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Item Coversheet Page 1 of 2 <br /> � <br /> Financial Management <br /> DATE: 3/17/2016 <br /> MEMO: Letter to City Council Financial Management Department Letter#2016-OS <br /> TO: Honarable Mayor Moore Wolfe and City Council Members <br /> FROM: Tim Gleason,City Manager <br /> Gregg Zientara,City Treasurer&Director of Finance <br /> SUBJECT: RESOLUTION AUTHORIZING CITY MANAGER TO EXECUTE AND ENTER INTO ADDENDUM G OF THE <br /> MASTER PAYMENT PROCESSING AGREEMENT WITH FIRSTECH,INC.,A WHOLLY OWNED SUBSIDIARY OF <br /> BUSEY BANK,FOR THE PURPOSE TO CONTINUE THE CITY TO RECENE LOCK BOX PAYMENT PROCESSING <br /> SERVICES,WALK-IN PAYMENT PROCESSING SERVICES,INTERACTIVE VOICE RESPONSE PAYMENT <br /> PROCESSING SERVICES AND ON-LINE PAYMENT PROCESSING SERVICES,FROM FIRSTECH,INC. <br /> SUMMARY RECOMMENDATION: <br /> City Administration recommends City Council approval of the attached Resolution,which continues the contractual arrangement <br /> with FirsTech,Inc.to provide back office payment processing services to the City of Decatur. <br /> BACKGROUND: <br /> In mid 2012,City Staff commenced discussions with the City Council concerning the necessity to embark on a project to dredge <br /> Lake Decatur to increase the water storage capacity within the lake attempting to alleviate water supply issues to the City as a <br /> result of the water drought conditions experienced at the time. <br /> With City Council concurrence to continue with City Staff recommendation to pursue the Lake Decatur dredging initiative, it was <br /> determined that water rate increases would be necessary to fund the dredging initiative.As well, it was determined in discussion <br /> with the City Council that conversion from quarterly water utility billing to monthly water utility billing would be in the best <br /> interests of water uti(ity customers. <br /> The conversion of quarterly to monthly billing for the water utility would create a "tripling" of billing invoicing, payment <br /> collection and processing for City Staff. <br /> Financial analysis determined the best course for City response to the increased transaction volume was to engage a third party to <br /> provide"back office"payment processing services,thus eliminating the need to employ new City resources to process the 3 fold <br /> increase in monthly transaction volume. <br /> Thus, the City Council approved Council Resolution R2013-17 adopted on February 19, 2013, authorizing the City Manager to <br /> enter into a master agreement with FirsTech,Inc.whereby,FirsTech,Inc.would provide"back office"utility payment processing <br /> services to the City of Decatur. Such agreement was approved by City Council for a three (3) period of time, commencing <br /> February,2013 with expiration in February,2016. <br /> City Staff desires to renew the FirsTech,Inc.agreement.Such renewal will be for a period of five(5)years with automatic renewal <br /> for an additional five(5)years,unless otherwise agreed by either party to not renew the agreement. <br /> FirsTech,Inc.provides services to the City of Decatur beyond the service capabilities of any local entity. <br /> POTENTIAL OBJECTIONS: There are no known objections to this resolution request. <br /> INPUT FROM OTHER SOURCES: <br /> No input from other sources. <br /> STAFF REFERENCE: Tim Gleason,City Manager Gregg Zientara,City Treasurer and Director of Finance <br /> https://decatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=487 3/21/2016 <br />