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HomeMy WebLinkAboutBanking Services FinalJ:\WORDDOC\RFP\2022 RFP\BANKING SERVICES V3.DOCX VILLAGE OF OAK BROOK 1200 Oak Brook Road Oak Brook, IL 60523 (630) 368-5164 REQUEST FOR PROPOSAL Banking Services December 2022 J:\WORDDOC\RFP\2022 RFP\BANKING SERVICES V3.DOCX TABLE OF CONTENTS Section 1. Request for Proposals ............................................................................................ 1 A. LEGAL NOTICE .................................................................................................................... 1 B. GENERAL INFORMATION ....................................................................................................... 2 Section 2. Scope of Services .................................................................................................. 2 A. DEPOSITORY AND BANKING SERVICES .................................................................................. 2 B. CREDIT CARD SERVICES ....................................................................................................... 5 D. CUSTODY SERVICES ............................................................................................................. 6 E. GENERAL TERMS AND CONDITIONS .................................................................................... 7 Section 3. Proposal ................................................................................................................. 13 A. GENERAL INFORMATION .................................................................................................. 13 Section 4. Review Process .................................................................................................... 14 A. EVALUATION OF PROPOSALS AND SELECTION .................................................................. 14 B. BASIS OF AWARD ........................................................................................................... 15 ATTACHMENT A ..................................................................................................................... 17 ATTACHMENT B ..................................................................................................................... 19 ATTACHMENT D ..................................................................................................................... 21 ATTACHMENT E ...................................................................................................................... 22 j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 1 Section 1. Request for Proposals A. Legal Notice Published December 14, 2022 Village of Oak Brook Request for Proposals Banking Services December 2022 The Village of Oak Brook is soliciting proposals from banking institutions with home offices or branch facilities that are located in or near Oak Brook to provide various banking services. Proposals should be addressed to: Rania Serences Senior Purchasing Assistant Village of Oak Brook 1200 Oak Brook Road Oak Brook, IL 60523 Questions regarding this RFP must be submitted via e-mail. Please direct all questions to: Rania Serences, Senior Purchasing Assistant Village of Oak Brook 1200 Oak Brook Road Oak Brook, Illinois 60523 630-368-5164 630-368-5165 (fax) rserences@oak-brook.org The closing date and time for receipt of proposals is Friday, January 13, 2023 at 3:00 P.M. prevailing time. Proposals received after the submittal time will be rejected and returned unopened to the sender. The complete proposal package, of which this legal notice is a part, is on file for inspection and may be downloaded from the Village’s website at www.oak -brook.org or picked up at the Butler Government Center, 1200 Oak Brook Road, Oak Brook, Illinois 60523, between the hours of 8:00 A.M. and 4:30 P.M., Monday through Friday. There is no charge for the package. The Village reserves the right to reject any or all proposals, waive or not to waive any irregularities therein and to accept the proposal considered being in the best interest of the Village. j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 2 B. General Information Proposals are being solicited from commercial banking institutions with home office or branch facilities located within or near Oak Brook that possess the capability and expertise to provide robust business solutions for depository and various banking services for the Village for the provision of those services set forth below, and to streamline services as well. The Village’s objective is to maximize interest earned, minimize banking costs and improve operational efficiency by using technology. This proposal is divided into three sections, one for each type of service. The banking institution may submit a proposal on any one of the three services. The Village will award the services in the manner which will obtain the highest quality service provided, for the most competitive price. The Village reserves the right to award each service to separate vendors, or one vendor may be awarded all three services. The term of the agreement will be for five (5) years 2023 – 2027. The Village will have the sole option to renew for two (2) additional years (2028 & 2029). Schedule The Village plans to adhere to the following schedule regarding this RFP: Distribute Request for Proposal December 14, 2022 Deadline for written submission of vendor questions or clarifications January 4, 2023 Village’s response to vendor questions January 9, 2023 Sealed responses due to Rania Serences, Senior Purchasing Asst. January 13, 2023 Evaluation Period January 13 – February 10, 2023 Optional Interviews January 13 – February 10, 2023 Recommendation to Village Board/Final Award March 14, 2023 New Contract effective April 1, 2023 (All dates are subject to change) Section 2. Scope of Services A. Depository and Banking Services GENERAL REQUIREMENTS The accounts must be interest bearing and 110% collateralized at all times. Specific collateral requirements can be found in the attached Investment Policy (Attachment D). The bank must be a “sending” and “receiving” bank on the Automated Clearing House System to accommodate payroll disbursements electronically as well as payments for utility bills. The Village will transmit the data to the bank’s processing center electronically. j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 3 DESCRIPTION OF DEPOSITORY AND BANKING SERVICES Data has been provided on the attached Cost Proposal Form (Attachment A) to indicate the average daily balance over the year, the average number of deposits per month, average number of items deposited per month, average number of checks clearing the accounts per month, and various other statistical information which should be helpful in computing the fee arrangement for these accounts. The Village currently utilizes several bank accounts: a General Corporate account for the majority of its deposit activity and a Sports Core account for cash and credit card deposits for the Oak Brook Sports Core. Two zero balance accounts are maintained: an Accounts Payable account for invoice payments to vendors and a Payroll account for bi-weekly payments to employees. The Village currently has controlled disbursement capabilities and structured its accounts in such a way as to maximize interest earnings by never allowing funds to be idle. For this reason, a sweep account structure