HomeMy WebLinkAbout4.04 Purchase Ord Revised
STAFF REPORT CITY CLERK
File #380-10
CITY COUNCIL
DATE:August 21, 2012
TO:
Honorable Mayor and City Councilmembers
FROM:
Joni Pattillo, City Manager
SUBJECT:
Adoption of Revised Purchasing Ordinance Chapter 2.36 of the
Dublin Municipal Code
Prepared by Erin Steffen, Administrative Analyst II
EXECUTIVE SUMMARY:
This is the second reading of an ordinance introduced at the regularly scheduled City Council
meeting on July 17, 2012. The ordinance repeals the current Chapter 2.36, Purchasing, of the
Dublin Municipal Code and adds Chapter 2.36, Purchasing, to the Dublin Municipal Code in
order to adopt revised purchase thresholds, to address chapter organization, and to adopt
alternative cost accounting procedures for public projects. The City Council will also be
requested to adopt the authorizing resolution the implementation of the California Uniform
Construction Cost Accounting (UPCCA).
FINANCIAL IMPACT:
There may be administrative savings as a result of a streamlined procurement process,
reducing the number of purchases that require a staff report and City Council approval.
RECOMMENDATION:
Ordinance
Staff recommends that the City Council waive the reading and adopt the revising
Section 2.36 of the Municipal Code for the City of Dublin and Providing for Informal Bidding
Procedures Under the Uniform Public Construction Cost Account Act (Section 22000, et seq. of
Resolution
the Public Contract Code); and adopt Authorizing the use of the Uniform Public
Construction Cost Accounting Procedures for public project contracts.
Submitted By Reviewed By
Administrative Services Director Assistant City Manager
ITEM NO. 4.4
Page 1 of 2
DESCRIPTION:
At the July 17, 2012 City Council meeting, the City Council conducted a public hearing and
introduced an Ordinance repealing the current purchasing ordinance (Chapter 2.36 of the Dublin
Municipal Code) and adding Chapter 2.36, Purchasing, to the Dublin Municipal Code as part of
a routine revision and modernization process. Staff has included the July 17, 2012 Staff Report
(without attachments) for reference (Attachment 1).
The revised Ordinance is included as Attachment 2. Some of the key revisions incorporated in
the updated Ordinance include:
Updated purchasing limits consistent with practices in other public agencies.
All purchases continue to be subject to procedures and rules that require the items to be
budgeted and purchases made in accordance with a documented process.
Staff is encouraged to seek bids from businesses in the City of Dublin (2.36.070 and
2.36.080) and in the event of a tie the local vendor would be given preference
(2.036060(m) and (i)).
Direct purchases will be able to be made by Staff up to $5,000, whereas the current
process imposes administrative requirements for all purchases under $1,000.
The City Manager will have the authority to approve general purchases up to $45,000
and public project contracts up to $100,000, instead of the current $20,000 limit.
Elimination of redundancies and clarification of City restrictions.
Adoption of the Uniform Public Construction Cost Accounting Act (UPCCAA) procedures
for work defined under State Law as “public projects.”
Disposal of surplus items are handled under an administrative process.
Staff has prepared a resolution in the form required by the State in order to become subject of
the act and to adopt alternate bidding procedures for public projects under the UPCCAA
program (Attachment 3). As noted in the Staff Report from July 17, 2012, this program allows
the City to establish higher thresholds for the formal bidding of “public projects.” This will allow
Staff to more efficiently complete the bidding process for “public projects” less than $100,000.
Although the State Program establishes higher thresholds for the formal bidding, the City
Purchasing Ordinance will impose a required formal bid for projects exceeding the $100,000
threshold.
Staff will notify the California Uniform Construction Cost Accounting Commission upon the City
Council’s adoption. The new ordinance will take effect 30 days after adoption.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
In accordance with Section 36933 of the Government Code fo California, the City Clerk of the
City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the
City of Dublin.
ATTACHMENTS:
1. July 17, 2012 Staff Report (without Attachments)
2. Ordinance Revising Section 2.36 of the Municipal Code for the City
of Dublin and Providing Informal Bidding Procedures under the
Uniform Public Construction Cost Account Act (Section 22000, et
seq. of the Public Contract Code)
3. Resolution Authorizing the Use of the Uniform Public Construction
Cost Accounting Procedures for Public Project Contracts
Page 2 of 2
CITY CLERK
STAFF REPORT
File #380-10
CITY COUNCIL
DATE:July 17, 2012
Honorable Mayor and City Councilmembers
TO:
FROM:
Joni Pattillo, City Manager
Adoption of Revised Purchasing Ordinance Chapter 2.36 Dublin Municipal Code
SUBJECT:
Prepared by Erin Steffen, Administrative Analyst
EXECUTIVE SUMMARY:
City Staff conducted a comprehensive review of the Citys Purchasing regulations as outlined
in Chapter 2.36 of the Dublin Municipal Code. Included in the recommended revisions are
increased thresholds for purchases that can be handled administratively. The organization of
the code was also reformatted to eliminate redundancies and clarification of City restrictions.
