HomeMy WebLinkAboutCOD-005-15 Clarilwa
Corporate Services
Report
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Clerk at 905-623-3379 ext. 2102.
Report To: General Purpose and Administration Committee
Date of Meeting: March 9, 2015
Report Number: COD-005-15 Resolution: ,
File Number: By-law Number:
Report Subject: Review and Renewal of Corporate Purchasing Card Services
Recommendations:
1. That Report COD-005-15 be received;
2. That the Municipality of Clarington, at no charge to the Municipality, enter into a Client
Supplier Agreement with the Bank of Montreal (BMO) for Corporate Purchasing Card
Services in accordance with all terms and conditions of the Ontario Education Collaborative
Marketplace (OECM) Master Agreement that expires May 31, 2018, with an optional two-
year extension; and
3. That any interested parties listed in Report COD-005-15 and any delegations be advised of
Council's decision.
Municipality of Clarington
Report COD-005-15 Page 2
Report Overview
To inform Council of the update to the Purchasing Card Services Program and the award of a
contract to BMO for the renewal of Corporate Purchasing Card Services, providing an
opportunity to earn revenue for expenditures related to normal operations.
1 . Background
The Purchasing card program initially started in 2003 through an open RFP process, and
is identified in the purchasing by-law. The Purchasing Manager has been reviewing the
program, and looking into new opportunities for efficiencies and potential revenue. In
December 2012, the Ontario Education Collaborative Marketplace (OECM) issued a RFP
for an update to their Purchasing Card Program. An award was made to BMO in June
2013. Participation in this RFP is open to the Broader Public Sector (BPS). The OECM
Agreement with BMO is valid until May 31, 2018, with an optional two-year extension.
OECM is a not for profit/non share corporation, partially funded by the government of
Ontario and governed by a Board of Directors representing publicly funded education
institutions. All OECM agreements meet the mandatory requirements of the BPS
Procurement Directive. They are primarily designed for Ontario's publicly funded
educational institutions but are also available to the BPS organizations and Municipalities.
Currently, the Municipality of Clarington maintains 126 Purchasing Cards; it provides for
efficiency in time and receipt of normal operating goods and services. The present
Purchasing Card provider is US Bank and has been providing this service to the
Municipality of Clarington since 2003; they have not offered revenue opportunities
through the original agreement.
2. Analysis & Program Renewal
Purchasing Cards, also known as "PCards" are all credit cards issued by a service
provider to approved Municipal employees with specific controls and limits enforced for
use, while doing business for the Municipality. A Purchasing Card policy is in place to
monitor usage and compliance. Prior to obtaining a PCard, Municipal employees are
required to sign a Cardholder Agreement to confirm they will comply with the Purchasing
Card policy and the responsibilities outlined in the Cardholder Agreement.
Some of the features of the BMO Purchasing Card include:
• Increase in reporting Management
• Transaction and spending analysis
• Monitoring of PCard activity
• Training on use of PCard
• Rates and rebates based on total spend of other participants rather than just the
spend by the Municipality of Clarington
• Improved timeliness of supplier payment
• Country, vendor and commodity blacking
Municipality of Clarington
Report COD-005-15 Page 3
• Compatibility with our existing system
• Fraud detection
In addition to using the card for low dollar purchases, there are other opportunities where
the use of BMO Purchasing Cards could be a beneficial method for the cost effective and
efficient procurement for high volume goods and service which in addition to timely
payment of supplier, would allow the Municipality to take advantage of prompt payment
discounts and additional rebates based on spend.
The BMO Master Agreement has provisions for either party to terminate the agreement
should it be required.
Due to the confidential nature of the agreement, details will not be circulated.
3. Financial Consideration & Revenue Opportunity
There is no cost to the Municipality of Clarington to enter into the Client Supplier
Agreement with BMO and distribute the BMO Purchasing Cards to Municipal employees.
There is however, an opportunity for revenues in the form of rebates, which are based on
total spending between all participants in the RFP. This is a new opportunity for revenue
to be earned; it is anticipated that between $7,000 to $9,000 per annum might be earned.
4. Concurrence
This report has been reviewed by Nancy Taylor, Director of Finance/Treasurer, who
concurs with the recommendations.
5. Conclusion
The Municipality of Clarington, at no cost to the Municipality, proposes renewal of the
Purchasing Card Services Program by entering into a Client Supplier Agreement with
BMO for a Purchasing Card Service in accordance with terms and conditions of the
Ontario Education Collaborative Marketplace Master Agreement that expires May 31,
2018, with an optional two year extension. This is essentially a normal operating
agreement which will be awarded by the Purchasing Manager; however it is presented
here for information and awareness of the new opportunity to earn revenue.
6. Strategic Plan Application
The recommendations contained in this report conform to the Strategic Plan.
Municipality of Clarington
Report COD-005-15 Page 4
Submitted by: Reviewed by: ° u �C�
rie Marano, H.B.Sc., A.M.C.T. Franklin Wu,
Director of Corporate Services Chief Administrative Officer
Staff Contact: David Ferguson, Purchasing Manager, 905.623.3379 Ext 2209 or
dferguson @clarington.net
MM/DF/cb