TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 34857 with Kubra America West, Inc., of Gardena, CA, for payment processing for City of Long Beach (City) services, to extend the term of the contract for a period of two years, with the option to renew for three additional one-year periods, if necessary. (Citywide)
DISCUSSION
City Council approval is requested to amend Contract No. 34857 with Kubra America West, Inc. (Kubra), for payment processing for City services, to extend the contract term for a period of two years, with the option to renew for three additional one-year periods, if necessary.
On July 11, 2017, the City Council awarded a contract to Kubra to provide payment processing for City services. Kubra processes credit card, debit card and electronic check payments made to the City for various bill types made via the web, phone, in-person, and designated retail locations. The current contract expires on December 3, 2022.
Extending the contract with Kubra will allow the City to continue to provide payment processing services while the City prepares a Request for Proposal (RFP) for a new payment processor. Replacing the current payment processor will require a complex implementation process requiring integrations with many billing systems. The development of a competitive RFP, as well as the implementation of a new complex system would require extensive City staff effort from multiple customer departments and the Technology and Innovation Department.
Kubra has notified the City that due to escalating credit card payment processing fees imposed by financial institutions that issue credit cards and debit cards, a price increase is necessary. Kubra provided several payment processing fee options for consideration by the City. City staff analyzed the options presented by Kubra to determine the one that best serves the City and its customers. Based on staff analysis, the recommended op...
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