Title
Chief Administrative Office, Procurement and Contracts Division recommending the Board adopt and authorize the Chair to sign Resolution 163-2023 authorizing active service contracts that exceeded the purchasing agent authority in the year the contracts were executed as a result of a minor calculation error.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
In counties with a population less than 200,000, in accordance with Government Code 25502.3, the Board of Supervisors may authorize the purchasing agent to engage independent contractors to perform services for the county, with or without furnishing material, when the aggregate cost does not exceed $50,000. Additionally, the purchasing agent authorization amount is adjusted annually by the California Consumer Price Index (CPI) as determined by Section 2212 of the Revenue and Taxation Code. El Dorado County began calculating it's purchasing agent's authority to engage independent contractors to perform services, also known as the purchasing agent's signature authority, in 2008. The calculated signature authority has been adjusted each year in accordance with the CPI.
In 2023, an audit was performed to verify the historic calculations. The audit revealed that an error occurred in 2009. The calculation error was carried forward and compounded each of the following years. Unfortunately this resulted in an overstatement of the Purchasing Agent authority. As soon as the error was discovered, the purchasing agent authority was reduced and is now in compliance with Government Code.
After discussions with County Counsel, the Chief Administrative Office, Procurement and Contracts Division, compiled a list of 129 current active contracts that were approved under the incorrect purchasing agent authority dollar threshold. The division is requesting that the Board of Supervisors approve the attached Resolution which documents each of the active contracts that exceed the now corrected purchasing agent authority. The Resolution provides Board authorization for the contract amounts that exceeded the purchasing agent authority in the year they were executed.
ALTERNATIVES
Should the Board not authorize the contract amounts for the contracts that exceed the corrected Purchasing authority for the active contracts, the contracts will need to be amended to reduce the total not-to-exceed amount.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no financial impact with this action. Contracts were previously approved and funding is included in department budgets.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Laura Schwartz - Assistant Chief Administrative Officer
Michele Weimer - Procurement and Contracts Manager