HomeMy WebLinkAbout2002-03-05 City CouncilCity of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: UTILITIES
ATTENTION: FINANCE COMMITTEE
DATE:
SUBJECT:
MARCH 5, 2002 CMR:153:02
REQUEST FOR THE ADOPTION OF AN ORDINANCE PERTAINING
TO THE AUTHORITY OF THE CITY MANAGER TO ACQUIRE
COMMODITIES BY OPEN PURCHASE CONTRACT
RECOMMENDATION
Staff recolmnends that the City Council adopt an ordinance to affirm the City Manager’s
authority to execute open purchase contracts for commodity services. This modification
is reflective of both existing law and long-standing custom and practice of the City.
BACKGROUND
The City Manager has the general authority to enter into and execute contracts under
Article IV of the Charter and Section 2.08.140 of the Palo Alto Municipal Code (PAMC).
Under PAMC Section 2.30.120; the City Manager has the authority to negotiate and
execute open purchase contracts for goods and services for terms of up to three years.
DISCUSSION
Notwithstanding the above provisions, suppliers of electricity and natural gas have
questioned the City Manager’s legal authority to effect the acquisition of energy
commodity services. This has necessitated staff having to seek Council ratification of the
agreements and transactions that the existing City ordinance atithorizes the City Manager
to undertake (CMR 420:01 and CMR 161:01).
The proposed ordinance simply qualifies the generic word "service" by adding the
specific word "commodities" as one of the types of services that may be acquired by
open purchase contract. This minor modification is expected to address any concerns that
energy suppliers might have about the extent of the City Manager’s authority, and it
CMR: 153:02 Page .1 of 2
would eliminate the necessity in the future to secure Council’s ratification of contracts
that preceited the adoption of this ordinance.
POLICY IMPICATIONS
These recommendations are consistent with current City policy and meet the objectives
outlined in the Utilities Strategic Plan. Specifically, the recommendations meet Strategy
No. 3, "Streamline and manage business processes to allow CPAU to work efficiently
and cost-effectively."
ATTACHMENTS
Ordinance of the Council of the City of Palo Alto Amending Section 2.30.120 of
Chapter 2.30 of Title 2 of the Palo Alto Municipal Code Pertinent to the Authority to
Purchase and Commodities by Open Purchase Contracts "
REVIEWED BY:Girish Balachandran, Assistant Director
PREPARED BY:
SHIVA SWAMINATHAN
Senior Resource Planner
DEPARTMENT HEAD:
of utilities
CITY MANAGER APPROVAL:
;ON
Assistant City Manager
CMR:153:02 Page 2 of 2
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING SECTION 2.30.120 OF CHAPTER 2.30 OF
TITLE 2 OF THE PALO ALTO MUNICIPAL CODE PERTINENT
TO THE AUTHORITY TO PURCHASE COMMODITIES BY OPEN
PURCHASE CONTRACTS
The Council of the City of Palo Alto does ORDAIN as
follows:
SECTION i. Section 2.30.120 of Chapter 2.30 of Title 2 of
the Palo Alto Municipal Code is hereby amended, to read as follows:
2.30.120 Open purchase contracts.
~ a~gl__An open purchase contract is a written
agreement with a vendor that establishes a quoted
or maximum price on "any quantity" or an "annual
requirements" basis for parts, commodities, or
services or combinations thereof. "Commodities"
means electric service, natural qas service,
electric and natural qas service, and all related
supplemental or ancillary services.
1_~ Separate open purchase contracts shall be
used for the grouping of parts or commodities of a
like kind, or annual maintenance, based on
predetermined cumulative quantities to be used or
consumed by the city within a set period Of time.
(c) open purchase contracts for commodities,
services, supplies or a combination thereof may be
entered into for a. period of up to thirty-six
months, provided the term of the agreement and
conditions of renewal or extension, if any, are
included in the solicitation document and funds
are available for the first fiscal year at the
time the open purchase contract is issued. Payment
and performance for succeeding fiscal periods (not
to exceed twenty-four months) shall be subject to
the availability and appropriation of funds by the
city council.
~ Open purchase contracts with a value
exceeding $25,000.00 for services, supplies or any
combination thereof shall conform to the bidding
requirements of Section 2.30.120.
020207 syn 0072137
~9~ Open purchase contracts valued at less
than $25,000.00 for services, supplies or any
combination thereof, shall conform to the open
market purchase requirements of Section 2.30.110."
SECTION 2. The City Council hereby finds that this project
will have no significant adverse effect on the environment.
SECTION 3. This ordinance shall become effective upon the
commencement of the thirty-first day after the day of its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney
Mayor
City Manager
Director of Utilities
Director of Administrative
Services
020207 syn 0072137