Explanation
The purpose of this legislation is to authorize the Director of Public Utilities to enter into an agreement with Infosend, Inc., to provide Electronic/Traditional Bill Presentment and Payment Application for the Department of Public Utilities. As part of this agreement the Department is required to submit a postage deposit to the contractor prior to the first mailing and this amount will remain in deposit for the duration of the agreement. This service will provide the department with a comprehensive electronic billing solution that will enable its customers the convenience of receiving and paying their City of Columbus utility accounts online or continue to manage their utility account through traditional means. In addition, this environmentally-friendly bill presentment solution will play a significant role in the City's goals of protecting the environment by offering our customers a choice to manage their utility accounts online. It is requested that this ordinance be handled in an emergency manner in order to expedite the departmental goal of implementing this bill presentment solution to our utility customers.
The Director of Public Utilities received Request for Statement of Qualifications (RFSQ) on August 30, 2012. Nine (9) proposals were received. A complete evaluation of those proposals is attached. After completing evaluations and interviewsthe selection committee recommended an award be made to Infosend, Inc. The contract specifies that the vendor must utilize current city of Columbus financial institutions for any payment transactions.
The term of this Agreement shall be from December 1, 2013 to November 30, 2016. It is anticipated that services under this Agreement will be provided over the three year contract term. For each year of the three year contract, funds for the services shall be reviewed, and expenditures shall be approved by ordinance of City Council, and appropriation and certification of funds by the City Auditor. Notwithstanding any provision in this Agreement to the contrary, the maximum obligation of the City for services described in this Agreement for the period commencing on December 1, 2013 through November 30, 2014 ("Year 1") is limited to the amount of one million three hundred thousand eighty-one dollars ($1,300,081.00), unless all the following occur: this Agreement is modified in writing; City Council enacts an ordinance approving the new amount; and the Auditor has certified the additional funds. The City is not obligated to spend the maximum obligation authorized for any year under this Agreement. Year 2 costs under this Agreement for the period from December 1, 2014 through November 30, 2015 are estimated at one million one hundred thousand dollars ($1,100,000.00). Year 3 costs for the period from December 1, 2015 through November 30, 2016 are estimated at one million dollars ($1,000,000.00). Subject to mutual agreement, the term of this Agreement can be extended for two (2) additional one (1) year extensions under the same terms, conditions and pricing stated herein.
The City may, at any time during the performance of the services under this Agreement, propose a modification of the Contract by a properly authorized written instrument. With the approval of City Council and execution of such modification by both parties hereto, it shall be fully incorporated into this Contract and shall govern all subsequent performance under the Contract.
This legislation also transfers a total of $1,300,081.00 from Object Level One 01 to Object Level One 03 within the Division of Water. The need to transfer funding within the operating budget was identified in the second quarter budget review, and is necessary in order to align budget authority with projected expenditures.
See Attachment: ORD 2233-2013 DOW Transfer
The company is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
SUPPLIER: Infosend, Inc.: (33-0748516) Expires: 08/08/14, MAJ
FISCAL IMPACT: Currently the Department of Technology performs the function of printing and mailing of utility bills and entering into contract for this project was to commence in 2014, however, proposal reviewing, scoring and negotiations took less time than anticipated. Therefore, the contract to establish this comprehensive electronic billing solution will be in place by year end 2013 . There is sufficient budget authority available in the 2013 Water Operating Fund's Budget to fund this purchase which totals $1,300,081.00. It is also necessary to transfer funds between Object Levels, to accommodate expenditures identified in the second quarter budget review.The expenditure for the service provided by the Department of Technology in 2011 was $1,675,572.98 and in 2012 was $1,622,244.71.