has been set up for the General Corporate account. Banks submitting a proposal should make recommendations on various alternatives to structuring Village accounts to meet this objective. The Village currently utilizes an arrangement whereby interest is earned and credited to its accounts on a monthly basis, and fees and charges for bank services (as listed in Attachments A & B) are charged directly to its accounts. Please provide your current earnings credit rate offered to public funds depositors and the basis for this rate (90-day T-Bill, LIBOR, etc.). Also, include your earnings credit for the past 12 months. In addition to the services specified on the attached cost proposal form, the following conditions will apply to transactions for these accounts: 1. Interest or the earnings credit shall be credited monthly based upon the average daily balance collected. Credit for items cleared on your bank will be given credit the same day as deposited by the Village. Items clearing at institutions located within the Chicago Federal Reserve Region will be credited within one business day, at a minimum. All other items deposited shall be given credit within two business days, at a minimum. Indicate the cut-off times that deposits must arrive at your facility to accommodate this schedule. 2. It is the pref erence of the Village that deposit discrepancies, should any occur, must be brought to the attention of the Village’s Finance Director, Accountant, or designee on the same day as the discrepancy. A follow-up in writing for any debits/credits made to correct the error is required. Microfilming of all deposit items is required. 3. The depository financial institution shall not return returned checks for deposit items to the accounts. Instead, the check must be presented for payment a second time. A report of first time returned checks is not needed. If the check is returned a second time, the bank must notify the Village by debiting the account, and providing written notification on the same day as the debit is made to the account. 4. Research services, such as scanning, microfilming and other balance inquiries, shall be performed at the request of the Village. Such charges, if any, for those services shall be included in the monthly billing. No charges should be incurred for research services if it is a bank error. j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 4 5. The financial institution shall provide partial reconciliation services on the Village accounts, which will include but not limited to monthly bank statements and check images provided no later than five business days after each month end. In addition to online access to all cleared items, cancelled check images, and wire services. The Village is also interested in access to bank statements and copies of cancelled checks (numerical; front and back) at the end of each month in digital format. 6. The statement date shall be the last day of the month. Bank statement shall be available electronically. Such statement must include all items clearing the accounts. Deposits must be sorted in date order and checks must be sorted in numerical order, the other debit/credit items separated from deposit slips and checks in date order. If it is discovered after delivery of the statement that an item has been omitted from such statement, the bank shall notify the Village immediately and make available electronically to the Village instead of holding it until the next statement date. 7. The financial institution shall provide to the Village, within fifteen business days after the end of a month, a separate account analysis of the Village’s account activity for both the General and the Sports Core accounts, showing the number of the various types of transactions listed on the enclosed information sheet, and the costs assigned to each. Any costs shown on the account analysis not specifically listed on the Cost Proposal Form shall not be considered valid under the contract. Any costs not covered by the contract shall not be charged unless approved by the Village in writing. 8. All funds on deposit must be 110% collateralized at all times by pledged securities in the percentages required by the Village’s Investment Policy. Third party safekeeping is required for all pledged securities. Monthly reports detailing the adequacy of collateral including market value must be supplied by the bank within five (5) business days of the close of each month to the Village via email, fax or mail. All funds on deposit in excess of the FDIC insurance amount shall require the execution of a collateral agreement with the selected financial institution. This agreement shall outline the types of assets that may be utilized as collateral, the amount of collateral required, notification procedures for collateral changes, and methodology. 9. The Village offers direct deposit of payroll to its employees, with approximately 174 employees currently participating in this program. Payroll is bi-weekly on Thursday. The Village presently transmits direct deposit information to the bank by 2:00 p.m. on Wednesday for Thursday credit. In your proposal, please indicate any deadlines required for meeting the Thursday pay schedule. It has not been determined whether the Village will transfer the direct deposit processing of its monthly pension payments for the Police and Firefighters’ Pension Funds to the successful bank. If it were later deemed advisable to change the processor of this service for the pension funds, this would increase the volumes by two (2) transmissions and thirty-six 36 payments per month. In addition, the Village would require software to make the transmission since the payroll software used by the pension funds does not accommodate direct deposit. The bank shall provide at no cost to the Village the following supplies as needed: 1) printed duplicate deposit slips, 2) 5 large locked moneybags (all with same key), 3) coin and bill wrappers, and 4) endorsement stamps: 2 stamps for general account, 2 stamps for Sports Core, 1 stamp for police pension, and 1 stamp for fire pension. j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 5 10. Remote Deposit: To increase efficiency and reduce float, the Village would like to consider Remote Deposit for faster depositing of paper checks. Please outline your services and costs for this technology. 11. Procurement Card Services: To increase efficiency and streamline some departmental purchasing authorities, describe in your proposal procurement card services including interest rates, due dates on billing, and other terms. The procurement card program proposed must be free of annual fees. 12. The Village owns and operates the Oak Brook Sports Core, consisting of a golf course, swim facilities, banquet room, and tennis facilities. The retail nature of this operation necessitates that we frequently obtain change from the bank to facilitate these point-of- sale operations. The need is greatest from April through November, approximately four times per week, and on Saturday. Indicate your bank’s hours of operation and charges that will be assessed for making change so that we may assess your ability to provide this service. 13. The Village requires an electronic method via disk or online service for checks cleared for purposes of bank reconciliations. Indicate your ability to provide this service. 