CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year #1 to Contract 24-062, Electronic Bill Payment, to Fidelity Information Services, LLC for an amount not to exceed $250,000
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director
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). The services provided under the contract allow utility customers to view and pay utility bills online.
Since the initial agreement, the City has maintained a partnership with FIS for e-billing services. Most recently, the City Council awarded a contract extension with FIS in January 2024 to extend the relationship through December 31, 2024, with one option year to extend.
The City has waived the procurement code to continue using FIS for e-billing services since 2017. This service is 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 relationship to avoid any disruption in service to our customers.
DISCUSSION:
FIS has continued to provide secure internet e-billing services to the City's utility customers. Based on the vendor's performance, the Finance Department recommends awarding the option year.
FIS has agreed to maintain the rates and terms provided under the current agreement. The recommended award amount is based on average monthly charges over 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 award is one year from January 1, 2025 to December 31, 2025, with no option years remaining.
FISCAL IMPACT:
CIP #: N/A
E-billing services are expensed to the Other Professional Services accounts listed below. The Finance Department proposed includes $268,800 in the 2025 budget for e-billing services. Although the 2025 budget is still being developed, the suggested amount is sufficient to fund this award. Staff will ensure that the proper amounts remain in the 2025 budget for this award.
|
Account Number |
Fund Description |
Total Budget Amount |
|
15171300-531309 |
Electric Utility Fund |
TBD |
|
15171500-531309 |
Water Utility Fund |
TBD |