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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />FEBRUARY 21, 2012 <br />TITLE: <br />RESOLUTION SUSPENDING CREDIT <br />CARD/ ELECTRONIC FUNDS TRANSFER <br />TRANSACTION FEE <br />4Zs-A'C-- <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1s' Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />RECOMMENDED ACTION <br />Adopt a resolution suspending the credit card and electronic funds transaction fee and provide a <br />staff report of the program after six months. <br />DISCUSSION <br />The Treasury Division of the Finance and Management Services Agency is responsible for <br />maintaining all banking related transactions for the City. A component of banking is payment <br />processing. Currently, Municipal Utility Services customers are able to pay their utility bill by <br />check, cash, credit card or on -line with the use of a credit card or a debit to their bank account <br />through an Electronic Funds Transfer. The City charges $3.54 for the use of credit card or on- <br />line payment services. <br />As a convenience to applicants, the Treasury Division is moving towards providing the ability to <br />apply and pay for Business Licenses, Dog Licenses, Parking Citations, etc. on -line. Payees are <br />reluctant to use on -line payment services when a fee is involved and resort to paper and mail <br />methods. Paper processing is very labor intensive and costly. A reduction in staff through <br />attrition has necessitated revisiting labor intensive processes for alternatives. To accommodate <br />requests for on -line services and to encourage on -line payment, staff recommends the <br />suspension of the credit card /electronic funds transaction fee. Staff will review the program after <br />six months and provide a recommendation as to continuing rescinding the fee. <br />FISCAL IMPACT <br />Salary and benefit costs in the Treasury Division budget to be offset by the revenue suspension <br />in the credit card /electronic funds transfer fees, estimated to be a net zero cost. <br />Francisco Gutierrez <br />Executive Director <br />Finance & Management Services Agency <br />Exhibit 1 Resolution <br />55B -1 <br />