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6.1.B. - Page 6 All 20 cities in San Mateo County (the Cities): the Town of Atherton, the City of Belmont, the City of Brisbane, the City of Burlingame, the Town of Colma, the City of Daly City, the City of East Palo Alto, the City of Foster City, the City of Half Moon Bay, the Town of Hillsborough, the City of Menlo Park, the City of Millbrae, the City of Pacifica, the Town of Portola Valley, the City of Redwood City, the City of San Bruno, the City of San Carlos, the City of San Mateo, the City of South San Francisco, and the Town of Woodside. Decentralized Procurement: Purchasing control and authority is granted to local branches or departments. They have the authority to purchase items necessary as per their requirements.6 Piggyback Contracts: A form of intergovernmental cooperative purchasing in which an entity will be extended the same pricing and terms of a contract entered by another entity. Generally, the originating entity will competitively award a contract that will include language allowing for other entities to utilize the contract, which may be to their advantage in terms of pricing, thereby gaining economies of scale that they would otherwise not receive if they competed on their own.7 San Mateo County Finance Officers Group (the SAMFOG): The SAMFOG is an informal professional group for municipal finance officers in San Mateo County to share information and resources. County of San Mateo Procurement Division (the PD): The PD provides procurement services to all county departments and acts as a regulatory mechanism to help County departments obtain maximum value for each dollar spent while maintaining compliance with all relevant county, state and federal laws, ordinances, and policies. Volume Discount: A Volume Discount is an incentive offered to a buyer that results in a decreased cost per unit of goods or materials when purchased in greater numbers. Sellers often offer a volume discount to entice buyers to purchase in larger quantities. The seller can move more goods or materials, and the buyer receives a more favorable price for the goods.8 BACKGROUND The 20 cities in San Mateo County together purchased approximately $425 million of in goods and services in FY 2015-16, representing an estimated 35 percent of their General Fund spending.9,10 In a time defined by rising labor costs, exploding pension program payments, and other municipal budget constraints, spending on goods and services still represents a significant portion of a city's discretionary spending. 11 6 Effia Soft, "Centralized vs. Decentralized Purchasing" Effasoft.com 7 Principles and Practices of Public Procurement "Use of Cooperative Contracts for Public Procurement" California Association of Public Procurement Officials Accessed on August 28, 2017: 1. httD: Hc.vmcdn. com/sites/www. caDDo.or2/resource/collection/FBBFC7BF-3 69D-43 DE -B609 - 3D41 BA05D l0E/Cooperative%20Contracts.pdf. 8 "Quantity Discount" Investopedia, Accessed on: May 20, 2018 htt_Ds://www.investo_Dedia.com/terms/a_/a_uantity_ - di sc ount. asp#ixzz5 F2r4B 9 Sp. 9 California State Controller's Office, Schedule of Total City Expenditures by Major Object Classification (2017). io ibid. " Interviews with City Finance Officials. 2017-2018 San Mateo County Civil Grand Jury