Questions and Answers Request for Proposal for Banking Services

Transcription

1 Questions and Answers Request for Proposal for Banking Services Date: March 14, 2018 Q: Can you provide a copy of the RFP in Word for the providers? Especially given the very quick turnaround time (3 weeks), having the Word document saves a lot of typing and formatting and ensures we can meet the City s timeframe. A: The City only provides PDF that can be found on the City s webpage. Q: Can you provide the Pricing Matrix in an Excel Document? Again, this saves us the time of having to create all of the City s activity and volumes from scratch. A: The City only provides PDF that can be found on the City s webpage. Q: Can you provide 3 months of Merchant Card Services statements? This will allow us to see what types of transactions the City is getting, the average ticket amount, the number of transactions and which terminal (location) the transactions are occurring at. Q: Please provide a list of which offices have (or will need) merchant services terminals. If you have equipment already, please let us know the type of equipment that the City has. A: We have 3 terminals in the cashiers office. They each have a card reader. A terminal will be used at the Animal Shelter; it is expected to open in May Q: Does the City have any limitations as to which Credit Cards it will or will not accept? (Visa, MasterCard, Discover, AMEX, Diners Club, etc.) A: Visa and MasterCard Q: Please provide a list of where the City will need Armored Car Service (addresses, frequency of pick-ups and average deposit amounts). This will assist us in getting quotes for the Service. A: 8401 Laguna Palms Way and future site of the Animal Shelter, it is expected to open May Q: Please verify that the use of a third party service provider is acceptable. A: City is unsure what the third party service provide is referring to, if it is referring to armored car service, then yes a third party service provider is acceptable.

2 Q: Who will have investment manager responsibility on the account (ie, will this be directed by the City or an outside investment management firm)? A: Director of Finance and Administrative Services Q: Will the assets in the account be pledged and therefore be subject to an account control agreement? If so, who is considered the customer and who is the secured party? A: City has no pledged assets Q: In terms of Ratings, we only provide S & P, not Moody s or Fitch via our on-line service, OTC (Online Trust & Custody) A: Please provide in the proposal. Q: How will trades be communicated to the us [sic] as custodian? A: City provides a trade ticket with signature of City authorized official. Q: What is the average number of trades per month (buys and sells)? A: During the past three months, the City s average buys were approximately 10 per month. This City rarely sells securities. Q: Will there be daily netting of cash? If so, where will the cash be doing [sic] (ie, automated sweep to the City s DDA)? A: The City has one investment account. If the financial institution wants to propose an arrangement, they may do so in the proposal. Q: Where would you like bidders to include responses to the Scope of Work (both the Financial Institution Information and the Services/Requirements)? A: See RFP Q: Do you want the Pricing listed under #7, Attachment A or both? A: The pricing index should be in our format but listed under #7 Q: Can we supply Insurance Certificates now as proof of insurance and add the City as an additional insured after the contract is awarded? A: The proof of insurance is part of the contract. Question: What software does the City use? The RFP asked if our online system could export to your software. What software do you use? A: The City uses the export function of excel and sorts using the comma delineate function. Q: What is the contract term? 5 years? Is there an option to extend it if mutually agreed upon by both parties? A: Refer to RFP.

3 Q: Can a breakdown of card type be provided that includes volume, transactions, average ticket, % of card present vs. % of card not present. Pin debit is looked at separately from signature debit (debit card swiped as a credit card). Requesting same information for pin debit, if possible (or, at minimum, the % volume/trans. that are pin debit). Q: Any and all technology currently used to take payments to include gateways, middleware/shopping carts, terminals, etc... Please note any technology that would need to be replaced in a conversion; include, if currently, EMV compliant with current equipment. A: We use Gateways, shopping carts and terminals. Q: Is there a convenience fee currently being charged or, if not, is there any interest in doing so? A: No, there is no convenience at this time. Q: Is there a need for alternate payment methods (i.e. check, foreign currency, etc...)? If so, what are they and what percentage of the volume does this represent? A: No there is no need for alternate payment methods. Q: What are the reporting/integration needs on the back end for accounting/finance purposes? A: The City uses the export function of excel and sorts using the comma delineate function. Q: Regarding current service provider: What fraud provisions are currently in place? Currently PCI compliant? If not, why? Can you provide a current statement or two for comparison analysis? A: See RFP under Fraud and Security Protection. Page 9, Item #5 Safekeeping Services Q: What is the total market value of the custody portfolio? Q: Please provide the total number of accounts maintained, including how many are separately managed, if any. A: The City has one investment account. Q: How many commingled funds are held in the portfolio and total market value of the commingled funds? A: The City has no commingled funds. Q: How many alternative/mirror image items are held in the portfolio and total market value of the alternatives? A: None. Q: What is the average monthly cash sweep balance maintained? A: The City s investment cash balance average over the last the months were $507,678.

