Title
An Ordinance authorizing the City’s use of the Cooperative Purchasing Contracts, set forth in Exhibit A and on file with the City Clerk, for the acquisition of equipment that have an estimated annual spend at or exceeding $50,000.00, and authorizing the City Manager to execute the same by and on behalf of the City.
(NOTE: First reading by Council on June 18, 2019. Passed by unanimous vote.)
Body
Issue/Request:
An Ordinance authorizing the City’s use of the Cooperative Purchasing Contracts, set forth in Exhibit A and on file with the City Clerk, for the acquisition of equipment that have an estimated annual spend at or exceeding $50,000.00, and authorizing the City Manager to execute the same by and on behalf of the City.
Key Issues:
The Procurement and Contract Services Division is requesting approval of an ordinance authorizing the City of Lee’s Summit to utilize cooperative contracts for equipment that have an annual spend of $50,000 or more ("the Approved List").
The City Council on an annual basis authorizes the participation and use of cooperative contracts by the City.
Cooperative contracts with an actual or estimated annual spend that is equal to or exceeds $50,000.00 require City Council approval per Sections 5.4 and 5.5 of the Procurement Policy.
Proposed City Council Motion:
I move for adoption of an Ordinance authorizing the City’s use of the Cooperative Purchasing Contracts, set forth in Exhibit A and on file with the City Clerk, for the acquisition of equipment that have an estimated annual spend at or exceeding $50,000.00, and authorizing the City Manager to execute the same by and on behalf of the City.
Background:
Pursuant to the City of Lee’s Summit Procurement Policy, adopted by the City Council on October 5, 2017, via Ordinance No. 8253, the City may participate in and use cooperative purchase contracts. Sections 5.4. and 5.5 of the Procurement Policy authorize the City Manager to execute an cooperative contract so long as the estimated annual spend of such contract is less than $50,000.00. If the estimated annual spend of the contract is $50,000.00 or more, however, the contract must be approved by the City Council.
The Procurement and Contract Services Division reviews the amounts the City spends on cooperative contracts at least annually to identify any contracts that were originally estimated to spend less than $50,000.00 annually, but now exceed $50,000.00. As a result of such review, the City has identified that estimated annual spend of the cooperative contracts for equipment set forth in Exhibit A, attached, is $50,000.00 or more and therefore such contracts must be approved by the City Council before the City may use them in the future.
As with each cooperative contract the City uses, the contracts listed in Exhibit A were reviewed to ensure they were competitively awarded and that they were in the best interests of the City. A full copy of each contract listed in Exhibit A is on file in the office of the City Clerk.
Impact/Analysis:
Approval of this Ordinance would allow the City of Lee’s Summit to continue to use cooperative contracts for the purchase of equipment with an estimated annual spend of $50,000 or more and continue to take advantage of economies of scale and reduction in administration costs which exemplifies the conscientiousness and cost effective use of tax payer dollars.
Presenter
Rick Gentry, Procurement and Contract Services Manager
Recommendation
Staff recommends approval.
Committee Recommendation
The June 10, 2019 Finance and Budget Committee meeting was cancelled so this item was sent directly to City Council.