(19)AR 022007 Cal-Cards - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF FEBRUARY 20, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: DILU DE ALWIS, FINANCE DIRECTOR SUBJECT: APPROVE CONTRACT 06-99-01 ADDENDUM IMPLEMENTATION OF PILOT PROGRAM DATE: BACKGROUND: FEBRUARY 13, 2007 MASTER SERVICE AGREEMENT #5 - WITH US BANK AND APPRROVE NEW CITY OF COLTON CAL -CARD ITEM #19 The City of Colton has been a signatory to the current Agreement and Addendum for the CAL - Card program since November, 1999. The Current CAL -Card agreement expired on December 22, 2006. In order to prevent a lapse in service, the State of California, Department of General Services (DGS) issued a Request for Proposal on April 14, 2006, to develop a Master Services Agreement (MSA) to provide purchase card services and technologies on a statewide basis for individual state and participating local agencies. U.S. Bank was awarded the Purchasing Card Services MSA #5-06-99-01 on July 25, 2006, executed on October 19, 2006, and effective January 1, 2007. It is a five year contract with one (2) year option for renewal. Local agencies contract to be a participating agency of the Agreement through an Addendum between it and U.S. Bank. Over 1,000 agencies and 55,000 cardholders currently enrolled in the CAL -Card program will transition to the new master agreement over the next several months. The City of Colton is scheduled to transition in May. The new agreement also includes an enhanced card processing more flexible merchant category blocking & reporting and a AccessOnline. Cardholders, Approving Officials/Administrators spend analysis, transaction details, socio-economic indicators, et administration feature will allow the City's Program Manager to modify, cancel) cardholders & approving officials as needed, 24/7. are now included in the new contract: • Average Transaction Size o Total Sales/Number of Transactions x.75 o Example: $100,000/5000 X.75 = $15.00 • Volume Sales Incentive o Total Sales X.00393 o Example: $100,000 X .00393 = $393.00 platform — Total Systems, with more robust internet tool — will be able to run reports for c. The improved online account setup and maintain (suspend, The following quarterly rebates