4 Q: Annual or monthly trading estimates for buys/sells/maturities (these can be one total)? A: During the past three months the City s average buys were approximately 10 per month. The City rarely sells securities. Q: Annual or monthly estimates for CMO/assets and mortgage backed principal and interest payments? A: Please see the January 2018 Treasury Report under the RFP section under Notice. Q: Annual or monthly estimates for pooled security interest payments. A: Please see the January 2018 Treasury Report under the RFP section under Notice. Q: Annual number of capital calls? A: The does not have this information Q: Do you hold any physicals? If yes, how many? A: No Q: Estimate of the number of incoming wires annually. A: Not known at this time. Q: Estimate of the number of outgoing wires annually. A: Not known at this time. Q: Is there any special reporting required? If so, please provide a sample of the report(s). A: No special report required at this time. Page 10, Item #8, Merchant Card Services Q: How many locations does the City currently process? A: 1 location Q: What type of equipment is the City using currently? A: The cashiers use MAGTEK credit card readers (non-emv). Q: Do you have any only merchant processing? A: Unable to answer Q: What is the current (or estimated) total annual amount processed? Q: How many transactions are processed on an annual basis? Q: What is the average ticket size for your transactions?

5 Page 12, Item #13 Financial Information Q: The bank s financial statements are hundreds of pages long. Can we provide a link to all our financial information or do you require a hard copy of the information? A: Yes Attachment A: Pricing Matrix Q: Are the ACH Originated items sent as Two Day or One Day effective dates? A: The City s ACH is same day. Q: Can you provide details on what ACH Adjustment Monthly Maintenance and ACH Adjustment Request represent? Are the adjustments for deletes/reversals, traces, recalls, or additional information to be sent to the Receiving Depository Financial Institution (RDFI) so that they can apply the funds to the appropriate account/beneficiary? A: The City does not have the details of the representation of the ACH Adjustments but just is what is on the analysis statements. Please see the Customer Analysis Statements under the RFP section under Notice. Q: Please provide details on what ACH Positive Pay Monthly Maintenance represents. Is this an ACH Fraud Filter for E-Checks or an ACH Debit Fraud Filter? A: Please see the Customer Analysis Statements under the RFP section under Notice. Q: Can the City of Elk Grove provide a listing of addresses that require Branch/Cash Vault services? Please advise if the preference is to use the 8401 Laguna Palms Way address as the central/sole location. A: 8401 Laguna Palms Way and future site of the Animal Shelter Q: Are Lockbox Services utilized or needed by the City? A: The City does not utilize or need Lockbox Service. Q: Guidelines #5 Does the City have a Conflict or Interest Statement/Agreement or template the Bank can execute to satisfy this requirement? A: The City does not have a Conflict or Interest Statement/Agreement or template the Bank can execute to satisfy this requirement. Q: Scope of Work #8, provide a sample "percentage of Federal Funds Rate" calculation and weather [sic] or not the expectation is that the earning credit on analyzed accounts would be variable with Fed Funds and the Index. A: The City does not have expectation but will evaluate all bank responses. Q: Scope of Work #8, how many separate Merchant ID's are required for all offices? A: The City has one merchant account Q: Scope of Work #8, what is your average yearly sales volume for credit cards?

