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Page 1 of 4 <br />Item #13 <br /> CITY COUNCIL AGENDA REPORT <br /> <br />December 19, 2023 <br />Public Works - Operations Division <br /> <br />TITLE: APPROVE FIRST AMENDMENT TO THE AGREEMENT WITH SMART ENERGY <br />WATER SYSTEMS TO PROVIDE BANKING SERVICES BY INCREASING THE <br />NOT-TO-EXCEED AMOUNT BY $1,077,531 FOR A TOTAL NOT-TO-EXCEED <br />AMOUNT OF $1,638,674 OVER FOUR YEARS <br /> <br />SUMMARY <br />The City currently uses JP Morgan Chase Bank (JPMC) for Citywide banking services, <br />including utility billing payment services in conjuction with BridgePay (the City’s payment <br />processor). In October 2023, the City received notice that BridgePay will no longer be <br />supported effective December 31, 2024. Concurrenlty, Smart Energy Water Systems (SEW), <br />the City’s Customer Service Web Portal for utility billing, had its connection with BridgePay <br />stop working in October. As such, staff is recommending transitioning to SEW’s online <br />payment services; in the interim period, SEW is working on a resolution for the current issues. <br /> <br />The City Council initially awarded a professional services contract to SEW for a customer <br />service web portal software implementation and a five-year technical support agreement that <br />started in April 2017 and expired in 2022. Staff then entered into a new one-year agreement <br />for technical support, which expired on June 30, 2023. In June 2023, the Council approved a <br />second five-year agreement with SEW which includes a software upgrade that is currently <br />underway. <br /> <br />Staff recommends the City enter into a first amendment to the multi-year software agreement <br />with SEW to add an additional scope of service for banking services for the period of July 1, <br />2024, through June 30, 2028, by increasing the not-to-exceed amount by $1,077,531 for a total <br />not-to-exceed amount of $1,638,674 over four years. There are no additional costs to the City <br />associated with this proposal since the bank fees currently paid to JPMC are proposed to be <br />paid to SEW. <br /> <br />RECOMMENDATION <br />Approve and authorize the City Manager to execute the first amendment to the Software <br />Agreement with Smart Energy Water Systems, Inc., to add an additional scope of service to <br />the agreement for banking services by increasing the not-to- <br />exceed amount by $1,077,531 for a total not-to-exceed amount of $1,638,674 covering a <br />period of four years (July 1, 2024, through June 30, 2028).  <br /> <br />BACKGROUND <br />In 2016, the City installed new water meters and automated meter reading capabilities. This <br />project enhanced operational efficiencies in meter reading, customer service, billing, and <br />overall water resource management, including a Customer Service Web Portal by Smart <br />Energy Systems, Inc., DBA Smart Energy Water Systems (SEW), which empowers the City’s <br />water customers to manage their water usage and pay their bills online. The City Council <br />DocuSign Envelope ID: ECD87DF2-0011-4B03-98B4-83FFFE6EE4F0DocuSign Envelope ID: 2151E2A1-A7DD-4CDB-946C-16B728322856