REQUEST FOR PROPOSAL ADDENDUM PURCHASING OFFICE CITY OF AUSTIN, TEXAS DESCRIPTION: Application for Depository Services RFP

NO. JSD0111 ADDENDUM NO. 3 DATE OF ADDENDUM 8/31/2011 This Request for Proposal is hereby amended as follows:
1.

The additional written questions received and the answers thereto are listed below::
Q: Will the City extend the time for explanations or clarifications to August 26 due to the size and complexity of the RFP? A: The opportunity to explanations or clarifications has closed effective issuance of this addendum.

Q: In an effort to be more sustainable is a link acceptable for financial statements and SAS 70 files? A: No, this becomes part of the applicant's file therefore the City requires a hard copy.
Q: What is the # of employees not on direct deposit of payroll? Or how many city employees? (per the RFP 93% are on direct deposit) A: Approximately 850 City employees are not on direct deposit (this includes both regular and temporary City employees). Q: Can you provide the highest and average ACH file size transmitted in the last 12 months? A: The City's Payroll bank account has the largest ACH file transmissions. The highest ACH file transmitted within the last 12 months was over $21,600,000 and the average ACH file transmitted was $17,500,000. Q: What has been the City's highest daylight overdraft experienced in the last 12 months? A: While we are aware that they occur, the City of Austin does not monitor daylight overdraft amounts. Daylight overdrafts likely occur on debt service days when wire payments are released prior to a corresponding wire deposit from an LGIP provider. The largest set of payments released from one account on one day in the last year totaled approximately $99 million. The largest set of payments released from all accounts on one day in the last year totaled approximately $221.4 million. Cash is positioned at least once daily based on known and estimated debit and credit transactions to avoid any instance of overnight negative ledger and/or negative collected balances.

Q: Section 0400 Invoices and Payments-Is the Cities account direct debited for account analysis charges based on a monthly account analysis statement? Or is the city paying by credit card check or EFT as indicated in 4.B of Section 0400? A: The City's account is directly debited for the monthly account analysis charge. Q: What is the City's average collected balance for combined accounts? A: Over the last 12 months the City's average collected balance was approximately $395,000. Q: Why does the City require minimum pledge collateral of $10MM regardless of collected or ledger balances? A: Consistent with the requirements of State law, the City requires all financial institution deposits to be federally insured or collateralized with eligible securities. A collateral management service from the financial institution typically corrects deposit under collateralization the next business day (after it has occurred) and usually only collateralizes the amount of collected balance. The City has a highly decentralized deposit system. A $10 million collateral pledge protects the City's ledger balance at all times. Q: There are conflicting requirements in the solicitation regarding the number of copies required, both paper and electronic. A: We require 1 original, 8 signed copies and 3 electronic versions of your proposal Q: There are conflicting requirements in the solicitation regarding the number of references required. A: You are required to provide five (5) references. Q: SAS 70 or the new form?

A: ISAE3402/SSAE16 may be submitted for periods ending on or after June 15, 2010.

2. All other terms and conditions shall remain the same.

APPROVED BY: Signed copy on file at Purchasing Office Jeff Dilbert, (512) 974-2651 Purchasing Office, Finance and Administrative Services Department ACKNOWLEDGED BY: _____________________ ____________________ _____________ BIDDER AUTHORIZED SIGNATURE DATE RETURN ONE (1) COPY TO PURCHASING OFFICE, CITY OF AUSTIN, PRIOR TO CLOSING DATE OR WITH YOUR PROPOSAL; FAILURE TO DO SO MAY CONSTITUTE GROUNDS FOR REJECTION OF YOUR PROPOSAL.