I. RECOMMENDATION:
Staff has no recommendation. This item was requested as a Future Agenda Item by Mayor Vosburg.
II. BACKGROUND:
The City of Coalinga adopted Resolution No. 3647 on July 10, 2014 establishing a convenience fee to enable Paymentus Corporation to provide the service of credit card payments for utility billing customers.
III. DISCUSSION:
Paymentus currently provides electronic bill payment service for a fee of $2.95 per transaction in increments of $200.00. The convenience fee of $2.95 is charged to the credit cardholder and collected directly by Paymentus.
The service by Paymentus allows City utility customers the convenience of making utility payments 24/7 via interactive Telephone Voice Response System and Web payments through a link from the City’s website.
Since the conversion of the new accounting software it has become necessary for the City to enter into an agreement with Open Edge as they are the preferred third-party merchant for Tyler Technologies. In order for the City to take an advantage of the lower utility Visa rates the City needs to start paying for the credit card fees as part of doing business.
IV. ALTERNATIVES:
The City Council has the option of absorbing the fees associated with the acceptance of credit cards payment to be paid out of the Enterprise Funds as a cost of providing this service to the utility billing customers. Such fees will be collected as part of the user fees charged to the utility customers.
V. FISCAL IMPACT:
None. |