Town of Manchester General Services Department. Request for Proposals for Electronic Bill Payment Services. RFP No. 16/

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1 Town of Manchester General Services Department Request for Proposals for Electronic Bill Payment Services RFP No. 16/ Proposals Due: June 22, 2:00 p.m. General Services Department 494 Main Street Manchester, CT 06040

2 SECTION 1 - PROJECT SPECIFICATIONS 1.0 SCOPE OF SERVICES The following information should be of assistance in developing a proposal. If you have any questions, please contact Adam Tulin, Director of General Services, via to gensvcs@manchesterct.gov or via fax to (860) The Town of Manchester is seeking written proposals from qualified financial services vendors for an electronic bill payment services solution primarily for its tax and utility collection offices, with other potential areas of expansion as described within this request for proposals. The Town of Manchester covers 27.2 square miles in the Connecticut River Valley nine miles east of Hartford. It was settled in 1672 and incorporated as a town in It is bordered by Glastonbury on the south, East Hartford on the west, and South Windsor, Vernon, and Bolton on the north and east. The Town has two major interstate highways that serve the community. Interstate I-84 (New York, Hartford, Boston) and I-384 (Hartford and Providence) join in Manchester and are connected to Interstate I-91 (New Haven, Hartford, Montreal) by the 6.4 mile I-291 connecting expressway. Bradley International Airport is less than a twenty-minute drive from the Town. Direct rail freight service is available via Connecticut Southern Railroad. Commuter bus service provided by Connecticut Transit to Hartford is available along with commuter parking lots. The Town of Manchester provides a full range of municipal services, including education, police and fire protection, public works and sanitation, health and social services, planning and development, and recreational/cultural services. The Town employs nearly 1,600 full-time people to fulfill its municipal functions. The Town s operating budget for fiscal was $179.8 million and its capital projects budget was $12.3 million. A complete listing of Town Offices and further information about the Town may be found on the Town s official web site, The Town invites proposals for services from qualified financial services vendors that have experience in providing electronic bill payment processing services to municipalities in the State of Connecticut, municipalities of similar size and scope, and that have the staff capacity and expertise to do so for the Town of Manchester. For a firm to be considered for this engagement, five copies of its proposal must be submitted in a sealed and clearly labeled envelope to the Town of Manchester, General Services Department at the address below. They must be received by 2:00 P.M. on Wednesday, June 22, In Person Town of Manchester Director of General Services Lincoln Center 494 Main Street Manchester, Connecticut Via Mail Town of Manchester Director of General Services P.O. Box 191 Manchester, Connecticut The scope of the required electronic payment processing services and other terms and conditions of this engagement are described in Section 1.5 of the attached Request for Proposals. The requested format and content of the proposals are described in Section 1.6. Proposals will be evaluated by the criteria set forth in Section 1.7.

3 Proposals will be initially reviewed by a Selection Committee. The Selection Committee will select the two or three firms that best meet the Town s requirements. These firms will then be invited to represent their proposals to, and respond to questions from the Selection Committee. The Town expects to make its decision in July The Town of Manchester reserves the right to reject any and all proposals submitted, to request additional information from all proposers and to negotiate with one or more of the finalists regarding the terms of this engagement. The Town of Manchester also reserves the right to retain the proposals, use any ideas contained in the proposals and is not obligated in any manner to reimburse the proposers for the costs incurred in connection with responding to this Request for Proposals. The Selection Committee intends to recommend the firm that, in its opinion, best meets the Town s needs, not necessarily the firm with the lowest fees. Any requests for clarification or additional information regarding this RFP are to be submitted in writing to the Adam Tulin, Director of General Services via fax to (860) , or via to gensvcs@manchesterct.gov and must be received no later than 2:00PM June 15, 2017 in order to be considered. If any substantive requests for information are received and responded to by the Town of Manchester, an addendum to this RFP will be issued. The anticipated selection schedule is as follows: Advertise RFP May 25, 2017 Deadline for questions June 15, 2017 RFP Responses: June 22, 2017 RFP Evaluation July 13, 2017 RFP Interviews: July 27, 2017 RFP Decision: August1, PURPOSE 1.2 The Town of Manchester is seeking written proposals from qualified financial services vendors for an electronic and online bill payment processing services solution primarily for its tax collection and utility offices, with other potential areas of expansion as described within this request for proposals. The Town desires to reduce its check and credit card processing via telephone and replace with a user-friendly point of sale and online bill payment platform with reasonable user fees that are clearly indicated and multiple payment options. A product should be proposed that has the ability to expand to other potential areas such as Town Clerk, Parks & Recreation, Building Department, and Health Department. All proposal submissions must be prepared in strict accordance with the scope of services and detailed specifications incorporated herein. All submitting financial institutions must possess the minimum qualifications detailed and must include adequate documentation to substantiate their qualifications.

