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City of San Leandro <br />Meeting Date: March 15, 2021 <br />Staff Report <br />Agenda Section:File Number:21-131 CONSENT CALENDAR <br />Agenda Number:8.E. <br />TO:City Council <br />FROM:Fran Robustelli <br />Interim City Manager <br />BY:Susan Hsieh <br />Finance Director <br />FINANCE REVIEW:Susan Hsieh <br />Finance Director <br />TITLE:Staff Report for a City of San Leandro City Council Resolution Authorizing the <br />City Manager to Execute Agreement with Worldpay Integrated Payment for <br />Merchant Payment Processing at Monarch Bay Golf Club <br />SUMMARY AND RECOMMENDATION <br />Approve and authorize the City Manager to execute the merchant processing agreement with <br />Worldpay Integrated Payments for payment processing services for credit card transactions at <br />the Monarch Bay golf club. The proposed agreement, not to exceed $150,000 annually, covers <br />processing services and charges of 2.75% per transactions by card users. This rate may not <br />increase above 5% during the term of the agreement. Charges for this service are restricted to <br />golf course activities. <br />BACKGROUND <br />On June 1, 2020, City Council terminated the lease agreement with American Golf Corporation <br />and entered into a management agreement. Under the lease, all golf revenues went directly to <br />American Golf. Under the management agreement, all revenues received by American Golf are <br />immediately deposited in a City bank account. The agreement with Worldpay allows for credit <br />card payments to flow directly to the City’s bank. <br />DISCUSSION <br />WorldPay is the required processor for American Golf’s point-of-sale system at the Monarch Bay <br />facility. Worldpay performs tasks associated with the processing of credit card transactions at <br />the course, the credit card companies (Visa, MasterCard, and Discover) and the financial <br />institutions issuing the credit cards. The contractual payments vary based on credit card usage <br />and interchange fees charged by the credit card companies. Fees required of the City combine <br />the fee charged by the merchant processor and the interchange fees assessed by the credit card <br />companies. The interchange fees are passed through by the merchant processor and represent <br />Page 1 City of San Leandro Printed on 3/10/2021 <br />84