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Request for Proposal for Banking Services Addendum # 1

(General Banking, Merchant Services, Safekeeping/Custody, Interest Bearing Accounts)

Posted July 24, 2014

Service Group 1 – Banking Services

1. Question: One requirement is that the Bank have a “dedicated government service unit”. Please define “dedicated”? As we discussed, we do not have a “unit”, however, we do have the expertise, individuals who are experienced in servicing and monitoring public funds.

Answer: It is the City’s opinion that a bank that has made the business decision to staff a “unit”, “department” or “division” with bankers catering to local agency clients and specializing in public agency needs, policies and procedures will best meet the needs of the City. If you feel your institution can provide the same level of service, please detail the structure of the bank, and the expertise of the staff dealing with public agencies and the department servicing the account.

2. Question: One of the requirements under the Qualifications section (page 7) is that the Bank provide a rating from a nationally recognized rating service. We are currently not rated by such a service (Fitch, S&P, etc), as we are privately owned.

Answer: Not having a rating from a nationally recognized rating service (Moody’s, S&P, Fitch) is not a minimum requirement. Please provide key measures of the bank’s financial strength. A satisfactory rating from a nationally recognized bank rating service (IDC, Bauer Financial, etc.) is a requirement.

3. Question: Please provide a copy of a recent analysis statement.

Answer: A copy of the June 2014 analysis statement is attached as Exhibit # 1.

4. Question: Please provide the combined average balances (monthly average) of all the accounts that are included on the monthly analysis statement (General Question).

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Request for Proposal for Banking Services Addendum # 1Posted July 24, 2014 of 14

Answer: Please see table below for combined average balances for the last quarter.

Average PositiveCollected Balance

June $4,857,812May $5,177,467April $4,489,981

5. Question: Please clarify what the $51,430 FDIC Assessment

represents. Is this the annual FDIC charge or the annualized average account balances that is a truncated number from $51,430,000 (General Question)?

Answer: The $51,430 FDIC Assessment represents the annual charge for the Bank's Deposit Insurance assessment. The City is charged monthly based upon the average monthly ledger balance on a per thousand dollar basis.

6. Question: Could a copy of the Pricing Matrix be made available in

Microsoft Excel format for vendors to more easily fill in?

Answer: An Excel version is not available. A Word version of the Pricing Matrix is attached as Exhibit #8.

7. Question: Can you please provide a sample coupon (or samples if more than one format) and provide details around the coupon format / layout / specifications?

Question: Please provide a sample water/wastewater payment coupon or describe the positioning of the coupon compared to the statement information. (Is the coupon on the top of the document?) (Lockbox)

Answer: The City has one invoice format with the coupon on the bottom. A sample invoice and coupon is attached as Exhibit #2.

8. Question: Please confirm that a return window envelope(s) is utilized and provide a sample of the return envelope(s) and provide details around the window envelope format / size / specifications.


Answer: A copy of the #9 return envelope utilized for water/wastewater payments is attached as Exhibit #3. The City is not currently using window envelopes.

9. Question: Does Thousand Oaks accept credit card payments through the lockbox?

Answer: Credit Card payments are not accepted through the lockbox. Credit card payments are accepted through the internet and the IVR.

10. Question: Are any stop files utilized within the lockbox?

Answer: No stop files are utilized within the lockbox.

11. Question: Please provide the current file format / layout / specification for the file that the city gets from its current vendor and interfaces with its’ SunGard system daily.

Answer: The HTE SunGard file format requirements are attached as Exhibit #4.

12. Question: Please explain what specific category of items fall into the Unprocessable Item category? (Lockbox)

Question: What is an unprocessable item, (annual volume of 1916)? How are those items handled today? (Lockbox)

Question: With regard to Retail Lockbox, what type of exception processing does the City utilize currently (Section A Service Group 1 F. Lockbox Services Page 9)?

Answer: Unprocessable/exception items are checks without coupons, correspondence and empty envelopes. See Question #13 for a description of how these items are handled today.

