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HomeMy WebLinkAbout6.1 Purchasing Ord CITY CLERK File # 380-10 AGENDA STATEMENT CITY COUNCIL MEETING DATE: February 15, 2000 SUBJECT: Public Hearing: Amendments to City's Purchasing Ordinance - (Report Prepared by: Fred Marsh, Finance Manager) EXHIBITS ATTACHED: 1. 2. Chapter 2.36 of the Dublin Municipal Code - Purchasing (Code) Draft Ordinance RECOMMENDATION: 1. 4. Open the public hearing Receive the Staff Report and public testimony Close the public hearing and deliberate Waive the reading and ADOPT the Ordinance. FINANCIAL STATEMENT: This action would reduce the Staff cost associated with the bidding process and the issuing of contracts, while assuring that competitive prices are received. DESCRIPTION: At the February 1st Council Meeting, Council introduced an ordinance which would add the following revisions to the City's Purchasing Ordinance, which has not been amended since its initial adoption in 1983: a) b) c) Require Council approval of contracts over $20,000 (existing amount - $5,000). Require that formal bids be obtained for purchases over $20,000 (currently formal bids are required for purchases Over $5,000). Require that no bids be obtained for purchases under $1,000 (existing amount - $200) and require three informal bids to be obtained for purchases between $1,000 and $20,000. f) e) Update Section 2.36.040 of the'Municipal Code to direct Staff to obtain a bid from one or more vendors located within the City of Dublin whenever possible. (The wording in this revision was revised based upon a recommendation made by Council at the February 1st meeting.) Update Section 2.36.040 of the Municipal Code to add a clause which encourages the purchase of products, whenever feasible, containing the highest amount of postconsumer and recovered materials practicable. These products must meet reasonable performance standards and be readily available at a competitive price. In addition a clause will be added states that all equipment bought, leased or rented shall, wherever feasible, be compatible with recycled products purchased by the City. Update Section 2.36.030 of the Municipal Code to allow the City to advertise the notice inviting bids on websites readily accessible to the public." Other than the change noted in item d, no other changes were approved by Council to the proposed revisions to the City's purchasing ordinance. Staff recommends that Council conduct a public hearing, waive the reading and adopt the Ordinance. COPIES TO: G:WINANCEWREDWORD\purchasing ordinance update 2nd reading.doc ITEM NO. 2.36.010 Chapter 2.36 Sections: 2.36.010 2.36.020 2.36.030 2.36.040 2.36.050 2.36.060 2.36.070 2.36.080 2.36.090 2.36.100 2.36.110 2.36.120 2.36.130 PURCHASING Adoption of a purchasing system. Purchasing Agent designated. Purchases by City Council--Competitive bidding. Purchasing award-- Factors to be considered. Exceptions to competitive bidding requirements. Purchases of less than five thousand dollars ($5,000)--Procedure. Purchase orders. Availability of sufficient funds. Inspection and review. Surplus supplies and equipment. Splitting orders prohibited. Exceptions--Public projects. Exceptions-- Contracting for emergency cleanup of hazardous materials. 2.36.010 Adoption of a purchasing system. A purchasing system is adopted in order to establish efficient procedures for the purchase of supplies, services and equip- merit to secure for the city supplies, services and equipment at the lowest possible cost 35 commensurate with the level of quality required, to exercise financial control over purchases, and to clearly define authority for the purchasing function. (Ord. 16-83 § 1) 2.36.020 Purchasing Agent designated. The City Manager is designated as Pur- chasing Agent. The City Manager may delegate all or a portion of the purchasing duties to any city staff member. The Pur- chasing Agent shall have the authority to: A. Purchase or contract for supplies, services 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 supplies, services and equipment; C. Act to procure for the city the neces- sary quality in supplies, services, and equip- ment-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 reasonably necessary to the operation of purchasing guidelines; F. Supervise the inspection of all sup- plies, services, and equipment purchased to insure conformance with specifications; G. Recommend 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 acquisi- tion of goods and services. (Ord. 16-83 § 2) (Dublin 8-92) ATTACHMENT 1 2.36.030 2.36.030 Purchases by City CounCil--Competitive bidding. When the amount or value involved is at least five thousand dollars ($5,000), the purchase or disposal shall be made by the City Council through competitive bid as outlined below: A. Notice 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 bid deposit or bond and faithful performance bond will be required. B. Notice 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 ten (10) days before the date of opening the bids. C. The Purchasing Agent shall also solic- it sealed bids from all responsible prospec- tive suppliers whose names are on the bidder's list and may advertise the notice inviting bids in applicable publications. D. When