City of Los Angeles Office of the Treasurer. Responses to Requests for Proposal. General Banking Services

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1 City of Los Angeles Office of the Treasurer Responses to Requests for Proposal General Banking Services On February 13, 2008, the City of Los Angeles held a Request for Proposal (RFP) Pre- Proposal Conference, where representatives from qualified institutions had an opportunity to ask questions in regards to the RFP. Below, for your information is a list of questions and responses to specific questions that were submitted. 1. Will the City send the Addendums via ? The City will send the Addendum to all prospective bidders in PDF format and will provide a copy to those in attendance at the Pre-proposal Conference. The Addendum will also be posted on the Treasury website at 2. Proposal Submission Requirements, II. Response Format, Page 10. Can the City please clarify whether the bidder should follow the Response Format as listed on page 10 or the Check List? The Check List 3. Proposal Submission Requirements, II. Response Format, b. Table of Contents, Page 11. Do the Tabs for the attachments need to be consecutively numbered? The City required attachments and then the bank s attachments? Please have each bank s attachments fall behind its corresponding RFP attachment. If there is an additional bank attachment not related to an RFP attachment, please number them consecutively after the last RFP attachment. 4. Proposal Submission Requirements, II. Response Format, d. Corporate Structure, Page 11. The City states that this section s response should not be more than three (3) pages. Since the section contains 13 questions that takes up 1 ½ pages, can the bidder response be more than three (3) pages? No. You are not required to repeat each question in your response. You can number your responses that correspond to each question number. 5. Can we include items such as the Branch Map and Branch Locations as an Attachment? Yes. 6. Proposal Submission Requirements, II. Response Format, d. Corporate Structure, Item #8, Page 12. Does the City want hard copies of the annual reports? Yes. 7. Can the bidder provide a website link and or provide electronic copies on the CD- ROM? Yes. Page 1 of 9

2 8. Statement of Work, II. Optional Services, c. City Employee Services, Page 20. The City lists bullets d and e, should these be a. and b.? The City has changed these bullets to 1. and Statement of Work, I. Requirements, i. Lockbox Services, Page 18. Please clarify what the City will be using retail lockbox for? The City would like to consider any proposals that will benefit the City s financial operations. 10. Page 3, reference to custody, purchase cards, and payroll cards: There do not appear to be questions related to these three products. Is the city planning to accept and implement proposals submitted on these services? Yes. Please refer to Statement of Work II Optional Services b. Electronic Receipts and Payment Options. 11. Page 3, reference to purchase card: What is the estimated annual dollar volume billed to program? Approximately 26 million/yr What is the number of transactions billed under program? Average 25,000 / yr What is the city s average transaction size? $217 What payment terms are in place? 100% of payment is due 10 business days after the cycle closes. Does the city utilize? Department cards Supplier cards Individual cards 12. What is the city s program structure (i.e. Hierarchy)? One parent, 4 administrators, numerous hierarchies. 13. Is the city targeting specific commodities for incorporating under a Purchase card Travel card options should be available including the various card type platforms. 14. Does the city utilize its current supplier's WEB tool to reconcile transactions or does the city reconcile transactions through its own ERP system? The current supplier s WEB tool is used primarily for reporting purposes. 15. Page 3, second paragraph, Page 7 second paragraph, Page 9 second paragraph, and web link - primary contact for questions: Page 2 of 9