The proposed revision also incorporates the Uniform Public Construction Cost Accounting Act
procedures for work defined under State Law as public projects.
FINANCIAL IMPACT:
There may be administrative savings as a result of a streamlined procurement process,
reducing the number of purchases that require a staff report and City Council approval.
RECOMMENDATION:
Staff recommends that the City Council: 1) Open the public hearing; 2) Receive the Staff Report
and public testimony; 3) Close the public hearing and deliberate; and 4) waive the reading and
introduce the proposed ordinance revising Section 2.36 of the Municipal Code for the City of
Dublin and Providing for Informal Bidding Procedures Under the Uniform Public Construction
Cost Account Act (Section 22000, et seq. of the Public Contract Code).
Submitted By Reviewed By
Administrative Services Director Assistant City Manager
DESCRIPTION:
The current purchasing system is defined in Chapter 2.36 of the Dublin Municipal Code, and it
was last revised in February 2000 (Attachment 1). City Staff has conducted a comprehensive
review of the Citys Purchasing guidelines to: 1) Validate whether the current limits required
updating; 2) Examine options for local purchase preferences; and 3) Identify opportunities to
streamline the existing procurement process.
ITEM NO. 6.2
Page 1 of 5
City Staff conducted the review by undertaking the following tasks:
1. Staff worked with the City Attorney and City departments specifically impacted by the
proposed alterations to the Purchasing guidelines to examine areas for improvement;
2. Staff reviewed State Accounting Standards and options under State Law to revise
thresholds for fortmal bidding;
3. Staff compared the Citys existing Purchasing guidelines with the procurement policies
of nearby cities.
Because of the comprehensive nature of the amendments, it is difficult to present a word for
word tracking of the changes. To improve the administration of the purchasing function,
sections were moved and new sections were also added. The Staff report will highlight the
substanatative changes compared to the current ordinance and purchasing practices. The
proposed Ordinace as Attachment 2. Upon final adoption, this ordinance will fully replace the
current language in Chapter 2.36 of the Dublin Municipal Code.
BASIC PURCHASE THRESHOLDS FOR BIDDING & AUTHORITY TO PURCHASE
The table below is a comparison of current purchase value thresholds between the City of
Dublin and nearby cities.
COMPARISON OF SURROUNDING AGENCY PURCHASE LIMITS
Dublin San Pleasanton Livermore Danville
Ramon**
City
Up to Up to Up to Up to Up to
Manager
$ 19,999 $ 50,000 $ 100,000 $ 100,000 $ 25,000
Authority
Price
Exceeding Exceeding Exceeding Exceeding Exceeding
Quotations
$ 999 $ 10,000 $ 5,000 $ 5,000 $ 2,500
Required
Formal Bid
Exceeding Exceeding Exceeding Exceeding Exeeding
(Excludes
$ 500,000 $ 100,000 $ 50,000 $ 15,000
$ 19,999
Public
Projects)
Formal Bid -
Exceeding Exceeding Exceeding Exceeding Exceeding
Public
$5,000 $500,000 $100,000 $5,000 $5,000
Projects
** The City of San Ramon is a Charter City and purchasing is governed by provisions of their
Charter.
Based on the comparison of nearby cities and staff feedback, City staff proposes that the
purchase value thresholds be amended. Special provisions will apply to public projects and will
be discussed later in this report. The following apply to general purchases of goods and
services:
1. The purchase value limit associated with purchases allowed to be purchased from the
nearest source without a required review of pricing would increase from $1,000 to
$5,000. The ordinance and staff procedures encourage solicitation of competitive pricing;
however, it is not a requirement.
Page 2 of 5
2. The purchase value range associated with informal pricing would be applicable to
purchases greater than or equal to $5,000 and less than $45,000. (Currently this
applies to purchases between $1,000 and $19,999).
3. Currently City Council approval is required for purchases of $20,000 and greater. The
proposed revision will increase the authority of the City Manager to approve purchases
less than $45,000. (As discussed later for Public Projects the City Manager will have a
higher limit).