4 1.3 INTRODUCTION The Town currently utilizes a number of different vendors for collecting revenue across several departments, including: OfficialPayments, MuniciPAY and Paypal. The Town wishes to phase in a single (one) bill payment vendor that presents an integrated interface to citizens and a simplified backend process for Town accounting staff, eventually across all offices collecting revenue for Town Services. Software should include online and in-office (point of sale) electronic payment functions, and should work seamlessly with the financial software currently utilized by the Town. It is the intention of the Town to focus initially on rolling out bill payment software for the Tax Collection office and Water & Sewer, with other fee-collecting departments to potentially follow. It is anticipated that the electronic bill payment solution shall provide a User-Friendly bill payment platform funded by user fees with: Reasonable/fair user fees that are clearly indicated. Multiple payment options. A variety of additional user options such as reminders and automatic payments. Point of Sale terminals for in-office payments. Approximately 75% of the Town s General Fund revenue comes in the form of property tax revenue. The total property tax levy for the 2015 Grand List, the current tax year, as of April 30, 2017 is $143,378,774, with approximately 76,544 total tax bills mailed. Online payments have seen a steady increase over the past 3 years. For the current year, online payments are roughly split 50/50 between ACH and Credit Card in terms of number of payments received, however ACH payments represent 75% of actual dollars received. Recent Online tax payment information: 2016 Online Tax Payments: 7,705 payments totaling $4,727, Online Tax Payments: 7,140 payments totaling $3,924, Online Tax Payments: 7,574 payments totaling $3,262, It is anticipated that after initial roll-out, future expansion could include payment for fees, permits and services in the following offices: Town Clerk, Parks & Recreation, Building Department, and Health Department. This is not an inclusive or guaranteed list of additional offices. Proposers shall make available the flexibility to allow the Town to absorb some or all of the user fee costs for these smaller revenue-collecting offices. The Town utilizes MUNIS financial software from Tyler Technologies and the Quality Data Services (QDS) Municipal Software system for revenue collection. Importance is placed on internal and external controls and a desire to sync bill payment software with MUNIS and QDS. Imbalances in the current fee structure (attached) have inadvertently rewarded those that make payment by telephone directly with Town Staff. The Town is seeking a fee structure that will greater incentivize online payment, improve transaction time for in-person payments, and provide a user-friendly call center for users still wishing to make payments via telephone. Finally, the solution should provide the Town with multiple levels of security including digital signatures, client access controls, user-specified transaction limits and multi-party security controls to ensure every payment is authenticated. The on-line system must be available 24 by 7 except for scheduled maintenance.

5 The successful firm will be required to provide the best electronic bill payment solution for the Town and the one that ultimately best strengthens relationships with customers and employees. The automated solution should provide the following objectives: Provide a multi-functional tax bill payment platform with the ability to add Water & Sewer payments, and potentially expand to additional fee collecting departments over time. Flexible payment options with fair/reasonable user fees, consistent across ALL platforms. Reduce processing of electronic payments via telephone. Minimize risk. Ability to work with the Town and its existing QDS collection software and financial system, MUNIS. Insure that all information is stored with the highest level of security. 1.4 COMPETITION INTENDED It is the Town's intent that this RFP permit competition. It shall be the offeror's responsibility to advise the Town in writing if any language, requirement, scope specification, etc., or any combinations thereof, inadvertently restricts or limits the requirements stated in this RFP to a single source. Such notification must be received by the Town Purchasing Department not later than ten (10) days prior to the date set for acceptance of proposals. 1.5 MINIMUM REQUIRED QUALIFICATIONS In order to qualify for consideration, the following minimum qualifications must be met: Proposer must have demonstrated experience and expertise in regard to providing the types of services outlined in the Request for Proposals. Proposer should have a proven track record in providing these types of or similar services for municipal governments. The Town would prefer a firm who has worked with other Connecticut municipalities similar in size to Manchester. Further, experience with Quality Data Service, Inc., and MUNIS software is preferred. Proposer must be qualified and properly licensed in the State of Connecticut to perform its obligation under this proposal in compliance with any/all applicable Federal and State of Connecticut laws and regulations, statutes and policies. 1.6 SERVICE OFFERING REQUIREMENTS The firm s scope of services will include, but is not limited to, the full implementation and integration of an electronic bill payment solution for the revenue collecting offices of the Town. The team will work collaboratively with the Finance Office, Accounting Division, Tax Collection office, Water & Sewer office, the Department of Information Technology and other offices identified for future expansion. It is anticipated that the scope of services shall include the tasks outlined below. Provide a comprehensive schematic of how the Electronic Bill Payment Solution will operate. Assist with all technical aspects of the project rollout. Perform a cost/benefits analysis of how users will be impacted.