deemed necessary by the Pur- chasing Agent or City Council, any bidder may be required to submit a bid deposit or bond in an amount determined by the Pur- chasing Agent or City Council. A successful bidder (and his surety, if a bond is fur- nished) 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 bid. E. When deemed necessary by the Pur- chasing Agent or City Council, any person or entity entering into a contract with the city may be required to furnish a faithflfl performance deposit or bond in aa amount determined by the Purchasing Agent or 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 open- ing. G. At its discretion, the City Council may reject all bids presented and readvertise for bids. H. Contracts shall be awarded bz the City Council to the lowest responsible bid- der, 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 ac- cept the lowest bid made by negotiation with the tie bidders and the Purchasing Agent at the time of the bid opening. (Ord. 16-83 § 3) 2.36.040 Purchasing award-- Factors to be considered. Purchases shall be awarded after consid- eration of the following factors: A. The amount of bid price; B. The ability, capacity and skill of the bidder to perform the contract or provide the service required; C. The ability of the bidder to perform the contract or provide the service promptly, or within the time specified, without delay or interference; (DubHa ~92) 36 2.36.040 D. The reputation and experience of the bidder; E. The previous experience of the city with the bidder; F. The previous and existing compliance by the bidder with the laws and ordinances; G. The sufficiency of the fmanciaI re- sources and ability of the bidder to perform the contract or provide the service; H. The quality, availability, and adapt- ability of the supplies or contractual servic- es to the particular use required; I. The ability of the biddei to provide future maintenance and service for the use of the subject of the contract; J. The number and scope of conditions attached to the bid. (Ord. 16-83 § 4) 2.36.050 Exceptions to competitive bidding requirements. A. The provisions of this chapter requir- ing competitive bidding shall not apply to the following: 1. Contracts involving the acquisition of professional or specialized services, such as, but not limited to, services rendered by architects, attorneys, engineers, and other specialized consultants; 2. Where the city's requirements can be met solely by a single patented article or process; 3. To situations where no bids have been received following bid announcements under other provisions of this chapter; 4. When the amount involved is less than two hundred dollars ($200); 5. When an emergency requires that an order be placed with the nearest source of supply; 6. When a purchase involves goods of a technical nature, where it would be diffi- cult for a vendor to bid on a standard set of specifications, the Purchasing Agent shall undertake a thorough review of known products and a comparison of features which would most closely meet the city's needs at the least cost; 7. For janitorial services for city build- ings and facilities; 8. For maintenance and repair of build- ings and facilities; 9. For maintenance and repair of public streets, including street sweeping. 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. When the City Council specifically waives the competitive bid process and authorizes staff to negotiate the purchase of vehicles by a four-fifths vote. 'B. When the procurement falls into any of the categories listed above, the Purchas- ing Agent may authorize contracts made by negotiation; provided, that the amount does not exceed five thousand dollars ($5,000). When the amount exceeds five thousand dollars ($5,000), the action must be autho- rized by the City Council. C. Any request for an exception under this section shall include the nature of the contract, amount of the contract, and the reasons why competitive bidding is not feasible. (Ord. 21-97 § 1; Ord. 5-91 § 1: Ord. 16-83 § 5) 2.36.060 Purchases of less than five thousand dollars ($5,000)---Procedure. Where the amount or value involved is more than two hundred dollars ($200), but less than five thousand dollars ($5,000), the purchase or disposal may be made by the 37 (Dublin 12-97) 2.36.060 Purchasing Agent, without written bid, and by informal price checking through tele- phone or mail inquiry, comparison of prices on file or otherwise. Every attempt shall be made to receive at least three (3) price quo- tations. At the discretion of the Purchasing Agent, the acquisition of goods and services where the value is at least two hundred dollars ($200) but less than five thousand dollars ($5,000), the formal competitive bid process may be used. (Ord. 16-83 § 6) 2.36.070 Purchase orders. All purchases shall be documented by a purchase order prepared by the Purchasing Agent. The original copy shall be directed to the vendor and one (1) copy shall be retained for the purchase order file. The final copy shall be directed to the depart- ment for whose benefit the purchase is be- ing made to be used as a receiving reportl (Ord. 16-83 § 7) 2.36.080 Availability of sufficient funds. No purchase order shall be issued 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 