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HomeMy WebLinkAboutI-10 UB Staff Report - Approve Purchase Order Increase for Utility Remittance Processing Software UpgradesCONSENT ITEM I-10 TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES DATE: MAY 18, 2020 SUBJECT: AUTHORIZATION TO INCREASE THE BLANKET PURCHASE ORDER FOR RT LAWRENCE CORPORATION FROM $18,300 TO $31,000 FOR UTILITY BILL REMITTANCE PROCESSING SOFTWARE UPGRADES BACKGROUND: The Azusa Light & Water Consumer Service Division (ALW) is requesting authorization to increase the FY 2019/2020 blanket purchase order with RT Lawrence Corporation (RTL) from $18,300 to $31,000 to cover the cost of the in-house utility bill remittance processing software upgrades. RECOMMENDATION: Staff recommends the Utility Board take the following action: 1)Approve an increase to the blanket purchase order for RT Lawrence Corporation during fiscal year 2019/2020 from $18,300 to $31,000 for utility bill remittance processing software upgrades. ANALYSIS: In an effort to increase efficiency and streamline processes, in October 2019 the Consumer Service Division eliminated the lockbox service that RTL provided and transitioned to in-house utility bill remittance processing. ALW utilizes RTL remittance processing software to scan and electronically deposit all utility bill payments that are received by mail, drop box, or in-person cashier. To ensure that we keep current with all industry remittance processing standards, ALW is seeking to upgrade the software version that is currently being utilized. APPROVED UTILITY BOARD 5/18/2020 Special Meeting Authorization to Increase RT Lawrence Blanket Purchase Order May 18, 2020 Page 2 Utility Board action is required to increase the blanket purchase order as the request exceeds the City Manager’s $25,000 approval authority in accordance with the City’s purchasing policy. The requested purchase order increase is to cover the one-time expense for the software upgrade, and the Fiscal Year 2020-21 blanket purchase order will return to approximately $18,300 per year for software maintenance. FISCAL IMPACT: Sufficient budget is available in the FY 2019/2020 approved budget to cover the expense of the increase purchase order. Prepared by: Reviewed and Approved: Alicia Holmes Manny Robledo Assistant Director of Utilities Director of Utilities Customer Care & Solutions Reviewed and Approved: Sergio Gonzalez City Manager