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<br /> B. Approval of Consultant Services to Develop and Improve City's . <br /> Contracting System--Memo distributed. <br /> Mr. Hamel wondered if this money was being requested to set up <br /> a purchasing system. Manager said the City had a purchasing system <br /> with established procedures. The effect of this expenditure would be <br /> to adjust that system to comply with state and federal regulations, to <br /> improve the effectiveness, and to put together a contracting' proce- <br /> dures manual. He said staff could do it, but the effort would require <br /> considerable staff time and the putting aside of other priority <br /> items. It was felt an outside firm could do the job more quickly <br /> and efficiently with less expenditure of staff time and City money. <br /> Assistant Manager noted for Council various inconsistencies regarding <br /> the ways various departments developed contracts. He said this <br /> project would result in standard procedures for all, and would provide <br /> adequate internal control and consistent policies. Mr. Hamel wondered <br /> if City could not draw from the experience of other cities and written <br /> materials that might be available, rather than spending $20,000 to <br /> accomplish the project. Assistant Manager reiterated this would <br /> involve a major investment of staff time, and City staff simply does <br /> not have that resource without hampering other ongoing programs. <br /> It was felt to be important and of a high enough priority to look at <br /> hiring expertise, which City staff did not have. Staff felt it <br /> would be cheaper and the City would get a broader experience base by <br /> having an outside firm do it. <br /> Mr. Delay requested staff to recap what was deliverable. Sherm <br /> Flogstad, Finance Director, reiterated City staff did not have time e <br /> to follow up on the new state and federal regulations on contracting. <br /> By producing a manual with standardized procedures, it was felt <br /> each City department would then be executing contracts in a consistent <br /> manner. The money would be used to develop and implement a public <br /> contract handling procedure for the City, preparation of a compre- <br /> hensive procedures manual, a control system to assure that such <br /> procedures are kept current at all times, and a program to indoc- <br /> trinate key personnel on the use of procedures developed. <br /> Mr. Obie wondered if part of the motive was that the federal money <br /> was available to spend and must be spent. Assistant Manager said <br /> no, the problem was severe enough that staff had considered asking <br /> for funds from the contingency fund. However, with countercyclical <br /> funds available, it was decided to use that money. Mr. Obie then <br /> wondered, in reference to other proposals to come before Council <br /> later, whether there might be others that would be of more concern. <br /> Assistant Manager said all of the proposals were not received yet, <br /> but in general those coming up would be automation of the library, <br /> a potential investment of $100,000 in the Police Department, and the <br /> 911 communications system. In response to a question from Mr. Obie, <br /> Assistant Manager said it was felt that this need was of high priority <br /> and involved enough risk that staff preferred not to wait. <br /> 11/16/77--6 e <br /> 8~1 <br />