Request for Proposals. Banking Services

Transcription

1 Request for Proposals Banking Services Village of Channahon, Illinois Issue Date: January 26, 2018 Due Date: 4:00 PM Central Standard Time (CST), March 9, 2018 *Proposals received after the due date will be returned unopened Village of Channahon, Illinois S. Navajo Drive Channahon, Illinois 60410

2 Table of Contents Section 1 Section 2 Section 3 Section 4 Section 5 General Information 1.1 Introduction and Mandatory Requirements 1.2 Background of the Village 1.3 Public Records 1.4 RFP Coordinator 1.5 RFP Schedule 1.6 Questions Regarding the RFP 1.7 RFP Amendments 1.8 Proposal Submission 1.9 Terms and Conditions Scope of Services 2.1 Term of Agreement 2.2 Collateralization of Account Balances 2.3 Account Structure 2.4 Compensating Balances and Monthly Account Analysis 2.5 Online Banking 2.6 Transfers between Accounts 2.7 ACH 2.8 Availability of Funds 2.9 Wire Transfers 2.10 Statement and Advice Frequency 2.11 Electronic Document Storage and Import/Export Capability 2.12 Lockbox 2.13 Procurement Cards 2.14 Community Reinvestment Act 2.15 Electronic Deposit 2.16 Armored Car Service RFP Response Instructions 3.1 Proposal Format Proposal Evaluation 4.1 Responsiveness to RFP 4.2 Ability to Perform Required Services 4.3 References 4.4 Fees 4.5 Community Reinvestment Act 4.6 Options Interview and/or Site Visits Attachments 1 RFP Acknowledgement Form 2 Required Cost Spreadsheets 3 Community Reinvestment Act Form 2

3 Section 1 General Information 1.1 Introduction and Mandatory Requirements The Village of Channahon (Village) is requesting proposals to assure that the Village is receiving the optimum level of banking services at a competitive price. The Village s expectation upon completion of the Request for Proposal (RFP) process is to enter into a three-year contract, with the option for the Village to renew for another three-year period. Proposals should demonstrate the proposer or bank s cost effective and innovative approach to today s banking needs as well as the rapidly changing demands of the future. In accordance with the Village s investment policy, the Village will only invest funds in a financial institution that is a member of the Federal Deposit Insurance Corporation (FDIC). Furthermore, the Village will only maintain funds in a financial institution that is willing or capable of posting required collateral for funds in excess of the FDIC insurable limits. The Village will select, as a depository, a financial institution in which the Village funds on deposit will not exceed 65% of the institution s capital stock and surplus. It is the policy of the Village to maintain investment and operating accounts locally whenever possible, though the depository bank will ultimately be selected on the basis of high quality products and services and maximizing earnings. 1.2 Background of the Village The Village was incorporated in 1961 and is a home-rule community. The Village is located in the northeastern part of the state of Illinois and currently has land area of 16.4 square miles. The Village has a population of 12,560 as of the 2010 U.S. Census. The Village employs 52 full-time employees and 1 part-time employee. The Village s total payroll exceeded $6.3 million (including benefit payments to applicable vendors) for the fiscal year ending April 30, 2017, of which $4.7 million was paid through direct deposit or Electronic Funds Transfers (EFT s) and approximately $196,000 paid through checks. During fiscal year 2017, the Village issued approximately 1700 payroll checks and 1650 payroll payments were direct deposit. Currently, approximately 96% of employees utilize direct deposit. Payroll is prepared bi-weekly and accounts payable checks are issued after Board approval on the first and third Monday s of each month. A total of 2,438 accounts payable checks were issued during fiscal year 2017 totaling approximately $18.8 million. Daily deposits are made into the current commingled general account at one banking institution located in the Village, while daily utility deposits are made at another banking institution. During fiscal year 2017, a total of approximately 33,000 utility payments were brought to the other banking institution totaling approximately $3 million. The Village currently retains 15 various bank accounts including General Operating, Motor Fuel Tax, Bond Payments, Utility, Police Forfeiture, etc. 1.3 Public Records The documents submitted in response to this request for proposal becomes a public record upon submission to the Village, subject to mandatory disclosure upon request by any person, unless the documents are exempted from public disclosure by a specific provision of the law. The Village assumes no contractual obligation to enforce any exemption. 1.4 RFP Coordinator Upon release of this RFP, all communications concerning this proposal request should be directed to the Village Finance Director, Heather Wagonblott. Unauthorized contact regarding this RFP may result in disqualification. Any oral communications will be considered unofficial and non-binding on the Village. The banking institution 3

