5.7.
CC Regular Session
- Meeting Date:
- 05/23/2023
- By:
- Diana Lund, Finance
Information
Title
Authorize Renewal of Master Agreement With OPUS 21 (Utility Billing Provider) For Five Years
Purpose/Background:
The City currently contracts with OPUS 21 for utility billing services. OPUS 21 prints and distributes approximately 11,000 utility bills quarterly and handles all utility billing inquiries. For their services, OPUS 21 is paid approximately $63,000 annually.
The original contract (Master Services Agreement) with OPUS 21 was for the period of February 7, 2008 through February 6, 2013. On January 8, 2013, the City Council authorized a three-year extension (February 7, 20013- February 6, 2016) with OPUS 21 via an Addendum to the Master Services Agreement. This Addendum included two (2) one-year renewal options at the City's discretion. The first year renewal option was for the period of February 7, 2016 - February 6, 2017 and the extension was authorized by City Council on January 26, 2016 and the second year renewal option for the period of February 7, 2017 - February 6, 2018 was authorized by City Council on February 14, 2017. Another five-year term was authorized by the City Council on December 12, 2017 and the contract term ended on February 6, 2023. Thus, the City's current contract with OPUS 21 has expired and needs to be renewed.
It is being requested to authorize the renewal of the Master Agreement with OPUS 21 for another five years for the period of February 7, 2023 - January 31, 2028. Per the City's purchasing policy, Requests for Proposals (RFP's) are normally proposed to solicit proposals for professional services. As OPUS 21 is the only known firm that offers full utility billing services (most companies offer bill print only) an RFP would not be necessary. The only other option would be for the City to perform the utility billing function in house, which staff has researched and found that it would not be cost effective. For example, utility billing software alone would be approximately $70,000.
The City's purchasing policy also states that the City Council, at its discretion, formally extend a current standard services contract upon the recommendation of City staff. Staff has been satisfied with OPUS 21 and recommends the contract extension.
All terms of the Master Agreement remain intact. The renewal rates presented remain constant for 5 years.
Staff met with with the owner of OPUS 21 on May 23, 2023 and they stated that they will not backbill the amended rates for the months of February-April 2023.
The original contract (Master Services Agreement) with OPUS 21 was for the period of February 7, 2008 through February 6, 2013. On January 8, 2013, the City Council authorized a three-year extension (February 7, 20013- February 6, 2016) with OPUS 21 via an Addendum to the Master Services Agreement. This Addendum included two (2) one-year renewal options at the City's discretion. The first year renewal option was for the period of February 7, 2016 - February 6, 2017 and the extension was authorized by City Council on January 26, 2016 and the second year renewal option for the period of February 7, 2017 - February 6, 2018 was authorized by City Council on February 14, 2017. Another five-year term was authorized by the City Council on December 12, 2017 and the contract term ended on February 6, 2023. Thus, the City's current contract with OPUS 21 has expired and needs to be renewed.
It is being requested to authorize the renewal of the Master Agreement with OPUS 21 for another five years for the period of February 7, 2023 - January 31, 2028. Per the City's purchasing policy, Requests for Proposals (RFP's) are normally proposed to solicit proposals for professional services. As OPUS 21 is the only known firm that offers full utility billing services (most companies offer bill print only) an RFP would not be necessary. The only other option would be for the City to perform the utility billing function in house, which staff has researched and found that it would not be cost effective. For example, utility billing software alone would be approximately $70,000.
The City's purchasing policy also states that the City Council, at its discretion, formally extend a current standard services contract upon the recommendation of City staff. Staff has been satisfied with OPUS 21 and recommends the contract extension.
All terms of the Master Agreement remain intact. The renewal rates presented remain constant for 5 years.
Staff met with with the owner of OPUS 21 on May 23, 2023 and they stated that they will not backbill the amended rates for the months of February-April 2023.
Notification:
The City Attorney had reviewed the Original Master Agreement, Addendums & Renewal Options as they have occurred. The current contract renewal follows the same format as the renewal options.
Observations/Alternatives:
Other than bringing the function of utility billing in-house, staff has not found another vendor that provides utility billing service outside of OPUS 21. Our neighboring cities of Andover and St. Francis also contract with OPUS 21 for utility billing services.
Funding Source:
All utility billing functions are paid through the respective enterprise funds of water, sewer, street lighting, recycling and storm drainage.
Recommendation:
Staff recommends the renewal of the contract with OPUS 21 for a period of five years.
Action:
Motion to authorize the renewal of the Master Service Agreement with OPUS 21 for the Period of February 2023- January 31, 2028.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Brian Hagen | Brian Hagen | 05/18/2023 08:31 AM |
- Form Started By:
- Diana Lund
- Started On:
- 05/15/2023 01:15 PM
- Final Approval Date:
- 05/18/2023