HomeMy WebLinkAboutMINUTES - 07172001 - C.70 TO: BOARD OF SUPERVISORS
Contra
FROM: Barton J. Gilbert, Director of General Services =ti
f' � r Costa
DATE: July 17, 2001 County
SUBJECT: ADDENDUM TO STATE OF CALIFORNIA PURCHASE
CARD PROGRAM MASTER SERVICE AGREEMENT FOR
PROVISION OF PROCUREMENT CARD SERVICE
SPECIFIC REQUESTS OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
I. RECOMMENDATION:
APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute an addendum to State of
California Purchase Card Program Master Service Agreement on behalf of Contra Costa County, for
continued provision of procurement card service.
II. FISCAL IMPACT:
Use of a government procurement card for low dollar convenience purchases and purchases which are
typically made on a Warrant Request saves the County considerable money in processing. Examples of
these savings include:
1. Eliminating the need for requisitions to be processed through Purchasing Division, estimated to cost
in excess of$ 75.00 per requisition;
2. The Auditor's Office pays one invoice per Department per month, rather than many invoices. The
cost of paying invoices is estimated to be in excess of$50.00 per invoice.
3. The Auditor's Office does not have to process Warrant Request forms and issue separate checks for
each Warrant Request. The cost saving is estimated to be in excess of$50.00 per Warrant.
In January, 2001, the administrative fee previously assessed by the State of California was
discontinued. In addition, there are no monthly interest charges. In 2000, over 2,600 purchases were
made using the procurement card.
III. BACKGROUND:
In October, 1997, the Board of Supervisors authorized the use of the procurement card by County
departments. Although the program was not fully implemented until late 1999, it has proved to be a
very successful alternative method for some types of procurements and has been positively received by
departments. It is convenient and cost effective. Vendors are pleased, as they are paid much quicker,
which is advantageous to smaller businesses. The procurement card program supports and helps
departments to achieve the County's Small Business Enterprise program goals.
CONTINUED ON ATTACHMENT: Y S SIGNATURE:
__,00fOECOMMENDATION OF COUNTY ADMINISTRATOR —y—RECOMMENDATION OF BOARD COMMITT
_APPROVE OTHER
SIGNATURES
ACTION OF BOA O APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
7� UNANIMOUS(ABSENT )
AYES: NOES:
ABSENTS: ABSTAIN:
MEDIA CONTACT:
CC: General Services Department I HEREBY CERTIFY THAT THIS IS A TRUE
Administration AND CORRECT COPY OF AN ACTION TAKEN
AND ENTERED ON THE MINUTES OF THE BOARD
Accounting OF SUPERVISORS ON THE DATE SHOWN.
Purchasing
Auditor-Controller ATTESTED k,. LUU
County Administrator
SU WEE N,CLERK OF THE BOARD OF
SU RVISORS AND UNTY DMINISTRATOR
BY DEPUTY
Page 1 of 2 M382(10/88)
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ADDrNDUM TO STATE OF CALIFORNIA PURCHASE CARD
-PROGRAM MASTER SERVICE AGREEMENT July 17, 2001
1
There are over 120 cardholders in the County. Iri 2000, there were 2,654 purchases, for a total of$793,000
made using the procurement card. Training is provided to potential cardholders and approving officials prior to
a card being issued. The Purchasing Division of General Service has acquired software to assist in monitoring
the use of the card. and the Auditor's Office conducts periodic internal audits of departments' use of the
program. There have been no problems with illegal use of the card.
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Page 2 of 2 M382(10/88)