Title
Approving a resolution with the caption reading: Authorizing the City to participate in the City of Fort Worth's Commercial Card Agreement with JP Morgan Chase and authorizing the City Manager to execute same.
Summary
The City currently utilizes a traditional payment processing method utilizing vendor billing and limited credit card purchasing. The City desires to implement a Purchasing Card (P-Card) program to supplement and enhance the procurement of operational expenses. The procurement of a variety of expenses could be simplified through the use of a P-Card program, especially: supplies, maintenance items, repairs, training and professional memberships.
A P-Card program operates much like a credit card for the vendor and at the point of purchase. However, a P-Card program offers the City more control over individual cards, increased reporting, and a rebate based on total spending. Merchant categories (type of purchase) can be tailored to individual users based on their role in the City and changed as necessary. Further, spending limits can vary by card and can be changed quickly if needed. Finally, annual rebates will be paid to the City based on total annual dollars spent through the program, currently estimated at $30,000 annually.
P-Cards are not intended to replace effective procurement planning or circumvent any purchasing polices or procedures. P-Cards are used to reduce internal purchasing restrictions, minimize data entry and to delegate authority.
It is staff’s recommendation to piggy-back on Fort Worth’s Commercial Card Agreement with JP Morgan Chase. The cities of Leander, Georgetown and Cedar Park have been using this program through the City of Fort Worth for several years and have provided positive feedback. There is no cost to use this program.
Prior City Council Action
The City Council approved and interlocal agreement with Fort Worth on February 12, 2019.
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