HomeMy WebLinkAbout06. 18-148 MARCH 27, 2018 18-148 RESOLUTION
(CARRIED 6-0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE AGREEMENT FOR PROCUREMENT CARD
PROGRAM SERVICES FOR GENERAL SERVICES DIVISION
INITIATED BY: PURCHASING
BE IT RESOLVED by the Common Council of the City of Oshkosh that an
agreement with U.S. Sank for procurement card program services, is hereby approved
and the proper City officials are hereby authorized to execute and deliver the agreement
in substantially the same form as attached hereto, any changes in the execution copy
being deemed approved by their respective signatures, and said City officials are
authorized and directed to take those steps necessary to implement the terms and
conditions of the Agreement.
TO: Honorable Mayor and Members of the Common Council
FROM: Jon Urben, General Services Manager
DATE: March 14, 2018
RE: Approve Agreement for Procurement Card Program Services for General Services
Division
BACKGROUND
Since 2002 the City of Oshkosh has utilized a procurement card (P -Card) program as an additional
purchasing tool for departments to acquire good and services. The P -Card program has proven to be an
efficient and effective purchasing method within delegated purchasing authority. Our agreement with
our current P -Card program provider (JPMorgan Chase) was negotiated through Volume Acquisition
and Large Uniform Expenditures (V.A.L.U.E.), a cooperative purchasing organization of Wisconsin
government agencies of which the City of Oshkosh is a participating member. The current agreement
with JPMorgan Chase expires 5/31/18, and unfortunately, the V.A.L.U.E group and JPMorgan Chase
have been unsuccessful in negotiating a renewal agreement. While our P -Card transactions and amounts
vary from year to year, we record an average total annual charge volume of about $1.3M that through
the terms of our agreement, generates about $22,000 in an annual rebate (about 1.7%) for the city.
ANALYSIS
Purchasing reviewed other P -Card program services and confirmed that U.S. Bank holds the State of
Wisconsin Department of Administrative contract (#505ENT-MI5-CARDPRGMS-00) for Commercial
Card Solutions. Staff review of the State contract concluded the U.S. Bank agreement expires 12/31/18
and has the option for two, one-year renewals. Staff also concluded the U.S. Bank agreement meets or
exceeds all of our current P -Card program services in the areas of customer service, fraud protection,
card costs and services, card monitoring and the ability to import transaction detail into our Tyler Munis
ERP system.
FISCAL IMPACT
The only fiscal impact of this agreement is that under the new U.S. Bank P -Card program the annual
rebate the city receives for P -Card purchases is expected to increase slightly to between 1.75-2.2%,
depending upon the total annual spend of all participants.
RECOMMENDATION
Section 12-15 of the Municipal Code provides that subject to approval of the City Manager, cooperative
purchases pursuant to a contract with any other local, state or federal governmental unit or agency may
be made without following a competitive bidding or quotation process. In accordance with Section 12 -
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us
15 of the Municipal Code and with approval by the City Manager, Purchasing recommends the Common
Council approve this purchase pursuant to the State of Wisconsin Cooperative Purchase for Commercial
Card Solutions for the General Services Division to U.S. Bank, 901 Marquette Avenue, Minneapolis, MN
55402.
Respectfully Submitted,
4 L
Jon G. Urben, General Services Manager
Approved:
Mark Rohloff, City Manager