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HomeMy WebLinkAboutAgenda - 06-29-2000-8rORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 29, 2000 Action Agenda Item No. ~~ f SUBJECT: Approval of Contract for Acceptance of Telephone and Internet Payments of Ad Valorem Taxes Utilizing Credit/Check-Debit Cards DEPARTMENT: Revenue/Tax Collector PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Revenue Director Memorandum -May 18, Jo Roberson, Revenue Collector 2000 Extension 2727 List of Governmental Units currently using Telephone and/or Internet Payment TELEPHONE NUMBERS: System Hillsborough 732181 Model Contract Chapel Hill 968-4501 Convenience Fee Schedule Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider approval of a contract with Official Payments Corporation for the acceptance of telephone and Intemet payments of Ad Valorem Taxes utilizing credit/check- debit cards. BACKGROUND: In an effort to provide additional means for taxpayers to meet their tax obligations, and to enhance overall public service, it has been proposed that Orange County begin accepting payments for Ad Valorem taxes via telephone and also via the Intemet. This would be accomplished by taxpayers utilizing credit cards and check-debit cards to pay applicable taxes. The payment by telephone would entail a taxpayer calling a designated telephone number listed on tax bills and on other taxpayer information documents (although the telephone number is not affiliated with the County Revenue Department), entering certain codes and security data as directed, and providing the appropriate card payment information. Payment via the Intemet would be linked to Orange County's web page with the taxpayer entering the appropriate card infom~ation in a secure manner in response to data prompts. Orange County's process and actions in pursuing this proposal are outlined in the attached memorandum. A list of govemmental units already providing the telephone payment method is attached. Davidson County is the only governmental entity currently providing the Internet payment option. The proposed contract is an open contract with no termination date and simply requires athirty-day notification for cancellation by either party. FINANCIAL IMPACT: There will be no financial impact to the County General Fund. The entire cost of using the service is charged to the consumer as a convenience fee. A convenience fee schedule is attached. The County incurs no costs. RECOMMENDATION(S): The Manager recommends that the Board authorize the County Manager to sign the Contract, subject to final review by staff and the County Attorney. MEMORANDUM To: Rod Visser Assistant County Manager From: Jo Roberson Revenue Director Date: May 18, 2000 Subj: Electronic Payment Recommendation Attached please find the initial package from Official Payments Corporation.. This is the company I would recommend we consider using to institute both an IVR System (use of the telephone) and Internet accessible PC payment with the capability to use both credit cards and check cazds. Ken Chavious has also reviewed the financial portion of this system and advises a positive compatibility with our current financial network. On of the positives of this company is that there is neither start up nor maintenance fees to Orange County to initiate these systems. Official Payments does collect a convenience fee from the individual using the system for payment. Therefore, at no time would there be any actual cost to Orange County for their services. They are willing to work with our folks by providing the necessary specifications to design our own web page for credit card/check cazd payments, which would be linked directly to our Internet site at no cost. They certainly have a proven track record with other taxing units in this state. Currently Gaston County, Rockingham County and several others aze using the telephones access system and are finding good response from the taxpayer. They have also indicated a favorable opinion of Official Payments regazding their responsiveness to questions or concerns. I personally was involved in the initial start of the Rockingham County system and found the follcs with Official Payments to be extremely responsive. In investigating other vendor availability I spoke with Wake County's Collector who indicated that though they do not use Official Payments, they do have a telephone only credit card payment system which last yeaz along handled over one million dollars in payments. Wake does use Voice, Data Solutions. The problem as I see their system is that they