File #: ID#17-3610    Version: 1 Name: Utility online bill presentment and payment processing
Type: Action Item Status: Passed
File created: 6/5/2017 In control: Customer Service
On agenda: 6/14/2017 Final action: 6/14/2017
Title: Approve a contract (purchase order) with Kubra Data Transfer Ltd (Kubra), Mississauga, ON, to provide electronic bill presentment and payment services for the City of Clearwater and authorize the appropriate officials to execute same. (consent)
Attachments: 1. RFP 43-16 Electronic Bill Presentment and Payment Services.pdf, 2. City of Clearwater_KUBRA changes 6-5-2017.pdf

SUBJECT/RECOMMENDATION:

Title

Approve a contract (purchase order) with Kubra Data Transfer Ltd (Kubra), Mississauga, ON, to provide electronic bill presentment and payment services for the City of Clearwater and authorize the appropriate officials to execute same. (consent)

 

Body

SUMMARY: 

 

For over ten years, the City has used a custom bill presentment and payment solution developed by the Information Technology (IT) department for the Utility Customer Service (UCS) department.  It was developed to allow utility customers to view and pay their bill electronically, as well as reduce the postage/handling costs associated with mailing out paper bills by allowing customers to elect for paperless billing.  This payment solution interfaces with a third party payment processor; Western Union SpeedPay, which removes the requirement for the City from needing to maintain PCI compliance.  The solution developed by the City’s IT was ready for modernization and an update, which prompted the IT and UCS departments to search for and select a new means of displaying the utility bill and processing payments.

 

In August 2016, Request for Proposals 43-16 was issued for Electronic Billing Presentment and Payment Services.  The selection committee shortlisted five respondents and held interviews in November.  Further research was performed and discussions occurred with the two highest ranked companies - Kubra and Invoice Cloud.  The selection committee selected Kubra to provide the required services for the City of Clearwater Utility Customer Service Department.

 

The contract will commence on June 19, 2017.  The initial term of the Agreement will be for a period of thirty-six months, unless otherwise terminated pursuant to the Agreement. Thereafter, the Agreement may be renewed for two twenty-four-month renewal terms upon mutual written consent of the parties.

 

Customers paying with Check or Credit/Debit Card will be charged a $1.95 convenience fee. Customers who prefer to pay in cash while at one of Kubra’s participating retail stores located close to them will be charged $1.99.

 

Kubra offers:

                     Real-time payment option to reduce unnecessary service shutoffs due to last-minute payments

                     Provide convenient locations for customers to make in-person cash payments (Ace, 7-11, CVS, Family Dollar)

                     Pay-by-Text: Allows customers to complete payment transactions from the convenience of their mobile device

                     Secure e-Mail Delivery & Payment;  securely receive, review, and send payment through their email

                     Automatic alerts to customers, reminding them to make payment

                     29% e-bill adoption or paperless billing expectation (current rate is approximately 8%)

 

 

Adopting Kubra will exceed customer expectations by:

-                     providing the timely information they need and the self-service tools they want;

-                     reduce current processing fees by 21%;

-                     increase security protection for cardholders’ data.

 

Kubra will help to optimize operational efficiency with mailing cost estimate reduction equal to 20% of the actual cost and maximize collections with the latest payment technologies and communication channels

 

 

 

The contract has been reviewed and approved by the City Attorney and the Finance/Risk Department.

 

APPROPRIATION CODE AND AMOUNT:

N/A

 

USE OF RESERVE FUNDS:

N/A