13. Question: How are check only payments handled if there is no account number written on the check? (Lockbox)

Question: How are check-only items handled? Please provide a volume of check-only items? (Lockbox)

Question: How many check only payments does the City receive per month? How are those items handled today?


Question: What is the annual volume for checks received without any OCR remit coupons (Section D Pricing Matrix Lockbox Services Page 34)?

Answer: Payments without a coupon are considered exception items. These items are delivered by Valley Courier to the City to be processed in our office. The City pays for the courier service separately. While the City does not keep statistics on check-only items, the majority of the unprocessable items are checks without coupons. There were 145 unprocessable items during June 2014 and an approximate annual volume of in FY 2013-14 of 1,860.

14. Question: Please provide samples of reports that Thousand Oaks is receiving today for the retail lockbox. (Lockbox)

Question: Please describe what level of detail is being provided in the “Custom Report” (Section D Pricing Matrix Lockbox Services Page 34)?

Question: What type of custom reporting is the City getting from lockbox today? Is it a custom format? If so, can you provide specifications? (Lockbox)

Answer: The City receives a detail report showing the account number and amount paid with totals per batch. The City also receives a recap with batch totals.

15. Question: What does the charge “Retail Lockbox Monthly Base” represent vs. the line item “Monthly Maintenance”? (Lockbox)

Answer: “Retail Lockbox Monthly Base” is a monthly charge associated with the maintenance of a lockbox account including mail pickup and database maintenance. The “Monthly Maintenance” represents the monthly fee charged for the City’s Electronic Payments (“home banking”) described in Service Group 1 Section G. on page 9.

16. Question: What fields of information are being captured with regard to the Retail Lockbox Data Capture line item? Is the data capture only for specific transaction types (Section D Pricing Matrix Lockbox Services Page 34)?

Question: What data is being keyed? (Payor name, account number etc.) (Lockbox)


Answer: The City’s current lockbox processor captures all information in the MICR line of check only transactions. The checks are scanned and no keying is involved.

17. Question: In Service Group 1, F.8, the City requests a description of proposer’s imaging capabilities, but does not request related pricing in the Pricing Matrix. Would the City like pricing for imaging of checks and remittance coupons (Section D Pricing Matrix Lockbox Services Page 34)?

If yes, what are your imaging requirements (provider-hosted image archive or City-hosted image archive)? What is the annual volume of remit coupons to be imaged?

Question: Is the City interested in image file via transmission of reports and remittance advices? (Lockbox)

Answer: One of the purposes of the RFP it to allow the City to gather information and to make improvements where possible. The City does not currently utilize imaging with its Lockbox functions but is interested in determining how available options will improve City workflow. Pricing is not required at this time.

18. Question: How much cash is received by Lockbox when it occurs? (Lockbox)

Answer: The City does not track the quantity of cash received through the Lockbox. The City only received one cash payment in FY 2013-14 and three in FY 2012-13. An average water/wastewater bill is approximately $250.

19. Question: Does the City use the hard copies exceptions, reports and remittance advices or are they stored for back up purposes only? (Lockbox)

Answer: The exceptions are processed by the City. The City reviews the hard copies of the remittance advices to locate correspondence. Remittance advices without correspondence are destroyed. The detail report and summary report (See Question #14) are returned with the exceptions and remittance advices although they are also available online. The reports are only used if a discrepancy arises. They are usually retained for approximately 90 days.


20. Question: How many locations use Remote Deposit? (Depository Services)

Answer: Remote Deposit is used only at City Hall for large checks.

21. Question: How many locations at the City collect coin & currency? (Depository Services)

Question: Are the bus & parking revenue deposits created & collected by Garda in a centralized location? If not, please describe the deposit prep & pick process of for each location. (Depository Services)

Answer: Currency and coin is collected at various locations including the libraries and the Transportation Center. All cash except for parking receipts is delivered to City Hall, prepared for deposit by the lead cashier and picked up by Garda at City Hall.

Parking receipts are deposited by the parking vendor at a branch location.The City provides the parking vendor with deposit slips and the parking vendor walks the deposit into a branch.

