Capital Area Rural Transportation System
The CARTS District
Request for Proposal
Banking Services
Addendum 1
CARTS RFP-2014-01-Banking
October 12, 2014
Request for Proposal
Banking Services
INTRODUCTION
Capital Area Rural Transportation System (“The CARTS District”) is requesting proposals for
banking services from banking institutions domiciled in or having a presence located within the
boundaries of the CARTS district. The successful Offeror’s contract will extend from December 1,
2014 thru November 30, 2019, or the date on which a duly qualified successor is chosen to serve as
depository.
This Request for Proposal (RFP) represents CARTS efforts to provide for the safety of all if its funds
and securities, the availability of those funds for the payment of all necessary obligations,
improvement of operational efficiency, to minimize banking costs and maximize banking services.
QUALIFICATIONS
By submitting a proposal in response to this RFP, Offeror attests and represents to CARTS that such
Offeror meets the following qualifications and will, at all times during the period of the Depository
Contract, continue to maintain such qualifications:
1. Offeror is a National or Texas Bank or Savings Association having a presence in CARTS
District and is capable of servicing CARTS banking activity needs as specified herein.
2. Offeror is a member of the Federal Reserve System.
3. Offeror must meet the requirements of Chapter 105 of the Local Government Code
governing the requirements of Depositories for Municipal Funds. Pursuant to 105.031 of
the Local Government Code, Offeror, no later than five (5) days before the commencement
of the term of the Depository Contract and at all times thereafter, will pledge sufficient
identifiable collateral to secure CARTS deposit. Chapter 2257 of the Government Code shall
govern the type, level, substitution, possession, release and method of valuation of the
security necessary to secure the funds of CARTS. CARTS may, at its sole discretion, consider
the use of surety bonds as collateral during peak deposit times. The use of such bonds, if
allowed, must be issued and executed by one or more solvent surety companies authorized
to transact business in the State of Texas.
4. Offeror must meet compliance with the Community Reinvestment Act (CRA).
5. Offeror must agree to obtain and maintain acceptable collateral sufficient to cover all
anticipated time and demand deposits, above the FDIC insured limit of $250,000. Securities
used to pledge against time and demand deposits must be held in an independent thirdparty safekeeping institution outside any holding company of Offeror.
PROPOSAL PROCESS
The intent of this RFP is for CARTS to contract for banking services for a five (5) year period.
1.
To be eligible for consideration under this RFP, three (3) copies of the proposal shall be
submitted by 4:00 pm Central Standard Time on November 3, 2014 at the address listed
below. Proposals received after that time will not be accepted. Time will be established by
the clock that maintains CARTS Headquarters official time. CARTS will not be held
responsible for any malfunction of proposals sent by express or courier. It is the entire
responsibility of the Offeror to see that its proposal arrives at CARTS office on time.
2. Only electronic copies of this RFP are available, either on the CARTS website
(www.RideCARTS.com) or delivered via electronic mail upon written request to
BankRFP@RideCARTS.com.
3. Proposals must be in a sealed envelope marked, “Proposals for Banking Services”.
4. Proposals must be submitted to:
Capital Area Rural Transportation System
David L. Marsh, General Manager
2010 E 6th St
Austin TX 78702
5. Questions can be submitted to:
Capital Area Rural Transportation System
David L. Marsh, General Manager
2010 E 6th St
Austin TX 78702
Dave@RideCARTS.com
6. Schedule for Proposal Process:
October 12, 2014 – Release of Request for Proposal
October 12, 2014 – Publish Notice to Offerors and post RFP on CARTS website
October 29, 2014 – Deadline for submission of questions about RFP
November 4, 2014 – Responses to Questions posted on CARTS website
November 14, 2014 – 2:00 pm, Proposal Submission Deadline
November 20, 2014 – CARTS Board of Directors consider an award of contract
November 28, 2014 – Contract commencement
7. CARTS reserves the right to:





Waive any defects in the RFP or proposal process
Reject any and all proposals
Cancel and/or reissue the RFP
Modify deadlines
Informally negotiate certain finer points of the final contract
ACCOUNT STRUCTURE
CARTS utilizes one bank account with an overall average collected monthly balance of $284,959 for
the last 12 months. Account descriptions and principal uses of funds are as follows:

Operations & Maintenance Fund – This is the primary operating account for CARTS. All
operating revenues are deposited into this account. All semi-monthly payroll (Direct
Deposit) ACH disbursements, accounts payable checks, Core Documents,
MJM/RideCARTS card (Credit card payments), direct deposits from TxDOT / City of San
Marcos / TxState University / Logisticare LLC, and other CARTS grantors or institutional
customer accounts are all made to this account.
If new accounts are established during the contract period, they will be opened and maintained
under the same contractual provisions. Any or all of CARTS funds may be maintained and invested
outside this contract. CARTS will be under no obligation to maintain funds in the Offeror’s
institution. CARTS may direct funds to pools or investments.
SUBMISSION FORMAT & INSTRUCTIONS
By submitting a proposal in response to this RFP, Offerors will be deemed to agree to the
mandatory contract and service provisions contained herein. The proposal submitted will be
incorporated into and form the basis of the banking service contract.
In order to equitably evaluate each Offeror’s ability to meet the banking service needs of CARTS, a
standard format for all proposals is required. Responses shall be in the order given, answering all
questions, stating acceptance of, modifications or additions to, or a statement of inability to provide
said service. Only proposals submitted in the prescribed format and using the provided Appendices
will be considered and evaluated for contract award.
1. Cover Letter (One page preferred) – The letter should designate the Offeror institution,
address of office where the relationship will be domiciled, the address of local presence, if
different, and be signed by an authorized officer. No pricing information should be included
in the cover letter.
2. Service to Public Sector (Three page maximum preferred) – Respond to the following:




Overview – General overview of Offeror, governmental client service philosophy,
corporate organization including identification of government service unit and location
of corporate, process center and branch localities.
Experience – Describe Offeror’s direct experience in servicing public sector clients.
Include the number of public sector clients and the dollar amount of public funds on
deposit. Indicate whether Offeror will be able to comply with transaction confirmations
and respond to other request for data as needed by CARTS auditors.
Relationship Management – Identify the size and scope of Offeror’s public banking unit,
name and title of officers responsible for CARTS accounts and the relevant credentials
and experience of each person. Please identify who will be designated as Offeror’s
relationship manager for CARTS.
CRA Rating and Community Involvement – Provide evidence of compliance with the
Community Reinvestment Act (CRA) by indicating rating and date of such rating. Also

describe any specific project(s) and/or community involvement activity in CARTS
District. Are donations or in-kind contributions made to public agencies? If so, provide
examples.
Collateralization of Deposits – Provide name of safekeeping institution for
collateralization of, at a minimum, 102% margin of all time and demand deposits above
FDIC insured limit of $250,000.
3. References (One page preferred) – Please provide three (3) local references that are of
similar scope of service utilization as CARTS. Local government reference are preferred.
Include the following information for each reference:




Contact Name and Title
Name and Address of Business or Government
Telephone Number
Number of Years of Customer Service Provided
4. Offeror must provide the following:



Audited financial statements for the most recent fiscal year
Copy of the current call report
Statement regarding any recent or foreseen merger or acquisition
5. Fees and Charges (Two page maximum preferred) – CARTS currently compensates for bank
services primarily with compensating balances. To evaluate the relative benefits and costs
of paying for services through direct fees, compensating balances, or a combination of the
two (blended), information concerning earnings credit rate, reserve requirements, and
insurance fees on deposits are required.







List Offeror’s Earnings Credit Rate (ECR) and how calculated and applied
List Offeror’s actual ECR for past 12 months
Explain how and when FDIC assessment is computed and charged
Does Offeror provide an option of paying for services through direct fees, compensating
balances, or a combination of the two (blended)? Describe any differences in related
costs to CARTS with either option.
Does Offeror provide an option to charge analysis fees based on an average balance over
a one year period?
Describe procedures used to make adjustments to Account Analysis Statements and
amount of time required to make adjustments
Provide sample of Account Analysis Statement
A complete account analysis will be required monthly regardless of the payment basis.
Should new services be required during the contract period not contemplated by the RFP,
those services will be provided at no more than Offeror’s current published rate.
REQUIRED BANKING SERVICES
1. Automated Cash Management Information. CARTS requires web-based cash management
services and daily balance reporting, for timely access to balance information and
transactions.







Imaging of all checks (front and back) and image retention is required
Imaging of deposit items also is preferred
Preferably monthly statements and account analysis will be available in electronic form
along with archiving of information
Minimum on-line services should include balance reporting, stop payment process, ACH
payments and receipts, EFT payments (payroll tax payments), and account transfers
Direct deposit capabilities for CARTS semi-monthly payroll disbursements where
employee net earnings are directly transferred; 130-150 employees.
Daily balance reporting should include detail on all transactions with summary
reporting on closing ledger and collected balances along with one-day float, at a
minimum
Off-site backup and provisions for continuation of services in local or regional disaster
situation
2. Deposit Services. The majority (approximately 60%) of CARTS funds are received via ACH
payments and/or checks. Cash and/or checks received by CARTS are deposited on a weekly
basis.
3. Collateralization of Funds. CARTS requires Offeror to obtain and maintain acceptable
collateral sufficient to cover all anticipated time and demand deposits, above the FDIC
insured limit of $250,000. Securities used to pledge must be hold in an independent thirdparty safekeeping institution outside any holding company of Offeror. Offeror will execute a
tri-party safekeeping agreement with CARTS and the Safekeeping institution for
safekeeping of these securities. Collateral will be maintained at a minimum of 102% margin
of principal plus accrued interest and marked to market at least once a month. Control will
be shared jointly between Offeror and CARTS. Substitutions must be approved by CARTs,
hand such approval will not be unreasonably withheld. Substitutions of collateral must be
requested in writing and new collateral must be received before the existing collateral is
released.
CARTS shall receive monthly reporting of collateral pledged including description, par
value, market value, and cusip number directly from the custodian. The Offeror shall be
contractually liable for the daily monitoring and maintenance of collateral at CARTS
required margin level. Monthly reporting of this daily monitoring is required.
4. Service Enhancements & Additional Services. Based on the information provided in this
RFP and Offeror’s knowledge of the public sector, please describe any services or
technological enhancement and cost information, not previously mentioned, that may be
considered for further improving the effectiveness of CARTS financial management
operations. These services are not required but will be evaluated in terms of availability,
feasibility, service levels, service providers and costs. CARTS will make its determination
after receipt of proposals as to whether a service will be used. If the service is accepted
later in the contract period, the service and charges stipulated in the proposal will be
applied.
Offeror agrees to provide any other banking related services not heretofore specifically
mentioned, which CARTS may require or request from time to time. The cost of such
services shall be negotiated and mutually agreed upon at the time of such requires for
additional services.
5. Relationship Manager. To insure contract implementation and continuation of service
levels, a primary relationship manager for automated and treasury services at the Offeror’s
local facility must be assigned to CARTS account. The person needs to understand the needs
of CARTS, be able to coordinate services, expedite the solution of any problem encountered,
and meet with CARTS staff on banking matters as needed.
EVALUATION OF PROPOSALS
This RFP seeks proposals from eligible financial institutions to provide banking services to
CARTS. In any and all cases, the primary objective of CARTS is to obtain the highest quality and
greatest diversity of services, and maximize earnings potential at the lowest possible costs.
Selection will be made from a short list of Offerors deemed to be fully qualified and best suited
among those submitting proposals on the basis of the evaluation factors listed below (not in
priority order):











Understanding of the needs and operations requirements of CARTS
Experience, resources and qualifications of the financial institution and individuals
assigned
Relevant experience managing similar account relationships with public sector clients
Net earnings (defined by deducting costs from interest earnings)
Locations(s) of facility (ies)
Scope of services offered including degree of automation
Financial strength of proposing institution
Adequacy of financial controls and protection against loss
Value of any new product or service suggestions or other new ideas and enhancements
Compliance with the requirements of this RFP and quality of proposal
Proposed fees and compensation