HomeMy WebLinkAbout75B -PUBLIC HRG ELECTRONIC BILL PAYMENTREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
FEBRUARY 20, 2007
TITLE:
AGREEMENT FOR ELECTRONIC
BILL PAYMENT SERVICES
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
^ As Recommended
^ As Amended
^ Ordinance on ts' Reading
^ Ordinance on 2nd Reading
^ Implementing Resolution
^ Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Direct the City Attorney to prepare and authorize the City Manager
and the Clerk of the Council to execute an agreement with InfoSend, Inc.
for municipal utility bill printing and mailing, and electronic bill
presentment and payment services for a three-year period with provision
for a two year renewal, in an annual amount not to exceed $100,000.
2. Amend agreement with TransFirst, LLC (formerly Payment Resources
International) for the processing of credit card payment for a total not
to exceed $42,000 annually.
3. Adopt a resolution approving the electronic funds transfer fee and
return payment fee.
4. Adopt a resolution adding one full time Customer Service
Representative in Finance and Management Services Agency.
DISCUSSION
On February 8, 2006, the City Council requested that staff evaluate
various alternatives for the implementation of a program that provides
for the payment of services, fees, charges or taxes due, through the
Internet with an initial focus on Municipal Utility Billing.
Upon evaluation, staff determined that contracting with third party
vendors for bill printing as well as for processing e-payments is the
most cost-effective method to implement the recommended program. As such
the Treasury Division released a notice inviting bids on December 5,
2006, for Utility Bill Printing, Mailing, and Electronic Bill
Presentment Services.
75B-1
Agreement for Electronic Bill Payment Services
February 20, 2007
Page 2
A summary of the bid invitations and bid results are as follows:
13 Request for Proposals mailed
1 Request for Proposal mailed to Santa Ana vendor
2 Proposals received
0 Proposals received from a Santa Ana vendor
On December 29, 2006, two proposals were received. Each of the
proposals were evaluated in five areas covering knowledge of and
experience providing requested services, ability to maintain a
constructive relations, ability to meet requirements, and price.
FIRM LOCATION PRICE PER ANNUM RATING
InfoSend Fullerton, CA $100,000 100
Divdat Las Vegas, NV $133,000 88
The proposal from InfoSend received the highest rating and is responsive
to the specifications. Staff recommends an agreement term of three
years with an optional two-year extension, exercisable by the City. In
addition, TransFirst, LLC, the current provider of credit card
processing for the City has agreed to provide the additional e-payment
service of Municipal Utility Bills. The cost to the City associated
with e-payment processing will be as follows:
Transaction Fee Individual Corporate
Card Card
MasterCard $.29 Plus 1.52 of bill 3.25 of bill
amount amount
Visa $.29 Plus 1.52$ of bill 3.25 of bill
amount amount
As an example, the coat on a $50 transaction would be:
Master Card or Visa (individual card) $1.05 - (corporate card) $1.92.
In addition, establishment of the program is predicated on the addition
of one full time Customer Service Representative as well as adopting
resolutions establishing the various fees for credit card payments
including rejected transactions. The Customer Service Representative
position will provide assistance in administering the program through
proper recordkeeping and reconciliation of processed transactions.
75B-2
Agreement for Electronic Bill Payment Services
February 20, 2007
Page 3
FISCAL IMPACT
Total contract cost of the program is estimated to be $142,000. Funding
for the full-time position for the balance of FY 2006-2007 is estimated
at $18,000. Fees collected from the program will be used to offset the
cost of implementation. Funds will be budgeted in the Treasury Division
(fund 011-175-6111 and fund 011-175-6251).
75B-3
r~xecucive Lireccor
Finance & Management Services Agency
Iss:1 /30/07
RESOLUTION
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA ESTABLISHING A PER USE ELECTRONIC
FUNDS TRANSFER FEE, AND RENAMING THE
RETURNED CHECK FEE A RETURN PAYMENT FEE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1: The City Council hereby, finds, determines and declares as follows:
A. The City Council wishes to institute a program through which City
residents may receive and pay their utility bills on-line. Said program shall hereinafter
be referred to as "Electronic Bill Pay".
B. The City will incur costs for providing Electronic Bill Pay, including bill
printing and additional staff requirements. The costs of the program are set forth in
"Electronic Bill Pay" Resource Sheet, on file in the Finance Agency, and incorporated
herein by reference.
C. A transaction fee will be imposed for each credit card or electronic funds
transfer processed.
