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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: JANUARY 24, 2023
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: APPROVAL OF THE FIRST AMENDMENT TO THE
AGREEMENT WITH KUBRA AMERICA WEST, INC. FOR
ELECTRONIC BILL PAYMENT SERVICES
ATTACHMENT (Y/N): YES ITEM # 07
RECOMMENDATION:
That the City Council, by Motion:
1) Approve the First Amendment to the Agreement between the City of Anaheim (City) and KUBRA America West, Inc. (KUBRA) for electronic payment processing services for Utilities customers to: (a) extend the Agreement term from three years with two optional one year extensions to ten years with automatic one year extensions thereafter until terminated; (b) increase the annual transaction services amount from $110,000 to $150,000; (c) authorize $100,000 annually for as-needed software and services, and allow unused amounts to carry over to the following year; and (d) maintain an annual authorization of $40,000 for Change Orders; and
2) Authorize and direct the Public Utilities General Manager or designees, on behalf of the City, to execute and deliver the First Amendment, order forms, work orders, change orders, and any related or associated documents for software licenses, subscriptions, maintenance, and related services for electronic bill payment and customer service solutions, and take such actions as are necessary or advisable to implement and administer the Agreement as amended.
DISCUSSION:
At their meeting on December 21, 2022, the Public Utilities Board (PUB) recommended that the City Council approve the First Amendment to the Agreement with KUBRA America West, Inc.
The City of Anaheim Public Utilities Department (APU) bills customers for electric, water, sewer, solid waste, and paramedic subscription services provided by the City.
APU provides multiple options for customers to pay their utility bill including through the City website, over the phone with interactive voice response (IVR), and in person at Anaheim West Tower. Under the City’s Agreement, KUBRA processes over 577,000 payments annually from approximately 50% of customers through credit card and electronic fund transfers.
Approval of the First Amendment to the Agreement with KUBRA America West, Inc. for Electronic Bill Payment Services January 24, 2023
The current Agreement with KUBRA was approved by City Council in July 2018 following a competitive solicitation. The Agreement expires in July 2023 and staff evaluated whether or not to conduct a new solicitation.
Staff recommends extending the term of the Agreement to provide continuity of service, provide needed software upgrades, provide contractual flexibility to include future enhancements, and save implementation costs. The KUBRA payment service is highly integrated with APU’s customer information, customer web portal, and cashiering systems. Changing providers would result in considerable costs and effort to integrate, re-program, and test interfaces, which would delay the implementation of the customer web portal upgrade project that was approved by City Council and is currently under way. It could also cause delays in payment and be an inconvenience to customers as it would require them to re-register their payment accounts.
KUBRA’s platform is cloud-based, provides backup redundancy, and is compliant with industry security standards to reduce risks associated with fraud and unauthorized data access. KUBRA provides services to over 200 utilities including Riverside Public Utilities, City of Sacramento, City of Minneapolis, and Duke Energy.
The First Amendment to the Agreement provides access to the latest software upgrades to take advantage of performance and security improvements. The new term is for ten years with automatic one-year extensions thereafter until terminated. The transaction fees increase from an amount not-to-exceed $110,000 to $150,000 per year to allow growth as more users pay online. The First Amendment also authorizes $100,000 per year for as-needed services, software licenses, and subscriptions. As-needed purchases may include improvements to payment and customer service solutions and services, implementation of new regulatory compliance requirements, expanding payment methods and channels, and other services to improve customer convenience and experience. With the amendment, the new annual total agreement amount will be in an amount not-to-exceed $250,000, plus any unused as-needed funding rolled over from a prior year, and maintaining a provision for change orders in an amount not-to-exceed $40,000 per year. The First Amendment includes transaction amount fee increases in an amount not-to-exceed 2.5% per year, which remains unchanged from the original Agreement.
IMPACT ON BUDGET:
Sufficient funds are budgeted in APU’s Fiscal Year 2022/23 restricted Utility Fund budget, and future years are subject to City Council’s approval of budget appropriations.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachments:
1. First Amendment to the Agreement with KUBRA America West, Inc.
2. Original Agreement