Council approves Paymentus and Tyler agreements for city payments; chooses user‑fee model for enterprise services
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Summary
Council approved a master service agreement with Paymentus Corporation for electronic payments and amended a Tyler Technologies agreement for cashiering software; council also chose a user‑fee model for enterprise payments so customers — not the city — will pay merchant‑service fees for most utility and enterprise transactions.
Palm Coast City Council voted unanimously to approve a master service agreement with Paymentus Corporation for electronic payment processing and to amend existing agreements with Tyler Technologies for cashiering/point‑of‑sale software. Council also directed that the city move merchant‑service charges for enterprise fund transactions to a user‑fee model (fees passed to the payer), rather than the city continuing to absorb those costs for enterprise services.
Lede details: staff ran a competitive RFP for multiple payment services covering utility billing presentment, a customer portal, online miscellaneous payments and the building‑permit point‑of‑sale (CD Plus). The evaluation committee recommended Paymentus to provide merchant services (three of four project modules) and Tyler Technologies for the cashiering/point‑of‑sale module that integrates with the city’s ERP.
Why it matters: staff said the new contracts will add modern payment options (Apple Pay, Venmo, digital wallets), maintain customer continuity (no re‑enrollment required), enable a new “scan‑to‑pay” option for in‑person cash payments at retail locations, and deliver administrative and reporting efficiencies through tighter ERP integration.
Fees and fiscal impact - Staff said switching vendor models and contractual terms will reduce city processing costs: staff estimated approximately $200,000 annual savings versus the current contract framework for the services covered by the Paymentus award. - Council decided user fees should be passed to payers for enterprise funds (utilities, solid waste, stormwater, and similar enterprise services), meaning customers would pay the merchant fee charged by the vendor rather than the city absorbing that cost. Staff estimated that if the city shifted all previously absorbed fees to users it would reduce city costs by roughly $700,000 (staff noted the exact division of savings depends on transaction mix and payment method). For some permit and point‑of‑sale services (CD Plus), staff recommended continuing to pass fees to the end user as today.
Customer experience and rollout - Staff said customers will not need to re‑enroll; the vendor will support Apple Pay, Venmo and other digital wallet options and a chat support feature. - Council asked staff to prepare a public communication plan, including clear bill notices that a merchant fee will be applied for certain payment methods and exploring incentives (for example, promotion of ACH/autopay) to reduce processing costs for customers and the city.
Votes and procurement - Resolution: approve Paymentus master service agreement and amend the Tyler Technologies agreement for cashiering/point‑of‑sale. - Vote: unanimous approval recorded by roll call.
Provenance and next steps Staff will finalize contract documents, negotiate implementation details (APIs and app integration), and prepare a communication plan to inform customers about new payment options and any merchant fees. Council asked staff to return with outreach details and potential incentives to encourage low‑cost payment methods.
Quotes from the meeting - Helena Owls (Finance): staff presented the evaluation. In the meeting staff said the new contract “will save us approximately $200,000 a year from the current contract.” - Public commenter Mark Webb noted for council: “This is not a binding law document,” emphasizing clear language and consumer notice in documents (comment addressed earlier planning discussion but referenced by members when discussing communication and disclosure).
