Additional information and answers to questions posed by potential proposers

City of Arroyo Grande RFP Banking and Merchant Services Additional information and answers to questions posed by potential proposers Q 1. Is the City willing to use a separate vendor for strictly Merchant Processing and no banking responsibilities, or does the responder have to provide banking related processes, etc? A 1. As specified in the RFP the City reserves the right to award multiple contracts if it is deemed to be in the best interest of the City to do so. Therefore, some sections of the RFP may not be applicable if a vendor is providing solely merchant services, such as being a member of the Federal Reserve System or processing LAIF transactions. For a merchant services only vendor, the City would minimally expect the vendor to be in good standing, capable of providing the services sought by the City and agree to assign experienced and dedicated staff that is committed and capable of servicing our account. Q 2. Does the City charge a surcharge or impose any fee for paying with credit card? If not, is the City willing to charge a convenience fee? A 2. The City does not currently charge a fee for using a credit card. The City Manager is agreeable to exploring the option. Q 3. Does the City own, rent or lease its hardware for Merchant Processing? A 3. Own. Q 4. What Brand and model number(s) does the City use as its Point of Sale system currently? A 4. The City currently has one Hypercom T7 Plus terminal for credit card transactions at the front counter at City Hall. It is the only credit card terminal in the City and the only transactions that are paid using a credit card are payments for Utility (water and sewer) bills. Q 5. Referring to services other than Utilities, could you delineate which departments are interested in exploring this? A 5. The City would be interested in exploring accepting credit cards for a number of transactions including, but not limited to, business licenses, planning and building permits and fees, police permits and fees, recreation programs and other miscellaneous services. Q 6. Does the City participate in the Lower Discount Rate offered by VISA? A 6. We are unaware of a Lower Discount Rate and don t believe that we are participating in it, but please see attached Merchant Statement for current fees and charges for credit cards. Q 7. What is the City s current deposit time for credit card transactions? A 7. We are unsure. Q 8. Does the City have to batch out each day s transactions? A 8. Yes, the current system automatically batches each day s transactions at midnight. 1

City of Arroyo Grande RFP Banking and Merchant Services Q 9. How many Merchant ID s does the City have? A 9. One Q 10. Please provide the 12 month average balance for the existing General Account and Payroll Account. A 10. We try to actively manage the cash in the account to maintain a balance of approximately $500,000. However, the City is willing to consider alternatives to this based on proposals. Q 11. Does the current bank charge FDIC fees now? A 11. Yes. Q 12. Overnight Sweep Account Facility Could you expand on your current sweep activities? A 12. We do not currently utilize overnight sweep activity. Q 13. Does the City of Arroyo Grande have plans to install parking meters in the next five years that would increase coin deposits? A 13. At this time, the City does not have any plans to install parking meters in the next five years. Q 14. Does the proforma need to be in the format as presented in Attachment A or can the bank use its own? A 14. In order to compare services and pricing, we would prefer the format to be substantially as presented in Attachment A, but will accept other formats. Q 15. How many checks does the City currently write per month (this is blank on Attachment A) A 15. The City writes approximately 400 checks per month. We apologize for missing this on Attachment A. Q 16. There are a number of services listed on Attachment A that are nil in volume; is this an indication that the City does not use the service? A 16. Yes. Attachment A includes a wide range of services that may be available; however, the City does not necessarily utilize all of them. In some cases, such as positive pay, the City is not currently using the service but may be interested in implementing it in the future. We are also looking for the banking services vendor to provide the City with ideas on how to be efficient, innovative and use technology to our best advantage. Q 17. What type of online banking platform does the City utilize? A 17. The City currently uses Bank of America s CashPro system. In addition, water and sewer customers can pay their bill online utilizing a system provided by the City s vendor (Dataprose) for utility bill printing and presentment. 2

City of Arroyo Grande RFP Banking and Merchant Services Q 18. What are the approximate number of transactions and volume for Visa, M/C, Discover and Amex? What is the number of transactions and volumes for Pin Debit? What is the percent of transactions for key enter and card holder present with the card swiped? A 18. Please see attached merchant statement for approximate volumes, fees and charges. 3

+7 Bankof America r( - Merchant Servkes - P 0 BOX 6600 HAGERSTOWN. MD 21741 = 109219 1 AT0.386 lw218100wollz~0701a3p0041cpin0011108437~016ffio5189 378 01 WOW0 CITY OF ARROYO GRANDE 300 E BRANCH ST ARROYO GRANDE CA 93420-2706 Page 1 of 5 THIS IS UOTA BILt Statement Per~od 08/01/13-08/31/13 Merchant N~moer XX4301323138498559 -- Customer Service Website - BusinessTrack.com Phone - 1-800-430-7161 P 4 Total Amount Submitted Third Party Transactions Adjustments Fees Charged* -$4,352.71 Total Amount Funded to Your Bank $1 26,675.83 See page 2 for Key Definition of Terms +Fees Charged Summary Total Includes Interchange Chargss (IC), Service Charger (SC) and Fees All anlollnts shown are in IJ S funds (Amount Submitted - Th~rd Party) + ChargebacksIReversais +Adjustments + Fees Charged =Amount Funded P.0.80X 6600. HAGERSTOWN. MD 21 741

