2016-29311 Reso RESOLUTION NO. 2016-29311
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, WAIVING, BY 517TH VOTE, THE
COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO
BE IN THE BEST INTEREST OF THE CITY; AND APPROVING AND
AUTHORIZING THE ADMINISTRATION TO SIMULTANEOUSLY
NEGOTIATE WITH SIX PAYMENT SERVICES CORP AND PAYMENT
EXPRESS, FOR A GATEWAY PROVIDER OF CREDIT CARD
PROCESSING SERVICES FOR THE CITY'S GATED PARKING
REVENUE CONTROL SYSTEM; AND FURTHER AUTHORIZING THE
CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE FIRM
DEEMED TO BE IN THE BEST INTEREST OF THE CITY UPON
CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE
ADMINISTRATION.
WHEREAS, on September 30, 2015, the City Commission approved the award
of a contract to Skidata, Inc. for a full replacement of the City's gated parking revenue
control system, and as a result the City will be upgrading its parking revenue control
equipment; and
WHEREAS, the project will include replacement of the City's outdated gated
revenue control system, which, in addition to improved and added functionality, will
include an upgrade to the acceptance of credit card payments, in order to be in
compliance with the new Europay, Mastercard, Visa (EMV) standards; and
WHEREAS, EMV is an open standard for chip-based payment cards and
acceptance infrastructure that is designed to protect against card-present fraud and
increase global acceptance and interoperability of credit cards;
WHEREAS, it is important for the City to upgrade to the EMV standard because
in the United States, after October of 2015, the fraud liability shifted to the merchant;
therefore, if a skimmed EMV chip card is fraudulently used at a merchant's business,
and the merchant's equipment does not utilize the EMV payment acceptance service,
the merchant is liable for the fraud; and
WHEREAS, Skidata has informed the City that it has only two approved third-
party EMV capable credit card processing service providers that can integrate with its
gated parking revenue control system, Six Payments Services Corp. and Payment
Express; and
WHEREAS, as a result, the Administration is unable to seek competitive
proposals through a traditional procurement solicitation for a third-party EMV capable
credit card processing service provider and is seeking authority to negotiate with the two
service providers approved by Skidata in order to determine the best value for the City.
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NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND
CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the
Mayor and City Commission hereby waive, by 5/7th vote, the competitive bidding
requirement, finding such waiver to be in the best interest of the City; and
approve and authorize the Administration to simultaneously negotiate with Six
Payment Services Corp. and Payment Express, for a gateway provider of credit
card processing services for the City's gated parking revenue control system;
and further authorize the City Manager to execute an agreement with the firm
deemed to be in the best interest of the City upon conclusion of successful
negotiations by the Administration.
PASSED and ADOPTED this 9 day of Hart 2016.
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City Attorne Date
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution waiving, by 5/7th vote, competitive bidding, finding such waiver to be in the best interest
of the City; and approving and authorizing the Administration to simultaneously negotiate with Six
Payment Services Corp and Payment Express, for a gateway provider of credit card processing
services for the City's PARC system, in an amount not to exceed $500,000; and further authorizing
the City Manager and City Clerk to execute an Agreement with one of the providers upon conclusion
of successful negotiations by the Administration.
Key Intended Outcome Supported:
Strengthen Internal Controls To Achieve More Accountability.
Item Summary/Recommendation:
On September 30, 2015, the City Commission approved the award of a contract to Skidata, Inc. for a
full replacement of the City's gated parking revenue control system. As a result, the City will be
upgrading its parking revenue control equipment. The project will include replacement of the City's
outdated gated revenue control system, which, in addition to improved and added functionality, an
upgrade to the acceptance of credit card payments to be in compliance with the new Europay,
Mastercard, Visa (EMV) standards.
EMV is an open standard for chip-based payment cards and acceptance infrastructure that designed
to protect against card-present fraud and increase global acceptance and interoperability of credit
cards. It is important for the City to upgrade to the EMV standard because, in October 2015 fraud
liability shifted in the United States. Therefore, if a skimmed EMV chip card is fraudulently used at a
merchant who has not upgraded to EMV payment acceptance, the merchant is liable for the fraud.
Skidata has informed the City that it has only two approved third-party EMV capable credit card
processing service providers that can integrate with its gated parking revenue control system — Six
Payments Solution and Payment Express. As a result, the Administration is unable to seek
competitive proposals through a traditional procurement solicitation for a third-party EMV capable
credit card processing service provider and is seeking authority to negotiate with the two service
providers approved by Skidata in order to determine the best value for the City.
