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CITY COUNCIL AGENDA MEMO |
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| | | | | | | | | MEETING DATE: | 8/23/2021 | | DEPARTMENT: | Purchasing | | DIRECTOR: | Procurement and Project Management | | AGENDA ITEM: | An ordinance increasing the purchasing authority of the City Manager. | | RECOMMENDED ACTION: | Items for Individual Consideration |
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| | | | | | | | ITEM SUMMARY Ordinance No. 2021-8-20: To amend Section 2-9(b)(1), Lawsuits and risk management, of Article I, In General, of Chapter 2, Administration, of the Code of Ordinances of the City of Plano, Texas to revise the authority of the City Manager to compromise and settle all claims or lawsuits in favor of or against the city, and amend Section 2-12, Procurement Code, of Article I, In General, of Chapter 2, Administration, of the Code of Ordinances of the City of Plano, Texas, and amend Section 2-27, Contracts-Change orders, of Article II, City Manager, of Chapter 2, Administration, of the Code of Ordinances of the City of Plano, Texas to revise the authority of the City Manager to enter into and execute contracts and approve expenditures; and providing a repealer clause, a severability clause, a savings clause, and an effective date. Adopted |
| | | | | | | | PREVIOUS ACTION/PRESENTATION On August 13, 2007, the Council increased the City Manager's authorization level to execute purchases and contracts without further City Council action from $25,000 to $50,000. On December 14, 2015, Council action increased authorization to execute change orders without further Council action from $25,000 to $50,000 and provided authorization that the City Manager could execute all contracts that are excepted (exempt) from State law. Council will typically see the contracts awarded under this authority in the form of a Ratification. |
| | | | | | | | BACKGROUND In an effort to assist the departments in increasing their service level delivery to our citizens, staff reviewed the current Code of Ordinances relating to the authority of the City Manager for city business transactions. Staff recommends increasing the authority of the City Manager in the following areas: procurement of goods and services, settlement of lawsuits; and contract authority, from $50,000 to $100,000.
The procurement processes and policies can be streamlined by increasing the City Manager’s signature authority for city contracts for goods, services, and change orders subject to the competitive bid laws from $50,000 to $100,000. This will apply to routine and non-controversial procurements that are currently presented on the consent agenda. A change in authority level will streamline and expedite routine purchases and contracts, allowing work to begin earlier. In some cases, the timing of project delivery and citizen services may be shortened by 3-4 weeks.
All items in question are approved through the budget process. In addition our current practice of following all statutory requirements, providing a uniform and centralized approach to city procurements, to garner competition for all items will continue. This ensures the City receives the highest quality goods and services and the best possible price. As a point of reference, once the city population reaches 300,000 statute increases the council threshold for approval of change orders from $50,000 to $100,000. As of January 1, 2021, Plano’s population is 287,600 and is expected to reach this level in 2026. The current census results, expected September 2021, could change this forecast.
Items of public interest or purchases that require policy discussion will continue to be brought to the City Council. Examples may include:
- When participating bidders, or others, raise questions or concerns about the vendor to be awarded, or the selection process
- A contract that is part of a larger CIP project, such as a park master plan design.
The table below shows examples of items from FY 2019-20 that would be approved by City Manager authority if this threshold had been increased.
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Bid Number
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Contract Name
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Awarded Vendor
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Contract Amount
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Type
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2019-0540-C
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Printing and Mailing Services
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DFW Printing Services, LLC
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$58,802
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Contract Award
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2020-0026-O
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Tenable Security Center
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SHI Government Solutions
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$63,687
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Contract Award
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2020-0103-O
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Half-Ton Crew Cab Pickup
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Reliable Chevrolet
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$79,857
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Contract Award
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2020-0038-AC
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Traffic Signals
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Paradigm Traffic Systems, Inc.
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$68,250
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Contract Award
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2017-0460-B
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Plano Parkway Intersection
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Rebcon, Inc.
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$59,265
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Change Order
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2017-0021-C
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Stop Loss Insurance
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SA Benefit Services, LLC
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$93,357
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Change Order
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2019-0227-B
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Intersection Improvements
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Cidrax Texas, LLC
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$67,257
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Change Order
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Increasing the City Manager’s signature authority to $100,000 will reflect approximately 4% of the total expenditures, with the remaining 96% requiring City Council action. The following chart shows the percentage of contracts and expenditures that would have been presented to Council for approval for the current and previous two FY’s had this change been in effect:
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Year
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% of Contract Count
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% of Dollar Amount
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FY 2020-21
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71%
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96%
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FY 2019-20
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74%
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97%
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FY 2018-19
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79%
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97.5%
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A quarterly report will be provided to Council outlining the awards between $50,000 and $100,000. We will also post the report on our website.
The following outlines what other entities in our area are doing in relation to Council/Board approvals:
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Entity
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Amount
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City of Allen
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$100,000
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Richardson ISD
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$100,000
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City of Garland
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$100,000
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City of Dallas
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$ 70,000
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City of Frisco
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$ 50,000
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City o McKinney
City of McKinney
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Good and Services $ 50,000
Professional Services $100,000
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If approved, the Ordinance will modify the three sections of the Code of Ordinances pertaining to the procurement of goods and services, settlement of lawsuits, and contract authority, to increase the City Manager’s authority from $50,000 to $100,000. The Ordinance is attached for your review. |
| | | | | | | | FINANCIAL SUMMARY/STRATEGIC GOALS This item has no financial impact.
Approval of this Ordinance relates to the City's Strategic Plan Critical Success Factor of Excellent, Innovative and Accountable City Government. |
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