HomeMy WebLinkAboutOrdinance 6315of FpYErrF
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113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6315
File Number: 2020-0389
CREDIT CARD AND DEBIT CARD TRANSACTION FEES:
AN ORDINANCE TO APPROVE THE ASSESSMENT OF A 2.95% FEE FOR CREDIT CARD
AND DEBIT CARD TRANSACTIONS OTHER THAN UTILITY BILL AND PARKING FEE
PAYMENTS
WHEREAS, the City currently accepts credit card payments for utility bills, recycling and trash
invoices, airport hangar rental and supply purchases, animal shelter fees, building permits, business
licenses, miscellaneous billing of City services, parking, and miscellaneous Police fees and has always
absorbed the transaction fees for those payments; and
WHEREAS, in 2019, the Arkansas General Assembly passed Ark Code Ann § 14-59-119 which
requires the City to assess transaction fees associated with debit card and credit card payments unless
the City Council "determines that the transaction fee is included in the amount charged for the service
or product for which a credit card or debit card payment is made."; and
WHEREAS, the City is in the process of implementing a new Development Services software called
EnerGov that will allow customers to pay by credit or debit card for permits, inspections, HMR and
supplemental beverage taxes, and business licenses through a new streamlined portal; and
WHEREAS, staff is recommending the assessment of a 2.95% fee, which is the average of
transaction fees for payments to the City based on 2019 data, on all credit card and debit card
transactions other than payment of utility bills (including recycling and trash collection charges that
are included in monthly utility bills) and parking fees which include the transaction fees in the
amounts charged for those services and products.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
Page 1 Printed on 5119120
Ordinance 6315
File Number: 2020-0389
FAYETTEVILLE, ARKANSAS:
Section l: That the City Council of the City of Fayetteville, Arkansas hereby determines, pursuant to
Ark. Code Ann. § 14-59-119(b)(3) that the credit card or debit card transaction fee is included in the
amount charged for utility bills (including recycling and trash collection charges that are included in monthly
utility bills) and paid parking fees.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves the assessment
of a 2.95% fee for credit card and debit card transactions other than payment of utility bills (including
recycling and trash collection charges) and paid parking fees.
PASSED and APPROVED on 5/19/2020
Attest:
J\3 Y 0'F�
FAYETTEVILLE ;
Kara Paxton, City Clerk Treasure,
"';i (NGTOtA
Page 2 Printed on 519120
City of Fayetteville, Arkansas 113 West Mountain Street
,. Fayetteville, AR 72701
(479) 575-8323
=u ; Text File
File Number: 2020-0389
Agenda Date: 5/19/2020 Version: 1 Status: Agenda Ready
In Control: City Council Meeting File Type: Ordinance
Agenda Number: C. 1
CREDIT CARD AND DEBIT CARD TRANSACTION FEES:
AN ORDINANCE TO APPROVE THE ASSESSMENT OF A 2.95% FEE FOR CREDIT CARD AND
DEBIT CARD TRANSACTIONS OTHER THAN UTILITY BILL AND PARKING FEE PAYMENTS
WHEREAS, the City currently accepts credit card payments for utility bills, recycling and trash invoices,
airport hangar rental and supply purchases, animal shelter fees, building permits, business licenses,
miscellaneous billing of City services, parking, and miscellaneous Police fees and has always absorbed the
transaction fees for those payments; and
WHEREAS, in 2019, the Arkansas General Assembly passed Ark Code Ann § 14-59-119 which requires
the City to assess transaction fees associated with debit card and credit card payments unless the City Council
"determines that the transaction fee is included in the amount charged for the service or product for which a
credit card or debit card payment is made."; and
WHEREAS, the City is in the process of implementing a new Development Services software called EnerGov
that will allow customers to pay by credit or debit card for permits, inspections, HMR and supplemental
beverage taxes, and business licenses through a new streamlined portal; and
WHEREAS, staff is recommending the assessment of a 2.95% fee, which is the average of transaction fees for
payments to the City based on 2019 data, on all credit card and debit card transactions other than payment of
utility bills (including recycling and trash collection charges that are included in monthly utility bills) and parking
fees which include the transaction fees in the amounts charged for those services and products.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines, pursuant to Ark.