Title
To authorize the City Auditor to transfer $1,300,081.00 between Object Levels within the Water Operating fund; to authorize the Director of Public Utilities to enter into an agreement with Infosend, Inc. for Electronic/Traditional Bill Presentment and Payment Application for the Department of Public Utilities, to authorize the expenditure of $1,300,081.00 from the Water Operating Fund, and to declare an emergency. ($1,300,081.00)
Body
WHEREAS, the Department of Public Utilities has a need to implement an Electronic/Traditional Bill Presentment and Payment Application to provide a comprehensive electronic billing solution that will enable its customers the convenience of receiving and paying their utility bills online or through traditional means. As part of this agreement the Department is required to submit a postage deposit to the contractor prior to the first mailing and this amount will remain in deposit for the duration of the agreement, and
WHEREAS, the Director of Public Utilities received RFSQ's on August 30, 2012 and nine (9) proposals were received, and
WHEREAS, after completing the evaluations and interviews the selection committee recommended an award be made to Infosend, Inc., and,
WHEREAS, The contract specifies that the vendor must utilize current city of Columbus financial institutions for any payment transactions, and
WHEREAS, services under this agreement are to be provided over a period of three years with funds being reviewed and approved each year of the three year contract by City Council and the Mayor, and Auditor's certification of funds, and,
WHEREAS, the City may, at any time during the performance of the services under this Agreement, propose a modification of the Contract by a properly authorized written instrument. With the approval of City Council and execution of such modification by both parties hereto, it shall be fully incorporated into this Contract and shall govern all subsequent performance under the Contract, and,
WHEREAS, the Division of Water has a need to transfer $1,300,081.00 between Object Levels in the 2013 Water Operating Fund's Budget. Funds for this transfer have been identified in the second quarter review and are available in Object Level One 01; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Water, Department of Public Utilities, in that it is immediately necessary to authorize the Director of Public Utilities to establish a contract, for an Electronic/Traditional Bill Presentment and Payment Application, in an emergency manner in order to expedite the departmental goal of implementing this bill presentment solution to our utility customers, for the immediate preservation of public health, peace, property and safety; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Public Utilities be and is hereby authorized to enter into an agreement with Infosend, Inc. for an Electronic/Traditional Bill Presentment and Payment Application for the Department of Public Utilities. The term of this Agreement shall be from December 1, 2013 to November 30, 2016. It is anticipated that services under this Agreement will be provided over the three year contract term. For each year of the three year contract, funds for the services shall be reviewed, and expenditures shall be approved by ordinance of City Council, and appropriation and certification of funds by the City Auditor. Notwithstanding any provision in this Agreement to the contrary, the maximum obligation of the City for services described in this Agreement for the period commencing on December 1, 2013 through November 30, 2014 ("Year 1") is limited to the amount of one million three hundred thousand eighty-one dollars ($1,300,081.00), unless all the following occur: this Agreement is modified in writing; City Council enacts an ordinance approving the new amount; and the Auditor has certified the additional funds. The City is not obligated to spend the maximum obligation authorized for any year under this Agreement. Year 2 costs under this Agreement for the period from December 1, 2014 through November 30, 2015 are estimated at one million one hundred thousand dollars ($1,100,000.00). Year 3 costs for the period from December 1, 2015 through November 30, 2016 are estimated at one million dollars ($1,000,000.00). Subject to mutual agreement, the term of this Agreement can be extended for two (2) additional one (1) year extensions under the same terms, conditions and pricing stated herein.
Section 2. The City may, at any time during the performance of the services under this Agreement, propose a modification of the Contract by a properly authorized written instrument. With the approval of City Council and execution of such modification by both parties hereto, it shall be fully incorporated into this Contract and shall govern all subsequent performance under the Contract.
Section 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
Section 4. That the City Auditor be and is hereby authorized and directed to transfer $1,300,081.00 between Object Level One 01 to Object Level One 03 within the 2013 Water Operating Fund.
SEE ATTACHED SPREADSHEET FOR TRANSFER BREAKDOWN.
Section 5. That the expenditure of $1,300,081.00 or so much thereof as may be needed, be and the same hereby is authorized as follows:
Fund: 600
OCA: 602193
Object Level: 3336
Amount: $1,300,081.00
TOTAL REQUEST: $1,300,081.00
Section 6. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is hereby declared to be an emergency and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.