Agenda Report
Fullerton City Council
MEETING DATE: MARCH 5, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: adam loeser, fire chief
PREPARED BY: ANDREW YANG, ADMINISTRATIVE ANALYST I
SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH locality media, inc. FOR fire department records management payment processing AMENDMENT
SUMMARY
Staff requests City Council approve an amendment to Agreement for Services between the City of Fullerton and Locality Media, Inc., doing business as First Due, for an integrated payment processing solution and absorb electronic payment processing fees (i.e., credit card, eCheck) for fire inspections and permits.
PROPOSED MOTION
Approve amendment to Agreement for Services with Locality Media, Inc., doing business as First Due, for an electronic payment processing solution.
Approve absorbing electronic payment processing fees, such as credit card and eCheck service fees, for fire inspections and permits.
ALTERNATIVE OPTIONS
Approve Proposed Motion
Approve amendment to the Agreement for Services without approval to absorb electronic payment processing fees which passes electronic payment processing fees to customers paying for fire inspections and permits via credit card or eCheck (ACH).
Do not approve the Proposed Motion and provide alternative direction to the Fire Department for payment processing related to fire inspections and permits Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
The Fire Department is requesting of absorbing credit card fees with this contract due to recent scaling of increases in the Fire fees.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Public Safety.
FISCAL IMPACT
City Council approved passing credit card and eCheck payment processing fees to customers in February 2023. The Proposed Motion would conflict with City Council direction for credit card and eCheck fees but would enable electronic payment for fire inspection and permit fees via First Due’s online portal, facilitating much-needed integration for fire inspection and permit billing.
Electronic payment processing fees through First Due total 3.9% of the transaction amount, plus $0.30 per transaction. The estimated cost for the remainder of Fiscal Year (FY) 2023-24 to absorb these fees equals approximately $7,500. Staff would incorporate $22,500 for payment processing fees in the FY 2024-25 budget if City Council approves the Proposed Motion.
The Fire Department anticipates electronic payment collection and billing, along with absorbing payment processing fees, would support Fire Department permit and fee collection efforts.
BACKGROUND AND DISCUSSION
City Council approved a new Agreement for Services between the City of Fullerton and Locality Media, Inc., dba First Due, on September 19, 2023. This agreement introduced the First Due records management software platform to the Fire Department, featuring a fire inspections and permits module. The City has integrated this module into Fire Department operations and City IT infrastructure.
Fire Prevention Specialists utilize First Due to conduct Life Safety Inspections, issue Fire Code Permits and then transfer records to the Administrative Services Department for fee billing. Residents and businesses find this process inconvenient as they await invoicing and the City accepting only mailed checks for payment. The City has approximately $83,710.42 in delinquent fire inspection and permit fees from 304 entities under review and the collection process as of January 2024.
The Fire Department proposes conducting all billing through the First Due software platform. First Due introduced an enhanced billing feature to the fire inspections module in partnership with Stripe, Inc., a service provider for online payment processing, in 2023. This update would enable Fire Prevention Specialists to instantly generate and provide invoices to customers at the time of inspection or permit issuance, streamlining the payment process.
First Due offers this service without additional fees, however, Stripe applies a 3.9%, transaction fee plus $0.30 for credit card processing and platform integration. First Due plans to introduce an ACH (eCheck) payment option in mid-2024, with a reduced flat fee for the City whenever customers opt for this payment method. The Fire Department would continue to offer mailed checks as a remittance option for City residents and businesses preferring traditional payment methods.
The Fire Department recommends the City absorb the additional fees rather than passing them to customers to promote timely online payments.
Attachments:
Attachment 1 – Amendment to Locality Media, Inc. Quote
Attachment 2 – Amendment to Locality Media, Inc. Agreement for Services cc: City Manager Eric J. Levitt
Amendment to Professional Services Agreement with Locality Media, Inc.
March 5, 2024 - Page 2