4 should rely only on written statements issued by the Village Finance Director. Contact information for the Village Finance Director is as follows: Mrs. Heather Wagonblott Finance Director Village of Channahon S. Navajo Drive Channahon, Illinois RFP Schedule The Village anticipates the following schedule, which is subject to change: Release of RFP January 26, 2018 Questions Due to Village in Writing February 9, 2018 RFP Responses Due to Village March 9, 2018 Initial Evaluation Complete March 23, 2018 Optional Finalist Presentations/Interviews April 2, 2018 Staff Recommendation to Committee of the Whole April 16, 2018 Village Board Approval of Contract April 16, 2018 New Contract in Place April 30, Questions Regarding the RFP Requests for clarification or additional information must be made in writing to the Finance Director by the date specified in the RFP Schedule. Written responses to all requests will be furnished to all potential proposers, as determined by the Village s receipt of a completed RFP Acknowledgement Form (see Attachment 1). The Village will be unable to respond to requests for additional information or clarification received after 5:00pm on February 9, RFP Amendments In the event of a material modification, all known and/or potential proposers will be notified of an amendment to this RFP as determined by the Village s receipt of a completed RFP Acknowledgement Form. If deemed necessary by the Village, proposers will be given an opportunity to modify their proposal in the specific areas that are affected by the modification. 1.8 Proposal Submission Each proposer must submit two copies of their proposal. In addition, an electronic copy of the proposal and any supporting documentation must be submitted via to hwagonblott@channahon.org or on an acceptable electronic device such as a flash drive or CD-ROM. The complete proposal package must be submitted in a sealed envelope, clearly identified as PROPOSAL FOR BANKING SERVICES. The proposals may be mailed or delivered to: Village of Channahon Finance Department Attention: Mrs. Heather Wagonblott S. Navajo Drive Channahon, Illinois

5 Proposers accept all risks of late delivery of mailed proposals regardless of fault. Proposals submitted by facsimile will not be considered. All proposals and accompanying documentation will become the property of the Village of Channahon and will not be returned. 1.9 Terms and Conditions A. The Village reserves the right to change the RFP schedule or issue amendments to the RFP at any time. The Village also reserves the right to cancel or reissue the RFP, to reject any or all proposals, to waive any irregularities or informalities in the selection process, and to accept or reject any item or combination of items. The Village reserves the right to request clarification of information from any vendor or to request supplemental material deemed necessary to assist in the evaluation of the proposal. The Village reserves the right to accept any agreement deemed by the Village to be in its best interest. This RFP does not obligate the Village to accept or contract for any expressed or implied services. B. In the event that the proposer to whom the services are awarded does not execute a contract within thirty (30) calendar days after Village Board approval, the Village may give notice to such proposer of intent to award the contract to the next most qualified proposer or to call for new proposals and may proceed to act accordingly. C. The Village will not reimburse any vendors for any costs involved in the preparation and submission of responses to this RFP or in the preparation for and attendance at subsequent interviews. D. The information in this RFP indicates an estimate of the number of transactions for the year. 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. E. Proposers shall thoroughly examine and be familiar with these specifications. The failure or omission of any proposer to receive or examine this document shall in no way relieve any proposer of obligations with respect to this proposal or the subsequent contract. F. The contract may be terminated by either party by giving written notice to the other party. This provision may be exercised only after the contract has been in effect for at least six (6) calendar months. Under no circumstances will any damages be paid as a result of the termination of this contract. If the bank exercises the right to terminate the contract early, they may be prohibited from submitting future proposals to the Village for a period of ten (10) years. 5

