Finance & Management Committee
April 23, 2024
RECOMMENDATION
AGENDA REPORT
Staff Recommends That The City Council Adopt A Resolution Approving, In Accordance With City Council Budget Appropriations And Allocations As Adopted By The Fiscal Year 2023-25 Budget, Ongoing Cooperative Purchase Agreements Exceeding $250,000 For Citywide Commodities And Services Contracts As Set Forth In Table 1 In An Amount Not To Exceed Six Million Five Hundred Thousand Dollars ($6,500,000.00).
EXECUTIVE SUM
MARY
The Finance Department’s Purchasing Unit is responsible for procuring commodity goods and services that support the operation of City departments. These commodity goods and services are commonly procured through cooperative agreements, as provided for under Oakland Municipal Code (OMC) 2.04.080. OMC 2.04.080 provides broad authority for the City Administrator to efficiently procure goods and services through cooperative agreements. These agreements are sometimes referred to as “piggyback contracts” as they allow the City to take advantage of other governmental entities’ competitive procurements. This contracting approach is intended to provide cost-effective pricing while reducing procurement timelines and administrative requirements.
OMC 2.04.080 sets no limit on the dollar threshold of cooperative agreements that may be entered into by the City Administrator. The proposed recommendation would align practices for existing cooperative agreements with OMC 2.04.020, which authorizes the City Administrator to enter into contracts up to $250,000. Existing cooperative agreements in excess of this amount are presented for City Council approval, along with proposed increases.
BACKGROUND / LEGISLATIVE HIS
TORY
City Council adopted Resolution 90007 C.M.S. on December 5, 2023 and Resolution 89845 C.M.S. on J uly 18, 2023, approving ongoing cooperative agreements exceeding $250,000 for commodities and services contracts. The Finance Department’s Purchasing Unit has since identified three additional cooperative agreements exceeding $250,000 for City Council’s consideration.
TO: Jestin D. Johnson FROM: Erin Roseman
City Administrator Finance Director
SUBJECT: Citywide Cooperative Agreements DATE: March 21, 2024
City Administrator Approval Date:
Jestin Johnson (Apr 11, 2024 19:11 PDT)
Apr 11, 2024
Jestin D. Johnson, City Administrator
Subject: Citywide Cooperative Agreements
Date: March 21, 2024 Page 2
Finance & Management Committee
April 23, 2024
Historically, cooperative agreements have not been presented for City Council approval with the understanding that they are authorized under OMC 2.04.080. Approval of these agreements by City Council would confirm their authorization and increase transparency for this contracting mechanism.
ANALYSIS AND POLICY ALTERNATIVES
The Finance Department’s Purchasing Unit utilizes cooperative agreements as a cost-effective and efficient means to acquire commodity goods and services. Cooperative agreements, by nature, offer volume discounts because the vendor has agreed to offer their bid price to multiple public agencies. Accordingly, the use of cooperative agreements allows the City to access commodities and services at lower prices, which results in significant cost savings for the City.
The Blaisdell’s Business Products, Staples Business Advantage, and 4IMPRINT INC cooperative agreement contracts serve multiple City departments. The requested actions include both approval of these contracts and additional contract funding.
Staff recommends approval of the proposed resolution to allow for uninterrupted operations citywide. If the proposed resolution is not approved, the Finance Department’s Purchasing Unit would have to conduct a series of individual solicitations for similar commodities, which would likely delay business operations for departments across the city. Approval of the proposed resolution would support all City departments’ required needs for such items as office supplies and furniture, photocopier paper and toner, and City logo items distributed at community events.
Approval of the proposed resolution would support all City departments and priorities, including holistic community safety and vibrant, sustainable infrastructure, by allowing for ongoing citywide operations.
FISCAL IMPACT
Funding is available in the FY 2023-25 Budget in various departmental accounts across multiple funds. Departments may only access these contracts subject to the availability of Council- authorized appropriations.
PUBLIC OUTREACH / INTEREST
No outreach was deemed necessary for the proposed policy action other than what was already conducted during the FY 2023-25 Budget process.
COORDINATION
The Finance Department prepared the requested action. This report and resolution were reviewed by the Office of the City Attorney and Budget Bureau.
Jestin D. Johnson, City Administrator
Subject: Citywide Cooperative Agreements
Date: March 21, 2024 Page 3
Finance & Management Committee
April 23, 2024
Erin Roseman (Apr 10, 2024 16:57 PDT)
SUSTAINABLE OPPORTUNITIES
Economic: There are no significant economic impacts associated with approving this resolution, but the recommended action is the most efficient way to carry out the City’s service needs for FY 2023-25.
Environmental: There are no significant environmental opportunities associated with this report.
Race & Equity: Resources gained from cooperative agreements will support citywide operations. As the City’s budgeted activities increasingly prioritize race & equity, these agreements for goods and services support that mission.
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Adopt A Resolution Approving, In Accordance With City Council Budget Appropriations And Allocations As Adopted By The Fiscal Year 2023-25 Budget, Ongoing Cooperative Purchase Agreements Exceeding $250,000 For Citywide Commodities And Services Contracts As Set Forth In Table 1 In An Amount Not To Exceed Six Million Five Hundred Thousand Dollars ($6,500,000.00).
For questions regarding this report, please contact Laura Gonzales-Woodward, Contracts & Purchasing Manager, at 510-238-7154.
Respectfully submitted,
ERIN ROSEMAN
Director, Finance Department
Reviewed by:
Laura Gonzales-Woodward
Contracts & Purchasing Manager
Attachments (1)
Prepared by:
Hassan Lecky
Senior Buyer
A: Table 1: Citywide Ongoing Cooperative Agreements Seeking Authorization with Authority to Increase Contract Value