Code Ann. § 14-59-119(b)(3) that the credit card or debit card transaction fee is included in the amount
charged for utility bills (including recycling and trash collection charges that are included in monthly utility bills)
and paid parking fees.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves the assessment of a
2.95% fee for credit card and debit card transactions other than payment of utility bills (including recycling and
City of Fayetteville, Arkansas Page 1 Printed on 511912020
File Number: 2020-0389
trash collection charges) and paid parking fees.
City of Fayetteville, Arkansas Page 2 Printed on 511912020
City of Fayetteville Staff Review Form
2020-0389
Legistar File ID
S/19/2020
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Keith Macedo 5/4/2020 INFORMATION TECHNOLOGY (170)
Submitted By Submitted Date Division / Department
Action Recommendation:
Staff recommends approving a credit card fee structure for citywide online and over the counter credit card and
debit card sales due to a 2019 legislative change pursuant to Ark Code Ann. § 14-59-119.
Budget Impact:
Various
Account Number
Various
Fund
Project Number Project Title
Budgeted Item? NA Current Budget
Funds Obligated
Current Balance 5
Does item have a cost? No Item Cost '
Budget Adjustment Attached? NA Budget Adjustment
Remaining Budget
Purchase Order Number:
Change Order Number:
Original Contract Number:
Comments:
Previous Ordinance or Resolution #
Approval Date:
V20180321
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF MAY 19, 2020
TO: Mayor and City Council
THRU: Paul Becker, Chief Financial Officer
Susan Norton, Chief of Staff
CITY COUNCIL MEMO
FROM: Keith Macedo, Director of Information Technology
DATE: April 23, 2020
SUBJECT: Staff recommends approving a credit card fee structure for citywide online and
over the counter credit card and debit card sales due to a 2019 legislative
change pursuant to Ark Code Ann. § 14-59-119.
RECOMMENDATION:
Staff recommends approving a credit card fee structure for citywide online and over the counter
credit card and debit card sales due to recent change in the state statutes (Ark. Code Ann. § 14-
59-119) and to coincide with the implementation of EnerGov's Development Services software.
BACKGROUND:
The City currently accepts credit card payments for Utility bills, Recycling and Trash invoices,
Airport hangar rental and supply purchases, Animal shelter fees, building permits, business
licenses, miscellaneous billing of City services, Parking, and miscellaneous Police fees.
Prior to the 2019 legislative session, the State Statutes did not address the acceptance of credit
and debit cards and associated credit and debit card transaction fees.
In July of 2019 the State of Arkansas passed Ark Code Ann § 14-59-119 which directed
municipalities on how the transaction fees associated with the accept and process debit card
and credit card payments must be handled. The new statute prescribed:
"A municipality may accept a legal payment and any associated costs through a debit card or
credit card in accordance with applicable state and federal law.
(b)(1) A municipality may enter into a contract with a credit card or debit card company and pay
any fee normally charged by the card or debit card company for allowing the municipality to
accept the credit card or debit card as payment as authorized under subsection (a) of this
section.
(2) When a payment is made through a credit card or debit card, the municipality shall assess a
transaction fee equal to the amount charged to the municipality by the credit card or debit card
company.
(3) A municipality shall not assess a transaction fee for payments made through a credit card or
debit card if the governing body of the municipality determines that the transaction fee is
included in the amount charged for the service or product for which a credit card or debit card
payment is made."
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
The City accepts credit card and debit cards for the majority of transactions processed in person
and online but has configured all current credit card systems to not pass any of the credit card
fees. The credit card fees are comprised of a fixed transaction fees and a percentage of each
transaction, which average about 2.95 % per transaction. Due to the different types of credit
card and debit cards, there are hundreds of different credit card transaction fee rates and
percentages, based upon the type of card used by the customer (consumer, business, reward
card, etc..). Therefore, an average transaction cost fee is a practical solution if a transaction fee
is to be applied.
