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Community Development Services, Administration and Finance Division, recommending the Board approve and authorize the Chair to sign the Second Amendment to a perpetual agreement with Cardknox (Agreement 2709 - Attachment B), the credit card system provider for the TRAKiT system, to change the $45 monthly service payment and $89 yearly service payment to a one-time fee of $200, for the life of the contract.
FUNDING: Technology Fees (credit card processing fees are paid by cardholders).
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DISCUSSION / BACKGROUND
After working with the credit card system for TRAKiT, it came to the attention of Cardknox staff and County staff that the process for charging monthly and yearly fees for the credit card system was cumbersome and could be more efficient and effective. Through a conversation about Cardknox’s services with the Teasurer/Tax Collector, the company proposed eliminating the $45 monthly fee and the $89 yearly fee and replacing it with a one-time $200 fee for the life of the contract.
The first amendment to this contract was prompted during the implementation process with Cardknox. It was discovered that the first convenience fee rate negotiated, 1.59%, was not a standard rate but an average of what Cardknox would charge customers for a convenience fee. Each credit or debit card used would be charged a different rate. The Executive Sponsors for TRAKiT did not agree to this method of charging County customers due to the fact that one convenience fee rate could not be guaranteed. Following direction from the Executive Sponsors, staff worked to negotiate a standard rate that El Dorado County customers could be guaranteed. This creates an easier process for Cardknox and the County and will provide a cost savings.
More Background Information on TRAKiT
The County determined that the cost of maintaining online land management information on the county mainframe was too costly and requested alternatives be researched to find a less expensive program that would provide similar features as the county’s current Land Management Information System, referred to as LMIS, and provide enhanced features for ease of use, including payment of fees, etc., via credit or debit cards or electronic fund transfers (EFT).
On January 3, 2017 (Item 28), the Board approved a contract with Superion, formerly Sungard Public Sector LLC, to purchase TRAKiT Land Management Software System (TRAKiT). In addition to permitting, project tracking, code enforcement and GIS integration, TRAKiT offers cashiering functions. In order to facilitate online payments, a browser-based credit and debit card processing solution that interfaces seamlessly with the new TRAKiT software is required.
The TRAKiT system went live last May, and in the process of seeking credit card vendors, it was determined that Cardknox provided the best solution. After determining Cardknox was the preferred vendor of TRAKiT, the Cardknox solution was integrated into county credit card policies for review.
CDS staff has secured approval of the integrated Electronic Payment Procedures Manual (Procedures Manual) from the County Treasurer/Tax Collector, County Auditor, and Chief Administrative Officer. Cardknox was chosen for both functional and financial reasons. Cardknox offers a competitive rate. In addition, Cardknox has already built an interface with TRAKiT, which saves a $25,000 dollar integration charge that would be incurred had the County selected a different vendor.
ALTERNATIVES
The Board could decline to approve the Second Amendment, but the County would continue with the current cumbersome payment process that can cause lapses in service. In addition, the County would not receive the financial savings from the new agreement.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Treasurer/Tax Collector’s Office
County Auditor’s Office
County Chief Administrative Office
Environmental Management Department
Planning and Building Department
Transportation Department
Surveyor's Department
Information Technology Department
Contracts approved by County Counsel and Risk Management
CAO RECOMMENDATION
It is recommended that the Board approve this item.
FINANCIAL IMPACT
The County will see a cost savings from the one-time fee instead of the yearly fee and monthly fees in approximately four months (this includes dividing the yearly fee and allocating a portion to every month).
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair's signature on the two (2) original copies of the Cardknox Payment Service Agreement.
2) The Clerk of the Board to return one (1) fully executed original copy of both Agreements to Procurement and Contracts Division, for further processing.
STRATEGIC PLAN COMPONENT
Infrastructure and Good Governance.
CONTACT
Creighton Avila, Deputy Chief Administrative Officer