Banking_Services_(Addendum_#2_Revision).pdf

REQUEST FOR PROPOSALS

BANKING SERVICES

FOR THE

FINANCE DEPARTMENT

CITY OF PASADENA, CALIFORNIA

Request for Proposals - Banking Services Release Date: Monday, June 22, 2026

Attachments:

A - Master Services Contract B - REQUIRED FORMS - AAs - SIG-LEGAL-STATUS - DECLARATION OF NONCOLUSION 08022024 v2 D - Professional Services with InformationTechnology

E - CONFLICT_OF_INTEREST (5)

F - Pasadena_Taxpayer_Protection_Amendment_Disclosure (2) H - DESIGNATED REPRESENTATIVESdocx

I - RELEVANT EXPERIENCE FORM

1. Introduction

1. Summary

The City of Pasadena (City or Pasadena) is seeking professional Banking Services from qualified firms as outlined in this RFP. The scope of this solicitation will encompass all general and payroll accounts.

The financial institution must be a federal or state-chartered banking entity as defined in the State of California Government Code and be a qualified depository of public funds pursuant to California Government Code Section 53648. The institution must collateralize the City's deposits pursuant to all applicable sections of the California Government Code as well as enter into a collateralization agreement for public funds. The institution must have at least a "satisfactory" Community Reinvestment Act (CRA) rating and have at least a satisfactory rating from a nationally recognized bank rating service. The proposing financial institution must also have a full-service branch location within the limits of the City of Pasadena and provide a dedicated governmental services unit.

2. Background

The City of Pasadena is an ethnically diverse community that is home to approximately 142,017 people. Pasadena is the ninth-largest city in Los Angeles County. It is one of the primary cultural centers of the San Gabriel Valley. The City covers approximately 22.5 square miles, with an average of ten residents per acre. The median age of its residents is approximately 36.9 years.

There are over 100,000 jobs in a wide variety of industries in the City of Pasadena.

Pasadena is a Charter City, incorporated in 1886, and operates under a Council-Manager form of government. Pasadena is an ethnically diverse community that is home to approximately 140,631 people making it the 183rd -largest city in the United States. Pasadena is the ninth-largest city in Los Angels County. It is one of the primary cultural centers of the San Gabriel Valley. The City covers approximately 22.5 square miles, with an average of ten residents per acre. The median age of its residents is approximately 36.9 years. There are over 100,000 jobs in a wide variety of industries in the City of Pasadena.

The City of Pasadena currently maintains is primary commercial banking Relationship with one depository institution. In Fiscal Year 2025 (July 1 2024-June 30, 2025) the City total spending budget was $1.5 billion. The City averaged approximately $1 million per day in credit transactions and an approximate equal amount of total debit transactions.

The intent of this competitive selection process is to provide qualified financial institutions an equal opportunity to submit a proposal to provide services for the City's extensive banking operation.

3. Contact Information

Deadline for Questions

The deadline to submit questions related to this solicitation is Monday, June 29, 2026, prior to 12:00 pm.

Questions regarding this solicitation should be submitted directly through the City's eProcurement Portal Q&A function. Do not contact any City employee or official regarding this solicitation. Any questions submitted after the date and time specified may not be considered.

America Espinosa Senior Treasury Analyst Email: aespinosa@cityofpasadena.net Phone: (626) 744-4538 Department:

Finance Department

4. Timeline

Release Project Date June 22, 2026

Question Submission Deadline June 29, 2026, 12:00pm

Proposal Submission Deadline July 23, 2026, 3:00pm mailto:aespinosa@cityofpasadena.net tel:(626)744-4538

2. General Instructions

1. NOTICE REGARDING DISCLOSURE OF CONTENTS OF DOCUMENT

All responses to this Request for Proposal (RFP) accepted by the City of Pasadena (City) shall become the exclusive property of the City. At such time as the City Manager recommends a contractor to the City Council, and such recommendation, with any recommended contract appears on the Council agenda, all proposals accepted by the City shall become a matter of public record and shall be regarded as public, with the exception of those elements of each proposal which are defined by the contractor as business or trade secrets and plainly marked as "Trade Secret", "Confidential" or "Proprietary". Each element of a proposal which a contractor desires not to be considered a public record must be clearly marked as set forth above, and any blanket statement (i.e. regarding entire pages, documents or other non-specific designations) shall not be sufficient and shall not bind the City in any way whatsoever. If disclosure is required or permitted under the California Public Records Act or otherwise by law, the City shall not in any way be liable or responsible for the disclosure of any such records or part thereof.

2. Electronic Submission and Delivery Instructions

Parties interested in responding are required to submit proposals electronically through the City of Pasadena's eProcurement Portal no later than 3:00 pm on Thursday, July 23, 2026. Please upload sufficiently early electronically through the city's eProcurement Portal before the time and day listed in the Notice Inviting Proposals. Proposals must be received in the system prior to the deadline.

