HomeMy WebLinkAboutItem 6.2 AmendPrchOrdCompBidReq
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: (November 4, 1997)
CITY CLERK
File # D[3J[8][Q]-[Z][(iL
350 -:w
SUBJECT:
Public Hearing: Amendment To Purchasing Ordinance To Allow For
Waiver of Competitive Bidding Requirements- Urgency Basis
~repared By: Paul Rankin, Assistant City Manager)
EXIllBITS ATTACHED: 1.
Excerpt from Current Municipal Code Section 2.36.050
2. Proposed Amendment To Chapter 2.36.050 of the Municipal Code
RECOMMENDATION: 1) Open the public hearing; 2) Receive the Staff Report and public
1~estimony; 3) Close the public Hearing and deliberate; 4) Waive the reading
~ and adopt the Ordinance on an urgency basis.
FINANCIAL STATEMENT:
This action would reduce the Staff cost associated with the
competitive bidding process, while assuring that competitive prices
are received.
DESCRIPTION: The City has adopted rules and regulations related to purchasing
which are intended to establish efficient procedures for the purchase of items at the lowest possible cost.
Except as currently authorized in Section 2.36.050 (A)(#'s 1 -9) all purchases over $5,000 are required to
be made in accordance with a competitive bid process.(Exhibit 1) The City Purchasing Ordinance is
applicable to purchases which are not covered under the Public Contract Code as "Public Works
Projects". The State Code requires competitive bidding of all "Public Works Projects" over $5,000.
Proposed Amendment
Attached as Exhibit 2 is a modification, which would authorize Staff to directly negotiate a purchase
provided that the City Council authorizes the action in cases involving more than $5,000. In the adopted
Fiscal Year 1997/98 Budget the City is scheduled to purchase a new Fire Engine. The proposed ordinance
amendment can greatly facilitate the purchasing process while still protecting the public interest of
assuring that public monies are expended in an appropriate manner. The use of this section is anticipated
to be most applicable in the case of purchasing vehicles.
In cases where a new vehicle is purchased, there are opportunities for cooperative purchases where
another public agency has competitively bid a similar item. This type of purchase is common among
most government agencies. For example, the State of California General Services Agency operates a
program whereby they extend their purchasing program to other government agencies. The State is
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COPIES TO:
ITEMNO.~
GIFire/purchord.doc
required under State Law to bid the purchases and award them on a competitive basis. The public
agencies benefit by receiving pricing extended to the State of California based upon their estimated order
quantities. The local agency also benefits fTom less cost administering the development of specifications
and the bid award process.
In the past Staff has also found it difficult to utilize the formal bid process when purchasing used vehicles,
which are typically used by Police Investigators. Development of specific specifications are difficult for
the following reasons: there are a large number of makes and models which would be suitable; dealers
cannot always assure availability of a particular vehicle; and there can be a variance in the mileage and
condition of used vehicles. Although the current budget does not anticipate a used vehicle purchase at this
time the proposed modification would better facilitate the process in the future.
Use of the Proposed Exception Requires City Council Authorization If Purchase Is Over $5,000
As proposed, if an exception to the competitive bidding requirement is desired and the contract amount
exceeds $5,000 it must be authorized upon action by the City Council.(Section 2.36.050(B)) This assures
that for major purchases, the City Council will be informed of the procurement process to be used.
The amendment adds two additional conditions under which the bidding requirements can be waived.
Section 1 0 provides an exemption if another public agency has administered a competitive bidding
process within the past two years. Section 11 authorizes the City Council by a four-fifths vote to waive
the competitive bid requirements on the purchase of vehicles under this section. The super majority
provision is intended to emphasize that this would most typically occur in extraordinary circumstances
where adequate justification is presented. It is anticipated the Staff report would describe the type of
purchase and what steps had been taken to assure that a competitive price is paid commensurate with the
level of quality required.
As previously noted, these exceptions will not affect the required competitive bidding of street
reconstruction and other "Public Works" projects as required under Section 20161 and 20162 of the
Public Contracts Code. The City is not restricted by State Law in developing different procedures for the
purchase of equipment, materials, and services which are not defmed as "Public Works Projects".
Recommendation To Adopt Ordinance On An Urgency Basis
The City of Dublin as well as the City of San Leandro contract with the Alameda County Fire Department
for the provision of Fire Suppression Services. All three agencies have current orders or plans to order
new Fire Engines, this Fiscal Year. The County and San Leandro have already placed orders for a
Quantum Fire Engine manufactured by Pierce Manufacturing. The manufacturer has an available
production slot provided that an order is placed by November 5, 1997. This will considerably advance the
delivery schedule beyond what could otherwise be achieved.
In addition, Alameda County Fire Department Staffhave represented that the manufacturer is offering a
competitive price compared to recent bids by other agencies, including a bid by the City of Oakland for 7
Fire Engines. The shortened order period necessitates that the ordinance be adopted on an urgency basis
in order for the City Council to consider the Fire Engine purchase under this arrangement.
Conclusion
Staff recommends that the City Council conduct a public hearing, waive the reading, and adopt the
ordinance on an urgency basis.
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L-
ORDINANCE NO. - 97
AN URGENCY ORDINANCE AMENDING DUBLIN MUNICIPAL CODE
SECTION 2.36.050 TO PROVIDE AN EXCEPTION FOR PURCHASES WHICH
ARE SUBSTANTIALLY SIMIIAR TO BIDS ADMINISTERED
BY ANOTHER PUBLIC AGENCY
The City Council of the City of Dublin does ordain as follows:
SECTION 1 Section 2.~~6.0S0 amended.
Amend section 2.36.050 of the Dublin Municipal Code by adding the following
provisions to subsection A:
10. When another public agency has administered a
competitive bidding process within the past two years for the
same or substantially similar supplies, services or equipment.
11. ''''hen tlle City Council specifically waives tlle
competitive bid process and autl101izes staff to negotiate tlle
purchase of vehicles by a four-fIfths (4/5) vote.
SECTION 2 Effective Date and Posting.
This ordinance shall take effect immediately pursuant to Government Code
section 36937(b) in that it relates to the immediate preservation of the City's health
and safety. The City has deteITIÙned that it is necessary purchase an additional fIre
engine to protect the public safety by providing better rITe protection services. If this
amendment is approved, the City may act immediately to procure a fIre engine to meet
this need. The City of Oakland has already conducted a competitive bidding process for
a lìre engine model with substantially similar spedfìcations as those required by the
City_ Thf' City of O;:¡kl:mcl i~ pllrch;:¡~ing;:¡ nllmhe:r of the:~e: fÌrf' f'nginf'~_ PmviclNf it acts
quickly, the City of Dublin may secure the final production slot for the rITe engine.
11ms, this urgency measure preserves the public safety by providing the fIre service
necessalY to protect the citizens of the City of Dublin in a quicker, more efficient
manner.
111e City Clerk of Ù1e City of Dublin shall cause ùlÌs ordinance to be posted in at
least three public places in the City of Dublin in accOl-dance WiÙl Section 36933 of the
Government Code of Ùle State of California-
PASSED, APPROVED AND ADOPTED by the City Council of the City of Dublin this
_ day of , 1997, by the follO'wing vote:
AYES:
NOES:
ABS'l'AIN:
ABSENT:
Mayor
ATTEST:
City Clerk
J :\WPD\MN RSVY\ 1 14\0 1 \MEMO\OCT9 7\2-3 6-050.030
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