Legislation Details

File #: HIST-3914    Version: 1 Subject:
Type: Historical Status: Consent Agenda
In control: City Council Meeting Agenda
On agenda: 11/27/2006 Final action: 11/27/2006
Title: Authorization to Purchase Cash Receipting Software from Progressive Solutions Inc (PSI) to Support and Enhance the City’s Revenue Collection System
Attachments: 1. C-5__06-11-27 IT Cashiering System Replacement w PSI - FINAL.doc, 2. C-5 Cash Receipting.pdf
City of Culver City, California City Council Agenda Item Report RECOMMENDATION: Staff recommends the City Council authorize purchasing cash receipting software and related components from Progressive Solutions Inc (PSI) of Brea, CA to support and enhance the City’s revenue collection system. BACKGROUND: On November 9, 1998, City Council authorized the purchase of the City’s current cash receipting software, Quadrant. This software was recommended as one of the application components included in the Year 2000 compliant financial system replacement. The current install of Quadrant is a DOS-based application. While the Quadrant cash receipting software has functioned well, it has limited the implementation of enhanced functionality and reduced the ability to deploy additional cash management internal controls. The vendor released a windows-based software product a few years ago but after City Treasurer’s staff surveyed other cities who upgraded to the product, it was discovered that the software had technical and stability issues. CTO and IT staff agreed that it was in the best interest of the City not to upgrade to the Quadrant windows-based software. Additionally, the vendor has provided very limited technical support for the product. Meeting Date: 11/27/06 Item Number: C-5 AGENDA ITEM: Contract Award to Purchase Cash Receipting Software from Progressive Solutions Inc (PSI) to Support and Enhance the City’s Revenue Collection System. Contact Person/Dept.: Michele Williams Information Technology Phone Number: 310.253.5959 Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No [] Public Hearing: [ ] Action Item: [] Attachments: [X] Public Notification: E-mail Master Notification List on 11/22/06; Progressive Solutions Inc (PSI) on 11/20/06 Department Approval: John Richo 11/08/06 Crystal Alexander 11/16/06 City Manager Approval: Jerry B. Fulwood (11/21/2006) City Controller Approval: Marlee Chang (11/21/2006)City of Culver City, California City Council Agenda Item Report DISCUSSION: In April 2006, Information Technology and Treasury combined efforts to launch the Accounting Automation Project. The objective of the project is to enhance accounting operational processes and to implement where appropriate technology for increased efficiency. The following is the mission statement for the project: To streamline accounting operations, centralize revenue collection, and to provide enhanced software system integration. The project will provide staff with tools that result in reduced data entry, more efficient operating procedures, and a centralized customer database for consolidated billing and revenue processing. The cash receipting software is the first point of entry for most revenue collection. A stable system needed to be in place that allows for technical enhancements with the ability to easily integrate with other financial software. CTO and IT staff developed a list of system requirements that would meet the City’s needs for use in evaluating a cashiering solution (attachment 1). The list included baseline requirements and items that also resulted in further system integration and enhanced functionality. System Integration The cash receipting software must integrate with various financial and department specific software in order to streamline business operations. There is a requirement to integrate the software in all areas where departments receive payments for services or invoice customers. If there is no integration with the cash receipting system, it becomes more difficult to control the revenue collection process and this also results in duplicate manual data entry increasing the risk of error. The following interfaces have been identified as requirements for cash receipting: 1. Financial System General Ledger Module 2. Financial System Accounts Receivable Module 3. Parks / Recreation Registration Software 4. Business License Software 5. Sanitation Refuse Billing Enhanced Functionality: Bar-coding As previously mentioned, one of the goals of the project is to reduce manual data entry. One way this can be accomplished is by implementing bar-coding. Currently, an invoice is generated and sent to a customer. When the payment is received significant data entry is required to record the identity of the customer and the payment amount into the cash receipting system. Implementing bar-coding reduces the required manual entry. The invoice is printed with a bar code that stores the identity of the customer and the payment amount due. When the payment and remittance stub are returned, the bar-code reader records and posts the entry into City of Culver City, California City Council Agenda Item Report the system. Manual data entry is only required for exceptions where the payment amount is not equal to the amount owed or if the remittance stub is not returned. Enhanced Functionality: Electronic Check 21 The Check Clearing for the 21 st Century Act (Check 21) was signed into law on October 28, 2003 and became effective on October 28, 2004. Check 21 is designed to increase innovation in the payments system and to enhance efficiency (attachment 2). Check 21 permits banks (and business entities who receive payments) to truncate original checks, to process check information electronically, and to deliver substitute checks to banks that want to continue receiving paper checks. The following are the benefits to the City: 1. Funds are transferred much more quickly which also enhances investment options 2. Faster returned item notification 3. Reduced costs for transporting the physical check to the bank 4. Improved bank reconciliation capabilities Enhanced Functionality: Expanded Cashiering Stations Currently departments not located in City Hall also interact with customers and collect revenue for various services. This is done to increase customer service by eliminating the requirement to visit City Hall to make a payment, or to allow payment when City Hall is closed. Rather, the payment is collected at the respective department where the service transaction takes place. This typically consists of a manual operational process. The revenue is tallied and physically delivered to Treasury on a daily basis. Staff in Treasury then manually enter the transactions into the cash receipting system. In an effort to enhance internal cash management controls, additional cashiering stations will be deployed to the Police and Transportation departments. Implementing this new system and deploying this capability will also give Treasury staff the ability to view real-time transactions at each remote cashiering station. A total of seven cashiering stations would be deployed at the following locations: 1. Treasury Counter (1) 2. Treasury Staff Workstations (3) 3. Transportation Department - 2 nd Floor (1)** 4. Police Department – Front Lobby (1)** 5. Police Department – Records (1)** **Proposed cashiering station which does not currently existsCity of Culver City, California City Council Agenda Item Report In the Parks & Recreation Department, the following locations also have the ability to perform cashiering functions: 1. Recreation Lobby 2. Veterans Memorial 3. Municipal Plunge Revenue collection controls have been implemented at these locations using an automated system interface. All transactions are recorded within the Parks & Recreation software and uploaded to the cash receipting system daily. Recommended Vendor IT and CTO staff have been researching various vendors that provide cash receipting software solutions. After surveying other cities, it was determined that Progressive Solutions Inc (PSI) offered a solution, Cashiering Central, which has been implemented with success within neighboring cities. PSI has been in the business of providing software solutions exclusively to local municipalities since 1979. On August 7, staff visited the City of Gardena where PSI’s cashiering solution has been installed since 2001. The City’s Chief Deputy Treasurer and staff provided a demonstration of their operations and use of the product (attachment 3). The City of Gardena is very pleased with the PSI’s cashiering solution. They also expressed a high satisfaction with the customer support provided by PSI. Most issues, while rare, are resolved within 24 hours. Additionally, PSI offers online support where staff can contact PSI via the Internet to request support, using dial-in capabilities their questions are resolved within minutes. Staff provided PSI with the list of system requirements in an effort to further evaluate their software solution. PSI’s responses indicated that their software fully meets the cashiering needs of the City and also lays the foundation for expanding functionality within a stable technical infrastructure (attachment 4). PSI also offers a suite of modules that assist local municipalities with tracking revenue including alarm permitting, business license, and utility billing tracking. These modules automatically integrate with cashiering software. Pending approval and successful implementation of the cashiering system, staff will investigate the feasibility of incorporating these functions. Staff may return to City Council at a later date with a recommendation to implement these modules. FISCAL ANALYSIS: The authorization to contract with Progressive Solutions Inc (PSI) would result in an expenditure not to exceed $71,825 (attachment 5) which includes one year of annual City of Culver City, California City Council Agenda Item Report hardware and software support. Sufficient funds have been allocated in the following Capital Improvement Budgets: 1. 42000870 – Cash Receipting System ($40,000) 2. 