4. Currently a formal sealed bid process is used for purchases in excess of $20,000. The
revision will increase the threshold to purchases of $45,000 or greater.
REORGANIZATION OF PURCHASING ORDINANCE - ADMINISTRATION
The proposed revisions to Chapter 2.36 of the Dublin Municipal Code include three additional
sections: 2.36.020 Definitions, 2.36.030 City Council Authority, and 2.36.050 Purchasing Agent
Authority for Purchases Less than $45,000. The City has a decentralized purchasing system
meaning that Staff throughout the organization are responsible for adhering to the requirements.
Section 2.36020 (Definitions) will aid in consistent interpretation of the terms used within the
chapter and assist purchasers in determining the classification of their purchase.
Sections 2.36.030 (City Council Authority) and 2.36.050 (Purchasing Agent Authority for
Purchases Less than $45,000) will detail the conditions under which the Purchasing Agent is
authorized to contract for services.
Other recommended revisions to Chapter 2.36 of the Dublin Municipal Code include a re-
ordering of the sections in order to allow users to move through the document and be able to
easily determine which sections apply to their procurement. Purchasing categories will appear
in an uninterrupted sequence that allows the user to readily identify the applicable section.
Exceptions and general considerations sections are re-ordered to follow the purchasing
categories.
Section 2.36.150 related to surplus supplies and equipment was also revised to allow for these
activities to be handled administratively. Currently Staff presents a recommendation to the City
Council to dispose of surplus items. The revised ordinance will allow Staff to handle these
transactions and record them in the Citys financial records.
INCORPORATION OF UPCCAA PROCEDURES FOR PUBLIC PROJECTS
Under the Citys existing municipal code, which follows State Law (DMC Section 2.36.120), all
public projects (non-maintenance building, street, or sewer work) over $5,000 are formally bid
and let to the lowest responsible bidder, per Public Contract Code 20161 and 20162. The
$5,000 limit under State law has not changed since the City was incorporated in 1982. The
Uniform Public Construction Cost Accounting Act (UPCCAA) program offers an alternative
threshold provided that the agency follows certain requirements and adopts a special resolution.
Local agencies that have adopted the UPCCAA include the City of Pleasanton and the Dublin
Unified School District.
Under the UPCCAA program, enacted in 1983, local agencies must follow specific cost
accounting procedures. Attachment 3 is a publication issued by the State Controller that
provides an overview of the Act. The State Program allows agencies to use the following
thresholds for public projects:
Page 3 of 5
Project work of up to $45,000 by negotiated contract or purchase order in
·
accordance with local rules.
Projects defined as public work costing between $45,000 and $175,000 may be
·
let to contract under informal procedures specified in the UPCCAA Policies and
Procedures Manual.
All projects over $175,000 must be bid in accordance with formal bidding
·
requirements.
Implementation of the Uniform Public Construction Cost Accounting Act (UPCCAA) program
would establish an opportunity to increase thresholds for formal public bidding administratively,
using policies that are in keeping with State Accounting standards. This process is expected to
expedite the time required to arrange for eligible projects to get underway and it will reduce
paperwork relative to advertising and filing of staff reports.
Actions required of the agency include formal election to become subject of the act and adoption
of alternate bidding procedures. If the UPCCAA program is adopted by the City, required actions
include advertisement of projects to a list of qualified bidders maintained by the City;
additionally, each public projects estimated and actual costs must be tracked under a unique
project code number. The existing project accounting system in EDEN is able to track the
necessary project costs. The State accounting requirements focus on costs of work performed
by City forces. Since the City contracts applicable work already, the accounting should not be a
significant burden.
Section 2.36.160 of the revised Dublin Municipal Code (Attachment 2) includes language
outlining the purchasing requirements under UPCCAA. At this time, Staff has proposed to have
the City use a formal process for all projects over $100,000, in lieu of the $175,000 limit allowed
under UPCCAA. This means that the City Council will formally award all contracts in excess of
$100,000. For public projects between $45,000 and $100,000, Staff is proposing that the City
Manager (Purchasing Agent) be authorized to award contracts. This is consistent with the
informal bid procedures set forth in Section 2.36.160 of the proposed ordinance and in Section
22034 of the Public Contract Code. A resolution will be required to adopt the UPCCAA
provisions. Since this will need to be effective with the new ordinance, this will be presented as
part of the Staff Report at the time of the second reading of the ordinance.
