting will be reviewed by the Assistant Chief Financial Officer and used for the monthly reconciliation of the City's checking accounts and the accountability reporting for both the Treasury Division and the Financial Planning and Analysis Division.

F. All cash or revenue will be recorded through the Treasury Division on a daily basis and posted to the accounting system daily. A reconciliation of the cash receipts will be prepared daily and monthly by the Treasury Division and Financial Planning and Analysis Division. In addition, the staff person assigned to the Cash Management section of Treasury will audit all daily cash receipts and authorize the daily bank deposit summary.

G. In conjunction with the Financial Planning and Analysis Division, the City's bank reconciliations will be prepared by the staff person assigned to the Cash Management section of Treasury and the Accounting Technician. The Assistant Chief Financial Officer will review the bank reconciliations and all in-transit items for accuracy. Once this review is complete, a staff person assigned to the Cash Management section of Treasury will prepare a monthly accountability report for each respective Division.

H. The Assistant Chief Financial Officer limits the number of qualified primary dealers to no more than three. This limit provides adequate investment coverage for the City's investment program. The Financial Planning and Analysis Division will assist the Treasury Division in the annual review of the Broker/Dealer Questionnaire and the Financial Institutions Questionnaire to ensure qualification as a bidder for investment transactions. These applications will remain on file in the Treasury Division.

8. REPORTING INVESTMENT ACTIVITY

Reporting requirements are very specific in Section 16.0 of the City's Statement of Investment Policy and Section 53646 of the California Government Code. The California Government Code mandates a quarterly reporting to the City Manager, City Council, and the Investment Review Committee; however,


the City's Statement of Investment Policy mandates a monthly reporting that is distributed internally and available upon request. The quarterly reporting shall be forwarded to each and every member of the City Council and the Investment Review Committee within thirty days of the close of the quarter.

9. MODIFICATIONS TO GUIDELINES

The Treasurer in accordance with Section 5.3 of the City's Statement of Investment Policy will authorize modifications to these guidelines. Notice of required amendments will be provided to the City's Investment Review Committee and City Council.

These guidelines are provided to the City's Investment Review Committee, the Finance, Audit, and Budget Committee, the Assistant Chief Financial Officer, and all staff members of the Treasury Division having involvement with the City's investment program.

*****************


AUTHORIZATION SHEET REQUEST FOR PROPOSAL NO. P-13000425

BANKING SERVICES Please indicate which area you are submitting your proposal/qualification. This contract may be awarded to one or more vendor.

This is to certify that I have carefully reviewed the City of San Buenaventura’s Request for Proposal/Qualification No. P-130000415 Banking Services and agree to full compliance unless otherwise clearly indicated in writing any exception my firm is making to these specifications.

Therefore, I, the undersigned, hereby agree to provide all labor, supervision, machinery, tools, apparatus and other means to do all the work and furnish all the materials specified in the contract in the manner and time specified to provide Banking Services to the City of San Buenaventura, if awarded this bid, within the time specified and at the price quoted therein and without any additional charges to the City of San Buenaventura.

________________________________________________________________ COMPANY NAME _______________________________ __________________________ TELEPHONE NUMBER FAX NUMBER ________________________________________________________________ COMPLETE MAILING ADDRESS _______________________________ EMAIL ADDRESS _________________________________________________________________ NAME AND TITLE OF AUTHORIZED COMPANY OFFICIAL _______________________________ ___________________________ SIGNATURE DATE

Service Group 1 General Banking

Services

Service Group 2 Merchant Services

Service Group 3 Safekeeping/Custody

Services

Service Group 4 Public Funds

Interest-bearing Accounts

Service Group 5 Lockbox Services