The entire proposal must be formatted on standard-size 8½”x11” pages; 12 point font only. The "Technical Proposal," "Additional Data," and "Statement of Qualifications" can be no more than 100 grand total pages.

The Price Proposal must include all costs associated with the Technical Proposal as described in the Price Proposal instructions in the “#Proposer's Submittals/Checklist.”

The Technical Proposal should disclose your technical approach in as much detail as possible, including, but not limited to, the requirements of the technical proposal instructions. Along with all required forms and submittals (See #Attachments, and #Proposer's Submittals/Checklist. No Pricing shall be included in this part.

Proposals received after the Proposal Deadline may not be accepted by the City.

3. Separation of Technical, and Price Proposals

The proposal must be prepared in two parts: a "Technical Proposal" and a "Price Proposal." Each of the parts shall be separate and complete in itself so evaluation of one may be accomplished separate from the evaluation of the other.

https://procurement.opengov.com/portal/pasadena https://procurement.opengov.com/portal/pasadena/projects/137675/document?section=1240293 https://procurement.opengov.com/portal/pasadena/projects/137675/document?section=1240302 https://procurement.opengov.com/portal/pasadena/projects/137675/document?section=1240293

1. The Technical Proposal should disclose your technical approach in as much detail as possible, including, but not limited to, the requirements of the technical proposal instructions. Along with all required forms and submittals (See #Attachments, and Submittals/Checklist. No Pricing shall be included in this part.

2. The Price Proposal must include all costs associated with the Technical Proposal as described in the Price Proposal instructions in the “Submittals/Checklist.”

Parties interested in responding are required to submit their Price Proposal with their Technical proposal through the City's eProcurement Portal.

The pricing must include the total price proposed to accomplish all the performance and deliverables requested in this RFP, and offered by your firm. Each Proposer must submit a Price Proposal containing all costs associated with the technical proposal. The price proposal shall describe both the total and the detailed price for which the consultant will commit to complete the total scope of work and end products. The price proposal detail shall describe costs for each professional’s time, for the completion of each proposed task, and for all materials and supplies.

The fee information is relevant to a determination of whether the fee is fair and reasonable in light of the services to be provided. Costs shall include the proposed costs and, if necessary, the approximate number of hours to provide the services as described in your proposal. Any additional fees outside the scope of the agreement must be approved in writing before commencing services for said fees. Vendor’s RFP response must be inclusive of all costs and expenses associated with travel, lodging, and any other incidental costs. The City will not separately reimburse costs not included in the proposal.

4. Pre-Proposal Meeting

See the "Timeline" in the Introduction section (#Introduction). If there is a Mandatory pre-proposal meeting, bidders/proposers are required to attend at the time, date, and location included in the Timeline. If there is a Non-Mandatory pre-proposal meeting, bidders/proposers are not required to attend.

Each bidder/proposer will have the opportunity to clarify and ask questions regarding the Specifications. The Pre-Proposal Meeting will be held at the time, date, and location in the Timeline of this solicitation.

5. Definitions

The words (A) "City", (B) "Department", (C) "Director", or (D) "Contractor", as used in this RFP, shall be understood to refer respectively to (A) the City of Pasadena, California; (B) the several departments therein; (C) the directors of the several City departments; or any of their properly authorized assistants; and ( D) the person, firm or corporation with whom the contract is made by said City or the agent or legal representative who may be appointed to represent such person, firm or corporation in the signing and performance of said contract.

https://procurement.opengov.com/portal/pasadena/projects/137675/document?section=1240302 https://procurement.opengov.com/portal/pasadena/projects/137675/document?section=1240293 https://procurement.opengov.com/portal/pasadena/projects/137675/document?section=1240293 https://procurement.opengov.com/portal/pasadena/projects/137675/document?section=1240295

3. Scope of Work

Overview

The City of Pasadena is seeking the services of a qualified financial institution to provide banking services for all general, payroll and other associated City accounts.

For pricing purposes, the average monthly unit volumes for each demand account are outlined in Section 7.1 Attachments, Pricing Matrix for General Banking Services.

1. Overview

The City of Pasadena is seeking the services of a qualified financial institution to provide banking services for all general payroll and other associated City accounts including a Purchasing Card program.

For pricing purposes, the average monthly unit volumes for each demand account are outlined in the price proposal section, Pricing Matrix for General Banking Services.

2. Requirements

To be considered for selection, the financial institution must meet the following requirements and provide the following information:

Qualifications

• The financial institution must be a federal or state chartered commercial banking institution as defined in the California Government Code.

• The financial institution must be a qualified depository of public funds pursuant to California Government Code Section 53648.

• The institution must collateralize the City's deposits pursuant to all applicable sections of the California Government Code as well as enter into a collateralization agreement for public funds.

• The proposing financial institution shall provide the current level of public fund deposits and related collateral market value. A recent collateral trust statement shall also be submitted with the proposal.