DISCUSSION:
The City is in the process of implementing a new Development Services software called
EnerGov that will allow customers to pay by credit or debit card for Permits, Inspections, HMR,
Supplemental Beverage, and Business licenses through a new streamlined portal. Currently the
majority of these fees are either taken in person or via a mailed in check. Staff is recommending
a 2.95% pass through credit card transaction fee to pay for the transaction costs associated with
providing this new service. Since this could be significant fee for large transactions, we still
provide the option for customers to pay with a check or cash, which are not subject to
transaction fees. We think the benefit of the new streamlined portal, to easily make online
payments for permits and fees, will drive customers to utilize the online payment option for
smaller transactions and provide them a convenient option.
City staff has reviewed the new state statute law and is recommending we absorb all credit card
fees related to Utility payments (including monthly utility charges relating to Recycling and
Trash Collections included on the monthly utility bill) and Parking related transactions because
they can be incorporated in the established rates charged the customer. The City is
recommending passing credit card fees to customers on all other transactions according to state
law. This will enable the City to consolidate many transaction types processed allowing the City
to begin accepting transaction online for payments as such as HMR and Supplemental
Beverage fees via credit card without affecting the final amount of the fee collected which is
needed to fund operations.
BUDGET/STAFF IMPACT:
The average transaction fee is estimated to be 2.95% per transaction based on 2019 data,
regardless of whether it is purchased online or in in person with a credit card or debit card.
However, Staff is recommending a beginning 2.95% fee be assessed on all credit card
transactions other than Utility Bills and Parking Fees. If approved the amount of this fee will be
reviewed and adjusted to actual experience on an annual basis. The overall impact to the
customer would be to provide an additional payment option for many City transactions.
Attachments: Staff review form, staff review memo, state statue 14-59-119
12 .
itec'EAVED
4N 15 ZD2�
Democrat 10 (bazette
P.C. RCX 607, FAYE i EVILL"e, AR, 727C2 - `0 442.170C - FAX ; ig-o95-IIiS - WWW NWADC: COM
AFFIDAVIT OF PUBLICATION
I, Brittany Smith, do solemnly swear that I am the Accounting Legal Clerk of the
Northwest Arkansas Democrat -Gazette, a daily newspaper printed and
published in said County, State of Arkansas; that I was so related to this
publication at and during the publication of the annexed legal advertisement
the matter of: Notice pending in the Court, in said County, and at the dates of
the several publications of said advertisement stated below, and that during said
periods and at said dates, said newspaper was printed and had a bona fide
circulation in said County; that said newspaper had been regularly printed and
published in said County, and had a bona fide circulation therein for the period of
one month before the date of the first publication of said advertisement; and that
said advertisement was published in the regular daily issues of said newspaper
as stated below.
City of Fayetteville
Ord 6315
Was inserted in the Regular Edition on:
May 31, 2020
Publication Charges: $173.28
Brittany §mith
Subscribed and sworn to before me
This 2 day oIVX-2020.
Notary Public co
—
My Commission Expires: phi W 1v5
**NOTE**
Please do not pay from Affidavit.
Invoice will be sent.
CATHERINE STAGGS
MY COMMISSION ti 12402772
EXPIRES: February 28, 2025
Washington County
Ordinance:6315
File Number: 2020-0389
CREDIT CARD AND DEBIT CARD
TRANSACTION FEES:
AN ORDINANCE TO APPROVE THE
ASSESSMENT OF A 2.95% FEE FOR
CREDIT CARD AND DEBIT CARD
TRANSACTIONS OTHER THAN
UTILITY BILL AND PARKING FEE
PAYMENTS
WHEREAS, the City currently accepts
credit card payments for utility bills,
recycling and trash invoices, airport hangar
rental and supply purchases, animal shelter
fees, building permits, business licenses,
miscellaneous billing of City services,
parking, and miscellaneous Police fees and
has always absorbed the transaction fees
for those payments; and
WHEREAS, in 2019, the Arkansas General
Assembly passed Ark Code Ann § 14-59-
119 which requires the City to assess
transaction fees associated with debit card
and credit card payments unless the City
Council "determines that the transaction fee
is included in the amount charged for the
service or product for which a credit card
or debit card payment is made."; and
WHEREAS, the City is in the process of
implementing a new Development Services
software called EnerGov that will allow
customers to pay by credit or debit card for
permits, inspections, HMR and
supplemental beverage taxes, and business
licenses through a new streamlined portal;
and
WHEREAS, staff is recommending the
assessment of a 2.95% fee, which is the
average of transaction fees for payments to
the City based on 2019 data, on all credit
card and debit card transactions other than
payment of utility bills (including recycling
and trash collection charges that are
included in monthly utility bills) and
parking fees which include the transaction
fees in the amounts charged for those
services and products.
NOW, THEREFORE, BE IT ORDAINED
BY THE CITY COUNCIL OF THE CITY
OF FAYETTEVILLE.
Section 1: That the City Council of the City
of Fayetteville, Arkansas hereby
determines, pursuant to Ark. Code Ann. §
14-59-119(bx3) that the credit card or debit
card transaction fee is included in the
amount charged for utility bills (including
recycling and trash collection charges that
are included in monthly utility bills) and
paid parking foes.
Section 2: That the City Council of the City
of Fayetteville, Arkansas hereby approves
the assessment of a 2.95% fee for credit
card and debit card transactions other than
payment of utility bills (including recycling
and trash collection charges) and paid
parking fees.
PASSED and APPROVED on 5/19/2020
Approved:
Lioneld Jordan, Mayor
Attest:
Kara Paxton, City Clerk Treasurer
75276425 May 31, 2020
Automated Merchant Services, Inc.
Keith Macedo
Submitted By
City of Fayetteville Staff Review Form
2020-0727
;istar File ID
N/A
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
8/26/2020 INFORMATION TECHNOLOGY (170)
Submitted Date Division / Department
Action Recommendation:
Staff recommends approving the attached agreement with Automated Merchant Services, Inc. (AMS) for credit card
processing related to Tyler EnerGov payments.
Budget Impact:
Various Various
Account Number
Fund
Project Number
Project Title
Budgeted Item? NA
Current Budget
Funds Obligated
Current Balance
Does item have a cost? No
Item Cost
Budget Adjustment Attached? NA
Budget Adjustment
Remaining Budget
V20180321
Purchase Order Number:
Previous Ordinance or Resolution #
Change Order Number:
Approval Date: nR/?7/)n
Original Contract Number:
Comments:
CITY OF
FAYETTEVILLE
%PF ARKANSAS
TO: Mayor Lioneld Jordan
THRU: Susan Norton, Chief of Staff
FROM: Keith Macedo, Information Technology Director
STAFF MEMO
DATE: August 26, 2020
SUBJECT: Staff recommends approving the attached agreement with Automated Merchant
Services, Inc. (AMS) for credit card processing related to Tyler EnerGov
payments.
RECOMMENDATION:
Staff recommends approving the attached agreement with Automated Merchant Services, Inc.
(AMS) for credit card processing related to Tyler EnerGov payments.
BACKGROUND:
The City accepts credit card payments throughout the City for various products and services. In
2018 the City began the process of consolidating credit card processors to as few companies as
possible to improve efficiency and reduce management overhead. City Council approved an
agreement with Automated Merchant Systems (AMS), Inc. at the March 6, 2018 meeting via
ordinance 6044. This agreement waived formal competitive requirements due to the integration
of AMS and the City's Tyler New World ERP financial system. In addition, City Council approved
Ordinance 6315 which authorizes the City to charge a transaction fee for Development Services
related fees on July 7, 2020.
