Agenda Item Title:
Title
Council Member Nicholl recommending adoption of an Ordinance amending the Sandy City Purchasing Code to clarify the City Council's contracting authority.
Body
Presenter:
Council Member Nicholl
Body
Description/Background:
The Sandy City Purchasing Code does not expressly identify the City Council’s contracting authority. Out of an abundance of caution to ensure vendors that Council-retained professional services are valid, Council staff has requested that our two most recent professional services contracts were executed by the Mayor. They include the:
• Granicus agenda management contract (signed by Mayor Dolan 11-12-15)
• Council legal services contract with Cowdell Woolley (signed by Mayor Bradburn effective 6-1-18)
Though the City Council does not often contract directly for professional services, it would be prudent to clarify the Council’s authority in this regard. Other cities with the Council-Mayor form of government with express council contracting provisions in their codes include Ogden and Salt Lake City.
This amendment to the Purchasing Code was first introduced on September 4 and brought back for adoption on September 25. The City Council tabled the item to gather more information on Council Member indemnification, and whether or not councils in cities with the Council-Mayor form of government had ever faced litigation over their professional services contracts.
Cowdell Woolley noted that the Governmental Immunity Act broadly protects a governmental entity for discretionary actions, and protects employees from personal liability for acts or omissions occurring during the performance of the employee's duties, within the scope of employment, or under color of authority. However, the Governmental Immunity Act specifically waives immunity as to contractual obligations, but does allow a governmental entity to obtain insurance to cover any or all of its employees against liability.
How the City's insurance should be extended is a policy question, not simply and administrative interpretation. Consequently, to make it clear that the City's insurance coverages apply to Council professional services contracts, the following language is suggested for the amendment: 11-1-5(h)(4)(A) "All contracts under this section shall be covered by the City’s self-insured risk pool and through States Self-Insurers Risk Retention Group. Furthermore, each elected official shall be personally indemnified by the City for any claim related to any contract under this section."
Both the Council Office staff and Cowdell Woolley researched whether or not cities with the Council-Mayor form of government had incurred litigation over council-executed professional services contract. A survey of the council staff in Ogden, Salt Lake City, and Provo as well as GRAMA requests to city attorneys in Ogden and Salt Lake City indicated that none of the mentioned cities have ever been sued over council contracts.
Fiscal Impact:
There is no fiscal impact associated with this item.
Recommended Action and/or Suggested Motion:
Recommendation
Motion to approve Ordinance 18-31 amending the Revised Ordinances of Sandy City Title 11, "Purchasing Procedures;" also providing a saving clause for the ordinance and an effective date.