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Framingham staff brief subcommittee on lockbox payment services, Santander contract and electronic convenience fees
Summary
City staff said Santander Bank currently provides the lockbox payment service under a February 2023 RFP; the city pays $130 per month for two lockboxes ($1,560 annually); reconciliation is done monthly by the treasurer and accounting offices; electronic convenience fees are retained by the vendor (City Hall Systems/Kelly & Ryan).
City finance staff told the finance subcommittee that Santander Bank currently handles the city’s lockbox receipt services under a contract awarded through an RFP in February 2023. The contract covers two lockboxes at a combined cost of $130 per month, or $1,560 per year, with no additional fees cited for the lockbox processing.
Reconciliation and administration: Staff said Santander performs payment processing and that monthly reconciliation is completed by the treasurer’s office and the accounting office. The RFP for lockbox services will be reissued next February as part of routine procurement cycles.
Electronic payments and convenience fees: The committee asked whether convenience or processing fees charged when a resident pays electronically are remitted to the city. Staff said the vendor that handles electronic transactions (referred to in the packet as Kelly and Ryan and City Hall Systems) retains the convenience fee and the city receives the payment amount due. Kelly and Ryan also provides deputy-collector services for motor-vehicle and other collections under a separate arrangement; that contract was last bid in 2020 and is not required to be put out for bid every time.
Local banking and procurement comments: Some councilors said they would prefer, where feasible, to use a local bank for municipal accounts and suggested broader procurement consolidation could save money, noting that mailed check volume may be declining and the city might need fewer lockboxes in future RFPs.
Next steps: Staff told the subcommittee they will include the lockbox RFP in the next-year procurement schedule. The subcommittee did not take immediate action at the meeting.
