SUBJECT/RECOMMENDATION:
Title
Authorize an addendum to the existing Professional Services Agreement with RecTrac, LLC d/b/a Vermont Systems, of Essex Junction, Vermont, for the Payment Services software, PayTrac, to run coterminously with the existing agreement pursuant to Clearwater Code of Ordinances Sections 2.563(1)(a), Single Source, and 2.563(1)(d), Impractical, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
For 16 years, the Parks & Recreation Department has utilized the software program RecTrac as a tool through which recreational activities and programming across numerous facilities are booked, purchased, and organized. It has been a vital tool for the accurate accounting of services provided by the Department to the public.
Under the Agreement, Vermont Systems will provide the City with the payment services described therein. In exchange for Payment Services, the City will pay Vermont Systems the rates, fees, and other charges described in the Agreement. Beyond Vermont Systems, there are other third parties involved in the facilitation and processing of Payment Services; these third parties include banks (i.e., acquiring bank, sponsor bank), the major card networks/associations such as Visa, Mastercard, Discover and American Express, and the Vermont Systems’ designated payment processor, WorldPay, LLC. Each of these parties serves an important function in the facilitation, processing and settling of transactions.
By designating Vermont Systems as the City’s agent for payment facilitation services, and remaining in compliance with the terms of the Payment Services Agreement, the City will receive the right to accept payments from customers, through validly issued bankcards associated with the above Card Brands, and/or, if approved, through automated clearing house transactions (ACH) regulated by the National Automated Clearing House Association (NACHA).
The flat fees associated with this addendum are a $1,300.00 initial setup fee and a $600.00 annual service fee. Per transaction fees are $0.25 per processed transaction and a 2.95% processing fee.
As stated in the manufacturer's single-source letter, there are no other viable payment processing solutions that offer the same level of integration with the RecTrac software. Key features include compatibility with current EMV-compliant hardware, integrated financial controls and reporting, and seamless integration with the City's existing recreation management system. Implementing an alternative payment processing solution would require significant modifications to the City's existing RecTrac environment and would eliminate these integrated capabilities.
Upon council approval, the Parks and Recreation Department will submit a purchase request to Vermont Systems to begin the transition.
APPROPRIATION CODE AND AMOUNT:
Funds for the initial setup and current year’s portion of this agreement are available in Parks and Recreation cost code, 0101805-530300, contractual services. Future year’s costs will be requested as part of the annual budget process. All other payments made to the vendor will correspond directly to revenue.
The Parks and Recreation department is funded by revenues from the General Fund.
USE OF RESERVE FUNDS:
N/A
STRATEGIC PRIORITY:
Approval of the purchase order supports several Strategic Plan Objectives, including:
• 1.2: Maintain public infrastructure, mobility systems, natural lands, environmental resources, and historic features through systematic management efforts.
• 1.3: Adopt responsive levels of service for public facilities and amenities, and identify resources required to sustain that level of service.
• 1.5: Embrace a culture of innovation that drives continuous improvement and successfully serves all our customers; and
• 2.3: Promote Clearwater as a premier destination for entertainment, cultural experiences, tourism, and national sporting events.
