4578 and 4579 ADDENDUM 1 Complete
Purchasing Department
901-B Texas St.
Denton, TX 76209
(940) 349-7100
www.dentonpurchasing.com
ADDENDUM # 1
September 20, 2010
RFP # 4578
Merchant Services
RFP # 4579
Depository Services
PROPOSALS DUE: October 4, 2010
2:00 P.M.
Proposal submitted by:
Company Name
RFP # 4578 – ADDENDUM # 1
Addendum # 1 to be returned with Bid Proposal
Please see the attached pages for answers to questions submitted by
prospective bidders:
NO OTHER CHANGES AT THIS TIME.
This form shall be signed and returned with your bid.
Name:
Signature:
Company:
Title:
Date:
RFP 4578 and 4579-Addendum 1
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Finance Department * 215 E. McKinney * Denton, Texas 76201
Telephone (940) 349-8531 * DFW Metro (972) 434-2259 * Fax (940) 349-7206
DATE: September 20, 2010
TO: Prospective Bidders
FROM: Antonio Puente, Jr. – Treasury Manager
SUBJECT: Q & A – RFPs #4578 and #4579
The following is a list of questions submitted by prospective bank and merchant bidders and
the City’s response:
Bank Depository
Question 1. Is it possible to get a copy of a recent Account Analysis Statement? If so,
would you provide the timeframe for receipt?
City of Denton Response:
The City of Denton has requested a legal opinion from the Texas Attorney General
regarding the potential confidentiality of the requested information. Upon receipt of
the Texas Attorney General’s legal opinion, the City of Denton will act accordingly.
Question 2. What is the City’s historical average collected balances for the last 12
months?
City of Denton Response:
Over the last 12 months, our balance has increased from $2.5 million to $7.5 million.
However, the City of Denton strives to maintain an overall liquidity position
approximately $25 million. This liquidity position is comprised of the City’s bank
balance and balances maintained in two local government investment pools. The
distribution of balances is fluid and we shift them as interest rates change.
Question 3. How much of these balances are currently interest bearing or in a Super
Now accounts?
City of Denton Response:
The City of Denton’s current bank balance is approximately $7.5 million and all of it
is in an interest bearing Super Now account.
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Question 4. How much of these balances are in non-interest bearing accounts?
City of Denton Response:
The City of Denton does not have any non-interest bearing accounts.
Question 5. Are the Automated Teller Machines a requirement as part of the
depository agreement?
City of Denton Response:
No. However, the ability to provide this optional service will weigh into our
evaluation of proposals.
Question 6. Are there existing ATMs at the two locations described in the RFP
(Denton Municipal Complex and Water Works Park)?
City of Denton Response:
The City of Denton does not currently have ATMs at these, or any other, locations.
Question 7. Is the City seeking a full service ATM or a Cash Disbursement type of
machine?
City of Denton Response:
The City of Denton would prefer full service ATMs but cash disbursement only ATMs
would meet our needs.
Question 8. The City is currently using E-lockbox or “EBox.” What type of
information/data is being passed to the City with this service?
City of Denton Response:
The City of Denton receives payee’s name, account number and dollar amount.
Question 9. Would the City be willing to use a similar service if the same information
can be captured and transmitted?
City of Denton Response:
The City of Denton is willing to consider any other options that do not negatively
impact our operations or staff resources.
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Question 10. Is a Letter of Credit from the Federal Home Loan Bank of Atlanta a
suitable form of collateralization for the City’s deposits?
City of Denton Response:
The City of Denton’s Investment Policy does allow the use of Letters of Credit for the
collateralization of deposits.
Question 11. Are credit card transactions currently being processed thru your Retail
Lockbox?
City of Denton Response:
Credit cards are not currently processed through Retail Lockbox.
Question 12. How many banking institutions will the City consider finalists as part of
the “Bank Presentations/Product Demo’s”?
City of Denton Response:
The City of Denton anticipates inviting 2-3 banking institutions, depending on staff’s
review of submitted proposals.
Question 13. The City states to attach copies of the Bank’s most recent (last two
quarterly) FDIC (UPBR) call reports. (p 6/22). Will the City accept a link or CD?
City of Denton Response:
The City of Denton will accept either medium or a hard copy.
