DATE: August 20, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: AMENDMENT 3 TO AGREEMENT WITH INVOICE CLOUD CORPORATION FOR ON-LINE AND INTERACTIVE VOICE RESPONSE (IVR) PAYMENT PROCESSING SERVICES
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 3 to the Professional Services Agreement (PSA) with Invoice Cloud Corporation, in an estimated amount of $425,521 in fees, to extend the agreement through October 22, 2027 for a total not to exceed amount of $1,384,521 for on-line and Interactive Voice Response (IVR) payment processing services; and authorize the City Manager to execute the amendment.
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BACKGROUND AND ANALYSIS
On October 7, 2015, the City Council approved a PSA with Advanced Utility Systems (AUS) for a Customer Information System (CIS), allowing for the billing and collection of utility service fees. Invoice Cloud provides utility billing customers the ability to make secure web payment using a credit card or an electronic check, view the account balance, and enroll paperless billing. Invoice Cloud securely transmits all payment transactions in real time to Chase Paymentech. Chase, in turn, deposits directly to the City’s depository bank account.
On January 18, 2017, the City Council approved a PSA with Invoice Cloud for utility billing on-line and IVR payment processing services.
On September 28, 2022, the City Council approved Amendment 1, extending the term of the Agreement for three years from October 22, 2022 to October 22, 2025.
On September 27, 2023, the City Council approved Amendment 2 increasing the fixed per transaction fee from $0.49 to $0.55 for credit card and EFT check transactions.
Amendment 3 extends the contract term for two additional years from October 22, 2025 to October 22, 2027 and will continue online and IVR payment processing services.
FISCAL IMPACT
Amendment 3 with Invoice Cloud Corporation will extend the current contract for two years and no change to per-transaction rates is proposed. The estimated fee for the two years will be $425,521. And will be charged to Administration Fees account number 200010102.5405 which has a current available balance of $1,277,780; therefore, sufficient funds are available.
|
Description |
Account |
FY 2025-26 Amount |
Available Balance |
|
Amendment 3 |
Allocation of Interest 200010102.5405 |
$202,629 |
$1,277,780 |
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
Prepared by: Donna Trevizo, Financial Services Division Manager
Reviewed by: Jill Moya, Financial Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Amendment 3