One of the City Council’s Strategic Priorities is to update the City’s Municipal Code regarding purchasing. This Staff Report provides a proposed Ordinance which would amend the City’s purchasing code.
Chapter 3.12 “Purchasing System”
Title 3 “Revenue and Finance” includes Chapter 3.12 “Purchase System,” (Attachment 1). Chapter 3.12 needs to be updated and the proposed Ordinance is being submitted to the Council for consideration on updating Chapter 3.12.
A redline of the existing Chapter 3.12 (Attachment 2) shows the changes that would be codified by the adoption of the Ordinance. The proposed Ordinance is Attachment 3 and attached as Exhibit A to the proposed Ordinance is a clean version of the proposed changes to Chapter 3.12.
Summary of Proposed Changes
Here is a summary of some of the changes in the proposed Ordinance:
1. Makes it clear when the City enters into a contract: it must be in writing; approved as to form by the City Attorney; and signed by an authorized official.
2. Identifies authorized signatories: the Mayor (or Mayor pro tem); the City Administrator when directed by the City Council, resolution, ordinance, or the municipal code; the City Administrator for contracts less than $60,000; and department directors for contracts less than $25,000.
3. Authorizes the City Administrator and department directors to solicit bids, award contracts, and select vendors in accordance with the municipal code for contracts up to the amounts of their respective signature authority.
4. Adds uniform definitions to the municipal code to clarify the City’s purchasing regulations. For example, definitions for a “contract”; “general services” vs. “professional services”; and “supplies.”
5. Adds purchasing regulations required by federal law when the City utilizes federal funds (e.g., FEMA monies) for purchasing general services and supplies.
6. Streamlines bidding requirements and identifies exceptions to such requirements.
Local Business Policy
Section 2 of the Proposed Ordinance reads as follows:
SECTION 2: Local Business Policy. The City Council finds that it is in the public interest to promote utilization of Local Businesses that are small or minority owned such as Disadvantaged Business Enterprises, Minority Business Enterprises, Woman Business Enterprises, Disabled Veteran Business Enterprises in all aspects of purchasing in accordance with applicable law. Accordingly, the City Administrator is authorized to encourage participation of all DBE’s, MBE’s, WBE’s, DVBE’s and SLB’s located with the City’s jurisdiction to the extent allowed by applicable law. To help meet this policy goal, the City Administrator may utilize the vendor program implemented by the County of Monterey’s “Small LOCAL Business Outreach Program.”
Attachment 4 is the County of Monterey’s “Small LOCAL Business Outreach Program.”