DATE: August 20, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: AMENDMENT 2 TO AGREEMENT WITH SELECTRON TECHNOLOGIES, INC. FOR INTERACTIVE VOICE RESPONSE SERVICES
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 2 to the Professional Services Agreement (PSA) with Selectron Technologies, Inc., in an estimated amount of $43,500 for a revised estimated contract amount of $333,660 extending the term of the Agreement for one year with two additional one-year extension options for Interactive Voice Response (IVR) services; and authorize the City Manager to execute the amendment.
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BACKGROUND AND ANALYSIS
In January 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 services. As part of the CIS project, IVR services were required. AUS provided two vendor options that met the City’s web and IVR services requirements.
In January 2017, the City Council approved a PSA with Selectron Technologies, Inc. IVR Services. The Agreement was initially to expire on October 22, 2022.
On September 14, 2022, the City Council approved Amendment 1 extending the term of the Agreement for an additional three years through October 22, 2025.
Amendment 2 with Selectron Technologies will extend the Agreement for one additional year with two one-year extensions, extending the term through October 22, 2028. There are no proposed changes to transaction fees, and the annual inbound service fees remains at $3,000 annually and $15,000 for up to 100,000 delivered messages for a total of $18,000.
Selectron Technologies provides utility customers with the ability to make payments over the phone with their credit card or electronic check through an automated voice activated IVR system. The estimated cost is based on a per transaction rate. The $0.25 per call fee remains unchanged from the original contract. The inbound per-transaction fee was reduced to $0.40 in Amendment 1 and remains unchanged in Amendment 2. In addition,
Selectron Technologies IVR outbound services allows the City to send up to 100,000 voice messages to utility customers. This is especially useful for communicating with customers regarding delinquent accounts, providing real-time notifications, account balances, and payment options - all of which enhance customer service.
Selectron Technologies consistently provides reliable and responsive service, and their continued partnership will support the City’s collection of Utility services.
This amendment includes an option to extend the agreement for two one-year periods (possible three-year total) which would be administratively approved, subject to the annual review and recommendation of the Director of Financial Services and the annual availability of an appropriation.
FISCAL IMPACT
The estimated cost of the agreement is $43,500 for one year, with two optional extensions at an estimated $43,500 annually, for a potential three-year total of $130,500. Annual Service Fee for $18,000 will be charged to 200010102.5405 which currently has an available balance of $34,280. Monthly fees per transaction will be charged to Administration Fees account number 200010102.5355 which has an available balance of $25,500. Actual costs may vary depending on usage. Current interest earnings on cash balances will cover the cost of the fees.
|
Description |
Account |
FY 2025-26 Amount |
Available Balance |
|
Monthly fees per transaction |
Allocation of Interest 200010102.5355 |
25,500 |
$25,500 |
|
Annual contract renewal |
200010102.5405 |
18,000 |
$34,280 |
|
|
Total |
43,500 |
|
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.
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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 2
3. Exhibit B