HomeMy WebLinkAbout9/20/2022 Item 5d, Horn - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: September 20, 2022
TO: Mayor and Council
FROM: Matt Horn, Public Works Director
VIA: Derek Johnson, City Manager
SUBJECT: 5d – APPROVE A RESOLUTION TO DELEGATE FLEET PURCHASING
AUTHORITY TO THE PUBLIC WORKS DIRECTOR AND FINANCE
PURCHASING DIVISION FOR TIER 4 AND 5 FLEET AND TRANSIT
PURCHASES MADE THROUGH COOPERATIVE PURCHASING
AGREEMENTS AND WITHIN THE COUNCIL APPROVED BUDGET
Staff received the following questions, regarding item 5d for streamlining Fleet and Transit
Purchases. In addition to receiving questions, staff identified a clerical error within the
report and clarification is provided. The questions and clarifications are below with staff’s
response shown in italics:
1) Is the purposed Agenda Item and Resolution to allow Finance and the Public
Works Director to approve Fleet and Transit replacements, or would this allow the
approval of new assets?
The proposed Resolution would delegate purchasing authority to the Public Works
Director and Finance Purchasing Division for new and replacement Fleet and
Transit purchases that have been approved by the City Council, and the purchase
price is within the Council approved budget. This Resolution does not give staff
the authority to purchase assets that have not been approved by the City Council.
2) Does staff already have Tier 1-3 purchasing authority? The current Purchasing
Policy is as follows:
For Tier 1 Purchases (Under $10k) staff must obtain a Purchase Order that is
approved by the Department’s Fiscal Officer and the Purchasing Division in
Finance.
For Tier 2 Purchases ($10k-$74,999) staff must obtain a Purchase Order that is
approved by the by the Department’s Fiscal Officer, Department Head, and the
Purchasing Division in Finance.
For Tier 3 Purchases ($75k-$199,999) staff must obtain a Purchase Order that is
approved by the by the Department’s Fiscal Officer, Department Head, Purchasing
Division in Finance, and City Manager.
Delegation of Tier 4 & 5 Fleet and Transit Purchases Page 2
For Tier 4 Purchases ($200k or more) staff must obtain a Purchase Order that is
approved by the by the Department’s Fiscal Officer, Department Head, Purchasing
Division in Finance, and City Council.
This Agenda Item and Resolution seeks City Council approval to delegate Tier 3
and 4 Fleet and Transit purchases that are within the Council approved budget to
the Public Works Director and Purchasing Division within Finance.
3) Staff has identified a clerical error in the Council Agenda Report and Resolution.
The report and Resolution seek to Delegation of Tier 4 and 5 purchasing authority
for Fleet and Transit purchases to the Public Works Director and the Purchasing
Division within Finance.
The report contained a clerical error in that staff is seeking City Council
authorization to delegate Tier 4 and 5 Fleet and Transit purchase authority to the
Public Works Director and Purchasing Division within Finance. The City has no
Tier 5 purchase thresholds. Staff is seeking City Council authorization to delegate
Tier 4 Fleet and Transit purchase authority to the Public Works Director and
Purchasing Division within Finance.
Attachments:
A – City’s General Good Purchasing Policy – Approval Thresholds
Professional
Services
General
Goods
CITY OF SAN LUIS OBISPO www.slocity.org
PURCHASING POLICY - APPROVAL THRESHOLDS
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
Under
$10,000
$10,000
to $39,999
$40,000
to $69,999
$70,000
to $150,000
$150,000
or more
Purchase Requisition (PR) approved by Fiscal Officer
Purchase Order (PO) approved by Purchasing
3 Quotes
PR approved by Fiscal Officer, Dept. Head
PO approved by Purchasing
RFP Required
PR approved by Fiscal Officer & Dept. Head
PO approved by Purchasing
City Manager Report and RFP Required
PR approved by Fiscal Officer
PO approved by Purchasing
Council Approval and RFP Required
PR approved by Fiscal Officer
PO approved by Purchasing
PURCHASING POLICY - APPROVAL THRESHOLDS
Tier 1
Tier 2
Tier 3
Tier 4
Under
$10,000
$10,000
to $74,999
$75,000
to $199,999
$200,000
or more
Purchase Requisition (PR) approved by Fiscal Officer
Purchase Order (PO) approved by Purchasing
3 Quotes
PR approved by Fiscal Officer, Dept. Head
PO approve by Purchasing
City Manager Report and RFP Required
PR approved by Fiscal Officer & Dept. Head
PO approved by Purchasing
Council Approval and RFP Required
PR approved by Fiscal Officer
PO approved by Purchasing