Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00173 February 8, 2022 Consent Item 09
Title: Agreement for Payment Processing Services: Windcave, Incorporated [Two- Thirds Vote Required]
Location: Citywide
Recommendation: Pass a Motion: 1) determining it is in the best interest of the City to suspend competitive bidding; 2) suspending competitive bidding; and 3) authorizing the City Manager or the City Manager’s designee to execute an agreement with Windcave, Incorporated for payment processing services used in the operation of the City’s parking access and revenue control equipment installed in the City’s five parking garages for a term of four years with one four-year extension term option.
Contact: Matt Eierman, Parking Services Manager, (916) 808-5849, [email protected], Department of Public Works Presenter: None
Attachments:
1-Description/Analysis
2-Agreement with Windcave, Incorporated
File ID: 2022-00173 Consent Item 09
February 8, 2022
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City of Sacramento
Description/Analysis
Issue Detail: In 2015, the City purchased a new parking access and revenue control system (“PARCS”) from Amano McGann (“Amano”). At the time of purchase and installation, Amano maintained a contract with Nationwide Payment Systems (“Nationwide”) to process all payment card transactions initiated through its PARCS systems.
In 2018, Amano switched to Windcave Incorporated as its sole payment card gateway provider. The payment card terminals provided by Nationwide are limited in their functionality in only accepting payment cards with magnetic stripe technology. Windcave terminals accept EMV cards (smart cards or chip cards) and incorporate NFC (“Near Field Communication”) protocols allowing the terminals to accept contactless payment such as Apple Pay, Google Pay, or contactless chip cards.
While the City’s Amano PARCS system continues to use Nationwide as its payment processor, Amano will eventually roll back its support of Nationwide services and technologies. Therefore, Parking Services staff recommend: 1) suspension of competitive bidding for payment processing services as Windcave is the sole provider for Amano PARCS systems and Amano will not support other providers, severely limiting the functionality of the City’s PARCS system; and 2) entering into an agreement with Windcave for payment processing services. To enable the City’s PARCS system to process payments through Windcave, Amano will install Windcave compatible payment terminals throughout the City’s PARCS system at no cost to the City.
Policy Considerations: The recommendations in this report are in accordance with 1) City Code Chapter 3.56.230(C) allowing the City Council to suspend competitive bidding for non- professional services when, by a two-thirds vote, the City Council finds that it is in the best interest of the City to suspend competitive bidding; and 2) the Central City Parking Master Plan goal to make parking safe, secure, attractive, and convenient.
Economic Impacts: None
Environmental Considerations:
California Environmental Quality Act (CEQA): The recommended payment processing services specified in this report do not constitute a project under the California Environmental Quality Act (CEQA) because the activities amount to continuing administrative activities under CEQA Guidelines section 15378(b)(2) and are not subject to CEQA [CEQA Guidelines Section 15060(c)(3)].
File ID: 2022-00173 Consent Item 09
February 8, 2022
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City of Sacramento
Sustainability: This action supports the City of Sacramento’s sustainability goals to improve and optimize the transportation infrastructure.
Commission/Committee Action: None
Rationale for Recommendation: The City’s current PARCS system, purchased from Amano McGann in 2015, processes payment card transactions through Nationwide Payment Systems. In 2018, Amano switched to Windcave Incorporated as its preferred payment processing provider and will eventually roll back its support of Nationwide services and technologies. As a result, Parking Services staff is recommending the suspension of competitive bidding and entering into contract with Windcave for payment processing services. Because Windcave is the sole provider for Amano PARCS systems, other payment processing providers will not be supported by Amano severely impacting the functionality of the City’s PARCS system.
Switching to Windcave will allow the City to provide contactless payment options at its garages, such as Apple Pay and Google Pay or contactless chip cards. Nationwide terminals currently do not have that ability.
Financial Considerations: Under terms of the proposed agreement, the City will pay Windcave a one-time establishment fee of $125, $300 per month for the first 10,000 transactions, and $0.03 per additional transactions per month. There will be additional fees for support services. The City currently pays Nationwide $15 per month and $0.04 per transaction.
There is sufficient funding available in the Fiscal Year (FY) 2021/2022 Department of Public Works, Parking Services Division’s operating budget (Fund 6004) to support the first year of the contract. Support for succeeding fiscal years shall be subject to funding availability in the adopted budget of the applicable fiscal year.
Local Business Enterprise (LBE): The minimum LBE participation requirement is waived as the City has suspended competitive bidding and utilized an alternate procurement method to select a vendor(s).