42000780 – Bar Coding Software/Hardware ($31,825) ATTACHMENTS: 1. Cash Receipting System Requirements 2. Check Clearing for the 21 st Century Act Overview (Source: Federal Reserve Board) 3. Memo to IT Director and City Treasurer Summarizing the Site Visit to the City of Gardena 4. PSI Quote for Cashiering Central Software w/ System Requirements’ Responses 5. PSI Hardware and Software Quote MOTION: That the City Council: 1) Authorize the purchase of PSI’s Cashiering Central Software and related components for an expenditure not to exceed $71,825; 2) Authorize the City Attorney to prepare any appropriate documents; and 3) Authorize the City Manager to execute any required agreements on behalf of the City. MEETING DATE: 11/27/06 AGENDA ITEM: Authorization to Purchase Cash Receipting Software from Progressive Solutions Inc (PSI) to Support and Enhance the City's Revenue Collection System. ATTACHMENTS Pages 1. Cash Receipting System Requirements 1 — 9 2. Check Clearing for the 21 st Century Act FAQs 10— 16 Source: Federal Reserve Board 3. Memo to IT Director and City Treasurer Summarizing the 17 - 18 Site Visit to the City of Gardena 4. PSI Quote for Cashiering Central Software w/ System 19 -25 Requirements' Responses 5. PSI Hardware and Software Quote 26 -48CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Software Capability 1 Functionality Exists 2 Configurable with provided tools 3 Modification Necessary 4 Functionality Does Not Exist Culver City Importance 1 High 2 Medium 3 Low Item Pumber Description Culver City . Importance Software- i Capability Vendor Notes 1.00 Equipment 1.01 Capability to set up remote registers that are viewable from City Hall. 1 1.02 Registers contain 2 tape printer (one tape being a backup) 2 1.03 Registers have an automated cash drawer with lock and separate password. 1 1.04 Check Scanner 1 1.05 Bar Code Reader 1 2.00 Set Up/Configuration 2.01 User-defined payment transaction codes and descriptions. 1 2.02 Map payment transaction codes to G/L account information from JD Edwards ERP with interactive validation. For example: if a new G/L account is set up in JD Edwards, a new payment transaction code in the cash receipts system should be able to map to the new account immediately without waiting for a batch load from JD Edwards to the cash receipts system.|1010|Page 1CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Software Capability 1 Functionality Exists 2 Configurable with provided tools 3 Modification Necessary 4 Functionality Does Not Exist Culver City Importance 1 High 2 Medium 3 Low . ,-, i NV- - 1:. 4,ii.,,1,2\-r_,Yz:44, ,ws.to —. escriritiofi • Culver, .. , - . _ - i'K, , -- -7' - Vendor . Notes 2.03 Capability to reference or use JD Edwards customer number and keep a history for the customer. 1 2.04 Customer numbers need to account for multiple mailing addresses of the same person: For example, customers may move from one location in the city to another or may own multiple properties in the city.|1010|2.05 Capability to set up multiple bank accounts.|1010|2.06 Security to provide access to payment transaction codes and G/L accounts by user or user grouping. 1|1010|3.00 Payment Processing 3.01 Check scanning and matching capability 1 3.02 Bar code reading capability 1 3.03 Print bank deposit slips 1 3.04 Allow for cash, credit card, checks, money order, debit card, cashier's check, wire, direct account debit payment types. 1 3.05 Ability to print and reprint receipts for customers. User should be able to custom design the layout of the receipts. 1 Page 2CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Software Capability 1 Functionality Exists 2 Configurable with provided tools 3 Modification Necessary 4 Functionality Does Not Exist Culver City Importance 1 High 2 Medium 3 Low Item Number - escription ' -., Culver City Importance- Software:. Cpabilii Vendor Notes 4.00 Data Entry 4.01 Allow for manual data entry and matching of receipt to invoice 1 4.02 Allow for multiple checks scanning and bar code reading for matching of receipt to invoice|1010|4.03 Allow for one payment to have multiple payment transaction codes 1 4.04 Capability to match a single receipt to multiple transaction types on one invoice. For example: if the receipt is for $1000 and the invoice has two lines, one tranaction type for $950 and another transaction type for $50, the match would be broken into two two separate transaction codes.|1010|4.05 Stamp payment transactions with user, day, time of day and other detailed information for audit purposes.|1010|4.06 Capability to review all open invoices for a customer. 1 Page 3CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Software Capability 1 Functionality Exists 2 Configurable with provided tools 3 Modification Necessary 4 Functionality Does Not Exist Culver City Importance 1 High 2 Medium 3 Low „ ber 4: L.W" ' - cription -, .**.'4, p , . ob ii ' _ Notes 4.07 Capability to review all payment and invoice history for a customer, with selections by time frame, customer name, customer number, mailing address etc.|1010|4.08 Capability of suspense processing when an invoice match is not found for the receipt.|1010|4.09 Capability to handle underpayments and overpayments. 1 4.10 Ability to have an unlimited text field for descriptions/explanations. 2 5.00 Data Entry Validation/Approval 5.01 Ability to print a customer receipt with information such as customer name, amount paid, invoice matched to, payment type, account number, etc. If credit card, print only the last 4 digits of the card number.|1010|5.02 Ability to reprint the receipt at any time. 1 5.03 Ability to print a receipt and matching register by day, by register. Should allow for printing or not printing voids. 1 Page 4CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Software Capability 1 Functionality Exists 2 Configurable with provided tools 3 Modification Necessary 4 Functionality Does Not Exist Culver City Importance 1 High 2 Medium 3 Low Item. Number , . ,T:.,:r- -z*-.Y,-?-4, ,::::,.-,.,, ,.2,-----,',V Descriptioh ., — Culyer , City i ,irtira8iii1te;; Softwer-e,,,N- 60ablirty. Vendor, Notes 5.04 Ensure that any partial payments are first applied to outstanding principal and secondly to any penalties w/ user validation / ability to override. 2 6.00 Data CorrectionNoid 6.01 Ability to correct receipt matching. 1 6.02 Ability to void receipt and matching. Include void explanation and audit trail of original and voided transaction. 1 6.03 Ability to void invoice from the system. Provide audit trail of the original invoice and void. 1 6.04 Capability for supervisory approval prior to voidoing receipt, matching or invoice. 1 6.05 Ability to print an adjusted transaction register.|1010|6.06 Ability to print a voided transaction register.|1010|7.00 Remote Processing/Review/Approval 7.01 Ability to print a receipt and matching register by day, by register. 1 Page 5CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Culver City Importance Software Capability 1 High 1 Functionality Exists 2 Medium 2 Configurable with provided tools 3 Low 3 Modification Necessary 4 Functionality Does Not Exist 4.if, 1.o. r..., , , .,... --:-;-, -Nrerldor-'''' Notes 7.02 Ability to electronically notify approver that a batch is ready for approval prior to posting.|1010|7.03 Ability to see receipt and invoice detail using the JD Edwards G/L drill down functionality.|1010|8.00 Reporting 8.01 Cash receipts journal that shows customer number, name, date, time, cashier, invoice number, description, amount, etc.|1010|8.02 Daily cash collection report that summarizes all cash receipts by operator and register, by transaction type and payment type.|1010|8.03 Operator close out report that includes all transactions handled by that operator during the current session. Should show receipt number, date, operatorm register, transaction type, payment type, amount applied, amount unapplied, voided transactions, etc.|1010|Page 6CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Software Capability 1 Functionality Exists 2 Configurable with provided tools 3 Modification Necessary 4 Functionality Does Not Exist Culver City Importance 1 High 2 Medium 3 Low item. NOinber. ,-- ----- -',.- ,--,4.-, -.~5,-:.',' - ,-; .4; Description 7 ' Culyer City, Importanc, e , Software,„ Capability ( Vendor Notes 8.04 Journal report that identifies receipt and matching information that is posted and unposted, by operator and register. 1 8.05 Ad hoc report creation. 2 9.00 Automated Interfacing 9.01 Interface customer number, mailing address, invoice number, etc. from JDE NR systems into cash receipts system. 1 9.02 Interface payment amount, customer information, invoice information, etc. from cash receipting system to JOE A/R systems.|1010|9.03 Interface payment amount, customer information, invoice information, etc. from cash receipting system to JOE G/L system.|1010|9.04 Interface payment information from Cash Receipting to department specific applications such as Permitting, Recreation, and Sanitation. 1 10.00 Imaging 10.01 Ability to image checks 1 Page 7CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Software Capability 1 Functionality Exists 2 Configurable with provided tools 3 Modification Necessary 4 Functionality Does Not Exist Culver City Importance 1 High 2 Medium 3 Low Item Willi„4.6 :,,r, _..;,c,, , • .,,,,,„1.1,4 , — , es -e. 4:::::;',;”. Gulver rli a 4 I) '4, ' Vendor Notes 10.02 Ability to electronically notify and route checks to appropriate people for review. 10.03 Cash Receipting System that is compatible and supports Check21. 11.00 Billing 11.01 Ability to automate the billing function for refuse, fire inspections, business license, etc. Over 2000 invoices per month. 11.02 Ability to use software as a centralized billing system, so that all invoices are generated and tracked within the system provided that the appropriate data fields have been populated for billing 11.03 Ability to design multiple types of invoices depending on the services that is being billed. i.e. Sanitation billing would differ in design and format from a Fire Inspection invoice. 12.00 Online Payment Services 12.01 Provide online payment services over the City's website with invoice matching where applicable. 1 Page 8Software Capability 1 Functionality Exists 2 Configurable with provided tools 3 Modification Necessary 4 Functionality Does Not Exist Culver City Importance 1 High 2 Medium 3 Low • ,escpption:i Online system should be compatible with Verisign's "Pay Flow Link" for Transaction Processing. Item Number 12.02 Culver.CItyk IrifP6rtarider'' Softwerar., Vendor Notes|1010|CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Page 9Boa FRB: Frequently Asked Questions about Check 21 Page 1 of Check Clearing for the 21st Century Act NbQut I frequently Asked Questions_ Frequently Asked Questions about Check 21 General 1. What is Check 21 and what is its basic purpose? Check 21 is a federal law that is designed to enable banks to handle more checks electronically, which should make check processing faster and more efficient. Today, banks often must physically move original paper checks from the bank where the checks are deposited to the bank that pays them. This transportation can be inefficient and costly. Check 21 became effective on October 28, 2004. 2. How will Check 21 make check processing more efficient? Instead of physically moving paper checks from one bank to another, Check 21 will allow banks to process more checks electronically. Banks can capture a picture of the front and back of the check along with the associated payment information and transmit this information electronically. If a receiving bank or its customer requires a paper check, the bank can use the electronic picture and payment information to create a paper "substitute check." This process enables banks to reduce the cost of physically handling and transporting original paper checks, which can be very expensive. 