• The institution must have at least a satisfactory Community Reinvestment Act (CRA) rating and a "satisfactory" rating from a nationally recognized bank rating service. A copy of the bank's most recent CRA rating shall be included with the proposal.

• The financial institution shall provide key measures of financial strength, including ratings from nationally recognized rating service(s) and bank rating services.

• The financial institution shall submit with their proposal copies of the most recently audited financial statements for the last three years.

• The proposing financial institution must have a full-service branch located within the Pasadena city limits. This branch must also include a dedicated governmental services unit. Proposer shall provide a list of branch locations within the City.

• The proposing institution must be currently providing banking services to similar size cities as Pasadena with similar products currently utilized by the City of Pasadena.

• The proposing banking institution must have a Public Finance Division in order to provide adequate facilities to the City in case of need or emergency.

3. Location

Banking services are to be provided city wide and enable services to be extended to the City's affiliated agencies, such as the Rose Bowl Operating Company (RBOC) and Pasadena Center Operating Company (PCOC).

4. Duration and Service Dates

The Proposal shall include a proposed work schedule to indicate duration and completion dates along with any project milestones and or deliverables needed to complete the project on time.

Proposal shall also include an estimate of the amount of time to be spent with City Staff.

The initial term of the contract shall be for five years from the date of execution by the City. The contract may be extended for two optional one-year extension periods subject to the approval of the City Manager.

5. General Account Services

• Provide the institution's availability/schedule for the various types of deposits.

• Describe the process for placing currency orders.

• Describe the bank's policy on and ability to provide daylight (intraday) overdraft protection.

• Describe the bank's policy on and ability to provide inter-day overdrafts. Identify how the interest rate is determined.

6. Online Reporting

The City utilizes daily cash balance and transaction reporting information for all accounts. The City requires access to prior day reporting including ledger balance and available balance. Details of credits/debits posted are required for all accounts. The City utilizes current day reporting of electronic debits/credits and wire transfers.

• Describe the bank's online capabilities and security including the use of passwords, authentication, and/or encryption techniques used to protect online data.

• Describe the bank's online information reporting system, including any file exports. Describe or provide a sample of the computer screens that illustrate the information and reports the City can obtain from the system.

• Please describe the online availability of prior day information and intraday reports to City staff. Include the frequency and time in which intraday information is updated.

7. Full Account Reconcilement

The City utilizes full account reconcilement for the operating and payroll accounts. The bank's reconcilement file is downloaded by City staff at month end to the City's accounting system. The City also accesses its bank statements online by the tenth of the following month.

• Describe the bank's full reconciliation service. Describe the standard monthly reports provided and any optional reports that are available. Please provide an example of a standard statement and any optional reports.

• Identify the soonest point at which the monthly statements are available for City download and the various formats available.

• Describe the manner in which the cleared check file can be accessed by City staff and the various formats available.

8. Depository Services

The City deposits approximately 18,400 checks per month through a remote deposit and remittance process with a bank cash letter agreement. The City currently has armored truck service to pick up deposits of check, cash and coin twice weekly to the local Bank of America branch cash vault. Monthly deposits and credits average $14 million. Account volumes are based on historical information and are not guaranteed. Future account activity is expected to fluctuate based upon City operations.

• Describe the bank's required preparation for cash deposits, currency, coins and checks.

• Identify the location of the cash vault and check processing center in which the City's deposits will be received and recorded.

• Describe the bank's policies and procedures with respect to deposit discrepancies, including the inadvertent deposit of checks to the City. Please identify the timeline and manner in which the City will be notified and supporting documentation to be provided to the City for deposit adjustments.

• Identify the deposit deadline at all banking centers and cash vault to ensure same day ledger credit.

• The City currently uses unique identifiers on deposit endorsements in order to accurately account for various departments' revenue. Identify procedures to differentiate deposits, if any.

• The City requires that all returned deposit items for non-sufficient funds (NSF) be re-deposited at least once. Describe the bank's return procedures for NSF and the manner in which the City will be notified of the NSF check.

• Describe the bank's remote deposit service including necessary equipment, transfer procedures, deadlines, and document retention. Please address whether remote deposit services are processed in-house or whether any or all functions are provided through a third party contractor.

9. Paper Disbursement Services

The City issues approximately 5,000 checks per month from the City's general account and less than 100 checks per month from the City's payroll account. The majority of the City's employees receive payroll funds by direct deposit and the City receives a drop file with images of paid checks. The City places approximately three stop payments online each month and has the ability to view images of cleared checks online.

• Please indicate if the institution offers truncation for paid items/checks with images available to the City. Please outline the various image format options available to the City, the duration in which the images can be viewed and the soonest available timeframe in which the image is viewable once processed by the bank.

• Please indicate the bank's maximum character field size for check numbers and whether the bank will test for magnetic ink character recognition (MICR) encoding of new checks.

