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ITEM 15 |
City Council Memorandum Management Services Memo No. N/A
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Date: |
May 13, 2021 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, Acting City Manager Dawn Lang, Management Services Director |
From: |
Kristi Smith, Accounting Manager |
Subject: |
Agreement No. MS3-920-3131, Amendment No.2, for Electronic Payment Portal Services |
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Proposed Motion: |
Move City Council approve Agreement No. MS3-920-3131, Amendment No. 2, with Invoice Cloud, Inc., for electronic payment portal services, at the agreed upon transaction fees, for the period of June 1, 2021, through May 31, 2022. |
Background/Discussion: |
Invoice Cloud, Inc. has been providing a secure Citywide electronic payment web portal solution since 2013. This is a hosted, third-party payment solution that is compliant with Payment Card Industry (PCI) and Data Security Standards (DSS), thereby reducing the City's need to invest in and maintain the related infrastructure. The solution allows customers to pay with debit cards and credit cards through their bank account, Apple Pay, or Google Pay by securely storing account information at the third-party site to accommodate recurring payments. Customers will soon be able to pay utilizing PayPal and Venmo as well. Customers can also make one-time payments. Over the years, the City has been able to expand the ability for a customer to pay electronically using Invoice Cloud's secure products for customers paying in Utility Services, Airport, Development Services, Fire, Police, Tax & License, and Accounting's miscellaneous receivables. Community Services and Courts use a different solution based on requirements of their systems. The Invoice Cloud, Inc., solutions (Cloud Stores, Cloud Pay, and Cloud Bill) are fully integrated with the City's Oracle financial system to post payments to its appropriate revenue accounts, includes an administrative platform for reconciliation, simplifies refund and dispute resolution, and is available to customers 24/7/365. Invoice Cloud's current fees include a fixed monthly fee allowing for unlimited users and paperless billing and transaction fees which vary under two models: City absorbs fee or customer pays (service charge). |
Evaluation: |
On May 23, 2013, City Council approved an agreement with Invoice Cloud, Inc., for the implementation and ongoing support of a hosted, integrated, electronic payment solution, for a seven-year period. The solution continues to be enhanced with new features, the most recent being the ability for customers to pay via Google or Apple Pay, and soon PayPal and Venmo as well. Additionally, Information Technology (IT) will be critical in planning toward and completing a full evaluation of electronic payment services on the market since it is a large technical undertaking to shift to another solution. Given the number of projects currently in process and resource availability in the City to take on this project, the Contractor has agreed to extend for one additional year at the same terms, conditions and agreed upon transaction fees. Staff recommends extension of this Agreement for the term of June 1, 2021, through May 31, 2022. |
Financial Implications: |
Under the current transaction fee model, the City has the ability to charge a service fee for certain services (2.95% of transaction total with a $1.00 minimum) or absorb the fees for certain services. Service fees are charged to customers paying Development Services permits (including impact fees) and Airport deposits, leases and permits. Invoice Cloud's fees are absorbed by the City for Utilities (Water, Wastewater, Reclaimed Water and Solid Waste), Tax & License, Fire, Police, and Accounting insurance and donation transactions. Most of the transaction fees absorbed by the City are net against revenues. The monthly Invoice Cloud administration fee is $2,500, allowing for unlimited users and paperless billing, and the monthly transaction fees incurred by the City across all funds is under $24,100, with about 98% of this total deriving from Utility transactions. |
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Fiscal Impact |
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