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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 19, 2018 <br />TITLE: <br />AUTHORIZE FOURTH AMENDED <br />AGREEMENT FOR MERCHANT <br />PAYMENT SERVICES WITH ISYS <br />MERCHANT SOLUTIONS, LLC <br />(FORMERLY TRANSFIRST, LLC) <br />(STRATEGIC PLAN N?. 4, 1; 7,5F) <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />IF-11WW0i1gWi <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1st Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute a one-year amended agreement <br />with TSYS Merchant Solutions, LLC, ("TSYS") effective July 1, 2018 through June 30, 2019, with <br />two, one-year extension options at the election of the City, for an amount not to exceed $165,000 <br />annually subject to non -substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />The Treasury & Customer Service Division of the Finance and Management Services Agency <br />("Treasury") is responsible for maintaining all monetary transactions related to City services. <br />Currently, customers may utilize a credit card to pay City of Santa Ana assessed taxes, permits, <br />fees, fines and other monies due for City services. Acceptance of a credit card as a form of <br />payment involves utilizing a merchant payment services company such as TSYS (formerly <br />known as TransFirst, LLC). TSYS currently presents MasterCard and Visa transactions on behalf <br />of the City for all credit card payments made at City facilities, including but not limited to: City <br />Hall Cashiering Counters, Payment Kiosk, Police Department Traffic and Records Divisions, <br />Santa Ana Zoo, and the City's Smart Parking Meter program. <br />Moratorium on Imposition of Credit Card Processing Fees: On March 12, 2012, City Council <br />authorized a moratorium on the imposition of City credit card processing fees in order to promote <br />electronic payments and attract more on-line payments by customers. Subsequently, Treasury <br />negotiated the reduction of the TSYS' predecessor's PRI's discount fee from 1.5% to 0% <br />resulting in a savings of over $55,000, which assisted in offsetting existing and future City <br />expenditures. Pursuant to TSYS' contract (Agreement #A-2014-071), TSYS agreed to maintain <br />the reduced rate for the full term of said agreement, and all extensions thereto. <br />Credit Card Processing Costs Reduction Analysis: Thereafter, in lieu of releasing an RFP for <br />continuing merchant payment processing services, City Council authorized a three-year <br />25M-1 <br />