DATE: November 3, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator / CFO
Kristen Corn, Assistant City Attorney
Brian Wilcox, Purchasing Manager
SUBJECT:
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Consideration of Resolution 2015-20, A Resolution To Authorize The City Administrator To Execute Procurement Contracts And Agreements On Behalf Of The City After An Award Has Been Made Pursuant To City Policy. (10/08/15 Finance 3-0)
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Purpose
The purpose of this proposed resolution is to streamline and expedite the process of executing procurement contracts and agreements on behalf of the City after an award has been made pursuant to City policy.
Background
Currently, procurement contracts and agreements valued at $25,000 or less may be executed by the City Administrator and then reported to the Board of Mayor and Aldermen, while those valued more than $25,000 are to be executed by the Mayor after consideration and approval by the Board of Mayor and Aldermen. Pricing and a recommendation for award of procurements valued more than $25,000 and resulting from the City’s own competitive process is presented for review and approval by the Board of Mayor and Aldermen. This practice would not change and is viewed by staff to be an important component of the City’s transparency in public procurement.
Often, however, procurements valued at more than $25,000, regardless of pricing and the type of competitive process, necessitate a contract or agreement. In the opinion of staff, asking the Board of Mayor and Aldermen to pass judgment on procurement contracts and agreements valued at more than $25,000 when the contract or agreement is not yet in final form but pricing and a recommendation for award has already been approved by the Board of Mayor and Aldermen serves to delay the expeditious execution of the purchase. The same is true when pricing and the awarded vendor are established by means of an alternative procurement method approved by City policy. A recent example of the former is the purchase of the dump truck for the Streets Department; an example of the latter is the purchase of bulk de-icing rock salt for clearing roads of snow and ice.
Resolution 2015-20, if approved, would authorize the City Administrator “to negotiate and execute procurement contracts and agreements, including those that do pertain to the design and/or construction of new infrastructure and facilities as well as those that do not, but are valued at more than Twenty-Five Thousand Dollars ($25,000.00), on behalf of the City of Franklin, Tennessee, whenever an award to a particular vendor, supplier, service provider or contractor has been made pursuant to City policy; provided the award is for a particular product, service and/or scope of work, and provided the award is for an established total amount or established unit pricing, and provided the contract or agreement is reported to the Board of Mayor and Aldermen of the City of Franklin, Tennessee at its next available meeting.”
Financial Impact
Staff is not aware that the increased delegated authority proposed above would have a negative financial impact on the City. Staff anticipates that the increased delegated authority proposed above would serve to expedite the conduct of the City’s business for contracts and agreements valued more than $25,000.
Options
The Board of Mayor and Aldermen has the option of declining to increase the delegated authority proposed above.
Recommendation
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Staff recommends that the Board of Mayor and Aldermen approve Resolution 2015-20.