22. Question: While the City utilizes Garda for check, cash and coin deposits plus lockbox and remote deposit, please describe your branch utilization. (Depository Services)

Answer: The parking vendor deposits parking receipts at a branch. Other than these deposits, the City utilizes a branch very little. There may be cases where a branch may be needed as part of the City’s emergency business continuity plan.

23. Question: How many City departments use ACH to collect revenue or pay disbursements? (For example, payroll, employee reimbursement for flexible spending, accounts payable, golf course dues or monthly bus pass, water/wastewater payments, etc.) Please list each department and it if is collecting revenue, paying to disburse or reimbursement. (General ACH Services)

Answer: The Finance Department is responsible for ACH revenue and payments. The Finance Department creates the ACH files for the following:


water/wastewater payments, payroll direct deposit, and accounts payable payments.

Employee reimbursement for the City’s flexible spending account is handled by a third party administrator. Payments to employees are made through the administrator’s account and a single ACH debit is initiated by the administrator from the City’s Benefit Spending Account.

The City receives various payments by ACH including state apportionments and franchise fees. The City has authorized a limited number of ACH debits including CalPERS payments.

24. Question: Can the City break down deposits by channel type? How many via branch, lockbox and cash vault? (Depository Services)

Answer: The City does not keep these statistics. Lockbox and Electronic Payment files are received every business day. Cash vault deposits are made daily Monday through Thursday. The parking vendor made approximately six deposits in June.

25. Question: Please describe what service is being performed with regard to the Return Item Special Instructions line item (Section D Pricing Matrix Depository Services Page 35?

Question: Please describe the returned item special handling instructions?

Answer: The special handling instruction was originally for the delivery of returned items to an alternate address. All checks are re-deposited once and returned items are sent to the City at its mailing address. These special instructions are no longer needed.

26. Question: What optional reports does the City receive via transmission? (Paper Disbursement and Recon Services)

Answer: The City downloads the following reports as part of its monthly account reconciliation:

Standard OptionalDetail Credits Voids and CancelsReconcilement Detail Issue Notices Not Received


Detail Checks Bank Originated EntriesDetail Other Debits Checks IssuedIssue by Date Paid ChecksReconcilement Outstanding ChecksRecap (Balance)

27. Question: Is the City interested in an image file of paid items rather than receiving a CD-ROM? (Paper Disbursement and Recon Services)

Answer: One of the purposes of the RFP is to allow the City to gather information and to make improvements where possible. The City is interested in the options available and would consider switching to an image file.

28. Question: What method does the City use to transmit ACH Files? (SFTP, HTTPS?) (General ACH Services)

Answer: The City uses SFTP to transmit ACH files.

29. Question: The RFP mentions funding payroll via ACH, does the City have a 3rd party payroll provider involved in the actual disbursing of the ACH payroll file or is it handled in-house?

Answer: No, the City does not have a third party payroll provider. The City handles payroll in-house.

30. Question: Is the City receiving an integrated file with daily receipts from each channel? (The file would include ACH, lockbox, remote deposit etc.) (Electronic Data Interchange)

Answer: No, the City receives separate files for daily receipts.

31. Question: Does the City prefer to download daily reports via the web or receive a data file via transmission? (For example, BAI2 or a flat file containing all receipts). (Information)

Answer: The City prefers to download daily reports from a website.

32. Question: At this time we don’t have intraday reporting. Account information is available through on-line banking. ACH and wire information is available by e-mail. (page 7) (On-line Reporting)


Answer: Describe the bank’s online capabilities and offer alternatives to intraday reporting such as email.

33. Question: Electronic payments – no downloadable file is available. (page 9)

Answer: Describe the bank’s electronic payment processing and reporting features.

34. Question: Cash vault and lock box services are available through a third party vendor. Do you need information regarding the third party vendor?

Answer: Please provide detailed information regarding any services provided by a third party vendor.

35. Question: Is the City interested in learning about the bank’s employee benefit program offered to the employees of its business customers?

