Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Sandie Arnott, Treasurer - Tax Collector
Subject: Master Agreement with Elavon, Inc. to Provide Merchant Card Services
RECOMMENDATION:
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Adopt a resolution authorizing the Treasurer, or designee, to execute a master service agreement with Elavon, Inc. to provide merchant card services for County departments, for the term December 1, 2025 through November 30, 2028, in an amount not to exceed $996,000.
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BACKGROUND:
County departments such as County Clerk-Recorder and Elections, Parks, Planning and Building, Public Works, Sheriff’s Office, San Mateo County Health (six divisions) and Vocational Rehabilitation Services (VRS)/Catering Connection, currently utilize merchant card services to provide their customers with convenient payment options. The demand for electronic payment methods continues to grow. Additional County departments have expressed interest in utilizing this payment option in the near future.
DISCUSSION:
The Treasurer’s Office works in partnership with each department to ensure their banking needs are met by providing secure, efficient, and cost-effective payment solutions. By offering merchant card services, the County enhances accessibility and convenience for residents while maintaining compliance with banking and security standards.
In June 2025, the Treasurer’s Office issued a Request for Proposals (RFP) for merchant card services for various County departments. The RFP was published on OpenGov for a full month to allow for comprehensive and competitive bids to be submitted.
Nine proposals were received in July 2025 and were evaluated by an RFP committee consisting of members from the Treasurer’s Office (2 staff members), San Mateo Medical Center, and Planning and Building (1 staff representative each).
Elavon met all required specifications and was selected as the most qualified bidder. Key attributes that distinguish this proposer over others were their proven improvement of technology, detailed reporting to assist in reconciliation efforts, fast connectivity, greater flexibility for the County, and meaningful collaboration. In addition, Elavon is one of the top five providers to the public sector providing merchant card services. Their significant experience and extensive portfolio of offerings helps the County leverage its collective processing volume for best preferred processing rates, which benefits all County departments to minimize costs when incurred and to County constituents.
This resolution authorizes a master service agreement with Elavon, which establishes the price and terms for all County departments and will be used in creating sub-agreements to the Master Service Agreement. The sub-agreement will be signed by an authorized individual from each participating department and will include services to be provided in accordance with the terms of this Master Service Agreement.
The resolution has been reviewed and approved by the County Attorney as to form.
The resolution contains the County’s standard provisions allowing amendment of the County fiscal obligation by a maximum of $25,000 (in aggregate).
PERFORMANCE MEASURE:
|
Measure |
FY 2025-26 (Estimate) |
FY 2026-27 (Estimate) |
FY 2027-28 (Estimate) |
|
Transaction Response Time |
4 seconds or less |
4 seconds or less |
4 seconds or less |
|
Elavon System Availability (per month) |
99.9% |
99.9% |
99.9% |
COMMUNITY IMPACT:
Entering into this merchant card services agreement will benefit County residents by expanding convenient and reliable payment options while increasing government efficiency and transparency including improving financial oversight, reducing processing errors, and strengthening public trust in the County’s fiscal management
FISCAL IMPACT:
The cost of merchant card services is tied to departmental usage. As a result of a recent Request for Proposal (RFP) process, the Treasurer's Office anticipates a reduced monthly cost for each department by approximately 25 percent compared to the previous fee schedule. Service fees will continue to be absorbed by each participating department's budget.
In FY 2024-25, countywide merchant card fees totaled $357,599. For FY 2025-26, fees are anticipated to be reduced to $330,000. This estimate accounts for the proposed savings and two significant projects that will be finalized this fiscal year.