TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Utilization of the State of Florida P-Card Program
____________________________________________________________________________
Recommended Action
Approve utilization of the State of Florida Purchasing Card Program - Eligible User Agreement between the Bank of America and the City of North Port (State Term Contract No.84121500-15-01).
Background Information
On March 26, 2012, City Commission approved utilization of the Hillsborough County Procurement Card Program Linking Agreement (hereinafter "Agreement") with Bank of America (hereinafter "BOA"), which allowed the City of North Port to join a consortium with approximately 31 other entities. The current agreement will be expiring on August 16, 2019. For continuity of service, staff is requesting City Commission approve utilization of the above referenced Agreement. BOA has agreed to annualize the Hillsborough Consortium spend from 10/1/2018 through 12/31/2018 and make this Agreement effective retroactively to from January 1, 2019 to receive the benefit of a whole year of spend. The state rebate will be calculated on the calendar year calculation period of January 1st - December 31st and will be paid annually in February.
The standard rebate multiplier is based on the calculation period cumulative total of all standard transactions volume (see chart below).
(Transaction Volume for Standard Transaction x Rebate Multiplier) + (Transaction Volume for Large Ticket Interchange Transactions x LTI Rebate Multiplier) - Total Credit Losses.
OTHER ELIGIBLE USERS (OEU)
ANNUAL SPEND ($)
BASIS POINTS TO OEU
1,000,000 - 3,499,999
110 basis points*
3,500,000 - 9, 999,999
145 basis points*
10,000,000 - 17,999,999
165 basis points*
18,000,000,000 - 24,999,999
168 basis points*
25,000,000 - 39,999,999
170 basis points*
40,000,000
171 basis points
OEU - earns on Large Ticket Items (LTI)
55 basis points
...
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