The vendor is required to provide from firms qualified to provide bank services and lines of credit.
1. Current banking services
- City and authority general DDA and banking
• One (1) and authority revenue account for city and authority (main operating account) for receiving and processing ach transactions, current and previous day online banking reports, imaging services.
• This account does not issue checks and is not interest bearing.
• One (1) and authority fare revenue collections account for city and authority for receiving and processing ach transactions, teller deposits, current and previous day online banking reports, image services and cash vault processing.
• This account is stand-alone, does not issue checks, but is interest bearing.
• One (1) retainage account (for the benefit of batten Shaw construction) for city and authority for depositing retained funds related to a construction project.
• This account is stand-alone, does not issue checks, but is interest bearing. only previous day online banking reports needed.
• Two (2) voucher accounts for issuance of checks, one for authority and one for organization.
• Both accounts use positive pay services and the combined check issues per month is approximately 450 checks.
• Imaging services are required for both accounts: a. the city and authority voucher account are a ZBA and rolls up to NMTA’S main account. b. the organization voucher account serves as the main account for organization.
• This account maintains a balance of approximately $500,000. only previous day online banking reports needed
• One (1) organization payroll account that is a ZBA account used for processing auto debit transactions from our third-party payroll provider for the entire biweekly payroll processing as well as approximately 130 low-dollar supplemental, payroll adjustment checks per month.
• This account is connected to the organization voucher account mentioned above.
• Positive pay will not be considered for this account.
• Only previous day online banking reports needed.
• One (1) city and authority property liability claim account.
• This account issues checks but is not interest bearing. approximately 150 checks are processed each month; imaging services are required.
• Only previous day online banking reports needed
• One (1) stand-alone organization medical claim account used for processing auto debit transactions from our third-party for medical costs.
• Minimum balance maintained in the account is $500,000 per month.
• Only previous day online banking reports needed.
• One (1) stand-alone organization worker’s comp claim account for the issuance of checks and processing auto debit transactions from our third-party for worker’s comp costs. imaging services are required for this account.
• This account issues approximately 220 checks per month. a balance of $30,000 per month is maintained in the account.
• Only previous day online banking reports needed.
- Cash vault services:
• City and authority utilize a local third-party cash vault for purposes of counting, verifying, depositing and reporting all coin and currency receipts collected through our fareboxes located onboard city and authority revenue vehicles.
• Currently, city and authority have a process in place (called the “vaulting process”) where daily cash collections placed into its fareboxes by its customers are emptied into secure cash bins located at either its Myatt drive or street (downtown city) property.
• Cash is at no time exposed to human contact or handling during the vaulting process to empty the fareboxes.
• At the same time the fareboxes are electronically opened for cash removal (again, “vaulting process”), data is electronically transmitted to a database to record the total cash collections by denomination.
• The secure cash bins are then delivered daily to the third-party processor using an armored courier.
• the processor prepares a deposit in fed-ready bags.
• This deposit is then delivered using the armored courier to city and authority current banking institute for credit into its main (revenue) account.
• Deposit totals are reported back to city and authority daily for reconcilement purposes.
- Merchant processing overview:
• City and authority currently accept credit and debit cards as forms of payment for purchase of bus fare passes.
• We accept payment face-to-face at our downtown music city center (mcc) location as well as over the phone at our customer service offices.
• Transactions conducted at the window at mcc are done by swiping the credit and debit card and receiving electronic approval and authorization from our current provider.
• Transaction batches are settled daily and deposit of funds are credited to city and authority account the next business day.
• We receive daily batch reports for purposes of reconciling transaction activities separately by cashier with the batch information processed.
- Borrowing and credit needs overview:
• City and authority currently have a $14,000,000 (fourteen million) line of credit (“loc”) to cover short–term cash-flow operating needs.
• The need arises every spring to cover immediate operating expenses while it works with the federal government for approval for the federal §5307 funding contracts.
• City and authority current loc have been obtained through a separate banking institution than its main provider of all other banking services.
• While our long-term preference is to have all banking activities with one institution, we will be considering proposals for the loc both collectively as well as separately from all other banking services.
• Our current line of credit will expire march 31, 2020 and we anticipate the need to increase the new loc to as much as $20,000,000 beginning in April, 2020.
- Authority general DDA and banking
• One (1) operating account for receiving and processing ach and wire transactions, teller deposits, check issuance, current and previous day online banking reports, client-maintained positive pay and imaging services.
• This account is not interest bearing.
• One (1) cash reserve account.
• This account manages funds that are either earmarked or otherwise restricted for a specific purpose.
• It does not issue checks and is not an interest-bearing.
• Funds are deposited via interbank transfers and teller deposits.
• Only previous day online information is required for this account.
• One (1) self-insured retention account used to manage specific-use funds.
• It does not issue checks and is not an interest-bearing.
• Funds are deposited via interbank transfers and teller deposits.
• Only previous day online information is required for this account.
- Borrowing and credit overview:
• The regional transportation authority currently has a $3,000,000 (three million) line of credit to cover short–term cashflow operating needs.
• The need arises at various times during the year to cover immediate operating expenses while the authority works with the federal government for approval for the federal §5307 funding contracts.
• Authority current line of credit has been obtained through its main provider of all other banking services.
2. Credit related needs
- City and authority preference
• City and authority will have a need for a line of credit of between $14,000,000 (fourteen million) and $20,000,000 (twenty million) to cover short-term cash-flow operating needs.
• The majority of this credit will be used for projects and other things where city and authority has applied to receive federal or state grant monies but are waiting for the grant monies to come in, and will also be used to cover potential gaps created by the up-coming fare collection project that will change day-to-day cash flow and the way revenue is recognized.
• The vast majority of cases, these events will occur within the same fiscal year.
• Our current loc has been obtained through a separate banking institution from its main provider of all other banking services.
• While city and authority are not making the extension of credit a mandatory requirement, our preference would be to keep all banking activities with one institution, therefore, a positive response for this section will be viewed favorably but will not impact the overall scoring
- Authority requirement
• The regional transportation authority has a $3,000,000 (three million) line of credit to cover short–term cash-flow operating needs.
• The need arises at various times during the year to cover immediate operating expenses while the authority works with the federal government for approval for the federal §5307 funding contracts.
• Authority current line of credit has been obtained through its main provider of all other banking services.
- Contract Period/Term: 5 years
- Questions/Inquires Deadline: March 31, 2025