Recommendation: Adopt the Resolution
In order to determine the contract that is in the best interest of the City, I am recommending that the
Mayor and City Commission of the City of Miami Beach, Florida, approve the resolution authorizing
the waiver of competitive bidding, by 5/7s vote, and authorizing the Administration to negotiate
simultaneously with Six Payment Solutions and Payment Express, both being authorized EMV
(Europay Mastercard Visa) gateway providers for credit card processing for the Skidata parking
revenue control equipment.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1
2
3
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Saul Frances
Sign-Offs: •
De• ment D' ector Assi nt City Manager City Manager
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T:\AGENDA\2016\March\' rking\EMVWaiver.sum.'ocx
MIAMIBEACH AGENDA ITEM 7 C-
DATE 3 9—/6
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COM r ISSION MEMORANDUM
TO: Mayor Philip Levine and Members •' the City C mission
FROM: Jimmy L. Morales, City Manager _i•• ••r.►
DATE: March 9, 2016
SUBJECT: A RESOLUTION OF THE MAYO AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, WAIVING, BY 517TH VOTE, THE
COMPETITIVE BIDDING REQUIREMENTS, FINDING SUCH WAIVER TO
BE IN THE BEST INTEREST OF THE CITY; AND APPROVING AND
AUTHORIZING THE ADMINISTRATION TO SIMULTANEOUSLY
NEGOTIATE WITH SIX PAYMENT SERVICES CORP AND PAYMENT
EXPRESS, FOR A GATEWAY PROVIDER OF CREDIT CARD
PROCESSING SERVICES FOR THE CITY'S GATED PARKING REVENUE
CONTROL SYSTEM; AND FURTHER AUTHORIZING THE CITY
MANAGER TO EXECUTE AN AGREEMENT WITH THE FIRM DEEMED TO
BE IN THE BEST INTEREST OF THE CITY BY THE CITY MANAGER
UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE
ADMINISTRATION.
ADMINISTRATION RECOMMENDATION
APPROVE THE RESOLUTION.
FUNDING
Funding is available in the following parking funds:
480-0461-000313 $44,000
463-1990-000313 $6,000
467-1996-000313 $4,000
484-0470-000313 $1,000
TOTAL $55,000
BACKGROUND AND ANALYSIS
On September 30, 2015, the City Commission approved the award of a contract to
Skidata, Inc. for a full replacement of the City's gated parking revenue control
system. As a result, the City will be upgrading its parking revenue control
equipment. The project will include replacement of the City's outdated gated
revenue control system, which, in addition to improved and added functionality, an
upgrade to the acceptance of credit card payments to be in compliance with the new
Europay, Mastercard, Visa (EMV) standards.
EMV is an open standard for chip-based payment cards and acceptance
infrastructure that designed to protect against card-present fraud and increase global
acceptance and interoperability of credit cards. It is important for the City to upgrade
to the EMV standard because, in October 2015 fraud liability shifted in the United
March 9, 2016
Parking Revenue Control Equipment-Credit Card Processing
Page 2 of 2
States. Therefore, if a skimmed EMV chip card is fraudulently used at a merchant
who has not upgraded to EMV payment acceptance, the merchant is liable for the
fraud.
Skidata has informed the City that it has only two approved third-party EMV capable
credit card processing service providers that can integrate with its gated parking
revenue control system — Six Payments Solution and Payment Express. As a result,
the Administration is unable to seek competitive proposals through a traditional
procurement solicitation for a third-party EMV capable credit card processing service
provider and is seeking authority to negotiate with the two service providers
approved by-Skidata in order to determine the best value for the City.
CITY MANAGER'S RECOMMENDATION
In order to determine the contract that is in the best interest of the City, I am
recommending that the Mayor and City Commission of the City of Miami Beach,
Florida, approve the resolution authorizing the waiver of competitive bidding, by 5/7s
vote, and authorizing the Administration to negotiate simultaneously with Six
Payment Solutions and Payment Express, both being authorized EMV (Europay
Mastercard Visa) gateway providers for credit card processing for the Skidata
parking revenue control equipment.
0
17
JLM/KC :/SF
t:\agenda\2016\march\parking\emvwaiver.cmo.docx
We are committed to providing excellent public service and safely to all who live, work, and ploy in our vibrant, tropical, historic community.
IIi ; ..' e,
K U D E L S K I G R O U P
Rocio Alba
Parking Administrator
City of Miami Beach
1755 Meridian Ave.
Miami Beach,FL 33139
February 8,2016
Sub: EMV payment solution
Dear Rocio,
Per your request and requirement for ITN 2104-170-SW,SKIDATA Inc.is pleased to communicate
that we have established two EMV payment solution providers (Six Payment services and Payment
Express)that have been approved for an EMV capable integrated payment solution for our devices.
Although SKIDATA has certified these 3rd party providers and utilize their approved hardware,an
account must be established directly with one of these providers separate from any SKIDATA
contract.We have recommended Six Payment Solutions for the Miami Beach Pares project due to
the long history and experience of working with Six Payment not only in North America but globally
at our other corporate locations.
We have received very positive feedback from our clients about Six Payment Solutions for their
excellent customer service and fee structure.Six Payment has provided SKIDATA customers
payment services prior to the introduction of their EMV solution and are a leader in the payment
industry.
I would also like to mention that it is vital that the city engage with the provider as soon as possible
since it takes approximately three weeks to set up the account and processing with the goal of
avoiding any delays in the deployment schedule.
Please let me know if you have any additional questions or would like any further clarification.
Thank you for the opportunity to serve the City of Miami Beach.
Kind Regards,
Steve Sussman
Sales-Central and South Florida
SKIDATA, Inc.
One Harvard Way, Suite 5
Hillsborough,NJ 08844
U.S.A.
[p] 305-741-9720
[e] stephan.sussman @skidata.com