only have by-phone access. Wake is currently investigating Internet payment systems through other vendors. Ken Chavious, Dick Taylor,'and I met with a company known as EZGOV.com concerning their system. Their product is not bad, however they aze willing to accept only credit card payments for Registered Motor Vehicles and a check writing system via the Internet only for all other taxes. We agreed we felt this would be confusing to individuals. We also agreed that this would not necessarily meet the needs of all or the credit card, however they do not necessarily have access to a PC. Whereas, with the system I am recommending the citizen could access payment two different ways. The representative also indicated they are willing to waiver the initial start fee and the first year maintenance fees, however after the first year we were quoted $7500 per year to continue the service. Rick Hoffman, Regional Account Manager with Official Payments Corporation has indicated he will be more than willing to be present for questions be either yourself, Mr. Link and/or the BOCC at anytime requested. I would really like to see us move forward with the institution of this system so that we could provide the information needed to access these systems to the taxpayer by way of our billing statements. This will require a change in our present billing format. This would also require a web page design, which I have discussed with Buck Treadway. Therefore, I am requesting that we take whatever necessary steps to move this process along since I understand from John Smith that his office is working toward the end of July, 2000 to accomplish the 2000 billing. Thank you for taking the time to review this information. Please advise me what our next steps should be at your earliest convenience. Respectfully submitted. cc: Pam Jones -Purchasing Director Ken Chavious -Finance Director 4 NORTH CAROLINA STATE CLIENTS Brunswick County Revenue Property Tax -Vehicle Tax Buncombe County Property Tax -Vehicle Tax Caldwell County Property Tax --Vehicle Tax Chatham County Property Tax -Vehicle Tax City of New Bem Property Tax -Vehicle Tax Craven County Property Tax -Vehicle Tax Davidson County Property Tax -- ,Vehicle Tax Edgecombe County Property Tax -Vehicle Tax Gaston County Property Tax -Vehicle Tax Greene County Property Tax -Vehicle Tax Guilford County Property Tax -Vehicle Tax Haywood County Property Tax -Vehicle Tax Lincoln County Property Tax -Vehicle Tax Mitchell County Property Tax -Vehicle Tax Rockingham County Property Tax -Vehicle Tax Warren County Property Tax -Vehicle Tax Official Payments Corp. GOVERNMENT SERVICES AGREEMENT 5 This Agreement is made and entered into this 13 day of June, 2000, by and between Official Payments Corp. a Delaware corporation (hereinafter referred to as "OPC"), and Orange County, (hereinafter referred to as "GOVERNMENT ENTITY"). The term "OPC" shall refer to the company, its employees, its agents, and its subcontractors. In consideration of the mutual understandings herein contained, GOVERNMENT ENTITY and OPC agree as follows: 1. DEFINITIONS The following terms will have tits following meanings: A. "Card" means an unexpired and valid credit transaction card bearing the service marks of VISA, MasterCard, American Express or Novus/Discover Card Services, or other service marks as mutually agreed upon by GOVERNMENT ENTITY and OPC. B. "Cardholder" means the person whose name is embossed on the Card, and whose name also appears signed on the reverse side. C. "Charge Back" means a reversed or rejected Card Transaction or a Card Transaction in which the Cardholder or the Card Issuer questions or disputes the validity of a transaction posted to a Cardholders account. D. "System" means the Official Payments Corp. processing system or systems. E. "Card Transactions" means those transactions generated by Cardholders via the System and for the purpose of Cardholders making payments of fines, fees, and/or taxes to GOVERNMENT ENTITY. F. °Convenience Fees" means the fees d7arged to a Cardholder, in addition to the amount to be paid to GOVERNMENT ENTITY, for the convenience that the Cardholder gains by utilizing the System. 2. SCOPE OF AGREEMENT A. Pursuant to this Agreement, the obligations of OPC are: 1) To settle GOVERNMENT ENTITY'S Card Transadions.to the appropriate Card assoclations, Card networks and Card issuers. 2) To pay GOVERNMENT ENTITY the gross amount of its Card Transactions, including the Cardholders Convenience Fees. OPC will have the right, on a monthly basis, to invoice GOVERNMENT ENTITY for all Convenience Fees paid to GOVERNMENT ENTITY. 