3. Is electronic check processing secure? Electronic check processing is not new to the financial industry and is a safe and reliable way of processing payments. It uses technology that has been developed and tested to process your check information securely. 4. Does Check 21 mean that customers can't get their checks back in their account statements? No. Check 21 does not require customers to stop receiving checks back in their account statements. The contents of an account statement will continue to be governed by the account agreement between the bank and its customer. Rather, when banks have agreed to provide paid checks in statements, Check 21 permits the bank to provide either the original check or a substitute check. S. What changes can I expect when Check 21 goes into effect? If you are among the many customers of banks that do not receive your canceled checks Page 10 http://www.federalreserve.gov/paymentsystems/truncation/faqs2.htm 11/08/2006FRB: Frequently Asked Questions about Check 21 Page 2 of with your account statement, you likely will not notice any change when Check 21 goes into effect on October 28, 2004. You will notice a change only if you receive a substitute check when you were expecting an original check. For example, if you receive canceled checks with your account statement, you might begin to receive a mixture of canceled original and substitute checks. If you receive image statements (pictures of several checks on a single page), you also may notice that some of the pictures are of substitute checks. 6. Will Check 21 increase the speed with which checks are cleared between banks? The speed of check-processing already has increased in response to check-system improvements other than Check 21. Thus, even now, once a check is deposited with a bank, it is almost always delivered overnight to the paying bank and debited from the checkwriter's account the next business day. Check-processing speeds should continue to increase, over time, as banks make further operational changes in response to Check 21. That means money may be deducted from your checking account faster. Before you write a check, it's always best to make sure your checking account has enough money in it to cover the check. 7. Will Check 21 change how fast my bank must make my check deposits available for withdrawal? Another federal check law (the Expedited Funds Availability Act) specifies the maximum times by which your bank must make funds available to you, though most banks make funds available faster than required. Check 21 did not change these maximum hold times. However, the Expedited Funds Availability Act requires the Federal Reserve Board to reduce maximum hold times in step with reductions in actual check-processing times. Thus, over the longer term, if Check 21 sufficiently increases the speed of check processing, the Board will reduce maximum hold times. A bank's decision to place a hold on funds you deposit by check does not affect the interest that you receive on the deposited funds. Specifically, if you deposit a check into an interest bearing checking account, your bank is generally required to begin to credit interest to your account no later than the business day on which the bank receives credit for the funds. 8. What is the difference between Check 21 and programs that convert checks to electronic payments? A check you write may be processed as a check. In that case, your rights are governed by check laws and regulations. Some merchants, however, may use your check as a source of information to create an electronic fund transfer. You must receive notice that your check may be processed this way. Electronic fund transfers are governed by different laws and have different consumer rights than check payments. For more information, see the brochure "When Is Your Cheek Not a Check: Electronic Check Conversion" published by the Federal Reserve Board. Substitute Checks 9. What is a substitute check? Page 11 http://www.federalreserve.gov/paymentsystems/truncation/faqs2.htm 11/08/2006Front view of a substitute check Back view of a substitute check FRB: Frequently Asked Questions about Check 21 Page 3 of A substitute check is a paper copy of the front and back of the original check. A substitute check is slightly larger than a standard personal check so that it can contain a picture of your original check. A substitute check must be printed in accordance with very specific standards so that the substitute check can be used in the same way as the original check_ If you receive a substitute check that appears to have a problem, such as it contains a bad picture of your original check, contact your bank. 10. When is a substitute check legally the same as the original check? A substitute check is legally the same as the original check if it accurately represents the information on the original check and includes the following statement: "This is a legal copy of your check. You can use it the same way you would use the original check." The substitute check must also have been handled by a bank. If you receive a substitute check that is not legally the same as the original check and you suffer a loss related to the substitute check, Check 21 provides you with a special procedure that you can use to get your money back. 11. Can 1 use a substitute check as proof of payment? Yes. You can use a substitute check as proof of payment because it is legally the same as the original check. For instance, the IRS will accept your substitute cheek as proof of payment. If you do not have a substitute check but have a copy of an original check or a copy of a substitute check, you usually can use these documents as proof of payment. Page 12 http://www.federalreserve.gov/paymentsystems/truncation/faqs2.htrn 11/08/2006FRB: Frequently Asked Questions about Check 21 Page 4 of 12. How are image statements different from substitute checks? Instead of providing canceled checks, some banks provide customers with image statements that show multiple pictures of canceled checks per page. The pictures on the image statement could represent an original check or a substitute check. Whether the consumer receives an original check, a substitute check, an image statement, or a line item on his or her account statement, check law protects consumers against erroneous and unauthorized check payments. In addition, Check 21 provides a special refund procedure (called "expedited recredit"), if you receive a substitute check. For more information, see the consumer protection section below or contact your bank. 13. Can 1 demand a substitute check from my bank instead of a copy? Your bank may provide you with a substitute check, but it is not required by law to do so. If your bank does not provide you with a substitute check, you usually can use a copy of an original check or a copy of a substitute check as your proof of payment. 14. What should I do if something is wrong with the substitute check that receive? A substitute check must show the front and back of the original check and be printed in accordance with very specific standards. If you receive a substitute check that appears to have a problem, such as it contains a bad picture of your original check, contact your bank. If you suffered a loss related to a substitute check you received, see the consumer protection section below or contact your bank. 15. Is my bank required to tell me about substitute checks? Under Check 21, banks are required to provide a disclosure to their consumer customers who receive canceled checks with their monthly statements. The disclosure describes substitute checks and consumer rights regarding substitute checks. Banks must provide this disclosure to existing customers not later than the first statement mailing after Check 21 becomes effective on October 28, 2004. After October 28, 2004, banks must provide this disclosure to new customers at the time the customer relationship is established. If you receive canceled checks with your account statement but did not receive the required disclosure within the timeframes described above, please request one from your bank. Banks must also provide this disclosure when a consumer requests an original check or copy of a check and receives a substitute check. In addition, the bank must provide this disclosure if a check the consumer has deposited is returned unpaid to the consumer in the form of a substitute check. Original Checks 16. Can I still get my canceled checks back? If you get your canceled checks back with your account statements today, you will continue to receive canceled checks unless your bank notifies you otherwise. The only difference will be that some of the canceled checks that you receive may be substitute checks. You can use Page 13 http://www.federalreserve.gov/paymentsystems/tmncation/faqs2.htm 11/08/2006FRB: Frequently Asked Questions about Check 21 Page 5 of a substitute check the same way you would use an original check, such as for recordkeeping and proof-of-payment purposes. 17. Can I get my original check if I need it? Banks are not required currently to keep your original check for any specific length of time, and Check 21 does not add any new retention requirements. In many cases, the original check may be destroyed. If you request your original check from your bank, your bank may provide you with the original check, a substitute check, or a copy of the check. 18. Can I prevent others from using my original check to create a substitute check? No. Generally, any check can be used to create a substitute check, except a foreign check. Banks and their customers must accept a substitute check as if it were the original check because the substitute check is legally the same as the original check. 19. What if I receive a substitute check representing a fraudulent original check? Check law provides protections against fraudulent checks so that generally you are not responsible if you notify the bank in a timely fashion. This is the case whether you receive an original check, a substitute check, an image statement, or a line item on your account statement. If you receive a substitute check of a fraudulent original check, you may have additional rights under Check 21. Contact your bank for more information. 