HomeMy WebLinkAbout04-02-2018 Council Work Session Packet CITY COUNCIL WORK SESSION AGENDA
CITY OF LINO LAKES
Monday, April 2, 2018
Community Room
6:00 P.M.
1. Anoka County Assessor – Preview for Board of Appeal and Equalization
2. Consideration of 2018 Environmental Board Goals
3. Consideration of 2018 Anoka County Recycling Agreements
4. Safe Ride Home Program, John Swenson
5. Purchasing Card System, Sarah Cotton
6. Technology Upgrades, Sarah Cotton
7. Rice Lake Elementary Playground Equipment Project Follow-Up, Rick DeGardner
8. Blue Heron Days, Craft Beer Stand at Lino Park, Julie Bartell
9. Council Updates on Boards/Commissions, City Council
10. Monthly Progress Report, Jeff Karlson
11. Birch Park Playground Project Proposal, Rick DeGardner
12. Review Regular Agenda
13. Adjourn
WS – Item 1
WORK SESSION STAFF REPORT
Work Session Item No. 1
Date:
To:
From:
Re:
April 2, 2018
City Council
Julie Bartell
2018 Board of Appeal
Background
Each year, the city council acts as the Board of Appeal and Equalization for the City.
The purpose of the Board is to hear from property owners in the city who have questions
or concerns about the appraised value of their property for the coming year. The Board
has the authority to determine whether taxable property in Lino Lakes has been properly
valued and classified by the Anoka County Assessor.
This year the Board meeting is scheduled for April 23 at 6:00 p.m., previous to the
regular council meeting.
Anoka County Assessor’s Office staff will be in attendance at tonight’s work session to
review the attached board report for this year’s meeting.
Attachments
2018 Board of Equalization Report
2018
ASSESSOR’S
REPORT
BOARD OF APPEAL AND
EQUALIZATION
Anoka County City of Lino Lakes
1
2018 Local Board of Appeal and Equalization
Agenda
April 23rd, 2018 1. Call the Board of Review to Order 2. Roll Call 3. Read Official Notice of the Board of Review 4. Board Chair outlines the ground rules for the meeting. The specific ground rules may vary for each local board but should include:
• Purpose of the meeting;
• Remind property owners that only appeals for the current year valuation or classification may be made. The 2018 board is to review the assessment as of January 2, 2018, which will be used to compute the property taxes payable in 2019. Prior years’ assessments or taxes (including taxes payable in 2018) are not within the jurisdiction of the board;
• The order of the appellants - by appointment first, followed by walk-ins on a first-come basis. The board will also receive written appeals from property owners. The secretary will record the required information (name, mailing address, telephone number, and address of property, etc.)
• The expectations of the appellant when presenting their appeal (i.e. the appeal must be substantiated by facts; where the appellant should stand or sit; the appellant should be prepared to answer questions posed by the board, etc.);
• Time limits imposed (if any);
• The procedure the board will follow for making decisions (Will the board hear all appeals before making any decisions? Will the board send a letter to appellants to inform them of the decision? Etc.) The Board may correct any erroneous valuation and add any omission of properties or increase of value after due process. The total decrease of valuations may not exceed one percent of the total valuation of the taxing district; 5. The Board Chair should give the assessor the opportunity to present a brief overview of the property tax process and a recap of the current assessment. 6. Appellants should then present their appeals to the board. If the assessor has had a chance to review the property prior to the meeting, the assessor can present facts and information either supporting the valuation and or classification, or recommend that the board make a change. If the assessor has not had a chance to review the property prior to the meeting, the board may ask the assessor to review the property and present his/her findings to the board at a reconvene meeting. 7. Recess or Close the Meeting. (If needed, the meeting will be reconvened at a date to be determined. The Board of Appeal and Equalization of any city must complete its work and adjourn within twenty days from the time of convening as specified in the notice of the clerk, unless a longer period is approved by the Commissioner of Revenue. No action taken subsequent to such date shall be valid.)
Anoka County City of Lino Lakes
2
Understanding Your Assessment and Appeal Options
Assessment Process Timeline In Minnesota it is the duty of the Assessor to value and classify property. This is done annually as of the assessment date of January 2nd. Each year's assessment is based on arms-length transactions (sales that meet the criteria of an open market transaction, see market value definition below) that occurred the
previous October thru September. When the assessment is completed the local taxing jurisdictions begin their budgeting process for the following year. They use the total assessment to determine their tax base and develop their tax rates (formerly referred to as mill rates). All aspects of the assessment, including but not limited to the assessment date, sales period for each assessment and property tax classification are dictated by state statute and under the oversight of the Minnesota Department of Revenue.
Market Value Defined As in private appraisal, Market Value is defined as:
The most probable price that a property should bring in a competitive and open market under
all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by any undue stimulus. Implicit in this
definition are the consummation of a sale as of a specified date and the passing of title from
seller to buyer under conditions whereby:
• buyer and seller are typically motivated:
• both parties are well informed or well advised, and acting in what they
consider their own best interests;
• a reasonable time is allowed for exposure in the open market;
• payment is made in terms of cash in U.S. dollars or in terms of financial
arrangements comparable thereto;
• the price represents the normal consideration for the property sold
unaffected by special or creative financing or sales concessions granted by
anyone associated with the sale (a foreclosure sale or a short sale [a sale to
avoid foreclosure] is not considered an arms-length transaction).
Mass Appraisal Defined Property values for Minnesota real estate tax purposes are determined via mass appraisal. Mass appraisal is the practice of determining individual values based on statistical analysis of a group of sales for a large area. The values are determined as of a specific date and are based on arms-length transactions that occurred during a specified sales period.
Anoka County City of Lino Lakes
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Sales Statistics Defined We have the ability by using statistical analysis to test the accuracy of the assessment. We use these statistics to ensure equity between properties at the neighborhood, municipal and county levels. The Minnesota Department of Revenue also uses these same techniques to test for equity between counties. The primary statistics used are:
Median Ratio: This is a measure of central tendency that is the midpoint of a group of sales ratios when arrayed from low to high. The median is a useful statistic as it is not affected by extreme ratios.
Aggregate Ratio: This is the total market value of all sale properties divided by the total sale prices. It, along with the mean ratio, gives an idea of our assessment level. Within the city, we constantly try to achieve an aggregate and mean ratio of 94% to 95% to give us a margin to account for a fluctuating market and still maintain ratios within state mandated guidelines. Also referred to as the Weighted Mean.
Mean Ratio: The mean is the average ratio. We use this ratio not only to watch our assessment level, but also to analyze property values by development, type of dwelling and value range. These studies enable us to track market trends in neighborhoods, popular housing types and classes of property.
Coefficient of Dispersion (COD): The COD measures the accuracy of the assessment. It is possible to have a median ratio of 93% with 300 sales, two ratios at 93%, 149 at 80% and 149 at 103%. Although this is an excellent median ratio, there is obviously a great inequality in the assessment. The COD indicates the spread of the ratios from the mean or median ratio. The goal of a good assessment is a COD of 10 to 20. A COD under 10 is considered excellent and anything over 20 will mean an assessment review by the Department of Revenue.
Price Related Differential (PRD): This statistic measures the equality between the assessments of high and low valued property. A PRD over 100 indicates a regressive assessment, or the lower valued properties are assessed at a greater degree than the higher. A PRD of less than 100 indicates a progressive assessment or the opposite. A perfect PRD of 100 means that both higher and lower valued properties are assessed exactly equal.
Appeals Procedure Each spring Anoka County sends out a property tax bill (based on the prior year assessment) along with the Notice of Valuation and Classification. Three factors that affect the tax bill are: 1. The amount your local governments (town, city, county, etc.) spend to provide services to your community; 2. The estimated market value of your property; 3. The classification of your property (how it is used). The assessor determines the final two factors. You may appeal the value or classification of your property as described on the next page.
Anoka County City of Lino Lakes
4
Informal Appeal
• Property owners are encouraged to call the appraiser or assessor whenever they have questions or concerns about their market value, classification of the property, or the assessment process.
• Almost all questions can be answered during this informal appeal process.
• When taxpayers call questioning their market value, every effort is made to make an appointment to inspect properties that were not previously inspected.
• If the data on the property is correct, the appraiser can show the property owner other sales in the market that support the estimated market value.
• If errors are found during the inspection, or other factors indicate a value reduction is warranted, the appraiser can easily make the changes at this time.
Local Board of Appeal and Equalization
• The Local Board of Appeal and Equalization is typically made up of city council members or township board members. In certain cases, a special board is appointed and is typically consists of real estate professionals.
• The Board meets during late April and early May.
• Taxpayers can make their appeal in person or by letter.
• If an interior inspection is denied no adjustment can be made to value per MN Statute.
• The assessor is present to answer any questions and present evidence supporting their value.
County Board of Appeal and Equalization
• In order to appeal to the County Board of Appeal and Equalization, a property owner must first appeal to the Local Board of Appeal and Equalization.
• The County Board of Appeal and Equalization follows the Local Board of Appeal and Equalization in the assessment appeals process.
• Again, if an interior inspection is denied no adjustment can be made to value per MN Statute.
• Their role is to ensure equalization among individual assessment districts and classes of property.
• Decisions of the County Board of Appeal and Equalization can be appealed to the Minnesota Tax Court.
Minnesota Tax Court The Tax Court has statewide jurisdiction. Except for an appeal to the Supreme Court, the Tax Court shall be the sole, exclusive and final authority for the hearing and determination of all questions of law and fact arising under the tax laws of the state. There are two divisions of tax court: the small claims division and the regular division. The Small Claims Division of the Tax Court only hears appeals involving one of the following situations:
• The assessor’s estimated market value of the property is <$300,000
• The entire parcel is classified as a residential homestead and the parcel contains no more than one dwelling unit.
• The entire property is classified as an agricultural homestead.
• Appeals involving the denial of a current year application for homestead classification of the property. The proceedings of the small claims division are less formal and property owners often represent themselves. There is no official record of the proceedings. Decisions made by the small claims division
are final and cannot be appealed further. Small claims decisions do not set precedent.
Anoka County City of Lino Lakes
5
The Regular Division of the Tax Court will hear all appeals, including those with the jurisdiction of the small claims division. Decisions made here can be appealed to a higher court.
The principal office for the Tax Court is in St. Paul. However, the Tax Court is a circuit court and can hold hearings at any other place within the state so that taxpayers may appear with as little inconvenience and expense to the taxpayer as possible. Appeals of property located in Anoka County are heard at the Anoka County Courthouse. Three judges make up the Tax Court. Each may hear and decide cases independently. However, a case may be tried before the entire court under certain circumstances. The petitioner must file in tax court on or before April 30 of the year in which the tax is payable.
Anoka County City of Lino Lakes
6
Lino Lakes Assessment Overview
Lino Lakes Assessment Staff
Name Position License Level Responsibility Scott Schutz Residential Appraiser SAMA Residential 1-3 Units Shawn Halligan Senior Appraiser CMA – Income Qualified Apartments Dan Eischens Senior Appraiser SAMA Commercial/Industrial/Exempt Alex Guggenberger County Assessor SAMA Countywide Oversite
City of Lino Lakes Property Breakdown
Property Type Number of Parcels Vacant Residential 121 Improved Residential 7,209 Apartment (Vacant & Improved) 9 Commercial/Industrial (Vacant & Improved) 201 Public Utility 8 Mobile Homes 93
Total 7,641
2018 Assessment As part of this mass appraisal process, all properties are re-valued annually based on the information on record. Properties are physically inspected and property records reviewed once every 5 years (as statutorily required). This is an ongoing process whereby 20% (referred to as quintile) of a city is inspected each year so that in a cycle of 5 years all properties have been inspected at least once. In addition to this quintile review, properties are also inspected when there is a building permit issued or at the request of the property owner. The sale of a property does not initiate a reassessment. The map on the next page depicts the residential quintile plan for the next 5 years.
Anoka County City of Lino Lakes
7
Anoka County City of Lino Lakes
8
As stated earlier, Minnesota state law governs the assessment date, which is January 2nd of each year, as well as the sales periods associated with each assessment date. The 2017 assessment which was used for tax calculations this year (2018) was based on transactions that closed between October 1, 2015 and September 30, 2016. Property owners were notified of their 2017 value on their Notice of Valuation and Classification (also referred to as a valuation notice). The notices were mailed out in March of 2017 in the same envelope as the tax statement. The appeals process took place at the municipal level during the month of April of 2017 and at the county level in June of 2016. At this point, if a property owner wishes to appeal their 2017 assessment (for taxes payable 2018) their only option is to file a tax court petition. This must be done no later than April 30, 2018. The 2018 assessment was completed in February and the valuation notices were mailed the week of March 26th. The 2018 assessed value will be used for tax calculation purposes next year. The sales period associated with this assessment is October 1, 2016 thru September 30, 2017. As with past assessments, the local appeals process will begin in April and finish up in June. The options and requirements to appeal this assessment are listed on the back of the valuation notice. If a property owner has an issue with their 2018 assessment, the first thing they should do is contact their local assessor. The phone numbers are listed on their valuation notice. Please note that only arms-length sales that closed between October 1, 2016 and September 30, 2017 have been used to determine valuations for the 2018 assessment, for taxes payable in 2019. The following chart may be helpful in following the timeline of your assessment.
SALES PERIOD ASSESSMENT DATE TAX YEAR
October 1, 2014
to January 2, 2016 2017
September 30, 2015
October 1, 2015
to January 2, 2017 2018
September 30, 2016
October 1, 2016
to January 2, 2018 2019
September 30, 2017
Anoka County City of Lino Lakes
9
We are aware that due to the time frames we are required to work within it sometimes appears as though the assessor’s estimated market value does not represent the market. It seems lower than it should be during times of inflation and higher than it should be in times of deflation. The following chart illustrates the relationship between assessed values and actual sale prices; and how the assessor’s market values have been following the changes as they occur in the open market.
Note: The Median Assessor’s Estimated Market Value represents the homes that are in the sales study. One important thing to remember is the assessment process is completed before the budgeting process begins. Assessors do not adjust values in order to increase revenue. There is little correlation between changes in assessments due to market changes and how the resulting real estate tax changes. When we adjust assessments due to market conditions, all properties are adjusted. The only time that an adjustment in an assessor’s estimated market value will have an impact on the increase or decrease in tax is if the change in value is due to value added for new construction or value removed due to demolition/destruction of an improvement.
2018 Sales Statistics – Residential The table below uses various sales metrics to compare how the residential market in Lino Lakes performed compared to the rest of the county. The sales study figures were gathered using Northstar MLS data.
Metric Lino Lakes Countywide Average Sale Price & % Change (YOY) $314,000 (+5.55%) $250,700 (+6.95%) Median Sale Price % Change (YOY) $299,000 (+7.28%) $228,600 (+6.33%) Median Days on Market (DOM) 31 26 # of Sales & % Change (YOY) 362 (+4.02%) 6,172 (+4.03%) # of Arm’s Length Sales & % Change (YOY) 349 (+7.72%) 5,855 (+8.77%) # of Non-Arm’s Length Sales & % Change (YOY) 13 (-45.83%) 317 (-42.36%)
$165,000
$170,000
$175,000
$180,000
$185,000
$190,000
$195,000
$200,000
$205,000
$210,000
$215,000
$220,000
$225,000
$230,000
$235,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Median Assessed Value vs. Median Sale Price
Median Sale Price Median Assessor's Estimated Market Value
Anoka County City of Lino Lakes
10
2018 Sales Ratio Statistics The tables below display the final adjusted sales ratios for Residential, Apartments, Commercial, and Industrial properties. All the numbers are within State of MN requirements and indicate a high-quality assessment with good equalization.
Residential Countywide Apartments
City Ratio COD PRD City # Sales Ratio COD Andover 94.48% 5.91 1.00 Anoka 4 94.50% - Anoka 94.65% 6.74 1.01 Blaine 4 96.97% - Bethel 95.64% 5.46 1.00 Columbia Heights 5 92.36% - Blaine 94.38% 6.01 1.01 Coon Rapids 2 90.14% - Centerville 94.68% 8.58 1.03 Fridley 7 98.14% 6.17 Circle Pines 94.22% 5.95 1.00 Spring Lake Park 6 93.31% 4.75 Columbia Heights 94.22% 8.78 1.01 COUNTYWIDE 28 94.19% 5.95 Columbus 94.82% 7.23 1.01 Coon Rapids 94.39% 5.41 1.00 Countywide Commercial East Bethel 94.06% 11.99 1.04 City # Sales Ratio COD Fridley 94.36% 7.92 1.02 Blaine 8 95.36% 12.89 Ham Lake 94.36% 7.68 1.01 COUNTYWIDE 29 95.29% 12.92 Hilltop 86.45% - - Lexington 93.52% 7.65 1.01 Countywide Industrial Lino Lakes 94.33% 6.12 1.01 City # Sales Ratio COD Linwood 94.67% 10.73 1.01 No Stand-Alone Cities Nowthen 94.38% 7.79 1.01 COUNTYWIDE 26 94.58% 13.48 Oak Grove 94.38% 7.61 1.01 Ramsey 94.66% 5.36 1.01 Spring Lake Park 94.06% 7.35 1.01 St. Francis 94.24% 9.21 1.02
COUNTYWIDE 94.44% 6.67 1.01
Anoka County City of Lino Lakes
11
Market Value History The graphs below indicate how aggregate values have changed over the last 5 years for each of the four largest property types.
2018 Market Value Statistics & New Construction
The tables below indicate the percentage change (YOY) for each of the four largest property types as well as the
total market value. The increase due to New Construction (NC) is also included in the table below.
Property Type 2018 EMV % Increase % Increase Due to NC Residential $1,913,854,200 5.61% 1.83% Apartment $21,423,200 7.10% N/A Commercial $91,601,900 11.24% .01% Industrial $78,587,600 7.83% N/A Total EMV $2,160,594,500 5.81% 1.78%
$-
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
2014 2015 2016 2017 2018
Residential
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2014 2015 2016 2017 2018
Apartment
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
2014 2015 2016 2017 2018
Commercial
$60,000,000
$65,000,000
$70,000,000
$75,000,000
$80,000,000
2014 2015 2016 2017 2018
Industrial
$-
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
2014 2015 2016 2017 2018
Lino Lakes Total EMV
WS – Item 2
WORK SESSION STAFF REPORT
Work Session Item No. 2
Date: April 2, 2018
To: City Council
From: Marty Asleson/Environmental Board
Re: Request to have 2018 Environmental Board Goals placed on the Council
Agenda for Consideration
Background
Each year the Environmental Board develops annual goals. The Environmental Board
would like the Council to consider these goals to be placed on the Council Agenda for
consideration.
Attachments
1.2018 Environmental Board Goals
Requested Council Direction
Consider placement on the regular Council Agenda for consideration.
1
Lino Lakes Environmental Board 2018 goals
1.Promote environmental stewardship with the citizens of Lino Lakes and
conservation opportunities by communicating environmental initiatives in the city
using various means of communication such as:
•Mailings
•Multi-media including social media such as Facebook, and possibly
Twitter
•School “enviro- shows” and other promotions in schools
•Partnerships with our two watershed districts
•Newspaper, Environmental Board article
2. Promote Lino Lakes environmental issues to the public by:
•Participate in Earth Day (April 21)
•Participate in Blue Heron Days (August 18)
•Partner with Anoka County Recycling Resource Solutions
1. Utilize County Select Committee on Recycling (SCORE) and
Local Recycling Development Grant (LRDG) Funds to the
maximum extent possible to increase our recycling totals.
2. Assist Anoka County, as requested, to ensure business recycling
within the City is conducted as mandated
3. Increase our volunteer base in organics recycling.
4. Promote hauler-based organics recycling.
5.Increase services available to residents at the monthly
Recycling Day event including additional paper shredding, events,
hard drive destruction and the “Bridging Program” and or other
charity organizations.
6.To meet or exceed our city recycling goal of 50 (2158 tons)
percent or greater of our municipal solid waste.
7. Find innovative ways to promote and encourage recycling as a
city.
8. Continue effort to establish curbside textile recycling.
9. Continue to look into ways for school facilities to reduce waste
and increase recycling. Continue to enhance recycling efforts
through grants from Anoka County Integrated Waste
3.Collaborate with Rice Creek Watershed District, Vadnais Lakes Area Water
Management Organization, and city staff to promote development and practices
that renews, preserves, and restores surface water including lakes, stream and
wetlands through project review processes and public education. When possible,
seek opportunities to do likewise in existing developments. Practical examples
may include maintaining and enhancing stormwater conveyance and citizen
education on yard waste management.
2
4. Monitor any activity in the AUAR as well as other proposed development areas,
focusing on the values that citizens of Lino Lakes have expressed in the 2040
vision for our city and the unique ecological aspects of our wetlands, lakes and
streams and subsurface waters, vegetation and wildlife populations.
5. Perform evaluation of past Environmental Board recommendations for
development projects. Review a sampling of a variety of projects by on-site
visits, discussion with city staff, landowners, and neighbors, on the outcomes of
the board’s recommendations. If necessary, submit a summary of significant
findings resulting from the review in writing to the Community Development
Director.
6. Support Conservation Development within the city through site review processes
by incorporating The Resources Management System Plan components of the
City Comprehensive Plan. The use of the planning documents within the
Comprehensive Plan that enable Conservation Development include:
• The Lino Lakes Handbook For Environmental Planning and
Conservation Development,
• The Minnesota Land Cover Classification System and Natural
Resource Inventory for Lino Lakes
• The Minnesota County Biologic Survey
• The Lino Lakes Assessment of Existing Ecological Conditions and
Management Opportunities
• The Lino Lakes Handbook For Environmental Planning and
Conservation Development
• The Minnesota DNR Regionally Significant Ecological Areas
Assessment, Rare Wildlife and Plant Models built by the City
• The Lino Lakes Parks, Natural Open Space/Greenways, and Trails
System Plan
• The I-35E Corridor Alternative Urban Area-wide Review (AUAR)
assessment
• The Rice Creek Watershed District/Lino Lakes Resources
Management Plan
• The Assessment of Development, Suitability and Natural Resources
Conservation Opportunities study,
• The City of Lino Lakes Local Surface Water Management Plan
7. Support the Community Garden site in conjunction with the Parks Department.
Assist with any garden modifications that may be needed because of the 2017
land sale.
8. Continue implementation of the Lino Lakes EAB Plan. Update the plan as needed
based on the 2017 identification of EAB in Lino Lakes, experience gained during
implementation, and rapidity of the spread of EAB throughout the City’s forests.
3
Offer residents opportunities for tree purchasing and possibly tree treatment.
Obtain interns and train them in Ash Tree Treatment. Continue treating a third of
our City boulevard trees.
9. Continue to work on Wollan’s Park Wetland bank to achieve wetland bank credits
by the end of the year 2019 and investigate new banking opportunities. Help to
establish a city-wide process to fund wetland banking.
10. Continue to monitor the Heron rookery in the northern one-third of Peltier Lake
and to support the protection of resources in that area. Update Council on these
matters. Recruit volunteers, as needed, to help with rookery maintenance and
monitoring.
11. Support efforts of our Community Development engineering department in the
development of a NPDES inventory (2018) of our ponds. Support adequate
funding for needed maintenance efforts as well.
12. Support the maintenance of established conservation easement areas where
funding is available. Conduct education as needed for homeowners near or
adjacent to these easements.
13. Consider becoming a “Green Step City, which would serve to support the 2040
City of Lino Lakes’ Comprehensive Plan. This initial step recognizes previous
(2012) EB interest in the program and would serve to familiarize the current
board with this voluntary program and its benefits. In turn, should the EB express
interest in moving forward, this would allow for effective communication of the
program to the Mayor, City Council, and City staff as needed.
WS – Item 4
WORK SESSION STAFF REPORT
Work Session Item
Date: April 2, 2018
To: City Council
From: John Swenson, Public Safety Director
Re: Safe Ride Home
Background
In an effort to reduce the number of impaired drivers on Lino Lakes roadways, staff has
developed the Lino Lakes Safe Ride Home program for impaired individuals and their
vehicle. This service will be available at any on-sale liquor establishment located in the
City of Lino Lakes.
The Public Safety Department is committed to reducing the number of impaired drivers
on community roadways through public education efforts, prevention, and enforcement.
The Lino Lakes Safe Ride Home program is a prevention effort with the goal of
providing a safe alternative to those who find themselves impaired and without a sober
driver for their vehicle.
Staff has identified Drink & Drive Intelligently (DDi) as the vendor who will provide the
ride service. DDi has been providing this service in the Twin Cities since 2005. DDi
conducts background and driver’s license checks on all of their drivers. DDi has
established special pricing for the Safe Ride Home program as follows:
• Rides up to 3 miles - $40.00
• Rides up to 5 miles - $45.00
• Rides up to 10 miles - $60.00
The Lino Lakes Safe Ride Home program will provide a coupon for a $10 discount per
ride for pick-ups that occurred at on-sale liquor establish in the City of Lino Lakes. The
cost of this program will be funded using DUI forfeiture funds; no general fund dollars
will be utilized for this program.
Staff will send a letter to all on-sale liquor establishments inviting them to an
informational meeting regarding this program. Once this informational meeting takes
place we will identify an exact start date for this program.
Attached is draft of Lino Lakes Safe Ride Home program coupon.
Staff is not seeking any Council action and is providing this report as information for
Council as well as an opportunity to provide any comment.
Attachments
DRAFT – Lino Lakes Safe Ride Home Program Coupon
*Note: Pick up location must be a Lino Lakes establishment. Reimbursement paid directly to DDi
Lino Lakes Public Safety Department
640 Town Center Parkway
Lino Lakes, MN 55014
Lino Lakes Public Safety Dept.
Safe Ride Home Program
The Lino Lakes Public Safety Department values the lives of all who live in and visit
the Lino Lakes Community. We want everyone to make it home safely. We
encourage responsible decision making in the interest of public safety and ask that
you choose a ride service rather than choosing to drive impaired.
