VILLAGE OF FRANKFORT REQUEST FOR PROPOSALS BANKING SERVICES

Transcription

1 September 17, 2015 VILLAGE OF FRANKFORT REQUEST FOR PROPOSALS BANKING SERVICES I. CALL FOR PROPOSALS The Village of Frankfort, Illinois, will receive proposals at the Village Administration Building, 432 W. Nebraska Street, Frankfort, IL, 60423, until 10:00 A.M. on Monday, October 19, Proposals received after the deadline will not be considered. Proposals must be enclosed in sealed envelopes indicating Sealed Proposal Banking Services. Please provide two bound copies of the proposal and one electronic copy on a CD. The Village Board of Trustees reserves the right to accept or reject any and all proposals. Questions should be addressed to: Rob Piscia, Finance Director Village of Frankfort 432 W. Nebraska Street Frankfort, IL II. INTRODUCTION The Village of Frankfort, Illinois, invites commercial banking institutions with home offices or branch facilities within the village limits of Frankfort, Illinois, who possess the capability and expertise to provide depository and various banking services to the Village, to submit proposals for the provision of those services according to the requirements set forth in this document. The purpose of this process is to identify the banking institution that can offer the highest quality service at the lowest cost to the taxpayers. A. General Information The Village of Frankfort was founded in 1855 and incorporated in The Village is primarily a residential community located thirty-seven miles southwest of Chicago. Frankfort is situated at the crossroads of U. S. Route 45 and U. S. Route 30, just three miles south of I-80, six miles southeast of I-355, and six miles west of I-57. Of the 2013 equalized assessed valuation of $804,772,884, 82% is residential, 12% is commercial, and 5% is industrial. The Village covers approximately 15 square miles and has an estimated population of 18,850 people. The Village is actively pursuing economic development with the goal of broadening and diversifying the long-term tax base. 1

2 B. Historical Information Currently, the Village has a demand account relationship with Old Plank Trail Community Bank. Page 15 of this RFP provides a summary of the estimated annual transactions and account data for our Village accounts. The Village also maintains banking relationships with the State of Illinois Illinois Funds Investment Pool and the Illinois Metropolitan Investment Fund (IMET). These institutions provide the Village with attractive yields, liquidity and no transaction fees on requested services. Currently, there are two accounts at the Illinois Funds and two accounts at IMET. The Village anticipates no change in the account structure at these institutions and has, therefore, excluded these accounts from the scope of this Request for Proposal. It is the Village s current cash management practice to deposit cash temporarily idle during the year in either demand deposits including the Illinois Funds Investment Pool or to invest the funds in certificates of deposit, U. S. Treasury securities, and the Illinois Metropolitan Investment Fund. III. INSTRUCTIONS, TERMS AND CONDITIONS A. Preparation and Submission All proposals must be submitted on the proposal cost summary forms provided in Section VIII and must be delivered to the Finance Director by the time specified on the cover page (facsimile copies are not acceptable). Proposals arriving after the specified time will not be accepted. Mailed proposals delivered after the specified hour will not be accepted regardless of the postmarked time on the envelope. All blank spaces on the cost proposal forms must be completed, if applicable or marked N/A. The authorized signature must be that of an officer whose title is stated. Each proposing financial institution shall submit two bound copies of their proposal and one electronic copy on a CD in a sealed envelope bearing the name and address of the respondent and labeled Sealed Proposal Banking Services. In addition, each financial institution shall include with their proposal one copy each (either hard copy or electronic copy on a CD) of its audited financial statement and FDIC Call Reports for the past two years. Please refer to the Completion Checklist on pages 5-6 in Section K for a complete listing of required supplementary information. B. Award of Contract The Village reserves the right to reject any or all proposals, to waive any irregularities of informalities in any proposal or in the proposal procedures, and to 2

