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WS — Item 5 <br />WORK SESSION STAFF REPORT <br />Work Session Item <br />Date: November 23, 2015 <br />To: City Council <br />From: Sarah Cotton <br />Re: Web -Based Utility Payments <br />Background <br />Staff is ready to implement the web -based utility payment solution provided by <br />Springbrook, the City's new financial software system. Springbrook's on-line payment <br />software will offer residents and businesses 24/7 account access to view usage history, <br />account balance information, and pay their utility bill on-line using ACH, Debit, or <br />Credit. <br />Before implementation can take place, a decision needs to be made regarding utilization <br />of a Visa Utility Rate Fee structure or a Convenience Fee model. Staff has prepared and <br />attached a cost comparison for review. The City of Lino Lakes currently has <br />approximately 4,850 accounts, which are billed on a quarterly basis. Staff is anticipating <br />a participation rate of 10% in the first year and an average transaction amount of $200. <br />The monthly statement fee and software usage costs are the same under either option, and <br />will be a cost borne entirely by the City. Under the Convenience Fee model, the Gateway <br />Transaction Fee, Processor Fee, and Variable Interchange charge is borne completely by <br />the customer. Under the Visa Utility Rate Fee structure, the Gateway Transaction Fee, <br />Processor Fee, and Fixed Visa Utility Interchange rate is covered by the City. This <br />option allows the City to lock into an interchange charge of $.75 per transaction versus <br />the variable interchange rate provided under the Convenience Fee model. <br />Requested Council Direction <br />Staff is seeking Council direction regarding the Visa Utility Rate Fee structure or the <br />Convenience Fee model. <br />Attachments <br />Cost Comparison Spreadsheet <br />