HomeMy WebLinkAbout09-02-2014 C10 Ordinance Adoption of MC 3.24.060City of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number
FROM: Daryl Grigsby: Public Works Director
Prepared By: Tim Bochum, Deputy Director Public Works
Dave Smith, Interim Fleet Supervisor
SUBJECT: MUNICIPAL CODE AMENDMENT AND UPDATES TO FLEET
MANAGEMENT PROGRAM REGARDING COOPERATIVE PURCHASING
PROCEDURES
RECOMMENDATION
1. Adopt Ordinance No. 1608 (2014 Series) which amends Municipal Code Section 3.24.060(E)
regarding cooperative purchasing procedures.
2. Adopt a resolution updating the Fleet Management Program that reflects the ordinance
amendment.
DISCUSSION
Background
On August 19, 2014, the Council unanimously voted to introduce an ordinance amending
Municipal Code Section 3.24.060(E) regarding cooperative purchasing procedures (Attachment
1).
As part of the revised purchasing procedures established by the new Code language, an update to
the City’s Financial Management Manual must be done to make purchasing policy consistent
with the new ordinance language. Attachment 2 provides the resolution adopting the changes to
the Financial Management Manual.
Ordinance No. 1608 is ready for City Council adoption and will become effective 30 days
thereafter.
ATTACHMENT
1. Ordinance No. 1608 (2014 Series)
2. Resolution to update the Fleet Management Program with updated page 405-14 of Fleet
Management Manual
s:\council agenda reports\2014\2014-09-02\2nd reading of mc 3.24.060 (grigsby-smith)\_fleet-coop-purchase-2nd reading car.docx
September 2, 2014
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Attachment 1
ORDINANCE NO. 1608 (2014 Series)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO
AMENDING SECTION 3.24.060 OF THE MUNICIPAL CODE REGARDING
COOPERATIVE PURCHASING
WHEREAS, Municipal Code Section 3.24.060(E) provides that the bidding
procedures set forth in Section 3.24.010 are not required when the purchase will be made
cooperatively with one, or more, other units of government; and
WHEREAS, the City’s fleet management program (adopted via Resolution
10057) calls for generally purchasing vehicles via cooperative purchasing while also
providing local fleet dealers with an opportunity to compete with cooperative bidding
pricing.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San
Luis Obispo as follows:
SECTION 1. Section 3.24.060(E) of Chapter the Municipal Code is amended as
follows in dispensing with bidding requirements (added text underlined):
E. When the purchase will be made cooperatively with one, or more, other
units of government, or from a local dealer within the City limits that can provide the
same brand, model and configuration of item(s) identified in cooperative purchase
agreement(s) at or below the cooperative purchasing net cost within the same terms and
conditions.
SECTION 2. This ordinance shall go into effect at the expiration of thirty (30)
days after its final passage.
INTRODUCED on the 19th day of August 2014, AND FINALLY ADOPTED
by the Council of the City of San Luis Obispo on the 2nd day of September
2014, on the following vote:
AYES:
NOES:
ABSENT:
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Attachment 1
Mayor Jan Howell Marx
ATTEST:
Anthony J. Mejia
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
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Attachment 2
RESOLUTION NO. (2014 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
UPDATING THE FLEET MANAGEMENT PROGRAM
WHEREAS, on September 2, 2014, the Council adopted Ordinance 1608 amending
Municipal Code Section 3.24.060(E) regarding cooperative purchasing; and
WHEREAS, Section 405-I of the Fleet Management Program should be amended to be
consistent with this amendment.
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Luis
Obispo hereby amends the Fleet Management Program regarding the purchase of vehicles via
cooperative purchasing (Section 405-I of the Financial Management Manual) as set forth in the
underlined parts of Exhibit A attached hereto The new ordinance will become effective October
2, 2014, 30 days after its adoption and revised provisions of Section 405-I (3) will only become
effective as of that date.
Upon motion of Council Member ______________________, seconded by Council
Member _________________________________, and on the following vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted this 2nd day of September 2014.
______________________________
Mayor Jan Howell Marx
ATTEST:
_____________________________________
Anthony J. Mejia
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
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Exhibit A
405-14
Section 405-I: Procedures
BUYING NEW UNITS: COOPERATIVE PURCHASING CONTRACT
Note: All Fleet purchases such as Police patrol vehicles, general purpose fire trucks, sedans,
station wagons, passenger vans, light to heavy trucks, utility vehicles and construction
equipment should generally be acquired new through State of California Multiple Award
Schedule (CMAS) contracts. Specialized units not generally available though CMAS should
generally be acquired new through “piggyback” purchases, where other local agencies have
conducted competitive procurements and made those contracts available to the City.
1. Obtain a copy of the purchasing contract that extends contract prices to other government
agencies.
2. Ensure that the specified unit along with options is appropriate for the intended use.
3. Contact any local dealers within the City limits that might have been potential bidders to
ensure that the cooperative contract price is a good value and prudent alternative to
advertising for bids. If a dealer within the City limits can provide the same brand, model
and configuration of item(s) identified in cooperative purchase agreement(s) at or below
the cooperative purchasing net cost within the same terms and conditions, the purchase
will be made from the local dealer
4. Include only those options needed to meet work requirements and typical comfort needs.
Avoid options like fancy wheels or leather upholstery that might be perceived as
luxurious or extravagant, even if there is no difference in price compared to ordinary
options.
5. Specify the exterior paint color to be white. Specify another base color (preferably solid
and non-metallic) if authorized or if it will demonstrably improve safety, enhance utility,
or reduce cost.
6. Prepare a purchase order to the contract dealer. Depending on the cost, submit a Council
Agenda Report or City Manager Report requesting approval of the purchase order.
7. Receive the unit and examine it for defects and conformance to specifications. If
satisfactory, mark the dealer’s invoice “okay to pay,” initial it, and forward it to
Accounting with a copy of the purchase order. Note: CMAS contracts often include
substantial cash discounts for payment within a stated period of time. For this reason,
invoices should be processed promptly to earn such discounts.
8. Forward any title documents to Accounting.
9. Pay any State of California CMAS invoices and charge the appropriate project account.
The State assesses a nominal service charge – typically one percent of the base price – for
CMAS procurements. Invoices for these service charges usually arrive two or three
months after the procurement.
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