14. The Village is continually looking for better and more efficient ways to make investments and manage cash flow through online banking. State your ability to provide all online banking services to the Village in order to perform more efficiently. 15. The Village provides the option to our water customers to pay their bills by ACH Debit. The Village has approximately 1,629 residential customers billed bi-monthly, and 69 commercial customers billed monthly on ACH Debit. Provide all potential costs associated with this service. 16. The Village provides the option to our vendors to be paid via ACH. The Village will need on-line capability to transmit this file to the bank. Provide all potential costs associated with this service. 17. The Village will be charged monthly for the costs of services listed on the account analysis required in the description of services section. The bank shall charge the General account and the Sports Core account fees associated with the monthly activity. If the compensating balance method is selected, all charges for banking services shall be reported on a monthly account analysis statement rather than being debited directly against the Village’s accounts. All interest earned shall be reported in this same statement to determine the total net debit (due the bank) or credit (due the Village). The net debit or credit will continue to accumulate in the analysis account each month until the end of the calendar year. Any remaining balance at year-end will be paid to the bank (if a debit balance) or to the Village (if a credit balance). B. Credit Card Services The Village accepts customer payments at the Oak Brook Sports Core via American Express, Discover, Master Card, and Visa. The Village currently uses the same bank to handle both depository and credit card services. A separate account handles both cash and credit card deposits for the Sports Core. j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 6 GENERAL REQUIREMENTS The Sports Core processes credit card payments on its Jonas software point of sale system. Shift 4 is the clearinghouse that all charges go through. Data has been provided in the attached Cost Proposal Form (Attachment B). The average monthly volume of credit card payments for the last twelve months was $315,014 from 4,311 transactions. The cost for these items and service fee percentage should be shown on the attached fee schedule (Attachment B). Also, indicate if there are additional charges for manually processed transactions versus swiped transactions. The Village also desires to know if the credit card discount rate will be fixed through the entire term of the contract or under what circumstances this rate will change. Additionally, the B&T Pool and Tennis operations utilize eSoft software, giving members the ability to charge their membership, add money to their pre-paid account, and pay for lessons and guest fees. It is also used at the POS in the poolside café. The processor is Authorize.net. C. Lockbox Services The Village utilizes lockbox services for its water payments, which are processed at the banking institution and a file is uploaded in the Village’s Munis system to post to the customer’s accounts. The cost for this service should be shown on the attached fee schedule (Attachment C). 1. Please describe your lockbox service. 2. Describe your ability to provide lockbox information in a file transfer that includes both data and images. 3. What information can be captured at the lockbox processing location including keying of data unique to the type of data? 4. Please indicate the float times associated with processing lockbox deposits. 5. What are the lockbox deadlines? D. Custody Services The Village wishes to contract for services that will provide the maximum amount of safety for securities while utilizing innovative methods to optimize cash flow from investment securities. The required services are as follows. GENERAL REQUIREMENTS The Village currently has bank custodial services established for the Village’s operating funds. This RFP is only for those services outlined below for the Village’s assets (not Pension Funds). The Village requires that the respondent be a trust department of a domestic bank operating under federal banking laws. The cost proposal for these services should be submitted on Attachment D. The Village is not seeking portfolio management services in this RFP, but will be seeking proposals for portfolio management services as a later time. 1. Securities shall be held by the custodian bank in a Trust Account and the Village shall be provided with a safekeeping receipt for each security held in trust for the benefit of the Village. 2. The custodial bank must be able to accept delivery securities through a correspondent banking relationship in New York City and by the Depository Trust Company of New York (DTC). All securities shall be delivered DVP. j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 7 3. The custodian bank shall provide the Village with a statement of securities held in safekeeping at the end of each month. The Village must receive such reports no later than 10 days after month end. This statement shall include all assets held by the custodian’s correspondent banks as well as those held in DTC. A separate securities holding statement shall be prepared for each of the five advisors as well as a consolidated statement of holdings. These reports shall include the following minimum information for each security held: Securities listed by type; government bonds, corporate bonds, etc. Name of issue CUSIP number Date of purchase Maturity date, if applicable Coupon rate, if applicable Number of shares or bonds Cost value Market value Unrealized gain or loss Interest or dividend received for the period Estimated annual income per issue Gain or loss on sales Activity for the month Advisory fees for the period 4. The Village requires a single safekeeping account for the holding of FED Book Entry securities and for all activity related to such securities. This account shall be interest paying, as either a NOW account or a zero balance (sweep) account that sweeps into an investment eligible for purchase. If the custodian selects a money market mutual fund as the investment vehicle for this account, a current prospectus for the fund must be submitted along with the proposal, and the bank must disclose to the Village if the custodian will receive 12b-a or other fees from the fund and in what amount. These fees will be considered by the Village to be a part of the compensation paid to the custodian. E. General Terms and Conditions 1. The proposal shall be submitted in an opaque sealed envelope on or before the time stated and shall bear the name of the individual, firm, or corporation submitting the Proposal and the Project Name: “Banking Services”. 2. Proposers may attach separate sheets to the proposal for the purpose of explanation, exception, alternate proposal and to cover unit prices, if needed. 3. Proposers may withdraw their proposal either personally or by written request at any time before the hour set for the proposal opening, and may resubmit it. No proposal may be withdrawn or modified after the receipt of proposals except where the award of contract has been delayed for a period of more than ninety (90) days. j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 8 4. In submitting this proposal, the proposer declares that the only person or party interested in the proposal as principals are those named herein, and that the proposal is made without collusion with any other person, firm or corporation. 