Item #11
Date: August 16, 2022
To: Mayor and City Council
From: Jim Schaad, City Manager
Subject: Amendment of Section 2.76.010 of the Marysville Municipal Code Entitled “Purchases” Recommendation:
Pass a Motion to 1) introduce the amended ordinance for first reading, 2) set September 6, 2022, for second reading and consideration for adoption, and 3) waive the first and second reading of the Ordinance amending portions of Chapter 2.76 of the Marysville Municipal Code.
Rationale for Recommendation:
Staff recommends approving the amended Ordinance as it relates to the City of Marysville’s purchasing policy. The Ordinance modifies the City’s municipal code to provide an express exemption from the stating that the city shall not be subject to the California Public Contract Code, in whole or in part, unless Council agrees by ordinance. This will eliminate any conflict between City Municipal Code and state Public Contract Code.
Background:
In reviewing City Municipal Code chapter 2.76 and State Public Contract Code several conflicting requirements were found between the two documents, and absent specific requirements listed in the City Municipal Code state law would require the City to follow the State Public Contract Code. In many cases the State Public Contract Code is significantly restrictive, limiting the City’s ability to cost-effectively complete public works projects including but not limited to:
• Use of City staff to self-perform work;
• Use of volunteer/community service groups to aid in performing work; • Purchase and furnish materials to minimize price markups.
Discussion & Analysis:
City staff have been working to develop creative methods to reduce costs of facilities maintenance and improvement projects including use of City staff to self-perform work, use of volunteer/community service groups and providing and furnishing materials to reduce price markups. In reviewing policy, it was found that State Public Contract Code precludes or minimizes the ability to apply these solutions. The Public Contract Code does provide an exception to charter cities such as the City of Marysville. Section 1100.7 (effective January 1), 2002 of the code states:
“This code is the basis of contracts between most public entities in this state and their contractors and subcontractors. With regard to charter cities, this code applies in the absence of an express Item #11
exemption or a city charter provision or ordinance that conflicts with the relevant provision of this code.”
Staff recommends that section 2.76.101 of the Marysville municipal code be revised as stated in the attached proposed ordinance and that the provisions of the ordinance be applied retroactively. This will eliminate the need to define exceptions for each relevant individual provision of the Public Contract Code.
Note that adherence to provisions of the State’s Public Contract Code may apply if specifically required by grant/funding agreements between the City and external funding entities.
Fiscal Analysis:
There is no direct fiscal impact to the general fund. An indirect impact may be the reduction in project costs realized by allowing use of the methods stated in the background and discussion and analysis sections of this report.
Attachments:
1) Proposed Ordinance No. XX