LOCAL VENDOR PURCHASING OPTIONS
At the request of the City Council, the City Attorney reviewed options to include a purchase
preference for local businesses. In researching the item, it was noted that this topic was
previously researched by the City Attorney in 1999 and a report was presented to the City
Council on May 5, 1999 (Attachment 4). The recommendation at that time was to not offer a
local preference as it could be subject to a legal challenge. The City Attorney examined current
legal opinions and laws and determined that their 1999 recommendation remained unchanged.
Staff are encouraged to seek participation from local vendors. The current ordinance also
allows the preference to a local vendor in the event of a tie.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None
Page 4 of 5
1. Current Chapter 2.36 of the Dublin Municipal Code Purchasing
ATTACHMENTS:
2. Proposed Ordinance Revising Section 2.36 of the Municipal Code for
the City of Dublin and Providing Informal Bidding Procedures Under
the Uniform Public Construction Cost Account Act (Section 22000, et
seq. of the Public Contract Code)
3. California State Controller FAQ - Uniform Public Construction Cost
Account Act
4. May 5, 1999 City Council staff report (including City Attorney
analysis) regarding Local Purchase Preferences
Page 5 of 5
ORDINANCE NO. xx – 12
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * * * * * * *
REVISING SECTION 2.36 TO THE MUNICIPAL CODE OF THE CITY OF DUBLIN
AND PROVIDING INFORMAL BIDDING PROCEDURES UNDER THE
UNIFORM PUBLIC CONSTRUCTION COST ACCOUNT ACT
(Section 22000, et seq. of the Public Contract Code)
WHEREAS,
Chapter 2.36 (“Purchasing” guidelines) of the Dublin Municipal Code
was last reviewed in February 2000; and
WHEREAS,
at the request of the City Council, Staff has reviewed the Purchasing
Ordinance to streamline the existing procurement process and to reduce the number of
purchases that require a staff report and City Council approval; and
WHEREAS,
implementation of the Uniform Public Construction Cost Accounting
Act (UPCCAA) program would establish an opportunity to increase the new thresholds
for formal and informal public bidding, using policies that are in keeping with State
Accounting standards; and
WHEREAS,
Staff has identified proposed amendments to the Dublin Purchasing
Ordinance; and
WHEREAS,
the exact text amendments are shown in Section 2 of this
Ordinance.
NOW, THEREFORE,
the City Council of the City of Dublin does ordain as
follows:
SECTION 1:
Chapter 2.36 of the Dublin Municipal Code is hereby deleted in its entirety.
SECTION 2:
A new Chapter 2.36 is hereby added to the Dublin Municipal Code to read as
follows:
Chapter 2.36
Contracts and Purchasing
2.36.010 Adoption of a purchasing system.
2.36.020 Definitions.
2.36.030 City Council approval of contracts and purchases.
ATTACHMENT 2
2.36.040 Purchasing Agent designated.
2.36.050 Purchasing Agent authority for contracts and purchases—less than $45,000.
2.36.060 Purchasing Award—Factors to be considered for Responsiveness and
Responsibility.
2.36.070 Contracts and Purchases of general services, supplies and equipment—less
than $5,000.
2.36.080 Contracts and purchases of general services, supplies and equipment—more
than or equal to $5,000 and less than $45,000.
2.36.090 City Council Authority for contracts and purchases— greater than or equal to
$45,000 - Competitive Bidding.
2.36.100 Exceptions to Competitive Bidding.
2.36.110 Splitting orders prohibited.
2.36.120 Purchase orders.
2.36.130 Availability of sufficient funds.
2.36.140 Inspection and review.
2.36.150 Surplus supplies and equipment.
2.36.160 Public Projects.
2.36.010 Adoption of a purchasing system.
A purchasing system is hereby adopted in order to establish efficient procedures for the
procurement of services, supplies and equipment at the lowest possible cost
commensurate with the level of quality required, to exercise financial control over
purchases, and to clearly define authority for the purchasing function
2.36.020 Definitions.
For the purposes of this Chapter, the words set out in this section shall have the
following meanings:
A. “Consultant or professional services” means the services rendered by architects,
attorneys, engineers, doctors, financial consultants, planning or environmental
consultants, investment advisors, bank or trustee officers, and other professional or
specialized consultants.
B. “Contract” means any agreement to do or not do a certain thing. For the purposes of
this Chapter, “contract” and “agreement” are synonymous. The term “contract”
includes, but is not limited to, a purchase order; a contract for services; an
addendum or change order, which means a change or addendum to an executed
contract; a letter agreement; and a memorandum of understanding.
