HomeMy WebLinkAboutResolutions - 1999.07.15 - 25755MISCELLANEOUS RESOLUTION 199168 July 15, 1999
BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON
IN RE: MANAGEMENT AND BUDGET - PURCHASING DIVISION - AUTHORIZATION TO PURCHASE
GOODS USING PURCHASING CARDS
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Purchasing Division is desirous to establish a purchasing card
program for purchase of goods costing less than $500; and
WHEREAS use of purchasing cards will improve departmental operating
efficiency, emergency response time and reduce number of financial transactions
processed and checks issued; and
WHEREAS Act 266 of Public Acts of 1995 authorizes and regulates credit card
transactions involving local units of governments by officers and employees; and
WHEREAS Act 266 requires the County Board of Commissioners to adopt by
resolution a written policy that provides the following:
Designation of an employee or officer to oversee compliance,
Restrictions on use of purchasing cards for official business,
Documentation detailing goods, cost, date, and purpose, on purchase,
Protection and custody of card, procedure for lost and stolen cards,
Termination of card if officer or employee is terminated,
System of internal accounting controls to monitor use,
Procedure for approval of purchasing card invoices before payment,
Balance including interest due be paid within 60 days of the initial
statement date,
Disciplinary measures consistent with law for the unauthorized use of a
purchasing card; and
WHEREAS a policy has been developed for Oakland County in accordance with
state law. See Attachment "A"; and
WHEREAS various purchasing card systems have been reviewed by
representatives of Purchasing, Fiscal Services and the Oakland County Treasurer's
Office; and
WHEREAS Comerica has been chosen as the Commercial Card Service provider.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
approves the Oakland County Purchasing Card Policy per Attachment "A".
BE IT FURTHER RESOLVED that all purchasing cards, credit cards and charge
accounts in the name of Oakland County must be reviewed, processed and monitored
by the Program Administrator as specified in the Purchasing Card Policy.
BE IT FURTHER RESOLVED that the Board of Commissioners authorizes the
Department of Management and Budget to enter into an agreement on behalf of
Oakland County.
Chairperson, on behalf of the Finance Committee, I move the adoption of the
foregoing resolution.
FINANUe COMMITTEE
Finance Committee Vote:
cc Zdv)h4
Motion carried on a roll call vote with Taub voting No.
County of Oakland Attachment A
Purchasing Card Policies & Procedures
1.0 PURPOSE:
To set forth the Policies and Procedures for the Oakland County Purchasing Card Program.
2.0 INTRODUCTION:
Oakland County Purchasing Card Program has been established to provide a convenient
means with which to make purchases and, at the same time, reduce the costs associated with
initiating and paying for those purchases. The County Purchasing Division is responsible for
managing the program and each division is responsible for managing its Cardholder
accounts. Three areas of responsibility have been defined within each division to assist in
this management effort: the Cardholder, Card Administrator, and Division Contact. It is
important to understand that these three areas of responsibility do not necessarily equate to
three separate individuals within the division. It is permissible for one individual to be
assigned one or more of these responsibilities as defined in these Policies and Procedures.
The ultimate decision as to how each of these responsibilities is assigned will be made within
each division.
3.0 DEFINITIONS:
3.1 Purchasing Card: A charge card issued to an employee of Oakland County for the
purpose of making authorized purchases on the County's behalf. The County will
issue payment for charges made with the Purchasing Card.
3.2 Cardholder: County Employee whose name appears on the Purchasing Card and is
accountable for all charges made with that card.
3.3 Card Administrator: County employee(s) within each division responsible for
verifying that all charges against the Cardholder's account are backed with support
documentation and that the documentation is retained within the division. Card
Administrators will allocate individual charges to the appropriate account numbers.
Cardholders may be their own Card Administrators and a Card Administrator may
oversee more than one Cardholder account depending on how the division elects to
manage its accounts. A division may also have more than one Card Administrator.
3.4 Independent Review Committee: All transactions and card-related activities may be
subjected to review by an Independent Review Committee.
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3.5 Division Contact: County employee within each division responsible for receiving
and disseminating Purchasing Card information within their division and for relaying
Purchasing Card information from their division to the Program Administrator. It is
recommended that each division have only one Division Contact.
3.6 Program Administrator: County Purchasing Division'employee regponsible for
administering the Purchasing Card Program for the County and acting as the main
contact between the County and the Bank.
3.7 Transaction / Charge Limit: A dollar limitation of purchasing authority assigned to
the Cardholder for each total charge made with the Purchasing Card.
3.8 Spending Limit: A dollar limitation of purchasing authority assigned to the
Cardholder on the Cardholder Enrollment form for the total of all charges made
during a specified time period. Maximum limits for all cardholders except the
County travel card are as follows:
A. Daily charges may not exceed $1,000;
B. Monthly charges may not exceed $10,000.
Divisions may establish lower limits on a per Cardholder basis.
3.9 Statement of Account: A listing of all transactions charged to the Cardholder's card
account up to the end of the weekly billing cycle. An electronic statement will be
provided to each division on a weekly basis.
3.10 Default Account: The County account number assigned to an individual
Cardholder's Purchasing Card. Only one Default Account can be assigned to any one
Purchasing Card and all charges made with the Purchasing Card will be posted into
that Default Account unless those charges are reallocated. (See Section 13.0)
3.11 Support Documentation: A merchant produced or non-County document that
records the relevant details for each item purchased including quantities, amounts,
a description of what was purchased, the total charge amount and the merchant's
name and address (e.g. sales receipt, original invoice, packing slip, credit receipt,
etc.).
4.0 CARDHOLDER ENROLLMENT:
4.1 A complete Cardholder Enrollment Form must be submitted for each prospective
Cardholder.
