Hills Bank and The University of Iowa`s agreement

Transcription

Hills
Bank
and Trust Companv
Member FDIC
HILLS BANK AND TRUST COMPANY'S RESPONSE TO
REQUEST FOR PROPOSAL NUMBER 14570 FOR
Automatic Teller Machines
Branch Financial Services
ID Card Financial Related Services
Proposal Due in eBid as .pdf Attachment: FRIDAY DECEMBER 2, 2011 - 3:00 PM
THE
'
UNIVER.511Y
OFlOWA
This document includes 54 pages.
Ken Hinrichs
Phone: (319) 679-5314
Email: ken h1nnchs@hillsbank com
Letter of Transmittal
Mr. John Hillesland, Purchasing Agent
Purchasing Department
202 PCO
Iowa City, Iowa 52242-2500
(319) 384-3399
[email protected]
Dear Mr. Hillesland:
Hills Bank and Trust Company is pleased to respond to RFP No. 14570 for Automatic Teller Machines,
Branch Financial Services, and ID Card Financial Related Services. The bank is proposing a partnership
with the University that reflects technical innovation, personalized banking experience, marketing
excellence, and outstanding financial benefits to the University of Iowa. The program wi ll be implemented
by a project team that is led by senior management and includes technical resources with experience in
launching state-of-the-art campus card programs at major universities throughout the United States.
Hills Bank is proposing a comprehensive program of financial services to the University that will include
full-service branches at the IMU and UIHC, 24 surcharge-free ATM machines, and a campus card
program that will offer ATM and Visa debit capability to students, faculty, and staff. The new Iowa One
Cards with banking functionality will be instantly issued at the IMU. Students will be offered a free
checking account. The bank will introduce the new Iowa One Card program with a well-funded marketing
campaign that ensures the success of the program and promotes high levels of campus participation.
The implementation plan will include a series of re-carding events, starti ng with new student orientation ,
that produce a smooth transition to the new Iowa One Card program .
Hills Bank will invest approximately $4.7 million over the next five years to support the program. The total
monetary value of direct payments to the University should exceed $1 .65 million and will include
guaranteed payments exceeding $1 .0 million. The bank has created a special incentive plan that will
provide revenues to the University based upon card transactions, or "swipe fees."
Our vision for the proposed partnership is unique. Hills Bank was built on strong character, financial
foresight, and traditional Iowa values. As a locally owned community bank and one of the state's
strongest financial institutions with capital in excess of $200 million, Hills Bank is committed to providing
leadership in our community and truly believes in personalized banking, sustainability, and financial
literacy. These are among the reasons that Hills Bank seeks to become the University's partner and
provide financial solutions for all of its students , faculty, staff and alumni.
Hills Bank is proud of its long standing commitment to the community and to the University of Iowa. I
believe our proposal represents the kind of financial commitment, technical innovation , and on-going
support that will provide the University community with unequaled service in the years ahead.
Respectfully submitted,
a~
Dwight 0 . Seegmiller
President and Chief Executive Officer
Hills Bank and Trust Company
319-679-2291
[email protected]
2
Table of Contents
Letter of Transmittal ...................................................................................................................... 2
Executive Summary ....................................................................................................................... 4
Table 1: Guaranteed and Incentive Payments .. ... ... ................. .......................................... 5
Figure 1: Swipe Fee-Based Incentive Payments .............................. .................................. 5
Table 2: Total Investment .................................................................. .......... .... ................... 7
Figure 2: Sample Iowa One Card Issuance Process Flows .. ........... .. .. .............................. 8
SECTION 3.1- GENERAL (ALL FIRMS MUST COMPLY) ....... ...................................................... 9
Section 4 - Scope of Work .......................................................................................................... 12
Section 4 - Part 1 - General Information ...................................... .. .................... ..................... 12
4.1.A. Personnel. ... ... ....................................... ..................... .... ........ .... ... .... ...................... 12
4.1.B. Experience ........................ ....... .. ... ................. .... .. .................. .......... ....................... 14
4.1.C. Risk Management ............................................................................................ .. .... 15
Section 4 - Part 2 - Services ........... .. .. ... ........... .. .......... ....... ................ .............. .. .. ................. 18
4.2.1. ATM Services ................. ............. ................. ... ................................................ .. ...... 18
Figure 3: ATM Functionality by ATM Location .... ...................... .. ............................... 19
4.2.1.1. ATM Reporting .............................................................................. .. ..................... 21
4.2.1.2. ATM Implementation .............................................................. .. .. ..... .. ................... 22
Figure 4: Milestone Target Dates for ATM Installation ............................................... 22
4.2.1.3. ATM Financial Partnership .................................................. .. .. .. ........................... 23
4.2.2. IMU & UIHC Branch Financial Services ............................... .......... .......... .............. 23
Figure 5: Products and Services ........................... .. ................. ..... .. ....................... ... . 24
4.2.3. ID Cards and Debit Functionality .. ........................ ....... ............................. .. ... .. ....... 26
Figure 6: Instant Issuance of Iowa One Card PLUS .. .. ..................... .. .... .. ............ ..... 28
4.2.3.1 . Campus ID Cards Reporting ............................. ................ .. ................................. 32
4.2.3.2. Campus ID Cards Implementation ....... ..................................... ... ................. ....... 33
Figure 7: Milestone Target Dates ............................................ ................. ............. .. ... 34
4.2.3.3. Campus ID Cards Financial Partnership ....................... .............. ........................ 36
Table 3: Total Hills Bank Investment... .................................. ................................... .. 36
Figure 9: Example Swipe Fee Calculation ................................................................. 38
Section 5 - Form of Proposal ..................................................................................................... 39
ATTACHMENT A ........................................................................................................................... 43
ATTACHMENT B ........................................................................................................................... 44
ATTACHMENT C ......................................................................................................................... .. 45
ATTACHMENT D-1 Financial Partnership .................................................................................. 46
Appendix ....................................................................................................................................... 49
Exhibit I: List of Hills Bank ATM Locations ..... .................................................................. 50
Exhibit II: Map of Hills Bank Branch and ATM Locations ............ ........................... ........... 53
Exhibit Ill : Sample ATM Report .................................................................................. ... ... . 54
Exhibit IV: Hills Bank ATM Card Encoding Layout .. ......................... ................................ 54
Exhibit V: Hills Bank 2009 Financial Report .... ............ ...................................... ............... 54
Exhibit VI : Hills Bank 2009 Annual Report .............................................................. .......... 54
Exhibit VII : Hills Bank 2010 Financial Report ............ .. .............. ............................ ........... 54
Ex hibit VIII : Hills Bank 2010 Annual Report ...................................................................... 54
Exhibit IX: Hills Bank Certificates of Insurance, One Original and One Copy .................. 54
Exhibit X: Bankers Blanket Bond or Financial Institutional Bond , 1 Original and 1 Copy. 54
3
Executive Summary
Hills Bank and Trust Company has been a community leader
in financial services for more than 100 years and is one of
the strongest financial institutions in Iowa . A subsidiary of
Hills Bancorporation , the bank was founded in 1904 and
operates 14 offices in three eastern Iowa counties, with more
than 425 employees and total assets approaching $2 billion,
along with Trust and Wealth Management Services with
managed assets of $1 billion. The bank is presenting a
comprehensive proposal to provide the University of Iowa
with 24 surcharge-free ATM machines, two campus
branches, and a state-of-the-art campus card program to support the finan cial services
requirements of students, faculty, and staff. Our Iowa City Downtown office located at the
corner of Clinton and Washington Streets will effectively give University students and staff a
third campus branch location. This proposal is in compliance with all stated requirements of
Request for Proposal Number 14570 and reflects a long-term commitment to the University in
terms of technical innovation, personalized service, and marketing excellence.
Hills Bank envisions the Iowa One Card program at the center of student commerce and student
life - and a major factor in student satisfaction. The bank's goal is to build a program that will
provide students, faculty, and staff with convenient access to their money, while offering strong
local support and accountability. To achieve this goal, Hills Bank will implement one of the most
technically innovative campus card programs in the United States. This program will feature
instant issuance of:
1. A new Iowa One Card that includes a free checking account and offers cardholders
access to funds at ATMs and PIN-based point of sale merchant locations.
2. A new Iowa One Card , the Iowa One Card PLUS 1 , that includes a free checking account
and offers cardholders the added convenience of worldwide Visa merchant acceptance.
The proposed business model combines guaranteed payments and incentives that will produce
revenues to the University of approximately $1 .65 million over the next five years, with
guaranteed payments of $1 .04 million as shown in Table 1:
1
For purposes of this response, the name Iowa One Card PLUS is being used to identify the Visa-bra nded Iowa
One Card. Hills Bank recognizes that the University will decide the card name.
4
Table 1: Guaranteed and Incentive Payments
Guaranteed Payments
Signing Bonus
Guaranteed Annual Royalty
Branch Rent- IMU and UIHC
Card Stock Contribution
Totals
Year1
$ 125,000
$
50,000
$ 100,520
$
50,000
$ 32S,S20
Incentive Payments
Swipe Fee Incentive Payments
$
Year 1
-
Swipe Fee Incentive Paym ents- Campus Stu dent
Organizations
Totals
$
$
7,39S
7,39S
Guaranteed Payments + Incentive Pa ments
s
Year 1
J32.91S
Year 2
$
-
$ 50,000
$ 100,520
$
$ 1SO,S20
$
Year2
35,214
$
$
17,043
S2,2S7
Year 3
$
$ 50,000
$ 137,520
$ 187,S20
Year4
$
$ 50,000
$ 137,520
$
$ 187,S20
Years
$
$ 50,000
$ 137,520
$
$ 187,S20
SYrTotals
$ 12S,OOO
$ 2S0,000
$ 613,600
$
S0,000
$1 ,038,600
Year3
94,281
Year4
$ 155,549
Years
$ 191 ,379
s Yr Totals
$ 476,423
$ 28,856
$ 123,1 37
$ 41,110
$ 196,6S9
$ 48,276
$ 239,6SS
$
$
Year 3
Year 4
Year S
-
$
$
Year 2
142,680
619,103
S Yr Totals
s 202,777 s 310,657 s 384,179 s 427,175 s 1,6S7,703
Total five year compensation to the University includes:
A signing bonus of $125,000.
Guaranteed annual royalty payments of $50,000.
Branch rental payments of $613,600 for the IMU and UIHC.
$50,000 toward Iowa One Cardstock and consumables to support University-wide recarding .
Incentive payments of $476,423 based upon "swipe fees" as explained in Figure 1
below.
Incentive payments of $142,680 to campus student organizations based upon "swipe
fees" as explained in Figure 1 below.
Figure 1: Swipe Fee-Based Incentive Payments
"Swipe Fees" are incentive payments to the University based upon 35% of interchange income
collected by the bank from point of sale card purchases, from both PIN-based and signaturebased debit transactions.
Swipe fees will be paid to UI for all PIN-based and signature-based debit purchase transactions
for cards linked to an Iowa One Card or University Employee Advantage checking account,
including:
1. Iowa One Card
2. Iowa One Care PLUS
3. Any Hills Bank Visa debit card linked to an Iowa One Card checking account or
University Employee Advantage checking account.