20. Do J need to use magnetic ink or toner when printing checks? To process checks, banks' automated check sorting equipment relies on numeric information that appears at the bottom of checks and is printed in magnetic ink. This information is known as the check's magnetic ink character recognition line, or MICR line, and contains information such as the routing number of the bank on which the check is drawn, the account number on which the check is drawn, and the check serial number. Generally applicable industry standards for original checks long have required the MICR line to be printed in magnetic ink; the need for magnetic ink on original checks is not the result of the Check 21 Act. Only the MICR line of a check must be printed in magnetic ink. The rest of the information on the check, such as the date, the payee name, and the amount, can be printed in regular, non-magnetic ink. If you make payments by printing checks at home and the checks you use have pre-printed MICR lines, then the rest of the information that you print on the checks need not be in magnetic ink By contrast, if you must print a check's MICR line because it is not preprinted on the check, you should print the MICR line in magnetic ink. Consumer Protection 21. How am I protected under Check 21? Check law protects you against erroneous and unauthorized check payments. In addition, Page 14 httn-//www fetriAralreqPTVP any/navrnentsyctem q/ininnatinn/fa n c7 1 1 /AO MilneFRB: Frequently Asked Questions about Check 21 Page 6 of Check 21 contains a number of new protections for consumers. For example, Check 21 contains a special refund procedure (called "expedited recredit") for a consumer who suffers a loss related to a substitute check he or she received. 22. What protections do I have ill receive image statements, access pictures of my checks online, or receive an account statement with descriptive information about my canceled checks? Years ago, many banks stopped providing customers with canceled checks and, as an alternative, began providing customers with documentation showing which checks were paid. Regardless of the form of documentation you receive, check law protects you against erroneous and unauthorized check payments. 23. if I suffer a loss related to a substitute check I received, can I file a claim with my bank? Yes. If you have received a substitute check, you can file a special claim with your bank for a refund (called an "expedited recredit") if you believe that 1. The substitute check was incorrectly charged to your account, 2. You lost money as a result of the substitute check being charged to your account, and 3. You need the original check or a copy sufficient to show that the substitute check was incorrectly charged to your account. 24. Does the special refund procedure apply if I receive an image statement with a picture of a substitute check but do not receive the actual substitute check? No. The special refund procedure applies only if you actually received a substitute check. However, check law protects you from improper check charges regardless of whether you receive an original check, substitute check, image statement, or a line item on your account statement. If you feel an error was made to your account, contact your bank immediately. 25. How do I make a claim under the Check 21 refund procedure? If you believe that you have suffered a loss relating to a substitute check that you received, you should contact your bank as soon as possible but no later than 40 days from when your bank mailed or delivered your account statement. Your bank will ask you to provide information it needs to investigate your claim, which could include a description of the problem, an estimate of your loss, and information about the substitute check. 26. How quickly must my bank handle my claim, and when will my account be refunded? Your bank should investigate your claim promptly. If your ba-nk fmds that it incorrectly charged your account, the bank must refund the amount of your claim (up to the amount of the substitute check, plus interest if your account earns interest) within one business day of making that decision. Page 15 http://www_federalreserve.gov/Daymentsystems/truncation/fans2.htm 11/0R/2006FRB: Frequently Asked Questions about Check 21 Page 7 of If your bank is unable to determine the validity of your claim within 10 business days after receiving it, your bank on that day must refund the amount of your loss up to the lesser of amount of the substitute check or $2,500, plus interest (if your account earns interest). Unless your bank determines that your claim is not valid, it must refund to your account any remaining amount of your loss, up to the amount of the substitute check, plus interest, no later than the 45th calendar day after the bank received your claim. If your bank later determines that your claim was not valid, it may reverse the refund and interest it has paid to you. 27. How will I know if my bank has refunded my account? If your bank refunds your account, it will send you a notice by the next business day that tells you the amount of your refund and the date on which you may withdraw those funds. Normally, you may withdraw your refund on the business day after your bank refunds your account. 28. Can my bank delay my ability to withdraw the amount that it refunds? If your bank is still investigating your claim, it may delay your ability to withdraw up to the first $2,500 of the refund if (1) you are a new accountholder, (2) your account is repeatedly overdrawn, or (3) the bank has reason to believe the claim is fraudulent. In these cases, your bank must allow you to withdraw the funds after determining that your claim is valid or on the 45th calendar day after the day that you submitted your claim, whichever occurs first. 29. What happens if my bank says it charged my account correctly? If your bank determines that it correctly charged your account, it will send you a notice by the next business day that explains the reason for that decision and will include either the original check or a copy of the original check that is sufficient to determine the validity of your claim. Your bank will also either include the documentation the bank used in making its determination or will explain that you can request such documentation. SzlesetzbeinkieffliftiliS.AMMIMOM HPIP.c I RaKttlerttMItIM Accessibility I .contact Us Last update: January 27, 2005 Page 16 http://www.federalreserve.gov/paymentsystems/truncation/faqs2.htm 11 inROon6Williams, Michele From: Williams, Michele Sent: Tuesday, August 08, 2006 3:37 PM To: Richo, John; Alexander, Crystal Cc: Maggio, Karen; Nickerson, Mike; Gill, Steve; Clarke, Tony; Rao, Nagam Subject: Follow-up: Cash Receipting Software Selection John and Crystal, As you know, we visited the City of Gardena on yesterday to view their installation of Progressive Systems — Cashiering Central. The following staff were in attendance: Karen Maggio, Tony Clarke, Mike Nickerson, Steve Gill, and Michele Williams. MEETING SUMMARY • We met with Shellie Gallagher, Chief Deputy Treasurer. Also in attendance - Andrea (front-end user of the system) and Alex (IT Technical support). • Gardena has used the Progressive Systems Inc (PSI) Cashiering Central product since 2001. The have 6-7 cashiering stations located throughout the City including (business license, police, admin services, parks/recreation). Each department balances their collected revenue and turns it into Treasury for final validation and reconciliation. • Billing for (police) false alarms and business licenses is generated within the PSI module. • One feature of the software that the users particularly like is that they can determine via application security which users have access to specific account codes. For example, users in Parks/Rec can only view and post to accounts that are related to their operation. There is no possibility of accidentally posting to an account related to another department or another type of revenue collection. Additionally, security can be configured so that only certain staff are granted the ability to void transactions. • Gardena uses Eden as their financial system. PSI worked with them on generating the necessary interfaces. • Gardena does not have any utility billing — however in the future, they anticipate offering wireless Internet services (at a fee) which will be billed using the PSI product. This is a collaborative effort involving several south bay cities. • Since they do not bill for any utility, the City has a lower transactional volume compared to Culver City, they bill for non-sufficient funds (NSF), insurance claims and property damage. Currently, Gardena uses Cashiering Central, Alarm Billing, and Business License modules from PSI. They are very happy with the product and highly recommend the vendor. The are very pleased with the high level of customer support that PSI provides. The vendor responds promptly to all requests, installs upgrades, and is able to troubleshoot quickly using a web tool permitting direct connectivity. Page 17• Technical Information — The product is written in .Net Framework, using a MS SQL database, and uses Crystal Reports as the reporting tool. The vendor will develop custom reports for the client as requested. The vendor packages and deploys the client upgrades using InstallShield. There is one generic username and password for the SQL database which simplifies access and troubleshooting. Gardena has also been testing the product using Microsoft's Vista Beta 1 and 2; they believe the product to be compliant with the upcoming Microsoft OS. • The vendor also has thumbprint recognition which is a desired functionality at locations where multiple users work on the same workstation (parks and recreation). The thumbprint device is USB controlled. The only drawback is that if the device is not working, users tend to forget their passwords if they need to login in manually. • The "power-users" identified in Treasury maintain all user accounts for security and software access. • The City of Gardena installed Cashier Central within a 6 month timeframe including a parallel run of 3 months. The vendor has remained amenable to offering training as necessary when scheduled by the client. • Gardena also has online payments available over the web for business license renewals (service not available for new business licenses). They use Authorized Net for the payment processing function. • Regarding interfacing the receipt transactions to the financial system, the process can be configured so that transactions are summarized as required by the client (by day, by tran code/account, by station, etc) NEXT STEPS • Staff is in the process of updating the cash receipting specifications/requirements (original document obtained from Karen Maggio). The revised version (including updated requirements). This document will be provided to PSI with the objective of confirming that the cashiering module will meet the needs of the City. • The vendor was contacted today and has agreed to schedule a meeting with City staff for a hands-on demonstration of the product that simulates our environment. They will configure the system with some of our transaction codes and accounts and enable our staff to enter sample transactions. • Also, in speaking with the vendor, they confirmed an install base of approximately 30 clients. An additional 2 references will be provided in which phone interviews will be conducted to ascertain their experience with the product. Page 18CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Software Capability 1 Functionality Exists 2 Configurable with provided tools 3 Modification Necessary 4 Functionality Does Not Exist Culver City Importance 1 High 2 Medium 3 Low Item Number - ,,_,-, _,,, - co- -,' .