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4.2 All prospective Cardholders must attend an orientation session and sign a Cardholder
Agreement Form to be eligible to receive a Purchasing Card. (See Attachment B)
5.0 AUTHORIZED CARD USE:
5.1 A. Cardholders are authorized to use the Purchasing Card to purchase any
merchandise required as a function of their duties at the County with the
exception of the following:
1. Items For Personal Use
2. Items For Non-County Purposes
3. Cash Advances
4. Food and Beverages including Alcoholic Beverages
5. Travel Related Expenses
6. Entertainment
7. Recreation
8. Contracting
9. Gasoline (To be purchased with County Fleet Card.)
10. Motorized Vehicles
11. Capital Equipment
12. Any purchases prohibited by County policy or not related to County
business.
B. Cardholders issued a Purchasing Card specifically for travel-related expenses
are authorized to use the card for hotel accommodations, meals, and car
rental. County travel regulations will govern the allowable limits for all
travel expenses.
5.2 Only the Cardholder whose name is embossed on the Purchasing Card is authorized
to use the card and is responsible for ensuring that all charges made with the card are
in compliance with these Policies and Procedures.
5.3 The total value of any one charge made with the Purchasing Card may not exceed the
single transaction limit stipulated on the Cardholder's Enrollment Form.
6.0 UNAUTHORIZED AND/OR INAPPROPRIATE CARD USE:
6.1 The Purchasing Card must never be used to purchase items for personal use or for
non-County purposes, even if the Cardholder intends to reimburse the County.
6.2 The Purchasing Card shall not be used to supersede blanket orders and other
purchase orders currently in place.
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II
6.3 VIOLATION OF THIS POLICY, INCLUDING UNAUTHORIZED PURCHASES
BY A CARDHOLDER AS DEFINED IN SECTION 5.0, SHALL RESULT IN
CARD CANCELLATION, DISCIPLINARY ACTION UP TO AND INCLUDING
DISMISSAL FROM COUNTY EMPLOYMENT, AND CRIMINAL
PROSECUTION.
7.0 MAKING A PURCHASE WITH THE PURCHASING CARD:
7.1 Confirm that the selected merchant accepts MasterCard. If not, choose another
vendor or submit a requisition to Purchasing so that the purchase can be made via a
Purchase Order.
7.2 When making purchases in person, the Cardholder must sign the charge receipt and
retain the customer copy. The Cardholder should verify that either the charge receipt
or sales receipt complies with the requirements for support documentation set forth
in Section 3.0 (paragraph 3.11).
7.3 When making purchases via telephone, computer, mail order, etc., Cardholders
should give the merchant the account number embossed on their card and direct the
merchant to include the following on the shipping label and/or packing slip:
1. Cardholder name and phone number
2. Division name
3. Complete delivery address, including building name
4. The words "MasterCard Purchase"
Cardholders are encouraged to receive their own shipments; however, if someone
will be receiving a shipment on the Cardholder's behalf, the Cardholder must notify
them in advance. Regardless of who receives the shipment, the Cardholder is
responsible for obtaining all documentation (packing slips, mail order form copies,
etc.) related to the purchase and verifying that the documentation complies with the
requirements for support documentation set forth in Section 3.0 (paragraph 3.11).
8.0 MERCHANDISE RETURNS AND EXCHANGES:
8.1 The Cardholder is responsible for contacting the merchant when merchandise
purchased with the Purchasing Card is not acceptable (incorrect, damaged, defective,
etc.) and arranging a return for credit or an exchange.
8.2 If merchandise is returned for credit, the Cardholder is responsible for obtaining a
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credit receipt from the merchant and retaining that receipt with the documentation for
that purchase. Receiving cash or checks to resolve a credit is prohibited.
8.3 If merchandise must be exchanged, the Cardholder is responsible for returning the
merchandise to the merchant and obtaining a replacement as soon as possible.
Documentation showing the proper resolution of the exchange is to be retained with
the support documentation for that purchase.
8.4 In the event of a return, exchange or other credit transaction, the Cardholder is
responsible for notifying the Card Administrator of any dispute within seven (7)
days.
9.0 RECORD RETENTION:
9.1 Cardholder Responsibility: The Cardholder is responsible for obtaining purchase
documentation from the merchant (sales receipt, packing slip, etc.) to support all
purchases made with the Purchasing Card and verifying that documentation complies
with the requirements for support documentation set forth in Section 3.0 (paragraph
3.11).
Note: In addition to obtaining the documentation, it is recommended that the
Cardholder also record the details of each purchase in a transaction log.
9.2 Card Administrator Responsibility: It is the Card Administrator's responsibility to
assure that all support documentation and the corresponding Cardholder Statement
of Account is retained within the division.
10.0 VERIFICATION OF CHARGES:
10.1 Cardholders are accountable for all charges made with their Purchasing Cards. The
Cardholder or department designee, if applicable, is responsible for checking all
transactions against the corresponding support documentation to verify their accuracy
and propriety. This check should be done regularly using the County's on-line
transaction review system and/or the Cardholder's printed Statement of Account.
10.2 If a particular charge or credit does not appear on-line or on the Statement of
Account, it should be checked against future on-line transaction information and/or
the next Statement of Account. If the charge or credit does not appear within 60 days
after the original charge was made, the Cardholder must notify the Program
Administrator.
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10.3 If the Cardholder disputes a charge, the nature of the dispute and the final
resolution must be documented. This documentation must be retained with the
Statement of Account on which the disputed charge appears. (See Section 11.0)
10.4 After all transactions have been checked, the Cardholder or their supervisor must
sign the Statement of Account. The signed statement and all support documentation
must be forwarded to the Card Administrator.
