HomeMy WebLinkAbout20D - AA AND AMEND AGMT FOR INFOSENDREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
DECEMBER 15, 2020
TITLE:
APPROVE AN APPROPRIATION
ADJUSTMENT AND APPROVE A FIRST
AMENDMENT TO THE AGREEMENT WITH
INFOSEND, INC. FOR A TOTAL 2020-21
FISCAL YEAR AMOUNT NOT TO EXCEED
$750,000
(GENERAL FUND AND NON -GENERAL
FUND)
/s/ Kristine Ridge
CITY MANAGER
CLERK OF COUNCIL USE ONLY:
❑ As Recommended
❑ As Amended
❑ Ordinance on 1� Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
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FILE NUMBER
RECOMMENDED ACTION
1. Approve an appropriation adjustment recognizing $310,500 of prior year fund balance in the
Water Quality, Prior Year Carry Forward revenue account, and appropriate the same amount
in Water Quality, Contract Services Professional, to accommodate the added expenditures for
FY 2020-21.
2. Authorize the City Manager to execute a first amendment to the agreement with InfoSend, Inc.
("InfoSend") for printing, processing, and mailing, and electronic bill presentment services to
update the scope of services, a provision for a six (6) month extension period beginning January
1, 2021 through June 30, 2021, and increases in the total budgeted amounts of $200,000 for
FY 2020-21, by a net amount of $550,000, for a new total amount not to exceed $750,000,
subject to non -substantive changes approved by the City Manager and City Attorney.
DISCUSSION
The Treasury and Customer Service Division (Treasury) of the Finance and Management
Services Agency is responsible for the billing and payment processing for municipal utility services
(MUS) accounts, business license, Proactive Residential Enforcement Program (PREP), dog
license, and paramedic subscription services. Billing and payment services require data
processing, printing, mailing services, and e-business services (electronic billing and payment
presentation [EBPP] online and/or accepting and reporting payment transactions via the Web).
InfoSend's scope of bill print services include, but are not limited to, the following: printing,
processing, and mailing. InfoSend's printing, processing, and mailing services encompass the
following City operations: MUS, business license, PREP, and dog license, and include
miscellaneous mailings of associated billing statements, notices, advisories, form
20D-1
First Amended Agreement with InfoSend, Inc.
December 15, 2020
Page 2
correspondence, as well as City newsletters and a variety of other miscellaneous independent
communications or notices. InfoSend's EBPP services include an on-line bill payment portal for
dog license.
InfoSend has unique institutional knowledge of the City's data processing, bill printing, mailing, and
EBPP services. InfoSend is able to solely handle all requested data processing, print, mail
services, and associated e-business services. Their professional services include project
management for each print job from beginning to end, as well as providing a high level of quality
assurance through their quality control department by checking mail files at multiple stages
throughout the production process. InfoSend's information technology, document formatting,
electronic payment service, and document production currently integrates seamlessly into our
various existing Treasury billing structures, as it presently generates all electronic document files,
exchanges them with other integrated vendors, inserts mailing pieces, meters postage, and
prepares all mail items for delivery.
In addition, beginning in Fiscal Year 2019-20, the Finance and Management Services Agency
("FMSA" ), Public Works Agency ("PWA"), and Information Technology Department ("IT") undertook
development of a program for the implementation of Advanced Metering Infrastructure ("AMI") to
provide modern smart metering services for the City's water utility operation and for MUS
customers to which InfoSend's services are tied. In March of 2020, Treasury started a
comprehensive upgrade to the City's existing water, sewer, sanitation, and refuse customer
information service/utility billing system, enQuesta, in order to ensure the City is keeping up with
best practices as they relate to utility customer service, billing technology, and to ensure
compatibility with AMI systems.
