NOTICE TO BIDDERS
NOTICE IS HEREBY GIVEN that PROPOSALS will be received at the Office of the Clerk/Treasurer, located in the Civic Center 6000 Middlebelt Road, Garden City, Michigan 48135-2499, on or before Monday, December 16, 2019 at 2:00 PM for the following item.
Children's Savings Account (CSA) Program
Account Provider
Overview
The City of Garden City is soliciting proposals from qualified and innovative institutions interested in administering the accounts for a Children’s Savings Account (CSA) Program. This program, titled Garden City SEED (Saving for Educational & Entrepreneurial Development) Program, utilizes CSAs as a tool to promote pathways to careers. Through the program, every kindergartener (approximately 250 children each year) will be provided a CSA. It is designed to give students a boost in paying for career training, college expenses, or starting a business. More importantly, it helps build the aspirations of children and their families around careers, higher education, and their futures.
Our goal is that every penny will count toward building dreams and that the Garden City SEED program will foster hope and opportunity for our kids’ future. Along the way, students will have a chance to earn incentive deposits, learn about savings and financial education, and families will be encouraged to make deposits of their own. Our financial partner will be the key to the success of this program.
One of Garden City’s biggest concerns is the lack of skilled talent for a growing jobs market. By 2020, 65% of job postings require an education above a high school diploma. In Michigan by 2020, that number is projected to rise to 70% of jobs requiring postsecondary education (Georgetown Public Policy Institute, 2013). Of Garden City’s 18 to 24 year olds, only 33% have enrolled in postsecondary programs (American Community Survey, 2016). CSAs can play a role in increasing this number. Research shows that low-income students with savings of $1-$499 are 3 times more likely to enroll and 4 times more likely to complete post-secondary education compared to their peers without savings (Center for Social Development, 2013).
Finally, CSA programs have taken hold nationwide. More than 380,000 students participate in a CSA program. Michigan is home to four CSA programs, including Lansing SAVE, Barry County Kickstart to Career, Sanilac County Promise Fund, and Kickstart to Career Newaygo County.
Key elements of the program design:
- Each year, every kindergartener will have access to a Children’s Savings Account seeded with an initial deposit.
- Access to funds is restricted until graduation from high school and funds are to be used for approved education, training, entrepreneurial endeavors, and/or certification expenses.
- School-based initiative with integrated educational activities linking savings to school engagement and future career and asset planning.
Scope of Services
The main role of the account provider shall be to administer the Children’s Savings Account for student enrollees in the CSA program and partner with schools to provide financial education to students. In addition, the account provider shall provide one representative to serve on the program design team. Other services, such as providing student account or program funding can be included in the proposal.
Intent of Request
The intent of this Request for Proposal (RFP) is to gather information on financial institution account products and services which have the primary functions, desired features, and cost structure necessary to make universal, automatic savings accounts accessible to all kindergarteners and their families. The goal of the RFP is to award a single contract based on this RFP and subsequent negotiations. The financial institution selected by the City of Garden City will then be the account provider for all account holders.
The City of Garden City seeks responses for an innovative account product and administrative services which provide a high level of access, savings, participation, and returns; control for risk; and allow for data tracking and easy administration. This RFP does not attempt to describe all intricacies and functions of the program nor the City of Garden City’s vision of an ideal account and services. Instead, the RFP is designed to solicit information in a format to organize response for analysis, while allowing responders a wide degree of flexibility in describing account features and services.
Required Account Component and Activities
A savings vehicle for the CSA program must include the following features. Proposals will be reviewed for how closely proposed account(s) fit the ideal features.