D. The City currently imposes a "Return Check Charge" of $25 for each
check issued to the City and not honored by the bank on which it is drawn. The
Council finds that this charge should be imposed for other forms of payment not
honored by the institution on which funds are drawn.
E. The Council finds, determines and declares that this transaction fee does
not exceed the City's reasonable cost to provide the Electronic Bill Pay service, process
the specified payments or administer the Electronic Bill Pay program.
F. A public hearing was held on February 20, 2007. Based upon the
testimony, reports and other evidence submitted on this matter, this city council makes
the above-specified findings.
G. The City Council incorporates herein, as though fully set forth, the
Request for Council Action accompanying this resolution and all background information
and studies presented to the City Council at the February 20, 2007 meeting.
Section 2: The City Council hereby increases and establishes the following
fees in relation to Electronic Bill Pay:
Resolution 2007-XXX
Page 1 of 3
75B-4
A. A transaction fee of $1.25 is imposed on each electronic funds transfer
processed through the City.
B. A transaction fee of $3.15 is imposed on each credit card transaction
processed through the City.
C. A Return Payment Fee of $25.00 shall be imposed for any check, credit
card payment or electronic funds transfer which has been processed by
the City and is not completed for any reason.
E. The City shall commence collecting these fees, charges and surcharges
on March 1, 2007 or as soon thereafter as is practicable in the opinion of
the Executive Director of Finance.
Section 3: Without further action of the City Council the above referenced fees
shall be incorporated into the City's Miscellaneous Fee Schedule.
Section 4: If any charge, fee, service charge, section, subsection, sentence,
clause, phrase or word of this Resolution is for any reason held to be invalid by a court
of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this Resolution. The City Council hereby declares that it would have passed
and adopted this Resolution, and each and all provisions hereof, irrespective of the fact
that one or more provisions may be declared invalid.
Section 5: This Resolution shall take effect upon approval of an Ordinance
adding Section 2-3 to the Santa Ana Municipal Code and the Clerk of the Council shall
attest to and certify the vote adopting this Resolution. Should said Ordinance not be
adopted, or should said Ordinance not become effective, this Resolution shall be
deemed null and void and of no further effect.
ADOPTED this _ day of February, 2007
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
By:
Laura Sheedy
Resolution 2007-XXX
Page 2 of 3
75B-5
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the
attached Resolution No. 2007 to be the original resolution adopted by the City
Council of the City of Santa Ana on
Date:
Clerk of the Council
City of Santa Ana
Resolution 2007-XXX
Page 3 of 3
75B-6
RESOLUTION
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA TO AMEND THE CURRENT ANNUAL BUDGET
TO ADD ONE FULL TIME CUSTOMER SERVICE
REPRESENTATIVE POSITION IN FINANCE AND
MANAGEMENT SERVICES.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1: The City Council hereby finds, determines and declares as follows:
A. On June 19, 2006, the City Council passed and adopted Ordinance No.
NS-2713, establishing the City's Annual Budget and authorizing position
allocations for Fiscal Year 2006-2007. The Ordinance also sets forth the
requirement that alterations in the allocation of authorized positions be
reviewed and approved by the City Council.
B. With the adoption of the On-line Bill Pay Ordinance, Finance and
Management Services has determined a need to meet the implementation
and monitoring responsibilities associated with the Ordinance.
C. The Executive Director of Finance and Management Services proposes to
add one full time Customer Service Representative position to the Finance
and Management Services budget to provide follow-up, record-keeping
and reconciling responsibilities associated with the On-line Bill Paying
Program.
D. It is now desired that the Annual Budget for Fiscal Year 2006-2007, as
amended, be further amended in order to effect this change.
Section 2: That the Annual Budget for Fiscal Year 2006-2007, as amended,
be further amended by adding one Customer Service Representative position as shown
below:
Classification Title
Customer Service
Representative
6-Step Salary
Rate Ranae (SRR)
564
Monthly Salary
Minimum -Maximum
$3,269 - $4,173
Section 3: That except as amended by this Resolution, all other provisions of
the Annual Budget for Fiscal Year 2006-2007, as amended, shall remain in full force
and effect.
75B-7
Section 4: That this Resolution shall be operative from and after its date of
adoption.
ADOPTED this _ day of February, 2007.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Joseph W. Fletcher
City Attorney
By:
Joseph Straka
Assistant City Attorney
AYES:
NOES:
ABSTAIN:
NOT PRESENT:
Councilmembers
Councilmembers
Councilmembers
Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2007- to be the original resolution adopted by the City Council of the
City of Santa Ana on
Date:
Clerk of the Council
City of Santa Ana
75B-8