Item 3.2 - Intro and First Reading of Ord Repealing Section 3.28.080 of PMC and Adding Section 3.28.080 ; PurchasingO`,�.1 OF POWgY
City of Poway
COUNCIL AGENDA REPORT
C� 1N THE �aJ
DATE: September 19, 2017
APPROVED
III
APPROVED AS AMENDED
❑
(SEE MINUTES)
DENIED
❑
REMOVED
❑
CONTINUED
RESOLUTION NO.
TO: Honorable Mayor and Members of the City Council
FROM: Peter Moote, Acting Director of Financ
(858) 668-4414 or pmoote(a,poway.orq
SUBJECT: Introduction and First Reading of Ordinance Repealing
Section 3.28.080 of the Poway Municipal Code and
Adding a New Section 3.28.080 Pertaining to Purchasing
Summary:
Chapter 3.28 (Purchasing) of the City of Poway Municipal Code adopts a purchasing
system that establishes procedures and guidelines for the purchase of supplies,
equipment, materials and services. The current threshold for requiring competitive bids
for materials and services has been found to be significantly lower than current industry
standards. Amending the purchasing code to better align the City's purchasing thresholds
with updated standards will result in improved administrative efficiency while maintaining
purchasing best practices.
Recommended Action:
It is recommended that the City Council take public input; close the public hearing and
introduce an Ordinance for first reading by title only, waiving further reading; and
schedule adoption of the attached Ordinance for October 3, 2017.
Discussion:
A survey of current purchasing thresholds adopted by San Diego area public agencies
suggests that Poway's existing threshold for permitting purchases without solicitation of
competitive bids is significantly lower by comparison. The average threshold for the
seventeen agencies surveyed is approximately $13,300. Poway's current threshold for
the competitive bidding exception is $1,000, and has been in place since 2008. In addition
to the survey results, buyers in the various City departments have reported that obtaining
competitive quotes under the existing Code requirement has been increasingly
challenging due to vendors not responding to requests for pricing on relatively small,
lower cost orders.
The most common adopted no -bid threshold in relatively close range to the average for
the surveyed agencies is currently $10,000. This amount is also consistent with the
region's calculated average after excluding the highest and lowest adopted limits.
Based on this result, the recommended new limit for purchasing under the code section
for exceptions to bidding requirements is $10,000. It should be noted that with adoption
of this limit, the City's existing practice of encouraging solicitation of quotes for any
purchase when doing so is administratively effective will remain.
1 of 8 September 19, 2017, Item #3.2
Repealing and Adding New Municipal Code Section 3.28.080
September 19, 2017
Page 2
The thresholds for informal and formal bidding were found to be in line with current
standards and require no adjustments. In summary, the recommended change to the
City's purchasing code results in threshold requirements shown in the table below:
Activity
Procurement Limit
Current
Proposed
Public Works Projects
A project for the erection,
improvement, painting, or repair of
public buildings and works
(per State PCC 20160
$5,000
$5,000
Supplies, Equipment, Materials and Services
Market $1,000
-Open
Informal BiddingU to $50,000
1 Up to $50,000
Formal Bidding $50,000 and over 1
$50,000 and over
In addition to increasing the purchasing threshold, the attached Ordinance amends
section 3.28.080 to clarify that three (3) proposals and awarding to the lowest responsible
bidder only applies to open market purchases of supplies and equipment, and not for
services. Engagement of services are addressed in section 3.28.100, which provides for
selection based on optimal pricing and qualifications.
Environmental Review:
This item is not subject to CEQA review.
Fiscal Impact:
None.
Public Notification:
A public notice was published in the Poway News Chieftain on September 7 and 14, 2017.
Attachments:
A. Strikeout Version of Ordinance
B. Clean Version of Ordinance
Reviewed/Approved By:
�V� —
Wendy aserman
Assistant City Manager
Reviewed By: Approved By:
Morgan Foley Tina M. White
City Attorney City Manager
2 of 8 September 19, 2017, Item #3.2
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF POWAY, CALIFORNIA,
REPEALING SECTION 3.28.080 OF THE POWAY
MUNICIPAL CODE AND ADDING A NEW SECTION
3.28.080 PERTAINING TO PURCHASING
WHEREAS, the City of Poway enacted its Purchasing Code, codified at Chapter
3.28 of the Poway Municipal Code, in 1982;
WHEREAS, the City of Poway last revisited its Purchasing Code in 2008; and
WHEREAS, there is a need to update the City's Purchasing Code, in order to
increase the purchase threshold of open market supplies, equipment, materials and
services from the $1,000 threshold at which it stands to $10,000;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES
ORDAIN AS FOLLOWS:
SECTION 1: Section 3.28.080 of Chapter 3.28 of the Poway Municipal Code is
hereby repealed.
SECTION 2: A new section 3.28.080 is hereby added to Chapter 3.28 of the
Poway Municipal Code to read as follows:
3.28.080 Exceptions to bidding requirements.
Where otherwise required by this chapter, formal or informal bidding procedures may
be waived, at the discretion of the City Manager or his or her designee, when:
A. An emergency requires that the supplies, services or equipment be acquired from
the nearest available source or vendor.
B. The supplies, services or equipment can be obtained from only one vendor or
source.
C. The supplies or equipment are required to match or be compatible with other
supplies or equipment previously purchased by the City.
D. The City Manager or City Council has established a standardized type or make of
supplies or equipment for the City.
E. The City Manager, or his or her designee, determines that competitive bidding is
impossible, or not in the public's interest.
3 of 8 ATTACHMENT A September 19, 2017, Item #3.2
Ordinance No.
Page 2
F. Services, other than a public project, as defined by Public Contracts Code Section
20161, are to be performed entirely by City forces.
