City Council Report 915 I Street, 1 st Floor Sacramento, CA
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1 City Council Report 915 I Street, 1 st Floor Sacramento, CA File ID: Published for 10-Day Review 05/25/2017 Review Item 01 Title: (Agreement/Contract for Review) Agreement: Utility Bill Print, Insert, Mail and Electronic Presentment and Payment Services Location: Citywide Recommendation: Accept and publish for review a Motion: 1) authorizing the City Manager or the City Manager s designee to sign a Professional Services Agreement with KUBRA America West Inc. to provide Utility Billing and Payment services, for an initial one year term, with up to four one-year options, for an amount not to exceed $5,257,400 for the maximum potential fiveyear term, and 2) approving the one-year renewals, provided that sufficient funds are available in the budget adopted for the applicable fiscal year; and continue to June 6, 2017 for approval. Contact: Susan Goodison, Business Services Manager, (916) ; Chuong (Ryan) Pham, Program Manager, (916) ; Adam Roitman, Program Analyst, (916) ; Department of Utilities Presenter: None. Attachments: 1-Description/Analysis 2-KUBRA Professional Services Agreement James Sanchez, City Attorney Shirley Concolino, City Clerk John Colville, City Treasurer Howard Chan, City Manager Page 1 of 65
2 File ID: Review Item 01 Description/Analysis Issue Detail: Staff recommends Council award a professional service agreement to KUBRA America West Inc. to provide Utility Bill Print and Payment services. The Department has an ongoing need for printing and mailing of utility bills and letters, payment by phone utilizing interactive voice recognition system, online via a vendor hosted website or with Utilities Customer Service, and electronic bill presentment. In addition, services include various payment options for customers including automatic recurring payments using an electronic check or credit card using the vendor hosted website or one-time payments using an electronic check or credit card over the phone or online using the vendor hosted website. Policy Considerations: This recommendation is in accordance with the Mayor and City Council mission to ensure a local government that is accountable, fiscally responsible, accessible, transparent, efficient, and responsive. Economic Impacts: None. Environmental Considerations: Ongoing administrative activities, such as the proposed agreement for billing and payment services, do not constitute a project under the California Environmental Quality Act (CEQA), and are exempt from CEQA review (CEQA Guidelines Section 15378(b)(2)). Sustainability: Not Applicable. Commission/Committee Action: Not Applicable. Rationale for Recommendation: On June 30, 2017, the existing agreement to provide utility bill print, insert, mail and electronic bill presentment and payment services will expire. The recommendation from staff follows a competitive RFP process. An evaluation panel consisting of members from the Business and Integrated Planning Division of the Utilities Department, Information Technology Department and Consolidated Utility Billing and Services of Sacramento County reviewed two proposals submitted. The evaluation panel selected the proposal submitted by KUBRA America West Inc. as the top ranked proposal. KUBRA America West Inc. is the leader in providing outsourced billing, customer self-service modules and electronic and mobile bill presentment and payment solutions in the industry, with over 550 clients across North America. Following the evaluation process, City staff negotiated terms and conditions and a detailed scope of work, as set forth in the proposed agreement. Also, if the above services are interrupted, the Department may not be able to mail utility bills and letters or collect payment of various utility services fees. City of Sacramento Published for 10-Day Review 05/25/2017 powered by Legistar Page 2 of 65
3 File ID: Review Item 01 Financial Considerations: The cost of the service for the initial year, Fiscal Year 2017/18, is $1,042,299, and the total amount is not to exceed $5,257,400 for the maximum potential fiveyear term. The agreement includes print and mail services, electronic commerce and mobile solutions, postage, tax, and professional services for implementation of changes as needed. Year Amount Base period (through June 30, 2018) $ 1,042,299 Year 2 (7/1/2018 6/30/2019) $ 1,046,665 Year 3 (7/1/2019 6/30/2020) $ 1,051,251 Year 4 (7/1/2020 6/30/2021) $ 1,056,065 Year 5 (7/1/2021 6/30/2022) $ 1,061,120 Total Not to Exceed Amount: $ 5,257,400 Sufficient funding will be available in the Department of Utilities FY 2017/18 Operating Budget to fund the Utility Bill print and Payment services upon the City Council approving the proposed budget in June Renewal of the term for successive fiscal years after June 30, 2018 will be subject to funding availability in the adopted budget of the applicable fiscal year. Local Business Enterprise (LBE): The LBE requirement was waived prior to the release of the request for proposal, as there are no known local vendors for this service. City of Sacramento Published for 10-Day Review 05/25/2017 powered by Legistar Page 3 of 65
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