HomeMy Public PortalAboutAB 20-072 Utility Credit Card Convenience FeeMcCALL CITY COUNCIL 216 East Park Street
AGENDA BILL McCall, Idaho 83638
Number AB 20-072
Meeting Date March 12, 2020
AGENDA ITEM INFORMATION
SUBJECT:
Utility Account Electronic Payment Service Fee
Department Approvals Initials
Originator
or
Supporter
Mayor / Council
City Manager
Clerk
Treasurer Originator
Community Development
Police Department
COST IMPACT: TBD Parks and Recreation
FUNDING
SOURCE:
Service Fees Airport
Library
TIMELINE: 4 – 6 weeks pending return of VISA approval
of service fee
Information Systems
Grant Coordinator
SUMMARY STATEMENT:
On December 19, 2019 Council directed staff to develop a plan to allow acceptance of electronic payments
for utility accounts. Staff consulted Jared Swinford, Xpress Bill Pay (XBP), to assist in determining a
convenience fee amount to cover the per transaction fees resulting from electronic utility payments. Using
assumptions from XPB customers with utility bill counts similar to the City of McCall, applying them to
City of McCall’s actual bill count of 3,305 and actual average payment amount, yielded a projected monthly
Utility Rate Cost of $1,948/mo. at the Government Services Rate Plan. Under this plan the cost is borne by
the people who choose to use an electronic payment at a flat fee of $2.95 per transaction. The City could
choose to sign up for the Utility Rate Plan which has a lower estimated cost of $1,453/mo. but the City
would have to increase the monthly utility bill of all accounts by $0.44/mo. per account and would not be
allowed to charge a convenience to fee to those who use an electronic payment.
Staff recommends the City utilize the Government Services Rate Plan so that only those ratepayers using
electronic payments are paying the cost of the service. The Government Services Plan allows charging a
convenience fee on electronic utility payments on all additional payment channels. Charging the
convenience fees on electronic payments made at the City’s primary payment channel, the front desk at City
Hall, is not allowed and must be waived. Staff recommends selecting the Government rate and charging a
convenience fee of $2.95 to cover the transactions fees on non-primary payment channels. Staff will also
encourage utility customers to elect electronic statements to reducing mailing costs. As with non-utility
electronic payments, staff will monitor actual usage and actual transaction fees and bring back a new
recommendation for the convenience fee if necessary.
Attachment: Utility Payment Rate Table
RECOMMENDED ACTION:
Direct staff to bring back a fee resolution and public hearing to set a convenience fee
RECORD OF COUNCIL ACTION
MEETING DATE ACTION
12/19/2019 Directed staff to bring back fee recommendations for Council consideration