~ Key Card Processing Terms in Plain Language Total Amount You Submitted -The total dollar amount of card transactions submitted and processed during the Statement Period. ThirdParty Transactions -These are transactions that are passed directly to third party service providers for processing and/or funding. Common third-parties include American ~xpress@ and Discove6'. ChargebackslReversals -Those transactions that are challenged or disputed by a cardholder or card-issuing bank. A chargeback equals the transaction amount that is disputed by the cardholder or card-issuing bank. A Reversal is the amount that was initially resolved against the merchant, but has subsequently been resolved in favor of the merchant. Adjustments - The amounts credited to, or deducted from, your account to resolve processing and billing discrepancies. Interchange Charges - These are the variable fees charged by Card Organizations for pmcessing transactions. Factors that affect Interchange Charges include card type, information contained in the transaction, and howlwhen the transaction was processed. Service Charges - Also known as Discount Rate; the amounts charged to authorize, process and settle card transactions. Fees - The range of transaction-based andlor fixed amounts charged for specific card processing services. Total Amount Funded to Your Bank -The total dollar amount of creditedlpaid to your account transactions during the Statement Period. Merchant Number - The unique account number assigned to every merchant and merchant location. You'll find it at the top of your statement.........., ~ P.O.BOX 6600. HAGERSTOWN, MD 21741.T.w.--m,--- -.~-.-.~.-:,.*---.w...-'.-a- ~ %' -.

- YOUR CARD PROCESSING STATEMENT - - Merchant Number 430132313@498559 Page 3 of 5 Customer Sew~ce Webslte - BuslnessTrack cam Statement Period 08/01/13-08/31/13 ezei!e Phone - 1-800-430-7161,,.~. (Totnl Sales Y~LI Suhm~tted - Rerunils = Tolal Amount You Submitted) Card Type Mastercard Visa Discover Dinem JCB Total Total Gr-s SalasYw Submlled Refunds Tolal Amount You Submilled Average Ticket nems A"~ount Item Amunt Item Pvmunt t ii~ilustm,:nli i I-ies Charged = /\mouni Funded Date Subnillad Batch Numbsr Third Psrty Tranrractlons Chargabacksl Date Reversals A~ustmsnla Feas Cham& Funded Funded hount 08101113 08/02/13 08103113 06/04/13 06/05/13 08/06/13 08/07/13 06/08/13 08/09/13 08/1OH3 08/11113 08/12/13 08/13/13 08114113 08115113 08H6113 08117113 08/19/13 06/20/13 08/21/13 OB/2Z13 08123113 08124113 08125113 08/26/13 08/27/13 08/28H 3 08/29/13 08130113 08/31/13 Total $2.697.35-52,150.42 $4,607.1 1 $2.483.74 $1.153.09 $4.863.68 53.003.92 $2,654.82 $2.628.48 $2.916.66 5880.20 $1,110.41 $1.828.92 $1.334.09 $1,575.64 $1,211.78 $2.588.64 $426.95 $2.335.54 $1.681.69 $2.543.15 $2,474.51 $2.086.07 $1.517.96 $376.47 52.346.72 $1.519.62 $3.267.03 $64,548.13 $6.063.97 $126,675.83 'Certain fees atid charges may relate to a pilor perloci P.O.BOX 6600. HAGERSTOWN. MD 21741

