15-0701_RT LAWRENCE CORPORATION_F7_Agenda ReportTO:
City of San Juan Capistrano
Agenda Report
Honorable Mayor and Members of the City Council
6/16/2015
F7
FROM: Cindy Russell, Chief Financial Officer/City Treasuret't ~
Prepared by: Michelle Daggett Short, Senior AccourYantCIJ.,U! (,{ \Mt)S
DATE: June 16, 2015
SUBJECT: Consideration of Approval of a Personal Services Agreement for Lockbox
Services (RT Lawrence Corporation)
RECOMMENDATION:
By motion, approve a five (5) year Personal Services Agreement for Lockbox Services
with RT lawrence Corporation.
EXECUTIVE SUMMARY:
Lockbox services are designed to expedite the collection of paper-based payments and
provide timely payment information to update accounts receivable records. These
services are provided by a third-party processor that receives, opens, and processes
payments for a government or business.
The City collects and processes approximately 7,200 customer payments monthly for its
Water Utility services. As a Government Finance Officers Association Best Practice,
the City utilizes lockbox services to improve cash flow by reducing processing time
between delivery of mail and depositing of payments, and increasing staff productivity
by freeing personnel from the labor-intensive process of manually handling mail, making
daily deposits, and posting manual payments.
In order to ensure that the City receives the most up-to-date and cost-effective services,
staff issued a request for proposal (RFP) in December 2014, for banking and related
services, which included a component for lockbox services. Proposers were asked to
respond to one or more components and price each service component separately.
Based on evaluation of the responses to this RFP, RT Lawrence Corporation is the
most successful bidder at an estimated cost of $14,500 annually. This cost is
approximately $2,950 lower than the second lowest bidder.
City Council Agenda Report
June 16, 2015
Page 2 of 3
DISCUSSION/ANALYSIS:
The Request for Proposal (RFP) was sent to more than twenty (20) vendors to award a
five (5) year contract for Lockbox services. The RFP requested a number of items
including the proposer's demonstrated ability to provide services to public agencies. Six
(6) proposals were received from responsible bidders. While services in the proposals
were comparable, pricing considerations narrowed the field to the top two (2) bidders.
The estimated annual fees for the selected bidders were summarized as follows:
ACCOUNT FEE
TRANSACTION FEES (a)
RT LAWRENCE
CORPORATION
$ 540.00
13,967.52
BANK UP
CORPORATION
$ 1,200.00
16,261.44
ESTIMATED ANNUAL FEE $ 14,507.52 $ 17,461.44 ~--~~~~--~------~~---
(a) Annual transaction fees were estimated using the highest monthly transaction
volume during the 2014-15 fiscal year.
Proposed fees are fixed for the five year contract term. Based on the evaluation of each
proposal, the proposal with the lowest estimated annual cost was RT Lawrence
Corporation (Attachment 1 ).
RT Lawrence Corporation is the City's current service provider. They have been in the
technology business providing leading edge automated solutions for over 20 years.
They have in excess of 160 clients across the United States and Canada, approximately
1 00 of which are utilities and public sector or city and county government agencies. For
lockbox services, they are fully equipped with high-speed transports, mail extraction
machines, mail pickup services, and payment processing staff with a solid strategy for
expansion and growth as payment processing volumes increase.
FISCAL IMPACT:
As a result of RT Lawrence's competitive pricing, the proposal will result in an estimated
annual savings of approximately $2,180.
ENVIRONMENTAL IMPACT:
Not applicable.
PRIOR CITY COUNCIL REVIEW:
Not applicable.
City Council Agenda Report
June 16, 2015
Page 3 of 3
COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS:
Not applicable.
NOTIFICATION:
Sheila Andres, Director of Sales and Account Executive -RT Lawrence Corporation
Michael V. Santimauro, Chief Executive Officer-Bank Up Corporation
Eileen Perez, Vice President and Relationship Manager-MUFG Union Bank, N.A.
Veronica Villasenor, Vice President-Relationship Manager-U. S. Bancorp
Renee Gordon, Senior Relationship Manager-Wells Fargo Bank, N.A.
Robert Donohue, Assistant Vice President, Government Banking -JP Morgan Chase
ATTACHMENT :
Attachment 1 -Personal Services Agreement (RT Lawrence Corporation)
PERSONAL SERVICES AGREEMENT
THIS AGREEMENT is made, entered into, and shall become effective this first
day of July 2015, by and between the City of San Juan Capistrano (hereinafter referred
to as the "City") and RT Lawrence Corporation (hereinafter referred to as the
"Consultant").
RECITALS :
WHEREAS, City desires to retain the services of the Consultant for the purposes
of Lockbox Services; and,
WHEREAS, Consultant is qualified by virtue of experience, training, education
and expertise to accomplish such services.
NOW, THEREFORE, City and Consultant mutually agree as follows :
Section 1. Scope of Work.
The scope of work to be performed by the Consultant shall consist of those tasks
as set forth in Exhibit "A," attached and incorporated herein by reference. To the extent
that there are any conflicts between the provisions described in Exhibit "A" and those
provisions contained within this Agreement, the provisions in this Agreement shall
control.
Section 2. Term.
This Agreement shall commence on the effective date and shall terminate, and
all services required hereunder shall be completed, no later than June 30, 2020.
Section 3. Compensation.
3.1 Amount.
Total compensation for the services hereunder shall not exceed the total
amount in the City 's adopted fiscal year operating budget for lockbox services at the
rates as set forth in Exhibit "C," which supersedes rates in Section G of the original
proposal in Exhibit "B," pages 28 through 38, attached and incorporated herein by
reference.
3.2 Method of Payment.
Subject to Section 3.1, Consultant shall submit monthly invoices based on
total services which have been satisfactorily completed for such monthly period. The
City will pay monthly progress payments based on approved invoices in accordance
with this Section.
1
ATTACHMENT 1 -Page 1 of 7
3.3 Records of Expenses .
Consultant shall keep complete and accurate records of all costs and
expenses incidental to services covered by this Agreement. These records will be
made available at reasonable times to the City. Invoices shall be addressed as
provided for in Section 16 below.
Section 4. Independent Contractor.
It is agreed that Consultant shall act and be an independent contractor and not
an agent or employee of the City, and shall obtain no rights to any benefits which
accrue to Agency's employees.
Section 5. Limitations Upon Subcontracting and Assignment.
The experience, knowledge, capability and reputation of Consultant, its principals
and employees were a substantial inducement for the City to enter into this Agreement.
Consultant shall not contract with any other entity to perform the services required
without written approval of the City. This Agreement may not be assigned, voluntarily or
by operation of law, without the prior written approval of the City. If Consultant is
permitted to subcontract any part of this Agreement by City, Consultant shall be
responsible to the City for the acts and omissions of its subcontractor as it is for persons
directly employed. Nothing contained in this Agreement shall create any contractual
relationships between any subcontractor and City. All persons engaged in the work will
be considered employees of Consultant. City will deal directly with and will make all
payments to Consultant.
Section 6. Changes to Scope of Work.
For extra work not part of this Agreement, a written authorization from City is
required prior to Consultant undertaking any extra work. In the event of a change in the
Scope of Work provided for in the contract documents as requested by the City, the
Parties hereto shall execute an addendum to this Agreement setting forth with
particularity all terms of the new agreement, including but not limited to any additional
Consultant's fees.
Section 7. Familiarity with Work and/or Construction Site .
By executing this Agreement, Consultant warrants that: (1) it has investigated
the work to be performed; (2) if applicable, it has investigated the work site(s), and is
aware of all conditions there; and (3) it understands the facilities, difficulties and
restrictions of the work to be performed under this Agreement. Should Consultant
discover any latent or unknown conditions materially differing from those inherent in the
work or as represented by City, it shall immediately inform the City of this and shall not
proceed with further work under this Agreement until written instructions are received
from the City.
2 ATTACHMENT 1 -Page 2 of 7
Section 8. Time of Essence.
Time is of the essence in the performance of this Agreement.
Section 9. Compliance with Law.
Consultant shall comply with all applicable laws, ordinances, codes and
regulations of federal, state and local government.
Section 10. Conflicts of Interest,
Consultant covenants that it presently has no interest and shall not acquire any
interest, direct or indirect, which would conflict in any manner or degree with the
performance of the seNices contemplated by this Agreement. No person having such
interest shall be employed by or associated with Consultant.
Section 11. Copies of Work Product.
At the completion of the work, Consultant shall have delivered to City at least one
(1) copy of any final reports and/or notes or drawings containing Consultant's findings,
conclusions, and recommendations with any supporting documentation. All reports
submitted to the City shall be in reproducible format, or in the format otherwise
approved by the City in writing.
Section 12. Ownership of Documents.
All reports, information, data and exhibits prepared or assembled by Consultant
in connection with the performance of its seNices pursuant to this Agreement are
confidential to the extent permitted by law, and Consultant agrees that they shall not be
made available to any individual or organization without prior written consent of the City.
All such reports, information, data, and exhibits shall be the property of the City and
shall be delivered to the City upon demand without additional costs or expense to the
City. The City acknowledges such documents are instruments of Consultant's
professional seNices.
Section 13. Indemnity.
To the fullest extent permitted by law, Consultant agrees to protect, defend, and
hold harmless the City and its elective and appointive boards, officers, agents, and
employees from any and all claims, liabilities, expenses, or damages of any nature,
including attorneys' fees, for injury or death of any person, or damages of any nature,
including interference with use of property, arising out of, or in any way connected with
the negligence, recklessness and/or intentional wrongful conduct of Consultant,
Consultant's agents, officers, employees, subcontractors, or independent contractors
hired by Consultant in the pertormance of the Agreement. The only exception to
Consultant's responsibility to protect, defend, and hold harmless the City, is due to the
3 ATTACHMENT 1 -Page 3 of 7
negligence, recklessness and/or wrongful conduct of the City, or any of its elective or
appointive boards, officers , agents, or employees .
This hold harmless agreement shall apply to all liability regardless of whether any
insurance policies are applicable. The policy limits do not act as a limitation upon the
amount of indemnification to be provided by Consultant.
Section 14. Insurance.
On or before beginning any of the services or work called for by any term of this
Agreement, Consultant, at its own cost and expense, shall carry, maintain for the
duration of the agreement, and provide proof thereof that is acceptable to the City, the
insurance specified below with insurers and under forms of insurance satisfactory in all
respects to the City. Consultant shall not allow any subcontractor to commence work
on any subcontract until all insurance required of the Consultant has also been obtained
for the subcontractor. Insurance required herein shall be provided by Insurers in good
standing with the State of California and having a minimum Best's Guide Rating of A-
Class VII or better.
14.1 Comprehensive General Liability.
Throughout the term of this Agreement, Consultant shall maintain in full
force and effect Comprehensive General Liability coverage in an amount not less than
two million dollars per occurrence ($2 ,000,000.00), combined single limit coverage for
risks associated with the work contemplated by this agreement. If a Commercial
General Liability Insurance form or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to the work to be performed
under this agreement or the general aggregate limit shall be at least twice the required
occurrence limit.
14.2 Comprehensive Automobile Liability.
Throughout the term of this Agreement, Consultant shall maintain in full
force and effect Comprehensive Automobile Liability coverage, including owned, hired
and non-owned vehicles in an amount not less than two million dollars per occurrence
($2,000,000.00).
14.3 Workers' Compensation .
If Consultant intends to employ employees to perform services under this
Agreement, Consultant shall obtain and maintain , during the term of this Agreement,
Workers' Compensation Employer's Liability Insurance in the statutory amount as
required by state law.
4 ATTACHMENT 1 -Page 4 of 7
14.4 Proof of Insurance Requirements/Endorsement.
Prior to beginning any work under this Agreement, Consultant shall submit
the insurance certificates, including the deductible or self-retention amount, and an
additional insured endorsement naming City, its officers, employees, agents, and
volunteers as additional insured as respects each of the following: Liability arising out of
activities performed by or on behalf of Consultant, including the insured's general
supervision of Consultant; products and completed operations of Consultant; premises
owned, occupied or used by Consultant; or automobiles owned, leased, hired, or
borrowed by Consultant. The coverage shall contain no special limitations on the scope
of protection afforded City, its officers, employees, agents, or volunteers.
14.5 Notice of Cancellation/Termination of Insurance.
The above policy/policies shall not terminate, nor shall they be cancelled,
nor the coverages reduced, until after thirty (30) days' written notice is given to City,
except that ten (10) days' notice shall be given if there is a cancellation due to failure to
pay a premium.
14.6 Terms of Compensation.
Consultant shall not receive any compensation until all insurance
provisions have been satisfied.
14.7 Notice to Proceed.
Consultant shall not proceed with any work under this Agreement until the
City has issued a written "Notice to Proceed" verifying that Consultant has complied
with all insurance requirements of this Agreement.
Section 15. Termination.
City shall have the right to terminate this Agreement without cause by giving
thirty (30) days' advance written notice of termination to Consultant.
In addition, this Agreement may be terminated by any party for cause by
providing ten (1 0) days' notice to the other party of a material breach of contract. If the
other party does not cure the breach of contract , then the agreement may be terminated
subsequent to the ten (1 0) day cure period.
Section 16. Notice.
All notices shall be personally delivered or mailed to the below listed addresses,
or to such other addresses as may be designated by written notice. These addresses
shall be used for delivery of service of process:
5 ATTACHMENT 1 -Page 5 of 7
To City: City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: Michelle Bannigan, Assistant Finance Director
To Consultant RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
Attn: Sheila Andres, Director of Sales and Account Executive
Section 17. Attorneys' Fees .
If any action at law or in equity is necessary to enforce or interpret the terms of
this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs
and necessary disbursements in addition to any other relief to which he may be entitled.
Section 18. Dispute Resolution.
In the event of a dispute arising between the parties regarding performance or
interpretation of this Agreement, the dispute shall be resolved by binding arbitration
under the auspices of the Judicial Arbitration and Mediation Service ("JAMS").
Section 19. Entire Agreement.
This Agreement constitutes the entire understanding and agreement between the
parties and supersedes all previous negotiations between them pertaining to the subject
matter thereof.
Section 20. Counterparts and Facsimile signatures.
This Agreement may be executed by the Parties in counterparts, which
counterparts shall be construed together and have the same effect as if all the Parties
had executed the same instrument. Counterpart signatures may be transmitted by
facsimile, email, or other electronic means and have the same force and effect as if they
were original signatures .
(SIGNATURE PAGE FOLLOWS)
6 ATTACHMENT 1 -Page 6 of 7
IN WITNESS WHEREOF, the parties hereto have executed this Agreement.
CITY OF SAN JUAN CAPISTRANO
By: ______________________ __
Derek Reeve, Mayor
CONSULTANT
By: _____ ...K_· J.__u.:_~----=-"""'-""6=9=·(,..;VI,=_,_· ______ _
ATTEST: RAVI SAMTANI
Maria Morris, City Clerk
APPROVED AS TO FORM:
Q~J~~y
7
ATTACHMENT 1 -Page 7 of 7
REQUEST FOR PROPOSAL
FOR
BANKING
AND
RELATED SERVICES
Financial Services Department
CITY OF SAN JUAN CAPISTRANO
Released on December 23,2014
Exhibit A Page 1 of 61
Dear Proposer:
BANKING AND OTHER RELATED SERVICES
REQUEST FOR PROPOSAL (RFP)
The City of San Juan Capistrano (hereinafter referred to as the "City") is requesting
proposals from qualified public and/or private firm( s ), for professional and technical
services to provide the following services:
• Banking Services
• Custodial Services
• Lockbox Services
• Merchant Services
The proposer may respond to one or more service components under this RFP.
Each service component must be priced separately. All proposers must adhere to
the proposal format as described in section 7. The Excel format for each pricing bid
form is available on the City's Finance Department webpage at
www.sanjuancapistrano.org. The term will be for three (3) years with two (2) one-year
options to renew .
1. BACKGROUND
The City of San Juan Capistrano is a general law city, which operates under the
council/manager form of government with a General Fund expenditure budget of
over $22 million and an overall expenditure budget of over $63 million for fiscal year
2013-2014.
The City of San Juan Capistrano, incorporated in 1961, has a population of
approximately 35, 900 and has a land area of 14.4 square miles. It is located in the
southeastern portion of Orange County, California, approximately 62 miles south of
the city of Los Angeles and 65 miles north of the City of San Diego.
The City provides a wide range of municipal services that include: public works,
planning and zoning, water and sewer services, parks and recreation, finance, City
Clerk and City Manager's office. Police services are provided by contract with the
Orange County Sheriff's Department. Fire services are provided through the taxing
authority of the County Structural Fire Fund and the Orange County Fire Authority.
The City provides the collection of wastewater, whereas Southeast Regional
Reclamation Authority, of which the City is a contributing member, provides the
treatment and disposal.
2. SCHEDULE OF EVENTS
This request for proposal will be governed by the following schedule:
Release of RFP
Deadline for Written Questions
Responses to Questions Posted on Web
December 23, 2014
January 16 2015
January 23, 2015
2
Exhibit A Page 2 of 61
Proposals are Due February 2, 2015
Interview (if held) TBD in February
Approval of Contract March 20, 2015
All dates are subject to change at the discretion of the City.
3. SERVICE #1 -BANKING SERVICES
a. Minimum Qualification
To be considered for selection, proposer must have at least the following
qualifications:
• Be a Federal or State of California chartered financial institution.
• Be a member of the Federal Reserve System and have access to all
services.
• Be a qualified State depository for public funds.
• Be a full service financial institution in good standing among other
comparable banks and have a location within five (5) miles of the City Hall
located at 32400 Paseo Adelanto, San Juan Capistrano, CA 92675.
• Be capable of providing the services sought by the City, which include a
wide range of electronic payment and deposit services.
• Be adequately capitalized to accommodate the City's cash and investment
management needs. This includes, but not limited to, a minimum $1 million
daylight overdraft facility, subject to credit review by the financial institution.
b. Scope of Work
The City is seeking a financial institution that has demonstrated its ability in the
following areas:
• Service Public Agencies
• Deposit Compensation
• Demand Deposit Accounts
• ACH, Wire and Other Transfers
• Deposit Transmittal Process
• Direct Deposit Relationship-State of California
• Direct Deposit of Payroll and Payroll Taxes
• Balance & Detail Reporting
• Bill Concentration Service
• Daylight Overdraft Protection
• Implementation Plan
• Business Continuity Plan
• Information Technology
3
Exhibit A Page 3 of 61
c. Proposal to include the following tabs:
• Tab A-Table of Contents
• Tab B -Bank Services to Public Sector. Please respond to the following
sections :
~ Institution Overview-General overview of the financial institution,
governmental client services philosophy, corporate organization,
including identification of the government services unit, location of
corporation, processing center, branch localities, hours of
operation and banking holidays. Also please provide any relevant
information regarding a correspondent bank relationship.
~ Experience -Describe the institution's direct experience in
servicing public sector clients. Please include: the number of
public agency clients, the dollar amount of public funds on
deposit, and the institution's knowledge of and adherence to the
California Government Code including collateralization
requirements, and other applicable federal and state laws. Will
the institution be able to comply with transaction confirmation and
respond to other requests for data as needed (i.e. from the City's
auditors)? What role does technology play in the delivery of
services?
~ Relationship Management -Identify the size and scope of your
California-based public banking unit, bank officers responsible for
the City's accounts, what each person's role and responsibilities
will be, and the relevant credentials and experience of each
person on the relationship management team.
~ Compliance and Exception -Include a statement to confirm the
bank's compliance to the specific minimum qualifications in item
a, listing any exceptions to required services.
• Tab C -References. Please provide three references that are of
similar size and scope of service utilization as the City. Include the
following information for each reference:
~ Contact name and title
~ Name of the public agency
~ Telephone number and e-mail address
~ Number of years as customer and services provided
• Tab D -Collateralization of Deposits: The bank is required to
collateralize public funds deposits under the California Government
Code, Sections 53651 and 53652. Copies of the reports filed with the
State of California shall be made available to the City upon request.
Please detail the bank's procedures for collateralizing public funds
deposits.
4
Exhibit A Page 4 of 61
~ What types of securities are used as collateral? Can the City
select the type of collateral used?
~ Which bank department is responsible for tracking deposits and
monitoring collateral?
~ What is the bank's current level ($ amount) of California public
funds deposits and the related collateral?
~ What is the frequency of reporting to the State Treasurer's Office?
• Tab E -Deposit Compensation: The City compensates for bank
services primarily with compensating balances and is charged for any
deficiencies based on monthly account analysis. Please indicate the
following in this section :
~ List the financial institution's Earnings Credit Rate (ECR), and how
it is calculated and applied.
~ List the financial institution's ECR for the past twelve ( 12) months .
~ Please explain, in detail, how and when the FDIC assessment is
computed and charged.
~ Does the City have the option of compensating on fees or
balances basis or, a combination of both? Please describe any
difference in related costs to the City with either option .
~ What is the financial institution's settlement period for account
analysis and billing purpose -monthly, quarterly, semiannually or
annually? How long can any excess balances be carried forward
to apply to charges in future billing periods?
~ Please explain exactly what type of items and services can be
applied against the City's account analysis in addition to standard
bank services.
~ What procedure is used to make any adjustments to Account
Analysis statements and how long does it take for adjustments to
take effect?
~ Please state the negative collected balance charge that the City
will pay and, in detail, explain how this charge is computed. Is
the rate quoted in this proposal good for the term of the contract?
Please provide escalation clauses.
5
Exhibit A Page 5 of 61
• Tab F -Demand Deposit Accounts. The City, the Successor Agency
to the City's Redevelopment Agency and the Housing Authority currently
use four (4) demand deposit accounts (DDA) or checking accounts.
None of the accounts are Zero Balance Accounts. Please describe in
detail the institution's ability to provide services to this type of accounts.
Entity Name Account Type Average Collected
Balance
City of San Juan Checking Account $ 3,497,080
Capistrano
City of San Juan Investment Sweep $ 115,675
Capistrano Account
San Juan Capistrano Checking Account $ 148,400
Housing Authority
Successor Agency to the Checking Account $ 135,000
San Juan Capistrano
Community Redevelopment
Agency
• Tab G -Automated Clearing House (ACH) Services.
ACH Direct Deposit of Payroll: The City utilizes direct deposit services
for its bi-weekly payroll. Each payroll run has approximately 100
employees using the direct deposit service. Please address the following:
);> Describe the bank's procedure in detail for receiving electronic
payroll data and any back-up plans for data transmissions .
);> Discuss screening measures that the bank uses to minimize errors
on files sent to the bank (i.e . pre-notes, ABA screening, etc.).
Describe the processes and timing available for file/error correction.
);> Indicate the transmission deadlines for direct deposit ACH files,
including date and time when the bank needs the file from the City
and when funds are debited from the City's account.
ACH Auto Debit: The financial institution must have the capability to
accommodate an online bill collection service. The City currently collects
utility bills via ACH debit each month .
• Tab H -Wire and Other Transfers. Please describe the financial
institution's on-line transfer service capability and what specifically is
recommended for the City's use and consideration.
);> What is the process for initiating wire transfers? Please include
the deadlines.
6
Exhibit A Page 6 of 61
);> Describe the financial institution's incoming and outgoing
electronic money transfer services. Include safeguards and
security measures offered by your services .
);> Please provide a description or sample of the institution's funds
transfer agreement. How are the authorization levels established
for transfers?
• Tab I -Deposit Transmittal Process. The City currently makes
physical deposits at the local branch .
);> Please identify your branch locations within five (5) miles of City
Hall.
);> Please describe the institution's required deposit preparation for
check , currency and coin.
);> What are the cut-off times for deposits at the financial institution's
local branch to ensure same day credit? Is there additional
charge for after banking hours processing fee?
);> How would the City order cash vault supplies? How is payment
made for such supplies?
);> Please describe in detail the financial institution's procedures for
handling deposit adjustments. What documentation on
discrepancies does the bank provide?
);> Please describe the financial institution 's returned item handling
and notification procedures. Is an automatic re-clear option
available? How long does it take for returned items to be sent to
the City?
• Tab J -Payroll Tax Processing: Please describe the services
available from the financial institution to accommodate the City's
payment and reporting of payroll taxes.
• Tab K -State Activity/LAIF Transfers: The City transacts State of
California Local Agency Investment Fund (LAIF) transfers on a regular
basis and receives State electronic payments.
);> Please describe the LAIF transfer process. Are the transfers done
by telephone, email, fax, wire transfer, etc .? How is the accuracy of
transfers assured?
);> What is the charge per transfer to LAIF? From LAIF?
);> Does the bank have an office in Orange County that maintains a
direct DDA banking relationship with the State Treasurer's office
and the State Controller's office?
);> Is the bank an approved State of California depository?
);> What is the charge for the deposit of State electronic payments?
State warrants?
7
Exhibit A Page 7 of 61
• Tab L -Bill Concentration Service: The City implemented this service
in Fall2014.
~ Does the bank have the capability to provide a bill concentration
service? If so, please describe the service and any costs
associated.
• Tab M -Balance and Detail Reporting: The City currently utilizes a
web-based on-line system to perform a variety of processes, such as
placing stop payments, obtaining cancelled check image and accessing
on-line balance reporting information (current day and prior day) for all
accounts using a PC and the internet.
~ Please describe the financial institution's on-line banking and
information reporting system(s) including a list of all services
provided and its respective costs.
~ What are the current computer hardware and software
specifications for the financial institution's on-line system?
~ At what time (Pacific Standard Time) is prior day information
available? Can the City obtain current day information?
~ Please include in this section: sample copies of prior day and
current day (if available) reports that would be the best example of
the system's capabilities.
~ Can the reports be customized for the end-user or exported to
Excel?
~ What types of security measures are in place? How is the
assignment of user I. D.'s and passwords managed?
~ What is the bank's contingency plan for providing this information if
the event of unexpected bank system problems or natural
disasters?
~ Does the bank offer electronic delivery of statements, reports and
notices?
• Tab N -Daylight Overdraft Protection: The City requires daylight
overdraft protection for the occasional situations whereby timing
differences occur between incoming wires or LAIF transfers and outgoing
wires.
~ Describe any issues, concerns and charges associated with the use
of a daylight overdraft facility.
