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HomeMy WebLinkAboutF-1. Report on Utility Payment Methods used by Customers C C?5-ent ct 1#7/I01 F-1 AZUSA LIGHT R WATFR INFORMATION ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES DATE: OCTOBER 27,2014 SUBJECT: REPORT ON UTILITY PAYMENT METHODS USED BY CUSTOMERS At its September Utility Board, a request was made to provide the Board with a report on payment methods used by utility customers. Currently, Azusa Light & Water provides various options for customers to make utility payments. Below summarizes each payment method: 1. Mail payments to Lockbox service provider. ALW contracts with RT Lawrence(RTL)to process mail-in payments. RTL has equipment to efficiently process checks, correlate payments to account nos.,make deposits, and provide ALW with payment files which are uploaded to our billing system to update account records with payment status. Payments made using this method account for about 36%of all amounts received. 2. Payments walked into our office by customers. A substantial amount of payments are made in our lobby in the form of cash and checks. These account for about 22% of all payment amounts received. 3. Mail payments to ALW. Although ALW has a Lockbox service provider, many customers continue to mail in payments to our office at 729 N. Azusa Ave. These account for about 19% of all payment amounts received, and are typically larger in dollar amounts as they primarily come from commercial customers. 4. Internet ACH Payments. InfoSend is one of our electronic payment vendors, and has set up a payment gateway on our website that allows customers to sign up for electronic payments using a checking account. InfoSend processes both recurring payments and one time payments using a checking account no. input by customers.These payments account for about 8% of all payment amounts received by ALW. 5. Wells Fargo Ebox. Customers may initiate electronic payments through their own bank online and a majority of these payments are received electronically by ALW through a Wells Fargo clearing house service called Ebox. Payments received through Ebox account for about 7% of all payment amounts received. If the bank is incapable of UB-112 Utility Payment Methods Report October 27,2014 Page 2 sending the payment electronically then a physical check will be sent and processed with the daily mail or through RTL. 6. Credit Card Payments. Business entities are allowed to only have one credit card processor. ALW uses Paymentus to process credit card transactions. Paymentus provides this service online via our website, and by telephone. Credit card payments account for about 3% of all payment amounts received. 7. After hours Drop Off. ALW maintains two drop boxes outside of our building at 729 N. Azusa Ave. These Drops are used by customers to drop payments off after business hours. About 2%of payment amounts are received from Drops. 8. Other Payment Methods. Some customers, i.e. those placed on cash only basis due to credit issues, sometimes use money orders to make payments. These are usually walked into our office. There is also one offsite payment location at Azusa Wireless at 630 E. Foothill Blvd. This location has seen very little usage but accepts cash and credit card payments which are processed by Paymentus. Low income assistance payments are another payment method used by qualifying customers that apply for HEAP benefits. These other payment methods account for the remaining 3% of payment amounts received. Attached are a couple of reports that display