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Home My WebLink AboutCOW 2018-10-22 Item 4C - Purchase - New Cashiering System and Related SoftwareCOUNCIL AGENDA SYNOPSIS 1 1 I 1I rl„F,F. I I'c„()Ry ). ; ITEM NFORMATION i .__..... 1c �Ir I )� I 2/ 18 PEGGY MCCARTHY a �dtucou�',i � �� e 1a/2 : pp ove purchase of new cashiering system for Finance department an... Cit y r d Clerk. t�✓ %.Yh i' Owe 11/5/18 I ePFl,`t" ra 0401 Council is being asked to approve the purchase of a new cashiering system to support two cashiering stations in the Finance Department and one in the City Clerk's office. rI9. 10/16/ I IICC l of EF, I QUINN r)ltbUUc: Safcty (, rT11T. PI an 11'1„ RECOEN Finance i➢ I w I , Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE urw➢I ' RI trIrc� $4,'95 Fund Source: Cornrnen is TG. DATE 10/22/18 MTG. DATE 10/22/18.... AMOUNT BUDGETED APPROPRIATION REQUIRED RECORD OF COUNCIL ACTION ATTACHMENTS nformational Memorandum dated 10/10/2018, plus attachment mutes from the Finance Committee meeting 10/16/2018 95 96 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Peggy McCarthy, Finance Director CC: Mayor Ekberg DATE: October 10, 2018 SUBJECT: Purchase New Cashiering System for Finance Department and City Clerk ISSUE Authorize the purchase of a new cashiering system for the Finance Department and the City Clerk's office. BACKGROUND The point of sale cashiering system used by the Finance Department and the City Clerk's office, Core Cashiering, was purchased and implemented in January 2009, almost ten years ago. In recent years, consideration has been given to purchasing a new cashiering system because the existing system functions slowly and system support and upgrades have been discontinued by the vendor. In June 2018, the need for a new system became more urgent. The Payment Card Industry (PCI) standards became more stringent requiring a more secure encryption protocol — Transport Layer Security (TLS) 1.2 - effective June 30, 2018. Because the Core Cashiering system did not comply with this protocol, a work around was developed by the City's TIS Department to achieve compliance. Under the TIS-developed solution, credit card transactions are processed using a two-step method. First, the credit card payment is processed using an online terminal Next, the transaction is recorded into the Core Cashiering system by entering the last four digits of the credit card, the credit card expiration date, and the transaction authorization number from the online credit card terminal. This solution solved the immediate problem but proved to be a very time-consuming process. DISCUSSION The Tyler Technologies cashiering system has been identified as a more optimal point of sale cashiering solution, one that will save time and create efficiencies in the Finance Department and the City Clerk's office. The system has been vetted by the TIS department and the online demonstration was viewed by and received favorable responses from several Finance staff. The advantages of the new system include: 1. Credit card processing complies with new PCI standards, TLS 1.2 2. Integrated credit card processing which eliminates the two-step process currently being used 3 Quicker processing and better functionality in general resulting in more responsive customer service 4. Ongoing vendor support and upgrades 5. More direct/easier integration with the EDEN financial system 6. Real time receipting is retained for up-to-date customer account information 7. Site license supports unlimited cashiering stations within the City; currently contemplated for two cashiering stations in Finance and one cashiering station for the City Clerk's office 8. Integrates with Munis, the Tyler Technologies next generation financial software. (EDEN, the City's current financial software, is a Tyler Technologies product) 97 INFORMATIONAL MEMO Page 2 Maintenance fee savings of $4,775 annually; current fee is $10,535 and proposed fee is $5,760 annually. FINANCIAL IMPACT ITEM DESCRIPTION AMOUNT* Software site license Implementation cost Total software and implementation 2,000 less $8,000 discount 48 hrs $160/hr Hardware — printer and hand-held scanner 3 printers 3 scanners Total Software, hardware and implementation One-year maintenance ,600 each = $4,800 each = $1,155 TOTAL COST $24,000 7,680 ,680 $5,955 7,635 $5,760 $43,396 With the annual $4,775 savings in maintenance fees, the $37,635 system cost will be recovered in less than eight years. Should this purchase be authorized, staff will pursue a 2018 implementation date with Tyler Technologies. If Tyler Technologies cannot accommodate this timeframe and the system is implemented in 2019, a 2019 carryover budget amendment may be necessary, *exclusive of applicable sales or use tax. RECOMMENDATION' The Council Committee is being asked to approve the purchase and consider this item at the October 22, 2018 Committee of the Whole meeting and subsequent November 5, 2,018 Regular meeting. ATTACHMENTS "How to Prepare for the TLS1,2 Compliance Deadline in 2018°' 98 e a https;//vmw.centurybizsolutions„net/how-to-prepare-for-the-tls-1-2-compliance-deadline-in-2018A/ is your business prepared for the TLS 1.2 compliance deadline in 2018? The PCI Security Standards Council is changing its security standards —businesses will no longer be able to use TLS 1.0 to secure credit card information. Merchants must