Answer: Please provide any other information which would assist the City in making its decision per Item H of the Proposal Requirements.

Service Group 2 – Merchant Services

1. Question: Please provide a copy of a recent merchant bankcard statement.

Answer: A copy of the June 2014 merchant bankcard statement is attached as Exhibit #5.

2. Question: Is the City utilizing PC Charge as the payment gateway for your Smart Money manager system? If so, what version? If not, what payment gateway is being utilizing (Section A Service Group 2 Page 15)?

Question: Does Smart Money Manager utilize a gateway in order to facilitate transactions coming to your processor? If so, what is the gateway name and the product version?

Answer: According to the City’s vendor, Comprise is the payment gateway for Smart Money Manager. Cardnet is the processor. The application being used to interface with Cardnet is PCCharge Payment Server version 5.9.3 Service Pack 8.


3. Question: Can the City supply a listing of processors the POS system can interface, the name of the credit card processing module, software (with version) and/or payment gateway which handles the card processing. i.e. PC Charge ver. 5.7, Tender Retail MCM ver. 3.2, Authorize.net, PayPal, etc.

Answer: According to Comprise, it can work with any major processor. PCCharge is the only application option.

4. Question: Of the 7 MIDs (Merchant Numbers), can the City provide a breakdown of each, such as MID #1 - “City Hall>Utilities”, MID #2 - “City Hall>Permits”, etc (Section A Service Group 2 Page 15)?

Question: Of the above 7 MIDs, can the City provide the exact credit card entry system used for each MID, such as “MID1 – “City Hall Utilities> IVR”, “MID #2 – Library> Smart Money manager”, MID #3 <Name> thru a Virtual terminal, etc (Section A Service Group 2 Page 15)?

Answer: Please see table below for Merchant Number detail.

MID # 1 City Hall Main Cashier First Data FD100tiMID # 2 City Hall Front Cashier Hypercom T4205MID # 3 Utility Selectron IVR PayPal - Payflow ProMID # 4 Library Smart Money POS PC ChargeMID # 5 Library T.O. Self-Check Kiosk IC VerifyMID # 6 Library N.P. Self-Check Kiosk IC VerifyMID # 7 Library Internet Payment PayPal - Payflow Link

5. Question: The City states that it owns First Data FD100ti terminals, Hypercom T4205 terminals, and Hypercom T7 terminals. How many of each does the City own, and to what MID is each linked (Section A Service Group 2 Page 15)?

Question: Can you please provide the part numbers for the terminals you are currently utilizing?

Answer: The City owns one First Data FD100ti terminal (MID #1 City Hall Main Cashier) and one Hypercom T4205 terminal (MID #2 City Hall Front Cashier). The Hypercom T7 terminals were used at the libraries but are no longer in use due to the implementation of the Smart Money Manager POS system.


6. Question: The City mentions that an IVR system is used to accept credit card payments. Is this IVR system the earlier mentioned “SunGard”, or something different? What payment gateway (and version) is the IVR system using (example – PC Charge, Authorize.net, IC Verify, etc) (Section A Service Group 2 Page 15)?

Answer: Sungard is the City’s enterprise system and is used for financial reporting, utility billing, payroll, accounts receivable, accounts payable, business licenses, etc. The Selectron IVR payment gateway is PayPal - Payflow Pro.

7. Question: Is the City currently accepting American Express, or would the City like to offer it (Section A Service Group 2 Page 16)?

Answer: Although American Express is accepted through the theater box office, the processing of theater credit card payments is not included in the RFP. The credit card payments included in this RFP are only Visa and MasterCard. The City does not have any current plans to accept American Express payments at the covered locations.

8. Question: Are you looking for a hosted IVR system or will you be utilizing a 3rd party IVR system for the processor to integrate with to process credit card transactions?

Answer: No, the City is not looking for a hosted IVR system. We use a third party IVR system.