10.5 The Cardholder is responsible for notifying merchants that County purchases are not
subject to sales tax. A statement regarding the County's tax liability will be provided
to each Cardholder.
11.0 RESOLVING ERRORS, DISPUTES, RETURNS AND CREDITS:
Cardholder: There may be occasions where items on the statement do not correlate
with receipts. The transaction may not have been made by the Cardholder, the
amount may be incorrect or there is a quality issue. In the event of a disputed charge,
the Cardholder must try to resolve the dispute directly with the merchant. If the
merchant agrees that an error has been made, they will credit the account. The
Cardholder or Card Administrator must verify the credit has occurred the following
month. If the Cardholder is unable to resolve the issue, the Program Administrator
must the notified.
11.2 Program Administrator: If the dispute cannot be resolved, the merchant must be
notified in writing that the County is questioning the charge or is dissatisfied with the
purchase. The dispute must also be submitted in writing to Comerica within 60 days
of the date of the statement listing the disputed charge. The inquiry document
submitted to the Comerica Customer Service Department should ask that the charge
be verified or the purchase removed from the account until the dispute is resolved.
12.0 CARD ADMINISTRATOR VERIFICATION OF CARDHOLDER CHARGES:
12.1 The Card Administrator is responsible for reviewing all transactions on a weekly
basis to verify that each transaction is supported by adequate documentation and
meets all the criteria for authorized card use set forth in Section 5.0. In the event of
questionable transactions, the Card Administrator must contact the Cardholder to
obtain an explanation, supporting documentation and/or reimbursement.
12.2 Discrepancies associated with a charge may result from:
1. Insufficient support documentation.
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11.1
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2. Not meeting one or more of the criteria for authorized card use set forth in
Section 5.0.
3. The Cardholder disputing the charge. (See Section 11.0)
All discrepancies must be investigated and resolved. The disposition of each
discrepancy must be documented and retained with the Support Documentation
and/or Statement of Account. Cardholders are accountable for all discrepancies.
Note: If a discrepancy cannot be resolved, the Program Administrator must be
notified. Discrepancies resulting from unauthorized card usage as outlined
in Section 5.0, must also be reported to the Division Manager.
13.0 CHARGE ALLOCATION TO NON-DEFAULT ACCOUNTS:
For any given transaction, the Card Administrator may reallocate the charge from the default
account to several County accounts. If the reallocation option is not exercised by the last
business day of the billing cycle, the total amount of the charge will be posted into the
default account. Reallocation at this point will require a Journal Voucher.
Note: Reallocation to Revenue or Salary accounts is not permitted.
14.0 PURCHASING CARD SECURITY:
14.1 It is the Cardholder's responsibility to safeguard the Purchasing Card and Purchasing
Card account number at all times.
14.2 Cardholders must keep their Purchasing Cards in a secure location at all times.
14.3 Cardholders must not allow anyone else to use their Purchasing Cards and/or
Purchasing Card account numbers.
14.4 Cardholders must not write their Purchasing Card account numbers where they can
be easily seen by others.
15.0 LOST, STOLEN OR DAMAGED PURCHASING CARD:
15.1 If a Purchasing Card is lost, stolen or damaged, the Cardholder must notify the Bank
immediately at 1-800-759-9610. Representatives are available 24 hours a day.
15.2 Cardholders must notify the Program Administrator if their cards are lost, stolen or
damaged within 24 hours after reporting the incident to the Bank.
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15.3 After the above notification procedures have been completed, a new Purchasing Card
will be issued to the Cardholder by the Program Administrator.
15.4 A Purchasing Card that is found after it has been reported lost or stolen must be
destroyed by cutting it in half. The same procedure applies if a card is damaged. Both
card halves must be forwarded to the Program Administrator.
16.0 CARDHOLDER ACCOUNT MAINTENANCE:
Whenever any information contained on a Cardholder's Enrollment Form changes, a revised
Enrollment Form must be completed and signed by the department designee. The revised
Cardholder Enrollment Form is then to be forwarded to the Program Administrator.
17.0 CARDHOLDER TRANSFER OR SEPARATION FROM THE COUNTY:
Prior to transferring from the division or separating from the County, Cardholders must
surrender their Purchasing Cards and corresponding support documentation to the Card
Administrator. If the Cardholder is the Card Administrator, the Purchasing Card and support
documentation must be surrendered to the Cardholder's immediate supervisor. In either case,
the card must be canceled as per the instructions in Section 18.0.
18.0 PURCHASING CARD CANCELLATION:
The Program Administrator must be notified immediately when a Purchasing Card is to be
canceled. The card must be destroyed by cutting it in half. Both card halves must be
forwarded to the Program Administrator.
P.A.1995, NO. 266, EFF. JULY 8, 1996
AN ACT to authorize and regulate credit card transactions involving local units of
government, including the use of credit cards by officers and employees of local
units of government; and to provide for powers and duties of certain state and
local agencies, officers, and employees.
<The People of the State of Michigan enact:>
129.241. Definitions [MSA 5.3229(241)1
Historical Notes
Sec. 1. As used in this act:
(a) "Budget" means a plan of financial operation for a given period of time, including an
estimate of all proposed expenditures from the funds of a local unit and the proposed
means of financing the expenditures. As used in section 4(1), 1 budget does not include
any of the following:
(i) A fund for which the local unit acts as a trustee or agent.
(ii) An intragovemmental service fund.
(iii) An enterprise fund.
(iv) A public improvement or building and site fund.
(v) A special assessment fund.
