Utility Payment Processing Services

The Vendor is required to provide complete, end-to-end lockbox services for the city utility payment processing operations.
- Requirement:
1. Mail receipt and handling
•    Establish and maintain a dedicated post office box (lockbox) for the city utility payments
•    Retrieve mail from the designated post office box at least once per business day (more frequently if volume requires)
•    Transport all mail securely to the processing facility using documented chain-of-custody procedures
•    Implement controls to safeguard against loss, theft, or unauthorized access
2. Mail opening and preparation
•    Open all envelopes in a secure, controlled environment
•    Sort and separate payments, remittance documents, and correspondence
•    Identify and properly handle exception items, including:
o    Missing or incomplete payment information
o    Multiple payments within a single envelope
o    Non-utility-related mail
•    Prepare all documents for processing in accordance with established procedures
3. Payment processing
•    Process all payments received, including:
o    Checks
o    Money orders
•    Capture key data elements, including but not limited to:
o    Account number
o    Customer name (if available)
o    Payment amount
•    Balance all processed transactions daily to ensure accuracy
•    Ensure all payments are processed in accordance with industry standards and best practices
4. Imaging and data capture
•    Create high-quality digital images of:
o    Checks (front and back)
o    Remittance stubs
o    Correspondence (as applicable)
•    Utilize optical character recognition (OCR) and key entry for data capture
•    Ensure image quality meets industry standards for audit and retrieval purposes
•    Provide indexing to allow efficient search and retrieval of images
5. Deposit and funds availability
•    Prepare and deposit all funds into the city’s designated bank account(s)
•    Ensure deposits are made within agreed-upon service level timeframes (e.g., same-day or next-business-day deposit)
•    Provide deposit verification and reconciliation totals
•    Comply with all applicable banking regulations and funds availability requirements
6. Electronic data transmission
•    Transmit payment data electronically to the city in a format compatible with its financial and utility billing systems
•    Provide data files in one or more of the following formats, as required by the city:
o    Csv (comma-separated values)
o    Xml (extensible markup language)
o    Fixed width
•    Ensure timely delivery of data files (daily processing files required)
•    Provide secure transmission methods 
•    Work with the city to develop, test, and maintain file formats and transmission schedules
•    Support modifications or additional file format requirements during the contract term, as reasonably requested by the city
7. Exception processing
•    Identify and manage exception items, including:
o    Unreadable or damaged checks
o    Missing account numbers
o    Payment discrepancies
•    Establish procedures for resolving exceptions in coordination with the city
•    Provide detailed reporting of all exception items
•    Forward unresolved items and correspondence to the city in a timely manner
8. Correspondence handling
•    Separate non-payment correspondence from payment items
•    Image and log correspondence as required
•    Forward physical correspondence to the city within agreed-upon timeframes
•    Maintain tracking logs for all forwarded materials
9. Reporting requirements
•    Daily deposit reports
•    Batch totals and reconciliation reports
•    Exception and adjustment reports
•    Image access and retrieval capabilities
•    Monthly and annual activity summaries
•    Service level performance reports.