~ Will the bank guarantee payment of all items even if it results in the
account being overdrawn temporarily for the day?
• Tab 0-Conversion Plan: As part of any conversion, the City requires
an efficient transition to the new service provider or to enhanced services
with its existing service provider.
~ Please describe the overall plan the financial institution would
coordinate to ensure a smooth conversion .
8
Exhibit A Page 8 of 61
~ Please describe the on-site training to the City's staff for the
operation and use of the services selected? How is the training
typically structured?
~ Please provide a detailed time line schedule and applicable charges
for the conversion plan.
~ What size of conversion allowance will the financial institution
provide to the City? Please state a specific dollar amount or identify
those supplies, products or services included.
• Tab P-Business Continuity Plan. The City requires assurance of ability
to provide financial services in the event of a major emergency and during
the disaster recovery period .
~ Please describe in detail, the financial institution's compliance with
the State and Federal regulations pertaining to this area.
~ Please describe testing of core service applications and system
that assure information backup, anti-intrusion and other privacy
requirements.
~ Please describe operational diversification and geographic
dispersal of service centers.
• Tab Q -Banking Services Bid Form. Please complete per form shown
in Exhibit A. In addition to submitting with proposal responses, this form
must also be submitted in Excel format with the proposal package.
Fees related to all services described in the proposal must be listed on
this form -even if the service is not shown on the form. Also, please
include any one-time set-up charges, equipment costs, research fees
and all other fees that will be charged . Include any incentives or price
breaks based on volume, timeliness, or rebates. Please state the period
of validity for these fees .
• Tab R-Sample Reports to Submit.
~ Sample Account Analysis and User's Guide
~ Sample Account Statements
~ Sample Prior Day and Current Day Reports
• Tab S -Relevant Contract, Agreements and Statements to Submit.
~ Sample Funds Transfer Agreement
~ Sample Contract for Deposit of Monies
• Tab T -Financial Statements and Ratings. Please provide the most
recent audited financial statements or annual report for the financial
institution (a reference to electronic availability will suffice). Also include
the institution's most current Standard & Poor's, Moody's and or Fitch
credit ratings, where available .
9
Exhibit A Page 9 of 61
• Tab U -Sample City Agreement, Mandatory Insurance and Business
License Requirements. See Attachment 1 for a sample of the City's
standard personal services agreement.
• Tab V-Service Enhancement and Industry Best Practices.
~ What best practices have you identified in this industry space?
~ Describe any services and technological enhancements not
previously mentioned that should be considered for further
improving the effectiveness of the City 's treasury management
operations, including procedures for Positive Pay processing and
remote check deposits .
4. SERVICE #2 -CUSTODIAL SERVICES
a. Scope of Work
The City currently has two safekeeping accounts (one for the City and another for
the Successor Agency). The City contracts with an investment advisor firm,
PFMAM Asset Management, to manage approximately $30 million of the City's
$44 million investment portfolio. The City manages $14 million of the City's
investment portfolio and the entire portfolios for the Successor Agency and the
Housing Authority. The City's intention is not to hold uninvested cash in the
custodian accounts. Funding for investment purchases will be wired from the
City's investment sweep account, the Housing Authority's check ing account, or the
Successor Agency's checking account. The October 2014 investment reports for
each entity, the most recent data available, is included as Attachment 2 to the
RFP .
The City is seeking proposal from qualified institutions that have demonstrated its
ability in the following areas:
• Service Public Agencies
• System and Data-Processing
• Accounting and Reporting
• Asset Safekeeping
• Implementation Plan
b. Proposal to include the following tabs:
• Tab A -Table of Contents
• Tab B -Organization Information. Please indicate the following
information in this section:
~ Provide a description of total custody assets and clients by type
and asset size (i.e. corporate client and public fund client, etc.).
10
Exhibit A Page 10 of 61
~ Include an organizational chart of the Trust/Custody Department
showing the position of the Department within the firm 's structure.
~ Describe any organizational changes (mergers or acquisitions,
etc.) in the past three years that had an impact on your
trust/custody operations.
~ Describe your Trust/Custody Department's long-term strategy for
business and personnel development.
~ Discuss the financial stability of your firm. Please provide the most
recent audited financial statements or annual report for the firm (a
reference to electronic availability will suffice). Also include the
firm's most current Standard & Poor's, Moody's and or Fitch credit
ratings, where available.
~ Define your firm's fiduciary responsibility and describe how your
firm maintains its independence.
~ Describe your firm's commitment to service quality and customer
services. Does your firm have a quality management program?
How do you measure customer satisfaction?
~ Describe briefly what you feel sets your firm apart from other
trust/custody service providers.
• Tab C -General and Administration Information. Please indicate the
following information in this section:
~ How many accounts are assigned to each primary client contact
officer on average?
~ Identify the client service officer and account administration team
that would support the City. Please include biographies and years
of experience for client support person(s). Also list the location
and hour of service for client support person(s).
~ What was your firm's custodial client turnover (gains and losses)
in the past three years?
~ Describe any litigation, legal proceeding or investigation in the last
three (3) years by a regulatory agency that involved your
Trust/Custody Department or its officers.
~ Describe your disaster recovery plan including backup capabilities
and procedures.
~ List all insurance coverage relevant to custody functions. Indicate
the type and the amount.
• Tab D -References. Provide contact information (name, address,
telephone number and e-mail address) of three (3) references for
trust/custody services of similar size.
• Tab E -Investment Reconciliation Process. Please describe the
following in this section:
~ What information delivery system do you offer to investment
managers? Do managers have on-line access to portfolio data?
11
Exhibit A Page 11 of 61
~ How do investment managers communicate trade instructions to
your firm for settlement? Please include instruction deadlines.
~ Does your firm have a separate investment manager liaison group
that handles the reconciliation process? If so, please describe the
structure of the group and how it communicates with the
accounting group. If not, describe how investment manager
relationships are handled.
~ Describe the role your firm plays in the investment manager
reconciliation process. What specific procedures are performed
on the reconciliation prepared by managers? Do you formally
reconcile your records with those of the investment managers?
Describe the process and frequency of reconciliation. Do you
reconcile and research pricing and market value differences with
the investment managers?
~ Does your firm monitor tolerance levels for pricing discrepancies
with investment managers? How are pricing challenges resolved?
~ Please comment on follow-up procedures for discrepancies
identified during the reconciliation process.
~ How are reconciling items communicated to the client?
~ Do you have specific client services accounting staff with the
responsibility of reconciling exception items between you and the
investment managers?
• Tab F-Accounting and Reporting. Please describe the following in
this section:
~ Provide a description of your accounting system .
~ Describe your procedures for ensuring that all interest and
dividends for the City's portfolio are paid.
~ Provide a schedule of all accounting reports available in your
custody system and include samples. How often are such reports
produced?
~ How soon after accounting periods are fully audited reports
available? Can you provide daily pricing and related portfolio
holding report?
~ What steps are taken to ensure the accuracy of client reports?
Who is responsible for ensuring accuracy? What controls are built
into the process? What is the turnaround time for correcting
errors?
~ Do you have the ability to provide all accounting report on-line
through your custodian portal?
~ Describe your data retention policy.
~ Is there any special hardware and software required to use your
online service? If yes, please specify. If your system is a web-
based, what web-browser version does your system can operate
with?
12
Exhibit A Page 12 of 61
};;> Please describe your on-line capabilities for accounting and
reporting information. What type of reports can be generated?
Can the client download the data to create custom reports? What
is your practice in creating custom reports for clients and related
cost?
~ How current is the on-line information? Is it real-time (access trade
information as it changes throughout the day) or batch processed
(data is updated each night)? How long is information available on
the system? Is this daily or monthly information?
~ What provisions are made for training clients in the use of the
systems?
• Tab G -Asset Safekeeping. Please describe the following in this
section:
~ Describe your depository memberships (i.e., DTC, FRB) and the
services you use at these depositories. Describe your system for
registration and custody of assets.
};;> Discuss the level of automation of your security transaction
processing system.
};;> How and where are physical settlements transacted?
};;> What procedures are in place to ensure the accuracy in your
custody and clearing area?
~ How and when are corporate actions processed?
~ What source do you use to price securities? What is the
frequency of your pricing updates?
};;> What procedures do you have to identify and investigate any
significant or unusual price changes?
• Tab H-Audit Controls. Please provide the following in this section:
~ A copy of your most recent SSAE 16 report (formerly SAS 70). A
reference to electronic availability will suffice
~ Copies of any internal control opinions issued by your
independent auditors specifically related to your custody services
within the last three (3) years.
};;> What is responsible for monitoring and implementing the auditors '
recommendations made to management?
• Tab I -Implementation Plan. Please describe the following in this
section:
~ Discuss your approach to the implementation process. Include an
estimated implementation calendar, actions required on the part of
the City and Custodian and the timeframe to complete the tasks.
~ What dedicated resources (personnel and technical), procedures
and controls will you provide or recommend in the implementation
period to ensure a successful and timely implementation?
13
Exhibit A Page 13 of 61
• Tab J -Fees.
>-Please provide a fee schedule for custodial services . Specify
what services are included in the fee schedule . If you offer
unbundled custodial services, please list the specific unbundled
pricing for the services .
>-Will you guarantee your fees for a fixed number of years?
• Tab K-Service Enhancement and Industry Best Practices.
>-Describe any services and technological enhancements not
previously mentioned that should be considered for further
improving the effectiveness of the City's treasury management
operations .
>-What best practices have you identified in this industry space?
5. SERVICE #3-LOCKBOX SERVICE
a. Scope of Work
The City utilizes lockbox services to collect and process customer payments for its
Water Utility services. The City receives approximately 7,200 payments per
month through lockbox.
b. Proposal to include the following tabs:
• Tab A -Table of Contents
• Tab B -Organization and General Information. Please provide the
following information in this section:
>-General overview of the firm's and lockbox services unit, including
location of office, processing center and hour of operation.
>-Provide the names of individuals who will be working on the
proposed services and their areas of responsibility. Include their
specific experience relatives to the request for proposal
requirements and their contact numbers and e-mail addresses.
>-Describe your firm's approach to keep your product line
competitive and develop new services.
• Tab C -References. Please provide three (3) references (preferably
from current local government customers for lockbox services). Include
name, address, telephone number and e-mail address.
• Tab D -Lockbox Receipt Processing. Please describe the following in
this section :
>-Location of post office box
>-Time and frequency of pickups from the post office box
>-Turn-around processing time
>-Deposit frequency, deadlines and reconciliation
14
Exhibit A Page 14 of 61
~ Ability to provide images of remittance documents and checks via
web and/or CD Rom.
~ Acceptance criteria for payments
~ Method and time of delivery for returning original documents to the
City
~ Treatment of exception (non-standard) items and ability to process
exception items separately
~ Ability to handle payments containing multiple remittance advices
~ Technical specifications of transmission of data to the City
~ Error tolerance of lockbox personnel and subcontractors
~ Bonding requirements of lockbox personnel and subcontractors
~ Procedures to handle inquiry, research and adjustments and turn-
around time if established
• Tab E -Security Measure and Disaster Recovery Plan. Please
describe your firm's security features to minimize the risk of unauthorized
transactions and formal disaster recovery plan.
• Tab F -Implementation Plan. Please describe the following in this
section:
~ Discuss your approach to the implementation process. Include an
estimated implementation calendar, actions required on the part of
the City and your firm and the timeframe to complete the tasks.
~ What dedicated resources (personnel and technical), procedures
and controls will you provide or recommend in the implementation
period to ensure a successful and timely implementation?
• Tab G -Lockbox Services Bid Form. Please complete per form shown
in Exhibit B. In addition to submitting with proposal responses, this form
must also be submitted in Excel format with the proposal package.
Fees related to all services described in the proposal must be listed on
this form -even if the service is not shown on the form. Also, please
include any one-time set-up charges, equipment costs, research fees
and all other fees that will be charged. Include any incentives or price
breaks based on volume, timeliness, or rebates. Please state the period
of validity for these fees.
• Tab H -Service Enhancement and Industry Best Practices.
~ Describe any services and technological enhancements not
previously mentioned that should be considered for further
improving the effectiveness of the City's lockbox services.
~ What best practices have you identified in this industry space?
15
Exhibit A Page 15 of 61
6. SERVICE #4-MERCHANT SERVICES
a. Scope of Work
The City currently accepts Visa, MasterCard, American Express and Discover
credit card payments approximating $245,000 or 2,400 transactions each month.
The City currently has two merchant locations accepting payments for City
services such as utility payments, business license fees, permits, plan checks,
recreation classes and parking fees, etc. The City also has hand-held devices to
process credit card payments. Payments are accepted over-the-counter, by mail,
by telephone, online and occasionally in the field (using hand-held devices). The
City prefers a single point of contact for technical issues, configuration changes,
upgrades, maintenance and troubleshooting for any merchant bankcard issues .
b. Proposal to include the following tabs:
• Tab A-Table of Contents
• Tab 8 -Organization and General Information. Please provide the
following in this section:
~ Describe your firm's Merchant Bankcard and Point-of-Sale
processing capabilities.
~ Include an organization chart of the Merchant Bankcard Service
Department showing the position of the Department within the
firm's structure.
~ Describe your customer service standards for Merchant Bankcard
processing and review. Do you have a quality management
program? How do you measure customer satisfaction?
• Tab C -Bankcard Transaction Processing
~ What is the settlement cutoff time for card transactions?
~ When and how will the City receive funds for each day's
transactions? Is settlement by ACH or Fed wire? Are settlement
amounts listed separately on the bank statement or will they
appear as one lump sum? Will your firm break out amounts by
merchant locations/payment types?
~ Describe your online reporting capabilities. What types of report
are available to view merchant card transactions? Can the user
create custom reports? Please provide sample reports.
~ How are adjustments and charge backs handled? How is the City
notified of charge backs? Are charge backs and other debit
adjustments netted with daily proceeds or debited separately? Is
the discount fee refunded when a charge back or refund
occurred?
• Tab D -Fees. Please complete per form shown in Exhibit C. In addition
to submitting with proposal responses, this form must also be submitted in
Excel format with the proposal package. Please provide the ("Interchange
Pass-Through") discount rate and all other applicable charges 1f&r
Exhibit A Page 16 of 61
credit/debit card processing services as described above. Include the
following:
~ Visa and MasterCard authorization fees
~ Monthly service fee
~ Monthly statement fee
~ Any other fees the City would be charged.
• Tab E -Service Enhancement and Industry Best Practices.
~ Describe any services and technological enhancements not
previously mentioned that should be considered for further
improving the effectiveness of the City's operations.
~ What best practices have you identified in this industry space?
7. PROPOSAL FORMAT GUIDELINES
Interested entities or contractors are to provide the City of San Juan Capistrano with
a thorough proposal using the following guidelines:
a. FORMAT
Proposal shall be typed and should contain no more than fifty (50) typed pages
using a 12-point font size, including a cover letter and resumes of key people, but
excluding Index/Table of Contents, tables, charts, and graphic exhibits. Each
proposal will adhere to the following order and content of sections. Proposal
should be straightforward, concise and provide "layman" explanations of technical
terms that are used . Emphasis should be concentrated on conforming to the
RFP instructions, responding to the RFP requirements, and on providing a
complete and clear description of the offer. Proposals which appear unrealistic in
terms of technical commitments, lack of technical competence or are indicative of
failure to comprehend the complexity and risk of any contract awarded under
this RFP, may be rejected. The following proposal sections are to be included
in the Proposer's response:
b. Cover Letter
Proposal shall be accompanied by a cover letter, not to exceed two (2) pages in
length. The cover letter should summarize key elements of the proposal. An
individual authorized to bind the consultant must sign the letter. The letter must
stipulate that the proposal price will be valid for a period of at least 180 days.
Indicate the address and telephone number of the contractor's office located
nearest to San Juan Capistrano, California and the office from which the project
will be managed.
c. Background, Project and Methodology Section
Refer to the Scope of Work for specific services.
17
Exhibit A Page 17 of 61
d. Staffing
Provide a list of personnel who will be working on this project and indicate the
functions that each will perform and anticipated hours of service of each
individual. Include a resume for each designated individual.
Upon award and during the contract period, if the contractor chooses to assign
different personnel to the project, the Contractor must submit their names and
qualifications including information listed above to the City for approval before
they begin work.
e. Financial Capacity
Provide the Proposer's latest audited financial statement or other pertinent
information such as internal unaudited financial statements and financial
references to allow the City to reasonably formulate a determination about the
financial capacity of the Proposer. Describe any administrative proceedings,
claims, lawsuits, or other exposures pending against the Proposer.
f. Fee Proposal
See requirements in the Scope of Work for specific services. Pricing instructions
should be clearly defined to ensure fees proposed can be compared and
evaluated. Proposals shall be valid for a minimum of 180 days following
submission.
g. Disclosure
Please disclose any and all past or current business and personal
relationships with any current San Juan Capistrano elected official, appointed
official, City employee, or family member of any current San Juan Capistrano
elected official, appointed official, or City employee. Any past or current
business relationship may not disqualify the firm from consideration.
h. Sample Agreement
The firm(s) selected by the City will be required to execute a Personal Services
Agreement (Agreement) with the City. The form of the Agreement is enclosed as
Attachment 1. See additional information on the Agreement at Section 12 below.
8 . PROCESS FOR SUBMITTING PROPOSALS
a. Content of Proposal
The proposal must be submitted using the format as indicated in the
proposal format guidelines.
b. preparatjon of Proposal
Each proposal shall be prepared simply and economically, avoiding the use of
elaborate promotional material beyond those sufficient to provide a complete,
accurate and reliable presentation.
18
Exhibit A Page 18 of 61
c. Nymber of proposals
Submit one original, five (5) hard copies plus one disk copy of your proposal in
sufficient detail to allow for thorough evaluation and comparative analysis. In
the event of a conflict between the original and any hard copy or disk copy, the
original shall control.
d. Submission of Proposals
Complete written proposals must be submitted in sealed envelopes marked and
received no later than 4:30 p.m. (P.S.T) on February 2, 2015 to the address
below. Proposals will not be accepted after this deadline. Faxed or e-mailed
proposals will not be accepted.
e. !ngyjrjes
City of San Juan Capistrano
Michelle Bannigan, Assistant Finance Director
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
RE: Banking and Related Services
Questions about this RFP must be directed in writing, via e-mail no
later than January 16, 2015 at 4:30 p.m.:. to:
Michelle Bannigan
Assistant Finance Director
mbannigan@sanjuancapistrano.org
The City reserves the right to amend or supplement this RFP prior to the proposal
due date. The City will endeavor to answer all written questions timely received
no later than January 23, 2015. The City reserves the right not to answer all
questions.
From the date that this RFP is issued until the contractor(s) are selected and the
selection is announced, firms are not allowed to communicate outside the
process set forth in this RFP with any City employee other than the contracting
officer listed above regarding this RFP. The City reserves the right to reject
any proposal for violation of this provision. No questions other than written will
be accepted, and no response other than written will be binding upon the City.
f. Conditions for Proposal Acceptance
This RFP does not commit the City to award a contract or to pay any costs
incurred for any services. The City, at its sole discretion, reserves the right to
accept or reject any or all proposals received as a result of this RFP, to negotiate
with any qualified source(s), or to cancel this RFP in part or in its entirety.
The City may waive any irregularity in any proposal. All proposals will
become the property of the City of San Juan Capistrano, USA. If any
proprietary information is contained in the proposal, it should be clearly identified.
19
Exhibit A Page 19 of 61
10. EVALUATION CRITERIA
Evaluation of all proposals received by the City shall be based on the following
criteria.
a. Qualifications of Entity and Key Personnel-------25%
Includes the following: the Proposer's ability to provide the requested
scope of services; the Proposer's financial capacity; the Proposer's
recent experience conducting work of similar scope; the complexity, and
magnitude for other public agencies of similar size; and references.
b. Approach to Providing the Requested Scope of Services-------25%
Includes an understanding of the RFP and of the project's scope of
services, knowledge of applicable laws and regulations related to the
scope of services.
c. Price Proposal------25%
Price Proposals will be evaluated on the basis of the Total Estimated
Annual Price for each service area.
d . Innovative and/or creative approaches to providing the services that
provide additional efficiencies or increased performance capabilities. -----
--25%
10.EVALUATION OF PROPOSALS AND SELECTION PROCESS
In accordance with its Municipal Code Section 3-4 .306, the City will adhere to the
following procedures in evaluating proposals. A Selection Committee
(Committee), which comprises City's staff will screen and review all proposals
according to the weighted criteria set forth above. While price is one basic factor
for award it is not the sole consideration.
a. Responsiveness Screening
Proposals will first be screened to ensure responsiveness to the RFP. The City
may reject as non-responsive any proposal that does not include the documents
required to be submitted by this RFP. At any time during the evaluation process,
the City reserves the right to request clarifications or additional information from
any or all Proposers regarding their proposals.
b. Initial Proposal Review
The Committee will initially review and score all responsive written proposals
based upon the Evaluation Criteria set forth above. The Committee may also
contact Proposer's references. Proposals that receive the highest evaluation
scores may be invited to the next stage of the evaluation process. The City
may reject any proposal in which a Proposer's approach, qualifications, or price is
not considered acceptable by the City. An unacceptable proposal is one that
20
Exhibit A Page 20 of 61
would have to be substantially rewritten to make it acceptable. The City may
conclude the evaluation process at this point and recommend award to the lowest
responsible bidder. Alternatively, the City may elect to negotiate directly with one
or more Proposers to obtain the best result for the City prior to making a
recommendation or selection .
c. Interviews, Reference Checks, Revised Proposals, Discussions
Following the initial screening and review of proposals, the Proposers included in
this stage of the evaluation process may be invited to participate in an oral
interview. Interviews, if held, are tentatively scheduled to occur in February 2015
and will be conducted at City of San Juan Capistrano City Hall, 32400 Paseo
Adelanto, San Juan Capistrano, CA 92675. This date is subject to change. The
individual(s) from Proposer 's firm that will be directly responsible for carrying out
the contract, if awarded, should be present at the oral interview. The oral
interview may, but is not required to, use a written question/answer format for the
purpose of clarifying the intent of any portions of the proposal.
In addition to conducting an oral interview, the City may during this stage of the
evaluation process also contact and evaluate the Proposer's references, contact
any Proposer to clarify any response or request revised or additional information,
contact any current users of a Proposer's services, solicit information from any
available source concerning any aspect of a proposal, and seek and review any
other information deemed pertinent to the evaluation process.
Following conclusion of this stage of the evaluation process, the Committee will
again rank all Proposers according to the evaluation criteria set forth above.
The Committee may conclude the evaluation process at this point, and make
a recommendation for award , or it may request Best and Final Offers from
Proposers . The City may accept the proposal or negotiate the terms and
conditions of the agreement with the highest ranked firm, which shall be
determined to be the lowest responsible bidder. The City may recommend award
without Best and Final Offers, so Proposers should include their best proposal
with their initial submission.
Recommendation for award is contingent upon the successful negotiation of final
contract terms. Negotiations shall be confidential and not subject to disclosure to
competing Proposers unless an agreement is reached. If contract negotiations
cannot be concluded successfully within a time period determined by the City, the
City may terminate negotiations and commence negotiations with the next highest
scoring Proposer or withdraw the RFP .
11. CONFIDENTIALITY
The California Public Records Act (Cal. Govt. Code Sections 6250 et seq.) mandates
public access to government records. Therefore, unless information is exempt from
disclosure by law, the content of any request for explanation, exception, or
substitution, response to this RFP, protest, or any other written communication
between the City and Proposer, shall be available to the public. The City intends to
release all public portions of the proposals following the evaluation process at such
time as a recommendation is made to the City Council.
21
Exhibit A Page 21 of 61
If Proposer believes any communication contains trade secrets or other proprietary
information that the Proposer believes would cause substantial injury to the
Proposer's competitive position if disclosed, the Proposer shall request that the City
withhold from disclosure the proprietary information by marking each page containing
such proprietary information as confidential. Proposer may not designate its entire
proposal as confidential nor designate its Price Proposal as confidential.
Submission of a proposal shall indicate that, if Proposer requests that the City
withhold from disclosure information identified as confidential, and the City complies
with the Proposer's request, Proposer shall assume all responsibility for any
challenges resulting from the non-disclosure, indemnify and hold harmless the City
from and against all damages (including but not limited to attorney's fees that may
be awarded to the party requesting the Proposer information), and pay any and all
cost and expenses related to the withholding of Proposer information. Proposer shall
not make a claim, sue, or maintain any legal action against the City or its directors,
officers, employees, or agents concerning the disclosure, or withholding from
disclosure, of any Proposer information. If Proposer does not request that the City
withhold from disclosure information identified as confidential, the City shall have
no obligation to withhold the information from disclosure and may release the
information sought without any liability to the City.
12.EX PARTE COMMUNICATIONS
Proposers and Proposers' representatives should not communicate with the City
Council members about this RFP. In addition, Proposers and Proposers'
representatives should not communicate outside the procedures set forth in this RFP
with an officer, employee or agent of the City, including any member of the
evaluation panel, with the exception of the RFP Facilitator, regarding this RFP until
after contract award. Proposers and their representatives are not prohibited,
however, from making oral statements or presentations in public to one or more
representatives of the City during a public meeting.
A "Proposer" or "Proposer's representative" includes all of the Proposer's employees,
officers, directors, consultants and agents, any subcontractors or suppliers listed in
the Proposer's proposal, and any individual or entity who has been requested by the
Proposer to contact the City on the Proposer's behalf.
13. CONFLICT OF INTEREST
The Proposer shall warrant and represent that it presently has no interest and agrees
that it will not acquire any interest which would present a conflict of interest under
California Government Code sections 1090, et seq., or sections 87100, et seq.,
during the performance of services under any Agreement awarded. The Proposer
further covenants that it will not knowingly employ any person having such an
interest in the performance of any Agreement awarded. Violation of this provision
may result in any Agreement awarded being deemed void and unenforceable.