(b) "Credit card" means a card or device issued under a credit card arrangement by a
person licensed under Act No. 379 of the Public Acts of 1984, being sections 493.101 to
493.114 of the Michigan Compiled Laws, by a person licensed under the consumer
financial services act, Act No. 161 of the Public Acts of 1988, being sections 487.2051 to
487.2072 of the Michigan Compiled Laws, or by a depository financial institution as
definition section la of the mortgage brokers, lenders, and servicers licensing act, Act
No. 173 of the Public Acts of 1987, being section 445.1651a of the Michigan Compiled
Laws.
(c) "Credit card arrangement" means an unsecured extension of credit for purchasing
goods or services from the credit card issuer or any other person that is made to the
holder of a credit card and that is accessed with a credit card.
(d) "Credit card policy" means a policy adopted by resolution of a local unit under section
3 . 2
(e) "Governing body" means any of the following:
(i) The council, commission, or other entity vested with the legislative power of a village.
(ii) The council or other entity vested with the legislative power of a city.
(iii) The township board of a township.
(iv) The county board of commissioners of a county.
(v) The board of county road commissioners of a county.
(vi) The board of education of a local school district.
Copyright (c) 1997 West Group
(vii) The board of education of an intermediate school district. -
(yid) The board of trustees of a community college district.
(ix) The official body to which is granted general governing powers over an authority or
organization of government established by law which may issue obligations pursuant to
Act No. 202 of the Public Acts of 1943, and which may expend funds of the authority or
organization.
(i) "Local school district" means a school district organized under the school code of
1976, Act No. 451 of the Public Acts of 1976, being sections 380.1 to 380.1852 of the
Michigan Compiled Laws, or a district governed by a special or local act.
(g) "Local unit" means any of the following:
(i) A village.
(ii) A city.
(iii) A township.
(iv) A county.
(v) A county road commission.
(vi) A local school district.
(vii) An intermediate school district.
(viii) A community college district.
(ix) An authority or organintion of government established by law which may issue
obligations pursuant to Act No. 202 of the Public Acts of 1943, and which may expend
funds of the authority or organization.
Copyreght (c) 1997 West Group
129.242. Local units of government; credit card arrangements; exclusion from
municipal finance act [MSA 5.3229(242)1
Sec. 2. (1.) Subject to sections 3 and 5, I the governing body of a local unit may enter into
a credit card arrangement.
(2) A credit card arrangement or the use of credit cards under this act is not subject to the
municipal finance act. Act No. 202 of the Public Acts of 1943, being sections 131.1 to
- • 139.3 of the Michigan Compiled Laws, or to provisions of law or charter concerning the
issuance of debt by a local unit.
FOOTNOTE 1. Sections 129.243 and 129.245.
CREDITS
P.A.1995, No. 266, § 2, Eff. July 8, 1996.
129.243. Written policies regarding credit card transactions, contents; adoption by
local units of government [MSA 5.3229(243)1
Sec. 3. A local unit shall not be a party to a credit card arrangement unless the governing
body of the local unit has adopted by resolution a written policy that provides all of the
following:
(a) That an officer or employee designated by the credit card policy is responsible for the
local unit's credit card issuance, accounting, monitoring, and retrieval and generally for
overseeing compliance with the credit card policy.
(b) That a credit card may be used only by an officer or employee of the local unit for the
purchase of goods or services for the official business of the local unit. In addition, the
credit card policy may limit the specific official business for which credit cards may be
used. This subdivision does not limit the applicability of chapter XXIVA or section 174,
175, 219a, or 490a of the Michigan penal code, Act No. 328 of the Public Acts of 1931,
being sections 750.157m to 750.157w, 750.174, 750.175, 750.219a, and 750.490a of the
Michigan Compiled Laws; section 1 a of the code of criminal procedure, Act No. 175 of
the Public Acts of 1927, being section 769.1a of the Michigan Compiled Laws; or any
other law, or ordinance, applicable to use of a credit card, issued by a local unit, for other
than official business of the local unit.
(c) That an officer or employee using credit cards issued by the local unit shall submit to
the local unit documentation described in the credit card policy detailing the goods or
services purchased, the cost of the goods or services, the date of the purchase, and the
official business for which purchased.
(d) That an officer or employee issued a credit card is responsible for its protection and
custody and shall immediately notify the local unit if the credit card is lost or stolen.
(e) That an officer or employee issued a credit card shall return the credit card upon the
termination of his or her employment or service in office with the local unit.
(f) For a system of internal accounting controls to monitor the use of credit cards issued
by the local unit.
• (g) For the approval of credit card invoices before payment.
(h) That the balance including interest due on an extension of credit under the credit card
Copyright (e) 1997 West Group
arrangement shall be paid for within not more than 60 days of the initial statement date.
The local unit shall comply with this provision of the credit card policy.
(i) For disciplinary measures consistent with law for the unauthorized use of a credit card
by an officer or employee of the local unit.
(j) Any other matters the governing body considers advisable.
CREDITS
P.A.1995, No. 266, § 3, Eff. July 8, 1996.
129.244. Authorized credit limits; payments [MSA 5.3229(244)1
Sec. 4. (1) The total combined authorized credit limit of all credit cards issued by a local
unit shall not exceed 5% of the total budget of the local unit for the current fiscal year.
(2) The governing body of a local unit may include in its budget and pay the balance due
on any credit cards, including the annual fee and interest.
CREDITS
P.A.1995, No. 266, § 4, Eff. July 8, 1996.
129.245. Department of treasury, issuance of orders limiting or suspending use of
credit cards; hearings [MSA 5.3229(245)]
Sec. 5. After a hearing conducted under the administrative procedures act of 1969, Act
No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michigan
Compiled Laws, the department of treasury may issue an order limiting or suspending the
authority of a local unit to issue and use credit cards under this act for failure to comply
with the requirements of this act or with the requirements of the local unit's credit card
policy.