C. “Force Account” is a term used by the Uniform Construction Cost Accounting
Procedures meaning an account which is used to account for work performed on
public projects using internal resources, including but not limited to labor, equipment,
materials, supplies, and subcontracts of the public agency.
2
D. “Emergency” means a sudden, unexpected occurrence that poses a clear and
imminent danger, requiring immediate action to prevent or mitigate the loss or
impairment of life, health, property, or essential public services.
E. “General services” means and includes any work performed or services rendered by
an independent contractor, with or without the furnishing of materials, including, but
not limited to, the following:
1. Maintenance or nonstructural repair of City buildings, structures or
improvements which does not require engineering plans, specifications or
design, including, but not limited to, unscheduled replacement of broken
window panes, fire extinguisher maintenance, minor roof repairs, plumbing,
elevator maintenance, custodial services and pest control; etc.
2. Repair, modification and maintenance of City equipment and software;
3. Cleaning, analysis, testing, moving, removal or disposal (other than by sale)
of City supplies and equipment;
4. Replanting, care or maintenance of public grounds, including, but not limited
to, maintenance of trees, shrubbery, flowers, lawns;
5. Providing temporary personnel services;
6. Providing other miscellaneous services to facilitate City operations;
7. Performing repair, demolition or other work required to abate nuisances under
this Code;
8. Licensing software services;
9. Leasing or rental of equipment (personal property) for use by the City;
10. Maintenance of equipment owned or leased by the City.
“General services” does not include consultant or professional services, or work
associated with a public project.
F. “Goods of a technical nature” means hardware, software, or communications
equipment, or any item that is substantially similar to the foregoing as determined by
the Purchasing Agent.
G. “Public project” shall have the meaning given that term by California Public Contract
Code Section 20161 and the Uniform Construction Cost Accounting Procedures
(“UCCAP”) set forth in the Uniform Public Construction Cost Account Act (“The Act”)
and referenced in Section 2.36.160 of the Dublin Municipal Code
H. “Supplies and equipment” means and includes tangible goods, supplies, equipment,
vehicles, printing, materials, and furniture and furnishings purchased on behalf of the
City.
2.36.030 City Council approval of contracts and purchases.
City Council approval is required for all contracts and purchases unless otherwise
specified by this Chapter or Code, or by another provision of federal or state law.
3
2.36.040 Purchasing Agent designated.
The City Manager is designated as Purchasing Agent. The Purchasing Agent may
delegate all or a portion of the contracting or purchasing duties to any City staff
member. The Purchasing Agent shall have the authority to:
A. Contract for or procure consultant or professional services, general services,
supplies and equipment required by the City, in accordance with purchasing
procedures outlined in this Chapter;
B. Negotiate and recommend execution of contracts for the purchase of consultant or
professional services, general services, supplies and equipment;
C. Act to procure for the City the necessary quality in consultant or professional
services, general services, supplies and equipment at the lowest cost to the City;
D. Prepare and recommend to the City Council revisions and amendments to the
purchasing rules;
E. Establish and maintain such forms as are reasonably necessary to the operation of
this Chapter;
F. Supervise the inspection of all consultant or professional services, general services,
supplies and equipment purchased to insure conformance with specifications;
G. Pursuant to Section 2.36.150, arrange the sale or disposal of all supplies and
equipment which cannot be used by the City, or which have become unsuitable for
City use;
H. Maintain a bidder’s list and other records necessary for the efficient acquisition of
consultant or professional services, general services, and supplies and equipment;
I. Join with other governmental agencies in joint purchasing endeavors where the
purchasing procedures conform to the provisions of this Chapter and State law.
2.36.050 Purchasing Agent authority for contracts and purchases—less than $45,000.
A. With the exception of public projects as defined in Section 2.36.020, the Purchasing
Agent is authorized to enter into a contract on behalf of the City and approve a
purchase by the City without the prior approval of the City Council, so long as
the contract or purchase satisfies the following conditions:
1. The total cost is less than $45,000;
2. The monies have been appropriated; and
3. The contract or purchase is for consultant or professional services, general
services, or supplies and equipment
4
B. In an emergency the Purchasing Agent may authorize the expenditure of any
unencumbered monies in the emergency reserve fund, notwithstanding the fact that
such moneys may not have been appropriated for such purpose, to the extent that
said emergency funds have not been appropriated or are otherwise unavailable
therefore.
2.36.060 Purchasing award—Factors to be considered for Responsiveness and
Responsibility.