3) To provide processing services for the purpose of accepting various Cards as agreed to by both parties. OPC shall provide for the acxeptance of fines, fees, taxes and/or other obligations owed to GOVERNMENT ENTITY. 4) To store and retrieve Card Transactions for a minimum of thirty-six (36) months from the transaction date. This responsibility shall survive the termination of this Agreement. 5) To electronically transmit all Card Transactions to the designated processing center, in real time, as the transactions occur. The System will balance and reconcile each day's electronically captured transactions on a daily basis. The System will, when necessary as a result of such reconclliation, process all appropriate adjustments. 6) To dearly disclose Convenience Fees to Cardholders prior to completing the Card Transactions. 7) To cause an authorization Dods to be obtained on every Card Transaction. B. Pursuant to this Agreement, the obligations of GOVERNMENT ENTITY are: 1) GOVERNMENT ENTITY will adhere fully to the rules and regulations of the various Card assodations, Card networks and Card issuers. 2) GOVERNMENT ENTITY will not impose any surcharges on Card Transactions made under this Agreement. Convenience Fees, assessed by OPC, are permitted for those Card Transactions that are processed via the System. 3) GOVERNMENT ENTITY will not require a Cardholder, as a condition for honoring a Card, to agree in any way to waive the Cardholders rights to dispute the transaction with the Card issuer. 4) Prior to including any Card specific logos or marks in any signs or in any printed and broadcast materials, GOVERNMENT ENTITY will obtain written approval for such usage from OPC. 5) GOVERNMENT ENTITY will establish and maintain a reasonable adjustment polity to accommodate adjustments that are required in the normal course of GOVERNMENT ENTITY'S daily operation. GOVERNMENT ENTITY may restrict its adjustment policy, provided that a proper disclosure of such restriction is made to Cardholder at the time that the Card Transaction takes place. Proper ~disdosure may not include any statement that in any way waives a Cardholders right to dispute the transaction with the Card issuer. Official Payments Corp., Stamford, CT Page 1 Official Payments Cnrn 6 6) OPC will have the right, at any time, to invoice GOVERNMENT ENTITY for all incoming Charge Backs, or other types of returned items, that are deemed valid and proper by any of the Card associations, Card networks, Card issuers or any other appropriate regulatory agency. OPC will only charge GOVERNMENT ENTITY the original amount of the Card Transaction that was originally paid to GOVERNMENT ENTITY. OPC will be responsible for the Convenience Fees and any service fees related to the Charged Badc Card Transaction, excluding GOVERNMENT ENTITY's bank fees, if any. 7) To be responsible for all promotion and advertising of the Card payment program. GOVERNMENT ENTITY will print the System's telephone number on all citations and notices. 8) GOVERNMENT ENTITY agrees that the Officlal Payments Corp. System shall be their exGusive Card acceptance service and agrees not to accept Card payments over-the-counter, through the mail, or through any other service. 3. COSTS AND PAYMENTS A. OPC shall provide all services at no cost to GOVERNMENT ENTITY. OPC agrees to pay all Card processing fees on behalf of GOVERNMENT ENTITY. B. For Visa, MasterCard, Discover and American Express transactions, OPC shall be responsible for routing the GOVERNMENT ENTITY'S funds to the GOVERNMENT ENTITY'S bank account via ACH transactions. Official Payments Carp. shall invoice GOVERNMENT ENTITY an a monthly basis for the Convenience Fees. All expenses associated with Visa, MasterCard, Discover and American Express will be paid by OPC. C. GOVERNMENT ENTITY will pay all OPC invoices permitted under this Agreement, without delay, and never longer than thirty (3D) calendar days from the date of the invoice. 4. TERM OF AGREEMENT This Agreement shall commence on the date the System is first implemented and will continue on a month to month basis thereafter. Termination of this Agreement shall be by thirty (30) day written notice and may be given by either party. Said termination notice shall be considered to be rendered when placed in the United States Postal System, postage prepaid, via registered or certified mail, for delivery to the other party. Upon termination, both parties shall be released from all contractual obligations to the other party; excluding Card related liabilities and obligations of either party, pursuant to the rules and regulations of the various Card assodations, Card networks and Card issuers, including but not limited to the right of OPC to continue charging valid Charge Backs to GOVERNMENT ENTITY for the term and to the extent provided for in such rules and regulations; and further exduding the Sed~ons of this Agreement entitled Scope of Agreement, Non Disclosure and Indemnification. 5. EMPLOYMENT STATUS In pertormance of the services referenced herein, OPC is, and shall remain, an independent contractor, and is not an agent or employee of GOVERNMENT ENTITY. 6. RECORDS AND AUDIT OPC will keep complete and accurate records for the services performed pursuant to this Agreement and any records required (i) by law; (ii) by governmental regulation; (iii) by Card issuing banks, Card assocatons, Card networks, or (iv) by any other ruling or regulatory agencies having any jurisdiction over either party, except as prohibited by law. OPG shall make all records available for audit to GOVERNMENT ENTITY at OPC's location, and upon reasonable written request of GOVERNMENT ENTITY. 7. OWNERSHIP A. GOVERNMENT ENTITY retains far itself, and OPC acknowledges that GOVERNMENT ENTITY so retains ownership and rights of ownership to all Card transaction records entered into the OPG database, as a result of Cardholders using the System. Card transaction settlement files created by OPG and submitted to VISA, MasterCard, Discover or American Express, ultimately resulting in a credit to GOVERNMENT ENTITY'S bank account, shall become the property of OPC. B. Official Payments Corp. retains for itself, and GOVERNMENT ENTITY acknowledges that OPC so retains ownership and rights of ownership to all Systems, telephone lines and telephone numbers, connected to OPC's data center used in the pertormance of this Agreement. 8. NON-DISCLOSURE A. Both parties expressly covenant and agree that they will not, at any time during, and for one year following the termination of this Agreement by either party and for whatever ,reason, reveal or make known to any person, firm, ar corporation, any information disclosed to it by the other, relating to the terms of this Agreement, Card Transaction data, business plans, product research and development plans, customer relationships; supplier relationships, project and sales opportunities, proposal or bid strategies, corporate strategies, or any information which has been marked "Confidential" by the disclosing parry, including, but not limited to, all information relating to OPC's Systems. Official Payments Corp., Stamford, CT Page 2 gfficial Payments Corp Notwithstanding the fact that confidential information may be disclosed, it is understood and agreed that all such information shall remain the property of the disclosing party and no use shall be made of such information except as is required by the terms of the business relationship between the parties in accordance with the instructions, and with the consent of the disclosing party. C. Neither party shall copy, photograph, photocopy or in any other manner reproduce or cause reproduction to be made of any plans. spedfications, formulae, instructions or any other document or information furnished to it without the express written permission of the other party. Neither parry will disclose any verbal confidential information which may be communicated to it. Immediately upon termination of the business relationship between the parties, whatever may be the reason for such termination, or at the request of either parry, each party shall return to the other all plans, equipment, speclfications, formulae, instructions and any other documents or information delivered or communicated to it by the other party. Notwithstanding anything to the contrary herein before set forth or implied, the obligations of non-use and maintenance of confidentiality shall not apply to any information: 1) which, at the time of disclosure, is part of the public domain; 2) which, at the time of disclosure, is already known to the redpient thereof or its employees; 3) which, subsequent to the time of disclosure, becorY-es part of the public domain by reason of authorized publications; or 4) which is required to be released, as a direct result of the issuance of court orders or subpoenas, or as may be directed by Card issuing banks, Card assoclations, or any other ruling or regulatory agendes having any jurisdiction over either party, or as a result of their published rules andlor regulations, except as prohibited by law. E. These non-disclosure provisions shall survive the termination of this Agreement. 