Quality and Productivity Commission 24 th Annual Productivity and Quality Awards Program "Winning with Teamwork!" 2010 ApPLICATION

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Quality and Productivity Commission

24

t h

Annual Productivity and Quality Awards Program

"Winning with Teamwork!"

2010 ApPLICATION

Title of Project (Limited to 50 characters, including spaces):

NAME OF PROJECT: TTC ECOMMERCE ONLINE PAYMENT SYSTEM (TECOPS)

Date of Implementation/Adoption: September 9, 2009

Project Status: 6 Ongoing _ _ One-time only

Did you submit this project before? _ _ Yes _{6 No}

Executive Summary: Describe the project in 15 lines or less using 12 point font. Summarize the problem, solution, and benefits of the project in a clear and direct manner

1 In the past, customers of the Treasurer and Tax Collector (TIC) had limited options to 2 pay their property taxes or business license renewals. The VCheck option, while 3 convenient for taxpayers, still required TIC staff to print paper checks and deposit them 4 manually. In September and November, 2009, the TTC developed and implemented 5 two more payment options, the eCheck option and the Credit/Debit Card option, with an 6 online system called TTC eCommerce Online Payment System (TeCOPS). TIC 7 coordinated with two vendors, SSNet for the front-end application, and Fidelity 8 Information Services (FIS), the Countywide eCommerce vendor, for the integrated 9 solution that bridged the front-end with FIS' payment processing gateway. This 10 application provided a safe and convenient way for our customers to pay property taxes 11 and business license renewal fees online. It also enables customers to inquire about 12 their payment information at any time with the added benefits of reducing walk-in traffic, 13 and satisfying green initiatives by reducing paper handling and meeting all of the 14 County's Strategic Goals. Since 2009, we processed

15 collected over $653 million.

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ESTIMATED/AcTUAL ANNUAL COST AVOIDANCE

$ 57,500

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ESTIMATED/AcTUAL ANNUAL COST SAVINGS

$ 6,200 (3) ESTIMATED/AcTUAL ANNUAL REVENUE $0 221,000 transactions, and (1) +(2)+(3) SERVICE ENHANCEMENT TOTAL ESTIMATED/AcTUAL PROJECT BENEFIT YES $ 63,700

SUBMITTING DEPARTMENT NAME AND COMPLETE ADDRESS (INCLUDE TELEPHONE AND FAX NUMBER)

Treasurer and Tax Collector 500 W. Temple St., Room 437 Los Angeles, CA 90012 213.974.7618 213.217.4974 PROGRAM MANAGER'S NA

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PRODUCTIVITY MANAGER'S~GNA/~TURE (J DATE SIGNED

Sandra Pina

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DEPARTMENT HEAD'S NAME AND SIGNATURE DATE SIGNED

TELEPHONE NUMBER 213.974.7677 TELEPHONE NUMBER 213.974.2108 TELEPHONE NUMBER Mark J. Saladino 213.974.2101

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Annual Productivity and Quality Awards Program

2010 ApPLICATION

4,. Fact Sheet - limited to 3 pages only: Describe the Challenge, Solution, and Benefits of the project, written in plain language. Include a discussion of the technology, links to the County Strategic Plan. The description should identify Performance Measures.

CHALLENGE (suggest Y, to one page)

TTC has been aware of the public's desire to pay for services online. Our customers' options were previously limited to paying by mail, VCheck, phone (tax only) or paying in person by driving to one of our facilities located in the heart of downtown Los Angeles or in Lancaster. During the busy tax seasons, taxpayers paying on the due date became especially frustrated when required to locate and pay for parking, or to wait in long lines to make property tax payments and receive a printed receipt to avoid late payment penalty assessments.

Although some customers used TTC's online VCheck System to make their tax payments, this still required TTC staff to print actual paper checks and make manual deposits. Other taxpayers mailed in their checks with the hope that it was received in time to meet payment deadlines. This resulted in increased phone calls to our Public Service staff to verify that their payments were received. Another opportunity that presented itself with this project is the County's Green Initiative Program that encourages paper reduction. Replacing Vcheck with TeCOPS saved TIC from purchasing special paper check stock and ink cartridges. Since the Department of Public Works (DPW) was also using VCheck for their Waterworks bills, replacing VCheck added the challenge of coordinating DPW's migration to the neweCheck method at the same time as TTC's migration.

