Title
Online Program Registration - Expenditure Approval
History
The Class system has been in use by the Recreation Department since 1997 and is the core information system used by the department. Online Program Registration would be a new companion module to this system. The Hosted Internet Registration module would allow users to securely access our Class database from the web to register for programs, process credit card payments and send a confirmation to the registrant via email.
There are currently two software providers for on-line program registration for recreation programs: Active Network which is the Village’s current software provider and Rec Track. After researching these options, staff is recommending to enter into an agreement with Active Network for Hosted Internet Registration as they are our current provider and on-line registration would be and add-on component to the current system. If the Village chose to use Rec Track we would need to purchase their entire registration system which would be a significant cost. In addition, Rec Track lacks the league scheduling functionality that the Village currently has with Active Network. This loss of functionality would have negative impact on Recreation Department operations.
As a hosted service, Active Network would provide the web server and secure payment functionality with a secure connection to the Village’s local Class database. The system would offer real time online registration fully integrated with the Village’s system and provide 24-hour access for program registration.
Active Network provides the secure website and firewall and registrant information will be stored on a secure remote server hosted by Active Network. Through the proposed agreement Active Network acknowledges our customer’s personal information is to be used strictly for the purposes of completing an on-line transaction and under no circumstances will their information be shared or sold to any third party entity.
Costs & Fees
Active Network will collect all on-line registration fees and the Village will receive payment every two weeks. Since registration activity is directly linked to the Village’s Class database, the Village will have the ability to access, audit, and monitor all on-line activity.
Active Network charges a convenience fee of $2.50 per transaction and a credit card service fee of 3% for this service. Customers choosing to utilize on-line registration will pay the $2.50 convenience fee every time they log on to register for a program, and the Village will absorb the 3% credit card fee.
For example, if a customer registers for a program that costs $50.00, the customer would pay a total of $52.50 and the Active Network would add a 3% credit card service fee of $1.50. Active Network would retain the both the convenience fee and credit card service fee and transmit a payment of $48.50 to the Village. Should the customer register for multiple programs at one time, the convenience fee would still be $2.50.
Active Network will reduce the convenience fee to $2.00 if they are allowed to present their Commerce Offers following the registration and payment process. The customer will have the opportunity to opt into a one month free trial in the Active Advantage Membership Program. If the customer opts-in and does not cancel in time allowed, they are charged $59.95 for the membership. The customer would then be presented with the second opt-in Commerce Offer of free magazines for 3 months. Approximately 4-10 weeks after opt-in, registrants will receive a card in the mail reminding them that if they do not want to continue, and want to avoid paying the subscription fee, they should call the 800 number provided and cancel.
Based on feedback from other Active Network clients staff is not recommending going with this option. Customers dislike it and complain about it, and cities do not want to give the appearance that they endorse the membership and magazine programs offered by Active Network.
Active Network estimates that 30% of all registration activity will take place over the Internet in the first year. Estimated costs for the first year:
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Calendar 2010 Transaction Summaries |
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Total Registration Revenue |
$1,624,144 |
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Number of Registrations |
20,325 |
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Average Registration Fee |
$79.91 |
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Estimate 30% transactions |
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via Internet Registration |
6,098 |
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Estimated revenue collected |
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via Internet Registration |
$487,243.20 |
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Estimated fees paid to ActiveNetwork |
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Transaction Fees |
$15,243.75 |
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Credit Card Fees |
$14,617.30 |
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Total Estimated Fees |
$29,861.05 |
Staff is also recommending the elimination of the IVR Tele-Reg component of the current system once on-line registration is fully operational. Less than 10% of all registration is done by IVR and the server is quite old and needs to be replaced and the annual software maintenance will be reduced by $3,600.
On August 1, 2011 this item was reviewed and approved by the Technology, Communication & Community Engagement Committee and referred to the Board for approval.
Financial Impact
There is a one-time cost of $9,765 including firewall, set-up and training. Funds are budgeted in account 010-1101-451.60-15.
Recommended Action/Motion
I move to approve entering into an agreement with the Active Network for hosted internet registration services for an initial three-year term, and thereafter with the option of a one-year automatic renewal or opting out.