HomeMy WebLinkAboutAgenda Statement 1982/03/16 Item 16
•
ITEM TIT E:
COUNCIL AGENDA STATEMENT
Item
Meeting Date -~~~~/~oZ
Ordinance ~g'~ 7 -Amending Section 2.56.070 of the Municipal Code
Increasing the Mandatory Bid Limit from $5,000 to $16,000 - First Reading
/- SECOND READING AND ADOPTION
SUBMITTE BY: Director of Management Servic J~ (4/5ths Vote: Yes No X )
Director of Finance ~.;--~~
At the ebruary 24, 1982 joint meeting of the City Council and School District Boards,
Council considered a staff report on shared services and approved the proposed
procedu es for cooperative purchasing activities among the four agencies. The report
recomme ded that the City Council approve in concept, and direct staff to return at
a regul rly scheduled Council meeting with an ordinance, amending the City Code to
increas its mandatory bid limit from $5,000 to $16,000 to encourage the City's
partici ation in joint purchases. Therefore, it is my
RECOMME DATION: That the City Council
1. Place the ordinance on its first reading.
BOARD/C MMISSION RECOMMENDATION: N.A.
DISCUSS ON
of he major barriers to the successful implementation of shared purchasing services
he ifference in the mandatory bidding levels of the City and the School Districts.
Sc of Districts have a mandatory bid level of $16,000 (for material only) as established
by the Education Code (January 1, 1982). This mandatory bid limit is usually increased
at the state level every two years through an amendment to the Education Code. Currently,
the Ci Code, Section 2.56.070, requires that when estimated costs for all supplies,
Servic s, and equipment exceed an estimated cost of $5,000, the item shall be purchased
by for al written contract from the lowest responsible bidder submitting the best bid
after ue notice inviting bids. The current bid level was adopted by Ordinance No. 1197
in 196 and has not been changed since that date. If the formal bid requirement for the
City o Chula Vista remains the same, or is increased to a level less than that of the
School Districts, it would severely curtail the City of Chula Vista's ability to participate
in coo erative/joint purchasing activities with the School Districts. Although it could
contin e as it has in the past to buy and sell items to the School Districts, the City
would a unable to participate in joint purchases when the School Districts are not required
to use a formal bid process.
Since 969, when the City's $5,000 limit was adopted, the Consumer Price Index for San
Diego ounty (CPI-W) has increased by 188%. If this percentage were applied to the current
$5,000 bid limitation, the mandatory formal bid requirement would be raised to $14,400.
The Fi ance Director and Purchasing Agent strongly support the raising of the City's bid
limita ion to $16,000 both because of the general price increases since 1969 and to allow
the Ci y to participate in joint purchases with the School Districts. If joint purchasing
contin es between the School Districts and the City, staff may be required to return to
Counci at future dates (probably every two years) to request further increases in the
mandat ry bid limitation to maintain the proposed consistency between the City and School
~tri ts' bid limitations.
Form A-~113 (Rev. 11/79)
Page Two, Item ~'7~~i
~_ ~~
• Meeting Date 382
To help maintain the integrity of the City's current bidding requirements, the City's
Purchasing Agent would follow the administrative policy outlined below when participating
in a joint bid/purchase with the School Districts.
Buyer Discretion $1 - $7,999
Three Telephone Quotes $8,000 - $11,999
Three Written Quotes $12,000 - $15,999
A Formal Bid Requiring City Council
To Award Contract $16,000+
However when not involved in a joint bid/purchase, the City's administrative policy would
require sealed bids for all purchases from $10,000 to $15,999 with the Purchasing Agent
having he authority to award the contract. City Council approval would be required
for all contracts $16,000 and greater.
It shou d be clarified that even on a joint bid, the Schools and the City would be subject
to a $1 ,000 mandatory bid limit. Accordingly, two or more agencies could not jointly
partici ate in an informal bid for a total of more than $16,000. For example, the four
agencie could not conduct an informal bid if each agency needed $4,500 worth of an item.
Assumin Council approves the recommended ordinance, staff of each of the four agencies
will pr pare a resolution and agreement authorizing the agencies to conduct joint
bids an purchases. Council and District Board adoption of such a resolution and agree-
t mu t precede actual implementation of joint bids and purchases.
CAL MPACT: N.A.
JT:SWM: m
~r--~...,,~ -- s
p ----
.~ r;1
r' , ,
__ __ ~,
. z. ~ __.~.._ ... - ~ + ~
a
~ ,~~ ~ • _. ~..~ ~~J
• r
r~~