ADMINISTRATIVE COMMITTEE
7.	NOTIFICATION ON CHANGE OF VENDOR FOR CREDIT CARD SERVICES
Meeting Date:		September 12, 2011	Budgeted:	N/A
From:		David J. Stoldt,	Program/
		General Manager	Line Item No.: N/A
Prepared By:		Suresh Prasad	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: This is an informational item only, no action is required.
CEQA Compliance: N/A

SUMMARY: The District currently uses credit cards issued by Wells Fargo Bank for small purchases as a convenience to District staff. There are some vendors which only accept credit card as a form of payment. Staff would like to change the credit card vendor from Wells Fargo Bank and join the State of California Purchase Card Program (Cal-Card). The Cal-Card is a purchase card issued by US Bank. The purchase cards use are identical to credit cards and are honored where ever VISA cards are accepted.

RECOMMENDATION: This is an information item only, no action is required.

BACKGROUND: The District currently utilizes credit cards issued by Wells Fargo Bank for small purchases as a convenience to staff. There are some vendors which only accept credit cards as a form of payment. There are currently two credit cards issued to the District; one card is issued to the General Manager, the other card is issued to the Administrative Services Manager/Chief Financial Officer. Staff would like to change the credit card vendor and join the State of California Purchase Card Program (Cal-Card). The purchase cards are issued by US Bank. The Cal-Card program was created for state and local government agencies to provide VISA purchase card services. There are several benefits to joining the Cal-Card program:

· no annual fee

· 45-days payment term (additional 45 day grace period before cards are deactivated)

· no-interest on outstanding balance

· rebate incentive for money spent using the purchase card and additional rebate incentives for prompt payment within 45 days

EXHIBITS

None

U:\staff\word\committees\Admin\2011\20110912\07\item7.docx