REPORT TO COUNCIL
SUBJECT
Title
Action to Ratify Purchase Orders Greater than $250,000, with an Aggregate Amount of $3,389,254 for Finance Department Central Warehouse Purchases to Replenish Silicon Valley Power Inventory Funded by the Electric Operating Fund
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City's Purchasing Division, which resides in the City's Finance Department, maintains a "centralized purchasing system" responsible for all purchasing and contracting activities for supplies, materials, equipment, and general and professional services. Additionally, the Division manages a central warehouse, with over 3,000 inventory items, that provides support to both Silicon Valley Power (SVP) and the Water & Sewer Utilities Department.
DISCUSSION
In Fall 2022, changes to the Procurement Code were brought to the City Council to bring best practices across the City for various procurement processes. One of the key aspects addressed by the new Code was to bring clarity surrounding the requirement of City Council's approval for the purchase of products and materials, for which the former Code was unclear of when these purchases were required to go to the City Council for approval. The new Code introduced a consistent process for goods and services, aligned procurement thresholds to best practice, and raised the City Manager authorization to $250,000 for all procurements (goods, materials, and services).
As part of the Code transition, and in the preparation of closing out fiscal year 2022/23, Purchasing identified several procurements for the Central Warehouse that did not adhere to the new Code. These included the purchase of electric transformers, switches and electric meters as part of the regular warehouse operations of ensuring adequate inventory was available for utility crews to carry out their work. In light of this, staff is seeking City Council ratification of the following purchase...
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