3 Each page referenced above directs the bidder to a different officer within the Office of the Treasurer for questions Page 3 Page 7 Page 9 Web Link Mark Granado Crista Binder City Treasurer Mark Granado Please identify who will be the primary contact. The City s primary contact is Mark Granado. 16. Page 7, Calendar: Is the Contract Execution Date the desired conversion date? If not, what is the desired conversion (completion) date? No. Final conversion date is based on successful transition and implementation. 17. Page 12, Corporate Structure, No. 11 Branch Map: Which departments deposit over-the-counter, and at what bank locations? Depending on the amount of the deposit, all departments have the option of making deposits over-the-counter at their nearest bank location. 18. Page 15, Depository Accounts & Attachment 5, Armored Carrier: Are there locations which generate deposits of checks and drafts only (no cash)? No, City Departments can deposit cash and/or checks/drafts. If so, would the city be receptive to less expensive courier services for those no cash locations? Yes Are pick-up times sensitive? Yes If so, can bidders receive desired pick-up times now, or negotiate later? Negotiate later. 19. Page 18, Lockbox Services: Will city departments want lockbox to accept credit card payments? Yes If so, for which departments might lockbox credit card payments apply? The Office of Finance Is the city currently using retail lockbox services? No If so, is this service to be included in RFP response? Yes If yes, please provide; volumes, processing details, and which departments are using retail lockbox services. The City does not currently use retail lockbox services. Page 3 of 9

4 20. Page 19, Merchant Card Services: Which departments accept credit card payments? 15 Departments It would be helpful to know the following for each department: Annual number of transactions The City s 2007 total volume is 2.17M Average transaction amount Approximately $88 Volume/amount changes forecasted 2.5M/$222M Payment gateways Cybersource What types of payments are being accepted throughout the City? Credit Yes Debit Yes Recurring No Electronic checks No 21. Attachment 2, Pricing Schedule: (City of LA referred to as the client ) Pricing element: 05011P, Wholesale Lockbox Negotiability Review Please define this service or explain the purpose it serves. Per item fee to review and reject a check which is post-dated, marked paid in full on the front, or if it meets/fails to meet other criteria specified by the client. A fee is assessed for each type of review/reject criteria performed on a check. Pricing element: and , Wholesale Lockbox Detail Rough & Fine Sort Per item fee to sort items prior to processing into 3-5 groups, per the clients specifications, such as by invoice number, type of invoice, state, region, etc. Please define source document for sorting and explain (i.e.; batch settle, segregated deposits, special reporting, etc.). Source documents are provided by the client with instructions on what to do with them. Is the City submitting an Image Cash Letter for deposit? The City has 1 department submitting an Image Cash Letter for deposit. If so, what format is currently being used? FTP with PGP Encryption. Are any items converted to ACH in this process? No Is the city currently using a remote deposit process for depositing images of checks? Yes If so, at what locations? Treasurer s Office Are remote deposit solutions being used web-based or software-based? Both Page 4 of 9

5 Pricing element: and , EDI Receiving Remittance Advising Direct & Network. Please explain service being provided and the difference between direct and network Monthly per account maintenance fee for OLS edit report on current supplier s web service The monthly charge to advise a non-edi capable customer that banks with the current supplier, of EDI payments received into their account(s) and the remittance detail associated with those payments through an online Information Reporting platform. 22. IV Proposer s Question (page 8) reference is made to all parties that were issued the RFP. Does the City make a distinction between responders who were issued the RFP vs. those who obtained it from the website? No Is bidding by invitation only? No 23. III Cost Proposal (page 13) reference is made to the cost proposal being presented in annual increments. We assume the City requires the presentation of service fees on an annualized basis. Does the 5-year contract term (with 5 optional 1 year extensions) allow for a review of service fees annually or at any time during the 5- year contract period? Allows for a review of service fees at any time. 24. I (e) 4 Account Reconcilement (page 16) reference is made to both positive pay and reverse positive pay. Will the City consider transitioning all disbursement accounts to positive pay or will reverse positive pay for certain City accounts be an ongoing requirement? City wants proposals for both. 25. I (i) 4 (page 18) reference is made to peak periods in processing Lockbox receipts. Can the City provide additional information with respect to when those seasonal peak periods occur? Peak periods are from January to June. 26. Will the City make current account analysis statements available to the responders? No 27. I. (k) 2 State Activity (page 19) With regard to the charge for State warrants. Please provide further clarification on how they will be received by the bank i.e. deposit slip prepared, receipt into lockbox, direct, etc. The warrants are currently being deposited manually. 28. I (c) 3 General Account Services (page 14) Please clarify if all non interest bearing accounts are to be on one account analysis and a separate account analysis for interest bearing accounts. All accounts opened with the City s Tax ID # should be on one account analysis, or unless otherwise directed by the Treasurer s Office. 29. I. (d) 5 & 6 Depository Accounts (page 15) Question number 5 request three bids for armored transport services and includes location details in Attachment V. Question number 6 requesting bids for Courier Service (check only couriers) does not have an Page 5 of 9

