Item - 2023.GG8.23

The General Government Committee:

1. Received the report (November 22, 2023) from the Interim Deputy City Manager, Corporate Services and the Controller for information.

In May 2021 Council approved a three-year contract with PayIt Inc. with options to extend up to two additional years, which was signed on June 3, 2021.  The partnership with PayIt was meant to improve residents' payment experience and provide access to digital payment alternatives compared to traditional channels, while increasing efficiencies for the City.  More specifically, the objectives of the partnership are: 

1.  Accelerate digital services leveraging a purpose built and cloud-based platform to scale faster and benefit from continuous improvements; 

2.  Offer integrated and modern payment features as well as more payment options for residents and businesses; 

3.  Drive internal efficiencies from reducing paper mail outs to financial processing, reporting and reconciliation supporting the goal of revenue process standardization and centralization; 

4.  Utilize a different business model whereby the City pays fees based on adoption instead of capital investment by shifting risk of implementation and ongoing product enhancements to vendor;

5.  Revenue share from future growth and adoption by other public sector organizations. 

This report for information provide an update on Phase 1 (Revenue Services) of MyToronto Pay (MTP),a City-branded and customized version of PayIt, as the work with Revenue Services Division (RSD) nears completion which included the launch of Property Tax, Utilities, e-Billing, and Pre-Authorized Payments (phase 1) on the platform.  Included are updates on the approach taken with PayIt, key performance metrics and evaluation of various aspects of the partnership against the contract.

In summary, the approach implemented with PayIt was more measured and less ambitious than detailed in the approved report May 2021. There were four reasons for this; a) efforts required to integrate and customize the PayIt platform, b) City capacity and prioritization vis a vis other priority initiative, c) City's evolving strategy towards a 'One TO' experience and how PayIt fits in, d) responding to concerns from Council, specifically vendor-lock-in.

A summary of analysis from five Strategic Value Drivers shows objectives outlined in the May 2021 Report against progress and experience to date.

Table 1.1 Strategic Value Drivers and 2023 Status

(See Table in the Report (November 22, 2023) from the Interim Deputy City Manager, Corporate Services and the Controller)

Conclusions and Next Steps

As the analysis of Key Performance Indicators demonstrates the results are a mix of positive achievements, underperforming on targets and more generally unrealized potential.  While there is room for PayIt to improve aspects of its platform, ensuring vendor(s) are successful and City outcomes are achieved will require greater alignment on the City's digital payment approach and requirements. 

To support this, the Customer Experience Division (CXD) will lead analysis between now and Quarter 2 2024 to summarize lessons learned from the experience with PayIt and develop a City-wide understanding of digital payments requirements.  This work will engage our Technology Services team and key divisions with payments and be augmented by resident engagement and hiring of a third party to help conduct a market analysis and scan to inform a renewed procurement approach. 

Staff will report back to council in Quarter 2 of 2024 to update on this work and recommend a go-forward plan with respect to an extension of the PayIt contract, permitted as part of the original contract terms, and a plan to go back to market through a competitive RFP following this period.  During this period the PayIt platform will not be expanded to other divisions beyond Revenue Services Division.

Once the pre-authorized pay feature for property tax is implemented early in 2024 there will be no further expansion of services on the PayIt platform until the City has completed the competitive procurement referenced above.