SR-02-10-2015-3DCity of City
Santa monlea®
City Council Meeting: February 1 2015
Agenda
To: Mayor and City Council
From: Gigi Decavalles- Hughes, Director of Finance
Subject: Third Modification to Agreement with TransFirst Health and Government
Services, Inc. for Credit Card Processing Services
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a third modification to Contract #9082 in an amount not to exceed $800,000
with TransFirst Health and Government Services, Inc. (TransFirst), a Kansas -based
company, to continue to provide merchant account processor services for credit card
payments related to City fees and services on a month -to -month basis no later than
June 30, 2015. This will result in an amended contract with a new total amount not to
exceed $8,150,000.
Executive Summary
The City currently uses TransFirst Health and Government Services, Inc. for the
majority of its credit card processing services. The current contract expires on March 4,
2015. Staff is in the process of conducting a Request for Proposal process for merchant
processor services. Extension of the current contract's term is necessary to ensure a
prudent and efficient selection process as well as to allow sufficient time for contract
negotiation and transition to a new firm, if required. Staff recommends a third
modification of $800,000, for a total contract amount not to exceed $8,150,000.
Background
The City's current contract with TransFirst Health and Government Services, Inc. was
authorized by Council on January 19 2010. The contract provided a term of five years.
The First Modification of the contract was executed in March 19, 2013 which increased
the contract amount by $3,000,000 and resulted in an amended five -year agreement for
a total amount not to exceed $6,350,000. On September 23, 2014, a Second
Modification to the contract was executed to increase the contract amount by
$1,000,000 which resulted in a five -year amended contract with a new total amount not
to exceed $7,350,000.
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Discussion
The current contract with TransFirst Health and Government Services, Inc. terminates
on March 4, 2015. Staff is in the process of reviewing and evaluating the proposals for
merchant processor services. To ensure a thorough selection process and allow
sufficient time for contract negotiation and to transition to a new firm, if required, an
extension of the current agreement is necessary.
Financial Impacts and Budget Actions
The contract modification to be awarded to TransFirst Health and Government Services,
Inc. is for an amount not to exceed $800,000. Based on credit card usage, payments
are processed and charged to the corresponding account number. Funds are available
in accounts 01221.522230 and 01224.556010 in FY 2014 -15.
Prepared by: Yolanda Nunez, Senior Administrative Analyst
Director of Finance
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Forwarded to Council:
Elaine Polachek
Interim City Manager
Reference:
Modified Contract No. 9082
(CCS)