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File Number: 21-131 <br />the major component of fees paid by the City, accounting for approximately 69% of total fees. <br />Interchange fees differ based on variety of factors including the credit card company, the type of <br />card (rewards cards or business cards), and other elements including transaction size. <br />American Golf does not pay a fee for the point of sale system but requires the use of Worldpay to <br />process the credit card transactions. American Golf uses the same point of sale program at <br />more than 50 courses and Worldpay is their processor. For the City to accept the credit card <br />payments for golf course customers, the City must use Worldpay. Staff recommends the contract <br />term coinciding with the agreement terms that the City maintains with American Golf. <br />FISCAL IMPACT <br />Total fees will vary according to the number and volume of transactions. Credit card fees are <br />likely to increase as more customers utilize credit/debit card payment methods. It is anticipated <br />that fees will exceed the $50,000 threshold required for the City Council approval and there are <br />sufficient revenues in the golf course operations to cover the costs of this contract. <br />American Golf reports that Fiscal Year 2020-2021 total golf course revenues through December <br />31, 2020-2021 were $2,756,000; largely through credit card transactions. Worldpay will provide <br />a monthly activity analysis statement. The total fees will be deducted from the remittance of <br />receipts Worldpay submits to the City at the beginning of each month. <br />CONCLUSION <br />Staff recommends that the City Council authorize the City Manager to execute the merchant <br />processing agreement with Worldpay Integrated Payments for payment processing services for <br />credit card transactions at the Monarch Bay golf club. <br />Attachments to Resolution <br />·Attachment 1 - Merchant Agreement and applications with WorldPay - Food & Beverages <br />·Attachment 2 - Merchant Agreement and applications with WorldPay - Retail <br />PREPARED BY: Karen Chang, Assistant Finance Director <br />Page 2 City of San Leandro Printed on 3/10/2021 <br />85