Request for Proposal
Various Banking Services
Newtown Township, Bucks County

The Township of Newtown is located in Bucks County, Pennsylvania and operates under the Second Class Township Code form of government, with a five (5) member Board of Supervisors and a Manager. The Township is approximately 11.9 square miles, has a 2020 Census population of 19,895, an annual General Fund budget of approximately $18 million, and approximately 120 employees (approximately 75 of whom are full time and the remainder part-time or seasonal).

The Board of Supervisors meet the second and fourth Wednesday of each month as well as special meetings on an as-needed basis. We hereby invite qualified banking institutions, duly registered in the Commonwealth of Pennsylvania, to submit proposals for various banking services as described below:

  1. Objective, Evaluation Criteria and Bidding Instructions
  1. Objectives of Awarding Proposal
    1. The Township desires to analyze proposals from qualified banking institutions in order to obtain the highest quality banking services at the lowest possible cost to taxpayers.
    2. The Township Manager will analyze proposals received for various banking services, and will recommend to the Township Board one banking institution to be awarded a two-year contract, as described
  • Newtown Township reserves the right to reject any or all proposals, or part thereof, and to accept the proposal which, in its sole judgement, it deems in the best interest of the Township.
  1. Bid Evaluation & Selection Criteria
    1. The Township intends to award the contract for banking services to the banking institution that submits the highest quality proposal, including technical support for computerized cash management reporting and services. In determining the highest quality proposal, the Township will evaluate the following criteria:
      1. Cost and flexibility of proposal
      2. Interest earnings for Newtown Township
      3. Banking services
      4. Banking reporting to the Township
      5. Banking institution’s creditworthiness
      6. References of other municipal clients
      7. Location of banking institution’s banking branches in relation to the Township’s offices
  1. Length and Terms of Banking Agreement
    1. The Township will enter into an agreement with the selected banking institution to provide banking services for a period of twenty-four (24)
    2. Each bidder hereby agrees that all unit prices and all other conditions related to the banking services described herein shall be in effect for a minimum of twenty-four (24) months; the only exceptions are certain unit processes or procedures, if any, that may be required by the Federal Reserve Bank or by any other applicable federal and state laws or
  • It is intended that such agreement will take effect no earlier than June 1,
  1. The Township shall be permitted to void this agreement at any time, for any reason whatsoever as it deems in the Township’s best interest, with sixty (60) days written notice to the banking institution.
  1. Instructions to Bidders for Submitting Proposals
    1. Proposals for various banking services should be submitted as one PDF file, addressed and emailed to:

