HomeMy WebLinkAbout4/3/2002 - STAFF REPORTS (20) DATE: April 3, 2002
TO: City Council
FROM: Director of Procurement & Contracting
APPROVE PARTICIPATION IN THE AGREEMENT FOR STATE OF CALIFORNIA CAL-
CARD PROGRAM BETWEEN DEPARTMENT OF GENERAL SERVICES AND U.S. BANK
NATIONAL ASSOCIATION ND (U.S. BANK)AND TO AUTHORIZE THE CITY MANAGER
TO EXECUTE THE DOCUMENTS MAKING THE CITY A "PARTICIPATING LOCAL
AGENCY" IN STATE MASTER AGREEMENT.
RECOMMENDATION:
It is recommended that the City Council approve participation in the agreement MSA
5-00-CC-02, including Amendment No 1 dated March 01, 2001, for State of California
Cal-Card Program between Department of General Services and U.S. Bank National
Association ND (U.S. Bank)and authorize the City Managerto execute the documents
making the City a "Participating Local Agency" in state master agreement.
SUMMARY:
In the review process for the Procurement Ordinance which was adopted January 16,
2002, and became effective February 17, 2002, there was extensive discussion
regarding the use of procurement (smart) cards and their value as a productivity tool
to both the City and its vendor community.
BACKGROUND:
Currently, 741 entities in California are participating in the Cal-Card Program including
129 cities.
The program provides for extensive safeguards in spending, including multiple level
review. Each card holder is held directly and individually responsible. There is no cost
to the City for participation in this program and the City is 100% protected from
fraudulent and unauthorized use.
Adoption of the program will benefit local vendors and will increase security and control
of city procurement processes and staff strongly recommends approval.
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HAROLD E. GOOD, CPPO
Director of Procurement & Contracting
APPROVED: -�
City Manager
Attachment: 1. Minute Order
2. Agreement
�) uAvwtA *9 1
ADDENDUM TO STATE OF CALIFORNIA PURCHASE CARD PROGRAM
MASTER SERVICE AGREEMENT (DGS MSA 5-00-CC-02)
This Addendum to the State of California Purchase Card Program Master Service Agreement(DGS
MSA 5-00-CC-02), as amended (the "Agreement")between the Department of General Services
("DGS") on behalf of the State of California, and U.S. Bank National Association ND ("U.S. Bank"), is
made this day of , 2002, by the (City of Palm Springs) ("Participant") for the
purpose of becoming a "Participating Local Agency" as that term is defined in the Agreement.
RECITALS:
A. DGS has entered into the Agreement for the purpose of making available for Participants' use a
procurement card program as described in the Agreement; and
B. The Agreement contemplates the inclusion of Participants by a process of voluntary execution of an
addendum; and
C. The Participant has received a copy of the Agreement and after thorough review of the Agreement
desires to become Participating Local Agency as that term is defined in the Agreement.
AGREEMENT:
NOW THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by
reference, the mutual promises and covenants set forth in the Agreement, which is incorporated herein by
reference, and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Participant, and U.S. Bank agree as follows:
1. The Participant agrees to accept and perform all duties, responsibilities and obligations required of
Participating Local Agency as set forth in the Agreement. CALrCards shall be issued to Designated
Employees of the Participant upon execution.of a Primary Contact Reference form(in substantially the
form set forth in Rider A attached hereto and incorporated herein)by departments and administrative
units of the Participant. The Participant authorizes such departments and administrative units to act on its
behalf with respect to CAL-Cards issued to]Designated Employees of the respective departments and
administrative units. U.S. Bank shall submit invoice(s)to the office(s) designated in the Primary Contact
Reference forms provided by departments and administrative units executing Rider A and shall report to
the Billing Office Contact at the departments and administrative units executing Rider A.
2. U.S. Bank is authorized to place the seal or logo of the Participant on the CAL-Cards issued to
Designated Employees of the Participant for the sole purpose of identifying the card for official use only
and if consistent with the final card design. Such seal or logo shall be subject to use limitations as apply
to the State seal under paragraph 4 (a) of the:Agreement.
3. The Participant shall make monthly payments as provided in the Agreement to U.S. Bank of the full
amount of the Total Participant Monthly Balance by causing a check or checks or a warrant or warrants
to be issued payable to the order of U.S. Bank on demand or by use of an Automated Clearing House or
Electronic Data Interchange to make such payment to U.S. Bank..
