CC MEETING: June 17, 2025
DATE: June 11, 2025
TO: Erin Rinehart, City Manager
FROM: Diana K. Vaughn, Chief Financial Officer
Chrystal K. Davis, Assistant City Manager
Title
Consider Authorizing The City Manager To Execute A Change Order To The Contract With Focus Merchant Services, LLC For Credit Card Processing And Merchant Services, Increasing The Total Contract Amount Not To Exceed $4,500,000.00.
Body
BACKGROUND:
The City’s existing contract with Focus Merchant Services, LLC (Focus Merchant) was approved on February 18, 2020, pursuant to RFP#19-009 for credit card processing and merchant services for a term of six-years with the option of two extensions of two years. Currently in year six of the contract, staff is requesting a change order to increase the total contract amount to a maximum of $4,500,000.00 for the remaining term and extension period. This is expected to cover the completion of year six and part of one extension period.
Credit card fees paid by the City are driven by revenue collected, transaction volume, and rates set by credit card companies (Visa, Mastercard, American Express). In fiscal year 2024, the City collected $27,400,672 from 339,888 transactions which cost the City $639,913 in credit card fees, an increase from fiscal year 2023. Staff anticipates revenue will reach $30,000,000 in fiscal year 2025 with credit card fees around $900,000.
FINANCIAL IMPLICATIONS:
Credit card fees are budgeted within various departments and accounts across the City.
IMPACT ON COMMUNITY SUSTAINABILITY:
This project supports and aligns with the City Council’s goals and objectives to leverage technology to improve our effectiveness and efficiency.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends authorizing the City manager to execute a change order to the contract with Focus Merchant Services, LLC for credit card processing and merchant services, increasing the total contract to an amount not to exceed $4,500,000.