III (F) Approval and Authorization for Mayor and City Clerk to Execute Agreement for Purchasing Card Program with MBNA and First Union 'be
of GoodGtt, Agenda 8-20-2002
Mayor q y-"'^SE',.-, fa ' commissioners Item III F
S. Scott Vandergrift .fir' Danny Howell, District 1
Scott Anderson, District 2
City Manager Mari �J �y Rusty Johnson,District 3
Jim Gleason \ . - L I Nancy J. Parker District 4
MEMORANDUM
TO: The Honorable Mayor and City Commissioners
FROM: Wanda Horton, Finance Director
DATE: August 12,2002
RE: Purchasing Card Program Agreement
The purpose of a purchasing card program is to provide an efficient, cost-effective method of
purchasing and paying for small dollar and/or high volume repetitive purchases. The purchasing
card program is designed as an alternative to the traditional purchasing process. The program
offers the opportunity to:
o Eliminate the timely purchasing process for user departments;
o Reduce the cost of the purchasing process by decreasing the number of
requisitions and blanket purchase orders issued;
o Reduce the number of checks to be processed;
u Increase internal control of purchasing items and limits at the department level;
❑ Provide management information on purchasing histories;
❑ Interface transactions directly to the general ledger accounting software.
The City advertised a request for Letters of Interest from Financial Institutions on July 29, 2001.
The city received three responses:
Bank of America
First Union/MBNA
SunTrust Bank
Staff met with each respondent and discussed possible programs for the City's needs. Bank of
America holds the contract with the state, but First Union/MBNA offered a package, which
would allow the City to customize the program to better meet our needs and reporting ability.
The purchasing cards cost the city nothing. The City will actually receive an annual rebate from
the bank based upon a percentage (40 basis points) of the total dollar volume purchased by the
City. This agreement has been reviewed by the city attorney.
Action Requested:
Staff recommends the City enter into an agreement with MBNA through First Union for the
purchasing card program as delineated in the attached agreement and authorize the Mayor, City
Clerk and staff to execute all the necessary documents.
The City of Ocoee• 150 N Lakeshore Drive•Ocoee, Florida 34761
phone: (407)905-3100• fax: (407)656-8504• www.ci.ocoee.tl.us