3 accept or reject any item or combination of items. A contract will be awarded to the proposing financial institution whose proposal best complies with all the requirements set forth in this Request for Proposal and is the most advantageous to the Village based on the established evaluation criteria. C. Evaluation of Proposals The criteria used to evaluate the proposals submitted shall include, but not be limited to, the following factors: 1. Reasonableness of cost of services; 2. Interest rates offered and benchmarks used on the accounts; 3. Financial strength of the proposing institution; 4. Experience in providing services to similar account structures; 5. Ability of the financial institution and banking personnel to meet current as well as projected service requirements as listed in the Request for Proposal over the entire term of the banking agreement; 6. Quality of the proposal relative to the required specifications; 7. Completeness of the proposal with respect to the submission of requested information and documentation; and 8. References/past performance of financial institution. Acceptance of the proposal will be based on the total package of services offered by the proposing financial institution. The Village reserves the right to request additional technical and pricing information during the evaluation period. D. Term of Contract The Village will enter into a banking services contract with the successful proposer for an initial one year period, with the option of the village to renew for additional one year terms (maximum of three renewal years for a total contract term of four years) conditional upon satisfactory performance of the original contract and agreement of any additional terms upon the approval of the Corporate Authorities in their sole discretion. It is the desire of the Village to develop a long-term banking relationship with the successful financial institution. Upon approval of a banking institution by the Village Board of Trustees, the Village will enter into a contract with the successful financial institution. The Village shall have the option to renew the agreement for three successive one-year terms, as described herein, at the Village s sole discretion. At the end of each oneyear term, the contract between the banking institution and the Village will automatically renew, unless the Village gives written notice to end the contract. All costs will remain fixed for both the initial year of the contract and option year one if exercised by the Village. Price adjustments may be made for the subsequent option years of the contract, but may not exceed the lesser of 5% or the increase in 3

4 the consumer price index used in determining the local government tax cap limitations as published by the State Department of Revenue. If the financial institution proposes a fixed cost for all option years, this should be indicated on the proposal cost summary forms provided in Section VIII. The banking institution may pass along costs which increase due to federally mandated regulations upon submitting written notification of such increases to the Finance Director at least two months prior to such proposed increase taking effect and upon demonstration of such mandate. E. Withdraw of Proposals Any proposing financial institution may withdraw its proposal at any time prior to the time specified in the advertisement as the closing time for the receipt of proposals by signing a written request. However, no proposal shall be withdrawn or cancelled for a period of ninety (90) calendar days after said advertised closing time for the receipt of proposals. The successful banking institution shall not withdraw or cancel its proposal after having been notified by the Finance Director that said proposal has been accepted by the Village Board of Trustees. F. Conditions Proposing financial institutions are advised to become familiar with all conditions, instructions and specifications governing this Request for Proposal. Once the contract has been awarded by the Village, a failure to have read, understand and become familiar with all the conditions, instructions, and specifications of this proposal shall not be cause to alter the contract or a basis for additional compensation. G. Consideration of Proposals The Finance Director shall represent and act for the Village in all matters pertaining to this proposal and contract in conjunction herewith. The Village reserves the right to reject any or all proposals and to disregard any informality, when in its opinion, the best interest of the Village will be served by such action. No proposal will be accepted from or contract awarded to any person, firm or corporation that is in arrears or is in default to the Village of Frankfort upon any debt or contract, or that is a defaulter, as surety or otherwise, upon any obligation to said Village, or had failed to perform faithfully any previous contract with the Village. 4

5 The proposing financial institution, if requested, must present within forty-eight (48) hours any additional information or evidence deemed necessary by the Finance Director. H. Interpretation of Contract Documents Anyone in doubt as to the meaning of any part of the specifications or terms as described in this Request for Proposal may request an interpretation from the Finance Director. All requests for interpretation must be in writing. The person requesting the interpretation will be responsible for its prompt delivery. At the request of a proposing bank, or in the event that the Finance Director deems the interpretation to be substantive, the interpretation will be made by written addendum issued by the Finance Director. No oral explanations will be binding. All questions must be submitted via to RPiscia@vofil.com by 5 p.m. on Friday, October 2nd, The subject line should be Banking RFP Questions. In the event that a written addendum is issued, a copy of such addendum will be mailed only to those financial institutions that have submitted a timely proposal. The Village will not assume responsibility for receipt of such addendum. In all cases, it will be the responsibility of the proposing bank to obtain all addenda issued. Proposing banks should also include written acknowledgment of receipt of each addendum issued with the proposal submission. I. Pre-Proposal Conference A pre-proposal conference will be held at 10:00 A.M. on Friday, October 2, 2015, at the Village of Frankfort Administrative Building, 432 W. Nebraska Street, Frankfort, Illinois. Attendance at this meeting is not mandatory. However, any inquiries and Village responses from the pre-proposal conference will not be furnished to those banking institutions not in attendance. J. Acknowledgment of Receipt All prospective proposers shall complete and submit Section X of this Request for Proposal to the Finance Director immediately upon receipt of this document. Such acknowledgment will assure accurate and timely distribution of any addenda issued to the appropriate person(s). K. Completion of Proposal The following may be used as a checklist for proposing financial institutions in determining the completeness of the proposals being submitted: 5

