HomeMy WebLinkAbout11 - BA-008 - Remittance Processing EquipmentCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 11
October 14, 2003
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Administrative Services Department
Dennis C. Danner, Administrative Services Director (949) 644 -3123
ddanner @city.newport- beach.ca.us
SUBJECT: Approval of Purchase of Remittance Processing Equipment and
Authorization of Budget Amendment Appropriating Funds for the
Purchase
ISSUE:
Should the City purchase new remittance processing equipment?
RECOMMENDATIONS:
1. Approve the purchase of new remittance processing equipment with hardware and
software maintenance at a total first year cost of $45,000.
2. Authorize a Budget Amendment appropriating $28,973.84 from the unappropriated
balance of the Water Fund to Account No. 7501- C0620741, $4,527.16 from the
unappropriated balance of the Wastewater Fund to 7531- C0620741, $3,169.02 from the
unappropriated balance of the Tidelands Fund to 7231- C0620741, and $8,329.98 from
the unappropriated balance of the General Fund to 7017- C0620741.
DISCUSSION:
As previously reported to Council, the City's remittance processing machine is in need
of replacement. We use this equipment to process the nearly four hundred thousand
checks and payment stubs mailed to us by our customers to pay their municipal
services statements, parking tickets, and many other miscellaneous billings each year.
Our current equipment was purchased "used" more than ten years ago, and it has
broken down three times in the past few months. Parts are no longer available for this
unit and the software has been unsupported for several years. When this unit is not
functioning, all checks and payment stubs have to be entered using handheld scanners
Approval of Purchase of Remittance Processing Equipment
October 14, 2003
Page 2
or manually keyed in. This manual process is excessively time consuming and adds an
element of possible error to each transaction.
The replacement machine recommended for purchase has some impressive features. It
will provide imaging of the front and back of checks and payment stubs, endorse the
back of the check for deposit, record the customer's account information, and capture
the information in a database that is searchable by any piece of information on the
check or payment stub. This will enhance our abilities to service our customers, reduce
the City's liability for check deposits, reduce our storage needs, and will enable the City
to present electronic versions of our customer's checks to the bank instead of
submitting the paper versions. This last feature will depend on pending legislation
affecting the banking industry, but it is quite probable this will be an option for us in the
coming year.
Staff solicited proposals and visited demonstration sites from four different firms for the
equipment and software. There are two major manufacturers of remittance processing
equipment, NCR and Standard Register. Both companies offer the same type of
equipment and features, but the NCR7731 was available at a lower overall cost.
Three cost proposals were received for the NCR7731. DMP provided our current
remittance processing machine and was able to give a substantial "migration credit" for
our existing machine. Staff has found DMP to be very reliable and responsive and is
recommending purchase of the new piece of equipment from this vendor. The first year
cost is approximately $45,000 which includes the purchase of hardware, software,
installation, training, and maintenance agreements. Subsequent year funding for
materials and maintenance agreements are estimated at $6,500 per year.
Funding Availability:
The purchase of this equipment was not included in the FY 03 -04 budget. Due to the
percentage of receipts attributable to Water, Wastewater, Tidelands, and General Fund
revenues processed by this equipment, it is appropriate to fund a portion of the total
cost from these funds. Subsequent years funding for materials and maintenance
agreements should also be allocated to these same funds using this same
methodology.
Sufficient funding will be available upon approval of the recommended Budget
Amendment to the following accounts:
Approval of Purchase of Remittance Processing Equipment
October 14, 2003
Page 3
Account Description
Amount
7017- C0620741 — General Fund
$8,329.98
7501- C0620741 —Water Fund
$28,973.84
7531- C0620741 —Wastewater Fund
$4,527.16
7231- C0620741 — Tidelands Fund
$3,169.02
Grand Total
_
$45,000.00
Alternatives:
Council could choose to not authorize the purchase of new equipment at this time.
Prepared by: Submitted by:
Lois Thompson Dennis Dann re
Fiscal Operations Manager Administrative Services Director
Attachments: List of Features — NCR7731
Budget Amendment
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&/3 NCR
he 7731 is designed primarily
as an imaging solution for low- volume,
branch -level processing environments.
While it is very productive in a front
office configuration such as at a teller
station, it is also highly effective in the
low- volume back office environment.