CREDITS
P.A.1995, No. 266, § 5, Eff. July 8, 1996.
129.246. Validity, credit card arrangements entered into before effective date of act
[MSA 5.3229(246)1
Sec. 6. A credit card arrangement entered into by a local unit before the effective date of
this act is valid but may not be used for credit card transactions on or after the effective
date of this act unless the requirements of sections 3 and 4 I are complied with.
FOOTNOTE 1. Sections 129.243 and 129.244.
CREDITS
P.A.1995, No. 266, § 6, Eff. July 8, 1996.
Copyright (c) 1997 West Group
129.247. Effective date (MSA 53229(247)1
Historical Notes
Sec. 7. This act shall take effect 6 months after the date of its enactment.
CREDITS
P.A.1995, No. 266, § 7, Eff. July 8, 1996.
HISTORICAL AND STATUTORY NOTES
HISTORICAL AND STATUTORY NOTES
PA.1995, No. 266, was ordered to take immediate effect, and was approved January
7, 1996 and filed January 8, 1996.
Copyright (c) 1997 West Group
OAKLAND COUNTY
Purchasing Card Program
Cardholder Agreement
I, (employee name) , as the Cardholder, agree to the following
conditions regarding my use of the Oakland County Purchasing Card:
1. I understand that by using the Purchasing Card, I will be making financial commitments
on behalf of Oakland County and that the County will be liable for all charges made with
the Purchasing Card.
2. I will strive to obtain the best value for the County when purchasing merchandise and/or
services with the Purchasing Card.
3. I agree to use the Purchasing Card only for authorized purchases and in an appropriate
manner, as defined in the Purchasing Card Program Policies and Procedures.
4. I agree to reimburse Oakland County for any unauthorized purchases.
5. I understand that should I make an unauthorized purchase with the Purchasing
Card or use the Purchasing Card in an inappropriate manner, I will be subject
to disciplinary action including card cancellation, termination of employment
at the County and criminal prosecution.
6. I understand that the county will monitor and audit my use of the Purchasing Card.
7. I agree to return the Purchasing Card to my supervisor at Oakland County as defined in
the Purchasing Card Program Policies and Procedures, immediately upon the request of
the Purchasing Card Program Administrator or upon my transfer to a different department
or upon termination of my employment at Oakland County
8. I have received a copy of the Oakland County Purchasing Card Program Policies and
Procedures and will abide by all the requirements set forth in said document.
9. I agree to turn in documentation regarding purchases to my supervisor or department
designee on a timely basis.
10. I understand the County as a governmental agency is exempt from sales tax.
My signature below indicates that I have read this agreement, understand it and agree to be
bound by it, and any subsequent amendments or addenda, for as long as I am a Purchasing
Cardholder at Oakland County.
Employee Date
cc. Contract Administrator
Division Manager
Personnel - Employee Records Unit
Report to Finance Committee
By: Management and Budget .
RE: Oakland County Purchasing Card Pilot Program
June 28, 1999
The following recommendations are based on a review by representatives of the Oakland County
Treasurer, Facilities Maintenance & Operations Division, Purchasing Division and Fiscal
Services Division.
A three year contract will be entered into with Comerica for Purchase Card Services.
Facilities Maintenance & Operations Division has been chosen for the pilot program under the
direction of the Purchasing Division. Up to ten employees of the division will be assigned
purchasing cards. The pilot program will run for three months.
Use of the cards will be limited. Participants must receive their supervisor's approval prior to
purchase. Purchases will be limited to individual items less than $500 with a daily maximum of
$1,000. The monthly maximum will be $10,000.
Implementation of the pilot program will begin upon approval of the Board of Commissioners.
After three months, policies, procedures, spending limits, and general program design will be
reviewed to determine program effectiveness and modifications will be made as necessary.
OAKLAND,
COUNTY MICHIGAN
L. BROOKS PATTERSON — COUNTY EXECUTIVE
OAKLAND COUNTY
PURCHASING DIVISION
MANAGEMENT AND BUDGET
SNG
OAKLAND COUNTY DEPARTMENT OF MANAGEMENT AND BUDGET
Purchasing Division
PROFESSIONAL SERVICE CONTRACT NUMBER BP00
Contract Expiration Date: 6/30/01
Contract - NOT TO EXCEED AMOUNT $
§ 1 PARTIES.. THIS CONTRACT, made this day of , between the COUNTY OF OAKLAND, a
Michigan Constitutional Corporation, hereinafter called "County" , and COMERICA , hereinafter
called "Contractor".
COMERICA
411 W. LAFAYETTE
DETROIT, MI 48226
38-0477375
(herein the "Contractor")
COUNTY OF OAKLAND
1200 N. Telegraph Road
Pontiac, MI 48341-0047
(herein, and as further defined elsewhere
in this Contract, the "County")
§ 2 CONSIDERATION. In consideration of the mutual promises, obligations, representations,
assurances, and agreements in this Contract, County and the Contractor each agrees to be
bound by the terms and conditions in this Contract.
§ 3 SCOPE OF CONTRACT.
1. CARD ISSUANCE: Contractor shall deliver Cards to the County, each of which will
be uniquely encoded for use by an individual employee, or in connection with a specific
vehicle. The County will be responsible for distributing the Cards unless the
Contractor and the County agree otherwise.
