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HomeMy WebLinkAbout25U - ELECTRONIC BILL PAYMENTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 7, 2008 TITLE: AGREEMENT AMENDMENT FOR ELECTRONIC BILL PAYMENT SERVICES CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1s1 Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER 1. Amend the agreement with InfoSend, Inc. for municipal utility bill printing and mailing, and electronic bill presentment and payment services from $100,000 to a total not to exceed $150,000. 2. Amend agreement with TransFirst, LLC for the processing of credit card payments from $42,000 to a total not to exceed $60,000. DISCUSSION On February 20, 2007, the City Council approved an agreement with InfoSend, Inc. for bill printing, mailing and electronic bill presentment services. InfoSend was determined to be the most cost-effective method for printing of all Municipal Utility bills as well as processing e- payments. We are in the second year of a three-year agreement with provision for a two year renewal. After a year of running the program through InfoSend, Inc., staff has actual data to determine costs associated with this contract. It is apparent that usage estimates were conservative. An increase in the number of on-line payments, delinquent bills, final bills, the handling of inserts in addition to postage costs effective May 12, 2008 necessitates an amendment to the contract between the City and InfoSend, Inc. TransFirst, LLC handles the e-payment portion of the transaction when customers choose this method of payment. On February 20, 2007, the City Council also amended the agreement with TransFirst, LLC for the processing of credit card payments. 25U-1 FISCAL IMPACT Total contract cost of the agreement is estimated to be $210,000. Funds will be budgeted in the Treasury Division (fund 011-175-6291). APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services Agency/~ 25U-2 SECOND AMENDMENT TO AGREEMENT THIS SECOND AMENDMENT TO AGREEMENT is entered into on July 7 2008, by and between InfoSend, Inc., a California corporation ("Consultant") and the City of Santa Ana, a charter city and municipal corporation of the State of California ("City"). RECITALS: A. The parties entered into Agreement # A-2007-050, dated February 20, 2007, (hereinafter "said Agreement") by which Consultant has provided municipal bill printing and mailing services and electronic bill presentment and payment services. B. In accordance with the terms and conditions of said Agreement, the parties wish to amend said Agreement to reflect the initial term of three years, with an option to extend for an additional period. WHEREFORE, in consideration of the covenants contained in said Agreement, and subject to all the terms and conditions of said Agreement, except those amended in this Second Amendment to Consultant Agreement, the parties agree as follows: 1. Section 2.a., COMPENSATION, shall be amended to increase compensation by $150,000 to pay for services during the 2008-2009 fiscal year. Said section shall read, in full, as follows: "a. City agrees to pay, and Consultant agrees to accept as total payment for its services, the rates and charges identified in Exhibit A. The total sum to be expended under this Agreement shall not exceed $150,000, annually, during the term of this Agreement." 2. Except as hereinabove amended, all terms and conditions of said Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to Consultant Agreement on the date and year first written above. ATTEST: PATRICIA E. HEALY Clerk of the Council APPROVED AS TO FORM: JOSEPH W.FLETCHER City Attorney By: Laura Sheedy Assistant City Attorney CITY OF SANTA ANA DAVID N. REAM City Manager INFOSEND, INC. MAHMOOD REZAI President & CEO 25U-3 SECOND AMENDMENT TO AGREEMENT THIS SECOND AMENDMENT TO AGREEMENT (this "Amendment") is entered into on July 7, 2008, by and between TransFirst Health and Government Services, LLC ("Consultant") and the City of Santa Ana, a charter city and municipal corporation of the State of California ("City"). RECITALS: A. The City and Consultant entered into that certain Consultant Agreement # N-2004- 024 dated March 1, 2004 (hereinafter the "Agreement") pursuant to which Consultant has provided certain credit card payment processing services for City utility bill customers. B. In accordance with the terms and conditions of the Agreement, the parties wish to extend the term of said Agreement in order to provide continuous uninterrupted services. NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged and confessed, the parties agree as follows: 1. Section l.a., COMPENSATION, shall be amended to read as follows: "The total sum to be expended under this Agreement for the period commencing March 1, 2008 and ending February 28, 2009, shall not exceed $60,000.00." 2. Section 2, TERM, shall be deleted in its entirety and replaced with the following: "This Agreement shall commence on March 1, 2004 and terminate on February 28, 2009, unless terminated earlier in accordance with Section 10, below. The term of said Agreement may be extended upon a writing executed by the Executive Director of Finance and Management Services and the City Attorney." 3. Except as hereinabove modified, all terms and conditions of said Agreement shall remain in full force and effect. [signature page follows) 25U-4 IN WITNESS WHEREOF, the parties hereto have executed this Amendment to Agreement on the date and year first written above. ATTEST: CITY OF SANTA ANA PATRICIA E. HEALY DAVID N. REAM Clerk of the Council City Manager APPROVED AS TO FORM: JOSEPH W.FLETCHER City Attorney By: Laura Sheedy Assistant City Attorney TRANSFIRST HEALTH AND GOVERNMENT SERVICES By: (Name) Title: 25U-5 25U-6