HomeMy WebLinkAbout04/15/2003, BUS 6 - PURCHASING SYSTEM IMPROVEMENTS C,
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CITY OF SAN LUIS. OBI
FROM: Bill Statler,Director of Finance
SUBJECT: PURCHASING SYSTEM IMPROVEMENTS
CAO RECOMMENDATION
Improve the City's purchasing system by:
1. Implementing the "job order contract" system and "alternative bidding procedures" as
approved by City voters when they amended the City Charter in November 2002.
2. Updating the City's purchasing guidelines for consistency with these changes as well as to
account for the passage of time since the City's purchasing system was last reviewed on a
comprehensive basis.
DISCUSSION
On May 7, 2002, the Council received a report on two recommended improvements in our
approach to contracting for construction projects: job order contracting and alternative bidding
procedures. These would allow us to more efficiently and quickly execute our capital
improvement program while at the same time offering significant opportunities for construction
cost savings. However, implementing these improvements would require a Charter amendment.
Based on the benefits of implementing these improvements, the Council conceptually approved
placing a Charter amendment on the November 2002 ballot at that time, and subsequently
confirmed this action by adopting a resolution on June 18, 2002 that formally placed a measure
on the ballot.
The voters overwhelmingly approved these changes on November 5, 2002, with 77% of the
voters approving the Charter amendment.
Accordingly, we have developed the policies, procedures and authorizing documents necessary
to begin implementing these improvements. We have also taken this opportunity to review our
overall purchasing system for internal consistency with these changes, as well as to update them
for the passage of time since they were last reviewed on a comprehensive basis. These changes
are fully described in two separate, accompanying Council agenda reports:
A. Job Order Contracts and Alternative Bidding Procedures
B. Purchasing Guidelines Update
G:Manuals/Financial Management ManuaVSection 200-Purchasing/Proposed Update/Council Agenda Report-Introduction
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