The Lino Lakes Public Safety Department has teamed up with Drink & Drive
Intelligently (DDi), a company which provides a safe travel alternative to those who
find themselves impaired and in need of a safe ride home with their vehicle.
Use this coupon for $10 off a safe ride home for you and your
vehicle from any Lino Lakes on-sale establishment
To schedule your ride now, contact DDi:
www.youdrinkwedrive.org or call DDi: 651-338-1425
Lino Lakes Public Safety Department
Improving Public Safety through Awareness, Education, Prevention and Enforcement.
The Lino Lakes Public Safety Department values your feedback. Please find us on Facebook (@Linolakespd) or
Twitter (@LinoLakesPD) and let us know about your experience, or email saferidelinolakes@ci.lino-lakes.mn.us
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
--- Driver, Please Detach This portion to redeem ---
Date: ____________________ Time: _________________
Pickup Location: ________________________________________________________________
Total mileage for ride provided: ______________ Total Cost: ___________________
Driver: ________________________________
WS – Item 5
WORK SESSION STAFF REPORT
Work Session Item No. 5
Date: April 2, 2018
To: City Council
From: Sarah Cotton, Finance Director
Re: Purchasing Cards
Background
In June 2012, the City of Lino Lakes expended its’ Purchasing Card Program. The City
is a participating agency to the program through an addendum to the Western States
Contracting Alliance (WSCA) contract between the State of Minnesota and U.S. Bank.
In 2012, the City expanded the program by issuing purchasing cards to directors,
supervisors, and employees with purchasing authority. A copy of the Purchasing Card
System User Manual (Policy) is included for your reference.
The City currently has 18 active purchasing card accounts. Below is a summary of
expenditure volume and annual rebates since inception:
The City receives a quarterly rebate, which is applied to the statement, based on spend
volume. The rebate is composed of a 1.3% fixed amount (based on spend volume) and a
variable amount (based on file turn or average speed of payment).
Staff has been made aware of the council’s desire to potentially expand the purchasing
card program. Due to the increased administrative burden, potential risk involved in
having additional card holders, and the loss of the ability to search by vendor in the
Purchase Annual
Volume Rebate
6/2012-12/2012 149,983.40$ 758.10$
2013 198,231.90$ 1,646.05$
2014 224,009.73$ 3,029.89$
2015 251,344.75$ 4,442.15$
2016 190,808.59$ 4,090.25$
2017 195,103.81$ 3,634.38$
2018YTD 34,484.62$ 607.89$
1,243,966.80$ 18,208.71$
Average Rebate % 1.46%
financial software (U.S. Bank becomes the vendor), staff does not recommend expanding
the program at this time.
Attachments
City of Lino Lakes – Purchasing Card System – User Manual
State of MN WSCA Contract
Reimbursement Policy – Drafted by Councilmember Stoesz
Requested Council Direction
Staff is seeking further direction.
CITY OF LINO LAKES
PURCHASING CARD
SYSTEM
USER MANUAL
6/1/12
2
TABLE OF CONTENTS
PURCHASING CARD OVERVIEW....................................................................................3
BENEFITS...........................................................................................................................3
RESPONSIBILITIES...........................................................................................................3
SUPERVISOR......................................................................................................................4
PROCEDURES....................................................................................................................4
1. How is a Purchasing Card Obtained?...........................................................................4
2. Does the Purchasing Card need to be activated?..........................................................4
3. How are the Dollar Amounts and Activity Controls Set?.............................................5
4. For Whom can a Cardholder Make Purchases?..........................................................5
5. Commodities/Goods or Services that can be Purchased Using Purchasing Card?....5
6. Is Personal Use of the Purchasing Card Allowable?...................................................5
7. Can the Card be Shared?..............................................................................................5
8. Which Vendors May I Use?..........................................................................................5
9. What if the Vendor Does Not Accept Purchasing Cards?...........................................6
10. What are the Guidelines for Sales Tax?.....................................................................6
11. What are the Delivery Instructions?...........................................................................6
12. What About Receipts for Memberships, Dues, Subscriptions, and Conference
Registrations?.......................................................................................................6
13. How are Charges Paid?..............................................................................................6
14. What if there is an Incorrect Billing?........................................................................6
15. What if a Receipt is Lost?...........................................................................................7
16. Can Telephone Orders be Used?................................................................................7
17. What about Purchases on the Internet?....................................................................7
18. What if the Card is Lost or Stolen?............................................................................7
19. What if the Cardholder Leaves the City?...................................................................7
20. How are Purchases Returned?...................................................................................7
21. Will use Affect Personal Credit?................................................................................7
22. What Transactions are Unauthorized?......................................................................8
23. What Would Cause Loss of Privileges?.....................................................................8
3
PURCHASING CARD OVERVIEW
Welcome to the City of Lino Lakes Purchasing Card System (Purchasing Card). The
Purchasing Card is a credit card based system used to purchase items and services. Most
small purchases that now are processed using blanket vendor charge accounts, manual
check requests, or personal credit cards for City business are candidates for the Purchasing
Card.
BENEFITS
The Purchasing Card concept is to offer a means to charge purchases to the City using a
secure process with authorization and security levels pre-determined for each cardholder.
Cardholders will be able to obtain goods and services in a quick and convenient way within
the system’s controls.
The System Administrator is: The Finance Director
The Alternate Administrator: The Finance Accountant
The Program Administrator for the City of Lino Lakes is: The Finance Director
RESPONSIBILITIES
The success of the Purchasing Card System depends on both cardholders and supervisors.
The following are several key areas that are required of cardholders:
• Responsibility lies with the cardholder to be informed of all purchasing policies
and procedures and to be knowledgeable about the public purpose expenditure
definition. Cardholder should be cognizant of the annual departmental budget
and understands the limitations of the City purchasing policy.
• Sign the back of the card.
• Ensure that the Purchasing Card is used for appropriate City purchases and that
the purchase meets the public purpose requirement.
• Ensure that the Purchasing Card is kept secure and that all card transactions are
signed for by the Purchasing Card holder.
• Ensure that charges are not split to avoid the single-purchase dollar limit.
• Ensure that problems with a billing are resolved with the vendor.
• Retrieve, review and verify weekly printouts and monthly statements.
4
• Ensure that the original detailed receipts are attached to the appropriate weekly
statement.
• Sign your weekly printout, get approval, and return it, with detailed receipts
attached and a brief purpose description, to the Program Administrator by the
Tuesday of the week following the transactions.
SUPERVISOR
The following are several key areas that require supervisor support:
• Review and approve weekly statements to insure that all transactions and charges
are accurate, appropriate, and serve a public purpose. Note any account code
reclassifications or changes in account distribution.
• Ensure that the Purchasing Card is not used to make personal purchases.
• Ensure that the Purchasing Card requirements contained in this User Manual are met.
• Ensure that the Purchasing Card is used only by the Cardholder.
PROCEDURES
1. How is a Purchasing Card Obtained?
• Complete the Purchasing Card Enrollment form. See Program Administrator for
instruction.
• Provide the necessary information. Submit it to your department head for approval,
setting of control limits and transmission to the System Administrator for approval.
• Attend a scheduled training class.
• After completion of the training and signing of the Purchasing Card User Agreement,
the card will be issued.
All billing, account coding, and card changes questions/requests should be referred to the
Program Administrator.
2. Does the Purchasing Card need to be activated?
Yes, by calling 1-800-344-5696. The ID code is the last four digits of the cardholder’s
social security number.
5
3. How are the Dollar Amounts and Activity Controls Set?
When applying for a card, the Department Head and System Administrator approve the
control limits for the:
Dollar limit per transaction
Dollar limit per month
Number of transactions per day
Number of transactions per month
Authorized commodities, goods and services
4. For Whom can a Cardholder Make Purchases?
The cardholder may make City business-related purchases within their department or
division.
5. Commodities/Goods or Services that can be Purchased Using Purchasing Card?
The Purchasing Card may be used to purchase only goods or services that are for the
express use by the City of Lino Lakes. In addition, certain products or services may be
excluded when the card is programmed by the System Administrator. Purchase of alcohol
is strictly prohibited.
6. Is Personal Use of the Purchasing Card Allowable?
Use of the Purchasing Card for personal purchases is strictly prohibited. If the
Purchasing Card is inadvertently used for a personal purchase, call the Program
Administrator immediately.
7. Can the Card be Shared?
The only person entitled to use a Purchasing Card is the person whose name appears on
the face of the card. Do not lend the Purchasing Card to another person for use. Card
transactions can only be signed for by the cardholder. Use by anyone other than the
cardholder is prohibited.
8. Which Vendors May I Use?
The Purchasing Card is a VisaCard product. Any supplier or merchant who accepts Visa
can accept the Purchasing Card. There are some vendors, based on merchant category
codes, which are restricted. Please refer to the list attached for a complete listing of the
excluded merchant category codes. The Purchasing Card may be used for in -store
purchases, as well as phone, fax, Internet or mail orders.
Where economically feasible, local vendors should be used.
6
9. What if the Vendor Does Not Accept Purchasing Cards?
If a supplier or merchant does not accept the Purchasing Card, use another method of
procurement such as a purchase order, claim voucher or vendor charge account.
10. What are the Guidelines for Sales Tax?
The City is subject to Sales and Use Tax on most items. Governmental entities do not pay
local, transit and various other taxes. If there are questions regarding tax, contract the
Program Administrator.
11. What are the Delivery Instructions?
If materials are received at the City, reception staff must know how to get the package to
you. Make sure complete shipping instructions are given when placing orders. Along
with cardholder name and credit card number, confirm with the supplier or merchant that
the department name and delivery location must also appear on all shipping documents.
12. What About Receipts for Memberships, Dues, Subscriptions, and Conference
Registrations?
For purchases in which a receipt is not normally given, use a copy of the completed
application or order form as a receipt. It should clearly indicate payment was made using
the Purchasing Card. The receipt should also clearly indicate tax paid and shipping costs.
13. How are Charges Paid?
All transactions processed during a weekly cycle will be indicated on a weekly statement
of account. Actual payment will be transacted automatically through electronic bank
transfers every month.
The procedure for verifying the weekly cardholder’s printouts can be set by the
departments. The end result must include review of the weekly printout for accuracy and
public purpose, including the dollar amounts and the accounting codes, the attachment of
the original transaction receipts, a brief purpose description, the c ardholder’s signature,
and the appropriate supervisor approval. The printout must be forwarded to the Program
Administrator by the Tuesday of the week following the transactions.
14. What if there is an Incorrect Billing?
If you have a problem with a billing, try to reach an immediate resolution with the
supplier or merchant that provided the item. Your receipt will be the key document. The
supplier or merchant should issue credit for a billing correction. This credit may appear
on the next weekly statement.
If an agreement cannot be reached with the supplier or merchant, the next step is to
7
contact the Program Administrator.
15. What if a Receipt is Lost?
If a receipt is lost, a written form, describing the transaction in detail and reason for no
receipt, must be attached to the statement. This form must have the cardholder’s
signature and the appropriate supervisor signature approvals.
16. Can Telephone Orders be Charged?
Orders may be made by telephone, but be as cautious as you would be if you were giving
out your personal credit card number. Request an itemized receipt from the merchant.
17. What about Purchases on the Internet?
Using Purchasing Cards to make transactions over the Internet has risks associated wi th
it. Therefore, when making purchases on the Internet, be sure to order using a secure site.
Request an itemized receipt from the merchant.
18. What if the Card is Lost or Stolen?
Keep the Purchasing Card in a secure location. It needs to be accessible only to the
cardholder. If the Purchasing Card is lost or stolen, contact U.S. Bank immediately by
calling the 24-hour telephone number (1-800-344-5696). Immediately after reporting the
loss to U.S. Bank, you must inform the Program Administrator and your supervisor. It is
extremely important to act promptly in the event of a lost or stolen card to avoid City
liability for fraudulent transactions.
19. What if the Cardholder Leaves the City?
The cardholder must turn in the Purchasing Card to their department head, who is
responsible for canceling the card by calling the Card Program Administrator and
returning the card to the System Administrator.
20. How are Purchases Returned?
If a purchased item is to be returned, follow the supplier or merchants return procedures.
21. Will use Affect Personal Credit?
Use of the Purchasing Card will not have any impact on the cardholder’s personal credit
rating.
8
22. What Transactions are Unauthorized?
Cards may not be used for excluded categories of goods and services or purchases split to
remain under the single transaction dollar amount. The issuer provides the City with
detailed transaction reports of exceptions by cardholder. These reports list purchases that
attempted to exceed the set limits and failed the electronic authorization at the merchant’s
register. These reports also list purchases which may have been split to avoid dollar
control limits.
23. What Would Cause Loss of Privileges?
Failure to comply with the provisions of this User Manual may result in immediate
revocation of Purchasing Card privileges. The following are some examples of
violations:
• Splitting of charges to avoid the single purchase dollar limit
• Loaning the card to another employee for use
• Failure to submit charges for payment in a timely manner
• Failure to provide detailed receipts for charges
• The second time an inadvertent personal purchase occurs
• The second time the attached receipts do not match the item description or dollar
amounts listed on the monthly statement of account
Intentional misuse of the purchasing card for personal purchases is considered theft and
will be punishable up to and including termination and/or criminal prosecution.
A-d11Wt --Minnesota
MATERIALS MANAGEMENT DIVISION
::. . .. ;(. . '
WSCA-NASPO,
C00P.ERAT1Ve•PuRCHAs1t-iQ · -
~ i> ORGANiZAildN
STATE OF MINNESOTA
PARTICIPATING ADDENDUM
to the
Commercial Card Solution
Washington State Contract #00612
For Purchasing and Fleet Cards
,,,. . -; l
j· t· I'
Issued on behalf of the Western States Contracting Alliance (WSCA-NASPO)
Between
U.S. Bank National Association
and
The State of Minnesota
Page 1 of 37
State of Minnesota -US Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 7S427 Fleet Card
Contents
1. SCOPE & SERVICES ............................................................................................................. 3
2. PARTICIPATION .................................................................................................................. 3
3. PRIMARY CONTACTS .......................................................................................................... 4
4. PRODUCT OFFERING .......................................................................................................... 5
5. CREDIT CARD PROVIDER NETWORK ................................................................................... 5
6. INCORPORATION OF DOCUMENTS .................................................................................... 5
7. ORDER OF PRECEDENCE ..................................................................................................... 5
8. INCENTIVE SHARE ............................................................................................................... 6
9. CONTRACTOR'S MASTER AGREEMENT .............................................................................. 6
10. TERMS AND CONDITIONS .................................................................................................. 6
11. CONTRACT SIGNATURES .................................................................................................... 6
APPENDIX A ....................................................................................................................................... 8
1. U.S. Bank Minnesota CPV Member Addendum
2. U.S. Bank Commercial Card Master Agreement
3. U.S. Bank Fleet Card Agreement
4. U.S. Bank Product Descriptions
5. Applicable Card Fee and Rebate Information
APPENDIX B ....................................................................................................................................... 30
Minnesota General Terms, Conditions and Specifications
Page 2 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
1. SCOPE & SERVICES
1.1 Scope
This Participating Addendum ("Addendum") between the State of Minnesota ("Participating Entity") and U.S. Bank
National Association ("U.S. Bank") relates to the WSCA-NASPO Contract led by the State of Washington.
1.2 Term & Termination of Contract and Participating Addendum
The initial term of the WSCA-NASPO Contract led by the State of Washington is for 5 years (also defined as the
base period) from January 1, 2014 through December 31, 2018, with the option to extend for up to two (2) years
at the mutual agreement of the Lead State and U.S. Bank. The entire term shall not exceed seven (7) years. The
Participating Addendum may be canceled by the Participating Entity or its Commissioner of Administration at any
time, with or without cause, upon ninety (90) days written notice to U.S. Bank. In the event either party is in
default, the Participating Addendum is subject to immediate cancellation to the extent allowable by applicable law.
In the event of such a cancellation, the Participating Entity remains liable to U.S. Bank for those fees and charges
already incurred at the time of termination and U.S. Bank shall be entitled to such payment.
The effective date of this Participating Addendum shall be April 1, 2014 ("Effective Date of the Participating
Addendum").
The term of the Participating Addendum shall run from the Effective Date of the Participating Addendum through
the end of the term of the Contract unless the Participating Addendum is terminated earlier. The term of the
Participating Addendum shall not exceed the term of the Contract.
1.3 Commencement of the New Revenue Share Opportunity for each Participating Entity
The first revenue share payment pursuant to this Participating Addendum, if any is earned, shall be made within
sixty (60) days after the end of the first Agreement Quarter. The first Agreement Quarter is defined as the first full
Calendar Quarter which consists of the three (3) month calendar period beginning in January, April, July or
October following the Effective Date of the Participating Addendum.
1.4 Final Revenue Share Opportunity Pursuant to the First WSCA contract for Renewing Entities
U.S. Bank shall pay to each entity signing a Participating Addendum that is also currently participating under the
Master Services Agreement number 5-06-99-01 dated October 19, 2006 between the State of California and U.S.
Bank ("the First WSCA Contract") a final revenue share pursuant to the terms of the First WSCA Contract, if
any is earned, calculated from the beginning of the final Agreement Quarter of that entity's participation in the
First WSCA Contract to the last day of that Agreement Quarter (the "Final Revenue Share Payment"). The
Final Revenue Share Payment, if any, shall be made within sixty (60) days after the end of the final Agreement
Quarter under the First WSCA Contract.
1.5 Services
This Addendum encompasses Category 1 and 2 of the WSCA-NASPO Contract 00612. Participating Entities may
choose to use Category 1, Category 2, or both categories of the Contract.
Category 1 -Purchasing, Travel, One Cards, Declining Balance/Managed Spend Cards.
Category 2 -Fleet Cards.
The State shall indicate which products they are requesting to use on the Minnesota CPV Member Product
Offering list set out herein at Section 4.
2. PARTICIPATION
2.1 Participation Sign-up
First Step: The State of Minnesota shall complete this required Participating Addendum for requested products in
Category 1 and/or Category 2. The completed form shall be sent to the primary contact for the State of
Washington for routing and processing. Second Step: The State of Minnesota must continue to be credit
approved by the Contractor.
Page 3 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
2.2 Cooperative Purchasing Venture Members ("CPVs"):
U.S. Bank requires Cooperative Purchasing Venture Members ("CPV Members" to complete a Minnesota CPV
Member Addendum form in order to participate (Appendix A, Document 1). The form must be filled out by an
approved representative from the Political Subdivision. The form shall be submitted to the primary contact at U.S.
Bank. Category 1 and Category 2 have separate primary contacts as laid out in Section 3 of this Participating
Addendum.
2.3 Late Penalty Payments
Minn. Stat. § 16A 124 requires payment within 30 days following receipt of an undisputed Account Statement,
invoice, merchandise or service, whichever is later. Terms requesting payment in less than 30 days will be
changed to read "Net 30 days." The State is not required to pay U.S. Bank for any goods and/or services
provided without a written Account Statement, purchase order or other approved ordering document from the
State. In addition, all goods and/or services provided must meet all terms, conditions and specifications of the
Contract and the Account Statement or ordering document. Payments of an Account Statement or invoice within
the thirty days of receipt does not waive the rights of the state to dispute any item on the Account Statement.
The Contract Vendor under the Contract must be in accordance with the Contract as determined by the sole
discretion of the State's Authorized Representative and be in accordance with all applicable federal, state, and
local laws, ordinances, rules, and regulations including business registration requirements of the Office of the
Minnesota Secretary of State.
3. PRIMARY CONTACTS
The primary contact for this contract will be the authorized signatory on the Addendum for each state.
Contractor --Category 1 -P-Card, One Cards, and Declining Balance/Managed Spend Card
Name: Paul W. Erickson
Contractor: U.S. Bank
Address: 901 Marquette Avenue, EP-MN-A17S, Minneapolis, MN 55402
Telephone: 612-436-6532
Email: paulw.erickson@usbank.com
Web Address: www.usbank.com
Contractor --Category 2 -Fleet Card
Name: Mark Hess
Contractor: U.S. Bank
Address: 901 Marquette Avenue, EP-MN-A 17S, Minneapolis, MN 55402
Telephone: 832-486-6544
Email: mark.hess1@usbank.com
Web Address: www.usbank.com
Participating Entity
State: Minnesota
Participating Entity: State of Minnesota
Name: Sean Torin
Address: 50 Sherburne Ave, Room 112, St. Paul, Minnesota 55155
Telephone: 651-201-2405
Email: Sean.Torin@state.mn.us
Page 4 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
4. PRODUCT OFFERING
The State of Minnesota will designate upon implementation the card types to be utilized for each State Agency.
The State of Minnesota prohibits use of cash advances, declining balance cards or convenience checks for State
Agencies, however, the State reserves the right to add these products with the approval of the Contract
Administrator. CPV Members are to indicate which products they will utilize in the U.S. Bank Minnesota CPV
Member Addendum (Appendix A, Document 1)
Product Descriptions can be found in Appendix A, Document 4.
A. J:8J Purchase Card with Corporate Liability (Travel Accident Insurance is included with this product)
J:8J Central Billing Accounts [Central Purchase Account/Event Planner/Central Relocation)
J:8l Managed Spend ,Declining Balance functionality)
J:8J Emergency Response Cards
B. J:8J One Card with Corporate Liability (Travel Accident Insurance is included with this product)
J:8J Central Billing Accounts (Central Travel Account/Event Planner/Central Relocation)
J:8J Managed Spend ,Declining Balance functionality)
J:8l Emergency Response Cards
C. J:8l Fleet Card with Corporate Liability
D. J:8J Corporate Card (Travel Accident Insurance included)
J:8l Contingent Liability
J:8l Joint and Several Liability
5. CREDIT CARD PROVIDER NETWORK
The following credit card providers have been selected by U.S. Bank and are authorized to perform services under
this contract:
Category 1 -Visa
Category 2 -Voyager
6. INCORPORATION OF DOCUMENTS
Each of the documents listed below is, by this reference, incorporated into this Addendum as though fully set forth
herein and can be found in on the last page of this document.
1. Appendix A, Document 1: U.S. Bank Minnesota CPV Member Addendum
2. Appendix A, Document 2: U.S. Bank Commercial Card Master Agreement
3. Appendix A, Document 3: U.S. Bank Fleet Card Agreement
4. Appendix A, Document 4: U.S. Bank Product Descriptions
5. Appendix A, Document 5: Applicable Card Fee and Rebate Information
6. Appendix B: Minnesota General Terms, Conditions and Specifications
7. ORDER OF PRECEDENCE
In the event of a conflict in such terms, or between the terms and any applicable statute or rule, the inconsistency
shall be resolved by giving precedence in the following order:
1. Participating Entity's Participating Addendum ("PA");
2. Minnesota General Terms, Conditions and Specifications
3. WSCA-NASPO Contract 00612 Contract Terms and Conditions
4. U.S. Bank Commercial Card Master Agreement and/or Fleet Card Agreement
5. Software License Agreements/Click Agreements (Terms of Use)
6. Approved portions of Contractor's response dated January 24, 2013 to the Solicitation.
Page 5 of 37
State of Minnesota -U.S. Bank Commerclal Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
8. INCENTIVE SHARE
8.1 Incentive Share Schedule
Contract Incentive Shares will be paid quarterly within 60 days following the last day of each Calendar Quarter:
Quarter 1: January 1-March 31st
Quarter 2: April 1-June 301h
Quarter 3: July 1-September 30 1
h
Quarter 4: October 1-December 31"
8.2 Incentive Share Calculation and Disbursement
Contract Incentive Share payments will be sent directly to the appointed account for each Participating Entity by
U.S. Bank.
A Participating Entity that does not earn a minimum of $75.00 for combined incentive share components 1-3 per
quarter will forfeit its incentive share for that quarter.
The amount of the Incentive Share will be determined by combining Volume Sales for the State in question,
Prompt Payment/Speed of Pay, Large Ticket Sales, and Annual Sales Volume Incentive.
Incentive Share (Rebate) Formulas can be found in Appendix A, Document 5, Applicable Card Fee and Rebate
Information.
The Incentive Share schedule and disbursement terms may be changed by mutual agreement via a fully
executed amendment to the contract.
9. CONTRACTOR'S MASTER AGREEMENT
The signatories to this Addendum agree they will adhere to the guidelines outlined by U.S. Bank in its Commercial
Card Master Agreement.
10. TERMS AND CONDITIONS
Contractor and participants will adhere to the above-referenced WSCA-NASPO Contract 00612 Terms and
Conditions unless otherwise specified in the Participating Entity's specific Participating Addendum. See Appendix B
for Minnesota Specific Terms and Conditions which are hereby expressly incorporated by reference.
11. CONTRACT SIGNATURES
This Addendum and the Contract set forth the entire agreement, and all the conditions, understandings, promises,
warranties and representations among the parties with respect to this Addendum and the Contract and supersedes
any prior communications, representations, agreements whether oral, or written, with respect to the subject matter
hereof.
Terms and conditions inconsistent with, contrary or in addition to the terms and conditions of this Addendum and the
Contract, that are included in any purchase order or otherwise shall be void. The terms and conditions of this
Addendum and the Contract shall govern in the case of any such inconsistent, contrary, or additional terms.
Contracts can be found on the WSCA-NASPO site at the following address:
http://www. a bo utwsca .o rg/ contract.cf m/ contra ct/13wn-2006
IN VIEW OF THE ABOVE, the parties listed below agree to execute this Addendum by their signatures, on the dates
below.
Page 6 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Dated th is d.Zptjay of ffJtl.,@2014
U.S. BANK NATIONAL ASSOCIATION
The Contractor certifies that the appropriate person(s)
have executed this Amendment on behalf of the
Contractor as required by applicable articles, bylaws,
resoluti~, dinanc .
By:~
Kelly M. pers
Title: Vice President
Date: fYlaxh Ji c){J/1
-" c:: ,,-. h /Y) 1.
