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Home My WebLink About25I - AGMT - PAYMENT SRVSCITY COUNCIL MEETING DATE: JUNE 16, 2015 TITLE: AMENDMENT TO AGREEMENT FOR MERCHANT PAYMENT SERVICES WITH TRANSFIRST, LLC (STRATEGIC PLAN NO. 7, 5F) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: d"C• R, ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Authorize the City Manager and the Clerk of the Council to execute an amendment to the existing Agreement (Agreement #A- 2014 -071) with TransFirst LLC, for merchant payment services covering October 1, 2013 through June 30, 2016, with the option to extend one additional year (July 1, 2016 through June 30, 2017) upon a written request executed by the City Manager, subject to non - substantive changes approved by the City Manager and City Attorney in an amount not to exceed $95,000 annually for merchant payment services. 2. Approve payment for merchant payment services, not to exceed $24,000 for expenditures through the close of fiscal year 2014 -15. DISCUSSION The Finance and Management Services Agency Treasury and Customer Service Division ( "Treasury") is responsible for maintaining all banking related services for the City. Beginning 1997, the Treasury embarked on a program to allow for payment of services through the use of credit cards. A component in allowing the use of credit cards by patrons banking is the establishment of payment processing. Currently customers are able to use a credit card to pay City of Santa Ana fees or charges. Acceptance of a credit card as a form of payment involves utilizing a merchant service company. TransFirst presents MasterCard and Visa transactions on behalf of the City for all credit card payments made at City facilities including but not limited to City Hall Cashiering Counters and Kiosk, Police Department, and various Parks Recreation and Community Services buildings. On March 12, 2012, City Council authorized the moratorium of the credit card processing fee in order to promote electronic payments and attract more on -line payments by customers. In March 2013 Treasury negotiated the reduction of the TransFirst discount fee from 1.5% to 0% resulting in a savings of over $55,000 which assisted in offsetting existing City expenditures. TransFirst has agreed to maintain the reduced rate for the term of this agreement. Given the vendor's past 251 -1 Agreement For Merchant Payment Services with TransFirst, LLC June 16, 2015 Page 2 performance and cost savings associated with the removal of the discount fee, staff recommends retaining TransFirst for merchant services and adjusting agreement compensation to reflect increased utilization of electronic and on -line payments by customers. On March 18, 2014, City Council approved a total two year $140,000 agreement with TransFirst for the period of October 1, 2013 through September 30, 2015. The agreement includes a $70,000 per year cap. However, due to the growth in credit card payments, staff anticipates the annual cap to be exceeded by $24,000 during the current fiscal year 2014 -15. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal No. 7 Team Santa Ana, Objective No. 5F (Explore opportunities to engage with outside agencies, both private and public, to share information and increase efficiencies). FISCAL IMPACT 1. Funds in the amount of $95,000 in account no. (various- 62300) will be budgeted and available, upon Council approval of the fiscal year 2015 -16 budget, and for fiscal year 2016 -17 upon exercise of the one year extension option to the contract on allocated basis in various departmental accounts. 2. Funds in the amount of $24,000 are budgeted and are available in account no. (various - 62300) allocated among various departmental accounts for fiscal year 2014 -15. APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services Agency /,° Exhibit 1 Agreement WH 251 -2 AMENDMENT TO AGREEMENT THIS AMENDMENT TO AGREEMENT, is entered into on this 17th day of June 2015, by and between TransFirst, LLC, (hereinafter "Consultant'), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "City "). RECITALS: A. The parties entered into a payment processing services agreement (Agreement #A- 2014 -071) dated April 18, 2014 (hereinafter "said Agreement') by which Consultant has provided payment processing services to the City. B. The Term of said Agreement was two (2) years effective as of October 1, 2013 and ending September 30, 2015, with the