• Describe the bank's method for the placement of stop payment orders and note whether the request can be input online. If online input is available, please state whether an immediate confirmation can be provided and the length of time stop payment orders may remain in effect.

• In cases in which checks have not been cashed for a period of six months or more, please indicate whether the bank will agree to refrain from honoring such checks and if there is a cost to the City for reviewing and returning them.

• Please state how the bank will compensate the City for checks cashed after a stop is placed or exceeds the six month time period. Please also note the length of time the bank will take to reimburse the City in the event such checks are cashed.

10. Payee Positive Pay

The City issues checks from the general operating account twice weekly. Positive pay data is transmitted to the bank with each check run and positive pay exceptions are reviewed daily by the City online. The City is notified of exceptions by viewing the online banking portal after 8:00 a.m. each weekday. Items are returned by default if no decision is made. The City utilizes payee positive pay service on the general operating account ,payroll account and workers comp account.

• Describe the bank's capabilities for payee positive pay and indicate what fields are currently included. Please state whether the bank offers payee validation and provide the institution's positive pay specifications.

• Describe the manner in which the bank will report positive pay exception items to the City and note any associated image viewing options available.

• Outline the procedure and timeline for paying or returning exception items and cite the default disposition in the event you do not receive a decision response by the deadline.

11. File Transmission

The City generates and transmits multiple positive pay and ACH payment files daily via SFTP file transmission protocols, and requires File confirmation/acknowledgment for all transmitted files.

• Describe the bank’s support for multiple file transmissions via SFTP.

• Outline services provided to address SFTP file transition protocols and specifications.

• Describe the flexibility to customize the file transmission process based on City’s specifications.

• Describe the Same Day transmission confirmation/acknowledgment for each file transmitted and processed with details including total file amount, total item count, effective payment date, account to debit, account tax identification number, ect.

• Outline the procedure to have the ability to provide Same Day transmission confirmation/acknowledgment via faxes, email or online report via the online secured web poratl.

12. Business Continuity

• Describe the bank's disaster contingency plans, contacts and backup systems for continued City operations in the event of a system failure, natural disaster, and/or other emergencies.

Please indicate if there is a backup site and when the institution's disaster recovery plan was most recently updated and tested.

• Describe the ability of the institution to meet the City's need for cash in emergency situations. If funds are available, state the cash limits.

• Describe any other services that may assist the City to function with minimal interruption.

13. Wires and ACH

The City utilizes electronic fund transfers for both incoming receipts and outgoing payments through the ACH. The City receives all credit card settlements and state apportionments through ACH as well as issuing a high percentage of its vendor payments and all payroll payments by ACH.

The City currently utilizes wire transfers for investment settlements including the Local Agency Investment Fund (LAIF), bond payments, county apportionments and periodic miscellaneous payments. The City sends and receives approximately 90 wires per month. The City currently has the ability to initiate wires online, save recurring templates, store future dated wires and receive email notification of incoming wires.

• Describe the bank's online wire transfer capabilities, including the ability to create and store repetitive wire templates and ability to create future-dated wires. Indicate the deadline for initiating wire transfers to ensure same-day execution. Describe any safeguards, internal controls, and security measures the bank has in place to protect the City particularly in cases of unauthorized wires. Please state whether there is a maximum daily limit with respect to wire transfers.

• Describe the types of ACH files acceptable to the bank and indicate the deadline for delivery of these files. Please state whether the bank imposes a file limitation for maximum dollar amounts or number of entries. Please note the manner of acknowledgement the institution provides and the timeline for receiving a file transmission.

• Describe the procedure for notifying the City when an outgoing ACH transmission fails and the timeline for notifying the City of these occurrences. Also indicate the timeliness with which the account will be restored.

• Indicate whether the City will be given the ability to change, add or delete an item after transmitting the ACH file to the bank. If so, please describe the procedure and deadlines.

• Describe the bank's security system in general and how it will guard against unauthorized ACH debits to the City's accounts.. In the event an unauthorized ACH debit is posted to the City's account, describe how the transaction would be resolved.

• Describe the bank's contingency plans in the vent of a system failure. Please outline the backup process if internet/transmission lines are unavailable.

• Indicate the charge per transfer to and/or from LAIF and describe the transfer process.

• Explain suggestions for business resumption in the event the City is unable to deliver a payroll ACH file to the bank in a timely manner.

14. Payment for Services/Bank Compensation

The City currently compensates for banking services through a combination of direct fees and an earnings allowance based upon the demand deposits. The City requires a monthly account analysis statement with a summary page for all accounts.

• Please indicate whether the bank accepts compensation in fees, collected balances or a combination of the two. Please note whether the associated price schedule is different or the same for each.

• If collected balances are accepted as compensation for fees, provide the complete formula for calculating the earnings credit. Please note whether the bank's earnings credit rate is based on an index and list the bank's actual earnings credit rate for each of the last twelve months.

