HomeMy WebLinkAboutCS Electronic Payment Acceptance Services____________________________________________________________________________________
FOR CITY CLERK ONLY
File No.: 4-3-824
Council Meeting: 04/15/2019
Disposition: Resolution 14657
Agenda Item No: 4.c
Meeting Date: April 15, 2019
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community Services
Prepared by: Catherine Quffa,
Management Analyst
City Manager Approval: ______________
TOPIC: AGREEMENT FOR ELECTRONIC PAYMENT ACCEPTANCE SERVICES WITH
ELAVON, INC.
SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT
WITH ELAVON, INC. FOR ELECTRONIC PAYMENT ACCEPTANCE SERVICES FOR
THE COMMUNITY SERVICES DEPARTMENT IN AN AMOUNT NOT TO EXCEED
$200,000
RECOMMENDATION:
Adopt a resolution authorizing the City Manager to execute an agreement with Elavon, Inc. for electronic
payment acceptance services for the Community Services Department in an amount not to exceed
$200,000 (a savings as compared to our current costs for these services).
BACKGROUND:
Since 2003, the Community Services Department has used software-based programs to administer
contract classes, City-managed programs, pool memberships, park and facility reservations, child care
programs and all Department customer-based transactions. These systems allow the City to better serve
the community by providing easy enrollment and payment options for City-managed programs. A
cornerstone of this system is the ability to accept and process credit card payments.
In 2016, the City selected PerfectMind, Inc. to provide these services. The decision to use PerfectMind
was based off several factors, which are outlined in the November 7, 2016 City Council Agenda Report.
When the City first implemented the PerfectMind software in 2017, it focused on ensuring that the user
interface was working smoothly. The City decided to pursue a temporary payment processing solution
and selected PaySafe Merchant Services Corporation, frequently used by PerfectMind, while the
integrations with additional payment processors was being fully tested and developed.
Now that the City’s PerfectMind platform is up and running and PerfectMind has fully developed its
payment processor integrations, the City is revisiting its payment processing options.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
ANALYSIS:
Over the past few months, the City has met with other local government agencies who have been using
both PerfectMind and Elavon since 2016, including the City of Roseville. These agencies provided
positive reports on the integration of the two systems and consistently mentioned the favorable rates
provided to local government agencies by Elavon.
In 2010, Elavon was awarded a contract from the California State Department of General Services,
Procurement Division, in a competitive bid process. Local government agencies can sign on to this Master
Services Agreement, included as Attachment 2, and receive electronic payment acceptance services at
the contracted prices offered to the State of California. Per the City’s Purchasing Policy, purchases made
under a cooperative purchasing program, such as this one, are exempt from the City’s competitive bidding
procedures.
The electronic payment processing rates that Elavon provides to local government agencies offer a high
level of transparency. Their pricing model has three components:
1. Interchange fee: assessed per transaction and paid to the bank that issues the credit card (W ells
Fargo, Bank of America, etc.)
2. Assessment fee: assessed per transaction and paid to the credit card brand (MasterCard, Visa,
etc.)
3. Elavon fee: $0.025 for transaction
The interchange and assessment fees are determined by the issuing banks and credit card brands.
These fees are complex, include hundreds of variable rates and are difficult to predict. On average, the
City currently pays 2.96% and $0.20 per transaction through PaySafe. With Elavon, that will drop to an
average of 2.3% and $0.025 per transaction. The Childcare program currently uses a different reservation
platform and payment processor than the Recreation program. Starting on July 1, 2019, Childcare will
transfer its programs to the PerfectMind platform, and additionally to the same payment processor used
for the recreation programs. Combined, the Recreation and Childcare programs have historically paid an
average of $110,000 annually in credit card fees. By switching both programs to Elavon, the City would
save approximately $10,000 per year over current expenses.
Staff recommends that the City Council authorize the City Manager to execute an agreement with Elavon,
as detailed in the resolution included as Attachment 1. The State of California’s Master Services
Agreement with Elavon officially expires on May 31, 2019. The State has issued a twenty-four (24) month
extension of the terms for any local government agency that subscribes to the Master Services
Agreement as an Authorized User prior to the end of the agreement.
Through the City Council’s approval, the City will execute a twenty-five (25) month agreement with
Elavon, Inc. for electronic payment acceptance services for the Community Services Department in an
amount not to exceed $200,000.
