CC 2023-09-26 Purchasing Update_PP
City of Arroyo Grande
Purchasing Policy and Procedures Update
September 26, 2023
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8/22/2024
Last comprehensive update in 2000
Policies and procedures are outdated and do not incorporate changes in law since last update
Policies and procedures do not adequately reflect best public procurement practices
Inordinately low bidding and contract award thresholds impact efficiency and effectiveness of City operations
Background
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Pertinent definitions added
Purchasing compliance oversight established
Purchasing responsibilities of department directors enumerated
Provisions added for:
Amending contracts, making purchases with grant funding, disposing of surplus property, and defining conflicts of interest
Best practice bid protest procedures incorporated
Flexibility for city manager to update administrative policy and procedures provided
New requirements associated with green purchasing cross-referenced
Key Additions to Purchasing Ordinance
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Contract award authority and delegation thereof specified
Solicitation procedures for goods and services clarified
Requirements associated with emergency purchases articulated
Greater flexibility for awarding contracts to local businesses provided
Bidding procedures for public projects updated
Major Clarifications and Updates to Purchasing Ordinance
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Current levels for goods and services exceedingly low compared to best practice metrics
Results in administrative and operational inefficiencies
Survey of eight cities proximate to Arroyo Grande: Atascadero, Grover Beach, Lompoc, Morro Bay, Paso Robles, Pismo Beach, San Luis Obispo, and Santa Maria
Every jurisdiction has higher bidding and contract award thresholds
Grover Beach updated policies in August 2023
Atascadero, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo updated policies in 2022
Significant Increases to Bidding and
Contract Award Thresholds Recommended
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Recommended Increases for
Competitively Bidding Goods and Services
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Recommended Increases for Awarding
Goods and Services Contracts
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Effect of Increasing Bid and Award Thresholds
$10,001 General Services Contract
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City follows the California Uniform Construction Cost Accounting Act (CUPCCAA) for public works construction
Bid thresholds set by Public Contract Code
No bids required for projects up to $60,000
Informal bids required for projects greater than $60,000 up to $200,000
Formal bids required for projects greater than $200,000
Threshold amounts are periodically adjusted to account for changes in economic conditions
Proposed Increases for Bidding and
Awarding Contracts for Public Projects
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Currently, Council does not award contracts for public projects
Council approves plans and specifications for formal bids prior to bidding, city manager awards contract
State law allows cities to authorize city engineer/public works director to approve plans and specifications for formal bids
Proposed ordinance includes this authorization while requiring Council approval to award contracts greater than $200,000
Results in greater transparency and consistency with contract award requirements for goods and services
Proposed Increases for Bidding and
Awarding Contracts for Public Projects (continued)
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Questions and Comments
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