HomeMy WebLinkAboutO-2011-3334 establishing fees for credit/debit card transactions paid on-line though La Porte website 7
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested! April l 7.O11 Appropriation
Source of Funds: N/A
Requested By: Michael G. Dolby, Dir of Finance
Department: Finance Account Number: N/A
Report: Resolution: Ordinance: XX Amount Budgeted:
Amount Requested: N/A
Exhibits: Ordinance
Budgeted Item:
Exhibits:
Exhibits:
SUMMARY & RECOMMENDATION
The City has been accepting credit cards for payment of utility bills, tax bills and other City
Services. The Local Government code allows municipalities to collect a fee for processing online
payments by credit card; however, the governing body may not set the processing fee in an
amount that exceeds five percent of the amount of the fee or fine, or other charge being paid.
Our third party processor (Rev Track) reviewed the City's total fees paid and compared that
amount to the number of transactions and calculated an average fee of $3.00 per transaction. The
City currently pays a total of approximately $133,000 annually in fees for the acceptance of
credit cards; therefore, charging a $3.00 convenience fee will allow the City to recoup
approximately $37,000: furthermore, the City would like to allow those citizens paying less than
$60.00 dollars to not pay a convenience fee. This approach will keep La Porte in compliance
with the Local Government Code.
Action Required by Council
• ve ordinance for $3.00 convenience fee.
Appro ed ' or City o it Agenda
l ( I
Ron Bottoms, City Manager Date
ORDINANCE NO. 2011 -33$
AN ORDINANCE AUTHORIZING AND ESTABLISHING CONVENIENCE FEES FOR CREDIT OR
DEBIT CARD TRANSACTIONS PAID ON -LINE THROUGH THE LA PORTE WEBSITE, FOR LA
PORTE RESIDENTIAL AND BUSINESS CUSTOMERS; CONTAINING A SEVERABILITY CLAUSE;
AND PROVINDING AN EFFECTIVE DATE.
WHEREAS, the City of La Porte provides for the ability to pay for city services at both the point of
transaction and on -line, with the use of credit or debit cards; and
WHEREAS, the City believes that providing this service for La Porte customers wishing to pay for
services and /or fees by credit or debit cards is in their best interest; and
WHEREAS, the City believes that a convenience fee should be charged to offset the cost of providing
this service to residential and business customers wishing to pay for the city services so provided with
credit or debit cards.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
SECTION 1: A convenience fee of $3.00 per transaction is hereby authorized at the time of the sale for
those individuals and businesses wishing to use a credit or debit card to purchase and pay for city
services, in those cases where credit or debit card payments are provided for and permitted for on -line
payments on the City of La Porte website. In those cases where the total sale price is less than $60.00,
no fee shall be assessed.
SECTION 2: All ordinances or parts of ordinances inconsistent with the terms of this ordinance are
hereby repealed; provided, however, that such repeal shall be only to the extent of such inconsistency
and in all other respects this ordinance shall be cumulative of other ordinances regulating and
governing the subject matter covered by this ordinance.
SECTION 3: Should any section or part of this ordinance be held unconstitutional, illegal, or invalid, or
the application to any person or circumstance for any reasons thereof ineffective or inapplicable, such
unconstitutionality, illegality, invalidity, or ineffectiveness of such section or part shall in no way affect,
impair or invalidate the remaining portions thereof; but as to such remaining portion or portions, the
same shall be and remain in full force and effect and to this end the provisions of this ordinance are
declared to be severable.
SECTION 4: The City Council officially finds, determines, recites and declares that a sufficient written
notice of the date, hour, place and subject of this meeting of the City Council is posted at a place
convenient to the public at the City Hall of the city for the time required by law preceding this meeting,
as required by Chapter 551, Texas Local Government Code; and that this meeting has been open to
the public as required by law at all times during which this ordinance and the subject matter thereof has
been discussed, considered and formally acted upon. The City Council further ratifies, approves and
confirms such written notice and the contents and posting thereof.
SECTION 5: This Ordinance shall be in effect from and after its passage and approval. The fees in
this ordinance shall be effective upon passage and approval of this ordinance, unless otherwise
indicated.
PASSED AND APPROVED this the 5 day of l.IA / 2011.
CITY OF 4' • R E, -XAS
4I I f A
Lo is R. ' igbyor
ATTEST:
Patrice Fogarty, Or Secr/ ary
APPRO D:
Clark Askins, Assistant City Attorney