6 Q: Scope of Work #8, can you provide a current sample of a monthly merchant statement? Q: Scope of Work #8, how many locations accept credit card payments? A: 8401 Laguna Palms Way and future site of the Animal Shelter Q: Scope of Work #8, are you currently using only terminals or are payments taken online? A: Both Q: Scope of Work #8, can you provide a list of terminals/pos systems being used today? If terminals listed do you currently meet EMV compliance? A: The cashiers office has 3 terminals and yes the City is EMV compliant. Q: Scope of Work #8, what type of reporting tools are being received today? Are there any special reporting needs? Is this outside the software you use today? A: The City receives monthly reporting statements. There are no special reporting needs at this time. The software that is used is provided by our current financial institution. Q: Scope of Work #8, are you under a current merchant contract? If yes, when does that contract expire? A: Current banking services contract ends June 30 th Q: Scope of Work #8, are there specific pain points or issues with your current processor you are trying to resolve by going out for RFP? A: No, the City reached the end of the contract. Q: Scope of Work #9, describe the City's current process for uploading or importing issues files. Is this done manually by staff or via automation (FTS or SFTP)? A: Staff imports files into excel. Q: Scope of Work #12.o, provide locations and pickup schedules desired for Armored Car service. Estimated cash delivery and pick-up volume per location. Answer: 8401 Laguna Palms Way. Due to security reasons, the City is unable to disclose pickup schedules. Q: Scope of Work #12.q, describe the cash vault services required. Is this referring to a cash vault on site or the ability to order currency for delivery and daily cash pickups? A: Yes Q: Scope of Work #12.l, is this referring to a lockbox service or desktop remote deposit of checks? How many locations will scan checks via Remote deposit? Does the City currently own check scanning equipment? If yes, what is the brand and model of the scanner? If no, how many scanners will be needed?

7 A: This is not referring to lockbox services but desktop. Epson TM-S1000 Model M236A. We have one check scanner. Q: Scope of Work General, does the City receives or transmits any files or reports via FTP? If so please provide details on each type of files transmitted. A: the City has merchant services accounts to collect online payments and use authorize.net for the shopping cart for the City created forms that take payments from the City s website. Q: Scope of Work #7, at this time, River City Bank does not offer any lease purchase agreements. Would a non-revolving line of credit, issuing loans for the purchase of vehicles and equipment, serve as an acceptable alternative? If so, does the City have any? - Are there specific types of equipment purchases to be contemplated under the proposal? - Preferred term/amortization options, and any variance for vehicles versus equipment? - Preferred optionality to acquire new versus used vehicles? A: This City is requesting the bank indicate what services you will provide. Q: Pricing Matrix, there is a line item for mobile Monthly Maintenance on the Matrix. Please describe how the city is using mobile banking. A: It allows for approval of wires, etc. via mobile phone. Q: Insurance requirement section, the Bank's E &O coverage is currently less than the $10 Million requested. Please explain the need for the $10 Million in E & O coverage vs. a lesser amount. Because the City's deposits will be collateralized the city will be protected regardless of E&O issues or fraud. Is this item/coverage negotiable? A: This is the City s standard requirements that Council authorized at this cap. Q: Contract 4A, why is a cap necessary for banking services? How this cap determined and what is is considered written approval? For example, if a banking transaction tips the cost over the cap, is the act of performing the transaction considered city approval? A: This is the City s standard requirements that Council authorized at this cap. Q: Contract 5A, banking services are typically not invoiced. Does their current bank process an invoice? If so, what are the payment terms of the invoice? A: There is no invoice but a monthly reconciliation of fees is done and must not exceed the cap. Q: Contract 7, we've not seen this in banking agreements. Typically, this in a professional services type of agreement. Does their current banking services contract have this section? A: Yes Q: Contract 11BRe: Temporary Suspension: From a banking perspective, this means we will stop all deposits and withdrawals from accounts. Is this what they expect? Are we able to add verbiage here regarding how the bank will handle? A: Yes

8 Q: Contract a5 A&B, I don t believe a bank can abide by this request. We are required to maintain the transaction data for a period of time and cannot be turned over to the City. How is this handled with their current bank contract? A: This clause is in the current banking contract. Q: Contract 17C, if we have a change in staff, are they requiring that we must receive written approval prior to reassigning their relationship? A: The City would like to be given the approval of who is being reassigned to the City. Q: Contract 17D; this section may be in conflict with the Bank s legal requirements. How does the current bank handle this request? A: This clause is in the current banking contract. Q: Contract 18, this may be in conflict with the Bank s legal requirements. How does the current bank handle this request? A: This clause is in the current banking contract. Q: Contract 22, what does the city consider a banking subcontractor? Does this include all of our vendors for systems, services, etc. or just those individuals that perform banking functions? A: Any vendor system or service that provides service to the City. Q: Contract, General Question, the Bank's current municipal clients execute a standard deposit account agreement and applicable agreements for Cash Management Services. Would the City consider this approach vs. trying to fit the provided contract to address a banking relationship? Samples attached. A: If you want to make changes, please make changes and provide in your response reference Guideline for Proposal, #10. Q: Does the City utilize scannable coupons for checks received? A: No Q: The city indicates 1401 checks received per month. How many invoices or account numbers are received on average per check? A: One per check. Q: Does the City require weekend processing for their received checks? A: No Q: Does the City use armored couriers to transport coin and currency to a branch? A: Yes, included in the contract. Q: Is the money deposited through the vault channel collected in one location within the City? A: Yes Q: Individual coin roll at a value of 4. Are these deposits or rolls ordered?

