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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JANUARY 7, 2014 <br />TITLE: <br />AGREEMENT FOR MERCHANT <br />PAYMENT SERVICES WITH <br />TRANSFIRST, LLC <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />usage-Iwo, <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" 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 the Clerk of the Council to execute the attached agreement with <br />TransFirst LLC, approving compensation not to exceed $70,000 annually, for two one -year terms <br />commencing October 1, 2013 and continuing through September 30, 2015, subject to non - <br />substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />The Finance and Management Services Agency Treasury Division is responsible for maintaining <br />all banking related services for the City. Since 1997, the Treasury Division embarked on a <br />program to allow for payment of services through the use of credit cards. Currently, customers <br />are able to use a credit card to pay City of Santa Ana fees or charges. Acceptance of a credit <br />card as a form of payment involves utilizing a merchant service company. TransFirst presents <br />MasterCard and Visa transactions on behalf of the City for all credit card payments made at City <br />facilities including City Hall, kiosk, Police Department and Recreation and Community Services. <br />On March 12, 2012, City Council authorized the moratorium of the credit card processing fee to <br />promote on -line payments and gain payment processing efficiencies in the Treasury Division. <br />Since 2012 the number of on -line payments has increased by 50 %. Furthermore, during this last <br />year the Treasury Division negotiated the reduction of the TransFirst, LLC discount fee from <br />1.5% to 0% resulting in an annual savings of over $55,000 which has helped offset City costs. <br />TransFirst has agreed to maintain the reduced rates for the term of this agreement. Given the <br />vendors past performance and cost savings associated with the removal of the discount fee, staff <br />recommends retaining TransFirst for merchant services. <br />25C -1 <br />