200 S. Anaheim Blvd.
Suite #733
Anaheim, CA 92805
Tel: (714) 765-5162
Fax: (714) 765-5164
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
CITY MANAGER’S OFFICE
DATE: OCTOBER 24, 2023
FROM: CITY MANAGER’S OFFICE
SUBJECT: DISCUSSION REGARDING THE CITY MANAGER’S
PURCHASING AUTHORITY
ATTACHMENT (Y/N): NO ITEM # 22
GOVERNMENT CODE § 84308 APPLIES: NO
REQUESTED ACTION:
That the City Council receive information on the current policy for the City Manager’s purchasing authority and provide direction to staff, as necessary.
DISCUSSION:
At the August 29, 2023 Council meeting, City Council approved a priority list of reforms stemming from the recommendations in the JL Group investigative report, and a calendar of when these items were to be brought forward for City Council discussion and action. The discussion regarding the City Manager’s purchasing authority was calendared for October 24, 2023, to include discussion on (but not limited to) the following: a review of spending authority of comparable managers, limit of aggregate signing amounts, emergency signing authority, posting on City Manager website, council notice procedure, and avoidance of conflicts of interest.
History of City Manager’s Signature Authority
The City Manager’ s signature authority limit has been subject to fluctuation over the past decade. On November 9, 2010, the City Council adopted Resolution No. 2010-195 authorizing the City Manager to approve agreements and expenditures up to $250,000.
Prior to that, beginning in 2004, the City Manager and the Purchasing Agent’s authority was set at $100,000. However, later in 2010, the Council reduced the City Manager’s authority back to $100,000, and then further reduced it to $50,000 in 2017.
During the beginning of the COVID-19 pandemic in 2020, and as part of the City’ s emergency declaration, the City Council provided the City Manager with emergency spending authority up to $250,000. Because of this emergency authority, the City responded to and addressed purchasing needs for equipment and/or services related to pandemic. Before the City Manager’s emergency authority came to an end, the City Council adopted Resolution 2021-021 on April 12, 2021 and authorized the City Manager to execute, ratify and amend contracts and agreements under $200,000, which is where the current authority is today.
Discussion Regarding the City Manager’s Purchasing Authority October 24, 2023
Purchasing Procedures for City Manager
All of the following criteria is applied to purchasing agreements and contracts that are approved by the City Manager:
Contracts or purchases will only be approved when sufficient budget appropriations have been authorized by the City Council. Approval of contracts and purchases may only occur when the material or service was competitively procured in accordance with Council Policy 4.0 or 4.1. Purchases or contracts that were not procured in accordance with these policies will continue to be approved by the City Council.
When an amendment or extension will cause the total value of a professional services contract to exceed $200,000, the contract must be presented to the City Council for approval.
When the cumulative value of services provided by one professional services contractor exceeds $500,000 over five years, the contracts must be approved by the City Council.
Bids and Requests for Proposals (RFPs) will continue to be advertised on the City’s website, ensuring that a wide range of vendors and contractors are able to compete for City contracts.
The City will maintain interest lists for those vendors, contractors and consultants interested in receiving bids or proposals for upcoming work, goods or services.
Information about bids, requests for proposals, and the award of such bids and contracts will be available on the City’s Transparency in Government webpage. In accordance to Council Policy 4.1, the award of professional consultant contracts valued at $25,000 or more shall be published on the City’s website within 72 hours after an agreement is finalized and notification shall be provided to the City Council once an agreement has been posted.
The City Manager will continue to provide the City Council with an annual list of all contracts approved, including name of contractor, description of work, and total value.
All contracts above the City Manager signature authority of $200,000 shall be placed on the City Council agenda.
Spending Authority of Comparable Administrators
Below is a list of several public entities, comparable to the city of Anaheim, and their administrator’s signing authority amount (from largest to smallest):
Organization Signing Authority
Orange County Transportation Authority $250,000
Metropolitan Water District $250,000
Anaheim $200,000
County of Orange $200,000
Long Beach $100,000
Stockton $100,000
Discussion Regarding the City Manager’s Purchasing Authority October 24, 2023
Organization (continued) Signing Authority
OC Sanitation District $100,000
Orange County Fire Authority $100,000
Irvine $60,000
Santa Ana $50,000
Riverside $50,000
Oakland $50,000
Orange County Water District $50,000
Bakersfield $40,000
Orange County Transportation Corridor Agencies $25,000
The City Council may consider amendments to the City Manager’s purchasing authority.
Future changes to the purchasing authority will require a resolution to update Council Policy 4.0 regarding purchasing procedures and 4.1 regarding selection of professional consultants, which are subject to approval at a future City Council meeting.
IMPACT ON BUDGET:
There is no impact on the General Fund.
Respectfully submitted,
Jim Vanderpool
City Manager