6 attachment detailing the locations. Can a list of locations be provided for Courier Services? Already provided as Attachment Pricing In regards to the pricing schedule, can additional pricing points be included that are specific to an individual bank? Yes. Please include additional pricing points on the bottom of the pricing schedule. 31. Does the City of Los Angeles intend to contract with the successful bidder to this RFP for banking services and merchant services or will a subsequent merchant services specific RFP be issued at a later date? The City of Los Angeles intends to include merchant services as part of the General Banking Services. What transaction types/card brands does the City accept today? Visa Yes MasterCard Yes American Express Yes Discover Yes PIN Debit No PINLess Debit No E-Check (POP, ARC, BOC, Verification, Guarantee, etc.) Yes Other please identify (RCK) 32. Does the City desire to accept any additional transaction types/card brands now or in the future? Based on City Department needs. 33. How many current locations within the City accept Credit, Debit, or E- Check? Currently the City has 125 merchant accounts. How many Retail locations? 113 How many mail order/telephone order locations? 26. How many Internet locations/websites? What hardware and software is currently in place for Credit, Debit, or E-Check processing? Hardware Various hardware such as Verifone T380, Verifone P900, Hypercom T7Plus, Omni 3740DC Software Cybersource, ACS, Trust Commerce 35. Does the City intend to continue utilizing the current hardware and/or software in the future or is the City interested in upgrading hardware/software? Pending RFP responses. 36. If upgrading, what additional functionality would the City like to gain? Pending the RFP responses. 37. City-wide, what percentage of transactions are processed at Retail (card-swipe); what percentage are processed in a mail-order/telephone-order environment (key- Page 6 of 9

7 entered); and what percentage are accepted via the Internet (customer key entered)? Information not available. 38. If IVR is in place today, please provide mail-order/telephone-order numbers broken out by IVR vs. other key-entry methods such as via the telephone (CSR rep) or via mailed requests. IVR is not available. 39. Specific to IVR transactions, is the City accepting transactions via IVR today? No If yes, is the IVR owned/hosted by the City or a third-party? N/A If a third-party, who is the current vendor? N/A 40. Who is the incumbent electronic payments processor for the City and, if under contract, when does the current contract expire? Bank of America, June 30, If available, please provide a list of payment networks (Vital, NOVA, FDMS, etc.) to which the City is currently authorizing and/or settling electronic payment transactions. Currently all of the City of Los Angeles accounts utilize Vital which is now actually TSYS Acquiring. 42. What is the current volume and transaction count processed daily, monthly, or annually by department by transaction type as follows: Association Name 2007 Volume 2007 # of Trans City of LA Public Library $ 225, ,261 City of LA Dept Water and Power $ 38,308, ,831 City of LA Dept of Fire $ 889, ,095 City of Los Angeles Zoo $ 1,996, ,578 City of LA Convention Center $ 2,827, ,047 Ontario International Airport $ 10,269, ,155 City of LA Taxes & Permits $ 22,219, ,805 Los Angeles International Airport $ 26,148, ,924 City of LA Recreation & Parks $ 8,105, ,672 City of LA Building and Safety $ 30,897, ,395 City of LA Dept of Transportation $ 43,751, ,359 City of LA Public Works $ 3,994, ,010 City of LA Animal Services $ 972, ,190 City of LA Ethics Commission $ 49, City of LA Housing Department $ 65, Total $ 190,722, ,172, Page 7: Pre-Proposal Conference Will all of the submitted questions and responses be shared with all of the prospective bidders? And, when do you expect Page 7 of 9