Amanda Gattuso Finance Director

  1. Proposals must be received no later than 4:00 m. on February 17, 2025, in order to be given consideration. Faxed copied proposals will not be accepted.
  2. Each proposal shall include all data requested herein, provided that exceptions must be accompanied by an acceptable explanation.
  3. The Township will interview one or more proposers to further assist in the review process and will award the contract at the sole discretion of the Selected bidders’ oral interviews/presentations will be scheduled for the week of February 24, 2025.
  4. The Township expects to award the contract for various banking services on or around March 12, 2025; no proposal, once submitted, may be withdrawn before that date.
  1. Scope of Requested Banking Services
  1. The various banking services listed below are primary services that the Township currently or anticipates using.
  2. Bidders should feel free to propose similar or different cash management and account maintenance procedures as deemed appropriate.
  3. The following information serves to provide the scope of services
    1. Bank The Township currently has multiple checking accounts that may or may not be consolidated.
      1. General Operating The majority of the Township’s operations will flow through this account, including the deposit of revenues and disbursement of accounts payable. The Township will send and receive wire transfers and ACH transfers, write checks, and make deposits to this account. 2024 budgeted revenues estimated at $14 million with approximately 1,800 checks issued from this account in 2024. Deposits are typically made daily.
  1. Payroll Payroll is processed on a biweekly basis. Annual payroll for 2024 approximates $8.1 million with an estimated 2,100 direct deposit transactions. The Township would like to utilize a zero-balance sweep account for payroll disbursement, payroll taxes and deductions.
  2. Escrow Management. The Township currently utilizes a Master Escrow account with interest-bearing subaccounts in addition to an associated checking account in order to make transfers from the individual subaccounts to cover disbursements. In addition to the 12 active subaccounts within the Township’s Master Escrow account, the Township will require the ability to add additional subaccounts in the future. The Township may require trust and escrow agent services to hold letters of credit and other third-party commercial documents. The institution will, in most cases, be required to take physical custody of these securities, notify the Parties of their expiration thirty days prior to termination of the agreement and accept renewal or replacement of instruments.
  1. Account reconciliation and web-based cash management system for all accounts with the following features; monthly account statements available online; balance and transaction reporting with minimum 45- day look-back capability for detailed account activity; check imaging (front and back) for all cleared checks – up to 7-year retrieval from check issue date; internal account transfers; wire transfers from all accounts; and online check inquiry and stop payment capability.
  • Sweep Account Provisions. If the Township chooses, the Bank will be responsible for automatically sweeping the balances in all accounts daily to an investment option (money market fund, repo, etc.). Describe the sweep options and, if a money market fund is used, provide a prospectus. The accounts will be swept to the compensating balance.
  1. Remote Check Image Deposit Service. The Township presently has remote deposit capabilities to the General Operating and Escrow accounts. Please include lease options for scanning equipment, software, transfer procedures, batching and security measures for remote deposit
  2. Automated Clearing House Collections and The Township currently uses the ACH process for administering certain transactions. Each bidder is asked to provide a cost of their ACH services.
  3. Availability of Please specify your schedule of funds available for investment purposes.
  • Book Availability to process book transfers via online cash management software.
  • Incoming and Outgoing wire Please specify the unit cost and the daily time deadline for debiting and crediting wire transfers.
  1. Overdraft Provisions. Every effort will be made to eliminate overdraft situations on the However, in case this situation does arise, the proposal should include any and all Bank policies and overdraft charges or handling procedures.
  1. Procurement Cards/Credit Cards for Township use. The Township desires information about a procurement card/credit card program to manage expenses for up to 10 Township Please describe your program to include costs.
  2. Credit Card The Township allows its customers to pay for services utilizing credit cards. The accepted credit cards are Visa, Mastercard and Discover. These transactions are processed through a gateway and administrative third-party service.
  • Direct Deposit. The Township utilizes direct deposit for payroll. Describe the requirements and deadlines for computer tap for ACH transactions for Direct The proposal should indicate when funds will be available in participating Banks and the unit cost and procedures (i.e., manual or automated) related to direct deposit of employee paychecks. Please specify whether employees would be required to have an account at your bank to participate.
  • Implementation/Conversion
  1. Provide a detailed conversion plan for transitioning the proposed services to your bank. Please include the estimated length of time for the transition and the amount of effort required by Township staff.
  2. Who will be responsible for coordinating the transition of the proposed services? If a conversion team is used, how will the City’s account be transitioned to the ongoing client service team?
  3. Will the bank provide dedicated information technology (IT) liaison(s) to work on set- up, file transfer, testing, and troubleshooting/issue resolution?
  1. Collateralization Notice
  1. In compliance with the Commonwealth of Pennsylvania Act 72 of 1971 (P.L. 281), as amended (“The Act”), one hundred percent (100%) of any Township funds held by the banking institution, in excess of $100,000, shall be collateralized, as required by the Act.
  2. The banking institution shall provide a Letter of Collateralization to the Township on a monthly basis, listing total deposits covered by the bank’s collateral, the total amount and types (for example, the Federal Reserve Bank of Philadelphia).
  1. Bank Credit and Servicing Evaluation Data
  1. Credit Criteria
    1. Each Bidder shall submit with its proposal the following statistics, based on information contained in the quarterly Uniform Bank Performance Reports, or in similar reports, for calendar/fiscal years 2021, 2022, & 2023 (use Federal Reserve Bank definitions when not clear). The Township will then compare the ratios of each bidder with the average of its respective peer group (according to asset size) in the following four categories:
  1. Primary capital to total assets
  2. Equity growth to asset growth
  3. Loan loss reserves to total loans
  4. Total deposits in amounts over $1,000,000 to total
  1. Each bidder shall specify in its proposal whether it is currently or has been since 1/1/2023:
    1. Under management supervision of the Resolution Trust Corporation, Federal Deposit Insurance Corporation, Federal Savings & Loan Insurance Corporation, Federal Home Loan Bank Board, or other similar current or former federal or state regulatory agencies
    2. Acquired by another bank institution (if so, please specify institution acquired by, date of acquisition, and amount of assets acquired)
  • Each bidder shall specify if it will be or is currently in negotiations of merger with any other banking institution.
  1. Independent Audited Financial Statements
    1. Each bidder shall submit along with its proposal one copy of its independent audited financial statements for the past three fiscal years, including (1) auditor’s opinion; (2) balance sheet; (3) income statement;

(4) statement of changes in financial position; and (5) notes to financial statement. All such information submitted will remain confidential, at the bidder’s request, and will be returned to the bidder, at its request, after the contract has been awarded.

