REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 1 to the Agreement with Business Recovery Services, Inc. dba Bank Up Corporation for Remittance Processing and Utility Payment Lockbox Services to extend the term and increase compensation
Report
BACKGROUND
The City receives approximately 10,000 utility remittance payments per month. In January 2017, the City Council authorized the City Manager to execute an agreement with Business Recovery Services, Inc. dba Bank Up Corporation (Bank Up) to provide a comprehensive lockbox and remittance processing solution to receive, process and electronically deposit utility remittance payments received by the City. Bank Up was originally selected through a competitive process.
The current agreement will expire on June 30, 2019. Staff recommends amending the existing agreement by extending the term to June 30, 2021 and increase the total not-to-exceed compensation.
DISCUSSION
Bank Up's comprehensive lockbox and remittance processing services include providing a lockbox where customers can mail their utility payments, a regular courier service between the City and the processing center for payments received at the City and scanning, processing and electronically depositing the payments with daily transmission of deposit reports to the City.
In the past year, customers have been increasingly opting to receive and pay their utility bills online through the City's e-Bill Program. The year over year change in annual transaction processing is approximately 7,000 resulting in a 5% decrease. With this steady shift to online payments, staff needs to assess the service requirements for processing payments received via mail. Therefore, staff recommends extending the current agreement for two additional years through June 30, 2021 to allow time for staff to assess the service requirements and at the same time maintain operational continuity of the remittance processing and lockbox services. Staff will conduct a competitive so...
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