6 Section 2 Scope of Services The Village seeks proposals from competing banks for the services identified in Section 2 of this RFP which include core depository services and non-core or ancillary services. The Village of Channahon currently uses two banks to provide the core services described; however, the Village would like to consolidate all core services described to be provided by one bank. Cost proposals for ancillary services should be presented separately from the cost proposal for core banking services. The scope of the services for core depository services are identified on pages 7 10 of this RFP. Ancillary services are identified on page 12 of this RFP. The Village is not obligated to procure any of the services enumerated in Section Term of Agreement The banking services detailed in this section will be performed for the Village on a contractual basis for three (3) years, with an option for the Village to renew the contract for another three (3) year period. Fees specified in this proposal will remain fixed for the duration of the initial 3-year contract period. Banking service charges for the optional renewal period will be based on charges proposed for the initial contract term, plus an increase (or decrease) not to exceed the greater of: 1) the change in the Chicago Consumer Price Index for the initial contract period or 2) changes in the Federal Reserve Fee Schedule during the initial contract period, which will be allowed in accordance with the following conditions: a) The per item charge will change only for corresponding adjustments in the Federal Reserve System s Fee Schedules, on or after the effective date of adjustment; b) The changes in the Federal Reserve Fee Schedules must be final and not proposed; and c) The banking institution will provide the Finance Director with a copy of the Federal Reserve System s notification supporting the adjustment. All proposed fee adjustments shall be provided on a per item basis and itemized. 2.2 Collateralization of Account Balances It is the policy of the Village of Channahon to require security for all cash maintained in any financial institution designated as a depository. Security may be in the form of insurance or collateral. The Village exercises this authority under Public Act titled Public Funds-Investment by Public Agencies-Financial Statements of Depository Institutions (January 1, 1982). This act states: Whenever a public agency deposits any public funds in a financial institution, the public agency may enter into an agreement with the financial institution requiring any funds not insured by the Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation to be collateralized by securities All collateral pledged will be not less than 110% for all accounts at all institutions. Collateral shall be valued at fair market value of the net amount of public funds to be secured at each institution. The ratio of the fair market value of collateral to the amount of funds secured will be reviewed regularly and additional collateral will be requested when this ratio declines below the level required. Pledged collateral will be held by the Village or in safekeeping and evidenced by safekeeping documentation. It is the responsibility of the institution to ensure sufficient collateral is pledged to cover the full bank balance daily at the close of business. Monthly reports detailing the adequacy of collateral must be supplied by the bank to the Village within five (5) business days of the close of each month. 6