-. '14-- Description ' 2, '-' '''. ''''''V - Culver.City ,. ,,,. I rn pb rfan te Software',- iiti' a t ,-. 1 -; Vendor - , -,- — '' '' Notes 1.00 Equipment _. 1.01 Capability to set up remote registers that are viewable from City Hall. 1 1 1.02 Registers contain 2 tape printer (one tape being a backup) 2 1 2nd backup provided via SQL logging 1.03 Registers have an automated cash drawer with lock and separate password. 1 1 1.04 Check Scanner 1 1 1.05 Bar Code Reader 1 1 2.00 Set Up/Configuration 2.01 User-defined payment transaction codes and descriptions. 1 1 2.02 Map payment transaction codes to G/L account information from JD Edwards ERP with interactive validation. For example: if a new G/L account is set up in JD Edwards, a new payment transaction code in the cash receipts system should be able to map to the new account immediately without waiting for a batch load from JD Edwards to the cash receipts system. 1 3 Real time integration with GL requires programming 2.03 Capability to reference or use JD Edwards customer number and keep a history for the customer. 1 1 2.04 Customer numbers need to account for multiple mailing addresses of the same person: For example, customers may move from one location in the city to another or may own multiple properties in the city. 1 2 Interface transmits account #s to Subsidiary Ledger (Rai Page 1 of 7CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Software Capability 1 Functionality Exists 2 Configurable with provided tools 3 Modification Necessary 4 Functionality Does Not Exist Culver City Importance 1 High 2 Medium 3 Low Item NiiiiibOr Xiattig = Velidor-v,_, Notes 2.05 Capability to set up multiple bank accounts. 1 1 2.06 Security to provide access to payment transaction codes and G/L accounts by user or user grouping. 1 1 3.00 Payment Processing 3.01 Check scanning and matching capability 1 2 With purchased software/hardware 3.02 Bar code reading capability 1 1 3.03 Print bank deposit slips 1 1 3.04 Allow for cash, credit card, checks, money order, debit card, cashier's check, wire, direct account debit payment types. 1 1 3.05 Ability to print and reprint receipts for customers. User should be able to custom design the layout of the receipts. 1 1 4.00 Data Entry 4.01 Allow for manual data entry and matching of receipt to invoice 1 1 4.02 Allow for multiple checks scanning and bar code reading for matching of receipt to invoice 1 1 4.03 Allow for one payment to have multiple payment transaction codes 1 1 Page 20 Page 2 of 7CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Software Capability 1 Functionality Exists 2 Configurable with provided tools 3 Modification Necessary 4 Functionality Does Not Exist Culver City Importance 1 High 2 Medium 3 Low Item • Number ,,,,-;,,4: in escription:'".' Culyer, City , iiiii566iibe Software: npability 4 , Vendor Notes 4.04 Capability to match a single receipt to multiple transaction types on one invoice. For example: if the receipt is for $1000 and the invoice has two lines, one tranaction type for $950 and another transaction type for $50, the match would be broken into two two separate transaction codes. 1 1 4.05 Stamp payment transactions with user, day, time of day and other detailed information for audit purposes. 1 1 4.06 Capability to review all open invoices for a customer. 1 1 For each purchased interfaces 4.07 Capability to review all payment and invoice history for a customer, with selections by time frame, customer name, customer number, mailing address etc. 1 1 For each purchased interfaces 4.08 Capability of suspense processing when an invoice match is not found for the receipt. 1 1 Dependent upon subsidiary ledger (SL) 4.09 Capability to handle underpayments and overpayments. 1 1 4.10 Ability to have an unlimited text field for descriptions/explanations. 2 1 5.00 Data Entry Validation/Approval Page 21 Page 3 of 7CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Software Capability 1 Functionality Exists 2 Configurable with provided tools 3 Modification Necessary 4 Functionality Does Not Exist Culver City Importance 1 High 2 Medium 3 Low Item Number 10.45r,se_t—vo- . t"–I '--•4 .,- zn' -. 4 . - • - .1.14 ' ,.41P4F,-,-,-- A ( 4',. ' De.sc kr!Ptton '.*°, ' ' ' .0 . . t. C ' ' .4|109| • ' Vendor r;.4. - , Notes 5.01 Ability to print a customer receipt with information such as customer name, amount paid, invoice matched to, payment type, account number, etc. If credit card, print only the last 4 digits of the card number. 1 1 5.02 Ability to reprint the receipt at any time. 1 1 5.03 Ability to print a receipt and matching register by day, by register. Should allow for printing or not printing voids. 1 1 5.04 Ensure that any partial payments are first applied to outstanding principal and secondly to any penalties w/ user validation / ability to override. 2 1 Dependent upon subsidiary ledger (SL) 6.00 Data CorrectionNoid 6.01 Ability to correct receipt matching. 1 1 6.02 Ability to void receipt and matching. Include void explanation and audit trail of original and voided transaction. 1 1 6.03 Ability to void invoice from the system. Provide audit trail of the original invoice and void. 1 1 6.04 Capability for supervisory approval prior to voidoing receipt, matching or invoice. 1 1 6.05 Ability to print an adjusted transaction register. 1 1 6.06 Ability to print a voided transaction register. 1 2 Voids are typically reflected on the daily register 7.00 Remote Processing/Review/Approval Page 22 Page 4 of 7CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Software Capability 1 Functionality Exists 2 Configurable with provided tools 3 Modification Necessary 4 Functionality Does Not Exist Culver City Importance 1 High 2 Medium 3 Low Item Number - - , , -,14-:.-,- -?^,,rDescription , . - ulverCity ,.\. orlance Software CaPability Vendor Notes 7.01 Ability to print a receipt and matching register by day, by register. 7.02 Ability to electronically notify approver that a batch is ready for approval prior to posting. Usually receipts & signed registers are provided to Super 7.03 Ability to see receipt and invoice detail using the JD Edwards G/L drill down functionality. If all transaction detail is merged 8.00 Reporting 8.01 Cash receipts journal that shows customer number, name, date, time, cashier, invoice number, description, amount, etc. 8.02 Daily cash collection report that summarizes all cash receipts by operator and register, by transaction type and payment type. 8.03 Operator close out report that includes all transactions handled by that operator during the current session. Should show receipt number, date, operatorm register, transaction type, payment type, amount applied, amount unapplied, voided transactions, etc. 8.04 Journal report that identifies receipt and matching information that is posted and unposted, by operator and register. 8.05 Ad hoc report creation. 9.00 Automated Interfacing Page 23 Page 5 of 7CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Software Capability 1 Functionality Exists 2 Configurable with provided tools 3 Modification Necessary 4 Functionality Does Not Exist Culver City Importance 1 High 2 Medium 3 Low Item , O .," A',05" Number. 0.4p,tkft=2::,-, esct.iption` Interface customer number, mailing address, invoice number, etc. from JDE NR systems into cash receipts system. 1 2 _d -- Notes ' Via purchased interface 9.01 9.02 Interface payment amount, customer information, invoice information, etc. from cash receipting system to JDE NR systems. 1 2 Via purchased interface 9.03 Interface payment amount, customer information, invoice information, etc. from cash receipting system to JDE G/L system. 1 2 Via purchased interface 9.04 Interface payment information from Cash Receipting to department specific applications such as Permitting, Recreation, and Sanitation. 1 2 Via purchased interface 10.00 Imaging 10.01 Ability to image checks 1 1 10.02 Ability to electronically notify and route checks to appropriate people for review. 2 3 We need to understand your requirements 10.03 Cash Receipting System that is compatible and supports Check21. 1 1 11.00 Billing 11.01 Ability to automate the billing function for refuse, fire inspections, business license, etc. Over 2000 invoices per month. 1 1 Via PSI systems or via integration 11.02 Ability to use software as a centralized billing system, so that all invoices are generated and tracked within the system provided that the appropriate data fields have been populated for billing 1 I think you mean centralized remittance procesing Page 24 Page 6 of 7CULVER CITY CASH RECEIPTS SYSTEM REQUIREMENTS Software Capability 1 Functionality Exists 2 Configurable with provided tools 3 Modification Necessary 4 Functionality Does Not Exist Culver City Importance 1 High 2 Medium 3 Low Item _ , Number . Description Culver City Importance Software , Capability _- Vendor Notes 11.03 Ability to design multiple types of invoices depending on the services that is being billed. i.e. Sanitation billing would differ in design and format from a Fire Inspection invoice. 1 1 12.00 Online Payment Services 12.01 Provide online payment services over the City's website with invoice matching where applicable. 1 1 12.02 Online system should be compatible with Verisign's "Pay Flow Link" for Transaction Processing. 