C
ity Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00328 June 14, 2022
T
itle: Agreement: Utility Bill Print, Insert, Mail & Electronic Presentment & Payment Services [Published for 10-Day Review 06/03/2022]
Locat
ion: Citywide
R
ecommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to: execute an Agreement with KUBRA America West, Inc., dba KUBRA (KUBRA), for Utility Bill Print, Insert, Mail & Electronic Presentment & Payment Services for a one-year term with up to four one-year renewal options for an amount not-to-exceed $5,500,000 for the maximum five-year term.
C
ontact: Stacy Larkin, Administrative Analyst, (916) 808-6356, [email protected]; Sage Millar, Program Specialist, (916) 808-5977, [email protected]; Chuong (Ryan) Pham, Business Services Manager, (916) 808-8995, [email protected]; William Busath, Director of Utilities (916) 808-1434, [email protected]; Department of Utilities
P
resenter: None
A
ttachments:
1-Description/Analysis
2-Agreement
Description/Analysis
Issue Detail: The Department of Utilities (DOU) has an ongoing need for printing and mailing of utility bills and letters, payment by phone utilizing interactive voice recognition system, payment online via a vendor hosted website or with Utilities Customer Service, and electronic bill presentment. Services will also include various payment options for customers including one-time and automatic recurring payments.
The current agreement for these services expires June 30, 2022. Staff is recommending approval of a new agreement with KUBRA to ensure that the above services are not interrupted and DOU is able to seamlessly mail utility bills and letters or collect payment of various utility services fees.
Policy Considerations: City Council approval is required for contracts of $250,000 or more.
The Sacramento City Code Section 4.04.020 and the City Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to City Council action. This item was published for 10-day review on June 3, 2022, in compliance with the City Code.
Economic Impacts: None.
Environmental Considerations: The Community Development Department, Environmental Planning Services has reviewed the proposed agreement and has determined that it is not considered a “project” under the California Environmental Quality Act (CEQA) Guidelines. The activity is a continuing administrative and maintenance activity [CEQA Guidelines section 15378 (b)] and is not subject to CEQA (CEQA Guidelines Section 15060(c)(3)].
Sustainability: Not Applicable.
Commission/Committee Action: Not Applicable.
Rationale for Recommendation: Request for Proposals (RFP) P22141631011 was issued on October 1, 2021. The City received responsive submittals from four firms. The proposals were evaluated by a selection committee comprised of staff from the Department of Utilities.
Based on the evaluations, the selection committee determined KUBRA to be the highest ranked, best qualified responsive firm.
KUBRA 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. They have been the City’s provider for the previous 5-year period and staff is very satisfied with their performance. Additionally, the pricing submitted is in line with what the City is currently paying for the same services.
Financial Considerations: The proposed Agreement, effective July 1, 2022, has a maximum 5-year term for an amount not-to-exceed $5,500,000. Sufficient funding is available in the proposed Fiscal Year (FY) 2022/23 DOU Operating Budget to fund the first year of the Agreement. Funding for future fiscal years shall be subject to funding availability in the budget adopted for the applicable fiscal year.
There are no general funds allocated or planned for this project.
Local Business Enterprise (LBE): KUBRA, is not an LBE. The minimum LBE participation requirement was waived by the Director of Utilities based on a determination that waiver is in the City’s best interest due to the lack of qualified local vendor availability.