Title
Utility Bill Presentment and Payment (B)
Staff recommends awarding a contract to Total Billings, Inc. for utility bill rendering, printing, mailing, electronic presentment and payment.
Explanation
In 2005, GRU began replacing its Customer Information System (CIS). During this process, staff evaluated the possibility of outsourcing some portions of the billing system to reduce costs. As a result, the customer bill rendering process (formatting) was outsourced. The agreement included a disaster recovery option for bill printing as a backup to GRU's bill print operation.
To further reduce the billing process cost, GRU re-evaluated outsourcing the remaining billing processes, which includes bill printing, mailing, and miscellaneous customer correspondence. The estimated annual expense for this contract is $325,000. Based on the staff analysis, outsourcing these services will result in a $10,000 decrease per year compared to the existing billing process expense, and will also result in improved efficiencies and new options for customers. For example, customers would have the option of receiving an electronic bill rather than a mailed, paper bill.
Utilities Purchasing issued a Request for Proposals (RFP) to seventeen known companies that perform this type of service and posted the RFP to GRU's webpage. Eight firms submitted proposals, which were evaluated and scored based on understanding and approach, qualifications and experience, fees and expenses, references and Local Vendor status. Total Billings, Inc. submitted the best evaluated proposal. A tabulation of the evaluation is attached for your information.
Recommendations
The City Commission: 1) authorize the General Manager, or his designee, to negotiate and execute a three-year contract with Total Billings, Inc. for utility bill rendering, printing, mailing, electronic bill presentment and payment, subject to approval of the City Attorney as to form and legality; and 2) approve the is...
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