Agenda Item AGENDA STAFF REPORT ASR Control 21-000729
MEETING DATE:	10/19/21
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	All Districts
SUBMITTING Agency/Department:	Treasurer-Tax Collector (Approved)
Department contact person(s):	Shari L. Freidenrich (714) 834-7625
	Chris Herrera (714) 834-7288

Subject: Amend Grant Street Group Contract to Add New Payment Processing Services

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Resolution to Form

Public Hearing

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

Staffing Impact:

No

# of Positions:

Sole Source: No

Current Fiscal Year Revenue: N/A

Funding Source: N/A

County Audit in last 3 years: No

Prior Board Action: 01/8/2019 #17, 06/05/2018 #14, 06/27/2017 #51, July 24, 2012 #39

RECOMMENDED ACTION(S):

1.	Conduct a public hearing as to the following proposed fees: a. A service fee of 2.79 percent of the payment amount for each payment transaction, with a minimum fee of $2.95, for payments made by credit card, as set forth in the proposed Resolution titled “Resolution of the Board of Supervisors of Orange County, California Establishing Credit Card and Debit Card Service Fees for Payment of Services Provided by the Sheriff’s Department.” b. A service fee of 2.79 percent of the payment amount for each payment transaction, with a minimum fee of $2.95, for payments made by debit card, as set forth in the proposed Resolution titled “Resolution of the Board of Supervisors of Orange County, California Establishing Credit Card and Debit Card Service Fees for Payment of Services Provided by the Sheriff’s Department.”
2.	Pursuant to California Public Resources Code Section 21080(b)(8), find that establishment and approval of each of the following proposed fees is exempt from the California Environmental Quality Act because each of said fees is for the purpose of meeting operating expenses: a. A service fee of 2.79 percent of the payment amount for each payment transaction, with a minimum fee of $2.95, for payments made by credit card, as set forth in the proposed Resolution titled “Resolution of the Board of Supervisors of Orange County, California Establishing Credit Card and Debit Card Service Fees for Payment of Services Provided by the Sheriff’s Department.” b. A service fee of 2.79 percent of the payment amount for each payment transaction, with a minimum fee of $2.95, for payments made by debit card, as set forth in the proposed Resolution titled “Resolution of the Board of Supervisors of Orange County, California Establishing Credit Card and Debit Card Service Fees for Payment of Services Provided by the Sheriff’s Department.”
3.	Adopt resolution titled "Resolution of the Board of Supervisors of Orange County, California Establishing Credit Card and Debit Card Service Fees and eCheck ACH Validation fees for Payment of Services Provided by the Sheriff’s Department.”
4.	Authorize the County Procurement Officer or authorized Deputy to execute Amendment No. One to amend the Contract with the Grant Street Group for electronic payment processing services for the remaining term of the Contract with no increase in Contract cost to add credit and debit card service fees and eCheck ACH Validation fees for the payment electronic payment services for the Sheriff’s Department as allowed by Government Code section 6159 and California Revenue and Taxation Code section 2511.11.

SUMMARY:

Approval of this amendment with the Grant Street Group will allow the public to pay by credit and debit cards and eCheck for various services provided by the Orange County Contract Sheriff’s Department.

BACKGROUND INFORMATION:

Revenue and Taxation Code section 2511.1 and Government Code section 6159 authorizes the use of credit card, debit card and electronic funds to pay for property taxes and other County fees, subject to approval by the Board of Supervisors (Board). Pursuant to these authorities, on July 24, 2012, the Board approved Resolution Number 12-091, authorizing the acceptance of credit and debit cards and payment of fees and held a public hearing at that time for service fees to be paid by the taxpayers/customers. Then, on August 13, 2019, the Treasurer-Tax Collector (Treasurer) contracted with a different vendor to provide similar payment services and reduce the service fees paid by taxpayers/customers. The Treasurer now desires to add the ability to process credit card, debit card and electronic payments with service fees for the Sheriff-Coroner Department. As a new service fee is being added as allowed by law, a public hearing is required for this new proposed fee.

The Sheriff-Coroner Department prepared a Fee Schedule that identified the fees and deposits that are required to be charged for various services. For each fee/deposit, there is a related code section authorizing the exact amount that is charged. As these fees/deposits are specified by law, the Sheriff-Coroner Department does not have an opportunity to increase the fee to cover any costs when these services are needed. Therefore, in order to recover the costs for processing payments electronically, a service fee is being requested to cover the merchant processing costs associated with the acceptance of credit and debit cards for our existing vendor, whose contract expires on April 30, 2022. The Treasurer is also adding a no cost eCheck payment option that uses a bank account. The National Automated Clearing House (NACHA) has a new web debit Account Validation rule effective in 2022, and the contract includes a 30 cent cost per ACH Validation that will be paid by the County. The current contract has sufficient funds and no increase in the contract amount is being requested. Expanding the payment options to include online payment by credit and debit cards and eChecks will allow the user of these services to determine the best payment option for them.

This contract includes subcontractors. See Attachment C for information regarding subcontractors and Contract Summary Form. The Orange County Preference Policy is not applicable to this Contract award.

Prior Board Actions

Board Date	Board Action	Contract Term
January 8, 2019	Approved Contract with Grant Street Group with Service Fees	Effective May 1, 2019, to April 30, 2022
June 5, 2018	Approved Amendment No. 6 with OPC with Service Fees	Effective August 1, 2018, to April 30, 2019
June 27, 2017	Approved Amendment No. 5 with OPC; with Service Fees	Effective August 1, 2017, to July 31, 2018
July 24, 2012	Approved Resolution Number 12-091, approved reduction of Services Fees with OPC	Effective June 28, 2012

Contractor Performance Evaluation:

The Contractor’s performance has been confirmed as at least satisfactory. The Treasurer has verified there are no concerns that must be addressed with respect to the Contractor’s ownership/name, litigation status or conflicts with County interests. The Treasurer recommends that the Contract be amended to add the new service.

FINANCIAL IMPACT:

N/A

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Amendment No One to MA-074-19010881
Attachment B - Amendment No One to MA-074-19010881 - Redlined
Attachment C - Contract Summary Form
Attachment D - Resolution for Credit and Debit Card Fees
Attachment E - Affidavit of Publication
Attachment F - Revenue and Taxation Code Section 2511.1
Attachment G - California Government Code Section 6159
Attachment H - California Government Code Section 54954.6
Attachment I - Resolution Number 12-091