Dated thi s'~ day of O/!J_\.2014
MATERIALS MANAGEMENT DIVISION
In accordance w ith Minn. Stat. § 16C.03, su bd . 3.
Title : Acqu isition Management Spe cialist
Date: ... ~ /_:J. ,~s j I 1/
COMMISSIONER OF ADMINISTRATION
Or delegated repre sentative.
By :~:2~~
Date: 3/2.s-/zo/j"
Please email PDF copy of this fully executed document to PA @wsca-naspo.org to pro vide documentation of participation.
Pa ge 7 of 37
State of Minnesota-U.S. Bank Commercial Card Solutions-Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix A, Document 1-Minnesota CPV Member Addendum
MINNESOTA CPV MEMBER ADDENDUM For use only by CPVs of the State of Minnesota
This Minnesota CPV Member Addendum constitutes an addendum to and modification of the Participating Addendum dated
("Participating Addendum") which was entered into by and between U.S. Bank National Association ("U.S. Bank") and the government entity
of Minnesota ("Entity") and which constitutes an addendum to the WSCA-NASPO Contract dated January 1, 2014 between U.S. Bank and the
State of Washington. This Minnesota CPV Member Addendum is entered into by and between U.S. Bank and the Minnesota CPV Member
identified herein. This Minnesota CPV Member Addendum shall become effective upon signing by or on th'e behalf of both parties ("Effective
Date") and supersedes any previous and like contracts or addenda with the Political Subdivision.
RECITALS
A. Entity has entered into the Participating Addendum for the purpose of making available a Purchase Card, One Card, Fleet Card or Corporate
Card Program as described in the Participating Addendum for use by CPV Members located in the State of Minnesota:
B. Entity is willing to permit Minnesota CPV Member to participate in the Card Program provided that Minnesota CPV Member assumes all
responsibility and liability for Minnesota CPV Member's performance of the terms and conditions of the Participating Addendum as if
Minnesota CPV Member was the entity signing the Participating Addendum as the government Entity. Entity shall not bear liability or
responsibility for Minnesota CPV Member under the Participating Addendum or this Minnesota CPV Member Addendum; and
C. Minnesota CPV Member has received a copy of the Participating Addendum from the Entity, and after a thorough review of the
Participating Addendum, desires to participate as a Minnesota CPV Member under the Participating Addendum. Minnesota CPV Member
assumes all responsibility and liability for Minnesota CPV Member's performance of the terms and conditions of this Minnesota CPV
Member Addendum, as well as the Participating Addendum, as if Minnesota CPV Member was the entity signing the Participating
Addendum as the Entity, but Minnesota CPV Member shall not be liable for the acts and omissions of Entity under the Participating
Addendum or this Minnesota CPV Member Addendum.
ADDENDUM
Now therefore, in consideration of the foregoing Recitals, which are incorporated herein by reference, the mutual premises and covenants set
forth in the Addendum, which are incorporated herein by reference, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, all parties agree as follows:
1. Definitions. Capitalized terms used in this Minnesota CPV Member Addendum and not otherwise defined ln this Minnesota CPV Member
Addendum are used with the same respective meanings attributed thereto in the Participating Addendum.
2. Minnesota CPV Member Responsibility. Minnesota CPV Member agrees to accept and perform all duties, responsibilities and obligations
required of the Entity as set forth in the Participating Addendum. Cards shall be issued to designated employees of Minnesota CPV
Member upon execution of this Minnesota CPV Member Addendum by Minnesota CPV Member and U.S. Bank.
3. Financial Information. In order to determine credit qualifications for Political Subdivision, Minnesota CPV Member shall provide U.S. Bank
with the last three (3) years of audited financial statements with this signed Minnesota CPV Member Addendum. Minnesota CPV Member
shall provide to U.S. Bank annual financial statements thereafter. U.S. Bank wlll review the financial statements and notify Minnesota CPV
Member of the approval or decline of its credit qualification. If such financial statements can be independently obtained by U.S. Bank,
Minnesota CPV Member will not be required to provide such financial statements.
4. Payment. Minnesota CPV Member shall make payment to U.S. Bank for all Debt incurred by Minnesota CPV Member, its Cardholders
and Accountholders as provided In the Minnesota CPV Member Addendum. "Debt" means all amounts charged to a card and/or account
including without limitation all amounts related to purchases, fees and other Charges that are owed to U.S. Bank by Minnesota CPV
Member, its Cardholders and Accountholders.
5. Authority. The representations, warranties and recitals of Minnesota CPV Member set forth in this Minnesota CPV Member Addendum
and the Participating Addendum constitute valid, binding and enforceable Addenda of Political Subdivision. All extensions of credit made
to Minnesota CPV Member pursuant to this Minnesota CPV Member Addendum and the Participating Addendum will be valid and
enforceable obligations of Minnesota CPV Member and Minnesota CPV Member shall pay to U.S. Bank all Debts incurred by Minnesota
CPV Member in accordance with the terms of the Participating Addendum and this Minnesota CPV Member Addendum. The execution of
this Minnesota CPV Member Addendum and the performance of the obligations hereunder and under the Participating Addendum are
within the power of Minnesota CPV Member, have been authorized by all necessary action and do not constitute a breach of any contract
to which Minnesota CPV Member is a party or is bound.
6. Purpose of Card Use. Minnesota CPV Member declares that cards shall be used for official Minnesota CPV Member purchases only, and
shall not be used for individual, consumer purchases or to incur consumer debt. Minnesota CPV Member warrants that it possesses the
financial capacity to perform all of its obligations under the Participating Addendum and this Minnesota CPV Member Addendum.
7. Governing Law. Except as provided to the contrary herein, the law of the state of MN and applicable federal laws and regulations shall
apply to all services provided by U.S. Bank under this Participating Addendum.
Page 8 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix A, Document 1-Minnesota CPV Member Addendum
8. Card Products and Card Product Enhancements: U.S. Bank may provide the following Card Products to Minnesota CPV Member and Its
Cardholders. Minnesota CPV Member shall mark here the products requested.
A. D Purchase Card with Corporate Liability (Travel Accident Insurance is included with this product)
D Central Billing Accounts [Central Travel AccounUEvent Planner/Central Relocation)
D Managed Spend (Declining Balance functionality)
D Emergency Response Cards
B. D One Card with Corporate Liability /Travel Accident Insurance is included with this product)
D Central Billing Accounts (Central Travel AccounUEvent Planner/Central Relocation)
D Managed Spend (Declining Balance functionality)
D Emergency Response Cards
C. D Fleet Card with Corporate Liability
D. 0 Corporate Card (Travel Accident Insurance included)
D Contingent Liability
D Joint and Several Liability
9. The notice address for Minnesota CPV Member is:
Attn:
10. Authorization. Minnesota CPV Member certifies to U.S. Bank that the person executing this Minnesota CPV Member Addendum is
authorized by Minnesota CPV Member In accord with its organization rules and applicable law to bind Minnesota CPV Member to the
Terms and Conditions of this Minnesota CPV Member Addendum, including the authority to incur Debt in the name of Minnesota CPV
Member,
11. Execution. By signing below, the individual(s) signing this Minnesota CPV Member Addendum in his or her capacity as an authorized
signing officer of Minnesota CPV Member and not in his or her personal capacity, certifies and warrants that (1) all action required by
Minnesota CPV Member's organizational documents to authorize the signer(s} to act on behalf of Minnesota CPV Member in all actions
taken under this Minnesota CPV Member Addendum, including but not limited to, the authority to incur Debt on behalf of Minnesota CPV
Member, has been taken, (2) each signer is empowered in the name of and on behalf of Minnesota CPV Member to enter into all
transactions contemplated in this Minnesota CPV Member Addendum and (3) the signatures appearing on all supporting documents of
authority, if any, are authentic.
12. Reliance. Minnesota CPV Member has read, understands and agrees to all terms and conditions in this Minnesota CPV Member
Addendum, and U.S. Bank is entitled to act in reliance upon the authorizations and certifications set forth in this Minnesota CPV Member
Addendum.
IN WITNESS WHEREOF, the parties have, by their authorized representatives, executed this Minnesota CPV Member Addendum.
Dated this __ day ot ____ ~ 20_
By Minnesota CPV Member:
(Minnesota CPV Member Name)
(Signature of Authorized Signer)
(Printed Name of Authorized Signer)
(Printed Title of Authorized Signer)
Approved as to form:
(Signature of Attorney for Minnesota CPV Member)
(Printed Name of Attorney)
Dated this __ day of ____ ~ 20_
By U.S. Bank:
U.S. Bank National Association
(Signature of Authorized Signer)
Kelly M. Caspers
(Printed Name of Authorized Signer)
Vice President
(Printed Title of Authorized Signer)
Page 9 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix A, Document 1 -Minnesota CPV Member Addendum
Before completing the Certificate of Authority, please read:
• If the document being signed was "approved as to form" by an attorney, it is not necessary to complete the attached
Certificate of Authority (C of A).
• If the document was not "approved as to form" by an attorney, please complete the attached C of A (page 2).
• Be sure to dale all documents upon signing. Undated documents cannot be accepted and will be returned for
dating.
SIGNING INSTRUCTIONS FOR
CERTIFICATE OF AUTHORITY
Note that three (3) different individuals must sign and date the C of A. ff the Entity does not have three individuals who
are authon'zed to sign on behalf of the Government Entity, please refer to page 3.
SECTION 1 Organizational Information-Enter the legal Entity name and the tax ID number on the C of A. Note:
The legal name of the Entity name is required. The legal name is usually the name on the Government
Entity's financial statements.
SECTION 2 Authorized Persons -The individual who signed the Card Addendum/Amendment must complete and
sign Section 2.
SECTION 3 Execution Requirement -Check only™ box in Section 3 to Indicate how.many individuals (either 1 or
2) that the Entity requires to sign legal documents on behalf of the Government Entity.
SECTION 4 Execution -No action required.
SECTION 5 Certification -Two (2) individuals must sign and date Section 5 as well as insert their names and titles.
Note: The individual(s) who signed Section 2 cannot sign in Section 5 or this document is invalid.
• An officer of the Entity ("Officer One") is required to sign the top area of Section 5 attesting to the signatures In
Section 2.
• One other officer of the Entity ("Officer Two") must sign the bottom area of Section 5 affes/ing to the signature of
Officer One.
Please see examples below:
5, Certification. I certify that I am the __ and I am acting in my official capacity as an authorized officer who has
been given the authority by the Entity to certify that the Authorized Person(s) has/have the full power and authority under
applicable law and the governance rules relating to the Entity to execute and deliver to U.S. Bank, on behalf of the
Government Entity, and to bind the Entity under, the Documents for the purpose of establishing and extending the
Services. I also certify that the name(s) and title(s) of the Authorized Person(s) set forth above are correct and that the
signature appearing beside each name is a true and genuine specimen of his/her signature.
fi Printed Name of the __ of the Entityfi (Cannot be an Authorized Person listed in Section 2)
fi Signature of the __ of the Entltyfi Date
I certify that I am an officer of the Government Entity, and as such, I certify that the above-named __ is acting in such
capacity on behalf of the Government Entity, the signature below is my genuine signature and the signature above is the
genuine signature of such __ .
fl Printed Name & Title of Individual Signing Below & (Cannot be an Authorized Person listed in Section 2)
fi Signature* Attested by One (1) Other Individual of the Government Entity Date
Page 10 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions-Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix A, Document 1-Minnesota CPV Member Addendum
CERTIFICATE OF AUTHORITY
1. Organizational Information. This Certificate of Authority has been completed on behalf of the following Entity (the
11 Government Entity"):
Entity Legal Name:
Federal Tax Identification
Number:
12. Authorized Persons. In accordance with the governance rules relating to the Government Entity, the following
individuals (the "Authorized Person(s)") are authorized, on behalf of the Government Entity, to execute and deliver to
U.S. Bank National Association ND ("U.S. Bank") and/or its affiliates the applicable Addendum(s), any applicable
addenda and/or amendments thereto and any other documents or writings required by U.S. Bank (collectively, the
"Documents") for the purpose of establishing one (1) or more card programs, extending credit and providing related
services to the Entity with U.S. Bank in the United Slates (collectively, the "Services"):
I ••m•
3. Execution Requirements. The governance rules relating to the Entity require the following number of Authorized
Persons to sign the Documents for the Services (choose only™ box):
D One (1) Authorized Person
D Two (2) Authorized Persons
4. Execution. By signing the Documents, each Individual signing in his or her capacity as an authorized signing officer
of the Entity and not in his or her personal capacity, certifies and warrants that (a) all action required by Government
Entity's organizational documents to authorize the signer(s) lo act on behalf of the Entity in all actions taken under
the Documents, including but not limited to, the authority to incur debt on behalf of the Government Entity, has been
taken, (b) each signer is empowered in the name of and on behalf of the Entity to enter into all transactions and
Services contemplated in the Documents, and (c) the signatures appearing on all supporting documents of authority
are authentic.
5. Certification. I certify that I am the __ and I am acting in my official capacity as an authorized officer who has
been given the authority by the Entity lo certify that the Authorized Person(s) has/have the full power and authority
under applicable law and the governance rules relating to the Entity to execute and deliver to U.S. Bank, on behalf of
the Government Entity, and to bind the Entity under, the Documents for the purpose of establishing and extending
the Services. I also certify that the name(s) and lille(s) of the Authorized Person(s) set forth above are correct and
that the signature appearing beside each name is a true and genuine specimen of his/her signature.
fl Printed Name of the __ of the Entityfl (Cannot be an Authorized Person listed In Section 2)
fi Signature of the of the Entityft Date
I certify that I am an officer of the Government Entity, and as such, I certify that the above-named __ is acting in
such capacity on behalf of the Government Entity, the signature below is my genuine signature and the signature
above is the genuine signature of such __ .
fl Printed Name & Title of Individual Signing Below ff (Cannot be an Authorized Person listed in Section 2)
fl Signature fl Attested by One (1) Other Individual of the Entity Date
Page 11 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
EXAMPLE 1:
Appendix A, Document 1-Minnesota CPV Member Addendum
EXAMPLES TO SIGNING INSTRUCTIONS
FOR
CERTIFICATE OF AUTHORITY (C OF A)
1. One (1) person is required to sign legal documents, and
2. Entity has more than two 12) authorized signatories who can attest to signatures of other signatories.
Addendum:
C of A Section 2:
C of A Section 3:
C of A Section 4 (part 1 ):
C of A Section 4 (part 2):
EXAMPLE 2:
Person A signs.
Person A completes and signs.
First box is checked.
Person B (preferably the Secretary) signs attesting to the signature of Person A.
Person C signs attesting to Person B's authority and signature.
1. Two (2) people are required to sign legal documents, and
2. Entity has more than two 12) authorized signatories who can attest to signatures of other signatories.
Addendum:·
C of A Section 2:
C of A Section 3:
C of A Section 4 (part 1 ):
C of A Section 4 (part 2):
EXAMPLE 3:
Persons A and B sign.
Persons A and B complete and sign.
Second box is checked.
Person C (preferably the Secretary) signs attesting to the signatures of Persons A and B.
Person D signs attesting to Person C's authority and signature.
1. One (1) person is required to sign legal documents, and
2. Entity has only one (1) other authorized signatory who can attest to signatures of other signatories.
Addendum:
C of A Section 2:
C of A Section 3:
C of A Section 4 (part 1):
C of A Section 4 (part 2):
EXAMPLE 4:
Person A signs.
Person A completes and signs.
First box is checked.
Person B (preferably the Secretary) signs attesting to the signature of Person A.
NOTE: If the Secretary can sign the C of A, than they cannot be Person A; they must be Person
B.
Person A signs attesting to Person B's authority and signature.
1. Two (2) people are required to sign legal documents, and
2. Entity has only one 11) other authorized signatory who can attest to signatures of other signatories.
Addendum:
C of A Section 2:
C of A Section 3:
C of A Section 4 (part 1 ):
C of A Section 4 (part 2):
Persons A and B sign.
Persons A and B complete and sign.
Second box is checked.
Either Person A or B (preferably the Secretary) signs attesting to the signature of Persons A and
8.
NOTE: If the Secretary can sign the C of A, than they must sign in Section 4 (part 1) and the other
person must sign in Section 4 (part 2).
The Person who did not sign Section 4 (part 1) signs attesting to the signing authority and
signature of the person who did sign in Section 4 (part 1), subject to the note above.
Page 12 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix A, Document 2 -U.S. Bank Commercial Card Master Agreement
U.S. BANK COMMERCIAL CARD MASTER AGREEMENT
This Commercial Card Master Agreement (the "Agreement") governs the U.S. Bank Commercial Card Program provided by the
WSCA-NASPO Cooperative Purchasing Program Commercial Card Solutions Contract #00612, Category 1 (the "Commercial
Card Program") and is an attachment to the Participating Addendum entered into by and between U.S. Bank National Association
("U.S. Bank") and the Government Entity which is a signatory to that Participating Addendum ("Government Entity").
Participation In Commercial Card Program:
Certain entitles designated by Government Entity may participale in the Commercial Card Program.
"Government Entity Agencies" means those Government Entity departments and agencies that rely upon the Government Entity
for funding, or are appropriated funds by the Government Entity for the charges on the accounts issued to the employees of those
departments and agencies. In order for Government Entity Agencies to participate in the Commercial Card Program, the
Government Entity will furnish to U.S. Bank a Government Entity Agency Addendum listing those agencies allowed to participate.
The Government Entity has the right to exclude any agencies from the Agreement by providing written notice to U.S. Bank at any
time.
" Minnesota CPV Members" means any municlpalilies, counties, and institutions of higher education located In the state of
Minnesota that do not rely upon the Government Entity for funding. Political Subdivisions may participate in this Agreement upon
credit approval by U.S. Bank and upon the signing and submission of a properly completed Minnesota CPV Member Addendum.
I. CREDIT PROVISIONS
A. Financial Information. The eslablishment of a Commercial Card Program provides an extension of credit, and
Government Entity shall provide sufficient information lo enable U.S. Bank to perform periodic credit reviews.
1. Polllical Subdivisions. Each Minnesota CPV Member must individually credit qualify and submit a signed, properly
completed Minnesota CPV Member Addendum to U.S. Bank.
2. Financial Information for Government Entity and Political Subdivisions. To become credit qualified, the
Government Entity and each Minnesota CPV Member will provide the last three (3) years of audited financial
statements to U.S. Bank prior to the issuance of any cards and will provide annual financial statements on or before
one hundred eighty (180) days after the end of the Government Entity or Minnesota CPV Member's fiscal year.
Minnesota CPV Member should provide this first set of financial statements with their signed, completed Minnesota
CPV Member Addendum. U.S. Bank will review the financial statements and provide notice to each Minnesota CPV
Member of the approval or decline of their credit qualification. If satisfactory financial information can be found on the
website of Government Entity or Minnesota CPV Member, U.S. Bank will not require the Governmenl Entity or such
Minnesota CPV Member lo provide financial information that U.S. Bank can obtain on its own.
B. Aggregate Product Credit Limit and Account Credit Limits. Subject to credit approval by U.S. Bank, an Account Credit
Limit (an "ACL") for each Account and an Aggregate Product Credit Limit (the "PCL") for all Accounts shall be established
by U.S. Bank pursuant to this Agreement.
1. Revising the PCL. U.S. Bank, at its sole discretion, shall have the right to revise lhe PCL. U.S. Bank shall provide
notice to Government Entity of any decrease in lhe PCL which results in a revised PCL lhat is lower than the
aggregate current amount outstanding on all Accounts. Upon such event, Government Entity shall have ten (10) days
to make a payment to U.S. Bank that is sufficienl to reduce the aggregate current amount outstanding to an amount
that is equal to or less than the revised PCL.
2. Revising ACLs. U.S. Bank, at its sole discretion, shall have the right to revise any ACL.
a. Government Entity Accounts. U.S. Bank shall provide notice to Government Entity of any decrease in an ACL
which resulls in a revised ACL that is lower lhan the aggregate currenl amounl outstanding on the Account. Upon
such event, Government Entity shall have ten (10) days lo make a payment to U.S. Bank on the Account lhat is
sufficient to reduce the aggregate current amount outstanding for such Account to an amount that is equal to or
less than the revised ACL.
b. Cardholder Accounts. U.S. Bank, at its sole discretion, shall have the right to revise any ACL and/or limit
spending activity on any Cardholder Account. Based on the credit worthiness of Government Entity and/or its
Cardholder, U.S. Bank, at its sole discretion, shall establish an ACL of no less than five hundred U.S. Dollars
($500,00).
c. Fraudulent Activity. U.S. Bank may temporarily revise any ACL and/or limit spending activity on any Account for
which fraudulent activity Is suspected.
C. ATM Access/ Cash Advances. U.S. Bank provides access to Cash Advances through owned and participating bank
Automated Teller Machines and Association member offices. If Government Entity elects to use Cash Advances, U.S.
Bank will establish predetermined Cash Advance limits for Cardholders, either as a group or individually. U.S. Bank
reserves the right to suspend or terminate Cash Advance access for Cardholders, either as a group or individually, in the
event U.S. Bank determines that continued access presents a risk of loss or liability to U.S. Bank or Government Entity.
Page 13 of37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix A, Document 2-U.S. Bank Commercial Card Master Agreement
D. Convenience Checks. U.S. Bank can Issue Convenience Checks to Cardholders designated by Government Entity,
Replenishment of Convenience Checks will occur upon request by the Cardholder, subject lo the Cardholder's Account
status and cash availability. Convenience Check transactions are posted to the Cardholder Statement as a Cash
Advance. U.S. Bank reserves the right to suspend or terminate Convenience Check access for Cardholders, either as a
group or Individually, in the event U.S. Bank determines that continued access presents a risk of loss or liability to U.S.
Bank or Government Entity. There are a number of limitations associated with Convenience Checks:
1. Authorization. There is no authorization process associated with the use of Convenience Checks. At the time of
Purchase, U.S. Bank is unable to verify the authenticity of the signature on a Convenience Check, the identity of
the person signing the Convenience Check, or restrict the use of Convenience Checks to specific Merchant types.
2. Disputes. Use of Convenience Checks and disputes arising therefrom are not covered by Association
regulations. Other than the fraudulent use of a Convenience Check by an individual other than the Cardholder,
which is governed by the applicable law pertaining to negotiable instruments, there are no dispute rights once a
Convenience Check is used to make a Purchase.
3. Returned Checks. U.S. Bank reserves the right to return a Convenience Check unpaid to the payee if (i) the
amount of the Convenience Check exceeds the Cardholder's Cash Advance limit or (ii) U.S. Bank determines that
honoring the check presents a risk of loss or liability to U.S. Bank or Government Entity.
4. Limitation of Liability. U.S. Bank is not liable for any damages resulting from U.S. Bank's refusal to honor a
Convenience Check presented for payment.
II. U.S. COMMERCIAL CARD PROGRAMS
A. Card Products. U.S. Bank may provide the following Card Products to Government Entity and its Cardholders. Card
Product availability and Card Products for which Government Entity has been approved are specified in the Participating
Addendum.
1. U.S. Bank Corporate Card. The U.S. Bank Corporate Card is a charge card designed for use by Cardholders to
charge travel, entertainment and other goods and services that are related to the business activities of Government
Entity. U.S. Bank also provides central travel accounts, which can be used for the same purpose, but without the
issuance of a physical card.
2. U.S. Bank Managed Spend Card. The U.S. Managed Spend Card is a specialized corporate liability card designed
for use by Government Entities or Cardholders to charge business related goods and services. Government Entity
may also elect to have Cards issued lo family members relocating employees. Unless requested for a different
duration, Managed Spend has a term of twelve (12) to thirty-six (36) months. U.S. Bank also provides Managed
Spend Central Billing Accounts, which can also be used for business or relocation expenses. Based on the credit
worthiness of the Government Entity and its Cardholder, U.S. Bank, at its sole discretion, shall establish a credit limit
of no less than five hundred U.S. Dollars ($500.00).
3. U.S. Bank One Card. The U.S. Bank One Card is a charge card designed for use by Cardholders that combines
Corporate and Purchase Card capabilities on a single Account. The One Card can be utilized for travel and
entertainment related expenses as well as to charge goods and services related to the business activities of
Government Entity.
4. U.S. Bank Purchase Card. The U.S. Bank Purchase Card is a charge card designed for use by Cardholders to
charge goods and services related to the business activities of Government Entity. U.S. Bank also provides central
purchase accounts, which can be used for the same purpose, but without the issuance of a physical card.
B. Card and Account Issuance. Government Entity shall designate to U.S. Bank Cardholders that are authorized to incur
expenses on behalf of Government Entity during the term of this Agreement and who are to receive Cards and/or be
issued Account numbers by submitting to U.S. Bank completed, duly authorized applications, In a format specified by U.S.
Bank, such as through Access Online, including any applicable consents and/or authorizations from such Cardholders as
may be required by the applicable local law, rule or regulation.
1. Credit Checks. With respect to any such application, U.S. Bank reserves the right, at its sole cost and expense and
to the extent permitted by applicable law, to conduct a credit check on any Cardholder who may have sole and/or
shared liability for any Debt incurred under this Agreement.
2. Exclusion. U.S. Bank shall have the right to reject any Cardholder application in which the Cardholder may have sole
and/or shared liability for any Debt incurred under this Agreement.
3. Card Delivery. Unless Government Entity notifies U.S. Bank to the contrary, U.S. Bank shall issue Cards and/or
Accounts directly to Cardholders.
4. Creation of Cards by Government Entity. Government Entity has the ability lo create Cards on its own through the
use of Access Online. Such Cards can be created with or without an Individual's name embossed on the face of the
Cards. Acceptance of Cards without a name embossed on the face of the Cards is at the discretion of Merchants.