G. For public projects, as defined by Public Contracts Code Section 20161, no bids
are received, or the City Council has rejected all bids pursuant to Public Contracts Code
Section 20167, and any amendments thereto.
H. The value of the supplies, services or equipment to be purchased does not exceed
$000 $10,000.
Open market purchases for supplies or equipment shall, wherever possible, be
based on at least three bids and shall be awarded to the lowest responsible bidder. The
lowest responsible bidder will be the individual or firm who submits a responsible bid
based on total cost, and which is determined to be the most advantageous to the City.
SECTION 3: This Ordinance shall be codified.
EFFECTIVE DATE: This Ordinance shall take effect and be in force thirty (30) days
after its adoption.
CERTIFICATION/PUBLICATION: The City Clerk shall certify the adoption of this
Ordinance and cause it or a summary of it, to be published with the names of the City
Council members voting for and against the same in the Poway News Chieftain, a
newspaper of general circulation in the City of Poway within fifteen (15) days after its
adoption and shall post a certified copy of this Ordinance in the Office of the City Clerk in
accordance with Government Code § 36933.
Introduced and first read at a Regular Meeting of the City Council of the City of
Poway, California held the 19th day of September 2017, and thereafter PASSED AND
ADOPTED at a regular meeting of said City Council held the 3rd day of October 2017.
Steve Vaus, Mayor
ATTEST:
Nancy Neufeld, CMC, City Clerk
4 of 8 September 19, 2017, Item #3.2
Ordinance No.
Page 3
STATE OF CALIFORNIA )
) SS
COUNTY OF SAN DIEGO)
I, Nancy Neufeld, City Clerk of the City of Poway, California, do hereby certify that
the foregoing Ordinance No. ***, was duly adopted by the City Council at a regular
meeting of said City Council held on the 3rd day of October 2017, and that it was so
adopted by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
Nancy Neufeld, CMC, City Clerk
City of Poway
5 of 8 September 19, 2017, Item #3.2
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF POWAY, CALIFORNIA,
REPEALING SECTION 3.28.080 OF THE POWAY
MUNICIPAL CODE AND ADDING A NEW SECTION
3.28.080 PERTAINING TO PURCHASING
WHEREAS, the City of Poway enacted its Purchasing Code, codified at Chapter
3.28 of the Poway Municipal Code, in 1982;
WHEREAS, the City of Poway last revisited its Purchasing Code in 2008; and
WHEREAS, there is a need to update the City's Purchasing Code, in order to
increase the purchase threshold of open market supplies, equipment, materials and
services from the $1,000 threshold at which it stands to $10,000;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES
ORDAIN AS FOLLOWS:
SECTION 1: Section 3.28.080 of Chapter 3.28 of the Poway Municipal Code is
hereby repealed.
SECTION 2: A new section 3.28.080 is hereby added to Chapter 3.28 of the
Poway Municipal Code to read as follows:
3.28.080 Exceptions to bidding requirements.
Where otherwise required by this chapter, formal or informal bidding procedures may
be waived, at the discretion of the City Manager or his or her designee, when:
A. An emergency requires that the supplies, services or equipment be acquired from
the nearest available source or vendor.
B. The supplies, services or equipment can be obtained from only one vendor or
source.
C. The supplies or equipment are required to match or be compatible with other
supplies or equipment previously purchased by the City.
D. The City Manager or City Council has established a standardized type or make of
supplies or equipment for the City.
E. The City Manager, or his or her designee, determines that competitive bidding is
impossible, or not in the public's interest.
6 of 8 ATTACHMENT B September 19, 2017, Item #3.2
Ordinance No.
Page 2
F. Services, other than a public project, as defined by Public Contracts Code Section
20161, are to be performed entirely by City forces.
G. For public projects, as defined by Public Contracts Code Section 20161, no bids
are received, or the City Council has rejected all bids pursuant to Public Contracts Code
Section 20167, and any amendments thereto.
H. The value of the supplies, services or equipment to be purchased does not exceed
$10,000.
Open market purchases for supplies or equipment shall, wherever possible, be
based on at least three bids and shall be awarded to the lowest responsible bidder. The
lowest responsible bidder will be the individual or firm who submits a responsible bid
based on total cost, and which is determined to be the most advantageous to the City.
SECTION 3: This Ordinance shall be codified.
EFFECTIVE DATE: This Ordinance shall take effect and be in force thirty (30) days
after its adoption.
CERTIFICATION/PUBLICATION: The City Clerk shall certify the adoption of this
Ordinance and cause it or a summary of it, to be published with the names of the City
Council members voting for and against the same in the Poway News Chieftain, a
newspaper of general circulation in the City of Poway within fifteen (15) days after its
adoption and shall post a certified copy of this Ordinance in the Office of the City Clerk in
accordance with Government Code § 36933.
Introduced and first read at a Regular Meeting of the City Council of the City of
Poway, California held the 19th day of September 2017, and thereafter PASSED AND
ADOPTED at a regular meeting of said City Council held the 3rd day of October 2017.
Steve Vaus, Mayor
ATTEST:
Nancy Neufeld, CMC, City Clerk
7 of 8 September 19, 2017, Item #3.2
Ordinance No.
Page 3
STATE OF CALIFORNIA )
) SS
COUNTY OF SAN DIEGO)
I, Nancy Neufeld, City Clerk of the City of Poway, California, do hereby certify that
the foregoing Ordinance No. ***, was duly adopted by the City Council at a regular
meeting of said City Council held on the 3rd day of October 2017, and that it was so
adopted by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
Nancy Neufeld, CMC, City Clerk
City of Poway
8 of 8 September 19, 2017, Item #3.2