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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MARCH 18, 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 />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2ntl Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />191���1�L�1:TX� <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 (FMSA) Treasury Division is responsible for <br />maintaining all banking related services for the City. Since 1997, the Treasury Division embarked <br />on a program to allow for payment of services through the use of credit cards. A component of <br />banking is payment processing. Currently customers are able to use a credit card to pay City of <br />Santa Ana fees or charges. Acceptance of a credit card as a form of payment involves utilizing a <br />merchant service company. TransFirst presents MasterCard and Visa transactions on behalf of <br />the City for all credit card payments made at City facilities including City Hall, kiosk, Police <br />Department, and Parks Recreation and Community Services. <br />On March 12, 2012, City Council authorized the moratorium of the credit card processing fee in <br />order to attract more on -line payments by customers. In March 2013, the Treasury Division <br />negotiated the reduction of the TransFirst, discount fee from 1.5% - 0% resulting in a savings of <br />over $55,000 which has helped offset City costs. TransFirst has agreed to maintain the reduced <br />rate for the term of this agreement. Given the vendors past performance and cost savings <br />associated with the removal of the discount fee, staff recommends retaining TransFirst for <br />merchant services. <br />At the City Council meeting held on January 7, 2014, the FMSA Treasury Division agendized a <br />renewal agreement with TransFirst for City Council consideration. At the meeting, the City <br />Council approved and authorized the renewal of the agreement for a two year term with <br />TransFirst. After further discussion with the City Attorney's Office, it was determined that the <br />merchant card processing agreement should be updated and approved in conjunction with the <br />consultant agreement. As such, staff is resubmitting the consultant and merchant card <br />processing agreements for City Council approval. <br />25C -1 <br />