HomeMy WebLinkAbout06-16-2015 C13 Second Reading Purchasing ChangesCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number
FROM: Michael Codron, Assistant City Manager
Prepared by: James David, Principal Analyst
SUBJECT: ADOPTION OF AN ORDINANCE AMENDING THE MUNICIPAL CODE
TO ADD LANGUAGE TO PURCHASING POLICIES
RECOMMENDATION
Adopt Ordinance No. 1618 amending Municipal Code Chapter 3.24, Article I, to add language to
purchasing policies governing emergency purchasing, hiring on-call consultants, and
environmentally preferred purchases.
DISCUSSION
On June 2, 2015, the Council voted 5:0 to introduce Ordinance No. 1618 amending the
Municipal Code to add language to the City’s purchasing policies. The municipal code
amendment will become effective 30 days after final passage of the Ordinance.
ALTERNATIVES
1. The Council could reject adoption of the Municipal Code amendment. This is not advised
since the additions clarify and streamline existing purchasing procedures.
2. The Council could continue final adoption of the proposed amendment and provide
direction to staff for research and revisions, which would require re-introduction of the
ordinance.
ATTACHMENT
1. Ordinance No. 1618 – Add Language to Purchasing Policies
T:\Council Agenda Reports\2015\2015-06-16\Second Read Purchasing Changes
June 16, 2015
C13
C13 - 1
THIS PAGE IS INTENTIONALLY LEFT BLANK
C13 - 2
ATTACHMENT 1
O 1618
ORDINANCE NO. 1618 (2015 Series)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO AMENDING MUNICIPAL
CODE CHAPTER 3.24, ARTICLE I, TO ADD LANGUAGE TO PURCHASING
POLICIES GOVERNING EMERGENCY PURCHASING, HIRING ON-CALL
CONSULTANTS, AND ENVIRONMENTALLY PREFERRED PURCHASES
WHEREAS, the City Council adopted Ordinance No. 1178 (1990 Series) instituting a
recycled product procurement policy; and
WHEREAS, the Conservation and Open Space Element of the General Plan contains
goals, policies and programs that call for the City to use materials with reduced environmental
impacts; and
WHEREAS, adopted budget policies in the Productivity section call for analyzing
system and procedures to identify and remove unnecessary review requirements; and
WHEREAS, on December 16, 2014 Council amended the Productivity section of the
City budget policies to include “Maintaining City purchasing policies and procedures that are as
efficient and effective as possible”; and
WHEREAS, the subject changes to the Municipal Code will streamline the purchasing
process for hiring consultants – while maintaining appropriate checks and balances through a
formalized Request for Proposal process – thereby making accomplishing projects and related
delivery of services to the community more expedient and efficient; and
WHEREAS, the City analyzed several benchmark cities’ purchasing ordinances, and the
subject changes are consistent.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Article I of Chapter 3.24 of the Municipal Code of the City of San Luis
Obispo is hereby amended as set forth in Exhibit A.
SECTION 2. Effective Dates. A summary of this ordinance, together with the names of
Council members voting for and against, shall be published at least five (5) days prior to its final
passage, in The Tribune, a newspaper published and circulated in this City. This ordinance shall
go into effect at the expiration of thirty (30) days after its final passage.
SECTION 3. Severability. If any subdivision, paragraph, sentence, clause, or phrase of
this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the
remaining portions of this ordinance, or any other provisions of the city’s rules and regulations.
It is the city’s express intent that each remaining portion would have been adopted irrespective of
the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared
invalid or unenforceable.
C13 - 3
Ordinance No. 1618 (2015 Series) ATTACHMENT 1 Page 2
INTRODUCED on the 2nd day of June 2015, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the 16th day of June 2015, on the following roll call
vote:
AYES:
NOES:
ABSENT:
Mayor Jan Marx
ATTEST:
Anthony Mejia
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
C13 - 4
Attachment 1 Exhibit A
290-1
Chapter 3.24
PROCEDURES FOR PAYMENT OF
CLAIMS AND PURCHASES
Article I. General Provisions
3.24.010 Applicability of provisions. All
expenditures by the city for supplies, services,
equipment and public works projects not
controlled by the Charter shall be made only in
accordance with and pursuant to the provisions
of this chapter. (Ord. 954 § 2(part), 1983: prior
code § 2950.1)
3.24.020 Purpose of provisions. A
purchasing control system for the city is adopted
in order:
A. To secure those items set out in Section
3.24.010 at the lowest possible cost
commensurate with quality requirements;
B. To ensure effective financial control over
expenditures;
C. To clearly define authority and
accountability for the purchasing function;
D. To minimize the written documentation,
administrative actions and expense of processing
purchase transactions;
E. To assure the quality of purchases made on
behalf of the city; and
F. To facilitate accurate forecasting and
planning of department needs and expenditures.
(Ord. 954 § 2 (part), 1983: prior code § 2950.2)
3.24.030 Purchasing authority designated -
Powers and duties. The city administrative
officer, or his designated representative(s), shall
be the purchasing authority whose functions
shall include the following powers and duties:
A. To develop and prescribe, for the
departments, such administrative policies, forms
and files as may be reasonably necessary for the
internal management and operation of these
purchasing procedures;
B. To purchase or contract for those items
listed in Section 3.24.010 and required by
departments in accordance with these purchasing
procedures;
C. To negotiate and recommend execution of
contracts for purchase of those items listed in
Section 3.24.010;
D. To procure the needed quality in supplies,
services, equipment and public works projects
not controlled by the Charter, at minimum
expense;
E. To ensure as full and open competition as
possible on all purchases;
F. To consolidate department orders for like
items, ensuring quantity discount pricing
whenever possible;
G. To develop and maintain department
awareness of purchasing and pricing principles,
marketing conditions and new products;
H. To inspect supplies and equipment
delivered, as well as contractual services
performed, to determine their conformance with
the specifications set forth in the orders and
contracts; and, in this connection, to have the
authority to require chemical, physical or other
tests of samples submitted with quotations or
bids, or of delivery samplings, which may be
necessary to determine quality and conformance
with specifications;
I. To establish procedures for, and assign
duties to, personnel engaged in receiving,
storing and issuing purchased supplies, thereby
ensuring that supply levels are consistent with
usage requirements;
J. To facilitate the transfer of surplus or
unused supplies and equipment among
departments as needed; and
K. Subject to Charter Section 906, to sell or
exchange surplus supplies and equipment;
provided, that the same cannot reasonably be
used by any department. (Ord. 954 § 2(part),
1983: prior code § 2950.3)
3.24.040 Purchasing manual. Pursuant to
the provisions of this chapter, the city
administrative officer shall approve and
implement a manual of purchasing policies and
procedures and shall make such manual
C13 - 5
Purchasing Ordinance Attachment 1 Exhibit A
290-2
available to the Council for inspection. (Ord.
954 § 2(part), 1983: prior code § 2950.4)
3.24.050 Purchase documents. All
departments shall expend money for those items
set forth in Section 3.24.010 only in such
manner, at such times and by submission of such
purchase documents as the purchasing authority
shall prescribe. (Ord. 954 § 2(part), 1983: prior
code § 2950.5)
3.24.060 Bidding procedures - Use of not
required when. Purchase of those items listed
in Section 3.24.010 shall be by bid procedures
set forth in this chapter. Such procedures may
be dispensed with, at the discretion and
judgment of the purchasing authority as to the
best interests of the city, as follows:
A. When the amount to be expended is less
than the bid requirement amount which shall be
specified by resolution of the Council;
B. When an emergency purchase is made to
address a situation that creates an immediate and
serious need for equipment, supplies, or services
that cannot be met through normal purchasing
procedures and where the lack of such
equipment, supplies or services would seriously
threaten the functioning of City government, the
preservation of property, or the health or safety
of any person;
C. When the item(s) to be purchased can be
obtained from only one vendor or supplier;
D. When supplies or equipment have been
uniformly adopted in the city or otherwise
standardized;
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;
F. When reasonably necessary for the
preservation or protection of public peace,
health, safety or welfare of persons or property;
or
G. When, given the indeterminate nature of the
city’s need, a request for proposal will result in a
more favorable and efficient comparison of
supplies, equipment and/or services. (Ord. 1618
§ 1, 2015; Ord. 1608 § 1, 2014; Ord. 954 §
2(part), 1983: prior code § 2950.6)
3.24.070 Authority to hire consultants. The
restrictions and provisions of this chapter shall
not apply to contracts involving the acquisition
of professional or specialized services such as,
but not limited to, those rendered by architects,
attorneys, engineers and other specialized
consultants. Selection for such services will be
made using one of the following criteria:
A. An evaluation of proposals solicited from
capable professionals, and approved by the
purchasing authority, whenever the cost of the
work to be performed is of an estimated value
less than the Council specified amount if, in the
discretion of the purchasing authority, selection
based upon the evaluation of proposals would
better serve the interest of the city.