Service Group 3 – Safekeeping/Custodial Services

1. Question: The RFP states that the City requires that the safekeeping account in a bank’s trust department. Our custody services are offered through the Capital Markets Treasury Operations Department. This is not a separate trust department in the bank. Is this acceptable for the purposes of this RFP?

Answer: Yes. As long the financial institution meets the Qualifications in Section A, a separate trust department is not required.

2. Question: The City states that is uses a custodian bank as safekeeping agent. Would the City please provide a copy of the most recent month end safekeeping statement from the current provider (Bank of New York Mellon Trust Company) (Section A Service Group 3 Page 18)?


Question: Please provide a copy of a recent custody/safekeeping statement.

Answer: A copy of the May 2014 custody/safekeeping statement is attached as Exhibit # 6.

3. Question: The RFP states the portfolio size is $220 million with $100 million is bonds. Where is the other $120 million invested?

Answer: Of the $220 million, approximately $100 million is invested in fixed-income negotiable securities. The remaining funds are invested in LAIF and non-negotiable collateralized public funds certificates of deposit. The June 2014 investment report is attached as Exhibit # 7.

4. Question: The City states it utilizes six approved brokers to purchase one or two investments per month. How often does the City evaluate the performance of their current brokers and is the City willing to consider approving additional broker/dealers (Section A Service Group 3 Page 18)?

Answer: The evaluation and selection of brokers is not included in this RFP. The City evaluated its brokers through an RFP process last year.

Service Group 4 – Interest Bearing Accounts

1. Question: Currently City of Thousand Oaks has Public Funds Interest Bearing Accounts with our bank. Do we still need to submit the RFP related to Service Group 4:-Public Funds Interest Bearing Accounts?

Answer: No. If the financial institution is currently an approved provider of collateralized certificates of deposit or interest bearing accounts, a response is not necessary. It is the City’s intent to expand its list of providers.

General RFP

1. Question: Please explain what is required/requested under Item D on page 22: “Services and data to be provided by City of Thousand Oaks.”

Question: Paragraph D states this section of the proposer’s response is to include services and data “to be provided by City of Thousand Oaks.” What


specific information would the City like proposers to include in this section (Section B Proposal Requirements Page 22)?

Question: Item D states “Services and data to be provided by City of Thousand Oaks”. Can the City clarify what they would like as a response in this section?

Question: Proposal Requirements, page 22 part D: Services and data to be provided by the City of Thousand Oaks. In this question, are you asking vendors to fill in what they require of the City in order to begin services?

Question: On page 22, under the Proposal Requirements, the City lists item D as “Services and data to be provided by City of Thousand Oaks.” May we have additional direction on what information the City is looking for us to include or respond to in this section?

Answer: Proposal Requirement D. has been deleted. Please disregard question.

2. Question: Does the attached Table of Contents indicate the proper order of responses?

Answer: Proposals should be submitted in the order set forth in Section B. Instructions to Proposers, Proposal Requirements on page 22. Item C. Explanation of how Proposers will perform work should be presented in a format that corresponds to the sections outlined in the appropriate Scope of Services.

3. Question: Can the City elaborate on their meaning of “corrections in Item #12 (Corrections) of the Agreement for Professional Services.

Answer: If the City finds errors in the product (report, analysis, calculations) submitted by the Consultant as required under the terms of this Agreement, Consultant will be required to correct such errors in a timely manner. Moreover, Consultant will bear the cost of making those corrections and will not be able to charge City for any additional time or expense incurred by Consultant in making the corrections.

Additional Questions and Comments. Any additional questions regarding this solicitation must be submitted in writing, either by facsimile or email, to Jane Adelmann at (805) 449-2250 or [email protected] by Tuesday, July 29, 2014 at 4:30 pm.

mailto:[email protected]


Any response, if necessary, will be in a form of an addendum and will be sent by Thursday, July 31, 2014, to all parties registered with the City pursuant to the Registration Section. All such addenda shall become a part of the RFP/Q. Any prospective Proposer who obtained the RFP/Q from anyone other than the City is responsible for registering with the City to receive subsequent Addenda.

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