1999 AGN NOV 16 I05 - Laserfiche WebLink

Browse Search

CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF NOVEMBER 16, 1999 TO: HONORABLE MAYOR & CITY COUNCIL APPROVAL: HENRY T. GARCIA, CITY MANAGER FROM: AL HOLLIMAN, FINANCE DIRECTOR;; V SUBJECT: REQUEST APPROVAL TO PARTICIPATE IN THE STATE OF CALIFORNIA CAL - CARD PURCHASE CARD PROGRAM AND ADOPT THE ATTACHED RESOLUTION APPROVING THE AGREEMENT DATE: NOVEMBER 9, 1999 BACKGROUND The Finance Department is endeavoring to make its Purchasing and Accounts Payable Divisions more efficient and cost effective, as well as providing better customer service. In an effort to achieve this goal, the City would like to participate in the State of California's Cal -Card Purchase Program. In 1992, the State of California conducted a pilot program which showed that the purchase cards provided the following benefits: 1) drastically streamlined the procurement cycle for the purchaser and administrative functions; 2) eliminated multiple invoices and invoices of low value purchases so agencies receive one invoice per month; 3) reduced check requisitions, petty cash and warrants for low value purchases; 4) eliminated order -taker activities in purchasing, which allows more time for analysis and negotiation of discounts and service improvement; 5) allowed State to obtain discounts on purchases with improved payment timing and lower processing cost to suppliers; 6) realized an average savings of $24.49 per transaction; 7) reduced payment time, which is typically 30 to 60 days from the date of service or goods shipment, to one to three days; and, 8) reduced paperwork time, thereby increasing available staff time; and, 9) increased supplier pool. The State found that the purchase cards saved time and money for participating agencies, largely through consolidating and streamlining paperwork. Cardholders, in particular, found the cards convenient for four major purposes: 1) Making walk-in purchases; 2) placing telephone orders; 3) receiving and confirming purchases; and 4) obtaining goods and/or services when needed. The State of California has since implemented this program Statewide and is offering this program to local agencies through a Master Services Agreement (MSA) with I.M.P.A.0 Government Services, a Division of U.S. Bank National Association (Contractor). DISCUSSION/ANALYSIS The program can be tailored to each agency's needs. The City will use these cards for small dollar purchases up to one thousand ($1,000) dollars per transaction. The program offers the following restrictions that can be set by the City on each card and cardholder: 1) The City will set up the dollar limits of each card and cardholder; 2) the limits can be set by transaction; 3) by period of time (monthly); and, 4) by types of items to be purchased. They can also be limited by vendor and by types of vendors. The Purchasing Division will be the contact for the program and accounting office functions. Department Directors will assist in determining their personnel that will be authorized to use the cards, as well as the dollar limits and types of items they are allowed to purchase. Attachments: Resolution Page 1 of 1 Item #5