9. INDEMNIFICATION A. OPC agrees to indemnify and hold the GOVERNMENT ENTITY, its governing body and member, directors, officers, employees and agents ("GOVERNMENT ENTITY Parties") harmless from and against any and all liability, demands, claims, actions, loses, interest, costs of defense, and expenses (including reasonable attorney's fees) which arise out of its acts or omissions in connection with this Agreement, except for the GOVERNMENT ENTITY Parties' negligence or willful misconduct. B. GOVERNMENT ENTITY agrees to indemnify and hold the OPC, its directors, officers, employees and agents (°OPC Parties') harmless from and against any and all liability, demands, claims, actions, loses, interest, costs of defense, and expenses (including reasonable attorney's fees) which arise out of its acts or omissions in connection with this Agreement, except for the OPC Parties' negligence or willful misconduct. C. These indemnification and hold harmless provisions shall survive the termination of this Agreement. 10. THIRD PARTY BENEFICIARIES Notwithstanding mutual recognition that use of the System under this Agreement may provide some aid or assistance to members of the GOVERNMENT ENTITY'S population, it is not the intention of either the GOVERNMENT ENTITY or OPC that such individuals occupy the position of intended third party beneficiaries of the obligations assumed by either party to this Agreement. 11. NOTICES A. MAILING OF NOTICES All notices, requests, demands and other wmmunications under this Agreement which are required to be in writing shall be deemed as having been duly given on the date of service, if served personally on the party to whom notice is ~ be given, or on the date of mailing, if mailed to the party to whom notice is to be given, by first pass mail, registered or certified, postage prepaid, and properly addressed as follows: IF TO GOVERNMENT ENTITY: Orange County Department of Revenue 200 South Cameron Street Hillsborough, NC 27278 IF TO OPC: Offldal Payments Corp. Three Landmark Square Stamford, CT 06901 B. CHANGE OF ADDRESS Either party may change the address at which notice may be given by giving ten (10) days prior written notice of such change to the other party. Official Payments Corp., Stamford, CT Page 3 Official Payments Corp. 12. GENERAL A. This Agreement is the final, entire and complete agreement between GOVERNMENT ENTITY and OPC, and supersedes any prior and contemporaneous negotiations, understandings, representations and agreements. The terms and provisions of this Agreement may not'be waived ar amended except by a written agreement between the parties. B. Should any provision of this Agreement or any amendment be held by any court to be unenforceable, such defect shall not affect the remainder of this Agreement, which shall remain in full force and effect. C. Any failure by OPC at any time tp require strict compliance with this Agreement shall not waive or diminish any right of OPC to demand strict compliance. Na waiver of any default by GOVERNMENT ENTITY shall waive or affect any other default by GOVERNMENT ENTITY. D. In the event of any dispute in connection with this Agreement, including all addenda, amendments, revisions and periodic disGosures, the prevailing party shall be entitled to recover costs of suit, including reasonable attorney's fees. E. OPC is a provider of various Card related products and services in conjunction with Imperial Bank, a California banking corporation. Imperial Bank will be the VISA and MasterCard Card Transaction settlement bank, providing all related VISA and MasterCard Gard settlement services under the terms and wnditions of this Agreement. IN WITNESS WHEREpF, the parties have caused this Agreement, which shall inure to the benefit of and be binding upon the successors of the respective parties to be signed and entered as of the date first mentioned above. OPC Official Payments Corp. Three l~ndmartc Square Stamford, CT 06901 By: Print: Title: Date: C,owPcoe.aoc Apn~ ~a, t5ss GOVERNMENT ENTITY Orange County Department of Revenue 200 South Cameron Street Hillsborough, NC 27278 By: Print: Title: Date: 8 Official Payments Corp., Stamford, CT Page 4 9 APPENDIX F OFFICIAL PAYMENTS CORPORATION 888-2PAY-TAXs"" Convenience Fee Schedules Tax Pa ment 0 Lions Onl •For payments above x100,000 to 510,000,000 please contact your credit card issuer for pre-approval. Then caM Official Payments Carporatlon at 800/4$7~5i37 m Copyright 1988, Official Paymenp Corp. San Ramon, CA Combined 88b2PAY-TAX Fes Sehedule.doe Rev. M99