6 1. Letter of transmittal/executive summary 2. Background and qualifications of financial institution 3. Principal officers and key personnel 4. Experience with requested services 5. Audited financial statements and FDIC Call Reports for the prior two years 6. Municipal references 7. Proposal cost summary and other forms required by this Request for Proposal. L. Calendar of Events Target Date September 17, 2015 October 2, 2015 October 19, 2015 Oct. 19-Nov.4, 2015 November 10, 2015 November 16, 2015 December 1, 2015 Event Mail Request for Proposals Pre-Proposal Conference at 10 a.m. and Deadline for Written Questions at 5 p.m. Proposal Deadline Evaluation of Proposals Recommendation to Financial Affairs Committee Recommendation to Village Board Commencement of Contract M. Termination of Contract The Village reserves the right to terminate this contract either in parts or in its entirety, upon written notice to the banking institution, in the event of default by the bank. Default is defined as failure of the bank to perform any of the provisions of this contract or failure to make sufficient progress so as to endanger performance of this contract in accordance with the terms outlined in this Request for Proposal. In the event of default and termination, the Village may procure, upon such terms and in such a manner as the Finance Director may deem appropriate, supplies or services similar to those so terminated. The financial institution shall be liable for any excess costs for such similar supplies or services unless acceptable evidence is submitted to the Finance Director that failure to perform the contract was due to causes beyond the control and without fault or negligence of the bank. 6

7 IV. DETAILED SPECIFICATIONS GENERAL OVERVIEW A. Required Information 1. Letter of Transmittal/Executive Summary - This document should not be more than two pages in length and shall contain the signature of an authorized representative of the financial institution. In addition, it shall designate all individuals authorized to negotiate with the Village on its contract with their respective mailing addresses and telephone numbers. 2. Background and Qualifications of the Financial Institution -This section should include the full name and principal address of the financial institution and shall indicate whether the institution operates independently as a bank or as a holding company affiliate. It should also provide a brief history of the financial institution including, but not limited to, the ownership structure, significant organizational changes over the past four years, the range of corporate services performed by the proposing bank, the bank s background in providing these services to public entities and a list of all branch locations and business hours of each. 3. Principal offices and Key Personnel Please describe the organization of the staff team that would service this contract, including a list of principal officers with a brief description of their qualifications and level of experience. All remaining staff should be at a minimum identified by name and title. 4. Experience with Requested Services - Please describe in detail the financial institution s ability to provide the services requested in this Request for Proposal. 5. Audited Financial Statements and FDIC Call Reports - Please provide one copy each (either hard copy or electronic copy on a CD) of the financial institution s audited financial statements, including note disclosures, and FDIC Call Reports for the past two years. 6. Municipal References A minimum of four municipal references is required. Other governmental references (i.e. park districts, sanitary districts, school districts, etc.) may also be specified. Please include the name of a contact person and telephone number of each reference. 7. Proposal Cost Summary and Other Required Forms The Village wishes to receive a cost per item fee proposal for depository services. Compensating balances will not be considered by the Village since it is requested that accounts be structured as zero balance accounts. The 7