14. DISCLOSURE OF GOVERNMENTAL POSITION
In order to analyze possible conflicts that might prevent a Proposer from acting on
behalf of the City, the City requires that all Proposers disclose in their proposals
any positions that they hold as directors, officers, or employees of any governmental
entity. Additional disclosure may be required prior to contract award or during 1t@
Exhibit A Page 22 of 61
term of the contract. Each Proposer shall disclose whether any owner or employee
of the firm currently hold positions as elected or appointed officials, directors, officers,
or employees of a governmental entity or held such positions in the past twelve (12)
months.
15.CONDITIONS TO AGREEMENT, IF ANY.
The selected Proposer will execute a Personal Services Agreement with the City
describing the Scope of Services to be performed, the schedule for completion of
the services, compensation, and other pertinent provisions . The contract shall
follow the sample form of Agreement provided as Attachment 1 to this RFP. All
Proposers are directed to particularly review the indemnification and insurance
requirements set forth in the sample Agreement.
The contractor will maintain insurance requirements during the entire time of the
contract. To confirm this requirement, within fifteen (15) days from execution of the
agreement, the contractor shall furnish the City satisfactory evidence of the insurance
requirements and evidence that each carrier is required to give at least thirty (30)
days prior notice of the cancellation agreement. The City shall be named additional
insured under the Contractor's policies as noted in the agreement.
The terms of the agreement, including insurance requirements have been
mandated by the City. Submittal of a proposal shall be deemed acceptance of all
the terms set forth in this RFP and the sample Agreement for Services unless the
Proposer includes with its proposal, in writing, any conditions or exceptions
requested by the Proposer to the proposed Agreement.
16.DISQUALIFICATION STATEMENT
Proposers shall submit a statement with the proposal to state whether a Proposer,
any officer of a proposer, or any employee of a Proposer who has a proprietary
interest in the Proposer, has ever been disqualified, removed, or otherwise prevented
from proposing on, or completing a federal, state, or local government project
because of a violation of law or safety regulation and if so, to explain the
circumstances. A proposal may be rejected on the basis of a Proposer, any officer or
employee of such Proposer, having been disqualified, removed, or otherwise
prevented from proposing on, or completing a federal, state, or local project because
of a violation of law or a safety regulation.
17.STANDARD TERMS AND CONDITIONS
a. Amendments
The City reserves the right to amend or supplement this RFP prior to the proposal
due date. All amendments and additional information will be posted to the San
Juan Capistrano City website, San Juan Capistrano -Official City Web Site -
Department -Financial Services-Request for Proposals. Proposers should check
this web page daily for new information.
b. Cost for Preparing Proposal
The cost for developing the proposal is the sole responsibility of the Proposer.
All proposals submitted become the property of the City.
23
Exhibit A Page 23 of 61
c. Business License
The Contractor must have a City of San Juan Capistrano business license while
conducting any work under this contract.
24
Exhibit A Page 24 of 61
EXHIBIT A
City of San Juan Capistrano-Banking Services Bid Form
(M ark Items Clearly if "No Proposal : or Contracted to Third Party)
Estimated
Total fY!oil}h'y Estimiffiid Total I term M:ont"ly Unit AFP Code Per Unit Cost
V.olurne. C.ost Ann~al Cost
General Account Services
Account Maintenance -Web 4 AAA003
Bank Statemenl -Web 4 CHK111
Information ReportlnQ
Partial Reconciliation Monthly Maintenance 2 ARP003
PllJl_er Report Print & Shlpmrrn 1 ARP180
lmaae Item Prior Day Statement 13 INF450
CSV Reoort Monthly 1 ARP502
Web Prior Day Report 4 INF407
Web Prior Day Balance/Summary Updated 942 INF411
Wetl Prior DayTransaction Updated 572 INF412
Web Current Day Report 4 INF425
Web current Day Balance/Summary 169 INF413 Updated
Web Current Day Transaction Updated 202 INF414
Peposltory Services
Branch Deposit 40 CHK010
Electronic Credit 129 CHK011
Niohl Drop Oeoosll 29 CHK012
Deoosit Administration Fee 3699 CHK750
Currency Deposit Standard 3091 5 ROC015
Check Deposit on Us 460 CKP120
Check Deposil -Local Clearin!l House 1672 CKP137
Check Deposit -Select In District. CA 2168 CKP136
Check Dejloslt • AU Others 1759 cKP139
Deposited Item Return· Reclear 3 RET062
Deposited Uem Retum -Charaeback 2 RETOG3
ACH
ACH Web Monthly Base Fee 3 CPY406
ACH Web Credit Transactions 284 CPY407
ACH Web Debit Transacllons 1702 CPY409
ACH Web Returns Transmission 4 CPY417
ACH Web Rejects/Rev/Del 1 CPY420
ACB Web NOC Transmission 5 CPY430
ACH Web Ba lch Release 7 CPY432
Web Addenda Records 1 CPY435
ACH Web Acknowledgement Report 6 CPY458
Paper Disbursement Services
Check Paid Partial-Tnuncated 276 ARP034
Paid Check Charge 16 CHK020
DaiJyPald Report 2 ARP051
Paid No Issue Reoort 2 ARP065
Reconcile Stop Pavments -Renewal 1 ARP082
Transmission Output-Pe.r TX 2 ARP113
Transmission Output -Per Item 296 ARP114
Check capture 359 ARP151
Check lmaae Re1rleval Monli11V Fee 1 IMG401
Check lmaqe 4 IMG402
Check Processing Reiects 15 CKP161
Pre-Encoded Cou rier Deposit 18 CKP001
Non-Customer Cash Paid on • us 1 CUS301
Credit Error Notice 2 CKP191
Deblt Error Notice 1 CKP190
Web Stop Pavment Sin<:~le lnquirv 3 TSP450
Web Stop Payment Renewal 42 TSP418
Electronic Oebit and Wire Transfer
Electronic Debit 32 CHK021
Wire Transfer Monthly Fee Web 1 WTM442
Account Transfer End ol Dort_Web 2 WTM436
Outooino Domestic W ire Web 6 WTM443
Exhibit A Page 25 of 61
EXHIBIT A
City of San Juan Capistrano -Banking Services Bid Form
(Mark Items Clearly if "No Propo sal : or Contracted to Third Party)
Estlmate.d Total Monthly Estimate-d Total Hem Monthly Unit> AFPCode.. Per Uhlt Gost
Voiume Cost Annu~l Co.st
LAIF
LA IF Redem~:~tlon 1 CSU170
LAIF lnveslment 1 CSU17 1
Bill Concentration
Monthly Licen se Fe e 1 BCS003
Tra nsmission Fee 19 BCS005
Transaction Fee 627 BCS007
Retum Fee 2 BCS028
Miscellaneous Items
Bank StJQP Lies
Endorsement Stamos
Deposit Silos
Oeposli BaQs
Exhibit A Page 26 of 61
EXHIBITS
City of San Juan Capistrano-Lockbox Services Bid Form
(Mark Items Cl ea rly if "No Proposal or Contracted to Third Party")
Item Unit Price Estimated Monthly Monthly Cost Explanation Volume
Processing
Monthly Maintenance
Processed Item
Multiple Payment Surcharge
Deposit
Cash Payment Received
Additional Processing
Manual/Express Mail
Sort
Stub Only Item
PhotocQQy
Outline Exception Review
Oulline Exceptions Monthly
Outline Exceptions Item
Outline Exceptions User
Image Delivery Services
Image Month ly Maintenance
Im age Web Item
Image Full -Page Item
Image CD-ROM
Image CD Rom It em
Reporting
Transm issions
Custom Report Monthly
Other
Lockb ox Changes
Package Preparation
US Mail oer item
Research ReQuest
Annual P.O . Box Rental
Initial Fees
Lockbox Setup Fee
Image Setup Fee
Courier Fee
Dai ly Courier Service
Third Party Courier Service
Photocopy
Per Item Photocopy Charge
Other Fees
Exhibit A Page 27 of 61
EXHIBITS
City of San Juan Capistrano-Lockbox Services Bid Form
(Mark Items Clearly if "No Proposal or Contracted to Third Party")
Item Unit Price Estimated Monthly Monthly Cost Explanation Volume
Processing
Monthly Mainte nan ce
Processed Item
Multiple Payment Surcha rge
Depos it
Cash Payment Received
Additional Processing
Manu al/Express Mail
Sort
Stub Only Item
Photocopy
Outline Exception Review
Outline Exceptions Month ly
Outline Exceptions Item
Outline Exceptions Use r
Image Delivery Services
Image Monthly Maintenance
Image Web Item
Image Full-Page Item
Image CD-ROM
lmaqe CD Rom Item
Reporting
Transmissions
Custom Report Monthly_
Other
Lockbox Changes
Package Preparation
US Mail per item
Research Request
Annual P.O. Box Rental
Initial Fees
Lockbox Setup Fee
Image Setup Fee
Courier Fee
Daily Co urier Service
Third Party Courier Service
Photocopy
Per Item Pho tocopy Charge
Other Fees
Exhibit A Page 28 of 61
CITY OF SAN JUAN CAPISTRANO
EXHIBIT C-MERCHANT CARD SERVICES BID FORM
(Mark C learly if "No Proposal or Contracted t o a Third Party")
.-'l~!lltA;.~
' 1 ~ ' •• , r ~a,~ 4§4,f§il£!.tfl§ii.i,
AvthotizationfEDC Fee -VOGa !Credil and Non-PI N n •• ,
< ·'·-~~Fee -Mastercard !Credn and Non-PIN
< Networil Card !Credit and Non-PIN
; Fee -Amet'lc,an Express card (Credi\ and Non-PIN
Cha!l!ebacks -MCN
- - -Discover
~AMEX
Other Fees (Please provl do descrlpUon and unit prices'
Subtotal All Fets per
Other Fees (PieD•e p ro vi de
_ Moothly Se{"Viee fe~
Pan11 r Slall!meN Fee
---!_Fe_e
1 an d unit prices]
~
:-:~1-~ {1iUtl
-
-
li
I_S
l:¥:n J,MS'"1 ~-
''<".lllr~-_~glif!l I ~ c't1j7.-'l ~~a
---
-
I S
_ -_l_S _ -~_l_S _
~ J ~ -----Ls_ ----=-----IT
: _lj H---
~ Subto~l Monlhy ees I I I I I I I I ~ I I s -I
Mii@ Am~ Fee S • S -S • s · S • S •
Ol.her Fees (Please provi d e descrl pllon 'an d unll p rlcesll r ---~---r--I --rs--I s --~-n----T s--------:--rs -I s
11 Fel!!l
Other Fees (Ploase provide 1 and unit prl cesll T I
Subtotol Otlter Foes.
I S • IS • I S -I S • I S
ft . ls --:--rs -rs --:-rs
'";'
tt it --
Exhibit A Page 29 of 61
PERSONAL SERVICES AGREEMENT
THIS AGREEMENT is made, entered into, and shall become effective this __ day
of , 2014, by and between the City of San Juan Capistrano (hereinafter referred to as
the "City") and (hereinafter referred to as the "Consultant").
RECITALS:
WHEREAS, City desires to retain the services of Consu ltant regarding the City's
proposal to ; and
WHEREAS, Consultant is qualified by virtue of experience, training , education and
expertise to accomplish such services.
NOW, THEREFORE, City and Consultant mutually agree as follows:
Section 1. Scope of Work.
The scope of work to be performed by the Consultant shall consist of those tasks as
set forth in Exhibit "A," attached and incorporated herein by reference. To the extent that
there are any conflicts between the provisions described in Exhibit "A" and those provisions
contained within this Agreement, the provisions in this Agreement shall control.
Section 2. Term .
[OPTION 1: ONGOING SERVICES, NO END DATE] This Agreement shall
commence on the effective date of this Agreement and services required hereunder shall
continue until notified that said services are no longer required, subject to 15 days notice of
termination.
[OPTION2 : SPECIFIC TERM] This Agreement shall commence on the effective
date and shall terminate, and all services required hereunder shall be completed, no later
than ----
Section 3. Compensation.
3.1 Amount.
Total compensation for the services hereunder shall not exceed $ __
[either, total contract amount, or amount per month or per fiscal year; also specify whether
the total compensation includes expenses, etc.], [as set forth in Exhibit "B," attached and
incorporated herein by reference [if Consultant provides a cost proposal or rate schedule]].
1
Exhibit A Page 30 of 61
3.2 Method of Payment.
Subject to Section 3.1, Consultant shall submit monthly invoices based on
total services which have been satisfactorily completed for such monthly period. The City
will pay monthly progress payments based on approved invoices in accordance with this
Section.
3.3 Records of Expenses.
Consultant shall keep complete and accurate records of all costs and
expenses incidental to services covered by this Agreement. These records will be made
available at reasonable times to the City. Invoices shall be addressed as provided for in
Section 16 below.
Section 4. Independent Contractor.
It is agreed that Consultant shall act and be an independent contractor and not an
agent or employee of the City, and shall obtain no rights to any benefits which accrue to
Agency's employees.
Section 5. Limitations Upon Subcontracting and Assignment.
The experience, knowledge, capability and reputation of Consultant, its principals
and employees were a substantial inducement for the City to enter into this Agreement.
Consultant shall not contra~t with any other entity to perform the services required without
written approval of the City . This Agreement may not be assigned, voluntarily or by
operation of law, without the prior written approval of the City. If Consultant is permitted to
subcontract any part ofthis Agreement by City, Consultant shall be responsible to the City
for the acts and omissions of its subcontractor as it is for persons directly employed .
Nothing contained in th is Agreement shall create any contractual relationships between any
subcontractor and City. All persons engaged in the work will be considered employees of
Consultant. City will deal directly with and will make all payments to Consultant.
Section 6. Changes to Scope of Work.
For extra work not part of this Agreement, a written authorization from City is
required prior to Consultant undertaking any extra work . In the event of a change in the
Scope of Work provided for in the contract documents as requested by the City, the Parties
hereto shall execute an addendum to this Agreement setting forth with particularity all terms
of the new agreement, including but not limited to any additional Consultant's fees .
Section 7. Familiarity with Work and/or Construction Site .
By executing this Agreement, Consultant warrants that: (1) it has investigated the
work to be performed; (2) if applicable, it has investigated the work site(s), and is aware of
2
Exhibit A Page 31 of 61
all conditions there; and (3) it understands the facilities, difficulties and restrictions of the
work to be performed under this Agreement. Should Consultant discover any latent or
unknown conditions materially differing from those inherent in the work or as represented
by City, it shall immediately inform the City of this and shall not proceed with further work
under this Agreement until written instructions are received from the City.
Section 8. Time of Essence .
Time is of the essence in the performance of this Agreement.
Section 9. Compliance with Law.
Consultant shall comp ly with all applicable laws , ordinances , codes and regulations
of federal , sta te and local government.
Section 10. Conflicts of Interest.
Consult ant covenants that it presently has no interest and shall not acquire any
interest, d irect or indirect, which would conflict in any manner or degree with the
performance of the services contemplated by this Agreement. No person having such
interest shall be employed by or associated with Consultant.
Section 11. Copies of Work Product.
At the completion of the work, Consultant shall have delivered to City at least one ( 1)
copy of any final reports and/or notes or drawings containing Consultant's findings,
conclusions, and recommendations with any supporting documentation. All reports
submitted to the City shall be in reproducible format, or in the format otherwise approved by
the City in writing .
Section 12. Ownership of Documents.
All reports, information, data and exhibits prepared or assembled by Consultant in
connection with the performance of its services pursuant to this Agreement are confidential
to the extent permitted by law, and Consultant agrees that they shall not be made available
to any individual or organization without prior written consent of the City. All such reports,
information, data , and exhibits shall be the property of the City and shall be delivered to the
City upon demand without additional costs or expense to the City. The City acknowledges
such documents are instruments of Consultant's professional services.
Section 13. Indemnity.
To the fullest extent permitted by law, Consultant agrees to protect, defend, and hold
harmless the City and its elective and appointive boards, officers, agents, and employees
from any and all claims, liabilities, expenses, or damages of any nature, including attorneys'
3
Exhibit A Page 32 of 61
fees, for injury or death of any person, or damages of any nature, including interference
with use of property, arising out of, or in any way connected with the negligence,
recklessness and/or intentional wrongful conduct of Consultant, Consultant's agents,
officers, employees, subcontractors, or independent contractors hired by Consultant in the
performance of the Agreement. The only exception to Consultant's responsibility to protect,
defend, and hold harmless the City, is due to the negligence, recklessness and/or wrongful
conduct of the City, or any of its elective or appointive boards, officers, agents, or
employees.
This hold harmless agreement shall apply to all liability regardless of whether any
insurance policies are applicable . The policy limits do not act as a limitation upon the
amount of indemnification t o be provided by Consultant.
Section 14. Insurance.
On or before beginning any of the services or work called for by any term of this
Agreement, Consultant, at its own cost and expense, shall carry, maintain for the duration
of the agreement, and provide proof thereof that is acceptable to the City , the insurance
specified below with insurers and under forms of insurance satisfactory in all respects to the
City . Consultant shall not allow any subcontractor to commence work on any subcontract
until all insurance required of the Consultant has also been obtained for the subcontractor.
Insurance required herein shall be prmtided by Insurers in good standing with the State of
California and having a minimum Best's Guide Rating of A-Class VII or better.
14.1 Comprehensive General Liability .
Throughout the term of this Agreement, Consultant shall maintain in full force
and effect Comprehensive General Liability coverage in an amount not less than one
million dollars per occurrence ($1 ,000,000.00), combined single limit coverage for risks
associated with the work contemplated by this agreement. If a Commercial General
Liability lrtsurance form or other form with a general aggregate limit is used, either the
general aggregate limit shall apply separately to the work to be performed under this
agreement or th.e general aggregate limit shall be at least twice the required occurrence
limit.
14.2 Comprehensive Automobile Liability.
Throughout the term of this Agreement, Consultant shall maintain in full force
and effect Comprehensive Automobile Liability coverage, including owned, hired and non-
owned vehicles in an amount not less than one million dollars per occurrence
($1 ,000,000.00).
14.3 Workers' Compensation.
If Consultant intends to employ employees to perform services under this
Agreement, Consultant shall obtain and maintain, during the term of this Agreement,
4
Exhibit A Page 33 of 61
Workers' Compensation Employer's Liability Insurance in the statutory amount as required
by state law.
14.4 Proof of Insurance Requirements/Endorsement.
Prior to beginning any work under this Agreement, Consultant shall submit the
insurance certificates, including the deductible or self-retention amount, and an additional
insured endorsement naming City, its officers, employees, agents, and volunteers as
additional insured as respects each of the following: Liability arising out of activities
performed by or on behalf of Consultant, including the insured 's general supervision of
Consultant; products and completed operations of Cons ultant; premises owned, occupied
or used by Consultant; or automobiles owned, leased, hired, or borrowed by Consultant.
The coverage shall contain no special limitations on the scope of protection afforded City,
its officers, employees, agents, or volunteers .
14.5 Errors and Omissions Coverage [FOR PROFESSIONS/WORK
EXCLUDED FROM GENERAL LIABILITY]
Throughout the term of this Agreement, Consultant shall maintain Errors and
Omissions Coverage (professional liabili ty coverage) in an amount of not less than One
Million Dollars ($1 ,000,000). Prior to beginning any work under this Agreement, Consultant
shall submit an insurance certificate to the City's General Counsel for certification that the
insurance requirements of this Agreement have beeR satisfied .
14.6 Notice of Cancellation/Termination of Insurance .
The above policy/policies shall not terminate, nor shall they be cancelled, nor
the coverages reduced , until after thirty (30) days' written notice is given to City, except that
ten ( 1 0) days' notice shall be given if there is a cancellation due to failure to pay a premium .
14.7 Terms of Compensation .
Consultant .shall not receive any compensation until all insurance provisions
have bee11 satisfied .
14.8 Notice to Proceed .
Consultant shall not proceed with any work under this Agreement until the
City has issued a written "Notice to Proceed" verifying that Consultant has complied with all
insurance requirements of this Agreement.
Section 15. Termination.
City shall have the right to terminate this Agreement without cause by giving thirty
(30) days' advance written notice of termination to Consultant.
5
Exhibit A Page 34 of 61
In addition, this Agreement may be terminated by any party for cause by providing
ten ( 1 0) days' notice to the other party of a material breach of contract. If the other party
does not cure the breach of contract, then the agreement may be terminated subsequent to
the ten (10) day cure period.
Section 16. Notice.
All notices shall be personally delivered or mailed to the below listed addresses, or
to such other addresses as may be designated by written notice. These addresses shall be
used for delivery of service of process:
To City :
To Consultant:
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn : __________ ~
Section 17. Attorneys' Fees .
If any action at law or in equity is necessary to enforce or interpret the terms of this
Agreement, the prevailing party shall be entitlea to reasonable attorneys' fees, costs and
necessary disbursements in addition to any other relief to which he may be entitled .
Section 18. Dispute Resolution .
In the event of a dispute arising between the parties regarding performance or
interpretation of this Agreement, the dispute shall be resolved by binding arbitration under
the auspices of the Judicial Arbitration and Mediation Service ("JAMS").
Section 19. Entire Agreement.
This Agreement constitutes the entire understanding and agreement between the
parties and supersedes all previous negotiations between them pertaining to the subject
matter thereof.
Section 20. Counterparts and Facsimile signatures.
This Agreement may be executed by the Parties in counterparts, which counterparts
shall be construed together and have the same effect as if all the Parties had executed the
same instrument. Counterpart signatures may be transmitted by facsimile, email, or other
electronic means and have the same force and effect as if they were original signatures .
6
Exhibit A Page 35 of 61
IN WITNESS WHEREOF, the parties hereto have executed this Agreement.
CITY OF SAN JUAN CAPISTRANO
By : ______________________ __
, Mayor
CONSULTANT
ATTEST :
Maria Morris, City Clerk
APPROVED AS TO FORM :
Hans Van Ligten, City Attorn ey
7
Exhibit A Page 36 of 61
m >< ::r
0:
;::+
)>
""'C
Q) co
City of San Juan Capistrano
Summary
October 31, 2014
CD *The information on City Managed Investments (LAIF and Non-Negotiable CD) reported on the following pages has been compiled by PFM
~ Asset Management based on information provided by the City of San Juan Capistrano. This report is for informational purposes only.
0 -(J)
~
m
X :::r
0' ;:::;:
)>
'lJ m
(.Q
CD
VJ
00
0 _.,
(J)
-->.
Consolidated Summary
CITY OF .SAN JUAN CAPISTRANO
Portfolio Summary and Investment Allocation
Closing Market Value
PFM Managed Investments
Certificate of Deposit 1,740,909.03
Corporate Note 6,297,275.07
Federal Agency Bond I Note 11,532,292.09
U.S. Treasury Bond I Note 10,603,815.70
City Managed Investments
Non-Negotiable Certificates of Deposit 750,000.00
Local Agency Investment Fund 13,344.459.00
Total $44,268,750.89
Maturity Distribution
Maturity Bucket Closing Market Value
Under 30 days 13,594,459.00
31 to 60 days 0.00
61 to 90 days 0.00
91 to 180 days 250,393.50
181 days to 1 year 3,607,955 .27
1 to 2 years 15,460,747.27
2 to 3 years 11,355,195.85
3 to 4 years 0.00
4 to 5 years 0.00
Over 5 years 0 .00
$44,268,750.89
Percent
3.93
14.23
26.05
23.95
1.69
30.15
100.00%
Percent
30.71
0.00
0.00
0.57
8.15
34.92
25.65
0.00
0.00
0.00
100.00%
Sector Allocation
Non-
Negotiable CD
2%
~
For the Month Ending October 31, 2014
~Corporate
Note
Federal
Agency
26%
SUMMARY Page 1
*The information on City Managed Investments reported on this page has been compiled by PFM Asset Management based on information provided by the City of San Juan Capistrano. This report is for
informational purposes only.
m
X
::T
0: ;:::;.:
)>
-o
!).)
(Q
Cl>
City of San Juan Capistrano
Investments Managed by the City
October 31, 2014
*The information on City Managed Investments (LAIF and Non-Negotiable CD) reported on the following pages has been compiled by PFM
~ Asset Management based on information provided by the City of San Juan Capistrano. This report is for informational purposes only.
0 -(j) _..
m >< :::r
0'" .......
>-
""'0
!l)
(.Q
(I)
~
0
0 -(J)
....>.
Summary of Holdings
CITY OF SAN JUAN CAPISTRANO-CllY MANAGED' INVESTMENTS
Security Type/Description
Dated Date/Coupon/Maturity CUSIP
Local Government Investment Pools
Local Agency Investment Fund LAIFCITY
Security Type Sub-Total
Non-Negotiable Certificates of Deposit
Mission National Bank C0381060750
-0.50% 11/10/2014
Independence Bank
CD999999930B
-0 .95% 05/08/2016
Farmers and Merchants Bank CD7264
-0.40% 05/25/2016
Security Type Sub-Total
Securities Sub-Total
Accrued Interest
Total Investments
Par
S&P Moody's
Rating Rat ing
13,344,459 .00 NR NR
13,344,459.00
250,000.00 NR NR
250,000.00 NR NR
250,000.00 NR NR
750,000.00
$14,094,459.00
Trade
Date
2/28/2009
11/10/2012
5/8/2014
6/25/2014
Settle
Date
2/28/2009
11/10/2012
5/8/2014
6/25/2014
For the Month Ending October 31, 2014
Original
Cost
YTM Accrued
at Cost Interest
13,344,459 .00 0.26%
13,344,459.00 0.26%
250,000.00 0.50% 82.21
250,000.00 0.95 % 143 .15
250,000.00 0.40% 13.70
750,000 .00 0.62% 239.06
$14,094,459.00 0.28% $239.06
Amortized
Cost
13,344,459 .00
13,344,459 .00
250,000 .00
250,000 .00
250,000 .00
750,000.00
$14,094,4S9 .00
Market
Value
13,344,459.00
13,344,459.00
250,000.00
250,000 .00
250,000.00
750,000.00
$14,094,459.00
$239.06
$14,094,698.06
CITY MANAGED INVESTMENTS Page 1
*The information on City Managed Investments reported on this page has been compiled by PFM Asset Management based on information provided by the City of San Juan
Capistrano. This report is for informational purposes only .
m >< ::::r
0'" ;::::;:
)>
""0
Q)
co
(J)
~
~
0 -CJ)
~
Earnings Reconciliation
CITY OF SAN JUAN CAPISTRANO-CITY MANAGED INVESTMENTS
Earnings Reconciliation (Cash Basis)
Interest/Dividends/Coupons Received
Less Purchased Interest Related to Interest/Coupons
Plus Net Realized Gains/Losses
Total Cash Basis Earnings
Earnings Reconciliation (Accrual Basis)
Ending Amortized Value of Securities
Ending Accrued Interest
Plus Proceeds from Sales/Withdrawals
Plus Proceeds of Maturities/Calls/Principal Payments
Plus Coupons/Dividends Received
Less Cost of New Purchases
Less Beginning Amortized Value of Securities
Less Beginning Accrued Interest
Total Accrual Basis Earnings
7,401.09
0.00
0.00
$7,401.09
14,094,459.00
239.06
0.00
0 .00
7,401.09
{3,007,014.00)
{11 ,087,445.00)
{226.38)
$7,413.77
For the Month Ending October 31,2014
CITY MANAGED INVESTMENTS Page 2
*The information on City Managed Investments reported on this page has been compiled by PFM Asset Management based on information provided by the City of San Juan
Capistrano . This report is for informational purposes only.
m >< :r
rr -)>
-u
!l>
(Q
CD
.j:::.
