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HomeMy WebLinkAbout75B -PUBLIC HRG ELECTRONIC BILL PAYMENTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 20, 2007 TITLE: AGREEMENT FOR ELECTRONIC BILL PAYMENT SERVICES CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on ts' Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to execute an agreement with InfoSend, Inc. for municipal utility bill printing and mailing, and electronic bill presentment and payment services for a three-year period with provision for a two year renewal, in an annual amount not to exceed $100,000. 2. Amend agreement with TransFirst, LLC (formerly Payment Resources International) for the processing of credit card payment for a total not to exceed $42,000 annually. 3. Adopt a resolution approving the electronic funds transfer fee and return payment fee. 4. Adopt a resolution adding one full time Customer Service Representative in Finance and Management Services Agency. DISCUSSION On February 8, 2006, the City Council requested that staff evaluate various alternatives for the implementation of a program that provides for the payment of services, fees, charges or taxes due, through the Internet with an initial focus on Municipal Utility Billing. Upon evaluation, staff determined that contracting with third party vendors for bill printing as well as for processing e-payments is the most cost-effective method to implement the recommended program. As such the Treasury Division released a notice inviting bids on December 5, 2006, for Utility Bill Printing, Mailing, and Electronic Bill Presentment Services. 75B-1 Agreement for Electronic Bill Payment Services February 20, 2007 Page 2 A summary of the bid invitations and bid results are as follows: 13 Request for Proposals mailed 1 Request for Proposal mailed to Santa Ana vendor 2 Proposals received 0 Proposals received from a Santa Ana vendor On December 29, 2006, two proposals were received. Each of the proposals were evaluated in five areas covering knowledge of and experience providing requested services, ability to maintain a constructive relations, ability to meet requirements, and price. FIRM LOCATION PRICE PER ANNUM RATING InfoSend Fullerton, CA $100,000 100 Divdat Las Vegas, NV $133,000 88 The proposal from InfoSend received the highest rating and is responsive to the specifications. Staff recommends an agreement term of three years with an optional two-year extension, exercisable by the City. In addition, TransFirst, LLC, the current provider of credit card processing for the City has agreed to provide the additional e-payment service of Municipal Utility Bills. The cost to the City associated with e-payment processing will be as follows: Transaction Fee Individual Corporate Card Card MasterCard $.29 Plus 1.52 of bill 3.25 of bill amount amount Visa $.29 Plus 1.52$ of bill 3.25 of bill amount amount As an example, the coat on a $50 transaction would be: Master Card or Visa (individual card) $1.05 - (corporate card) $1.92. In addition, establishment of the program is predicated on the addition of one full time Customer Service Representative as well as adopting resolutions establishing the various fees for credit card payments including rejected transactions. The Customer Service Representative position will provide assistance in administering the program through proper recordkeeping and reconciliation of processed transactions. 75B-2 Agreement for Electronic Bill Payment Services February 20, 2007 Page 3 FISCAL IMPACT Total contract cost of the program is estimated to be $142,000. Funding for the full-time position for the balance of FY 2006-2007 is estimated at $18,000. Fees collected from the program will be used to offset the cost of implementation. Funds will be budgeted in the Treasury Division (fund 011-175-6111 and fund 011-175-6251). 75B-3 r~xecucive Lireccor Finance & Management Services Agency Iss:1 /30/07 RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ESTABLISHING A PER USE ELECTRONIC FUNDS TRANSFER FEE, AND RENAMING THE RETURNED CHECK FEE A RETURN PAYMENT FEE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby, finds, determines and declares as follows: A. The City Council wishes to institute a program through which City residents may receive and pay their utility bills on-line. Said program shall hereinafter be referred to as "Electronic Bill Pay". B. The City will incur costs for providing Electronic Bill Pay, including bill printing and additional staff requirements. The costs of the program are set forth in "Electronic Bill Pay" Resource Sheet, on file in the Finance Agency, and incorporated herein by reference. C. A transaction fee will be imposed for each credit card or electronic funds transfer processed. D. The City currently imposes a "Return Check Charge" of $25 for each check issued to the City and not honored by the bank on which it is drawn. The Council finds that this charge should be imposed for other forms of payment not honored by the institution on which funds are drawn. E. The Council finds, determines and declares that this transaction fee does not exceed the City's reasonable cost to provide the Electronic Bill Pay service, process the specified payments or administer the Electronic Bill Pay program. F. A public hearing was held on February 20, 2007. Based upon the testimony, reports and other evidence submitted on this matter, this city council makes the above-specified findings. G. The City Council incorporates herein, as though fully set forth, the Request for Council Action accompanying this resolution and all background information and studies presented to the City Council at the February 20, 2007 meeting. Section 2: The City Council hereby increases and establishes the following fees in relation to Electronic Bill Pay: Resolution 2007-XXX Page 1 of 3 75B-4 A. A transaction fee of $1.25 is imposed on each electronic funds transfer processed through the City. B. A transaction fee of $3.15 is imposed on each credit card transaction processed through the City. C. A Return Payment Fee of $25.00 shall be imposed for any check, credit card payment or electronic funds transfer which has been processed by the City and is not completed for any reason. E. The City shall commence collecting these fees, charges and surcharges on March 1, 2007 or as soon thereafter as is practicable in the opinion of the Executive Director of Finance. Section 3: Without further action of the City Council the above referenced fees shall be incorporated into the City's Miscellaneous Fee Schedule. Section 4: If any charge, fee, service charge, section, subsection, sentence, clause, phrase or word of this Resolution is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have passed and adopted this Resolution, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid. Section 5: This Resolution shall take effect upon approval of an Ordinance adding Section 2-3 to the Santa Ana Municipal Code and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. Should said Ordinance not be adopted, or should said Ordinance not become effective, this Resolution shall be deemed null and void and of no further effect. ADOPTED this _ day of February, 2007 Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Laura Sheedy Resolution 2007-XXX Page 2 of 3 75B-5 Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2007 to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana Resolution 2007-XXX Page 3 of 3 75B-6 RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND THE CURRENT ANNUAL BUDGET TO ADD ONE FULL TIME CUSTOMER SERVICE REPRESENTATIVE POSITION IN FINANCE AND MANAGEMENT SERVICES. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby finds, determines and declares as follows: A. On June 19, 2006, the City Council passed and adopted Ordinance No. NS-2713, establishing the City's Annual Budget and authorizing position allocations for Fiscal Year 2006-2007. The Ordinance also sets forth the requirement that alterations in the allocation of authorized positions be reviewed and approved by the City Council. B. With the adoption of the On-line Bill Pay Ordinance, Finance and Management Services has determined a need to meet the implementation and monitoring responsibilities associated with the Ordinance. C. The Executive Director of Finance and Management Services proposes to add one full time Customer Service Representative position to the Finance and Management Services budget to provide follow-up, record-keeping and reconciling responsibilities associated with the On-line Bill Paying Program. D. It is now desired that the Annual Budget for Fiscal Year 2006-2007, as amended, be further amended in order to effect this change. Section 2: That the Annual Budget for Fiscal Year 2006-2007, as amended, be further amended by adding one Customer Service Representative position as shown below: Classification Title Customer Service Representative 6-Step Salary Rate Ranae (SRR) 564 Monthly Salary Minimum -Maximum $3,269 - $4,173 Section 3: That except as amended by this Resolution, all other provisions of the Annual Budget for Fiscal Year 2006-2007, as amended, shall remain in full force and effect. 75B-7 Section 4: That this Resolution shall be operative from and after its date of adoption. ADOPTED this _ day of February, 2007. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher City Attorney By: Joseph Straka Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2007- to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana 75B-8