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Item # 25
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 4, 2024
TOPIC: Enhanced Electronic Billing and Payment Services
AGENDA TITLE
Second Amendment to Agreement with Invoice Cloud, Inc. for Enhanced Electronic
Billing and Payment Presentation Services, Debit/Credit Card and Electronic Check
Merchant Payment Processing Services, and Payment Kiosk Services (General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute a second amendment to the agreement with
Invoice Cloud, Inc. to extend the contract's current term through December 31, 2025,
with optional extensions, in an amount not to exceed $1,427,800, including a
contingency of $129,800 (Agreement No. A-2024-XXX).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The City provides a variety of payment options for numerous programs, including, but
not limited to, the following: Municipal Utility Services (MUS), Business License Tax,
Paramedic Subscription, and Proactive Residential Enforcement Program (PREP).
Santa Ana residents and customers are able to locate, view bills, and submit payments
online by using debit/credit cards and electronic checks via Invoice Cloud's payer portal.
In addition, Invoice Cloud also provides the City with walk-up kiosk payment services
through their partnership with Kiosk Information Systems, Inc. This kiosk is presently
located just outside the main lobby of City Hall.
To permit electronic payments for multiple programs, Invoice Cloud was integrated with
several heavily -used data systems, including enQuesta, the City's customer information
and utility billing system, and iNovah, the City's point -of -sale and revenue management
software. Each data system requires unique connections and pathways to communicate
seamlessly with Invoice Cloud. As a result, the cost to replace Invoice Cloud with an
equivalent Electronic Bill and Payment Presentment (EBPP), online payment, and kiosk
software service provider at this time would incur substantial expenses to the City.
Therefore, to avoid disruption of current services, staff recommends amending the
current agreement with Invoice Cloud to align the contractual terms with those of the
integrated data systems.
Enhanced Electronic Billing and Payment Services
June 4, 2024
Page 2
Staff will execute competitive searches in the future as the contracts for data systems
expire. If the City Council amends the agreement for Invoice Cloud to align with those
contracts, staff will also execute a parallel competitive search for similar EBPP, online
payment, and kiosk software services in the future. Furthermore, additional software
options may become available depending on the City's future ERP system. The
procurement process for the ERP system is still underway.
FISCAL IMPACT
Funds for this second amendment to agreement are included in the draft FY 2024-25
budget for City Council consideration (FMSA Treasury and Customer Service Contract
Services Account No. 01110130-62300). Funding for future years will be included in
proposed budgets for City Council consideration as follows:
Accounting
Accounting Unit
FY
Unit -
Fund
- Accounting
Max
Account
Description
No. Description
Amount
No.
01110130-
General
Contract
2024-25
Services
$200,000
62300
Fund
Professional
01110130-
General
Contract
2025-26
Services
$200,000
62300
Fund
Professional
01110130-
General
Contract
2026-27
Services
$200,000
62300
Fund
Professional
01110130-
General
Contract
2027-28
Services
$200,000
62300
Fund
Professional
01110130-
General
Contract
2028-29
Services
$200,000
62300
Fund
Professional
01110130-
General
Contract
2029-30
Services
$100,000
62300
Fund
Professional
01110130-
General
Contract
2024-29*
Services
$198,000
62300
Fund
Professional
01110130-
General
Contract
2024-29**
Services
$129,800
62300
Fund
Professional
*Kiosk lease for 66-month period
Total:
**Overall General Contingency
$1,427,800
Enhanced Electronic Billing and Payment Services
June 4, 2024
Page 3
EXHIBIT(S)
1. Invoice Cloud, Inc. Second Amendment to Agreement
Submitted By: Kathryn Downs, FMSA Executive Director
Approved By: Alvaro Nunez, Acting City Manager
EXHIBIT 1
SECOND AMENDMENT TO MERCHANT PROCESSING RENEWAL AGREEMENT
THIS SECOND AMENDMENT TO MERCHANT PROCESSING RENEWAL
AGREEMENT ("Amendment") is made and entered into on this 21 st day of May, 2024 by and
between Invoice Cloud, Inc., a Delaware corporation ("Consultant") and the City of Santa Ana, a
charter city and municipal corporation organized and existing under the Constitution and laws of
the State of California ("City"). City and Consultant shall herein collectively be referred to as
"the Parties".