5. The proposer agrees to execute all documents within this Proposal Package, obtain a Certificate of Insurance for these services and present all of these documents to the Village within fifteen (15) days after the receipt of the Notice of Award and the Agreement by him. 6. By submitting a proposal, the proposer understands and agrees that, if his proposal is accepted, and he fails to enter into an agreement forthwith, he shall be liable to the Village for any damages the Village may thereby suffer. 7. The Village reserves the right to accept the proposal that is, in its judgment, the best and most favorable to the interests of the Village and to the public; to reject the low price proposal; to accept any item of any proposal; to reject any and all proposals; and to waive irregularities and informalities in any proposal submitted or in the RFP process; provided, however, that the waiver of any prior defect or informality shall not be considered a waiver of any future or similar defect or informality. Proposers should not rely upon, or anticipate, such waivers in submitting their proposal. 8. The Village reserves the right to request clarification of information submitted and request additional information as needed. 9. The Village is exempt from Federal excise tax and the Illinois Retailer's Occupation Tax. This proposal cannot include any amounts of money for these taxes. 10. Any contract or agreement resulting from the acceptance of this proposal by the Village shall be on forms either supplied by or approved by the Village's Attorney. The Village reserves the right to reject any agreement that does not conform to the Request for Proposal and any Village requirements for agreements and contracts. 11. The requirements of this RFP will be included in the agreement with the selected firm. 12. If, through any cause, the bank fails to fulfill any of the obligations agreed to in a timely and proper manner, the Village shall have the right to terminate the contract by notifying the bank in writing of such termination at least 15 calendar days in advance of such termination. 13. The term of the agreement will be for five (5) years (2023 – 2027) beginning with the date of acceptance of the bank’s proposal, with two option years (2028 and 2029) extension, at the Village’s sole discretion. All charges for services will be outlined on the attached proposal form. These costs will be fixed during the first five years of the contract. The Village and the bank may mutually agree to Price adjustments for an optional sixth and seventh year at that time. If the bank elects to fix prices for the entire seven-year term, it should be so stated. The bank may pass along costs, which increase due to federally mandated regulations upon submitting written notice of such increase to the Finance Director two months prior to such proposed increase taking effect, and upon demonstration of such mandate. j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 9 14. The Village authorizes the payment of invoices on the second and fourth Tuesday of the month. For consideration on one of these dates, payment request must be received no later than fourteen (14) days prior to the second or fourth Tuesday of the month. 15. The standard proposal form indicates an estimate of the number of transactions for the month in Attachment A, B, C and D. This number is the Village’s best estimate of the average volume and the Village in no way guarantees these as minimum or maximum volumes. 16. Indemnification. The Proposer shall protect, indemnify, save, defend and hold forever harmless the Village and/or its officers, officials, employees, volunteers and agents from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses, including without limitation court costs, insurance deductibles and attorney's fees and expenses, which the Village and/or its officers, officials, employees, volunteers and agents may incur, suffer or sustain, or for which the Village and/or its officers, employees and agents may become obligated by reason for any accident, injury to or death of persons or loss of or damage to property, or civil and/or constitutional infringement of rights (specifically including violations of the Federal Civil Right Statutes), arising indirectly or directly in connection with or under, or as a result of, this or any Agreement by virtue of any act or omission of any of the Proposer's officers, employees, subcontractors, and/or agents, provided that the Proposer shall not be liable for claims, obligations, damages, penalties, causes of action, costs and expenses arising solely by any act or omission of the Village's officers, officials, employees, volunteers and/or agents. The proposer shall hold the Village harmless for any and all claims for labor, material, apparatus, equipment, fixtures or machinery furnished to the proposer for the purpose of performing the work under the contract; and the payment of all direct and indirect damages to any person, firm, company or corporation suffered or sustained on account of the performance of such work during the time the contract is in force. 17. Insurance. Certificates of Insurance and Additional Insured Endorsement shall be presented to the Village within fifteen (15) days after the receipt by the proposer of the Notice of Award and the unexecuted contract, it being understood and agreed that the Village will not approve and execute the contract nor will the bid guarantee be returned until acceptable insurance certificates are received and approved by the Village. Each proposer performing any work pursuant to a contract with the Village of Oak Brook and each permittee working under a permit as required pursuant to the provisions of Title 1, Chapter 8 of the Code of Ordinances of the Village of Oak Brook (hereinafter referred to as "Insured") shall be required to carry such insurance as specified herein. Such proposer and permittee shall procure and maintain for the duration of the contract or permit insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work under the contract or permit, by either the proposer, permittee, or their agents, representatives, employees or subcontractors. A proposer or permittee shall maintain insurance with limits no less than: j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 10 A. General Liability - $2,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage, provided that when the estimated cost of the work in question does not exceed $5,000, the required limit shall be $500,000; B. Automobile Liability (if applicable) - $1,000,000 combined single limit per accident for bodily injury and property damage; C. Worker's Compensation and Employer's Liability - Worker's Compensation limits as required by the Labor Code of the State of Illinois and Employer's Liability limits of $1,000,000 per accident. Any deductibles or self-insured retention must be declared to and approved by the Village. At the option of the Village, either the insurer shall reduce or eliminate such deductible or self-insured retention as respects the Village, its officers, officials, employees and volunteers; or the Insured shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses to the extent of such