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Renewal Agreement With Invoice Cloud, Inc. for Merchant Processing, Enhanced Electronic
<br />Billing and Payment Presentation, and Associated Kiosk Payment Acceptance Services
<br />October 16, 2018
<br />Page 2
<br />processing of the City's pay by phone system for MUS accounts. The following table demonstrates
<br />the volume of transactions and revenue being enabled with Invoice Cloud's services:
<br />During the most recently completed Fiscal Year 2017-2018, Invoice Cloud has facilitated
<br />approximately 100,000 online transactions, totaling approximately $27.3 million in revenue and
<br />conversely assisting with reduction of labor costs while improving staff efficiency and customer
<br />service.
<br />In November 2015, the City entered into a short term contract (N-2015-174) with Invoice Cloud,
<br />Inc. ("Invoice Cloud") to provide online credit card and ACH payment support for Business License
<br />Tax accounts, replacing CardFlex, Inc. the original merchant processor who lost capability to
<br />perform ACH transfers. On March 2016 the City Council authorized an interim amended agreement
<br />(N-2015-174-01) to extend the term of the Invoice Cloud contract for six months. In addition, the
<br />amendment allowed for further analysis of Invoice Cloud's ability to integrate with other payment
<br />acceptance service providers and to evaluate the comparable performance factors. These factors
<br />were also included in a June 2015 Request for Proposals (RFP) conducted by the City of Anaheim
<br />which reflected requirements that are locally unique to the cities of Santa Ana and Anaheim. On
<br />that basis, in accordance with SAMC Section 2-807 (d), staff recommended that the City recognize
<br />the results of the Anaheim RFP process and enter into a two-year contract extension (A-2016-134)
<br />with Invoice Cloud effective July 1, 2016 through June 30, 2018. Subsequently, based on Invoice
<br />Cloud's successful integration and performance with other City payment acceptance processors
<br />over the past two years, staff recommends that the City enter into a renewal agreement with Invoice
<br />Cloud for continuing merchant processing services for a term of four (4) years.
<br />In addition to providing enhanced EBPP and full merchant processing services, Invoice Cloud is
<br />also a fully authorized provider of walk-up kiosk payment solutions per their partnership agreement
<br />with Kiosk Information Systems, Inc. ("Kiosk"). The City's current walk-up payment kiosk received
<br />replacement parts in 2017. However, it is in need of multiple hardware and software upgrades and
<br />ongoing future program hosting and maintenance. Invoice Cloud is committed as part of the City's
<br />authorization- for a 4 -year Renewal Agreement for merchant processing services to extend a
<br />contingent option, solely exercisable by the City, for a fully updated payment kiosk hardware and
<br />software solution. This optional solution would utilize Kiosk certified hardware, software, hosting
<br />services and program maintenance and would be exercised on a three-year lease period beginning
<br />July 1, 2019 and continuing through June 30, 2022 for a net amount not to exceed $100,000. The
<br />solution would initially cover all walk-up MUS payments (87% of current transactions) and would
<br />then be extended to Dog License and Business License Tax payments.
<br />STRATEGIC PLAN ALIGNMENT
<br />25C-2
<br />Business Tax MUS
<br />Parks & Recreation
<br />Invoice
<br />Transactions
<br />Sales Transactions
<br />Sales
<br />Transactions
<br />Sales
<br />Cloud
<br />7,769
<br />$2,999,902 93,325
<br />$24,339,713
<br />735
<br />$51,187
<br />FY 17-18
<br />During the most recently completed Fiscal Year 2017-2018, Invoice Cloud has facilitated
<br />approximately 100,000 online transactions, totaling approximately $27.3 million in revenue and
<br />conversely assisting with reduction of labor costs while improving staff efficiency and customer
<br />service.
<br />In November 2015, the City entered into a short term contract (N-2015-174) with Invoice Cloud,
<br />Inc. ("Invoice Cloud") to provide online credit card and ACH payment support for Business License
<br />Tax accounts, replacing CardFlex, Inc. the original merchant processor who lost capability to
<br />perform ACH transfers. On March 2016 the City Council authorized an interim amended agreement
<br />(N-2015-174-01) to extend the term of the Invoice Cloud contract for six months. In addition, the
<br />amendment allowed for further analysis of Invoice Cloud's ability to integrate with other payment
<br />acceptance service providers and to evaluate the comparable performance factors. These factors
<br />were also included in a June 2015 Request for Proposals (RFP) conducted by the City of Anaheim
<br />which reflected requirements that are locally unique to the cities of Santa Ana and Anaheim. On
<br />that basis, in accordance with SAMC Section 2-807 (d), staff recommended that the City recognize
<br />the results of the Anaheim RFP process and enter into a two-year contract extension (A-2016-134)
<br />with Invoice Cloud effective July 1, 2016 through June 30, 2018. Subsequently, based on Invoice
<br />Cloud's successful integration and performance with other City payment acceptance processors
<br />over the past two years, staff recommends that the City enter into a renewal agreement with Invoice
<br />Cloud for continuing merchant processing services for a term of four (4) years.
<br />In addition to providing enhanced EBPP and full merchant processing services, Invoice Cloud is
<br />also a fully authorized provider of walk-up kiosk payment solutions per their partnership agreement
<br />with Kiosk Information Systems, Inc. ("Kiosk"). The City's current walk-up payment kiosk received
<br />replacement parts in 2017. However, it is in need of multiple hardware and software upgrades and
<br />ongoing future program hosting and maintenance. Invoice Cloud is committed as part of the City's
<br />authorization- for a 4 -year Renewal Agreement for merchant processing services to extend a
<br />contingent option, solely exercisable by the City, for a fully updated payment kiosk hardware and
<br />software solution. This optional solution would utilize Kiosk certified hardware, software, hosting
<br />services and program maintenance and would be exercised on a three-year lease period beginning
<br />July 1, 2019 and continuing through June 30, 2022 for a net amount not to exceed $100,000. The
<br />solution would initially cover all walk-up MUS payments (87% of current transactions) and would
<br />then be extended to Dog License and Business License Tax payments.
<br />STRATEGIC PLAN ALIGNMENT
<br />25C-2
<br />
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