PUBLIC HEARING TO CONSIDER ADOPTING AN
ORDINANCE AMENDING SECTION 2.36.110
“EXCEPTIONS TO PURCHASING PROCEDURES
AND LIMITS”
CITY COUNCIL REGULAR MEETING | SEPTEMBER 11, 2023 – ITEM 5.1 1 BACKGROUND
The City is currently managing numerous projects (construction, development, maintenance, etc.)
These projects require staff to purchase materials, equipment and other goods in accordance with State and local government purchasing procedures Lathrop Municipal Code (LMC) 2.36.110 Exceptions to purchasing procedures and limits
…governmental agencies, sole source, professional services, California Multiple Award Schedule (CMAS)
CMAS is a form of Cooperative Purchasing ran by the State of California Request: Amend LMC to allow all Cooperative Purchasing not just CMAS 2 WHAT IS COOPERATIVE PURCHASE?
A cooperative purchasing program combines multiple
buyers’ requirements on a single contract to aggregate
volume and raise the purchasing power of each
participating entity.
A lead agency typically conducts the solicitation,
allowing other agencies to “piggyback” on the resulting contract.
Through cooperatives, entities can negotiate lower
prices and reduce time spent on procurement
processes and establishing contracts.
3 COOPERATIVE PURCHASE – HOW IT WORKS
Cooperative Purchase Organization
Identify Participating Entity Needs and
Research Solutions
SeekAuthorization from Board of Directors
Draft Solicitation, Public Advertisement, and
Notice
Conduct Pre-Proposal Conference
Opening of Responses
Evaluate Responses
Award Suppliers
Posting and Reviewing Approved Contract
Documents
4 Local Agency
Identify purchasing needs and
search through cooperative
purchasing contracts
Agency contacts the supplier.
Supplier provides quote based
on the contracted price
Agency finalizes the sale with
the supplier
BENEFITS OF COOPERATIVE PURCHASING
1. Time
Reduce administrative overhead
Increase efficiency
Bid procedures associated with routine
purchases are repetitive and resource intensive
2. Money
Purchasing in volume allows the cooperative to
negotiate for discounted pricing
3. Stay Compliant
Competitive and transparent process 5
CHAPTER 2.36 PURCHASING SYSTEM
2.36.110 EXCEPTIONS TO PURCHASING PROCEDURES AND LIMITS 6 A. The contracting of service from other governmental agencies, sole source purchases and professional services shall be exempt from bidding procedures.
B. The contracting for the purchase of any item less than seventy-five thousand dollars ($75,000.00), exclusive of sales or use tax, shipping, handling or delivery charges from other governmental agencies, sole source purchases, or from the Office of Procurement, Department of General Services of the state of California shall be exempt from the bidding procedures.
C. For any exemption to the procedures set forth in this chapter, the department head responsible for the purchase shall certify in writing to the purchasing officer the reason for the exemption claimed.
D. Without complying with the requirements of Sections 2.36.050, 2.36.060, and 2.36.140, the purchasing officer may participate in, use, sponsor, conduct or administer a cooperative purchasing agreement for the procurement of any supplies, equipment, or service with one or more public procurement units in accordance with an agreement entered into between the participants. Such cooperative purchasing may include, but is not limited to, joint or multiparty contracts between public procurement units and open-ended state and/or federal public procurement unit contracts which are made available to the city.
RECOMMENDATION
Hold a Public Hearing; and
First Reading and Introduction of an Ordinance Amending Title 2, Chapter 2.36 “Purchasing System”, Section
2.36.110 “Exceptions To Purchasing Procedures and
Limits” by adding a new section (“D”) to allow
Cooperative PurchasingAgreements
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