(a) Advertising, transmittal, and award of bids. It shall be the duty of the Comptroller, at least once each year before the first day of December, to advertise for bids, from national and state banks and federal and state savings and loan associations seeking to be designated as municipal depositories, for the payment of interest upon the funds of the City of Chicago and Chicago Board of Education. Provided, however, that Chicago local school funds which are designated by the Chicago Board of Education as school internal accounts which, in general, are funds raised and expended for educational programs and for the benefit of students, shall be excluded from the funds of the Chicago Board of Education that are subject to the provisions of this Article V.
Such bids and all information collected pursuant to this Article V shall be transmitted concurrently by the Comptroller to the City Council for its information and consideration no later than the fifteenth day of December of each year, to the end that an award or awards may be made upon such bids by the City Council before the beginning of each fiscal year. Concurrently with the transmission to the City Council of the information required under this paragraph, the Comptroller shall publish such information on the Comptroller's website and the City of Chicago Data Portal, except to the extent that the information to be published has been redacted because it is exempted from disclosure by the Illinois Freedom of Information Act or any other applicable law.
Prior to the City Council approving any award to a prospective municipal depository, at least one subject matter hearing, at which no vote will be taken, shall be held annually by the Committee on Finance to discuss such information transmitted by the Comptroller to the City Council under this section.
Such awards shall be made to the highest and best responsible bidder or bidders. The City Council shall have the power to reject any or all bids and to designate as many municipal depositories as it deems necessary to protect the city's interests. Only state or national banks or federal or state savings and loan associations that are regularly organized, and are federally insured under the Federal Deposit Insurance Act, and maintain an office within the corporate limits of the City of Chicago shall be designated as municipal depositories.
(b) Duplicate copy of bid to be submitted to the Treasurer. Each bank or savings and loan association that submits a bid to the Comptroller pursuant to subsection (a) of this section shall simultaneously submit a duplicate copy of its bid submission, including any subsequent amendments thereto, to the Treasurer.
(c) Failure to designate – Legal effect. If, prior to the beginning of any fiscal year, the City Council fails to enact an ordinance designating municipal depositories for such fiscal year, the municipal depositories in existence as of 11:59 P.M. on the last day of the year immediately preceding commencement of the applicable fiscal year shall retain their designation as municipal depositories until ten days after any such ordinance takes legal effect.
(d) Acquisition, merger or consolidation – Legal effect on municipal depository designation. If a municipal depository acquires or is acquired by, or merges or consolidates with, any other bank or savings and loan association or subsidiary thereof, regardless of whether such bank or savings and loan association or subsidiary thereof is a municipal depository, such newly created or successor bank or savings and loan association shall be deemed, by operation of law, to be a municipal depository as of the date of acquisition, merger or consolidation. Such designation shall remain in effect until ten days after an ordinance designating municipal depositories for the next applicable fiscal year takes legal effect.
(e) The requirements for municipal depositories shall also apply to those institutions seeking to be designated as custodians of securities for the City.
(Prior code § 7-30; Amend Coun. J. 12-11-96, p. 36356; Amend Coun. J. 9-14-16, p. 29717, § 1; Amend Coun. J. 9-14-21, p. 34254, § 1; Amend Coun. J. 10-27-21, p. 39543, Art. II, § 1)