City Council
	Agenda Request
Agenda Of:	10-03-06	Agenda Request No:		III A
Initiated By:	Jennifer Montgomery Purchasing Manager	Responsible Department:		Administrative Services
Presented By:	Jennifer Montgomery Purchasing Manager	Department Head:		Cindy Stanfield Administrative Services Director
		Additional Department. Head (s):		N/A
Subject / Proceeding:	Credit Card Program Approve Resolution 06-41 to join State of Texas Purchasing Card Program
Exhibits:	Resolutions 06-41
Clearances			Approval
Legal:	Eugenia Cano Assistant City Attorney		Executive Director:	N/A
Purchasing:	n/a		Asst. City Manager:	David Ellison
Budget:	N/A		City Manager:	Allen Bogard
Budget
Expenditure Required: $			N/A
Amount Budgeted/Reallocation: $			N/A
Additional Appropriation: $			N/A
Recommended Action
Authorize resolution to obtain financial accommodations from JP Morgan Chase Bank for the purpose of administering the City credit card program.
Executive Summary
The Purchasing Office is continually striving to better serve its customers by seeking out innovative ways to allow City employees to conduct business in the most time efficient and cost effective ways possible. The implementation of strictly controlled credit cards has enabled City employees to make purchases where a City issued purchase order cannot be used. Currently the City utilizes several credit card programs for various purchases. Members of the Executive Team hold Platinum Plus Master Cards to be used appropriately as needed. Mister Car Wash gas cards are used by the Police Department for fueling purposes. The City also has credit accounts with various vendors to be used in conjunction with a purchase order so that all credit card purchases can be reconciled in the HTE system. These cards are held by Purchasing and may be checked out by individuals in possession of a purchase order to that vendor for a specific purchase. Purchasing wishes to streamline these various credit card programs into one program through the State of Texas JP Morgan Chase credit card contract. Participating in the State contract will provide the City with many benefits that will allow us to conduct an efficient and responsible credit card program. Participating in the state contract comes at no cost to the City. JP Morgan Chase will issue as many or as few cards as needed with no associated fee. Information regarding purchases made with the cards will be accessible online immediately and employees will be required to reconcile all purchases by assigning account numbers and purchase descriptions within one week of a purchase being made. Information provided by the cardholder will be automatically downloaded to the HTE system so that accounts can be encumbered, as is currently done manually for City credit cards. Participating in the State of Texas contract not only brings the ability to conduct a greater level of management oversight on small purchases but also provides the City with the opportunity to capture a .92% refund on all purchases made using the JPMorgan Chase credit card. Refund checks will be issued to the City twice a year for .92% of the total dollar amount of purchases made during that 6-month period. On September 19, 2006, the Finance Committee was briefed on Staff’s request to enter into an agreement with JP Morgan Chase for credit card services. There are no outstanding questions from that meeting regarding this program. Staff has researched other credit card program options and believes that this program provides the best value to the City by way of its easy to use online reconciliation program and the .92% rebate. HTE has experience integrating the JP Morgan Chase online reconciliation system with its accounting program and is prepared to work with City staff to achieve seamless integration. JP Morgan has earned a reputation in the Purchasing industry as an excellent vendor for government credit card services and is ready to provide all the tools necessary in making the transition to one credit card system for the City.
Exhibits

RESOLUTION NO. 06-41

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS, AUTHORIZING THE CITY TO ENTER INTO A PURCHASING CARD AGREEMENT WITH JP MORGAN CHASE BANK, N.A. AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT.

WHEREAS, City of Sugar Land a municipality organized under the laws of the State of Texas (the City) desires to obtain financial accommodations from JPMorgan Chase Bank, N.A. (the Bank), as successor in interest to Bank One, NA, pursuant to the use of a number of purchasing card account numbers, the related accounts and cards bearing such account numbers (collectively, the Cards); and;

WHEREAS, the City intends to authorize designated employees to use the Cards for and in connection with corporate business on behalf of the City; and

WHEREAS, the Bank will not issue the Cards unless the City agrees to promptly pay the Bank for purchases made through use of the Cards, whether the use or indebtedness was authorized or unauthorized by the City; NOW, THEREFORE,

BE IT RESOLVED BY THE CITY COUNCIL

OF THE CITY OF SUGAR LAND, TEXAS:

Section 1. That the City shall apply to the Bank for the issuance of Cards in the names of designated City employees.

Section 2. That the City Manager is authorized to execute a Purchasing Card Agreement with the Bank (the Agreement) and take actions that are necessary to comply with the Agreement.

Section 3. That payments to the Bank will be made out of current revenues.

Section 4. That the Bank is authorized to act upon this Resolution until written notice of its revocation is delivered to the Bank.

Section 5. That the meeting at which this Resolution was approved was in all things conducted in compliance with the Texas Open Meetings Act, Chapter 551, Texas Government Code.

Section 6. That this Resolution shall become effective from and after its passage.

APPROVED on _______________________________, 2006.

_________________________

David G. Wallace, Mayor

ATTEST:

_____________________________

Glenda Gundermann, City Secretary

Reviewed for Legal Compliance: