SR-8-D (11)
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Council Mtg.
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Santa Mon~ California
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FROM
Mayor and City Council
City Staff
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SUBJECT: COMPETITIVE BID PURCHASING PROCFDURES
MAY 8 1979
Introduction
This report transmits for introduction and first reading
the attached ordinance which provides for the amendment of Santa
Monica Municipal Code Sections 2506. 2506A, 2507, 2508,2508A and 2509.
Background
The competitive bid purchasing procedures set forth in
Santa Monica Municipal Code Sections 2506, 2506A, 2507, 2508, 2508A,
and 2509 were last amended on April 10, 1951
Since that time, the
council has authorized exception to the competitive bid procedure, and
inflationary factors have lowered the purchasing power of the two
thousand dollar ($2,000) minimum which is the amount required to
trigger tr.e formal competitive bid procedure. At this time, all
purchases under two thousand dollars ($2,000) are subject to informal
bid procedures
For the current fiscal year, 41.16% of all purchases
obtained through the informal bid procedure were for sums less than
two hundred fifty dollars ($250.00). Reduction in the number of formal
bids, revision of the informal bid requirements and the establishment of
purchase order procedures for individual purchases under two hundred
fifty dollars ($250.00) will result in significant saving to the City
The attached ordinance establishes a minimum threshold for
formal bid procedures at five thousand dollars ($5,000), a two hundred
fifty dollar (S250.00) minimum threshold for informal bid procedures
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MAY 8 1979
CA RLK. SSS'mc
eouncil Htg.
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Santa Monica, ~ifornia
and purchase order procedure for sums under that amount. The comp-
etitive bid procedure, both informal and formal, will be employed in
all instances where the savings potential will make this action
reasonable.
Alternative Solutions
The City Council may adoDt the enclosed ordinance or the
Citv Council may decide to keen the competitive bid Drocedures the
way they currently exist.
Recommendations
It is respectfully recommended that the City Council introduce the
enclosed ordinance.
Prepared By' Richard L. Knickerbocker. City Attorney
Stephen Shane Stark, Assistant City Attorney
Richard N. Aronoff, Purchasing Agent
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