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HomeMy WebLinkAbout2011-50 Dollar limits for open market procurementsRESOLUTION NO. 2011-50 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH INCREASING THE DOLLAR LIMITS FOR OPEN MARKET PROCUREMENTS PURSUANT TO UKIAH CITY CODE SECTION 1522. WHEREAS, 1. Ukiah City Code ("UCC") Section 1522 specifies when contracts for supplies and equipment, maintenance, and personal services may be awarded without additional notice to the City Council, when the contract may be awarded without prior City Council approval, but must be reported to the City Council at its next regular meeting after the purchase has been made, and when the award of the contract requires prior City Council approval; and 2. The above-described treatment of these purchases depends on the dollar amount of the purchase; and 3. Subsection D.1 in UCC Section 1522 authorizes the City Council to revise the dollar limits specified for contracts for supplies and equipment, maintenance, and personal services by resolution without amending the City Code; and 4. The City Council has determined that: a. dollar limits in Section 1522 have not been revised since the ordinance was originally adopted in 1991; b. The effects of inflation over the past 20 years make the current limits unrealistically low; c. A review of dollar limits in other comparable jurisdictions shows that the current dollar limits in Section 1522 are substantially below the dollar limits in these other jurisdictions; and d. Substantial staff time is unnecessarily consumed in preparing agenda summary reports and other documentation, to report purchases that are permitted without prior City Council approval and to obtain prior City Council approval for purchases in excess of $10,000; and 5. Open market purchases authorized by Section 1522 may be used only if the purchase is included within an approved fund account and an unencumbered appropriation exists in the fund against which the purchase may be charged; NOW, THEREFORE, BE IT RESOLVED as follows: 1. The dollar limits in UCC Section 1522.6.1, governing Supply and Equipment Contracts, except as provided in paragraph 5, below, are changed from $10,000 to $30,000 and from $5,000 to $20,000, respectively. 2. The dollar limits in UCC Section 1522.C.2.a, governing Maintenance Contracts, and C.3.a, governing Personal Service Contracts, are changed from $10,000 to $20,000 and from $5,000 to $10,000, respectively. 3. The dollar limit in UCC Section 1522.13.2, governing Supply and Equipment Contracts, except as provided in paragraph 5, below, are changed from $10,000 to $30,000. 4. The dollar limit in UCC Section 1522.C.2.b, governing Maintenance Contracts and C.3.15, governing Personal Service Contracts, are increased from $10,000 to $20,000. Resolution No. 2011-50 Page 1 of 2. 5. The dollar limits in UCC Section 1522.B.1, governing Supply and Equipment Contracts, are eliminated for the following purchases of consumables: a. Electric utility purchases of: i. Conductor cable; ii. Power poles; iii. Transformers; iv. Vaults; v. Switchgear vi. Miscellaneous routine inventory replacement items. b. Water and sewer utility purchases of: i. Chemicals for water and wastewater treatment; and ii. Miscellaneous routine inventory replacement items. 6. The effect of this resolution on UCC Section 1522 is illustrated in the attached Exhibit A. 7. This resolution shall become effective on December 8, 2011, and shall apply to purchases initiated or pending on the effective date. Solicitations or requests for bids which have been issued and bids that have been received but not awarded prior to the effective date shall be further processed using the higher dollar thresholds in this resolution. PASSED AND ADOPTED this 7t" day of December 2011, by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Baldwin, and Mayor Rodin NOES: None ABSTAIN: None ABSENT:None Mari Rodin, Mayor ATTEST: 1 O Q Anne Currie, City Clerk Resolution No. 2011-50 Page 2ofX