deductible or self-insured retention. The policies shall contain, or be endorsed to contain, the following provisions: D. General Liability and Automobile Liability Coverage - (1) The Village, its officers, officials, employees and volunteers are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of the Insured; premises owned, occupied or used by the Insured. The coverage shall contain no special limitations on the scope of protection afforded to the Village, its officers, officials, employees, volunteers or agents. (2) The Insured's insurance coverage shall be primary insurance as respects the Village, its officers, officials, employees, volunteers and agents. Any insurance or self-insurance maintained by the Village, its officers, officials, employees, volunteers or agents shall be in excess of the Insured's insurance and shall not contribute with it. (3) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Village, its officers, officials, employees, volunteers or agents. (4) The Insured's insurance shall apply separately to each covered party against whom claim is made or suit is brought except with respect to the limits of the insurer's liability. E. Worker's Compensation and Employer's Liability Coverage The policy shall waive all rights of subrogation against the Village, its officers, officials, employees, volunteers and agents for losses arising from work performed by the insured for the Village. j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 11 Each insurance policy shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail has been given to the Village. Each insurance policy shall name the Village, its officers, officials and employees, volunteers and agents as additional Insureds. Insurance is to be placed with insurers with a Best's rating of no less than A: VII. Each Insured shall furnish the Village with certificates of insurance and with original endorsements effecting coverage required by this provision. The certificate and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms approved by the Village and shall be subject to approval by the Village Attorney before work commences. The Village reserves the right to require complete, certified copies of all required insurance policies, at any time. Each insured shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. 18. Equal Opportunity. The proposer will not discriminate against any employee or applicant for employment because of race, color, religion, sex, ancestry, national origin, place of birth, age or handicap unrelated to bona fide occupational qualifications. 19. Execution of Documents. The Proposer, in signing his Proposal on the whole or on any portion of the work, shall conform to the following requirements: Proposals signed by an individual other than the individual represented in the Proposal documents shall have attached thereto a power of attorney evidencing authority to sign the Proposal in the name of the person for whom it is signed. Proposals, which are signed for a partnership, shall be signed by all of the partners or by an attorney-in-fact. If signed by an attorney-in-fact, there shall be attached to the Proposal a power of attorney evidencing authority to sign the proposal, executed by the partners. Proposals, which are signed for a corporation, shall have the correct corporate name thereof and the signature of the President or other authorized officer of the corporation manually written below the corporate name. If an official other than the President of the Corporation manually signs such Proposal, a certified copy of a resolution of the board of directors evidencing the authority of such official to sign the Proposal should be attached to it. Such Proposal shall also bear the attesting signature of the Secretary of the corporation and the impression of the corporate seal. The Contract shall be deemed as have been awarded when formal notice of award shall have been duly served upon the intended awardee. 20. Non-Discriminating. The Proposer, its employees and subcontractors, agrees not to commit unlawful discrimination and agrees to comply with applicable provisions of j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 12 the Illinois Human Rights Act, the U.S. Civil Rights Act and Section 504 of the Federal Rehabilitation Act, and rules applicable to each. 21. Negotiations. The Village reserves the right to negotiate specifications, terms, and conditions, which may be necessary or appropriate to the accomplishment of the purpose of the RFP. The Village may require the entire proposal be made an integral part of the resulting contract. This implies that the Village as contractually binding on the successful proposer will hold all responses, supplemental information, and other submissions provided by the proposer during discussions or negotiations. 22. Incurred Costs. The Village will not be liable in any way for any costs incurred by respondents in replying to this RFP. Proposer agrees to comply with all laws, ordinances, and rules of the Village and the State of Illinois. 23. Proposers Responsibilities. The selected Proposer will be required to assume responsibility for all services offered in this proposal. The Owner will consider the selected Proposer to be the sole point of contact with regard to contractual matters, including payment of any and all charges resulting from the contract. 24. Default. The contract may be canceled or annulled by the Owner in whole or in part by written notice of default to the Proposer upon nonperformance or violation of contract terms. An award may be made to another offeror with services similar to those so terminated. Failure of the Proposer to deliver services within the time stipulated on his offer, unless extended in writing by the Owner, shall constitute contract default. 25. Independent Contractor – There is no employee/employer relationship between the Proposer and the Village. Proposer is an independent contractor and not the Village’s employee for all purposes, including, but not limited to, the application of the Fair Labors Standards Act minimum wage and overtime payments, Federal Insurance Contribution Act, the Social Security Act, the Federal Unemployment Tax Act, the Worker’s Compensation Act (820 ILCS 305/1, et seq.). The VILLAGE will not (i) provide any form of insurance coverage, including but not limited to health, worker’s compensation, professional liability insurance, or other employee benefits, or (ii) deduct any taxes or related items from the monies paid to Proposer. The performance of the services described herein shall not be construed as creating any joint employment relationship between the Proposer and the Village, and the Village is not and will not be liable for any obligations incurred by the Proposer, including but not limited to unpaid minimum wages and/or overtime premiums, nor does there exist an agency relationship or partnership between the Village and the Proposer. 