2. DOCUMENTATION: At least weekly, the County will be provided an aggregate statement
for all Card Debt incurred during the monthly billing period for all Cards, and individual
statements reflecting Transactions effected with each Card. Such statements may be
provided in electronic or paper format. In addition, upon reasonable request and for the
OAKLAND COUNTY DEPARTMENT OF MANAGEMENT AND BUDGET-PURCHASING DIVISION -PROFESSIONAL
SERVICES CONTRACT NUMBER BP00
Page 1
ORAFT.WPD
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COAMAND Or"
COUNTY MICHIGAN
L. BROOKS PATTERSON — COUNTY EXECUTIVE
OAKLAND COUNTY
PURCHASING DIVISI014
additional fees set forth in Exhibit B, Contractor will provide additional
summaries of Transactions to the extent they are available.
3. TRANSACTION AND CARD DEBT LIMITS:
a. Transaction Limits: Each Card shall be assigned limits on the amount of
each Transaction, and on the types of Transactions for which it may be used, as
set forth in the Enrollment Form completed by Oakland County and the
Contractor. The Contractor will not authorize or permit cardholders to conduct
Transactions inconsistent with the Transaction Limits. Any change in Transaction
Limits must be documented in an Enrollment Form submitted by a Program
Administrator.
b. In the rare event that the processing system used by the Contractor in processing
Transactions is interrupted for any reason, MasterCard will, without notice,
authorize Transactions under $500 in value, regardless of any otherwise
applicable Transaction Limits.
4. SOFTWARE: At the County's option, subject to any additional fees set forth in
Exhibit B, the Contractor will install Tracer software licensed to the Contractor by EDS
and any updates provided by the Contractor (the "Software") at a location
designated by the County approved by the Contractor, in order for theCounty to
view Transactions summaries and reports of Card Debt.
a. Technical Support and Updates. The County may request technical
support services from the Contractor, which the Contractor will provide as
available at the Contractors then-current technical support fees, if any. The
Contractor may also provide the County with updates to the Software as
they become available. There may be a charge for such updates.
b. Password and Security. The password the County selects will allow
the County to use the Software and access account information on the
reporting system.
c. All software and hardware supplied as part of any bid for Oakland County must
be certified by the vendor to properly and accurately process through and beyond
the year 2000 (century change) WITHOUT modification or
Intervention on the part of the vendor or Oakland County personnel.
5. SETTLEMENT:
a. Fees. The County agrees to pay the Contractor the fees described in Exhibit B.
b. Payment of Card Debt.: The County agrees to pay outstanding Card Debt
in full at the times agreed upon.
c. Debiting of Account:. The Contractor will debit the account periodically, as
agreed upon for Card Debt posted the previous period.
OAKLAND COUNTY DEPARTMENT OF MANAGEMENT AND BUDGET-PURCHASING DIVISION -PROFESSIONAL
SERVICES CONTRACT NUMBER BP00
Page 2
IlroAKLAND Or"'
COUNTY MICHIGAN
L. BROOKS PATTERSON — COUNTY EXECUTIVE
OAKLAND COUNTY
PURCHASING DIVISION
6. PROGRAM ADMINISTRATOR: The County will appoint one or more of its
employees as Program Administrator(s), and identify such employees. The Contractor
will only honor written requests by Program Administrator(s) for changes to the Services,
including a request for a change in the Transaction Limit, or designation of persons
newly authorized, or no longer authorized, to use a Card. Any changes in the
Program Administrator(s) must be made in a written amendment.
7. SUPPORT AND TRAINING IN PILOT PHASE: At the County's request, The
Contractor will assist the County in implementing the Services throughout the use of
an initial "Pilot Phase" in which a limited number of Cards will be issued to Oakland
County for up to six month, unless the Contractor agrees in writing to a longer Pilot
Phase. The Contractor will provide 15 days notice prior to terminating the Pilot
Phase. During the Pilot Phase the Contractor will:
a. Provide the services of a Treasury Management technology support
employee ("Support Person") to install the Software at the County's location
designated by the County and
b. Provide a Support Person to meet with and coordinate and develop the
Pilot Phase Services and eventual full implementation of the Services.
§ 4 CONTRACT TERM. The term of this Contract begins July 1, 1999 , and unless otherwise
terminated earlier, or amended, ends at 11:59:59 P.M. on the "Contract Expiration Date," shown
on the first page of this Contract, at which time this Contract expires without any further act or
notice of either Party being required. Except as otherwise expressly provided for herein, this
Contract and/or any proposed amendments to this Contract, shall not be effective or binding, and
no payments shall be due or made to Contractor for any Services until and unless:
4.1. The Contractor has represented to the County the following facts as an
inducement to enter into this agreement and declares such statements to be
true:
Contractor warrants that all services performed hereunder will be performed in a
manner that complies with all statutes, regulations, ordinances, professional
standards applicable to the services provided;
The Contractor pays, and will continue to pay, its own local, state and federal
taxes, including without limitation, social security taxes, and unemployment
compensation taxes, and will file its own annual and/or quarterly tax returns with
the proper federal, state and local authorities;
The Contractor will provide and maintain its own worker's compensation
insurance, general liability insurance, automobile insurance and medical
malpractice insurance as may be needed;
The Contractor maintains and will continue to maintain all applicable business
and professional licenses necessary to provide the services contracted for;
That Contractor maintains a business office at the address listed above;
That the Contractor will not seek employment as an employee of the County
during the term of the contract;
That the Contractor has undertaken a significant investment in its business and in
the good will of its enterprise;
OAKLAND COUNTY DEPARTMENT OF MANAGEMENT AND BUDGET-PURCHASING DIVISION -PROFESSIONAL
SERVICES CONTRACT NUMBER aPoo
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DRAFT WPO
COAKLAND-w- OAKLAND COUNTY
L. BROOKS PATTERSON — COUNTY EXECUTIVE
_ C OUNT Y MICHIGAN PURCHASING DIVISION
That nothing in this agreement is intended to establish an employer-employee AiON
" relationship with the County.
