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HomeMy WebLinkAbout2004-07-13 - AGENDA REPORTS - PURCHASING MUNICODE AMEND (2)CONSENTCALENDAR DATE: SUBJECT: DEPARTMENT: Agenda Item: — is CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented by: July 13, 2004 FIRST READING OF ORDINANCE AMENDING THE CITY OF SANTA CLARITA MUNICIPAL CODE IN RELATION TO PURCHASING Administrative Services RECOMMENDED ACTION City Council introduce and pass to second reading an ordinance entitled, "AN ORDINANCE OF THE CITY OF SANTA CLARITA CALIFORNIA AMENDING CHAPTER 3.12 OF THE SANTA CLARITA MUNICIPAL CODE REGARDING PURCHASING." BACKGROUND As a result of a number of interactions between Councilmembers, City staff, and members of the community, a number of issues surfaced with respect to how the City interacts with the city business community. Some of these issues were addressed in a previous change to the Municipal Code relating to purchasing. The changes proposed in this ordinance are in line with the "Shop Santa Clarita" program and address support of Santa Clarita businesses in a more direct way. There have been a few occasions where a city business lost a contract award by less than $100. This raised a concern over the benefit of City spending on the local economy being lost in the interest of saving a small amount of money. The proposed ordinance amends the bid award procedure to add a "second chance" opportunity for Santa Clarita businesses without increasing costs to the City. This provision would allow the lowest Santa Clarita bidder a chance to amend their bid to match the lowest bid if the Santa Clarita bidder's original response was within 5% of the lowest bid. The intent of the change is to provide an opportunity to keep municipal spending within the community while retaining competitive costs. (DKDtAj3/U(_LSq U 76 SlcO,A �E/aAinit-r Another change is designed to simplify the small -purchase process. The threshold for using the quote process is being raised from $1,000 to $2,000. This recognizes the impacts of inflation since the last change in 1995 and brings the City more in line with other cities. ALTERNATIVE ACTIONS 1) Do not pass ordinance to second reading. 2) Other action as determined by Council. FISCAL IMPACT No direct fiscal impact is expected as a result of this action. ATTACHMENTS Ordinance