REPORT TO COUNCIL
SUBJECT
Title
Approve the First Amendment to Service Agreement with InfoSend, Inc. for Utility Billing Notification Services
Report
REPORT IN BRIEF
Approval is requested to approve the First Amendment to an existing Service Agreement with InfoSend, Inc. of Anaheim for shut-off notification distribution increasing the not-to-exceed amount by $88,445 for a new total not-to-exceed amount of $338,445.
EXISTING POLICY
Pursuant to Chapter 2.08 of the Sunnyvale Municipal Code, City Council approval is required for the procurement of goods and/or services exceeding $100,000 in any one transaction.
ENVIRONMENTAL REVIEW
The action being consider does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environmental.
BACKGROUND AND DISCUSSION
The City awarded a contract to InfoSend, Inc. (InfoSend) in 2004 to provide utility billing support services that included the design, printing, inserting, and mailing of the City’s utility bills. The contract was subsequently amended to include hosting and maintenance of an electronic bill presentment and payment (EBPP) system. This system enabled utility customers to view and pay their utility bills online.
In 2015, an RFP (F15-05) for utility bill production and online payment services was issued. In 2017, Council awarded a five-year contract to InfoSend (RTC No. 17-0421) in a not-to-exceed amount of $250,000 for utility bill printing, mailing, electronic bill presentment and payment services.
Currently, the City issues bills for water, sewer and/or garbage services already provided. The bills are due upon presentation, and become past due if not paid 25 days from the bill date. If payment is not received 30 days from the bill date (allowing 5 days for mailing of the payment), a 5% late penalty is assessed and a reminder notice is mailed to let the customer know their payment was not received.
If payment is still not received, California law requires that the City attempt to make personal contact with the occupants before terminating water service for non-payment. In current practice, a Late Notice Door Hanger is hand-delivered by a City meter reader to the property to advise occupants that the water is scheduled for shut-off. The notice states that payment must be received in the Department of Finance by a specified date to avoid shut-off. If payment is not received, the account is placed into shut-off status and water service is interrupted. An additional fee is collected to restore water service.
This process occupies a significant amount of staff time weekly. To address this issue, the FY 2018/19 Budget included funding for a pilot project to try an alternate approach to this labor-intensive activity. During the duration of the pilot project, tentatively scheduled to start in August 2019, InfoSend will process, print and insert the Late Notice Door Hanger for non-payment and deliver the notices to FedEx for Standard delivery. Additionally, InfoSend will provide immediate email confirmation of expected delivery of the notice and access to a FedEx tracking portal to confirm delivery. This will meet the legal noticing requirements, as FedEx attempts to make personal contact upon delivery while alleviating the workload on current staff.
The union that represents the City’s Meter Readers, Sunnyvale Employees’ Association (SEA)/IFPTE Local 21, supports the pilot program. City staff and InfoSend have finalized plans for implementation of this one-year pilot program and staff recommends increasing the existing InfoSend, Inc. five-year Service Agreement by $88,445 for a new not-to-exceed amount of $338,445, to implement this program.
FISCAL IMPACT
Funding for this contract is included in the Department of Finance operating budget, Program 708 - Utility Billing. The cost of printing and delivering the notices is recovered through an existing fee assessed to the delinquent customers.
FUNDING SOURCE
This contract is funded by the City’s Utility Enterprise Funds (Water, Wastewater, and Solid Waste).
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Take the following action:
- Authorize the City Manager to execute the First Amendment to the Service Agreement with InfoSend, Inc., in substantially the same form as Attachment 1 of the report, for utility bill notification services to increase the not-to-exceed amount by $88,445 for a new not-to-exceed amount of $338,445.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft First Amendment to Services Agreement