26. Governing Law – The laws of the State of Illinois as to interpretation, performance and enforcement shall govern this Agreement. The forum for resolving any disputes concerning the parties’ respective performance or failure to perform under this Agreement shall be the Circuit Court for the Eighteenth Judicial Circuit, DuPage County, Illinois. j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 13 Section 3. Proposal A. General Information Four (4) copies of the proposal shall be submitted in a sealed envelope to: Rania Serences Senior Purchasing Assistant Village of Oak Brook 1200 Oak Brook Road Oak Brook, IL 60523 and clearly marked on the outside of the envelope “Banking Services” on or before 3:00 p.m. Friday, January 13, 2023. Proposals received after the submittal time will be rejected and returned unopened to the sender. In addition to items mentioned elsewhere in this RFP, the following information needs to be provided: 1. A description of the bank and its relevant prior experience with municipal clients. 2. Identification of key staff to be assigned to the Village’s account and a statement of staff experience. 3. Location and hours of operation for the office or branch that will serve the Village. 4. Completion of Attachments A, B, C and D indicating the proposed fee schedule. 5. If a Money Market Mutual Fund will be used as the sweep account for the cash clearing contributions account, enclose a current prospectus for the fund as well as a rate history for the prior twelve-month period. 6. Any additional information that may describe your institution’s unique ability to provide the services requested by the Village. 7. A statement addressing your ability to provide on-line banking access to the Village. 8. Please provide samples of the following documentation. 1. Wire transfer and ACH agreements and forms 2. Signature cards 3. System authorization forms 4. System security policy 5. Lockbox services instructions 6. Merchant card services agreements and current VISA/MC interchange rates 7. Contract for deposit of monies 8. Website capabilities and design 9. Securities Holding Statement j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 14 10. Consolidated Statement of Holdings 11. Trading Authorization Forms 12. Standard Custodial Agreement 9. Implementation Plan The Village requires a smooth and efficient transition to a financial services provider or enhanced service with its existing banking institution. Please provide a sample implementation plan that describes the bank’s process for transitioning the Village from one bank to another. This plan should include the following: 1. Timeline in weekly increments with major implementation milestones 2. Description of conversion team and responsibilities of each member 3. Responsibilities of the Village during the transition 4. Any costs associated with the transition 5. Training that will be provided to employees 6. Explain how the bank will handle day-to-day problem resolution during the transition. This would include customer service contacts for all types of bank services – deposit account set-up, electronic funds transfers, credit cards, lockbox, system implementation, etc. 10. References Please provide six (6) references (a minimum of three (3) must be governmental accounts) to which the proposer is currently providing banking services. Include client name, contact person, phone numbers and services utilized. Lengthy, detailed proposals are not required. Proposals are intended to be an expression of interest in providing services for the project, as well as background information on the firm and on its professional qualifications. Section 4. Review Process A. Evaluation of Proposals and Selection The proposals received will be evaluated by the Village on the basis of professional qualifications, previous experience on similar projects, key personnel assigned to the project, satisfaction of previous clients on work performed for them, current billing rates of the firm, and the proposal that best meets the needs of the Village. This proposal is not intended to be detailed; it is intended to be an expression of interest in providing services for the project, as well as to provide background information on the firm and its professional qualifications. Firms will be contacted during the evaluation if further information is needed. The Village may choose to interview one or more firms before final selection is made. This Request for Proposal does not commit the Village to award a contract, to pay any costs incurred in the preparation of a proposal based on this request, or to procure or contract for services. All proposals submitted in response to this Request for Proposal become the property of the Village. The Village reserves the right to accept or reject any or all proposals received as a result of this request, to negotiate with qualified consultants, or to cancel in part or in its entirety the Request for Proposal, if it is in the best interest of the Village to do so. The Village may require j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 15 the consultant selected to participate in negotiations concerning contract price or the nature and extent of services to be provided. The results of such negotiations shall be incorporated into the final contract between the Village and its consultant. B. Basis of Award Village staff will perform an evaluation of the proposals received. Appropriate finalist(s) may be interviewed by the Village, after which a selection will be made. The Village reserves the right to reject any or all proposals, to waive any informality or technical error, and to accept any proposal deemed most favorable to the interests of the Village. The Village will review proposals based on the following criteria: 1. Compliance with RFP. Adherence to all conditions and requirements of the RFP. 2. Understanding of the Project. The proposer’s understanding of the engagement, the Village’s objectives, and the nature and scope of the work involved. 3. Services to be Provided. The exact type and nature of the proposed services and how they accomplish the objectives of the project. 4. Qualifications of the Proposer. The proposer’s capability in all respects to perform fully all contract requirements, and the integrity and reliability, which will assure good faith performance. This criterion includes: • The experience of the firm and its record on projects of a similar nature. • Personnel to be assigned to the project, their education, qualifications, and experience on similar projects. • The availability of necessary personnel and other resources to successfully complete the project specified herein on a timely basis. 5. Costs. Proposed contract price. 6. Ability, capacity and skill to fulfill the contract as specified. 7. Ability to supply the commodities; provide the services or complete the construction promptly, or within the time specified, without delay or interference. 8. Character, integrity, reputation, judgment, experience and efficiency. 9. Quality of performance on previous contracts. 10. Previous and existing compliance with laws and ordinances relating to the contract. 11. Sufficiency of financial resources. 12. Quality, availability and adaptability of the commodities, services or construction, in relation to the Village’s requirements. j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 16 13. Ability to provide future maintenance and service under the contract. 14. Number and scope of conditions attached to the proposal. 