1 3 Standard SSL is all we require. Need verisign specifications. Page 25 Page 7 of 7Progressive Solutions® Proposal For Central Cashiering Software & Services For City of Culver City June 22, 2006 PROGRESSIVE SOLUTIONS® Glenn R. Vodhanel P 0 Box 783 Brea, California 92822-0783 (714) 671-1597 Progressive Solutions® June 22, 2006 Page 26TABLE OF CONTENTS Letter of Transmittal 3 A. Cashiering 4 B. OneStop 6 C. Scope of Services 6 D. Company History & Key Personnel 8 E. Relevant Experience/References 9 F. Sample Screens 10 G. Web Payment Samples 14 H. Compensation 22 I. Options 25 Software License & Services Agreement Exhibit A-Response to Customer Specifications Exhibit B- Requirements Exhibit C-Software Maintenance Exhibit D-Hardware Maintenance Progressive Solutions® 2 June 22 2006 Page 27PROGRESSIVE SOLUTIONS® P 0 Box 783 Brea, California 92822-0783 (714)671-1597 Voice (714)255-9775 Facsimile June 22,2006 Mr. Nagam Rao, Treasury Division Manager City of Culver City 9770 Culver Blvd. Culver City, CA 90232 Dear Mr. Rao, Congratulations on your interest in Progressive Solutions® Ca$hierCentral. Thank you for the opportunity to respond to your request for quote. Please allow me to re-introduce our company and services. The Company. Progressive Solutions®, a California corporation, located in the City of Brea, has assisted California cities with their data processing needs since 1979. The Company currently has over twenty five clients and offers several other software products. Purpose. The Company's mission is to provide the finest software and support available. We are unique in the marketplace for three reasons: • our commitment to service, • the close attention we pay to our clients' needs and the incorporation of client suggestions in software design and enhancements, and • availability of the experts who designed the software(for training and software modifications). The attached response to your RFP includes specifications and feature information for Ca$hierCentral, the premier windows based cashiering system. These items may be of particular interest to you: • Ca$hierCentral operates on Windows NT, 2000, XP and Novell systems. • Ca$hierCentral can provide real time data validation and posting with third party software. • We have an extensive audit trail coupled with simple and effective system security. • PSI software support is only a phone call away. We provide quick response and knowledgeable support staff available to you from 8:00 AM through 5:00 PM (Pacific Standard Time). In the following pages you will find brief descriptions of the system features that the City of Culver City have identified as necessary and the features Progressive Solutions® has recognized as important in cashiering systems. We will be pleased to provide you with any additional information needed in making your vendor selection. If you have any suggestions or questions, or would like additional information on Ca$hierCentral, please feel free to give me a call at (714) 671-1597. I look forward to our future success. Respecffully Submitted, kg4.zi Glenn R. Vodhanel Page 28 Progressive Solutions® Page 3 6/22/2006A. Cashiering Ca$hierCentral NT/2000/XP Ca$hierCentral is the premier cashiering system available on any platform. The system has been designed for reliability and flexibility. Features have been designed as table- driven options to ensure complete flexibility. Ca$hierCentral was designed with extensive input from data entry clerks and customer service representatives--the people who use the system with the greatest frequency. Most day-to-day operations may be handled from a single screen for fast and efficient processing. • Ca$hierCentral uses the Microsoft SQL Server database engine. Data entry and modifications are controlled through C++ programs that implement extensive data validation. Instructions for using other ODBC compliant databases are included. > Ad hoc reporting is available as well as the ability to export data into Excel or Quattro Pro or any other ODBC compliant application. > Our system handles multiple charges and late fees. In fact virtually any method of charging you can dream up, Ca$hierCentral can accommodate. > The system supports data import/export of system data to a laptop. One screen is minimum necessary Most commonly needed on-line data may be entered in the Cash Receipt Maintenance Screen. Lookups and postings to third party systems are handled through interactive pop-ups within the same window. Report Customization Ca$hierCentral allows the user complete control over their data selection. The user may select from a choice of predefined report settings or may create and save their own. The user may select the type of report based on a wide variety of data classifications (e.g., reports by finance codes payment types, departments, etc). Ca$hierCentral also allows the user to preview the report before it is printed. Reports may be exported to Microsoft Excel, Microsoft Access, a comma-delimited file and others. Finally, reports may be emailed without leaving Ca$hierCentral. Menu & Table Driven Ca$hierCentral is both menu and table driven. Processes may be selected from the toolbar or main menu using a mouse or keyboard. Right click menus are supported as well as context sensitive and online helps. Integration with 3 rd party software. Ca$hierCentral was designed to work seamlessly with multiple vendors. Each interface allows lookup into the 3 rd party systems by at least the account, name and address. Furthermore, our real-time interfaces allow validation of the payment amount with the balance due and immediately reports inconsistencies. Other values that may be viewed include but are not limited to: CashOnly & AccountStatus. Ca$hierCentral may export payment data to each 3 rd party system for journal entry processing or Ca$hierCentral may retrieve the journal detail, update payment status in the 3 rd party system and create the journal entries on behalf of the 3 rd party system. Software Documentation Our documentation is concise and thorough. The documentation consists of an online help file. Documentation updates are generally provided with major software revisions for clients subscribing to annual software support. Page 29 Progressive Solutionse Page 4 6/22/2006"On-line" Data Entry The software allows on-line entry of all receipts in Cash Receipts Maintenance. This entry is usually performed while the customer service representative is on the telephone or interacting with the requesting customer. All payments and transactions are immediately recorded in a central database for up to the minute review by administrative staff from their office desktop. Multiple Cashier Design Ca$hierCentral was designed as a multi-user system. Each cashier is given a security level. The system administrator may elect to allow a user access to certain fields but not to others. Field labels may be changed (even into different languages) depending on the user security level. Access to Ca$hierCentral may also be granted and revoked at any time or on specific dates. In addition, because of its centralized design, an administrator can log into any pc where the software is installed and view the transactions in real-time mode at any register. Audit Trail All changes to the database are time/date stamped and the user's name and workstation is recorded. In addition, the user's name and workstation appears at the bottom of all data entry screens. Search Capabilities Any user-defined field may serve as the basis of a lookup key. In addition, when searching for receipts the user may specify the sort order for the results. All searches and query options can be passed to reports. A manager may specify reports by any register or and any drawer at any time and select the reports by a number of criteria. History may be enabled in order for posted receipts to be automatically archived for later lookup by name, account number, check number etc. Software Maintenance & Upgrades No charge is made for software assistance provided: (1) a Software Support Agreement is in effect, and (2) software assistance is not the result of modifications made by parties other than Progressive Solutions®. Software enhancements that are part of the regular update process are included in the cost of the Software Maintenance Agreement. Charges for custom system enhancements that the Client may specifically request are made pursuant to written proposals and are billed at the rate specified in such proposals. Security Functions Ca$hierCentral has the ability to have multiple users each with their own user name, password and a permission type based on the users daily functions. Along with requiring a password to log into Ca$hierCentral, the program also has the ability to require a password on all transactions, on all voids, on opening the drawer, on changing users and can also require a manager's password when voiding a receipt. For ultimate security, Ca$hierCentral offers a low cost integrated fingerprint recognition hardware option. Progressive Solutions® 5 June 22, 2006 Page 30B. OneStop Progressive Solutions® proposes the OneStop solution that results in a City hosted on line payment system. We have found that this is infinitely preferable by our municipal customers over an off-site hosted offering. Complete retention and control over the City's own data being paramount in the long list of benefits to a city hosted solution is a key part of what has driven the development of the PSI OneStop'm software product. City IT staff efforts with regards to implementation and maintenance of our turn key solution should be vastly minimized when compared to any less comprehensive offering including an off-site web hosted alternative. As an added benefit, use of the PSI system design allows the city to know how much is collected each day for all payment activities or to summarize receipts by any period of time. PSI can accept and account for all payments (including ACH & lockbox) and transfer them to the appropriate 3 rd party billing system. C. Scope of Services Project Management Team The project manager will be Glenn Vodhanel. He will be assisted by Kevin Harker, Software Development Manager for Ca$hierCentral, Steve Le Van may assist with customer interviews to create development of implementation specifications and Shawn Cobarrubias may serve as a client liaison and provide Crystal Reports- customization. Additional personnel will be retained as needed to meet or exceed client objectives. Installation, initial training and on-going support during the implementation period are all provided and included in our proposal. Primary Objectives • Ease of use for the end user yet powerful, comprehensive and flexible for management. • Efficient data entry, maintenance and validation. • Efficient generation of receipts, reports, validations, endorsements, proper change, etc. • Ease of obtaining ad hoc management and operational information. General Implementation Plan 1. Provide implementation kick off meeting to discuss register location, installation and training issues. 2. Review Client charges and implement tables and rate structures in Ca$hierCentral 3. Provide user training and operational training to Client staff 4. Provide additional system tuning 5. Software maintenance and customer services Progressive Solutions® 6 June 22, 2006 Page 31Timeline The number of days required for delivery and installation of the software after execution of the contract and receipt of payment are determined by our receipt of your purchase order. Implementation of our packaged software can be completed in as few as 60 days after contract execution. An implementation schedule detailing the steps and responsibilities of each party will be provided upon execution of the contract. Access to the system and data must be made available via the internet using PC Anywhere, Terminal Services, or comparable method. Performance Metrics The City of Desert Hot Springs implemented PSI's Ca$hierCentral in March of 2006. PSI transported the City from manual issuance of cash receipts & hand tabulation/compilation of journal entry transactions to a state of the art automated receipts and journal entry creation system. Significant staff time was freed up for revenue producing activities previously not possible due to staff time limitations. Benefits derived include: Elimination of double entry of receipts 3 Revenue is posted to the GL daily versus weekly. The GL is always current within 24 hours. 