REPORT TO THE CITY COUNCIL July 14, 2016 FROM: MICHAEL LIMA, Controller/Finance Director Finance Department BY: GARY WATAHIRA, Purchasing Manager Finance Department SUBJECT ..Title ***RESOLUTION - Submitting to City Electors a proposal to amend the Charter addressing the City's procurement process to allow submission of bid proposals electronically in addition to the currently permitted bid submission method of a hard copy and providing for the placement of the measure on the November 8, 2016 General Election. ..Body RECOMMENDATION Staff recommends that the Council approve the resolution for submission to the City Electors a proposal to amend the Charter relating to the City's procurement process by allowing submission of bid proposals electronically via internet connection in addition to the currently permitted bid submission method of a hard copy and providing for the placement of the measure on the November 8, 2016 General Election. EXECUTIVE SUMMARY For the current and future convenience of submitting formal bid proposals, online bidding will be an effective and efficient option for vendors. The Charter specifically requires hard copies of formal bids to be delivered to City Hall prior to the bid deadline. The Purchasing Unit's software for procurement administration has the ability to accept formal bids via the internet. This charter amendment will give bidders the option to submit formal bid documents via the internet. BACKGROUND As the functionality of technology and internet services improves, submitting formal bids online will be a convenient option for vendors. The City of Fresno's Purchasing Unit's software, Planet Bids, has the capability to electronically online accept formal bids (bids in excess of the $133,000 based on the consumer price index). However, the Charter currently requires that all formal bids be submitted to the City in writing as a hard copy. In order to accept formal bids electronically online, a charter amendment is required. It is important to note that for formal bids, electronic bidding is an option; hard copies will continue to be accepted. The vendor will need to accept all risks associated with electronic bidding; including (but not limited to) equipment, internet and website failures. ENVIRONMENTAL FINDINGS This item is not a project for the purposes of the California Environmental Quality Act. LOCAL PREFERENCE Local preference is not applicable because this item is not an award of a construction or consultant contract. FISCAL IMPACT The City owns the software licenses, which include the online formal bidding capabilities; as a result, no additional direct cost will be incurred related to this policy change. The Charter Amendment will have a minimal one time fiscal impact estimated by the City Clerk at less than $5,000. Attachment: Resolution