8 B. General Requirements concentration account and all smaller Village accounts shall be interest bearing. The cost proposal should be documented by completing Section VIII Proposal Cost Summary. The proposal cost summary forms must be submitted with the proposal. It is intended that this form include all unit prices for the services requested. All volumes indicated on the form are annual estimates based on historical cost. Please refer to Section VIII for historical transaction data on all Village Accounts. Please note the proposed interest rate for each account must also be indicated on the cost proposal form. All blank spaces on the proposal form must be completed or marked N/A. The contract award will not necessarily be made to the proposing financial institution with the lowest cost proposal, but rather will be awarded to the bank that submits the most responsive proposal that meets all of the Village s requirements. A. The banking institution must have a local branch within the Village of Frankfort s corporate limits. B. The Village s account must be either interest bearing or be established as zero balance accounts which float is earning interest at all times. C. The banking institution must be both a sending and receiving bank on the Automated Clearing House System to accommodate the payroll direct deposit program and utility billing electronic collection system. The Village prefers transmitting all data electronically to the Bank s processing center or central computer, and will require the bank to provide the necessary software for the electronic transmission of data for these programs at no cost to the Village. D. The Village reserves the option to open similar accounts during the contract period provided that the awarded banking institution is furnished with at least thirty (30) days prior notice. E. The Village requires total bank deposits in excess of the standard FDIC insurance coverage to be collateralized at a rate of at least 110% at all times. All collateral must conform to the provisions of the Village s collateral agreement; which in summary, provides that the pledged securities be in the name of the Village, be deposited at a third party institution, and comply with all requirements to have a GASB Statement 3 Category 1 classification. A copy of the Village s collateral agreement, which is attached hereto, is the authoritative source of that which is required. 8

9 Collateral requirements must be reviewed by the banking institution to ensure that adequate collateralization is maintained at all times. A monthly statement detailing the securities pledged on behalf of the Village must be furnished by the financial institution within seven working days after the end of the calendar month. It will be the responsibility of the bank to pledge additional securities so that the current market value of the pledged securities continuously meets the 110% criteria. Any substitutions, withdrawals and exchanges of pledged securities must have the written approval of the Finance Director prior to the transaction being executed. Failure of the awarded banking institution to comply with this requirement may be deemed as a default and cause by the Village to terminate the contract. V. DETAILED SPECIFICATIONS REQUIRED BASE DEPOSITORY SERVICES A. General Account Structure The Village desires to maximize its cash availability through the use of concentration and zero balance accounts. All bank accounts will be interest bearing unless otherwise noted. The majority of the banking services will be conducted through one general corporate bank account or concentration account. There will also be two holding accounts with respective zero balances for Payroll and Accounts Payable. The Village may also consider separate interest bearing accounts. The Village will deposit checks into the concentration account. All disbursements will flow through the separate zero balance accounts. The zero balance accounts will be automatically reimbursed from the concentration account at the end of the day or at the opening of the business day in which the checks are presented for payment, depending upon the bank s policy. Interest earned on the accounts must be directly credited to each account on a monthly basis based upon the account s average daily balance, which is presently between $902,153 and $1,889,204. B. Deposit Discrepancies Deposit discrepancies, should they occur, must be brought to the attention of the Finance Director or designee on the same day as the discrepancy is found. This must be communicated by telephone with follow-up in writing for any debits/credits made to correct the error. 9

10 C. Returned Checks Returned checks submitted for deposit to the Village s accounts will not be immediately returned by the depository institution. Instead, the check must be presented for payment a second time. If the check is returned a second time, the Village s account shall be debited and the check shall be returned to the Village. D. Fund Availability Daily deposits will be made during the business day to a bank location agreed to by the Village and the awarded bank. Deposits will be credited to the Village s account on the same day if presented to the bank during the bank s business hours. The bank will credit the Village s account for selected transactions as follows: 1. Incoming wire transfers will be credited to the Village s bank account on the same day regardless of the time of receipt. 2. All other checks deposited will be credited to the Village s bank account on the same day if deposited during the bank s regular business hours. Availability of these funds will be based upon the bank s stated Availability Schedule as mutually approved by the Village and awarded banking institution. Proposing banks must attach a copy of the Availability Schedule that is proposed to be used during the term of this contract. E. Bank Statements The date of Village bank statements should be the last day of the calendar month and shall be received by the Village within seven working days after the end of the calendar month. The statement must include a list of all items clearing the account. If it is discovered after delivery of the statement that an item has been omitted from the statement, the Bank shall notify the Village immediately and mail the document to the Village rather than holding it until the next statement date. The Village also requests that the statements, processed checks, deposit items and miscellaneous bank advices be stored online by the bank and online access be given to the Village. The Village also requests check truncation and a monthly CD- ROM. F. Monthly Account Analysis The awarded bank shall also prepare for each calendar month an account analysis for each bank account detailing the charges for services rendered for that month. The account analysis should be presented in a format that is easily reconciled to the proposal cost summary forms submitted as part of this Request for Proposal and 10