FISCAL IMPACT:
Upon execution of the proposed agreement, the estimated annual cost, based on the projected volume
of transactions, is $90,000, with $10,000 in contingency, for a total 2 year not to exceed contract amount
of $200,000. This will be a savings over our current costs for these services. Due to the ambiguity of
interchange and assessment fees, as well as the potential for the Community Services Department to
increase revenue in the next two (2) years, it is difficult to predict the exact cost of Elavon’s services with
more specificity. Based on this estimate, sufficient funds are available in FY 2018-19 in the Recreation
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Revolving Fund (fund no. 222) and the Child Care Fund (fund no. 208). Additionally, sufficient funds have
been requested for appropriation in Funds 222 and 208 for FY 2019-20.
RECOMMENDED ACTION:
Adopt a resolution authorizing the City Manager to execute an agreement with Elavon, Inc. for electronic
payment acceptance services for the Community Services Department in an amount not to exceed
$200,000.
OPTIONS:
The City Council has the following options to consider on this matter:
1. Adopt resolution as proposed, approving an agreement with Elavon, Inc.
2. Adopt resolution with modifications.
3. Direct staff to return with more information.
4. Take no action.
ATTACHMENTS:
1. Resolution
2. Elavon, Inc. Master Services Agreement and Amendments 1 – 4 with the California State
Department of General Services, Procurement Division to provide Electronic Payment
Acceptance Services
3. Selected Services Signature page and Standard Agreement 213 Form
Attachment 1
RESOLUTION NO. 14657
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AUTHORIZING THE CITY MANAGER
TO EXECUTE AN AGREEMENT WITH ELAVON, INC. FOR ELECTRONIC PAYMENT
ACCEPTANCE SERVICES FOR THE COMMUNITY SERVICES DEPARTMENT IN AN
AMOUNT NOT TO EXCEED $200,000
WHEREAS, on December 15, 2016 the City of San Rafael entered into an agreement with
PerfectMind, Inc. to provide software for the registration and management of recreation programs,
facility bookings and childcare programs; and
WHEREAS, the PerfectMind platform offers the City of San Rafael the flexibility to choose
its own payment processor to accept and process credit card payments; and
WHEREAS, the Community Services Department has utilized PaySafe Merchant Services
Corporation since August 1, 2017 for its electronic payment acceptance services; and
WHEREAS, Elavon, Inc. has a Master Services Agreement with the California State
Department of General Services, Procurement Division and can thereby provide local government
agencies with a lower processing rate than the City of San Rafael currently receives from PaySafe
Merchant Services Corporation; and
WHEREAS, the City of San Rafael can secure these lower processing rates through May
31, 2021 if it executes an agreement under Elavon, Inc.’s California State Master Services
Agreement prior to May 31, 2019.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Rafael
hereby authorizes the City Manager to execute an agreement with Elavon, Inc. pursuant to the State
of California Master Services Agreement, for electronic payment acceptance services for the
Community Services Department for a twenty-five (25) month term and totaling an amount not to
exceed $200,000, in a form to be approved by the City Attorney.
I, Lindsay Lara, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution
was duly and regularly introduced and adopted at a regular meeting of the City Council of the City
of San Rafael, held on Monday, the 15th day of April 2019, by the following vote, to wit:
AYES: Councilmembers: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: Councilmembers: None
ABSENT: Councilmembers: None
Lindsay Lara, City Clerk
STATE OF CALIFORNIA - DEPARTMENT OF GENERAL SERVICES
STANDARD AGREEMENT AGREEMENT NUMBER PURCHASING AUTHORITY NUMBER (If Applicable)
STD 213 (Rev. 02/2019)
1. This Agreement is entered into between the Contracting Agency and the Contractor named below:
CONTRACTING AGENCY NAME
City of San Rafael
CONTRACTOR NAME
Elavon
2. The term of this Agreement is:
START DATE
May 1, 2019
THROUGH END DATE
May 31, 2021
3. The maximum amount of this Agreement is:
$ 200,000
4. The parties agree to comply with the terms and conditions of the following exhibits, which are by this reference made a part of the Agreement.
EXHIBITS
TITLE
PAGES
Exhibit A
Scope of Work
6
Exhibit B
Budget Detail and Payment Provisions
3
Exhibit C *
General Terms and Conditions
9
Exhibit D
Special Terms and Conditions
17
Exhibit E
Fees and Costs
14
Exhibit F
Equipment and Software
6
Exhibit G
Agreement for Merchant Processing Services Acceptance
17
#Lena snawn wnn un us1ensrc i -v, are nereay mcorporarea oy rererence ana made part or this agreement as it attached hereto. These documents can be viewed at
https //www dgs ca gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-FolderlStandard Contract Language
IN WITNESS WHEREOF, THIS AGREEMENT HAS BEEN EXECUTED BY THE PARTIES HERETO.