RECITALS
A. The Parties entered into a Merchant Processing Renewal Agreement (#A-2018-247) on
October 16, 2018 ("Agreement") for Consultant to provide services for payment processing
and electronic and enhanced bill presentment and payment and Consultant agreed to
perform such services for City with respect to Business License Tax accounts, with
provisos for the extension of Consultant's service to Municipal Utility Services and Dog
License accounts.
B. On February 18, 2020, the Parties entered into a First Amendment to the Agreement (#A-
2020-028) to amend the scope of services, increase the overall compensation amount, and
extend the term of the Agreement until June 30, 2024. The Agreement, as amended, is
current and in effect.
C. Invoice Cloud services provides the City with simple and secure electronic bill presentment
and online payment services that encourage electronic payments for the residents of Santa
Ana via Invoice Cloud's payer portal and walk-up kiosk payment services through their
partnership with Kiosk Information Systems, Inc., located in the main lobby of City Hall.
D. Invoice Cloud services are now integrated with several heavily -used third -party data
systems, including enQuesta, the City's customer information and utility billing system
and iNovah, the City's point -of -sale and revenue management software. These
applications, along with OpenEdge, InfoSend, and Selectron all utilize Invoice Cloud
Services for the City. The agreements, for each third -party vendor detailed in this
paragraph, run through December 31, 2025 with options to extend each third -party
agreement through December 31, 2029.
E. Transition to a new system, readily available to integrate with the current third -party
systems, along with disruption of services to Santa Ana residents would incur substantial
expenses to the City. The parties agree that a second amendment of the Agreement serves
the best interests of the residents and customers of the City of Santa Ana.
F. The Parties now desire to amend the Agreement to extend the term of the Agreement
consistent with the terms provided for the third -party agreements, described above, and
increase the total compensation to cover the extended term for services to the City.
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NOW THEREFORE, in consideration of the mutual and respective promises, and subject
to the terms and conditions hereinafter set forth, the Parties agree as follows:
1. Section 2, COMPENSATION, is amended to increase the total amount to be expended
for the remainder of the term of the Agreement to $2,627,800. The compensation amount of the
Agreement shall be increased by $1,427,800. This amount includes a base amount of $1,100,000
for yearly services through the remainder of the term; monthly rental costs for the walk-up kiosk;
and $129,800 for merchant processing contingency charges as detailed in the annual amounts and
costs defined below:
Contract Term Period
Annual Fiscal Year Period
July 1, 2024 through June 30, 2025
July 1, 2025 through June 30, 2026
July 1, 2026 through June 30, 2027
July 1, 2027 through June 30, 2028
July 1, 2028 through June 30, 2029
July 1, 2029 through December 31, 2029
Kiosk 66-Month Rental
Merchant Processing Contingency
Contract Term Period
Annual Compensation Amount
$200,000
$200,000
$200,000
$200,000
$200,000
$100,000
$198,000
$129,800
Total: $1,427,800
"Merchant Processing Contingency" shall be deemed to be that certain amount available to
cover annual merchant processing charges that may occur above the Annual Compensation
Amount during any portion of the Term of this Agreement due to variability in the number of
actual annual merchant processing transactions versus anticipated annual transactions.
3. Section 4, TERM, is amended to extend the term of the Agreement through December 31,
2025, with the option for the parties to extend the Agreement for an additional four (4) one-year
renewals through December 31, 2029, by a writing executed by the City Manager and the City
Attorney.
4. Except as hereinabove modified, the terms and conditions of said Amendment, as amended,
remain unchanged and in full force and effect.
[signature page to follow]
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SIGNATURE PAGE TO SECOND AMENDMENT TO
MERCHANT PROCESSING RENEWAL AGREEMENT
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the
Agreement the date and year first above written.
ATTEST:
Jennifer L. Hall
City Clerk
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
CITY OF SANTA ANA:
Alvaro Nunez
Acting City Manager
INVOICE CLOUD, INC.:
Andrea Garcia -Miller By: Kevin O'Brien
Assistant City Attorney Title: CEO
RECOMMENDED FOR APPROVAL:
Kathryn Downs, CPA
Executive Director & City Treasurer
Finance and Management Services Agency
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