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1. Ordinance 1734 - Amending Ordinance 1166 - 1st ReadingTo: Mayor Johnson and City Council From: Doug Russell, City Manag Qr�lz Re: Ordinance 1734 — 1" Read Meeting Date: January 21, 2014 BACKGROUND: Current municipal code, KMC 2-29(1), limits the procurement ability of the City Manager for items in excess of $50,000, even in circumstances where the respective items have been previously approved in the annual budget. At the time the administrative code was adopted, this limitation was consistent with the procurement laws of the State of Montana, §7-5-4302, which required competitive bidding procedures for certain purchases valued at over $50,000. In 2013, this law was amended to increase the contract value to $80,000, thus creating additional procurement options. At the last meeting, Council rejected bids for equipment and provided authorization for procurement in accordance with current State Law, recognizing the limitation in current municipal code may be preventing the City from getting the best value in its procurement process. The ordinance before Council is consistent with State Law and allows for a more competitive purchasing process by increasing the City's procurement authority from $50,000 to $80,000. FISCAL IMPACT: The proposed ordinance is anticipated to provide procurement options that will yield a better value for the City for respective purchases. RECOMMENDATION: It is recommended the City Council approve the first reading of Ordinance 1734, amending Kalispell Municipal Code 2-29(I) related to procurement authority. ORDINANCE NO. 1734 AN ORDINANCE AMENDING THE ADMINISTRATIVE CODE OF THE CITY OF KALISPELL ENACTED AS ORDINANCE NO. 1166 AND CODIFIED IN THE KALISPELL MUNICIPAL CODES AT KMC 2-29 REGARDING THE LIMITATIONS ON THE AUTHORITY OF THE CITY MANAGER TO EXECUTE BONDS, NOTES, CONTRACTS AND WRITTEN OBLIGATIONS OF THE CITY COUNCIL, DECLARING AN EFFECTIVE DATE AND AUTHORIZING THE CITY ATTORNEY TO CODIFY THE SAME. WHEREAS, the Administrative Code of the City of Kalispell defines certain limitations on the authority of the City Manager, specifically at KMC 2-29(I), legislating that the City Manager must have prior written approval of the City Council to execute any bonds, notes, contracts or other written obligations of the City Council in excess of $50,000 regardless whether or not previously approved in the annual City budget and may only execute those bonds, notes, contracts and written obligations less than fifty thousand dollars ($50,000.00) without prior written approval of the City Council if such amount was previously approved by City Council in the annual City budget; and WHEREAS, when KMC 2-29(I) was enacted this limitation was consistent with the limitation set within procurement laws of the State of Montana at MCA §7-5-4302 which requires municipal government to abide by competitive advertised bidding procedures for certain purchase and construction contracts valued at over $50,000. This law was amended in 2013 to increase the contract value to $80,000; and WHEREAS, the City Council hereby finds that it is in the best interest of the City of Kalispell to amend its code to be consistent with state law and to allow for a more competitive process of procurement within this limited price range. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION I. The City of Kalispell Municipal Code codified at Chapter 2 Article 1 is hereby amended as set forth in Exhibit "A", attached hereto and incorporated fully herein by this reference. SECTION II. The City Attorney is hereby authorized and directed to recodify this Ordinance. SECTION HI. This Ordinance shall take effect thirty (30) days after its final passage. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS DAY OF FEBRUARY, 2014. Mark Johnson Mayor ATTEST: Theresa White City Clerk Exhibit "A" 2-29 Statutory Authority and Duties. The City Manager shall: A. Enforce laws, ordinances and resolutions; B. Perform the duties required of him or her by law, ordinances or resolutions; C. Administer the affairs of local government; D. Direct, supervise and administer all departments, agencies and offices of the local government unit except as otherwise provided by law or ordinance; E. Carry out policies established by the City Council; F. Prepare the City Council agenda; G. Recommend measures to the City Council; H. Report to the City Council on affairs and financial condition of the City; I. Execute bonds, notes, contracts and written obligations of the City Council, subject to the following limitations: 1. All bonds, notes, contracts and written obligations, including accumulated contract change orders in excess of fifty eighty thousand dollars ($550,,090.00 $80,000.00) must have prior written approval of the City Council regardless whether or not previously approved in the annual City budget, 2. Any bonds, notes, contracts and written obligations less than f Ry eighty thousand dollars ($50,000.00 $80,000.00) may be executed by the City Manager without prior written approval of the City Council only if such amount was previously approved by City Council in the annual City budget; J. Report to the City Council as the Council may require; K. Attend City Council meetings and may take part in the discussion, but shall have no vote; L. Prepare and present the budget to the City Council for its approval and execute the budget adopted by the City Council; M. Appoint, suspend and remove all employees of the local government except as otherwise provided by law or ordinance; N. Appoint members of temporary advisory committees established by the Manager.