DUE DATE: August 23, 2011-2:00 p.m.

REQUEST FOR PROPOSALS CREDIT CARD MERCHANT SERVICES RFP 11-08 DUE DATE: August 23, 2011-2:00 p.m. CITY OF LEAGUE CITY 300 W Walker League City, TX 77573 281-554-1001 www.leaguecity.com 1

TERMS AND CONDITIONS 1. The City of League City will accept SEALED PROPOSALS Monday through Thursday, 8:00 a.m. noon. and 1:00 p.m. 5:00 p.m. and Friday 8:00 a.m. to noon. Proposals must be received by the PURCHASING DEPARTMENT before the specified hour and date of the opening. At that time proposals shall be opened and names publicly read. 2. All sealed offers should be submitted on the original forms provided. Each proposal must be sealed and should be placed in a properly identified envelope with RFP number, time and date of RFP opening. Proposals mailed via courier must be sealed in a separate envelope marked with RFP number. 3. Late proposals will be UNOPENED. Late proposals will not be considered under any circumstances. 4. Proposals CANNOT be altered or amended after opening time. Any alterations made before opening time must be initialed by offeror or his authorized agent. No proposal may be withdrawn after opening without approval, and based on a written acceptable reason. 5. The City of League City reserves the right to revise or amend the specifications prior to date set for opening proposals. Such revisions or amendments, if any, will be announced by amendments or addendum to these specifications. Copies of such amendments or addendum so issued will be furnished to all prospective offerors. If offeror demonstrates just reason for a change, the City of League City must have at least five working days notice prior to proposal opening date. 6. Should offeror find discrepancies in or omissions from the specifications or other documents or be in doubt as to their meaning, offeror should at once notify the Purchasing Department and obtain clarification prior to submitting a proposal. 7. Proposal shall be valid for ninety (90) days from opening date. 8. The City of League City is exempt from taxes. DO NOT INCLUDE TAX IN PROPOSAL. 9. The City of League City reserves the right to terminate this contract for any reason by notifying the Contractor/Supplier in writing thirty (30) days prior to the termination of this agreement. In the event the City terminates the awarded contract for breach or any other reason, the Proposer shall not be relieved of liability to the City for damages sustained by the City by reason of any breach of the contract by the successful Proposer or otherwise, and the City may withhold any payments to successful Proposer for the purpose of an offset until such time as the amount of damages due the City from the successful Proposer can be determined. 10. Offeror MUST give full firm name and address. Person signing proposal should show TITLE or AUTHORITY TO BIND HIS FIRM IN A CONTRACT. Authorized signature should appear on each page where space is provided. 11. All offerors must meet or exceed the minimum specifications to be considered as a valid proposal. The City of League City reserves the right to accept or reject all or any part of any proposal, waive minor technicalities and award the proposal to the offeror who provides goods or services at the best value for the City of League City. 12. If a proposal contains proprietary information, the offerors must declare such information as proprietary if Offeror does not want information to become public. 13. Proposals will be opened so as to avoid disclosure of contents to competing offerors and kept secret during the process of negotiation. 14. Purchase order number should be on original invoice and invoice sent to the City of League City, 300 West Walker, League City, TX 77573; Attn: Accounts Payable. 2