Question 14. The City states that the Bank will submit a copy of the last audited
financial statements and the subsequent quarterly supplements. (p 22/22) Will the City
accept a link or CD?
City of Denton Response:
The City of Denton will accept either medium or a hard copy.
Question 15. Can the City provide additional details regarding the functionality of the
e-lockbox service (p. 10/22)?
City of Denton Response:
The City of Denton’s E-Box accepts electronic/ACH payments from vendors and other
banks on behalf of our customers. The file is added to the City of Denton’s daily
Retail Lockbox file.
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Question 16. How many copies of the proposal are required?
City of Denton Response:
The City of Denton requests five (5) copies.
Question 17. Based on the review of your existing services, paid checks are not
currently being mailed back to the City. If an image can be provided by CD or online
services, will the requirement to return checks be eliminated?
City of Denton Response:
The City of Denton prefers that paid check images be made available through a CD
accessible through a free downloadable software or online software provided by the
bank. If available online, the City of Denton will require that images be made
available during the entire term of our contract and that the City of Denton will be able
to obtain a file of those images if the contract terminates. If neither of these options is
available, then the City of Denton will require that paid checks be mailed back to the
City for archiving.
Question 18. In the RFP packet we received, we don’t see where it states what
balances you will maintain in the account. Can you provide the average monthly
balances for the past 12 months?
City of Denton Response:
The City of Denton’s decision on how much to maintain is driven by the earnings
credit rate offered by our depository and their ability to maintain adequate collateral.
Over the last 12 months, the City of Denton’s bank balance increased from $2.5
million to $7.5 million. However, the City strives to maintain an overall liquidity
position of approximately $25 million. This liquidity position is comprised of the
City’s bank balance and balances maintained in two local government investment
pools. The distribution of balances is fluid and we shift them as interest rates change.
Question 19. Are the following services absolutely required (a deal breaker), would
like to have, or not necessary?
Controlled Disbursement
8:00 CST cut-off time for deposits
Positive Pay – Payee name verification
City of Denton Response:
The City of Denton does not currently have a Controlled Disbursement account but it
is highly desired and will be a critical component of our evaluation of proposals. The
City of Denton highly desires to maintain an 8:00 p.m. CST cut-off time for deposits
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and will be a critical component to our evaluation of proposals. The City of Denton
current has a positive pay program that verifies 4 components (payee name, check
number, check date, and check amount), which is a must have for check fraud
prevention.
Question 20. Do you have any additional information regarding Capital Leasing and
Line of Credit? How much credit is needed, length of loan, or type of purchase?
City of Denton Response:
The City of Denton has historically utilized Capital Leasing for equipment and
vehicles with a term of 5 years ranging in $5-$10 million. The City of Denton has
annual needs in this area and will evaluation this financing along with the issuance of
short-term bonds. This is an optional service.
The City of Denton has never had a line of credit but, if the need arises, would utilize
it for emergencies or short-term financing with the option to refund with short-term
bonds, as in the case of a capital project. This is an optional service.
Question 21. I noticed you have asked for Retail Lockbox and E-Lockbox services. I
understand the “paper” utility payments are directed to the retail lockbox. Since
customers and banks sometimes call different services different things, I wanted to
clarify the type of payments that are processed through E-Lockbox. Are they over the
counter “paper” payments processed through an in-house E-Lockbox or are they ACH
Direct Debit payments?
City of Denton Response:
The Payments processed through E-Lockbox are electronic payments, including
ACHs. No over the counter payments are processed through E-Lockbox.
Merchant Services
Question 1. Is the processing volume for the entire year or is it average monthly?
City of Denton Response:
The volumes are the average monthly volumes for the 12 month period ended June 30,
2010.
Question 2. Regarding Lockbox: Which of the following scenarios best describes the
solution you are seeking:
A. The checks come direct to a City of Denton operated P.O. Box?
B. You wish to have the checks come to the merchant services provider for
processing?
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City of Denton Response:
The City of Denton’s current lockbox provider, as part of our bank depository
contract, operates the P.O. Box. However, some checks are brought to the City by
customers and those are either processed at the point of purchase, back office or
deposited through our armored truck service.
