Title
Resolution to Approve an Agreement with First Data Merchant Services LLC (“Fiserv”) for Merchant Processing Services ($279,000.00)
Memorandum
This resolution requests approval of an agreement with First Data Merchant Services LLC (“Fiserv”) for merchant processing services integrated with Club Caddie golf course software (“Agreement”). The Agreement is for a three-year term, however there is a $0 early termination fee if the service does not work out. Agreement Documents include:
- Huron Hills Golf Course MPA.pdf
- Leslie Park Golf Course MPA.pdf
- City of Ann Arbor - MPA Amendment - 05.29.pdf
- Updated_Govt_Legal_CCNGov2210_SMB_CMM_PG (Locked) Final 10.8.19.pdf
The cost of the service is determined based on a portion of credit card transactions processed: 2.89% for Visa/Discover/Mastercard, 3.15% for Amex, plus $15 monthly fee. We anticipate these costs will be comparable to, if not lower than, those of the current vendor, Foreup Payments, operated by Finix, which charges 0.85% + $0.25 per transaction. The proposed spending cap is $279,000.00, which allows for estimated potential growth of up to 150%. This estimate will ensure that we do not reach the spending cap and provides room for growth as business process improvements bring increased sales and revenue to our golf courses, and as the new vendor brings increased stability, reliability, and functionality.
Based on FY 2025 and 2026, the golf courses are currently averaging roughly $62,000.00 per year in credit card processing fees to Foreup Payments. Inflating this by 150% provides an estimate of $93,000.00 per year estimate.
The Agreement will continue to provide the City with the ability to process credit cards online and in-person at the Huron Hills and Leslie Park Golf Courses. The vendor change is timed to be live before beginning to process transactions in fall 2026 to close out the current season and ensure a smooth start to the next season in March 2027. The Park Advisory Commission recommended approving the Agreement at their June 16, 2026 meeting.
Cost Breakdown:
-FY2027: $93,000
-FY2028: $93,000
-FY2028: $93,000
Total: $279,000
Budget/Fiscal Impact: The annual cost for this software is included in golf course fees charged for services and the subsequent expenditure to the vendor is budgeted in the Parks and Recreation budget. The overall cost of the software is net neutral to the City.
Breakdown of Historic Costs
FY 2026*
-Total CC Revenue (both courses): $1,565,719.39
-Foreup Payments Processing Fees (both courses): $52,843.48
-Foreup Payments Percentage Taken: 3.4%
FY 2025
-Total CC Revenue (both courses): $1,814,584.42
-Foreup Payments Processing Fees (both courses): $61,251.95
-Foreup Payments Percentage Taken: 3.4%
FY 2024
-Total CC Revenue (both courses): $1,618,535.55
-Foreup Payments Processing Fees (both courses): $53,592.92
-Foreup Payments Percentage Taken: 3.3%
FY 2023*
-Total CC Revenue (both courses): $714,474.57
-Foreup Payments Processing Fees (both courses): $23,232.98
-Foreup Payments Percentage Taken: 3.2%
*Partial years: 2023 is the FY when we moved to Foreup Payments from Worldpay. 2026 is the current FY, numbers as of June 8, 2026. Based on fees charged in May it is anticipated that the courses will spend roughly $10,000.00 in credit card fees in June, bringing their FY2026 total to roughly $63,000.00.
Staff
Prepared by: Anna Oostendorp, Senior Applications Specialist Lead, Information Technologies Service Unit
Reviewed by: Joshua Baron, Director, Information Technologies Service Unit
Reviewed by: Kim Buselmeier, Financial Manager
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City is in need of a new golf course management system, and as a result will also need to change credit card processing systems to one which is compatible with the new system;
Whereas, The Parks and Recreation Department has budgeted for these fees in FY27 and plans to budget sufficient funding for remaining years in the Parks and Recreation budget;
Whereas, The Park Advisory Commission recommended approving this agreement (Agreement Documents: Huron Hills Golf Course MPA.pdf; Leslie Park Golf Course MPA.pdf; City of Ann Arbor - MPA Amendment - 05.29.pdf; Updated_Govt_Legal_CCNGov2210_SMB_CMM_PG (Locked) Final 10.8.19.pdf) at their June 16, 2026 meeting; and
Whereas, Fiserv complies with the requirements of the City’s Conflict of Interest and Non-Discrimination Ordinances;
RESOLVED, That City Council approve the agreement (“Agreement”) with First Data Merchant Services LLC (“Fiserv”) for merchant processing services for the City’s Leslie Park and Huron Hills golf course facilities for an amount not-to-exceed $279,000.00 over three years (Agreement Documents: Huron Hills Golf Course MPA.pdf; Leslie Park Golf Course MPA.pdf; City of Ann Arbor - MPA Amendment - 05.29.pdf; Updated_Govt_Legal_CCNGov2210_SMB_CMM_PG (Locked) Final 10.8.19.pdf);
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the Agreement after approval as to form by the City Attorney and approval as to substance by the City Administrator; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution, including execution of any amendments that do not exceed the authorized expenditure and termination of the Agreement per its terms, if necessary.