Exhibit 1 - Agenda Information Sheet - Amend 1City of Denton
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: December 12, 2023
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of a first amendment to a contract between the City of Denton and Wells Fargo
Merchant Services, LLC, amending the contract approved by City Council on December 14, 2021, in the
not-to-exceed amount of $5,000,000.00, said first amendment to continue to provide debit/credit card
processing for all City departments; providing for the expenditure of funds therefor; and providing an
effective date (RFP 7436 – providing for an additional first amendment expenditure amount not-to-exceed
$1,250,000.00, with the total contract amount not-to-exceed $6,250,000.00).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Pursue Organizational Excellence and Collaborative and Respectful
Leadership.
INFORMATION/BACKGROUND
On December 14, 2021, the City Council approved a merchant services contract (Ordinance No. 21-2689)
with Wells Fargo Merchant Services, LLC (WFMS). The contract is for a five (5) year term to expire on
December 13, 2026. Card processing for the City is a complex system including other vendor contracts to
successfully accept, process, and fund card revenue to the City’s depository bank.
The contract’s estimated not-to-exceed (NTE) amount was established when creating the bid for services
but did not account for several unknown factors listed below:
• Several departments improving card acceptance by implementing additional card-paying options
such as text-to-pay.
• Customer Service removed their online card fee thus dramatically increasing their card volume.
• All card devices updated to accept near-field communication payments (tap, Google, and Apple
Pay.
• Commercial and residential growth will continue to play a large role in the cost of processing all
payment types.
This amendment to increase the contract NTE should support the City’s card processing expenses through
this fiscal year, but a new bid for card processing services will be issued before this contract is set to expire
in 2026.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
On December 14, 2021, City Council approved a contract with Wells Fargo Merchant Services, LLC, in
the not-to-exceed amount of $5,000,000 (Ordinance 21-2689).
On December 11, 2023, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award Amendment No. 1 with Wells Fargo Merchant Services, LLC, to continue to provide debit/credit
card processing for all City departments, in a not-to-exceed amount of $1,250,000, for a total amended
contract amount of $6,250,000.
PRINCIPAL PLACE OF BUSINESS
Wells Fargo Merchant Services, LLC
Dallas, TX
ESTIMATED SCHEDULE OF PROJECT
This contract will expire on December 14, 2026.
FISCAL INFORMATION
These services will be funded by various operating funds. Requisition #161747 has been entered into the
Purchasing software system in the amount of $1,850,650 for fiscal year 2024. The total amended amount
of this contract is $6,250,000.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: Ordinance and Amendment 1
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Randee Klingele, 940-349-8206.
Legal point of contact: Marcella Lunn at 940-349-8333.