Meeting Type: BCC Regular Meeting
Meeting Date: 8/4/2020
Item Status: New
From: Wayne Dyess, County Administrator
Submitted by: Matthew Brown, Director of Transportation; Amanda Thweatt, Grants Technician
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ITEM TITLE
Title
Braintree Payment Processing Solution - Integrated Mobility Innovation (IMI) Program Project
Body
STAFF RECOMMENDATION
Recommendation
Take the following actions between Baldwin County Commission (BCC) and Braintree Payment Services for Baldwin Regional Area Transit System (BRATS) to begin using a payment processing solution in conjunction with an online software to complete transportation bookings and payments for transportation:
1) Approve Braintree Payment Services Agreement, effective immediately upon signed agreement, and terminates upon ceasing to use Braintree Payment Services or providing PayPal with notice of your intent to terminate; and
2) Approve the Braintree Bank Agreement, effective immediately upon singed agreement, and terminates upon expiration of the use of Braintree Payment Services Agreement; and
3) Approve the Braintree Privacy Policy; and
4) Approve the Braintree Acceptable Use Policy; and
5) Approve the Braintree Electronic Signature Policy; and
6) Authorize the Clerk Treasurer, on behalf of the Chairman, to electronically accept the above referenced agreements and related documents, and provide all other information necessary and permitted by law, as part of the Braintree account setup process.
End
BACKGROUND INFORMATION
Previous Commission action/date: August 6, 2019; June 16, 2020
Background: August 6, 2019 - 1. Authorized Baldwin Regional Area Transit System (BRATS) to submit documentation and an application for a grant under the Federal Transit Administration - Integrated Mobility Innovation (IMI) Demonstration Program for a mobility technology pilot program within BRATS; and 2. Authorized BRATS to name Via as a “Key Partner” for the Integrated Mobility Innovation (IMI) grant as contemplated by the Federal Transit Administration Notice of Funding Opportunity, to the extent permissible by State and Local procurement laws; and 3. Authorized the Chairman to execute any grant related documents as required.
On March 16, 2020, FTA awarded funding to the Baldwin County Commission for participation in the IMI Program.
June 16, 2020 - 1) Approved a Contract for Professional Services between the Baldwin County Commission and Via Mobility, LLC, selected through a non-competitive process pursuant to Ala. Code § 41-16-51, for the provision of innovative software services in Conjunction with the Federal Transit Administration’s (FTA) Integrated Mobility Innovation (IMI) Program. The term of said contract shall commence immediately upon the same date as its full execution and shall terminate upon the expiration of twelve (12) months from the initial software deployment; and 2. Authorized the Chairman to execute the attached contract and any other related documents.
Braintree is a PayPal, Inc., company that provides electronic payment processing services. Via Mobility is providing a dynamic scheduling software solution to BRATS that will allow customers to book rides and pay fares on a mobile application. Via’s software is currently integrated with Braintree. Utilizing an alternate payment processing platform will result in additional programing fees.
BRATS customers will pay the payment processing fees as part of their trip fare and Braintree will remit that balance to BRATS. The Customer, not the Baldwin County Commission (BRATS), will be paying Braintree for its payment processing service.
Under the Payment Services Agreement, customers paying through the Via Mobile Application (utilizing Braintree) will receive at least Braintree’s standard pricing which is currently 2.9% + $0.30 per transaction. However, due to its relationship with Via, the Baldwin County Commission is expected to benefit from Via’s bulk pricing arrangement with Braintree which would reduce customer transaction fees depending on the card provider.
This effort will move BRATS closer toward a cashless system that will reduce the time required to account for cash and coins by drivers and bookkeepers, and also reduce unnecessary contact between drivers and passengers during the COVID pandemic.
FINANCIAL IMPACT
Total cost of recommendation: Because the customer is paying the processing fee, there is technically no cost to the County. However, the processing fee will be rolled into the fare (not added to the fare) and thus the County will ultimately see a small reduction of fare revenue. In FY21, fares are estimated to be $75,000. Assuming this entire amount was received in the form of credit card payment processing through Braintree, actual fares collected would be reduced to an estimated $65,325. However, because of the way fare revenue impacts grant reimbursements, the actual cost impact to the County will be closer to $5,000.
Budget line item(s) to be used: N/A
If this is not a budgeted expenditure, does the recommendation create a need for funding? No.
LEGAL IMPACT
Is legal review necessary for this staff recommendation and related documents?
Yes.
Reviewed/approved by: Reviewed by Stone Crosby 07/22/2020
Additional comments: N/A
ADVERTISING REQUIREMENTS
Is advertising required for this recommendation? N/A
If the proof of publication affidavit is not attached, list the reason: N/A
FOLLOW UP IMPLEMENTATION
For time-sensitive follow up, select deadline date for follow up: For the project to stay on schedule with a September launch, Braintree account needs to be setup by early August.
Individual(s) responsible for follow up: Matthew Brown in coordination with Cian Harrison. Because this is an online account setup, all agreements will be accepted electronically.
Action required (list contact persons/addresses if documents are to be mailed or emailed): N/A
Additional instructions/notes: N/A