acknowledgment that City had received prior payment processing services from Consultant prior to the effective date of said Agreement and intended said Agreement to cover payment for prior unpaid services beginning October 1, 2013. C. In accordance with the terms and conditions of said Agreement, the parties wish to amend the Tenn to provide for an additional period ending June 30, 2016 with an option, exercisable by the City, to renew said Agreement for an additional one (1) year period covering July 1, 2016 through June 30, 2017. D. The parties also wish to amend Compensation for the original Term and provide for additional sums to be expended for the additional nine (9) month period of October 1, 2015 to June 30, 2016, and in the event that the City exercises the option to renew the contract for a subsequent additional one (1) year period. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: Section 2 of said Agreement, "COMPENSATION" shall be amended as follows: a. City agrees to pay, and Consultant agrees to accept as total payment for its services, the rates and charges identified in Exhibit A. The total sum to be expended for the period from October 1, 2013 through June 30, 2015 shall not exceed $190,000.00. The total sum to be expended under the third year of this Agreement from July 1, 2015 through June 30, 2016 shall not exceed $95,000.00. The total sum to be expended under the additional option period shall not exceed $95,000.00. 2. Section 3 of said Agreement, "TERM" shall be amended as follows: This Amendment to Agreement shall commence on June 17, 2015 and terminate on June 30, 2016, unless City exercises its option to extend the Agreement for an additional one (l) year period ending June 30, 2017, or unless terminated earlier in accordance with Section 12 of this Agreement. 251 -3 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: Lisa Storck Assistant City Attorney RECOMMENDED FOR APPROVAL: FRANCISCO GUTIERREZ Executive Director of Finance and Management Services CITY OF SANTA ANA DAVID CAVAZOS City Manager CONSULTANT InfoSend, Inc. RUSSREZAI Chief Operating Officer Tax ID # 363- 0748516 251 -4 TRA$NsFI RST- Rats Rovlow Agreement MotniYgnl Numbnrd: -�' 1�1 657418898008226504i09g800 818"OJ�4}A15g9 0 1 20 Merchant Nuclei CI ,p�_N_Tg q q Conflict Netnet — """`""`�`�"` gN F MANCMA Phone #. 714.047-5442 FoK #: .,.......,_.w.... Date atRagnastt ., �2t2H/2013, ,� pats Proposed:( ��2/28li013 performed Dy: _, Pater Ituon,^,� a,,,,. pate Anosplad:[---Zzzzj arrant Rarea e e INS unl Rates,, P ritem Fog;T;154r1 lylMLIgk M n F.m1 SigO,. Beach DOVa e. Month) Slotoment Fan: 5.00 Annual Fee: D. V�MVC.Dtha PARA Fee .25 VolceAuth 40,45 Retriever Request -' $4.60 C ba, oh Fee i5:a0 Morithh,$oArlixtrair ".':. ... T5,00 Pin DOW Trans Poo D2l; Amex Aulh roe '- "015' "' ' Pro nsad Rol lm and phrahmurit Rate: Per Item ii : $100000 8mach DOVar Monthly Statem F t —Go— 0.60 Annual Fae .DO V.K.om Whft- Voloo Auth 40,45 abt 1 Rm oa ,5D i5:a0 -. nlh BeMea F TUD Iri DetYl T Poo - 26 proposed rate$ are valid for 80 days. limes we Whiner to ¢hmlge eaegd an MaA84estarCmN[NSaovw Irawdowga Marease(s). In wolorCregon at Trampeotb agmament to lower MNOIIA A'a 01011 as dWSm@ad ahova, Merchant Agnes litah (A) eta folial Tormof MOmhart'e Marahant PracasalYg Agmomontwill cenllnha until tint First (tat) annhalev y of ma data Mamaunt axacules INS farm amtwIY autwalwly mmw to suncesswe am (1) year {wr(Wa (each a `ROnawW TOW), amass A panY to the Merchant Prcadsaing Agmaniont provides the mho; panics wah notion of itsIAmnt not to rallowthn AgrimAcwt at least Thirty (30) days pnprto the nAPINIt nmf too Won eunantlornu end (8) torrNnaeon al the Merchant Pmenshl0 Agreement prior to expiration at the Initial TOM ar any RahoowolTevm such ieivit In has assessment of an owwr tmrmmatton too agaalat Merchant in an amnust equal 10 the omalar of p) the avnraga arm" Processing toss aharond I0 Merchant for the p(miom 12 morlaw (0r allnh ahadar ttmo it the merchant 11na timdaaaed for 639 elan 12 mOntha) moiitried by the numtrnrof malthi mmeimng uadar the Merchant Parimssit Armenwnt, of NI $W.. Momnanl adurovdedgesand agrees that 010 "Wes etrrra hra nmt a parrah 1. bat What a Mum" ootngtlaaon of the financial ham, caused by Via any termination of the Merchant PmceaalagAgmement by the Warrant Any nYOdiliceltrnra w atma lama, iw %Wton or aervislaa, to tNadaranont deems vunw,ea$ rom n,,.m �„n s.n...iw ,Exhibit/ 251 -5 251 -6