CITY OF LEAGUE CITY RFP 11-08 CREDIT CARD MERCHANT SERVICES SPECIFICATIONS (MINIMUM): INTENT: The City of League City seeks proposals from a qualified firms credit card merchant services. The purpose of these specifications is to describe the minimum and shall not be construed as such. This contract is intended for routine and continuous usage. EVALUATION: Award of contract does not obligate the Buyer to order or accept more than Buyer s actual requirements during the period of this agreement, as determined by actual needs and availability of appropriated funds. Contract may be awarded to the offeror who provides goods or services at the best value for the City of League City. The City of League City reserves the right to accept or reject all or any part of any proposal, waive minor technicalities and award the proposal to best serve the interest of the City of League City. NON-FUNDING CLAUSE: The City of League City s budget is funded on an October 1 st to September 30 th fiscal year basis. Accordingly, the City of League City reserves the right to terminate this contract by giving Bidder written notice, without liability to the City, in the event that funding for this contract is discontinued or is no longer available. INSURANCE REQUIREMENTS: OFFEROR SHALL INCLUDE CERTIFICATE OF INSURANCE WITH THE PROPOSAL, OR PRIOR TO AWARD OF THE PROPOSAL THE COMPANIES AFFORDING COVERAGE AND THE PRODUCER OF THE CERTIFICATE OF INSURANCE SHALL BE LICENSED WITH THE STATE BOARD OF INSURANCE TO DO BUSINESS IN THE STATE OF TEXAS. (a) (b) (c) (d) Workers Compensation Insurance as required by laws and regulations applicable to and covering employees of Contract engaged in the performance of the work under this agreement; Employer s Liability Insurance protecting contractor against common law liability, in the absence of statutory liability, for employee bodily injury arising out of the master-servant relationship with a limit of not less than $1,000,000. Comprehensive General Liability Insurance including products/completed operation with limits of liability of not less than: Bodily Injury $1,000,000 per each person, $1,000,000 per each occurrence/aggregate; Property Damage $1,000,000 per each occurrence; Excess Liability Insurance Comprehensive general Liability, Comprehensive Automobile Liability and coverage s afforded by the policies above, with the minimum limits of $1,000,000 excess of specified limits; INDEMNITY AGREEMENT: THE CONTRACTOR HEREBY AGREES TO AND SHALL INDEMNIFY, HOLD HARMLESS, AND DEFEND THE CITY, ITS OFFICERS, AGENTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS, LOSSES, DAMAGES, DEMANDS, CAUSES OF ACTION, SUITS AND LIABILITY OF EVERY KIND, INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS AND ATTORNEYS' FEES, FOR INJURY TO OR DEATH OF ANY PERSON, FOR LOSS OF USE OR REVENUE, OR FOR DAMAGE TO ANY PROPERTY ARISING OUT OF OR IN CONNECTION WITH THE ACTUAL OR ALLEGED MALFUNCTION, DESIGN OR WORKMANSHIP IN THE MANUFACTURE OF EQUIPMENT, THE FULFILLMENT OF CONTRACT, OR THE BREACH OF 3

ANY EXPRESS OR IMPLIED WARRANTIES UNDER THIS CONTRACT. SUCH INDEMNITY SHALL APPLY WHERE THE CLAIMS, LOSSES, DAMAGES, CAUSES OF ACTION, SUITS OR LIABILITY ARISE IN PART FROM (I) THE JOINT NEGLIGENCE OF THE CITY AND THE CONTRACTOR, AND/OR THEIR RESPECTIVE OFFICERS, AGENTS AND/OR EMPLOYEES OR (II) THE SOLE NEGLIGENCE OF THE CONTRACTOR, ITS OFFICERS, AGENTS AND EMPLOYEES. IT IS THE EXPRESSED INTENTION OF THE PARTIES HERETO, BOTH CONTRACTOR AND THE CITY, THAT THE INDEMNITY PROVIDED FOR IN THIS PARAGRAPH IS INDEMNITY BY CONTRACTOR TO INDEMNIFY AND PROTECT THE CITY FROM THE CONSEQUENCE OF (I) THE CITY'S OWN NEGLIGENCE WHERE THAT NEGLIGENCE IS A CONCURRING CAUSE WITH THAT OF THE CONTRACTOR OF THE INJURY, DEATH OR DAMAGE AND/OR (II) THE CONTRACTOR S OWN NEGLIGENCE WHERE THAT NEGLIGENCE IS THE SOLE CAUSE OF THE INJURY, DEATH, OR DAMAGE. FURTHERMORE, THE INDEMNITY PROVIDED FOR IN THIS PARAGRAPH SHALL HAVE NO APPLICATION TO ANY CLAIM, LOSS, DAMAGE, CAUSE OF ACTION, SUIT AND LIABILITY WHERE IN INJURY, DEATH OR DAMAGE RESULTS FROM THE SOLE NEGLIGENCE OF THE CITY UNMIXED WITH THE FAULT OF ANY OTHER PERSON OR ENTITY. IN THE EVENT ANY ACTION OR PROCEEDING IS BROUGHT AGAINST THE CITY BY REASON OF ANY OF THE ABOVE, THE CONTRACTOR AGREES AND COVENANTS TO DEFEND THE ACTION OR PROCEEDING BY COUNSEL ACCEPTABLE TO THE CITY. THE INDEMNITY PROVIDED FOR HEREIN SHALL SURVIVE THE TERMINATION OR EXPIRATION OF THIS AGREEMENT. (REVISED 9-15-04) COMPLIANCE WITH LAWS: Offeror shall comply with all Federal and State laws and City Ordinances and Codes applicable to the Offeror s operation under this contract. These Specifications and the contract resulting here from shall be fully governed by the laws of the State of Texas, and shall be fully performable in Galveston County, Texas, where venue for any proceeding arising hereunder will lie. CONTRACT: The specifications included herein upon award shall become the legal and binding contract. SILENCE OF SPECIFICATIONS: The apparent silence of specifications as to any detail, or the apparent omission from it of a detailed description concerning any point, shall be regarded as meaning that only the best commercial practice is to prevail and that only material and workmanship of the finest quality shall be used. All interpretations of specifications shall be made on the basis of this statement. ASSIGNMENT: The successful offeror may not assign, sell or otherwise transfer this contract without prior written consent of the City Manager of the City of League City. SEVERABILITY: If any section, subsection, paragraph, sentence, clause, phrase or word of these requirements or specifications shall be held invalid, such holding shall not affect the remaining portions of these requirements and the specifications and it is hereby declared that such remaining portions would have been included in these requirements and the specifications as though the invalid portion had been omitted. CONTRACT TERMINATION: The City of League City reserves the right to terminate this contract for any reason by notifying the contractor in writing thirty (30) days prior to the termination of this agreement. RIGHT OF ASSURANCE: Whenever one (1) party to this contract in good faith has reason to question the other party's intent to perform, he may demand that the other party give a written assurance of this 4

