REQUEST FOR PROPOSALS FOR BANKING SERVICES LEHGIH AND NORTHAMPTON TRANSPORTATION AUTHORITY JULY 7, 2014

REQUEST FOR PROPOSALS FOR BANKING SERVICES LEHGIH AND NORTHAMPTON TRANSPORTATION AUTHORITY JULY 7, 2014

TABLE OF CONTENTS PARTS PAGE NUMBER PUBLIC ADVERTISEMENT I GENERAL INFORMATION 1 II PROPOSAL / CONTRACT REQUIREMENTS 4 III CRITERIA FOR SELECTION 7 APPENDIX A B STANDARD CLAUSES REQUIRED CERTIFICATIONS

REQUEST FOR PROPOSALS BANKING SERVICES FOR THE LEHIGH AND NORTHAMPTON TRANSPORTATION AUTHORITY The Lehigh and Northampton Transportation Authority (LANta) is seeking competitive proposals from eligible financial institutions to act as its main depository institution. LANta is formed under the Municipality Authorities Act of 1945, Act of May 2, P.L. 382, as amended and supplemented. To obtain a copy of the Request for Proposal, or if you have questions regarding the Request for Proposal, contact: Ms. Melissa M. Gemelli, CPA Assistant Executive Director - Finance/Administration Lehigh and Northampton Transportation Authority 1060 Lehigh Street Allentown, PA 18103 mgemelli@lantabus-pa.gov (610) 435-2523 All proposals must be received by LANta no later than 3:00 p.m. on Friday, August 1, 2014. BY: ARMANDO V. GRECO, EXECUTIVE DIRECTOR

PART I GENERAL INFORMATION I.1. PURPOSE The Lehigh and Northampton Transportation Authority ( LANta, the Authority ) is seeking written proposals from eligible financial institutions to act as its main depository institution and to provide a $ 6,000,000 unsecured, tax-exempt line of credit to support temporary cash flow needs. I.2. OBJECTIVES This Request for Proposals (RFP) is intended to provide qualified financial institutions an equal opportunity to submit a proposal to provide LANta s banking needs. LANta is formed under the Pennsylvania Municipality Authorities Act of 1945, Act of May 2, P.L. 382, as amended and supplemented. Financial institutions considering a response to this request for proposal will be provided with the following information upon request: Audited financial statements for the year ended June 30, 2013. Internally prepared financial statements as of April 30, 2014. I.3. TYPE AND DURATION OF AGREEMENT LANta is seeking to enter a four (4) year contractual agreement covering the services outlined with an option for an additional three (3) years. Said agreement will be constructed in accordance with applicable Pennsylvania laws. The bidder s proposal and this RFP will be made part of the agreement. I.4. REJECTION OF PROPOSALS LANta reserves the right to reject any and all proposals received as a result of this request. I.5. INCURRING COSTS LANta is not liable for any costs incurred by bidders prior to issuance of a contract. I.6. ADDENDA TO THE RFP If it becomes necessary to revise any part of this RFP, addenda will be provided to all bidders who received the original RFP. 1

I.7. RESPONSE DATE To be considered, proposals must arrive at LANta on or before 3:00 p.m. on Friday, August 1, 2014. Proposal packages may be hand-delivered or mailed, but proposals received after the deadline for any reason will not be considered. Institutions mailing proposals should allow sufficient mail delivery time to ensure timely receipt of their proposals. Proposal packages must be returned to: Armando V. Greco, Executive Director Lehigh and Northampton Transportation Authority 1060 Lehigh Street Allentown, Pennsylvania 18103 I.8. PROPOSALS To be considered, bidders must submit a complete response to this RFP. Each proposal must be submitted in three (3) copies to LANta. No other distribution of proposals shall be made by the bidder. Proposals must be signed by an official authorized to bind the bidder to its provisions. I.9. ECONOMY OF PREPARATION Proposals should be prepared simply and economically, providing a straightforward, concise description of the bidder s ability to meet the requirements of the RFP. I.10. ORAL PRESENTATION Bidders may be required to make an oral presentation of their proposals. Such presentations provide an opportunity for the bidder to clarify its proposal to ensure thorough mutual understanding. LANta will schedule these presentations if necessary. I.11. PRIME INSTITUION RESPONSIBILITIES The institution will be required to assume responsibility for all services offered in its proposal whether or not it supplies them directly. Further, LANta will consider the institution to be the sole point of contact with regard to contractual matters. I.12. NONDISCRIMINATION In connection with the execution of a contract, the institution shall not discriminate against any employee or applicant for employment because of race, religion, color, sex or national origin. The contractor shall take affirmative actions to insure that minority applicants are employed, and that employees are treated during their employment without regard to their race, color, sex, or national origin. Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. 2

