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<br />WS – Item 5 <br />WORK SESSION STAFF REPORT <br />Work Session Item No. 5 <br /> <br /> <br />Date: April 2, 2018 <br /> <br />To: City Council <br /> <br />From: Sarah Cotton, Finance Director <br /> <br />Re: Purchasing Cards <br /> <br /> <br />Background <br /> <br />In June 2012, the City of Lino Lakes expended its’ Purchasing Card Program. The City <br />is a participating agency to the program through an addendum to the Western States <br />Contracting Alliance (WSCA) contract between the State of Minnesota and U.S. Bank. <br />In 2012, the City expanded the program by issuing purchasing cards to directors, <br />supervisors, and employees with purchasing authority. A copy of the Purchasing Card <br />System User Manual (Policy) is included for your reference. <br /> <br />The City currently has 18 active purchasing card accounts. Below is a summary of <br />expenditure volume and annual rebates since inception: <br /> <br /> <br /> <br />The City receives a quarterly rebate, which is applied to the statement, based on spend <br />volume. The rebate is composed of a 1.3% fixed amount (based on spend volume) and a <br />variable amount (based on file turn or average speed of payment). <br /> <br />Staff has been made aware of the council’s desire to potentially expand the purchasing <br />card program. Due to the increased administrative burden, potential risk involved in <br />having additional card holders, and the loss of the ability to search by vendor in the <br />Purchase Annual <br />Volume Rebate <br />6/2012-12/2012 149,983.40$ 758.10$ <br />2013 198,231.90$ 1,646.05$ <br />2014 224,009.73$ 3,029.89$ <br />2015 251,344.75$ 4,442.15$ <br />2016 190,808.59$ 4,090.25$ <br />2017 195,103.81$ 3,634.38$ <br />2018YTD 34,484.62$ 607.89$ <br />1,243,966.80$ 18,208.71$ <br />Average Rebate % 1.46%