C. BIiiing and Payment. U.S. Bank provides a variety of billing options. The availability of billing options may differ between
Card Products. Billing option availability and the billing options for which Government Entity has been approved is
specified herein in the Participating Addendum. Government Entity or Cardholder shall pay the amount due on the
Statement by the Due Dale.
1. Individual BIii. Cardholders receive a Statement at the conclusion of each Billing Cycle and are responsible for
ensuring the balance due is paid by the Due Date. Government Entity may elect to receive one or more Summary
Statements or reports showing all Transactions billed lo Cardholder Accounts.
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Appendix A, Document 2 -U.S. Bank Commercial Card Master Agreement
2. Central Bill. Each Transaction is either posted to a Cardholder Account and rolled up to a Central Account for billing
or billed directly to a Central Account. Government Entity will receive one or more central account Statements at the
conclusion of each Billing Cycle for all Cardholder and/or Central Account Transactions. With respect to Transactions
posted to a Cardholder Account and rolled up to a Central Account, the Cardholder receives a memo Statement
showing his/her respective Transactions but with no amounl due. Government Entity receives a consolidated
Statement, which includes the total amount due for all Cardholder Accounts and Central Accounts and is responsible
for ensuring the balance due on the Statement is paid by the Due Date.
3. Billing Disputes. Billing disputes must be communicated in writing to U.S. Bank at the address specified in Section
V.L. herein or the address provided on the Statement. U.S. Bank must receive written communication of a dispute
within sixty (60) days of the date on the Statement on which the disputed or allegedly Incorrect Transaction first
appeared. Association regulations govern the resolution of all billing disputes.
4. Merchant Category Dlsclalmer. Upon request by Government Entity, U.S. Bank may either prevent or restrict usage
of its Card Products to selected Merchants based on Merchant Category Code. To the extent this is requested, the
following disclaimers apply:
a. Limitation of Liability. U.S. Bank can only enforce Merchant Category Code restrictions to the extent it receives
accurate Merchant Category Code data with the Transaction authorization request. U.S. Bank has no liability for
Transactions declined or approved contrary to the intent of Government Entity.
b. Incorrect Merchant Category Codes. To the extent Government Entity believes a Merchant has not been
assigned an accurate Merchant Category Code, U.S. Bank will advise the Association of the inaccuracy. Whether
or not the Merchant Category Code is changed Is dependent upon applicable Association regulations.
5. Trailing Transactions. Upon cancellation of an Account, the Government Entity and/or Cardholder must cancel the
billing of all reoccurring Transactions to the Account.
D. Liability. U.S. Bank provides a variety of liability options. The availability of liabllily options may differ between Card
Products. Liability option availability and the liability option(s) for which Government Entity has been approved is/are
specified in the Participating Addendum.
1. Corporate Liability. Government Entity is solely liable to U.S. Bank for all billed Transactions.
2. Joint and Several Liability. Government Entity and the Cardholder are jointly and severally liable to U.S. Bank for all
billed Transactions.
3. Contingent Liability. Cardholder is liable to U.S. Bank for all billed Transactions. Governmenl Entity has contingent
liability, which means Government Entity is liable for any billed Transactions that are legitimate business charges and
have not been previously reimbursed by Government Entity to the Cardholder.
4. Liability Exceptions. Government Entity may be liable for all billed Transactions, regardless of liability option
specified in the Participating Addendum, in the following circumstances:
a. Failure to Notify; Liability Exceptions. Government Entity shall immediately notify U.S. Bank of any of the
following:
(i) Termination of employment of any Cardholder;
(II) Any lost or stolen Card for which the Government Entily has liability;
(iii) Any compromised Account for which the Government Entity has liability; or
(Iv) Any compromised information regarding Cards, Accounts or other sensitive data including, but not limited to,
Account numbers, personal identification numbers, passwords, or Cardholder information.
Government Entity shall provide sufficient information as may be requested by U.S. Bank for U.S. Bank to act on
such notifications. Failure of Government Entity to provide notification may result in Government Entity's or
Cardholder's liability to pay for all Transactions on such Cards and/or Accounts notwithstanding any liability option
specified in the Participating Addendum. Liability is limited to period of time from when notification should have
been received to when notification is actually received and only for those Transactions that U.S. Bank cannot
either charge back to the Merchant or collect directly from the Cardholder. In any event, regardless of the liability
option chosen, Cardholders liability will not exceed fifty U.S. Dollars ($50.00).
E. Delinquency. if the amount shown on the Statement as the current amount due has not been paid to U.S. Bank by
Government Entity and/or Cardholder by the Due Date, U.S. Bank shall have the following rights:
1. Suspension. U.S. Bank shall have the right to suspend any Account that is delinquent for a period exceeding two (2)
Billing Cycles.
2. Cancellation. U.S. Bank shall have the right to cancel any Account that is delinquent for a period exceeding three (3)
Billing Cycles.
3. Late Fees. U.S. Bank shall have the right to bill Late Fees on all delinquent Accounts, as specified in the Participating
Addendum.
4. Collection Fees. U.S. Bank shall have the right to recover any reasonable legal fees and/or other expenses incurred
in collecting any delinquent amount on a cancelled Account.
Ill. SECURITY AND CONFIDENTIALITY
A. Security. U.S. Bank and the Government Entity shall safeguard information regarding Cards, Account numbers,
passwords, personal identification numbers, and other sensitive information provided by U.S. Bank in a manner that is no
less stringent than those applicable to each Party's own proprietary information. Each Party will utilize each Party's
Page 15 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix A, Document 2 -U.S. Bank Commercial Card Master Agreement
respective industry standards to maintain an appropriate information security program to prevent the unauthorized
disclosure, misuse, alteration, or destruction of Confidential Information.
B. Confidentiality. The Parties agree to the following provisions regarding the use and disclosure of Confidential
Information:
1. Confidential lnfonnalion. For purposes of this Agreement, "Confidential lnfonnation" means information supplied by
one Party ("Disclosing Party") to the other Party ("Recipient'') that is expressly or implicitly protected from unrestricted
use by persons not associated with Disclosing Party.
a. U.S. Bank Confidential lnfonnation. U.S. Bank and Government Entity agree that the Commercial Card Program
and/or Global Commercial Card Program is a unique service involving the exchange of proprietary and/or
Confidential Information between the Parties. Government Entity agrees that Commercial Card Program and/or
Global Commercial Card Program reports, manuals, documentation, and related materials shall be circulated by it
only to the extent necessary for Government Entity to manage the Commercial Card Program or Global
Commercial Card Program and/or use such information in connection with Government Entity's business.
b. Government Entity Confidential Information. U.S. Bank and Government Entity agree that any non-public
financial information of Government Entity and any non-public data regarding Government Entity Accounts,
Transactions, charges, spending volume or repayment terms is Confidential Information of Government Entity and
such information shall be circulated by U.S. Bank only to the extent necessary for U.S. Bank to offer the
Commercial Card Program and/or Global Commercial Card Program.
2. Restriction. Government Entity and U.S. Bank agree to take all reasonable steps to safeguard the other Party's
proprietary and Confidential Information and not to release such Information lo any person or Party not essential to
participation in the Commercial Card Program and/or Global Commercial Card Program.
3. Care. The Recipient shall provide the same care to avoid an unauthorized disclosure, misuse, alteration or
destruction of Confidential Information of the Disclosing Party as it provides to protect its own similar proprietary
information, but in no event, less than a reasonable standard of care,
4. Relief. Because damages may be difficult to ascertain, the Parties agree that in the event of any violation of Section
111.B., without limiting any other rights and remedies of each other, an injunction may be sought against the Party who
has breached or threatened to breach the aforementioned Section.
5. Exceptions. With respect to Confidential Information, U.S. Bank and Government Entity agree that the other may use
and disclose such information for the following purposes:
a. Normal Business Operations. U.S. Bank and Government Entity may use and disclose such Confidential
Information of the other as is required by normal business operations in connection with the Commercial Card
Programs and as may be required by Association Operating Regulations.
b. Legal and Regulatory Requirements. U.S. Bank and Government Entity may use and disclose Confidential
Information of the other to legal authorities, agents, auditors or regulators of U.S. Bank and Government Entity,
respectively, or as otherwise may be required by law, rule or regulation.
c. Summarized Data. U.S. Bank and Government Entity may use and disclose Data to any third party to the extent
that such Data is aggregated, summarized, or otherwise presented in a manner that does not directly or indirectly
identify such Data as attributable to U.S. Bank, Government Entity, and/or Cardholders.
d. Archived Data. U.S. Bank and Government Entity are entitled to retain Confidential Information of the other for
archival purposes as required in accordance with applicable law, rule or regulations.
e. Third Parties. Government Entity acknowledges that portions of its Account and Transaction data are captured
by third parties, including, but not limited to the Associations, third-party service providers, Merchants, and
Merchant processors, during the course of normal business operations and that the confidentiality provisions of
this Agreement do not extend to such third parties.
IV. TERM AND TERMINATION
A. Term. This Agreement shall remain in effect for an initial "Base Period" of five (5) years beginning on the date Indicated
under the column labeled "Commencement Date" and shall continue thereafter until terminated by either party by giving
(90) days prior written notice to the other Party. During the initial Base Period, however, as defined in the Participating
Addendum, neither party may terminate this Agreement, in whole or in part, except by mutual consent or as otherwise
provided under this Section.
B. Termination for Cause by Either Party. Either Party shall have the right to immediately terminate this Agreement with
respect to any Card Product and/or Ancillary Service provided on the Participating Addendum, or immediately terminate
this Agreement in its entirety, by providing written notice of such termination to the other Party, upon one or more of the
following events:
1. Dissolution or liquidation of the other Party, or Parent thereof, if applicable;
2. Insolvency of, the filing of a bankruptcy or insolvency proceeding with respect to, or the appointment of a receiver or
trustee for the benefit of creditors of, the other Party, or Parent thereof, if applicable or the other Party enters into any
other similar proceeding or arrangement for the general benefit of its creditors;
3. Any failure to perform a material obligation of this Agreement;
4. If any material statement, representation or warranty of a Party, its affiliates or Parent at any time furnished to the
other Party is untrue in any material respect when made;
5. A material breach of any other agreement entered into by the Parties.
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Appendix A, Document 2 -U.S. Bank Commercial Card Master Agreement
C. Termination for Cause by Government Entity. Government Entity shall also have the right to terminate this Agreement
with respect to any Card Product and/or Ancillary Service provided on the Participating Addendum, or terminate this
Agreement in its entirety, by providing ten (10) days prior written notice of such termination to U.S. Bank upon one or more
of the following events:
1. U.S. Bank's reduction of Government Entity's PCL and/or AGL, as defined in Section I. B., has materially and
adversely affected Government Entity's utilization of any Card Product or the Commercial Card Program.
2. U.S. Bank's failure to reasonably perform in accordance with a material term of any written proposal and/or
presentation provided to Government Entity by U.S. Bank in contemplation of this Agreement, provided that:
a. Government Entity has worked with U.S. Bank to develop a sixty (60) day action plan to ensure U.S. Bank's
performance materially complies with any aforementioned proposal and/or presentation; and
b. U.S. Bank has failed to successfully complete all deliverables agreed to in the action plan.
D. Termination for Cause by U.S. Bank. U.S. Bank shall also have the right to terminate this Agreement with respect to any
Card Product and/or Ancillary Service provided on the Participating Addendum, or terminate this Agreement in its entirety,
by providing ten (10) days prior written notice of such termination to Government Entity upon one or more of the following
events:
1. A material adverse change in the business prospects or financial condition of the Government Entity.
2. The overall relationship is unprofitable for U.S. Bank, provided that:
a. U.S. Bank has worked with Government Entity to develop a sixty (60) day action plan to return the relationship to
profitablilty; and
b. Government Entity has failed to successfully complete all deliverables agreed to in the action plan.
E. Effect of Termination. Upon termination of this Agreement, all applicable Cards, Accounts, and/or related services shall
be deemed canceled as referenced in such termination notification. Such cancellation shall be effective upon notification
of termination to the other Party as referenced herein. Upon termination, Government Entity shall instruct all Cardholders
to destroy their Cards and/or any records of Account numbers. U.S. Bank shall terminate all applicable services
thereunder upon a stated termination date. Governmenl Entity shall remain liable for all Debts arising from the use of a
Card and/or Account prior to the termination date, in accordance with the liability options on the Participating Addendum.
F. Surviving Rights. Rights, obligations and/or liabilities that arise prior to the termination of this Agreement with respect to
any Card Product and/or Ancillary Service provided on the Participating Addendum, or termination of this Agreement in its
entirety, shall survive any such termination.
V. OTHER TERMS AND CONDITIONS
A. Intellectual Property. Government Entity and U.S. Bank each recognizes that it has no right, title or interest, proprietary
or othe!Wise, in or to the name or any logo, or Intellectual Property owned or licensed by the other. Government Entity and
U.S. Bank each agree that, without prior written consent of the other, it shall not use the name, any logo, or Intellectual
Property owned or licensed by the other.
B. No Third Party Beneficiaries or Claims. Any Commercial Card Program and/or Global Commercial Card Program
provided to Government Entity by U.S. Bank is for the sole and exclusive benefit of Government Entity and no other
persons or organizations shall have any rights and/or remedies arising under or in connection with this Agreement.
C. Limitation of Liability. NEITHER GOVERNMENT ENTITY, U.S. BANK, NOR ANY PARTY'S AFFILIATES,
REPRESENTATIVES AND ASSIGNS SHALL IN ANY EVENT BE LIABLE TO THE OTHER PARTY FOR ANY
CONSEQUENTIAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES OF ANY NATURE (INCLUDING LOST PROFITS)
EVEN IF SUCH PARTY HAD BEEN NOTIFIED OF THEIR POSSIBLE EXISTENCE.
D. Representations and Warranties. Each Party represents and warrants with respect to such Party that:
1. This Agreement constitutes a valid, binding and enforceable agreement;
2. The execution of this Agreement and the performance of the obligations hereunder are within such Party's powers;
have been authorized by all necessary action; do not require action by or approval of any governmental or regulatory
body, agency or official; and do not constitute a breach of any material agreement of such Party;
3. The execution of this Agreement and the performance of the obligations hereunder shall not cause a material breach
of any duly arising in law or equity; and
4. As of the date of this Agreement, such Party possesses the financial capacity lo perform all of its obligations under this
Agreement.
The Parties agree that the failure of any of the above representations and warranties to be true during the term of this Agreement
shall constitute a material breach of this Agreement and the non-breaching Party shall have the right to terminate this Agreement in
accordance with Section IV.B.3.
EXCEPT AS EXPRESSLY PROVIDED HEREIN, U.S. BANK MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN LAW OR IN
FACT, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE AND
OF MERCHANTABILITY, EITHER TO GOVERNMENT ENTITY OR TO ANY OTHER PERSON OR THIRD PARTY, WITH
RESPECT TO THE COMMERCIAL CARD PROGRAM OR THE GLOBAL COMMERCIAL CARD PROGRAM PROVIDED BY U.S.
BANK OR ITS REPRESENTATIVES OR WITH RESPECT TO SOFTWARE SERVICES PROVIDED OR MADE AVAILABLE TO
GOVERNMENT ENTITY OR ANY OTHER PERSON FOR ITS USE BY U.S. BANK IN CONNECTION WITH THIS AGREEMENT
AND ANY SERVICE THEREUNDER.
E. Modification or Amendment. This Agreement shall not be modified or amended except by writing and signed by both
Government Entity and U.S. Bank.
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Appendix A, Document 2-U.S. Bank Commercial Card Master Agreement
F. Severability. Should any provision of this Agreement be declared invalid for any reason, such declaration shall not affect
the validity of any other provision of this Agreement, which shall remain in full force and effect as if this Agreement had
been executed with the invalid provlsion(s} eliminated. The Parties shall use their commercially reasonable efforts to
agree upon a valid substitute provision in accordance with the purpose of this Agreement and the intent of the Parties.
G. Non-Waiver. The failure of U.S. Bank or Government Entity to exercise any right, power or option arising under this
Agreement, or to insist upon strict compliance with the terms of this Agreement shall not constitute a waiver of this
Agreement with respect lo any other or subsequent breach hereof, nor a waiver by either of U.S. Bank or Government
Entity of its rights at any lime thereafter to require exact and strict compliance with all the terms hereof.
H. Binding Effect and Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their
respective successors and assigns.
I. Interpretation of this Agreement. The Parties expressly agree that this Agreement shall not be construed more strongly
against either Party regardless of which Party is more responsible for its preparation. This Agreement constitutes the
entire agreement between the Parties concerning the matters addressed in this Agreement, and cancels and supersedes
any prior agreements, undertakings, declarations or representations, written or verbal, in respect thereof. Unless the
context otherwise requires, words importing the singular number shall include the plural and vice versa, words importing
any gender include all genders and references to agreements and other contractual instruments shall be deemed to
include all present or future amendments, supplements, restatements or replacements thereof or thereto. Headings are
inserted for convenience of reference only and shall not affect the construction or interpretation of this Agreement.
J. Sole Provider. The Parties acknowledge and agree that U.S. Bank shall be the sole provider to Government Entity of the
Card Products and Ancillary Services set forth in the Participating Addendum.
K. Commercial Card Program and Card Issuance. U.S. Bank has approved Government Entity for the Commercial Card
Program in the United States and shall provide the products and options indicated in the Participating Addendum.
Government Entity shall designate lo U.S. Bank proposed employees who are anticipated to incur expenses on behalf of
Government Entity and who are to receive Accounts, with or without Cards, by submitting completed, duly authorized
applications, in a format specified by U.S. Bank, and with any applicable consents or authorizations from such Cardholder
applicant as may be required herein or in such applications. If an Account is used for Purchases or to obtain cash in a
country other than the United States, the Statement shall reflect the conversion into U.S. Dollars of Transactions that
occurred in a different currency and an applicable exchange rate for any such conversion. Due to fluctuations in foreign
exchange rates, a credit transaction may not be in the same amount as the original debit transaction.
L. Notice and Communication. Except with respect to notices relating to the status of individual Cards and/or Accounts, all
notices, requests and other communications provided for hereunder must be directed to the other Party at the respective
addresses set forth below, unless otherwise specified herein, and must be in writing, postage prepaid or hand delivered.
Either Party may change its address by written notice to the other Party.
U.S. Bank Government Entit~
U.S. Bank National Association State of Minnesota
Co'f orate Payment Systems
Mai Code EP-MN-A 17S
Department of Administration
50 Sherburne Avenue, Room 112
901 Marquette Avenue St. Paul, Minnesota 55155
Minneatolis, MN 55402 U.S.A.
Attn: C S Contract Services
Attn: Acquisition Management Specialist
M. USA PATRIOT Act. In order to comply with the requirements of the USA PATRIOT Act, U.S. Bank may require
Government Entity and Cardholders to provide their legal entity name, street address, taxpayer identification number and
other information that will allow U.S. Bank to identify each Government Entity and Cardholders prior to establishing an
Account under or in connection with the Agreement. U.S. Bank reserves the right to require that Government Entity and
Cardholders promptly provide to U.S. Bank sufficient identification documents upon request and in connection with USA
PATRIOT Act compliance.
N. Governing Law. Except as provided to the contrary herein, the law of the state in which Government Entity resides and
applicable federal laws and regulations of the United States shall apply to all Commercial Card Program services provided
by U.S. Bank under this Agreement. Notwithstanding the foregoing, the laws of the State of Minnesota and applicable
federal laws and regulations of the United States shall govern Software Services provided to Government Entity under this
Agreement.
0. Interchange Rate. The Revenue Sharing Opportunity described in this Agreement is based on current interchange rates
determined by the Association. These interchange rates are subject to change by authorities outside the control of U.S.
Bank. In the event of a decrease or increase in the Association's published interchange rates by five percent (5%) or
more, U.S. Bank will have the right to replace the current Revenue Sharing Opportunity with a new Revenue Sharing
Opportunity proportionate to the change of the revised interchange rates.
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State of Minnesota -U.S. Bank Commercial Card Solutions-Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix A, Document 2 -U.S. Bank Commercial Card Master Agreement
P. Other Agreements and Regulations. In addition to this Agreement, the products and services provided to Government
Entity are subject to the following additional agreements and/or regulations:
1. Clearing House Operating Regulations. Any applicable automated clearinghouse operating rules, Including,
without limitation, the National Automated Clearing House Association Operating Rules and Guidelines (collectively
referred to as the "NACHA Rules");
2. Association Operating Regulations. Association operating rules and regulations, including, without limitation,
Visa USA, Visa International, MasterCard USA, and MasterCard International; and
3. Cardholder Agreement. Each Cardholder may receive a Cardholder Agreement that governs the use of the
Account. Activation of the Card or Account by the Cardholder and/or use of the Card or Account by the Cardholder
constitutes concurrence with the terms and conditions of the Cardholder Agreement.
Q, Disputes. All disputes regarding Charges or billings for the U.S. Bank Commercial Card Program shall be communicated
in writing through Access Online or by mail within sixty (60) days of statement date to U.S. Bank at the address set forth
below:
U.S. Bank
P.O. Box 6344
Fargo, ND 58125-6344 U.S.A.
R. Customer Service. Government Entity and Cardholders may call the following telephone numbers to report termination of
employment of any Cardholder, lost or stolen Cards or compromised Accounts, or to ask questions about Commercial
Card Program Services or U.S. Bank Accounts.
800-344-5696 (Program Services) 24 hours per day I 7 days per week
877-887-9260 (Cardholders, Software Customer Service) 24 hours per day I 7 days per week
877-452-8083(Program Administrator, Software Customer Service) 6:30 a.m.-8:00 p.m., CST Monday-Friday
VI. DEFINITIONS
A. Definitions. All capitalized terms used in this Agreement are defined herein and shall have the following meaning:
1. "Account" means any account established by U.S. Bank pursuant to this Agreement in the name of Government
Entity, Government Entity Agencies or Political Subdivisions and/or Cardholders, to which Debt is charged, regardless
of whether or not a Card is issued in conjunction with such account.
2. "Affiliate" means a Person that directly or indirectly controls, is controlled by, or is under common control with, the
Person specified.
3. "Ancillary Services" means any additional services offered in conjunction with an Account, including but not limited to
Cash Advances, Convenience Checks and U.S. Bank Expense Management.
4. "Association" means, collectively, the Persons who govern commercial card issuance, including, without limitation,
Visa USA, Inc., Visa International Service Association, Inc., MasterCard USA, and MasterCard International.
5. "Billing Cycle" means the period of time from which a Statement is generated until the next Statement Is generated.
6. "Card" means, in connection with an Account, any commercial charge card Issued by U.S. Bank pursuant to this
Agreement in the name of Government Entity and/or Cardholders.
7. "Cardholder" means an individual employee of Government Entity, named as the holder of the Account or using the
Account in the name of Government Entity, regardless of whether a physical card is issued in conjunction with the
Account.
8. "Cardholder Agreement" means the U.S. Bank Cardholder agreement in standard form between U.S. Bank and the
Card holder.
9. "Card Products" means the standard U.S. Bank commercial card product offerings, including but not limited to the
Purchase Card, Corporate Card, Managed Spend Card, Executive Card, One Card, Global Card.
10. "Cash Advance" means an advance of cash in the form of cash or check that, if permitted according to the terms of
this Agreement, is charged to an Account.
11. "Cash Advance Fee" means the fee charged by U.S. Bank for a Cash Advance according to the terms of the
Participating Addendum.
12. wcentral Billing Account" means any Account used for consolidating Transactions from one or more other Accounts for
centralized corporate billing purposes. Central Billing Account includes, but is not limited to "Central Billing Accounts",
"Central Travel Accounts" (CTA) and "Central Travel System Accounts" (CTS).
13. "Charge" means any transaction posted to an Account that has a debit value, including without limitation, Purchases,
Cash Advances, and Fees.
14. "Charge-off' means any amount due and owing that remains unpaid for one hundred fifty (150) days after the date that
it was first billed.
15. "Commercial Card Program" means the Card Products and Ancillary Services offered by U.S. Bank or a Participating
Bank.
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Appendix A, Document 2 -U.S. Bank Commercial Card Master Agreement
16. "Control" or "Controlled" means, with respect to a Person, the possession, directly or indirectly, of the power to direct
or cause the direction of management or policies (whether through ownership of securities or partnership, membership
or other ownership interests, by contract or otherwise) of such Person,
17. "Convenience Checks" means the drafts drawn against an Account by the Cardholder for Purchases.
18. "Data" means the information regarding or in connection with Accounts and/or Transactions associated with the
Commercial Card Program and/or any such Information provided by a Lead and/or Participating Bank associated with
the Global Commercial Card Program.
19. "Debi" means all amounts charged lo an Account including without limitation all amounts related lo Charges that are
owed to U.S. Bank by Government Entity, Government Entity Agencies and Political Subdivisions, and/or Cardholders.
20. "Due Dale" means, with respeci lo a Statement, the dale, as measured by the number of days after the Statement
Date, for which the payment of Debi that is listed on the Statement is due.
21. "Fees" means all fees that are posted to an Account and due and payable to U.S. Bank by Government Entity,
Government Entity Agencies and Minnesota CPV Members, and/or its Cardholders that are associated with any
Commercial Card Program and/or Global Commercial Card Program, including but not limited lo Cash Advance,
Foreign Transaction and Late Fees.
22. "Foreign Transaction Fee" means the fee U.S. Bank charges on the amount of any Debt or other Transaction posted
lo an Account that is not in the same currency in which the Account is billed and which must be converted lo the
currency used for billing purposes,
23. "Fraudulent Charges" mean those Charges which are not initialed, authorized or otherwise requested by Government
Entity and/or a Cardholder by any means (electronic, telephonic or written) and do not directly or indirectly benefit
Government Entity and/or a Cardholder.