7 Core Depository Services 2.3 Account Structure The Village of Channahon maintains its financial records on a fund basis of accounting in conformance with generally accepted accounting principles. Separate bank accounts are maintained for the operation of the Village s Enterprise Fund (utility services), Motor Fuel Tax Fund and other activities as determined by the Village. The Village utilizes a single commingled cash concentration account which commingles monies into a single account with entitlement to the various portions of cash reflected in the fund general ledger accounts. Sweep accounts attached to the general commingled account are utilized for payroll and general accounts payable disbursements. Those accounts that maintain a balance shall earn interest. All proposing banks are required to provide an explanation of the manner in which interest will be calculated on Village accounts. All returned checks due to insufficient funds must be automatically redeposited a second time. All deposit errors must be accompanied by a copy of the associated deposit slip. All bank errors must be corrected within five (5) business days of notification by the Village. Any debit or credit memos required to adjust errors caused by the bank will not result in any fees or charges to the Village. Proposing banks shall provide the following supplies as needed at no cost to the Village: 1) printed duplicate deposit slips, 2) tamper evident deposit bags and 3) endorsement stamps. The cost of any variance from this condition must be indicated on the Cost Spreadsheet in the Other Services Not Included Above section. 2.4 Compensating Balances and Monthly Account Analysis The Village will consider paying for banking services it receives either through a fee schedule or a blended arrangement that identifies fees in a fee schedule contained in a monthly account analysis statement, while simultaneously providing compensation for the fees by maintaining compensating balances. An account shall be established for the purpose of offsetting monthly banking service costs. Deposits held in this account shall accrue a monthly earnings credit. All proposing banks are required to provide an explanation of the manner in which the Earnings Credit Rate will be calculated on the Village accounts. All charges for banking services shall be reported on a monthly account analysis statement rather than being debited directly against Village deposits. The monthly account analysis report shall be delivered to the Village within ten (10) business days of the last day of each month and shall contain a detailed itemization of charges by types and volume. Total charges will then be compared to total accumulated earnings credits to determine the total net debit (due to bank) or credit (due the Village). The net debit or credit in the account will continue to accumulate in the analysis account from month to month throughout the 3-year contract. The Village will monitor this balance on a periodic basis and adjust its compensating balance up or down with the objective of arriving at a net balance due to or from the Village of zero. Upon termination of this agreement, any remaining balance in the analysis account shall be paid to the bank (if a debit balance remains) or to the Village (if a credit balance remains). 2.5 Online Banking The Village requires the successful proposer to provide on-line, internet-based banking services software accessible by web browser (e.g., Internet Explorer). 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 on-line banking for the following, at a minimum: a) Daily balance reporting (ledger, available and collected); b) Detailed debit and credit postings (cleared checks, deposits, chargebacks, wire transfers in and out, interest payments, etc.) with the ability to download data into Microsoft Excel spreadsheet format; c) Initiation of internal account-to-account transfers; 7

8 d) Initiation of regular recurring wire transfers; e) Initiation of ACH debit and credit transactions and creation of reusable templates for recurring/repetitive ACH debit (collection) or credit (direct deposit) type transactions; f) Placement of stop payment orders; g) Positive pay; and h) Ability to configure user accounts with multi-level security (such as inquiry only versus administrator access). 2.6 Transfers Between Accounts On a regular basis, the Village will make transfers between its various accounts. Any transfers between these accounts will be charged to the Village only as transfers and not also as items deposited and checks paid. Transfers will be done electronically via the internet by the Village, except in instances where manual transactions are required (e.g., when online services are not available). Credit for any transfers must be given on the same day that the transfer is made, no matter what time of day the transfer occurs. 2.7 ACH The bank must be both a sending and receiving bank on the Automated Clearing House system to accommodate a payroll direct deposit program, a utility billing electronic payment collection program and potential electronic payment collection program for business sales taxes and retiree insurance premiums. Presently, the Village s payroll, utility billing and corresponding ACH direct deposit files are transmitted to the bank s processing center electronically. The Village also seeks ACH block and filtering capabilities for preventing unauthorized debits of Village bank accounts. In addition, the initiator of the ACH or wire transfer must be different than the individual approving the ACH or wire transfer transaction. 2.8 Availability of Funds Deposits will be made periodically during the business day to a designated cashier or location mutually agreed upon by the Village and the awarded bank. The Village will be given credit as collected funds on all items which are cleared by the bank on the same day on which the deposit is made. Items deposited which clear at institutions located within the appropriate Federal Reserve Region will be considered collected funds within one (1) business day. All other items deposited will be given credit as collected funds within two (2) business days. The bank will also credit the Village s accounts for incoming wire transfers on the day received regardless of the time of receipt during the day. All proposing banks are required to attach a copy of their current availability schedule to the proposal. 2.9 Wire Transfers Incoming Wires the Village intends to consider all wire transfers received by the bank prior to the end of the business day, as available for investment by the Village, regardless of the time of actual receipt by the bank. Should a wire transfer not be received by the bank, as specified above, then the wire transfer will be traced from origin to destination to ascertain the party responsible for delaying the transfer. If necessary, adjustments will be made as soon as possible for any lost interest. It is the express intention of the Village to perform daylight overdrafts to the extent that incoming wire transfers are expected during the business day. In the event that the incoming wire transfer does not arrive by the end of the business day, interest on any overdrawn balances will be calculated using the same rate of interest that the Village receives on the checking accounts. Outgoing Wires The awarded bank agrees to execute any wire transfer order within one (1) hour after notification by the Finance Director and/or Finance Department through the computer terminal, by telephone or by fax, if necessary. Wire transfers ordered and not received by the destination party by 5:00pm will be traced by the bank from origin to destination to ascertain the party responsible for delaying the transfer. If necessary, 8

