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HomeMy WebLinkAboutMINUTES - 03241992 - X.2 .Y Z ` TO: BOARD OF SUPERVISORS Contra FROM: INTERNAL OPERATIONS COMMITTEE Costa n; ?s County DATE: March 23, 1992 SUBJECT: APPROVAL OF EXCLUSIVE MARKETING AGREEMENT WITH VERTICAL MARKETING, INC. (VMI) TO LOCATE AND NEGOTIATE WITH BANKS TO PROVIDE AN AFFINITY CREDIT CARD PROGRAM FOR THE COUNTY SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1 . Approve and authorize the Chair to execute on behalf of the County the attached agreement with Vertical Marketing, Inc. (VMI ) under which VMI will be provided, at no cost to the County, an exclusive marketing agreement to locate and negotiate with banks to provide an affinity credit card program for the County. 2 . As a part of the agreement, require that VMI advise the -County Administrator in writing within ten days specifying the proposed manner in which VMI will be compensated if the County enters an agreement with a bank for an affinity credit card program. Request the County Administrator to furnish this letter to each member of the Board of Supervisors when received. 3 . Request the County Administrator to report to the Board of Supervisors not later than the conclusion of the term of the agreement with VMI (six months) on the results of VMI 's efforts to locate and negotiate an agreement with a bank for an affinity credit card program for the County. 4 . Remove this item as a referral to our Committee. BACKGROUND: On March 17, 1992 , the Board of Supervisors authorized the County Administrator to explore with VMI the possibility of entering into an agreement under which VMI would solicit affinity credit card proposals from banks . At that time, the Board of Supervisors also CONTINUED ON ATTACHMENT: YES j SIGNATURE: RECOMMENDATION OF C Y ISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE �/ , � SIGNATURES: SUNNE WRIGHT McPEAK Marcn 24, 1992 ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS - I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISOR N THE DATE SHOWN. Please see Page 2 . .2 l? 9 1. CC: ATTESTED PHIL BATCHELOR,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR BY DEPUTY M382 (10/88) -2- directed the County Administrator to review the proposed agreement with VMI with the County Counsel ' s Office and return to our Committee with the comments of the County Counsel 's Office on March 23, 1992 . On March 23, 1992 our Committee met with Sondra Rothwell from the County Administrator' s Office and Mary Ann Mason from the County Counsel 's Office and reviewed a memorandum report from the County Counsel ' s Office. VMI has asked for six months within which to locate and negotiate an agreement with a bank for an affinity credit card program for the County. While we would have preferred a shorter period of time, we are prepared to allow VMI six months since they apparently believe that such a period of time is necessary in order to conclude negotiations . The agreement places no obligation on the County other than precluding negotiations with others firms or banks during the period of time the agreement is in effect. We believe that staff have accomplished what our Committee had asked for and we are, therefore, making the above recommendations and recommending that this item be removed as a referral to our Committee. cc: County Administrator Sondra Rothwell, CAO' s Office County Counsel Social Services Director Treasurer-Tax Collector Auditor-Controller FACT (Via Mary Kay Miller, SSD) CONTRA COSTA COUNTY AUTHORMAT70N AGREEMENT Phil Batchelor Mr. Thomas J. Britz County Administrator President Attn: Sondra Rothwell, Vertical Marketing, Inc . Management Analyst 100 W. Beaver Creek Blvd. Contra Costa County Suite 210 651 Pine St. , 11th Floor P.O. Box 2063 Martinez , CA 94553 Avon, CO 81620 This Authorization Agreement reflects a general intention between the parties to develop a Contra Costa County/Department of Social Services (Contra Costa County) , co-branded affinity Visa credit card fundraising program, in conjunction with Vertical Marketing, Inc . (VMI ) , and sponsored by Contra Costa County. At no cost to County, VMI shall work with Contra Costa County to develop a satisfactory credit card fundraising program, and shall locate and negotiate with acceptable banks to administer said program, subject to approval by Contra Costa County. This letter evidences the intent of the parties to exclusively initiate the development of a satisfactory credit card fundraising program, and to enter, as soon as possible, into formal agreements to cover the parties ' long-term relationship. Furthermore, this letter authorizes VMI to begin development of this program, and to begin discussions with potential banks to administer the program on behalf of Contra Costa County. Contra Costa County as the sponsoring organization, shall retain the right to approve and accept any firm offer presented by VMI from said banks , prior to entering into formal agreement with said bank as a party to the contract. This letter shall remain in effect for the period of March 24 , 1992- September 24, 1992, or until a formal agreement is signed, at which point this letter shall be superceded by that agreement. If , however, no appropriate bank relationships are obtained within the time covered by this Authorization Agreement, Contra Costa County will be under no further obligation to VMI, nor VMI to Contra Costa County. Within 10 days of execution of this agreement, VMI will provide to the Contra Costa County Administrator, a letter specifying the proposed manner of compensation for VMI should Contra Costa County in its discretion decide to enter into a formal agreement with a bank for provision of an affinity credit card fundraising program. y • Guarantees VMI guarantees Contra Costa County that the use of any lists provided pursuant to the program will be utilized only for the purposes authorized by the County. Contra Costa County will not be liable for any costs related to the bank-provided affinity credit card program offered on its behalf , but may be liable for any optional programs and services added to the primary affinity card program, if Contra Costa County in its discretion agrees to participate in such optional programs or services . VMI also guarantees that Contra Costa County is not liable for any credit risk, whatsoever. ACKNOWLEDGED BY: ACKNOWLEDGED BY: VERTICAL MARKETING, INC. CONTRA COSTA COUNTY BOARD OF SUPERVISORS BY: BY: Thomas J . Britz Sunne Wright McPeak President Chair, Board of Supervisors Date: Date: MAR 2 4 1992 MAM/jh J-7:a:\mam\1trs\vmi.f -2-