Item Coversheet
City of Independence
AGENDA ITEM COVER SHEET
BILL NO. 19-0271st R

Agenda Title:

19-027 - 1R.  An ordinance amending Chapter 8 Article 6 “Purchases and Sales” Section 2, Section 3, Section 4, and Section 7.
Recommendations:

Recommendation from Audit and Finance Committee for City Council action to approve an ordinance amending Chapter 8 Article 6 “Purchases and Sales” Section 2, Section 3, Section 4, and Section 7.
Background:

The City Charter Section 3.35 authorizes the procurement manager (agent) to contract for purchases under such regulations and with such exceptions as the Council may provide. The last significant modifications to City Code Chapter 8 Article 6 “Purchases and Sales” were done in 2017. The major revisions proposed to Chapter 8 include:

 

Section 8.06.003 was last modified April 2010, Ordinance 17533, setting the City Council approval requirement for contracts and purchases at $50,000.  The Procurement Division performed a study (attached) in 2019, comparing governing body approval levels of four government agencies in Missouri and three government agencies in Kansas. The study revealed that five of the agencies require approval at $100,000 or more or approval by City Manager or City Attorney.  Staff recommends the Independence City Council approval level be increased to $100,000.  Purchases made between $50,000 and $100,000 will be reported by the City Manager to the City Council for review.

 

Section 8.06.003 Paragraph A1, will set the formal bid limit at $100,000 and above, formerly $50,000, and require City Council approval for any contract exceeding $100,000, formerly $50,000. Competitive bidding will still be required as stated in the current code.

 

Section 8.06.003 Paragraph A2, will set the informal bid limit to $100,000 or less, formerly $50,000, and will not require City Council approval prior to award.

 

Section 8.06.003 Paragraph B, will set the competition threshold for professional services at $100,000 and require City Council approval for contracts that exceed $100,000.

 

Section 8.06.003 Paragraph C, will set the City Council approval level for public improvements at $100,000, formerly $50,000.

 

Section 8.06.003 Paragraph D, will set the City Council approval level for change orders at $100,000, formerly $50,000, or 10% of the original contract amount.

 

Section 8.06.004 Paragraph 4, will set the City Council approval level for cooperative purchases at $100,000, formerly $50,000.

 

Section 8.06.006, will set the City Council approval level for emergency purchases at $100,000, formerly $50,000.

 

On April 26, 2019, the Audit and Finance Committee voted to recommend the proposed changes of the City Code.  Upon approval of these City Code changes, a resolution will be submitted to the City Council to make revisions to the City's Procurement Policy, which will incorporate these changes.


Department:          Finance & AdministrationContact Person:          Bryan Kidney


REVIEWERS:
DepartmentAction
Purchasing Division (Finance Department)Approved
Finance DepartmentApproved
Law DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved

Council Action:          Council Action:          Accepted

ATTACHMENTS:
DescriptionType
2019 Thresholds StudyBackup Material
OrdinanceOrdinance