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HomeMy WebLinkAbout~Master - Agreement for processing of credit/debit card payments for utilities RESOLUTION NO. 10-348 RESOLUTION APPROVING MASTER SERVICES AGREEMENT FOR PROCESSING OF CREDIT AND DEBIT CARD PAYMENTS ON UTILITY ACCOUNTS FOR THE CITY OF AMES WHEREAS,early in 2003 in response to customer requests to make utility payments by credit card online, the City sought out services for third-parry credit card payment processing; and, WHEREAS,a third party process agreement is preferred for utilities since the utility customers do not need to absorb the cost of credit card fees and discounts, and the City already offers a very inexpensive automated payment through automated check handling payments; and, WHEREAS,Official Payments Corporation(OPQ was interested in entering into an agreement with the City; and, WHEREAS,in July 2003,the City entered into an agreement with OPC to process credit and debit card payments for our utility customers,and the corporation provides this service at no cost to the City by charging our customers a convenience fee; and, WHEREAS,the convenience fee is$4.95 per transaction with a maximum transaction amount of$500, and this agreement with OPC continues in place and can be cancelled at any time; and, WHEREAS,customers have provided consistent feedback that the convenience fee is too high,and OPC was contacted to see if it would lower the convenience fee; and, WHEREAS, based on the response from OPC, City staff sought informal quotes from other service providers and found one,Paymentus Corporation,that offered more favorable terms; and, WHEREAS,Paymentus has requested a three-year initial term for a Master Service Agreement to process payments for our utility customers, and after three years,the Agreement can be terminated by either party upon six months' written notice; and, WHEREAS, although there is no cost to the City for this agreement, it is being submitted to Council because of the three-year initial term; and, WHEREAS, Paymentus Corporation provides the same services as OPC and has offered to provide services at no cost to the City,charging our customers a$3.50 convenience fee per transaction with a maximum transaction amount of$350. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa,that the Master Service Agreement with Paymentus Corporation for the processing ofutility customers'credit/debit card payments is hereby approved. ADOPTED THIS 27'day of July, 2010. C�A�1"fik Lyz& Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Goodman Seconded by: Mahayni Voting aye: Davis, Goodman,Mahayni, Orazem,Wacha Voting nay: None Absent: Larson Resolution declared adopted and signed by the Mayor this 27`h day of July, 2010.