8 to have the responses back to the prospective bidders? Yes. Responses will be posted at least five days prior to the submittal date of the RFP. 44. Page 13: Cost Proposal Please clarify the requirement that the cost proposal should be presented in annual increments. For example, Year 1, Year 2, etc. 45. Page 15: General Account Services, Section d, Questions 5 and 6 Please provide the required pick-up times for both your armored carrier and courier services for all locations (as detailed in Attachment 5). In addition, please provide the average daily deposit (currency and coin) amounts for your locations requiring armored carrier service. Pick-up times are flexible, and vary depending on the carrier as well as any pick-up restrictions set by any of the City s departments. The objective is that deposits are picked up and receipted by the bank same day. Deposit amounts fluctuate based on seasonal deposit activity. 46. Page 16: General Account Services, Section e, Question 1 How many digits are necessary for the unique identifier code on the City s deposit slips? Minimum of six. 47. Page 17: General Account Services, Section g, Question 7 How often is the City s payroll (weekly, bi-weekly, monthly, etc)? Bi-weekly Does the City utilize a payroll vendor? No Or, is payroll completed in-house? In-house How many employees take advantage of direct deposit of payroll? Approximately 70%. What is the aggregate dollar amount of the City s direct deposit of payroll file per pay period? Approximately $80M bi-weekly. 48. Page 18: General Account Services, Section i, Question 3 What remittance data is being captured and reported to the City today? Varies based upon lockbox daily transmission. Does the information reported meet your reporting needs? Yes. What is the file transmission time required by the City? 1 day. Please note that lockbox data capture requirements will be finalized during contract negotiations. 49. Page 19: Optional Services, Section a, Question 1 Do you seek pricing information for the optional merchant card services? Yes. Please refer to question 30. If so, please provide a copy of your recent merchant card activity or details regarding your average ticket size, number of site locations (terminals and terminal types), and monthly merchant card deposit totals. Please refer to questions 33 and Attachment #2: Please clarify the following service descriptions on your pricing schedule: Wholesale Lockbox Special Detail Assembly Code Per check fee to assemble lockbox remittance detail in non-standard order prior to sending to client. Standard order is check copy, remittance documentation, and envelope, stapled in upper left corner. Page 8 of 9

9 Fixed Monthly Package Fee Code Transactional charge for transportation of various items forwarded for processing to the Federal Reserve Bank and selected correspondent from capture site. Undefined Paper Disbursement Reconciliation Services Code Per report charge for a customer to receive an additional copy of a Partial Account reconcilement report. ACH Optional Reports (Electronic, Fax, and Mail) Code Electronic A per report charge to deliver optional ACH reports electronically. This includes the current supplier s web service transmissions and other electronic methods. Fax A per report charge to fax optional ACH reports. Mail A per report charge to mail optional ACH reports. 51. Attachment #3: Please summarize the type(s) of activity / transactions processed to your Stand Alone, Port of Los Angeles, Water & Power. Please refer to cashflow worksheet. Similar to the City s primary account which includes all types of general banking services (wire, cash, ACH, merchant cards, EFT, lockbox, etc.). Disbursement Accounts. Warrant only. ZBA to active account. 52. Attachment #7: Are the General Liability, Automobile Liability and Worker s Compensation Endorsement required at this time? Or, are they to be submitted prior to the effective contract date? Produced prior to the contract execution date. 53. Attachment #8: Is this application to be submitted by companies seeking exemption only? Or, is an executed copy required by all bidders prior to the effective contract date? All bidders. 54. Attachment #13: Section E, Question 9: Banks could have thousands of contracts with similar types of government entities. Would the list of references provided in the Reference Section of the RFP meet this requirement? Exempt. 55. Attachment #13: CRO Posting Verification This document is to be completed by the Awarding Authority (an authorized representative of the City). Should the bidders submit a non-executed copy of this document in the proposal response? Refer to addendum 1. Page 9 of 9