N
0 _..,
(J)
---"
Summary of Transactions & Interest For the Month Ending October 31, 2014
CITY OF SAN JUAN ' CAPISTRANO--CITY MANAGED INVESTMENTS --•
Transaction Type Pr incipal Accrued
Trade Settle Security Description CUSIP Par Proceeds Interest Total
10/07/2014 10/07/2014 Local Agency Investment Fund LAIFCITY 3,000,000.00 (3,000,000.00) 0 .00 (3 ,000,000.00)
10/14/2014 10/15/2014 Local Agency Investment Fund LAIFCITY 7,014.00 (7,014 .00) 0.00 (7,014.00)
Transaction Type Sub-Total 3,007,014.00 {3,007,014.00) 0.00 (3,007,014.00)
Missio n National Ba nk
-0.50% 11/10/2014
10/09/2014 10/09/2014
Independence Bank CD999999930B 250,000-00 0.00 195.28 195.28 -0 .95 % 05/08/2016
10/14/2014 10/15/2014 Local Agency Investment Fund LAIFCITY 13,337,445.00 0.00 7,014.00 7,014.00
10/30/2014 10/30/2014
Farmers and Merchants Bank
-o.4o% o6L25L2016
CD7264 250,000.00 0.00 82.20 82.20
Transaction Type Sub-Total 14,087,445.00 0.00 7,401.09 7,401.09
Total Security Transactions (3,007,014.00) 7,401.09 (2,999,612.91)
CITY MANAGED INVESTMENTS Page 3
*The information on City Managed Investments reported on this page has been compiled by PFM Asset Management based on information provided by the City of San Juan
Capistrano . This report is for informational purposes only.
m
X
::T a= ;:;:
):> ..,
Q)
(0
City of San Juan Capistrano
Investments Managed by PFM Asset Management
October 31, 2014
ro *The information on City Managed Investments (LAIF and Non-Negotiable CD) reported on the following pages has been compiled by PFM
~ Asset Management based on information provided by the City of San Juan Capistrano . This report is for informational purposes only. a
m ......
Managed Account Summary Statement For the Month Ending October 31, 2014
CilY OF SAN JUAN CAP-ISTRANO -XXXX01d0
Transaction Summary -Managed Account Cash Transactions Summary -Managed Account
Opening Market Value $30,148,384.66 Maturities/Calls 450,000.00
Maturities/Calls (450,000.00) Sale Proceeds 0.00
Coupon/Interest/Dividend Income 34,419.30 Principal Dispositions 0.00 Principal Payments 0.00 Principal Acquisitions 446,188.15
Unsettled Trades 0.00
Security Purchases ( 446,355.03)
Change in Current Value 29,719.08 Net Cash Contribution 0.00
Recondling Transactions 0.00
Closing Market Value $30,174,291.89
Earnings Reconciliation (Cash Basis)-Managed Account Cash Balance
Interest/Dividends/Coupons Received 34,419.30 Closing Cash Balance $110,568.38
Less Purchased Interest Related to Interest/Coupons
Plus Net Realized Gains/Losses
Total Cash Basis Earnings
(166.88)
(2,420.00)
$31,832.42
Earnings Reconciliation (Accrual Basis) Total
m
X
::J
0" ;:::;.:
)>
Ending Amortized Value of Securities
Ending Accrued Interest
Plus Proceeds from Sales
Plus Proceeds of Maturities/Calls/Principal Payments
Plus Coupons/Dividends Received
Less Cost of New Purchases
Less Beginning Amortized Value of Securities
Less Beginning Accrued Interest
-;Jr Total Accrual Basis Earnings
co
CD
~ ~
0 -(j)
....>. J:/ii=-
.... ~FM Asset Management LLC
30,101,830.31
96,351.52
0.00
450,000.00
34,419.30
(446,355.03)
(30,121,629.83)
(95,574.43)
$19,041.84
Page 1
m
X
::::J
0" ;:::;:
)>
"U
Q)
(Q
CD
.j:::..
tTl
0 -CJ)
Portfolio Summary and Statistics
CITY OF SAN JUAN CAPISTRANO -XXXX..:::O:::::J.O::::O================:~---==:====:;;;;;;;;;;;;:~===.
Account Summary
Descri(!tion Par Value Market Value Percent
U.S. Treasury Bond I Note 10,440,000.00 10,603,815.70 35.14
Federal Agency Bond I Note 11,465,000.00 11,532,292 .09 38 .22 35.14% I
Corporate Note 6,165,000.00 6,297,275.07 20.87
Certificate of De~osit 1,745 ,000 .00 1,740,909.03 5.77
Managed Account Sub-Total 29,815,000.00 30,174,291.89 100.00%
Accrued Interest 96 351.52
Total Portfolio 29,815,000.00 30,270,643.41
Unsettled Trades o.oo 0.00
Maturity Distribution
~9.58%
Yield to Maturity at Cost
37.G3o/o
Yield to Maturity at Market
Duration to Worst
Weighted Average Days to Maturity
·~ --
11.96%
0.83% n 0.00% 0.00% 0.00%
0 - 6 Months 6 -12 Months 1-2 Years 2-3 Years 3-4 Years 4-s Years Over 5 Years
....... ~
.I::PF:I.l ~ PFM Asset Management LLC
For the Month Ending October 31, 2014
Sector Allocation
~~~ ___ COrporate Note
Fed Agy Bond I
--.-c__ Note
38 .22%
Characteristics
0.77%
0.62%
1.73
658
Page 2
m
X ::r
0"
;::+:
)>
'1J
Q)
(0
CD
~
(J)
0 -(J) __,..
~
.=::PF!vf
CllY OF SAN JUAN CAPISTRANO -)000(0_10@
r; ·----
Issuer Summary
Issuer
BERKSHIRE HATHAWAY INC
CATERPILLAR INC
CITIGROUPINC
DISCOVER FINANCIAL SERVICES
FANNIE MAE
FEDERAL FARM CREDIT BANKS
FEDERAL HOME LOAN BANKS
FREDDIE MAC
GENERAL ELECTRIC CO
GOLDMAN SACHS GROUP INC
IBM CORP
JP MORGAN CHASE & CO
PROCTER & GAMBLE CO
TOYOTA MOTOR CORP
UNITED STATES TREASURY
US BANCORP
WELLS FARGO & COMPANY
Total
...:::f!F-: r. .:==PI·:,. ~ ·PPM Asset ~1anagement LLC ~
Managed Account Issuer Summary For the Month Ending October 31, 2014
Credit Quality (S&P Ratings)
Market Value
of Holdin2s Percent
790,432.72 2.62
780,849.08 2.59
249 ,940 .50 0.83
251,319.25 0.83
3,92.8 ,982 .55 13 .02
1,302,519.90 4.32
4,070,960.46 13.49
2,2.29,829.18 7.39
1,049,539.77 3.48
250 ,393.50 0.83
803,794.11 2.66
786,097.64 2.61
753 ,994.80 2.50
776,594.60 2.57
10,603,815.70 35.14
739,818.53 2.45
805,409 .60 2.67
$30,174,291.89 100.00%
Page 3
m
X
::J" o= ;::::;:
:t>
"'0
D.>
<0
CD
~
'-l
0 -(J) .......
Managed Account Detail of Securities Held
CilY OF SAN JUAN CAPrSTRANQ -XXXXO'lOO
Security Type/Description
Dated Date/Coupon/ Maturity CUSIP
U.S. Treasury Bond I Note
US TREASURY NOTES 912828NP1
DTD 08/02/2010 1.750% 07/31/2015
US TREASURY NOTES 912.828NP1
DTD 08/0Z/2010 1.750% 07/31/2015
US TREASURY NOTES 912828PM6
DTD 12/31/2010 2.125% 12/31/2015
US TREASURY NOTES 912828C40
DTD 03/31/2014 0.375% 03/31/2.016
US TREASURY NOTES 912.82.8QP8
DTD 05/31/2011 1.750% 05/31/2.016
US TREASURY NOTES 912.8280X1
DTD 08/01/2011 1.500% 07/31/2016
US TREASURY NOTES 91282.8LP3
DTD 09/30/2009 3.000% 09/30/2016
US TREASURY NOTES 912828RM4
DTD 10/31/2011 1.000% 10/31/2016
US TREASURY NOTES 912.828RXO
DTD 01/03/2012 0.875% 12/3 1/2.0 16
US TREASURY NOTES 912.828SC5
DTD 01/31/2012.0.875% 01/31/2017
US TREASURY NOTES 912.82.8SC5
DTD 01/31/2012. 0.875% 01/31/2017
US TREASURY NOTES 912828MK3
DTD 02/01/2010 3.125% 01/31/2017
US TREASURY NOTES 912828SC5
DTD 01/31/2012. 0.875% 01/31/2017
US TREASURY NOTES 912.828SM3
DTD 03/31/2012 1.000% 03/31/2017
~ ~;.}t .\j ----~ PF.l\1 Asset Managernent LLC
S&P Moody's Trade
Par Rating Rating Date
100 ,000.00 AA+ Aaa 09/26/13
940,000.00 AA+ Aaa 08/15/13
960,000.00 AA+ Aaa 07/0Z/14
330,000.00 AA+ Aaa 04/04/14
580,000.00 AA+ Aaa 12/20/13
600,000.00 AA+ Aaa 06/0Z/14
915,000.00 AA+ Aaa 03/03/14
600,000.00 AA+ Aaa 06/02/14
995,000.00 AA+ Aaa 02/12/14
50,000.00 AA+ Aaa 02/10/14
250,000.00 AA+ Aaa 09/08/14
740,000.00 AA+ Aaa 01/17/14
1,100,000.00 AA+ Aaa 07/29/14
1,300,000.00 AA+ Aaa 03/20/14
Settle
Date
09/27/13
08/16/13
07/07/14
04/07/14
12/2.3/13
06/05/14
03/04/14
06/05/14
02/14/14
02./11/14
09/09/14
01/2.1/14
07/31/14
03/21/14
Original YTM
Cost at Cost
102,621.09 0.32
965.446.10 0.36
986,137.50 0.2.8
329,651.95 0.43
597,332..03 0.51
613,382..81 0.46
973,188.28 0.51
606,140.63 0.57
999,702.93 0.71
50,2.91.02. 0.68
2.50,654.30 0.76
790,701.56 0.83
1, 102,2.34.38 0.79
1,302,945.31 0.92
For the Month Ending October 31, 2014
Accrued
Interest
442.26
4,157.20
6,873.91
108.79
4,270.77
2,274.46
2,413.19
16.57
2,933.63
110.56
552.82
5,844.09
2,432..40
1,142.86
Amortized
Cost
101,064.92
949,738.91
980,534.33
329,751.62
591,257.02
610,862.48
958,294.41
605,111.93
998,547.13
50,2.2.0.76
250,615.30
777,757.01
1,102,010.29
1,302,353.73
Market
Value
101,195.30
951,235.82
981,300.48
330,386.72 •
592,642.19
611,2.96.80
958,391.02
605,718.60
1,000,674.49
50,2.73.45
251,367.25
780,873.16
1,106,015.90
1,309,241.70
Page 4
m
X ::r
0" .......
)>
"U
Q)
(Q
CD
~
<Xl
0 .....,
(J')
.....>.
== .=:=PF~f ~ Managed Account Detail of Securities Held
CI TY OF SA N JUAN CAPISTRANO -XXXXO H)Q .. "
Security Type/Description S&P Moody's Trade
Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date
U.S. Treasury Bond I Note
US TREASURY NOTES 912828SY7 500,000.00 AA+ Aaa 06/02/14
DTD 05/31/2012 0.625% 05/31/2017
US TREASURY NOTES 912828TG5 5,000.00 AA+ Aaa 07/29/14
DTD 07/31/2012 0.500% 07/31/2017
US TREASURY NOTES 912828TG5 475,000.00 AA+ Aaa 07/02/14
DTD 07/31/2012 0.500% 07/31/2017
Security Type Sub-Total 10,440,000.00
Federal Agency Bond I Note
FFCB NOTES 3133EANJ3 300,000.00 AA+ Aaa 06/15/12
DTD 05/01/2012 0.500% 05/01/2015
FEDERAL HOME LOAN BANK GLOBAL NOTES 313383¥81 1.000,000.00 AA+ Aaa 08/20/13
DTD 08/09/2013 0.375% 08/28/2015
FEDERAL FARM CREDIT BANK BONDS 3133ECB86 1,000,000.00 AA+ Aaa 12/26/12
DTD 12/26/2012 0.420% 10/15/2015
FHLB (EX-CALLABLE) GLOBAL NOTES 3130AOGKO 1,000,000.00 AA+ Aaa 01/06/14
DTD 12/30/2013 0.375% 12/30/2.015
FEDERAL HOME LOAN BANK GLOBAL NOTES 3130AOSD3 245,000.00 AA+ Aaa 09/22/14
DTD 01 /24/2014 0.375% 02/19/2016
FANNIE MAE GLOBAL NOTES 3135GOVA8 400,000.00 AA+ Aaa 08/20/13
DTD 02/15/2013 0.500% 03/30/2016
FANNIE MAE GLOBAL NOTES 3135GOVA8 445,000.00 AA+ Aaa 10/24/14
DTD 02/15/2013 0.500% 03/30/2016
FANNIE MAE GLOBAL NOTES 3135GOVA8 500,000.00 AA+ Aaa 09/25/14
DTD 02/15/2013 O.SOO% 03/30/2016
FHLMC NOTES 3137EACT4 240,000.00 AA+ Aaa 09/26/14
DTD 04/08/2011 2..500% 05/27/2.016
FHLMC NOTES 3137EACT4 950,000.00 AA+ Aaa 02/19/14
DTD 04/08/2011 2.500% 05/27/2016
,:;::..... ..:=-·py~· \ -~
=~ ~ . PF:l\-1 Asset J\1anagement LLC
Settle
Date
06/05/14
07/3 1/14
07/07/14
06/15/12
08/21/13
12/26/12
01/07/14
09/23/14
08/21/13
10/27/14
09/26/14
09/29/14
02/20/14
Original YTM
Cost at Cost
496.796.88 0.84
4,923.63 1.02
467,856.45 1.00
10,640,006.85 0.64
300,000.00 0.50
999,510.00 0.40
1,000,000.00 0.42
999.400.00 0.41
245,159.25 0.33
398,268.00 0.67
446,188.15 0.31
500 ,805.00 0.39
248,088.00 0.46
994,298.50 0.43
For the Month Ending October 31, 2014
Accrued
Interest
1,314.89
6.32
600.20
35,494.92
750.00
656.25
186.67
1,260.42
183.75
172.22
191.60
215 .28
2,566.67
10,159.72
Amortized
Cost
497,229.02
4,929.98
468,590.55
10,578,869.39
300,000.00
999,807.10
1,000,000.00
999,646.90
245,147.32
399,057.64
446,178.90
500,753.34
247,657.07
980,736.19
Market
Value
497,890.50
4,951.17
470,361.15
10,603,815.70
300,504.90
1,001.685.00
1,002,015.00
1,001.414.00
245,277.34
400,728.00
445,809.90
500,910 .00
247,685.28
980,420.90
Page 5
Managed Account Detail of Securities Held For the Month Ending October 31, 2014 -CITY QF SAN JUAN CAPISTRANO -XXXXOlPO
. ....._ ·-..:.------
Security Type/Description S8r.P Moody's Trade Settle Original YTM Accrued Amortized Market
Dated Date/Coupon/ Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value
d I Note
FHLB NOTES 3130A2T97 500,000.00 AA+ Aaa 09/25/14 09/26/14 498,615.00 0.64 229.17 498,681.81 499,005.50
DTD 08/07/2014 0.500% 09/28/2016
FHLB NOTES 3130A2T97 620,000.00 AA+ Aaa 08/06/14 08/07/14 618,605.00 0.61 284.17 618,755.76 618,766.82
DTD OB/07/2014 0.500% 09/28/2016
FNMA NOTES 3135GOJA2 2,050,000.00 AA+ Aaa 09/03/14 09/04/14 2,059,799.00 0.94 256.25 2,059,224.94 2,066,879.70
DTD 03/01/2012 1.125% 04/27/2017
FHLB GLOBAL NOTE (CALLABLE) 3130A1LJ5 700,000.00 AA+ Aaa 04/03/14 04/2B/14 707,847.00 1.24 94.79 703,B62.92 704,B1l.BO
DTD 04/2B/20 14 1.625% 04/2B/20 17
FREDDIE MAC GLOBAL NOTES 3137EADJ5 1,000,000.00 AA+ Aaa 08/13/14 08/14/14 1,000, 700.00 0.9B 2.5B3.33 1,000,650.35 1,001, 723.00
DTD 06/25/2012 1.000% 07/28/2017
FNMA NOTES 3135GOZLO 515,000.00 AA+ Aaa 08/21/14 08/25/14 513,161.45 1.12 4B6.39 513,267.95 514,654.95
DTD 08/25/2014 1.000% 09/27/2017
Security Type Sub-Total 11,465,000.00 11,530,444.35 0.67 20,276.68 11,513,428.19 11,532,292.09
PROCTER & GAMBLE CO CORP NOTES 74271BBZ1 720,000.00 AA-Aa3 08/20/13 OB/23/13 7B9,228.00 0.65 13,192.00 753,744.18 753,994.80
DTD 11/25/2003 4.850% 12/15/2015
CATERPILLAR FINANCIAL SE 14912L457 760 ,000 .00 A A2 08/20/13 08/23/13 790,673.60 1.07 1,678.33 776,784.04 780,849.08
DTD 04/01/2011 2.650% 04/01/2016
m IBM CORP GLOBAL NOTES (EX-cALLABLE) 459200HL8 805,000.00 AA-Aa3 08/20/13 08/23/13 795,879.35 0.88 1,760.94 799,B65.44 B03,794.11
X DTD 05/07/2013 0.450% 05/06/2016
::::J
0" JPMORGAN CHASE & CO GLOBAL NOTES 46625HJA9 760,000.00 A A3 08/20/13 08/23/13 794,656.00 1.52 7,714.00 780,465.28 786,097.64
;::::;: DTD 06/29/2011 3.150% 07/05/2016
)> GENERAL ELEC CAP CORP 36962G6Z2 790,000.00 AA+ A1 08/20/13 08/23/13 793,160.00 1.36 3,587.92 791,874.87 800,102.52
"U DTD 07/12/2013 1.500% 07/12/2016 !ll
<C WELLS FARGO & COMPANY 94974BFL9 800,000.00 A+ A2 08/20/13 08/23/13 799,336.00 1.28 2,805.56 799,605.20 805,409.60 CD
.t>. DTD 07/29/2013 1.250% 07/20/2016
(!)
0 -(J)
.....>. ~· Page 6 .:=:PF\t ' == ~. PFM Asset Management LLC
m >< ~
0'" ;::;:
)>
-u
Ql
<0
CD
(]1
0
0 -0'>
.....>.
~ Managed Account Detail of Securities Held
CITY OF SAN JUAN <tAP:ISTAANO -)Q00<0100.
Security Type/Description S&P Moody's Trade
Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date
Corporate Note
BERKSHIRE HATHAWAY INC GLOBAL NOTES 084670BB3 770,000.00 AA Aa2 08/20/13
DTD 08/15/2011 2.200% 08/15/2016
TOYOTA MTR CRED NOTES 89233P5E2 760,000.00 AA-Aa3 02/19/14
DTD 09/15/2011 2.000% 09/15/2016
Security Type Sub-Total 6,16S,OOO.OO
ificate of Deposit
GOLDMAN SACHS BANK USA 38143AJLO 250,000.00 NR NR 02/08/12
DTD 02/08/2012 1.050% 02/09/2015
DISCOVER BANK 254671GN4 250,000.00 NR NR 09/26/12
DTD 09/26/2012 1.050% 09/28/2015
GE CAPITAL BANK 36160JPD4 250,000 .00 NR NR 05/03/13
DTD 05/03/2013 0 .700% 05/03/2016
CIT BANK (CALLABLE) 17284CEH3 250,000.00 NR NR 05{15/13
DTD 05/15/2013 1.000% 05/15/2017
US BANK NA CINCINNATI (CALLABLE) CD 90333VPF1 745,000.00 AA-Aa3 09/09/14
DTD 09/11/2014 1.375% 09/11/2017
Security Type Sub-Total 1,745,000.00
Managed Account Sub-Total 29,815,000.00
Securities Sub-Total $29,815,000.00
Accrued Interest
Total Investments
..:5 n t ~\\ 5$''·
~ PPM Asset JV1anagetnent LLC
--
Settle
Date
08/23/13
02/24/14
02/08/12
09/26/12
05/03/13
05/15{13
09/11/14
Original YTM
Cost at Cost
795,710.30 1.06
784,259.20 0.74
6,342,902.4S 1.07
250,000.00 1.04
250,000 .00 1.03
250,000.00 0.70
250,000.00 0 .99
743,800.55 1.41
1,743,800.55 1.14
30,257,154.20 0.77
$30,257,154.20 0.77%
For the Month Ending October 31, 2014
Accrued
Interest
3,576.22
1,942.22
36,257.19
604.11
258.90
872.60
1,164.38
1,422.74
4,322.73
96,351.52
$96,351.52
Amortized
Cost
785,539.94
777,797.41
6,265,676.36
250,000 .00
250 ,000.00
250,000.00
250,000.00
743,856.37
1,743,856.37
30,101,830.31
$30,101,830.31
Market
Value
790,432,72
776,594 .60
6,297,275.07
250,393 .50
251,319.25
249,437.25
249,940.50
739,818.53
1,740,909.03
30,174,291.89
$30,174,291.89
$96,351.52
$30,270,643.41
Page 7
m
X
::::J
0" ;::::;:
)>
-u
!l>
(Q
CD
01 .......
0 -(J) .......
Managed Account Fair Market Value & Analytics
CrrY OF SAN JUAN CAPISTRAN O: X>00<0100" -- -
Security Type/Description Next Call Market
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price
U.S. Treasury Bond I Note
US TREASURY NOTES 912828NP1 100,000.00 CITIGRP 101.20
DTD 08/02/2010 1.750% 07/31/2015
US TREASURY NOTES 912828NP1 940,000.00 CITIGRP 101.20
DTD 08/02/2010 1.750% 07/31/2015
US TREASURY NOTES 912828PM6 960,000.00 MERRILL 102.22
DTO 12/31/2010 2.125% 12/31/2015
US TREASURY NOTES 912828C40 330,000.00 MORGANST 100.12
OTO 03/31/2014 0.375% 03/31/2016
US TREASURY NOTES 912828QP8 580,000.00 MERRILL 102.18
OTD 05/31/20111.750% 05/31/2016
US TREASURY NOTES 912828QX1 600,000.00 MORGANST 101.88
DTD 08/01/20111.500% 07/31/2016
US TREASURY NOTES 912828LP3 915,000.00 MORGANST 104.74
om 09/30/2009 3.ooo% 09/30/2016
US TREASURY NOTES 912828RM4 600,000.00 MERRILL 100.95
OTO 10/31/2011 1.000% 10/31/2016
US TREASURY NOTES 912828RXO 995,000.00 MERRILL 100.57
om 01/03/2012 o.875% 12/31/2016
US TREASURY NOTES 912828SC5 50,000.00 MORGANST 100.55
DTO 01/31/2012 0.875% 01/31/2017
US TREASURY NOTES 912828SCS 250,000.00 CITIGRP 100.55
OTO 01/31/2012 0.875% 01/31/2017
US TREASURY NOTES 912828MK3 740,000.00 CITIGRP 105.52
om 02/01/2010 3.125% 01/31/2017
US TREASURY NOTES 912828SC5 1,100,000.00 CITIGRP 100.55
DTO 01/31/2012 0.875% 01/31/2017
US TREASURY NOTES 912828SM3 1,300,000.00 HSBC 100.71
om 03/31/2012 1.ooo% 03/31/2017
US TREASURY NOTES 912828SY7 500,000.00 CITIGRP 99.58
om 05/31/2012 0.625% 05/31/2017
US TREASURY NOTES 912828TG5 5,000.00 MORGANST 99.02
DTO 07/31/2012 0.500% 07/31/2017
US TREASURY NOTES 912828TG5 475,000.00 MORGANST 99.02
OTD 07/31/2012 0 .500% 07/31/2017
§~-:--~
~ PF~f i\sst~t Management LLC
Market
Value
101,195.30
951,235.82
981,300.48
330,386.72
592,642.19
611,296.80
958,391.02
605,718.60
1,000 ,674.49
50,273.45
251.367.25
780,873.16
1,106,015.90
1.309,241.70
497,890.50
4,951.17
470,361.15
Unreal G/L
On Cost
(1.425.79)
(14,210.28)
(4,837.02)
734.77
(4,689.84)
(2,086.01)
(14,797.26)
(422.03)
971.56
(17.57)
712.95
[9,828.40)
3,781.52
6,296.39
1.093.62
27.54
2,504.70
For the Month Ending October 31, 2014
Unreal G/L Effective Duration YTM
Amort Cost Duration to Worst at Mkt
130.38 0.75 0.75 0.15
1.496.91 0.75 0.75 0.15
766.15 1.15 1.15 0.22
635.10 1.41 1.41 0.29
1,385.17 1.55 1.55 0.37
434.32 1.72 1.72 0.42
96.61 1.87 1.87 0.51
606.67 1.98 1.98 0.52
2,127.36 2.14 2.14 0.61
52.69 2.22 2.22 0.63
751.95 2.22 2.22 0.63
3,116.15 2.17 2.17 0.65
4,005.61 2.22 2.22 0.63
6,887.97 2.38 2.38 0.70
661.48 2.55 2.55 0.79
21.19 2.72 2.72 0.86
1,770.60 2.72 2.72 0.86
Page 8
m >< :r
0: .....
