REQUEST FOR PROPOSALS Banking and Treasury Services LOS ANGELES COMMUNITY COLLEGE DISTRICT Contracts Office 770 Wilshire Boulevard, 6 th Floor Los Angeles, California 90017 RFP Number: 14-11 Addendum Number: 4 Date: December 26, 2014 NOTICE TO PROPOSERS: THIS ADDENDUM SHALL BECOME PART OF THE RFP, AND PROPOSERS SHALL ACKNOWLEDGE, IN WRITING, RECEIPT AND INCORPORATION OF ALL ADDENDA AND CLARIFICATIONS IN THEIR RESPONSE. FAILURE OF THE PROPOSER TO RECEIVE ADDENDA SHALL NOT RELIEVE THE PROPOSER FROM ANY OBLIGATION UNDER ITS PROPOSAL AS SUBMITTED. THE PROPOSER SHALL IDENTIFY AND LIST IN ITS PROPOSAL ALL ADDENDA RECEIVED AND INCLUDED IN ITS PROPOSAL; FAILURE TO DO SO MAY BE ASSERTED BY THE DISTRICT AS A BASIS FOR DETERMINING THE PROPOSAL NON-RESPONSIVE. Item 1: Change in due date for submission of the proposals Due to the higher than anticipated number of questions regarding this Request for Proposals and to provide prospective proposers sufficient time to respond, the proposals shall now be due by 2:00pm PST Wednesday, January 28, 2015. Item 2: Revision of Attachment A-C excel file Please see revised spread sheet dated 12/26/2014. Page 1 of 7
Item 3: Answers to questions submitted regarding this RFP Subject: Due date Question Please confirm the due date of the Proposal. The RFP states Thursday, December 7th, however, December 7th is a Sunday. Answer Please see item 1 above. The RFP states that the due date is Thursday, December 7th however the 7th is a Sunday. Can you please clarify the due date? Section A. RFP SCHEDULE page 6: Please confirm the exact date that the RFP is due. December 7th falls on a Sunday Subject: Armored Car Services Q. Do you currently hold the contract with your armored carrier or does your bank hold the contract? A. Our current banking institution holds the contract. Q. Tab U Armored Transport Services. Please provide the frequency of the pick-ups, locations of the pick-ups, and average deposit amounts of the pick-ups. A. All 9 College locations require at least an armored pick once a day except weekend and Holidays. Average deposit may vary depending the time of the year. The beginning of the semester the $ deposits are larger. The average number per month is listed on Attachment A. Subject: Attachment A Q. To make sure we fully understand what the District is currently utilizing and to ensure we are comparing the same or similar services - can you please describe and explain what Ecityrec items and Ecityrec Maint are? A. BAI file of prior day account information enables LACCD to import data into its accounting software. ECityRec Maintenance represents number of accounts on the service. EcityRec items represent transaction items reported in the file. Q. Please define City Image Itm & Stmt Check Images. What is the unit of measure? Please define Vault Dep Surcharges and Vault Dep Surcharge-Mixed. What is the unit of measure for each? Please define Ecityrec Items and Ecityrec Maint. Page 2 of 7
A. City Image itm & Stmt Check Images-Paid check images and DDA statements on a CD-ROM. Units of measure are per check image and per DDA statement image. Vault Dep Surcharges-Mixed deposits (i.e. coin, currency and/or checks). Vault Dep Surcharge-Mixed-deposit with more than $20 in coins on top of $1.25 deposit charge. Subject: Attachment B Q. In Attachment B Financial Data, can the District clarify the amounts (currently) listed in Total Assets & Total Liabilities for the year 2014 mean? A. Please populate using your organizations most recent audited financial statements. Some instititions will have their fiscal year 2014 end in December. In that case, please use the most recent data. This could be the most recent quarter or the most recent information provided by the CFO Q. Would the District accept a web link to our Financial information (SEC Filings) instead of completing the Financial Data in Attachment B? A. No. In order to be considered a responsive bidder, please fill in Attachment B as requested. Q. In Attachment B Total Loans made to local, small and emerging businesses, women and minority owned business, and disabled veteran owned Businesses, does the District want total bankwide or just Los Angeles? A. Please provide your data for the greater Los Angeles Region. In addition, please provide a figure for all loans made to small and emerging businesses (not necessarily local) bankwide as a supplemental attachment to your response if available. Q. We are unable to insert the Proposer Name at top of Attachment B. A. Please see previous answer Subject: Merchant Services Q. Can you please provide me with a copy of your merchant statements for the past 90 days? A. No. Q. Section B. FORMAT OF PROPOLSAL Tab M page 21: Please provide a list of the terminal make, model and quantity that is used for each entity/department accepting card payments. A. A list of the terminal make, model will not be provided at this time. Please provide us your own pricing and proposal assuming a minimum of 100 terminals. Q. Section B. FORMAT OF PROPOLSAL Tab M page 21: Please provide a list of the software name and version number that is used for each entity/department accepting card payments. A. ERP Systems: Quickbooks, WinPrism, SAP, Peoplesoft cashiering system after 2016 Q. Can the District confirm the following: Page 3 of 7