6 Provide user enrollment outreach to convert residents to electronic payment. Provide assistance to Town staff. Provide a timeline for the completed project. 1.7 PROPOSAL SUBMISSION FORMAT All responses to this RFP must be in sealed envelopes and marked with the RFP reference title, the RFP number, and due date and time. The Candidate s name and address must appear on the envelope. Proposals should put forth full, accurate, and complete but concise information as required by this request. In addition to the Proposal Response Form, the proposal should include: A. Service Provider Background and Experience Provide a brief overview of your company. Please provide your responses in the given area to each of the questions below. Answers not provided in this format will not be taken into consideration. Please add more space and/or reference attachments where necessary. A.1.1 Full Legal Name, Address (not a P.O. Box), Main Telephone, Main Fax Number, Parent Company Name, Address (not a P.O. Box) A.1.2 structure. Brief History of Company including an overview of the ownership A.1.3 Key Program contact(s) that will be assigned to the Town (Name, Position/Title, Direct Telephone, and address) A.1.4 A.1.5 A.1.6 A.1.7 Number of years in the proposed electronic payment processing business. Provide a brief description of the benefits and value of your services. Discuss how long you have been offering these services. Provide the total number of clients enrolled in your program. A.1.8 Describe how your electronic payment processing program is part of a larger product/service mix. A.1.9 Describe your growth and/or expansion strategy. B. Implementation and Training B.1.1 Please describe your implementation process, providing a definition of each task for both you as the Service Provider as well as the Town. How long will implementation take? B.1.2 Please describe your project milestones and communication plans.

7 B.1.3 Will your implementation staff remain actively engaged after initial program set-up and rollout? If yes, for how long and to what extent? B.1.4 Define the support our administrators and users can expect including user manuals, instructional and/or education materials, on-site visits or other assistance. B.1.5 What initial and ongoing training do you provide for program administrators and users? B.1.6 Describe the role/responsibilities of our designated Program Administrator. C. Overview of the Proposed Service C.1.1 What changes in account team structure, reporting or personnel would occur as the Town moves from implementation to on-going maintenance? C.1.2 What processes have been put in place with other customers to monitor their satisfaction with service and quality? C.1.3 Provide an overview of how customer feedback has been used to improve and change impressions of service and quality? C.1.4 user payment). Please describe your problem resolution procedures (dispute or issue with a C.1.5 Who would the Town contact when there are questions/problems? Does this contact change throughout the process? C.1.6 Describe your support structure for our employees and users. Confirm the hours of operation for such support structure. C.1.7 Please describe your day-to-day client servicing capabilities. C.1.8 Describe the manner in which service is provided to customers and our vendors once the program is active. C.1.9 Describe your company s user enrollment and support programs. Is a third party alliance established? If so explain the nature of the alliance. C.1.10 Do any third-party partners perform other functions, such as system support or customer service? If so, explain. C.1.11 What card platform(s) does your program employ (e.g., MasterCard, Visa, Amex or other)? Why? If more than one is used, which would you recommend for our program and why?

8 C.1.12 Describe the consulting tools and processes you have in place to provide the Town with information and advice regarding program performance, growth and best practices with comparisons to industry benchmarks and standards. D. Operations and Technology D.1.1 years? What technology innovations have you invested in over the last three D.1.2 How have you used these technological innovations to improve your customer s processes and to reduce costs? D.1.3 Describe the pull payment and push payment process, the differences between them and which process your program uses, or if the Town can choose between the two. D.1.4 Do you have a Disaster Recovery Plan? If so, please state yes below and include as a separate attachment D.1.5 What type of feeds do you provide the Town to load into our systems? D.1.6 Are there any special hardware or software requirements for using the software that interfaces with our internal systems? Who provides the hardware and/or software? Who is responsible for installing and maintaining the hardware and/or software? How are upgrades managed? D.1.7 What has been your experience with customers who use an electronic payment processing program? D.1.8 If the Town were to request enhancements, describe the prioritization process for such requests. E. Reporting/Measurement To ensure the program is a success, it is important to the Town that we are able to measure savings, service levels and compliance. E.1.1 Please describe your reporting capabilities around electronic payment processing program. E.1.2 systems. Describe how your reporting package accomplishes the interface with our

