SR 06:215 - Laserfiche WebLink

Manager. As a result, the level of authorization is determined not only by the value of the purchase, but also as a result of the bidding process. As part of the City's annual purchasing process, individual vendors are provided with purchase orders authorizing departments to make numerous as-needed purchases on a regular basis throughout the year. These purchases range from office supplies to automobile parts to fertilizers and computer equipment. The products purchased from the vendor will vary, As an example, a firm operating in accordance with a purchase order for office supplies may, in fact, have many individual sales with the City, all of which are valued at less than a few hundred dollars. Because the individual purchases have values that are within approved purchasing limits, they are generally authorized by mid-managers or line staff in one department. Further, many of these are purchases from a sole source vendor or tied to a particular purchasing contract. As an example, TESCO Controls provides technical support to Utilities for our Supervisory Control and Data Acquisition (SCADA) system which has been exclusively purchased from TESCO over the past twenty years, In addition, collectively, the value of the purchases on an annual basis does not exceed $50,000, which is the amount that could require City Council approval. In reviewing this year's listing of open purchase orders, staff identified a number of vendors that, based on previous activity, will provide products that collectively may be in excess of $50,000. As a result, staff determined that it is appropriate to forward these to the City Council for approval prior to issuing a purchase order, As indicated, because it is uncertain what the total value of the purchase will be, Council approval may not be necessary, Further, the individual purchases are generally less than $5,000, which does not require competitive bidding. Attachment A includes a listing of the vendors, products, projected purchase amount and the justification for purchasing in this manner, but does not include products that are part of a previously approved purchase agreement. Competitive Biddinl! Last year, after reviewing the annual listing of open purchase orders for the Public Works Department, staff determined that it would be necessary to conduct a competitive bid for all collective purchases whenever possible in excess of $50K, Support Services required bids for fuel, pool chemicals, and automotive tires, Fuel vendors could not provide a fixed bid for a one-year period due to the ever changing pricing of fuels, Valley Oil provided a letter with their daily cost of fuel and Staff agrees that this is the most reasonable method for selecting a fuel vendor (see attached Exhibit A). Valley Oil has been providing fuels to the City for over eight years with exceptional services, Pool chemicals can be purchased in bulk from two vendors in the Bay Area; however, Lincoln Commercial Pool equipment provides the delivery method of the chemicals, Staff does not have the equipment or licenses to pick-up chemicals in bulk and therefore, recommend purchasing from Lincoln for pool chemicals, Staff looked for the best pricing for vehicle tires and found that Rossi Commercial Tire, Inc, was awarded the "State Bid" (see attached Exhibit B), SR 06:215 Page 2 of3