State whether the excess earnings credit can be carried over and, if so, note the maximum amount allowed.

• State whether the institution service codes and Association for Financial Professionals service codes are included on the account analysis statement and if it can be delivered electronically each month. Please note if it is accessible online, the formats available and when the statement is available for viewing.

• Indicate whether the bank will invoice the City for analysis statement fees and, if so, state if the City's account can be debited for fee payments.

• Provide a sample bank account analysis statement as an exhibit.

• Indicate whether the financial institution will guarantee the prices outlined in this proposal for the next five years and, if not, describe the manner in which future price increases will be calculated.

15. Lockbox Services

The City maintains two Lockboxes to receive customer-initiated payments originating from the third-party vendor that provides the city’s billing services for its False Arm Billing.

• Describe Banks Lockbox services that can be provided and how the process works.

• Describe the type of reports to view or files that third-party can upload to their billing services to apply payments received.

• Describe the capability to receive and process a daily payment received through the lockbox.

• Describe the capability to provide a detailed summary report of daily payments received and the processing status of each payment.

• Describe the ability to set up two separate accounts for these billing as ZBA account to be transferred to the city main out every night.

• Describe the capability to retain records related to payments received, processed, accepted and transmitted for audit purposes for a period of five (7) years.

• Describe how notification of payment reversals/returned payments on all customer or City-initiated payments.

16. Purchasing Card Program (Pcard)

The City of Pasadena (City) operates a mature purchasing card program and anticipates ongoing cardholder growth. Detailed volumes will be provided post-award under Non-Disclosure Agreement (NDA). The qualified financial service providers must be able to manage a P-Card program for up to 2,000 employees and support the City daily and during emergencies, special events and natural disasters.

The goal of the P-Card program is to simplify and streamline authorized purchases, improve expense controls and payment times, reduce administrative burden, and provide opportunities for rebate revenue. The P-Card program should include internal controls and user-friendly data analytics to better monitor spending patterns and ensure compliance with City policies and procedures.

This section of the SOW intends to describe a P-Card program that is currently available and is not intended to be proprietary in any way. The use of information in this section is to set a baseline standard for comparison only and does not intend to exclude any financial institution. All required components and processes for the work to be complete and useful to the City of Pasadena must be included in the work proposed and the price/fee schedule.

APPLICABLE PUBLICATIONS

National Association of Purchasing Card Professionals (NAPCP), the Professional Association for the

Commercial Card, the Institute of Commercial Payments (IOCP), and Payment Industry P-Card Industry Data

Security Standard (PCI DSS).

REQUIREMENTS

The City of Pasadena intends to continue a P-Card program for authorized purchases, in compliance with the

City’s Charter, Pasadena Municipal Code, Chapter 4.08 Purchasing ordinance and the City’s Purchasing

Handbook. Each card should have monthly, single and daily transaction limits, where monthly limits are reset at the beginning of each month.

Initially, City of Pasadena will require set up for multiple staff across city departments. Additional cards with specified card limits may be added in the future based on changes to City needs and procurement policies.

The Contractor must provide a nationally recognized card, providing the widest possible acceptance by retailers, including all required set-up and service charges at no cost to City. The Contractor shall provide a plan that details all tasks necessary to train the users and issue cards to all identified cardholders. The

Contractor will perform the Scope of Work and meet all requirements as specified in the following description:

1) Program Compliance – The Contractor’s proposed program must comply with all applicable federal, state and local laws, ordinances, and standards, etc. including but not limited to the NAPCP, IOCP, PCI DSS and state, local and federal laws and regulations.

2) Web Portal – The Contractor shall provide a secure online portal capable of viewing and managing card activity, spending reports, and other relevant program information. The portal must be available 24x7x365.

Portal must support configurable financial metadata fields and role-based workflows compatible with the

City’s ERP and financial coding structures; detailed mappings provided under NDA. The web portal must support single sign-on (SSO) based upon industry standard SAML or OIDC; role-based access; and least privilege.

1. Any planned downtime of the portal must be communicated to the agency at least 5 business days prior to the event.

2. The P-Card program must include a documented communication plan of the response process to unplanned downtime including a description of any process or hierarchy used to select the rectification of one business before another.

3. The P-Card program must include a clearly documented process to report problems and a Service Level Agreement.

3) Card Acceptance – The Contractor shall provide a P-Card program that is widely accepted throughout the state of California, nationally, and internationally.

4) Card Issuance – The Contractor shall issue cards in accordance with a mutually agreed upon plan that details all tasks necessary to issue P-cards to the identified cardholders. This plan must meet all identified timeframes for cards to be active as specified by the City.

1. The Contractor shall meet all identified timeframes for the delivery of new cards and provide the account numbers and portal access for all cardholders.

2. The Contractor shall meet a next day turnaround time for rush new and replacement cards.

3. The Contractor shall provide electronic and hard copies of full instructions, including activation requirements (with screen shots) to new cardholder applicants.

