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Montrose council approves switch from PSN to new payment service; residents to pay convenience fees
Summary
Council approved staff recommendation to replace PSN with a utility-billing vendor's payment option and sign the contract, moving toward a January 1 rollout; staff recommended that residents pay convenience fees and to run outreach to customers about the change.
Staff presented a procurement recommendation to replace PSN with a payment option promoted by the city's utility-billing software. The packet compared two models: (1) the city pays convenience fees and (2) residents pay fees at the time of transaction. Staff noted recurring problems with PSN over the past year and cited peer cities passing fees to customers (some charging 3%).
Council discussed rollout work, account migration and the need for a mailer and customer outreach; staff recommended residents pay the convenience fee and asked for a motion to accept the new vendor so contracting and onboarding could start with a target active date of Jan. 1. The council approved the recommendation (motion passed 5-0). Staff will coordinate communications to customers and outline fee and automatic-pay options.
