City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Ken Irwn, City Manager
BY: Jennifer Riedeman, Finance Director
MEETING DATE: June 18, 2024
ITEM NO: 7.1
SUBJECT: Approve First Reading and Introduction of Ordinance No. 873, Reading by Title only, Waiving Further Reading, an ordinance of the City Council of the City of Patterson, Amending Chapter 3.08, Procurement, of the Patterson Municipal Code, and adopt Resolution No. 2024-40, amending the City of Patterson’s Procurement Policy.
RECOMMENDATION
Motion to Approve First Reading and Introduction of Ordinance No. 873, Reading by Title only, Waiving Further Reading, an ordinance of the City Council of the City of Patterson, Amending Chapter 3.08, Procurement, of the Patterson Municipal Code, and adopt Resolution No. 2024-40, amending the City of Patterson’s Procurement Policy.
BACKGROUND
The City of Patterson (“City”) last updated Chapter 3.08 of the Patterson Municipal Code (“Chapter 3.08”) in 2012. Updates are needed to reduce the administrative burden on staff and to provide additional clarity around procurement requirements and procedures.
The Procurement Policy was adopted in 2012 to align with Chapter 3.08. Updates to the Procurement Policy are needed to align with the amendments to Chapter 3.08 and to provide additional clarity and guidance for staff.
ANALYSIS
Ordinance
Chapter 3.08 in its current form requires a purchase order to be submitted for all procurements of $500 or more, and the City desires to increase this limit to lessen the administrative burden on staff. State law permits Patterson to raise the limit to $5,000, which is reflected in the amendments to Chapter 3.08.
Chapter 3.08 also imposes certain responsibilities on the City Manager, for example requiring the City Manager to select the lowest responsible bidder as part of the informal bid process. The amendments to Chapter 3.08 would allow the City Manager’s designee to absorb some of the responsibilities currently delegated to the City Manager.
The amendments to Chapter 3.08 provide additional clarity around the requirements for professional service contracts to ensure compliance with Government Code section 4526. The amendments to Chapter 3.08 also remove the requirement for all professional services contracts to be submitted to the City Council and only require professional services contracts to be submitted to the City Council if the cost estimate is over $100,000, which is consistent with the requirement for non-professional service contacts under Chapter 3.08.
The amendments to Chapter 3.08 allow the City to utilize cooperative purchasing as permitted under state law. Cooperative purchasing reduces the administrative burden on the City by allowing the City to piggyback on competitively bid cooperative purchasing agreements of other public agencies.
The City adopted the California Uniform Public Construction Cost Accounting Act (“CUPCCAA”) before Chapter 3.08 was enacted in its current form, but Chapter 3.08 provides no detail about the CUPCCAA requirements. The amendments outline the CUPCCAA requirements, which will reduce the administrative burden on the City.
The ordinance makes additional non-substantive clarifying amendments to Chapter 3.08.
Resolution
The amendments to the Procurement Policy align the policy with the amendments to Chapter
3.08. The Procurement Policy contained multiple outdated references to federal law and federal resources, and the outdated references and resources are updated by the amendments.
Additional amendments to the Procurement Policy provide further guidance and clarity regarding the City’s procurement process and ensure that staff comply with local, state, and federal requirements.
The amendments make additional non-substantive clarifying changes to the Procurement Policy.
FISCAL IMPACT
The amendments to Chapter 3.08 and the Procurement Policy for the most part reduce the administrative burden on staff. The fiscal impact from this ordinance and resolution should be minimal and may save the City money in the long term.
POLICY ALTERNATIVES:
1. Motion to waive first reading, read by title only, and introduce the proposed ordinance amending Chapter 3.08 of the Patterson Municipal Code and the proposed resolution amending the Procurement Policy;
2. The City Council may continue introduction of the proposed ordinance and resolution to a later City Council meeting, with direction to staff to provide changes; or
3. Reject the adoption of the proposed ordinance amending Chapter 3.08 of the Patterson Municipal Code and proposed resolution amending the Procurement Policy.