SR-205-001-01 (4)
PUj.RNnj.fMJ
Co uncIl MI~eT I ng M<:l Y 24) 1983
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Sdn l'Mon lea)
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Ca I .L for rn a
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W>.'f 2 <1 \9R3
TO:
MAYOR AND CITY COUNCIL
FROM:
ClTY STAFF
SUFl,j EC r:
R~COMMPnddtlon to AMend Sectlon 2507 and Sectlon 2508,
SMMC relating to I]Mlt~ for convenience Purchase Orders
and FOrM,)l Bldd Ing Pr(lcetlures.
lrlJl:...2.!J u (" J 1 0 !l
1 h 1 ,:) r e p () r t I ':; a f 0 11 0 W - U P 0 nth e M <if r c h 8) 1 983 I e p 0 r t tot h ~ M cl Y 0 I
and City Caunell on the saMe subJect (copy attached). Addltlonal
InforMdt1on L~ noted hereLn 1n an eFfort to ~rtdreuu the Councll's
concerns 1n thIs Matter.
~'J c,kqr 0 ynd
Each forMal b.Ld process lS estlMated to Take approX1Mately 40 hour3
of varlOUS eMployee's 't1Me In the US11\g departMent 1 the Manager' '<...
Of~'1ce,
the Fln~ncc DepartMent and the PurcMaslng D~partMent,
Addlt1onal1y ~ach forMal bld becoM~S an agenda lteM for the Clty
CO\!rlCll. InforMal proo~ssl ....5 dt",:>cr'lb~.HI 1n our Maf'ch 111 1983 lepof't1
rpqulres an approx~Mate1y three to 'en eMploy~e hours ~or each bl(l.
ApprOXIMa1ely ~O hours of the above 1 LMe IS by Purcha.~ng DepartMent
personnel on e>ac.h forMal bId. Appr'oX1Mdtely 5 hours Purchasing
DepdrtMen t tlMP 1', us(?d for' (~ach InforMal b.Ld on the averago, tf
the b1d I1M1t were ralsed TO $25,000 as request~d In 1.he M.2rch Bth
~taff report, approxIMately 100 forMal bIds would be el~Mlnd1ed p~r
year) f,eeIng approxlMately 1500 hours 1n purcha~~ng for 1he ta<,ks
of enhan( 109 othur progrRMs such ~s the WMBE progrdM and Increa~Lng
the
quallty of the bId sp~clf!c~tlons
Cln("\ i?'..!j~lu<'j tlons,
If the
LlIdll_D
1
MAy 2 4 1983
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PU~RNA,-fMJ
Councl1 Meellng May 24~ 1983
e
Ban t'M 0 n ~ c a) C a 11 for n I cl
I~MLt weru to be r~~s~d to $15,000 Instecld of .2~,OOO, approxIMately
500 hours would be avallable In the Purthdslng DepartMent -for the
saMP tasks.
Vendors have corresponded wLth
the Purchas~ng DepartMent both
verbally and 1n wrltlng express Lng th~lr preference for a hlgl10r
lJMLt for forMal b!d~. Reasons CJtM~ lnclude:
a) Less vendor tIMe would be needed to COMplete In-forMdl bIds {'or
the SMaller ticket ,tPMS.
Le~s tlMP 15 r~qulred to COMpl~te
these bIds SInce vendors are not facpd WIth the MInIMUM of
5-7 page~ of forM~l bld "bOllpr ~]ate" and speclflrat!Ons
are S~Mp]lfled through closer contact With Cl1y personn~l.
lh,~ savlng could be consldered whpn prlclng thH artlcles on
the bl.d.
b) Mot.lVdtlon far' a vendor to bl~ d sMi,ller 1lrket IteM wO\lld bp
enhanced Slnce the p~eparatlon ~lMe would re~respnt ~ SMaller
percentaqe of the profLts to bp r~al!zed,
c) WOMen/MlnOrl.ty Vendors clnd SMaller un~on shops ri5 well as
o1h~r sMcll1er vendors Will be bettQr able to responrl to lnforMal
blddlng process~s because of the qUlcker turn-around tlMe
fac llltated by the lnforMdl proLPss,
As no ted Ln our March
8th report, the inforMal process averages 2-3 weekb to cOMple1e,
th~ forM~L process averages 6-8 wepks. ThiS shorter pro\ess
reduces the tiMe frOM bld to dellvery of the product and
paYMent.
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PU~lxNPq fMJ
Council Meet~ng May 24, 19U3
e
e
Sant.l MonnNa) CalJ.rorn La
A (oMpl81e Iol':>t ot' all the forMal bolds .l.s".)u~d froM May 1981 throuqh
NoveMber 1982 ~s attached for your further InforMation.
Thp ahove fJve paragraphs address Many of the areas of concern
vOiced by CouncllMeMbers at the March 8th Council Me~tlng.
Staff's
best profes~lonal
Op.l.nlOn still lead~ us to r~coMMend d change to
$25,000,
If Council MeMbers still feel diSCOMfort at that level, w~
would rerOMMend an Increase to at l~ast $15,000 at thiS tiMe. We
rec.ognu:~ the IMportance of USJllg the forMal bidding procedure f07'
sHJlnfJCdnt pxpendltures, but It hil<; SIMply bf~lOM~ overwhelMingly
burdenSOMe In the lower priced :tteMs for all partl.eb cOllc€'rnpd.
V~nctor~ flnd.l.t JHSS profoltabl8 to c.oMpete on forMdl bIds Involvolng
the lower aMounts.
USing departMents beCOMe ~rustrated With the
tlM(' 1t
take~ to cOMplpte the proces~ and Purrhaslng DepartMent
eMployees find theMselves spendIny a MaJorolty of theIr tlMP 011 a
SM.lller pm'Lentag8 of the tot.\! doll,)rs spent.
fLf~ ( Q.!1~L~JW..1.St!l
It 15 racoMMonded that the S~nta MonIca MuniCIpal Codp, SectIons
2507 and 2508 be dMMended to change the aMount shown oln S~ctJ on
2~07(1)(cl) to t500.00 and Sertolon 2507(2) and S~ctIon 2508, wherevpr
thf' aMoun t $~, 000 dpp(~ar<:; to read !L~_)OOO. 0.9u'
Prepared by R.N, Aronoff) Dlrecior of Purchaslnq
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