CC MEETING: May 20, 2025
DATE: May 2, 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 An Amendment To The Contract with Global Payments Direct, Inc. And Its Subsidiary OpenEdge, LLC As A Sole Source Provider For Gateway And Credit Card Processing Services For Municipal Court Extending The Term For An Additional Three Years, For A Total Renewal Amount of $300,000.00, Increasing the Total Contract To An Amount Not To Exceed $550,000.00.
Body
BACKGROUND:
The Municipal Court Department utilizes Incode, a Tyler Technologies, Inc solution, to provide full court case management and payment processing services critical to the department's operations. The Municipal Court collects approximately $2.0 to $2.3 million in fees through Incode's online and in person payment solutions via credit card payments.
In 2023, staff received council authorization to purchase five years of gateway and credit card processing services for Municipal Court from Global Payments Direct, Inc. (Global Payments) and its Subsidiary OpenEdge, LLC (OpenEdge) as a sole source provider in an amount not to exceed $250,000. In the first year, staff processed 7,632 transactions, costing $69,422. Currently, in year two, staff projects fees to more than double due to rate increases charged by the credit card companies (Visa, MasterCard, American Express), which are passed on to the City. Staff requested a rate analysis review seeking a reduction in the rates that Global Payments can control. Global Payments has provided a proposal offering amended rates that requires a 36-month term extension from the date of execution of the amendment. Staff projects fees of approximately $150,000 to complete the current year and then fees of up to $100,000 annually with the amended rates for the next 36-month term.
FINANCIAL IMPLICATIONS:
Credit card fees are budgeted for ...
Click here for full text