intent to perform. In the event that demand is made and no assurance is given within five (5) days, the demanding party may treat this failure as an anticipatory repudiation of this contract. INVOICE: Bidder shall include the Purchase Order number on the corresponding invoice. Invoice shall be mailed to: CITY OF LEAGUE CITY ATTN: ACCOUNTS RECEIVEABLE 300 WEST WALKER LEAGUE CITY, TX 77573 Electronic invoices are accepted at: accountspayable@leaguecity.com. RFP DELIVERY: The City of League City Purchasing Department shall accept sealed proposals Monday through Thursday, 8:00 a.m. - noon. and 1:00 p.m. - 5:00 p.m. and Friday 8:00 a.m. - noon. Proposals must be received by the Purchasing Department before the specified hour and date of the opening. Each proposal must be sealed and should be placed in a properly identified envelope with RFP number, time and date of opening. Submit in person, by courier or by US Postal Service to: City of League City Purchasing Office 2450 South Shore Blvd., Suite 110 League City, TX 77573 5

CITY OF LEAGUE CITY RFP 11-08 CREDIT CARD MERCHANT SERVICES INTRODUCTION The City of League City (City) is seeking proposals from credit and debit card service providers for credit card merchant services. The City currently accepts credit cards online- E-Commerce, over the phone and in person. Proposals received should provide pricing for the cost of the transaction process, equipment needs and software needs. The City currently accepts credit cards for water bills, court fines and fees, recreation fees, building permits, alarm fees, library fines and other general fund revenues. PAYMENT BREAKDOWNS For the transactions considered the City receives the approximate mix of monthly payments as listed for each Department. The average transaction amount is $100. Department Transactions Dollar Amount Water Billing Cash 540 $42,300 Checks 7797 $839,600 Credit Cards Over the Counter 1914 $176,900 Web/E-Commerce 4167 $298,700 Municipal Court Cash 468 $102,300 Credit Cards Over the Counter 381 $59,300 Web/E-Commerce 200 $47,500 All Others (permits, rentals, alarm fees, pet adoptions) Cash 266 $130,200 Checks 762 $1,223,000 Credit Cards Over the Counter 258 $130,230 Web/E-Commerce N/A 6

REQUIREMENTS Proposal should demonstrate specific available capabilities to fulfill the below requirements: At least five (5) years of experience in providing processing services At least five (5) public sector customers United States based Ability to provide an itemized statement of fees, detailing each interchange category as well as the itemization of authorization and transaction fees. Ability to achieve and assist City staff with PCI Compliance. Ability to provide individual cash settlement reports for cashiers, please provide sample reports. The proposal should demonstrate specific available capabilities to fulfill the following requirements: a. Experience and demonstrated capability b. The proposer s past performances c. The proposed equipment the City would need d. The ability to interface electronically with the City s finance software e. The customer support that would be provided to the City. f. The ability to provide strategies to reduce fees. TECHNICAL REQUIREMENTS Vendor must be able to integrate a payment gateway with the following existing receivables software: Verifone VX570 Sungard Government Now/Click 2 Gov Vermont Systems Tyler Technology Incode Cry wolf Library-self serve system REPORTING CAPABILITIES Submit samples of reports which would provide and describe their frequency and purpose. FEES Fees quoted should include initial set up cost, hardware, software, annual maintenance, training, customer support and any other recurring costs. 7

