sr-063009-1bCity Council Meeting: June 30, 2009
Agenda Item: I~~
To: Mayor and City Council
From: Carol Swindell, Department Director
Subject: Credit Card Processing Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to reinstate the
contract with Transfirst, LLC, to provide credit card payment processing services to the
City for payments by members of the public to the City for fees and services and to
extend the term of the contract to December 31, 2009.
Executive Summary
Transfirst, LLC, has provided credit card processing services to the City since 2003. As
members of the public have been afforded more options to pay for fees and services
on-line, over the counter, by telephone and by mail using credit cards, the volume of
credit card transactions has increased significantly. Since introducing credit card
payment as a form of payment for parking structures in November 2008, for example,
the number of credit card transactions has increased by 750%, from 3,500 to 25,600 per
month. City staff has begun a formal competitive process to select a provider of credit
card processing services for the City for a term of five years and expects to complete
that process by the end of this summer. Staff is asking that Council approve an
extension of the Transfirst contract to December 31, 2009 to ensure consistent service
until a new vendor is selected.
Discussion
In February 2008, Council authorized a modification to the City's agreement with
Payment Resources International, predecessor in interest to Transfirst LLC, to extend
the term to December 31, 2008. That term was established to give staff time to conduct
a competitive process in calendar year 2008. With the retirement of the Revenue
Manager in August 2008, extended vacancies in several key staff positions due to the
hiring freeze, the demands on staff resources related to implementation of a Citywide
cash receipting system, and the addition of utility billing to the division, the competitive
process for credit card payment process was delayed. A request for proposal has now
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been issued and staff expects to come back to Council within 90 days for approval of a
services provider. In the meantime, in order to ensure consistent customer service and
process credit card transactions, an extension of the Transfirst, LLC, contract is
necessary.
Financial Impacts & Budget Actions
There is no incremental financial impact or associated budget action required as a result
of this action to reinstate and extend the agreement between the City and Transfirst to
provide credit card processing services to December 31, 2009.
Prepared by:
Pamela McGarvey, Acting Revenue Manager
Approved:
f„tt..Carol Swindell
Director of Finance
Forwarded to Council:
~mont Ewell
Manager
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Reference Contract No.
9082 (CCS).