HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/19/2013 - SECOND READING OF ORDINANCE NO. 015, 2013 AUTHORIZDATE: February 19, 2013
STAFF: Jim O’Neill
Mike Beckstead
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 8
SUBJECT
Second Reading of Ordinance No. 015, 2013 Authorizing the Extension of the Purchasing Card Services Agreement
with UMB Bank for an Additional Five Year Period.
EXECUTIVE SUMMARY
In 2007, the City and Poudre School District did a cooperative request for proposal process for Procurement Card
(PCard) Services. The solicitation was for a five-year period with an option to renew for an additional five years with
the approval of City Council. This cooperative bid was also open for participation of other governmental entities.
Each entity contracts separately with the selected bank but shares in the value of the combined spending and
services offered by the bank (UMB Bank). Participation in this cooperative contract has grown from the original 2
to over 70 governmental agencies in Colorado. The participants in the cooperative combine their volume of
purchases which results in a higher rebate to each participant based on their individual volume of purchases. The
City’s estimated 2013 rebate amount is over $130,000. This Ordinance, unanimously adopted on First Reading on
February 5, 2013, authorizes the extension of the contract with UMB Bank until March 2017.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary - February 5, 2013
(w/o attachments)
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ATTACHMENT 1
DATE: February 5, 2013
STAFF: Jim O’Neill
Mike Beckstead
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 18
SUBJECT
First Reading of Ordinance No. 015, 2013 Authorizing the Extension of the Purchasing Card Services Agreement with
UMB Bank for an Additional Five Year Period.
EXECUTIVE SUMMARY
In 2007, the City and Poudre School District did a cooperative request for proposal process for Procurement Card
(PCard) Services. The solicitation was for a five-year period with an option to renew for an additional five years with
the approval of City Council. This cooperative bid was also open for participation of other governmental entities. Each
entity contracts separately with the selected bank but shares in the value of the combined spending and services
offered by the bank. The bank selected was UMB Bank, n.a. (UMB Bank). The contract was signed in March 2008.
Services provided by UMB Bank have been outstanding. Participation in this cooperative contract has grown from the
original 2 to over 70 governmental agencies in Colorado. The participants in the cooperative combine their volume
of purchases which results in a higher rebate to each participant based on their individual volume of purchases. The
City’s estimated 2013 rebate amount is over $130,000.
BACKGROUND / DISCUSSION
Pcard programs are designed to make small purchases in the most efficient manner possible. Controls are placed
an each card by category and also by individual. For example all City cards are blocked from receiving cash advances
or for the purchase of alcohol. Individual spending limits are controlled by the spending need of the individual.
Periodic audits of card holder receipts ensure compliance with program controls. The program has been very
successful. The City’s program has increased from 725 card holders to the current 968. The City’s rebate amount
has grown from $24,351 in 2008 to over $130,000 per year.
Because of the administrative costs for both the vendor and the City in setting up the system and issuing cards, the
contract has been structured to allow for two five-year periods. The second five-year period is contingent on City
Council approval.
UMB Bank has done an outstanding job for the last five years and staff is recommending Council approve an extension
of an additional five-year period.
City of Fort Collins:
2008 volume: $6 million and 725 card holders.
2012 volume: $8.4 million and 968 card holders
Number of other governmental agencies participating in the cooperative and dollar volume:
2008: 2 - $7 million
2012: 76 - $103 million
FINANCIAL / ECONOMIC IMPACTS
The City receives a rebate on purchases made on the Pcard.
2011 rebate paid in 2012 $120,312
2012 rebate to be paid in 2013 – Est. $132,647
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February 5, 2013 -2- ITEM 18
ENVIRONMENTAL IMPACTS
Pcard programs reduce the number of small invoices submitted for payment and the need to generate checks for
multiple vendors.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
ORDINANCE NO. 015, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE EXTENSION OF THE PURCHASING CARD SERVICES
AGREEMENT WITH UMB BANK FOR AN ADDITIONAL FIVE YEAR PERIOD
WHEREAS, UMB Bank, n.a. was selected by a competitive process in 2007 to provide
purchasing card services; and
WHEREAS, the City has contracted with the UMB Bank, n.a. to provide purchasing card
services for the last five years; and
WHEREAS, the original request for proposal and agreement provided for a five year
extension, subject to City Council approval; and
WHEREAS, the City wishes to extend the term of the agreement for an additional five years;
and
WHEREAS, City Code Section 8-186(a) requires that all contracts in excess of five years
be authorized by ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the Purchasing Agent is hereby authorized to enter into an extension of the banking
services contract with UMB Bank, n.a. for the next five year period ending March 2017.
Introduced, considered favorably on first reading, and ordered published this 5th day of
February, A.D. 2013, and to be presented for final passage on the 19th day of February, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 19th day of February, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk