Agenda Item 8-E
Action Item
To:
Chairman Smedberg and the VRE Operations Board
From:
Doug Allen
Date:
December 20, 2013
Re:
Authorization to Award a Contract for Banking Services
and a Line of Credit
Recommendation:
The VRE Operations Board is being asked to recommend that the Commissions
authorize the Chief Executive Officer to execute a contract for banking services with
PNC Bank for a base period of three years, with an option to extend for up to two
additional years, with the CEO exercising the option years at his discretion. The total
contract value for the five year period will be in an amount not to exceed $20,000;
this amount includes a cushion for higher transaction levels during the contract
period or the use of additional services. The contract includes a provision for a $1
million line of credit.
Background:
On June 21, 2013, the VRE Operations Board approved a request to issue a Request
for Proposals (RFP) for banking services and a line of credit. A mailing list of eleven
prospective Offerors was established for the solicitation to ensure access to adequate
sources of services. On September 16, 2013, an RFP was issued and proposals were
due on November 1, 2013. Four responses were received. The RFP included
banking services for both VRE and PRTC to be awarded separately to one or more
Offerors.
The Technical Evaluation Teams from VRE and PRTC met to review and discuss the
proposals and conducted interviews with the top three firms and further
negotiations with the top two firms. It was determined by the VRE Team that the
proposal from PNC Bank was technically compliant and provided the best
combination of services and price, in accordance with the qualifications established
in the RFP.
In March 2009, VRE awarded a contract to SunTrust Bank for banking services and
the provision of a $1 million line of credit. The last extension of this contract will
expire at the end of March 2014. SunTrust did not submit a proposal in response to
the current solicitation.
PNC Bank is headquartered in Pittsburg. VRE will receive services through their
administrative office in Washington, DC and their branch locations in
Alexandria, Virginia. PNC is a major provider of banking services in the eastern
half of the United States. Their long and short-term debt is rated comparably to
other financial institutions in the region. The VRE evaluation team was
particularly impressed by the sophistication of their on-line treasury
management services and their focus on transaction security.
The new contract will be for a three year base year and two option years, with the
VRE CEO exercising the option years at his discretion. This authorization allows the
transition to begin to the new provider of banking services and to extend the current
contractual arrangement with SunTrust for up to an additional three months, if
needed, to assure a seamless transition for all services. As the procurement was
structured to provide separate contracts for VRE and PRTC, this action awards a
contract to VRE only and seeks Commission approval for the CEO to execute this
contract and sign all associated documents.
Fiscal Impact:
Fees for banking services are paid either as a deduction from interest earnings or
debited directly from VRE’s operating account. Funds are allocated in the FY 2014
annual budget based upon estimated costs. Funding for future years will be included
in each proposed annual budget.
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Virginia Railway Express
Operations Board
Resolution
8E-12-2013
Authorization to Award a Contract for
Banking Services and a Line of Credit
WHEREAS, on June 21, 2013, the VRE Operations Board authorized VRE staff to
solicit proposals for banking services; and,
WHEREAS, four proposals were received and the proposal from PNC Bank was
deemed the most advantageous.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
recommends that the Commissions authorize the Chief Executive Officer to enter
into a contract for banking services and the provision of a $1M line of credit with
PNC Bank for a period of three years, with an option to extend for up to two
additional years for an amount not to exceed $20,000 over the five year period; and,
BE IT FURTHER RESOLVED THAT, the VRE Operations Board recommends that the
Commissions authorize the Chief Executive Officer to sign any associated banking
documents; and,
BE IT FURTHER RESOLVED THAT, the VRE Operations Board recommends that
the Commissions authorize the Chief Executive Officer to extend the current
contract with SunTrust Bank for an additional three months or until June 30,
2014, if needed, in order to assure a seamless transition to PNC Bank for all
required services; and,
BE IT FURTHER RESOLVED THAT, the following be designated as authorized
signatories for VRE’s accounts at PNC Bank:
 Chief Executive Officer
 Chief Operating Officer/Deputy CEO
 Chief Financial Officer
Approved this 20th day of December 2013
______________________________
Paul Smedberg
Chairman
____________________________
John Cook
Secretary
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