The City’s Purchasing Ordinance is codified at Chapter 3.24 of the Brea City Code. The Purchasing Ordinance defines the procedures for purchasing supplies, materials, equipment, and services; exercises positive financial control over purchases; clearly defines the authority for the purchasing functions; and promotes buying without favor or prejudice. The Purchasing Policy defines the limits for Open Market Purchases, Informal Solicitation Purchases, and Formal Solicitation Purchases, and the local vendor preference amount. The local vendor preference amount is only used for comparison purposes and only in connection with Formal Solicitation Purchases of supplies, materials, equipment, and services.
The City’s current purchasing system was originally established in 1961. Periodically, the Purchasing Ordinance and the Purchasing Policy need to be revised to conform to new and revised legislation, to modernize and clarify requirements, and to update the purchase limits based on various economic factors.
The last significant revision to the Purchasing Ordinance was in 2004 when the City Council adopted Ordinance No. 1076 amending the purchasing procedures for bidding of public projects and emergency procurements pursuant to the Uniform Public Construction Cost Accounting Act (UPCCAA). The remaining portions of the Purchasing Ordinance have remained unchanged since 1987 when the City Council adopted Ordinance No. 818.
The last revision to the Purchasing Policy was in 2008 when the City Council adopted Resolution No. 2008-75, which revised the purchasing limits for the Open Market Purchases from $1,500 to $3,000.
The attached Ordinance No. 1198 will comprehensively revise the Purchasing Ordinance to modernize and clarify the City’s purchasing system consistent with applicable law. The attached Resolution No. 2017-067 which was adopted at the November 7, 2017 meeting will update the Purchasing Policy to improve the efficiency of the City’s purchasing system and, with respect to public works projects, to keep such system consistent with amendments to the UPCCAA. The highlights of the Purchasing Ordinance and Purchasing Policy revisions include:
- Updating the definitions;
- Allowing for electronic bidding;
- Clarifying who can execute contracts and purchase orders;
- Clarifying who is a responsive and responsible bidder;
- Clarifying the acquisition process of professional services;
- Clarifying special circumstances including: Special Government Payments, Legal Notices, Emergency; Procurements, Developer-Funded Professional Services, Public Interest Exemption, Sole Source Procurements, Piggyback or Cooperative Purchase Procurements, and Uniformity Exemption;
- Adding conditions for executing change orders;
- Clarifying surplus personal property disposal: retirement of police dogs; and
- Changing the limits for Open Market Purchases from $3,000 to $5,000 to help account for inflation and State-mandated increases in minimum wage.
The chart below shows the current and proposed Purchasing Policy limits for City operations, which include all non-Public Works projects, and Public Works projects. Other than the increase in the limit for Open Market Purchases for City operations, all other limits will remain the same. Additionally, the local vendor preference amount will continue to be 1% of the bid amount.
| |
City Operations |
Public Works Projects |
| Purchasing Limits |
Current |
Proposed |
Current |
Proposed |
| Open Market |
$3,000 |
$5,000 |
$45,000 |
$45,000 |
| Informal Solicitation (unchanged) |
$25,000 |
$25,000 |
$175,000 |
$175,000 |
| Formal Solicitation (unchanged) |
> $25,000 |
> $25,000 |
> $175,000 |
> $175,000 |
The updates to the Purchasing Ordinance and Purchasing Policy will modernize and clarify the City’s purchasing system consistent with applicable law; improve the efficiency of the City’s purchasing system; and with respect to Public Works projects, keep such system consistent with amendments to the UPCCAA. |