5
Swipe fees that exceed $50,000 annually will be paid to the University in addition to the $50,000
annual guaranteed royalty payment. The bank also proposes to allocate 7% of total swipe fee
revenues for Student-Run Campus Organizations. The projected swipe fee revenue to the
University is based on a conservative five year account penetration model (please see Section
4.2.3.3.c, page 37) that assumes the bank will capture a percentage of incoming freshman and
transfer students each year in addition to faculty and staff. The swipe fee model assumes a 50%
penetration rate for incoming students by the fifth year and, conservatively, does not include
penetration estimates for the existing student population. In all likelihood, some existing
students will choose to bank on their Iowa One Cards , which will increase the incentive
payments to the University.
Paying the University swipe fees will streamline accounting and provide monthly revenues to the
University. Hills Bank is excited about promoting the use of the Iowa One Card in the merchant
community, and the proposed incentive plan will allow the University to directly benefit from
these marketing efforts.
The bank plans to make additional significant investments in the partnership, including:
$2.0 million for two state-of-the-art facilities at the IMU and the IMHC that will reinforce a
personalized banking experience, including personnel and equipment.
$960,000 for an on-campus, surcharge-free ATM network of 24 machines.
Comprehensive marketing commitment of $220,000, to promote the new One Card at
new student orientation events and re-carding events, including year-round promotional
activities utilizing targeted direct mail, email , online advertising, and initiatives to support
financial literacy.
6
Hills Bank's total investment is summarized in the following table:
Table 2: Total Investment
Guaranteed Payments
Signing Bonus
Card Stock Contribution
Totals
Year1
125,000
50,000
100,520
50,000
$ 325,520
$
$
$
$
Year2
$
$ 50,000
$ 100,520
$
$ 150,520
Year4
$ 155,549
Year5
$ 191 ,379
- s
s
-
Guaranteed Pa ments +Incentive Payments
Year 1
S 332.915
$ 202.777
Year 3
S 310,657
Year 4
S 384,179
Year 1
260,000
400,000
112,000
50,000
822,000
Year2
$ 267,200
$
$ 112,000
$ 50,000
$ 429,200
Year3
$ 334,604
$
$ 112,000
$ 40,000
$ 486,604
Year4
Years
$ 282.217 $ 290,048
$
$
s 112,000 $ 112,000
$ 40,000 $ 40,000
$ 434,217 $ 442,048
ITotallnvestment
-
$
$
7,395
7,395
$
$
$
$
$
s
$
17,043
52,257
Year 2
-
$
Year3
94,281
s
Year 5
5 Yr Totals
$
125,000
$ 50,000
250,000
$ 137,520 $ 613,600
50,000
$
$ 187,520
1,038,600
-
s
$
Year2
35,21 4
Year4
$
$ 50,000
$ 137,520
$
187,520
Incentive Payments
Swipe Fee lncenllve Payments
Swipe Fee Incentive Payments- Campus Student
Organizabons
Totals
Capital Investment and Mar1<etino Support
Brandl Construction and Staffing
ATM Machines
ATM Operabon
Marketmr;i
Totals
Year 1
Year3
$
$ 50,000
$ 137,520
$
$ 187,520
s
s
5 Yr Totals
476,423
s
s 28,856 s 41,110 $ 48,276 s
s 123,137 s 196,659 s 239,655 s
-
-
I $1 .154,915 IS 631 ,977 IS 797,261 IS 818,396
Year 5
S 427,175
-
142,680
619,103
5 Yr Totals
S 1.657,703
5 Yr Totals
s 1,434,069
$ 400,000
$ 560,000
s 220,000
s 2,614,069
IS 869.223 I $4,271 ,772 I
Hills Bank will work closely with UI to ensure the Iowa One Card supports all current required
card features, and is compatible with the University's technical goals regarding magnetic
encoding of data. Both Iowa One Card solutions can also support financial aid refund deposits
to student checking accounts.
Students will receive their new Iowa One Cards with the payment functionality they desire, all
without the delays, security concerns, and environmental costs associated with mailed cards.
Once issued, all Iowa One Card PLUS cards will work immediately at Visa merchant locations,
PIN debit locations, and ATMs. Cardholders will benefit from selecting their own personal
identification numbers for their Iowa One Cards. The program will be completely "opt in."
Students will be offered a free student checking account that parents will be able to fund from
their own bank via a convenient ACH process.
Our free student checking account will include the following features:
Free Mobile Banking
Unlimited free Hills Bank ATM transactions
Up to 6 free foreign ATM transactions per month
Free Hills Bank Online
Free Power Pay
Free eStatement
7
A high level Iowa One Card issuance workflow diagram is shown below:
Figure 2: Sample Iowa One Card Issuance Process Flows
Issuance in Iowa One Card Office of ATM / PIN Debit Iowa One Card (Pri nter #1)
Issua nce in Hills Bank IMU Bank Branch of Iowa One Card PLUS (Printer #2)
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Hills Bank recognizes the importance of technical innovation and has engaged Runge &
Company to assist in the design and implementation of the Iowa One Card program. Erik
Runge has over a decade of experience launching banking-capable ID card programs at major
universities, including the University of Iowa. His other clients include Visa U.S.A. and the
Datacard Corporation.
Hills Bank looks forward to making a formal presentation of its proposal at the earliest possible
date.
8
SECTION 3.1- GENERAL (ALL FIRMS MUST COMPLY)
A. Organization: The Firm must clearly demonstrate and provide documentation substantiating
that they are compliant. The University reserves , solely, the right to reject any proposal if the
evidence or references submitted by such Firm fails to satisfy the University that said Firm is
properly qualified in any of these areas. It shall not be the responsibility of the University to
request additional information to satisfy these requirements, if such information is not provided
with the submitted proposal. Any exceptions must be noted on the Proposal C? )liance Form ,
Attachment C, as required by the specifications. Firm agrees. Signature:
k,4~
B. Executive Summary: Provide an executive summary that briefly summarizes the history of
the Firm and its experience. The summary should clearly indicate any major requ irements that
cannot be met by the Firm and highlight the major features of the proposal , to assist the reader
in determining generally how the qualifications of the Firm and the proposal meets and exceeds
a~
the requirements proposed by the University. Firm agrees. Signature:
C. Single Point Contact: Provide a single-point managerial-level contact person dedicated to
the University account during the term of the resultant contract and any succeeding renewal or
extension. This person's duty shall include, but not be limited to, coordinating all requirements
and to be the point of contact for any problems/questions wh ich may arise; meet periodically
with University personnel ; and , research information and deliver special reports as needed or
directed by the University. All Firms must include th;s:ontact person's name, qualifications and
level of involvement. Firm agrees. Signature:
~~. .
0 . References: Provide a listing of compa.rable clients for which the Firm has provided services
similar to those on which they are bidding. Select three to four clients from the list (preferably of
equivalent size to The University of Iowa, and also representing a mix of long-standing and
recent clients) and provide the names, titles, business addresses, and business telephone
numbers of individuals at each of the organizations who may be contacted for references.
Firm agrees. Signature: a~
3.2 ATM (FOR FIRMS BIDDING ON ATMs)
A. ATMs: Firm must provide A TMs and/or ? P) cial servicing of University owned or leased ATM
~~
equipment. Firm agrees. Signature:
B. A TM Fees: The University is agreeable to a reasonable minimum ATM surc~e ; not to
exceed the average surcharge in the Iowa City market. Firm agrees. Signature: ~~
C. A TM Customer Service: The Firm shall provide customer service which is readily ava ilable
and easily identifiable to ATM customers. Firm agrees. Signature:
a~
9
D. ATM Reporting: The Firm shall provide monthly and annual standardized reporting of ATM
Usage by location and by transaction type. Firm agrees. Signature:
a~
3.3 BRANCH LOCATIONS (FOR FIRMS BIDDING ON BRANCH FINANCIAL LOCATIONS)
A. Financial Services Branch Locations: The Firm(s) shall enter into separate lease
agreements for space within the Iowa Memorial Union and/or at th~
.
IHC,
11
which will be
~~
negotiated independently of this proposal. Firm agrees. Signature:
3.4 ID CARD DEBIT FUNCTIONALITY (FOR FIRMS BIDDING ON ID CARD FINANCIAL
RELATED SERVICES)
Firms bidding on this service will be required to submit proposals that include A TMs in High
Traffic Student Venues and are also encouraged to bid on the IMU branch location. (See
attachment E for included A TM locations.) Firm agrees. Signature:
a~
A. ID Card Debit Functionality: At a minimum, the Firm shall have the ability to provide
A TM/Pl N-basef-Gybit capability linked to the University's ID cards and badges. Firm agrees.
Signature:
w~
B. ID Card Design: The Firm acknowledges that the Iowa One® Card and the UI Health Care
Badge are the property of the University and as such the appearance of the( ;cards will be
w ~,
determined jointly by the University and the UIHC. Firm agrees. Signature:
C. ID Card Supply Ordering: The University will maintain functional control ~rdering
consumable supplies used in the production of ID cards. Firm agrees. Signature: w ~
D. Marketing: The Firm will submit for approval all on campus promotions, marketing and
communications targeted to students, employees, patients or other populations associated with
the University. Participation at student orientations will be coordinated with the Iowa One® Card
Program and access to students outside of the relationship with the Iowa One® Card , must be
authorized by Orientation Services or other sponsoring University organization . Please refer to
the Conditions of Use of University Facilities policy documented in Part V, Chapter 35 of the
University of Iowa Operation~anual. http://www.uiowa.edu/-our/opmanual/v/35.htm
Firm agrees. Signature: u~
E. ID Card Issuer Identification Number (llN): The Firm shall assist the University in obtain ing
an llN from the American National Standards Institute (ANSI) which will be used to identify the
University of Iowa as the card issuer. Firm agrees, provided proper regulatory and association
approval is received. Signature:
a~"
10
F. ID Card Encoding: The Firm shall provide the University with track 2 encoding specifications
to assist the University in transitioning to a single magnetic stripe which can be used on-campus
Signatu re:
as well as ATM and Pl N-based debit transactions. Firm agrees.
G. ID Card Reporting: The Firm shall provide monthly and annual standardized reporting of:
1. Number of accounts attributed to the University and used in financial incentive calculations
i. Should be detailed by person type (student, employee, alumni)
ii. Should itemize the differen}J¥-~es of accounts (checking, savings, etc.)
Firm agrees. Signature:
t4-~
3.5 MISCELLANEOUS (ALL FIRMS MUST COMPLY)
A. Liability: The University will assume no liability for fraudulent use or overdrafts occurring due
to ATM transactions, check writing or POS transactions on accounts provided under this
proposal. Liability regarding( osystolen cards is between the merchant, cardholder and the Firm.
WJu.r'L
B. Regulatory Compliance: The Firm shall comply with all state and federal laws including, but
not limited to , financial regulatory and statutory rules, regulations , and policies of those agencies
having jurisdiction over the Firm, the Health Insurance Portability and Accountability Act
(HIPAA) and the Gramm-Leach-Bliley Act (GLB). Documentation of ~ compliance shall be
provided to the University upon request. Firm agrees. Signature:
k.4~
C. Security of ATMs and/or Branches: The Firm agrees to provide a detailed description of
the security measures in L lce for the protection of equipment and the branches.