9 adjustments will be made for any lost interest, or charges resulting from a fail to consummate an investment transaction. Other Considerations The awarded bank agrees to provide copies of the wire transfer confirmation evidencing the amount, date and time, as well as the wire transfer number for all outgoing wires on a daily basis to the Village Finance Department via an Statement and Advice Frequency Monthly bank statements will be for the full calendar month and will be delivered to the Village within five (5) business days after the end of the month. Monthly statements will also be available on-line for access as soon as they are available, but no later than five (5) business days after the end of the month. The bank will provide written documentation (debit/credit advices) included with the monthly account statements for all account adjustments made during the month. A monthly account analysis statement will be completed and delivered to the Village within ten (10) business days after the end of the month Electronic Document Storage and Import/Export Capability The Village desires receipt of scanned images of cleared checks and other bank documents in an electronic media format that is accessible via the Internet. Imaging methods that have an indexed format and that can be searched are required. The Village wishes to upload cleared check information into its financial system, BS&A Financial Software. Cost proposals for this service must be included Lockbox The Village currently does not use a lockbox service, however the Village would like to begin utilizing lockbox services to handle the large volume of utility payments received each month. The bank shall perform the following services: Setup and maintain on behalf of the Village a demand account (Account) for the deposit of payments received in the performance of lockbox services; Prepare a monthly Statement of Account showing all entries to the Account; Provide authorized representatives of the bank to pick up Village payments at least once each day from an established US Post Office box(es); Open mail and sort payments, etc. included with remittances shall be forwarded to the Village; Verify that checks are dated, signed and made payable to the Village or a reasonable derivation thereof, as determined by the Village; Process payments on the day received; Process single and multiple payments of full or partial amounts on individual or several accounts; Prepare one or more deposit slips for purposes of depositing into the appropriate demand account the total amount of funds. Each deposit slip will indicate the process date, batch number, batch type and number of payments processed; Provide a daily electronic transmission file of transactions processed, in the format required by the Village s software program, for updating Village records; Provide images of all transactions (front and back of documents and checks) to authorized Village personnel on a Bank website on the business day following and for up to ninety (90) days after the processing date. The images shall also be stored using long term archival services; and Batch correspondence and payments received that are not or cannot be processed by the Bank (rejected checks) separately, distinctly marked and forwarded to the Village. 9

10 2.13 Procurement Cards (P-Cards) Currently, the Village provides a corporate credit card to certain staff members for the use of Village-related purchases. The Village would like to explore utilizing procurement cards on a wider scale for low dollar purchases. The Village will not pay an annual or other fee for these credit cards and prefers banks that offer a rebate on purchased amounts beginning with the first dollar spent. Proposers shall indicate the rebate formula offered Community Reinvestment Act It is important to the Village that the awarded bank demonstrates its commitment to provide banking services to the community and that the bank s rating under the Community Reinvestment Act (CRA) is a measure of this commitment. All proposers are required to complete the Village s Community Reinvestment Act Information Form (Attachment 3) and list the services that would be provided within Village limits in accordance with this act. All proposers are required to submit their latest CRA rating as it relates to the Village of Channahon community with their proposals. All proposers are required to furnish their bank s community involvement and investment program. The Village will consider this rating and any supporting documentation in the evaluation process. Banks may propose one or more ancillary or non-core services, as identified in section 3.1D. Costs associated with proposed ancillary services should be segregated from the cost proposal for core services Electronic Deposit The Village seeks proposals for an electronic deposit mechanism which would allow check deposits to be made remotely from Village locations Armored Car Service If the awarded bank does not have a depository bank location within a ten mile radius of the Village Hall, an armored car service or carrier service may be utilized by the Village to transport deposits to the awarded bank. All costs related to the armored car/carrier service are to be included in the bank s proposal. At the present time, the Village anticipates having one pick up location and one pickup up per day. All deposits picked up by the armored car/carrier service will be given same day ledger credit regardless of the actual time the deposits are taken to the bank by the armored car/carrier service. All invoices for the armored car/carrier service will be submitted directly to and paid for by the bank. All operation problems regarding the deposit pick up location and time will be handled by the Village. If a proposer cannot meet any of the specifications, expectations or services in Section 2 or takes exception to any of the terms or conditions presented, these exceptions should be distinctly noted in the appropriate sections. If no exceptions are presented, the Village will assume full capabilities as described in Section 2. 10