The AMI program is dependent on expanded use of the City's upgraded MUS enQuesta system
with which InfoSend's services are integrated. InfoSend's services directly support and are bi-
laterally integrated with this comprehensive upgrade. The cost to implement an equivalent bill print
and e-business service provider is unknown, but would require new software and substantial
additional integration expenses to the City as InfoSend is fully integrated into all Treasury programs
that require bill print/e-business services.
In connection with the AMI program development, PWA has launched an Awareness & Education
Campaign as a sustained effort to educate individuals and boost public awareness about AMI
smart metering services for the City. Asa response to the COVID-19 pandemic, the City launched
the Santa Ana CARES program to provide much needed services to the City's residents and
business community. Simultaneously, FMSA coordinated a successful CARES Utility Grant
program aimed at City residents who are struggling with their utility bills due to COVID-19 impacts
affecting their household income. For these community outreach reasons and because InfoSend
is the City's printing and mailing service provider, budgeted amounts for the various agencies who
20D-2
First Amended Agreement with InfoSend, Inc.
December 15, 2020
Page 3
use InfoSend's printing and mailing services need to be increased to cover expanded service use.
Moreover, due to necessary spending by FMSA, PWA and the City Manager's Office ("CIVIC") in
printing and mailing services with InfoSend, the net approved $200,000 current funding cap (July
1, 2020 through December 31, 2020) has been overspent, underscoring the need for funding caps
to be increased for FY 2020-21 by a combined $550,000 amount on an annualized fiscal year
basis, for a total maximum fiscal year amount not to exceed $750,000.
Therefore, staff recommends increasing InfoSend's combined annual spending cap by $550,000,
from $200,000 (semi-annually) not to exceed $750,000 (annually), and correspondingly
recognizing participating agencies' (FMSA, PWA, and CIVIC) increased budgeted spending
amounts for FY 2020-21. Additionally, staff recommends extending InfoSend's agreement for an
additional 6 months beginning January 1, 2021 through June 30, 2021. By doing so, Treasury will
be allowed sufficient time before the final expiration date of InfoSend's extended contract to
harmonize this agreement with other critical payment processing as well as enQuesta/AMI-
integrated agreements. The enQuesta agreement runs through December 31, 2025 with optional
extensions through December 31, 2029.
Included among the other critical payment processing are the City's online Cloud -based payment
services and walk-up payment kiosk agreement services, together with walk-in cashiering services.
Based on the harmonization of all these payment processing services the City would achieve full
Payment Card Industry Data Security Standard (PCI-DSS) compliance, thereby transferring future
credit card fraud liability from the City to the payment card providers.
FISCAL IMPACT
Approval of the appropriation adjustment will recognize $310,500 of prior fund balance in the Public
Works Water Revenue, Prior Year Carry Forward revenue account (No. 06017002-50001) and
appropriate the same amount into the Water Quality, Contract Services — Professional expenditure
account (No. 06017644-62300) to fund the additional expenditures for FY 2020-21. The existing
budget is sufficient for all other contract allocations. The following accounts will fund the contract
allocations.
Accounting
Fiscal
Unit -
Fund
Accounting
Prior Contract
Revised
Year
Account
Description
Unit - Account
Allocation
Increase
Contract
No.
No. Description
Allocation
FMSA -
Contract
2020-
01110130-
Treasury &
Services
$125,000
$175,000
$300,000
21
62300
Customer
Professional
Service
20D-3
First Amended Agreement with InfoSend, Inc.
December 15, 2020
Page 4
2020-
06017644-
PWA - Water
Contract
21
62300
Quality
Services
$64,500
$310,500
$375,000
Professional
2020-
01105015-
CMO -
Contract
General Non-
Services
$10,500
$29,500
$40,000
21
62300
Departmental
Professional
2020-
17603010-
Operation
Education &
21
63001
Santa Ana
Outreach
$0.00
$35,000
$35,000
CARES
(Flyers)
Subtotal
Subtotal
TGrand
otal
$200,000
$550,000
$750,000
Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director— Finance and Management
Services Agency
Submitted By: Kathryn Downs, CPA, Executive Director — Finance and Management
Services Agency
Nabil Saba, Executive Director — Public Works Agency
Kristine Ridge, City Manager — City Manager's Office
Exhibit: 1. InfoSend, Inc. - First Amended Agreement
20D-4
EXHIBIT 1
FIRST AMENDMENT TO AGREEMENT WITH INFOSEND, INC.
