SR-021208-1D~_
tYo, City Council Report
Santa Moniea
City Council Meeting: February 12, 2008
Agenda Item: 1 _._. D
To: Mayor and City Council
From: Carol Swindell, Director of Finance
Subject: Modify Agreement with Payment Resources International for Credit Card
Payment Processing and Appropriate Additional Funds for FY2007-08.
Recommended Action
Staff recommends that the City Council:
1) authorize the City Manager to negotiate and execute a modification to the City's
agreement for credit card payment processing with Payment Resources
International for an increased amount not to exceed $560,000; and
2) appropriate additional funds for FY2007-08.
Executive Summary
To ease queuing lines and provide options for customers exiting the Downtown
structures, staff is implementing automated credit card payment services at the parking
structure exits: Staff recommends that the City's agreement with Payment Resources
International, which currently processes all of the City's credit card payments, be
modified to include this additional service. With this addition and the increased volume
of credit card payments, the total expenditure for credit card processing Citywide is
estimated to be $560,000 through December 2008. Additional appropriation authority
of $102,000 is required to cover the additional costs for the current fiscal year.
Discussion
The City has utilized Payment Resources Ihternational to process credit card payments
since 2003. The City accepts credit card payments for utility, parking citation, and
business license payments as well as planning fees, recreation class fees, permits and
other services offered by the City. As credit cards have become a more widely-used
form of payment, the costs of accepting credit cards as a form of payment has also
increased.
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Credit card payments are also proposed to facilitate traffic exiting in the City's parking
structures. The City's parking structures serve over 3.6 million visitors annually, up from
3 million in 2002. Revenue from daily parkers is expected to be $5.4 million in FY2007-
08. The two most significant operational challenges at these facilities are
accommodating peak exit demand and ensuring the integrity of the revenue collection.
Allowing customers to pay with credit cards will help with both, as well as providing
customers with a benefit.
Revenue control equipment has the capability to accept credit card payments, along
with "free" tickets and monthly cards in the exit lanes that do not require cashiers.
These lanes move faster and reduce overall exit delays. In addition, many short-term
delays are caused when patrons do not have cash to pay tickets once they get to the
exit; these delays can be eliminated for customers that have credit cards.
With the addition of credit card processing in the parking structures, the fiscal
expenditure for credit card processing is expected to increase to $360,000 in FY2007-
08. The City's current contractor, Payment Resources International, can implement the
change in a timely manner. Since Payment Resources International has provided credit
card services to the City for the past four years, City staff will conduct a competitive
process for these services in calendar year 2008.
Financial Impacts & Budget Actions
Credit card processing costs are currently budgeted in the City's General Fund and
Water Fund. Citywide credit card payment processing service charges are estimated to
be at $360,000, necessitating an additional appropriation for FY2007-08 of $102,000 at
account 01224.544390. Budget authority for future years will be included in the
respective Proposed Budget for Council's review and adoption.
Prepared by:
Eva U'Ren, Revenue Manager
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Approved:
Carol Swindell
Director of Finance
Forwarded to Council:
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Reference Contract
No. 8886 (CCS).