Question 3. What hardware at the POS or for ARC do you current have? Are you
looking to add or replace any of that equipment?
City of Denton Response:
The City of Denton provided this information on page 10, section 6.2 of the Merchant
Services RFP #4578. However, the check reader described as “RDM711” should be
“RDM7011.”
Question 4. On Attachment A, you list dollar and per item volumes. I see that they
are 12 month averages, but is the item volume listed per month, or is that the annual
figure?
City of Denton Response:
The volumes are the average monthly volumes for the 12 month period ended June 30,
2010.
Question 5. Will additional signage other than what has been previously provided be
required?
City of Denton Response:
No. At a minimum, the City of Denton expects to receive and post what NACHA
and/or card association requires.
Question 6. Do you require internet transactions in English and Spanish?
City of Denton Response:
The City of Denton only requires internet transactions in English but may be agreeable
to providing those in Spanish if available and the need arises in the future.
Question 7. Please define what is considered an exception item?
City of Denton Response:
The City of Denton considers any adjusting transaction (i.e., returned item,
chargeback, error, etc…) to any of its accounts as an exception item.
Question 8. If daily funding notices are available via on-line access, is daily e-mail or
fax required?
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City of Denton Response:
The City of Denton may be agreeable if on-line access is available within 24 hours of
the activity.
Question 9. Please define dynamic rate structure with the ability to match market
pricing?
City of Denton Response:
The City of Denton desires a competitive rate structure while receiving the most
economical market/industry specific rates and/or discount benefits. The provider
should assist the City of Denton in the identifying rate and discount opportunities
throughout the term of the agreement.
Question 10. What software is being used for payment processing?
City of Denton Response:
The City of Denton currently utilizes Virtual Merchant as provided by its current
merchant services provider.
Question 11. Whom is your current processor and check service provider?
City of Denton Response:
The City of Denton currently utilizes Elavon / EnCircle.
Question 12. Section 5.7 and 5.8 – is electronic confirmation to the cardholder (payer)
requested for only the non face to face transactions?
City of Denton Response:
The City of Denton requires electronic confirmation to all cardholders making non
face-to-face (internet) transactions. In addition, the City of Denton desires that face-
to-face customers physically approve all check and debit/credit card transactions.
Question 13. Are convenience fees assessed to the cardholder for Utility payments?
City of Denton Response:
The City of Denton currently charges a convenience fee for utility payments.
However, the City of Denton plans to eliminate the use of convenience fees and move
to a merchant funded model on June 1, 2011.
Question 14. Attachment A – Remote Deposit Capture (RDC) – are these figures for
credit card transactions or checks?
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City of Denton Response:
The volumes provide by the City of Denton are for check transactions only. Credit
cards are not processed through the RDC machines.
Question 15. Are samples of your current merchant services statements available for
the Utilities Customer Service POS and Utilities Customer Service Internet Accounts?
City of Denton Response:
The City of Denton has requested a legal opinion from the Texas Attorney General
regarding the potential confidentiality of the requested information. Upon receipt of
the Texas Attorney General’s legal opinion, the City of Denton will act accordingly.
Question 16. Who is the City’s current merchant services provider?
City of Denton Response:
The City of Denton’s current merchant services provider is Elavon.
Question 17. What is the City’s or its constituents currently being charged for
merchant services?
City of Denton Response:
The City of Denton has requested a legal opinion from the Texas Attorney General
regarding the potential confidentiality of the requested information. Upon receipt of
the Texas Attorney General’s legal opinion, the City of Denton will act accordingly.
Question 18. Page 3 of the RFP states that the contract period is scheduled to begin in
June 1, 2011. Can this date be considered the City’s desired “go-live” date?
City of Denton Response:
The City of Denton desires to “go-live” on June 1, 2011 but anticipates to begin
testing and coordinating the transition the City Council awards the contract on
December 7, 2010.
Question 19. Is it permissible for vendors to submit proposals for certain sections of
the RFP (i.e., Web credit card transactions only)?
City of Denton Response:
The City of Denton prefers to have both the bank depository services and all merchant
services under a single provider but will consider having separate providers for each of
those services. The City of Denton may consider an additional third party as it relates
to the provision of e-check services within the merchant services RFP.
