Professional Documents
Culture Documents
Council Report
August 3, 2015
To:
From:
Subject:
RECOMMENDATION:
Receive an update on improvements that have been made to the Citys processing and
oversight of purchasing, including contract administration.
EXECUTIVE SUMMARY:
On 5 May 2015, Council received an investigative report on the Citys contracts. During this
agenda item, Council provided direction regarding items to be implemented as an effort to
monitor contracts and related expenditures. The purpose of the 3 August report is to provide
a synopsis of the updates that have been implemented thus far.
ANALYSIS/DISCUSSION:
The specific direction provided by Council and the implementation status is summarized
below.
1. Staff to review the Purchasing Policy for updates:
a. The Citys Municipal Code pertaining to purchasing has been clarified to reflect the
contract authorization limit of $24,999 for the City Administrators authorization and
that contracts of $25,000 or more require Council approval via resolution.
b. A training on the Citys purchasing code and processing of purchase orders was
provided to City staff on May 20, 2015; a contract review summary sheet and
routing form have been created and purchase orders are established for the full
amount of the contract upon the execution of the contract. This will enable the
current financial system to track the amount of payments made toward a contract
and indicate when the contract amount has been expended and not allow additional
payments to be made until an amendment has been appropriately processed.
c. Staff are in discussion with the Association of Monterey Bay Area Governments
regarding the organizations assistance on creating a purchasing policies and
procedures manual.
2. City Administrator will provide monthly to the Council a report on contracts under $25,000 which he has signed:
a. The City Administrator provided a report covering contracts he executed from MayJune 2015 as part of the 7 July 2015 meeting and will continue to include an
updated log as part of each agenda packet.
FISCAL IMPACT: There have been no additional costs associated with implementing these
updates thus far. The cost of a financial system has been included within the equipment and
vehicle fund as part of the adopted Fiscal Year 2015-16 budget.
PREVIOUS COUNCIL ACTION/DECISION HISTORY:
Council received an investigate report on contracts on 5 May 2015
APPROVED:
Date:
~1/.dr i.r
Douglas J.