HomeMy WebLinkAbout05/21/1991, C-3 - PURCHASING AUTHORIZATION - STATE OF CALIFORNIA MEEMG
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= COUNCIL AGENDA REPORT MW NUMBBiyJ-3
FROM: William C. Statler, Director of Finance L
PREPARED BY: Dixon Flynn, ipance Systems Manager
SUBJECT: PURCHASING AUTHORIZATION - STATE OF CALIFORNIA
CAO RECOMMENDATION
Adopt a Resolution to authorize the City Administrative Officer or his designee to
purchase materials, supplies, and equipment from the Department of General Services,
State of California under the Cooperative Purchasing Program.
DISCUSSION
The State of California permits local agencies (cities, counties, special districts) to
purchase materials, supplies, and equipment from the Department of General Services
under the Cooperative Purchasing Program when the purchase exceeds $500 and the
product purchased is for public use. This program is completely voluntary and the local
agencies are always authorized to decide if and when to use the State's purchasing
contracts for supplies, material, and equipment
The City's purchasing ordinance and purchasing control procedures currently authorize
Staff to purchase materials, supplies, and equipment from the lowest responsible bidder.
However, under past practice the City has not considered State established contracts for
anything other than vehicle purchases due to a procedural requirement of the State that
requires local agencies to submit a resolution from their governing board designating
the State as its agent in making purchases.
Designating the State as the City's purchasing agent will not limit the authority of the
City to purchase from other vendors if such purchases are in the best interest of the City
due to pricing, emergencies, or other considerations. This action only expands the City's
options to participate in a program that may in some cases offer better prices to the
City. Accordingly, the Staff is recommending that the Council adopt the attached
resolution designating the State as its agent in making purchases.
FISCAL IMPACT
The goal of this initiative is to reduce the City's cost of material and supplies; however,
under State guidelines for Cooperative Purchasing, City purchases must exceed $500 per
contract. Accordingly, the Cooperative Purchasing Program limits City purchases to
industrial material and supplies that may be required in large quantities or for expensive
items of equipment that exceed $500 such as vehicles.
A recent cost comparison was made by Tom Harrington, the City's Energy Coordinator
between local prices for 300 Sylvania F40 fluorescent lamps and the State price for the
same lamp. The best local price is $4.06 per lamp. The price offered by the State is
$1.92 per lamp. The State price will save the City $642 after State contract fees.
ALTERNATIVES
The City will continue to obtain bids and price quotes for supplies, materials, and
equipment and exclude the Department of General Services, State of California as an
option in seeldng the lowest available price or bid.
ATTACHMENTS
Resolution authorizing the Department of General Services, State of California to act
as agent for the City in malting purchases.
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RESOLUTION NO. (1991 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
AUTHORIZING THE DEPARTMENT OF GENERAL SERVICES, STATE OF CALIFORNIA
TO PURCHASE MATERIALS, SUPPLIES, AND EQUIPMENT
ON BEHALF OF THE CITY OF SAN LUIS OBISPO
BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. That the City Council hereby authorizes the Office of Procurement,
Department of General Services, State of California to purchase material, supplies, and
equipment for and on the behalf of the City of San Luis Obispo pursuant to Section
14814, Government Code.
SECTION 2. That the City Council authorizes the City Administrative Officer or
his designee to sign and deliver all necessary requests to purchase materials, supplies, and
equipment and other documents in connection therewith for and on behalf of the City
of San Luis Obispo.
On motion of seconded by and on the
following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted the day of
Mayor Ron Dunin
ATTEST:
Pam Voges, City Clerk
APPROVED:
City dministrarive Officer
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it ctor of Finance
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