24. "Intellectual Property" or "Intellectual Property Rights" means any patent rights, copyrights, trade secrets, trade names,
seivice marks, moral rights, know-how and any other similar rights or intangible assets recognized under any laws or
international conventions, and in any country or jurisdiction in the world, as intellectual creations to which rights of
ownership accrue, and al! registrations, applications, disclosures, renewals, extensions, continuations or reissues of
the foregoing now or hereafter in force.
25. "Lale Fee" means the fees associated with any Debi that remains unpaid to U.S. Bank by Government Entity and/or
Cardholders after the Due Date on the Statement.
26. "MasterCard" means MasterCard® USA, Inc., MasterCard International, and any other MasterCard entity identified in
the Participating Addendum.
27. "Merchant" means any entity that has entered into an agreement that governs the acceptance of Cards.
28. "Merchant Category Code" means the code established by the Associations Iha! identifies and classifies goods or
services offered by a Merchant. Each Merchant designates its Merchant Category Code to the applicable Association.
29. "Parent" means any Person that Controls a Party.
30. "Party" means any one of U.S. Bank or Government Entity, and "Parties" means U.S. Bank and Government Entity,
31. "Past Due Balance" means, with respect lo a Statement, the total amount of any Debi which remains unpaid lo U.S.
Bank by Government Entity and/or Cardholder after the Due Dale specified on such Statement.
32. "Person" means any corporation, company, limited liability company, general partnership, limited partnership, limited
liability partnership, unincorporated association, trust, joint venture, estate or other judicial entity or any governmental
body,
33. "Minnesota CPV Member Addendum" means the Commercial Card Program Minnesota CPV Member Addendum
used by Political Subdivisions localed in the slate of Minnesota to join Government Entity's Commercial Card
Program.
34. "Program Administrator' means !he employee designated by Government Entity to serve as the primary point of
contact between Government Entity and U.S. Bank and shall be trained and have thorough knowledge of Commercial
Card Programs offered by U.S. Bank to Government Entity.
35. "Purchase" means a purchase of goods and/or services that is charged to an Account.
36, "Statement" means, with respect to one or more accounts, a periodic billing Statement from U.S. Bank listing all
Transactions posted to such Accounts.
37. "Summary Statement" means, with respect lo one or more accounts, a billing Statement that provides only an
aggregate amount of all Transactions posted lo such Accounts.
38. "Transaction" means any activity posted lo an Account, both debit and credits, including but not limited lo Purchases,
Cash Advances, Fees and payments.
39. "U.S. Bank Expense Management" means the automated expense management and reporting solution offered by
U.S. Bank.
40. "Visa" means Visa® USA, Inc., Visa International Service Association, Inc. and any other Visa entity.
Page 20 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix A, Document 3 -U.S. Bank Fleet Card Agreement
U.S. BANK FLEET CARD PROGRAM AGREEMENT
This Fleet Card Agreement (the "Fleet Card Agreement") governs the U.S. Bank Fleet Program provided by the
WSCA-NASPO Cooperative Purchasing Program Commercial Card Solutions Contract #00612, Category 2 (the "Fleet Card
Contract") and is an attachment to the Participating Addendum entered into by and between U.S. Bank National Association
("U.S. Bank") and the Government Entity which Is a signatory to that Participating Addendum ("Government Entity"),
1. EFFECTIVE DATE. The date of execution of the Fleet Card Contract by lhe latler of the State of Washington and U.S.
Bank shall be the "Effective Date" of the Fleet Card Program.
2. PARTICIPATION. Certain entities designated by Government Entity may participate in the Fleet Card Program.
A. "Government Entity Agencies" means those Government Entity departments and agencies that rely upon the
Government Entity for funding, or are appropriated funds by the Government Entity for the charges on the accounts
issued to the employees of those departments and agencies. In order for Government Entily Agencies to
participate In the Fleet Card Program, the Government Entity will furnish to U.S. Bank a Government Entity Agency
Addendum listing those agencies allowed to participate. The Government Entity has lhe right to exclude any
agencies from the Fleet Card Agreement by providing writlen notice to U.S. Bank at any time.
B. "Minnesota CPV Member" means any municipalities, counties, and institutions of higher education located in the
state of Minnesota that do nol rely upon the Government Entity for funding. Minnesota CPV Members may
participate in this Fleet Card Program upon credit approval by U.S. Bank and upon the signing and submission of a
properly completed Minnesota CPV Member Addendum.
3. SCOPE OF FLEET CARD PROGRAM. U.S. Bank issues charge cards and has established a transaction processing,
reporting and payment system for purchases of motor fuels and other products and services by fleet vehicle operations.
Government Entity shall be responsible for selecting a personal identification number ("PIN"), a driver identification
number ("Driver ID"), and/or a vehicle identification number ("Vehicle ID") pursuant to the Fleet Card Program.
Unless U.S. Bank notifies Government Entity to the contrary, or a Fleet Card has been terminated as provided herein, all
Fleet Cards will expire upon the expiration or termination of this Fleet Card Agreement.
4. SOLE PROVIDER OF FLEET CARD SERVICES. The Parties acknowledge and agree that U.S. Bank shall be the sole
provider to Government Entity of Fleet Cards and services pertaining to the Fleet Card Program.
5. LIABILITY.
A. Except as expressly provided to the contrary herein, Government Entity shall be liable for all purchases, fees,
Finance Charges and other charges incurred or arising by virtue of the use of a Fleet Card.
B. Government Entity shall immediately, upon receipt of such information, notify U.S. Bank by telephone at 1-800-987-
6591 as to any lost or stolen Fleet Card, PINS, Driver IDs, or Vehicle IDs, Government Entity shall also immediately
notify U.S. Bank by telephone at 1-800-987-6591to cancel a PINs, Driver Ids, or Vehicle IDs. After notification has been
made to U.S. Bank to cancel such Flee! Card(s), use of such Fleet Card(s) is expressly prohibited. Government Entily
is liable for the unauthorized use of the Fleet Card until U.S. Bank receives notification of the lost or stolen Fleet Card or
to cancel the PIN, Driver ID, or Vehicle ID. Government Entity shall not be liable for any purchase, fees, finance
charges or other charge incurred or arising by virtue of the use of a Fleet Card following receipt by U.S. Bank of notice
of such loss, theft or request to cancel a PIN, Vehicle ID, or Driver ID. Government Entity agrees to assist U.S. Bank in
determining the facls, circumstances and olher pertinent information related to any loss, theft or possible unauthorized
use of lhe Fleet Card and to comply with such procedures as may be required by U.S. Bank in connection with U.S.
Bank's investigation. U.S. Bank is not responsible for controlling lhe use of a Fleet Card, other than as specifically
provided herein.
6. PRICING. Government Entity shall pay to U.S. Bank lhe fees as set forth on Addendum A, attached hereto and made a
part hereof. U.S. Bank reserves the right to renegotiate pricing in subsequent years of lhe Fleet Card Agreement if
Government Entity's estimated billing volume is substantially Inaccurate.
7. FINANCE CHARGES. A Finance Charge can be avoided if U.S. Bank receives payment of Government Entity's "New
Balance" within twenty five (25) days of lhe statement closing date (the "Statement Date"). If Government Entity's
New Balance Is not paid in full, a Finance Charge will be computed using the average daily balance ("ADB"). To arrive
at the ADB, U.S. Bank will take lhe beginning balance on Government Entity's account each day, add debits and any
new purchases (except in the states of IL, ME, MA, MN, MS, MT, and NM) from the date of posting (if the New Balance
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Appendix A, Document 3 -U.S. Bank Fleet Card Agreement
is not received), then subtract any payments or credits, returned check fees, and unpaid Finance Charges. The result
will be the "Dally Balance." U.S. Bank will then add all the Daily Balances for the billing cycle and divide by the total
number of days In the billing cycle. The result will be the ADB. The Finance Charge will be determined by multiplying
the ADB by a Periodic (monthly) Rate for Government Entity's state of mailing address as shown in Section 20, Notices,
below.
State of Mailing Address ADB Periodic (monthly) Rate Annual Percentage Rate
MN All 1.33% 16,0%
8. DELINQUENCY. The Fleet Card account will become delinquent unless U.S. Bank receives the amount shown on the
Statement as Total Payment Due, less any disputed amounts, before the next billing date (approximately twenty five
(25) days). Any unpaid portion of the Total Payment Due will be shown on subsequent Statements as the "Past Due
Amount." The Fleet Card account will be suspended if any part of the Past Due Amount is unpaid for three (3) billing
dates. In the event of Government Entity's delinquency, U.S. Bank may elect to terminate this Fleet Card Agreement
immediately upon notice to Government Entity. Court costs plus reasonable attorney fees (as allowed by law) may be
added to any delinquent balance referred to an attorney for collection.
9. BILLING PROCEDURE. U.S. Bank will send to Government Entity a monthly billing statement (the "Statement"),
which will itemize all charges for the billing period. The amount shown on the Statement as "Total Payment Due" shall
be due and payable in U.S. Dollars upon.Government Entity's receipt of the Statement.
10. DISPUTED BILLINGS. Disputes regarding charges or billings hereunder shall be communicated by phone to U.S. Bank
1-800-987-6591. Written notice is not required but may be submitted to U.S. Bank by email to
fueldlsputes@usbank.com, Whether by phone or in writing communications should include Government Entity's and,
if applicable, the Participant's name(s) and account number, the dollar amount of any dispute or suspected error and a
description of the dispute or error. Any communication regarding a dispute or suspected error must be received by U.S.
Bank within sixty (60) days after the date on the billing statement on which the disputed or Incorrect charge first
appeared. Disputed billings are categorized as, but not necessarily limited to, failure to receive goods or services
charged, fraud, forgery, altered charges and charges incurred by telephone order where the authenticity of the charge is
in question.
11. TERM, TERMINATION AND SUSPENSION,
A. This Fleet Card Agreement shall remain in full force and effect for an initial term of five (5) years from the Effective
Date of this Fleet Card Agreement, and shall continue thereafter until terminated by either Government Entity or
U.S. Bank upon ninety (90) days prior written notice to the other Party. The effective date of termination shall be
stated in such written notice of termination. All Fleet Cards and related accounts shall be deemed canceled
effective upon termination of this Fleet Card Agreement.
B. Notwithstanding the foregoing, either Party shall have the right to terminate this Fleet Card Agreement immediately,
by written notice of such termination to the other Party, upon any one (1) or more of the following events:
(i) Dissolution or liquidation of the other Party;
(ii) Insolvency of the other Party or the filing of a bankruptcy or insolvency proceeding, the appointment of a
receiver or trustee for benefit of creditors or the other Party enters into an arrangement with its creditors:
(iii) Any material and adverse change in the financial condition of the other Party:
(Iv) Any failure to perform a material obligation of this Fleet Card Agreement.
C. Upon termination of this Fleet Card Agreement for any reason, Government Entity shall destroy all Fleet Cards.
Government Entity shall remain liable for all purchases, fees, Finance Charges and other charges Incurred or
arising by virtue of the use of a Fleet Card prior to the termination date.
D. U.S. Bank shall have the right to suspend any and all services and obligations under this Fleet Card Agreement to
Government Entity in the event that: (i) Government Entity has breached any term of this Fleet Card Agreement: (ii)
the amount due from Government Entity, as the result of purchases, fees, Finance Charges and other such
charges, in the aggregate, exceeds the credit limit established pursuant to Section 16; or (iii) payment is not
received by U.S. Bank within ninety (90) days after any Statement Date.
E. Rights, obligations or liability, which arise prior to the suspension or termination of this Fleet Card Agreement, shall
survive the suspension or termination of this Fleet Card Agreement.
Page 22 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix A, Document 3 -U.S. Bank Fleet Card Agreement
12. CONFIDENTIALITY.
A. U.S. Bank considers the Fleet Card Program lo be a unique service involving proprietary information of U.S. Bank.
Government Entity agrees that Fleet Card Program reports, manuals, documentation and related materials
(whether or not in writing) will be cl_rculated only to persons, and only to the extent necessary, in order that
Government Entity may participate In the Fleet Card Program. Government Entity and Participants agree to take all
reasonable steps to safeguard such proprietary information and not to release such Information to any person or
party not essential to participation in the Fleet Card Program as herein described.
B. U.S. Bank agrees that ii will maintain all data relative to Government Entity's account(s) under the Fleet Card
Program as confidential information and will exercise the same standard of care and security to protect such
information as U.S. Bank uses to protect its own confidential information. U.S. Bank agrees to use such data
exclusively for the providing of services to Government Entity and Participants hereunder and not to release such
information to any other party; provided, however, that U.S. Bank may collect, maintain and, at its option,
disseminate information and data concerning charge activity which does not contain any direct or indirect
identification of Government Entity or Participants.
13. INDEMNIFICATION.
A. Except to the extent that any injury is due to Government Entity's or a Participant's negligent acts or omissions,
U.S. Bank shall indemnify and hold Government Entity and Participants harmless against all losses, damages,
costs, expenses and liability which may result in any way from any negligent or wrongful act or omission of U.S.
Bank, its agents, employees and subcontractors. U.S. Bank shall Indemnify and hold Government Entity and
Participants harmless against demands, claims, suits, or proceedings alleging infringement of any patent of the
United States, or any trademark, service mark, copyright or other proprietary right arising out of or incident to this
Fleet Card Agreement.
B. BANK SHALL IN NO EVENT BE LIABLE TO GOVERNMENT ENTITY FOR ANY CONSEQUENTIAL, SPECIAL,
INDIRECT, OR PUNITIVE DAMAGES OF ANY NATURE.
14. WARRANTIES.
A. The Parties agree that the failure of any of the below representations and warranties to be true during the term of
this Fleet Card Agreement shall constitute a material breach of this Fleet Card Agreement and the non-breaching
Party will have the right, upon notice to the other Party, to immediately terminate this Fleet Card Agreement and all
amounts outstanding hereunder shall be immediately due and payable.
B. Government Entity warrants that:
(i) The financial Information and all other information provided to U.S. Bank by Government Entity or its officers,
employees, agents, successors and assigns is true, complete and accurate;
(ii) This Fleet Card Agreement constitutes a valid, binding and enforceable agreement of Government Entity;
(iii) The transaction contemplated by this Fleet Card Agreement is within the scope of the normal course of
business and does not require further authorization for Government Entity to be duly bound by this Agreement;
(iv) The execution of this Fleet Card Agreement and the performance of its obligations under this Fleet Card
Agreement are within Government Entity's powers; have been authorized by all necessary action; and do not
constitute a breach of any agreement of Government Entity with any party;
(v) Government Entity has and continues lo comply with all applicable state and federal statutes, ordinances,
rules, regulations and requirements of governmental authorities as they relate to the use of the Fleet Card
and/or participation in the Fleet Card Program;
(v0 The execution of this Fleet Card Agreement and the performance of its obligations under this Fleet Card
Agreement will not cause a breach by ii of any duty arising in law or equity; and
(vii) Government Entity possesses the financial capacity to perform all of its obligations under this Fleet Card
Agreement.
C. U.S. Bank warrants that:
(i) This Fleet Card Agreement constitutes a valid, binding and enforceable agreement of U.S. Bank;
(ii) The execution of this Fleet Card Agreement and the performance of its obligations under this Fleet Card
Agreement are within U.S. Bank's powers; have been authorized by all necessary action; do not require action
by or approval of any governmental or regulatory body, agency or official; and do not constitute a breach of any
agreement of U.S. Bank with any party;
(iii) U.S. Bank has and continues to comply with all applicable state and federal statutes, ordinances, rules,
regulations and requirements of governmental authorities as they relate to the Fleet Card Program;
(iv) The execution of this Fleet Card Agreement and the performance of U.S. Bank's obligations under this Fleet
Card Agreement will not cause a breach by ii of any duly arising in law or equity; and
(v) U.S. Bank possesses the financial capacity to perform all of its obligations under this Fleet Card Agreement.
Page 23 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix A, Document 3 -U.S. Bank Fleet Card Agreement
15. FINANCIAL INFORMATION. Since this Fleet Card Agreement is for an extension of credit with a financial Institution
and not a vendor services agreement, Government Entity shall provide information as requested by U.S. Bank to
perform periodic credit reviews. Unless such Information Is publlcly available or available through U.S.Bancorp (the
parent company of U.S. Bank) or any of its subsidiaries, Government Entity shall provide audited financial statements,
prepared by Government Entity's independent certified public accountant, as soon as available and In any event not
later than one hundred eighty (180) days after the end of each fiscal year of company. In the event U.S. Bank requires
addilional information to conduct its review of company, Government Entity agrees lo provide to U.S. Bank such other
information regarding the business, operations, affairs, and financial condition of Government Entity as U.S. Bank may
reasonably request. Such information may include, but is not limited to, quarterly financial statements, organizational
charts, executive biographies and other formal documentation.
16. AGGREGATE PRODUCT CREDIT LIMIT AND ACCOUNT CREDIT LIMITS. Subject to credit approval by U.S. Bank,
an account credit limit (an "ACL") for each Account and an aggregate product credit limit (the "PCL") for all Accounts
shall be established by U.S. Bank pursuant to this Fleet Card Agreement.
A. Revising the PCL. U.S .Bank, at its sole discretion, shall have the right to revise the PCL. U.S. Bank shall provide
notice to Government Entity of any decrease in the PCL which results in a revised PCL that Is lower than the
aggregate current amount outstanding on all Accounts. Upon such no lice, Government Entity shall have ten (10)
days to make a payment to U.S. Bank that Is sufficient to reduce the aggregate current amount outstanding to an
amount that is equal to or less than the revised PCL.
B. Revising ACLs. U.S. Bank, at its sole discretion, shall have the right to revise any ACL.
(i) Government Entity Accounts. U.S. Bank shall provide notice to Government Entity of any decrease in an
AGL which results in a revised AGL that is lower than the aggregate current amount outstanding on the Account.
Upon such event, Government Entity shall have ten (10) days to make a payment to U.S. Bank on the Account
that is sufficient to reduce the aggregate current amount outstanding for such Account to an amount that Is
equal to or less than lhe revised ACL.
(ii) Fraudulent Activity. U.S. Bank may revise any ACL and/or limit spending activity on any Account for which
fraudulent activity is suspected.
17. REGISTERED MARKS AND TRADEMARKS. Government Entity and U.S. Bank each recognize that they have no
right, title or interest, proprietary or otherwise, in or to the name or any logo, copyright, service mark or trademark owned
or licensed by the other Party. Government Entity and U.S. Bank each agree that, without prior written consent of the
other Party, they will not use the name or any name, logo, copyright, service mark or trademark owned or licensed by
the other Party.
18. SURVIVABILITY OF PAYMENT OBLIGATIONS, RIGHTS AND REMEDIES. The obligation of Government Entity to
make payments as herein set forth shall continue until fully performed. Any rights and remedies Government Entity or
U.S. Bank may have with respect to each other arising out of either Party's performance of services or obligations
hereunder shall survive the expiration or termination of this Fleet Card Agreement.
19. GOVERNING LAW. The validity, interpretation and performance of this Fleet Card Agreement will be controlled by and
construed under the laws of the State of where Government Entity is located (without giving effect to the conflict of law
principles thereof) and applicable federal laws.
20. NOTICES. Except with respect to notices relating to the status of individual Fleet Cards which may be established in
writing between U.S. Bank and Government Entity or a Participant, all notices, requests and other communication
provided for hereunder must be directed to the other Party al the respective addresses indicated below and, unless
otherwise specified herein, must be in writing, postage prepaid or hand delivered or delivered by lelecopy. Either Party
may, by written notice to the other, change its address indicated below.
U.S. Bank:
U.S. Bank National Association ND
Mail Code EP-MN-L26C
901 Marquette Avenue
Minneapolis, MN 55402
Attn: CPS Contract Services
Government Entity:
Stale of Minnesota -Department of Administration
50 Sherburne Avenue
Room 112
St. Paul, Minnesota 55155
Attn: Acquisition Managemenl Specialist
21. EMPLOYMENT OF AGENTS. U.S. Bank may, in Its sole discretion, employ agents to perform part or all of its
obligations under this Fleet Card Agreement at any time without the consent of Government Entity: provided, however,
that such action shall not affect its obligations to Government Entity hereunder.
Page 24 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix A, Document 3 -U.S. Bank Fleet Card Agreement
22. MISCELLANEOUS.
A. Complete Agreement: Amendments. This Fleet Card Agreement constitutes the complete understanding between
the Parties with respect to the subject matter hereof and all prior oral or written communications and agreements
with respect thereto are superseded. No failure on the part of either Party to exercise, and no delay in exercising
any right under this Fleet Card Agreement shall operate as a waiver thereof, nor shall any single or partial exercise
of any right under this Fleet Card Agreement preclude any other or further exercise thereof or the exercise of any
other right. This Fleet Card Agreement may not be altered, modified or amended, and no provision contained in it
may be waived, except in writing and signed by authorized representatives of both Government Entity and U.S.
Bank, with specific reference to this Fleet Card Agreement.
B. Successors and Assigns. This Fleet Card Agreement shall be binding upon and inure to the benefit of the Parties
and their respective successors and assigns; provided, however, that this Fleet Card Agreement may not be
assigned by Government Entity without the prior written approval of U.S. Bank or its designate, which shall not
unreasonably be withheld or delayed.
C. Severabllity. Should any provision of this Fleet Card Agreement be declared invalid for any reason, such decision
shall not affect the validity of any other provisions, which other provisions shall remain in force and effect as if this
Fleet Card Agreement had been executed with the invalid provision(s) eliminated. The Parties shall use their best
efforts to agree upon a valid substitute provision in accordance with the purpose of this Fleet Card Agreement and
the intent of the Parties.
D. USA PATRIOT Act. In order to comply with the requirements of the USA PATRIOT Act, U.S. Bank requires
Government Entity to provide its legal entity name, street address, taxpayer identification number and other
information that will allow U.S. Bank to Government Entity prior to establishing an account for such entity. U.S. Bank
reserves the right to require that Government Entity promptly provide to U.S. Bank sufficient Identification documents
upon request in connection with USA PATRIOT Act compliance.
E. Headings. The headings of the sections of this Fleet Card Agreement are intended for the convenience of the
Parties only and shall in no way be held to explain, modify, amplify or aid in the interpretation of the provisions
hereof.
For Government Entities with two hundred (200) or more Fleet Cards and a monthly billing volume of at least seventeen thousand
U.S. Dollars ($17,000.00), U.S. Bank will not assess a fee to Government Entity for account set-up, Fleet Card issuance,
transactions or standard monthly or annual billings. For Government Entities with less than two hundred (200) Fleet Cards and
monthly billings of less than seventeen thousand U.S. Dollars ($17,000.00), U.S. Bank will assess a fee to Government Entity for
account set-up, Fleet Card issuance, transactions or standard monthly or annual billings as provided below. Government Entity
may be automatically assessed all applicable fees provided in Addendum A without prior notice.
For additional reporting and Government Entities with less than two hundred (200) Fleet Cards and less than seventeen thousand
U.S. Dollars ($17,000.00) In monthly billings, the fees are as follows.
Set Up Fees
Account Set Up (one time feel-------------------------$0.00
Fleet Card Fees
Number of Cards (monthly):
7-25------------------------------$0.00
26 -100 $0.00
101 -200 ------·· $0.00
Additional Reporting Fees
Invoice (includes: statement, payments and adjustments and taxes)------------$0.00
Invoice Report-------$0.00
Driver Report $0.00
Vehicle Report $0.00
Exception Report $0.00
Service Station Activity Report ------$0.00
Product Purchase Summary $0.00
Expense Summary By Business Unit $0.00
Page 25 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix A, Document 4 -U.S. Bank Product Descriptions
U.S. BANK PRODUCT DESCRIPTIONS
1. U.S. Bank Purchase Card. The U.S. Bank Purchase Card is a charge card designed for use by
Cardholders to charge goods and services related to the business activities of Customer. U.S.
Bank also provides central purchase accounts, which can be used for the same purpose, but
without the issuance of a physical card.
2. U.S. Bank One Card. The U.S. Bank One Card is a charge card designed for use by Cardholders
that combines Corporate and Purchase Card capabilities on a single Account. The One Card can
be utilized for travel and entertainment related expenses as well as to charge goods and services
related to the business activities of Customer.
3. U.S. Bank Fleet Card. The U.S. Bank Fleet Card on the Voyager Network is a Corporate Liability
charge card designed for purchases of motor fuels and other products and services by fleet vehicle
operations using a transaction processing, reporting and payment system established by U.S. Bank.
4. U.S. Bank Managed Spend Card. The U.S. Managed Spend Card is a specialized corporate
liability card with declining balance functionality designed for use by Customers or Cardholders to
charge business related goods and services. Customer may also elect to have Cards issued to
family members relocating employees. Unless requested for a different duration, Managed Spend
has a term of twelve (12) to thirty-six (36) months. U.S. Bank also provides Managed Spend
Central Billing Accounts, which can also be used for business or relocation expenses. Based on the
credit worthiness of Customer and/or its Cardholder, U.S. Bank, at its sole discretion, shall establish
a credit limit of no less than five hundred U.S. Dollars ($500.00).
5. U.S. Bank Emergency Response Card. The U.S. Bank Emergency Response Card is a corporate
liability charge card designed for use by Cardholders under unusual or special circumstances such
as disaster relief/recovery efforts. Customer provides the Emergency Response Card to
Cardholders to charge goods and services against a Corporate billed account.
6. U.S. Bank Corporate Card. The U.S. Bank Corporate Card is a charge card designed for use by
Cardholders to charge travel, entertainment and other goods and services that are related to the
business activities of Customer. U.S. Bank also provides central travel accounts, which can be
used for the same purpose, but without the issuance of a physical card.
Page 26 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions-Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix A, Document 5 -Applicable Card Fee and Rebate Information
APPLICABLE CARD FEE AND REBATE INFORMATION
.