  1. The successful bidder shall be required to submit subsequent audited financial statements for each fiscal year in which the agreement for banking services is in effect.
  1. Client References
    1. Each bidder shall attach to the Form of Proposal a minimum of three current municipal clients, including other governmental jurisdictions located in the Commonwealth of Pennsylvania, as trade The bidder shall include the name and address of the entity along with a contact name and telephone number.
  2. Bank Branches and Personnel
    1. Each bidder shall attach to this Form of Proposal the following information concerning its branches:
      1. The address of bank’s branch at which the Township would most regularly conduct business through this Please specify the working hours this branch is open to conduct business
      2. The bank’s key personnel that the Township would work with
      3. The addresses of all bank branches located in the Commonwealth of Pennsylvania, in the County of Bucks and Newtown Township
  1. Bidder’s Ethics and Collusion
  1. Collusive Bidding. Any bidder that submits more than one proposal in such a manner as to make it appear that one of the proposals submitted is competitive with that of a different bidder, or any two or more bidders that agree to fix their respective proposals in such a manner as to be awarded the bid shall be disqualified from further consideration of award of this contract and shall be subject to any applicable penalties under the law.
  2. Any bidder that attempts to influence a Township official to award this contract to such bidder’s banking institution by promising to provide or by providing to such Township official any gratuity, entertainment, commission, or any other gift, in exchange for a promise to award the contract to such banking institution, shall be disqualified from further consideration of award of the contract and shall be subject to any applicable penalties to the law.
  3. Conflict of Interest. Any bidder that knows of any Township official having a material direct or indirect financial interest in such bidder’s banking institution shall be required to submit a written statement, along with the Form of Proposal, detailing such interest. Failure to disclose a known such financial interest shall result in that bidder’s disqualification from further consideration of award of this
  • Security Requirements
  1. Disaster Recovery Plans. The bank must have a current and tested disaster recovery plan in the event of a systems failure at the bank’s primary processing
  2. Secure Data Transmission All account data transmitted to the Township must be encrypted while in transit or in storage on the bank’s network. The bank must encrypt all the Township’s data that can be accessed by unauthorized personnel.
  3. Advanced Notification of Technology Changes and Ability to Support Testing. The bank must provide advanced notification of changes such that the Township has time to assess and implement the associated changes to the Township’s systems. The bank must provide the ability for the Township to test changes prior to the Township placing those changes into production.
  • RFP Schedule
  • RFP issued January 27, 2025
  • RFP responses due February 17, 2025
  • Selected bidders’ oral interviews/presentation Week of February 4, 2025
  • Award of contract March 12, 2025
  • Implementation complete/commence activity No earlier than June 1, 2025

Form of Proposal Various Banking Services

Newtown Township, Bucks County

The undersigned, being a duly authorized officer of the banking institution listed below, does hereby submit this proposal for various banking services, under all terms and conditions (except those noted) as specified in Newtown Township’s Request for Various Banking Services.

The following information is hereby included in the banking institution’s proposal for various banking services for the Township’s consideration:

  1. Primary Banking Services (Section c)
  2. Implementation/Conversion (Section III)
  3. Collateralization Notice (Section IV)
  4. Bank Credit and Servicing Evaluation Data (Section V)
  5. Bidder’s Ethics Collusion Statement (Section VI)
  6. Security Requirements (Section VIII)

◻ (Check box if applicable) The banking institution listed below respectfully hereby declines to submit a proposal at this time.

Respectfully submitted by:                                                                    

(signature)

Type Name:                                                                     Banking Institution:                                                                                    Address:                                                                                  

Telephone Number:                                                                     Email Address:                                                                               Witness:       

(Secretary or other Authorized Officer)

SEAL: