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HomeMy WebLinkAbout2002 01 14 Informational D Purchasing Card Program ..~ ~ . . - ~,. COMMISSION AGENDA ITEM D Consent Informational X Public Hearing Regular January 14, 2002 Meeting (l- @ Mgr. / Authorization PURPOSE: The General Services Department wishes to inform the Commission that, after much deliberation among staff, it has been determined that the implementation of the so-called purchasing card program would not be in the best interests of the city, and the decision has been made to abandon that effort. CONSIDERATIONS: 1. The Purchasing Card Program offered by Bank of America was initially researched and considered as a way to minimize Restricted Purchase Orders (RPO), which are used for purchases of $50 or less. At the time (early in calendar year 2000), RPOs were being generated at a rate of almost 5,000 per year. 2; Since that time, new financial software has been purchased and implemented, and staff has discovered that, with minor modifications in the way RPOs are generated, this new software can accommodate purchases under $50 more efficiently, and RPOs can be kept to a minimum. In addition, those purchases now interface directly with our accounting procedures, whereas in the past, RPOs were processed manually. 3. This matter has been discussed extensively at staff meetings, and it has been determined that the purchasing card program - with its complicated procedures for implementation - would do nothing mure than add another unnecessary layer of accounting. It would also require the writing of a comprehensive manual for card utilization. ....., . "'" ., ,.. December 10, 2001 City Commission Informational Agenda Item 4. Lastly, security issues seem to be a major concern relative to those who would be authorized to use the card. 5. Staff, therefore, has decided to discontinue further consideration of this purchasing card program, and Bank of America has been notified accordingly. ATTACHMENTS: None COMMISSION ACTION: None Required.