The following factors shall be considered in determining the responsiveness of potential
contracts and purchases and the responsibility of vendors and bidders in accordance
with applicable law:
A. The amount of the contract or the purchase price;
B. The ability, capacity and skill of the bidder or vendor to perform the contract or
provide the service required;
C. The ability of the bidder or vendor to perform the contract or provide the service
promptly, or within the time specified, without delay or interference;
D. The reputation and experience of the bidder or vendor;
E. The previous experience of the City with the bidder or vendor;
F. The previous and existing compliance by the bidder or vendor with the laws and
ordinances;
G. The sufficiency of the bidder’s or vendor’s financial resources and ability to perform
the contract or provide the service;
H. The quality, availability, and adaptability of the supplies or contractual services to
the particular use required;
I. The ability of the bidder or vendor to provide future maintenance and service for the
subject of the contract or purchase;
J. The number and scope of conditions attached to the contract or purchase;
K. The purchase of supplies, whenever feasible, containing the highest amount of
postconsumer and recovered materials practicable. In all cases, these products
must meet reasonable performance standards, and be readily available at a
competitive price. In addition, all equipment bought, leased or rented shall,
wherever feasible, be compatible with the use of other recycled products purchased
by the City;
5
L. Compliance with any administrative policies referencing “green fleet” purchasing
procedures;
M. In the event that two or more potential contracts or bids are received from
responsible bidders or vendors for the same total amount or unit price, quality and
service being equal, preference shall be given to the local vendor, or the City
Council may accept the lowest bid made by negotiation with the tie bidders and the
Purchasing Agent.
2.36.070 Contracts and purchases of general services, supplies and equipment—less
than $5,000.
For purchases of general services or supplies and equipment of less than $5,000,
informal quotations should be obtained, but are not required. Comparative pricing is
expected to secure the lowest price. Negotiated pricing is allowed and departments are
strongly encouraged to solicit quotations from City- based businesses.
2.36.080 Contracts and purchases of general services, supplies, and equipment—
greater than or equal to $5,000 and less than $45,000.
A. Purchases of general services, supplies and equipment greater than or equal to
$5,000 and less than $45,000 shall, whenever possible, be based on at least three
quotations. For purchases greater than or equal to $5,000 and less than $10,000,
the quotations may be verbal or written. For purchases greater than or equal to
$10,000 and less than $45,000, the quotations shall in writing, which writings may
include facsimile and electronic mail transmissions. Quotations with the required
documentation shall be submitted to the Finance Department for approval by the
Purchasing Agent. Negotiated pricing is allowed and departments are strongly
encouraged to solicit quotations from City-based businesses. The purchase of any
general services, supplies and equipment greater than or equal to $5,000 and less
than $45,000 shall be consistent with the factors stated in 2.36.060 and shall be
made from the vendor that submits the lowest total cost.
B. At the discretion of the Purchasing Agent, the competitive bidding procedure set
forth in section 2.36.090 may be used for any acquisition of general services,
supplies and equipment, regardless of the value.
2.36.090 City Council authority for contracts and purchases— greater than or equal to
$45,000—Competitive bidding.
City Council approval shall be required to authorize the contract for or purchase of any
consultant or professional services, general services or supplies and equipment with a
cost greater than or equal to $45,000.
City Council authorization for purchases of general services and supplies and
equipment with a cost greater than or equal to $45,000 shall comply with the
6
competitive bidding procedure set forth in this section, except as provided in Section
2.36.100. Bids should be obtained from one or more vendors located within the City
whenever possible.
A. Notices inviting bids shall include a general description of the services and/or articles
to be purchased or sold, where bid blanks and specifications may be obtained, the
time and place for bid openings, and whether a bid deposit or bond and a faithful
performance bond will be required.
B. Notices inviting bids shall be posted in at least three (3) public places in the City that
have been designated by ordinance as the place for posting public notices, at least
fourteen (14) calendar days before the date of opening the bids.
C. The Purchasing Agent shall also solicit sealed bids from all responsible prospective
suppliers whose names are on the bidder’s list and may advertise the notice inviting
bids in applicable publications and websites readily accessible to the public.
D. When deemed necessary by the Purchasing Agent or City Council, any bidder may
be required to submit a bid deposit or bond in an amount determined by the
Purchasing Agent or City Council. A successful bidder (and his surety, if a bond is
furnished) shall be liable for any damages upon the bidder’s failure to enter into a
contract with the City or upon the bidder's failure to perform in accordance with the
tenor of his or her bid.
E. When deemed necessary by the Purchasing Agent or City Council, any person or
entity entering into a contract with the City may be required to furnish a faithful
performance deposit or bond in an amount determined by the Purchasing Agent or
City Council.