)>
"'0
Q)
(Q
CD
01
N
0 _,
(J) .......
Managed Account Fair Market Value & Analytics
• ft ~
CITY OF'SAN JUAN CAPISTRANO ·-X>00<0100
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par Broker
Security Type Sub-Total 10,440,000.00
Federal Agency Bond I Note
FFCB NOTES 3133EANJ3 300,000.00 NEW ACCT
DTD 05/01/2012 0.500% 05/01/2015
FEDERAL HOME LOAN BANK GLOBAL 313383V81 1,000,000.00 N0~1URA
NOTES
DTD 08/09/2013 0.375% 08/28/20 15
FEDERAL FARM CREDIT BANK BONDS 3133ECB86 1,000,000.00 NEW ACCT
DTD 12/26/20 12 0.420% 10/15/2015
FHLB (EX-CALLABLE) GLOBAL NOTES 3130AOGKO 1,000,000.00 HSBC
DTD 12/30/2013 0.375% 12/30/2015
FEDERAL HOME LOAN BANK GLOBAL 3130AOSD3 245,000.00 WELLSFAR
NOTES
DTD 01/24/2014 0.375% 02/19/2016
FANNIE MAE GLOBAL NOTES 3135GOVA8 400,000.00 CITIGRP
DTD 02(15/2013 0.500% 03/30/2016
FANNIE MAE GLOBAL NOTES 3135GOVA8 445,000.00 NOMURA
DTD 02/15/2013 0.500% 03/30/2016
FANNIE MAE GLOBAL NOTES 3135GOVA8 500,000.00 WELLSFAR
DTD 02/15/2013 0.500% 03/30/2016
FHLMC NOTES 3137EACT4 240,000.00 MERRILL
DTD 04/08/2011 2.500% 05 /27/2016
FHLMC NOTES 3137EACT4 950,000.00 MERRILL
DTD 04/08/2011 2.500% 05/27/2016
FHLB NOTES 3130A2T97 500,000.00 MERRILL
DTD 08/07/2014 0.500% 09 /28/2016
FHLB NOTES 3130A2T97 620,000.00 MORGANST
DTD 08/07/2014 0.500% 09/28/2016
FNMA NOTES 3135GOJA2 2,050,000.00 TD SEC U
DTD 03/01/2012 1.125% 04/27/2017
FHLB GLOBAL NOTE (CALLABLE) 3130A1U5 700,000.00 MERRJLL
DTD 04/28/2014 1.625% 04/28/2017
FREDDIE MAC GLOBAL NOTES 3137EADJ5 1,000,000.00 JPMCHASE
DTD 06/25/2012 1.000% 07/28/2017
~ :::: i_>{~ \~ ==== ~ PFM Asset .Management LLC
Next Call Market
Date Price
100.17
100.17
100.20
100.14
100.11
100.18
100.18
100.18
103.20
103.20
99.80
99.80
100.82
04/28/15 100.69
100.17
Market
Value
10,603,81S.70
300,504.90
1,001.685.00
1.002.0 15.00
1,001,414.00
245.277.34
400,728.00
445.809.90
500,910.00
2.47,685.28
980.420.90
499,005.50
618,766.82
2,066,879.70
704,811.80
1,001,723.00
Unreal G/L
On Cost
(36,191.15)
504.90
2,175.00
2,015.00
2,014.00
118.09
2.460.00
(378.25)
105.00
(402.72)
(13,877.60)
390.50
161.82
7,080.70
(3,035.20)
1.023.00
For the Month Ending October 31, 2014
Unreal G/ L Effective Duration YTM
Amort Cost Duration to Worst at Mkt
24,946.31 1.88 1.88 0.52
504.90 0.50 0.50 0.16
1,877.90 0.82 0.82 0.17
2,015.00 0.95 0.95 0.21
1,767.10 1.16 1.16 0.25
130.02 1.30 1.30 0.29
1,670.36 1.41 1.41 0.37
(369.00) 1.41 1.41 0.37
156.66 1.41 1.41 0.37
28.21 1.53 1.53 0.45
(315.29) 1.53 1.53 0.45
323.69 1.90 1.90 0.60
11.06 1.90 1.90 0.60
7,654.76 2.45 2.45 0.79
948.88 0.61 0.49 1.34
1.072.65 2.69 2.69 0.94
Page 9
m >< ::r
5!. -)>
-o
Q)
(Q
CD
U1
VJ
0 -(J)
"'W!!-Managed Account Fair Market Value & Analytics -----CITY OF SAN JUAN CAPISTRAN@ -XXXXOlOO
Security Type/Description
Dated Date/Coupon/Maturity
Federal Agency Bond I Note
FNMA NOTES
OTD 08/25/2014 1.000% 09/27/2017
Security Type Sub-Total
Corporate Note
PROCTER & GAMBLE CO CORP NOTES
DTD 11/25/2003 4.850% 12/15/2015
CATERPILLAR FINANCIAL SE
DTD 04/01/2011 2.650% 04/01/2016
IBM CORP GLOBAL NOTES (EX-CALLABLE)
DTD 05/07/2013 0.450% 05/06/2016
JPMORGAN CHASE & CO GLOBAL NOTES
DTD 06/29/2011 3.150% 07/05/2016
GENERAL ELEC CAP CORP
DTD 07/12/2013 1.500% 07/12/2016
WELLS FARGO & COMPANY
DTD 07/29/2013 1.250% 07/20/2016
BERKSHIRE HATHAWAY INC GLOBAL
NOTES
DTD 08/15/2011 2.200% 08/15/2016
TOYOTA MTR CRED NOTES
DTD 09/15/20112.000% 09ll 5/2016
Security Type Sub-Total
Certificate of Deposit
GOLDMAN SACHS BANK USA
DTD 02/08/2012 1.050% 02/09/2015
DISCOVER BANK
DTD 09/26/2012 1.050% 09/28/2015
GE CAPITAL BANK
DTD 05/03/2013 0.700% 05/03/2016
CUSIP Par Broker
3135GOZLO 515,000.00 MORGANST
11,465,000.00
74271BBZ1 720,000.00 RBC CAP
14912L4S7 760,000.00 MERRILL
459200HL8 805,000.00 BNP PAR!
46625HJA9 760,000.00 STIFEL
36962G6Z2 790,000.00 WELLSFAR
94974BFL9 800,000.00 WELLSFAR
084670BB3 770,000.00 WELLSFAR
89233P5E2 760,000.00 BARCLAYS
6,165,000.00
38143AJLO 250,000.00 NEW ACCT
254671GN4 250,000.00 NEW ACCT
36160JPD4 250,000.00 NEW ACCT
Next Call Market
Date Price
99.93
104.72
102.74
99.85
103.43
101.28
100.68
102.65
102.18
100.16
100.53
99 .77
Market
Value
514,654.95
11,532,292.09
753,994.80
780,849.08
803,794.11
786,097.64
800,102.52
805.409.60
790,432.72
776,594.60
6,297,275.07
250,393.50
251.319.25
249.437.25
--" .;::::ff!;=:--.
::=i""L·\: = . ~ ~ PFl\1 Asset Management LLC
Unreal G/L
On Cost
1,493.50
1,847.74
(35,233.20)
(9,824.52)
7,914.76
(8,558.36)
6,942.52
6,073.60
(5,277.58)
(7,664.60)
( 45,627 .38)
393.50
1,319.25
(562.75)
For the Month Ending October 31, 2014
Unreal G/L Effective Duration YTM
Amort Cost Duration to Worst at Mkt
1,387.00 2.85 2.85 1.02
18,863.90 1.65 1.64 0.57
250 .62 1.08 1.08 0.62
4,065 .04 1.39 1.39 0 .70
3,928.67 1.50 1.50 0.55
5,632.36 1.62 1.62 1.08
8,227.65 1.67 1.67 0.74
5,804.40 1.69 1.69 0.85
4,892.78 1.75 1.75 0.70
(1,202.81) 1.84 1.84 0.82
31,598.71 1.57 1.57 0.76
393.50 0.28 0 .28 0.72
1,319.25 0.91 0.91 0.46
(562.75) 1.50 1.50 0.84
Page 10
m
X
~
0"
::::+
)>
"U
OJ co
CD
01
~
0 -(J)
== .:=PF)..
~ Managed Account Fair Market Value & Analytics ---CITY OF SAN JUAN CAPISTRANO->006<0100
...; ....
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par Broker
Certificate of Deposit
CIT BANK (CALLABLE) 17284CEH3 250,000.00 NEW ACCT
DTD 05/15/2013 1.000 % 05/15/2017
US BANK NA CINCINNATI (CALLABLE) CD 90333VPF1 745 ,000.00 US BANK
DTD 09/11/2014 1.375% 09/11L20 17
Security Type Sub-Total 1,745,000.00
Managed Account Sub-Total 29,81S,OOO.OO
Securities Sub-Total $29,815,000.00
Accrued Interest
Total Investments
Next Call Market
Date Price
11/15/14 99.98
08/11/1 7 99.30
Market
Value
249,940.50
739,818.53
1,740,909.03
30,174,291.89
$30,174,291.89
$96,351.52
$30,270,643.41
-" .:::;=:.....
.-p::''\• §'·"···
~ P F ~f Asg et J\1an a g ement LLC
Unreal G/l
On Cost
(59 .50)
(3,982.02)
(2,891.52)
(82,862.31)
($82,862.31)
For the Month Ending October 31, 2014
Unreal G/ L Effective
Amort Cost Duration
(59.50) 2.53
(4,037 .84) 2.84
(2,947.34) 1.96
72,461.58 1.73
$72,461.58 1.73
Duration YTM
to Worst at Mkt
2.53 0.98
2.84 1.60
1.96 1.11
1.73 0.62
1.73 0.62%
Page 11
Managed Account Security Transactions & Interest For the Month Ending October 31, 2014
---CITY OF SAN JLJAN CAPISTRAN0 -XXXX0100
Transaction Type Principal Accrued Realized G/L Realized G/L
10/24/14 10/27/14 FANNIE MAE GLOBAL NOTES 3l35GOVAB 445,000.00 (446.188.15) (166.88) (446,355.03)
DTO 02/15/2.013 O.SOO% 03/30/2016
Transaction Type Sub-Total 445,000.00 ( 446,188.15) (166.88) (446,355.03)
INTEREST
10/01/14 10/01/14 CATERPILLAR FINANCIAL SE 14912L4S7 760,000.00 0.00 10,070.00 10,070.00
DTD 04(01(2011 2.650% 04/01/2016
10/15/14 10/15/14 FEDERAL FARM CREDIT BANK BONDS 3133ECB86 1,000,000.00 0.00 2,100.00 2,100.00
DTD 12/26/2012 0.420% 10/15/2015
10/20/14 10/20/14 AMERICAN EXPR CENTURION 02587DEU8 200 ,000 .00 0.00 1.403.84 1,403.84
DTD 10/20/20111.400% 10/20/2014
10/24/14 10/24/14 INDEPENDENCE BK OWENSBOR 45340KCL1 250,000.00 0.00 626.71 626.71
DTD 10/24/2012 0.500% 10/24/2014
10/27/14 10/27/14 FNMA NOTES 3135GOJA2 2,050,000.00 0.00 11 ,531.25 11,531.25
DTD 03(01/2012 1.125% 04/27/2017
10/28/14 10/28/14 FHLB GLOBAL NOTE (CALLABLE) 3130A1LJ5 700,000.00 0.0 0 5,687.50 5,687.50
DTD 04/28/2014 1.625% 04/28/2017
10/31/14 10/31/14 US TREASURY NOTES 912828RM4 600,000.00 0.00 3,000.00 3,000.00
DTD 10/31/2011 1.000% 10/31/2016
Transaction Type Sub-Total 5,560,000.00 0.00 34,419.30 34,419.30
MATURITY
m 10/20/14 10/20/14 AMERICAN EXPR CENTURION 02587DELJ8 200.000.00 200.000 .00 0.00 2.00,000.00 (2.420.00) 0.00
X DTD 10(2.0/20111.400% 10/20/2014
:r 10/24{14 10/2.4/14 INDEPENDENCE BK OWENSBOR 45340KCL1 250,000 .00 250,000.00 0.00 2.50,000.00 o.oa 0.00
0" DTD 10/24/2012 0.500% 10/24/20 14 ;::::;:
)> Transaction Type Sub-Total 450,000.00 450,000.00 0.00 450,000.00 (2,420.00) o.oo
\J
Q) Managed Account Sub-Total 3,811.85 34,252.42 38,064.27 (2,420.00) o.oo (Q
(I)
01 Total Security Transactions $3,811.85 $34,252.42 $38,064.27 ($2,420.00) $0.00
01
0 -(J) ....... ~ Page 12 =:PF :\t
~ ~ PFM Asset Management LLC
Im portant Discl os.ures
This statement is for general information purposes only and is not
intended to provide specific advice or recommendations . PFM Asset
Management LLC ("PFM") is an investment advisor registered with the
Securities and Exchange Commission, and is required to maintain a
written disclosure statement of our background and business experience.
If you would like to receive a copy of our current disclosure statement,
please contact Service Operations at the address below.
Proxy Voting PFM does not normally receive proxies to vote on behalf of
its clients. However, it does on occasion receive consent requests . In the
event a consent request is received the portfolio manager contacts the
client and then proceeds according to their instructions. PFM's Proxy
Voting Policy is available upon request by contacting Service Operations
at the address below.
Questions About an Account PFM's monthly statement is intended to
detail our investment advisory activily as well as the activity of any
accounts held by clients in pools that are managed by PFM . The custodian
bank maintains the control of assets and executes (i .e., settles) all
investment transactions . The custodian statement is the official record of
security and cash holdings and transactions . PFM recognizes that clients
may use these reports to facilitate record keeping and that the custodian
bank slatement and the PFM stalement should be reconciled and
differences resolved. Many custodians use a settlement date basis which
may result in the need to reconcile due to a timing difference .
Account Control P FM does not have the authority to withdraw funds from
or deposit funds to the custodian. Our clients retain responsibility for their
internal accounting policies; implementing and enforcing internal controls
and generating ledger entries or otherwise recording transactions .
Market Value Generally, PFM 's market pr ices are derived from closing bid
prices as of the last business day of the month as supplied by Interactive
Data, Bloomberg or Telerate. Where prices are not available from
generally recognized sources the securities are priced using a yield-based
matrix system to arrive at an estimated market value ~ Prices that fall ~ between data points are interpolated. Non-negotiable FDIC-insured bank
~ certificates of deposit are priced at par. Although PFM believes the prices 0: to be reliable, the values of the securities do not always represent the
;:::;.: prices at which the securities could have been bought or sold. Explanation
)> of the valuation methods for money market and TERM funds is contained
in the appropriate fund information statement. "Jr Amortized Cost The original cost of the principal of the security is
(Q adjusted for the amount of the periodic reduction of any discount or
('[) premium from the purchase dale until the date of the report. Discount or
01 premium with respect to short term securities (those with less than one
0> year to maturity at time of issuance) is amortized on a straightline basis
0 Such discount or premium with respect to longer term securities is
-amortized using the constant yield basis.
0> .......
Importa nt Disclosures
Tax Reporting Cost data and realized gains /losses are provided for
informational purposes only. Please review for accuracy and consult your
tax ad visor to determine the tax consequences of your security transactions .
PFM does not report such information to the IRS or other taxing authorities
and is not responsible for the accuracy of such information that may be
required to be reported to federal, state or other taxing authorities
Financial Situation In order to better serve you, PFM should be promptly
notified of any material change in your investment objective or financial
situation .
Callable Securities Securities subject to redemption prior to maturity may
be redeemed in whole or in part before maturity, which could affect the yield
represented .
Portfolio The securities in this portfolio, including shares of mutual funds,
are not guaranteed or otherwise protected by PFM, the FDIC (except for
certain non-negotiable certificates of deposit) or any government agency.
Investment in securities involves risks, including the possible loss of the
amount invested .
Rating Information provided for ratings is based upon a good faith in quiry of
selected sources , but its accuracy and completeness cannot be guaranteed,
Shares of some money market and TERM funds are marketed through
representatives of PFM's wholly owned subsidiary, PFM Fund Distributors,
Inc. PFM Fund Distributors, Inc. is registered w ith the SEC as a
broker/dealer and is a member of the Financial Industry Regulatory
Authority ('FINRA') and the Municipal Securities Rulemaking Board
("MSRB"). You may reach the FINRA by calling the FINRA Regulator Public
Disclosure Hotline at 1-888-289-9999 or at the FINRA Regulation Internet
website address www.nasd.com . A brochure describing the FINRA
Regulation Public Disclosure Program is also available from the FINRA
upon request,
Key Terms and Definitions
Dividends on money market funds consist of interest earned, plus any
discount ratably amortized to the date of maturity , plus all realized gains and
losses on the sale of securities prior to maturity, less ratable amortization of
any premium and all accrued expenses to the fund Dividends are accrued
daily and may be paid either monthly or quarterly. The monthly earnings on
this statement represent the estimated dividend accrued for the month for
any program that distributes earnings on a quarterly basis. There is no
guarantee that the estimated amount will be paid on the actual distribution
date.
Current Yield is the net change, exclusive of cap ital changes and income
other than investment income, in the value of a hypothetical fund account
with a balance of one share over the seven-day base period including the
sta tement date, expressed as a percentage of the value of one share
(normally $1 ,00 per share) at the beginning of the seven-day period. This
resulting net change in account value is then annualized by multiplying it by
365 and dividing the result by 7. The yields quoted should not be considered
a representation of the yield of the fund in the future, since the yield is not
fixed,
Account Statement
For the Month Ending October 31, 2014
Average matun'ty represents the average maturity of all securities and
investments of a portfolio, determined by multiplying the par or
principal value of each security or investment by its maturity (day s or
years), summing the products, and dividing the sum by the total
principal value of the portfolio. The stated maturity date of mortgage
backed or callable securities are used in this statement. However lhe
actual maturity of these securities could vary depending on the level or
prepayments on the underlying mortgages or whether a callable
security has or is still able to be called.
Monthly distribution yield represents the net change in the value of one
share (normally $1 ,00 per share) resulting from all dividends declared
during the month by a fund expressed as a percentage of the value of
one share at the beginning of the month. This resulting net change is
then annualized by multiplying it by 365 and dividing it by the number of
calendar days in the month.
YTM at Cost The yield to maturity at cost is the expected rate of return,
based on the original cost, the annual interest receipts, maturity value
and the time period from purchase dale to maturity, stated as a
percentage, on an annualized basis .
YTM at Markel The yield to maturity at market is the rate of return,
based on the current market value , the annual interest receipts,
maturity value and the time period remaining until maturity, stated as a
percentage, on an annualized basis.
Managed Account A portfolio of investments managed discretely by
PFM according to the client's specific investment policy and
requirements. The investments are directly owned by the client and
held by the client's custodian,
Unseltled Trade A trade which has been executed however the final
consummation of the security transaction and payment has not yet
taken place.
Please review the detail pages of this statement carefully, If you think
your stalement is wrong, missing account information, or if you need
more information about a transaction , please contact PFM within 60
days of receipt~ If you have ather concerns or questions regarding your
account you should contact a member of your client management team
or PFM Service Operations at lhe address below.
PFM Asset Management LLC
Attn: Service Operations
One Keystone Plaza , Suite 300
N. Front & Market Sts
Harrisburg, PA 17101
m
X
;;:!.
0'" ;:+
)>
""U
tl)
<0
(1)
01
~
0
-+1
(j)
->.
City of San Juan Capistrano
Portfolio Summary
Report Format: By Totals
Group By: Security Sector
Portfolio/Report Group: Successor Agency of the SJC CRA
As of 10/31/2014
Face
Description CUSIP/Tic ker Amount/Shares
Certificate Of Deposit 1,000,000.00
Local Government 1,120,533.57 Investment Pool
US Agency 2,000,000.00
Cost Value Book Value Market Value
1,000,000.00 1,000,000.00 1,000,202.25
1,120,533.57 1,120,533.57 1,120,533.57
1,999,250.00 1,999,766.34 2,000,549.00
Total I Average 4,120,533.57 4,119,783.57 4,120,299.91 4,121,284.82
YTM@ Accrued Days To 0/o of
Cost Interest Maturity Portfolio ------------
0.463 126.71 250 24.27
--
0.261 0.00 1 27.20
-----
0.201 1,250.41 134 48.53
=
0.281 1,377.12 126 100
m
X
:T
CT
;::+
)>
'lJ
Q)
(0
ct>
(J'J co
0 -0') _,
City of San Juan Capistrano
Monthly Change in Portfolio
Report Format: By Transaction
Group By: Security Sector
Portfolio/Report Group: successor Agency of the SJC CRA
Begin Date: 9/30/2014, End Date: 10/31/2014
Settlement
Description CUSIP /Ticker Date
CERTIFICATE OF DEPOSIT
BBCN Bank 0.5 073296AZ8 11/18/2013 8/18/2015
Farmers &
Merchants Bank CD 7265 0.15 6/25/2014
12/24/2014
Independence
Bank 1.05 CD528059049 6/21/2013
6/21/2016
Sub
Total/ Average
Certificate Of
Deposit
------LOCAL GOVERNMENT INVESTMENT POOL
Beginning
Cost Value
250,000.00
500,000.00
250,000.00
1,000,000.00
Buy Sell Ending Cost
Principal Principal Value --------
0.00 0.00 250,000.00
0.00 0.00 500,000.00
0 .00 0.00 250,000.00
---
o.oo 0.00 1,000,000.00
LAIF LGIP LAIFCRA 3/31/2009 1,118,593.71 1,939.86 0.00 1,120,533.57
---
Sub
Total/ Average
Ending MV
250,202.25
500,000.00
250,000.00
1,000,202.25
1,120,533.57
Local
Government 1,118,593.71 1,939.86 o.oo 1,120,533.57 1,120,533.57
Investment
Pool
US AGENCY
FFCB 0.22 3133EDBE1 7/9/2015 12/20/20 13 999,500.00 0.00 0.00 999,500.00 1,000,525.00
FHLB 0.125
11/18/2014 3130AOC81 11/19/2013 999,750.00 0.00 0.00 999,750.00 1,000,024.00
Sub
Total/ Average 1,999,250.00 0.00 o.oo 1,999,250.00 2,000,549.00
US Agency
Total/
Average 4,117,843.71 1,939.86 0.00 4,119,783.57 4,121,284.82
Interest
Earned
During Ending Credit Credit
Period-YTM @ Rating Rating Maturity
Interest/Dividends MV Cost 1 2 Date ------
102.74 106.16 0.500 NR NR 8/18/2015
61 .64 63.69 0.150 NR NR 12/24/2014
215 .85 223.04 1.050 NR NR 6/21/2016
-------
380.23 392.89 0.463
1,939.86 1,939.86 0 .261 NR NR N/A ---
1,939.86 1,939.86 0.261
0.00 189.44 0.252 Moodys-S&P-AA+
Aaa 7/9/2015
0.00 107.64 0.150 ~~~dys-S&P-AA+ 11/18/2014
---------
0.00 297.08 0.201
===
2,320.09 2,629.83 0.281
Ending
Days To
Maturity
291
54
599
250
1
251
18
134
126
m
X
::T
0"
;:::t:
)>
""0
!l>
(Q
CD
(.J1
(0
0 -(J) ......