I.13. DISADVANTAGED BUSINESS ENTERPRISE LANta has adopted a Disadvantaged Business Enterprise (DBE) goal. In terms of this contract, meeting these goals is not mandatory. However, it should be noted that a good faith effort should be made to involve DBEs as part of the service team. I.14. FURTHER INFORMATION Informational requests are to be directed, in writing, to Melissa M. Gemelli, CPA, LANta s Assistant Executive Director - Finance/ Administration at mgemelli@lantabus-pa.gov. 3

PART II PROPOSAL / CONTRACT REQUIREMENTS II.1. PROPOSAL / CONTRACT REQUIREMENTS To be considered, the proposal must respond to all requirements of this part of the RFP. Any information thought to be relevant but non-applicable to the enumerated categories should be provided as an appendix to the proposal. II.2. SPECIFICATIONS FOR SERVICES TO BE PROVIDED A. Depository Products and Services General checking account: LANta issues accounts payable checks weekly. Approximately 500 checks clear this account each month. Money is transferred from the Authority s two savings accounts, and line of credit draws, to fund this account. Payroll account: LANta pays its employees on Thursdays, bi-weekly. LANta uses an outside payroll company to process its payroll. Approximately 50 employees receive paychecks directly. Approximately 150 employees are paid via automatic deposit of paychecks to approximately 20 banks or other financial institutions. All direct deposit information is provided to the bank by the outside payroll company. Employee federal, state and local payroll tax withholdings are forwarded via ACH two or three times each month. Of the 50 employees who receive paychecks directly, approximately 25 do not maintain bank accounts and present their checks to a branch for immediate payment. Because of contractual obligations, LANta cannot pass the bank fee for check cashing services onto its employees. LANta requires that these fees be waived for the employee and LANta. The Payroll Account currently is funded by Zero Balance Transfers through the General Checking Account. LANtaBus account: All revenue related to the Authority s fixed route system is deposited into the LANtaBus savings account. These deposits are primarily coin and currency. There are approximately 100 checks deposited to this account on a monthly basis. In addition, there are approximately 50 wires annually from various Federal, State and Local government agencies. Excess funds in this account are swept daily to pay down any outstanding balance on the line of credit. Remaining available funds remain in the account and earn interest at the daily rate. LANtaVan account: All revenue related to the Authority s paratransit system is deposited into the LANtaVan savings account. These deposits are primarily currency and checks. There are approximately 500 checks deposited to this account on a monthly basis. An average of 50 checks per month are returned. In addition, there are approximately 25 wires annually from various State and Local government agencies. 4

Excess funds in this account are swept daily to pay down any outstanding balance on the line of credit. Remaining available funds remain in the account and earn interest at the daily rate. 5

B. Collateralization In compliance with the Commonwealth of Pennsylvania Act 72 of 1971 (P.L. 281) as amended ( the Act ), one hundred percent (100%) of all Authority funds held by the bank, in excess of $100,000, shall be collateralized as required by the Act. The bank shall provide a Letter of Collaterization to the Authority on a monthly basis listing total public deposits covered by the banks collateral, total deposits of the Authority, total types and amounts of collateral held for such deposits and the location of the collateral being held. C. Credit Facilities LANta requires a $ 6,000,000 unsecured, tax-exempt line of credit to support temporary cash flow needs. This amount represents two (2) months worth of operating expenditures. LANta is willing to explore appropriate alternatives to the unsecured line. Proposers should include all alternatives. D. Investments LANta has an investment policy that allows all excess funds to be invested in vehicles approved for State and Local Governments. LANta will invest excess cash balances in accordance with this policy. E. Cash Management Services The Authority will require the ability to send and receive wire transfers and ACH transfers. The bank will receive and guarantee immediate credit on all incoming wires and wire out funds on the same day as directed by the authorized LANta officials. LANta will need the capability to access a current report, detailing the dollar amount of any incoming wire. F. Account Reconciliation LANta will require a statement for each account, along with a consolidated statement summarizing all accounts no later than ten (10) days after the close of the calendar month. The Authority requires all disbursement and payroll checks paid by the bank to be imaged (front and back) to CD-ROM and returned with the monthly bank statement. G. Account Analysis LANta will require a detailed analysis as part of its monthly bank statement. The analysis should include all charges against each account, as well as a consolidated analysis for all accounts. H. Remote Deposit Capture LANta will require remote deposit capture capabilities. I. Online Inquiry and Access LANta will require online access to its accounts. The bank must provide daily balances for all 6

Authority accounts. The report must include ledger, collected and available balances, total debit and credit information, incoming and outgoing wires, ACH debits and credits, the current balance, daily interest earnings and daily rate paid on all investments. The Authority will also need the capability to access a report of all checks that cleared during the day containing the check number and amount. In addition LANta requires the ability to initiate stop payments and transfers between accounts online. Should LANta require additional accounts or expanded services during the term of its contract for banking services, such accounts and services will be provided at rates already set forth, or for services not covered in the contract, at a rate negotiated between the financial institution and the Authority. II.3. GENERAL PROPOSAL REQUIREMENTS The proposal shall include, at a minimum: A. Written assurance of collateralization of all uninsured cash deposits of the Authority as required by Act No. 72. B. Detail of fees associated with the services requested. Sufficient descriptions of specific services available as well as how the rates are structured must be provided. C. A description of any (new or existing) product offerings as well as their fees that would be beneficial to LANta, based on the information you have been provided. D. A description of policies regarding returned checks, deposit discrepancies, and availability of funds. E. A description of the renewal process for continuation of the Line of Credit, financial reporting requirements and standard covenants and other requirements. F. Certifications as set forth in Appendix B shall be executed and included with the proposal. G. Information in support of the financial institution s ability and capacity to meet LANta s requirements, and a listing and location of the individual team members designated to manage the LANta account. 7

PART III SELECTION CRITERIA III.1. GENERAL All proposals received will be reviewed and evaluated by LANta. IT may be necessary for two or more financial institutions to be called in for an interview by LANta to further discuss the bidder s proposal. III.2. AREAS OF CONSIDERATION The following areas of consideration will be used by LANta in making the selection: A. Required Services. This refers to the bidder s ability to provide the services required by LANta. B. Bidders Qualifications and Financial Capacity. This criterion includes the experience of the institution to meet the needs of LANta. The bidder s financial capacity will be evaluated. C. Professional Personnel. This refers to the competence of professional personnel assigned to manage the LANta accounts. Qualifications of professional personnel will be measured by education and experience, with particular reference to experience on accounts similar to LANta. A résumé of the account manager(s) describing experience and qualifications in providing services to organizations of similar size shall be submitted. D. Availability. Emphasis here is on the bidder s ability to respond to the Authority. This will include the proximity to LANta of servicing facility and the location of the account manager(s). E. Disadvantaged Business Enterprise. The proposer s efforts to meet the DBE goals of the Authority will be considered. F. Cost of Services. While this factor will be weighed heavily, it will not be the sole determiner of selection. 8

APPENDIX A STANDARD CLAUSES

APPENDIX B REQUIRED CERTIFICATIONS