F. Bids shall be opened in public at the time and place stated in the public notices. A
tabulation of all bids received shall be open for public inspection during regular
business hours for a period of not less than thirty (30) calendar days after the bid
opening.
G. At its discretion, the City Council may reject all bids presented and re-advertise for
bids.
H. Contracts shall be awarded by the City Council to the lowest responsive, responsible
bidder, except as otherwise provided herein.
I. If two or more bids received from responsible bidders are for the same total amount
or unit price, quality and service being equal, preference shall be given to the local
vendor, or the City Council may accept the lowest bid made by negotiation with the
tie bidders and the Purchasing Agent at the time of the bid opening.
7
2.36.100 Exceptions to competitive bidding.
A. Contracts or purchases involving the acquisition of consultant or professional
services, are exempt from competitive bidding, however the procurement of such
services shall be subject to the following:
1. Contracts or purchases involving the acquisition of consultant or
professional services greater than or equal to $45,000 will require City
Council approval.
2. With respect to contracts for or procurement of professional services from
private architectural, landscape architectural, engineering, environmental,
land surveying, or construction project management firms, the Purchasing
Agent shall establish administrative procedures to assure that such services
are engaged on the basis of demonstrated competence and qualifications
for the types of services to be performed and at fair and reasonable
prices in compliance with Government Code Section 4526 or its successor.
3. The Purchasing Agent may utilize a Request for Quotation or Request for
Proposal, to insure the services are matched with the needs of the City.
B. Any request for an exception under this subsection 2.36.100.B shall identify the
nature of the contract or purchase, amount of the contract or purchase, and the
reasons why competitive bidding is not feasible and shall be subject to City
Council approval. The provisions of Sections 2.36.090 subject to City Council
approval shall not apply to the following:
1. Where the City’s requirements can be met solely by a single patented article
or process;
2. Situations where no bids have been received following bid announcements
conducted pursuant to the provisions of this Chapter;
3. When an emergency requires that an order be placed with the nearest source
of supply;
4. When a contract or purchase involves goods of a technical nature, where it
would be difficult for a vendor to bid on a standard set of specifications, and
the Purchasing Agent undertakes a thorough review of known products and a
comparison of features which would most closely meet the City’s needs at the
lowest cost;
5. For janitorial services for city buildings and facilities;
6. For maintenance and repair of buildings and facilities;
7. For maintenance and repair of public streets, including street sweeping;
8. Public Projects, pursuant to Article V of this Chapter;
9. When another public agency has administered a competitive bidding process
and has a current valid agreement for the same or substantially similar
consultant or professional services, general services, supplies or equipment;
10. When the City Council specifically waives the competitive bid process and
authorizes staff to negotiate the purchase of vehicles by a four-fifths vote.
8
2.36.110 Splitting orders prohibited.
The purchasing dollar limits set forth in this Chapter are determined on a per order
basis. It is unlawful to split or separate into smaller orders the contract or purchase of
general services, supplies and equipment for the purpose of evading the competitive
bidding provisions of this Chapter.
2.36.120 Purchase orders.
Purchases greater than or equal to $5,000 shall be documented by purchase orders
prepared by the Purchasing Agent in accordance with adopted administrative policies.
2.36.130 Availability of sufficient funds.
No purchase shall be transacted until it has been ascertained that there is, to the credit
of the department of the City for whose benefit such purchase is to be made, a sufficient
appropriated balance in excess of all unpaid obligations to defray the amount of such
purchase.
2.36.140 Inspection and review.
The Purchasing Agent shall require the inspection of supplies and equipment delivered,
and contractual services performed, to determine their conformance with the
specifications and requirements set forth in the purchase order or contract.
2.36.150 Surplus supplies and equipment.
The Purchasing Agent shall establish administrative procedures for City departments to
report all supplies and equipment which are no longer used or which have become
obsolete or worn out. The Purchasing Agent shall have the authority to sell, trade,
exchange, dispose of, discard or destroy all said supplies and equipment. Such sales
may be made by auction, negotiated sale, or otherwise, after receiving bids or proposals
that provide the maximum return to the City, as determined by the Purchasing Agent.
The Purchasing Agent shall have the authority to recommend to the City Council
surplus supplies and equipment for donation, which donation shall be subject to City
Council approval upon making the appropriate findings, including the requisite public
purpose for such donation.
At such times as determined by the Purchasing Agent, but at least annually, reports
shall be prepared and submitted to the City Manager showing the disposition of surplus
supplies and equipment. The report shall contain itemized information on the disposition
of any item that had a purchase cost in excess of the capitalization threshold
established by the City Manager or his or her designee for inclusion as an asset in the
City financial records.
