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6.L.- Page 3of19 <br />(See Sections 2.64, 2.65, 2.66, and 2.67.4(B)) <br />2. Approving authority thresholds updated. <br />Similar to procurement methods, the existing purchasing ordinance provides for difference thresholds for <br />public works contracts ($100,000) and all other contracts ($60,000), to go to the City Council. The <br />proposed ordinance provides the same threshold for all contracts. There are three different levels of <br />approving authorities, progressing from very small contracts to be delegated by City Manager for <br />approval, to medium sized contracts approved by the City Manager or the City Attorney for legal services, <br />up to large contracts approved by the City Council, as follows: <br />Contract Value <br />Approving Authority <br />$25,000 or less <br />City Manager Delegation Authority (i.e. Department Heads) <br />>$25,000 and under $100,000 <br />City Manager <br />Legal services under $100,000 <br />City Attorney <br />$100,000 or more <br />City Council <br />These thresholds are subject to increase annually by CPI. (See Section 2.63.4) <br />3. Lowest responsive and responsible bidder remains largely the same. <br />Because Redwood City is a charter city, it is allowed to define lowest responsive and responsible bidder <br />differently from state law. The proposed ordinance largely reiterates existing provisions in the purchasing <br />ordinance that the lowest responsive and responsible bidder is determined based on specified criteria, <br />including price, ability, integrity, experience, qualifications, and financial resources, as appropriate for the <br />type of contract. Schedule and other criteria appropriate for the type of contract are additions to the <br />existing selection criteria. (See Section 2.63.5). <br />4. Exceptions to competitive bidding reorganized and simplified. <br />All exceptions to the requirement for competitive procurement are in one location and the exact <br />circumstances under which the exception is allowed is stated. They are: (a) sole source, (b) negotiated <br />contracts for less than $10,000; (c) contracts in the best interest of the City; (d) emergencies, (e) other <br />exemptions called out in the Charter or in the purchasing ordinance such as certain specialized <br />professional services, and (f) purchases not susceptible to a competitive bidding process such as utility <br />services, subscriptions and memberships. Approval of contracts pursuant to a sole source or based on <br />best interests of the City require a supermajority vote of the Council because reliance on these methods <br />should be in unusual circumstances. (See Section 2.67.4) <br />5. Cooperative purchasing authorized. <br />The proposed ordinance clarifies that the City may participate in, conduct and manage cooperative <br />bidding contracts of any amount as long as a competitive procurement process reasonably similar to that <br />required by Redwood City is used to award the contract, or through programs or lists created by public <br />agencies to secure the best product or service at the lowest possible price. This means that the City may <br />purchase goods, services and equipment, including public works projects, from state contract lists or from <br />contracts awarded by other agencies. When utilized, this procedure may save the City a substantial <br />amount of time and money. (See Section 2.67.1) <br />Page 3 of 5 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />164 <br />