~ .·'
I~
D. Insurance: The Firm agrees to provide a copy of a Ban kers Blanket Bond or Financial
Institutional Bond, including computer p )e and errors and omissions insurance with submitted
proposal. Firm agrees. Signature:
~
t4-
..
1. Please provide duplicate copies of Certificates of Insurance.
E. In-Person Presentation: If requested by the University, the Firm will be prepared to give an
in-person presentation regarding the services outlined in this RFP and submitted for
consideration . Such presen(811~n would include, but not be limited to, items noted in Section 3.
Firm agrees. Signature: w~
11
Section 4 - Scope of Work
Section 4 - Part 1 - General Information
4.1.A. Personnel
1. Provide the names, titles, experience and areas of responsibility for all the staff who will be
directly assigned to work on this project. How do you propose to devote sufficient personnel
be assigned to our account to adequately handle our needs?
Hills Bank has assembled a dedicated team of financial services professionals to launch and
support the partnership with the University. Those individuals are listed below. It will be a
goal of Hills Bank to continue with its philosophy of serving its customers needs and
developing deep, long-lasting relationships. Hills Bank will provide a list of direct contacts
who will ensure that the needs of the University are met. .
Hills Bank envisions the Iowa One Card program at the center of student commerce and
student life - and a major factor in student satisfaction. The bank's goal is to build a program
that will promote high levels of cardholder participation, and create substantial revenue
opportunities for the University. Hills Bank has assembled a dedicated team of financial
services professionals to launch and support the partnership with the UI , including:
Dwight 0 . Seegmiller, President and Chief Executive Officer
Mr. Seegmiller is a graduate of Iowa State University's Agricultural Business Honors Program and
the Stonier Graduate School of Banking at Rutgers University. He joined Hills Bank and Trust
Company in 1975 and has been President since 1986. Prior to 1986, Mr. Seegmiller was the Senior
Vice President of Lending.
James G. Pratt, Senior Vice President and Chief Financial Officer.
Mr. Pratt is a graduate of the University of Iowa and is a CPA. He has been the CFO since joining
the Bank in 1982. Mr. Pratt is in charge of the investment portfolio of the Bank and all
responsibilities regarding financial reporting of the Bank and the Bank's holding company, Hills
Bancorportion. Hills Bancorporation is an SEC reporting one-banking holding company since 1983.
Marty J. Maiers, Senior Vice President, Director of Retail Banking
Marty has overall responsibility for the management and direction of the Retail Banking function ,
including its branch and electronic delivery channels. Mr. Maiers, a University of Iowa graduate and
CPA, has been employed at Hills Bank since 1984.
Shari DeMaris, Senior Vice President, Director of Finance
Shari is a graduate of the University of Iowa and DePaul University and is a CPA. She has been
with the bank since 2005. Ms. DeMaris oversees the bank's risk management program which
includes enterprise risk management, information security, physical security, internal audit,
compliance and regulatory reporting . Mr. DeMaris also works with Mr. Pratt on financial reporting
and accounting issues.
12
Tim Webber, Senior Vice President, Director of Operations
Tim oversees all operations areas including Deposits Operations and Processing, Loan Operations
and Support, Information Technology and Electronic Banking Services. Mr. Webber has over 29
years of banking experience, including 22 years with Hills Bank and is a 1992 graduate of the
University of Iowa with a BA in Finance.
Ken Hinrichs, AAP, CTP ·Vice President-E-Banking Services
Ken is responsible for administration of the bank's ATM deployment program including the
negotiation of all ATM agreements, ATM equipment purchases, A TM service contracts and
ATM vendor management. Mr. Hinrichs acts as the bank's primary contact person for all offpremise ATM installations. Ken also the oversees the bank's Debit, Credit, ATM and PrePaid card programs, and will be the designated person for the University to handle all ATM
and Iowa One Card related activities and requests. Mr. Hinrichs has over 17 years of
banking experience and is an Accredited ACH Professional and Certified Treasury
Professional.
Jennifer Eden, AAP E-Services Officer
Jenni is responsible for the daily operations of the Hills Bank Debit, Credit, ATM and Pre-Paid card
programs, and will be the secondary contact person for the University for the ID Card program and
ATM program. Ms. Eden has over 10 years of banking experience and is an Accredited ACH
Professional.
Erik Runge, Contractor - President, Runge & Company
Hills Bank recognizes the importance of technical innovation and has engaged Runge &
Company (www.rungeandcompany .com) to assist in the design and implementation of the
Iowa One Card program. Runge & Company specializes in the design and deployment of
campus ID card systems. Erik Runge has over 13 years of experience in the financial
services industry and managed Wachovia Bank's campus card program. Runge &
Company's consulting services will include guidance in integrating card issuance
procedures, specifications for magnetic stripe encoding, management of system testing ,
relationship management, marketing plan development, coordination of promotional
campaigns and on-campus carding events. Mr. Runge is an Iowa native and a graduate of
Wake Forest University. Mr. Runge has launched banking-capable ID card programs at
major universities, including:
University of North Carolina at Chapel Hill One Card Plus (2001)
Launched the first instantly issued Visa~branded campus card in the U.S., as
well as an A TM/PIN debit capable campus card.
Oakland University Spirit Card Plus (2005)
Launched an instantly issued MasterCard-branded campus card.
University of Iowa One Card (2006)
Colorado State University Ram Card Plus (2008)
Developed the first unembossed, Visa-branded campus card program, featuring
two color-coded magnetic stripes, a Mifare contactless smart chip, and instant
issuance in the CSU card office.
Utah Valley University PlusCard (2008)
13
Developed an instantly issued Visa-branded campus card, with a Mifare
contactless chip to act as a municipal bus pass.
Idaho State University Bengal Card Plus (2011)
Developed an instantly issued MasterCard-branded campus card, with two colorcoded magnetic stripes and instant issuance in the credit union office next door to
the card office.
Cedarville University One Card (2011)
Launched an instantly issued A TM/PIN-Debit campus card, with an HID
contactless chip used for facilities access.
Runge & Company welcomes the opportunity to arrange site visits to demonstrate the
success of these programs. References for Erik Runge and Runge & Company include:
1. Oakland University- Don Rittenburgh, Manager, ID Card Operations, (248) 370-2533
2. The University of Iowa- Laurie Lentz , Manager, University ID Card Services, (319)
335-1398
3. Utah Valley University- Dawn Burgess, Manager, UVU Campus Connection, (801)
863-7797
4. Colorado State University- Neal Lujan , Manager, RamCard Program , (970) 491 -2344
5. DataCard Corporation- Ron Zanotti , SVP Financial Instant Issuance, (303) 754-2054
2. Provide a single-point managerial-level contact person dedicated to the University during the
term of the resultant contract and any succeeding renewal or extension. This person's duty
shall include, but not be limited to, coordinating all requirements and be the point of contact
for any problem/questions which may arise; meet periodically with University personnel; and
research information and deliver special reports as needed or directed by the University. All
Firms must include this contact person's name, qualifications and level of involvement.
Ken Hinrichs, AAP, CTP {Vice President-E-Banking Services)
Ken is responsible for administration of the bank's ATM deployment program including the
negotiation of all ATM agreements, ATM equipment purchases, ATM service contracts and
ATM vendor management. Mr. Hinrichs acts as the bank's primary contact person for all offpremise ATM installations. Ken also the oversees the bank's Debit, Credit, ATM and PrePaid card programs, and will be the designated person for the University to handle all Iowa
One Card-related activities and requests . Mr. Hinrichs has over 17 years of banking
experience and is an Accredited ACH Professional and Certified Treasury Professional.
Ken Hinrichs
Vice President- E-Banking Services
Phone: 319-679-5314
Email: ken [email protected]
4.1.B. Experience
1. If your institution is currently for sale or involved in any transaction to expand or to become
acquired by another organization, please explain. If your institution has been involved in any
reorganization, acquisition, or merger within the last three (3) years, please explain.
14
Hills Bank has been in the Johnson County market since 1904 and has grown with the needs
of the community. The bank prides itself in being a locally owned community bank with the
ability to provide quality financial services that enable us to compete with larger regional
banks.
Hills Bank is currently building its 15th office location at the corner of Highway 965 and
Forevergreen Road in North Liberty. The bank has no further expansion plans at this time.
In the last three years Hills Bank has not been involved in any reorganization, acquisition or
merger.
2. Have any complaints or lawsuits been filed with state or federal agencies, or in the courts of
the State of Iowa, against your institution where the alleged violation was directly related to
A TMs, branch services and/or ID card financial related services? If so, describe the
circumstances and the outcome, including the names and the docket number of the case.
There have been no complaints filed with any state or federal agencies, or in the courts of the
State of Iowa. Attached to this proposal (via pdfs in eBid) are the 2009 and 2010 audited
financial statements.
3. We request that you submit your institution 's audited financial statements and annual report
for the past two (2) years.
For audited financial statements and annual reports for the past two years, please see the
files attached to this response (via pdfs in eBid).
4.1.C. Risk Management
1. Describe your organization 's business continuity and disaster recovery plan in the event of
disaster or equipment failure at your primary processing site(s).
15
2. Describe your local back-up and/or redundant systems. What is the method of backup, how
3. Describe your data back-up capabilities in case of a complete site failure. How often are
they tested?
16
4. Describe the last time the use of your data back-up system was required, the circumstances
and the length of time the back-up system was in use.
5. What is the expected recovery time frame to become operational should a catastrophic
event occur?
17
Section 4 - Part 2 - Services
4.2.1. A TM Services
A. Provide a list of the A TM equipment planned for each location, including but not limited to
manufacturer's name and model number. Include only those brochures, photos, descriptive
literature, etc., which fully describe the equipment.
Hills Bank will install NCR 6632 Image ATMs for full function service at the following
locations; UIHC South Lobby, UIHC Boyd Tower and UIHC Pomerantz Family Pavilion. In
addition, Hills Bank will install NCR 6622 cash only ATM's at the following locations; Burge,
Hillcrest and Mayflower Residence Halls, IMU, Pappajohn Business Building and UIHC Main
Entrance. The remaining 15 locations will be equipped with NCR 16 cash only ATMs,
including the two (2) new locations referenced in the RFP. (See Figure 3 on page 19)
NCR16
NCR6622
NCR6632
NCR SelfServ
B. Describe the A TM functions that will be provided for the A TM locations within the desired
venues. See Attachment E for A TM locations, withdrawal transaction volumes and venue
type groupings.
Hills Bank has the ability to offer on-screen marketing at the ATM and coupons that can be attached
to the ATM receipt. This marketing feature can be driven by time of day and be a unique message
for each ATM . This marketing feature is available to the University for each ATM location ..
The NCR 6632 Image ATMs will be envelop-free and accept check and cash deposits, cash
withdrawals, account transfers and account inquiries. The NCR 6622 and NCR16 Cash
Only ATMs will permit cash withdrawals, account transfers and account inquiries. A
summary is shown below:
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Figure 3: ATM Functionality by ATM Location
Location
NCR 6632
Full Function
Image ATM
Burge Residence Hall
Hillcrest Residence Hall
Mayflower Residence Hall
Iowa Memorial Union
Pappajohn Business Building
Main Library
Quadrangle Residence Hall
UIHC - South Lobby
UIHC - Main Entrance
UIHC - Boyd Tower
UIHC - Pomerantz Family Pavilion
UIHC - Pappajohn Entrance
Medical Education Research Facility
College of Dentistry
College of Law
University Services Building
Campus Recreation and Wellness Center
Finkbine Golf Course
Center for Disability and Development (new)
College of Public Health (new)
Carver Hawkeye Arena
Kinnick Stadium #1
Kinnick Stadium #2
Kinnick Stadium #3
NCR 6622
Cash
Dispense
Only
x
x
x
x
x
x
x
x
NCR16
Cash
Dispense
Only
x
x
x
x
x
x
x
x
x
x
x
x
x
Sept - Nov
Sept - Nov
Sept - Nov
C. Describe in detail your program of preventive maintenance and regular replacement of worn
and/or malfunctioning equipment.
All ATMs operated by Hills Bank are covered by a maintenance agreement with NCR
Corporation, which is in effect from 8:00 am - 8:00 pm, seven days a week. The agreement
covers the repair or replacement of parts and labor by a factory-trained NCR field engineer.
Each ATM receives periodic preventative maintenance, which improves the performance of
the ATM.
In addition, all ATMs operated by Hills Bank are also covered by a first-line maintenance
agreement (fault call service) with Rochester Armored Car, a third-party company, which is
in effect from 7:00 am - 11 :00 pm , seven days a week. This agreement covers out-ofservice conditions, malfunctions, data communication errors, and other problems that don't
require an NCR field engineer. Rochester also performs the cash replenishments on all
ATMs on a predetermined schedule.
0 . Please explain the security measures in place for the protection of A TM equipment.
19
NCR 6632 and NCR 6622 ATMs will have UL rated cash vaults that meet industry
standards. Subject to University approval, all ATMs will be secured to the floor with an
anchor bolt. All ATMs are alarmed with the alarms monitored 24 hours a day. Cash
replenishment and deposit collection services are performed by an armored car company,
currently Rochester Armored Car. Rochester is also on site with NCR field engineers if
access to the cash vault is needed when servicing the A TM .
E. A TM equipment should fit within the existing space provided at the current locations on
campus. Will this be a problem? If so, please explain.
The ATMs installed by Hills Bank will be of a comparable size or smaller than the ATMs
currently installed and will pose no issues from a space allocation standpoint.
F. Please outline your anticipated transition plan for the installation of new A TMs in the venues
of interest and any potential additional locations.
Hills Bank proposes to work closely with the incumbent to create a smooth ATM transition
for the University. Vendor staging will also be coordinated with appropriate University staff.
G. The University wishes to honor representations made to new students and their parents
regarding the availability of A TMs on campus without surcharge. Please indicate the Firm's
willingness to install equipment prior to March 15 yet delay the implementation of
surcharges on transactions at High Traffic Student Venue ATMs until June 1, 2012.
Hills Bank will work diligently with our ATM vendor to have ATMs in place as soon as
possible. However, ATM vendors are currently facing heavy new order requests due to
changes in the Americans with Disabilities Act (ADA) and therefore cannot commit to
meeting the March 15 deadline given the time window between the contract being awarded
and the transition taking place. Hills Bank will not be surcharging transactions conducted at
High Traffic Student Venues at any time during our contract term.
H. If new A TM locations are requested by the University, please indicate how the revenue/cost
sharing of each additional A TM will be determined.
Hills Bank will seek to receive reimbursement for out-of-pocket costs related to the operation
of the ATM in the event ATM revenue does not exceed ATM operating costs. Revenue in
excess of ATM operating costs will be paid to the University.
I.
Indicate any A TM networks your firm presently a member of, i.e. Privileged Status,
MoneyPass, etc.
Hills Bank is part of the Cirrus, Plus and Shazam networks. Our ATMs also accept Visa ,
Mastercard, American Express and Discover Cards. Hills Bank is also a member of the
Shazam Privileged Status Network. See Exhibit I for a listing of Hills Bank ATMs that are
part of Privileged Status.
J. Give a detailed listing of your current A TMs located in Iowa and Illinois. Provide a
breakdown by county within Iowa and include
radius of The University of Iowa.
20
a map of the A TM locations within a 50 mile
Hills Bank has 76 ATMs within 50 miles of UI. It has been our goal to make ATMs
accessible to our customers and place equipment in locations that are convenient to all of
our customers in our community.
For a list and a map of Hills Bank's existing ATM locations, please see Exhibit I: List of Hills
Bank ATM Locations on page 50 and Exhibit II: Map of Hills Bank Branch and ATM Location
on page 53.
K. Please indicate the Firm 's interest in servicing campus A TMs which may be owned or
leased directly by the University.
Hills Bank will own and operate all ATMs included in this proposal. If the University were to
own or lease ATMs, the bank would be willing to assist with coordinating the servicing of
these machines.
a critical business need for
A TMs in these locations to accommodate peak volumes for specific sport seasons and
events. If appropriate, please provide any alternative solutions such as portable options for
A TMs in Carver Hawkeye Arena, and the Kinnick Football Stadium.
L. Despite the lower annual volume of Sports Venues, there is
Hills Bank proposes operating ATMs at Sports Venues and Finkbine Golf Course on a costshare basis. Based on historical transactional data provided , in order to operate these
ATMs with no surcharge the cost to the University would be approximately $400 per month
for ATMs at Sports Venues and $600 per month at Finkbine for the months they are in
operation.
4.2.1.1. ATM Reporting
A. Describe in detail the Firm's ability to provide monthly and annual reporting of A TM
Transactions by location by transaction type.
Each transaction at an ATM is recorded by the SHAZAM network. Transaction information
includes the date, time, cardholder number, transaction number, transaction type, and
transaction amount. SHAZAM issues monthly reports to each ATM establisher, which
provides totals by type of transaction for each ATM operated. These monthly reports
provide the information needed to report A TM transaction activity to the University. The
A TMs also keep track of the total number of deposits, number of bills dispensed, etc.
B. Please provide samples of customary reporting delivered on a monthly and annual basis.
The bank can provide monthly ATM reports to the University that will show ATM transaction
volume. These reports will show the number and types of transactions. The standard
method for delivery of reports is in paper format. Excel files can be securely e-mailed to
selected University employees. The bank can optionally provide copies of the SHAZAM
network ATM reports along with the Hills Bank prepared reports. Hills Bank currently does
not provide this information online.
C. Please explain the Firm's internal process for verifying and reporting data.
21
The bank would be able to provide standard reports to the University by the 15th of the
month for the prior month's activity . Custom reports can be provided upon request to
provide information on trends in transaction activity.
0 . What other types of reports may be of interest to the University?
The bank will create custom reports at the request of the University. Custom reports will be
sent to the University in an agreed upon format and delivery method.
E. What file formats are available for reporting (.pdf, .xis, .bai2, .csv)?
Reporting can be provided in .pdf, .xis or .csv file formats. We will work with the University
to deliver these reports in for format desired.
F. What methods of delivery are available for reporting? (e.g. U.S. mail, e - mail, fax, online,
etc.)
Hills Bank can deliver reports to UI via secured email and would entertain discussion on
developing an FTP site for file delivery.
4.2.1.2. ATM Implementation
A. Based on previous projects of a similar scope, identify any problematic items and how these
issues were mitigated.
Hills Bank would need 90 days for delivery of new A TMs from NCR Corporation. The order
would be placed , and the delivery period would begin , on the date the new ATM service
agreement with the University is signed. Historically, the lead time on orders was around 60
days. Current delivery timeframes have increased due to the high volume of new machines
being ordered to address changes in the American's with Disabilities Act (ADA), which go
into effect in March, 2012.
B. Provide a schedule showing milestone target dates necessary for full implementation of a
resultant contract.
The timeline for ATM installation and milestones for full implementation is shown below:
Figure 4: Milestone Target Dates for ATM Installation
Day 1
Day 1
Dav 1
Day 1
Day 1
Day 1
Day 1
Day 1
Dav 2
Dav4
Sign Contract
Complete ATM Service Aoreement with SHAZAM
Complete State of Iowa Application for ATM location operation
Initiate ATM order with NCR
Initiate ATM topper or surround order
Notify the alarm company of the installation date
Notify the armored car company of the installation date.
Contact the exiting ATM provider.
Contact appropriate University staff to discuss installation arranqements
Verify SHAZAM ATM Service Aqreement
22
Day 85
Da 90
Veri
Veri
Veri
Coordinate ATM installation with all parties; Armored Courier vendor, alarm
vendor, SHAZAM, Hills Bank staff, exitin A TM rovider, and the Universit
Install the ATM
C. How long do you estimate it will take to install A TM equipment and have the equipment fully
functional?
We want to ensure minimal downtime when the new ATM is placed in service and the old
A TM removed from service. We have addressed this in the past by working directly with the
exiting firm and Shazam to ensure all parties understand their responsibilities and the
timeline of the project.
D. Please explain the Firm's strategy for engaging University stakeholders. Based on your
Firm's experience, identify individuals and/or groups you believe should be involved or have
input in the implementation process, and identify their significance to the process.
Hills Bank will work with the University to establish a list of key stakeholders. We would like
to have a key contact from each location to coordinate specifics related to access to
communications rooms and power. We will deliver project plans to University staff and
conduct meetings as appropriate to keep everyone informed on the progress of the ATM
installations.
4.2.1.3. A TM Financial Partnership
A. Please provide an explanation of revenue or cost sharing opportunities on the attached form
(Attachment D.1).
Hills Bank will operate all ATMs (24) listed in the RFP with no surcharge. We will fund the
entire ATM deployment and ongoing operations with the exception of Sports Venues and
Finkbine Golf Course. Hills Bank proposes operating ATMs at Sports Venues and Finkbine
Golf Course on a cost-share basis. Based on historical transactional data provided, in order
to operate these ATMs with no surcharge the cost to the University would be approximately
$400 per month for ATMs at Sports Venues and $600 per month at Finkbine for the months
they are in operation. The decision to surcharge at these locations would be made by the
University.
4.2.2. IMU & UIHC Branch Financial Services
A. Describe the branch financial services that will be made available to students and
employees.
Hills Bank is prepared to offer a wide variety of financial products and services for the benefit of the
University community . Below is a brief summary:
23
Figure 5: Products and Services
Checking - various types including Free Student Checking
Insured Money Market - various types
Savings - Regular and Penny Savers
Certificates of Deposit - various maturities; $500 minimum
Individual Retirement Accounts (IRAs) - Savings and certificates of deposit
(other investment types available through our Trust Department)
ATM and Debit cards
Automated Clearing House (ACH)
Automatic transfer for overdraft sweep
Check cashing
Check Safekeeping
Coin Counting
Collection items
Direct Deposit
E-statement
Fax
Hills Bank Online (internet banking)
Mobile Banking
Notary service
Official checks
Photocopies
Power Pay
Push Button Banker
Stop payment
Telephone transfer
Wire transfer (incoming and outgoing)
Consumer loans
Residential Loans
Home Equity loans
Home Equity Lines of
Credit
Ready Reserve
Trust and Wealth
Management Services
Insurance products
8 . The University prefers that branch hours follow regular University business hours Monday
through Friday, 8am to 5pm, and an option for extended hours during peak times of student
orientation (/MU location only). Describe how you will accommodate the University and
provide the hours of operation.
Hours will be from 8:00am - 5:00 p.m. (Monday through Friday) at both IMU and UIHC.
This will include tellers and personal bankers proficient in both deposits and consumer
loans. During peak times of student orientation we will provide expanded hours (past 5:00
p.m.) as well as additional staffing as required . The bank is familiar with the need for
additional staffing during peak times during student orientation the first few weeks of each
semester.
C. The /MU and UIHC branches will follow the University of Iowa academic calendar for holiday
observances. Describe how you will accommodate the University and provide a schedule of
holidays the branches will be closed.
24
The branches will be closed for all federal holidays as published by the Federal Reserve
System. Otherwise, the branches will be open during the hours listed in "B" above. The
bank would like to have a dialog with UI about branch hours of operation during holiday
breaks. A list of holidays is provided below:
New Year's Day
Martin Luther King , Jr. Day
President's Day
Memorial Day
Independence Day
Labor day
Veteran's Day
Thanksgiving Day
Christmas Day
D. Please indicate if the Firm will provide some type of financial account with a PIN-based A TM
card for unbankable individuals in the University of Iowa community.
UI staff who do not qualify for a traditional checking account will be able to obtain a Hills
Bank Reloadable PrePaid Visa card with PIN access to funds at the POS and ATM.
This card can be funded by bringing funds to any branch location to make a deposit to the
card , in the same way a traditional deposit can be made. The card would be accepted at
ATM's and anywhere Visa Debit is accepted.
E. Please explain the Firm's plan for staffing branch location(s) . Do you anticipate hiring any
University of Iowa students to work in either of the two locations?
Since Hills Bank established branches in Iowa City almost 30 years ago we have always
hired UI students primarily in the teller area. Based on their aptitudes and class schedules,
the hiring of UI students has been a positive move for both the bank and the students. We
intend to continue this in the future, especially with the two new branches at the IMU and
UIHC.
We would like to have further discussions on the transition of the branch locations,
especially the IMU to insure we are able to work with incoming freshmen during early
orientation sessions in June.
F. Please explain the security measures in place for the protection of each branch location.
G. Based on previous projects of a similar scope, identify any problematic items and how these
25
No problems are anticipated but if they occur they will be handled as quickly and efficiently
as possible. Hills Bank has built and opened several new branches in the last 1O+ years
and has encountered few problems and have opened the branches according to schedule.
H. Provide a schedule showing milestone target dates necessary for full implementation of a
resultant contract.
Our understanding is we are taking over currently leased space and we expect the location
to be fully operational within 30 days of possession date.
How long do you estimate it will take to be fully operational in the branch location(s)
It is anticipated the branches can be fully functional in five days or less after taking
possession of the two branches.
I.
Please explain the Firm 's strategy for engaging University stakeholders. Based on your
Firm 's experience, identify individuals and/or groups you believe should be involved or have
Consultation with UI facilities management will be necessary in coordinating the bank's
move into the branches at the IMU and UIMC.
4.2.3. ID Cards and Debit Functionality
Confidential and Proprietary
B. The University requests that the Firm provide assistance in obtaining the University's own
unique /IN from ANSI. Describe how this will be accomplished.
After speaking with several processors and other references in the industry, it is the bank's
understanding that oversight groups have become very restrictive with regard to allowing
non-financial institutions to own a debit card BIN. The basis for these concerns has to do
with potential fraud and compliance issues. Prior to requesting an llN, Hills Bank would
need to work with the University to review all compliance and regulatory concerns. After
certifying this information with the University, we would work with the ABA and the Iowa
Division of Banking to get their approval to proceed.
27
28
29
E. The University will not allow bank branding on the front of the ID card. Bank branding is
allowable on the back of the card. Please indicate if the Firm is able to comply with this
requirement.
Hills Bank will comply with this requirement.
F. The University will assume no liability for fraudulent use or overdrafts occurring due to A TM
transactions, check writing or POS transactions on accounts provided under this proposal.
Liability regarding lost/stolen cards is between the merchant, cardholder and the Firm.
Describe the customer supporl that will be provided to assist cardholders in the event of a
lost/stolen debit enabled ID card.
To report your debit card lost or stolen , contact us immediately. After bank hours, call
800-383-8000 to cancel your debit card.
Any Hills Bank cardholder can call any office or the call center during business hours, we
can offer the ability to place a temporary block on the card if the card may be just misplaced
while trying to find the card . If after hours, contact our processor, Shazam at 800-383-8000
to report the card lost or stolen and have the card canceled.
G. Describe how lost/stolen cards are deactivated. If a card is found, describe how the Firm will
reactivate the card. Please describe your lost/stolen card policy.
A cardholder will need to contact UI and Hills Bank to report a lost or stolen card .
Replacement Iowa One Card Plus cards will be instantly issued in the Hills Bank campus
branch during normal business hours. Replacement Iowa One Cards with ATM/PIN debit
functionality will be instantly issued in the Iowa One Card office during normal business
hours. Outside of normal business hours, a cardholder will need to follow Ul's current
process for obtaining an "emergency" One Card (without ATM or debit functionality) for use
until the cardholder can visit the school card office to confirm eligibility for either a
replacement One Card.
Cardholders will deactivate lost or stolen Iowa One Cards for campus use by reporting the
card lost or stolen to the ID card office, just like they would today . To deactivate banking
functionality for a lost or stolen card , cardholders will call a toll-free customer service center,
24 hours a day, seven days a week, or visit any Hills Bank branch during normal branch
hours.
Once a card is deactivated (e .g. "hot carded"), it cannot be re-activated as a
banking card.
H. Please provide information regarding the Firm's security policies in place for the protection
of ID card and cardholder related data.
Hills Bank understands that it is very important that we keep all of our customers and
potential customers information private and secure. We have policies and practices that are
continually reviewed by our Audit staff and external examinations to make sure we are doing
30
what we can to protect that data. In general steps are taken to limit the data that staff and
vendors have access to help control the sensitive data. We also take steps to train our staff
on how to protect that data as well outside of the controls that we have put in place.
The instant issuance system used to produce Visa-branded Iowa One Cards meets both
Visa's and MasterCard's requirements for data security, including physical and logical
access controls. It is installed at hundreds of financial institutions who use it to produce Visa
or MasterCard-branded banking cards instantly in the branch.
I.
Please explain how an ID card with Visa or MasterCard debit capabilities would be issued to
A cardholder and the length of time it would take to deliver this type of ID card to individuals
who opt-in to this feature.
An ID card with Visa debit capability could be instantly issued on the UI campus, using
proven technology that is currently in use at several schools . It takes approximately 2 - 2
1/2 minutes to instantly issue a Visa-branded ID card, depending on the amount of
encoding, and whether or not the card is laminated. There are several approaches that
could be taken for issuing these cards on campus, and Hills Bank wishes to consult with UI
to build a custom solution that incorporates Ul's card management capabilities , Visa's
instant issuance security requirements, the Hills Bank campus branch, Ul's orientation
workflow, and potential mass re-carding scenarios.
J.
Please explain data exchange requirements between the University and the Firm to provide
this signature-based debit functionality.
Hills Bank would like to develop a simple, reliable, and cost effective signature-based debit
solution that would enhance the Iowa One Card but not require any data exchange between
Hills Bank and UI. The bank desires minimal impact to Ul 's existing system of card readers
and back end card management system. A Visa-branded Iowa One Card with two discrete
two track magnetic stripes (like the current Iowa One Card) would be the ideal way to
achieve this goal. Colorado State University adopted this approach for its Visa-branded
Ram Card PLUS program, because of inherent limitations with its ID card management
system. Idaho State University recently implemented a similar two magnetic stripe program
for its MasterCard-branded ID.
K. Describe the Firm's ability to provide staff on-campus to assist with the production campus
ID cards during peak carding events.
Hills Bank understands that it is critical to have adequate staffing to assist with card
production and new account opening , particularly during peak carding events. The bank will
provide whatever staffing is necessary to support the card issuance requirements during
orientation, or during the back to school rush in the fall. The bank anticipates working very
closely with UI to customize a staffing model around the requirements of each particular
carding event.
K. Describe the Firm's process for providing a low/no cost, web-based tool to transfer of funds
to student checking or savings accounts. Please indicate whether funds would be available
same or next-day.
Hills Bank will allow the parents of University students the ability to transfers funds to the
students checking account via ACH . We will create an online form for the parent to
31
complete to request the transfer the funds. If the request is made by 3:00 PM Central time
funds will be made available to the student that same day. Parents also have the ability to
send the student a payment via their online Bill Payment solution or P2P solution that they
use today, in addition to a traditional wire transfer.
Hills Bank is currently looking at many P2P solutions that would potential give the ability of
parents to make the transfer to the students account not only online, but with the use of a
mobile device as well. Once available, we would work with the University to rollout new
services as they become available.
4.2.3.1 . Campus ID Cards Reporting
A. Describe in detail the Firm's ability to provide monthly and annual reporting of the number of
accounts attributed to the University, information should be available based on person type
(student, employee, alumni, etc.), and should detail the types of accounts for each person
type.
Hills Bank will be able to provide UI with monthly and annual reporting that details aggregate
cardholder activity for each of the three card types , by card BIN (or llN): Iowa One Card with
ATM/PIN debit and Iowa One Card PLUS with Visa debit. This reporting would include:
Number of cards from each BIN completing point of sale transactions (PIN-based
and signature-based).
Total PIN-based debit transactions.
Total signature-based debit transactions.
The number of Iowa One Card PLUS cards and Affinity Debit Cards issued during
the time period.
The number of Iowa One ATM/PIN debit cards "linked" to checking accounts during
the time period.
Cards that were reported lost or stolen.
B. Please provide samples of customary reporting delivered on a monthly and annual basis.
The bank has attached a report from its QRY internal "core" system , which illustrates how
card transactions are reported .
C. Please explain the Firm's internal process for verifying and reporting data.
Data is pull from reports provide by Shazam. This data is reviewed by staff periodically to
insure the information in correct.
D. What other types of reports may be of interest to the University?
Additional reports that may be of interest to the University include:
A Lost/Stolen cards report for the Iowa One Card(s).
An "accounts closed" report for the Iowa One Cards.
A "funds transfer" report that shows , in aggregate, a count of transactions, and the
sum of total funds transferred from parents to their childrens' checking accounts
(within the confines of established privacy laws).
32
E. What file formats are available for reporting (.pdf, .xis, .bai2, .csv)?
File formats available for reporting include .pdf, .xis, and .csv.
F. What methods of delivery are available for reporting? (e.g. U.S. mail, email, fax, online, etc.)
The bank will ensure that the appropriate delivery method is used, based upon the needs of
UI. Preliminarily , Hills Bank would propose to share the reports via email.
4.2.3.2. Campus ID Cards Implementation
A. Based on previous projects of a similar scope, identify any problematic items and how these
Typical problems associated with implementing campus card programs are outlined below,
along with a description of potential solutions:
Inadequate communication and coordination between the financial institution and the
school. Leadership, relationship management, and careful project documentation is
essential.
Inadequate testing of new cards to assure manufacturing quality and performance at oncampus locations. Technical "surprises" are not unusual and should be anticipated with
a planned multi-testing procedure aimed at "zero defects".
Communicating the program to incoming students for the first time. Direct mail materials
are sometimes delayed by legal reviews causing timing problems in direct mail to
incoming freshmen. This can have the effect of lowering the compensation to the
University. It is essential to work closely with the University to insure adequate time for
obtaining the required approvals so that the marketing plan can be properly executed.
It is important that the program is "transparent" with respect to roles, responsibilities and
accountability. Students may be confused about who is in charge of different aspects of
a program. This can only be mitigated by a concerted and ongoing communications
plan.
B. Provide a schedule showing milestone target dates necessary for full implementation of a
resultant contract.
Hills Bank anticipates that a 5-6 month timeframe will be necessary to launch new Iowa One
Card program. A preliminary schedule including milestone target dates is shown below:
33
Figure 7: Milestone Target Dates
·~H~[=l~~
-
_
Contract Date (CD)
CD+ 10 days
CD+ 15 days
CD+ 20 days
CD+ 20 days
CD+ 25 days
CD+ 30 days
CD+ 45 days
CD + 45 days
CD+ 60 days
CD+ 60 days
CD+ 70 days
CD+ 90 days
CD+ 90 days
CD+ 100 days
CD+ 100 days
3
....
lr{ij'IEf"iiU
hf1H
[[!.1uuu•···~r:u:ll
"1...qten .,.,,
Official Contract Date <Cm
"Project Kick-Off Meeting" with marketing, operations, IT,
and card office staff. Establish one or more project
"workinq qroups" and recurrinq meetinq schedule
Produce initial marketing collateral to announce the
partnership between Hills Bank and UI
Define project requirements, including card encoding
specifications for the ATM/PIN debit and Visa debit Iowa
One Cards
Develop "short list" of ootential new Iowa One Card desians
Hills Bank orders instant eauioment hardware and software
Finalize strategy for summer carding events and identify
mass re-cardinq options
Finalize Iowa One Card design(s). The University will have
final approval. Visa will need to approve the program and
the card design
Install ATMs
Complete construction of Hills Bank branches in IMU and at
University Hospitals
Setup dedicated BINs for both types of Iowa One Card
Produce marketing collateral incorporating new Iowa One
Card(s) in brochure, direct mail, internet content
Installation of instant issuance equipment at Hills Bank's
IMU camous branch
Iowa One Cardstock is fabricated and delivered to campus.
The card fabrication process will include the following
steps:
1. Select card manufacturer; release final artwork to
card manufacturer
2. Hills Bank and UI review card proofs; conduct press
check (optional)
3. Card manufacturer delivers Visa-branded Iowa One
Cardstock to Hills Bank branch at IMU, delivers
ATM/PIN debit Iowa One Cardstock to the Iowa One
Card office
UI and Hills Bank produce test cards to verify that cards are
encoded with the proper encoding format; UI tests cards at
campus readers; Hills Bank links test cards to test accounts
and uses them at ATMs and POS. UI and Hills Bank will
also produce "production" test Iowa One Cards using actual
Visa card stock to test encoding at ATMs, point-of-sale and
at campus readers
Hills Bank trains UI card office staff on banking functionality
available through the Iowa One Card ; UI trains Hills Bank
Days refers to business days.
34
CD+ 100 days
TBD
TSO
TBD
TBD
TBD
TBD
on on-campus card functionality
Projected live date for Iowa One Card I Hills Bank and UI
begin promoting the new card program
Freshman orientation direct mail
First freshman orientation event
Direct mail to returninQ students , faculty and staff
Hills Bank interviews students for staff positions in the IMU
branch
On-campus event(s) staffed by Hills Bank staff to answer
questions and open accounts
Mass re-carding event(s)
[Note: The implementation timeline above and the list of project milestones are preliminary.
A final project schedule will depend upon the contract execution date, the final project
requirements, UI and Visa U.S.A. approval timelines, and the completion of system testing.]
C. How long do you estimate it will take to have all necessary measures in place for the
University-wide issuance of new cards?
Hills Bank anticipates that a 5-6 month timeframe will be necessary to launch the new Iowa
One Cards. The bank would like to discuss with UI options for University-wide issuance of
new cards. The goal would be to start issuing the new Iowa One Cards as soon as possible
during freshman orientation in 2012. The ATM/PIN debit Iowa One Card could potentially
be brought to market faster than the Iowa One Card PLUS. Preliminarily, the bank would
look at fall 2012 to begin mass re-carding activities.
0 . Please explain the Firm 's strategy for engaging University stakeholders. Based on your
Firm's experience, identify individuals and/or groups you believe should be involved or have
ID Card Office Management, because this stakeholder understands current
operations, carding issues, and can provide insights into strategic planning
objectives.
IT staff, because this group supports systems development for the ID card program.
IT is essential for developing technical specifications, testing procedures, and
timelines . It will be important that the University test new card stock to ensure the
cards work on campus readers. IT can also act as a resource for developing webbased functionality or updating the University's website.
Facilities Management. Consultation with this group will be necessary in developing
plans to construct the branches at the IMU and UIHC.
Marketing, because Hills Bank desires to work closely with the University in
developing a marketing program consistent with the values and interests of the
University.
University Legal department, because of the need for approval of marketing
communications, and potential confidentiality or compliance issues.
35
Office of the Treasurer, because this office will be involved with auditing financial
reports and collecting program revenues.
4.2.3.3. Campus ID Cards Financial Partnership
A. Describe in detail any additional unique business features, pricing arrangements, special
services, or other value added services your institution would provide under any agreement
resulting from this Request for Proposal not already discussed.
A five-year financial summary is provided below that shows the important elements of Hills
Banks financial proposal.
Bonus compensation , royalty guarantees, incentive
compensation , rents , and other hard dollar guarantees are stated in detail. The bank's
investment in marketing and promotion, branch construction and staffing, and ATM
machines is also shown.
Table 3: Total Hills Bank Investment
Guaranteed Payments
Signin9 Bonus
Card stock Contribution
Totals
Incentive Payments
SWipe Fee Incentive Payments
SWipe Fee Incentive Payments- Campus student
Organizations
Totals
Guaranteed Payments+ Incentive Payments
Capital Investment and Marketing Support
Branch Construction and staffing
ATM Machines
ATM Operation
Marketin9
Totals
!Total Investment
Year1
125,000
s 50,000
s 100,520
$
50,000
$ 32S,520
$
$
$
s
$
s 1S0,520
Year1
s
-
s
$
7,395
7,39S
$
s
Year 1
S 332,91S
Year 1
260,000
400,000
$ 112.000
$
50,000
$ 822,000
s
s
Year 2
50,000
100,520
$
Year 2
35,21 4
17,043
S2,257
Year 2
S 202,777
Year3
s
50,000
429,200
S Yr Totals
$ 125,000
$ 250,000
$ 613,600
$
S0,000
$ 187,S20 $1 038,600
$ 187,S20
$ 187,S20
Year3
94.281
Year 4
Years
$
s 155,549
$ 191,379
$
28,856
S Yr Totals
476,423
s
s 123,137 s 196,6S9
48,276
$
$ 239,6SS
s
Year 3
S 310,6S7
Year 4
S 384,179
Year S
S 427.175
S Yr Totals
S 1.657.703
Year 4
Years
S Yr Tota.l s
$ 112,000
$ 112,000
$ 40,000
Year 2
s
Years
$
s
s 50,000 $ 50,000
s 137,520 $ 137,520
s
- s
-
-
s 267,200 s
s
s
$ 112,000
Year 4
$
$ 50,000
$ 137,520
$
-
Year 3
334,604
-
$ 112,000
$ 40,000
s 486,604
$
41,110
$
142,680
619,103
s 282,217 s 290,048 s 1,434,069
$
s
- s 400,000
s
40,000
$ 434,217
s 442,048
s
s
S60,000
220,000
$ 2,614,069
I $1 ,154,915 I S 631,977 I S 797,261 I S 818,396 I S 869,223 I $ 4,271,772 I
36
B. Explain how the Firm will assist financially and functionally with the University-wide issuance
of new cards.
The bank will commit $50,000 for new Iowa One card stock and consumables to support
University-wide issuance of new cards. Hills Bank understands that it is critical to have
adequate staffing to assist with card production and new account opening, particularly
during peak carding events. The bank will provide whatever staffing is necessary to support
the card issuance requirements during orientation , or during the back to school rush in the
fall. The bank anticipates working very closely with UI to customize a staffing model around
the requirements of each particular carding event.
Hills Bank will work closely with UI to develop a University-wide re-carding strategy.
Because Hills Bank is a local institution, it can bring significant resources to bear in order to
support all card issuance scenarios, whether at orientation or mass re-carding . Developing
the right re-carding strategy will require UI and the bank to agree upon how to handle the
new card issuance; for example, will existing Iowa One Cardholders be required to get the
new Iowa One Card with Hills Bank, and if so, does UI intend to "turn off' the existing ID in
circulation after a particular cutoff date, effectively forcing everyone to obtain a new ID?
Understanding these issues will help the bank collaborate with UI with regard to the scale
and timing for any mass re-carding events.
Given the number of ID cards currently in circulation, a phased mass re-carding should be
considered. Existing cardholders with a last name starting with A-E (for example) would
have a scheduled time (e.g. the week of September 1-7 between 8 a.m. and 5 p.m.) to pick
up their new ID cards. Anyone choosing the ATM/PIN debit Iowa One Card could have their
card waiting for them to pick up at the scheduled time ; these cardholders would be able to
open their Hills Bank checking accounts before or after getting their new cards . Anyone
choosing the Visa debit Iowa One Card would have their card produced instantly during the
appointed time slot. To encourage everyone to get one of the new Iowa One Cards, UI
would need to instruct all current cardholders that after a predetermined date, the old ID will
cease working.
C. Explain how the Firm will pay royalties to the University. Provide a detailed financial
incentive schedule including, but not limited to: ID card stock, signing bonuses, date(s) of
payment to the University on the attached form (ATTACHMENT 0).
Signing bonus: $125,000, payable at contract execution.
Guaranteed annual royalty: $50,000.
Card stock: The bank will make a contribution of up to $50,000 for new Iowa One
Cardstock and consumables.
Swipe Fees: These payments will be based upon the interchange income collected
by the bank for point of sale debit transactions. The amount of the swipe fee will be
equal to 35% of the total interchange income calculated on a monthly basis. Swipe
37
fees will be paid for all PIN based debit or signature based Visa debit point of sale
transactions for cards linked to an Iowa One Card checking account or University
Employee Advantage checking account, including the Iowa One ATM Card, Iowa
One Card Plus with Visa debit, and any Hills Bank Visa debit card linked to an Iowa
One Card checking account or University Employee Advantage checking account.
In addition, swipe fees will be paid to campus student organizations based upon the
interchange income collected by the bank for point of sale transaction . The amount
of the swipe fee will be equal to 7% of the interchange collected on a monthly basis.
The projected swipe fee revenue to the University is based on a conservative five
year account penetration model that assumes the bank will capture a percentage of
incoming freshman and transfer students each year in addition to faculty and staff.
The model assumes a 50% penetration rate for incoming students by the fifth year
and does not include penetration estimates for the existing student population, which
would significantly increase the projected incentive payments to the University.
0 . Please explain whether or not the University will be given credit in the financial incentive
calculations for existing accounts that can be associated back to the University.
Existing checking accountholders may opt to change their Hills Bank account to the Iowa
One Card checking account or University Employee Advantage checking account for the
University to receive the financial incentive.
E. Describe any additional revenue sharing opporlunities that will exist between the Firm and
the University.
38
Section 5 - Form of Proposal
Automatic Teller Machines, Campus Branch Financial Services and ID Card Financial Related
Services
Request for Proposal Number 14570
To:
The University of Iowa
202 PCO
Iowa City , Iowa 52242 - 2500
5.1 The undersigned Firm, in response to Request for Quotation number 14570, having examined the
General Information, Instructions to Firms, Specifications I Firm Requirement, Scope of Work, Terms and
Conditions, Evaluation Criteria I Method of Award, and , this Form of Proposal, all of which comprise the
Contract Documents, hereby submits its proposal in accordance with the Contract Documents, within the
time set forth therein.
5.2 Firm acknowledges receipt of the following Addenda , which are a part of the Contract Documents:
I
Addendum Number #1
5.3 The sections of this proposal listed below represent trade secrets, proprietary or confidential
information.
Note: Monetary sections of this proposal cannot be withheld as trade secret, proprietary or
confidential information.
If none, mark: None.
Page
No.
Ebid attachment
Subsection/Section
Description
Exhibit IV
26 and 27
4.2.3.A, C, D
Hills Bank ATM Card
Encoding Layout
Card encoding and card
issuance processes
5.4 The undersigned Firm provides the following references as required per the specifications of the
Request for Proposal. The University of Iowa reserves the right to check additional sources or make any
further investigations deemed necessary.
References:
(In addition to the name and address of the organization please include the name of a contact
person, their phone number and e-mail address.)
39
5.5 The Firm states that full compliance with the Contract Documents is maintained in this proposal,
unless otherwise stated on Attachment C, Proposal Compliance Form, submitted in response to this
Request for Proposal number 14570.
5.6 The Firm understands that the University of Iowa reserves, solely, the right to reject any and all
proposals, to waive irregularities, defect, or technicalities in any proposal, and accept any proposal in
whole or in part that it deems to be in its best interest.
5.7 The Firm agrees their proposal is an offer to The University of Iowa that may not be withdrawn for a
period of one hundred twenty (120) calendar days after the opening of the proposals.
5.8 To assist in preparing the Firm's proposal, the Firm is reminded the following documents must
be included with submitted proposal to receive consideration:
1. Section 5, Form of Proposal, pages 21 through 23, completed and signed.
2. Complete detailed responses in numeric order to all requested information and
questions included in Section 3 - Specifications/Firm Requirements.
3. Complete detailed responses in numeric order to all requested information and
questions included in Section 4 - Scope of Work.
4. Attachment A - Proposal Certification Form
5. Attachment B - RFP Response and Firm Question Form
6. Attachment C - Proposal Compliance Form with any exception clearly explained, to the
terms, conditions, or
specifications of Request for Proposal number 14570.
7. Attachment D - Quotations
40
0 .1 - ATM Quotations
0 .2 - Branch Financial Services Quotations
0.3 - ID Card Financial Related Services Quotations
8. Two (2) Certificates of Insurance, one original and one copy.
9. Bankers Blanket Bond or Financial Institutional Bond, one original and one copy.
5.9 The Firm hereby certifies by signing below: that this proposal is genuine and is not made in the
interest of or on behalf of any undisclosed person , firm or corporation ; that the Firm has not directly or
indirectly induced or solicited any other Firm to put in a false or sham proposal ; that the Firm has not
solicited or induced any person, firm or corporation to refrain from bidd ing; and, that the Firm has not
sought by collusion or kickback to obtain any advantage over any other Firm or over The University of
Iowa.
Firm Business Name:
Firm's Official Business Address:
131 Main Street
Hills, IA 52235
42-0310580
Federal Employment Identification
Number:
Firm's State or Foreign Country of
Residence:
Authorized Signature:
Iowa
Name, Printed or Typed:
Dwight 0 . Seegmiller
Title:
President and CEO
Telephone Number:
319-679-2291
Date:
12/2/11
Firm's representative to contact
during normal business hours
regarding this proposal is:
Telephone number of this
representative:
Marty Maiers
E-mail Address of this
representative:
~
k4¥
319-358-2259
[email protected]
41
42
ATTACHMENT A
Proposal Certification Form
202 PCO
Iowa City, Iowa 52242-2500
The undersigned certifies that to the best of her/his knowledge: (check one)
(_K_) There is no officer or employee of The University of Iowa who have, or whose
relative has, a substantial interest in any contract award subsequent to this
proposal.
(__} The names of any and all public officers or employees of The University of Iowa
or the Iowa Board of Regents who have, or whose relative has, a substantial
interest in any contract award subsequent to this proposal are identified by name
as a part of this submittal.
The undersigned further certifies that their firm (check one) __ IS, or, _x._ IS NOT currently debarred,
suspended , or proposed for debarment by any federal or state entity. The undersigned agrees to notify
The University of Iowa of any change in this status, should one occur, until such time as an award has
been made under this procurement action.
In compliance with the Request for Proposal, 14570, after carefully reviewing all the terms, cond itions and
requirements contained therein , the undersigned agrees to furnish such goods/services in accordance
with the specifications I scope of work.
Firm Name:
Firm Address:
131 Main Street
Hills, IA 52235
Signed by:
0
1i,.
J.,.t.< II
Title:
President a d CEO
Phone Number:
319-679-2291
Fax Number:
319-679-2810
Federal ID #:
42-0310580
43
ATTACHMENT B
RFP Response and Firm Questions Form
Email the following Response letter by Tuesday November 8, 2011 to the attention of:
To:
John Hillesland
Purchasing Agent
202 PCO
Iowa City, Iowa 52242
[email protected]
From: Marty Maiers
Senior Vice President of Retail Banking
1401 South Gilbert Street
Iowa City, IA 52240
Marty [email protected]
Ph: 319-358-2259
Fax: 319-679-5536
Dear Mr. Hillesland:
Check all that apply
X
Yes, my Firm WILL respond to Request for Proposal number 14570.
No, my Firm WILL NOT respond to Request for Proposal number 14570.
Please indicate with "X" the items your firm will be
bI"dd'ma on
WILL
WILL NOT
RESPOND
RESPOND
ATM VENUES:
HIGH TRAFFI C STUDENT VENUES
UIHC COMPLEX
SPORTS VENUES
LOW TRAFFIC MIXED USE LOCATIONS (ONE OR
MORE)
BRANCH LOCATIONS :
IMU BRANCH
UIHC BRANCH
ID CARD FINANCIAL RELATED SERVICES:
x
x
x
x
x
x
(must also bid on HIGH TRAFFIC STUDENT A TM
VENUES and encouraged to bid on /MU BRANCH)
x
x
ATM/PIN-based Debit
SiQnature-based Debit
Firm Questions : All questions from the Firms concerning this RFP number 14570 should be emailed to
Purchasing by Tuesday November 8, 2011 3:00 PM CDT.
With all questions submitted, please indicate your complete Firm name, add ress, the name, phone number,
fax number, and e-mail address of the person(s) submitting questions regarding this RFP.
44
ATTACHMENT C
Proposal Compliance Form
Note: Firms must review and respond to the terms and conditions listed in the eBid System.
I hereby certify total compliance with all terms, conditions and specifications of this Request for Proposal
(RFP) Number 14570, except as expressly stated below.
RFP Item Number
Comments
~
y~ J~h j/
Signature:
Name, Printed or Typed: Dwight 0 . Seegmiller
December 2, 2011
Date:
45
ATTACHMENT D-1 Financial Partnership
ATM Revenue I Cost Sharing Quotation Form
Disclose any and all revenue sharing or cost sharing on ATMs and other incentives, as well as
surcharging proposed. Indicate ATM functionality and network membership. The RFP stipu lates a
minimum 5 year contract. Firms may bid on 1 or more of the numbered line items. (See Attachment
E. for specific locations included in each line item .) Firm may also submit one bid to include all ATM
locations. Firms are encouraged to consider cost sharing bids on lower volume A TM locations.
Please indicate annual revenue/cost sharing quotes under 5 and 10 year contract term scenarios .
Annual Revenue I Cost Sharing
(If cost sharing, please indicate
as a negative amount)
Current ATMs Quotation:
5-Year Contract
Term
Surcharg
e per
Transacti
on
Functionality
(Full Function
or Cash
Dispense)
ATM
Network(s)
10-Year
Contract
Term
1-HIGH TRAFFIC STUDENT
VENUES
0
0
See Figure 3
Shazam
2-UIHC COMPLEX
0
0
See Figure 3
Shazam
3-SPORTS VENUES
$(19,200)
0
See Figure 3
Shazam
4-LOW TRAFFIC MIXED USECOLLEGE OF DENTISTRY
0
0
See Figure 3
Shazam
5-LOW TRAFFIC MIXED USECOLLEGE OF LAW
0
0
See Figure 3
Shazam
6-LOW TRAFFIC MIXED USEUNIVERSITY SERVICES BUILDING
0
0
See Figure 3
Shazam
7-LOW TRAFFIC MIXED USECAMPUS RECREATION &
WE LLNESS CENTER
8-LOW TRAFFIC MIXED USEFINKBINE GOLF COURSE
0
0
See Figure 3
Shazam
$(7,200)
0
See Figure 3
Shazam
9-LOW TRAFFIC MIXED USECENTER FOR DISABILITIES &
DEVELOPMENT
10-LOW TRAFFIC MIXED USECOLLEGE OF PUBLIC HEALTH
0
0
See Figure 3
Shazam
0
0
See Figure 3
Shazam
11-Servicing UI Owned/Leased ATMs
See
4.2.1 .K
See Figure 3
Shazam
See Figure 3
Shazam
Proposed New Locations:
12-Quotation for all ATMs
46
ATTACHMENT D-2 Financial Partnership
Branch Financial Services Rent Quotation Form
Specify annual rental arrangements on a square foot basis for financial branch locations. Disclose any
other incentives. Firms may bid on one or more locations. The RFP stipulates a minimum 5 year contract.
Please indicate annual rent payment quotes under 5, 10 and 15 year contract term scenarios.
5-Year
Contract
Term
IMU Branch- Option 1
1
Years 1-3: -500 sq. ft. on 1• Floor
$47,333
Years 4-5: -1200 sq. ft. on Ground Floor
$72,000
IMU Branch- Option 2
1
-440 sq. ft. on 1• Floor
Years 4-5: -1200 sq. ft. on Ground Floor
UIHC Branch
(819 sq. ft. Fountain Entrance)
$65,520
47
Annual Rent (sQ ft)
10-Year
15-Year
Contract
Contract
Term
Term
Other Incentives
ATTACHMENT 0-3 Financial Partnership
ID Card Financial Related Services Quotation Form
Describe and estimate any and all revenue sharing or cost sharing for any proposed ID Card Financial
Related Services and other applicable incentives as outlined below. The RFP stipulates a minimum 5
year contract. Firms bidding on these ID services must also bid on High Traffic Student Venue
ATMs, and are also encouraged to bid on IMU Branch Financial Services.