Although the County implemented some credit/debit card eCommerce solutions, the TIC implementation was the largest by far. Since 2009, we processed 221,000 transactions, and collected over $653 million. Implementation required customization to comply with the requirements of the Payment Card Industry Data Security Standards and the National

Automated Clearing House Association (NACHA), particularly as they relate to tax payments. Research of these various regulations was coordinated by TTC in collaboration with the eCommerce vendor, our banks, County Counsel and the Auditor-Controller to ensure full compliance with our systems development, Terms of Use and operating procedures, in order to provide this free payment option to our customers. In addition, this implementation would be the first electronic check (eCheck) solution for the County, introducing new challenges with different rules and processes, as well as the coordination with DPW to implement this newest feature simultaneously. Finally, in addition to new programming required by the two vendors, TTC mainframe and PC-based programming enhancements would be required to accommodate new payment options and coordinating mainframe changes with the Internal Services Department (ISD).

SOLUTION (suggest y, to one page)

TTC's primary goal was to provide taxpayers and business owners the option of paying electronically by credit/debit card or eCheck in time for the Property Tax 2009-2010 First

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24

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Annual Productivity and Quality Awards Program

2010 ApPLICATION

Installment due date. TIC redesigned the front-end application that provided customers with a choice of payment types (property tax or business license, with future plans to add others) and a choice of payment methods (eCheck, credit or debit card). Customers view their account balance on the web and choose what they want to pay, and can build their shopping cart with multiple properties to pay with a single transaction. Some highlights of TeCOPS include:

~ Display sample bills and check formats - The sample bills and check formats highlight the

location of the account number, Personal Identification Number (PIN), and banking information to assist customers when entering data.

~ Free service for eCheck payments - TIC provides this service at no cost to our customers.

~ Service Fee calculator - When paying with a credit or debit card, customers can simply

enter a dollar amount early in the process and see the fee based on the card type they plan to use before progressing further into the payment process.

~ System security - Customers validate with a PIN associated with their accounUparcel

number to avoid mistakes or malicious activity. A spam-detecting image verification tool is presented to the customer to type the word they see on their screen.

~ Step-by-step instructions - Provided throughout the process for ease of use.

~ Receipt - A printable receipt and email confirmation of payment is generated after a

successful payment transmission.

~ Online Survey - An optional Online Customer Survey is available at the end of the payment

process to determine customer satisfaction and feedback regarding their online payment experience.

Because property tax payments can be made by a variety of sources, including co-owners, family members and mortgage companies (impound accounts); overpayments can occur more readily than other types of payments. Custom processing was needed for handling taxpayer refunds in a timely and efficient manner, including a new process for the

eCommerce vendor to refund online payments back to the bank account or crediUdebit card used for the original payment. This ability significantly reduced the County's costs in

processing refund transactions. Specifically, the cost to issue a County warrant

approximates $2.00, whereas the cost of an ACH credit approximates 11 cents. In addition, TIC enhanced PC-based and mainframe systems to support the refund process. TIC also built a new PC-based system called eCommerce Payment and Refund Management System (ePARMS) to track online payments, refunds and adjustments. It also provides inquiry

capability for TTC staff, an integral tool in researching customer inquiries and resolving issues.

BENEFITS (suggest 1 to 2 pages)

This program supports the County Strategic Plan Goal 1: Operational Effectiveness, because it maximizes the effectiveness of the County's processes, structure and operations to support timely delivery of customer-oriented and efficient public services. The program also meets the

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Annual Productivity and Quality Awards Program

2010 ApPLICATION

County Values of Customer Orientation and Responsiveness by placing a high priority on meeting our customers' needs with accessible, responsive, quality services and taking needed action in a timely manner. This program also supports the County's Green Initiative Program by converting to an electronic process that reduces and/or eliminates paper and saves costs associated with paper refund checks, and the purchase of special paper check stock and ink cartridges for printing VChecks. By providing customers new payment options, such as the free eCheck option, TIC has significantly increased customer convenience, and provide 24-hour payment access, while maintaining customer privacy and security.