CONTRACTOR
CONTRACTOR NAME (if other than an individual, state whether a corporation, partnership, etc.)
Elavon, Inc.
CONTRACTOR BUSINESS ADDRESS CITY I STATE ZIP
462 Bearcamp Road Louisville KY 40272
PRINTED NAME OF PERSON SIGNING TITLE
Beverly Baker Client Executive
CONTRACTOR AUTHO ZED SIGNATURE DATE SIGNED
� I A LAD/ 9
y - 2 - %2q Paqe 1 of 2
STATE OF CALIFORNIA - DEPARTMENT OF GENERAL SERVICES
STANDARD AGREEMENT AGREEMENTNUMBER PURCHASING AUTHORITY NUMBER (If Applicable)
5TD 213 (Rev. 02/2019)
STATE OF CALIFORNIA
CONTRACTING AGENCY NAME
City of San Rafael
CONTRACTING AGENCY ADDRESS
CITY
STATE
ZIP
1400 Fifth Avenue
San Rafael
CA
94901
PRINTED NAME OF PERSON SIGNING
TITLE
Jim Schutz
City Manager
CONTRACTING GENCY AUT IZE SIGNATURE
DATE SIGNED
CALIFORNIA D ART NT OF GENERA SE VICES APPROVAL
EXEMPTION (If Applicable)
Paqe 2 of 2
Amendment 1 of Exhibit D Attachment III
Selected Services Signature Page
(Local Authorized Users Only)
The undersigned each agree to be bound by the terms and conditions of the
MSA 5-10-99-02 exhibits selected and signed for below. These selected exhibits
are by this reference made part of this Subscription Agreement # (insert Local
Authorized User's Contract number).
D Exhibits A - G (Merchant Services) (Category 1)
City of San Rafael
("Authorized User")
Signature:
Print Name: m Schutz
Title: City Manager
Dated: �1 - IE
Elavon
("Contractor")
Print Name: -Re
,-J eAsjO Rn
e.• ' • . '
Dated: i
U.S. Bank
(Bank) ,
Signature:3
Print Name:
Title: (�
Dated: Ll
1 of 1
Department of General Services Electronic Payment Acceptance Services MSA — Revised June 2011
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,rY WITH P,
CONTRACT ROUTING FORM
INSTRUCTIONS: Use this cover sheet to circulate all contracts for review and approval in the order shown below.
TO BE COMPLETED BY INITIATING DEPARTMENT PROJECT MANAGER:
Contracting Department: Community Services
Project Manager: Catherine Quffa Extension: 3078
Contractor Name: Elavon, Inc
Contractor's Contact: Beverly Baker Contact's Email: Beverly.Baker2@elavon.com
❑ FPPC: Check if Contractor/Consultant must file Form 700
Step
RESPONSIBLE
DESCRIPTION
COMPLETED
REVIEWER
DEPARTMENT
DATE
Check/Initial
1
Project Manager
a. Email PINS Introductory Notice to Contractor
_. „Lq ...
N
,iter a date.
n/a Imm
b. Email contract (in Word) and attachments to City
3/25/2019
NCGQ
Attorney c/o Laraine.Gittens@cityofsanrafael.org
2
City Attorney
a. Review, revise, and comment on draft agreement
3/29/2019
and return to Project Manager
(-'lick here to
Nlmm
b. Confirm insurance requirements, create Job on
enter a date.
PINS, send PINS insurance notice to contractor
Nn/a
3
Department Director
Approval of final agreement form to send to
Click or to
❑
contractor
to enter a
date
4
Project Manager
Forward three (3) originals of final agreement to
4/2/2019
NCGQ
contractor for their signature
5
Project Manager
When necessary, contractor -signed agreement
❑ N/A
agendized for City Council approval *
*City Council approval required for Professional Services
Agreements and purchases of goods and services that exceed
Or
$75,000; and for Public Works Contracts that exceed $175,000
Date of City Council approval
4/15/2019
NCGQ
PRINT
CONTINUE ROUTING PROCESS WITH HARD COPY
6
Project Manager
Forward signed original agreements to City
(I
���
Attorney with printed copy of this routing form
7
City Attorney
Review and approve hard copy of signed
agreement
I /I
8
City Attorney
Review and approve insurance in PINS, and bonds
(for Public Works Contracts)
411A-
9
City Manager/ Mayor
Agreement executed by City Council authorized
official
10
City Clerk
Attest signatures, retains original agreement and
forwards copies to Project Manager