The compact 7731 utilizes state -
of- the -art thermal encoding, ink jet
printing, magnetic card reading and
advanced optical character recognition
for MICR and OCR fonts. Connected
to virtually any standard PC and run-
ning on NCR's own reliable software
tailored to meet your needs, the 7731
will help you transition your front or
back office to imaging technology with
minimal disruption to your productivity
and overall efficiency.
Flexible
To ensure maximum application flexi-
bility, an NT -based common operating
environment — Windows Integrated
Services Environment for Item
Processing (WiseIP) is available
on the 7731. Combined with NCR's
Enhanced Item Processing Software
and /or a third party application, the
7731 can be upgraded to a complete
image - enabled "proof and encode"
document processing system. Branch
server connection across the LAN
network ensures that captured data
and images are accessible and easily
retrieved from different locations.
The optional Automatic Document
Feeder increases processing capacity
to approximately 750 documents and
allows single document insertion using
the Power Hand Drop. Your operator
can load the hopper and move on to
other tasks. Choose from a 3, 6, or
12 pocket configuration to expand
the sorting capacity of your processing
system, and further enhance operator
productivity and efficiency.
As you discover new ways to
capitalize on imaging technology, the
7731 can be field upgraded quickly
and cost effectively to meet the
changing demands of your operation.
Reliable
The 7731 is completely designed and
built by NCR, an acknowledged leader
in the field of image item processing
technology. While providing all the
benefits of this advanced technology,
the 7731 is surprisingly simple to
install, program, operate and maintain.
Perhaps more important, it is a
low -risk, point -of -entry opportunity
into a future based entirely on
imaging technology.
Affordable Imaging
Imaging technology is the key to
reducing the amount and travel of
paper. This technology provides more
efficient short and long term docu-
ment archival and can eliminate the
need for microfilm storage.
Strictly an image item processor, the
7731 is yet another way NCR makes
imaging technology an affordable
alternative in a low- volume environ-
ment. Front image capture is standard
on the 7731 and rear image capture
is available as an optional feature.
Image transfer to the PC controller
is fast, efficient and error free.
Turn Imaging Into Revenue... One
of the easiest ways to capitalize on
image processing technology is to
offer a variety of new customer ser-
vices which can generate revenue for
your business. For checking account
customers, these services include
image statements. A few pages of
crisp, clear, laser- printed images are
an attractive alternative to receiving
stacks of processed checks.
For more technologically advanced
corporate customers, checks and state-
ments can be delivered in a variety of
ways: on CD -ROM or magnetic media,
via LAN or WAN, or over the Internet.
Flexible ••• Reliable
Choice of Features
The 7731 can be quickly and easily
configured or upgraded to address
the varied processing requirements
of the low- volume front or back office
environments. Choose from the features
listed below to customize the 7731 to
meet your front or back office needs.
For example, add a magnetic card
reader and ink jet endorser to stream-
line teller station processing;
or, add an automatic document feeder
and extra pockets to optimize your
back office item processing.
Document Feeding
As a teller station unit, the 7731
is configured with a single document
entry extension that guides individual,
hand -fed items into the processor.
••• Affordable Imaging
The 7731 system also offers two
document feeders that can process
a variety of items individually or in
batches. The Power Hand Drop, added
to ensure the best possible perfomance
and throughput, positions and feeds
individual documents for correct,
consistent feeding.The Automatic
Document Feeder, with all of the same
benefits plus approximately 750 docu-
ment capacity, allows the operator to
perform other important tasks while
the system is running.
Reading
The 7731 can optically read over nine
standard MICR and OCR code line
fonts in any zone of a document. This
flexibility allows the 7731 to process a
variety of documents and transactions,
and eliminate both specialized
hardware and software processes.
For the front office teller station, an
optional magnetic card reader, which
is located on top of the 7731, allows
easy operator access and eliminates
the need for a "space- consuming"
stand alone card reader. It also
reduces operator keying and provides
added security.
Imaging
Front image capture is standard on
the 7731 and rear image capture is
available as an optional feature. In a
single pass, the 7731 provides a high
quality image at 200 dpi in black and
white and /or 100 dpi resolution in
16 levels of gray. A red -light camera,
for improved reading of documents
with red outlines, or a color- balanced-
light camera, for improved reading of
documents with red ink, may be added.
