Title
Consider approving Resolution No. 2014-052 authorizing the City Manager to negotiate and sign an agreement with Elavon, Inc. to provide merchant card services to facilitate the acceptance of credit, debit and charge cards utilizing the State of Texas Cooperative Purchasing Program Contract No. 920-M1 and take appropriate action.
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BACKGROUND:
The City of Farmers Branch (the "City") accepts customer payments using credit and debit cards. The City is currently using the State of Texas Co-Operative Purchasing Program (the "CO-OP") for merchant card services with Chase/Paymentech. The Texas Comptroller of Public Accounts has entered into a new state-wide agreement with Elavon, Inc. which allows CO-OP members to receive the benefit of lower processing fees.
DISCUSSION:
City Administration compared the processing fees in the state-wide contract to the fees charged by the City's current vendor. The total cost varies based on the card used by the customer and the volume of gross sales. Assuming no change to card usage and sales volume, staff estimates a reduction in the cost of bank card processing by $2,700 per year for an annual estimated cost of $70,200. This expenditure is essential to promote Core Value #7 to "Provide efficient and fiscally sound government through conservative budgeting, spending, and resource management."
RECOMMENDATION:
City Administration recommends that Elavon, Inc. be named the City's provider of merchant card services for an initial period beginning June 18, 2014 and ending August 31, 2016 with automatic options to renew for three additional one-year periods.
ACTIONS:
1) Motion to approve Resolution No. 2014-052 authorizing the City Manager to negotiate and sign an agreement with Elavon, Inc. to provide merchant card services to facilitate the acceptance of credit, debit and charge cards utilizing the State of Texas Cooperative Purchasing Program Contract No. 920-M1.
2) Motion to deny Resolution...
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