City of San Juan Capistrano
Portfolio Summary
Report Format: By Totals
Group By: Security Sector
Portfolio/Report Group: San Juan Capistrano Housing Authority
As of 10/31/2014
Face
Description CUSIP/Ticker Amount/Shares Cost Value
Certificate Of Deposit 575,000.00 575,000.00
Local Government 1,126,101.34 1,126,101.34 Investment Pool
us Agency 925,000.00 924,856.25
US Treasury 1,SOO,OOO.OO 1,500,747.50
Book Value Market Value
575,000.00 575,022.28
1,126,101.34 1,126,101.34
924,883.88 924,525.28
1,500,621.37 1,501,132.94
Total I Average 4,126,101.34 4,126,705.09 4,126,606.59 4,126,781.84
YTM@ Accrued Days To 0/o of
Cost Interest Maturity Portfolio
0.604 1S7.87 366 13.93
0.261 0.00 1 27.29
0.228 401.31 361 22.41
0.244 578.65 446 36.37
0.295 1,137.83 294 100
City of San Juan capistrano
Monthly Change in Portfolio
Report Format: By Transaction
Group By: Security Sector
Portfolio/Report Group: San Juan Capistrano Housing Authority
Begin Date: 9/30/2014, End Date: 10/31/2014
Interest
Earned
During Ending Credit Credit Ending
Settlement Beginning Buy Sell Ending Cost Period~ YTM@ Rating Rating Maturity Days To
Description CUSIP /Ticker Date Cost Value Principal Principal Value Ending MV Interest/Dividends MV Cost 1 2 Date Maturity --------
CERTIFICATE OF DEPOSIT
Farmers and
Merchants Bank CD16646806 9/18/2014 250,000.00 0.00 0.00 250,000.00 250,000.00 51.37 53.08 0.250 None None 9/18/2015 322
0.25 9/18/2015
GE Capital Bank 36160JYL6 0.55 4/13/2015 10/11/2013 75,000.00 0.00 0.00 75,000.00 75,022.28 206.82 35.04 0.550 NR NR 4/13/2015 164
Independence
Bank 0.9 CD526841368 10/6/2014 0.00 125,000.00 0.00 125,000.00 125,000.00 0.00 77.05 0.900 None None 10/6/2015 340
10/6/2015
Independence
Bank 1.05 CD528450287 6/21/2013 125,000.00 0.00 0.00 125,000.00 125,000.00 107.92 111.52 1.050 NR NR 6/21/2016 599
6/21/2016 -------------
Sub
Total/ Average 450,000.00 125,000.00 0.00 575,000.00 575,022.28 366.11 276.69 0.604 366 Certificate Of
Deposit
-LOCAL GOVERNMENT INVESTMENT POOL
Local Agency
Investment LA! FHA 6/19/2013 1,125,807.77 293.57 0.00 1,126,101.34 1,126,101.34 293.57 293.57 0.261 NR NR N/A 1
Fund LG!P -----------------
Sub
Total/ Average
Local 1,125,807.77 293.57 0 .00 1,126,101.34 1,126,101.34 293.57 293.57 0 .261 1 Government
Investment
Pool
m ----------------------------
X US AGENCY
::r FFCB 0.21 0.210 S&P-AA+ ~:dys-0" 11/27/2015-14 3133EDM82 6/26/2014 150,000.00 0.00 0.00 150,000.00 149,923.95 0.00 27.13 11/27/2015 392
;:::;:
)> FHLB 0.125 3130A2SJ6 8/27/2014 624,856.25 0.00 0.00 624,856.25 624,696.88 0.00 67.27 0.150 S&P·AA+ Moodys-7/30/2015 272 7/30/2015 Aaa -o
o. 570 Moodys-Q) FHLB 0.57 3130A2AD8 7/16/2014 150,000.00 0.00 0.00 150,000.00 149,904.45 0.00 71 .25 S&P·AA+ 9/30/2016 700
(Q 9/30/2016-14 Aaa
CD -----------------
(J) Sub
Total/ Average 924,856.25 0.00 0.00 924,856.25 924,525.28 0.00 165.65 0.228 361 0 US Agency
0 ...... -·
(J) US TREASURY
......
m
X =r
0" ;:::;:
)>
"'U
Q)
(.Q
CD
(J)
....>.
0 -(J)
....>.
Description
T-Note 0 .25
10/15/2015
T-Note 0.25
4/15/2016
T-Note 0.375
1/31/2016
Sub
Total/Average
US Treasury
Total/
Average
Settlement
CUSIP /Ticker Date
912828TT7 8/27/2014
912828UW8 8/27/2014
912828841 8/27/2014
Beginning Buy Sell Ending Cost
Cost Value Principal ~ Value Ending MV
500,625.00 0.00 0.00 500,625.00 500,508.00
499,185.00 0 .00 0.00 499,185.00 499,648.44
500,937.50 0.00 0.00 500,937.50 500,976.50
1,500,747.50 0.00 0 .00 1,500,747.50 1,501,132.94
4,001,411.52 125,293.57 0 .00 4,126,705.09 4,126,781.84
Interest
Earned
During Ending Credit Credit Ending
Period-YTM@ Rating Rating Maturity Days To
Interest/Dividends MV Cost 1 2 Date ~ -------------625.00 106.18 0.140 S&P-AAA Moodys-10/15/2015 349
Aaa
625.00 106.18 0.350 S&P-AAA Moodys-Aaa 4/15/2016 532
0.00 157.95 0.243 S&P-AAA Moodys-Aaa 1/31/2016 457
-------------
1,250.00 370.31 0.244 446
------
1,909.68 1,106.22 0.295 294
City of San Juan Capistrano
Finance Department
Response to RFP
BANKING AND RELATED SERVICES
#3 -lockbox Services
Submission Date:
2.20.2015
Submitted By:
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
Ph: 562.696.4843
www.rtlawrence.com
February 20, 2015
Ms. Michelle Bannigan
Assistant Finance Director
Cover Letter
City of San Juan Capistrano Finance Department
32400 Paseo Adelanto
San Juan Capistrano, CA 92675-3603
Dear Ms. Bannigan,
The following is in response to your Request for Proposal for Banking and Related Services,
specifically for Service #3 -Lockbox Services, and is submitted for consideration by:
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
Contact: Mrs. Sheila Andres
Phone: 562-696-4843 ext. 102
Email: Sheila.Andres@rtlawrence.com
Statement of interest and declaration of qualifications:
RT Lawrence Corporation (RTL) is interested in continuing the service contract with the City of
San Juan Capistrano (SJC) as outlined in the RFP for Lockbox Services. We are confirming
receipt of all addenda, specifically Addendum No. 1 dated 01/28/2015 and Addendum No. 2
dated 01/29/2015, issued as part of this RFP and that our response/proposal to RFP is valid for
180 days from 02/20/2015, RFP response/proposal due date.
We fully understand your requirements, including all of the terms and conditions presented in
your RFP and corresponding addenda, and we have NO exceptions to your RFP stated
objectives. Our lockbox services, which incorporates full image-based processing, including
web-based image review capabilities that put "control" back in your hands and internet image
search and retrieval, is an excellent fit for your current and future payment processing needs.
Some of the salient points or aspects and benefits of our proposed service solution is as follows:
1) As a software developer and a systems integrator company, RTL is highly qualified and
experienced in providing payment-processing services to utilities and government agencies.
Our services are unique and that our system is totally image-based, thus providing SJC the
"look and feel and benefits" of having the system at the City, except that RTL will be
providing the equipment and labor at our processing center.
2) SJC is a current RTLockbox client. Therefore, we are very familiar and experienced with
SJC's payment transactions and types, payment volumes and processing requirements.
There is no new operation setup or implementation process needed as we can continue
7740 Painter A1>enue, Suite 100, Whittier, Ca l(fornia 90602 -t• tel: 56Z/696-4843 fax: 866/330-3495
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 2 of 43
Cover Letter
with existing lockbox operations for SJC with no ramp-up delay or processing "learning
curve" to deal with.
3) We also are very experienced with and currently interface with SJC's utility billing software,
Advanced Utility Systems.
4) The design and structure of our image-based lockbox services allows us to offer unique web
access to extreme "exception" items for the City's immediate review and decision as
opposed to the alternative of mailing items back to the City for handling causing a delay in
their process, posting and deposit to the bank. We offer the ability to easily search, retrieve
images and data of payment documents via the Internet as a standard part of our service
offering. This allows immediate visibility of your payments and processing control over
items that require more in-depth research that can only be accomplished with access to the
City's utility management system .
5) We have the ability to image capture all letters and correspondence sent by customers and
to merge them with the payment stub and check documents they came with for easy image
search and retrieval.
6) We currently provide same-day deposit and comply with SJC's daily transmission cutoff time
with no problem.
7) We have provided pricing for our lockbox services. Our fee schedule of services covers all
costs associated to our lockbox.
8) Our lockbox transaction fees are the same regardless of whether the payments balance or
not.
9) We are the developer of RTLFiRST, which is the remittance processing system we use for
our lockbox operations. That means we have full control over the system and the
advantage to quickly add features to adapt to client's specific requirements, if needed.
RTLFiRST is also designed on the concept of "No Programming Required." We can easily
and quickly facilitate changes or enhancements to SJC's existing operations as needed
without long-drawn out delays.
10) The RTLockbox operations support Check 21 electronic deposit processing.
We truly appreciate your interest in RT Lawrence Corporation and are proud to have SJC as part
of our family of existing customers. Thank you for considering our proposal of services, and we
hope to continue our service relationship with the City of San Juan Capistrano.
Sincerely
Sheila Andres
Director-Sales
7740 Painter Avenue, Suite 100 , Whittiel~ Cal~fornia 90602 -t• tel: 562/696-4843 fax: 866/330-3495
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 3 of 43
Section A
Table of Contents
SECTION DESCRIPTION
Cover Letter
A Table of Contents
B Organization & General Information
1 Line-for-Line Response to RFP Section B
2 About RTL
3 Lockbox Contact List
C References
D Lockbox Receipt Processing
1 Line-for-Line Response to RFP Section D
2 RTLockbox Services Description Document
E Security Measure and Disaster Recovery Plan
1 Security
2 Disaster Recovery
F Implementation Plan
G Lockbox Services Bid Form
1 Exhibit B -Lockbox Services Bid Form (In Separate MS Excel File)
2 RTLockbox Services Proposal
H Service Enhancement and Industry Best Practices
1 Line-for-Line Response to RFP Section H
Appendices
A Financial Capacity
B Disclosure
C Personal Services Agreement
EXHIBIT B-Page 4 of 43
Section B
Organization and General Information
5. SERVICE #3-LOCKBOX SERVICE
b. Proposal to include the following tabs:
• Tab A-Table of Contents
• Tab B -Organization and General Information. Please provide the
following information in this section:
~ General overview of the firm's and lockbox services unit, including
location of office, processing center and hour of operation.
Please refer t o the "About RTL" document found in Section B:
Organization and Genera! Informat ion response to RFP.
~ Provide the names of individuals who will be working on the
proposed services and their areas of responsibility. Include their
specific experience relatives to the request for proposal
requirements and their contact numbers and e-mail addresses.
Please refer t o the "Lockbox Contact List" document found in Section B:
Organization and General Information response to the RFP
~ Describe your firm's approach to keep your product line
competitive and develop new services.
As the developers of RTLFiRST, the system we use for our !ockbox
service processing, new feature en ha ncements ar e conti n uous ly being
added to the system. These features and our product development li st
come from existing customer feedback which helps in the ongoing
deve lopment of the applica tion and maintaining its competitive
advantage to our comparable systems. As these new sy stem
enhancements and features are incorporated into RTLFiRST, their
capabilities are readily made available t o ou r lockbox clien t s for their
ut ilization, if n eeded and benefits. One example is that of our ILP ,
Intelligent List Processing module which offers new an d enh anced
capabiliti es for our wholesale clients and their operations.
Additi onal ly, we are always strategically looking f or new and improved
ways of doing t hings with a constant focus on being a single-source for
all your payment processing needs. The result of the faithfu l effort has
produced viable service s and funct ionalities such as Disaster Protection
Services, Remote Verification Services and automated file upload and
download capa bil ities, all of which are cu rrently availab le.
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 5 of 43
Section B
Organization and General Information
Company Profile
Company Ownership:
Corporate Office Location:
(Processing Center)
Hours of Operations:
Size of Firm:
ABOUT RTL
RT Lawrence Corporation
Founded March 15
\ 1992
Incorporated in the state of CA on February 8th, 1995
7740 Painter Avenue
Suite 100
Whittier, CA 90602
Phone: (562) 696-4843
FAX: (866) 330-3495
Web-Site: www.rtlawrenc e.com
Monday through Friday
8:00 am to 5:00 pm PST /local time zone
RT Lawrence is a company of sixty-five employees, management and staff. All members
of the company are specialized in the business delineated in your RFP ---Lockbox
Services and related functions such as ACH/Check 21, remittance processing solutions,
remote office systems, internet payments and credit card processing represent 100% of
our company focus .
Our business is an image-based payment processing solutions and services, the software
development and systems integration of, and most importantly, customer service. RTL
develops and supports all of the products and services proposed within. We are not
dependant on any other software developers for the enrichment and support of our
solutions, nor are we dependent on subcontractors or outside firms for the
management and day-to-day activities of our lockbox service operations.
The company has grown at a positive rate over the past years. RTL does business across
the entire United States and Canada, of which a significant number of our clients are
utilities, insurance companies, non-profit organizations and public sector government
agencies.
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT 8-Page 6 of 43
Section B
Organization and General Information
History/Qualifications/Financial Solvency
RT Lawrence Corporation has been in the technology business providing leading edge
automated solutions for over 20 years. We have been providing image-based solutions from
day one and started out in the general imaging industry. Within the past twenty years, RTL
shifted its focus to the financial industry, which has become a major cornerstone of our
business. Our main business goal has been to be a single source solution provider for all of our
Client's payment processing needs, which include in-house remittance processing systems,
backend imaging archival solutions, lockbox services, ACH/Check 21 check conversion services,
credit card payment processing services, phone and internet payment solutions, and over-the-
counter systems.
RT Lawrence Corporation is a privately held corporation headed by a management group
consisting of a CEO, CFO, and Corporate Secretary. The organization consists of three distinct
business units: 1) remittance solutions and software development, 2) lockbox and outsourced
payment processing services, and 3) E-Payments, which consists of electronic check and credit
card processing services. All of our corporate staff, within their specific roles and functions, are
positioned to support our company's strategic focus in system development and end-user
support and client services. We are very much a "do-it-yourself" type of organization and do
not use independent contractors for the implementation of our systems or services.
Financially, annual gross sales have reflected solid profitability over the years, and RTL has
never, in its entire existence, been a party to any litigation.
RTL has an excess of 160+ clients across the United States and Canada. Approximately 100 of
which are utilities and public sector or city and county government agencies . We have 10 out
of our total utility and municipal utility client-base that outsources to our lockbox. 85 of our
existing remittance clients have implemented Check 21 electronic deposit and a number of
them have availed of our credit card processing services.
The RTLockbox Business Unit not only specializes in lockbox services, but Disaster Protection
and Remote Verification Services as well. For our lockbox services, we are fully equipped with
high-speed transports, mail extraction machines, mail pickup services, and payment processing
staff with a solid strategy for expansion and growth as payment processing volumes increase.
Our lockbox operation is the catalyst for our disaster protection and remote verification
services. These services are rendered by our existing RTLFiRST remittance clients for their DR
(disaster recovery) or additional data capture needs. RTL has full control, ownership, and direct
management of our lockbox operations. We do not use subcontractors or third party firms for
our services.
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 7 of 43
Section B
Organization and General Information
Our experience and expertise in technology won us the exclusive opportunity to be among the
few vendors involved in the ACH pilot with NACHA for electronic check conversion, thus
awarding us the clout of being one of the first true ACH processors in the industry. Our ATMS
Network and ACH Solution Suite, with its unique ACH transaction management and reporting
capabilities, is one of the most comprehensive in the market. Our E-payment services extend to
include Check 21 Image Exchange capabilities. With our strategic efforts to stay in the fore-
front, we were one of the first to facilitate ICL deposits with our clients' banks. Our Check 21
module is embedded with the fundamental features that offer productive and efficient ICL
deposit processing, inclusive of automated return file handling. The financial institutions, which
we process ACH/Check 21 transactions through, are JP Morgan Chase, Bank of America, Union
Bank of California, Wells Fargo, and Bank of the West to name a few.
Credit card payment processing services is also another offering provided by our E-Payment
Business unit. PayChannel is our credit card gateway that is Visa and MasterCard as well as PCI
DSS level 1 certified. We have the ability to process credit card transactions from various
originating sources, such as mail, web, phone, over-the-counter, and re-occurring.
We are leaders in integration of remittance technology, over-the-counter systems, image
archival, and internet-based applications and have provided seamless solutions that meet our
clients' specific business and automation needs. Our lockbox customers benefit from our
experience and understanding of payment processing requirements across vertical markets.
They also gain from the features and capabilities available within our RTLFiRST remittance
system and FiRSTView imaging archival solution, which are the systems we use for our lockbox
operations. In addition, we offer ACH electronic check deposit, Check 21 Image-Exchange
capabilities and credit card payment clearing services, so there is no need for you to have to
deal with multiple vendors for all of your payment processing needs. RTL is a single-source
solution provider.
Our success rests on our customer service and the flexibility of our feature-rich applications.
Our achievements can be exemplified in our customer satisfied client base largely consisting of
companies and organizations within the government, insurance, utility, newspaper, non-profit,
banking and financial industry. The ability to understand business operational needs and our
in-depth knowledge of technology has warranted invitations to speak in various organizations
for Insurance, Treasurer/Tax Collectors, Finance Officials, City Clerks, Student Business Officials,
and Executive Management.
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 8 of 43
Section B
Organization and General Information
Company Experience
Our experience has provided RTL with an unequaled proficiency in system implementation,
primarily based on the "no-programming required" structure of the system. We are able to
pre-load, test and set up your "operation(s)" quickly and easily. Upload files are also specified
and tested prior to live production. We can bring an "operation up and running" in a matter of
weeks ready for "go live" production from date of contract signing.
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 9 of 43
Section B
Organization and General Information
RTLOCKBOX CONTACT LIST
Project and account management staff for the City of San Juan Capistrano lockbox operation :
Project Management
• Virgilio Santos
Project & Process Improvement Manager
Has over 10 yrs experience in payment industry. Responsibilities include: project
management, business analysis, problem resolution, communications liaison with
client and project staff, process improvement facilitator and coordinator, operation
configuration and testing, quality assurance.
Phone:
Fax:
Email:
Work Hours:
562-696-4843 ext. 116
866-330-3495
virgilio .santos@rtlawrence.com
8 am to 5 pm
Account Management
• Karen Joy Javerto
Customer Service Representative
Has over 10 yrs experience in payment industry. Responsibilities include: customer
service champion and client first point of contact for any customer service needs,
communications liaison with client, end-user training, assisting with system and
functional testing if required, ensuring that problems get resolved completely and in a
timely manner, quality assurance.
Phone:
Fax:
Email:
Work Hours:
562-696-4843 ext. 105
866-330-3495
karenjoy.javerto@rtlawrence.com
8 am to 5 pm
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 10 of 43
Section B
Organization and General Information
• Anthony Olvido
Lockbox Operations Manager
Has over 20 yrs experience in the Financial and payment industry. Responsibilities
include: business development, payment processing operations management, customer
service, business analysis, problem resolution, system and functional testing, logistics
and r esource planning, policy and procedure definition and enforcement, quality
assurance.
Phone:
Fax :
Email:
Work Hours:
• Sheila Andres
562-696-4843 ext. 115
866-330-3495
anthony.olvido@rtlaw r ence .co m
8 am to 5 pm
Director of Sales & Account Executive
Has over 20 yrs experience in the financial and payment processing industry.
Responsibilities include: business development, marketing and sales management,
customer service, business analysis, strategic planning, management of strategic
business relationships/partnerships, high-level account executive and client point of
contact for problem escalation, quality assurance.
Phone:
Fax:
Email :
Work Hours:
562-696-4843 ext. 102
866-330-3495
she il a.a ndres @rtJa wrence .co m
8 am to 5 pm
The team members of this project have extensive experience with the lockbox services for the
City of San Juan Capistrano and of the clients listed as references. They are assigned and
available to support the current lockbox operations of the City and will not be removed or
replaced without the prior written approval of the City.
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 11 of 43
Azusa light & Water
Section C
References
Profile: Utility Bill Payment Processing Lockbox Operation: PO Box setup, d aily mail
pickup, image scanning and processing of payments, web ver ification and online
exception review, physical deposit, daily provision of repo rts an d datafil e, online
imag ing access
No ofYrs as Client: 10.5 years (since 9/2004)
Ms. Rachel Tapia -Operations Supervisor
729 N. Azusa Avenue
Azusa, CA 91702
Phone: (626) 812-5162
Email: rtapia@ci.azusa.ca .us
City of Antioch
Profile : Utility Bill Payment Processing Lockbox Operation: PO Box setup, daily mail
pickup, image scanning and processing of payments, web verification and online
exception review, Check 21 electronic and physical deposit, daily provision of reports
and datafile, online imaging access
No of Yrs as Client: 3.5 years (since 7 /2011)
Ms. Lisa Saunders-Finance Services Supervisor
200 H Street
Antioch, CA 94509
Phone: (925) 779-6150
Email: lsaunders@ci.antioch .ca.us
City of Santa Monica
Profile : Utility Bill Payment Processing Lockbox Operation: PO Box setup, daily
mail pickup , image scanning and processing of payments, web verification and
online exception review , physical deposit, daily provision of reports and datafi le,
online imaging access
No of Yrs as Client: 5 years (since 1/2010)
Mr. Ronald Mason-Utilities Billing Supervisor
1717 4th Street, Room 150
Santa Monica, CA 90401
Phone: (310) 458-8244
Email: ron.mason@smgov.net
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 12 of 43
Camrosa Water District
Section C
References
Profile: Utility Bill Payment Processing Lockbox Operation: PO Box setup, daily mail
pickup, image sc anning and processing of payments , web verification and online
exception r eview, physical deposit, daily provision of r e ports and datafil e, online
imaging access
No of Yrs as Client: 11.5 years (since 10/2003)
Ms. Stella Pimentel -Customer Accounts Supervisor
7385 Santa Rosa Road
Camarillo , CA 93012
Phone: (805) 482-5942
Email: stellap@Camrosa.com
Padre Dam Municipal Water District
Profil e: Utility Bill Payment Processing Lockbox Operation: PO Box setup, daily mail
pickup, image scanning and processing of payments, web verification and online
exception r eview, Check 21 electronic and physical deposit, d ail y provision of reports
and datafile, online imaging access
No of Yrs as Client: 5 years (since 03/2010)
Ms. Laura Evans-Customer Service Manager
9300 Fanita Parkway
Santee, CA 92071
Phone: (619) 258-4728
Email: levans@padre.org
Park Water Company
Profile: Utility Bill Paymen t Processing Lockbox Operation: PO Box setup, daily
mail pickup, image scanning and processing of p ayments, web verification and
online exception review, physical deposit, daily provision of reports and datafile,
online imaging access
No of Yrs as Client: 5.5 years (since 09/2009)
Ms. Elena Wilson -Customer Service lead
9750 Washburn Road
Downey, CA 90241
Phone: (562) 923-0711 ext. 1533 I (562) 299-5128
Email: Mariar@parkwater.com
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 13 of 43
Section D
Lockbox Receipt Processing
• Tab D-Lockbox Receipt Processing. Please describe the following
in this section:
Please refer to the "RTLockbox Services Description Document" found in
Section D: Lockbox Receipt Processing of our response to RFP for more
information regarding our lockbox services.
~ Location of post office box
Artesia, CA
~ Time and frequency of pickups from the post office box
Payments are picked up daily first thing in the morning from the post
office and delivered to our processing center.
~ Turn-around processing time
Our service goal is to shoot for same-day deposit, which means
payments are processed and deposited the same business day they
are received.
~ Deposit frequency, deadlines and reconciliation
Deposits are done o nc e a day. Our service goal is to shoot for same-
day deposit, wh ich means payments are processed and deposited the
same business day they are received. This does requi re that mail is
received in the lockbox for processing first business morning no later
than 9:00am PST. Same-day deposit commitments also depend on the
client's payment volume. End-of-day deposit cutoff is around 5:00pm
PST for physical deposit and betwee n 6:00-6:30pm PST for Check 21
electronic deposit. These cutoff times vary slightly between
banks/financial institutions.
);>-Ability to provide images of remittance documents and checks
via web and/or CD Rom.
Our lockbox processing operations support a highly automated and
completely image-b ased processi ng environment. Some of our uniqu e
serv ice offerings include our web-based verification feature as well as
Internet-based image search and retrieval capabilities. With our web
verification feature, we are able to present exception item s, their
images and corresponding p ayment data, immediately via the web to
your operators for their review and decision. In addition, part of ou r
monthly !o ckbox service is to provide one mo nt h's worth of access to
image documents online. The client can e lect to have images of
payment documents available on the web longer than one month for
an additional cost per month of storage and retrieval. As standard to
the service, older images can be put on our secured https site for client
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT 8-Page 14 of 43
Section D
Lockbox Receipt Processing
download of up to 5 days prior to purging depending on image
volume, or the client can elect to have us burn the older images onto
CD/DVD and mailed back to them.
Please note that we are also the developer of our own imaging
archival system known as FiRSTView. This is the main imaging system
used and accessed by our lockbox clients when they go online to
search and retrieve their imaged payment documents. As an option,
customers can elect to purchase a license or multiple licenses of our
FiRSTView imaging sy stem. This will enable them to easily search and
retrieve older payment documents burned onto CD/DVDs.
~ Acceptance criteria for payments
Criteria for accepting payments are based on the client's
r equirements. However, here are some of the common payment
acceptance criteria implemented and utilized by our
city/municipality/utility clients:
• Payments balance
• Single stub/single check that do not balance
• Multiple stub/single check that do not balance
• Che cks-only with account number -personal checks with account
number on memo field
~ Method and time of delivery for returning original documents to
the City
Return items are usually mailed-back to the client per their request
and processing requirements. Mail-backs are done either daily or
weekly. A per-occurrence f ee is charged for each mailing .
~ Treatment of exception (non-standard) items and ability to
process exception items separately
We offer several options for processing of exception items. The most
common and standard practice is to utilize our web verification
function for exception item review and decision. The normal process
flows as follows: Payment documents ar e scanned through our system
and then "processed"; meaning check totals are automatically
bal anced against stub totals, special processing logic is ran, if any , and
hotfile p r ocessing is done, if required.
Transactions that do not balance or require special attention are sent
to operator review. We have existing "payment verification" staff to
do this first f r ont-line review and processing of exception payments.
WHERE TECHNOLOGY MEETS BUSlNESS
EXHIBIT B-Page 15 of 43
Section D
Lockbox Receipt Processing
For those spe cial instances that require client operator revi ew,
research and decision (i.e. check-only p ayment with no ac count
number on it), these payments are made available via the web. Please
note that part of our lockbox services is to define those conditions in
which except ion payments need to be presented via the web to client
operators for their research and decision. When our verification
operators come ac ro ss those conditions. they will flag the payment for
"web verification" and an email notification will be sent to the
designated client staff letting th em know that there are items waiting
for their review on the Internet.
Any modifications or corre ctions mad e by your designated o perator(s )
to transactio ns posted on the web will be applied. lf a payment
trans ac tion is accepted by your operator, it w ill proceed for ban k
deposit. If a payment is rejected, t he tran saction will be reje cted from
your lockbox operation and will be prepped for mailback.
Please note that the visibility and processing control that our web
verification feature p r ovides is critical to ensuring that these types of
payments get processed accurately and in a timely manner. Review of
exceptions is more immediate. Our serv ice s allow full access to
payment details with its corresponding images vi a the web. There is
no delay in deposit of these payments , because of exception item
mai!back procedures. There is no ris k of these payments getting
pro ces sed incorrectly, thus avo i di ng a who!e lot of labor in error
corre ct ion process.
