CC MEETING: May 17, 2016
DATE: May 10, 2016
TO: Leonard Martin, City Manager
FROM: Bob Scott, Assistant City Manager
Title
Consider Approval Of The Purchase Of A Payment Kiosk And Related Services From AdComp Systems Group For An Annual Amount Not To Exceed $49,900.00.
Body
BACKGROUND:
In 2014, the City implemented a payment kiosk at the Municipal Court building. Staff recently contacted the vendor, AdComp Systems Group (AdComp), to expand the kiosk services to accept utility bill payments. The vendor has offered to provide a second kiosk at no charge to be placed in the east parking lot between City Hall and Municipal Court where the current drive-up utility billing night payment boxes reside. Staff believes this drive up location will enhance the customer service experience and increase use of the kiosk. When the Municipal Court kiosk was procured, quotes were obtained from three (3) vendors and AdComp was by far the most economical. To ensure that AdComp’s costs were still competitive, staff contacted three (3) payment kiosk vendors to request quotes. None of the other vendors responded to our request for quotes.
The estimated costs of the second kiosk are comprised of the following:
• One-time interface programming costs - AdComp $15,100
• One-time site preparation costs $11,700
• Recurring annual software interface - Sungard $ 3,600
• Recurring kiosk annual software maintenance - AdComp $ 2,900
• Recurring kiosk service fees maximum capped costs - AdComp $47,000
The recurring kiosk service fees are transactions fees based on type of payment. The vendor has agreed to a capped annual maximum on these fees of $47,000. The actual costs may be less depending on transaction volumes.
This second kiosk will accept both utility bill and municipal court fine payments. For utility billing payments, this kiosk will replace the current night drop boxes and will allow payments to be processed electronically and much more efficiently. Currently, payments dropped in the night box by 7 am are manually processed as a prior day payment. This manual processing is very inefficient and delays the processing of late notices and service cut procedures. The deadline for payments at the kiosk will be moved up to midnight to allow for processing with all other electronic payment formats (i.e. on-line credit card payments).
After approval, the implementation time for the kiosk is expected to take 8 to 12 weeks; dependent on the availability of Xerox, Facilities and Streets teams to prepare the site.
FINANCIAL IMPLICATIONS:
Cost to be paid to AdComp for this second kiosk in fiscal year 2016 will consist of the one-time costs of $15,100 plus the recurring annual software maintenance of $2,900 and a partial year of the service fees. Due to the partial year, the total costs paid to AdComp in fiscal year 2016 are projected to be significantly less than $49,900. For future years, maximum costs to be paid to AdComp would be limited to the total recurring costs of $49,900.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends the City Council authorize the City Manager to enter into a contract with AdComp for an annual amount not to exceed $49,900.