§ 5 CONTRACTOR RELATIONSHIP That the Contractor's relationship to the County is that of an
Independent Contractor. This Contract shall not cause the County to be liable for, or Contractor
to accrue, benefits such as, but not limited to, Worker's Compensation, retirement, pension,
vacation pay, sick pay, merit increases, annual leave days, promotion, disability pay, insurance of
any kind, or any other rights or liabilities arising out of a contract of hire or employer-employee
relationship.
§ 6 INDEMNIFICATION The Contractor shall indemnify and hold the County harmless from any and
all actions, liabilities, claims, loss and damage (including costs of litigation and actual attorney
fees) alleged to have been caused by, or to have arisen, directly or indirectly, from the acts,
performances, negligence, malpractice, errors or omissions of the Contractor or the Contractor's
assistants, employees or agents, including without limitation, all claims relating to injury or death
of any person or damages to any property.
§ 7 CONFLICT OF INTEREST Pursuant to the provision of Public Act 317 or 1968, as amended
(MCL 15.321, et seq.), no contracts shall be entered into between the County including all
agencies and departments thereof, and any employee or officer of the County. To avoid any real
or perceived conflict of interest, the Contractor shall identify any relative or relative of the
Contractor's employees and subcontractor who are presently employed by the County. Nothing
contained in this provision limits or is intended to limit in any way the Contractor's right to offer and
provide its services to the general public or other business entities, municipalities or governmental
agencies, during or after the term of this agreement, or from working for more than one firm, entity
or agency during the term of this agreement. The Contractor may provide services to others
during the periods when the Contractor is not engaged in performing services for the County.
This agreement is a non-exclusive agreement, and the County may engage other independent
contractors to perform the same work which the Contractor performs.
§ 8 IN KIND SERVICES This contract does not authorize any in-kind services unless previously
agreed by the County and specifically listed herein.
§ 9 AUDIT The Contractor shall allow the County's Auditing division to perform financial and
compliance audits as appropriate with the authority to access all pertinent records and interview
any of the Contractor's employees throughout the term of the Contract and for a period of three
years after final payment to ensure a complete post-evaluation of services.
§ 10 CONTRACTOR RESPONSIBILITIES The Contractor is responsible for providing
equipment and supplies not otherwise provided by the County.
10.1 The Contractor shall have the right and duty to exercise control and supervision
over the immediate job site and work area where the Contractor's services are
rendered to the extent necessary to accomplish the job specifications/services set
forth in this Agreement.
10.2 In the event the Contractor is unable to perform the job specifications/tasks as
required under this Agreement at the time (or for any period of time) in which
performance is due, the Contractor remains solely responsible for continued
performance which includes, but is not limited to, the retention of an assistant to
substitute for and complete the Contractor's services. The Contractor must notify
OAKLAND COUNTY DEPARTMENT OF MANAGEMENT AND BUDGET-PURCHASING DNISION -PROFESSIONAL
SERVICES CONTRACT NUMBER BP00
ItaaINS.
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COAKLAND=-
- • L. BROOKS PATTERSON — COUNTY EXECUTIVE
OAKLAND COUNTY
COUNTY MICHIGAN PURCHASING DIVISION
the contract administrator in the event Contractor is unable to perform such t FA)
services when due.
Any and all assistants employed by the Contractor are employed at the
Contractor's own expense (including taxes and insurance) and the Contractor
remains solely responsible for and fully liable for the conduct and supervision of
any assistant it employs. Contractor warrants that any services performed by
Contractor's assistants shall fully comply with the terms of this agreement and
shall be of the same quality of service as Contractor has customarily provided to
the County. All assistants employed by the Contractor shall be deemed
employees of the Contractor and not employees, agents or sub-contractors of the
County.
10.3 The Contractor shall be responsible and liable for all costs and expenses incident
to the performance of services for the County including, but not limited to
professional dues, association fees, license fees, fines and penalties.
The County shall not be liable for any expenses incurred by the Contractor in
performing services for the County.
§ 11 ACCESS TO COUNTY FACILITIES While the Contractor retains the right to perform services
at any time, any services which require access to County facilities may only be performed during
the County's regular business hours.
§ 12 CONTRACT AUTHORIZATION This Contract is signed by an authorized agent of the Oakland
County Purchasing Division, as provided for in on the signature page of this Contract, who shall
be the final signatory to this Contract and/or any amendment thereto.
§ 13 CONTRACT EXTENSION Except as otherwise expressly provided for in this section, the Parties
are under no obligation to renew or extend this Contractafter Contract Expiration Date.
§ 14 CONTRACT MODIFICATIONS:
Arty modifications to the contract must be in writing and agreed to by both parties:
§ 15 NON-DISCRIMINATION
In connection with the performance of Work under this contract, the Contractor agrees not to
discriminate against any employee or applicant for employment because of sex, race, religion,
color, national origin, or handicap. The aforesaid provision shall include, but not be limited to the
following: recruitment or recruitment advertising; employment, upgrading, demotion or transfer;
layoff and selection for training, including apprenticeship, in accordance with rules and regulations
promulgated by the Federal (Compliance Responsibility for Equal Employment Opportunity --
Chapter 60, 60-1, 4, No. 1-7) and State (Standards and Procedures for Executive Directive 1975-
6, Section II-C, IV-C, and V-A&B) agencies and related Federal and State laws and regulations.
OAKLAND COUNTY DEPARTMENT OF MANAGEMENT AND BUDGET-PURCHASING DIVISION -PROFESSIONAL
SERVICES CONTRACT NUMBER BP00
•n••••n....
