Aurora Housing Authority

1449 Jericho Circle Aurora IL 60506 Phone (630)701-9977 Fax (630) 701-9974

REQUEST FOR PROPOSAL

BANKING SERVICES

Issue Date:June 13, 2016

Due Date: July 20, 2016

No later than 3:00 PMCentral Standard Time

REQUEST FOR PROPOSAL

BANKING SERVICES

The Aurora Housing Authority (AHA) is requesting proposals for its

comprehensive banking services.

Proposals will be received by Keith Gregory, Executive Director of the AHA until 3:00 p.m. (Central Standard Time) on July 20, 2016.

Detailed Request for Proposal (RFP) Banking Services information including general information, scope of work, terms and conditions, and required format for proposals is available from David Kramer by calling (331) 330-4173, or by email at . The RFP information is also available on the AHA’s website at Public Documents.

The AHA reserves the right to reject any and all submittals and to waive irregularities and informalities in the submittal and evaluation process. This RFP does not obligate the AHA to pay any costs incurred by the respondents in the preparation and submission of the proposal. Furthermore, the RFP does not obligate the AHA to accept or contract for any expressed or implied services.

Dated this 13th day of June, 2016

Keith Gregory

Executive Director

BANKING SERVICES

REQUEST FOR PROPOSAL

TABLE OF CONTENTS

Description Page

Section 1General Information

  1. Introduction and Mandatory Requirements3
  2. AHA Overview and Account Description4
  3. RFP Coordinator5
  4. RFP Timeline5
  5. Questions Regarding the RFP5
  6. RFP Amendments5

G.Proposal Response Date and Location6

H. Pre-Proposal Conference6

I. AHA”S Reservation of Rights7

Section 2RFP Response Elements

  1. Statement of Qualifications Checklist8
  2. Proposed Fee Schedule8
  3. Statement of Qualifications9
  4. Banking Services Required9
  5. Banking Service Questions 16
  6. Client References16
  7. Funds Availability Schedule16
  8. Non-Collusion Affidavit16

Section 3Evaluation Process

  1. Responsiveness to RFP16
  2. Ability to Perform Required Services16
  3. Evaluation Criteria16
  4. References17
  5. Fees 17

F.Interviews and Site Visits17

G.Right to Negotiate Final Fees 17

Section 4Contract and Terms18

Attachments:

Attachment IAgreement for Banking Services19

Attachment IASample Scope of Services22

Attachment IBInsurance Requirements23

Attachment IIStatement of Qualifications Checklist24

Attachment IIIProposed Fee Structure for the AHA25

Attachment IVFunds Availability Schedule25

Attachment VNon-Collusion Certificate26

Attachment VIGeneral Depository Agreement28

Attachment VIIRepresentations, Certifications and OtherAttached

Statements of Biddersform HUD -5369-A (pdf.)

(fully complete and include with Proposal)

REQUEST FOR PROPOSAL FOR BANKING SERVICES

SECTION 1 - GENERAL INFORMATION

  1. INTRODUCTION AND MANDATORY REQUIREMENTS

The Aurora Housing Authority (AHA) is seeking proposals from qualified licensed and bonded entities,Commercial Banks or other Banking Institutions (Bank,Bidder or Proposer) to provide various banking services, as described herein. The objective is to periodically test the market to assure that the AHA is receiving the optimum level of service at the most competitive rates.

Proposals are due by 3:00 PM.on July 20, 2016Proposals will be received at the following address:

Keith Gregory, Executive Director

Aurora Housing Authority

1449 Jericho Circle

Aurora, IL 60506

“Banking Services Proposal.”

By submission of a proposal, the Bank agrees, if its proposal is accepted, to enter into a contract with the AHA in the form included in the RFP documents to complete all work as specified or indicated in the RFP for the negotiated price within the term of the contract.The Bank further accepts all of the terms and conditions of the RFP to be incorporated in the Contract For Banking Services.

The AHA’s expectation upon completion of the Request for Proposal (RFP) process is to enter into a FIVE (5) year contract with the Bank with possible annual renewals for up three (3) years based on performance.

Proposals submitted should demonstrate the Bidder’s cost effective and innovative approach to the AHA’sbanking needs as well as the rapidly changing demands of the future.

