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CITY COUNCIL MEETING DATE: <br />JUNE 16, 2015 <br />TITLE: <br />AMENDMENT TO AGREEMENT FOR MERCHANT <br />PAYMENT SERVICES WITH <br />TRANSFIRST, LLC <br />(STRATEGIC PLAN NO. 7, 5F) <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />d"C• R, <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 />1. Authorize the City Manager and the Clerk of the Council to execute an amendment to the <br />existing Agreement (Agreement #A- 2014 -071) with TransFirst LLC, for merchant payment <br />services covering October 1, 2013 through June 30, 2016, with the option to extend one <br />additional year (July 1, 2016 through June 30, 2017) upon a written request executed by the <br />City Manager, subject to non - substantive changes approved by the City Manager and City <br />Attorney in an amount not to exceed $95,000 annually for merchant payment services. <br />2. Approve payment for merchant payment services, not to exceed $24,000 for expenditures <br />through the close of fiscal year 2014 -15. <br />DISCUSSION <br />The Finance and Management Services Agency Treasury and Customer Service Division <br />( "Treasury") is responsible for maintaining all banking related services for the City. Beginning <br />1997, the Treasury embarked on a program to allow for payment of services through the use of <br />credit cards. A component in allowing the use of credit cards by patrons banking is the <br />establishment of payment processing. Currently customers are able to use a credit card to pay <br />City of Santa Ana fees or charges. Acceptance of a credit card as a form of payment involves <br />utilizing a merchant service company. TransFirst presents MasterCard and Visa transactions on <br />behalf of the City for all credit card payments made at City facilities including but not limited to <br />City Hall Cashiering Counters and Kiosk, Police Department, and various Parks Recreation and <br />Community Services buildings. <br />On March 12, 2012, City Council authorized the moratorium of the credit card processing fee in <br />order to promote electronic payments and attract more on -line payments by customers. In March <br />2013 Treasury negotiated the reduction of the TransFirst discount fee from 1.5% to 0% resulting <br />in a savings of over $55,000 which assisted in offsetting existing City expenditures. TransFirst <br />has agreed to maintain the reduced rate for the term of this agreement. Given the vendor's past <br />251 -1 <br />