HomeMy WebLinkAbout11-26-07 Item 7B, RevTrak Merchant Agreement
Prepared By:
Depl.:
Council Mtg. Date:
Final Action Needed By:
Sue Iverson
Finance
~
~HILLS
Request for Council Action
~
Agenda Item:
78
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Actual Amount: .......... ... ..... $1}7s
General Fund, Water, Sewer, Storm
Water
Funding Source:
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: Motion to approve the City Administrator and Mayor to enter into a Merchant Agreement with RevTrak for credit card services and web/site!
ilicense. .
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i Staff recommends a motion to enter into an agreement with RevTrak for credit card services and web/site license.
X Memo dated November 20, 2007
No:
No.:
Recommendation:
Recommendation:
Other:
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Additional monthly-fee"of $49.95 a month compared to $6.00 a-.month. $1,575 Spring brook interface for implementation and $394 yearly
maintenance. Processing costs are close to those we currently incur, but there will be increased usage over time that we can incorporate
into our fees and rates.
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i This item will achieve the Council objective to allow citizens to make online payments as one of the strategic goals from the 2007 strategic '
i planning session and allow us to update our services to residents.
~
/]'\~ HILLS
MEMORANDUM
DATE:
November 20, 2007
AGENDA ITEM 7B
TO:
Honorable Mayor and City Council
Michelle Wolfe, City Administrator
Sue Iverson, Finance Director ~
FROM:
SUBJECT:
RevTrak Software - Online Payment System
BACKGROUND
During the Council/Staff retreat, an online payment system was discussed to update our services
to residents. It was identified as one ofthe goals and objectives for staffto implement in 2007.
DISCUSSION
Earlier this year, staff met with representatives from RevTrak to view a demonstration ofthe
software and the capabilities. Staff saw a number of possibilities for use with this software,
including our own "web store". The software would not only be capable of taking credit card
payments on-line, but we would also be able to use this for recreation program sign-up and
payment. One of the biggest features ofthis would be the ability for residents to look-up their
utility bill balance on-line and make the payment, as there is an interface with Springbrook
available. We could also offer a number of other payment options in the future such as, siding
and roofing permits or general bills that they owe the City. This software/service will be able to
grow with us and we can customize to our needs. The web store will allow us to be available to
our residents 24 hours a day, seven days a week, and should eventually reduce the staff hours
processing checks and payments. Another advantage is that the web store is hosted on
RevTrak's system and is monitored for security and they are responsible to the credit card data.
The web store is linked to our City's website. If you would like to look at some current sites you
may visit: www.RevTrakcom/LakeCrvstal, www.RevTrakcomlHutch, and
www.RevTrak.com/Shoreview.
FINANCIAL IMPLICATIONS
The monthly fee for this service is $49.95 a month, as our population is under 10,000. The
Springbrook interface is $1,575 and $394 a year for maintenance. I have already worked these
numbers into the 2008 budget and there are sufficient funds in the finance budget to cover the
Memo
City Council
RevTrak
2
implementation costs in 2007. The other costs associated with this are the credit card processing
fees. The current cost that we are averaging for credit card fees is about 2.2% of the amount
collected. Based on analysis I have run on usage ofthe new system/service would be about 2.9%
ofthe amount collected. This takes into account that there are different charges for the point at
which you accept credit cards - Card Present 1.99%, Phone/Mail Order 2.59%, and Online
2. 79%. We currently only accept card present transactions. There is also a $0.28 processing fee
per transaction, but we also have a charge similar to this at this time and we have a monthly fee
of$6.00. The only real cost besides the implementation cost is the increased use of the payment
systems, but this could be recovered through including this cost in our fees and we will include
an estimate of this cost in our rate studies. (I have already included this in the 2008 budget.)
CITY STAFF RECOMMENDATION
Motion to the authorize the City Administrator and Mayor to enter into a Merchant Agreement
with RevTrak for credit card services and web/site license.