- Account structured with the City of Garden City serving as the owner of the accounts which will be used for the benefit of the student
- Ability to manage and track public and private contributions in order for the City of Garden City to distribute funds to students accordingly
- FDIC insured
- Interest-bearing
- No minimum deposit amount
- No minimum balance requirements, fees, or penalties
- Ability to make deposits to the account through multiple methods (in-branch, mail, direct deposit, ACH, in-school, or online)
- Restricted use of account funds until high school graduation, dual enrollment, or other special situations or circumstances approved by the Garden City SEED Committee
- Automatic enrollment of verified kindergarten students in Garden City Public Schools
- At the time of account closing, private contributions can be liquidated, but public/philanthropic contributions will be returned to the City of Garden City
- Early withdrawal of private contributions to accounts will be made available upon request and approval from the Garden City SEED Committee
- Student financial education, compliant with district curriculum, is conducted in conjunction with the schools
- Structure protects account funds from being counted in asset tests for public benefits or means-tested financial aid applications for students and their families
- Private and public philanthropic contributions to the account are traced separately
- Provide each student with an account information sheet that includes account number and statement access information within 30 days of account enrollment
- Provide periodic statements to students and the Garden City SEED Program
Preferred Program Components
A savings vehicle for the CSA program could potentially include the following feature:
- The institution will go to schools to collect deposits at least quarterly.
- Financial education provided for students.
- Participation in program funding.
Account Provide RFP Questions
Part I: Organizational Capacity
Contact Information
Provide the name, title, address, and telephone number of the person we may contact with questions about this RFP.
If the above person is not the authorized negotiator for the contract, include the name and phone number of a person in your organization authorized to negotiate with the City of Garden City.
Organizational Information (briefly respond to each)
- Provide a brief history of the institution.
- Provide the names, titles, and credentials of individuals who would be assigned to the CSA program. Include their current responsibilities and location.
- Identify and discuss key measures of the bank’s financial strength.
- What, if any, significant organizational changes have occurred locally or nationally in the past three years?
- What makes you uniquely qualified to serve as the account provider for this project?
- What experience does your organization have administering student savings accounts or other asset building-related activities, such as an Individual Development Account program?
- Indicate the regulatory authority(s) that monitor your organization as well as internal control compliance structures.
- Describe any potential conflicts of interest.
- Has your institution been investigated by any state or federal regulatory or law enforcement agency in the last ten years? If yes, describe in details the substance and results of each investigation.
Part II: Narrative (750 words or less each)
- Detail any outreach work you are currently doing in Garden City.
- Does your agency currently provide financial education to the public? If so, what type of education and to whom?
- How will you partner with schools to provide financial literacy and ensure it is compliant with their curriculum?
- Include a narrative of why your financial institution is interested in partnering with the local schools and the City of Garden City on the CSA program.
- Provide a narrative description of proposed accounts and the services to be provided, specifically addressing the extent to which they meet the required account and preferred program components above.
Part III: Applicant Questions (briefly respond to each)
Account
- What type of account is proposed?
- What type of return will the account yield and how will it be determined?
- What information is required to open an account?
Contributions & Withdrawals
- How can family, friends, and children deposit into accounts? (Electronically, cash, etc.)
- How can public agencies, philanthropy, community organizations, and employers/corporations contribute to the accounts?
- How will the financial institution help encourage private and public contributions to accounts?
- Can private and public/philanthropic contributions to the account be tracked separately? If so, how?
- How will funds be withdrawn from an account and how will approved expenses be paid?
Reporting & Accounting
- What is the frequency and format of reporting to families and parents on account balances?
- What information will be provided to the City of Garden City and its partners on account balances (including format and frequency)?
- Will the City of Garden City be able to receive reports on both individual and aggregate accounts and make a further request for analysis? Please describe your reporting experience and capabilities.
- Will there be the ability to report data by the school? By the class cohort?
Security & Customer Service
- Describe the educational component the financial institution will provide for students. Include frequency, curriculum utilized, and grade levels.
- What steps to you take to ensure the confidentiality of client data?
- Please describe the details of how customer service will be provided to student account holders and their families.
- Do you have a disaster recovery plan? If so, describe. When was it last tested? Describe your system’s backup process, including where data is located.
Part IV: Timeline
Describe the proposed timeline to develop an appropriate account structure to manage multiple sources of deposits and track individual student contributions.
Proposal Submission
Questions regarding the proposal process can be directed to Faith Briggs, GC SEED Project Coordinator at the City of Garden City, at 734.793.1849 or at FaithB@gardencitymi.org.
Submit two (2) sealed copies of the proposals to Garden City Clerk’s Office (at 6000 Middlebelt Road, Garden City, MI 48135) by 2:00 p.m. EDT on Monday, December 16, 2019. PROPOSALS SHOULD BE LABLED “CHILDREN’S SAVINGS ACCOUNT RFP”.
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