11 Section 3 RFP Response Instructions 3.1 Proposal Format Proposals should be prepared simply and economically, providing a straight-forward, concise description of proposer capabilities to satisfy the requirements of this request. Special bindings, colored displays, promotional materials, etc. are not desired. Emphasis should be placed on completeness and clarity of content. All proposal responses must be in the following format: a. Cover Letter b. Table of Contents c. Bank Background d. Proposed Scope of Services e. Proposed Schedule of Implementation f. References g. Cost Proposal h. Attachments The desired information in each of these sections is described below. A. Cover Letter The cover letter should contain the name of the proposing Bank (and/or third party vendors), the address of the proposing officer(s), and the contact individual(s) authorized to answer technical, price, and contract questions. Contact information should include telephone number, mailing address, and address. The cover letter must be signed by a person or persons authorized to bind the proposer(s). B. Table of Contents The contents of the proposal shall be included in an index at the beginning of the proposal and should include all contents and attachments. C. Bank Background This section should include the full name and principal address of the financial institution. Indicate whether the institution operates independently as a bank or as a holding company affiliate and provide the distance of your nearest bank branch to the Village of Channahon Village Hall located at S. Navajo Drive, Channahon, Illinois. Include the state in which the Bank is incorporated to operate and the date of incorporation. This section should include the range of corporate services performed by the office(s) and the Banks background in providing these services to public entities. The Village requests that proposing banks provide the names and designated account executive, as well as an alternate. The designated account executives must have the authority to make timely decisions in the normal course of business on their own. In addition, describe the organization of any additional staff team which would service the contract. Provide a listing of the entire proposed staff team, including name, title, and length of service with the bank/vendor. Additional qualifications and experience on similar accounts may be included. Additionally, identify key measures of the bank s financial strength. Provide ratings for Bank Financial Strength, Bank Deposits, and Issuer Rating. The Bank shall identify key measures of the company s financial strength. Respondents should be prepared to submit a copy of the bank s financial statements and FDIC call reports for the past two years upon the Village s request. D. Scope of Services Clearly and succinctly describe the scope of services to be provided by the bank. Address each of the items in Section 2. In addition, please explicitly address any questions indicated below in the appropriate section of the core services below. 11

