HomeMy WebLinkAboutC17-391 UMB BankBackground. UMB Bank, n.a. ("UMB") has established purchasing card programs with various
school districts, counties, cities and other public institutions in the State of Colorado, and has
established a Colorado public sector purchasing card consolidated pricing program (the
"Program") in which participating Colorado entities ("Participants") can receive the benefit of
combined purchasing card program volumes to receive higher rebates than Participants would
otherwise receive based on each Participant's separate purchasing card volume.
Based on UMB's recent review of current Participant rebate levels, UMB is updating the
Program's combined entity volume tiers to reflect the Program growth over time, and to increase
the rebates applicable to particular levels of purchasing card volumes that may be earned by
Participants under the Program. UMB has also added a feature that will pay Participants an
individual rebate bonus based on the volume of the Participant's own Card volume. Finally,
UMB has updated the rebate schedule to include more recent Card Association policy initiatives
that create certain lower interchange levels for certain Qualified Large Ticket transactions, which
lower levels will be reflected in rebate payments to Participants.
The Participant's execution of this Amendment will constitute the Participant's agreement to
change its current contract with UMB to substitute the rebate schedule set forth as an exhibit to
this Amendment for the Participant's current rebate schedule set forth in the Participant's
purchasing card contract with UMB.
Amendment
This AMENDMENT ("Amendment") is made to the Purchasing Card Agreement between Eagle
County , a Colorado public entity (the "Participant"), and UMB BANK, n.a., a national banking
association ("UMB"). This Amendment will be effective as of January 1, 2017 (the "Effective
Date"), and supersedes those portions of the Participant's purchasing card agreement with UMB
that are inconsistent with this Amendment.
In consideration of the foregoing, including the Background set forth above, UMB and the
Participant hereby agree as follows.
As of the Effective Date set forth above, the attached Amended Revenue Sharing Exhibit is
hereby effective under the Participant's purchasing card agreement with UMB.
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C17-391
Amendment. to Purchasing Card Agreement (continued)
UMB:
UMB BANK, n.a.
Shannon Stanfield
Assistant Vice President
Date signed:
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PARTICIPANT:
Eagle County
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sy:
Name: B an Treu
Title: Interim County Manager _
Date signed: 11/29/2017
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Amendment to Purchasing Card Agreement (continued)
REVENUE SHARING OR REBATE PROGRAM
UMB Bank pays a rebate rate on qualified sales volume (purchases, less credits and refunds),
payable on an annual basis, without reserves or minimum volume guarantees, based on the
total of all qualified sales of the participants in the UMB Bank Public Sector Purchasing Card
Consolidated Pricing Group. Payment of a rebate may be affected by a Participant's late
payments.
The following rebate levels are effective as of January 1, 2017.
For all qualified sales volumes (purchases, less credits and refunds), the rates of rebate are
listed in the table below. The left side of the table shows the rebate level applicable to combined
Program qualified sales volume, and paid against the individual Participant's volume. The right
side of the table shows individual Participant program bonus rebates (in addition to the
combined Program volume rebate levels) that can be earned based on each Participant's
individual Program qualified sales volume. There is no minimum volume level to qualify for a
rebate. Rebates may be diminished to take into account Qualified Large Ticket Transactions.
See the discussion below.
Tiers
RebateVolume
Program Size bonus
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$0 to
$24,999,999
1.18%
0.05%
0.08%
0.10%
$25,000,000 to
$74,999,999
1.25%
0.05%
0.08%
0.10%
$75,000,000 to
$124,999,999
1.35%
0.05%
0.08%
0.10%
$125,000,000 to
$174,999,999
1.38%
0.05%
0.08%
0.10%
$17S,000,000 to
$249,999,999
1.40%
0.05%
0.08%
0.10%
$250,000,000 to
$349,999,999
1.42%
0.05%
0.08%
0.10%
$350,000,000 to
$399,999,999
1.45%
0.05%
0.08%
0.10%
$400,000,000 to
$449,999,999
1.48%
0.05%
0.08%
0.10%
$450,000,000 to
$499,999,999
1.50%
0.05%
0.08%
0.100/0
$500,000,000 and above
1.55%
0.05%
0.08%
0.10%
For example, assume for an annual period the combined Program qualified sales volume was
$142,000,000 and an individual Participant's qualified sales volume for the same period was $5,500,000.
Assume that there were no Qualified Large Ticket Transactions. The individual Participant's rebate would
be calculated as follows: $5,500,000 x 1.38% _ $75,900 (the Participant's rebate at the combined volume
rate). The Participant's volume bonus would be $5,500,000 x .08% = $4,400. Total rebate is $75,900 +
$4,400 = $80,300.
Qualified Large Ticket Transactions
Qualified Large Ticket Transactions will be deducted from the individual Participant's qualified sales
volume for the purpose of calculating the Participant's rebate on combined volume and the Participant's
volume bonus for an annual period.
The term "Qualified Large Ticket Transaction" means certain transactions, qualified and determined by
Visa, in Visa's sole and absolute discretion, which are subject to non-standard interchange rates. Under
the current Visa Large Ticket Transaction rates, individual Participants will receive 50 basis points (.50%)
on their Net Purchase Volume of Qualified Large Ticket Transactions, that is, the total volume of Qualified
Large Ticket Transactions, minus credits and cash advances (if applicable), for all Participant's Qualified
Large Ticket Transactions in an annual period.
By way of example, assume the combined Program qualified sales volume for an annual period was
$142,000,000, with the individual Participant's qualified sales volume for the same period at $5,500,000,
of which $500,000 was Qualified Large Ticket Transactions.
The individual Participant's rebate would be calculated as follows: The Large Ticket portion of the rebate
is calculated as follows: $500,000 x 0.50°Io = $2,500. The regular rebate based on the total qualified
sales volume is calculated as follows: $5,500,000 in total qualified sales volume minus $500,000 (the
Participant's qualified large tioket transactions) equals $5,000,000. That amount times 1.38% = $69,000,
which is the Participant's rebate at the combined volume rate, excluding large ticket transactions. The
Participant's individual volume bonus is $5,000,000 times 0.08%, or $4,000. Total rebate equals $2,500
plus $69,000 plus $4,000, or $75,500.
The above rebates apply unless substantial changes are imposed in applicable bankcard interchange
reimbursement rates set by Visa, or if Visa reduces interchange with respect to transactions involving
merchants that participate in a Visa Partner Pricing Program or introduces other less well compensated
incentive programs that reduce the volume of transactions that are compensated at standard interchange
levels. Under those conditions, UM reserves the right to modify the rebate formulas.
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