9 E.1.3 How often would you provide reports to the Town? Is there a fee if the Town requests a greater frequency? E.1.4 histories? Can users (residents) set up accounts to access reports to manage c and payment E.1.5 Please describe any fees associated with customizing a report and the length of time required to receive a customized report. E.1.6 Describe the various reporting options (inquiry, ad-hoc, read only) and the level of reporting detail your program offers and describe how these reports can be tailored to meet the requirements of a client. E.1.7 Provide a detailed overview of software that supports the company s electronic payment processing program. Is it wholly owned? How do you ensure data consistency and integrity? E.1.8 Provide a general description of the reporting packages offered. F. Spend Controls/Security F.1.1 Describe the control parameters on the electronic payment processing program. How quickly can changes be made to the parameters? F.1.2 F.1.3 Describe the liability protection available to the Town. Describe your program management process including: G. Financial Considerations F Enrolling the Town s users (residents) F Deletion of users F Periodic attempts to enroll users that did not accept the initial enrollment F User payment limits F Issuance/Deletion of user card numbers I.1.1 Provide a complete schedule for all services and fees described in your proposal. Include any one-time or set-up charges, equipment fees, research fees, minimum fees/convenience fees for users, any costs plus all other fees that will be charged to the User and/or the Town if any. I.1.2 In some departments, the Town may elect to absorb some or all of the user fees. Please describe how that would be addressed. I.1.3 Is your Company willing to guarantee the proposed fees for the entire term of the initial award [up to four (4) years]? If not, how long are the proposed fees guaranteed? I.1.4 Please comment on standard payment terms and methods. Please describe

10 and/or provide a sample fee structure for Credit Card, ACH, e-check, etc. I.1.5 Identify any applicable expense associated with all of the products/services described within your RFP response (e.g. cash access fees, conversion fees, late fees, technology, training, account/program management). I.1.6 What other factors should be considered when quantifying the total value of your program offering? I.1.7 Please provide any further information around your product offering and capabilities that you feel would facilitate the evaluation and selection process for the Town. H. Data Privacy J.1.1 Supply information that will demonstrate your compliance with the Payment Card Industry Data Security Standards ( PCI-DSS ), including the date of your last audit, the firm that conducted the audit and the Merchant Level that describes the number of card transactions processed. Please provide as an attachment. 1.8 CRITERIA FOR EVALUATING PROPOSAL SUBMISSIONS Proposal submissions will be evaluated based on the following criteria: A. The Firm s qualifications, experience, and demonstrated familiarity with providing electronic payment processing services to comparable accounts of similar size and scope. B. The Firm s qualifications, experience, and demonstrated familiarity with providing electronic payment processing services to comparable governmental accounts of similar size and scope. C. The Firm s proposed project teams experience with providing electronic payment processing services to comparable governmental accounts of similar size and scope. D. Extent of services offered, and depth and extent of overall resources that can be put to use to ensure the success of the programs. E. The proposed program approaches and specific details of how the proposed service will be rolled out, organized and implemented. F. Total years in business and financial stability of the Firm. G. Quality of references from previous clients. H. Proposed schedule of time needed to implement the program(s), from account set- up, migration, start-up and ultimately full implementation. I. Proposed User Fees. J. Experience with processing MUNIS and QDS file output information. The Town reserves its rights to examine any other criteria and take the same under consideration and to reject any firm or proposal despite its compliance with these criteria if it determines that to do so would be in its best interests. 1.9 PRIME PROPOSER RESPONSIBILITY Firm s submitting proposals to this RFP may utilize the services of subcontractors. If subcontractors are planned to be used, this should be clearly explained in the proposal. The prime

