Title
An Ordinance approving the award of RFP No. 2019-023 for the Interactive Voice Response System and Utility Payment System upgrade to Paymentus Corporation and authorizing the City Manager to execute agreements for the same by and on behalf of the City. (F&BC 3-13-19)
Body
Issue/Request:
An Ordinance approving the award of RFP No. 2019-023 for the interactive voice response system and utility payment system upgrade to Paymentus Corporation and authorizing the City Manager to execute agreements for the same by and on behalf of the City.
Background:
The City currently accepts credit card payments made in person, over the telephone, or through the Water Utilities Department website. Water Utilities customers currently make approximately 12,000 payments a month through the existing web-based and interactive voice response (“IVR”) systems, which accounts for thirty-eight percent (38%) of utility payments. Customer expectations continue to increase in terms of payment options, mobility, ease and security.
The City’s currently uses CIS Infinity as the utility billing management system and InfinityLink to manage the online customer portal, which allows pending payment notifications, settlement reconciliations, transaction management and outbound notifications. The City has the following three major concerns with the current system:
1. IVR System is located on a physical server that is being phased out by the vendor due to age and functionality. This system is limited to four phone lines.
2. WEB/IVR payments are processed using two different software solutions that use the City’s payment gateway to interact with merchant services. These systems occasionally have down times, which create issues with payments that time-out, duplicate entries, and increase costs in processing and reconciliations.
3. Limited functionality in both systems. The 4-line limitation of the current IVR result in busy signals for customers during peak times and limits the ability for the Utility to make outbound calls for notifications. The WEB system does not provide easy and fast processing of payments for customers with multiple accounts, secure e-check processing and consistency of system configuration with IVR system. Additional bank card providers have been requested by customers and a system that will allow users to store payment information to make repetitive payments.
To resolve these issues, the City issued RFP No. 2019-023 seeking a single-vendor service for automating its payment and customer notification processes. Six firms responded to the solicitation. After proposal review and subsequent demonstrations, presentations and interviews, the evaluation committee determined that Paymentus was the highest ranked firm.
Key Issues:
Paymentus provides the IVR solution and customer notification system. In addition, the Water Utilities department requires services from a payment processor and gateway.
Under the proposed agreement, Paymentus will provide City’s customers with the option to make online payments, IVR phone payments, mobile payments, eBilling, outbound customer notifications (including high-volume call-outs), and credit card processing. This expands the City’s payment options and ability to provide enhanced services to meet our customer’s demands.
The Agreement has an initial term of three (3) years, with up to two, one-year renewal terms at the City’s option.
Impact/Analysis:
The cost to implement the solution is free to the City, and the City will save money by eliminating payment gateway transaction fees and the elimination of current annual maintenance fees from Paymentus. The City may also save money through lower transactional costs than achieved through its current provider. Based on current number of payments, the savings for next Fiscal Year 2019-20 are anticipated to be nearly $131,000.
Proposed Council Motion:
FIRST MOTION: I move for second reading of an Ordinance approving the award of RFP No. 2019-023 for the interactive voice response system and utility payment system upgrade to Paymentus Corporation and authorizing the City Manager to execute agreements for the same by and on behalf of the City.
SECOND MOTION: I move for adoption of an Ordinance approving the award of RFP No. 2019-023 for the interactive voice response system and utility payment system upgrade to Paymentus Corporation and authorizing the City Manager to execute agreements for the same by and on behalf of the City.
Presenter
Brent Boice, Assistant Director of Business Services, Lee's Summit Water Utilities
Recommendation
Recommendation: Staff recommends approval of an Ordinance awarding RFP No. 2019-023 to Paymentus Corporation. Paymentus is uniquely qualified to provide our online and telephone payment solution due to their integration history with other CIS Infinity customers. The upgrade of the payment system is expected to lower costs and provide addtional functions/features to enhance our delivery of that service.
Committee Recommendation
Committee Recommendation: Motion by Councilmember Lopez, second by Councilmember Edson, this Ordinance was recommended for approval to the City Council - Regular Session due back on 3/19/2019. The vote was unanimous.