Our Public Service Unit regularly reviews comments from our online Customer Survey and many suggestions have been subsequently implemented to further enhance the process from the customers' viewpoint. Some positive feedback received from customers recently:

a This was the second time using this service and now I completed the process in less than

five minutes. thank you

a It's even better now; the info needed for an e-check is less than a few years ago. I like it.

a This is the BEST way to pay my taxes. Whoever designed it get a 10 from me. Thanks.

a Why pay any other way? This is easy and convenient.

a This website is sweet!! ..lt's my first time using it, and its very user friendly. Thanks! a Nice work... pretty slick for a municipal service!

a The website was perfect and quick to find my exact amount due for payment. a Excellent service and I am very happy!

a I really thought this was the best online paying experience for something that would have

seemed to be complicated in theory.

a This method was very convenient & easy to use. It did not have all these confusing and complicated steps to follow. All the information was clear & easy to obtain.

a Actually...it's pretty easy...even for a computer neophyte like me.

a Great; I love the quick and easy way to pay my taxes this is the best way to go Thanks a

million!!!! enjoy

a Getting to the Post Office is difficult today as it is snowing. eCheck is much better.

a Please do not take this wonderful option away.

a You listened and have made great improvements. Thank you.

a This was amazingly easy. Fantastic, what use to take me half an hour and a trip to the post

office is now

5

minutes for six properties. All county organizations should be this helpful.

a Best government website I have ever used!! Easy, fast and direct. Good job!!!

The success of the new service offering can be summed up by our customers' use of these payment options. Since the September, 2009 implementation, TeCOPS has collected over $653 million in online payments for property taxes and business license renewals, which is 95% of all online payments received through eCommerce County-wide.

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Annual Productivity and Quality Awards Program

2010 ApPLICATION

Cost Avoidance. Cost Savings. and Revenue Generated (Estimated Benefit): Use this form and provide details on the estimated/actual. benefits. As a suggestion, work with your fiscal staff.

Cost Avoidance: Anticipated costs that are eliminated or not incurred as a result of program outcomes. Cost Savings: A reduction or lessening of expenditures as a result of program outcomes.

Revenue: Increases in existing revenue streams or new revenue sources to the County as a result of program outcomes. (1) ESTIMATED/AcTUAL ANNUAL COST AVOIDANCE $ 57,500 (2) ESTIMATEDIACTUAL ANNUAL COST SAVINGS $6,200 (3) ESTIMATEDIACTUAL ANNUAL REVENUE $0 (1) + (2) + (3) TOTAL ESTIMATEDIACT UAL BENEFIT $63,700 SERVICE ENHANCEMENT PROJECT [8J

Estimated/Actual Annual Cost Avoidance:

If TTC were to implement an eCommerce application in-house without utilizing the Countywide eCommerce vendor, Fidelity Information Services (FIS), TIC would be required to perform annual/periodic security risk assessments, including application risk assessments as required by the County's security standards and Payment Card

Industry (PCI). The estimated cost for these types of assessments range from $15,000 to $100,000 and the average of the cost for an annual TIC assessment is $57,500. Estimated/Actual Annual Cost Savings:

By implementing TeCOPS for online payment processing and providing the eCheck and credit/debit card options for Property Tax and Business License Renewals, and

replacing the VCheck paper check processing method, TIC's actual annual cost savings totaled $6,200 by eliminating the following costs:

~ Paper check refund cost; ~ Blank check stock cost;

~ Ink Cartridges for printing paper checks; and

~ Cost of processing and mailing paper check refund payments. Service Enhancement Project:

By providing detailed instructions, sample bills and check images, contact phone numbers and email addresses on every webpage, we provide a worry free payment experience that will strengthen customer confidence. To better serve our customers, this implementation set the foundation for a TIC "One-Stop" center to pay a variety of TTC services, such as, personal property taxes, public health renewal fees, and payments for delinquent accounts as a result of referrals for collection from other County Departments. Plans are proceeding to add each of these online payment options to TeCOPS.