Encoding
Using quiet thermal transfer
technology, the 7731 provides the
best -in -class encoding functionality
that can encode one of four standard
MICR and OCR fonts in one pass at
30 dpm. Additional fonts can be down-
loaded from the host application to
encode a variety of document types.
Ink Jet Endorsing and Printing
To simplify the printing process for the
front office, the 7731 offers optional
programmable ink jet endorsers that
print text and graphics at 100 dpi
anywhere on the document. Tellers
can endorse items and print forms,
such as receipts, deposit tickets, and
even certified checks. Print fonts are
programmable and each endorsement
can be altered from document to
document as your needs dictate. The
standard model offers you the choice
of front or rear endorsing —and
you can upgrade later to both front
and rear.
Dot Matrix Endorsing
When configured with optional
multi - pocket modules for back office
processing, the 7731 provides dot
matrix endorsement technology as
part of the sorting operation. The
programmable endorser can print
up to 40 characters on a single line,
in a fixed position, on the rear of the
document. This lower cost technology
offers the benefit of increased
throughput. Front and rear endorse-
ment stamps are also available.
Sorting
For a teller station unit, the 7731 is
configured with a single document exit
extension. For higher volume needs,
it can be expanded to include dual
pockets that hold approximately 100
documents each.
For the back office environment,
the 7731 can be expanded to include
multi - pocket modules. These modules,
available in 3, 6, or 12 pocket
configurations, provide built -in
endorser technology and "pocket- full"
sensor detection functionality. With
an individual pocket capacity of
approximately 250 documents and
the option to add more pockets, the
sorting function has been designed
to maximize operator efficiency.
Why NCR?
As competition in the financial services
industry intensifies, it is increasingly
important to attract and retain profit-
able customers. At the same time,
improving the overall efficiency and
productivity of your operation is equally
important. To achieve these two critical
objectives, you need a partner who
knows the banking industry and can
provide a comprehensive array of item
processing solutions — including imaging.
With over 75 years of experience,
NCR has grown to become the world's
foremost provider of image- based,
item processing solutions. With over
400 image item processing sites in
operation worldwide, our systems have
imaged more than 5.3 billion items to
date ... and counting.
The 7731 makes affordable imaging
technology available to the low- volume
' rl;' —•� EEAi�REs
Flexible Configurations
`- Reliable Technology
Y
V1 Affordable Imaging
environment. However, as the point
of capture for valuable second source
information, the 7731 is also an
integral component in NCR's
high - volume processing solution —
Image Mark'" POD. NCR, through
its entire line -up of top quality image
item processing solutions, is your best
choice. The right products and services,
at the right price, when and where you
need them.
From a teller station unit to a complete
image - enabled proof and encode system for
back office processing —the 7731 can be field
upgraded quickly and cost effectively to meet
the changing demands of your operation.
Completely designed and built by NCR, the
7731 provides high - quality imaging and best -
in-class encoding technology.
Not only will you have the image to use to
provide revenue generating services to your
customers, but you can minimize the travel of
paper, reduce the chance of error, and enhance
overall operational efficiency.
- SPECIFICATIONS
Transport Speed
• Up to 30 dpm read, encode and
front Image with 6' documents
Document Feeder
• Single document entry extension
• Power Hand Drop
- positive drive that positions and
feeds documents
- provides a reject slot (pocket) to
return documents to the operator
(mandatory with auto feeder)
• Automatic Document Feeder
- input hopper capacity of approximately
750 documents
Reader
• Optically reads M ICR and OCR code
line characters
• Reads nine different fonts: MICR E13B or
CMC7, OCR A/B numeric and alphanumeric,
plus OCR B Special (JNP), Farrington 7B and
[BRO (OCR B plus E13B)
Magnetic Card Reader
• Reads all 3 tracks of the magnetic stripe
according to ANS X4.16 and ISO 3554
Image Camera
• Scans images in black and white at 200 dpi
and/or gray scale (16 shades) at 100 dpi
• Compresses black and white images using
CCITT group 4 and with NCR or TIFF
headers
• Optional red -light camera or color- balanced-
light camera
Encoder
• Prints data in any of four OCR and M[CR
fonts including:
- M[CR E13B or CMC7
- OCR A Numeric, OCR B Numeric and
OCR B Special (JNP)
Dot Matrix Endorser
• Rear programmable
- 40 characters, single line in a fixed position
• Optional front and rear stamp
Please visit our websile at www.ncr.com
Ink Jet Endorser /Printer
• Choice of front or rear programmable
- 100 dpi anywhere on the document
• Optional upgrade to both front and rear
• Prints receipts, deposit tickets, and
certified checks
Sorter
• Single document exit extension
• Dual Pocket Module
- each pocket holds approximately
100 documents
• Multi- Pocket Module
- available in three configurations:
3, 6, or 12 pocket modules
- performs both endorsing and
pocketing functions
- each pocket holds approximately
250 documents
7731 Controller
(minimum)
• Pentium 166 MHz
•1.44 MB Flex Drive
•32 MB EDO Memory
•1.6 GB [DE Hard Drive
• 24X IDE CD -ROM
• Keyboard, mouse and 15• monitor
Communications
• ST Bus SCSI -2 interface
7731 Required Software
• 7731 Wise[P NT -based Platform Software
Additional Software
• NCR's Enhanced Item Processing Software
for NT which includes: Proof and Encode, Sort
and Image Services.
• Third party applications can operate in the NT,
DOS, OS /2 Windows environment.
Acceptable Document Dimensions
The 7731 Document Track can accommodate
documents within the following specifications:
• Height 64 mm - 114 mm
• Length 102 mm - 254 mm
• Thickness 0.076 mm - 0.330 mm
When configured with an autofeeder and one of
the multi - pocket modules, the 7731's document
length tolerance will change.
Electrical Power Requirements
Nominal Voltage
(RMS)
Voltage Range
(RMS)
Frequency
(Hertz)
120V
9OV -136V
50/60
220V/23OV/24OV
198V -257V
50/60
Console Dimensions
Width
(mm)
Height
(mm)
Depth
(mm)
Weight
(kg)
7731 Base
356
216
254
9
Optional Features:
1
Power Hand Drop
_
248
165
172
1.9
Autofeed Hopper
292
216
356
11.9
6 Pocket Module
1 388
190
1029
37.3
It is the policy of NCR Corporation to improve products as new technology, software, components, and firmware become available. NCR Corporation, therefore, reserves the right
to change specifications without prior notice. All features, functions and operations described herein may not be marketed by NCR in all parts of the world. Consult your NCR
representative or NCR office for the latest information.
The product described in this publication is a licensed product of NCR Corporation. Other brand and product names appearing in this publication are the trademarks or registered
trademarks of their respective holders.
Copyright ® 1999 by NCR Corporation
Dayton, Ohio, USA
An Rights Reserved
SP -4074 0999 Printed in Canada
City of Newport Beach
BUDGET AMENDMENT
2003 -04
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
X Increase Expenditure Appropriations
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
from additional estimated revenues
X from unappropriated fund balance
EXPLANATION:
NO. BA, 008
AMOUNT: $a5,000.00
Increase in Budgetary Fund Balance
AND X Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
This budget amendment is requested to provide for the following:
To increase expenditure appropriations for purchase of remittance processing equipment.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund
500
530
230
010
Account
Description
3605
Water Fund Balance
3605
Wastewater Fund Balance
3605
Tidelands Fund Balance
3605
General Fund Balance
REVENUE ESTIMATES (3601)
Fund /Division Account
EXPENDITURE APPROPRIATIONS (3603)
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Division Number
Account Number
Signed:
Signed:
Signed:
Administrative
7501
C0620741
7531
C0620741
7231
C0620741
Description
Description
Distribution and Piping
Remittance Processor
Sewer Main Replacement
Remittance Processor
Tidelands Fund - Capital
Remittance Processor
7017 Automation and Communication
C0620741 Remittance Processor
Services Director
City Manager
City Council Approval: City Clerk
Amount
Debit Credit
$28,973.84
$4,527.16
$3,169.02 '
$8,329.98 '
Automatic
$28,973.84
$4,527.16
$3,169.02
$8,329.98
Date
Date
Date