TO: Honorable Mayor and Members of the City Council
FROM: Jarad Hildenbrand, City Manager
1. SUBJECT
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Introduction and First Reading of Ordinance No. 20-25 amending various sections of Chapter 3.08 of the Orange Municipal Code relating to the City's purchasing system.
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2. SUMMARY
Orange Municipal Code Chapter 3.08 governs the City's purchasing system and processes. Much of Chapter 3.08 was last amended in 1999, including the varying purchasing thresholds. With costs increasing significantly over the past 25 years, Ordinance No. 20-25 modernizes the City's purchasing system by increasing select purchasing thresholds.
3. RECOMMENDED ACTION
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Introduce and conduct First Reading of Ordinance No. 20-25. An Ordinance of the City Council of the City of Orange amending various sections of Orange Municipal Code Chapter 3.08.
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4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability.
6. DISCUSSION AND BACKGROUND
Orange Municipal Code Chapter 3.08 governs the City's purchasing system and covers several procurement matters including, but not limited to:
* The establishment of a centralized purchasing division.
* Addresses conflict of interest matters.
* Processes to enter professional services agreements.
* The process to purchase materials, supplies, and equipment.
* The procurement process for Public Works projects.
* Bidding procedures; and
* Purchasing processes during emergencies.
With some exceptions, Chapter 3.08 provisions were adopted in July 1999. While the language in many of these sections is still relevant, the amount thresholds listed in Chapter 3.08 are relatively low given the City's size and scope of services coupled with substantial cost increases since 1999. In drawing from Bureau of Labor Statistics' reported Consumer Price Index since September 1999 for All Urban Consumers in the Los Angeles-Long Beach-Anaheim area (CPI), prices have more than dou...
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