We can also support the t ra d itiona l process of sending excep tion s back
t o the client. However, depending on the type of exception s, this may
not be the most viable appro ac h. We are also open to consider and
capable of su pporting alte rnative methods based on your exception
handling needs.
Our lo ckbox operations also provides the ability to scan and process
le tters or correspondence and merge the payment documents keeping
t he integrity of the transaction f rom mail opening to processing al l the
way to image archival.
);;> Ability to handle payments containing multiple remittance advices
We have the ability to handle multiple stub/single check an d
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 16 of 43
Section D
Lockbox Receipt Processing
multiple stub/multiple check transactions. This is standard to our
lockbox service offering.
Technical specifications of transmission of data to the City
The transmission protocols we offer for sending of reports and/or
datafile are email and/or download from our secured https site.
Error tolerance of lockbox personnel and subcontractors
RTL does not use subcontractors or third party firms for our services.
Services are provided directly by RTL internallockbox staff.
Our key performance measure or quality standard is 10 errors within
100,000 payments or tran saction s processed in our lockbox. The
errors can be a combination of any one of the following:
1) Data Entry Error
2) Missed Deposits
3} Report & Datafile Transmission
4) Daily Activity Timeliness (i.e., mail pickup, mailbacks, etc.)
5) Customer Inquiry Responsiveness (which means that all customer
service calls, requests or inquiries must be responded to and
addressed immediately and as quickly as possible)
)> Bonding requirements of lockbox personnel and subcontractors
RTL does not use subcontractors or third party firms for our services.
Services are provided directly by RTL internal fockbox staff.
In lieu of bonding, we have crime insurance and errors & omissions
policy for our lockbox operations.
)> Procedures to handle inquiry, research and adjustments and
turn-around time if established
A specific customer service r ep resenta tive will be assigned to th e City's
account. It is the responsibility of the customer service representative
to address and ensure the complete resolution of any client
problem(s) and, most importantly, to communicate with the client. It is
also their responsibility to assist with any research, planning and
coordination activities associated to efforts at problem resolution. We
require that our customer service representatives solve problem(s)
within 24 hours, if possible and depending on the type and complexity
of th e issue. If i n the event the problem is not fixed within 24 hours,
then it is escalated to the appropriate staff for immediate resolution.
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT 8 -Page 17 of 43
RT lawrence Corporation
Where technology meets payments
Section D
Lockbox Receipt Processing
Revis i on 4.0
RT lawrence Corporation sote~@rtl owrenca .c om
7740 Pflin l er Avenue. Suile 100 www .r1fowrence.<"..om
Whll ier. CA 9{)602 Phone: 562.69&;4843
Copyright (C) 2014 by RT Law rence Corporation. All rights resNved EXHIBIT B-Page 18 of 43
RT Lawrence Corporation
Where technology meets payments
LockBox Overview & Description
ABOUT RTL
RT Lawrence Corporation has been in the technology business providing leading edge automated solutions since
1992. We specialize in image-based payment processing solutions and services, the software development and
systems integration of, and most importantly, customer service.
RTL is comprised of three distinct business units:
1) Remittance Systems
2) Lockbox Services
3) E-Payments
Our main business goal has been to be a single source solution provider for all of our Client's payment
processing needs, which include in-house remittance processing systems, backend imaging archival solutions,
lockbox services, ACH/Check 21 check conversion services, credit card payment processing services, phone and
internet payment solutions, and over-the-counter systems.
RTL develops and supports all of the products and services we offer. We are not dependant on any other
software developers for the enrichment and support of our solutions, nor are we dependent on subcontractors
or outside firms for the management and day-to-day activities of our lockbox service and E-payment operations.
Developer
RTL is the developer of our flagship remittance processing software, RTLFiRST, which is utilized by over 160+
customers across the US and Canada and across various industries (i.e. utilities, insurance companies, City
government, County offices, newspaper companies, non-profit organizations, etc.). The same system we
develop is the same system we use for our lockbox operations. We have full control over our system, to add
new features and processing enhancements, while other organizations use third party systems. Any need for
additional capabilities or program adjustments, they are at the mercy of the third party vendor.
The system we use for our lockbox, RTLFiRST, is one of the key differentiating factors of our services. Its
flexibility, modularity, design based on "NO PROGRAMMING" required, feature-richness, use of technology (i.e.
imaging, CAR/LAR-ability to read check amounts, etc.) enables us to provide a custom operation to meet each
client's specific payment processing needs without a whole lot of programming. Being a highly technological
organization, the use of automation allows us to efficiently and accurately process payments without a lot of
overhead, thus translating to lower processing fees.
RT Lawrence COfp()(ollon sa!es@rt!awrence.com
774,0 _Poin ter J1li~'Y1'1 Bfil BJ-Paete"1 '~~~.com
Wh11t1e r. CA 9060~ l"hone;'5<'!.!.696A8 43
RT Lawrence Corporation
Where technology meets payments
LockBox Overview & Description
LOCKBOX SERVICES
Our RTLockbox services is a full -serv i ce operation that supports everything from daily mail pickup, payment
scanning and imaging, online except i on payment processing, bank deposit to provision of daily reports and
datafile. We maintain a highly automated and completely image-based processing environment. The following
briefly depicts the overall flow and inherent processing capabilities of our lockbox processing operations.
Mailroom Operation
The RTLockbox payment processing cycle begins with mail pickup or delivery to our Payment Processing Center.
Part of our standard services includes mail pickup at the local post office to our lockbox facility. We also support
the delivery of mailed-in payments to our facility, if such requirement is necessitated by the client.
Mailroom operators utilize high -speed mail extractor machines to open mail. The envelope contents are
removed and grouped together based on transaction type (i .e. single/single, multiples, payments with
correspondence, checks-only, stub-only payments, etc.).
Payment Processing Operation
Our lockbox operation utilizes an efficient Two-Pass image-based system and supports the processing of retail,
wholesale and wholetail type of payment transact ions. Wholesale and wholetail type of transactions would
include payments with letters or correspondence, statement-based stubs with multiple accounts listed, etc.
Retail payments are scanned using high-speed transports . Wholesale and wholetail payments are scanned
through our wholesale processing system. Images are taken of the payment documents and automated data
capture of account and payment information from stub scanline, if available, and check MICR line is performed.
Please note that letters or correspondence scanned will be "married" with the stub and/or check payment
documents. This allows for all the documents in an envelope to be electronically grouped or kept together and
maintains the "integrity" of the entire payment transaction as it proceeds through our payment processing
channels and phases. This capability has a huge impact and benefit when it comes to customer service as the
image retrieval of the transaction will disp lay all of the payment documents, stub and/or check and
correspondence.
As payment batches are scanned, they then queue for "processing." Our remittance processing system has a
processor function with embedded CAR/LAR {Courtesy Amount Recognition and Legal Amount Recognition)
engine, which has the ability to read check amounts. The Processor will do automatic payment balancing and
validation of payment groups as well as run any automated special processing rules required by the customer
and that was implemented i n their l ockbox operation .
RT Lawrenc e Corpora ti on soles@rtlowrenc e .corn
774b.Poin ter JP~HIBfl'f SJ-Pa<:re vQflPn~~.com
Whittie r. C A 90602 f'hone:s62.696.4 84 3
RT Lawrence Corporation
Where technology meets payments
LockBox Overview & Description
Customer Control and Payment Verification
In the event the system finds an unbalanced payment (e.g. check amount does not balance stub due amount), it
has the ability to electronically suspend or put this item on hold for our data entry or verification operators to
review via an image based process. Our verification staff performs the "front-line" review, correction and
validation of any exception payments . If an operator comes across a transaction that meets a certain payment
exception condition (e .g. check-only payment without any account information, multiple stub/multiple check
transaction that does not balance, etc.), as defined and specified by the client, they can flag that transaction for
presentment on the web for client operator review and decision.
What sets RTL apart from a traditional lockbox service provider is that we are able to extend control to our
clients through our web-based verification feature, which gives them the ability to make decisions on extreme
exception payments via the Internet from the comforts of their own office. These exception items can include
payments such as a check-only where there is no account information on the check, thus requiring additional
research against the client's host billing system in order to process and apply the payment to the right account.
There is no way a third party organization could possibly process this payment correctly to the right account
unless they had access to the client's main system to do the necessary research .
The visibility and processing control that this feature alone provides you is critical to ensuring that these types of
payments get processed accurately and in a timely manner. Review of exceptions is more immediate. Our
services allow full access to payment details with its corresponding images via the web. There is no delay in
deposit of these payments, because of exception item mail-back procedures. There is no risk of these payments
getting processed incorrectly, thus avoiding a whole lot of labor in error correction process.
Deposit
After payments have been verified by RTLockbox operators and/or by client staff, they are ready for deposit.
RTL offers several options and methods to deposit your funds:
1. Traditional Bank Deposit
2. Check 21-lmage Cash Letter Deposit
If client opts to have their payments traditionally deposited, they are run through the high-speed transports for
encoding/endorsing. If client opts to electronically deposit their payments, an electronic file is submitted to the
bank at end of business day for clearing. We adhere to a strict "same-day" deposit rule, which means payments
are deposited on the same business day they are received.
In regards to Check 21 electronic deposit, please note that any ineligible items, such as checks with "bad" or
"non-conforming" image quality, which cannot be ICL deposited, can and/or will be prepared for physical
deposit.
RT Lowrence C(l(poralion soles i:rlfawrence.com
7740 Poi!'11e r ~HI BF~ BJ-PaC'Je "2~on~~.com
Whittier. CA 9060~ 'Phone: 56~.696.48~3
RT Lawrence Corporation
Where techno logy meets payments
LockBox Overview & Description
Reports & Datafile
Part of the end-of-day process includes the creation and transmission of three management reports (e .g. deposit
and transaction) in PDF file format along with a datafile, if required, for automatic posting. Reports and datafile
can either be emailed and/or downloaded from a secured https site.
Imaging & Archival
All completed payment batches are automatically archived and made available for imaging search and retrieval
via the web. As a standard service offering, we will host the latest one month's worth of payment images on the
Internet for image search and retrieval. The option to host images on the Internet for longer than one month is
available for an additional cost per month. Older images can be put on our https site for client download of up
to 5 days prior to purging. This is without charge and also part of our standard lockbox services . As an
alternative option, the client can elect to have us burn the older images onto CD/DVD and mailed back to them.
Please note that we are also the developer of our own imaging archival system known as FiRSTView. This is the
main imaging system used and accessed by our lockbox clients when they go online to search and retrieve their
imaged payment documents. As an option, customers can elect to purchase a license or multiple licenses of our
FiRSTView imaging system . This will enable them to easily search and retrieve older payment documents burned
onto CDs .
Additional Capabilities
As the developers of RTLFiRST, the system we use for our lockbox service processing, new feature
enhancements are continuously being added to the system. These features and our product development list
comes from existing customer feedback, which helps in the ongoing development of the application and
maintaining its competitive advantage to other comparable systems. As these new system
enhancements/features are incorporated into RTLFiRST, their capabilities are readily made available to our
lockbox Clients for their utilization, if needed, and benefit . One example of an enhanced capability and service
offering is our SmartFind and SmartFix features for the handling of third-party online bill checks, which are
troublesome payments and extremely labor intensive to process .
SUMMARY
RTL specializes in payment processing solutions and services. With our complete suite of products and service
offerings along with our years of experience in the financial payment industry, we have the expertise and
flexibility to configure a comprehensive total payment processing solution/service that will best meet your
client's specific requirements. We can "customize" a solution without the high-dollar price and be a single-
source for all your payment processing needs.
RT Lowrence COIPoro1fotl so tes<ii'rt towrence.com
774 0 Poinler·IP'tX1 H IIB ¥~ BJ-Pac:re vQ~o~4a .co m
Whl11ier. CA 9060~ f'hone: 56~.696.4843
RT lawrence Corporation
Where technology meets payments
RTlockbox Services Processing Flow Diagram
Payments are mailed to a Client-
Specific PO Box that can be setup
to receive mail daily.
Account Information
readily available for your
review and access on the
Internet during processing
cycle
Mail is picked up from your
assigned PO Box or received
daily via alternative delivery
means .
-- -.... ~ •• -·---y -"" -·--~ ----~-·-...... --/
1 Access & VERIFY exception payments On-
Line Immediately
Accept or reject payments easily with a click
of a button.
\, ______ -----------------'
Payments are deposited the same
business day allowing you quicker
access to your funds.
Payments can be deposited
electronically via Check 21 for
quicker funds availability
Batches are archived for online
access to payment images.
j
Payments are delivered to
RTL's Payment Processing
Center.
Remittances are sorted and
batched by payment type.
Payments are scanned
through high-speed
transports for image
capture and processing.
First-Line review of
exception payments are
completed by lockbox
staff.
Upon completion of
processing, reports and/or
data files are generated and
transmitted.
*Thi > is a sa m pie diagram of the process ing flow. Daily processing flow may vary per client.
RT Lawrence Cmporatlon so!esgrt lowrence.com
7740 Pointer Avenue, SU!t e 100 www .dlowrence .com
Whittier. CA ~~I BIT B _ Pag~~58f6~843
Section E
Security Measure and Disaster Recovery Plan
SECURITY
We have an information security policy that exemplifies our commitment to information
security, specifically in securing and protecting from unauthorized access, use, alteration or
destruction client personal and payment data, processing and business applications, computer
systems and networks. We have policies and procedures that address physical security, system
security, data security, security awareness, operational procedures, change management, and
HR.
Some of our efforts at securing data are as follows:
1) Our lockbox operations run on its own separate network domain from the RTL corporate
network, therefore further limiting and controlling access to servers and workstations.
2) The lockbox domain manages and authenticates user logins and access to our network
and lockbox applicable systems.
3) We have a network firewall in place, virus scan, central logging, intrusion detection and
vulnerability scans.
4) Data is secured in password protected databases and servers that are housed in a
separate area/room from lockbox processing operations limiting direct access by only
authorized and appropriate staff.
5) Background checks are performed on all lockbox staff prior to commencement of any
job/position within the lockbox business unit and compliance by staff to all security
policies is required and enforced.
Some of the physical security measures we have in place are as follows:
Our lockbox facility is fully equipped with several cameras and safes to ensure and maintain the
integrity of our customer accounts. Only authorized lockbox staff and visitors are allowed into
our payment processing center. Visitors are required to fill out the visitor log when entering
and exiting the lockbox premises and they must be accompanied at all times by authorized
lockbox personnel when in our lockbox facility. Visitors are not allowed to be left unattended
when in any area of our payment processing operations. Lockbox facility entry and exit points
are always kept locked and secured.
All of our staff and prospective employees must undergo certain level of validation checks in
addition to a stringent interviewing process before hired. Previous employers/references are
contacted to validate integrity, thoroughness, and efficiency of employees. All staff must
complete a background check prior to commencement of any job. We require that a
background check permission form and security authorization form, which gives permission for
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 24 of 43
Section E
Security Measure and Disaster Recovery Plan
RTL to search their person and personal belongings any time as deemed necessary, be filled out
by every employee.
Each task or function of our client's lockbox operation must be completed by different staff.
Policies and procedures for each task in our day-to-day operations are documented and
distributed to appropriate personnel. All phases of our lockbox operations are monitored for
quality and timeliness along with staff performances.
Cash payments are always processed by two operators, who log every cash transaction per
client. Envelopes with cash are opened on a designated desk for cash handling that has a
camera vertically directed at the operators and desk for security purposes. Cash is double
counted, placed in a sealed deposit bag along with a copy of a cash log, and stored in a locked
safe until deposit prep.
We also have a security awareness program that facilitates our policy for security awareness, its
requirements and procedures. It addresses the distribution, acknowledgement and compliance
of our security policies to all applicable parties. It also provides for security awareness training
once a year or as deemed necessary.
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 25 of 43
Section E
Security Measure and Disaster Recovery Plan
DISASTER RECOVERY
RTL has a disaster protection plan that delineates the processes for disaster recovery once a
disaster has been confirmed. It includes, but is not limited to, damage assessment, personnel
and/or staff resource availability, communication, relocation of operations if necessary, system
and/or data recovery procedures. The plan is tested annually.
In addition, we have redundancy plans setup in our lockbox operations for backup and
contingency purposes. Our lockbox facility is equipped with multiple transports/scanners all of
which act as a backup to each other in case a scanner became inoperable. Client operation
settings are duplicated on multiple workstations. Our servers are mirrored and have hot-
swappable drives, so that if one hard drive died, we can easily swap it with another working
drive and our server is back in operation. Data is backed up daily. We also have "backup
servers" acting as "fail-over" in case of system failure. We have duplicate servers in an
offsite/data center location for contingency and disaster recovery purposes. We also keep a
copy of all system source codes, critical business applications, and operation settings on a
designated server stored at an off-site facility. Contingency procedures are also in place to
address such failures as the web server going down and we are unable to transmit reports
and/or datafiles . These procedures affect alternative backup means of getting the reports
and/or datafiles to our clients, for example.
Please also note that we are the developer of the RTLFiRST remittance processing application,
which we use for our lockbox operations and that is used by over 140 customers throughout
the US. Due to its design and flexibility, any one of our remittance clients can potentially be a
backup processing site to our lockbox operations. We can easily copy settings of operations to
a site with RTLFiRST running and begin to continue our processing. We also have the ability to
increase the number of licenses of the system {e.g. verification licenses, etc.) to accommodate
the processing volume and need.
We also have partnerships with NCR and OPEX along with other scanner manufacturers, who
have disaster recovery productions incorporated into their manufacturing operations. For
example, they produce a few units with "standard" configurations designated for quick roll-out
and delivery in the event a Client experiences an emergency and disaster recovery situation. If
this approach was taken, we would have ordered the necessary number of units to handle the
totallockbox payment volume. One operation at a time will be recovered from backup until full
production is attained . Implementation and recovery procedures would have immediately and
simultaneously turned into affect with equipment delivery, so once the hardware is delivered, it
will facilitate a quick ramp-up.
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 26 of 43
Section F
Implementation Plan
As the current lockbox service provider for the City of San Juan Capistrano, if awarded
the contract, we w i ll proceed and continue with business as usual providing the existing
lockbox services. There will be no implementation process needed.
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 27 of 43
Section G
EXHIBIT B
City of San Juan Capistrano • Lockbox Services Bid Form
(Mark Items Clearly if "No" Proposal or Contracted to Third Party")
Ite m Un it P rice Estimate d Month ly Monthly Cost Exp lana tio n Vo lum e
rro cesslng
Monthly Lockbox Fee (Includes: Daily mail pickup from
Monthly Maintenance $35.00 1 $35.00 client PO Box in Artesia, datafile transmission, reports,
web-based exception handling, 1-mo online imaging
storage, online download of older payment images)
For single stub and single check payment that came in
an envelope and the stub has a scanline, the cost to
Processed Item $0.12 3450 $414.00 process the entire transaction is $0.12. Single stub and
single check "Matched" and Unmatched payments are
priced the same.
For a "multiple" payments, which has two stubs and
three checks that came in an envelope and the stubs
Multiple Payment Surcharge $0.28 300 $84.00 have a scan line, the cost to process the entire
transaction is $0.28. Multiples "Matched" and
"Unmatched" payments are priced the same
Checks-Only $0 l') :: :~ ~-~ :1 $.B9.JS
Deposit Inc 0 $0.00 Included as part of the lockbox service fees
Surcharge to process cash payments under dual
control and write a replacement check according to
standard processing procedures. RTL transaction-
based charges are per document type. We use virtual
Cash Payment Received $0.30 0 $0.00
checks to process any cash payment received in an
envelope. Unit price is based on payment transaction
of single coupon with scan line ($0.08/doc and
cash/virtual ch e ck ($0.22/check)=$0.30. Please note
that matched and unmatched payments are priced
the same .
~dditl onal P rocessing . ~ . -
Mailing of items to clients is a per-occurrence charge.
The fees per mailing includes a $2.50 per-occurrence
Manual/Express Mail $3.48 17 $59.16 charge+ postage= total rough estimate per mailing
$3.48 (($2 .50 + $0.98=$3.48). We assume a daily mail-
back process with 17 days in a month.
Sorting of payments is inherent to our lockbox
operations. However, if the City had specific sorting
requirements, this would fall under "special client
Sort handling requests" of our per-occurrence charges
wherein we charge $25/hr for how long it takes to
complete such per-occurrence work, such as
photocopying of documents, cutting of stubs, sorting
mail based on postmark date on envelope, etc.
We consider this a stub-only transaction. We have the
Stub Only Item $0.15 21 $3.15
ability to scan and process stub-only transactions just
like any other payment type based on client
requirements.
With our image-based services, we do not believe that
photocopy services will be needed, however if so, this
would fall under "special client handling requests" of
Photocopy our per-occurrence charges wherein we charge $25/hr
for how long it takes to complete such per-occurrence
work, such as photocopying of documents, cutting of
stubs, etc.
EXHIBIT B-Page 28 of 43
c:lu tllne, Exception R!tvle"w
Outline Exceptions Monthly Inc $0.00 Included as part of the base monthly lockbox service
fee
Outline Exceptions Item Inc $0.00
Outline Exceptions User Inc $0.00
Included as part of the base monthly lock box service
fee
lm lfge Q!l l \Ve!Y S erylc~ '
Image Monthly Maintenance Inc $0.00
Included as part of the base monthly lockbox service
fee
Image Web Item Inc $0.00 Included as part of the lockbox service fees
We understand this to be scanning and image capture
of letters and/or correspondence. We have the ability
to scan letters and/or correspondence received with a
Image Full-Page Item $0 .15 10 $1.50 payment. Images can easily be retrieved online
together with their corresponding payment docs for
review eliminating the need for mailing of hard copy
Items to client.
This is for a CD/DVD of older payment images burned
Image CD-ROM $12.50 1 $12.50 per calendar month block. Unit price is calculated as
follows: $10.00 per CD/DVD of images+ $2.50 per-
occurrence charge
Image CD Rom Item Inc $0.00 Included as part of Image CD/DVD, if Client elects for
CD/DVD of images
Reporti ng
Transmissions Inc $0.00 Included as part of the base monthly lockbox service
fee
Cost for custom report depends on the complexity. If a
Custom Report Monthly specific custom report is needed, we usually can easily
provide it without charge.
Otl"l er '
We are able to accommodate most client change
requests without any additional charge, such as
changes in scan line format, data capture fields,
datafile layout, etc . For more complex change
Lock box Changes requirements and/or addition of other payment types
for processing, for example, a scope of work and
requirements definition analysis will need to be
performed and pricing will be based on that
assessment .
Package Prepa ration NA $0 .00 Already covered as part of mailback items and charges
US Mail per item NA $0 .00 Already covered as part of mai lback items and charges
Research Request Inc $0.00 Included as part of the lock box service fees
Client-Exclusive "Caller Services" P.O . Box so lely for
Annua l P .0. Box Renta l $1,496.00 12 124.67 the City San Juan Capist rano payments at the Artesia
post office near our processing center; the yearly cost
for PO Box is $1,496/yr.
'nltl ai ·Foeji
Lockbox Setup Fee NA NA Not applicable
Image Setup Fe e NA NA Not applicable
Coorier'Fep
This is the dail y bank deposit trip fee or per-
occurrence charge to take the physical deposit to a
Daily Courier Service $22.00 20 $440.00 local bank branch daily . This fee may change if the City
decides to turn-on electronic Check 2 1 deposi t
services.
Third Party Courier Service NA NA Not app lica ble
EXHIBIT B-Page 29 of 4 3
Photocopy
Per Item Photocopy Charge
Other Fee!!_
OPTIONAL -Electronic Check 21 Dei)osit
Check. 21 Account Setup Fee
Check 21 Transaction Fee
Bank Deposit Trip Fee with Check
.21 Electronic Deposit
Addi!lonallmaging Options
Mdlllonal Month of Online Imaging
Storage & Access (Optional}
$1,20 0.00
$!] 01
!;5 00
525/mo per
noa!Cth
5720 $57.2.0
8 540 oo
$25 00
With our Image-based services, we do not believe that
photocopy services will be needed, however If so, this
would fall under "special client handling requests" of
our per-occurrence charges wherein we charge $25/hr
for how long it takes to complete such per-occurrence
work, such as photocopying of documents, cutting of
stubs, etc.
Ttli Is a one-thne fee to setup Check 21 depo.sit
servtces
TIH> iee is for Cher.k 21 el!,ctronic deposit & the
~O"V ·r$ion of p~per checks to the requwed Check 21
or x9.37 iniag{-~ tash letter file formi1tJ inclusive of our
Chcl~ 21 pr ocess!l 1g features such as image QUdl ity
vahd Ltah, transmission fo r deposit, etc Due lo the
type> of che<ks the City could receive as payment {i e .
mnmy orders bu.>iness ch eck s), Check 21 is
r "commP!ld~ over ACH electronic deposit. Monthly
check volume is estim ate
Th f" physic.:-ti check (j£?.posit trip fee is !"educed frorn
-$2] per trip to $5 per trip with the <Jctiv:3tion of
cJer1ronlt:: d'Jeck de-posit This is the per occurrence~
thaf"ijt' to tJke any non·eiig!b1e Check 21 checks w il
locul bank branr.h for paper" d~pos it Fo r con se1 v;;tlvP-
COJol estknnte purposes, v;e asSoume the need for ::i
paper d<~nosit 2 ti:n~~ a W£':ek.
For more detail information regarding our lockbox services and related fees, please refer to the "RTLockbox Service Proposal" found in Section G of our RFP
response packet.
EXHIBIT B-Page 30 of 43
u
.R~
RT lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
562-696-4843
20-Feb-15
*** INSTRUCTIONS AND EXAM P LE S TO HELP
UNDERSTAND THE FOlLOW ING SECTION 1 AND HOW WE
APPLY /CALCULATE TRA N SACTION CHARGES: ***
Single Stub/Single Check Example:
• Price Example: For single stub and single check payment that
came in an envelope and the stub has a scanline, the cost to
process the entire transaction is $0.12 [Cost of a) Payment
Coupon with Scanline + h) Check Mailed with Payment Coupon =
$0.08 + $0.04 = $0.12]
• Single stub and single check "Matched" (stub due amount =
check amount) and "Unmatched" (stub due amount does not
equal check amount) payments are priced the same.