Question 20. How many terminals?
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City of Denton Response:
The City of Denton currently owns fifty (50) terminals and printers.
Question 21. How many pin pads?
City of Denton Response:
The City of Denton currently owns fifty (50) pin pads.
Question 22. What gateway are you using to process online internet credit cards?
City of Denton Response:
The City of Denton currently utilizes Elavon / Virtual Merchant.
Question 23. Did you purchase the gateway from your bank provider or from the
vendor?
City of Denton Response:
The City of Denton utilizes the gateway in conjunction with its merchant services
agreement.
Question 24. Are you using a Hosted Order page, API and/or Virtual Terminal
application with your gateway?
City of Denton Response:
The City of Denton utilizes both API and Virtual Terminal applications with its
gateway.
Question 25. Who do you use for check warranty and verification services?
City of Denton Response:
The City of Denton utilizes Elavon / EnCircle for these services.
Question 26. Is the check warranty and verification services used on the credit card
terminals and gateway?
City of Denton Response:
The City of Denton currently utilizes check warranty and verification services only on
its point of purchase terminals.
Question 27. How many customer service representatives take the calls for the
gateway or is it all done online?
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City of Denton Response:
The City of Denton has multiple departments that use the web gateway to process
mail/telephone order card transactions.
Question 28. Do you have estimated projections for yearly totals, average ticket and
maximum dollar amounts for one day Echeck/ACH?
City of Denton Response:
The City of Denton does not currently provide e-check service and therefore has no
projections at this time. The City of Denton desires to implement e-check services on
June 1, 2011.
Question 29. Are you using more than one merchant category code for your merchant
services? What MCCs are you using?
City of Denton Response:
The City of Denton utilized the following MCCs: 4900, 8351, 9222, 9311 and 9399.
Question 30. Do you have a designated RM who supports all of your merchant needs?
City of Denton Response:
The City of Denton has two (2) Relationship Manager with its current merchant
services provider.
Question 31. Are your currently receiving next day funding?
City of Denton Response:
The City of Denton does currently receive next day funding.
Question 32. Are all the merchant accounts under the same tax id?
City of Denton Response:
The City of Denton maintains only one Federal Tax ID.
Question 33. Does the City currently charge a Convenience Fee for any credit card
transactions, or have plans to do so in the future?
City of Denton Response:
The City of Denton currently charges a convenience fee for utility payments.
However, the City of Denton plans to eliminate the use of convenience fees and move
to a merchant funded model on June 1, 2011.
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Question 34. Who is the City’s current web processor?
City of Denton Response:
The City of Denton’s current web processor is Elavon.
Question 35. Will TeleWorks integrate to the APIs we provide for our processing
system?
City of Denton Response:
Teleworks can integrate to most, if not all, APIs.
Question 36. Please confirm the model of the check reader described as “RDM711”?
It is our belief that this is a typographical error and should actually be “RDM7011.”
City of Denton Response:
The City of Denton’s check reader is in fact “RDM7011” not “RDM711.”
Question 37. Does the City have an existing check service provider? If so, please
provide the name of the vendor.
City of Denton Response:
The City of Denton’s check service provider is Elavon.
Question 38. Does the City require that all checks presented for verification at the
point of sale be returned to the customer and processed as an electronic transaction?
City of Denton Response:
The City of Denton does require that all point of purchase checks be verified or
guaranteed and processed as an electronic transaction. The City is open to not
returning the check, if regulations and applicable laws allow.
Question 39. Would we be able to pick up a copy of your current Depository Contract
at your office? If so, what fee would be involved? Or is this document available in
PDF format, which could be emailed to me?
City of Denton Response:
The City of Denton has requested a legal opinion from the Texas Attorney General
regarding the potential confidentiality of the requested information. Upon receipt of
the Texas Attorney General’s legal opinion, the City of Denton will act accordingly.
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The City of Denton appreciates your time and consideration. Sealed proposals will be
received by the City of Denton at the office of the Purchasing Agent prior to 2:00 p.m. CST
on October 4, 2010, please refer to the applicable RFPs for further information. Thank you.
c: Julia Klinck, Procurement Coordinator
John Knight, Deputy City Attorney