upgrade to TLS 1.2 by June 30, 2018, or they won't be able to process credit card payments. t TL TLS, also known as Transport Layer Security, is an encryption protocol that's part of the next wave of PC1 compliance. The TLS changeover is replacing the TLS 1,0 security protocol that's out of date for today's payment security needs. TLS is used to establish a secure payment channel between two systems, which authenticates purchases and fully protects the credentials of all parties involved in the payment process. The current encryption standard, TLS '1,0, no longer meets minimum security requirements due to vulnerabilities in the protocol that cannot be fixed. TLS 1.0 and 1.1 have known security vulnerabilities that carry a significant risk of data breaches, h o nee t ra et TLS 1.2 provides extra layers of security to protect sensitive credit card information and keep business details safe from hackers. Merchants who upgrade will ensure that their payment systems are fully protected, but those who fail to follow through will risk exposing their systems to hackers and jeopardizing relationships with their customers, Merchants who upgrade to TLS 1.2 will have peace of mind in knowing that their sensitive data is safe and their profits are protected. ar f 0 r t e If merchants neglect to make the switch to TLS 1.2, they won't be able to process payments and their business will be extremely vulnerable to data breaches, cyberattacks, and security 99 vulnerabilities. The updated TLS 1.2 protocol provides higher security standards to protect merchants from third -party hackers, Merchants are encouraged to migrate as soon as possible. Those who fail to upgrade to TLS 1.2 won't be able to process credit card transactions starting July 1, 2018. To get up to date with the most current security protocol, merchants should consult a payment provider that ensures TLS 1,2 compatibility. Since TLS 1,2 compliance is required to process payments after June 30, merchants need to work with a certified payment provider to verify that their software and hardware are up to date with the latest security requirements. Any type of security -related switch can come with some obstacles, so its important to migrate as soon as possible to avoid missing the deadline. Merchants who don't upgrade to TLS 1.2 by June 30 could see a serious decline in their revenue. 0 bec CO 1 111 t? Businesses that accept payments online are most susceptible to TLS vulnerabilities. In order to achieve TLS 1.2 compatibility, merchants should find a PCI-compliant payment gateway that provides TLS 1.2 compliance. A TLS 1.2-compatible payment gateway will provide optimal payment security and protect users from vulnerabilities. Plus, PCI compliance lessens the liability for your business in the event of a data breach, Using a payment gateway that combines TLS 1 .2 security with PC1 compliance will provide the highest possible level of payment security for both businesses and their customers. 100 City of Tukwila City Council Finance Committee FINANCE COMMITTEE Meeting Minutes October 16, 2018 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: De'Sean Quinn, Chair; Dennis Robertson, Kate Kruller Staff: David Cline, Rachel Bianchi, Peggy McCarthy, Vicky Carlsen, Erika Eddins, Jeff Friend, Bruce Linton, Aaron Williams, Derek Speck, Wynetta Bivens, Gail Labanara, Cindy Wilkins, Tami Eberle -Harris, Chris Flores, Laurel Humphrey CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESS AGENDA A. Cashiering System Purchase Staff is seeking Council approval to purchase a new cashiering system for the Finance Department and the City Clerk's Office in the amount of $43,395. The current point of sale cashiering system was implemented in 2009 and is no longer being support by the vendor, nor does it comply with a new secure encryption protocol. The proposed new system from Tyler Technologies has been vetted by the TIS Department and Finance staff. With the savings in maintenance fees, staff expects the system to pay for itself in less than eight years. The implementation phase will include staff training. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 22, 2018 COMMITTEE OF THE WHOLE. B. Ordinance: Gambling Tax Staff is seeking Council approval of an ordinance that would increase the gambling activities tax on cardrooms from 10% to 11%. There are currently four cardrooms in Tukwila generating $3.8 million in gambling taxes in 2017. Staff estimates that the 1% increase will generate $350,000 in additional revenue in 2019, which will help the City balance the budget and maintain the current level of services. Councilmember Robertson expressed support for the proposal. Councilmember Kruller referenced an email the Council received from Evergreen Gaming opposing the proposed increase and asked if there was danger of losing any of the businesses. Staff met with representatives from the four cardrooms, who expressed concerns about profitability in a competitive market. Chair Quinn mentioned the request for parking and pedestrian improvements by two of the card rooms an encouraged staff to continue those discussions in the spirit of partnership with stakeholders. The Committee requested that staff make a recommendation on how this revenue will specifically be spent if approved by Council. NO RECOMMENDATION. FORWARD TO OCTOBER 22, 2018 COMMITTEE OF THE WHOLE. 101