Memorandum

City of Lawrence

Finance Department

TO:	David L. Corliss, City Manager
FROM:	Becky Jones, Assistant Finance Director
CC:	Debbie Van Saun, Assistant City Manager
Date:	July 11, 2007
RE:	Replacement of utility payment processing hardware

Background

In a memorandum dated June 4, 2007 concerning the purchase of the interactive voice response system (IVR), the Finance Department informed the Commission that the City’s payment processing system is suffering from frequent breakdowns requiring additional staff time to process utility payments mailed to our lock box. A total of $25,000 was included in the 2007 budget for the replacement of the system.

Analysis

NCR has been in business for over 115 years. They are the leading provider of image item processing solutions with over 600 processing sites around the world.  By replacing the current machine with another NCR product, the City will be able to utilize the software that’s already integrated with the City’s cash receipts system. The new scanner/processor, an iTRAN 3000t, will process 200 documents per minute, as well as provide greater efficiency through improved technology.  Currently staff must sort utility payments by net, gross, partial and multi-payments prior to running the payments through the machine.  The iTRAN 3000t eliminates the pre-sort requirement to two categories:  “checks only” and everything else.  This will significantly reduce staff time and increase efficiency.

The cost of the iTRAN 3000t is $23,887. The quote includes the front and rear image scanner/processor with endorser, an autofeed hopper, on-site installation and training, and a 90 day warranty.

Recommendation

The Utility Billing Division of the Finance Department has a total of $75,000 budgeted for computer equipment in 2007.  A total of $53,635 has been authorized to spend for the IVR system. The total system purchase price of the iTRAN 3000t is $23,887.  The additional $2,522 will be reallocated from a $7000 savings on a vehicle replacement from earlier in the year.  It is recommended that the Finance Department be authorized to spend approximately $23,887 for the iTRAN 3000t.