Point of Sales (Retail) o Annual Bankcard Processing Volume o Annual Transaction Volume o Average Ticket Price Card Not Present Volumes (Mail Order/Telephone/Internet Sales) o Annual Bankcard Processing Volume o Annual Transaction Volume o Average Ticket Price The current type of Point of Sales Terminals and/or Systems Methods of payments requesting to be supported (MC/V, Amex ect ) Any other Merchant Services Required? o Account updater (Reoccurring payments) o Security/Fraud Services o Account Truncation Answer. What data which will be provided has been provided above. Subject: Miscellaneous Q. Would the District be open to negotiating various exceptions on their Professional Services Agreement? A. Please refer to Exhibit E Q. We did not find the Standard Agreement referred to on page 12 - L of RFP or in the Exhibit B. A. This was a typo, please refer to exhibit F. Q. On page 4 of the RFP, the list of services the District would like a firm to provide includes #15 Investment Services and #16 Custody Services, however, in Section VI Proposal Format & Content it does not ask for any information on these services. Does the District want us to provide information/pricing for Investment & Custody services? A. The district requires any prospective firm to be able to provide the requested services. Please provide your pricing for Investment & Custody services. Q. Would the District clarify if Contractor or Proposer means only the Bank or does it include the Bank s parent, affiliates, etc? A. It may include the Bank's parent company but not the affiliates. Q. Please confirm the number of DDAs. Does the District only have 18 Demand Deposit Accounts (DDA)? A. We have 18 Demand Accounts handled by the District s Treasury. Page 4 of 7
Q. 28 Deposit Reporting Sub-accounts are the accounts Zero Balance Accounts (ZBA) or merely sub-accounts to identify deposit locations only (i.e., location codes)? A. They are accounts used to identify deposits by location only Q. Is the District currently utilizing Remote Deposit Capture to deposit checks? A. No. Please elaborate on this offering and describe how it will benefit the District. Q. Is the District currently originating ACH transactions? Or is the District currently utilizing third-party vendors to originate ACH transactions, (i.e., HigherOne for financial disbursements, ADP for payroll)? A. The District currently utilizes both of these options Q. ACH Credit Incoming are those transactions specifically electronic deposits from all credit card transactions? A. Received ACH credit items coming into CNB for posting to the client s account. Q. ACH Debit incoming are those electronic debits for chargebacks and/or credit card charges and pre-authorized debits from various business partners? A. Received ACH debit items coming into CNB for posting to the client s account. Q. Is the District currently utilizing Controlled Disbursement? If so, for which account? A. No. Q. Which account is currently utilizing Positive Pay services? A. General demand accounts Q. Given the low interest rates environment are Interest bearing accounts other than the Federal accounts, mandated by specific regulatory requirement(s) or specific requirement by the District? A. Interest bearing accounts are required where stated. For all others, we will calculate the total cost of doing business and award points accordingly. Q. Is the district willing to award portions of the RFP to more than one financial institution? A. Yes Q. How many cardholders are in your card program? A. 87 Q. What is the annual spend of your card program? Page 5 of 7
A. FY2014 $685,734 FY2013 $687,555 Q. Can you please provide me with a copy of your custody statements for the past 90 days? A. No Q. Do you currently have overdraft protection and if so, what is the dollar limit? A. No. Q. Section J. NO JOINT OFFERS ACCEPTED page 11: Because merchant processing is governed by PCI compliance and Payment Brand (Visa/MC) rules and regulations, a separate agreement would be necessary for the initiation of merchant processing services. If the merchant processing company is wholly-owned by the proposing financial institution, is this considered a joint offer? Or would an award to a financial institution who wholly-owns a merchant processing company be considered one firm even though two separate agreements would be required? A. It is the intention of the District to engage in only one agreement with each firm. Subcontracting of this service is the desired method to procure these services. Q. Section B. FORMAT OF PROPOLSAL, Tab L page 21: Is a card program currently being used by LACCD? A. Cal Card Q. Section B. FORMAT OF PROPOLSAL, Tab L page 21: What is the LACCD s overall AP spend? A. This information will not be provided at this time. Q. Section B. FORMAT OF PROPOLSAL, Tab L page 21: Can you provide a spend file? A. No Q. Please provide a copy of your investment policy A. The California Government Code requires California banks and savings and loan associations to collateralize the District s deposits by pledging government securities as collateral. All deposits with financial institutions must be collateralized in an amount equal to 110% of uninsured deposits. At no time during the year did the value of the collateralized property fall below 110% of uninsured deposits. As provided for by the State of California Education Code, amounts are also deposited by the District in the Los Angeles County Treasurer s Pool (the County Pool) for the purpose of increasing interest earnings through the County s investment activities. At June 30, 2013 and 2012, the District s cash and investments consist primarily of deposits and investments in the County Pool. The District reports amounts involuntarily invested in the County Pool as unrestricted cash and cash equivalents as they function as a demand deposit account for the District and can be withdrawn from the pool without notice or penalty. The District reports amounts involuntarily invested in the County Pool (such as unspent bond proceeds and local property tax collected to pay bond principal and interest) as Page 6 of 7
restricted investments given the potential limitations imposed on withdrawals as well as the weighted average life of the County s Pooled investments. Statutes authorize the County to invest pooled investments in obligations of the U.S. Treasury, federal agencies, municipalities, commercial paper rated A by Standard & Poor s Corporation or A3 by Moody s Commercial Paper Record, bankers acceptances, negotiable certificates of deposit, floating rate notes, repurchase agreements, and reverse repurchase agreements. The Los Angeles County Treasurer s pooled investments are managed by the County Treasurer. End of addendum 4 Page 7 of 7