Title
Approval of Amendment No. 7 to Services Agreement AGR16-4289 with Paymentus Corporation in the Amount of $75,000 for a Revised Total Agreement Amount of $325,000, plus Applicable Gross Receipts Tax for the Purpose of Credit Card and Electronic Bill Payment Services
Recommended Action
I move that Council approve Amendment No. 7 to Services Agreement AGR16-4289 with Paymentus Corporation in the amount of $75,000.00 for a revised total contract value of $325,000.00 plus applicable gross receipts tax.
Utilities Manager's Recommendation
The Utilities Manager recommends that Council approve as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities recommends that Council approve as presented.
Body
In June 2020 Amendment 6 to this contract was executed which increased the funding to $250k with the expectation that funding would be sufficient to carry us for the remaining term of the current contract However, with Covid and the renewed emphasis on contactless payment alternatives, plus the addition of Paymentus as an option for citizens to make donations to the Utilities Assistance Program, we have seen a sharp increase in usage of the credit card payment alternative and resulting fees. This proposed additional funding amount is based on the most recent usage data and again is expected to be sufficient to cover us for the remaining term of the current contract.
Background: For years, the Utilities Department had a “convenience fee” model for accepting credit card payments for utilities bills. Under the old model, customers were charged $4.95 per transaction with a transaction limit of $450.00. The department received substantial customer feedback that this model was unacceptable in the modern business world. We also got similar indications from trade shows and from publications to which we subscribe. Finally, to successfully deploy our Smart Customer Mobile application, it was apparent that we nee...
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