Page 5
L. BROOKS PATTERSON — COUNTY EXECUTIVE
OAKLAND COUNTY mr,,,—• • Imams—so IN mov var mkor may • • •
PURCHASING DIVISION.16 COAKLAND,
COUNTY MICHIGAN
§ 16 PAYMENT The County agrees that it will:
Pay to the Contractor: All fees waived per attachement "B". The annual expenditure against this
contract shall not exceed S. The County reserves the right to make partial payments on account
Of the amount due the Contractor as the work progresses. On or before the 15th of each month
the Contractor shall submit to the Contract Administrator, an invoice for payment for the work
performed during the preceding month. The County shall have no obligation to make payment
until a proper invoice of service is submitted.
§ 17 CONTRACT TERMINATION The County has the right, as its option, to terminate this
agreement, upon thirty days written notice, in the event the Contractor defaults in the performance
of the agreement, or breaches any term of this agreement. The County's obligation in the event of
termination is for payment for actual services rendered until the Contractor is notified of
termination, or for services actually rendered during the period of notice after notice is served. In
the event of termination, the County is not obligated for payment for the duration of the term of the
agreement unless such term is less than 30 days at the time notice of termination is given.
17.1 The Contractor has the right, as its option, to terminate this agreement by giving written
notice to the County in the event the County defaults in the performance of the
agreement, or breaches any term of this agreement. A default in performance and/or
breach of this agreement shall include, but is not limited to the following: (I) failure to cure
a default in payment within 30 days after Contractor provided written notification of
default.
§ 18 GOVERNING LAWS This Agreement shall be governed by the laws of the State of Michigan.
§ 19 ENTIRE AGREEMENT. This Contract sets forth the entire Contract and agreement between the
Parties concerning the subject matter hereof. In entering into this Contract, the Contractor
acknowledges that it has not relied upon any prior or contemporaneous agreement,
representation, warranty, or other statement by the County and/or any County Agent that is not
expressly set forth in this Contract, and that any and all such possible, perceived or prior
agreements, representations, understandings, statements, negotiations, understandings and
undertakings, whether written or oral, in any way concerning or related to the subject matter
hereof are fully and completely superseded by this Contract. It is further agreed that the terms
and conditions herein are contractual and binding and are not a mere recital and that there are no
other agreements, understandings, contracts, or representations between the Contractor and
either the County, and/or any County, or Agent, in any way related to the subject matter hereof
which affect any contractual relationship between the Parties except as expressly stated herein.
For and in consideration of the mutual assurances, promises, acknowledgments, warrants,
representations, and agreements set forth in this Contract, and for other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, the undersigned
hereby execute this Contract on behalf of the County and the Contractor, and by doing so legally
obligate and bind the County and the Contractor to the terms and conditions of this Contract.
OAKLAND COUNTY DEPARTMENT OF MANAGEMENT AND BUDGET-PURCHASING DIVISION -PROFESSIONAL
SERVICES CONTRACT NUMBER BP00
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.61\
DATE:
COM:LAND ir•••n•
MIIMINn11
COUNTY MICHIGAN
FOR THE CONTRACTOR:
BY:
L. BROOKS PATTERSON — COUNTY EXECUTIVE
OAKLAND COUNTY •
PURCHASING DIVISION
appeared in person before me on this date and executed this
Contract on behalf of the Contractor and acknowledged to me under oath that:
has taken all actions and secured any and all necessary approvals
and authorizations and has the requisite authority from the Contractor to fully and completely obligate and
bind the Contractor to the terms and conditions of this Contract and any and all other documents
incorporated herein by reference, also acknowledged before me
having been provided with copies and having read and reviewed all Contract documents incorporated
herein.
Subscribed and sworn to before me on the day of , 1999.
Notary Public
County, Michigan
My Commission Expires:
FOR OAKLAND COUNTY PURCHASING:
BY: DATE:
Oakland County Purchasing Division
BY: DATE:
Contract Administrator
OAKLAND COUNTY DEPARTMENT OF MANAGEMENT AND BUDGET-PURCHASING DIVISION -PROFESSIONAL
SERVICES CONTRACT NUMBER BP00
Page 7
ORAFT.WPD
) •
Resolution #99168 July 15, 1999
Moved by Douglas supported by Garfield the resolution be adopted.
Moved by Garfield supported by Millard the resolution be amended, in the
Purchasing Card Policies & Procedures, 10.0, VERIFICATION OF CHARGES:, by adding
the following:
10.6 All purchase documentation must be submitted by the Cardholder to
the Card Administrator within 30 days of transaction.
Chairperson McCulloch, as a friendly amendment, added the following
language to the Cardholder Agreement:
9. I agree to turn in documentation regarding purchases to my
supervisor or department on a timely baoia within 30 days of
purchase.
A sufficient majority having voted therefor, the amendment carried.
Vote on resolution, as amended:
AYES: Galloway, Garfield, Gregory, Jensen, Law, McCulloch, Melton,
Millard, Moffitt, Obrecht, Patterson, Schmid, Sever, Suarez, Amos,
Causey-Mitchell, Devine, Dingeldey, Douglas. (19)
NAYS: McPherson, Taub, Colasanti. (3)
A sufficient majority having voted therefor, the resolution, as amended,
was adopted.
•elen•nrn•nese.....---
1-VE
7-"OfiEGOiNG FiESOLUT!ON
Date
Brooke Pa son. ow" xecutive
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the
foregoing resolution is a true and accurate copy of a resolution adopted by the
Oakland County Board of Commissioners on July 15, 1999 with the original record
thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the
County of Oakland at Pontiac, Michigan this 15th damefof July, 1999.
V William Caddell, County Clerk