City of Kewanee Request for Proposal for Banking Services September 2016

City of Kewanee 401 E. Third Street Kewanee, IL 61443

City of Kewanee

RFP for Banking Services

I. INTRODUCTION A. General Information The City of Kewanee, Illinois (the “City”), invites commercial banking institutions (the “Bank”) who possess the capability and expertise to provide depository and various other banking services for the City, to submit proposals for the provision of those services according to the requirements set forth in this document. The Bank selected will provide these services with the highest level of quality at competitive rates. B. Background Information Located in Henry County, the City of Kewanee encompasses a 6.7 square mile area and is home to 12,916 residents based on the 2010 United States Census. The City was incorporated in 1897 and operates as a non‐home rule unit of government. The City is primarily residential and commercial in nature, with housing stock consisting of 5353 units. The City operates under a council‐manager form of government as defined by the Illinois Municipal Code. The Mayor and four council members are elected at large to serve four year terms. The City Manager is hired by the Mayor and City Council. Daily operation of the City include community and economic development, police, fire & emergency medical services, water and sewer, streets, stormwater, solid waste, maintenance of parks, cemeteries, and public facilities, finance, communication and information technology.

C. Instructions To be considered, three (3) paper copies of the proposal must be mailed or hand delivered in a sealed envelope bearing on the outside the name and address of the proposer and the words “City of Kewanee Banking Services Proposal” to: Deborah Johnson Director of Finance & Administrative Services City of Kewanee 401 E. Third Street Kewanee, IL 61443 All proposals must be received no later than 3:00 pm on Friday, September 30, 2016. Facsimile or electronically transmitted proposals will not be accepted. The Bank accepts all risks of late delivery of mailed proposals, regardless of fault. The proposal must be signed in the name of the proposer and must bear the handwritten signature of the person(s) duly authorized to sign the proposal.

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RFP for Banking Services

City of Kewanee

D. Contract Term The City will be entering into a three (3) year agreement with the Bank for the services outlined in this proposal, with the option for the City to renew for an additional two (2) year period upon mutual agreement of terms with the Bank. Agreed upon fees will remain fixed for the first three years of the contract. The City reserves the right to cancel all or parts of any contract awarded at any time for nonperformance, inadequate or poor performance of service, reporting, etc., subject to ninety (90) days written notice. The Bank shall be entitled to just and equitable compensation for satisfactory work completed to the termination date, but under no circumstances will any damages be paid as a result of the termination of the contract. E. Terms and Conditions The City reserves the right to reject any or all proposals and to waive minor irregularities in any proposal submitted. Proposal must express agreement to meet or exceed all specifications. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposal, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the firm selected. The City reserves the right to amend, cancel or reissue the RFP at any time. In the event of a material modification, notice will be published to all known proposers. If deemed necessary by the City, proposers will be given an opportunity to modify any previously submitted proposals in the specific areas that are affected by a modification prior to the closing date for the submission of proposals. The transaction amounts and volumes identified in this document are estimates based on prior information. The City in no way guarantees these as minimum or maximum volumes. There is no expressed or implied obligation for the City to reimburse responding firms for any expenses incurred in preparing proposals in response to this request. After the contract period has been completed, the financial institution agrees to maintain all terms of the contract during a transition period of at least ninety (90) days while any accounts are being closed.

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RFP for Banking Services

City of Kewanee

F. Proposal Format All Banks wishing to submit a proposal must submit the following documents: 

Title Page including proposal subject, bank name, the name, address, e‐mail address and phone number of the contact person for the bank, and the date of the proposal

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Background information of the Bank, including full name and principal address, Kewanee locations (if available), basic information of the Bank as an institution and summary of experience with municipal clients

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A description of the organization and location of the relationship team that will be assigned to the City

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Complete cost proposal listing all fees

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A listing of any exceptions within the proposal

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A description of all online banking services included in the cost proposal

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A listing of any additional recommended services the City may choose to implement in addition to the outlined required services

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Proposed implementation schedule

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Contact information for a minimum of three (3) relevant references for each of the required services, preferably municipal, in the regional area of similar size and services requested.

G. Oral Presentation The Selection Committee may, at its discretion, request any or all Banks to make oral presentations. Such presentations will provide the Banks with an opportunity to answer any questions the Selection Committee may have on a Bank’s proposal. Not all Banks may be asked to make such oral presentations.

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RFP for Banking Services

City of Kewanee

II. EVALUATION OF PROPOSALS A. Selection Committee Proposals submitted will be reviewed by a Selection Committee, consisting of the Director of Finance & Administrative Services, the City Manager, and the City Clerk. Other parties within the City may be consulted for input as it relates to their areas of responsibility or expertise. The City warrants, represents, and certifies that no elected or appointed official or employee of the City has or will benefit financially or materially from this procurement. Any contract and/or award arising from this RFP may be terminated by the City if it is determined that gratuities of any kind were either offered to, or received by any of the aforementioned officials, elected officials, or employees of the City from the vendor. B. Selection Criteria The following criteria will be analyzed to determine which bank the City will contract with. These criteria are not listed in order of importance. 