1. Provide the fee schedule that would apply to this account based on the information provided under Payment Breakdown section. Identify any and all expenses fees and discounts related to: a. Visa credit card b. Master Card credit card c. Visa Debit d. Master Card debit e. Visa Utility Program f. MasterCard Utility Program g. Discover h. American Express i. E-Check 2. Identify any expenses that are not covered through this fee structure and would be required to implement the firm s program. REFERENCES Proposers shall provide a list of a minimum of three (3) customers to whom offeror has supplied the specified material, product, equipment, or service for the last three (3) years. Attachment I References is attached for offerors convenience and shall be returned with the proposal. The list shall include the customer's name, address, telephone number, email and the name of an individual to contact. ADDITIONAL INFORMATION Provide a sample or proposed agreement for services EVALUATION OF PROPOSALS The City will review and evaluate all proposals and will use the following criteria in the selection process. The City may conduct interviews of the proposers at our discretion. Award shall be made to the responsive, responsible offeror whose proposal is determined to be the most advantageous to the City. 30 Experience of the firm in providing services to public sector entities 25 Implementation and support of system 25 Fees 20 Reporting capabilities The City of League City will not provide compensation or defray any cost incurred by any firm related to the response to this request. The City reserves the right to negotiate with any and all persons or firms. The City also reserves the right to reject any or all proposals, or to accept any proposal deemed most advantageous, or to waive any irregularities or informalities in the 8

proposal received. PROPOSAL SUBMITTAL One original clearly marked and three (3) copies shall be submitted to the City in a sealed package and be clearly marked RFP Credit Card Merchant Services. Proposals shall be submitted no later than August 23, 2011 at 2:00 p.m. Proposers shall respond to the written RFP and any exhibits, attachments, or amendments. A Proposers failure to submit a proposal before the deadline as required shall cause that proposal to be disqualified. Proposers assume the responsibility for delays caused by any delivery service. Postmarking by the due date shall not substitute for actual proposal receipt by the City. Late proposals shall not be accepted nor shall additional time be granted to any Proposer. Proposals may not be delivered orally, by facsimile transmission, or by other telecommunication or electronic means. The City of League City will accept SEALED PROPOSALS Monday through Thursday, 8:00 a.m. noon and 1:00 p.m. 5:00 p.m. and Friday, 8:00 a.m. to noon. Proposals must be received by the PURCHASING DEPARTMENT before the specified hour and date of the opening. At that time proposals shall be opened and names publicly read. Submit in person, by courier or by US Postal Service to: City of League City Purchasing Office 2450 South Shore Blvd., Suite 110 League City, TX 77573 CITY CONTACT INFORMATION Questions and inquires about this Request for Proposal should be directed to Cherell Daeumer, Purchasing Manager, email: cherell.daeumer@leaguecity.com. Questions should be submitted no later than August 15, 2011 by 6:00 p.m. TERM OF AGREEMENT The term of agreement for this RFP shall be for a two (2) year period beginning upon approval by City Council. OPTION TO EXTEND The City may, at its option and with the approval of the contractor, extend the term of this agreement for successive two (2) year periods. Vendor shall be notified in writing by the Purchasing Manager of the City s intention to extend the contract period at least thirty (30) days prior to the expiration of the original contract period. 9

A duly authorized official having authority too legally and contractually bind the Proposer must sign proposals. I, the undersigned, having read and with full understanding of all proposal specifications, terms and conditions, to submit the following Proposal to provide the City of League City with credit card merchant services review. Proposers Printed Name: Proposers Signature: Company Name: Address: Telephone Number: E-mail Address: Date: 10

ATTACHMENT I REFERENCES Each Bidder is to provide a minimum of three (3) verifiable references in which the bidder has sold, maintained or provided this or similar product or service. Company Name: Address: Contact Person: Telephone : ( ) Email: Product Purchased by Reference: Company Name: Address: Contact Person: Telephone : ( ) Email: Product Purchased by Reference: Company Name: Address: Contact Person: Telephone : ( ) Email: Product Purchased by Reference: 11