Resolution 2018-30159RESOLUTION NO. 2018 -30159
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE WRITTEN
RECOMMENDATION OF THE CITY MANAGER (AS FURTHER SET
FORTH IN THE CITY COMMISSION MEMORANDUM ACCOMPANYING
THIS RESOLUTION) AND WAIVING, BY 5 /7THS VOTE, THE FORMAL
COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO
BE IN THE CITY'S BEST INTEREST, AND APPROVING AND
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A
CREDIT CARD PROCESSING AGREEMENT FOR THE MIAMI BEACH
GOLF CLUB AND NORMANDY SHORES GOLF CLUB, WITH ETS
CORPORATION, IN A FORM ACCEPTABLE TO THE CITY MANAGER
AND THE CITY ATTORNEY, FOR A THREE (3) YEAR TERM, WITH
TWO (2) ADDITIONAL ONE (1) YEAR RENEWALS, IN AN AMOUNT
NOT TO EXCEED $115,000.00 EACH YEAR.
WHEREAS, the Miami Beach Golf Club and the Normandy Shores Golf Club
(collectively, the "Golf Clubs ") re- opened in 2002 and 2008, respectively; and
WHEREAS, the management company for the Golf Clubs, Professional Course
Management ( "PCM "), has used "Fore! Reservations" as the point of sale and tee time
reservation system for the pro shops at the Golf Clubs; and
WHEREAS, Fore! Reservations integrates with only two credit card processors, namely,
ETS Corporation and Mercury; and
WHEREAS, as the City has a credit card processing agreement in place with First Data,
PCM has been unable to integrate its credit card processing to the point of sale system at the
Golf Clubs, which has resulted in processing credit and debit card transactions with a separate
terminal; and
WHEREAS, the current setup has created a host of administrative and customer service
issues, and has resulted in (!) slow payment processing and duplication of the steps the pro
shop attendant needs to take to complete a transaction; (ii) increased potential for operator
errors resulting from use of manual tender method for entering transaction amounts; (iii) data
entry errors that complicate the daily reconciliations of sales; (iv) the inability to use gift cards,
requiring staff to use more cumbersome paper gift certificates; (v) the inability to take credit card
guarantees for tee time reservations to avoid no shows; and (vi) errors resulting in double billing
of customers; and
WHEREAS, the Administration has researched the possibility of changing point of sale
system, and has identified several credit card processing options capable of integrating with
First Data, but all of them cost substantially more than the current system, with the most
economical option costing over $5,400 more annually than the current system, for each Golf
Club; and
WHEREAS, in view of the increased costs to the City associated with integrating with
First Data, the Administration recommends using a different credit card processing company for
the Golf Clubs, ETS Corporation, in an effort to resolve the administrative and customer service
issues currently being experienced, while incurring no additional expense (and potentially
reducing) credit card processing costs; and
WHEREAS, as set forth in the City Commission memorandum accompanying this
Resolution, the City Manager has recommended waiving the competitive bidding requirement,
as being in the City's best interest, and recommends that the Mayor and City Commission
authorize the City to negotiate an agreement with ETA Corporation, in a form acceptable to the
City Manager and City Attorney, for a term of three (3) years, with two (2) additional one (1) year
renewal operations, to be exercised at the City Manager's discretion, and in an amount not to
exceed a total of $115,000.00 each year for both Golf Clubs.
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 accept the written recommendation of the City Manager and waive, by
517ths vote, the formal competitive bidding requirement, finding such waiver to be in the best
interest of the City, and approve and authorize the Mayor and City Clerk to execute a credit card
processing agreement for the Miami Beach Golf Club and Normandy Shores Golf Club, with
ETS Corporation, in a form acceptable to the City Manager and the City Attorney, for a three (3)
year term, with two (2) additional one (1) year renewals, in an amount not to exceed
$115,000.00 each year.
PASSED and ADOPTED this [ day of January, 2018.
ATTEST:
Raf °I E, ran do, •ity
INCOBP
°RATED
Dan Gelber, Mayor
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
City Attorney as4 e
Date
MIAMI BEACH
Resolutions - R7 C
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: January 17, 2018
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE WRITTEN RECOMMENDATION OF
THE CITY MANAGER (AS FURTHER SET FORTH IN THE CITY COMMISSION
MEMORANDUM ACCOMPANYING THIS RESOLUTION) AND WAIVING, BY 5 /7TH
VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH
WAIVER TO BE IN THE CITY'S BEST INTEREST, AND APPROVING AND
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CREDIT CARD
PROCESSING AGREEMENT FOR THE MIAMI BEACH GOLF CLUB AND
NORMANDY SHORES GOLF CLUB, WITH ETS CORPORATION, IN A FORM
ACCEPTABLE TO THE CITY MANAGER AND THE CITY ATTORNEY, FOR A
THREE (3) YEAR TERM, WITH TWO (2) ADDITIONAL ONE (1) YEAR RENEWALS,
IN AN AMOUNT NOT TO EXCEED $115,000.00 EACH YEAR.
RECOMMENDATION
Commission vote on waiving, by 5 /7ths vote, the formal competitive bidding requirement, finding such
waiver to be in the best interest of the City, and approve and authorize the Mayor and City Clerk to
execute a Credit Card Processing Agreement with ETS Corporation, in a form acceptable to the City
Manager and the City Attorney, for a three (3) year term, with two (2) additional one (1) year
renewals, in an amount not to exceed $115,000.00 for each year.
ANALYSIS
Since Miami Beach Golf Club ( "MBGC ") and Normandy Shores Golf Club ( "NSGC ") re- opened in
2002 and 2008 respectively, the contracted management company, Professional Course
Management ( "PCM "), has used Fore! Reservations as the point of sale and tee time reservation
system for the pro shops.
Fore! Reservations integrates with only two credit card processors: ETS Corporation and Mercury.
Since the City of Miami Beach has an exclusive arrangement with First Data, PCM has been unable
to integrate the credit card processing to the point of sale system; which has resulted in processing
credit and debit card transactions with a separate terminal. This setup has created a host of issues:
• Slows down the process of taking payments as it duplicates the steps the pro shop attendant
needs to take to complete a transaction, which has become a larger problem now as chip
enabled cards process at a slower pace.
• Opens up the possibility of operator error as the pro shop attendant has to enter the transaction
amount and tender method manually.
• Complicates the daily reconciliation as a result of entry errors.
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• Forces PCM to use paper gift certificates (which are cumbersome and difficult to manage) in
lieu of gift cards
• Prevents PCM from taking credit card guarantees for tee time reservations to avoid no shows.
• With the advent of chip enabled cards, PCM has experienced multiple instances where a
transaction receipt prints out is as a debit card but the transaction is processed as Visa or
Master Card, sometimes double billing the customer.
One option of correcting the issues listed above is by changing our Point of Sale (POS) Software.
Staff has looked at available Point of Sale Systems and all of the options are more expensive than
the system we currently use. The lowest alternative POS system begins at $5,400 more per year,
per golf club than our current system. This $10,8000 increase for the new POS system added to the
higher monthly service charge rate of First Data supports keeping our current POS and transitioning
to ETS
The only other alternative is to change credit card processors. PCM has used ETS Corporation for
the last eight years with good results at other golf course locations such as Miami Shores Country
Club. Changing to ETS Corporation will allow the City to resolve all the issues PCM is currently
experience, streamlining pro shop operations and improving the customer experience, while incurring
no extra expense and perhaps even reducing credit card processing costs, since it is anticipated that
ETS Corporation will be less expensive than First Data on an annual basis.
With the current credit card processor in FY 17, the City paid $105,369.56 in Bank Fees at both golf
clubs. Moving forward, the bid waiver request will be not to exceed $115,000.00 each year, due to
the anticipated increase in business over the next few years. Upon City Commission approval of this
item, an agreement between the City and ETS Corporation will be reviewed, approved and
executed.
Amount 1 $84,000 Account 1 011 - 0970 - 000313
Budgeted for
FY 18
Amount 2 $31,000 Account 2 011 - 0975 - 000313
Budgeted for
FY 18
Total $115,000.00
Legislative Tracking
Parks and Recreation
ATTACHMENTS:
Description
D Resolution
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