To be considered for selection, Bidders must meet at least the following minimum qualifications:

  • Institution to offer Banking Services – must hold a charter from either the United States Government or the State of Illinois.
  • Access to the Federal Reserve System – must be a member of (or have access to) the Federal Reserve System and have access to all Federal Reserve System services.
  • Legal Compliance – must be in compliance with all applicable laws, rules, regulations, and ordinances of the AHA, the City of Aurora, the State of Illinois, the Department of Housing and Urban Development (HUD) and the United States.

The Bidders should also meet the following requirements:

  • All accounts proposed by the Banking institutions must be in compliance with FINANCE (30ILCS235/) Public Funds Investment Act and the FINANCIAL REGULATION (205ILCS616/) Electronic Fund Transfer Act.
  • Location of Banking Office – Should have established offices or local branches within the City of Aurora.
  • Experienced Staffing – Agree to assign dedicated staff who are committed, capable and experienced with servicing municipal accounts.
  1. AHA OVERVIEW AND ACCOUNT DESCRIPTION

It is the mission of the AHA to promote the original philosophy of public housing as a temporary helping hand by providing housing assistance to those in need with understanding, respect and professionalism.

The primary focus of our mission is to provide and maintain quality, affordable housing within a safe, stable environment while promoting educational, employment,economicdevelopment and self-sufficiency opportunities for the residents we serve to enhance and improve their lives and provide them with an opportunity to break the cycle of poverty, strive towards upward mobility and independent lifestyles.

The AHA is governed by a 7-member Board of Commissioners appointed to staggered 5-year terms by the Mayor of the City of Aurora and is subject to the requirements of Title 24 of the Code of Federal Regulations (herein after, “CFR”) and the AHA’s procurement policy. Board members are responsible for setting policy, representing the community interest, and hiring the Executive Director who is accountable for agency operations. The AHA has approximately thirty five (35) employees.

The AHA has 502 Public Housing Units and 893 Housing Choice Vouchers (HCV). The scope of work includes a full range of banking services necessary to support the day to day operation of the AHA.

The United States Department of Housing and Urban Development ("HUD"), a federal agency, partially funds and monitors operations of the AHA. Nothing contained in this RFP or in the contract resulting from the selection process shall be construed to create anycontractual relationship between the successful Bidder and HUD.

  1. RFP COORDINATOR

Upon release of this RFP, all Bidder communications concerning this information request shall be directed to the RFP Coordinator listed below. Unauthorized contact regarding this RFP with other AHA employees may result in disqualification. Any oral communications will be considered unofficial and non-binding on the AHA. EachBidder should rely only on written statements issued by the RFP Coordinator (RFPC).

David Kramer, Director

Compliance & Reporting

Aurora Housing Authority

1449 Jericho Circle

Aurora, IL 60506

Phone (331) 330-4173

Facsimile (630) 405-7207

Email:

  1. RFP TIMELINE (subject to change)

RFP distributed to banks June 13, 2016

RFP Questions (if any) Due 3:00 PM July 11, 2016

Pre-Bid Meeting 10:00 AM. July7, 2016

Proposal responses due from banks #:00 PM CST July 20, 2016

Interviews of highest rated Proposers(based on evaluation of RFP’s)

Recommendation to AHABoard of Commissioners August 24, 2016

  1. QUESTIONS REGARDING THE RFP

Questions regarding the bid process or specific aspects of the RFP should be mailed, e-mailed, or sent by facsimile transmission to the RFP Coordinator and must be received no later than 3:00 PM. on July 11, 2016.

Questions and answers will be consolidated and provided to Bidders at the Pre-Bid Meeting, July 7, 2016. Bidders that do not attend the Pre-Bid meeting will have answers to questions sent via email and/or facsimileto all banks on record as having received the RFP.

F.RFP AMENDMENTS

The AHA reserves the right to request any Bidder to clarify its proposal or to supply any additional material deemed necessary to assist in the evaluation process of a proposal.

The AHA reserves the right to change the RFP timeline or issue amendments to the RFP at anytime. The AHA also reserves the right to cancel or reissue the RFP.

The AHA reserves the right to reject any and all responses, to waive any irregularities and/or informalities in the selection process, to request clarification of information from any Bidder and to effect any agreement deemed by the AHA to be in its best interest.