3 Reduction of bank account transfers due to real time cash received balances. 3 Solid audit trails provide for analysis at any time after finalization of the initial transaction. 3 Centralized control of amounts charged to minimize incorrect manual entry of amounts due. • Minimized posting to wrong accounts via filters that show only codes appropriate to the user. 3 Keypunch errors have been reduced from 1 per day to less than 2 per month. 3 Reconciliation time per transaction error reduced from 15-30 minutes to a minute or two. 3 Time for compilation of journal entries reduced from 45 minutes-2 hours/day to 5 minutes. 3 The system has freed up approximately 4 city staff hours per day (64 hours monthly) Technical Support Live U.S. based support representatives with superb English skills are available to provide prompt, conscientious & patient service during normal business hours. PSI customers frequently rate our customer support as second to none. Other Services Progressive Solutions® currently performs a range of information services. All personnel involved in system development have earned computer science degrees from reputable colleges, and/or have proven their ability in past software development projects. Modification of Agreement Progressive Solutions ® will perform strictly to any negotiated agreement. Any modifications to the negotiated agreement must be in writing and signed by the respective authorized representatives. Examples of the software at other localities Wichita, KS utilizes Ca$hierCentral for their swimming pools, large police auctions, bus passes as well as for all other payments to the city. Progressive Solutions® 7 June 22, 2006 Page 32D. Company History & Key Personnel Progressive Solutions®, a privately held California corporation, was started by Glenn R. Vodhanel in 1979. The firm began by providing facility management services to municipalities. In the course of marketing developed software and services to governmental agencies, the company expanded to encompass over 20 employees. Progressive SoIutions® association with Microsoft® began during the Lan Manager days. As a result of Mr. Vodhanel's efforts Progressive Solutions° has earned the title Microsoft® Certified Solution Provider. Today, PSI's primary focus is on municipal software development and support. From the beginning, the Company has maintained a sound and stable financial condition. It has had and continues to have the ability to meet its obligations as they come due. Company policy is to maintain sufficient cash reserves for contingencies. Banking references are available from the Customer Service Department at Wells Fargo Bank, Brea, California. Our Federal Employer ID is 33-0113562 Our corporate offices are located in Brea, California. Our mailing address is: Progressive Solutions ®, PO Box 783, Brea, CA 92822-0783 Progressive Solutions ® maintains both workers compensation and general liability insurance. Should the Client desire any coverage in addition to what we maintain, we will be pleased to comply upon receipt of Client reimbursement approval for any cost difference resulting from the Client's mandate. As a growing company, we work harder to exceed your expectations! Our customers are not just numbers! They are individuals with whom we have accomplished mutual objectives and formed personal relationships. Key Personnel Glenn R. Vodhanel Glenn Vodhanel is the founder of the company and continues to assist customers with consulting and software design services. In 1981, Mr. Vodhanel earned his BA in business administration with a concentration in accounting. He currently serves as president and CEO of Progressive Solutions°. In this capacity, Mr. Vodhanel is authorized to represent the company and to make most required decisions. Yolande C. Vodhanel, a family member, assists Mr. Vodhanel by serving as both secretary and treasurer. Kevin Harker Kevin has been designing and programming software enhancements in Progressive Solutions® software products for the past 7 years. He has been responsible for keeping our products on the leading edge of technology and making sure that all our customers benefit from any software enhancements. Kevin facilitates software upgrades by loading them on the web. Customers can quickly access the software enhancements by downloading and installing the updates themselves. Steve Le Van Steve serves as our senior trainer and support staff & provides expertise in designing forms using Crystal Reports. He has worked with Progressive Solutions° for over 6 years. He is a seasoned professional who works well with people and understands their desires. Shawn Cobarrubias Shawn acts as a client liaison for our customers. In addition, she serves as a valuable member of the migration team by providing her expertise in designing forms using Crystal Reports. Page 33 Progressive Solutions ® Page 8 6/22/2006E. Relevant Experience/References At Progressive Solutions® our primary focus has been on providing software and service to municipal government. It is this hands-on experience that we bring to your table. We gladly impart the benefits of our experience so that your objectives are met or exceeded. Partial Client List Client Contact: Telephone & Products: City of Monterey 351 Madison St Monterey, CA 93940-2613 Linda Burns Pop: 29,702 Installed: Jul 2004 (831)646-3944 Ca$hierCentral, Pet Track & LicenseTrace-Several Interfaces including Eden. City of Gardena 1700W. 162nd Street Gardena, CA 90247 She[lie L. Gallagher Pop: 59,000 Installed: Jun 1996 (310)217-9693 Ca$hierCentral, LicenseTrace, Alarm Track. Interfaces with Eden. City of Hemet 445 East Florida Avenue Hemet, CA 92543 Michele Holmes Pop: 63,367 Installed: Apr 2005 (951)765-2355 Ca$hierCentral with several interfaces City of Monterey Park 320 W. Newmark Ave Monterey Park, CA 91754 Tim Shay Pop: 61,822 Installed: Aug 2001 (626) 307-1363 Ca$hierCentral City of Loma Linda 25541 Barton Rd Loma Linda, CA 92354 James Hettrick Pop: 20,163 Installed: Oct 2002 (909)799-2875 LicenseTrace, UtilityExplorer"., CaShierCentral-Interfaces with Eden & One Stop internet payments City of San Bernardino 300 N "D" Street San Bernardino, CA 92418 Cindy Buechter Pop: 191,631 Installed: Sept 2003 (909)384-5159 LicenseTrace, Ca$hierCentral Extensive use of revenue recovery City of Wichita 455 North Main St, 1st Floor Wichita, KS 67202-1678 Sean Seamster Pop: 355,562 Installed: Nov 1998 (316)352-4848 Ca$hierCentral, PetTrace & LicenseTrace -Interfaces with Peat, Marwick, Michell, Deloite & Ross software. City of National City 1243 National City Blvd. National City, CA 91950-4397 Damon Dong Pop: 55,541 Installed: Feb 1999 (619) 336-4374 Ca$hierCentral-Interfaces with Eden. Page 34 Progressive Solutions° Page 9 6/22/2006F. Sample Screens The following screen shots and enclosed CD presentations are confidential and privileged trade secrets per 21 O.S. § 1732 (Larceny of Trade Secrets) and the Uniform Trade Secrets Act, 78 O.S. §§ 85, et seq. The above screen provides information critical to the system operation. The above is confidential & the proprietary property of PROGRESSIVE SOLUTIONS®! Page 35 Progressive Solutions ® Page 10 6/22/2006. System Editors Charge Code Editor Site Profile Editor I SQL Editor Charge Codes and Related. Codes Cashier Printer and Dre,...,,er radit Card Processino , Effective Date Ej Charge Codes Current - Effective: 07/11/2002 0.1:3 Previous Rates # 11 - Effective: Oz. 111 Previous Rates # 12 - Effective- Previous Rates # 13 - Effective: 0E. Previous Rates # 14- Effective: 07. Cl•111 Previous Rates # 15- Effective: 07,. *VI MRIFINE 0101 Appended Rates # 20 - Current EffE tlM Appended Rates # 21 - Current EffE C3-01 Related Codes Financial Codes Department Codes $ g/ Message Codes 0-## Unit Names ItHID Bank Name LF,771 , Charge Code Table Test Charge Code Values Test Value Result ()New Cancel From The above screen is where charge codes, financial codes and related codes are setup. Payments can be distributed to an unlimited revenue accounts. The above is confidential & the proprietary property of PROGRESSIVE SOLUTIONP Page 36 Progressive Solutions ® Page 11 6/22/2006Charge Codes ICRW • CR4.1 T nakIt Flom To ERW 0 Infinity Amount Chatge Cede o escription 0 1.00 0100000033453 Copies ol Maps. Publ & 0th 011.00 0100020033224 Buildirg Petrnits-Plumbing 012.00 Invoice P0204-016 totd Subtotal iCASHIER_COMDEV I PSI I 1 CRW aldt account rP0204-01S / ALAP ASSOC Merge Code Notes F Select All ase check the keno you would Ike included on this cash /ocelot. ea the dales amount crick on the tint colurm and type in the amount sfi net pia. ifflromslal For Help, press .{CASHIER_COMDEV .1 P51 i08116/2002. 1:51:02 PM ;; start kc Mori-gam', -Cki of Gosd000 Oromo00 - Logout Receipts I Query Reprint Switch : n. k*, AO LEE I ? k? The above screen displays external information from a permitting or any number of systems in order to apply payments to outstanding items and post them to the external system in real-time. The above is confidential & the proprietary property of PROGRESSIVE SOLUTIONS! Page 37 Progressive Solutions ® Page 12 6/22/20062 Sect rrptch Qcd o nytow searth a ab114 n,, ccrriI able ab,ut acce-: .