9
2.36.160 Public Projects.
Public projects as defined by Uniform Public Construction Cost Accounting Act (§22000,
et seq of the California Public Contract Code) shall follow the purchasing procedures as
set forth in Section 22032 et seq. of the Public Contract Code.
A. The purchase or contract for public projects less than $45,000 may be performed
by the employees of a public agency by force account, by negotiated contract, or
by purchase order. (Public Contract Code §22032)
B. The purchase or contract for public projects less than $100,000 may be let to
contract by informal procedures as set forth in Section 22032 et seq. of the Public
Contract Code.
1. A list of contractors shall be developed and maintained in accordance with the
provisions of Section 22034 of the Public Contract Code and criteria
promulgated from time to time by the California Uniform Construction Cost
Accounting Commission.
2. Where a public project is to be performed, a notice inviting informal bids shall
be mailed to all contractors for the category of work to be bid, as shown on
the list developed in accordance with this section, and to all construction trade
journals as specified by the California Uniform Constructions Cost Accounting
Commission in accordance with Section 22036 of the Public Contract Code.
Additional contractors and/or construction trade journals may be notified;
provided however:
i. If there is no list of qualified contractors maintained by the City for the
particular category of work to be performed, the notice inviting bids
shall be sent only to the construction trade journals specified by the
California Uniform Construction Cost Accounting Commission.
ii. If the product or service is proprietary in nature such that it can be
obtained only from a certain contractor or contractors, the notice
inviting informal bids may be sent exclusively to such contractor or
contractors.
3. All mailing of notices to contractors and construction journals pursuant to this
Section shall be completed not less than fourteen (14) calendar days before
bids are due.
4. The notice inviting informal bids shall describe the project in general terms,
how to obtain more detailed information about the project, and shall state the
time and place for the submission of bids.
5. The Purchasing Agent is authorized to award informal contracts pursuant to
this Section.
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C. The purchase or contract for public projects greater than or equal to $100,000
shall be authorized by City Council and shall comply with the competitive bidding
procedures set forth in Section 2.36.090.
SECTION 3:
This Ordinance shall take effect and be in force thirty (30) days from and after the date
of its final adoption. The City Clerk of the City of Dublin shall cause this Ordinance to be
posted in at least three (3) public places in the City of Dublin in accordance with Section
39633 of the Government Code of California.
PASSED, APPROVED, AND ADOPTED BY
the City Council of the City of Dublin on
this 21 day of August, 2012, by the following votes:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
Mayor
ATTEST
:
___________________________________
City Clerk
11
RESOLUTION NO. XX - 12
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * * * *
AUTHORIZING THE USE OF THE UNIFORM PUBLIC CONSTRUCTION COST
ACCOUNTING PROCEDURES FOR PUBLIC PROJECT CONTRACTS
WHEREAS,
prior to the passage of Assembly Bill No. 1666, Chapter 1054, Statues of
1983, which added Chapter 2, commencing with Section 22000, to Part 3 of Division 2 of the
Public Contract Code, existing law did not provide a uniform cost accounting standard for
construction work performed of contracted by local public agencies; and
WHEREAS,
Public Contract Code Section 22000 et seq., the Uniform Public
Construction Cost Accounting Act, (“the Act”) establishes such a uniform cost accounting
standard; and
WHEREAS,
the Commission established under the Act has developed uniform public
construction cost accounting procedures for implementation by local public agencies in the
performance of or in the contracting for construction of public projects; and
WHEREAS,
the City Council intends to adopt an ordinance amending Chapter 2.36 of
the Dublin Municipal Code to incorporate changes consistent with the Act, which ordinance will
take effect and be in force 30 days from and after the date of its adoption.
NOW, THEREFORE, BE IT RESOLVED
that the City Council of the City of Dublin
hereby elects under Public Contract Code Section 22030 to become subject to the uniform
public construction cost accounting procedures set forth in the Act and to the Commission’s
policies and procedures manual and cost accounting review procedures, as they may each from
time to time be amended, and directs that the City Clerk notify the State Controller forthwith of
this election.
BE IT FURTHER RESOLVED
that this Resolution shall take effect and be in force thirty
(30) days from and after the date of its adoption.
st
PASSED, APPROVED AND ADOPTED
this 21 day of August, 2012, by the following
vote:
AYES
:
NOES
:
ABSENT
:
ABSTAIN
:
______________________________
Mayor
ATTEST
:
_________________________________
City Clerk
ATTACHMENT 3