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City of Seal Beach � All t
Agenda Report
Date: July 9, 2001
To: Honorable Mayor and City Council
From: John B. Bahorsk9b
City Manager //
Subject: Revisions to the Seal Beach Purchasing System
SUMMARY OF REOUEST:
Staff has reviewed Article III, Chapter 2 of the Seal Beach Municipal Code related to
purchasing of supplies and equipment and has found a need to update many of the
existing provisions. An ordinance has been prepared for City Council consideration that
would improve the purchasing process and give better guidance to staff.
During a review of the Seal Beach Municipal Code and discussions with staff it has
become apparent that the purchasing provisions of the Municipal Code are out of date
and expenditure limits inhibit the effective and efficient purchasing of supplies and
equipment. In addition the current purchasing system does not have sufficient guidance to
allow staff on how to apply the provisions with the purchasing code.
In order to correct these deficiencies, staff surveyed municipal codes from other cities to
revise Article III, Chapter 2. Staff has prepared a redlinelstrikeout version of the
proposed changes to Article III, Chapter 2. Changes to Article III, Section 2 of the
Municipal Code include the following recommended changes:
• Delete Section 2 -20 establishing the creation of a centralized Purchasing Department.
In reality the City has never had a centralized purchasing function and it would be
cost prohibitive to create a purchasing department.
• Currently the City Code uses the term agency or agencies; this has been clarified to
use the terms department or departments.
Agenda Item K
• It is recommended that the formal bid limit be changed from $5,000 to $15,000.
Using the formal bid procedure for minor purchases is inefficient and time
consuming. Preparing bid specifications and publishing notices often can cost more
than the equipment being purchased. Staff is also comfortable raising the dollar
limits since there is greater management control with the new financial software and
budget policies.
• The informal bid procedure has been completely rewritten to provide greater
guidance to staff and more management control over the purchasing process. These
recommended changes provide clear direction to staff on the purchasing requirements
based for each category of purchases.
Due to City Charter provisions no changes can be made to the contracting limits for
public works projects. However, staff is recommending that City Council place a Charter
amendment on the next election to increase the limit for public works contracts.
FISCAL IMPACT:
No fiscal impact.
Introduce Ordinance Number _ Amending Article III of Chapter 2 of the City of Seal
Beach Municipal Code.
A. Article III Chapter 2 (current)
B. Article III Chapter 2 (redline /strikeout version)
C. Ordinance Number _ Amending Article III of Chapter 2