15. Record of payments for taxes, licenses or other monies due the Village. j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 17 ATTACHMENT A VILLAGE OF OAK BROOK DEPOSITORY AND BANKING SERVICES COST PROPOSAL FORM If there is no charge for an item, indicate by noting N/C in the unit price column. Estimated Average Volume Price Extended Per Month Per Unit Cost General Account Services: Account Maintenance 2 ZBA Account Maintenance 2 Regulatory Assessment Fees Average Daily Balance $4,182,557 Depository Services: Deposit Checks On-Us 75 Deposit Checks Transit 275 Deposit 115 Deposit Items Returned 2 Disbursement Services: Checks Paid/Debits Posted 298 Stop Payments 1 Automated Clearing House: ACH Origination 1373 ACH Debit/Credit Return 6 ACH Transmission 8 ACH Credits Received 201 ACH Debits Received 62 Funds Transfer Services: Outgoing Wires 4 Incoming Wires 5 Reconciliation Services: Miscellaneous services: ZBA Automated Credit 45 ZBA Automated Debit 45 On-line Banking 1st Account 1 On-line Banking Addt’l Acct 3 j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 18 Estimated Average Volume Price Extended Per Month Per Unit Cost Optional Services: Research services Remote Deposit Equipment 1 Remote Deposit Service 1 Other Charges not listed (itemize): j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 19 ATTACHMENT B VILLAGE OF OAK BROOK CREDIT CARD SERVICES COST PROPOSAL FORM If there is no charge for an item, indicate by noting N/C in the unit price column. Estimated Average Volume Price Extended Per Month Per Unit Cost Credit Card Services: Discover Transactions 123 MasterCard Transactions 975 Visa Transactions 2,845 American Express Transactions 368 Average Monthly Sales $315,014 Visa/MasterCard Discount Rate Chargeback Fee Per Item Monthly Account Service Fee Annual Fee Application Fee Business or Corporate Visa/MC Fee Debit Card fee Hand Keyed Transaction Fee Procurement Card Rebate (if applicable) Other Charges not listed (itemize): j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 20 ATTACHMENT C VILLAGE OF OAK BROOK LOCKBOX SERVICES COST PROPOSAL FORM If there is no charge for an item, indicate by noting N/C in the unit price column. Estimated Average Volume Price Extended Per Month Per Unit Cost Lockbox Services: Maintenance 2 Processing Scanned Items 630 Processing Wholesale Items 156 Non-Processed Items 1 Lockbox Internet Images 840 Lockbox Item Processed 787 Lockbox Mail Items 2 Other Charges not listed (itemize): j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 21 ATTACHMENT D VILLAGE OF OAK BROOK CUSTODY SERVICES COST PROPOSAL FORM Estimated annual volume of activity: Average number of transactions, sales, purchases and maturities 5 Coupon collections 10 Average Ending Balance $5,000,000 Please indicate the method of compensation for custody services by selecting one of the options below. Proposed pricing may be submitted in three different formats: 1. Flat annual fee for all services requested. _______________. 2. Fee proposed as a percentage of assets of the Village. Number of basis points (1/100th of 1 percent): ____________. 3. Detailed per item fee schedule, which may be included as a base fee, holding fee per security, wire fees, delivery fees, statement fees, maintenance fees, credit and debit fees etc. Describe: . Based on the above volume of activity, the annual fee would be $ . j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 22 ATTACHMENT E THIRD AMENDED VILLAGE OF OAK BROOK INVESTMENT POLICY SCOPE This policy governs the investment practices of all funds of the Village of Oak Brook, excepting the Police Pension Fund and the Firefighters' Pension Fund, which are governed by the Boards of Trustees of each fund and who determine investment policies of those funds, in accordance with applicable law. The funds governed by this policy are accounted for in the Village's Comprehensive Annual Financial Report and include the General Corporate Fund, Special Revenue funds, Capital Project funds, Enterprise funds, Internal Service funds, and any other funds that may be created from time to time. All transactions involving the financial assets and related activity of the foregoing funds shall be administered in accordance with the provisions of this policy. OBJECTIVES 1. Safety of Capital - Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is desired in order to avoid incurring unreasonable risks from concentrating investments in specific security types and/or particular financial institutions. 2. Liquidity - The Village's investment portfolio shall remain sufficiently liquid to enable the Village to meet all operating requirements, which may be reasonably anticipated in any Village fund. Maturities of investments in all funds covered by this policy shall not exceed five years, unless the Board of Trustees approves a temporary extension of maturities. 3. Maintenance of Public Trust - All participants in the investment process shall seek to act responsibly as custodians of the public trust and shall avoid any transaction that might impair public confidence in the Village. 4. Prudence - Investments shall be made with judgment and care under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the "prudent person" and shall be applied in the context of managing the overall portfolio. RESPONSIBILITY Management responsibility for the investment program of the Village of Oak Brook is hereby delegated to the Finance Director/Treasurer, who shall direct the investment program in a manner consistent with this policy. The Finance Director/Treasurer shall be responsible for all transactions undertaken, shall establish a written system of controls to regulate the activities of subordinate employees, and shall provide written approval for each investment placement. j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 23 INVESTMENT INSTRUMENTS The Village may invest in any type of investment instrument permitted by Illinois law, as described in Chapter 30 of the Illinois Compiled Statutes, 30 ILCS 235/2. Permitted investment instruments include: 1. Bonds, notes, certificates of indebtedness, Treasury bills or other securities, which are guaranteed by the full faith and credit of the United States of America as to principal and interest. 2. Bonds, notes, debentures, or other similar obligations of the United States of America or its agencies. 3. Commercial paper, provided that, (a) the issuer is a U.S. Corporation with more than $500 million in assets, (b) the security is rated within the 3 highest classifications by two standard rating services, (c) the security will mature within 180 days of purchase, and (d) such purchase does not exceed 10% of the issuer's outstanding obligations. 4. The State of Illinois Public Treasurer's Investment Pool. 5. Money market mutual funds, which are registered under the Investment Company Act of 1940, provided the portfolio is limited to bonds, notes, certificates, treasury bills, or other securities, which are guaranteed by the United States of America as to principal and interest. 6. Repurchase Agreements, which are collateralized by full faith and credit U.S. Treasury securities. 7. Short term discount obligations of the Federal National Mortgage Association. 