Please indicate annual revenue/cost sharing quotes under 5 and 10 year contract term scenarios .
Estimated Value over term of
4
Contract
5-Year
Contract
Term
10-Year
Contract Term
Estimated Value
over term of
Contract
ATM/PIN-Based Debit:
One Time Signing Bonus
$125,000
$125,000
Annual Guaranteed Financial Incentive
$250,000
$250,000
Penetration Based Financial lncentive5
$619,103
$619,103
Card Stock
$50,000
$50,000
One Time Signing Bonus
$125,000
$125,000
Annual Guaranteed Financial Incentive
$250,000
$250,000
Penetration Based Financial Incentive
$619,103
$619,103
Card Stock
$50,000
$50,000
Signature-Based Debit:
4
Hills Bank proposes to offer both types of Iowa One Cards. In other words, the Signing Bonus, Annual
Guarantees, Penetration Based Financial Incentive, and Card Stock amounts are the same, regardless of
which type of Iowa One Card is issued, or if both are issued.
5
Hills Bank proposes a "swipe fee" incentive for both types of Iowa One Cards.
48
Appendix
49
Exhibit I: List of Hills Bank ATM Locations
Name
Street
City
St
Zip
County
Availability Services
Casey's ATM
617 42nd Av
Amana
IA
52203
Iowa
Available daily
Cash only
Casey's ATM
130 W Evans St
Williamsburg
IA
52361
Iowa
Available daily
Cash only
Fast Stop ATM
103 S Highland St
Williamsburg
IA
52361
Iowa
Available daily
Coral Ridge Mall ATM
- Center
- Food Court
- Food Court
-West
DeliMartATM
1451 Coral Ridge Ave
Coralville
IA
52241
Johnson
Available daily
Accepts
deposits
Cash only
Coralville
IA
52241
Johnson
Available daily
Cash only
Coralville
IA
52241
Johnson
Available daily
Cash only
Coralville
IA
52241
Johnson
Available daily
Cash only
506 2nd St
Coralville
IA
52241
Johnson
Available daily
Cash only
DeliMart ATM
590 1st Av
Coralville
IA
52241
Johnson
Available daily
Cash only
Hills Bank Coralville
ATM
ATM
ATM
Casey's ATM
1009 2nd St
Coralville
IA
52241
Johnson
24 hr drive-up
1009 2nd St
Coralville
IA
52241
Johnson
24 hr drive-up
1009 2nd St
Coralville
IA
52241
Johnson
24 hr walk-up
310W Main St
Hills
IA
52235
Johnson
Available daily
Accepts
deposits
Accepts
deposits
Accepts
deposits
Cash only
Cold Stone Creamery
ATM
Colonial Lanes ATM
132 E Washington St
Iowa City
IA
52240
Johnson
24 hr
2253 Old Hwy 218 S
Iowa City
IA
52246
Johnson
Available daily
Accepts
deposits
Cash only
Dan's Short Stop ATM
2221 Rochester Av
Iowa City
IA
52245
Johnson
Available daily
Cash only
DeliMartATM
525Hwy1 W
Iowa City
IA
52246
Johnson
Available daily
Cash only
DeliMartATM
1920 Lower Muscatine
Rd
2410 Mormon Trek
Blvd
206 E Benton St
Iowa City
IA
52240
Johnson
Available daily
Cash only
Iowa City
IA
52246
Johnson
Available daily
Cash only
Iowa City
IA
52240
Johnson
Available daily
Cash only
201 S Clinton St
Iowa City
IA
52240
Johnson
24 hr walk-up
201 S Clinton St
Iowa City
IA
52240
Johnson
24 hr walk-up
2621 Muscatine Av
Iowa City
IA
52240
Johnson
24 hr drive-up
1401 S Gilbert St
Iowa City
IA
52240
Johnson
24 hr drive-up
1401 S Gilbert St
Iowa City
IA
52240
Johnson
24 hr walk-up
913 S Dubuque St
Iowa City
IA
52240
Johnson
Available daily
Accepts
deposits
Accepts
deposits
Accepts
deposits
Accepts
deposits
Accepts
deposits
Cash only
504 E Burlington St
Iowa City
IA
52240
Johnson
Available daily
Cash only
2315 Muscatine Av
Iowa City
IA
52240
Johnson
Available daily
Cash only
DeliMart ATM
DeliMart ATM
Hills Bank Iowa City
ATM
ATM
ATM
ATM
ATM
Johnson Co Admin
Bldg ATM
L & M Mighty Shop
ATM
On the Go ATM
50
Image
Deposit
Shazam
Privileged
Status
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Oral B Laboratories
ATM
Suburban Amoco ATM
1832 Lower Muscatine
Rd
1905 Keokuk St
Iowa City
IA
52240
Johnson
Available daily
Cash only
Iowa City
IA
52240
Johnson
Available daily
Cash only
Suburban Amoco ATM
370 Scott Ct
Iowa City
IA
52245
Johnson
Available daily
Sycamore Mall ATM
1600 Sycamore St
Iowa City
IA
52240
Johnson
Available daily
Accepts
deposits
Cash only
Sycamore Mall ATM
1600 Sycamore St
Iowa City
IA
52240
Johnson
Available daily
Cash only
Casey's ATM
595 N Kansas Av
North Liberty
IA
52317
Johnson
Available daily
Cash only
Casey's ATM
625 WZeller St
North Liberty
IA
52317
Johnson
Available daily
Cash only
Hills Bank North
Liberty ATM
Amoco ATM
25 Hwy965 N
North Liberty
IA
52317
Johnson
24 hr drive-up
4141 Center Point Rd
NE
2601 Williams Blvd
SW
222 3rd Av SE
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
Cedar
Rapids
IA
52402
Linn
Available daily
Accepts
deposits
Cash only
IA
52404
Linn
Available daily
Cash only
IA
52401
Linn
Available daily
Cash only
IA
52402
Linn
Available daily
Cash only
IA
52402
Linn
Available daily
Cash only
IA
52404
Linn
Available daily
Cash only
IA
52401
Linn
Available daily
Cash only
IA
52402
Linn
Available daily
Cash only
IA
52404
Linn
Available daily
Cash only
IA
52404
Linn
Available daily
Cash only
IA
52402
Linn
Available daily
Cash only
IA
52405
Linn
Available daily
Cash only
IA
52404
Linn
Available daily
Cash only
IA
52411
Linn
Available daily
Cash only
IA
52405
Linn
Available daily
Cash only
IA
52404
Linn
Available daily
Cash only
IA
52403
Linn
Available daily
Cash only
IA
52403
Linn
Available daily
Cash only
IA
52404
Linn
24 hr walk-up
Cash only
IA
52401
Linn
24 hr walk-up
IA
52402
Linn
24 hr drive-up
IA
52404
Linn
24 hr drive-up
IA
52403
Linn
Available daily
Accepts
deposits
Accepts
deposits
Accepts
deposits
Cash only
IA
52402
Linn
Available daily
Cash only
Amoco ATM
Armstrong Center 2nd
floor ATM
Casey's - Coe College
ATM
Casey's - Kirkwood
College ATM
Casey's ATM
12011st Av SE
3434 1st Av NE
501 6th St SW
Casey's ATM
2018th Av SE
Casey's ATM
1661 32nd St NE
Casey's ATM
380 33rd Av SW
Casey's ATM
130 41st Av Dr SW
Casey's ATM
1495 Blairs Ferry Rd
NE
641 Edgewood Rd NE
Casey's ATM
Casey's ATM
Casey's ATM
3625 Edgewood Rd
SW
5555 Edgewood Rd
NE
701 Ellis Blvd NW
Casey's ATM
20 Miller Av SW
Casey's ATM
3349 Mt Vernon Rd
SE
Hwy 13, 888 Vernon
Valley Dr SE
2121 Arthur Collins
Pkwy SW
240 3rd Av SE
Casey's ATM
Casey's ATM
Eastern Iowa Airport
ATM
Hills Bank Cedar
Rapids ATM
Hills Bank Cedar
Rapids ATM
Hills Bank Cedar
Rapids ATM
Hills Brothers Jiffy Mart
ATM
Lindale Mall ATM
3905 Blairs Ferry Rd
NE
3610 Williams Blvd
SW
1904 Mt Vernon Rd
SE
4444 1st Av NE
51
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
IA
52403
Linn
24 hr
Cash only
Yes
IA
52406
Linn
24 hr
Cash only
Yes
780 N Center Point Rd
Cedar
Rapids
Cedar
Rapids
Hiawatha
IA
52233
Linn
Available daily
Cash only
Casey's ATM
150 Kirkwood Av
Lisbon
IA
52253
Linn
Available daily
Cash only
Hills Bank Lisbon ATM
103 W Main St
Lisbon
IA
52253
Linn
24 hr walk-up
Casey's ATM
2020 7th Av
Marion
IA
52302
Linn
Available daily
Accepts
deposits
Cash only
Casey's ATM
975S11th St
Marion
IA
52302
Linn
Available daily
Cash only
Hills Bank Marion ATM
800 11th St
Marion
IA
52302
Linn
24 hr drive-up
Yes
Yes
Casey's ATM
323 Hwy 30 SW
Mt Vernon
IA
52314
Linn
Available daily
Accepts
deposits
Cash only
Hills Bank Mt Vernon
ATM
P-n-P Gas Station
ATM
Casey's ATM
720 1st Av SE
Mt Vernon
IA
52314
Linn
24 hr drive-up
Yes
Yes
1206 1st St SW
Mt Vernon
IA
5231 4
Linn
Available daily
Accepts
deposits
Cash only
601 E Av
Kalona
IA
52247
Washington
Available daily
Cash only
Hills Bank Kalona ATM
120 5th St
Kalona
IA
52247
Washington
24 hr walk-up
Westside Petro ATM
1031stSt
Kalona
IA
52247
Washington
Available daily
Accepts
deposits
Cash only
Corner Stop ATM
100 E Madison St
Washington
IA
52353
Washington
Available daily
Cash only
Yes
Hills Bank Wellman
ATM
229 8th Av
Wellman
IA
52356
Washington
24 hr walk-up
Accepts
deposits
Yes
Mercy Hospital ATM
70110th St SE
St. Luke's Hospital
ATM
Casey's ATM
1026AAv NE
52
Yes
Yes
Yes
Yes
Yes
Exhibit II: Map of Hills Bank Branch and ATM Location
Hills Bank and Trust Comnanv
C!dor Rapids • Coralville • Hilk • Iowa Oty • Kalona • Lnbon • Marion • Mount Vernon
North Liberty • Wellman • 1-800-4-45-5725 • hillsbank.com • Member FDIC
N
r
Center Point
•
I
I
• Hills Bank Locations
CJ Hills Bank ATM Locations
I
0 alo
BEN T(:)ll
Atkins
•
LI
u
El
J 0 N E S
Marion
•
FJ1•ldx
W.ilrora•
•
E1v
C
•
Swisher •
o Shue1 ,,11.,
Soron
80
D AR
• West 81 anch
0
Wdhamsburg
0 \)
•
• Hills
Kalona
I I
Wash111gton
0
53
~·/est
Liberty
54

Hills Bank and The University of Iowa`s agreement

Transcription

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