Multiples Example:
• Price Example: For a "multiple" payment, which has two stubs
and three checks, that came in an envelope and the stubs have a
scanline, the cost to process the entire transaction is $0.28 [Cost
of a) Payment Coupon with Scanline x 2 + h) Check Mailed with
Payment Coupon x 3 = ($0.08x2) + ($0.04x3) = $0.28]
• Multiples "Matched" (total stub due amounts = total check
amounts) and "Unmatched" (total stub due amounts does not
equal total check amounts) payments are priced the same.
Wholesale or Statement-Based Payment Example:
• Price Example: For a payment, which has one letter-size
statement/document listing 10 separate accounts and one check
paying for all 10 accounts, that came in an envelope and the
statement has no scanline, the cost to process the entire
transaction is $2.30 [Cost of d) Non-Standard Payment Coupon
without Scanline + f) Each Additional Line-Item Account on Non-
Standard Payment Coupon x 9 + h) Check Mailed with Payment
Coupon = $0.28 + ($0.22x9) + $0.04 = $2.30]
EXHIBIT B-Page 31 of 43
Section 1. Transaction-Based Charges
Minimum Total Monthly Transaction Charges
a) Payment Coupon with Scanline
> Retail size (check-like size) document
> Includes automatic or manual capture of up to 3 data
fields of computer printed or written information
b) Payment Coupon without Scanline
> Retail size (check-like size) document
> Includes automatic or manual capture of up to 3 data
fields of computer printed or written information
c) Non-Standard Payment Coupon with Scanline
> 1 page letter-size or like-size document
> Includes automatic or manual capture of up to 3 data
fields of computer printed or written information
d) Non-Standard Payment Coupon without Scanline
> 1 page letter-size or like-size document
> Includes automatic or manual capture of up to 3 data
fields of computer printed or written information
e) Each Additional Payment on Coupon
> Posting of additional payment to a separate
account/fund -Creation of virtual stub(s)
> Includes automatic or manual capture of up to 3 data
fields of computer printed or written information
f) Each Additional Line-Item Account on Non-
Standard Payment Coupon
> Posting of additional payment to a separate
account/fund -Creation of virtual stub(s)
> Includes automatic or manual capture of up to 3 data
fields of computer printed or written information
g) Letters or Correspondence Sent with Payment
> 1 page letter-size or like-size document without any
payment information requiring posting or data entry
and only requiring image capture
h) Check Mailed with Payment Coupon
> Check(s) that accompany the payment coupon (Not
the same as check-only payment)
i) Check-Only Payment
j) Virtual Check
> Cash processing
k) Stub-Only
** P l e a se see n otes on fo llowi ng p a ge. **
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
562-696-4843
20-Feb-15
Pricing
$350 per month
$0.08 per documenl
$0.13 per documenl
$0.22 per documenl
$0.28 per documenl
$0.22 per account
$0.22 per account
$0.15 per documenl
$0.04 per check
$0.15 per transactic
$0.22 per check
$0.15 per transactic
EXHIBIT 8 -Page 32 of 43
Notes:
• Transaction processing and pncmg is based on client
specifications as defined in Section 7 of this service proposal.
Changes to lockbox service specifications and processing
requirements may affect the prices listed above.
• If the items listed above does not meet all transaction
processing needs, please contact your RTL sales representative for
a more comprehensive price list.
• All Payment types will be fully processed by our lockbox, NOT
simply sent back to client for processing.
• Matched and Unmatched Payments are priced the same.
• Unknown items are scanned in and presented via secured
internet, along with the images, for client's immediate, remote,
resolution without the need for "send-back".
EXHIBIT B -Page 33 of 43
Section 2. Monthly Fixed Price Charges
Base Monthly Fee for Lockbox Services
M n nth!y Serv k ~s I m Jude:
• Daily Pickup of Mail -Includes daily pickup of mail
from Client-specific PO Box in local Artesia, CA post
office
• Data File Transmission -Includes data transmission
of one upload file via email and/or https download per
day
• Reporting -Three management reports in pdf file
format are provided via email and/or https site
download
• Web-based Payment Verification of "Holds" -
Web-based verification of unknown items by 3 of
client's remittance staff
• Imaging Storage and Retrieval via the Web -
Hosting and storing of one month worth of images on
our server and the ability for five of client's customer
service representative to perform imaging search and
retrieval of payment documents via the internet
• Delivery of Older Images -For convenience, it is
RTL's standard practice to put images of "older"
payments per calendar month block onto our https site
for a period of five days for client download onto their
own server
O ptional, but Reco m mended, Services NOT
I ncl uded I n the M o nthly Fee:
• Client-Exclusive PO Box - A Client-Exclusive "Caller
Services" P.O. Box number. This service ensures early
mail delivery dedicated to the City of San Juan
Capistrano's utility payments only.
> Sample client mailing address or return envelope
address can be as follows:
City of San Juan Capistrano
Payment Processing Center
P.O. Box 7000
Artesia, CA 90702-9999
Services NO T I nduded In the Monthly fee:
• Courier fees to perform daily pick up of mail from
Client site or Client-specific PO Box NOT located in local
Artesia, CA post office
• Courier fees or bank deposit trip fees to perform daily
drop-off of encoded checks for deposit to local bank
branch office (or equivalent service). Note: We
encourage the use of Electronic Deposit, which
eliminates courier and bank fees.
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
562-696-4843
20-Feb-15
Pricing
$35 per month
$1496 per year
EXHIBIT 8-Page 34 of 43
Section 3.
Section 4.
E-Payment Services
a) Check 21 Electronic Deposit Fees
(Ple ase n ote t h at we also offer A CH pa ymen t
process·ing of £-Checks from the We b,. Phone,
Fro nt Cm.m ter 7 and auto -pay)
1) Bank Check 21 or Image Cash Letter Transaction Fee
2) Bank Return Items Fee
3) RTL Check 21 or Image Cash Letter Transaction Fee
(In addition to Bank Check 21/!CL fees)
4) RTL Return Items Fee
(Tn addition to Bank return itern fees)
Check 1 1 Notes:
• Check 21 fees eliminate current bank charges for
processing encoded checks for deposit.
• Check 21 approach will convert the check payment
into an electronic transaction for deposit.
• Check 21 subject to bank credit approval
• Check 21 processing capabilities include complete
stub-check transaction p r ocessing, in-line quality
usability, duplicate check tracking, X9 .37 generation
and sanitization, closed-loop returned item stub-check
integrity retention, returned item arch ive retag, block
database, reversal file to back-end host system, etc.
One-Time Setup Charges
a) New Lockbox Account Setup Fee
N otes:
• Setup includes one data file layout configuration service
• Setup includes three standard reports
b) New Check 21 Account Setup Fee forE-Payment
Option
N otes:
• Includes RTL E-Payment startup services: RTL E-
Payment file testing with bank, payment processing
operation setup and remote end -user training, if
applicable.
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
562-696-4843
20-Feb-15
Pricing
TBD by Bank
TBD by Bank
$0.01 per trans
$0.00 per occurrence
Pricing
Not Applicable
$1,200 one-time fee
EXHIBIT 8-Page 35 of 43
Section 5. Per-Occurrence Charges
a) Mailing of Items to Client
Notes:
• We anticipate only a once-a-week mailing, unless
otherwise noted or requested, since the daily
transactions are performed in real time mode via the
use of images.
• Covers mailing of hard copy payment documents and
CD of expired imaqes to Client.
• Per-Occurrence charges cover cost of labor
($2.50/occurrence) and postage, if applicable.
b) Additional Client Handling Requests
Notes:
• This covers additional per occurrence services
required by the Client that is not part of our standard
lockbox services as noted above (i.e. photo copying
stubs and/or checks, cutting or modifying the stubs to a
scanable size, etc.)
c) RTL Bank Deposit Trip Fee
Notes:
• Charges to go to the local bank branch office (within a
6-mile radius to payment center) to deposit checks.
Client can elect to have other courier services perform
this task. If Client wishes for RTL to make the daily
deposit and current bank does not provide for a local
branch office within a 6-mile radius, Client can consider
opening an interim deposit account with an alternative
financial institution with local branch office to RTL
payment processing center .
.. Ba nk deposit per trip fees wil ! be r edu ced t o $5 pe r
trip, if Clien t el ects to d o Ch eck 21 an d sign s on vvit h
our E-Payment services.
d) Daily Bank Deposit by Third Party Courier Service
N otes:
• Courier fees to perform daily deposit drop-off to local
bank branch.
e) Daily Mail Pickup Courier Fee
Notes:
• Courier fees to perform daily pick up of mail from
Client site or Client-specific PO Box NOT located in local
Artesia, CA post office
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
562-696-4843
20-Feb-15
Pricing
$2.50 per occurrence
plus postage
$25 per hour
$22 per trip
TBD
TBD
EXHIBIT 8 -Page 36 of 43
Section 6. OPTIONAL IMAGE ARCHIVAL ALTERNATIVES
a) CD Delivery of Older Images -As an alternative
option within the traditional means, RTL can burn
images of payments older than one month along with
their corresponding index data file onto COs for mailing
back to the Client. The cost for mailing of the CD(s)
fall under section 5 -Per Occurrence Charges of this
proposal and is the cost of the CD(s), handling, and
postage.
b) Additional Imaging Storage and Retrieval on the
Web -Optional longer storage of images available
upon request for an extra $25/month for each
additional month of extended online storage.
c) Optional Imaging System -Client may want to
consider the Optional purchase of our "in-house
imaging research" software FiRSTView to enable the
fast searching and retrieval of the "older" images from
the CD. Please refer to the following for additional
pricing information.
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
562-696-4843
20-Feb-15
Pricing
$10
$25/mo per month
Optional Additional I n -H ouse Imaging Resea n:h Sc.ft ware
• Single-User in-house FiRSTView Imaging Research Software $3,250
$1,000 • Installation and Training Service
• Annual Support of the Imaging Software
N o t es :
• The optional purchase of this product will enable the
client to perform fast search and retrieval of "older"
images returned to the client on COs.
• We recommend a server for imaging.
• PC hardware not included.
$488 per year
EXHIBIT B-Page 37 of 43
Section 7.
Section 8.
Proposal
Notes
Payment
Terms
Client Specific Requirements
(The fa/lowing lists any tasks, special processing,
conditions, etc. that we will comply with, provide or include
in our /ockbo x setvices as part of the service proposal .)
Client payment processing requirements and
specifications are yet to be determined, finalized and is
pending discussion. Lockbox service pricing may be
affected by Client's special payment processing needs.
Considerations
• Pricing is valid for 180 days only.
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
562-696-4843
20-Feb-15
Pricing
• Lockbox Services are billed monthly by RTL with Net 10 terms.
EXHIBIT 8 -Page 38 of 43
Section H
Service Enhancement and Industry
Best Practices
• Tab H -Service Enhancement and Industry Best Practices
);> Describe any services and technological enhancements not
previously mentioned that should be considered for further
improving the effectiveness of the City's lockbox services.
Additional Capabilities for consideration:
• SmartFind/SmartFix -SmartFind and SmartFix provides for
efficient handling of notorious third--party online bill checks, which
are troublesome payments and extremely labor intensive to
p rocess . It co nsis t s of an online bill check library with automated
data capture capabilities and cross-reference database. With the
auto-creation of virtual stubs, these online bill checks are
"normalized" for easy processing and it reduces exception
payment handling. Please note that we have configured a database
lookup function within SJC's current lockbox operation in lieu of
our Smart Find/Smart Fix feature.
• Hotfile -We have the ability to import into the Client lockbox
operation a datafile of "delinquent" accounts for automated
exception or reje ct payment p r ocessing . Please note that we have
configured a database lookup function within SJC's current lockbox
operation in lieu of the hotfile feature .
• Letters/Correspondence -Our lockbox service s support a full
imaged-based operation . We have the ability to scan and image
capture all letters and correspo nd en ce-like type documents
re ce ived in an envelope and "marry" them with the stub and/or
check document(s) they came with. If requested by the client we
can put these transactions on the web via our web verification
feature for client operator rev iew and decision. Or with our
standard w eb archival and imaging, the client has access to the
images of these documents online and has the ability to print out
hard copies of such, if necessary. The hard copy documents do not
technically need to b e mailed back to the client, unless required,
thus saving in mail back costs.
• Check 21 -We offer Check 21 or ICL (Image Cash Letter) electronic
deposit capabilities as an alternative to p h ysical check depos it.
Since there are no limitations as to what can be deposited through
th e Check 21 pipeline, it offers a more near-100% electronic
d eposit approach over ACH. !t can facilitate faster crediting of
funds and end-of-day bank deposit cutoff t i me i s also extended.
Please note that the quality of the check image is critical to Check
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B -Page 39 of 43
Section H
Service Enhancement and Industry
Best Practices
21 deposit processing. Any bad or "non-conforming" images of
checks found cannot be electronically deposited and are
considered Check 21 ineligibles. Despite the fact that there may be
some checks that cannot be electronically deposited via Check 21,
the ineligibility rate in our experience is less than 1%. These items
will be prepared for physical deposit to a local bank branch.
Corresponding Check 21 reports will also be provided to help with
the reconciliation process.
);> What best practices have you identified in this industry space?
We have the highest regard for service quality. To ensure the highest
level of quality service, it requires what we believe to be best practices
in various areas, including systems, security, policy and procedure. For
the past 13 years of servicing the City of San Juan Capistrano's utility
lockbox process, we have implemented the best practices in all areas
to ensure the optimal processing of the City's utility payments.
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 40 of 43
Section I
Appendix A -Financial Capacity
CONFIDENTIAL
Enclosed are RT Lawrence Corporation's Financial Statements. These documents are
considered Confidential and Proprietary. These documents must not be reproduced or
distributed without the written or verbal consent of RT Lawrence Corporation.
RTL has never been a party to any litigation and currently has no administrative
proceedings, claims, lawsuits and such pending against it.
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT 8-Page 41 of43
Section I
Appendix B -Disclosure
RT Lawrence Corporation is the current service provider for the City of San Juan
Capistrano's utility billing lockbox services. That is the only business relationship we
have with the City. RTL has never had, nor currently has any direct business or personal
relationship with any San Juan Capistrano elected official, appointed official, City
employee, or family member of any San Juan Capistrano elected official, appointed
official or City employee.
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B -Page 42 of 43
Section I
Appendix C -Personal Services Agreement
RT Lawrence Corporation has reviewed the City's sample Personal Services Agreement,
Attachment 1 of the RFP, and have no exceptions to its form or its terms and conditions.
We also comply with the City's insurance requirements as delineated in the sample
Personal Services Agreement.
WHERE TECHNOLOGY MEETS BUSINESS
EXHIBIT B-Page 43 of 43
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
562-696-4843
8 -May-15
* u INSTRU CTI ON S A ND EXAMP LE S TO HELP
UNDERSTAND THE fOLlOWING SECTI ON 1 AN D HOW WE
APPLY /CALCULATE TRANSACTION CHARGES : ***
Si ngle Stub/Single Check Examp l e:
• Price Example: For single stub and single check payment that
came in an envelope and the stub has a scanline, the cost to
process the entire transaction is $0.11 [Cost of a) Payment
Coupon with Scanline + h) Check Mailed with Payment Coupon
= $0.08 + $0.03 = $0.11]
• Single stub and single check "Matched" (stub due amount =
check amount) and "Unmatched" (stub due amount does not
equal check amount) payments are priced the same.
Multiples Example:
• Price Example: For a "multiple" payment, which has two stubs
and three checks, that came in an envelope and the stubs have a
scanline, the cost to process the entire transaction is $0.25 [Cost
of a) Payment Coupon with Scanline x 2 + h) Check Mailed with
Payment Coupon x 3 = ($0.08x2) + ($0.03x3) = $0.25]
• Multiples "Matched" (total stub due amounts = total check
amounts) and "Unmatched" (total stub due amounts does not
equal total check amounts) payments are priced the same.
Whole sale or Statement-Based Payment Exa mple:
• Price Example: For a payment, which has one letter-size
statement/document listing 10 separate accounts and one check
paying for all 10 accounts, that came in an envelope and the
statement has no scanline, the cost to process the entire
transaction is $1.22 [Cost of d) Non-Standard Payment Coupon
without Scanline + f) Each Additional Line-Item Account on Non-
Standard Payment Coupon x 9 + h) Check Mailed with Payment
Coupon = $0.20 + ($0.11x9) + $0.03 = $1.22]
Exhibit C Page 1 of 8
Section 1. Transaction-Based Charges
Minimum Total Monthly Transacti on Charges
a) Payment Coupon with Scanline
> Retail size (check-like size) document
> Includes automatic or manual capture of up to 3
data fields of computer printed or written information
b) Payment Coupon without Scanline
> Retail size (check-like size) document
> Includes automatic or manual capture of up to 3
data fields of computer printed or written information
c) Non-Standard Payment Coupon with Scanline
> 1 page letter-size or like-size document
> Includes automatic or manual capture of up to 3
data fields of computer printed or written information
d) Non-Standard Payment Coupon without Scanline
> 1 page letter-size or like-size document
> Includes automatic or manual capture of up to 3
data fields of computer printed or written information
e) Each Additional Payment on Coupon
> Posting of additional payment to a separate
account/fund -Creation of virtual stub(s)
> Includes automatic or manual capture of up to 3
data fields of computer printed or written information
f) Each Additional Line-Item Account on Non-
Standard Payment Coupon
> Posting of additional payment to a separate
account/fund -Creation of virtual stub(s)
> Includes automatic or manual capture of up to 3
data fields of computer printed or written information
g) Letters or Correspondence Sent with Payment
> 1 page letter-size or like-size document without any
payment information requiring posting or data entry
and only requiring image capture
h) Check Mailed with Payment Coupon
> Check(s) that accompany the payment coupon (Not
the same as check-only payment)
i) Check-Only Payment
j) Virtual Check
> Cash processing
k) Stub-Only
** Please see notes on f o llowing p age. **
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
562-696-4843
8-May-15
Pricing
$350 per month
$0.08 per document
$0.12 per document
$0.16 per document
$0.20 per document
$0.11 peraccount
$0.11 per account
$0.10 per document
$0.03 per check
$0.11 per transaction
$0.11 per check
$0.11 per transaction
Exhibit C Page 2 of 8
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
562-696-4843
8-May-15
Notes:
• Transaction processing and pricing is based on client
specifications as defined in Section 7 of this service proposal.
Changes to lockbox service specifications and processing
requirements may affect the prices listed above.
• If the items listed above does not meet all transaction
processing needs, please contact your RTL sales representative
for a more comprehensive price list.
• All Payment types will be fully processed by our lockbox, NOT
simply sent back to client for processing.
• Matched and Unmatched Payments are priced the same.
• Unknown items are scanned in and presented via secured
internet, along with the images, for client's immediate, remote,
resolution without the need for "send-back".
Exhibit C Page 3 of 8
Section 2. Monthly Fixed Price Charges
Base Monthly Fee for Lockbox Services
Monthly Services Indudc:
• Daily Pickup of Mail -Includes daily pickup of mail
from Client-specific PO Box in local Artesia, CA post
office
• Data File Transmission -Includes data
transmission of one upload file v ia email and/or https
download per day
• Reporting -Three management reports in pdf file
format are provided via email and/or https site
download
• Web-based Payment Verification of "Holds" -
Web-based verification of unknown items by 3 of
client's remittance staff
• Imaging Storage and Retrieval via the Web -
Hosting and storing of one month worth of images on
our server and the ability for five of client's customer
service representative to perform imaging search and
retrieval of payment documents via the internet
• Delivery of Older Images -For convenience, it is
RTL's standard practice to put images of "older"
payments per calendar month block onto our https site
for a period of five days for client download onto their
own server
Optionalr but Rt<:commeru:ie.:i, Services NOT
I n dud erl In t h e 1\"'o ni::Wv Fe e;
• Client-Exclusive PO Box -A Client-Exclusive "Caller
Services" P.O. Box number. This service ensures early
mail delivery dedicated to the City of San Juan
Capistrano's utility payments only.
>Sample client mailing address or return envelope
address can be as follows:
City of San Juan Capistrano
Payment Processing Center
P.O. Box 7000
Artesia, CA 90702-9999
Services NOT Inclu ded In th e M<>nth!y Fee:
• Courier fees to perform daily pick up of mail from
Client site or Client-specific PO Box NOT located in local
Artesia, CA post office
• Courier fees or bank deposit trip fees to perform daily
drop-off of encoded checks for deposit to local bank
branch office (or equivalent service). Note: We
encourage the use of Electronic Deposit, which
eliminates courier and bank fees.
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
562-696-4843
8-May-15
Pricing
$35 per month
$1496 per year
Exhibit C Page 4 of 8
Section 3.
Section 4.
E-Payment Services
a) Check 21 Electronic Deposit Fees
(Please note ihat we also o ffe r A.CH payment
process ing of £-Checks f rom tlw Web, Phone/
Front Co unter1 and auto-pay)
1) Bank Check 21 or Image Cash Letter Transaction Fee
2) Bank Return Items Fee
3) RTL Check 21 or Image Cash Letter Transaction Fee
(In a ddiUon to Ban k Clieck 21/TC:L fees)
4) RTL Return Items Fee
(In addition to B:..-;nk return itern Fees)
Check 21 Notes:
• Check 21 fees eliminate current bank charges for
processing encoded checks for deposit.
• Check 21 approach will convert the check payment
into an electronic transaction for deposit.
• Check 21 subject to bank credit approval
• Check 21 processing capabilities include complete
stub-check transaction processing, in-line quality
usability, duplicate check tracking, X9.37 generation
and sanitization, closed-loop returned item stub-check
integrity retention, returned item archive retag, block
database, reversal file to back-end host system, etc.
One-Time Setup Charges
a) New Lockbox Account Setup Fee
Notes:
• Setup includes one data file layout configuration service
• Setup includes three standard reports
b) New Check 21 Account Setup Fee forE-Payment
Option
Notes:
• Includes RTL E-Payment startup services: RTL E-
Payment file testing with bank, payment processing
operation setup and remote end-user training, if
applicable.
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
562-696-4843
8-May-15
Pricing
TBD by Bank
TBD by Bank
$0.01 per trans
$0.00 per occurrence
Pricing
Not Applicable
$800 one-time fee
Exhibit C Page 5 of 8
Section 5. Per-Occurrence Charges
a) Mailing of Items to Client
N o tes:
• We anticipate only a once-a-week mailing, unless
otherwise noted or requested, since the daily
transactions are performed in real time mode via the
use of images.
• Covers mailing of hard copy payment documents and
CD of expired imaqes to Client.
• Per-Occurrence charges cover cost of labor
($2.50/occurrence) and postage, if applicable.
b) Additional Client Handling Requests
Note s:
• This covers additional per occurrence services
required by the Client that is not part of our standard
lockbox services as noted above (i.e. photo copying
stubs and/or checks, cutting or modifying the stubs to
a scanable size, etc.)
c) RTL Bank Deposit Trip Fee
Notes:
• Charges to go to the local bank branch office (within
a 6-mile radius to payment center) to deposit checks.
Client can elect to have other courier services perform
this task. If Client wishes for RTL to make the daily
deposit and current bank does not provide for a local
branch office within a 6-mile radius, Client can consider
opening an interim deposit account with an alternative
financial institution with local branch office to RTL
payment processing center.
" Bank de posit pe r nip fees will be r edu ced to $5 per
trip, if Client elects \o do Check 21 and signs on with
o u r E-P aym e1 1t se rvices.
d) Daily Bank Deposit by Third Party Courier Service
N otes:
• Courier fees to perform daily deposit drop-off to local
bank branch.
e) Daily Mail Pickup Courier Fee
N otes:
• Courier fees to perform daily pick up of mail from
Client site or Client-specific PO Box NOT located in local
Artesia, CA post office
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
562-696-4843
8-May-15
Pricing
$2.50 per occurrence
plus postage
$25 per hour
$15 per trip
TBD
TBD
Exhibit C Page 6 of 8
Section 6. OPTIONAL IMAGE ARCHIVAL ALTERNATIVES
a) CD Delivery of Older Images -As an alternative
option within the traditional means, RTL can burn
images of payments older than one month along with
their corresponding index data file onto CDs for mailing
back to the Client. The cost for mailing of the CD(s)
fall under section 5 -Per Occurrence Charges of this
proposal and is the cost of the CD(s), handling, and
postage.
b) Additional Imaging Storage and Retrieval on the
Web -Optional longer storage of images available
upon request for an extra $10/month for each
additional month of extended online storage.
c) Optional Imaging System -Client may want to
consider the Optional purchase of our "in-house
imaging research" software FiRSTView to enable the
fast searching and retrieval of the "older" images from
the CD. Please refer to the following for additional
pricing information.
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
562-696-4843
8-May-15
Pricing
$10
$10/mo per month
O~Jtio nz! Ad diti.:;.rw l In-Hou£te Irnag!n g Research Software
• Single-User in-house FiRSTView Imaging Research Software
• Installation and Training Service
• Annual Support of the Imaging Software
Notes:
• The optional purchase of this product will enable the
client to perform fast search and retrieval of "older"
images returned to the client on CDs.
• We recommend a server for imaging.
• PC hardware not included.
$3,250
$1,000
$488 per year
Exhibit C Page 7 of 8
Section 7.
Section 8.
Proposal
Notes
Payment
Terms
Client Specific Requirements
(The following lists any tasks, special processing,
conditions, etc. that we will comply with, provide or
include in our lockbox services as part of the service
proposal.)
Client payment processing requirements and
specifications are yet to be determined, finalized and is
pending discussion. Lockbox service pricing may be
affected by Client's special payment processing needs.
Considerations
• Pricing is valid for 180 days only.
RT Lawrence Corporation
7740 Painter Avenue, Suite 100
Whittier, CA 90602
562-696-4843
8-May-15
Pricing
• Lockbox Services are billed monthly by RTL with Net 10 terms.
Exhibit C Page 8 of 8