25M - AGMT - MERCHANT PAYMENT SRVS

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Fourth Amended Agreement for Merchant Payment Services June 19, 2018 Page 2 agreement with Vizant Technologies, LLC, ("Vizant"), for continuous credit card processing costs reduction analysis. This agreement with Vizant was entered into in recognition of the highly commoditized nature of credit card merchant payment processing services in which price, among competent service suppliers, is a primary component of the selection process along with existing systems integrations. The agreement authorized Vizant to lead a City Request For Proposal (RFP) in the event their analysis indicated a potentially realizable long-term savings by re -bidding credit card merchant processing services. During the term of this agreement Vizant's continuous analyses indicated that no long-term net costs savings could be realized when comparing potential competing providers against TSYS's reduced credit card merchant payment processing rate, leaving out Bid costs connected to existing systems integrations & associated replacement costs. Increases in Annual Expenditure Cap: On June 16, 2015, City Council approved a First Amended Agreement with TSYS to extend the term of the existing agreement. The resulting First Amended Agreement (Agreement #A-2015-117) included an increase in the annual expenditure cap to $95,000. However, due to rapid growth in credit card payments made by residents and businesses because of the option to pay online and with the enhancement of the City's Electronic Billing and Payment Presentation, staff anticipated the annual cap to be exceeded by as much as $55,000 at the conclusion of the 2015-16 fiscal year. As such, the annual cap amount was increased to the current $165,000 per year. Beginning November 2016, Treasury commenced a comprehensive phased -upgrade to the City's Municipal Utility Services ("MUS") enQuesta customer service & billing software that supports single sign -on customer access to the enQuesta system, enhanced Electronic Bill Payment & Presentment (EBPP), interactive bilingual voice response (IVR), a mobile app, and real time payment posting. TSYS services directly support and integrate with this upgrade and other key Treasury systems such as the city-wide cashiering system (iNovah) and the walk-up payment kiosk (LD Systems). Additionally, City vendors are in the process of completing a real-time parking citation inquiry system upgrade that will allow cashiers to provide more efficient and expedited service related to the Police Department's new parking citation processor, Data Ticket. In addition, LD Systems, the City's payment kiosk provider is completing a hosting and application upgrade to the City's payment kiosk which will integrate with Data Ticket's inquiry system. Both the Data Ticket inquiry system together with the upgrades to the LD Systems payment kiosk will be concluded in FY 2018-19. Both sets of enhancements are pre -requisites to a future RFP for Payment Card Industry Data Security Standard (PCI DSS) compliant merchant processing services. These services would be in connection with both city-wide walk-in cashiering services and walk-up kiosk payment services. Taken together with the City's existing PCI DSS compliant online payment portal services, addressing PCI DSS compliance with respect to walk-in and walk- up customer payment services will allow the City to attain full PCI DSS compliance across all City payment processing activities. Therefore, staff recommends extending TSYS' contract for one additional year (minimum) with two, one-year renewal options to allow the City time to fully assess the upgraded functionality of the integrated systems and the final completion of the MUS enQuesta program upgrade prior to issuing an RFP for future merchant payment services during the term of this amended agreement. 25M-2