11 shall be received by the Village within seven working days after the end of each calendar month. The total monthly service charges shall be calculated based on the actual number of transactions for the month multiplied by the fixed charge per item. All service charges will be directly debited to the Village s account on the last day of each calendar month. G. Online Banking The Village requires the successful proposer to provide personal computer online banking services software accessible by web browser. Please include detailed information on the types of online banking services offered. The software must have adequate security measures to ensure protection of the Village s assets. Assuming security measures are appropriate, the Village wishes to use online banking for the following, at a minimum: 1. Daily balance reporting (ledger, available and collected). 2. Detailed debit and credit postings (cleared checks, deposits, chargebacks, wire transfers in and out, interest payments, etc.) with ability to download data into Microsoft Excel spreadsheet format 3. Initiation of internal account-to-account transfers. 4. Initiation of regular recurring wire transfers. 5. Initiation of ACH debit and credit transactions. Ability to create saved instructions for recurring ACH debit (collection) or credit (direct deposit) type transactions. 6. Placement of stop payment orders. 7. Multi-level security for various Village staff (e.g. inquiry only vs. full system administrator rights). H. Direct Deposit of Payroll Checks The Village offers direct deposit of payroll and will require the proposing banks to have the capability to provide direct deposit of Village employees pay checks into their respective personal bank accounts regardless of the employee s financial institution. The Village s payroll is currently processed in-house. The proposing bank, if necessary, must supply any banking software needed to convert the Village s data to the required NACHA format. The Village s payroll is paid bi-weekly for regular employees and monthly for village trustees. The Village currently has 86 full-time employees and 18 part-time employees. In addition, there are 8 on the Board of Trustees, 7 Plan Commissioners, and 3 Police Commissioners. All costs related to maintaining a payroll direct deposit program shall be specified on the proposal cost summary form. 11

12 I. Direct Debit of Utility Payments The Village offers direct debit of utility payments to its residents. The Village has approximately 11,000 utility billing accounts that are billed on a monthly basis. All costs associated with the on-going maintenance of a direct debit program shall be specified on the proposal cost summary form. J. Wire Transfers 1. Incoming Wire Transfers The Village intends to consider all wire transfers received by the bank prior to the end of the business day as available by the Village. This shall be true regardless of the time of the actual receipt by the bank. Should a wire transfer not be received by the bank, as specified above, the party causing the delay will be determined and adjustments, if any, for lost interest will be made as soon as possible. The Village historically does not perform daylight overdrafts. However, the proposing bank must still describe its policy for handling daylight overdrafts, in case the village performs a daylight overdraft while expecting an incoming wire transfer to arrive during the business day. If the proposing bank does not allow for these overdrafts, this should be clearly stated in Section IX Exceptions Form. 2. Outgoing Wire Transfers The awarded bank agrees to execute any outgoing wire transfer within one hour, unless otherwise instructed, after notification by the Village s authorized official. This notification may be via telephone, computer terminal (PC Banking), or fax. Wire transfers initiated by the Village, but which are not received by the destination party, will be traced by the bank to determine the party causing the delay. Any adjustments for lost interest and /or charges or penalties resulting from the bank s failure to send a wire transfer will be made to the Village. K. Bank Debit Card The Village uses nine bank debit cards through Mastercard. These cards are issued to certain personnel and provide an effective means of purchasing miscellaneous goods and services. 12