8. Insured accounts of credit unions whose principal office is in Illinois. For purposes of this section, the term "agencies of the United States of America" include: the federal land banks, federal intermediate credit banks, banks for cooperative, federal farm credit banks, or any other entity authorized to issue debt obligations under the Farm Credit Act of 1971; the federal home loan banks and the federal home loan mortgage corporation; and any other agency created by act of Congress. This policy expressly prohibits investments in derivative type securities. DIVERSIFICATION It is the policy of the Village to diversify its investment portfolio. Investments shall be diversified in order to reduce the risk of loss resulting from concentration in a specific maturity, issuer, or class of securities. In order to achieve a diversified investment portfolio, no one financial institution shall hold more than 25% of the Village's investments, exclusive of securities guaranteed by the full faith and credit of the United States of America or obligations of the United States of America agencies. j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 24 COLLATERALIZATION 1. It is the policy of the Village to require that all deposits in excess of FDIC insurable limits, except those in the Illinois Metropolitan Investment Fund (IMET), be secured by collateral to protect public deposits in a single financial institution if it were to default. 2. Eligible collateral instruments and collateral ratios (market value divided by deposit) are as follows: a) U.S. Government Securities = 110% b) Obligations of Federal Agencies = 115% c) Obligations of the State of Illinois = 115% d) Local and Municipal Bonds rated “A” or better = 115% by Moody’s The ratio of fair market value of collateral to the amount of funds secured shall be reviewed at least quarterly and additional collateral shall be requested when the ratio declines below the level required. 3. Safekeeping of Collateral a) Third party safekeeping is required for all collateral. To accomplish this, the securities can be held at the following locations: 1) A Federal Reserve Bank or branch office. 2) At another custodial facility - generally in a trust department through book-entry at the Federal Reserve, unless physical securities are involved. If physical securities are involved, at a third party depository in a suitable vault and insured against loss by fire, theft and similar causes. 3) By an escrow agent of the pledging institution. b) Safekeeping of collateral shall be documented by a written agreement approved by the Village. This may be in the form of a safekeeping agreement, trust agreement, escrow agreement or custody agreement. c) Substitution or exchange of securities held in safekeeping as collateral may occur without prior written notice to the Village provided that the market value of the replacement securities are equal to or greater than the market value of the securities being replaced. The Village shall be notified in writing within two days of all substitutions. SAFEKEEPING OF SECURITIES 1. Third party safekeeping is required for all securities owned by the Village. To accomplish this, the securities shall be held in a trust department through book-entry at the Federal Reserve. 2. Safekeeping shall be documented by an approved written agreement. The agreement may be in the form of a safekeeping agreement, trust agreement, escrow agreement or custody j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 25 agreement. The Village and the safekeeping bank selected by the Village shall mutually agree upon fees for this service. QUALIFIED FINANCIAL INSTITUTIONS All depositories of the Village shall execute a contract every three years, which shall designate the requirements of serving as depository for the Village, including collateralization of Village funds invested at such depository and the related safekeeping requirements of pledged securities. The Village shall have a separate contract with an “operating bank” for demand deposits, which shall also execute a contract with the Village for such service at least once every three years. Such financial institutions shall provide such financial data to the Finance Director/Treasurer as may be required by the Finance Director/Treasurer to evaluate the financial condition of the institution. Such data may be in the form of audited financial statements, FDIC regulatory reports, and shall be provided at least annually to the Finance Director/Treasurer. Any refusal to provide such information to the Village may cause termination of the depository contract with such institution. 1. Depositories - Demand Deposits a) The Village shall select one financial institution to provide operating banking services including, but not limited to checking accounts, wire transfers, credit card processing, ACH processing, etc. b) The Village shall not maintain funds in any financial institution that is not a member of the FDIC. In addition, the Village shall not maintain funds in any institution not willing or capable of posting required collateral for funds in excess of FDIC insurable limits. c) Fees for banking services shall be mutually agreed to by an authorized representative of the depository bank and the Village from time to time. 2. Depositories - Certificates of Deposit Any financial institution selected to be eligible for the Village's competitive certificate of deposit purchase program must meet the following requirements. a) Shall provide wire transfer and safekeeping services. b) Shall be a member of FDIC system and shall be willing and capable of posting required collateral for funds in excess of FDIC or insurable limits. 3. The total amount of Village funds deposited and/or invested in a financial institution shall not exceed 25% of the institution's capital stock, surplus, and undivided profits. PERFORMANCE STANDARDS The investment portfolio will be managed in accordance with the parameters specified within this policy and shall strive to attain a market average rate of return that exceeds the interest rate on 90 day U.S. Treasury Bills, taking into account the Village’s risk constraints, cash flow characteristics, and legal restriction on eligible investments j:\worddoc\rfp\2022 rfp\banking services v3.docx Page 26 REPORTING On a monthly basis, the Finance Director/Treasurer shall submit to the Village Board an investment report that shall describe the portfolio in terms of investment securities, maturities and cost by fund, market value, and earnings for the current period and year to date. On an annual basis, the Finance Director/Treasurer shall submit a comprehensive annual report on the investment program and activity, including a review of the overall performance for the year. POOLING OF CASH AND INVESTMENTS The Village may pool the cash and investments of various funds in order to maximize investment earnings. Investment income shall be allocated to the various funds based upon their respective participation. ETHICS AND CONFLICTS OF INTEREST Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions. INDEMNIFICATION Investment officers and employees of the Village acting in accordance with this Investment Policy and such written procedures as have been or may be established, in relation thereto, and exercising due diligence, shall be relieved of personal liability for an individual security's credit risk or market changes. AMENDMENT This policy may be amended by the Village President and Board of Trustees, upon recommendation of the Finance Director/Treasurer and Village Manager. CONFLICT In the event of any conflict between this Policy and the Illinois Compiled Statutes or case decisions of the State of Illinois, the Statutes and case law decisions shall control. ADOPTION Adopted as amended by the Village President and Board of Trustees by Ordinance # S-1185 on February 27, 2007.