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On agenda:
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9/21/2021
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Final action:
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Title:
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Approve and authorize the General Manager to increase the estimated annual transaction fee amount to $200,000 for the District's contract with Invoice Cloud, Inc., (Robert Lapides, President) for Invoice Cloud E-Billing and Online Payment Solution (IC Suite of Services), CBE No. 190054; utilize JP Morgan Chase & Co., for associated merchant services as Invoice Cloud's merchant services partner; and ratify a prior spend exceedance of $41,610.80 to Invoice Cloud, Inc., and the payment of merchant fees to JP Morgan Chase & Co.; or take other action as appropriate. (For possible action)
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CLARK COUNTY Water Reclamation District
Board of Trustees
AGENDA ITEM
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Petitioner: |
Thomas A. Minwegen, General Manager |
Recommendation:
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Approve and authorize the General Manager to increase the estimated annual transaction fee amount to $200,000 for the District’s contract with Invoice Cloud, Inc., (Robert Lapides, President) for Invoice Cloud E-Billing and Online Payment Solution (IC Suite of Services), CBE No. 190054; utilize JP Morgan Chase & Co., for associated merchant services as Invoice Cloud’s merchant services partner; and ratify a prior spend exceedance of $41,610.80 to Invoice Cloud, Inc., and the payment of merchant fees to JP Morgan Chase & Co.; or take other action as appropriate. (For possible action)
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FISCAL IMPACT:
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Fund #: |
O&M Funds |
Fund Name: |
CCWRD General Funds |
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Fund Center: |
CCWRD Funds |
Funded PGM/Grant: |
N/A |
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Amount: |
$200,000 estimated annually for Invoice Cloud E-Billing and Online Payment Solution and associated merchant services fees to JP Morgan Chase. |
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Description: |
Invoice Cloud E-Billing and Online Payment Solution (IC Suite of Services) |
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Additional Comments: |
The original estimated annual contract expenditures were funded at an amount of $95,000. After a much higher than expected adoption rate, the annual spend needs to be increased to $200,000 and associated merchant services fees will be paid to JP Morgan Chase. Expenditures will be allocated based on approved budgets. |
BACKGROUND:
The District provides wastewater services to approximately 249,000 customer accounts located in the unincorporated area of Clark County. Staff previously directed the printing and mailing of annual, quarterly and delinquent statements, Notice of Public Hearing (Tax Roll) letters, and other printing and mailing requirements under ITB No. 170002. Customer feedback encouraged implementation of an expanded online and mobile payment portal leveraging current technology solutions providing a level of ease, flexibility, and transactional timeliness.
On June 21, 2019, the General Manager approved the award of District CBE No. 190054 to Invoice Cloud, Inc., for IC Suite of Services, utilizing the purchasing authority delegated under Resolution No. 18-004. This procurement allowed for the implementation of IC Suite of Services, which enabled the District and its customers to accept and make online payments in a securely hosted real-time environment. IC Suite of Services offers multiple payment options for customers such as credit card, debit card, or electronic check payments, it features a wide variety of payment preferences such as Pay by Text, Auto Pay, one-time payment, and scheduling of future payments, and it offers the capability to register and store remittance data. Additionally, customers can locate, view, and print bills and payment records online. These services have increased the number of customers paying electronically and participating in the paperless program, benefitting the environment and reducing printing and mailing costs. It is integrated with the District’s Oracle Customer Care & Billing (CC&B), giving District staff easy access to a variety of reports, customer and invoice/payment records, and automated e-mail and text reminders and notifications.
The District made an initial contract award to Invoice Cloud, Inc. based on an estimated adoption (usage) rate among all customers. The adoption rate significantly exceeded estimates in the initial full first year, resulting in the fees paid to Invoice Cloud Inc., unavoidably exceeding the approved amount by $41,610.80. Staff has increased the estimated adoption and usage rate over the second and subsequent years, anticipating the current trend to continue. Staff has determined that the increased estimated annual contract amount of $200,000 with a 10% price increase for each subsequent year of the contract term is enough to sustain the contract.
To facilitate Invoice Cloud Inc.’s payment portal solution, Invoice Cloud has a proprietary relationship with JP Morgan Chase as a merchant services partner. Staff seeks board approval to utilize JP Morgan Chase for merchant services as Invoice Cloud’s proprietary partner, both for the past usage and moving forward for the duration the IC Suite of Services is used, or other financial adjustments are authorized. Merchant services fees were and will continue to be paid to JP Morgan Chase so long as the District continues to utilize the IC Suite of Services and JP Morgan Chase remains Invoice Cloud’s merchant services partner. Staff will submit an annual report to the Board detailing incurred expenditures to support this customer-driven application.
In accordance with NRS 332.115.1 (h) and (i), the competitive bidding process is not required because the purchase is for computer software and computer software maintenance and support services. Clark County Business License has determined that a business license is not required.
This agenda item has been reviewed and approved by the District General Counsel.
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