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Home My WebLink AboutCC AG PKT 2013-06-24 #I AGENDA STAFF REPORT DATE: June 24, 2013 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Victoria L. Beatley, Director of Finance/City Treasurer SUBJECT: CITY CHARTER SECTION 420 — CONTRACTS EXECUTION SUMMARY OF REQUEST: That the City Council adopt Resolution No. 6384 authorizing the City Manager to bind the City for the acquisition of equipment, materials, supplies, labor, services or other items included within the budget pursuant to City Charter Section 420 — Contracts Execution. BACKGROUND AND ANALYSIS: Section 420 of the City Charter provides that the City Council may authorize the City Manager by resolution or ordinance to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services or other items included within the budget approved by the City Council, and may impose a monetary limit upon such authority. By adopting the attached resolution, the City Council will authorize the City Manager to bind the City to acquire such items up to the current purchasing threshold for each acquisition. This limit is currently $28,850 and is adjusted each year based upon a formula provided in Section 1010 of the Charter. Many cities authorize city managers to contract for such items within the constraints of the approved budget. This practice provides flexibility to acquire goods and services in an expedient manner. Using the purchasing threshold provides a prudent guideline within which the City Manager can commit funds of the City. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. Agenda Item LEGAL ANALYSIS: The City Attorney has reviewed and approved the resolution as to form. FINANCIAL IMPACT: There is no financial impact associated with the granting of the authority. RECOMMENDATION: That the City Council adopt Resolution No. 6384 granting the City Manager authority to bind the City in an amount not to exceed the current purchasing threshold. SUBMITTED BY: NOTED AND APPROVED: Victoria L. Beatley A 91A. Ingram, City ) �a ager Director of Finance/City Treasurer Attachments(s): A. Resolution No. 6384 Page 2 RESOLUTION NUMBER 6384 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL AUTHORIZING THE CITY MANAGER TO BIND THE CITY FOR THE ACQUISITION OF EQUIPMENT, MATERIALS, SUPPLIES, LABOR, SERVICES OR OTHER ITEMS INCLUDED WITHIN THE BUDGET PURSUANT TO CITY CHARTER SECTION 420 THE SEAL BEACH CITY COUNCIL DOES HEREBY FIND AND RESOLVE: Section 1. Section 420 of the City Charter states the City Council may authorize the City Manager by resolution or ordinance to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services or other items included within the budget approved by the City Council, and may impose a monetary limit upon such authority. Section 2. Section 1010 of the City Charter establishes a bidding threshold amount for the construction or improvement of public works or for the purchase of supplies or materials for any such project. Section 1010 further provides a formula and method for annually adjusting the bidding threshold amount. The current bidding threshold amount is$25,850. Section 3. Pursuant to the authority conferred by Section 420 of the City Charter, the City Council hereby authorizes the City Manager to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services or other items included within the budget approved by the City Council up to an amount for each acquisition equal to the bidding threshold amount for public works projects then applicable under Section 1010 of the Charter. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 24th day of June , 2013 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Mayor ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6384 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 24th day of June 2013. City Clerk City Charter ^-^~~~'r~~' SECTION 420. Contracts. Execution. The City shall not be bound bv any contract, except aa hereinafter provided, unless the same shall ba made in writing, approved bv the City Council and signed on behalf ofthe City by the Mayor and City Clerk or by such other officer mr officers as shall be designated by the City Council. Any of said officers shall sign a contract on behalf of the City when directed todouoby the City Council. By ordinance or resolution the City Council may authorize the City Manager to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, |abor, services or other items included within the budget approved by the City Counni|, and may impose a monetary limit upon such authority. The City Council may by ordinance or resolution provide a method for the ae|e or exchange of personal property not needed in the City Service or not fit for the purpose for which intended and for the conveyance of title thereto. Contracts for the ee|m of produutm, commodities or services of any public utility owned, controlled or operated by the City may be made by the Manager of such utility or by the head of the department or City Manager upon forms approved by the City Manager and at rates fixed by the City Council. The provision of this Section shall not apply to the services rendered by any person in the employ of the City sda regular salary. SECTION 1010. Contracts on Public Works. The {}hv Council shall adopt policies and procedures governing contracting for public works which are defined to include the construction or improvement of public buildings, works, streets, drains, sewers, utilities, parks or playgrounds. The City Council may' in its ao|a discretion, adopt selected policies and procedures by reference to state law, but no state law shall govern public works contracting unless it is expressly adopted by the City Council or has been finally determined to be applicable to all charter law cities by an appellate court with jurisdiction over the City of Seal Beach. Except as otherwise provided inthis Charter or by state law made applicable tothe City ofSeal Beach, the City Council shall award to the (uvvemt responsible bidder each contract involving an expenditure of more than the bidding threshold amount (as defined in this Section)for the construction or improvement of public works or for the purchase of supplies or materials for any such project. Bids shall be solicited via notice by publication in the official newspaper by one or more inmert|ons, the first ofwhich aheU be at least ten (10) days before the time for opening bids and such other forms of notion as the City Council may direct. Public Works are exempted from the requirements of this Section where the work will bm performed bya City or County of Orange department. All bids may be accompanied by either a certified or cashier's check, or a bidder's bond executed by a corporate surety authorized to engage in such business in California, made payable to the City. Such security shall be in an amount not less than that specified in the notice inviting bids or in the specifications referred to therein, or if no amount be so specified then in an amount not less than ten percent (1O%) of the aggregate amount of the bid. |f the successful bidder neglects or refuses to enter into the contract, within the time specified in the notice inviting bids or in the specifications referred to therein, the amount of his bidder's security shall be declared forfeited to the City and shall be onUmohed and paid into its general fund, and all bonds so forfeited shall be prosecuted and the amount thereof collected and paid into such fund. The City Council may reject any and all bids presented and may re-advertise in its discretion. The City Council, without advertising for bids, or after rejecting bids, or if no bids were received, may declare and determine that in its opinion, based on estimates approved by the City Manager, the work in question may be performed batter or more economically by the City with its own employees or the supplies or materials may be purchased more economically on the open market. Contracts likewise may be let without advertising for bids, if such vvorh, supplies or materials uhoU be deemed by the City Council to be of urgent necessity for the preservation of |ife, health, or property. In either event, the Council shall adopt o resolution with findings supporting the letting of a contract without advertising for bids by at least three (3) affirmative votes of the Counoi|, after which the City may proceed to have such work done or said supplies and materials purchased in the manner stated, without further observance of the provisions of this Section. The bidding threshold amount shall be Twenty Thousand Dollars ($20'000) iniUa||y, and shall annually be adjusted by the City Engineer upon confirmation by the City Council. On June 1mtof each year, the City Engineer shall compute the percentage difference between the current Engineering News Record Construction Cost Index—20 City Average (ENR) and the ENR for the previous June 1st. The City Engineer shall adjust the bidding threshold amount by such penoentaQa, rounding tothe nearest dollar. The City Council shall review such adjustment ata public hearing and upon Council confirmation; the bidding threshold amount shall be the adjusted figure. Should the ENRbm revised or discontinued, the City Engineer shall use the revised index ora comparable index approved by the City Council. (Amended 2002)