The AHA will not reimburse any Bidders for any costs involved in the preparation and submission of a response to this RFP or in the preparation for and attendance at subsequent interviews. Furthermore, this RFP does not obligate the AHA to accept or contract for any expressed or implied services. In the event of a material modification, Bidders will be given the opportunity to modify their proposal in the specific areas that are affected by the modification.

G.PROPOSAL RESPONSE DATE AND LOCATION

Three (3) copies of your proposal must be received by the AHAnolater than 3:00 p.m. onJuly 20, 2016. Proposals must be clearly marked “Banking Services Proposal.” Mail or deliver responses to:

Keith Gregory, Executive Director

Aurora Housing Authority

1449 Jericho Circle

Aurora, IL 60506

“Banking Services Proposal.”

Proposals received after the specified time will not be considered. Bidders accept all risk of late delivery of mailed proposals regardless of fault. Facsimile proposals will not be accepted. All proposals and accompanying documentation will become the property of the AHA and will not be returned. An electronic file of this document is provided for ease of preparation of the RFP response. Amendments to proposals will be considered only if they are received by the above deadline. A corporate official legally authorized to bind the bank must sign the proposal.

H. PRE-PROPOSAL CONFERENCE

Pre-Proposal Conference: Thescheduled Pre-Proposal Conference will be held at 10:00 a.m., on July 7, 2016. This meeting will be held at the AHA Office, 1449 Jericho Circle, Aurora, IL. Pursuant to HUD regulations, this meeting is not mandatory. Typically, such conferences last 1 hour or less, though such is not guaranteed. The purpose of this conference is to assist prospective bidders in having a full understanding of the RFP documents so that he/she feels confident in submitting an appropriate proposal. Therefore, at this conference the AHA will conduct an overview of the RFP documents, including the attachments. Prospective bidders may also ask questions, though the RFP Coordinator may require that some such questions are delivered in writing prior to a response. Whereas the purpose of this conference is to review the RFP documents, attendees should bring a copy of the RFP documents to this conference; the AHA will not distribute at this conference any copies of the RFP documents.Many prospective bidders feel comfortable without attending the pre-conference.

  1. AHA’S RESERVATION OF RIGHTS:
  1. The AHA reserves the right to reject any or all proposals, to waive any informality in the RFP process, or to terminate the RFP process at any time, if deemed by the AHA to be in its best interests.
  1. The AHA reserves the right not to award a contract pursuant to this RFP.
  1. The AHA reserves the right to terminate a contract awarded pursuant to this RFP, at any time for its convenience upon ninety (90) days written notice to the successful proposer.
  1. The AHA reserves the right to determine the days, hours and locations that the successful proposer(s) shall provide the services called for in this RFP.
  1. The AHA reserves the right to retain all proposals submitted and not permit withdrawal for a period of 60 days subsequent to the deadline for receiving proposals without the written consent of the AHA RFPC.
  1. The AHA reserves the right to negotiate the fees proposed by the any proposer.
  1. The AHA reserves the right to reject and not consider any proposal that does not meet the requirements of this RFP, including but not necessarily limited to incomplete proposals and/or proposals offering alternate services not in compliance with services requested in the RFP.
  1. The AHA shall have no obligation to compensate any proposer for any costs incurred in responding to this RFP.
  1. The AHA shall reserve the right to at any time during the RFP or contract process to prohibit any further participation by a proposer or reject any proposal submitted that does not conform to any of the requirements detailed herein. By accepting or downloading this document, each prospective proposer is thereby agreeing to abide by all terms and conditions listed within this document, and further agrees that he/she will inform the RFPC in writing within 5 days of the discovery of any item listed herein or of any item that is issued thereafter by the AHA that he/she feels needs to be addressed. Failure to abide by this time frame shall relieve the AHA, but not the prospective proposer, of any responsibility pertaining to such issue.
SECTION 2 – RFP RESPONSE ELEMENTS

To be considered by the AHA, the proposal must be submitted using the described format. The proposal must be completed in its entirety. Any relevant supplemental information should be included as attachments. If a bank cannot meet a service requirement, the bank should enter “No Proposal” for that specific requirement.