13 L. No Cost Items The awarded bank shall furnish the following items at no cost to the Village: 1. Three-part carbonless deposit tickets 2. Two bank deposit bags 3. Four endorsement stamps for accounts Any exceptions to these services must be disclosed in Section IX Exception Form. M. Additional Services The Village may from time to time request additional services not specifically mentioned in this Request for Proposal document. On these occasions, a reasonable and mutually agreed upon fee will be charged by the banking institution. VI. OPTIONAL SERVICES The proposing bank shall provide a brief description of its capability to provide the following optional services. The Village would like to offer its employees a range of banking services that may include the following: 1. No cost checking 2. Other services proposed by the bank Please indicate the capability of the proposing bank to provide such services as an alternate on the proposal cost summary form. 13

14 VII. PROPOSAL QUESTIONNAIRE Name of Banking Institution: Contact Person: Address: Telephone: Fax: Name of Account Representative: Telephone: 1. Does the banking institution have a home office or branch facility within the Village of Frankfort corporate limits? If so, please specify the location. YES NO 2. Is the banking institution insured by the Federal Depository Insurance Corp? YES NO 3. Is the banking institution online with the Federal Reserve transfer system? YES NO 4. Please provide the banking institution s latest reported Capital to Asset Ratio 5. Does the banking institution currently provide financial services to any municipal governments? If so, please specify. YES NO 6. Does the banking institution currently provide services to other governmental units? If so, please specify. YES NO 7. Will the banking institution be able to provide bank statements and account activity for each calendar month no later than seven days after the end of YES NO each month? If no, please provide a detailed explanation in Section IX. 8. Does the banking institution offer personal computer online banking services? If so, please specify and explain the security features that will ensure protection of Village assets. YES NO 9. Please specify the proposed interest rate for the Village s sweep account. 14

15 VIII. PROPOSAL COST SUMMARY PROPOSAL COST DETAIL BASE YEAR BASE DEPOSITORY SERVICES: TOTAL UNIT ANNUAL PROPOSAL COST VOLUME COST Proposed Interest Rate Checks Concentration Acct. Only Service Description/Charges: Number of deposits 1,000 Number of checks deposited 60,000 ACH credit received 1,200 Checks paid 5,000 Stop payment 5 Deposit return item 100 Overdraft charges - ACH debit received 240 ACH Utility Bill Payments 25,000 Deposit Administration Fee $16 million Cash deposited $180,000 Incoming wire transfers 2 Outgoing wire transfers 2 Bank debit card (Mastercard) 480 Transfers between accounts (excluding sweep activity) 48 Sweep Transfers 480 Monthly maintenance charges - Audit verifications (1 x 6 accts) 6 CD Rom check imaging service 12 EDI Reporting Services: Financial EDI-monthly fee 12 Financial EDI-per report 240 Financial EDI-per addenda record 1,100 Online banking: Business banking accounts 4 Business banking monthly fee 12 ACH file transmission upload 48 Other service charges (please specify) TOTAL BASE DEPOSITORY SERVICES =========== 15

16 TOTAL PROPOSAL COST SUMMARY: TOTAL PROPOSAL BASE YEAR OPTION YEAR 1 OPTION YEAR 2 OPTION YEAR 3 TOTAL PROPOSAL COST OPTIONAL SERVICES: Village Employee Services No cost checking Other services (please specify) 16

17 IX. EXCEPTIONS FORM Name of Financial Institution Please list below any exceptions or deviations from the specifications in this Request for Proposal. If the proposing financial institution takes no exception in responding to this Request for Proposal, the bottom of this form shall be marked NO EXCEPTIONS. Proposals submitted with exceptions must, to the best of the proposing bank s knowledge, still meet the intent of the specifications. All exceptions must be clearly noted and fully explained. 1. Detailed Description of Page No. Deviation or Exception Estimated Cost(s) Signature of Authorized Representative Position 17

18 X. ACKNOWLEDGMENT OF RECEIPT Village of Frankfort Attention: Rob Piscia 432 W. Nebraska Street Frankfort, IL Fax: (815) PROPOSAL DESCRIPTION: COMPREHENSIVE BANKING SERVICES BANKING INSTITUTION: Name: Address: CONTACT: Name: Telephone: Fax: Signature of Authorized Representative Title Date 18