Long Beach, CA
File #: 12-0960    Version: 1 Name: FM - Remittance Processing System Equipment
Type: Contract Status: CCIS
File created: 10/23/2012 In control: City Council
On agenda: 11/13/2012 Final action: 11/13/2012
Title: Recommendation to adopt Specifications No. RFP FM12-055 and award a contract to RT Lawrence Corporation, of Whittier, CA (not an MBE, WBE, SBE or Local), for the purchase and installation of remittance processing equipment, in an amount not to exceed $335,000. (Citywide)
Sponsors: Financial Management
Indexes: Contracts
Attachments: 1. 111312-R-31sr.pdf
Related files: 32873_000
TITLE
Recommendation to adopt Specifications No. RFP FM12-055 and award a contract to RT Lawrence Corporation, of Whittier, CA (not an MBE, WBE, SBE or Local), for the purchase and installation of remittance processing equipment, in an amount not to exceed $335,000. (Citywide)

DISCUSSION
City Council approval is requested to enter into a contract with RT Lawrence Corporation for the purchase and installation of new state-of-the-art image-based remittance processing equipment. Since its implementation in October 2004, the Check Clearing for the 21st Century Act (Check 21) has enabled greater use of imaging technology for check clearing. Because of this, paper checks can be converted to electronic images for clearing and processing, thus saving on bank processing fees. Financial institutions clear checks faster as electronic images than paper checks, thus allowing access to funds on average one day sooner. Utilizing the latest in imaging and handwriting recognition technology will streamline the payment processing operation by reducing the number of processing steps and accelerating the processing of payments.

The Department of Financial Management, Commercial Services Bureau, is responsible for accepting, processing and depositing money received by the City. A key component of the City’s cashiering operations is the remittance processing equipment used to open and process approximately 1.2 million payments annually that are sent to the City for various City departments. The existing processing equipment had a life expectancy of ten years and is now 15 years old. As a result, the equipment has been experiencing increased maintenance calls and replacement parts are becoming harder to locate.

The total cost of the project is estimated at $380,000. Approximately $335,000 will be paid to RT Lawrence Corporation for equipment, software, installation, and one-year hardware and software maintenance. The remaining $45,000 is for the procurement of hardware t...

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