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CC Regular Session <br />Meeting Date: 02/14/2017 <br />By: Diana Lund, Finance <br />4. 6. <br />Information <br />Title <br />Approve Renewal of the Master Agreement with OPUS 21 (Utility Billing Provider) for One Year <br />Purpose/Background: <br />The City currently contracts with OPUS 21 for utility billing services. OPUS 21 prints and distributes <br />approximately 9,000 utility bills quarterly and handles all utility billing inquiries. For their services, OPUS 21 is <br />paid approximately $55,000 annually. <br />The original contract (Master Services Agreement) with OPUS 21 was for the period of February 7, 2008 through <br />February 6, 2013. On January 8, 2013, the City Council authorized a three year extension (February 7, 20013- <br />February 6, 2016) with OPUS 21 via an Addendum to the Master Services Agreement. This Addendum included <br />two (2) one-year renewal options at the City's discretion. The first year renewal option was for the period of <br />February 7, 2016 - February 6, 2017 and the extension was authorized by City Council on January 26, 2016 <br />It is being requested to authorize the second year option for the period of February 7, 2017 - February 6, 2018. The <br />fourth- quarter billing for 2016 was completed on January 25, 2017, so the renewal period will cover 2017 billing <br />services. <br />One change to the renewal option is that Opus 21 has inquired about a rate adjustment of approximately 2%. The <br />attached 2nd Year Renewal Schedule of Service Fees reflects those services that have been increased to present <br />Opus 21 with an approximate 1.85% or $1,020 annually based on 2016 billings. Opus 21 has not received a service <br />fee cost increase prior to this request. <br />The utility billing contract extension will need to be brought forward to City Council at a later date. Outside of <br />hosting utility billing services in-house, staff has not found, or is aware of, another full -service utility billing vendor. <br />Notification: <br />The renewal requires only the signatures of the Mayor and the City Administrator on the attached 2nd Year <br />Renewal Option Form.. <br />Observations/Alternatives: <br />Other than bringing the function of utility billing in-house, staff has not found another vendor that provides the <br />utility billing service outside of OPUS 21. Most outside vendors are bill print only. <br />Funding Source: <br />All utility billing functions are paid through the respective Enterprise Funds of: Water, Sewer, Street Lighting, <br />Recycling and Storm drainage. <br />Recommendation: <br />Staff recommends extending the service agreement with OPUS 21, with the service fee changes noted, for the <br />period of February 7, 2017 - February 6, 2018. <br />Action: <br />