HomeMy WebLinkAboutAgenda Report - May 21, 2003 E-16CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Authorize Request for Proposals for Remittance Processing System
(FIN)
MEETING DATE May 21, 2003
PREPARED BY Finance Director
RECOMMENDED ACTION: That the City Council authorize the Finance Department to issue a
Request for Proposals for a remittance processing system that would
streamline the handling of bill payments to the City.
BACKGROUND INFOR A"I ION: Utility bili payments, business license payments, and other remittances
to the City are currently being processed by hand throughout the day
for bank deposit (via armored service) the following business day.
The remittance processing system (RPS) integrates and automates the numerous steps of the remittance
processing function to provide a mo e efficient, high-speed method of handling customer payments. Instead
of having the payment stub scanned with a hand -geld scanner, moving checks to an endorsing machine, then
delivering checks via armored service to the bank for deposit and eventual transfer of funds to City accounts,
the RPS handles these functions and mare in a single or double "pass".
The RPS will benefit the City in several ways:
Daring the pass" the system captures the check's bank and account number so that funds can be
transferred from the customers bank eiectronically. This improves cash flow and decreases the
possibility of NSF items by reducirig clearing times to hours instead of days;
It improves Customer Service responsiveness by providing instant on-screen account information,
including an image of the check (which eiiminates the need for the customer to request a check image
from their bank);
It allows staff to redirect more, time to Business and Transient Occupancy Tax audits for additional
revenue, and to identify and target custarnei s who are eligible for the Electric Utility Benefit Programs;
It assures that the City is prepared for proposed legislation in H.R. 1474 ("Check Clearing for the 21"t
Century Act") which would require that the City have electronic check processing capabilities.
Finally, the department's mechanical check endorser is no longer supported by the manufacturer, either with
service or supplies. Since the endorsement function is integrated into the RPS, replacement of the
standalone unit isn't a wise expenditure at this paint.
Staff therefore recommends that the Council authorize staff to proceed with issuance of a Request for
Proposals to evalpate that wo.u.10 provide the. greatost returns and best value
to the City. The cost of the rer itt nce;,pro d sing stem is estimated t� be g,00
FUNDING. tect{ie Utility Capitai Fun
n..�
Vicky Mc thif e inance Director
Prepared by ioel H rri,5 Purc.h sing � ffic �;(F[n x€e
APPROVED:
f
A. allow, .lec ric Utility Director