TO PROVIDE BILL PRINTING, MAIL SERVICES, AND
PAYMENT PROCESSING SERVICES
THIS FIRST AMENDMENT TO AGREEMENT, dated as of this 15`h day of December
by and between InfoSend, Inc., a California corporation (hereinafter "Consultant"), and the City
of Santa Ana, a charter city and municipal corporation organized and existing under the
Constitution and laws of the State of California (hereinafter "City"), collectively "the Parties".
RECITALS:
A. The Parties entered into that certain Agreement #A-2019-153, dated September 3, 2019,
("said Agreement") by which Consultant, having special skill and knowledge in the field of Bill
Print - Processing, Printing and Mailing (PPM) services as well as Electronic Bill Presentment and
Payment (EBPP) services, agreed to perform such services for the City.
B. The Parties desire to amend the Scope of Services, Compensation, and Term clauses of
said Agreement.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject
to the terms and conditions hereinafter set forth, the Parties agree as follows:
The Parties hereto now desire to amend Sections 1, 2, and 3 of said Agreement to read as follows:
1. SCOPE OF SERVICES:
1. SCOPE OF SERVICES
Consultant shall provide paper bill processing, printing and mailing services along
with electronic bill presentment and payment services, and other related professional
services as detailed in the scopes of services attached hereto as Exhibits A and C and hereby
incorporated herein by reference.
a. Processing, Printing and Mailing (PPM) Services. The paper bill
processing, printing and mailing (PPM) process consists of processing data,
address validation and POSTNET bar coding, printing documents, mail
preparation, applying presorted postage and sending via the United States
Postal Service for the City's: (1) Municipal Utility Services bills; water
conservation program notices, water quality program notices, Municipal
Utility Services rate change advisories, awareness & education campaign
notices, advanced meter infmstructure notices and advisories, penalty
and/or collection notices, and other related miscellaneous notices, form
correspondence and advisories including paramedic subscription notices;
(2) Business License Tax bills, renewal statements, certificates and licenses,
penalty/and or collection notices, and other related miscellaneous notices,
form correspondence and advisories; (3) Dog License Bills, rabies
20D-5
reminders, certificates, penalty/and or collection notices, and other related
miscellaneous notices, form correspondence and advisories; (4) Proactive
Residential Enforcement Program (PREP) bills, renewal statements,
certificates, penalty/and or collection notices, and other related
miscellaneous notices, form correspondence and advisories; and (5)
assorted public notices, community advisories, outreach program letters,
associated form correspondence, as well as City newsletters and a variety
of other miscellaneous independent City agency communications and
program literature.
b. Basic Electronic Bill Presentment and Payment (EBPP) Services. Basic
Electronic Bill Presentment and Payment (EBPP) services consists of:
(i.) Maintaining an online customer payment portal and presenting Dog
License bills online and accepting payment transaction information
to facilitate ACH or credit card payment via Consultant's merchant
processing provider, EPX (EPX Acquisition Company, LLC, and
successor to Phoenix Payment Systems, Inc.).
