Title
[Contract] Department of Utilities Utility Payment Lockbox Services
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FileID
File ID: 2026-01049
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute a Professional Services Agreement with Business Recovery Services, Inc dba Bank Up Corporation to process mailed utility bill remittances for the Department of Utilities (DOU) for a maximum five-year term and an amount not to exceed $800,000.
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Contact
Contact: Deanne Neighbours, Logistics Manager, (916) 808-3536, dneighbours@cityofsacramento.org; Chuong (Ryan) Pham, Business Services Division Manager, (916) 808-8995, rpham@cityofsacramento.org; Dalia Fadl, Director, (916) 808-3765, dfadl@cityofsacramento.org; Department of Utilities
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-PRC004260 Business Rec dba Bank Up
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Description/Analysis
IssueDetail
Issue Detail: The City of Sacramento (City) Department of Utilities has solicited lockbox services including invoice and payment processing for payments mailed to the City’s Post Office Box. The City sought a provider who could offer technology advancements in lockbox services such as electronic imaging and reporting and alternative self-pay options for customers. Business Recovery Services, Inc dba Bank Up has been the City’s contractor for lockbox services since 2008.
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PolicyConsiderations
Policy Considerations: In conformance with City Code 3.56.090, City Council approval is required to execute an agreement if the amount expended under an agreement is $250,000 or more.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: The proposed activity is not a project pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(2 and 5). The activities described in this report including a Professional Services Agreement for utility lockbox and mailed payment processing are continuing administrative or maintenance activities, such as purchases or personnel-related activities, and administrative activities that will not result in direct or indirect physical changes on the environment. This activity is not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3).
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Sustainability
Sustainability: The proposed contract is consistent with the 2040 General Plan Policy
PFS-3.1 for the provision of adequate utilities as it will further the City’s efforts to provide reliable water, wastewater, and stormwater drainage utility services.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: On December 17, 2025, DOU advertised a Request for Proposals (RFP) P26141631410 on PlanetBids for Utility Lockbox & Mailed Payment Services. Through PlanetBids, 1805 Suppliers were notified of the solicitation with 25 self-identifying as prospective bidders.
On the due date of January 28, 2026, proposals were received from three firms. Proposals were reviewed and all were deemed responsive. A selection committee comprised of City staff from DOU scored the proposals utilizing the scoring methodology provided in the solicitation which focused on qualifications, experience, and availability. Based on the review, staff recommend moving forward with the top-ranked proposer, Business Recovery Services, Inc., dba Bank Up, to provide the services requested. The scoring for the responsive proposals is as follows:
|
Proposer |
Score |
|
Business Recovery Services, Inc. dba Bank Up |
486 |
|
XBP Americas |
385 |
|
Check Processors |
310 |
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FinancialConsiderations
Financial Considerations: Sufficient funds exist in the proposed Fiscal Year (FY) 2027 DOU Operating Budget to fund the initial $150,000 for the first year of the agreement. Funding for future fiscal years shall be subject to funding availability in the adopted budgets for the applicable fiscal year in an amount not to exceed $800,000 over the five-year term of the agreement. Purchase orders encumbering funds under this agreement will not be created until needs and funding are identified in the applicable budget (operating, capital, multi-operating, or grants).
There are no General Funds allocated or planned for these services.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Business Recovery Services Inc. dba Bank Up is not an LBE. The minimum LBE participation requirement was waived by the Director of Utilities based on a determination that waiver is in the City’s best interest due to the lack of qualified local vendor availability.
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