From
Gary Yakesch, Assistant Director Of Parks, Arts and Recreation
Title
Agreement with GolfNow, LLC for credit card processing and merchant services for an estimated annual amount of $37,313 for one year with the option to renew for nine additional one-year periods totaling approximately $373,130 if all extensions are exercised
Presenter
Duane Strawn, Director Of Parks, Arts and Recreation
Recommended Action
Approve
Analysis
Prairie Lakes Golf Course utilizes GolfNow LLC to manage point of sale functions to include tee time management, membership offerings, and retail operations. The addition of the credit card processing module is required in order to ensure timely, accurate, and seamless processing of credit card transactions via the point of sale system.
Fees charged under this agreement are based on a percentage of sale plus a transaction fee. The fees established under the agreement provide for a discount fee of 2.40% for card present transactions and 2.90% for card not present transactions. Additionally a transaction fee of .10 cents for card present and .30 cents for card not present is charged for each transaction. While it is anticipated most transactions should be card present, for purposes of establishing a baseline estimate of fees, a blended rate was used. Based on estimated annual credit card sales volume of $1,125,000 and estimated transactional volume of 37,500, the blended rate and transaction fee is estimated at $37,313.
Local government code 252 provides an exemption from the competitive bid process when an item or service is available from only one source, of which GolfNow LLC is the sole vendor in providing credit card processing and merchant services for their GolfNow point of sale application.
This item was presented to the Finance and Government Committee on September 1, 2020 for their review and recommendation to the City Council.
Financial Consideration
Funding for an Agreement with GolfNow, LLC, for an estim...
Click here for full text