HomeMy WebLinkAboutOrd 12-12 Informal Bidding Procedures •
ORDINANCE NO. 12 — 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.
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.
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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.
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;
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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.
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;
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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
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;
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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;
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.
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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 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.
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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.
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.
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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.
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.
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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.
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.
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PASSED, APPROVED, AND ADOPTED this 21 day of August, 2012, by the following votes:
AYES: Councilmembers Biddle, Hart, Hildenbrand, Swalwell, and Mayor
•
Sbranti
NOES: None
ABSENT: None
ABSTAIN: None N
Mayor
ATTEST:
9Lutifi Deputy City Clerk (r
Ord No. 12-12,Adopted 8-21-12, Item 4.4 Page 10 of 10