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HomeMy WebLinkAboutItem 12 - Procurement Card ServicesI T EM, J2— MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: FEBRUARY 15, 2011 SUBJECT: APPROVAL OF A RESOLUTION TO ESTABLISH AN ANNUAL CONTRACT FOR PROCUREMENT CARD SERVICES THROUGH AN INTERLOCAL AGREEMENT AND ESTABLISHED CONTRACT WITH THE CITY OF FORT WORTH RECOMMENDATION: City Council to consider approval of a resolution to establish an annual contract with JP Morgan Chase through an interlocal agreement with the City of Fort Worth for procurement card services. I: 1 ►� [ 3 :(e l l it 11 r r I> This contract will be made as allowed by Texas Local Government Code, Section 271.102. which states that any entity participating through an interlocal agreement satisfies any bidding requirements required under State law. This request is to approve establishing an annual contract for procurement card services through an Interlocal Agreement with the City of Forth Worth, Texas. Proposals were taken by the City of Fort Worth, Texas and a contract ( #35775) was awarded to JP Morgan Chase on July 17, 2007. The City of Grapevine established the procurement card program on August 31, 2003 with JP Morgan through a contract (946 -A1) with the State of Texas Comptroller of Public Accounts. The contract expired in September 2010 and was granted an extension until March 2011 through a transition clause in the contract. The City of Fort Worth solicited proposals for procurement card services from approximately 79 vendors with four vendors responding. The proposals were reviewed by a selection committee based on criteria of the proposals and presentations, and JP Morgan Chase was selected as the most responsive, responsible proposal including revenue rebate pricing annually. State of Texas Comptroller of Public Accounts awarded a new contract to Citibank starting in September 2010 through August 2013 with three, one -year renewals. Staff met with Citibank and with JP Morgan Chase and evaluated the two proposed contracts. Staff concluded that where both programs offered similar proposals including rebates, fraud liability, and service, the cost to change programs would include training and software implementation which would out weigh any minimal cost difference in the proposals. Staff also considered going out for bid but based on the City of Grapevine's spending levels, the City would not be able to take advantage of the incentives and rebates from a cooperative agreement and the fees would also be higher. The term of the contract is one year with an option to renew. JP Morgan has provided this service to the City in the past with satisfactory results. Staff recommends approval of a resolution to establish an annual contract with JP Morgan Chase through an interlocal agreement with the City of Fort Worth for procurement card services. GR RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, AUTHORIZING THE CITY MANAGER OR THE CITY MANAGER'S DESIGNEE TO ENTER INTO A PROCUREMENT CARD AGREEMENT W ITH THE CURRENT CONTRACTED BANK THROUGH AN ESTABLISHED INTERLOCAL AGREEMENT AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine, Texas is a local government in the State of Texas and as such is empowered by the Texas Local Government Code, Section 271.102 to enter into a cooperative purchasing program agreement with other qualified entities in the State of Texas, and WHEREAS, the City of Fort Worth is authorized by Section 271.102 of the Texas Local Government Code to pursue mutually beneficial and cooperative purchasing programs; and WHEREAS, the City of Grapevine, Texas, has established an Interlocal Agreement with the City of Fort Worth and wishes to utilize established contracts meeting all State of Texas bidding requirements; and WHEREAS, the City of Fort Worth has established a contract with JPMorgan Chase Bank, N.A. for the Commercial Card Program (Purchasing Card); NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS:. Section 1. That all matters stated in the above preamble are true and correct and are incorporated herein as if copied in their entirety. Section 2. That the City Council of the City of Grapevine authorizes the agreement with JPMorgan Chase Bank, N.A. for the Procurement Card Program. Section 3. That the City Manager, or his designee, is authorized to take all steps necessary to consummate the contract for said Bank Services. Section 4. That this resolution shall take effect from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 15th day of February, 2011. _ . VOTE 0 ATTEST: APPROVED AS TO FORM- RES. NO.