DISCUSSION:
The attached agreement changes the transaction fee collection process from City managed to
AMS managed. Over the last 2 months City staff attempted to configure EnerGov and ERP
Revenue Collections to calculate and process the transaction fees to ensure adequate financial
controls were implemented and the process was efficient for staff to manage. Staff worked with
EnerGov and Tyler New World ERP staff and spent a significant amount of time configuring and
testing the system but were not satisfied with the results. Due to this staff is recommending
AMS process all transaction fees which will reduce the complexity, reduce staff time, and
improve financial controls related to EnerGov credit card transaction fees. The attached
agreement simply changes how transaction fees are processed from City managed to AMS
managed.
BUDGET/STAFF IMPACT:
As documented in the attached agreement the credit card processing fees will be 2.95% per
transaction, which is what is approved in Ordinance 6315.
Attachments: Staff review form, Staff review memo, AMS Agreement
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
SERVICE FEE AMENDMENT TO
MERCHANT PROCESSING AGREEMENT
This Amendment to the Merchant Processing Agreement ("Amendment") entered into as of September 1, 2020 ("Amendment Effective Date")
and is by and among Merrick Bank Corporation, a Utah industrial banking corporation ("Member Bank"), Automated Merchant Systems, Inc.
("AMS") and the government entity signing below (the "Merchant") and amends that certain Merchant Processing Agreement dated as of March
29. 2018 (the "Agreement") to reflect an initial Merchant Funded and/or Convenience Fee program to be converted to a Service Fee program
(the "Program"). Member Bank, AMS and the Merchant agree the Program contained in this Amendment shall supersede and prevail over any
contradictory or inconsistent terms and conditions contained in the Agreement, as amended from time to time, and agree further that all
capitalized terms used, but not otherwise defined herein, shall have the meanings assigned thereto in the Agreement. The following Fee
Schedule will be added to the original Fee Schedule:
The Fee Schedule
You understand and acknowledge you have elected to participate in the Service Fee Program (the "Program"). The Program allows registered
and approved merchants (approved Merchant IDs or MIDs) to assess a variable service fee (a "Service Fee") on certain debit and credit card
transactions. Registration and participation in the Program are subject to approval by the applicable Payment Brands and you acknowledge that
you may not be eligible to participate in the Program. If registration and Payment Brand approval is obtained, you agree to comply with all
Program requirements. ISO (AMS) may terminate, amend, modify or otherwise alter this Agreement, the Program, or the structure, nature or
amount of the Service Fee at any time with written notice to you. You authorize and direct Member Bank to settle the proceeds received for
Service Fees into the ISO's bank account. In the event you receive any portion of the Service Fees, you agree to promptly pay such amounts
to ISO. Service Fees collected by ISO will be retained by ISO and you will not be responsible for the payment of any Fees or Third -
Party Costs except the Fees disclosed below. Nothing in this Section shall be deemed to alleviate or reduce any of your other obligations
under the Agreement, including, but not limited to, your responsibilities regarding Penalties and Dispute Items and your obligation to pay early
termination fees, if applicable, pursuant to Section 10 of the Merchant Processing Agreement.
The following Merchant Locations will participate in the Service Fee program:
Merchant Location Name Merchant Number (MID)
Fayt AR Dev Svcs OTC 730295363
Fayt AR Dev Svcs WEB 730299521
The following Service Fees will apply to participating Merchant Locations:
Transaction Type Service Fee
Visa, Mastercard and Discover 2.95% with a $2.00 minimum
Except as expressly modified hereby, the terms and conditions of the Agreement remain in full force and effect and are incorporated herein by
reference.
IN WITNESS WHEREOF, the partie$ hereto have executed this Amendment by their duly aut 'zed representatives.
Automated Merchant Sys s, Mc. City of tteville A
By: By:
TMe: President /� Title: Mavodll