focus area: Economy and Legal
Staff Contact: Jamie Robichaud, John Page, Ron Shaver
Subject: Consideration of Ordinance No. 24-38 amending Olathe Municipal Code Chapter 3.50 (Procurement Policies).
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Consideration of Ordinance No. 24-38 amending Olathe Municipal Code Chapter 3.50 (Procurement Policies).
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Summary:
This item was provided as a discussion item on the City Council agenda on September 17, 2024. Following that meeting, staff finalized the ordinance amendments with additional technical edits for clarity. Attachment A is proposed Ordinance No. 24-38 which shows the proposed revisions the Olathe Municipal Code (O.M.C.) Chapter 3.50 (Procurement Policies) to accomplish the policy-related changes discussed with the City Council on September 17.
The City’s Procurement Policy in O.M.C. Chapter 3.50 sets rules and guidelines to ensure that the City receives the highest quality of goods and services efficiently and at the best price possible. Procurement authorization thresholds are set by the City Council in the Policy to ensure that the correct decisionmaker approves the procurement before purchasing and/or entering into a contract.
The Policy was last updated in 2007, most notably raising the minimum authorization threshold for expenditures for City Council approval from $25,000 to $50,000. Prior to that, the Policy was updated in 1999 and 1995.
The key changes to the Policy are as follows:
1) Updates the authorization thresholds, specifically raising the City Manager’s authorization threshold from $50,000 to $100,000.
2) Adds a new section to authorize the City Manager to apply competitive procurement processes to contracts that produce revenue based on the sale or rental of goods or services to the public by a contractor. These contracts will be taken to Council if the aggregate revenue is $100,000 or more. This new section was specifically revised for clarity from the version provided in the September 17 discussion item provided to the City Council. This new section is not intended to apply to contracts subject to other O.M.C. provisions or Council policies or are otherwise not appropriate for competitive procurement processes, such as franchise agreements, licenses or permits, city services reimbursement, facility rentals, or vendor space at City events.
3) Updates language regarding Sole Source Procurement to include Single Source Procurement as well.
4) Defines aggregate value as well as its applicability to price agreements.
5) Sets five (5) years as the maximum duration for price agreements and contracts.
6) Increases the local preference threshold amount from $5,000 to $10,000.
7) Prohibits contractors from attempting to limit the City’s authority to determine its responsibilities under the Kansas Open Records Act.
8) Clarifies the competitive processes applicable to invitations for bid, requests for proposals, and requests for qualifications.
If the City Council adopts the proposed ordinance, then staff will prepare a resolution for formal consideration on October 15, 2024, which would amend the City Council’s Surplus Real Property Policy (F-10) to align with the dollar thresholds in the proposed ordinance.
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Financial Impact:
None.
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Action Needed:
Approve Ordinance No. 24-38 amending Chapter 3.50 of the Olathe Municipal Code pertaining to Procurement Policies.
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Attachment(s):
A: Ordinance No. 24-38