City Council Regular Meeting


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  13.A.       
Meeting Date: 04/07/2021  
From: Jenny McAdams

RECOMMENDATION
Hold a concept review and discussion to amend Pacific Grove Municipal Code Chapter 2.16 to incorporate quarterly reporting to section 2.16.16, add definition of $35,000 expenditure to section 2.16.160, and add a “Local Preference Procurement Program”.
DISCUSSION
The competitive bidding process usually involves public advertisement for the submission of sealed bids, the public opening of bids, and the award of contracts to the lowest responsible bidder that is responsive to the solicitation for bids. This process is almost exclusively governed by statute. The Public Contract Code applies in one respect or another to virtually all public entities in California. Incorporating clarification into the ordinance and quarterly reporting is fiscally responsible and another step in the right direction for accountability and transparency to the residents of Pacific Grove and the public.

The current Pacific Grove Municipal Code (PGMC) Section 2.16.160 does not define the City Manager’s $35,000 spending authority, the number of uses or dollar amounts per fiscal year, the number of uses or dollar amounts per vendor, the number of uses or dollar amounts per project, and lacks a reporting mechanism.

These contracts and expenditures are exempt from our formal and fair bidding practices as per section 2.16.080 Bidding procedures of the PGMC.
 
Prior to 2017/2018, “the City did not have an established purchase order system”. Below are the contracts approved by the City Manager:

Year                Amount
2020/2021       $1,217,144.76 (through 2/25/2021)
2019/2020       $1,265,993.18
2018/2019       $1,460,497.28

A sustainable economy is the result of a healthy local economy. By adding and codifying a “Local Preference Procurement Program'', the City of Pacific Grove will lead by example in supporting our local businesses and our tax base. This purchasing procedure will ensure a portion of the total bid price for the procurement of supplies, materials, or equipment comes from a Pacific Grove business located within the City limits and with a valid business license. This would not apply to construction services or specialty services.

GOAL ALIGNMENT
Financial Stability: Develop a strategic plan to better address current and future City expenditure and revenue needs while continuing to provide high quality municipal service.

Community Responsiveness: Develop and implement systems, interfaces and infrastructure to better communicate with the public.

Help Local Businesses Thrive: Review, and revise existing policies and programs, and develop a strategic plan to better serve existing businesses while attracting new commerce to better stimulate the economy and revitalize commercial corridors, especially the downtown.
OPTIONS
1. Direct the City Attorney’s office to return with a draft ordinance.
2. Provide other direction.
3. Take no action.
FINANCIAL IMPACT:
There is no fiscal impact.
  
GOAL ALIGNMENT: See Goal Alignment within Discussion section.
Attachments
PGMC 2.16 Purchasing System and Procedures
Contracts Approved by City Manager
Powerpoint Presentation


    

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