9 A: Rolls Q: Electronic deposits, what is the origin of these items? Are they deposited from a single or multiple locations? A: Single Q: What ERP system does the City use? A: OneSolution from SUPERION Q: Regarding Merchant Services, Can you provide an annual breakdown by card type or provide prior processing statements? A: The Card types the City takes are Visa and MasterCard. Please see the Merchant Teller Statements under the RFP section under Notice. Q: How are you currently processing credit cards? Online or ecommerce? Over the phone (MOTO), credit cards machines? A: We process credit cards with credit card machine all online/pone handed by third party merchant teller. Q: How merchant accounts and/or locations are you going to need to setup? A: The City has one merchant account, one location, and 7 merchant teller accounts. Please see the Merchant Teller Statements under the RFP section under Notice. Q: If you can provide statements from your current credit card processor would you like us to do a side-by-side cost comparison? A: No Q: Are you using a point-of-sale-software system or internet gateway to connect to your current processor? If so, please provide name/software version. A: We use Gateways, shopping carts and terminals Q: Is the City s current Armored Car Service Provider in contract with the City or the City s current financial institution? A: Contract with current financial institution. Q: Is it the City s intention to have the new service provider contract directly with the armored car service or just pass the fees through account analysis? A: Through account analysis with financial institution. Q: Please provide the location and frequency of pick-ups for each City office receiving armored car service. Please include an average or typical deposit amount by location. A: Due to security reasons the City is unable to disclose pickup schedules. Q: Pg. 12, 12.o. If the Service Provider does not bear the expense of transportation, will this disqualify the provider? A: No, the City will evaluate all banking responses.

10 Q: Page 11, 12.e. Digital record of cleared checks. Does the City prefer a CD Rom or Online access up to seven years of history, or both? A: Online access Q: What is the City s frequency of deposit activity at physical branch? How many City locations will be making deposits at a branch? A: Not often Q: How many cash orders per month are made by the City? What makes them non-standard? A: Please see the Customer Analysis Statements under the RFP section under Notice. Q: On the pricing bid sheet, under Cash Vault Services, is listed Currency Order per Strap - Qty 5. Can the City provide a dollar amount of the Currency Ordered? A: Dollar amounts vary. Q: In the past 12 months, please provide peak daily ACH levels for each payment type below: a. Payroll b. Taxes c. Vendor Payments d. Consumer Debits (utility billing, etc.) e. Other significant incoming or outgoing ACH sources A: All dollar amounts and quantities are an average of the last 3 months (62 days) Payroll $95,291.21; 0.26 Taxes $22,025.68; 0.16 Vendor Payments $262,615; 2.16 Consumer Debits None Other significant incoming or outgoing ACH sources None Q: In the past 12 months, please provide peak daily aggregate outgoing wire usage? Top three days. A: Top three days: 1. 4 Wires for $9,947, Wires for $5,296, Wires for $1,221, Q: Please list each department processing card payments at this time? A: Please see the Customer Analysis Statements under the RFP section under Notice. Q: Software - please provide any software or pos systems currently being utilized to process card payments? A: The cashiers use MAGTEK credit card readers (non-emv). Q: Terminals - please provide the names of any credit card terminals being used at this time? A: The City uses USAePay for the processing.

11 Q: Please list each departments yearly credit card volume and estimated average ticket amount? Q: Please provide merchant statements for each of the departments processing card payments? Q: What is the number of Remote bankcard processing terminals required by the City for the multiple locations? A: 8401 Laguna Palms Way and future site of the Animal Shelter.