R-730 - 09/28/1999 - FINANCE - Resolutions Supporting Documents 4�.OF •R�
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C'OUNT`S
VILLAGE OF OAK BROOK
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS 60523- 2255
PHONE: 630 990-3000
FAX- 630 990-0876
W E B S I T E: www.oak-brook.org
Date: September 23, 1999
To: Village President and Board of Trustees
From: Darrell Langlois
Recommendation: The Village President and Board of Trustees:
1. Authorize execution of a contract with American National Bank
of Chicago for banking services.
2. Authorize execution of a contract with Oak Brook Bank for
custody services.
3. Approve the attached resolution regarding banking services
relating to third party safekeeping of collateral pledged on
Village deposits.
At the Village Board meeting of July 27, 1999, authorization was given to staff to
negotiate a contract with American National Bank of Chicago for banking services and
Oak Brook Bank for custody services (a copy of my original recommendation
memorandum is attached). The contact for banking services references the Request for
Proposal, the bank's Proposal, and a letter sent to me on August 30, 1999 clarifying
some pricing issues contained in the bank's proposal. This contract will provide for a
wide range of banking services including deposit processing, check clearing, account
maintenance, payroll direct deposit, and bank card processing. Based on average
monthly volumes, the fees on the Village's accounts will approximate $4,250 monthly.
However,for the first time the Village will earn interest on its deposits. This should more
thar offset banking charges, exclusive of the fees paid for bank card processing.
The contract with Oak Brook bank for custody services is essentially the same
agreement currently in effect, with the exception of a slight increase in the base annual
fee from $720 to $756. This service covers the safekeeping of Village-owned
investments, which are held in electronic form.
In order to secure Village deposits in excess of FDIC limits, the Village's investment
Policy requires that collateral be pledged for all deposits in excess of$100,000. It is also
required that a third party hold the collateral. American National Bank utilizes the
Federal Reserve Bank of Chicago as its third party custodian. The attached resolution is
required by the Federal Reserve Bank in order for them to hold the collateral pledged on
Village deposits. Please note that collateral will be a lesser issue with American
National Bank than our current banking arrangement in that excess funds will be
invested overnight in a money market account, with the investments underlying the
money market account serving as the"collateral"for the Village's deposits.
The actual process of changing banks will be done over a period of time as there will be
numerous steps in the process. These steps include executing various documents
relating to account set-up, ordering new check stock, installation of computer software
for on-line banking, installation of new bank card processing equipment, etc. We
anticipate beginning the transition by November 1, and will likely close out our old
accounts early in 2000.
Please let me know if you have any comments or questions.
olio-73°
7. C. 2)continued
Woodside residential area: Patching and resurfacing with addition
of concrete shoulders
with uniform pavement width. Roadside
drainage swales may be restored or modified on some streets.
Hickory Drive
Mradowood Drive
Palisades Drive
Wood Glen Lane
Woodridge Drive
Woodside Drive
Completion of resurfacing and the addition of
Old Harger Road: Comp a short ection of concrete shoulders f°xsng Program Old Harg er Road beside
the Tollway from the 1999 Pav
pavement change east of Spring Road.
Harger Road—York Road to atching. Some widening at curves
O __ 2°' overlay, less than 14% patching.
be needed to obtain two
may be included and some widening ales may be restored on the
11-foot lanes. Roadside drainage pavement and pavement marking
south side at the west end. The p
,ht turn lane on York Road will bnortth wil
for the southbound rig l
Slight distance and sight lines from Harger Road looking
be studied to determine if modifications can be made to reduce
accident potential. BANKING S
RES.aj•ri•e
7. C 3) BAhI1CING SERVICES: R-730 At the Village Board meeting of July 27, 1999, authorization was
given to staff to negotiate a contract Oak American aNational for custody
g services and
of Chicago for banking services references the Request
services. The contract for banking
for Proposal, the bank 1999 clarifying some pricing
's proposal, and a letter sent to Finance
Director Langlois, on August 30,
o
ng,
posal• This contract will provide
for a wide range of banking sery ices including deposit processi
issues contained in the bank's pr
a oll direct deposit, and
ch°ck clearing, account maintenance, p yr
bank card processing. Based on average monthly volumes, the t ly
on the Village's accounts will approximate $4,
ill earn interest on its
However, for the first time the Villagbank
of the fe es p aid for charges, exclusive
deposits should r bank card processing.
VILLAGE OF OAK BROOK Minutes Page 6 of 12 September 25, 1999
. �
The contract with Oak Brook Bank for custody services is
essentially the same agreement currently in effect, with the
exception of a slight increase in the base annual fee from $720 to
$755. This service covers the safekeeping of Village-owned
investments,which are held in electronic form.
In order to secure Village deposits in excess of FDIC limits, the
Village's investment policy requires that collateral be pledged for
all deposits in excess of$100,000. It is also required that a third
party hold the collateral. American National Bank utilizes the
Federal Reserve Bank of Chicago as its third party custodian. The
resolution is required by the Federal Reserve Bank in order for
them to hold the collateral pledged on Village deposits. Please note
that collateral will be a lesser issue with American National Bank
than our current banking arrangement in that excess funds will be
invested overnight in a money market account,with the investments
underlying the money market account serving as the"collateral' for
the Village's deposits.
The actual process of changing banks will be done over a period of
time as there will be numerous steps in the process. These steps
include executing various documents relating to account set-up,
ordering new check stock, installation of computer software for on-
line banking, installation of new bank card processing equipment,
etc. Staff anticipates beginning the transition by November 1, 1999
and will likely close out the Village's old accounts early in 2000.
Motion by Trustee Caleel, seconded by Trustee Kenny to authorize
execution of a contract with American National Bank of Chicago
for banking services; authorize execution of a contract with Oak
Brook Bank for custody services, and approve Resolution 1999-FI-
BNKSRV-R-730, "A Resolution Regarding the Banking Services
Relating to Third Party Safekeeping of Collateral Pledged on
Village Deposits." ROLL CALL VOTE:
Ayes: 5—Trustees Caleel, Craig, Kenny, McInerney and Savino
Nays: 0—None.
Absent: 1 —Trustee Butler. Motion carried.
7. C. 4) AMBULANCE BILLING SERVICES: AMBULANCE
BILLING sERV.
The Village notified five companies of our Request for Proposals
and published the standard legal notice. We received proposals
from two companies — Total Billing Solutions, Inc. (TBS) and
Metro Paramedic Services, Incorporated.
VILLAGE OF OAK BROOK Minutes Page 7 of 12 September 28, 1999