HomeMy Public PortalAboutAB 10-028 Utility Payment Convenience FeeMcCALL CITY COUNCIL
AGENDA BILL
Number
Meeting Date
AB 10-28
January 28, 2010
216 East Park Street
McCall, Idaho 83638
AGENDA ITEM INFORMATION
SUBJECT:
Adoption of Resolution 1 D-7
Utility Payment Convenience Fee
A Public Hearing
Department Approvals
Initials
Originator
Or
Supporter
Mayor / Council
City Manager
Clerk
Treasurer
` 7.-
Community Development
Police department
Public Works
Golf Course
COST IMPACT:N/A
Parks and Recreation
FUNDING SOURCE: N/A
Airport
Library
TIMELINE:ASAP
City Attorney
Grant Coordinator
SUMMARY STATEMENT:
Council directed staff to look into the feasibility of the City offering e-statements and online bill pay to its Utility
customers. Staff presented options from three vendors, the City's current statement processing vendor and two
additional service providers. Council approved staff s recommendation to contract with Billing Document Specialists
to provide statement processing, e-statement presentment, and online bill pay.
The City currently accepts the following payment methods at no additional cost to its Utility customers: Check, Cash,
and Auto Pay, where the City processes an ACH payment directly from the Utility customer's checking account. The
Utility customer can make his or her payment via the United States Postal Service (USPS), in person during business
hours at City Hall, 216 E. Park Street, or after hours in a drop box located outside City Hall. The City does not
currently accept payments via Debit card or VISA and MasterCard, but would like to offer this alternate online
payment method as a convenience to its Utility customers.
Merchant Account and Gateway Fees are charged on Debit card, VISA and MasterCard payment types. These fees
can be passed on to the Utility customer via a "convenience fee". Industry standard is 4% of the transaction amount.
No Late Payments, LLC offers a "revenue neutral" option to governmental agencies. The City sets up a collection
account to accept payments, including the convenience fee which is paid by the Utility customer. The City transfers
all payment revenue less the convenience fee to its checking account; leaving the convenience fee in the collection
account. No Late Payments pays all associated banking costs from the convenience fee.
The City attorney and XGEN (NLP) Attorney are revising sections 4.2 and 6.0. A revised document will be provided
to Council on Thursday January 28, 2010.
RECOMMENDED ACTION:
1. Conduct the Public Hearing on establishing a Utility Convenience Fee.
2. Adopt Resolution 10-7 establishing a Utility Convenience Fee and authorize the mayor to sign all necessary
documents.
3. Approve the Transaction Processing Agreement with No Late Payments, LLC establishing a revenue account
and authorize the mayor to sign all necessary documents.
RECORD OF COUNCIL ACTION
MEETING DATE
ACTION
11/19/2009
Council directed staff to move forward with contracting with Billing Document
Specialists.
12/17/2009
Council approved contract for services with Billing Document Specialists
1/28/2010
Resolution 10-7 was adopted and the Transaction Processing Agreement with No
Late Payments, LLC was approved