Print Back to Calendar Return
    12.    
City Council Regular
Meeting Date: 03/24/2020  

SUBJECT:
INCREASE CITYWIDE BLANKET PURCHASE ORDERS FOR FISCAL YEAR 2019-20
RECOMMENDATION:
  1. Authorize an increase of $10,000 for the Amazon blanket purchase order to an amount not-to-exceed of $30,000 for the purchase of various supplies.
     
  2. Authorize an increase of $20,000 for the Champion Publications Inc. blanket purchase order to an amount not-to-exceed of $60,000 for publications in the Champion Newspaper. 
     
  3. Authorize an increase of $10,000 for the Costco Wholesale blanket purchase order to an amount not-to-exceed of $20,000 for the purchase of various supplies.
BACKGROUND/ANALYSIS:
At the June 11, 2019, City Council meeting, staff requested approval for Citywide blanket purchase orders for Fiscal Year 2019-20. The City has several vendors that staff utilize for obtaining various materials, supplies, equipment, and services throughout the year. The issuance of blanket purchase orders (BPO’s) ensures efficient control of the purchase of supplies and facilitates the acquisition of small dollar items ($5,000 or less per item) needed for daily operations that are otherwise uneconomical to store. 

Staff routinely monitors the balances of the BPO’s to ensure the balances are sufficient to cover purchases. In doing this analysis, it was found that the BPO’s for Amazon and Costco, have an insufficient balance to cover estimated purchases through June 30, 2020. The increase for the Champion Publications BPO is needed due to a rate increase of $7 per column inch or 32% from last year. In addition, they no longer offer a 2% discount for prompt payment, resulting in an insufficient amount remaining on the BPO to cover future needs. BPO’s for Amazon and Champion Publications exceed the $25,000 threshold for signature authority of the City Manager as identified in the City’s Procurement Policy and Procedures Manual.
ENVIRONMENTAL (CEQA) REVIEW:
This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA regulations (14 California Code Regulations §§ 15000, et seq.) because it constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a “project” that requires environmental review (see specifically 14 CC § 15378 (b)(4-5)).
 
FISCAL IMPACT:
These Blanket Purchase Orders are not a commitment to spend; rather an authorization to spend, up to the limited amount, dependent on the operating needs of the City. The amounts requested are within the proposed Fiscal Year 2019-20 budget.

AgendaQuick©2005 - 2021 Destiny Software Inc., All Rights Reserved