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FINANCIAL MANAGEMENT DEPARTMENT <br /> #2013 -04 <br /> DATE: February 13, 2013 <br /> TO: Honorable Mayor McElroy and City Council Members <br /> FROM: Ryan P. McCrady, City Manager <br /> Gregg Zientara, City Treasurer& Director of Finance <br /> SUBJECT: Resolution Authorizing City Manager to Execute and enter into a Master <br /> Payment Processing Agreement and Ancillary Addendums with FirsTech, Inc., a <br /> wholly owned subsidiary of Busey Bank, for the purpose to enable the City to <br /> receive lock box payment processing services, walk-in payment processing <br /> services, inter-active voice response ("IVR") payment processing services, and <br /> on-line payment processing services, from FirsTech, Inc. <br /> SUMMARY RECOMMENDATION: <br /> City Administration recommends City Council approval of the attached Resolution authorizing the <br /> City Manager to Execute and enter into a Master Payment Processing Agreement and Ancillary <br /> Addendums with FirsTech, Inc., a wholly owned subsidiary of Busey Bank, for the purpose to <br /> enable the City to receive lock box payment processing services, walk-in payment processing <br /> services, inter-active voice response ("IVR") payment processing services, and on-line payment <br /> processing services, from FirsTech, Inc. <br /> BACKGROUND: <br /> As previously informed to City Council through Council Meeting Study Sessions, City <br /> Administration has been investigating potential solutions to offer expanded payment opportunities <br /> for city resident, commercial and industrial customers of the City Water Utility, for the purpose of <br /> providing improved customer service capabilities in the payment of water utility bills. <br /> In addition, City Administration has been actively searching for potential solutions in improved <br /> payment processing that can create back office payment processing efficiencies, leading to <br /> improved cash flow benefiting city finances. <br /> The City engaged the current city banking partners to offer potential solutions to achieve desired <br /> city objectives. Following review of the solutions offered, the City has chosen to engage Busey <br /> Bank and its wholly owned subsidiary, FirsTech, Inc. as the preferred partner to enable <br /> implementation of desired solutions. <br /> The City will enter a three (3) year agreement with FirsTech, Inc., whereby FirsTech will provide <br /> back office payment processing services to the city. <br /> FirsTech will charge the City fees for processing of individual transactions according to the fee <br /> structure as defined in the agreement and ancillary addendums. The total fee charged will be in <br /> determined by the summation of the number of transactions processed by FirsTech. It is <br /> anticipated that the annual fees, based upon the estimated number of transactions to be <br /> processed by FirsTech will amount to a service fee approximating $60,000 per year. <br /> ccouncil letterf 1] Page 1 of 2 Page 1 of 2 <br />