TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a master agreement with US Bank National Association, of Fargo, ND, for a Commercial Credit Card Program, on the same terms and conditions afforded to the State of Washington, Western States Contracting Alliance-National Association of State Purchasing Officials (WSCA-NASPO) contract, for a period of two years with the option to renew for additional terms in the event the WSCA-NASPO contract is extended. (Citywide)
DISCUSSION
On July 13, 2010, the City Council approved and entered into a consortium contract agreement with US Bank sponsored by the City of Los Angeles, in an effort to increase rebates based on total purchasing card expenditures. In March 2015, the City of Los Angeles moved to the State of California Cal-Card (Cal-Card) program, thereby reducing the rebate potential for the City of Long Beach (City) under the existing agreement.
The proposed recommendation to execute a master agreement for a Commercial Credit Card Program with US Bank to access the WSCA-NASPO contract provides benefits due to economies of scale. Specifically, by participating under the agreement established with the Cal-Card program, the City’s quarterly expenditures will be combined with all public agencies within California, thus providing the City with the potential for a higher rebate amount. The Cal-Card program is a no-cost participation agreement.
Participation in a purchasing card program provides the following benefits to the City:
· Reduces administrative costs to the City;
· Eliminates purchasing delays on small dollar transactions;
· Reduces the number of checks issued;
· Improves supplier relations;
· Improves transaction reporting while reducing the amount of paperwork; and,
· Provides rebate incentive for prompt payment.
The Cal-Card program provides a number of layers of control and security that enhance accountability, improve best practices, and increase program ove...
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