HomeMy WebLinkAbout55B - RESO SUSPENDING CREDIT CARD - ELECTRONIC FUNDS TRANSFER TRANSACTION FEE
REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY:
FEBRUARY 21, 2012
TITLE: APPROVED
? As Recommended
RESOLUTION SUSPENDING CREDIT ? As Amended
? Ordinance on 15i Reading
CARD/ ELECTRONIC FUNDS TRANSFER ? Ordinance on 2"d Reading
TRANSACTION FEE ? Implementing Resolution
? Set Public Hearing For
CONTINUED TO
FILE NUMBER
CITY MANAGER
RECOMMENDED ACTION
Adopt a resolution suspending the credit card and electronic funds transaction fee and provide a
staff report of the program after six months.
DISCUSSION
The Treasury Division of the Finance and Management Services Agency is responsible for
maintaining all banking related transactions for the City. A component of banking is payment
processing. Currently, Municipal Utility Services customers are able to pay their utility bill by
check, cash, credit card or on-line with the use of a credit card or a debit to their bank account
through an Electronic Funds Transfer. The City charges $3.54 for the use of credit card or on-
line payment services.
As a convenience to applicants, the Treasury Division is moving towards providing the ability to
apply and pay for Business Licenses, Dog Licenses, Parking Citations, etc. on-line. Payees are
reluctant to use on-line payment services when a fee is involved and resort to paper and mail
methods. Paper processing is very labor intensive and costly. A reduction in staff through
attrition has necessitated revisiting labor intensive processes for alternatives. To accommodate
requests for on-line services and to encourage on-line payment, staff recommends the
suspension of the credit card/electronic funds transaction fee. Staff will review the program after
six months and provide a recommendation as to continuing rescinding the fee.
FISCAL IMPACT
Salary and benefit costs in the Treasury Division budget to be offset by the revenue suspension
in the credit card/electronic funds transfer fees, estimated to be a net zero cost.
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
Exhibit 1 Resolution
55B-1
55B-2
Iss1 /24/12
RESOLUTION NO. 2012-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA SUSPENDING THE CREDIT CARD /
ELECTRONIC FUNDS TRANSFER TRANSACTION FEE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. The City of Santa Ana allows businesses and residents to apply for
services and permits, and pay various City bills on-line, including utility
bills, permit processing fees, business license taxes and animal license
fees.
B. The City encourages its customers to utilize on-line application and
payment services rather than utilizing more costly service delivery
resources such as coming to City Hall to apply for services and pay bills.
C. The City has adopted a transaction fee for on-line payments, however, the
City Council believes the imposition of these transaction fees for electronic
fund transfers and credit card transactions may be a deterrent to
residents' use of the on-line payment option.
Section 2. The City Council hereby suspends, for a period of six months through
July 30, 2012, the transaction fee imposed by the City on each electronic funds transfer
and on each credit card transaction.
Section 3. The Executive Director of Finance and Management Services shall
provide a report to this City Council in August 2012, regarding 1) the effect of the waiver
of electronic funds transfer fees on the number of customers who apply for services and
pay bills on-line instead of coming to City Hall, and 2) the cost savings to the City
resulting from the suspension of the transaction fees.
Resolution No. 2012-XXX
55B-3 Page 1 of2
i
Section 4. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
ADOPTED this day of , 2012
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Joseph Straka, Interim City Attorney
By:
Laura Sheedy
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2012-XXX to be the original resolution adopted by the City Council of the
City of Santa Ana on
Date:
Clerk of the Council
City of Santa Ana
Resolution No. 2012-XXX 55B-4
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