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HomeMy WebLinkAbout5/17/2022 Item 6b, Elke - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum City of San Luis Obispo Council Agenda Correspondence DATE: May 17, 2022 TO: Mayor and Council FROM: Brigitte Elke, Finance Director VIA: Derek Johnson, City Manager SUBJECT: Item 6b – Update to Financial Management Manual Section 202 – Purchasing Policy Staff received the following request clarifications, regarding sections to the update and this memorandum serves to clarify questions that have come up for item 6b – Update to Financial Management Manual Purchasing Policy. Staff would like to also clarify that extensive edits were made to the 2018 Purchasing Policy (Resolution 10888), and staff provided Council with a summary of the changes and a redlined version (Exhibit F) of the changes for review. Unfortunately, staff did not provide the final redline version which is now linked below. Redline Changes - Purchasing Policy 2018 v. 2022 Update.docx Due to the large number of administrative changes made, staff provided a summary of the changes to assist Council in reviewing each modified section. (Agenda report p. 1181) Clarification to Change to Approval Thresholds The recommendation is to reduce the applicable purchase types from five (5) to three (3) to increase process and system efficiencies while maintaining fiduciary control. Furthermore, the approval thresholds are recommended as follows: Item 6b – Staff Agenda Correspondence Page 2 APPROVAL THRESHOLDS General Services & Consulting Combined to ‘Professional Services” Item 6b – Staff Agenda Correspondence Page 3 Local Preference Based on the information provided in the Council Agenda Report that highlights best practices recommended by professional organizations such as Government Finance Officers Association, International City and County Managers Association, the Council of State Governments, and the National Institute of Government Procurement, staff does not recommend Council adopt a local preference policy beyond what is currently in Municipal Code 3.24.060E Sections Added The City Manager directed staff to review the City’s contract templates and applicable insurance requirements. This review resulted in the addition of section 255 and 274 to the purchasing policy to provide a comprehensive purchasing guide. Staff is not asking for Council action on the sections but provided the summary information for this significant addition to the policy that further implements best practices and fiduciary control.