5) Single Use Cards – If needed, the Contractor shall provide single use card capabilities, as requested by the

City.

6) Card Format – The P-Card design must have a distinctive format that readily identifies the P-Card cardholder as an employee of the City of Pasadena. A sample card design must be provided in accordance with the mutually agreed upon schedule.

The Contractor must provide specifications of its proposed format for the P-Card to include at a minimum the following elements:

I. Name: City of Pasadena II. City of Pasadena Logo III. Phrase “For Official Use Only” IV. Additional Contractor recommended features

7) Limits and Restrictions – The Contractor shall restrict certain types of transactions from the credit card processing system. The Contractor must have the ability to restrict purchases by Merchant Category Code

(MCC) and/or Standard Industry Codes (SIC) and included MCC/SIC Classification Permissions.

The Contractor must enforce the following minimum restrictions:

I. Dollar limits per Department/P-Card.

II. Transactions limits per Department/P-Card.

III. Restrictions concerning types of vendors the P-Card may not be used.

IV. City shall have the ability to identify multiple MCC groups by Department.

V. Cash advances are prohibited.

8) Fees and Other Charges – The Contractor shall only be entitled to the fees and charges identified in the

Agreement. City requires a payment term to be 30 days or Net-30.

9) Disputed Items – The Contractor shall handle all transactions that are disputed between City and merchants where the card is used. The Contractor must adhere to the contracted process for the handling of transactions that are disputed between the Contractor and City of Pasadena. Further, the Contractor shall maintain and update the dispute process and include the following:

I. Dispute form and/or online filing of the dispute.

II. Timeline for cardholders or the Program Administrator to dispute a charge.

III. Cardholder and the Program Administrator notification of the dispute results.

IV. Dispute reports that may be received or obtained online.

10) Lost or Stolen Cards – The Contractor shall adhere to the mutually agreed upon process for handling lost or stolen P-Cards, and the related liabilities. At a minimum, lost or stolen P-Cards must be acknowledged by the

Contractor via telephone and email immediately upon receipt of the loss with prompt replacement by mail.

11) Fraudulent Charges – The Contractor shall adhere to the mutually agreed-upon fraudulent charge resolution process and notify the cardholders and Program Administrator when City might be liable for these charges. The charges shall not be deducted from any rebates.

12) Responsibility – The Contractor shall have the responsibility for issuing all cards on behalf of the City. The

City will be responsible for payment. Individual credit checks shall not be done on individual cardholders, nor shall P-Card activity show up on cardholder personal credit histories.

13) Cancellation of Cards – The Contractor shall adhere to the mutually agreed-upon policies for canceling P-

Cards issued on behalf of the City. Cancellations will be requested by verbal or written communication or through an online application. City of Pasadena shall not be liable for charges incurred after notice has been made to the Contractor to cancel any card or cards.

14) Customer Service – The Contractor shall provide individual cardholders and the program administrator access to customer service support that includes but is not limited to the following:

1. A toll-free help line for cardholder inquiries and emergencies (such as lost or stolen cards or questions associated with declines). The help line must be available 24x7x365 at no additional cost to the City.

2. Maintain a central account customer service representative for the P-Card Administrator (Deputy CEO of Finance and Administration) and other designated employees.

3. Handle any disputed transactions, charge backs or changes in restrictions on all P-Cards.

4. Maintain the mutually agreed-upon response time permitted for all changes or requirements and account updates.

15) Liability – The Contractor shall adhere to the mutually agreed-upon policies for determining liability for all

P-Cards issued on behalf of the City. The City shall be liable for the use of P-Cards by authorized users, provided that (1) the use is within the monthly and single item purchase limits, and (2) the use is with an authorized merchant. The Contractor shall adhere to the mutually-established time frame between receiving a report of a lost or stolen card and mailing a replacement card.

16) Unauthorized Charges – The Contractor shall adhere to the mutually agreed upon policies for handling unauthorized charges on P-Cards issued on behalf of City. The City shall not be liable for charges resulting from unauthorized use of any P-Card except as specified in a mutually agreed-upon agreement. Unauthorized use is defined as any use or purchase that is prohibited by the City of Pasadena or federal, state, or local laws, rules, procedures or executive orders, or any use by an unauthorized user. The Contractor shall:

1. Monitor account transactions to identify any unusual spending patterns.

2. Contact the P-Card Administrator and impacted cardholders when fraudulent card usage is suspected and identify any steps necessary to correct or identify when a card needs to be cancelled and reissued.

3. Ensure overrides require authorization following protocols established in collaboration with the Purchasing Division and which support options such as least-privilege RBAC, out-of-band verification and immutable audit logs.