4. The Participant shall provide U.S. Bank with a copy of its audited financial statements within 60 days
of completion and, upon request of U.S. Bank, such other financial information as may be reasonably
requested.
/80 -A
5. Delivery of CAL-Cards to Designated Employees of the Participant shall be within five (5) business
days after receiving completed U.S. Bank Account set-up forms, but in no case earlier than five (5)
business days after the Initial Implementation Meeting.
6. The Participant declares that CAL-Cards shall be used for official Participant purchases only, and
shall not be used for individual or consumer purchases nor to incur consumer debt. The Participant
warrants that it possesses the financial capacity to perform all of its obligations under the Agreement and
this Addendum and the Participant will not allow purchases to be made with CAL-Cards or incur any
other financial obligation hereunder or under the Agreement prior to determining that existing
appropriations available therefore are sufficient in amount to pay for such purchases or such other
financial obligations.
7. The notice address for the Participant is:
Harold Good
City of Palm Springs
Department of Procurement&Contracting
3200 East Tahquitz Canyon Way
Palm Springs, CA 92262
8. The agreements of the Participant set forth in this Addendum and the Agreement constitute valid,
binding and enforceable agreements of the]Participant and all extensions of credit made pursuant to this
Addendum and the Agreement to the Participant will be valid and enforceable obligations of the
Participant in accordance with the terms of the Agreement and this Addendum. The execution of this
Addendum and the performance of the obligations hereunder and under the Agreement are within the
powers of the Participant, have been authorized by all necessary action and do not constitute a breach of
any agreement to which the Participant is a party or is bound.
(CITY OF PALM SPRINGS)
By: Approved as to form:
Title:
Attorney for(City of Palm Springs)
Date:
U.S.BANK NATIONAL ASSOCIATION ND
By:
Title:
Date:
M43
STATE OF CALIFORNIA
STANDARD AGREEMENT—APPROVED BY THE CONTRACT NUMBER AM,NO.
ATTORNEY GENERAL 5-00-CC-02 1
STD.2(REV.5-91) TAXPAYER'S FEDERAL EMPLOYER IDENTIFICATION NUMBER
41-1881896
THIS AGREEMENT, made and entered into this 01 day of March 2001,
In the State of California by and between State of California through its duly elected or appointed,qualified and acting
TITLE OF OFFICER ACTING FOR STATE AGENCY , hereafter called the State,and
Acting Deputy Director Dept. of General Services
CONTRACTORS NAME ,hereafter called the Contractor.
U, S. Bank National Association ND (U.S. Bank)
WITNESSETH: That the Contractor for and in consideration of the covenants, conditions, agreements, and stipulations of the State
hereinafter expressed,does hereby agree to fumish to the State services and materials as follows: (Set forth service to be rendered by
Coa6actor.and dme forperformance or completlonj This contract is authorized under the senices contract law,Govemment Code 19130.
The agreement between the State of California and Contractor, dated December 22,2000, is here by amended. The intent
of this amendment is to clarify the contract term and increase the single transaction limit from $15,000 to$25,000.
1. The term stated on the Standard Agreement, Std.2, is amended and reads as follows:
'The term of this agreement is two years,with four one-year options based on the State's sole discretion commencing
December 22, 2000."
2. Exhibit A, section entitled,`Card Limits and Restrictions," Page A-30, third paragraph, Is amended to read as follows:
'The State currently sets the single transaction limit of a maximum of$25,000 per transaction for State
and local agencies or for State agencies their maximum Delegated Authority. Higher limits are available
upon approval by the Department of General Services as well as U.S. Bank. U.S. Bank, can determine limits based
on credit risk. U.S. Bank set ceilings higher than $25,000 would be set through mutual agreement of U.S. Bank and
the Department of General Services, Procurement Division and the Statewide Administrator for the CAL-Card
Program
_CONTINUED ON SHEETS,EACH BEARING NAME OF CONTRACTOR AND CONTRACT NUMBER.
STATE OF CALIFORNIA CONTRACTOR
AGENCY CONTRACTOR Moew dmn/raHa+eL no ■hWwa cwpwaft,
Department of General Services Parmaranwl ACorpxaaoe
U. S. Bank National Association ND(U. S.
Bank
BY(AUf}iORI SIGNATUF BY mml
➢ t, _>
PRINTED NAME of SIGNING NAME AND TITLE OF PERSON SIGNING
DENNIS ERICSON ROEIERT T. ABELE, SENIOR VICE PRESIDENT
TITLE ADDRESS .
ACTING DEPUTY DIRECTOR 601 Second Ave. S., Minneapolis, MN 55402-4302
AMOUNT EHCXIMBFREq BY INS PROGRAMI CATEGORY(CODE AND TITLE) FUND TrrLE o Department of General Services
MDOCUMENT ^Use OMy p
OR AMOUNT ENCUMBERED (OPTIONAL USE) JR
E L E I V EFOR THIS CONTRACT$ .00
ITEM CHAPTER STATUTE FSCALAPR - 5 2001
TOTAL AMOUNT ENCUMBERED OBJECTOFEXPEINXTURE (CODEANOTITLE) OFFICE OF LEGAL SERVICES
TO DATE DEPT O GLNENAL SERVICE;
therebyearW UPon mYown peraooal Anoxledge dWbWaebd fund* T.BJL NO. B.R. NO. �Y.
araaNaaable lord»period and Pwpose of Ma apNrdbme ahhd above
SIGNATURE OF ACCOUNTING OFFICER DATE
El CONTRACTOR STATE AGENCY DEPT.OFGEKSEIL CONTROLLER 4/
Contract Number: 5-00-CC-02
Contractor Name: U.S. Ban
Exhibit F
LOCAL AGENCY ADDENDUM LANGUAGE SAMPLE
ADDENDUM TO STATE OF CALIFORNIA PURCHASE CARD PROGRAM
MASTER SERVICE AGREEMENT (DGS MSA 5-00-CC-02) and Rider A
This Addendum to the State of California Purchase Card Program Master Service
Agreement (DGS MSA 5-00-CC-02), as amendad (the "Agreement") between the
Department of General Services ("DGS") on behalf of the State of California and U. S.
Bank National Association ND (U.S. Bank), is made this day of , 2000, by
the Local Agency Name ("Name") for the purpose of becoming a "Participating Local
Agency" as that term is defined in the Agreement.
RECITALS:
A. DGS has entered into the Agreement for the purpose of making available for
Participants' use a procurement card program as described in the Agreement; and
B. The Agreement contemplates the inclusion of Participants by a process of
voluntary execution of an addendum; and
C. The Name has received a copy of the Agreement and after thorough review of
the Agreement desires to become a Participating Local Agency as that term is defined in
the Agreement.
AGREEMENT:
NOW THEREFORE, in consideration of the foregoing Recitals, which are incorporated
herein by reference, the mutual promises and covenants set forth in the Agreement,
which is incorporated herein by reference, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Name, (contractor
name) agree as follows:
1. The Name agrees to accept and perform all duties, responsibilities and
obligations required of a Participating Local Agency as set forth in the Agreement. CAL-
Cards shall be issued to Designated Employees of the Name upon execution of a
Primary Contact Reference form (in substantially the form set forth in Rider A attached
hereto and incorporated herein) by departments and administrative units of the Name.
The Name authorizes such departments and administrative units to act on its behalf with
respect to CAL-Cards issued to Designated Employees of the respective departments
and administrative units. U.S. Bank shall submit invoice(s) to the office(s) designated in
the Primary Contact Reference forms provided by departments and administrative units
executing Rider A and shall report to the Billing Office Contact at the departments and
administrative units executing Rider A.
F-77
Contract Number: 5-00-CC-02
Contractor Name: U.S. Ban
Exhibit F
2. U. S. Bank is authorized to place the seal or logo of the Name on the CAL-Cards
issued to Designated Employees of the Name for the sole purpose of identifying the card
for official use only and if consistent with the final card design. Such seal or logo shall be
subject to use limitations as apply under paragraph 4 (a) of the Agreement.
3. The Name shall make monthly payments as provided in the Agreement of U. S.
Bank of the full amount of the Total Participant Monthly Balance by causing a check or
checks or a warrant or warrants to be issued payable to the order of U.S. Bank on
demand or by use of an Automated Clearing House or Electronic Data Interchange to
make such payment to U. S. Bank.
4. The Name shall provided U. S. Bank with a copy of its audited financial
statements within 60 days of completion and, upon request U. S. Bank, such other
financial information as may be reasonably requested.
5. Delivery of CAL-Cards to Designated Employees of the Name shall be within five
(5) business days after receiving completed U. S. Bank account set-up forms, but in no
case earlier than five (5) business days after the Initial Implementation Meeting.
6. The Name declares that CAL-Cards shall be used for official Name purchases
only, and shall not be used for individual or consumer purchases nor to incur consumer
debt. The Name warrants that it possesses the financial capacity to perform all of its
obligations under the Agreement and this Addendum and the Name will not allow
purchases to be made with CAL-Cards or incur any other financial obligation hereunder
or under the Agreement prior to determining that existing appropriations available
therefore are sufficient in amount to pay for such purchases or such other financial
obligations.
7. The notice address for the Name is:
Contact Name
Local Agency Name
Address
City, CA Zip Code
8. The agreement of the Name set forth in- this Addendum and the Agreement
constitute valid, binding and enforceable agreements of the Name and all extensions of
credit made pursuant to this Addendum and the Agreement to the Name will be valid and
enforceable obligations of the Name in accordance with the terms of the Agreement and
this Addendum. The execution of this Addendum and the performance of the obligations
hereunder and under the Agreement are within the powers of the Name, have been
authorized by all necessary action and do not constitute a breach of any agreement to
which the Name is a party or is bound.
F-7 8
Contract Number: 5-00-CC-02
Contractor Name: U.S. Ban
Exhibit F
LOCAL AGENCY NAME
By: Approved as to form:
Title:
Date: Attorney for(Local Agency Name)
U. S. Bank National Association (U.S. Bank)
By:
Title:
Date:
F-79 ���
Contract Number: 5-00-CC-02
Contractor Name: U.S. Bank
Exhibit F
RIDER A
I.M.P.A.C.® CALIFORNIA PRIMARY CONTACT SETUP FORM
Check level that applies
t LEVEL 3 ❑ LEVEL 4 ❑
Cud Emboss Information
(Max 20 Chatactecs)Appears on Card Plastic
Choose New or Change
NEW LEVEL&PC SETUP O CHANGE PC ONLY ❑
(Fill in only fields to be changed)
LEVELI
4055 I.M.P.A.C,Program Level
LEVEL2
01 State of California-
LEVEL 3 Office Name:
LEVEL4 Office Name:
AGENCY PROGRAM COORDINATOR (APC)CONTACT(Address used for sending selected reports)
OFFICE NAME: _
CONTACT NAME: _
ADDRESS: _
CITY:
STATE: CALIFORNIA ZfP+4:
PHONE: f_)_ FAX: (
BILLING OFFICE BO)CONTACT(Address used for sending invoices,selected reports,and late payment notices)
OFFICE NAME: _
CONTACT NAME: _
ADDRESS: _
CITY:
STATE: CALIFORNIA ZIP+4:
PHONE: FAX: (_)
DISPUTE OFFICE(DO)CONTACT (Address used for sending selected reports,if applicable)
OFFICE NAME: _
CONTACT NAME: _
ADDRESS:
CITY;
STATE: CALIFORNIA ZIP+4:
PHONE: (_�_ FAX: (_)
ALTERNATE CONTACT INFORMATION'-CHOOSE ALT APC ❑ ALT B.O.❑
OFFICE NAME: _
CONTACT NAME:
ADDRESS: -_
CITY:
STATE: CALIFORNIA ZIP+4:
PHONE: (_�_ FAX: L_)
Submitted by. _ Phone: Date:
SEND TO:U.S.Bank UM.P.A.C.Government Services,P.O.Box 6346,Fargo,ND 58125.6346
PHONE: 300.227-6736 FAX REQUESTS TO: 701461-3910 FILE CODE001
F-80
OSB F107—PROC CTR I.H.P.A.C. DISPUTED TRANSACTION STATUS REPORT DATE 04/21/00 )
JOB:RS6000A PGM:RS6000A BY AGENCY RUN: 01/21/00-17:01
N LEVEL 2: LEVEL 3: LEVEL 4: 0001
C7 y
(„) (1) MOBILE EQUIPMENT OFFICE
U � v
a m •� CH NAME DATE RESOLVED/
INVOICE NUMBER CH NUMBER TRANSACTION REFERENCE Y DISPUTE REASON/AMOUNT STATUS/LETTER SENT PAYMENT DUE
hC7 (n N --------------- -------------------- ----------------------- ------------------------- ------------------------- --------------
w NO OUTSTANDING DISPUTES
L ...a....a.r........•++•r•.+....•.r+++++ RESOLVED DISPUTES '•••••ar+++++a++.e++++++++++u++++++++
OC)
'a E Q 3121-00 BRIAN BORLACE 24492799362147000020043 CREDIT RECEIVED FROM VEND CREDIT RECEIVED FROM VEND 03/27/00
= Z (�,) 033 23.40 LETTER 102 05/31/00
U U Q •+* END OF REPORT ••• \ v
ca
UUW
a
m
..............+++++•++++++»++++at++f+b+.+++af+tff+ft++f+++++++.++++tu+++ft1+f+•f+f+H H++•++++Hbu+.+u+u Hua++•
LEGEND: LETTER 102—CREDIT RECEIVED FROM VENDOR LETTER 111-COPY REQUEST HAS BEEN FULFILLED
• LETTER 103-SHIPPING CHARGE NOT DISPUTABLE LETTER 113-REBILLING FOR PRIOR CREDIT CORRECT
LETTER 106-TAX CHARGE NOT DISPUTABLE LETTER 114-DISPUTE IS PAST TIME TO ADJUST
' LETTER 106-00.EDI7 RECEIVED THROUGH RF18CJ LETTER 115-CARD MEMBERSHIP FEE VALID
' LETTER 107-MERCHANDISE OR SERVICE HAS BEEN RECEIVED LETTER 116-CARD MEMBERSHIP FEE CREDITED
• LETTER lOB-CARDHOLDER RESOLVED DISPUTE W/VENDOR LETTER 121-SALES DRAFT NOT PROVIDED-TEMP CREDIT GIVEN
' LETTER 109-CARDHOLDER NOW RECOGNIZES CHARGE LETTER 122-OFFSETTING DEBIT RECEIVED
• LETTER 110-SALES DRAFT SENT TO CARDHOLDER.......... LETTER ORG-ORIGINAL LETTER .ADDRESSING..*.....* SPECIFIC DISPUTE
................................. ..u.•u u.a....a+..+f+»f...+♦.u.•+.+..+u.++++»++.+++..»+•++u u+•a u.........
NOTE: RESOLVED DISPUTES) WILL SHOW ON REPORT FOR ONE CYCLE ONLY. IF THE RESOLVED DISPUTE HAS NOT
ALREADY BEEN PAID, PLEASE APPROVE THE AMOUNT FOR PAYMENT AT THIS TIME.
c
BURKE, WILLIAMS & SORENSEN, LLP
OFFICE MEMORANDUM
TO: Harold Good
Director of Procurerent and Contracting
City of Palm Springs FILE NO. 04195-0001
FROM: Dawn C. Honeywell, Esq.
Deputy City Attorney
DATE: March 28, 2002
RE: Participation in State of California Procurement Card Program (the "Program")
Pursuant to your request, we have reviewed the State of California Master Agreement
with U.S. Bank for Procurement Card Services (the "Agreement"). The Agreement provides for
use by all authorized City employees of a credit card, similar to an American Express Card type
of arrangement where the entire amount charged to tie card is paid when presented to the City
each month. The Program provides for a very detailed breakdown of charges from each card
user and the ability to tailor different authorized amounts of expenditure for each card user. Use
of this Program by all City employees for City purchases will streamline the City's
recordkeeping for procurements and prevent any individual employee from exceeding their
authorized amount much more efficiently than our current system.
The Program does not require any cost on the part of the City for its utilization and
provides additional protection for unautborized fraudulent use of the cards.
The standard form of the general terms and conditions for the Master Agreement is
acceptable.
Should you have any further questions, we would be happy to address them.
DCH:mmf
cc: David J. Aleshirc, Esq., City Attorney �
i
IRV#20234 vI
MINUTE ORDER NO.
AUTHORIZING CITY COUNCIL TO
APPROVE PARTICIPATION IN THE
AGREEMENT TO INCLUDE AMENDMENT
NO. 1 DATED MARCH 01, 2001, FOR
STATE OF CALIFORNIA CAL-CARD
PROGRAM BETWEEN DEPARTMENT OF
GENERAL SERVICES AND U.S. BANK
NATIONAL ASSOCIATION ND (U.S. BANK)
AND TO AUTHORIZE THE CITY MANAGER
TO EXECUTE THE DOCUMENTS MAKING
THE CITY P, "PARTICIPATING LOCAL
AGENCY" IN STATE MASTER
AGREEMENT..
I HEREBY CERTIFY that this Minute Order authorizing City Council to I
approve participation in the agreement for State of California Cal-Card
Program between Department of General Services and U.S. Bank National
Association ND (U.S. Bank) and to authorize the City Manager to Execute
the documents making the City a"Participating Local Agency"in State Mater
Agreement, was adopted by the City Council of the City of Palm Springs,
California in a meeting thereof held on the 3fd of April 2002.
PATRICIA A. SANDERS
City Clerk