12 a. Term of agreement; b. Collateralization of account balances; c. Account structure - What are your timelines for payroll direct deposits and, if possible, alternatives to standard timelines, as well as the associated costs? Describe your overdraft protection program as it would relate to the Village, as well as what constitutes a daylight and overnight overdraft situation; d. Compensating balances and monthly account analysis; e. On-line banking Include specifications for automated service hardware and software capability proposed as well as data download/file transfer formats for internet services proposed. Explain the Banks security features with respect to the on-line system and describe how access is limited; f. Transfers between account; g. ACH The Village offers direct debit of utility payments for its residents. Explain your capability to provide this service; h. Availability of funds; i. Wire transfers What are the opening and cut-off times in CST for initiating wire transfers to ensure same day execution? Describe the bank s capability of warehousing instructions for future dated wire transactions, if available; j. Statement of advice frequency; k. Electronic document storage and import/export capability; l. Lockbox Describe the current system, image processing, and your future growth capacity; and m. Community reinvestment act. Additionally, each proposer should clearly communicate whether or how it could service the ancillary items that the Village identified: n. Electronic deposit; and o. Armored car service. If there are any other banking services offered that may be of interest to the Village, please describe those in the proposal. The following questions must be answered in a subsection labeled p. What is your customer service philosophy? What differentiates your service from other providers? Describe your disaster recovery procedures. How quickly will back-up facilities be activated? Describe how your interest rate will be calculated on the depository accounts? Describe how the Earnings Credit Rate will be calculated on the Village s account? If a proposer cannot meet any of the specifications, expectations or services in Section 2 or takes exception to any of the terms or conditions presented, these exceptions should be distinctly noted in the appropriate sections. If no exceptions are presented, the Village will assume full capabilities as described in Section 2. Should third party vendors be necessary to provide any of the requested services, the detailed involvement of those parties and delineation of responsibilities should be explained in the appropriate sections. E. Schedule of Implementation Describe the conversion plan you would coordinate to ensure a smooth transition from the current banking institutions. Discuss your ability to meet the Village s proposed schedule as indicated in this RFP. Discuss 12

13 the implementation effort and lead time that would be required to establish the banking services requested in this RFP. Include the detailed steps involved and your proposed schedule for meeting each step. F. References Provide a list of client references of similar sized and/or municipal accounts which the proposer has served over the past two (2) years and is currently serving. Provide no fewer than three (3) references. Provide a contact person, telephone number, and address for each reference customer. G. Cost Proposal All proposers must use the cost proposal format indicated in this proposal (Attachment 2). A separate cost proposal must be submitted for each participating agency. Proposers may present cost information in another format as well; however, proposers may be eliminated from consideration if the required forms are not used. For services not specified herein, but which the proposer proposed to charge for, or where a differing level of service is proposed, the proposer shall provide a description of the service and the proposed fee structure. If the cost for a service is not included within the proposal, the Village will assume that there is no charge for that service. Volume discount prices may be indicated if applicable. If additional line items are necessary to provide the core and ancillary services described in Section 2 (Scope of Services), it is the proposer s responsibility to insert those items in the cost spreadsheet format. The total all-inclusive maximum price is to include all anticipated out-of-pocket expenses. Ancillary services should be priced in a separate cost spreadsheet and should not be included in the total proposed cost included in the Core Services spreadsheet. The Village reserves the right to eliminate any individual service contained in the RFP, if, based on analysis, the fees for providing the service are excessive, or it the service proposed can be performed in an alternative manner Proposing banks are required to provide an annualized total for all service charges. This total is divided by twelve (12) to arrive at an average monthly amount for service charges. A calculation is required by the bank to determine Balance Required to Support $1.00 of Services. A second calculation multiplying the average monthly amount by Balance Required to Support $1.00 of Services is necessary to determine an average Required Monthly Compensating Balance. Additional information for these computations is provided below. Proposers must price each service using Per Item charges, which are then extended to the Annual Charges column. The total of this column will be entered on the line Total Proposed Service. If the bank does not wish to charge for a particular item, please indicate so by including no charge under the appropriate service in Charge per Item column. If the bank cannot provide the specific service requested, please indicate so by including no proposal under the appropriate service in the Charge per Item column. The Total Proposed is then divided by twelve (12) to arrive at an average monthly amount. This amount is then multiplied by the amount of Balance Required to Support $1.00 of Services. The following formula is specified to calculate the Balance Required to Support $1.00 of Services. 365 / Number of days in current month Earnings credit rate Earnings Allowance Calculations: All proposing banks must provide an explanation of the manner in which the Earnings Credit Rate will be calculated. The proposed rate should be used in calculating the Balance Required to Support $1.00 of Services. 13