~ -- Merchant Number 4301323138498559 Page 4 of 5 Customer Service Website - BusinessTrack.oom Slatement Period 08/01/13-08/31/13 Phone - 1-800-430-7161 Data sat& Subdttsd Submitted Mastarcard Wu Dlaw&r Dlmm JCB... L -- - 07/31/13 000000317800 $795.68 $1.901.67 0.W 08101113 000000017800 5808.42 $1.393.87 0.W 0.W 08102/13 W000W27800 $310.49 $4,072.48 $224.14 0.03 08/03/13 WWO0037800 $419.16 $1.907.37 $157.21 0.W 0.W 08104113 WWOOM7800 $305.34 $847.75 0.W 08105113 00000W57800 $1.412.01 $3.451.67 08108113 OOWOWB7800 $694.67 $1.931.81 $377.44 0.W 0.02 08/07/13 W0000077800 $186.09 $2.265.23 U03.W 0.W 08108113 OOWOW87800 $707.80 $1,827.05 $03.63 0.W 0809113 000000097800 $1.307.10 $1.292.13 $317.43 0.W 08H OH3 000W0107800 $407.94 $472.26 O8H1113 000000117800 $183.95 $671.74 $254.72 0.W 08112113 W0000127800 $1.828.92 0.W 08113113 000000137800 $187.86 $1.146.14 0.W 0.W 0.W 08/14/13 000000147800 $199.59 $1,378.05 0.W 0811Y13 000000157800 $527.50 $66428 0.W 08115113 000000167800 $2.588.64 0.W 0.W 08118113 000000187800 $150.53 $276.42 08119113 000000197800 0.W $2.335.54 0.W 08120113 000000207800 $88.00 $1.593.69 0.W 0.W 08121113 WMXH)217600 $854.87 $1,@88.28 0.W 08122113 000000227800 SlW.40 $1.470.11 S9W.W 0.W 08123113 WMXH)237800 0.W $2,086.07 0.W 0.W 08124113 000000247800 $1.517.96 0.W 08125113 000000257800 $376.47 0.W 0.W 08/26/13 000000267800 $208.67 $2.138.05 08127113 000000277800 $97.22 $1.321.91 $100.49 08128113 000000287800 $1.342.97 $1,924.06 0.W 0.W 08129113 000000297800 $19,023.24 $42.186.95 $3.437.94 0.W 08130113 000000307800 5581.70 55,482.27 0.W Total - - Sub Totals * $30.905.20 $94.056.84 $6,068.50 0.W. ".I_*,~ 0.W.,,,'. -*:<*.:::.:.: '. ~- -.,,i. Tmuctlon Data Nst hunt T-. P0st.d Dsserldlon Posted I... -... FEE 08/31/13 SUPPORT.. PACKAGE FEE -12.45 FEE 08131113 MC NENVORK ACCESS AUTH FEE TRAN* Ci6.i.i -0is500-2.44 FEE 08131113 MC PROCESSING INTEGRITY FEE 10 TRANGACTIONSX~ k5&0-0.55 FEE 08131H3 VISA MISUSE OF AUTH FEE J.ZTRANSACTIONSAT lg660-1.53 FEE 08131113 ACQL~RER PROCESSOR FEE C ~O* 203 PJ~NSA~ONSAT ',018500-3.96 FEE 08131113 ACQUIRER PROCESSOR FEE DBlPP 297 TRANSACTIONS AT.0155W 4.8P...,-,-.. ------.=. --.-,, -.. P.O.BOX 8600, HAGERSTOWN. MO 21741

~~~ ~~~~ - i Marchant.....-... Nllmhar..-..... 4301323138490559 ~ - Customer Service Website - BusinessTrack.com Phone - 1-800-430-7161 Page 5 of 5 Statement Period 08/01/13-08/31/13 Transaction Type FEE FEE Date Posted 08/31/13 08/31/13 08/31/13 Description MASTERCARD AUTH FEE 125 TRANSACTIONS AT,100000 VlSA AUTH FEE 500 TRANSACTIONS AT,100000 DISCOVER AUTH FEE 31 TRANSACTIONS AT,100000 TOTM FEES,., ASSESSMENT FEE ADJUSTMENTVISA NETWORK FEE CNP 247 AUG 00191-TRANSACTION CLEARED AT UTILITY WLDMC 1 AUG BB153-TRAN CLEARED AT CHECK CARD DEBlTlPREPAlD MC 1 AUG 08193-TRANS CLEARED AS COMM CARD ELEC - TAX EXEMPT COM VI 2 AUG BB193-TRANS CLEARED AS COMM CARD ELEC - TAX EXEMPT ENH VI 4 AUG BB193-TRANS CLEARED AS COMM CARD ELEC - TAX EXEMPT SIG VI 2 AUG 66187-TRAN CLEARED AS CPS ECOMM BASIC DEBITIPREPAID VI 2 AUG 00219-TRANSACTION CLEARED AS CORP / BUSINESS CARD COM VI 2 AUG BBIW-TRANSACTION CLEARED AT REWARDS 2 REWVI 54 AUG BB19O-TRANSACTION CLEARED AT REWARDS 2 SlG Vl 75 AUG BB080-TRANSACTION CLEARED AT SIGNATURE PREFERRED CP VI 28 AUG BB618-TRANSACTION CLEARED AS UTILITIES- PREMIUM Dl 1 TOTAL MASTERCARD SALES TRANS FEE 114 TRANSACTIONS AT,300000 VlSA SALES TRANS FEE 450 TRANSACTIONS AT,300000 DISCOVER SALES TRANS FEE 28 Ti?ANSACTIONS AT,300000 DISCOVER SALES DISCOUNT,023400 DlSC RATE TIMES $6.086.50 DISCOVER DATA USAGE FEE 28 TRANSACTIONS AT.01850O MASTERCARD SALES DISCOUNT,023400 DlSC RATE TIMES $30.905.20 VlSA SALES DISCOUNT,023400 DISC RATE TIMES $94.056.84 MC LICENSE VOLUME FEE.OW050 DISC RATC T'L"E= =10,905.20 TOTAL Net Amunt posted -12.50-5O.W -3.10 41.13-44.67 4.61 4.93-18.55-121.99-22.25 1.84-18.44-406.78 -M0.53-285.40 4.80 ~-1SBP.m -34.20-135.00-3.40-141.98 4.52-723.18-2200.93 1.55-3245.74 GRAND TOTAL 4,890.76 See www.buslnauiracly91? to review details of your statement. P.O.BOX 6600. HAGERSTOWN, MD 21741