06-12-2017 BPU RPT 07 - Laserfiche WebLink

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W A I= R h N h R L Y I. l F F -- RIVERSIDE PUBLIC UTILITIES WON Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: JUNE 12, 2017 ITEM NO: 7 SUBJECT: APPROVAL OF ANNUAL PURCHASE ORDERS AND EXISTING CONTRACT PURCHASE ORDERS FOR FISCAL YEAR 2017-18 TOTALING $9,160,996 ISSUE: Approval of certain expenditures over $50,000 as required by the City of Riverside Charter. RECOMMENDATIONS: That the Board of Public Utilities: Approve ten (10) annual purchase orders for Fiscal Year 2017-18 with an estimated total amount of $2,889,862; and 2. Approve seventeen (17) purchase orders for existing contracts for Fiscal Year 2017-18 with an estimated total amount of $6,271,134. BACKGROUND: Riverside City Charter Section 1202(b) requires that the Board of Public Utilities (Board) approve all expenditures in excess of $50,000. Section 602 of the City's Purchasing Resolution (Resolution No. 22576) entitled "Utilities Exception" recognizes that there are certain supplies and materials which are "peculiar to the needs" of the City's Public Utilities Department (RPU) and may be acquired through an open market procurement process, so long as the expenditures have been approved by the Board of Public Utilities. Categories for such supplies and materials are listed in that resolution. DISCUSSION: In accord with this authorization, RPU issues annual purchase orders for such goods and materials that are routinely used by the department during the fiscal year for its daily utility operations. The City's Purchasing Division selects vendors via a competitive bid process which can be informal or formal: • Informal bids apply to either purchases of goods and services of $50,000 or less and purchases falling under the Purchasing Resolution Section 602 for Utilities Exception, which have no monetary cap. Informal bids means that the City receives a minimum of three price quotes from vendors outside of the formal procurement process and may negotiate terms, conditions and pricing with the vendors. • Formal bids apply to all other purchases over $50,000. The competitive bid process for goods and services may be waived for various reasons, and including availability from a sole source, "following on" another governmental contract, when it is in the best interest of the City to do so or for other reasons as set forth in the City's purchasing rules.