Fees for service

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Online capabilities

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Customer service

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Safety and creditworthiness of Bank

C. Timeline of Review and Final Selection The Selection Committee will review the pro posals and make a recommendation to the City Council. The final selection will remain the decision of the City Council. Request for Proposals Issued Due Date for Proposals Review of Proposals City Council Approves Contract Selected Bank Notified

September 2, 2016 September 30, 2016 at 3:00 pm September 30 through October 20 October 24, 2016 October 25, 2016

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RFP for Banking Services

City of Kewanee

III. SCOPE OF SERVICES A. General The City is seeking proposals for banking services of both core services and non‐core ancillary services. The preferred arrangement would award a contract for all services to one Bank with a full service branch in or near Kewanee that offers after hour drop box capabilities. B. Collateralization of Account Balances All City funds on deposit in excess of FDIC insurance limits must be secured by some form of collateral, witnessed by a written agreement and held in the name of the City at an independent third party institution. The amount of collateral provided will not be less than 110% of the fair value of the net amount of public funds being secured. The City will accept the following assets as collateral: 

U.S. Government Securities

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Obligations of Agencies or Instrumentalities of the U.S. Government

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Obligations of any State of the United States, or any municipal or other political subdivision thereof that are rated “AA” or better by a nationally recognized rating service

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General Obligation Municipal Bonds rated “A” or better by a nationally recognized rating service

C. Accounts Included The City will have approximately twenty (20) separate checking and savings accounts set up. The types of accounts will include the General Fund Operations account, the Payroll account, the Health Care Fund account, various TIF accounts, various Bond and Debt Service accounts, and several accounts for Police activity such as state and federal forfeitures. During the previous calendar year, the City issued over 1700 accounts payable checks, totaling approximately $12.5M. D. Bank Statements The City will accept monthly bank statements in electronic form or paper form to be received within ten (10) business days after the last day of the month and will include copies of all cleared items.

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RFP for Banking Services

City of Kewanee

E. Monthly Fees and Charges The City currently pays minimal fees. All charges for banking services shall be reported on a monthly account analysis statement along with an invoice and received in electronic form or paper form within ten (10) business days after the last day of the month. The City will review the charges and process payment with an option to select automatic payment, if desired. F. Automated Clearinghouse The bank must be both a “sending” and “receiving” bank on the Automated Clearing House (ACH) network to accommodate a payroll direct deposit program and vendor payments, as well as other services. This service shall also include full account blocks and filters to safeguard the City assets and information. Our primary use of ACH transactions is for payroll processing. The City estimates that there are approximately 2200 ACH payroll deposits annually, totaling approximately $2.5M in activity. G. Online Banking Services The City requires the Bank to provide comprehensive online banking services. These services shall have sufficient security features to ensure the protection of City assets and information. Please provide a description of online services as well as security features in your proposal. At a minimum, the following online services will be required: 

Daily balance reporting

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Detailed credit and debit postings

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Initiation of internal account to account transfers

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Initiation of recurring wire transfers and ACH payments

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Ability to save recurring wire transfer instructions in reusable templates

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Initiation of ACH debit and credit type transactions

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Placement of stop payment orders

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Ability to view minimum of last twelve (12) months of statements

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Ability to configure user accounts with multi‐level security

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RFP for Banking Services

City of Kewanee

H. Transfers Between Accounts On a regular basis, the City will make transfers between the various accounts. Some transfers may be done electronically via online banking services. In emergency situations, transfers may be initiated via the phone by authorized signers. Credit for any transfers between accounts will be given on the same day as the transfer is made. I. Corporate Credit Card Services The City requires the availability of a corporate credit card program for use by management level executives. Cards will be issued to approximately 10 managers and will be used for travel and business related expenses. J. Additional Information Requested The City would encourage any other suggestions, with cost estimates, if applicable, beyond the stated services that would provide improved efficiency or beneficial service enhancements. K. Certificates of Deposits The City is also looking at the potential of placing some money into 6-12 month CDs. Please quote what rate your institution would be willing to provide to the City of Kewanee for the following: 6 month CD  50,000  100,000  250,000  500,000  1,000,000 12 month CD  50,000  100,000  250,000  500,000  1,000,000 This portion will be selected separately from the banking services. The City requests that all fees be waived, if early withdrawal needs to take place. Interest is to be applied to the CD balance.

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RFP for Banking Services

City of Kewanee

IV. CITY OF KEWANEE INFORMATION A. Contact Persons The City understands that the bank may need to contact City staff to ask questions that would be useful in the preparation of their response to this RFP. The City asks that the bank be respectful of the time and duties of City staff and that such contact be limited to the individuals identified below: Deborah Johnson Director of Finance & Administrative Services 309-852-2611 x227 [email protected]

Melinda Edwards City Clerk 309-852-2611 x226 [email protected]

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