11 proposer will be responsible for the entire contract performance whether or not subcontractor is to perform. All corporate information required in this RFP must be included for each proposed subcontractor. The proposal must also include copies of any agreements to be executed between the prime proposer and any subcontractors in the event of contract award. Under this RFP, the Town of Manchester retains the right to approve all subcontractors KEY PERSONNEL The personnel and commitments identified on any proposer s proposal will be considered essential to the work to be performed under this RFP. Prior to diverting any of the specified individuals to other programs or changing the level of effort of the specified individuals, the proposer must notify the Town of Manchester fourteen (14) days in advance and will be required to submit justification, including proposed substitutions, in sufficient detail, to permit evaluation of the impact on the project. The proposer will make no deviation without the prior written consent of the Town of Manchester. Replacement of personnel will be with personnel or equal ability and qualifications. Any employee of the proposer, who in the sole opinion of the Town of Manchester is unacceptable, shall be removed from the project pursuant to the request of Town of Manchester. The proposer will have Fourteen (14) Days to fill the vacancy with another employee of acceptable technical experience and skills subject to the written approval of the Town of Manchester AVAILABILITY OF FUNDS The contract award under this RFP is contingent upon the availability of funds to the Town of Manchester for this project. In the event that funds are not available, any contract resulting from this RFP will become void and of no force and effect PAYMENT The proposer will bill the Town of Manchester based on the submission of monthly invoices in a format to be determined by the Town TERMINATION FOR DEFAULT OR FOR THE CONVENIENCE OF THE CONTRACTING AGENCY Performance under this contract resulting from this RFP may be terminated by the Town of Manchester whenever; The proposer, in the sole opinion of the Town, is in default in the performance of the contract and shall fail to correct such default within the period specified by the contracting officer in a notice specifying default; or the contracting officer shall determine that termination is the best interest of the Town of Manchester. Termination will be effected by delivery to the proposer of a notice to terminate, stating the date upon which the termination becomes effective. Upon receipt of the notice to terminate, the proposer shall: Stop all work Assign to the Town of Manchester all rights, title and interest in the work being developed; Deliver forthwith to the Town of Manchester all completed work and work in progress; Preserve and protect, until delivery to the Town, all material plans, and documents related to this contract which, if the contract had been completed, would have been furnished to the Town of Manchester or necessary to the completion of the work.

12 1.14 NEGOTIATED CHANGES In the event negotiated changes occur after the awarding of the contract, the same pricing policies called for in the original contract will remain in effect CONTRACT AGREEMENT The selected proposer will be required to agree to and sign a formal written contract between the Town of Manchester and the proposer RIGHT OF SET-OFF The undersigned bidder hereby authorizes the Town to set off against monies payable hereunder by the Town to the bidder, an amount equal to any unpaid real and personal property taxes and assessments (the collection of which is not barred by the State of Limitations), owing by the bidder to the Town, including all interest and lien charges in connection with such paid taxes DURATION OF PROPOSALS Proposals will remain in effect for a period of ninety (90) days from the deadline for submission of the proposal CONTRACT AGREEMENT(S) AND CONTRACT PERIOD(S) The successful proposer shall be required to agree to and sign a formal written agreement between the Town of Manchester and the proposer. The contract award resulting from this RFP shall encompass the period of August 1, 2017 thru July 31, The initial contract term shall be for a period of four (4) years. However this contract may be renewed by mutual agreement between the parties for two (2) additional two (2) year optional periods ACCEPTANCE OF RFP CONTENT Provisions of this RFP and the contents of the successful response will be used to establish final contractual obligations. The Town retains the option of canceling the award if the successful Respondent fails to accept such obligations. The Town and the successful Respondent shall enter into a written contract for the work to be performed. It is understood that this RFP and the Respondent s proposal shall be attached and included by reference in a contract signed by the Town and the successful Respondent.

13 Town of Manchester- Collector of Revenue Fee Schedule Effective: October 1, 2016 Tax Payments: At Town Hall: Credit Card Payments: Debit Card Payments (PINLESS): Returned Check Fee: $3.00 or 2.65%, whichever is greater $3.00 or 2.65%, whichever is greater $20.00 (plus Certified Mail fee) Online: Credit Card Payments: 3.00% Debit Card Payments: $3.95 The classification of a card as a credit card or a debit card is determined by the bank that issued the card) E-Check Payments: $0.50 per transaction Returned E-Check Fee: $5.00 Interest Rate on Late Tax Payments: 1.5% per month (18% per year) Interest is charged on all tax payments paid after their due date. Interest cannot be waived. Water & Sewer Payments: At Town Hall: Credit Card Payments: $3.00 or 2.65%, whichever is greater Debit Card Payments (PINLESS): $3.00 or 2.65%, whichever is greater Returned Check Fee: $20.00 Water & Sewer payments may be made at the Water Department (125 Spring Street), but only payments made by check or money order are accepted at that location. Online: Credit Card Payments: $4.50 for payments up to $400 Debit Card Payments: $4.50 for payments up to $400 E-Check Payments: $3.00 per transaction Returned E-Check Fee: $5.00 A fee for Certified Mail may apply in all the above cases if applicable. Fees are subject to change without notification.