CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of RFP 21-155, Banking Services, to Naperville Bank & Trust (a Wintrust Community Bank) for an amount not to exceed $407,000 and for a five-year term
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In 2019, the City Council authorized the second and final two-year renewal term to the current Banking Services Contract 13-025.
In May 2021, the Finance Department issued RFP 21-155, Banking Services with the goal of entering into an agreement with a financial intuition(s) that can provide general banking services including accurate and efficient processing of deposits and payments, security of funds and transactions and high-quality customer service. The following services were included in the RFP:
1. Lockbox services;
2. Fund distribution;
3. Payment issuance for both accounts payable and payroll in paper check, EFT and direct debit forms;
4. Deposit services including physical check/cash/currency deposit;
5. Bank draft;
6. E-Check; and
7. Merchant card deposits.
Specifically, the City maintains ten accounts with an average balance of $22 million, not including funds held in investment accounts under separate management. The accounts are held in depository. The account structure is designed to manage the deposits from different sources and for different components (e.g., the Library, Naper Settlement and Commuter Parking). Daily cash and check deposits are made into a local bank office.
The City's total payroll exceeded $63 million for 2020, of which $62 million was paid through direct deposit and $1 million was paid through checks. Approximately 98% of employees use direct deposit. In 2020, the City issued approximately 620 payroll checks and direct deposited another 31,099 checks. Payroll is prepared bi-weekly.
Checks are also generated weekly for accounts payable, with an estimated total of 10,500 printed checks and 3,...
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