City's right to bifurcate agreement and terminate PPMand Basic EBPP services for Dog License
billing. During the Term of this First Amended Agreement and any extension hereto, but
beginning not sooner than January 1, 2021, City may upon one hundred -twenty days (120) days
prior written notice by the City's Executive Director of Finance and Management Services,
terminate PPM and Basic EBPP services for Dog License billing, plus associated merchant
processing services currently provided by Consultant's contracted merchant processor, Electronic
Payment Exchange, Inc. (hereinafter "EPX"). Whereupon City shall have the right to continue
Consultant's PPM services for Dog License Billing for the term of this Agreement or City may
continue either Consultant's PPM and/or Basic EBPP services for Dog License Billing on a month -
to -month basis and terminate the PPM and Basic EBPP portion of the Agreement in connection
with Dog License Billing, with no termination penalty or fees applied by Consultant by providing
fifteen (15) days written notice of its intent to terminate said PPM and Basic EBPP portion of the
Agreement.
c. Electronic Bill Data Conversion and Graphical Document File Presentment for
Third -Party Enhanced EBPP Services Provider. Electronic Bill Data
Conversion and Graphical File Presentment services consists of:
(i) Receiving graphical bill data file information from an integrated
City billing application ("enQuesta") maintained by a designated
billing application provider ("Systems and Software, Inc.") and
converting said graphical bill data file information into a graphical
document file and presenting said file to a designated Third -Party
Enhanced EBPP Services Provider ("Invoice Cloud, Inc.").
2. COMPENSATION:
2. COMPENSATION
rIO .,
a. City agrees to pay, and Consultant agrees to accept as total payment for its services,
the rates and charges identified in Exhibit B and Exhibit C which are hereby
incorporated herein by this reference. The total sum to be expended under this First
Amendment for the time period of January 1, 2021 through June 30, 2021 shall not
exceed $550,000.00. Compensation for fiscal year 2020-2021 shall not exceed
$750,000.
b. Payment by City shall be made within forty-five (45) days following receipt of proper
invoice evidencing work performed, subject to City accounting procedures. Payment
need not be made for work which fails to meet the standards of performance set forth
in the Recitals which may reasonably be expected by City.
c. City shall be responsible for payment related to United States Postal Service postage
including rate increases. City will be invoiced by Consultant for postage including the
amount charged for overweight and foreign mail.
3. TERM:
3. TERM
This First Amendment shall cover the six-month period of January 1, 2021 through June
30, 2021.
Except as hereinabove modified, the terms and conditions of said Agreement remain
unchanged and in full force and effect.
(Signatures on following page)
20D-7
IN WITNESS WHEREOF, the Parties hereto have executed this First Amendment to Agreement
the date and year first above written.
ATTEST:
DAISY GOMEZ
Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney to
Lisa Storck
Assistant City Attorney
RECOMMENDED FOR APPROVAL:
k,thry,� o 3o1146Pm
KATHRYN DOWNS
Executive Director of Finance and
Management Services Agency
CITY OF SANTA ANA
KRISTINE RIDGE
City Manager
CONSULTANT
R XMa—k-- IL
Executive Vice President
r1O
City of Santa Ana -First Amend ment_Executed_
12.03.2020
Final Audit Report 2020-12-03
Created:
2020-12-03
By:
Kristin Andrade (kandrade@santa-ana.org)
Status:
Signed
Transaction ID:
CBJCHBCAABAAGQ4msv2JSZiNV9ybawWuTbPuK4RSszDD
"City of Santa Ana -First Amendment_Executed_12.03.2020" His
tory
Document created by Kristin Andrade (kandrade@santa-ana.org)
2020-12-03 - 7:43:34 PM GMT- IP address: 98.153.69.210
12y Document emailed to Kathryn Downs (kdowns@santa-ana.org) for signature
2020-12-03 - 7:44:05 PM GMT
Email viewed by Kathryn Downs (kdowns@santa-ana.org)
2020-12-03 - 7:46:06 PM GMT- IP address: 98.153.69.210
Fop Document e-signed by Kathryn Downs (kdowns@santa-ana.org)
Signature Date: 2020-12-03 - 7:46:20 PM GMT -Time Source: server- IP address: 98.153.69.210
(% Agreement completed.
2020-12-03 - 7:46:20 PM GMT
Q Adobe Sign 20D-9