Fees Applicable lo Purchase, Corporate and One Card Charge
1. Annual Card Fee $0.00
2. Non-Sufficient Funds Fee, all Products, per occurrence $15.00
3. Logo Embossing Fee; a two-week delay may occur with Card issuance and Implementation $0.00
4. Delinquency Fee, Purchasing or One Cards and Enhancements
• Not Paid by Due Date on entire past due amount 1.0%
• Not Paid by each subsequent Billing Cycle on the entire past due amount 2.5%
• Minimum Late Fee $2.00
5. Delinquency Fee, Corporate
• Not Paid by Due Date on entire past due amount 0.0%
• Not Paid by each subsequent Billing Cycle on the entire past due amount 2.5%
• Minimum Late Fee $2.00
6. Travel Accident Insurance Fee. Common Carrier Travel Accident Insurance for Corporate and/or One Cards
Is provided at no charge with a benefit amount of two hundred fifty thousand U.S. Dollars ($250,000.00). $0.00 Entity and/or Participant must notify U.S. Bank of the use of Central BHllng Accounts for booking of travel to
ensure appropriate insurance coverage Is In place.
7. Foreign Transaction Fee, all Products. Fee applies to transactions taking place outside the United States 2.5% not In U.S. Dollars. U.S. Bank reserves the right to raise fee with sixty (60) days prior written notice to Entity.
Fees Applicable to Fleet Card
The following fees will only be assessed for those customers with few than 200 Fleet Cards and monthly Charge
billings of less than $17,000.000. The followlng fees are subject to change without prior notice.
1. Account Set Up -one-time fee $0.00
2, Fleet Card Fees -monthly fee dependent on number of cards
• 7-25 cards $0.00
• 26-100 cars $0.00
• 101-200 cards $0.00
3. Invoice, including statement, payments, adjustments and taxes $0.00
4. Driver Report $0,00
5. Exception Report $0.00
6. Service Station Activity Report $0,00
7, Product Purchase Summary $0.00
8. FleetCommander Online web access by user $0,00
9. Card delivery charge when overnight delivery service used $20.00
10. Expense Summary by Business Unit $0,00
11. Logo Embossing Fee; a two-week delay may occur with Card issuance and Implementation. $0.00
12. Foreign Currency Fee. a foreign currency conversion fee ("Foreign Currency Conversion Fee") for
transactions made outside the United States; the Statement will reflect the conversion Into U.S. Dollars on 2.0%
transactions that occurred in a different currency and an applicable exchange rate for such conversions.
13. Finance Charges. Assessed on balances not paid by due date on statement at a periodic rate in accord wilh
Entity's state rate as set forth herein and based on the Average Dally Balance ("ADB'l
To calculate, U.S. Bank will take the beginning balance on Entity's account each day, add debits and any
Periodic new purchases (except in the states or IL, ME, MA, MN, MS, MT, and NM) from the date of posting (if the
New Balance is not received), then subtract any payments or credits, returned check fees, and unpaid Rate
Finance Charges. The result will be the 11 Dally Balance.11 U.S. Bank will then add all the Dally Balances for APR
the billing cycle and divide by the total number of days in the bllling cycle. The result will be the 11 Average
Dally Balance."
Page 27 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix A, Document 5 -Applicable Card Fee and Rebate Information
Incentive Rebates Applicable to Corporate Liability Purchase, Corporate, and
Share One Cards (individual liability Corporate Cards are not Included In Rebate BPS Paid
Incentive Share Components 1, 2, and 3)
1 Each Participating Entity will receive a basis point (percentage) of their quarterly 130 Quarterly via
sales volume. credits to
The Formula to determine quarterly volume Incentive share: managing
Quarter!')!. sales volume 12.er e!]_l[(X. -gualif;!.ing large ticket volume X basis (2.0ints accounts
(percentagel -P'1rticif2_afing Enti(J!_ Quarterly_ Volume Incentive
2 A Prompt Payment Incentive will be offered to each Entity, The Prompt Payment Quarterly via
Incentive calculation Is designed to provide an Incentive to each Entity, when Client 45 credits to
Held Days Is less than forty-five (45) days. Client held days cannot be less than (1 bp/day) managing
zero (0) The Prompt Payment Incentive Is based solely on the Cllent Held Days accounts
Payment Performance for each Entity for each Agreement Quarter (3 calendar
months). The Formula to determine Prompt Payment Incentive:
[45 -Client Held Da11sl 145 x 0.0045 x @ff1.rterl'J!. Sales Volume
3 Large Ticket Incentive: Entity will receive an incentive for qualifying large ticket 75 Quarterly via
transactions, Qualifying large ticket transactions will be subject to the same speed credits to
of pay incentive. Contractor will provide a quarterly report identifying all managing
qualifying large ticket transactions to each Entity. accounts
The formula for calculating Large Ticket Incentive is:
Quali(ving Ouarterl:t. Large Ticket volume sales 12.er Enritv x basis e.oints
{percentagel -Entitr. Large Ticket Volume Incentive.
4 Annual Sales Volume Incentive: Each participating state will receive an additional See details
WSCA-NASPO Annual Sales Volume Incentive based on a tier established from all to the left
WSCA-NASPO participating states annual volume and applied to each state's
annual sales volume.
The formula for calculating WSCA-NASPO Annual Sales Volume Incentive is:
Particie.ating state annual sales volume Call r2.roductsl X a(2J2_/icable basis e.oints
(vercentagel correse.onding to the Tier established (pr the Annual Overall
WSCA-NASPO Sales Volume Call r2.rod11ctl -WSCAINASPO Particir2.ating State
Annual Sales Volume Incenlive,
$500,000,000 • $2,000,000,000 45
$2,000,000,001 • $3,000,000,000 45
$3,000,000,001 -$4,000,000,000 45
$4,000,000,001 • $5,000,000,000 45
The State of Minnesota Annual Incentive will be distributed as follows:
1) 15 basis points to the State of Minnesota, Materials Management Division, paid
annually via electronic paymenl
2) 30 basis points to State Agencies and Cooperative Purchasing Venture
Members, paid quarterly via credit to managing accounts
Page 28 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract 1175413 Purchasing Card Contract 1175427 Fleet Card
Appendix A, Document 5 -Applicable Card Fee and Rebate Information
MINIMUM REQUIREMENTS
If Any Entity does not earn at least $75.00 in Incentive Share for Category 1 Incentive Share Components 1 through 3 and
Category 2 Incentive Share Components 1 through 2 will forfeit Incentive share for the preceding quarter.
Any Incentive Share payment made pursuant to the Contract will be net of accumulated Charge-offs resulting from participation
in Contractor programs regardless of whether the underlying Contract between the parties is valid or has been terminated.
In the event that the Card Program or the Contract is terminated prior to the completion of the Base Period or prior to the
completion of any Agreement Quarter after the completion of the Base Period by Entity without cause, or by Contractor with
cause, and/or the sole provider provision of this Contract is violated, in addition to any other remedies available to Contractor,
this Incentive Share opportunity shall immediately terminate and no Incentive Share shall be paid to Entity. The State of
Minnesota, Materials Management will receive the annual incentive based on all spend regardless if an entity terminates within
the Base Period.
Any Charge-offs in excess of the net Incentive Share from one (1) Agreement Quarter will be subtracted from one (1) or more of
the following Agreement Quarters. Upon termination of the Contract, if the net Incentive Share is a negative dollar amount due
to Charge-offs, Contractor may request, and Entity agrees to reimburse, Contractor up to the dollar amount previously paid by
Contractor to Entity within thirty (30) days of the termination of the Contract.
Incentive Rebates Apptlcabte to Fleet Card Rebate BPS Paid Share
1 Participating Entity Volume: Entity will receive a basis point 130 Quarterly via
(percentage) of their quarterly sales volume, credits to managing
The Formula to determine quarterly volume incentive share: accounts
Q11arter{e_sa!es volume eer enti{X w g11ali6!_in;:. lar;:.e ticket volillne X
basis (2.0lnts (vercentag_e2 = EntiQ!. Quarterly_ Volume Incentivf
2 Participating Entity Prompt payment: A prompt payment Incentive will Quarterly via
be offered and is designed to provide an incentive to each entity when 45 credits to managing
Client Held Days Is less than 45 days. Client held days cannot be less (1 bp/day) accounts
than zero {0) The Prompt Payment Incentive is based solely on the
Client Held Days Payment Performance for each Entity for each
Agreement Quarter {3 calendar months).The Formula to determine
Prompt Payment Incentive:
(45 -Client Held Days)/ 45 x 0.0045 x Quarterly Sales Volume
3 All WSCA-NASPO States Annual Volume Incentive (per Slate) Annually via
$50,000,000-$100,000,000 40 electronic payment
$100,000,001 -$300,000,000 41 to the Slate of
$300,000,001 -$500,000,000 43 Minnesota,
$500,000,001 -$1,000,000,000 45 Materials
Management
Division
MINIMUM REQUIREMENTS
Any Entity does not earn at least $75.00 in Incentive Share for Category 1 Incentive Share Components 1 through 3 and
Category 2 Incentive Share Components 1 through 2 will forfeit Incentive share for the preceding quarter.
Any Incentive Share payment made pursuant to the Contract will be net of accumulated Charge-offs resulting from participation
in Contractor programs regardless of whether the underlying Contract between the parties is valid or has been terminated.
In the event that the Card Program or the Contract is terminated prior to the completion of the Base Period or prior to the
completion of any Agreement Quarter after the completion of the Base Period by Entity without cause, or by Contractor with
cause, and/or the sole provider provision of this Contract is violated, In addition to any other remedies available to Contractor,
this Incentive Share opportunity shall immediately terminate and no Incentive Share shall be paid to Entity. The State of
Minnesota, Materials Management will receive the annual incentive based on all spend regardless if an entity terminates within
the Base Period.
Any Charge-offs in excess of the net Incentive Share from one (1) Agreement Quarter will be subtracted from one (1) or more of
the following Agreement Quarters. Upon termination of the Contract, if the net Incentive Share is a negative dollar amount due
to Charge-offs, Contractor may request, and Entity agrees lo reimburse, Contractor up to the dollar amount previously paid by
Contractor to Entity within thirty (30) days of the termination of the Contract.
Page 29 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix B-Minnesota General Terms, Conditions and Specifications
MINNESOTA GENERAL TERMS, CONDITIONS AND SPECIFICATIONS
1. DEFINITIONS.
a. Agreement Quarter. A three (3) month period beginning with the first such period following the Effective Date of
the Card Program.
b. Agreement Year. A twelve (12) month period beginning with the first such period following the Effective Date of
the Card Program.
c. Client Held Days. The sum of the daily balances for the quarter divided by the total Net Charge Volume for the
quarter less fifteen (15) days and cannot be less than zero (0) days.
d. Client Held Days Payment Performance. The average speed of repayment of charges made for each quarter.
e. Contract. Contract is defined as the WSCNNASPO Contract with Contract Vendor and the Minnesota
Participating Addendum.
f. Contract Vendor and Contractor. These two terms apply to U.S. Bank National Association, the awarded vendor
from the WSCNNASPO Contract that MMD selects to enter into a Participating Addendum.
g. CPV Members. The Cooperative Purchasing Venture (CPV) program was established by Minn. Stat. § 16C.03,
subd. 10, w~ich authorizes the commissioner of the Minnesota Department of Administration (Commissioner of
Administration) through its Materials Management Division (MMD) to enter into a cooperative purchasing
agreement for the provision of goods, services, and utilities with one or more governmental units and other entities
as described in Minn. Stat.§ 471.59, subd. 1 and Minn. Stat.§ 16C.03, subd. 10. Based on this authority, the
Commissioner of Administration enters into a joint powers agreement that designates MMD as the authorized
purchasing agent for the governmental unit or other entity. Governmental units and other entities joining the
program are given an access code which identifies them as CPV members and permits them to access the MMD
website to get information about commodities and/or services available on the State of Minnesota (State) contracts.
Governmental units and other entities who are not members of the CPV program are not authorized to use the
contract prices. The Contract Vendor agrees to provide the contract to CPV members at the same prices, terms,
conditions, and specifications. For additional information, visit the MMD website at www.mmd.admin.state.mn.us.
Only CPV members located in the State of Minnesota are eligible to participate under the Minnesota WSCA-
NASPO agreement.
h. Large Ticket Transaction. Transaction which qualifies for an incentive interchange rate that is lower than the
standard interchange provided on a card transaction. Transaction size to qualify will vary over time with
interchange rate changes set by card networks. Large ticket interchange rates may require the merchant to provide
additional enhanced data to qualify for the lower rate however exceptions to this requirement can occur.
i. Ordering Entity. This term applies to any State Agency or CPV Member when allowed in the Participating
Addendum.
J. Quarterly Large Ticket Volume. Those Charges for each Agreement Quarter which the Association governing
Custome(s Card Program has determined qualify for large ticket interchange rates and which are processed by
such Association using large ticket interchange rates, less credits, for each Agreement Year. All other Charges and
all amounts related to Fees, Cash Advances, Convenience Checks, Fraudulent Charges, chargebacks and Charge-
offs are excluded from Large Ticket Volume.
k. Quarterly Sales Volume. All Charges set forth on the Billing Statements furnished for all Accounts, less Fees,
Cash Advances, Fraudulent Charges, Charge-backs, and amounts Charged-off by Contractor with respect to such
accounts as uncollectible for each quarter (3 calendar months).
I. State Agencies. This term applies only to State agencies and departments, as defined in Minn. Stat.§§ 15.01 and
15,021.
m. State and State of Minnesota. These two terms apply to the Minnesota Department of Administration, Materials
Management Division (MMD), representing the State of Minnesota as the contracting agency for the Participating
Addendum.
n. Travel Insurance. U.S. Bank will provide the state of Minnesota with Travel Accident Insurance in the amount of
$250,000.00 Common Carrier coverage per Purchasing Card Account at no cost to the entity. U.S. Bank will
provide a copy of coverage details upon request.
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2. STATE AUDITS (Minn. Stat. § 16C.05, Subd. 5). The books, records, documents, and accounting procedures and
practices of the Contract Vendor or other party, that are relevant to the Contract or transaction are subject to
examination by the contracting agency and either the Legislative Auditor or the State Auditor as appropriate for a
minimum of six years after the end of the Contract or transaction.
The State reserves the right to authorize delegate(s) to audit this Contract and transactions.
3, INSURANCE. Prior to execution of the Participating Addendum, the Contract Vendor will be required to provide a copy
of a Certificate of Insurance, including workers' compensation insurance coverage requirements of Minn. Stat. §
176.181 subd. 2, and other coverage per the Insurance requirements listed below:
Contractor shall, during the term of this Contract, maintain in full force and effect, the insurance described in this
section. Contractor shall acquire such insurance from an insurance carrier or carriers licensed to conduct business in
the Entity's state and having a rating of A·, Class VII or better, in the most recently published edition of Best's Reports.
Failure to buy and maintain the required insurance may result in this Contract's termination or at an Entity's option,
result in termination of its Participating Addendum.
Coverage shall be written on an occurrence basis. The minimum acceptable limits shall be as indicated below, with no
deductible for each of the following categories:
1. Commercial General Liability covering the risks of bodily injury (including death), property damage and personal
injury, including coverage for contractual liability, with a limit of not less than $2 million per occurrence/$2 million
general aggregate;
2. Contractor must comply with any applicable State Workers Compensation or Employers Liability Insurance
requirements;
3. Network Security and Privacy Liability Insurance (or equivalent) insurance covering claims which may arise from
failure of Contractor's security resulting in, but not limited to, computer attacks, unauthorized access, disclosure
of confidential or private infonnation, transmission of a computer virus or denial of service, with a limit of not less
than $2,000,000 per occurrence/$2,000,000 annual aggregate;
4. Bankers Blanket Bond (or equivalent) covering liability to third parties for dishonest and fraudulent acts of
employees, including but not limited to theft, fraud, and forgery, with a limit of not less than the face value of
money & securities that belong to the Entity.
Contractor shall pay premiums on all insurance policies. Certificates of Insurance shall also reference this Contract
and shall have a condition that they not be revoked by the insurer until thirty (30) calendar days after notice of
intended revocation thereof shall have been given to Entity by the Contractor.
Prior to commencement of the work, Contractor shall provide to the Entity a written endorsement to the Contractor's
general liability insurance policy that (i) names the State of Minnesota as an additional insured, (ii) provides that no
material alteration, cancellation, non-renewal, or expiration of the coverage contained in such policy shall have effect
unless the named Entity has been given at least thirty (30) days prior written notice, and (iii) provides that the
Contractor's liability insurance policy shall be primary, with any liability insurance of the Entity as secondary and
noncontributory.
Contractor shall furnish to Entity copies of certificates of all required insurance within thirty (30) calendar days of the
Participating Addendum's effective date and prior to performing any work. Copies of renewal certificates of all
required insurance shall be furnished within thirty (30) days after renewal date. These certificates of insurance must
expressly indicate compliance with each and every insurance requirement specified in this section. Failure to provide
evidence of coverage may, at State's sole option, result in this Contract's termination.
Coverage and limits shall not limit Contractor's liability and obligations under this Contract.
4. INDEMNIFICATION, HOLD HARMLESS, AND LIMITATION OF LIABILITY. The Contract Vendor shall indemnify,
protect, save and hold harmless the State, its representatives and employees, from any and all claims or causes of
action, including all legal fees and related costs incurred by the State arising from the performance of the Contract by
the Contract Vendor or its agents, employees, or subcontractors. This clause shall not be construed to bar any legal
remedies the Contract Vendor may have with the State's failure to fulfill its obligations pursuant to the Contract.
For clarification and not as a limitation, the Contract Vendor hereby expressly extends, in addition to the other terms,
conditions and specifications of the Contract, the foregoing defense and indemnification obligations to Cooperative
Purchasing Venture (CPV) Members, including Board of Trustees of the Minnesota State Colleges and Universities, In
addition to Agency as defined in Minn. Stat. 16.C.02, in addition to the legislative and judicial branches and
constitutional offices of state government.
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The State agrees that Contractor, Its principals, members and employees shall not be liable to the State for any actions,
damages, claims, liabilities, costs, expenses, or losses in any way arising out of or relating to the goods provided or
services performed hereunder for an aggregate amount in excess of $10,000,000 or the Contract amount, whichever is
greater. This limitation of liability does not apply to damages for personal injury or death, or to Contractor's obligation to
indemnify, defend and hold the State harmless against intellectual property infringement claims under paragraphs,
INTELLECTUAL PROPERTY INDEMNIFICATION, and COPYRIGHT of this Contract. This indemnification does not
include liabilities caused by the State's gross negligence or intentional wrong doing of the State. The State will not
indemnify or hold harmless the Contract Vendor.
5. LAWS AND REGULATIONS. Any and all services, articles or equipment offered and furnished must comply fully with
all local, State and federal laws and regulations, including Minn. Stat.§ 181.59 prohibiting discrimination and business
registration requirements of the Office of the Minnesota Secretary of State.
6. GOVERNMENT DATA PRACTICES. The Contract Vendor and the State must comply with the Minnesota Government
Data Practices Act, Minn. Stat. Ch. 13, (and where applicable, if the State contracting party is part of the judicial branch,
with the Rules of Public Access to Records of the Judicial Branch promulgated by the Minnesota Supreme Court as the
same may be amended from time to time) as it applies to all data provided by the State to the Contract Vendor and all
data provided to the State by the Contract Vendor. In addition, the Minnesota Government Data Practices Act applies to
all data created, collected, received, stored, used, maintained, or disseminated by the Contract Vendor in accordance
with the Contract that is private, nonpublic, protected nonpublic, or confidential as defined by the Minnesota Government
Data Practices Act, Ch. 13 (and where applicable, that is not accessible to the public under the Rules of Public Access
to Records of the Judicial Branch).
In the event the Contract Vendor receives a request to release the data referred to in this article, the Contract Vendor
must immediately notify the State. The State will give the Contract Vendor instructions concerning the release of the
data to the requesting party before the data is released. The civil remedies of Minn. Stat. § 13.08, apply to the release
of the data by either the Contract Vendor or the State.
The Contract Vendor agrees to indemnify, save, and hold the State of Minnesota, its agent and employees, harmless
from all claims arising out of, resulting from, or in any manner attributable to any violation of any provision of the
Minnesota Government Data Practices Act (and where applicable, the Rules of Public Access to Records of the Judicial
Branch), including legal fees and disbursements paid or incurred to enforce this provision of the Contract. In the event
that the Contract Vendor subcontracts any or all of the work to be performed under the Contract, the Contract Vendor
shall retain responsibility under the terms of this article for such work.
7. GOVERNING LAW. The Contract will be construed in accordance with and performance governed by the laws of the
State of Minnesota. Except to the extent that the provisions of the Contract are clearly inconsistent therewith, the
Contract shall be governed by the Uniform Commercial Code (UCC) as adopted by the State of Minnesota. To the
extent the Contract entails delivery or performance of services, the services will be deemed "goods" within the meaning
of the UCC, except when to deem such services as "goods" is unreasonable. Venue for any court action related to the
Contract and/or the Participating Addendum, Software Licenses and/or Software License Click Agreements will be in
State court located in Ramsey County, Minnesota.
8. JURISDICTION AND VENUE. The Contract, its amendments and supplements thereto, shall be governed by the laws
of the State of Minnesota. Venue for all legal proceedings arising out of the Contract or breach thereof shall be in the
State or federal court with competent jurisdiction in Ramsey County, Minnesota. The Contract Vendor voluntarily agrees
to be subject to the jurisdiction of Minnesota for all proceedings arising out of the Contract, or any breach thereof.
9. HUMAN RIGHTS/AFFIRMATIVE ACTION. The State requires affirmative action compliance by its Contract Vendors
in accordance with Minn. Stat. § 363A.36 and Minn. R. 5000.3400 to 5000.3600.
a. Covered contracts and Contract Vendors. One-time acquisitions, or a contract for a predetermined amount of goods
and/or services, where the amount of your response is in excess of $100,000 requires completion of the Affirmative
Action Certification page. If the solicitation is for a contract for an indeterminate amount of goods and/or services,
and the State estimated total value of the contract exceeds $100,000 whether it will be a multiple award contract or
not, you must complete the Affirmative Action Certification page. If the contract dollar amount or the State estimated
total contract amount exceeds $100,000 and the Contract Vendor employed more than 40 full-time employees on a
single working day during the previous 12 months in Minnesota or in lhe stale where it has its principal place of
business, the Contract Vendor must comply with the requirements of Minn. Stat. § 363A.36, subd. 1 and Minn.
R. 5000.3400 to 5000.3600. A Contract Vendor covered by Minn. Stal.§ 363A.36, subd .. 1 and Minn. R. 5000.3400
to 5000. 3600 that had more than 40 full-time employees within Minnesota on a single working day during the
previous 12 months must have a certificate of compliance issued by the commissioner of the Department of Human
Rights (certificate of compliance). A Contract Vendor covered by Minn. Stat. § 363A.36, subd. 1 that did not have
more than 40 full-time employees on a single working day during the previous 12 months within Minnesota but that
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did have more than 40 full-time employees in the state where it has its principal place of business and that does not
have a certificate of compliance must certify that it is in compliance with federal affirmative action requirements.
b. Minn. Stat. § 363A.36, subd. 1 requires the Contract Vendor to have an affirmative action plan for the employment
of minority persons, women, and qualified disabled individuals approved by the commissioner of the Department of
Human Rights (commissioner) as indicated by a certificate of compliance. Minn. Stat. § 363A.36 addresses
suspension or revocation of a certificate of compliance and contract consequences in that event. A contract
awarded without a certificate of compliance may be voided.
c. Minn. R. 5000.3400-5000.3600 implement Minn. Stat. § 363A.36. These rules include, but are not limited to,
criteria for contents, approval, and implementation of affirmative action plans; procedures for Issuing certificates of
compliance and criteria for determining a Contract Vendor's compliance status; procedures for addressing
deficiencies, sanctions, and notice and hearing; annual compliance reports; procedures for compliance review; and
contract consequences for noncompliance. The specific criteria for approval or rejection of an affirmative action plan
are contained in various provisions of Minn. R. 5000.3400-5000.3600 including, but not limited to, parts 5000.3420-
5000.3500 and parts 5000.3552-5000.3559.
d. Disabled Workers. Minn. R. 5000.3550 provides the Contract Vendor must comply with the following affirmative
action requirements for disabled workers.
AFFIRMATIVE ACTION FOR DISABLED WORKERS
(a) The contractor must not discriminate against any employee or applicant for employment because of physical
or mental disability in regard to any position for which the employee or applicant for employment is qualified.
The contractor agrees to take affirmative action to employ, advance in employment, and otherwise treat
qualified disabled persons without discrimination based upon their physical or mental disability in all
employment practices such as the following: employment, upgrading, demotion or transfer, recruitment,
advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training,
including apprenticeship.
(b) The contractor agrees to comply with the rules and relevant orders of the Minnesota Department of Human
Rights issued pursuant to the Minnesota Human Rights Act.
(c) ln the event of the contractor's noncompliance with the requirements of this clause, actions for
noncompliance may be taken in accordance with Minn. Stat. § 363A.36 and the rules and relevant orders of
the Minnesota Department of Human Rights issued pursuant to the Minnesota Human Rights Act.
(d) The contractor agrees to post in conspicuous places, available to employees and applicants for employment,
notices in a form to be prescribed by the commissioner of the Minnesota Department of Human Rights. Such
notices must state the contractor's obligation under the law to take affirmative action to employ and advance
in employment qualified disabled employees and applicants for employment, and the rights of applicants and
employees.
(e) The contractor must notify each labor union or representative of workers with which it has a collective
bargaining agreement or other contract understanding, that the contractor is bound by the terms of Minn.
Stat. § 363A.36 of the Minnesota Human Rights Act and is committed to take affirmative action to employ
and advance in employment physically and mentally disabled persons.
e. Consequences. The consequences of a Contract Vendor's failure to implement its affirmative action plan or make a
good faith effort to do so include, but are not limited to, suspension or revocation of a certificate of compliance by
the commissioner, refusal by the commissioner to approve subsequent plans, and termination of all or part of the
Contract by the commissioner or the State.
f. Certification. The Contract Vendor hereby certifies that it is in compliance with the requirements of Minn. Stat.
