CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Option Year One to Contract 21-365, Electronic Bill Payment, to Fidelity Information Services, LLC for an amount not to exceed $199,399
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In 2004, City Council approved the award of RFP 04-073 to Metavante Corporation to provide internet bill presentment and payment (e-billing) services for City utility bills. In 2009, Metavante Corporation became a wholly owned subsidiary of Fidelity National Information Services, Inc. (FIS).
Since the initial agreement, the City has maintained a partnership with FIS for e-billing services. Most recently, the City Council, on November 2, 2021, awarded a contract extension with FIS extending the relationship through December 31, 2022.
The services provided under the contract allow utility customers to view and pay utility bills online. Over the years, various modifications and improvements have been made to improve system functionality and improve the customer experience.
The City has waived the procurement code for e-billing services, as well as bill print and mail services, in recent years. These two services are closely coordinated with the City’s current utility billing system. Utility billing is one of the City’s most visible customer service functions and a critical component in the collection of the City’s largest revenue source. As the City works toward identifying and implementing its next-generation utility billing platform, staff finds it to be in the City’s best interest to maintain its current vendor relationships for these two services to avoid any disruption in service to our customers.
DISCUSSION:
Throughout the current contract term, FIS has provided adequate, secure internet e-billing services to the City’s utility customers. Based on the vendor’s performance, the Finance Department recommends extending the contract for the 2023 option year. FIS has agreed to maintain the rates and terms provided under the current agreement.
The recommended award is based on average monthly charges for the past 12 months, plus an additional 10% to account for year-over-year growth in online bill payment usage.
This award also authorizes staff to maintain a coterminous Merchant Services Agreement with Chase Paymentech, a credit card processing servicer. Chase Paymentech works through FIS to process and deposit credit card transactions into the City’s revenue accounts. Fees are based on the volume of transactions.
The term of this option year is January 1, 2023 to December 31, 2023, with no option years remaining.
FISCAL IMPACT:
CIP: N/A
E-billing services are expensed to the Other Professional Services accounts listed below. A total of $200,000 is budgeted for e-billing in 2023. The recommended award is within budget.
|
Account Number |
Fund Description |
Total Budget Amount |
|
15171300-531309 |
Electric Utility Fund |
$100,000 |
|
15171500-531309 |
Water Utilities Fund |
$100,000 |