  1. Statement of Qualifications Checklist

The Bidder shall submit a checklist using the form supplied in Attachment II. Proposals should be prepared simply and economically, providing a straightforward, concise description of the proposer’s capabilities to satisfy the requirements of the RFP. Special binding, colored displays, promotional materials, etc. are not desired. Emphasis should be on the completeness and clarity of the content.

Some areas in the RFP may be redundant. However, it is critical that the AHA secure the necessary Bank services to meet the day to day needs of the agency.

  1. Proposed Fee Schedule

The Bidder shall provide a complete schedule of fees based on the documents supplied in Attachment III.Volumes indicated on this form are a monthly average. Actual volumes may vary. For services not specified on the form, but which the Bidder proposes to charge for, or where a different level of service is proposed in the best interest of the AHA, the Bidder shall provide a description of the service and the proposed fee structure.

The Bidder shall provide a lump sum bid amount for monthly services based on the services currently provided by the Old Second National Bank for the AHA. These services include, but are not limited to the Collateral Report, CDARS Statement, monthly Analysis Statement, three (3) checking accounts and other commonly provided banking services for a municipal, rental or corporate agency The monthly fees should also be added to provide an amount of the estimated annual services.

This figure will be used in the evaluation process under the Bidders fee schedule to perform all work as described in the RFP.

  1. Statement of Qualifications

The Bidder shall provide a summary of the Bidder’s qualifications to provide banking services including:

  1. a list of the specific individuals who will be assigned to work on the accounts and their qualifications, separately for each of the following areas: general banking services, wire transfer services, ACH Direct Deposit, ACH Preauthorized Debits, and local office/branch contact person.
  1. a summary of the Bidder’s experience in providing the required services for large real estate firms,corporations, municipalities or government entities in Illinois;
  1. key measures of the Bidder’s financial strength, e.g. capital ratios, market capitalization, total assets, etc.;
  1. ratings for the Bidder and/or Bidder’s holding company from two of the following agencies: Standard & Poor’s, Moody’s, or Fitch; include ratings for Bank Financial Strength, Bank Deposits and Issuer Rating; and
  1. a list of the number and location of your branches, cash vaults or affiliated Bidders within a 5-mile radius of the AHA (1449 Jericho Circle, Aurora, IL).
  1. Scope Of Work - Banking Services Required

1. General Fund Accounts

General Banking: The Bidder must have centralized cash vault operation that can accommodate the security, deposit volume, and change order demands associated with AHA accounts.The Bidder must process returned/re-cleared items, stop payments, change/currency orders, and photocopying services for items or documents related to the AHA’s bank accounts.

a.The AHA will make deposits and withdrawals from any of its accounts upon demand. All accounts are to be treated as separate and distinct accounts not to be combined as mandated by HUD requirements. Each account is required to be interest bearing as possible.

b.The AHA will not participate in repurchase agreements.

c.The bank will be required to assist in the purchase of other short-term securities such as CD’s, Treasury Bills, Bonds, etc., at no additional charge to the AHA.

d. Collateralization – AHA as an agent for Federal funds is required by HUD regulations to have all deposited funds 100% collateralized and backed by no less than “investment grade” securities issued by Federal, state, or local banking entities. Basic Third Party Collateral for funds over $250,000.00 are required for all AHA funds.Deposits of funds in bank accounts or purchase of Certificates of Deposit in amounts exceeding the FDIC or FSLIC coverage ($250,000) is prohibited unless excess amounts are fully collateralized. HUD requirements are incorporated in the General Depositary Agreement (ATTACHMENT VI)which specifies that amounts in excess of insurance coverage “by fully and continuously secured by the bank, by the deposit or setting aside of collateral of the types and in the manner as is prescribed by State law for the security of public funds.” In the absence of contradictory State requirements, HUD recommends that the collateral consist of clearly identified (not pooled) securities, that the collateral be either government agency securities or CD’s offered by appropriate licensed and bonded institutions that yields interests on AHA accounts. The securities must be pledged to (in safekeeping for) AHA accounts as appropriate. When collateralization is required, the AHA should obtain, for all deposits, written confirmation that specific securities have been pledged and the collateralization documented in the depositary’s records(FINANCE - (30ILCS235/) Public Funds Investment Act. The AHA should receive a monthly CDARS Customer Statement.