§ 363A.36, subd. 1 and Minn. R. 5000.3400-5000.3600 and is aware of the consequences for noncompliance. It is
agreed between the parties that Minn. Stat. 363.36 and Minn. R. 5000.3400 to 5000.3600 are incorporated into any
contract between these parties based upon this specification or any modification of it. A copy of Minn. Stat.
363A.36 and Minn. R. 5000.3400 to 5000.3600 are available upon request from the contracting agency.
10. PAYMENT, Minn. Stat. § 16A.124 requires payment within 30 days following receipt of an undisputed invoice,
merchandise or service, whichever is later. Terms requesting payment in less than 30 days will be changed to read "Net
30 days." The Ordering Entity is not required to pay the Contract Vendor for any goods and/or services provided without
a written purchase order or other approved ordering document from the appropriate Ordering Entity. In addition, all
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goods and/or services provided must meet all terms, conditions and specifications of the Contract and the ordering
document and be accepted as satisfactory by the Ordering Entity before payment will be issued.
Conditions of Payment. The Contract Vendor under the Contract must be in accordance with the Contract as
determined by the sole discretion of the State's Authorized Representative and be in accordance with all applicable
federal, state, and local laws, ordinances, rules, and regulations including business registration requirements of the
Office of the Minnesota Secretary of State.
11. TAXES. State Agencies are subject to paying Minnesota sales and use taxes. If orders are issued by CPV Members,
the Contract Vendor should confirm all of the tax requirements with the Ordering Entity.
12. DEFAULT. All commodities and services furnished will be subject to inspection and acceptance by the Ordering Entity
after delivery. No substitutions or cancellations are permitted without approval of the Ordering Entity. Back orders,
failure to meet delivery requirements, or failures to meet specifications in the purchase order and/or the Contract
authorizes the Ordering Entity to cancel the purchase order, or any portion of It, and purchase elsewhere. In the event
of default, the State reserves the right to pursue any other remedy available by law. A Contract Vendor may be
removed from the vendor's list, suspended or debarred from receiving a Contract for failure to comply with the terms and
conditions of the Contract, or for failure to pay the State for the cost incurred on the defaulted Contract.
13, INTELLECTUAL PROPERTY INDEMNIFICATION, The Contract Vendor warrants that any materials or products
provided or produced by the Contract Vendor or utilized by the Contract Vendor In the performance of the Contract will
not infringe upon or violate any patent, copyright, trade secret, or any other proprietary right of any third party. In the
event of any such claim by any third party against the State, the State shall promptly notify the Contract Vendor. The
Contract Vendor, al its own expense, shall indemnify, defend lo the extent permitted by the Minnesota Attorney
General's Office, and hold harmless the Stale against any loss, cost, expense, or liability (including legal fees) arising
out of such a claim, whether or not such claim is successful against the State.
If such a claim has occurred, or in the Contract Vendor's opinion is likely to occur, the Contract Vendor shall either
procure for the State the right to continue using the materials or products or replacement or modified materials or
products. If an option satisfactory to the State is not reasonably available, the State shall return the materials or
products to the Contract Vendor, upon written request of the Contract Vendor and at the Contract Vendor's expense.
This remedy is in addition to any other remedy provided by law.
14. PARTICIPATING ADDENDUM AMENDMENTS. Except as provided herein, the Participating Addendum shall be
modified only by written amendment duly executed by an authorized representative of the State and the Contract
Vendor. No alteration or variation of the terms and conditions of the Participating Addendum shall be valid unless made
in writing and signed by the parties as required by law. Every amendment shall specify the date on which its provisions
shall be effective. An approved Participating Addendum amendment means one approved by the authorized signatories
of the Contract Vendor and the State as required by law.
15. ADMINISTRATIVE PERSONNEL CHANGES. After execution of this Participating Addendum the State must be
notified of intended changes in the Contract Vendor's administrative personnel as soon as practicable.
16. NONVISUAL ACCESS STANDARDS, Pursuant to Minn. Stat.§ 16C.145, the Contract Vendor shall comply with the
following nonvisual technology access standards:
a. That the effective interactive control and use of the technology, including the operating system applications
programs, prompts, and format of the data presented, are readily achievable by nonvisual means;
b. That the nonvisual access technology must be compatible with information technology used by other individuals
with whom the blind or visually impaired individual must interact;
c. That nonvisual access technology must be integrated into networks used to share communications among
employees, program participants, and the public; and
d. Thal the nonvisual access technology must have the capability of providing equivalent access by nonvisual
means to telecommunications or other interconnected network services used by persons who are not blind or
visually impaired.
These standards are not applicable for installation of software or peripheral devices used for nonvisual access when the
information technology is being used by individuals who are not blind or visually impaired.
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17. SEVERABILITY. If any provision of the Contract, Including items incorporated by reference, Is declared or found to be
illegal, unenforceable, or void, then both the State and the Contract Vendor shall be relieved of all obligations arising
under such provisions; If the remainder of the Contract is capable of performance it will not be affected by the
declaration or finding and will be fully performed.
18, COPYRIGHT. The Contract Vendor shall save and hold harmless the State of Minnesota, its officers, agents, servants
and employees, from liability of any kind or nature, arising from the use of any copyrighted or non-copyrighted
composition, secret process, patented or non-patented invention, article or appliance furnished or used in the
performance of the Contract.
19. SURVIVABILITY. In addition to the 6.3 Survivorship of the Master Agreement Washington Contract, the following rights
and duties of the State and Contract Vendor will survive the expiration or cancellation of the resulting Contract(s).
These rights and duties include, but are not limited to the paragraphs on Indemnification, Hold Harmless, and Limitation
of Liability, State Audits, Government Data Practices, Governing Law, Jurisdiction and Venue, Intellectual Property
Indemnification, Publicity and Minnesota Reporting Requirements and Administrative Fees.
20, IT ACCESSIBILITY STANDARDS. US Bank acknowledges and is fully aware of the accessibility requirements of
Minnesota Statutes section 16E.03 and the State of Minnesota Accessibility Standards -available online at
http://mn.gov/oeVpollcies-and-standards/accesslbllity/# or http://mn.gov/oeV -that incorporate both Section 508 of the
Rehabilitation Act and Web Content Accessibility Guidelines 2.0 level 'AA'. The Standards apply to web sites, software
applications, electronic reports and output documentation, training delivered in electronic formats (including, but not
limited to, documents, videos, and webinars), among others. As upgrades are made to the
software/products/subscriptions available through this Agreement, US Bank agrees to develop functionality which
supports accessibility. If any issues arise due to nonconformance with the above mentioned accessibility Standards, US
Bank agrees to provide alternative solutions upon request at no additional charge to the State.
21. E-VERIFY CERTIFICATION. For services in excess of $50,000, the Contract Vendor certifies that as of the date of
services performed on behalf of the State, the Contract Vendor and all Its subcontractors will have implemented or be in
the process of implementing the federal E-Verify program for all newly hired employees in the United States who will
perform work on behalf of the State. This is required by Minnesota Statutes Section 16C.075. The Contract Vendor
shall be responsible for collecting all subcontractor certifications and may do so utilizing the E-Verify Subcontractor
Certification Form available on MMD website www.mmd.admin.state.mn.us.
All subcontractor certifications must be kept on file with the Contract Vendor and made available to the State upon
request.
22. SUBCONTRACTOR PAYMENT (When Applicable). In accordance with Minn. Stat. § 16A.1245, the Contract
Vendor shall, within 10 days of receipt of payment from the State, pay all subcontractors and suppliers having an
interest in the Contract their share of the payment for undisputed services provided by the subcontractors or suppliers.
The Contract Vendor is required to pay interest of 1-1/2 percent per month or any part of a month to the subcontractor
on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an
unpaid, undisputed balance of $100 or more will be $10. For an unpaid balance of less than $100, the amount will be
the actual penalty due. A subcontractor that takes civil action against the Contract Vendor to collect interest penalties
and prevails will be entitled to its costs and disbursements, including attorney's fees that were incurred in bringing the
action.
The Contract Vendor agrees to take all steps necessary to comply with said statute. A consultant is a subcontractor
under the Contract. In the event the Contract Vendor fails to make timely payments to a subcontractor or supplier, the
State may, at its sole option and discretion, pay a subcontractor or supplier any amounts due from the Contract Vendor
and deduct said payment from any remaining amounts due the Contract Vendor. Before any such payment is made to a
subcontractor or supplier, the State shall provide the Contract Vendor written notice that payment will be made directly
to a subcontractor or supplier for undisputed services. If there are no remaining outstanding payments to the Contract
Vendor, the State shall have no obligation to pay or to see to the payment of money to a subcontractor except as may
otherwise be required by law.
23. SOFTWARE LICENSING & SOFTWARE LICENSING CLICK AGREEMENTS. The following language is added to all
software license, software license click and maintenance agreements applicable to software utilized or sourced under
this agreement, unless otherwise approved in writing through a duly executed amendment to the Contract by the
Materials Management Division: Notwithstanding the foregoing, this contract shall not be construed to deprive the State
of its sovereign immunity, or of any legal requirements, prohibitions, protections, exclusions or limitations of liability
applicable to this contract or afforded to the State by Minnesota law.
24. SECURITY AND DATA PROTECTION. Contract Vendor is responsible for the security and protection of the State data
related to this ContracVAgreement. The terms, conditions, and provisions of this Security and Data Protection section
take precedence and will prevail over any other terms, conditions, and provisions of the ContracVAgreement, if in
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conflict. This Security and Data Protection section survives the completion, termination, expiration, or cancellation of
the Contracl/Agreement. For purposes of this Security and Data Protection section, "State" means the State of
Minnesota, or a cooperative purchasing venture ("CPV') member when the CPV member is the purchasing entity (if
CPV purchases are permitted under this Contracl/Agreement).
a, Data Ownership. The State solely and exclusively owns and retains all right, title and interest, whether express or
implied, in and to the State data. For purposes of this section, "data" has the meaning of "government data" in
Minnesota Statutes section 13.02, subdivision 7. Contract Vendor has no and acquires no right, title or interest,
whether express or implied, in and to the State data.
Contract Vendor shall only use State data for the purposes set forth In the ContracUAgreement. Contract Vendor
shall only access State data as necessary for performance of this Contracl/Agreement. Contract Vendor will not
access State user accounts except to respond to service or technical problems or at the State's specific request.
All State data shall be remitted, in a mutually agreeable format and media, to the State by the Contract Vendor
upon request or upon completion, termination or cancellation of the Contracl/Agreement. The foregoing sentence
does not apply if the State Chief Information Security Officer or delegate authorizes in writing the Contract Vendor
to sanitize and/or destroy the data and the Contract Vendor certifies in writing the sanitization and/or destruction of
the data. Ninety days following remittance of such data to the State, Contract Vendor shall, unless otheiwise
instructed by the State in writing, sanitize and/or destroy any remaining data and certify in writing that the
sanitization and/or destruction of the data has occurred. Any such remittance, sanitization or destruction will be at
the Contract Vendor's sole cost and expense,
In the event the Contract Vendor receives a request to release any State data, the Contract Vendor must
immediately notify the State to the extent permitted by applicable law or regulation. The State will give the Contract
Vendor instructions concerning the release of the data to the requesting party before the data is released. The
Contract Vendor must comply with the State's Instructions. The civil remedies of Minnesota Statutes section 13.08
apply to the release of the data by the Contract Vendor.
b. Security Incidents. If Contract Vendor becomes aware of a privacy or security Incident regarding any State data,
Contract Vendor will immediately report the event to the State. The decision to notify and the actual notifications to
the State's data subjects affected by the security or privacy incident is the responsibility of the State.
Notwithstanding anything to the contrary In this Contracl/Agreement, the Contract Vendor shall Indemnify, hold
harmless and defend the State and its officers, and employees for and against any claims, damages, costs and
expenses related to any privacy or security incident. Contract Vendor shall reasonably mitigate any harmful effects
resulting from any privacy or security incident.
For purposes of this sub-section, "security incident" means the successful unauthorized access, use, disclosure,
modification or destruction of data or interference with system operations in an information system. For purposes of
this sub-section, "privacy incident" means violation of the Minnesota Government Data Practices Act (Minnesota
Statutes chapter 13) and/or federal privacy requirements in federal laws, rules and regulations. This includes, but is
not limited to, improper or unauthorized use or disclosure of not public data, improper or unauthorized access to or
alteration of public data, and incidents in which the confidentiality of the data maintained by Contract Vendor has
been breached. For purposes of this section, "not public data" has the meaning in Minnesota Statutes section
13.02, subdivision Sa.
c. Security Program. Contract Vendor must make all commercially reasonable efforts to protect and secure the State
data related to this Contracl/Agreement. Contract Vendor will establish and maintain an Information Security
Program ("Program") that includes an information security policy applicable to any and all cloud computing or
hosting services ("Policy"), Contract Vendor's Program and Policy must align with appropriate industry security
frameworks and standards such as National Institute of Standards and Technology ("NIST") 800-53 Special
Publication Revision 4, Federal Information Processing Standards ("FIPS") 199, Federal Risk and Authorization
Management Program ("FedRamp"), or Control Objectives for Information and Related Technology ("COBIT'1. For
purposes of this section, "cloud computing" has the meaning defined by the U.S. Department of Commerce, NIST
Special Publication 800-145, currently available online at:
http·//csrc.nist.qov/publications/nistpubs/800-145/S PS00-145,pdf.
Contract Vendor will make its Policy available to the State on a confidential, need-to-know basis, along with other
related information reasonably requested by the State regarding Contract Vendor's security practices and policies.
Unless inconsistent with applicable laws, Contract Vendor and the State must treat the Policy and related
information on security practices and policies that are specific to the State as confidential information and as not
public data pursuant to Minnesota Statutes section 13.37.
Page 36 of 37
State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum
Contract# 75413 Purchasing Card Contract# 75427 Fleet Card
Appendix B-Minnesota General Terms, Conditions and Specifications
d. Data Management. Contract Vendor will not use State data, including production data, for testing or development
purposes. Contract Vendor has implemented and will maintain procedures to physically and logically segregate
State data, unless otherwise explicitly authorized by the State Chief Information Security Officer or delegate.
e. Data Encryption. Contract Vendor shall encrypt all State data in transit, if such data Is part of or associated with
Contract Vendors cloud computing or hosting services. Encryption keys to State data shall only be accessed by
Contract Vendor as necessary for performance of this Contracl/Agreement.
f. Data Storage. Contract Vendor agrees that any and all State data will be stored, processed, and maintained solely
on designated servers and that no such data at any time will be processed on or transferred to any portable
computing device or any portable storage medium, unless that storage medium is in use as part of the Contract
Vendor's designated backup and recovery processes.
g, Data Center and Monitoring/Support Locations. During the term of the Contracl/Agreement, Contract Vendor
agrees to: (1) locate all production and disaster recovery data centers that store, process or transmit State data only
in the continental United States, (2) store, process and transmit State data only in the continental United States,
and (3) locate all monitoring and support of all the cloud computing or hosting services only in the continental
United States. The State has the right to on-site visits and reasonable inspection of the data centers upon notice to
Contract Vendor of seven calendar days prior to visit.
h. Security Audits & Remediation. Contract Vendor will audit the security of the systems and processes used to
provide any and all cloud computing or hosting services, including those of the data centers used by Contract
Vendor to provide any and all cloud computing or hosting services to the State. This security audit: (1) will be
performed at least once every calendar year beginning with 2014; (2) will be performed according to appropriate
industry security standards; (3) will be performed by third party security professionals at Contract Vendors election
and expense; (4) will result in the generation of an audit report ("Contract Vendor Audit Report") which will, to the
extent permitted by applicable law, be deemed confidential information and not public data under the Minnesota
Government Data Practices Act; and (5) may be performed for other purposes in addition to satisfying this section.
Notwithstanding subsection h (3) above, the security audit for the Payment Analytics application may be conducted
by independent internal security professionals at Contract Vendor's expense.
The Contract Vendor Audit Report will address the control procedures used by Contract Vendor to provide any and
all cloud computing or hosting services, including specifically an assessment of whether (A) the control procedures
were suitably designed to provide reasonable assurance that the stated internal control objectives would be
achieved if the procedures operated as designed and (B) the control procedures operated effectively at all times
during the reporting period. The Contract Vendor Audit Report must also address relevant controls of any
subservice providers of any and all cloud computing or hosting services.
Upon the State's reasonable, advance written request, Contract Vendor will provide to the State a copy of the
Contract Vendor Audit Report.
Contract Vendor will make best efforts to remediate any control deficiencies identified in the Contract Vendor Audit
Report in a commercially reasonable timeframe.
If the State becomes aware of any other Contract Vendor controls that do not substantially meet the State's
requirements, the State may request remediation from Contract Vendor. Contract Vendor will make best efforts to
remediate any control deficiencies identified by the State or known by Contract Vendor, in a commercially
reasonable timeframe.
I. Subcontractors. Contract Vendor agrees that no State data shall be transmitted, exchanged or otherwise provided
to other parties except as specifically agreed to in writing by the State Chief Information Security Officer or
delegate. Contract Vendor must ensure that any contractors, subcontractors, agents and others to whom it
provides State data, agree in writing to be bound by the same restrictions and conditions under this
Contracl/Agreement that apply to Contract Vendor with respect to such data.
j. Compliance with Payment Card Industry Data Security Standard. All of Contract Vendors systems and
components that process, store, or transmit State data shall comply with the applicable and then most recent
version of the Payment Card Industry Data Security Standard ("PCI DSS") promulgated by the PCI Security
Standards Council. The Contract Vendor shall, upon request, provide the State with Contract Vendors currently
available and applicable Attestation of Compliance signed by a PCI QSA ("Qualified Security Assessor').
Page 37 of 37
Reimbursement Policy (Drafted by Councilmember Stoesz)
•Employees who are incurring expenses on behalf of Lino Lakes must obtain a Corporate Credit
Card for reimbursement.
•Expenditures done on behalf of the city but not on a city issued credit card may not be
reimbursed unless an emergency exists and pre-approval of expenditure. No expenditure greater
than $250 will be approved. These expenditures will be made public and given to the City
Council for review and explanation.
•All cash advances must be done by the City Finance director or delegate and all expenditures
will be considered public and given to the City Council for review and explanation.
•Any credit card or personal benefits from any use of city funds must be paid back to the city. ie
Credit card miles, cash back, Buy One Get One, punch cards, hotel benefits, and other benefits
gained because of city spend activity.
•Employees are responsible for timely reconciliation of monthly statements.
•Employees are responsible for the payment of all incidental personal charges incurred on their
card.
•Credit limits are determined and maintained the city Finance Director. Credit amounts are
actively maintained and actions to decrease or increase limits are based on the cardholder's
purchases, payments and personal credit history.
•Late fees are the financial responsibility of the card holder and will not be possible for
reimbursement.
•Card balances are due in full by the 27th of each month. Charges aging beyond 60 days will
result in account suspension and assessment of late fees.
•Charges aging beyond 90 days will result in account closure and will continue to receive late
fees.
•Charges aging beyond 120 days will result in the account being revoked.
•A charge-off of a card account will be reported to the Credit Bureaus, adversely impacting one's
personal credit.
•Corporate card accounts with no purchase activity for 15 months are closed automatically to
reduce risk to card holders and to the city.
•Employees are responsible for the final reconciliation of their statement, in coordination with
their manager to ensure processing of valid expenses, when they no longer require a Corporate
Card or are no longer a city employee.
•Purchase of software and hardware is not allowed with corporate credit cards.
WS – Item 6
WORK SESSION STAFF REPORT
Work Session Item No. 6
Date: April 2, 2018
To: City Council
From: Sarah Cotton Finance Director
Re: Technology Upgrades
Background
At the February 5, 2018 Work Session, the City Council discussed the replacement of
their laptops or iPads, which is considered every two years following the municipal
election. The Council expressed the desire to simplify the process by having members
purchase their own devices and seeking reimbursement up to $2,400 over a four-year
term, or $1,200 for a two-year term, for computer related expenses such as laptops,
tablets, software, storage, security, and accessories.
Staff sent out a request to the Finance ListServe in an attempt to understand what other
cities are doing related to Council technology. Responses were received from the
following cities: Inver Grove Heights, Hastings, St. Louis Park, Rosemount, Baxter,
Burnsville, St. Michael, Ham Lake, and South St. Paul. The only City currently
providing a stipend to Council, is the City of Hastings. The City of Hastings provides an
annual lump-sum stipend of $400 to each Councilmember. The remainder of the cities
are issuing city-owned iPads or tablets to Councilmembers.
The May 7, 2012, Work Session Staff Report detailing the analysis performed regarding
the conversion to electronic packets is included for your reference.
Staff’s recommendation is that the Council consider city issued iPads or tablets.
In addition, Councilmember Stoesz has been researching options for upgrading the City’s
website and may have information to share with the Council on Monday night.
Attachments
February 5, 2018 Work Session Staff Report
May 7, 2012 Work Session Staff Report
Addition: GovOffice Website Proposal/Dale Stoesz
Requested Council Direction
Staff is looking for further direction.
WS – Item 8
WORK SESSION STAFF REPORT
Work Session Item No. 8
Date: February 5, 2018
To: City Council
From: Jeff Karlson, City Administrator
Re: Technology Upgrades
Background
Beginning in 2012, every two years following the municipal election, Councilmembers
have had the option of replacing their tablet with a new one. They can keep the current
one, turn it in for repurposing or resale, or purchase it for a fair market price.
Two years ago the Council wanted the option of purchasing a Surface Pro. There have
been problems with the Surface Pro, which are not supported by Roseville IT. The cost
of computer support in 2018 through Roseville IT is $63.30 per unit per month. Staff
believes this is an unnecessary expenditure since the Council only needs to view the
agenda packets and check emails.
Staff’s recommendation is that the Council consider only purchasing tablets, which also
are not supported by Roseville.
Councilmember Stoesz may bring up a few other ideas for enhancing the City’s
technology capabilities.
Requested Council Direction
Staff is looking for further direction.
Proposal for Responsive Website
Design (RWD), Service, and Support
City of Lino Lakes, Minnesota
Today’s Date: 3/21/18 Expiration Date: 6/30/18
Mike Chaloupka
GovOffice Web Solutions
2112 Broadway Street NE, Suite 250
Minneapolis, Minnesota 55413
612-617-5709 direct
Mike@GovOffice.com
www.GovOffice.com
2
Contents
GovOffice Introduction ....................................................................................................... 3
Proposed Design Concept .................................................................................................. 4
Responsive Website Design (RWD) Features ...................................................................... 5
Content Management Highlights ........................................................................................ 6
GovOffice CMS Version 4.0 Announcement ........................................................................ 7
Hosting and Technical Support Services .............................................................................. 8
CMS Product & Service Features ......................................................................................... 9
Navigation and Content Services ....................................................................................... 12
3-Year Budget Payment Plan ............................................................................................. 13
Renewal Options and General Project Timeline ................................................................. 14
Testimonial of a Major Upgrade Client .............................................................................. 15
Specifications on Technology, Hosting & Security ............................................................. 16
3
Our History
GovOffice Web Solutions is a division of Avenet LLC, a national leader in delivering state-of-the-art Web solutions for
government, education, nonprofit, advocacy and campaign sectors. Minneapolis, Minnesota-based Avenet was founded
in 1999 and began serving local governments in 2001 through its GovOffice partnership with the International
City/County Management Association (ICMA) and 12 state municipal leagues. GovOffice is a leading national provider of
websites and content management systems to local governments, serving over 1,400 cities and counties in 42 states and
Canada.
Our Value Proposition
Our population-based pricing makes GovOffice an effective, affordable solution for every size of local government. With
GovOffice, you don't pay for a bunch of pricey features you don’t want or need. Our solution provides all the core
features used by most local governments, and enables you to add more specialized features as needed. In short, we are
easier to use, more affordable, and offer the features you and your citizens need, designed to fit a government budget.
And as governments try to do more with less now more than ever, that’s the perfect win-win for you and your
constituents.
GovOffice is Powerful and Affordable
GovOffice delivers the solution you need with a whole lot less hassle and expense, including:
• Custom, professional graphic design
• Powerful, flexible Content Management, with unlimited sections and subsections
• Mobile-friendly guarantee
• Online forms system for sign-ups, comment forms, polls, and more
• Audio and video files integration
• Calendars, News, Image galleries
• Security system enabling multiple users with varying levels of editing permissions to update the website
4
Proposed Design Concepts—Progressive Level Responsive Website Design (RWD) Package
Your website development project will involve graphic customizations to the GovOffice Responsive Framework. Customizations
include the incorporation of a title graphic (official logo and/or name of city and slogan, if applicable) wit h a stylish font treatment,
custom fonts (choice of Google Fonts) for section titles, sidebar titles, and promotions, custom colors for the body of the d esign,
custom colors for navigation menu buttons and Sidebars, availability of Facebook, Twitter, YouTube, Pinterest, and Instagram icons,
and incorporation of a Favicon and Mobile Touch Icon (linked icon for the home screen of tablets and smartphones).
The Client’s new design will sport an Enhanced Footer, Content Promotions Boxes, Search engine, programming of a self -admin Film
Strip that displays Icons that will give visitors one-click access to focus areas of the website (up to 10 icons included). The very
popular self-admin Image Slider (with captions and optional linking) to showcase up to 5 community photographs at a time on any
section will be included. Further, the Client’s Responsive design will include the in-demand, self-administered Advanced
Notifications Banner (notices, emergency alerts, reminders, etc. atop any section), and Local Weather Integration (a dynamic feed
from the National Weather Service).