payment method details, one for fiscal year 2013- 14, and one for month of September 2014. Staff is currently reviewing payment method arrangements and considering introducing certain changes. One change would be to take credit card and debit card payments at the Cashier counter in our lobby, and to consider a Kiosk in our Lobby. These options are being explored with Paymentus and other partners of Systems& Software, our billing system vendor. Ideally, electronic payments should be integrated with our billing system to provide a seamless and instantaneous update of the payment record for each service account. This is particularly important when the billing system is producing shut off lists. Many customers wait until last minute to make their payments, and we are delayed in being notified in some cases about certain electronic payments because the payment systems are not integrated with our billing system; rather files have to be manually uploaded the next day to update customer records. Staff received a proposal from Systems & Software on an integrated solution, and we expect to bring a proposal to the Utility Board at an upcoming meeting regarding this subject. This matter is timely as both the InfoSend and Paymentus contracts end in early 2015. The changes being sought would provide for credit card and debit card processing in our lobby and include a Kiosk option for those standing in line. Prepared by: Cary Kalscheuer,Assistant Director- Customer Care& Solutions Attachments: 1. FY 2013-14 Payment Methods Report 2. September 2014 Payment Methods Monthly Report UB-113 Fiscal Year 13-14 Payment Amounts Month Cash Checks M.O. Mail ACH Lockbox HEAP Drop Ebox Paymentus Infos end MfosendAP Total Jul-13 $536,835.48 $889,401.50 $11,218.85 $780,837.45 $212,330.78 $2,326,481.93 $8,237.00 $131,770.42 $442,987.65 $146,206.25 $271,380.92 $168,759.82 $5,926,448.05 Aug-13 $510,048.45 $765,073.30 $10,804.34 $2,684,987.34 $185,186.15 $2,332,850.38 $4,223.00 $121,941.13 $483,895.11 $166,119.06 $331,938.34 $191,093.26 $7,788,159.86 Sep-13 $546,339.62 $745,841.98 $13,188.89 $1,015,775.79 $195,611.61 $2,247,693.42 $16,050.00 $123,488.86 $464,588.02 $169,366.86 $318,619.66 $172,404.00 $6,028,968.71 Oct-13 $684,805.47 $1,064,282.64 $15,655.03 $947,299.98 $242,001.24 $2,572,366.00 $13,842.00 $160,853.57 $551,777.08 $232,347.91 $424,261.08 $254,565.91 $7,164,057.91 Nov-13 $494,982.34 $618,181.03 $13,885.28 $948,249.54 $165,110.60 $2,115,609.44 $6,385.00 $112,250.25 $409,505.90 $189,309.73 $323,074.18 $165,442.35 $5,561,985.64 Dec-13 $499,240.54 $671,322.86 $12,441.54 $1,022,261.64 $181,138.22 $1,781,511.28 $11,131.00 $108,167.04 $403,747.68 $149,121.90 $283,391.56 $165,636.90 $5,289,112.16 Jan-14 $443,169.95 $494,502.49 $15,017.12 $557,395.92 $130,876.39 $1,758,375.37 $7,020.00 $93,960.64 $363,540.06 $145,656.50 $289,482.54 $148,053.75 $4,447.050.73 Feb-14 $450,561.32 $707,319.25 $19,151.17 $792,720.80 $159,682.62 $1,929,544.05 $6,847.00 $110,444.68 $367,503.60 $137,539.67 $274,721.02 $187,354.81 $5,123,389.99 Mar-14 $444,109.39 $625,964.18 $9,720.92 $921,639.69 $161,387.84 $1,773,936.13 $5,419.00 $92.781.69 $383,237.41 $133,413.65 $313,680.18 $170,382.50 $5,035.672.58 Apr-14 $449,845.27 $874,110.92 $53,828.09 $643,512.91 $92,954.88 $1,633,456.14 $1,604.00 $91,874.75 $363,830.15 $126,776.40 $272,030.08 $170,759.24 $4,774,582.83 May-14 $398,597.00 $467,365.93 $11,192.89 $854,354.62 $140,928.43 $1,760,293.04 $2,063.00 $100,562.42 $376,067.61 $120,376.33 $301,651.18 $173,200.36 $4,706,652.81 Jun-14 $445,172.75 $762,957.11 $17,079.71 $1,933,701.46 $198,523.68 $2,089,533.96 $2,808.00 $111,139.43 $437,714.04 $129,426.91 $323,260.72 $207,528.32 $6,658,846.09 Total $5,903,707.58 $8,686,323.19 $203,183.83 $13,102,737.14 $2,065,732.44 $24,321,651.14 $85,629.00 $1,359,234.88 $5,048,394.31 $1,845,661.17 $3,727,491.46 $2,155,181.22 $68,504,927.36 Total Payment Type Comparison by type Total Deposit —Total Comparison by Month $x,000,000.00 -I— Cash, $7,000,000.00 — — — -- $5,903,707.5' •' M.O.,$203,183.83, InfosendAP, 0% $6,000,000.00 •, — -- ------ $2,155,181.22,3% $5,000,000.00 - -- — Infosend $4,000,000.00 , , , , , , , , r , , m m m m m m v Tr a v v v $3,72'7,491.46, �491.46 5% . .- -I �. . '-I cl `-I a,71 .-4 71 4. b0 O. 1,�-' > U ro 1, C- ,- >. C Paymentus, < U' O z o -, L.L. Co a co $1,845,661.17,3% -- — Ebox, $5,048,394.31,7% Drop, ACH, $1,359,234.88,2% $2,065,732.44,3% HEAP,$85,629.00, 0% Fiscal Year 13-14 Payment Counts Months Cash Checks M.O. Mail ACH Lockbox HEAP Drop Ebox Paymentus Infosend InfosendAP Total Jul-13 0 2479 105 301 1005 7058 29 942 3208 1152 2344 1231 19854 Aug-13 0 2225 93 369 792 6220 14 735 3070 1184 2422 1151 18275 Sep-13 0 2259 99 243 848 6312 52 752 2912 1132 2404 1151 18164 Oct-13 0 2765 117 306 997 6894 44 934 3338 1434 2797 1458 21084 Nov-13 0 2051 106 379 723 6638 22 789 3048 1257 2722 1156 18891 Dec-13 0 2489 99 194 1017 6911 34 869 3511 1208 2637 1426 20395 Jan-14 0 2175 115 386 761 6449 24 720 3044 1204 2766 1223 18867 Feb-14 0 2112 108 403 856 6278 21 779 3025 1197 2684 1311 18774 Mar-14 0 2359 94 434 1034 7046 18 795 3535 1179 3213 1494 21201 Apr-14 0 2607 109 895 533 6267 5 780 3313 1176 2911 1562 20158 May-14 0 2069 80 554 807 6541 7 755 3224 1084 2942 1369 19432 Jun-14 0 2170 77 696 902 6140 9 821 3277 1074 2734 1472 19372 Total 0 27760 1202 5160 10275 78754 279 9671 38505 14281 32576 16004 234467 (771 1 MI 11 AZUSA LIGHT AND WATER Method of Payment Reports September 2014 SEPT 2014 PAYMENT COUNT Date Cash Checks M.O. Mail ACH Lockbox HEAP Drop Ebox Paymentus Infosend Infosend AP Grand Total Sep 01,14,Mon 0 0 0 0 0 0 0 0 0 0 0 0 0 Sep 02,14,Tue 0 154 3 59 170 304 0 21 190 25 124 214 1264 Sep 03,14,Wed 0 241 6 36 39 427 0 184 381 77 138 62 1591 Sep 04,14,Thu 0 133 7 33 0 275 0 40 183 66 121 96 954 Sep 05,14,Fri 0 0 0 0 0 193 0 0 160 43 109 1 506 Sep 06,14,Sat 0 0 0 0 0 0 0 0 0 0 0 0 0 Sep 07,14,Sun 0 0 0 0 0 0 0 0 0 0 0 0 0 Sep 08,14,Mon 0 130 5 0 109 241 0 26 150 89 294 90 1134 Sep09,14,Tue 0 162 4 168 45 355 0 147 215 92 110 127 1425 Sep 10,14,Wed 0 124 4 3 87 240 0 24 130 66 128 92 898 Sep 11,14,Thu 0 100 3 50 0 228 4 27 128 66 144 116 866 Sep 12,14,Fri 0 0 0 0 0 447 0 0 162 59 106 1 775 Sep 13,14,Sat 0 0 0 0 0 0 0 0 0 0 0 0 0 Sep 14,14,Sun 0 0 0 0 0 0 0 0 0 0 0 0 0 Sep 15,14,Mon 0 141 0 1 274 320 0 32 129 96 350 391 1734 Sep 16,14,Tue 0 125 3 71 0 440 0 139 196 72 111 66 1223 Sep 17,14,Wed 0 82 3 0 0 481 0 17 94 22 96 0 795 Sep 18,14,Thu 0 72 2 18 0 395 4 12 81 45 85 0 714 Sep 19,14,Fri 0 0 0 0 0 172 0 0 113 47 93 1 426 Sep 20,14,Set 0 0 0 0 0 0 0 0 0 0 0 0 0 Sep 21,14,Sun 0 0 0 0 0 0 0 0 0 0 0 0 0 Sep 22,14,Mon 0 116 4 0 0 331 0 20 152 58 203 1 885 Sep 23,14,Tue 0 147 7 8 67 327 0 104 208 79 88 2 1037 Sep 24,14,Wed 0 131 4 82 53 283 0 21 119 74 88 97 952 Sep 25,14,Thu 0 104 1 10 0 260 0 16 97 48 75 91 702 Sep 26,14,Fri 0 0 0 0 0 244 0 0 140 53 91 1 529 Sep 27,14,Sat 0 0 0 0 0 0 0 0 0 0 0 0 0 Sep 28,14,Sun 0 0 0 0 0 0 0 0 0 0 0 0 0 29,14,Mon 0 120 0 33 113 235 5 30 136 97 262 82 1113 0030,14,Tue 0 202 5 0 92 176 0 144 229 65 116 100 1129 1 FLYI 0 2284 61 572 1049 8374 13 1004 3393 1339 2932 1631 20652 CT