HomeMy WebLinkAboutAgenda Report - June 16, 2010 D-14AGENDA ITEM
CITY OF LODI
,. COUNCIL COMMUNICATION
Im
AGENDA TITLE: Adopt a Resolution Authorizing the Issuance of CAL -Card Procurement Cards to
City of Lodi Department Heads and Cancel Farmer's and Merchant Bank Visa
Cards
MEETING DATE: June 16,2010
PREPARED BY: Deputy City Manager/Internal Services Director
RECOMMENDED ACTION: Adopt a resolution authorizing the issuance of CAL -Card
procurement cards to City of Lodi department heads and cancel
Farmer's and Merchant Bank Visa cards.
BACKGROUND INFORMATION: Resolution 2005-261, passed by City Council on December 21,
2005, ratified the City's purchasing policies and procedures that
included the provision for issuing CAL -Card procurement cards to
employees authorized by resolution of the City Council. Since that time, two employees have been
issued these procurement cards, the Buyer and Purchasing Technician. Staff is recommending
expanding the use by issuing cards to department heads and canceling Farmer's and Merchant Visa
cards issued to department heads.
In October 2008, Farmer's and Merchant Bank outsourced their credit card services to UMB Bank in
Kansas City, Missouri. The transfer of services has shortened the payment terms to 25 days, which is
often an inadequate turn -around time for department and City Manager review and processing of
payments.
By moving to the CAL -Card procurement card, the City will realize several benefits not provided with the
Farmer's and Merchant Visa cards, a few of which include:
• Payment terms of 45 days without penalty, which allows for staff review and processing of
payments.
• Rebates — The City can earn rebates for prompt payments (the sooner a payment is made within
the 45 days allowed, the greater the rebate), average transactions (total sales over the quarter
divided by number of transactions generates dollars returned to the City) and volume sales
(highervolumes generate greater rebates).
• Ability to specify the types of purchases authorized and to set spending limits.
It is recommended that CAL -Cards be issued to the following department heads along with monthly
expenditure limits shown — these limits are identical to those available previously under the F&M Bank
cards:
APPROVED: r
KbAr�artlam, Interim City Manager
Department Head
CAL -Card Monthly
Limit
Rad Bartlam, Interim City Manager
$10,000
Randi Johl, City Clerk
$15,000
Gary Benincasa, Interim Police Chief
$15,000
Kevin Donnelly, Fire Chief
$ 7,500
Nancy Martinez, Library Services Director
$ 5,000
James Rodems, Interim Parks & Rec. Director/Comm. Center Director
$ 5,000
Wally Sandelin, Public Works Director
$ 5,000
Steve Schwabauer, City Attorney
$ 5,000
Elizabeth Kirkley, Electric Utility Director
$ 5,000
FISCAL IMPACT: No additional cost associated with the procurement card. Additional revenue in the
form of quarterly rebates is unknown.
FUNDING AVAILABLE: Expenses charged to the CAL -Cards are included in departmental
appropriations.
Jordan Ayers
Deputy City Manager/internal Se ices Director
RESOLUTION NO. 2010-99
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE ISSUANCE OF CAL -CARD
PROCUREMENT CARDS TO CITY OF LODI
DEPARTMENT HEADS AND CANCELLING FARMERS
AND MERCHANTS BANK VISA CARDS
WHEREAS, Resolution No. 2005-261, adopted by the Lodi City Council on December
21, 2005, ratified purchasing policies and procedures that allow for the use of CAL -Card
procurement cards by employees authorized by resolutioncf the City Council; and
WHEREAS, staff recommends issuance of CAL -Card procurement cards to Department
Heads, and further recommends cancellation of Farmers & Merchants Bank Visa cards
currently used.
NOW, THEREFORE, BE 1T RESOLVED that the Lodi City Council does hereby
authorize the issuance of CAL -Card procurement cards to the following Department Heads with
monthly spending limits as shown, and further authorizes cancellation of Farmers & Merchants
Bank Visa cards:
Department Head
CAL -Card Monthly Limit
Rad Bartlam, Interim City Manager
$10,000
Randi Johl, City Clerk
$15,000
Gary Benincasa, Interim Police Chief
$15,000
Kevin Donnelly, Fire Chief
$7,500
Nancy Martinez, Library Services Director
$5,000
James Rodems, Parks & Recreation Director
$5,000
Wally Sandelin, Public Works Director
$5,000
Steve Schwabauer, City Attorney
$5,000
Elizabeth Kirklev. Electric Utilitv Director
$5,000
Dated: June 16, 2010
I hereby certify that Resolution No. 2010-99 was passed and adopted by the City
Council of the City cf Lodi in a regular meeting held June 16, 2010, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, and Mounce
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Mayor Katzakian
ABSTAIN: COUNCIL MEMBERS— None
2010-99