Creative Process
1) Personal consultation with our graphic designer, 2) Development of up to 2 drafts by our graphic designer, 3) Presentation of
design drafts to the Client via Preview Mode, 4) Up to 2 rounds of revision to the Client’s chosen draft, 5) After revision is completed,
presentation of final draft to the client via Preview Mode; Client’s approval is then requested
Programming Process
6) Constructing the final design draft approved by the Client onto a working test site (Test Mode), 7) Adjustment as necessary to the
display or behavior of the design on the test site, 8) Testing of the design across the latest versions of all major Web browsers;
further adjustment made, if necessary; Content Services take place starting here, 9) Schedule a date for upload of the finished,
browser-tested design with the Client, 10) Upload of the design to replace the Client’s existing design on its live, public website; the
project is then declared completed
5
Responsive Website Design (RWD) Features
1. Development of new title graphic including official
logo, slogan, and stylish font type. It may lay over
the Image Slider images on the homepage and
move automatically to the navigation menu and
Search bar on smaller devices.
2. Image Slider allows staff to put up and take down
community photos at any time on the homepage
(5 images at a time). Each image may be captioned
and linked to any page, internal or external.
Further, website visitors may swipe forward or back
with their cursor or finger to see more photos.
3. The Film Strip contains Icons that allow one click
access to the most highly trafficked pages of the
website. The Icons will be uploaded, arranged, and
linked for the Client per the Homepage Setup
process and will slide automatically on a loop. Website visitors may swipe forward or back with their cursor or finger
to see more Icons.
4. An Enhanced Footer is a fixture on all Progressive level customized websites. It will be personalized to the Client’s
branding with a custom color, font, image, etc.
5. Local Weather Integration is a dynamic, linked reading of the community’s current temperature and weather
condition, delivered by a feed from the National Weather Service (weather.gov). It is easily accessible but not
obtrusive like commercial weather widgets available online. In this example the weather feed is seen to the far right
side of the design, just to the left of Search and social media icons.
6. Like Image Slider and Film Strip, the Advanced Notifications Banner is another self-administered, self-activated
feature to Responsive designs. It allows Clients to draw citizens’ attention to urgent notices, alerts, reminders, etc. on
any website section with an eye-catching, roll down banner which has a close out button.
7. This entire area of the homepage (and all interior pages), left to right, is where self-administered website content
displays. Shown here are six Content Promotions Boxes; these are a standard feature of the GovOffice Responsive
framework. If a Section Introduction is added, it will be located in the center. Regular Promotions, such as a
calendar, and Sidebars may be added to the left, center, or right, and all are totally Responsive, meaning each will
resize and rearrange automatically to conform to any screen size being used, either in portrait or landscape view.
6
Content Management Highlights
Every day GovOffice users efficiently manage their websites from their office and at home—on any computer that is
connected to the Internet through the latest versions of modern Web browsers—and they enjoy the many features that
GovOffice offers:
Unlimited number of sections and subsections are allowed to expand your site
Unlimited number of links throughout your site
Build a home page that includes a greeting, breaking news, upcoming events
Online sign-up for newsletters, comment forms, polls, and surveys
Audio and video files posted throughout the site
Image gallery that serves as an online photo album
News articles that can be featured and archived
Post meetings agendas and minutes as documents
Calendar of all community events and meetings
Contact information of staff and elected officials
Advanced users may switch to HTML mode for added flexibility
Social media integration
Security system allows multiple users with varying levels of permissions to update the website simultaneously
And much more!
Example of GovOffice Site Administration (Microsoft based solution empowers all staff to edit their pages):
Current Version of GovOffice CMS (3.0) New Version of GovOffice CMS (4.0) to be Launched in 2018!
7
GovOffice CMS Version 4.0: A Message from Our CEO
GovOffice was launched in 2001 as the centerpiece of a unique public-private partnership to bring website
technologies to cities across America. Founding partners included the International City-County Management
Association, League of Minnesota Cities, and Avenet Web Solutions which developed the GovOffice technology. Over
time an additional 15 state municipal leagues joined our partnership.
In those 17 years local government websites have evolved from being a novelty to a necessity. We have served over
1500 local governments in 44 states and stayed true to our mission of providing state-of-the-art web technologies that
meet the needs of local government, at an affordable cost. Now we are excited to announce that we have initiated a
major development initiative to create the next generation of our technology. The new GovOffice CMS 4.0 will meet
the needs of our local government clients and your constituents well into the future.
This major upgrade will be implemented in multiple phases which will help users absorb and adopt to changes over
time. User interface upgrades will maintain a priority on ease of use. Current sites will be seamlessly upgraded to the
new system with no or minimal disruption.
Phase 1 will result in:
A faster, more intuitive Admin system
Even faster public websites
A new site-wide Search system
Refresh of the Admin look & feel aimed at enhancing ease of use; also, it will be fully Responsive
(mobile-friendly)
A state-of-the-art code which can be extended rapidly to add new features in subsequent phases
Additional, incremental upgrades will feature new content types to meet the growing needs of our clients.
Subsequent phases may include:
New file upload software
eNotification/eAlert system
New, more robust bulk-mail/messaging system
Upgraded SuperForms & ePayment
Document management repository
Customized content types, such as Council Packets/ Agendas
Thank you for being a client and partner in preparing for the next generation of GovOffice!
Eric Johnson, CEO
Avenet/ GovOffice Web Solutions
8
Hosting and Technical Support Services (Specifications on final two pages)
Hosting
All GovOffice customers are provided secure, Tier Three Cloud hosting provided by Atomic Data, which ensures the
highest levels of security and firewall technology, powerful and reliable servers and systems, and robust
bandwidth. Specifically designed to provide state-of-the-art hosting for mission-critical websites and enterprise
applications.
Atomic Data is staffed 24/7 with highly trained technical engineers. In addition, Atomic adheres to a strict escalation
procedure to help ensure that GovOffice's applications are available to our customers at all times. It is noteworthy that
Atomic Data was constructed to withstand natural disasters, such as earthquakes, tornadoes, and floods. This has
brought the utmost value especially to our clients in regions of the country that experience severe weather capable of
knocking out telecommunications and utilities.
In January 2018 GovOffice implemented a major security and infrastructure upgrade to provide system-wide protection
to address a growing threat to government websites called Distributed Denial-of-Service (DDoS) attacks. DDoS attacks
are an attempt to flood a website with so much traffic that it impairs or shuts it down completely.
There are federal criminal penalties for such attacks, yet attacks are increasing. In October 2016, a national outage
caused by a DDoS attack shut down major websites such as Twitter, PayPal, Spotify, Airbnb, Netflix and others. Federal,
state and local government sites have become prominent targets for both domestic and foreign hackers. While the cost
of implementing this security service is substantial, it will be delivered to you by GovOffice by way of an enterprise-wide
protection plan from which all clients will benefit.
Atomic Data is located less than 15 minutes from GovOffice’s corporate office in Minneapolis, Minnesota.
Training & Technical Support
Our Training & Technical Support Team is available Monday through Friday, excluding national holidays, from 8:00 AM
to 5:00 PM Central Standard Time. It provides assistance to clients via toll-free phone and e-mail in the areas of initial
online training of the GovOffice toolset, additional training, technical support of websites, and more.
Online training sessions typically take 90 minutes to complete. If your staff has a basic understanding of Microsoft
Word, everyone will easily pick up our Content Management System. Support will schedule a training session that fits
your group’s schedule, and sessions are conducted via Webinar. No expensive on-site meetings is necessary, and there
is no charge for future training sessions with new or existing staff.
GovOffice Support Delivers:
Online Training Sessions
Toll-Free Phone Support
Quick Tips
Video tutorials
Support documents
Online Chat
9
CMS Product & Service Features
GovOffice requires no specialized software skills, and it allows staff to administer the site anytime, from any Internet
connection. GovOffice CMS is a database driven web application based upon underlying Microsoft technologies,
including SQL Server.
Our Software as a Service (SaaS) hosting model means your website will be worry-free. GovOffice provides the hosting,
technical infrastructure, upgrades and maintenance, saving you time and money. No additional software is required.
Professional Design Standard Optional
Access to 48 stock design template styles; customization of the design by the end user is
limited to adding your organization’s name, slogan, and a footer
Customized graphic design to incorporate branding and a community theme into a
Responsive Website Design (RWD) format
Proposed; see
page 13
Self-admin linking of Facebook and Twitter icons; in addition, YouTube, Pinterest, and
Instagram icons are available on all customized designs
Web Hosting, Performance, and Support Standard Optional
Up to 2 GB of stored uploads; nightly data backups at a cloud based Web hosting facility
Extended Storage Plan for an additional 2 GB of stored uploads on your website Add $250 per
year; n/a
DDoS (Distributed Denial of Service) protection
SSL encrypted administrative website
SSL encrypted public website—coming in Q1 2018
Unlimited online Webinar training of the GovOffice CMS and selected modules
Unlimited access to toll-free Technical Support for all staff
Video tutorials and unlimited, live Help Chat at help.govoffice.com
GovOffice Mobile delivers mobile version of website (smartphones)
Page-relevant Quick Tips within the administrative website
10
Website Access, Editing, and Management Standard Optional
Homepage Setup by a GovOffice Content Specialist
Unlimited number of administrative users on the GovOffice system
Limit access and administrative permissions to each user and group(s) on the system
Preview feature that shows how an unsaved edit would appear if it was saved and
activated on the live website
Live Site feature that allows users to switch between the live and administrative websites
within one browser window
Data storage tracker to help manage your load of Web content
Audit log that shows editing activity of all administrative users
Google Analytics integration
Basic Features Standard Optional
Flexibility to name and order all navigation menu buttons
Import, type, and edit text with formatting controls essential for a Web page
Create unlimited number of links to internal pages and external websites
Upload, resize, position, and caption photos
Online forms for questions, comments, and requests to be contacted by staff
Upload and post audio and video files
Upload and name documents, such as Agendas & Minutes and newsletters
Schedule of events, including recurring events, within a true calendar display
Online opinion polls with controlled responses and option to display the results
Image gallery to create a Community Photo Album; includes slideshow capability
11
Ability to add, turn on & off, and easily remove sidebars from all pages
Directory, including contact information and photos, of Elected Officials and staff
Post news stories with a pre-set release date for automatic display on live website
Display job listings with post & deadline dates and post the employment application
List Frequently Asked Questions by department or the entire organization
Highlight related links to associated websites without posting long URLs
Directory of local attractions and automatically created links to a Google Map
Site Map for added ease by site visitors in locating a desired section of the website
Last Edit stamp that shows the date on which any Web page was last updated
Printer-Friendly option and some flexibility in the placement of the link
Site-wide search engine that also searches keywords within uploaded documents
Advanced Features
Standard
Optional
SSL SuperForms module for robust online forms, such as service requests
Continued;
see page 13
HTML mode for editing—example: embed community videos from your YouTube Channel
or Google Maps of your area
Friendly URLs (for example, govofficecity.com/police) for quicker and direct access to
select sections the website—bypassing the home page entirely
Intranet capability for staff only areas of the website; accessed only by username and
password
Bulk e-mail tool that allows visitors to opt-in and opt-out of receiving e-mail notifications
from your government office
RSS feeds in from other news-related websites
12
Navigation and Content Services
The Complete Navigation Analysis & Restructure will make your navigation menu compatible with a Responsive Website
Design and greatly enhance speed of service to your website visitors.
Our content professionals will analyze the entire site navigation menu and then organize and label it according to best
practices of usability, Web design and the latest standards for government websites. The end result is a well-organized,
intuitive website that ensures your site visitors will quickly and easily find the information they need.
After completion of the Complete Navigation Analysis & Restructure project, GovOffice will address the your homepage
by doing a Homepage Setup which involves organizing your existing homepage content to follow the best practices of
Web writing and design. Specifically it involves:
Re-writing and formatting welcome text for efficient online reading
Organizing and labeling primary site navigation menus
Incorporating images effectively
Using Promotions to display news, events, calendars, etc. in a visually appealing way
Using Sidebars to display related links, text and images
“I’ve worked with GovOffice for several years now. While I have always been happy with the customer service,
my latest experience with them was exceptional.
We recently went through a Navigation Analysis & Restructure content service. The staff was very easy to work
with and completely professional. We are very happy with the reorganization of our entire website.”
Lynne A. Fuller, City Clerk
City of Norton Shores, Michigan
www.nortonshores.org
13
3-Year Budget Payment Plan: the solution for forward-thinking, yet budget-conscious, local governments
Summary of Services
Annual Service Package ($1500)— Delivered Year 1
License and Upgrades of GovOffice CMS, Annual Website Hosting, Maintenance & Security, Daily Data
Backups, 2 GB of Uploads, DDoS Protection, SSL Encrypted Administrative and Public Websites, Unlimited Live
Training & Technical Support, Domain Name Service, and Citizen Action SuperForms Module
Annual Service Package ($1500)— Delivered Year 2
License and Upgrades of GovOffice CMS, Annual Website Hosting, Maintenance & Security, Daily Data
Backups, 2 GB of Uploads, DDoS Protection, SSL Encrypted Administrative and Public Websites, Unlimited Live
Training & Technical Support, Domain Name Service, and Citizen Action SuperForms Module
Annual Service Package ($1500)— Delivered Year 3
License and Upgrades of GovOffice CMS, Annual Website Hosting, Maintenance & Security, Daily Data
Backups, 2 GB of Uploads, DDoS Protection, SSL Encrypted Administrative and Public Websites, Unlimited Live
Training & Technical Support, Domain Name Service, and Citizen Action SuperForms Module
Responsive Website Design ($7995)—Performed Year 1
Progressive RWD package (fully mobile-friendly) including the following features: Image Slider, Display of logo,
city name and slogan, Horizontal navigation system, color scheme and fonts, Standard styled Content Boxes,
Search engine, Facebook, Twitter, YouTube, Instagram, Pinterest icons, Mobile Touch Icon, Favicon, Local
Weather Integration, Filmstrip + up to 10 Icons, Advanced Notifications Banner, Enhanced Footer
Content Services (Included at $0 in Progressive RWD Package)—Performed Year 1
Complete Navigation Analysis & Restructure and Homepage Setup
Project Total and Payment Schedule
Total Charge: $12,495 - $720 credit = $11,775
Number of Equal Payments: 3
Year One Payment: $3925
Year Two Payment: $3925
Year Three Payment: $3925
14
3-Year Budget Payment Plan: Three Options to Continue with GovOffice at the End of Year 3
1. The original Agreement may be renewed for an additional 3 years at a rate of $4165/ year*. With renewal
GovOffice will repeat all of the services performed in the original Agreement, including development of a totally
new graphic design. This plan will keep the City in a modern, compelling website design at all times, and the City
will be insulated from any rate increase that occurs between now and 2021 in the areas of Annual Service &
Maintenance, Graphic Website Design, and Professional Content Services.
*The renewal rate (Years 4-6) is greater than Years 1-3 because the City’s Annual Service Package payment for
January 2018 through December 2018 has been received. Accordingly, a prorated credited of $720 was applied
evenly over Years 1-3. By Year 4 the credit will have been fully redeemed.
2. The City may opt not to renew the original Agreement and instead start an entirely new 3-year Agreement
(again, with an option for renewal for Years 4-6). The new annual charge could be less than or greater than the
original Agreement, depending on the services selected.
3. The City may opt out of the original 3-year Agreement and into a year-to-year commitment at the then-current
Annual Service Package rate. This traditional payment plan is what the City is enrolled in today.
Lump Sum Payment Option
The City is not required to participate in the 3-Year Budget Payment Plan program. To remain on its current, year-to-
year Agreement with GovOffice, the City will make a one-time only payment in the amount of $7995 for the Progressive
Level Responsive Website Design service that includes a Complete Navigation Analysis & Restructure and Homepage
Setup, and the regular Annual Service Package charge will be billed per the City’s usual billing cycle (Jan – Dec).
General Project Timeline
The implementation timeline for deliverables is subject to client participation, direction, and approvals.
The Client’s totally remade GovOffice website may be deployed in approximately 3 months (estimate only).
Responsive Website Design (RWD) process—creative & programming
8 weeks
Complete Navigation Restructure & Section Rebuild and Homepage
Makeover
4 weeks
Site testing across all major Web browsers and mobile devices
Less than 1 week
Webinar training of GovOffice CMS for staff
90 minutes
15
Testimonial of a Major Upgrade Client
“After 5 years, we decided to upgrade our GovOffice site. I contacted Mike Chaloupka in Sales to get the ball rolling. Mike
was great in getting pricing for different things we may want and patient in waiting for the budget year to cycle around.
The whole beauty of his proposal was that we paid only for what we wanted. They worked with what WE wanted, not
what they wanted.
We then moved on to Janelle Gulka, our Designer. I’d worked with Janelle in the past on several projects and was excited
to be working with her again. We had a good rapport in the past, and I knew we would do well together again. What a
gem she is! Janelle is such a wonderful person to work with. She is so innovative. Janelle tried a couple of different things
that had me saying “wow” and then “YES!” She knows her stuff and does it so well.
The last step was Ben Woolman, the Content Specialist. Ben seemed to know what I wanted even before I opened my
mouth. He knew exactly what he was doing, what I wanted, and he put it in motion. Before I knew it, he had implemented
what we had wanted, the site was done, up and running!
Because of these three professional people, we now have a totally new, clean, uncluttered Responsive website design. It
looks totally modern and beyond what I had imagined.
I’d be remiss if I did not mention that I or a member of our staff here will be able to maintain the site ourselves. If we
happen to have a question or run into a problem, there is live support, tutorial videos, and a help website to assist us.
But, honestly, the content management system is very user-friendly. You can’t go wrong with GovOffice.”
Jodi P. LaCroix, CMC
City of Lakesite, Tennessee
www.lakesitetn.gov
More Testimonials (RWD Clients)
"I highly recommend GovOffice and their team of outstanding professionals. We continue to work with them on
website redesigns every 3-4 years and they keep outdoing themselves every time!"
Angie Steinbach, Assistant City Manager
City of Montevideo, Minnesota
“The GovOffice team made our redesign project simple, even for a non-technical government professional like
myself. Everyone loves the updated photographs of the community and the cleaner navigation design. I have heard
nothing but high praise for our new website!”
Mary Vandenboom, Assistant to the Village Administrator
Village of South Elgin, Illinois
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Specifications on Technology, Hosting & Security
GovOffice has provided the website technology to over 1500 local governments for over 15 years. We have developed
unique expertise in protecting local government websites from security concerns and delivering a proven record of
reliability, performance and data protection for our clients.
GovOffice CMS Technology
The GovOffice technology stack is architected for redundancy and scalability. We use blade servers with Intel Xeon
processors with SSD storage. The GovOffice CMS is hosted on a load-balanced Web farm that can easily be expended as
resources require. Our application servers run Windows Server 2016 with IIS 10.0 and SQL Server 2016, which allows SSL
communication to be done over TLS 1.2. The GovOffice design framework utilizes jQuery and HTML 5 to provide
Responsive designs that look great and are optimized on both desktop and mobile browsers.
In contrast to some widely used software systems, GovOffice CMS is a proprietary system that does not have known
exploits published on public websites for hackers to exploit. The GovOffice team installs patches on a regular basis,
adheres to the highest standard of web server administration and access and logs access to all of our infrastructure.
GovOffice “Worry-Free” Hosting & Security
All GovOffice websites include our worry-free hosting and support which includes the following services:
Web Monitoring
Data center engineers monitor all of our servers and infrastructure, 24/7/365
Up-time and Disaster Recovery
99.99% up-time
Daily backups of all website data and are kept for 90 days
Website data can be restore as needed from backups, typically within hours
Enterprise Class Data Center
GovOffice websites are hosted in a highly secure, cutting-edge global data center with 24 x 7 monitoring to meet your
critical need for robust bandwidth, streamlined data storage, and business continuity.
The data center is monitored by trained technicians with a Network Operations Center (NOC) team. The NOC adheres to
a strict escalation procedure to help ensure that GovOffice websites are available to the public at all times. Our primary
data center is located in a former US Federal Reserve System building, constructed to withstand natural disasters, such
as earthquakes, tornadoes, and floods. This has brought the utmost value especially to our clients in regions of the
country that experience severe weather capable of knocking out telecommunications and utilities.
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Security
The safety and security of your data is our highest priority. Our data center is SAS 70 audited, SOC 2® attested, and SOC
3® certified
We observe industry best-practice standards including, but not limited to:
Hand biometric and RFID card controlled access to data center
Cage door sensors
Motion activated surveillance cameras
24 x 7 Monitoring
24 x 7, on-premise security guards
DDoS protection
Federal, state and local government websites have become prominent targets for both domestic and foreign originated
Distributed Denial of Service (DDoS) attacks designed to impair or shut down websites. All GovOffice clients’ websites
are protected through a system-wide DDoS solution designed to combat this growing threat.
The data center utilizes an enterprise level DDoS solution developed by a leading DDoS security company, Corero. The
key benefit of the Corero solution is that it automatically mitigates DDoS attack traffic before it impacts GovOffice
clients, enabling us to keep our networks clean of attack traffic.
WS – Item 7
WORK SESSION STAFF REPORT
Work Session Item No. 7
Date: April 2, 2018
To: City Council
From: Rick DeGardner, Public Services Director
Re: Rice Lake Elementary School Playground Equipment Project Follow-up
Background
This item was presented at the February work session. The City Council directed staff to
place this item on the March work session agenda (subsequently postponed due to poor
weather conditions) for additional discussion and provide the following information:
• Shenandoah Park - Existing amenities and future needs
• List of any potential trails near St. Claire Estates
Shenandoah Park currently consists of playground equipment (1998) and maintained turf
area. Park concept plans include the potential for hard court events, park shelter, viewing
deck, informal ball field, and internal trails.
Staff is not aware of any future trails near St. Claire Estates.
Requested Council Direction
Staff is requesting direction from the City Council whether to designate the park
dedication fees from the St. Claire Estates development for a specific purpose, or to retain
for future consideration.
WS – Item 8
WORK SESSION STAFF REPORT
Work Session Item No. 8
Date: April 2, 2018
To: City Council
From: Julie Bartell
Re: Blue Heron Days, Food and Craft Beer at Lino Park
Background
The annual city festival, Blue Heron Days, will be held on August 17 and 18, 2018.
Many of the festival activities take place at Lino Park.
The city has been approached by the owner of local restaurant The Tavern on Main with
interest in establishing a food and craft beer stand at Lino Park. City code currently does
not allow intoxicating beverages in city parks.
The restaurant manager will be attending the work session to discuss their festival idea.
Item #10
Monthly Progress Report
April 2, 2018
Item Last Action Taken Staff Status
Digital Scanning Project 8/7/17 – City Clerk provided a written
report of what has been completed
Julie Staff is utilizing a volunteer to
augment the process
White Bear Lake Restoration
Assn. v. Dept. of Natural
Resources (DNR)
3/23/18 – A letter was sent to the DNR
Commissioner objecting to the City’s
amended Water Appropriation Permit,
which imposed several new conditions
arising out of the Ramsey County Court
Order
Jeff A temporary stay of the WBL
Court Order has been granted
until the District Court
completes its review of the
Jan. 26th motion for a
permanent stay
Upgrade of HD
Audio/Visual Equipment
in Council Chambers and
Control Room
2/20/18 – Gooseneck mics were
installed
Jeff Chalk needs to be replaced;
legs for dais have been
ordered; wires under dais
need to be wrapped up
Culvert Maintenance ACD
10-22-32
7/5/17 – Staff was directed to monitor
the culvert and to work with the
RCWD on a longer term solution
Mike RCWD cleaned the culvert.
Staff continues to monitor
it.
Updates are shown in italics.
WS – Item 11
WORK SESSION STAFF REPORT
Work Session Item No. 11
Date: April 2, 2018
To: City Council
From: Rick DeGardner, Public Services Director
Re: Birch Park Playground Project Proposal
Background
As mentioned during the February 5 work session, staff has included the replacement of
the Birch Park playground equipment as part of the Park Board’s 2018 Parks and Trails
Capital Projects recommendation that will be presented at next month’s work session.
This particular capital project is more complex than a typical playground equipment
replacement project. Staff is recommending relocating the playground area adjacent to
the park shelter. The existing large playground structure is located in the lowest area of
the park, often resulting in wet conditions. Placing the engineered wood fiber in a low
area may create soggy conditions and will degrade quickly.
While installing the new playground equipment adjacent to the park shelter is a more
suitable location for park layout, visibility, and drainage, the new location is more
challenging due to the space constraints, elevation changes (ie. two tiered playground),
and existing trees. These factors create some design challenges that will take extra effort
to ensure a successful project.
Therefore, staff is recommending entering into a contract with Northland Recreation, Inc.
to provide the design and equipment for the Birch Park Playground Project via the
National Joint Powers Alliance (NJPA). Staff worked with Northland Recreation, Inc.
during our most recent park improvement project at NorthPointe Park (playground
equipment and park shelter).
NJPA is a public corporation serving as a municipal contracting agency for government
and education agencies. NJPA serves member agencies under the legislative authority
established and granted by Minnesota Statute 123A.21. The NJPA creates national
cooperative contract purchasing solutions on behalf of its member agencies which
include all government, education, and non-profit agencies nationwide and in Canada.
These cooperative contract opportunities offer both time and money savings for their
users by consolidating the efforts of numerous individually prepared solicitations to one
national, cooperatively shared process. This process leverages the aggregation of volume
from members nationwide. All NJPA contracts have been competitively solicited
nationally, reviewed, evaluated by committee and recommended to the NJPA Board of
Directors for award in accordance with Minnesota public purchasing and contracting
rules, guidelines, and regulations. The competitive solicitation and contract process is
completed and satisfied on behalf of our agency.
Recent agencies that have contracted with Northland Recreation, Inc. via the National
Joint Powers Alliance (NJPA) include the Anoka County Parks Department, Anoka-
Hennepin School District and the City of Plymouth.
Requested Council Direction
Authorize staff to proceed with this plan and place on the April 9 City Council agenda for
consideration.