4. Notify the Administrator and/or impacted cardholders when the dispute has been resolved.

17) Controls & Restrictions – The Contractor shall provide program controls, which will prevent the use of the card for purchasing certain restricted items. These may include, but are not limited to vehicles, fuel, entertainment, furniture, alcohol, personal items, consultant/contract services, etc. Cash advances are strictly prohibited. The Contractor shall provide:

1. Customizable online controls and restrictions for MCC groups at the cardholder level.

2. Customizable online controls and restrictions for granting a temporary spending limit increase of an individual cardholder.

18) Reporting – The Contractor shall provide various management reports that are available for P-Card purchases. These reports should be available 24x7x365 to the City on the web portal at no cost. Contractor may develop additional reports during the contract period to support the City in making informed decisions on purchasing activities. The Contractor shall provide written specifications of the design and functionality of reports including query, group, and sort parameters. All reports should include an export to Excel or comma delimited format and functionality to email reports directly from the system. Proposer is expected to provide sample reports.

19) Implementation Assistance and Training – The Contractor shall provide issuance and implementation assistance for the P-Card program. The Contractor shall provide technical assistance and/or any training necessary for a smooth transition. This includes, but is not limited to, new cardholders, online cardholder maintenance, program administrator training, review functionality, reporting and report writing, query or report function training, software and annual user conferences, and webinars for all P-Card users.

20) Fees and Fee Structure & Rebate Program – The City is seeking a P-Card program without start-up costs or internet-based startup costs, account maintenance fees, and charge for transactions, statements, or other fees. This includes all fixed fees and transaction fees. The Contractor shall propose all Rebate Programs that may be beneficial to the City.

21) Interface with Current Systems – The City is seeking a program that preferably interfaces with common travel and expense report software and the City’s Tyler Munis ERP system, as well as other systems that may be considered in the future.

22) Additional Services, Innovative Approaches, and Potential Problems – City seeks a Contractor that maintains best practices and looks for new, innovative ideas, or enhancements.

17. Conversion Process and Training

In the event that your bank is selected, key bank staff assigned to the City will be required to participate in an on-site review of the City and its existing banking practices. The bank will be expected to prepare a written report to the City of its findings and recommendations and develop a conversion plan based on the review. In your proposal, please include the following:

• The length of time for the conversion and factors which may alter the time period.

• Sample conversion timetable and schedule.

• Indicate whether training will be provided on-site, online or at the bank's facilities. In the event of the latter, please cite the location of the training.

• Cite whether the conversion will be at no cost to the City.

• Indicate the bank's intention to take the lead and responsibility for conversion progress and provide weekly progress updates to City staff.

• Note whether the institution will provide written user manuals for all services, frequency of manual updates, and availability of manuals online.

• State whether the bank will provide ongoing training after implementation and the location and/or manner in which it will be provided.

18. Cyber Security

• Describe banks published breach disclosure policy.

• Describe banks security operations center/network monitoring

• Bank procedure to identify, report and correct information and information system flaw (vulnerabilities and security incidents), and have documented privacy and security protocols in place to deter unauthorized activity (i.e. criminal, negligent, “hacking”) by firm’s employees (insider Threats) and external entities.

• Describe how the bank employs a non-deprecated, industry standard method of data encryption for both in transmission and at rest.

• Describe documented cyber security risk management strategy in place specific to a government entity.

19. Compensation

Pricing shall be uploaded separately as part of the submittal checklist. Pricing must specifically itemize fees for banking services utilizing the Pricing Matrix for General Banking Services.

• Provide any other information which would assist the City in determining a contract award.

Information may include any that the bank believes appropriate such as the bank's philosophy regarding its relationship with governmental accounts and/or the bank's involvement in the local community.

20. Additional Information and Questions

The City wishes to continue incorporating available technologies when feasible to facilitate payables as cost effectively as possible. The City currently utilizes e-payables, Paymode X and has a Purchasing Card program. The City requires that a bank offer e-payable solutions and these programs are to be thoroughly described in the proposal.

• Describe the bank's electronic payable services including the integration of payables, payment consolidation and data transfer options.

• Outline the electronic payables process utilizing the City's batch transmissions and cite the file formats to be required.

• Provide detailed information regarding the bank's purchasing card program and include card parameters and restrictions, the enrollment process and type of reporting available.

• Describe reasons explaining why the City should select your banking institution. Cite specific areas in which your products and services differentiate your bank from others and the extent to which they may be beneficial to the City.

• Describe able to integrate with ERP system bank reconciliation figures such as Tyler Munis with upload files in certain format to be able use this figure.

21. Additional Requirements

PCI DSS (Service Provider) – v4.0.1 required

The Contractor must maintain full compliance with PCI DSS v4.0.1 as a Service Provider, including annual ROC by a QSA (or ISA) and an Attestation of Compliance (AOC). The Contractor will provide current ROC/AOC within 10 business days of request and notify the City within 24 hours of any loss of compliance. Customized Approach controls must evidence equivalent risk mitigation.

GLBA Safeguards Rule (FTC, 16 CFR Part 314)

If the Contractor qualifies as a financial institution or service provider under GLBA, it shall maintain a written information security program meeting 16 CFR Part 314 (Safeguards Rule), designating a Qualified Individual, conducting written risk assessments, implementing technical safeguards (including MFA, encryption, pen-testing/vuln management), and breach reporting consistent with FTC guidance

FFIEC third-party risk & information security oversight

The Contractor will align its controls and third-party oversight to FFIEC Information Security and the 2023 Interagency Third-Party Risk Management guidance (planning, due diligence, contract provisions, monitoring, termination). The City reserves audit/assessment rights on controls relevant to City data.

Nacha ACH Risk Management (2026 rules) for general/payroll accounts

The Contractor (ODFI/RDFI/government banking unit) will implement Nacha’s 2026 Risk Management Rules, including risk-based processes to detect ACH entries initiated under false pretenses, annual control reviews, and RDFI monitoring. The bank will provide ACH debit blocks/filters, payee positive pay, dual approvals, and out-of-band callback verification for new/changed beneficiaries, with liability on the bank for failures to perform these controls.

Independent audits & certifications

Maintain and annually furnish: SOC 2 Type II (Security, Availability, Confidentiality) and ISO/IEC 27001 certification (or equivalent), including management responses to exceptions.

Incident/Breach notifications

Security incident affecting City data → notify within 24 hrs; Confirmed breach → within 8 hrs, with forensic packet: scope, indicators, containment, interim mitigations, and customer notice obligations (aligned to GLBA/FTC).

4. City Requirements

There are forms included in the section named Submittal/Checklist of these specifications which a bidder or proposer must complete to establish compliance with a number of City Requirements, including, but not limited to, equal employment opportunity and affidavit of non-collusion. These forms and their instructions should be considered an integral part of the specifications and failure to complete them may be grounds, in the sole discretion of the city, for rejection of any bidder or proposer.

1. Pasadena Operating Companies

If this solicitation is issued by an Operating Company of the City of Pasadena including the Pasadena Center Operating Company; or Rose Bowl Operating Company; or Pasadena Community Access Corporation: In this solicitation, any reference to the City, shall actually refer to the PCOC, PRHB, or RBOC, or PCAC, e.g. "City" shall refer to the Operating Company, "City Council" to its Board of Directors, and "City Manager" to its Chief Executive Officer.

2. Equal Employment Opportunity in Contracting

Policy - The City of Pasadena is committed to a policy of Equal Employment:

• Contracting. Contractors expressly agree to comply with the City’s ordinances and regulations regarding Equal Opportunity Employment as well as regulations that may be mandated by the source of the funds supporting this contract.

Compliance – To the extent permitted by law, Contractor expressly agrees to establish compliance with the Equal Employment Opportunity Practices Provisions of Chapter 4.08 of the Pasadena Municipal Code, and the Rules and Regulations adopted pursuant to said ordinance.

The successful bidder or proposer may be required to submit documentation during the term of the contract to evidence on going compliance with the City’s Equal Opportunity Practices Provisions. Such documentation may include, but not be limited to certified payroll records and Current Permanent Workforce Utilization reports.

Required Forms – Each bidder or proposer must submit a completed Form AA-1. Failure to submit this form will result in automatic disqualification with no exceptions unless bidder or proposer has an approved Form on file with the City.

Questions regarding Chapter 4.08 of the Pasadena Municipal Code and regulations adopted pursuant thereto should be directed to the Department of Finance, Purchasing Division 626.744.6755.

3. Declaration of Non-Collusion by Contractor

This form is only applied for formal solicitations $75,000 or more. The City requires that each bidder or proposer executes and submits to the City with the Bid/Proposal, the attached Declaration of Non Collusion in the section named "Submittals/Checklist."

4. SAMPLE CONTRACT

A sample of the contract the successful vendor will be required to enter into with the City is attached hereto and by this reference incorporated herein and made part of this solicitation.

5. Change Order Management

Any additional work identified during the course of the project that is deemed necessary, but outside the original Scope of Services, must be recorded as a Change Order and approved by the City in writing before work is started.

6. Local Preferences

The City of Pasadena is committed to promoting the economic health and well being of its residents. To this end, contractor agrees to recruit Pasadena residents initially and to give them preference, if all other factors are equal, for any new positions that result from the performance of this contract and which are performed within the City.

7. Pasadena Business License

Awarded bidder or proposer may be required to obtain and pay for any required business license under Title 5 of the Pasadena Municipal Code.

• If the business will not come into the City for the purpose of providing services for this contract they are not required to obtain a business license.

• If the business will only be coming into the city no more than 10 times to work on projects, they are charged 33% of the annual tax (Pasadena Municipal Code Section 5.04.130C)

• If they come into the City more than 10 times they are required to pay the annual fee.

• Any subcontractors used by the awarded bidder or proposer will be required to obtain a license if they will be coming into the City to perform services.

For further information contact Municipal Services Department at (626) 744-4166,…