sr-120809-7bCity Council Meeting: December 8, 2009
Agenda Item: ~ '~
To: Mayor and City Council
From: Carol Swindell, Director of Finance
Subject: Ordinance Amending Section 2.24.080 of the Santa Monica Municipal
Code to allow City participation in Cooperative Purchasing Agreements
Recommended Action
Staff recommends that City Council approve on first reading the attached ordinance
amending the Municipal Code provision on exceptions to competitive bidding to modify
an existing provision to allow for the purchase of items that have been competitively bid
by agencies outside of the State of California.
Executive Summary
The Municipal Code, as currently written, allows the City to forego competitive- bidding if
competitive bidding procedures have already been utilized by another State of California
agency. Amending the Municipal Code to allow the City to take part in terms negotiated
by agencies outside of the state would allow greater cost savings due to the volume of
purchases made by cooperative purchasing entities, such as U.S. Communities.
Discussion
Cooperative purchasing would allow the City to benefit from favorable pricing obtained
by a pool of governmental entities in a process known as "piggybacking." The ,
Municipal Code, as currently written, limits the City's ability to piggyback on competitive
bids performed by California agencies. This limitation in the Municipal Code does not
allow the City the leverage in purchasing power that would be realized from participation
in nationwide cooperatives, such as U.S. Communities. Over 300 cities and counties in
the State of California participate in the U.S. Communities cooperative, including Los
Angeles, Malibu, Beverly Hills, and Culver City, to name a few.
The current Municipal Code Section 2.24.080 allows exceptions to competitive bidding,
including instances where "Competitive bid procedures have already been utilized, such
1
as in purchasing from Federal, California State or County governments, including
agencies of counties, cities, and special districts and these materials are supplied to the
City at the same or better price." The attached ordinance revises this section of the
Municipal Code to clearly indicate that participation in national cooperatives, which have
competitively bid for material and services, is allowed.
The cost savings from participation in national cooperative purchasing arrangements
can be sizable and maintain the intent of the Municipal Code to foster a high level of
competition in the bidding process. As an example, furniture for the new Big Blue Bus
Administration Building lists at $141,098. Purchasing the same furniture through the
U.S. Communities cooperative would save the City 64 percent, or $90,352. The
savings will vary depending on goods and services procured. In addition, involvement
in cooperative purchasing agreements will reduce staff time required to prepare
competitive bids.
Financial Impacts & Budget Actions
Savings associate with participation in US Communities and other national cooperative
purchasing organizations will be reflected in annual budgets in various departments.
Prepared by: Kellee Mac Donald, Senior Buyer
Approved:
Carol Swindell
Director of Finance
Forwarded to Council:
Attachment: Ordinance
2
City Council Meeting: 12-08-2009 Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION
2.24.080 AS IT APPLIES TO EXCEPTIONS TO COMPETITIVE BIDDING
WHEREAS, Santa Monica Municipal Code Section 2.24.080(b) provides
an exception to the City's competitive bid procedures where competitive bid
procedures have already been utilized by other agencies and the materials and
services are supplied to the City at the same or better price; and
WHEREAS, cooperative purchasing agencies, including nationwide
cooperatives, consist of a pool of government agencies that competitively bid for
materials and services; and
WHEREAS, the City's participation in cooperative purchasing agencies
through cooperative purchasing agreements would allow the City to benefit from
favorable pricing; provide the City with more leverage in its purchasing power;
lead to significant cost savings; and reduce City staff time required to prepare
competitive bids; and
WHEREAS, based on the foregoing, the City finds that specifying
cooperative purchasing agencies as exempt from the City's competitive bid
procedures under Section 2.24.080(b) would allow the City to participate in
nationwide cooperatives and substantially benefit the City,
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY
ORDAIN AS FOLLOWS:
SECTION 1. Subdivision (b) of Santa Monica Municipal Code Section
2.24.080 is hereby amended as follows:
(b) Competitive bid procedures have already been utilized, such as in
purchasing from ,
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~.,~ ,+~~+: ,.+~ ~„ ++.e c+.,+e ,.+ (`n~~fr.rn;n federal, state, county, city or
special district government agencies, or from cooperative purchasing
agencies consisting of such agencies, and these materials and services
are supplied to the City at the same or better price, as was obtained
through the ,
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bid procedures of federal, state, county, city or special district government
agencies, or cooperative purchasing agencies consisting of such
government agencies;
SECTION 2. Any provision of the Santa Monica Municipal Code or
appendices thereto inconsistent with the provisions of this Ordinance, to the
extent of such inconsistencies and no further, is hereby repealed or modified to
that extent necessary to effect the provisions of this Ordinance.
SECTION 3. If any section, subsection, sentence, clause, or phrase of
this Ordinance is for any reason held to be invalid or unconstitutional by a
decision of any court of competent jurisdiction, such decision shall not affect the
validity of the remaining portions of this Ordinance. The City Council hereby
declares that it would have passed this Ordinance and each and every section,
subsection, sentence, clause, or phrase not declared invalid or unconstitutional
without regard to whether any portion of the ordinance would be subsequently
declared invalid or unconstitutional.
SECTION 4. The Mayor shall sign and the City Clerk shall attest to the
passage of this Ordinance. The City Clerk shall cause the same to be published
once in the official newspaper within 15 days after its adoption. This Ordinance
shall become effective 30 days from its adoption.
APPROVED AS TO FORM: