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MINUTES <br />CITY COUNCdL <br />JANUARY 25, 2006 <br />insufficient funds checks each year. She also noted that delinquent <br />accounts are certified to property taxes once each year. <br />The Director reviewed her estimate of transaction fee costs as outlined in <br />her memo dated February 3, 2006. She noted that transaction costs for <br />Parks & Recreation fees and Licenses/Permit would appear to be minimal. <br />However, estimating a 15% usage of credit cards for payment of utility <br />bills, total transaction fees are estimated at $9,601. Building this fee into <br />utility costs and based on the City's 2,500 utility accounts, the net result is <br />estimated at $4 additional per account per year. The Director noted, <br />however, that the fee would be more for the high user account and less for <br />the low user account. <br />The Finance Director noted that as part of the City's planned conversion to <br />anew utility billing software, automatic debit will be offered. The <br />Director felt that this would lessen the demand for payment by credit card, <br />and noted that the fees associated with the automatic debit system are <br />substantially less than credit card transaction fees. <br />The Director pointed out that based on staff's analysis of the credit card <br />payment options, a list of recommendations was developed as outlined in <br />the February 3"{ report. <br />Blesener asked how many requests the City receives for payment of large <br />cost items by credit card. The Director indicated that not many are <br />received, although some are received from people trying to get mileage <br />points on their credit card. The Director also pointed out that the City of <br />Roseville is trying to move away from the acceptance of credit card <br />payments and toward the automatic debit system. <br />Blesener noted the recommendation that credit card payments be accepted <br />for park and recreation fees only with the transaction fee built into the <br />program cost. He asked Che Park Commission's feeling on this as well as <br />that of the Parks & Recreation Department. <br />The Director noted that the Parks Department would like to take on-line <br />payments and registrations, therefore, acceptance of credit cards is a good <br />option for those costs. The Director did not feel it was a good payment <br />option at this Cime for license and permit fees, given the need for <br />document exchange. She also noted that if Che City contracts with a third <br />party vendor for acceptance of credit card payments, it can charge the <br />transaction fee to the user. However, if the City swipes credit cards at the <br />City Center, the fee cannot be charged to the user. <br />2 <br />