-rd ••,c, Account Choase twrc to drsIlay A/R charge code Account Audits Account Notes Address Verification and Parsing Approvals Area Code Update Billing Into Tab Cash Receipt Maintenance Cash rece . selection 5.u. Cad*, Pere! a Slin g-, ory Charge Code Editor Charge Code Filters Clig Types Combine Accounts Combo Box Complex Queries Contacts - E Totals: Account N 17982 FOCUS COMM. 17955 S.G. CONSTRUCTION CO. 449 SALAMANDER FIRE License will be issued 0 v.:Ed $179.50 $179.50 $51.00 $51.00 $51.00 $51.00 $281.50 $281.50 Account has been set to pending Set to do not issue license (,1 Contents I e:lb 1nde iMaearch 1. Type the word's) yoy wish to find. Cash Receipt Summary The cash receipt summary window can be displayed by clicking on the cash receipt summary tab above (#8), hitting F5 from cash maintenance or choosing file, cash summary or F4 from the main screen. You can highlight the icon for each receipt when changes need to be made. Once highlighted, the receipt can be deleted, set to denied, set to pending, set to issue or you can make changes to the original receipt by double clicking on it. This will take you to the cash maintenance screen where changes can be made to the charges or amount received. Remember to click on the save icon after the changes have been made. Also note that the receipts displayed here in the cash summary have not yet been merged. Once the receipts are merged, changes can no longer be made. Printing out the cash receipt summary and carefully reviewing the results can help to prevent errors and save time. To view the cash receipts of other users, click on the "view other users cash receipts" button. .2=mmuswilimmeter. _ OPtions Licensing ---View other users cash receiri- X El • '15A11:51$'' X1E1 lE12_ ( I Help zi The Online searchable and context sensitive help file is user friendly and contains screenshots and descriptions of all functions. Users may modify file for their user profile by adding notations to each topic. All or portions of the help file may be printed out at any time. In addition, the help file is regularly updated to reflect the latest software enhancements and modifications. The above is confidential & the proprietary property of PROGRESSIVE SOLUTIONS®! Page 38 Progressive Solutions ® Page 13 6/22/2006If you have a User ID and Password User ID (email address): II Password; If you have not created a user id Sign up to pay your bills online. Its Freel • VISA OR MASTER CARD ONLY • EXACT AMOUNT ONLY. No advance or partial payments will be accepted. . We recommend you connect to if printerto have a receiptfor your records. * If unable to Main please call (909) 799-2045 se our staff can assist you Our office hours are Monday Thursday 7arn to 5:39 ions • PASTDUE PAYMENTS - If you are paying past the due date your account will be subject to a 10 •rs penally • DELYNOUE/gT PAYMENTS - If your account is delinquent, it is your responsibility to verify receipt of payment in the Finance 2945 to prevent discontinuance of service. Payment at this Vine will not prevent additional charges from being assessed. at (909) 799- G. Web Payment Samples Above is the consolidated logon screen! The above is confidential & the proprietary property of PROGRESSIVE SOLUTIONS®! Page 39 Progressive Solutions ® Page 14 6/22/2006My Profile Logout l About I Link Another Account I Pay Bilk l Your Accounts: Account: 205109000- LOMA LINDA UNIV Account Type: Utility Billing Current Balance: $272.01[PendIng Payment: $0.00] view history An unlimited number of accounts may be linked to a user account. This provides easy administration for owners of multiple properties. These accounts may be monitored and paid as a group or individually! By clicking on the view history link, account history is displayed as shown on the following page. The above is confidential & the proprietary property of PROGRESSIVE SOLUTION?! Page 40 Progressive Solutions ® Page 15 6/22/2006My Profile I Logout I About NIYA Cc oullTs Reports Consumption Comparisonl History Comparison History for 205109000 - LOMA LINDA UNIV: Transaction: Date Posted Starting Balance Paid Amount Billed Amount Ending Balance Bill 12/29/2004 $0.00 $0.00 $272.01 $272.01 details Payment 11/17/2004 $343.40 $343.40 $000 $0.00 Bill 10/27/2004 $0.00 $0,00 $343.40 $343,40 details Payment 9/15/2004 $355,05 $355.05 $0.00 $0.00 Bill 8/25/2004 $0.00 $0.00 $355.05 $355.05 details Payment , Bill 7120/2004 6/29/2004 $401.12 $0.00 $401.12 $0.00 $0.00 $401.12 $0:00 $401.12 details Payment 5/11/2004 $321.02 $321.02 $11.00 $0.00 Bill 4/26/2004 $0.00 $0.00 $321.02 $321,02 details Payment , Bill 3/10/2004 2/23/2004 $285.35 $0.00 $0.00 $285.35 $0.00 $285.35 details $285.35 $0.00 Payment 1/22/2004 $273.65 $273.65 $0,00 $0.00 The customer is provided with historical data. By clicking on the comparison links, reports are displayed that present graphical representation of consumption or payment data. An example is shown on the following page. In addition by clicking on the details link, a facsimile of the invoice/bill will be displayed. The above is confidential & the proprietary property of PROGRESSIVE SOLUTIONS! Page 41 Progressive Solutions ' Page 16 6/22120061., •___ .....__ .--°---' "---.‘ --------____i,/- ,... Ilf-----'7- -- ,-, 280 240 200 180 120 80 40 -0-2002 11-2004 -11-2003 Consumption by Ending Month and Year Account Name 205109000 LOMA LINDA UNIV Service Address 24877 PROSPECT AVE Start Usaae End Usacie Units of HCF 10/01/2004 12101/2004 12 08/01/2004 10/01/2004 50 06/01/2004 08/01/2004 56 04/01/2004 08/01/2004 76 02/04/2004 04/01/2004 44 12101/2003 02/04/2004 27 10101/2003 12/01/2003 19 08/01/2003 10/01/2003 15 04/01/2003 06/01/2003 54 08/01/2003 06/01/2003 116 02/0112003 04/01/2003 92 12/02/2002 02/01/2003 129 10/01/2002 12/02/2002 119 08/01/2002 10/01/2002 121 The above graphical information is designed to empower customers so they may have the information to determine on their own whether their recent bill is actually too high. The above is confidential & the proprietary property of PROGRESSIVE SOLUTIONS! Page 42 Progressive Solutions ® Page 17 6/22/2006My Profile I Logout I About Link Another Account I Pa Your Accounts: Account: Account Type: Current Balance: Account: Account Type: Current Balance: 25519- T G I FRIDAYS Business License $60.00/Pendinq Payment: $0.00] 205109000- LOMA LINDA UNIV Utility Billing $272.01[Pending Payment: $0.00] LICENSE RENEWAL DUE view history view history My Profile I Logout I About Your Accounts: Account: Account Type: Current Balance: Account: Account Type: Current Balance: 25519- T G I FRIDAYS Business License $60.00(Pendino Payment: $0.00) 205109000- LOMA LINDA UNIV Utility Billing $272.011Pending Payment: $0.00] view history USE TAX RETURN DUE view history The consolidated payment system may also be used to facilitate customer filing of tax returns. Linked business accounts will remind taxpayers as returns become due. The above is confidential & the proprietary property of PROGRESSIVE SOLUTIONS! Page 43 Progressive Solutions ® Page 18 6/22/2006Please confirm that the following information provided is correct. Sion out License Expiration Date Expiration Date: 12/31/2004 Business Attributes Business Name 3D CREATIONS Business Type Retail Sales And Service Account Number: 12203 Business Address Address: 13028 DAPHNE AVE City GARDENA State, CA ZipcodP 90249-1606 Attention BuSiness Phone (310)532-8677 Mailing Address Mailing Address: 13028 DAPHNE AVE City GARDENA State CA Zipcode 90249-1606 Contact Name JACQUELINE L CARTER Contact Type ‘Piwayaredesf/ Partner-Primary Name 3D CREATIONS Contact Type Business Name DESIREE L CARTER Contact Type Partner-Other O I am no longer doing business in the City of Gardena 0 This information is not correct, let me modify it 0 This information is correct. I want to renew online Home Page Copyright 2004 City of Gardena CA. All rights reserved. The consolidated payment system guides businesses to complete any monthly, quarterly or annual process. The same process facilitates license renewals, occupancy tax returns, use tax returns, gas tax returns or any return you can think of. If cost savings via automation are the goal, Progressive Solutions® is here to do it once and to do it right. The above is confidential & the proprietary property of PROGRESSIVE SOLUTION?! Page 44 Progressive Solutions ® Page 19 6/22/2006a License Renewal Step 2 of 4 - Microsoft 'ulnae Explorer SEIM Deck - 4 (4,3. 1-11s-tay I n .LTadaY Please fill out all required fields! Sion out Description of Boerne s Account Number !harness Name Brerea Type 15462 GARDENA PLAZA HOTEL hit Hotels And Motels Charges Charge Description Units 4 I Please enter the gross receipts in thousands Total Please make sure the units are correct. Press Calculate when reads,. L,ICurate I certify that the information above is true and accurate. Extension S 75.50 $ 75 Dalai Cont in ue Once the customer has entered the required data, by clicking on the calculate button the amount to pay is then calculated. The above is confidential & the proprietary property of PROGRESSIVE SOLUTIONS! Page 45 Progressive Solutions ® Page 20 6/22/2006City of Gardena Business License Fields marked with an asterisk are required. Credit Card Payment Total Amout Due: $93.5 Credit Card It-donation Credit Card Number Credit Card Expiration Cardholder Billing Information Cardholder Name Biting Address City, State. Zipcode Home Page Copyright 2004 City of Gardena CA. All rights reserved. Credit/Debit Cards may be accepted for payment or Automated Clearing House information that has been previously submitted. Once payment has been accepted, a receipt is displayed that may be printed out by the customer for their records. The above is confidential & the proprietary property of PROGRESSIVE SOLUTIONS! Page 46 Progressive Solutions ® Page 21 6/2212006H. Compensation Please see below Setup and License Fee We propose an initial one-time fee to establish the various charges and finance codes for the cash register. The software license fee and on line user manuals are also included in the pricing matrix. This proposal is valid for 90 days from the date of the proposal. Most implementations can be completed within 60 to days from receipt of an executed agreement! Annual Maintenance and Customer Support Fee The annual maintenance fee will be 20% of the software license price. Travel and lodging expenses will be billed at actual cost plus a per diem. Optional Components Ca$hierCentral is compatible with a variety of optional components to facilitate ease of use. Optional components are listed in I. Options. Training For each group of 6 people we provide an instructor at the rate of $1200/day. Additional training is available for up to 6 people per instructor at the same price. Customization Services Ca$hierCentral is a table driven system designed to adapt to the operations of most cities. Regular upgrades and enhancements are provided as part of the software maintenance agreement. In addition, a request list is maintained so that requests that can benefit customers are incorporated into future upgrades. We expect to handle all customizations via configuration settings and do not anticipate any programming requirements to accomplish the base requirements. Should a Client desire specific programming modifications to our system, modifications are available on either a fixed price or time and material basis. Page 47 Progressive Solutions ® Page 22 6/22/2006Progressive Solutions® CaShierCentral Seven Register Implementation Ca$hierCentral 7 Registers $24,000.00 Interface to JD Edwards GL (text file export) $3,500.00 JD Edwards NR lookup and update interface $3,000.00 Interface with Safari Recware $5,500.00 Interface With Rams Version 6.0311 Sanitation System $5,000.00 Check 21 Connector $1,500.00 Credit Card Connector $999.00 Total Software $43,499.00 In-office turnkey configuration and database setup $600.00 On-site hardware/software installation & 3 days training (6 trainees per trainer) $3,600.00 Total Services $4,200.00 7 Cash Drawer @ $325 $2,275.00 7 Cashiering Slip/Validation Printers @ *$795 $5,565.00 4 Credit Card Readers @ $199 $796.00 5 Check 21 Scanners with endorsement printer @ $845 $4,225.00 4 Fingerprint readers @ $150 $600.00 Total Hardware $13,461.00 Sales Tax (7.75%) $1,043.23 Hardware freight, delivery $1,346.10 Total for 7 Registers $63,549.33 Annual Software Support $6,524.85 Annual Hardware Support (Drawer & Validator-$250/register) $1,750.00 Total Annual Support $8,274.85 Page 48