14 A second calculation multiplying the average monthly amount by Balanced Required to Support $1.00 of Services is necessary to determine an average Required Monthly Compensating Balance. Banks are required to show all computations as supporting documentation to their cost submission. H. Attachment In addition to all information requested above, the following attachment is required: Funds Availability Schedule (See Section 2.8) Section 4 Proposal Evaluation Proposals will be evaluated by a committee of Village staff including the Village Administrator, Finance Director and Finance Accounting Clerks. Evaluations will be based on criteria outlined herein which may be weighted by the Village in a manner it deems appropriate. All proposals will be evaluated using the same criteria and weighting. The criteria used will be: 4.1 Responsiveness to RFP The Village will consider all the material submitted to determine whether the proposer s offering is in compliance with the RFP. 4.2 Ability to Perform Required Services The Village will consider all the materials submitted by each proposer, and other relevant material it may otherwise obtain, to determine whether the proposer is capable of and has a history of successfully completing contracts of this type. The proposer shall furnish acceptable evidence of their ability to perform, regarding such categories as expertise/experience, equipment, facilities and personnel qualified to perform requested duties. Failure or refusal to provide such information upon request may cause the proposal to be rejected. 4.3 References The Village may contact references directly and inquire about the quality and type of services currently being provided to other customers. 4.4 Fees The Village will evaluate aggregate banking services costs, per identified activity, along with corresponding compensating balances; rate of interest paid on accounts and earnings credit rate (ECR) on required compensating balance; and overall cost effective approach to providing the services requested in this RFP. 4.5 Community Reinvestment Act The Village will evaluate CRA ratings and any other supporting documentation provided with the proposals. All proposers are required to complete the Village s Community Reinvestment Act Information Form (Attachment 3). 4.6 Optional Interviews and Site Visits The Village may, at its sole option, conduct interviews and/or site visits as part of the final selection process. *As previously indicated, criteria evaluation may differ with other participating agencies. 14

15 Attachment 1 Village of Channahon RFP Acknowledgement Form Recipients of the Village's Request for Proposals for Banking Services should complete this form and return as directed below to ensure receipt of any communications issued by the Village in regards to the RFP. Responses to banking institution questions issued by the Village on February 9, 2018, will be sent to all vendors for whom a completed RFP Contact Name: Company: Mailing Address: Phone Number: Address: Return the completed RFP Acknowledgement Form to: Mrs. Heather Wagonblott Finance Director Village of Channahon, Illinois S. Navajo Drive Channahon, Illinois

16 Attachment 2 Village of Channahon Cost Spreadsheets - Core Services Proposing Bank: Estimated Charge Annual Service Bank Depository Services Annual Volume Per Item Charges Account Maintenance (15 Accounts) 180 ZBA Maintenance (1 Account) 12 Checks Paid 4,200 Image Capture 4,000 Items Deposited 48,000 Number of Deposit Slips 500 Returned Checks 20 Stop Payments 10 Lockbox: * Check Images 38,000 Number of Items (Sort) 38,000 Payments 38,000 Wire Transfers: Incoming 10 Outgoing 105 ACH T ransactions: Debits Originated 10 Credits Originated 9,400 Debits Received 100 Credits Received 25 Intra Account T ransfers 25 Other Services Not Included Above Assumed Annual Charge Annual Service (Please Itemize) Volume Per Item Charge T otal Proposed Cost: Average Monthly Amount (T otal / 12) Balance Required to Support $1.00 of Services Required Monthly Compensating Balance * The Village does not currently utilize lockbox services, therefore these numbers are estimates based on the utility and miscellaneous payments received currently via the US postal service. 16

17 Attachment 3 Village of Channahon Community Reinvestment Act Information Form 1) Please provide your Corporate Headquarters (Parent) in Illinois Community Reinvestment Act (CRA) report of last examination including rating and the period of time the rating occurs. 2) Please define the service area in which this rating applies. 3) Please provide the CRA report of last examination for the branch(s) showing the Village of Channahon as part of its geographic area. 17