B. An evaluation of proposals solicited from
capable professionals, and approved by the
Council, whenever the cost of the work to be
performed is of an estimated value in excess of
the amount specified by Council resolution.
C. Selection from an approved list of on-call
consultants that is established by a formal
Request for Qualifications (RFQ) process. The
Council shall approve the RFQ, and the
Purchasing Authority is authorized to execute
agreements with selected consultants. The
Finance Director is authorized to execute and
amend purchase orders for individual consultant
services contracts in an amount not-to-exceed
the authorized project budget. On-call consultant
lists shall be renewed at least every five years by
a new RFQ process. ( Ord. 1618 § 1, 2015; Ord.
954 § 2(part), 1983: prior code § 2950.7)
3.24.075 Environmentally Preferred
Purchases.
C13 - 6
Purchasing Ordinance Attachment 1 Exhibit A
290-3
A. It is the intent of the city Council that the
City of San Luis Obispo take a leadership role
not only in recycling its waste products but also
in the purchase of recycled products for use in
the delivery of city services. It is the purpose of
this section to provide direction to the city
administrative officer in the procurement and
use of recycled products. For the purpose of this
section, recycled materials are defined as any
materials (e.g., glass, paper, plastic, etc.) that are
separated by type, reprocessed by industrial
methods, and used as raw materials for the
manufacture of new products.
B. It is the policy of the City of San Luis
Obispo to purchase and use recycled products
whenever possible to the extent that such use
does not negatively impact health, safety, or
operational efficiency.
C. It is the policy of the City of San Luis
Obispo to encourage the purchase of products
which can be recycled or reused.
D. The City will purchase and use recycled
paper for masthead stationery, envelopes and
printing purposes. In addition, recycled paper
shall be purchased and used in all copy
machines which will accept it. City staff will
encourage the copier industry to develop high-
speed copiers which will accept recycled paper.
E. City departments shall examine their
purchasing specifications and, where feasible,
purchase equipment, supplies, and services that
result in less harm to the natural environment.
This involves the purchase of equipment,
supplies, and services in a manner that uses less
harmful materials, employs recycled or
recovered materials (where appropriate and
available), and utilizes techniques intended to
result in less impact on the environment than
other available methods.
F. A ten percent preference, not to exceed one
thousand dollars per contract, may be given to
recycled products. The fitness and quality of the
recycled product must be at least equal to
unrecycled products as determined by the city.
The preference percentage shall be based on the
lowest bid or price quoted by the supplier or
suppliers offering nonrecycled products.
G. Price preferences may be offered in excess
of the ten percent ceiling established in this
section, if it can be shown that purchase of a
recycled product or material will result in greater
long-term savings to the city. Award of a bid in
excess of the ceiling, however, requires the
approval of the city administrative officer or city
Council as established in the city’s purchasing
manual. (Ord. 1618 § 1, 2015; Ord. 1178 § 1,
1990)
Ord. No. 1178 added § 3.24.080, which the
editor has renumbered § 3.24.075 since the
chapter already contained a § 3.24.080.
C13 - 7
THIS PAGE IS INTENTIONALLY LEFT BLANK
C13 - 8