unappropriated balance in ex- cess of all unpaid obligations to defray the amount of such order. (Ord. 16-83 § 8) 2.36.090 Inspection and review. The Purchasing Agent shall require the inspection of supplies and equipment deliv- ered, and contractual services performed, to determine their conformance with the speci- fications and requirements set forth in the order or contract. (Ord. 16-83 § 9) 2.36.100 Surplus supplies and equipment. At such times as determined by the Pur- chasing Agent, reports shall be prepared showing 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 or exchange all said supplies and equipment. Such sales will be made pursuant to Section 2.36.030 or Section 2.36.060 of this chapter, whichever is applicable. (Ord. 16-83 § 10) 2.36.110 Splitting orders prohibited. It is unlawful to split or separate into smaller orders the purchase of supplies, materials, equipment or services for the purpose of evading the competitive bidding provisions of this chapter. (Ord. 16-83 § 11) 2.36.120 Exceptious--Public projects. This chapter is expressly made inapplica- ble to bids for public projects as defined by Public Contracts Code Section 20161 and where 'the expenditure required for the pub- lic project exceeds the limit set by Public Contracts Code Section 20162. The provi- sions contained in Public Contracts Code Section 20161 et seq., establish contract procedures the city shall follow regarding public projects. (Ord. 5-91 § 2: Ord. 16-83 § 12) 2.36.130 Exceptions---Contracting for emergency cleanup of hazardous materials. When, in the discretion of the Public Works Director/City Engineer or his or her designee, it is determined that a hazardous spill has occurred and that immediate clean- up is required to prevent the spill from entering the city storm drain system or any (Dublin 12-97) 38 2.36.130 watercourse, the City Manager, or his or her designee, may contract for the clean up of the spill. Any such contract in the amount of five thousand dollars ($5,000) or under may be entered into on behalf of the city by the City Manager, or his or her designee, without prior City Council approval; how- ever, no such contract exceeding five thou- sand dollars ($5,000) in amount shall be executed without prior approval of the City Council. (Ord. 9-92 § 3) 38a (Dublin 12-97) ORDINANCE NO. - 00 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUBLIN AMENDING DUBLIN MUNICIPAL CODE CHAPTER 2.36 TO UPDATE THE PURCHASING PROCESS FOR THE ISSUANCE AND AWARD OF BIDS, APPROVAL OF CONTRACTS, AND PURCHASE OF PRODUCTS WITH RECYCLED CONTENT The City COuncil of the City of Dublin does ordain as follows: SECTION 1 Section 2.36.030 "Purchases by City_ Council - Competitive Bidding" Amend Section 2.36.030 of the Dublin Municipal Code with the following: a. Revise the first paragraph to read as follows: b. "When the amount or value involVed is at least twenty thousand dollars ($20,000), the purchase or disposal shall be made by the City Council through comPetitive bid as outlined below. Bids should be obtained from one or more vendors located within the City of Dublin whenever ~ possible." Revise subparagraph C to read as follows: "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." SECTION 2 Section 2.36.040 "Purchasing Award - Factors to be Considered" Amend Section 2.36.040 of the Dublin Municipal Code by adding a new subparagraph K containing the following provision in regards to the use of products with recycled content: "The purchase of products, 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 recycled products purchased by the City." SECTION 3 Section 2.36.050 "Exceptions to Competitive Bidding Requirements" Amend Section 2.36.050 of the Dublin Municipal Code with the following: a. Revise subparagraph A4 to read as follows: "When the amount involved is less than one thousand dollars ($1,000);" ATTACHMENT 2 b. Revise subparagraph B to read as follows: "When the procurement falls into any of the categories listed above, the Purchasing Agent may authorize contracts made by negotiation; provided, that the amount does not exceed twenty thousand dollars ($20,000). When the amount exceeds exceed twenty thousand dollars ($20,000), the action must be authorized by the City Council." SECTION 4 Section 2.36.060 "Purchases of less than five thousand dollars ($5,000) - Procedure" Amend Section 2.36.060 of the Dublin Municipal Code with the following: a. Change the title to read "Purchases of less than twenty thousand dollars ($20,000) - Procedure" b. Revise the paragraph to read as follows: "Where the amount or value involved is more than one thousand dollars ($1,000), but less than twenty thousand dollars ($20,000), the purchase or disposal may be made by the Purchasing Agent, without written bid, and by informal price checking through telephone or mail inquiry, comparison of prices on file or otherwise. Every attempt shall be made to receive at least three (3) price quotations. At the discretion of the Purchasing Agent, the acquisition of goods and services where the value is at least one thousand dollars ($1,000) but less than twenty thousand dollars ($20,000), the formal competitive bid process may be used." SECTION 5 Section 2.36.130 "Exceptions - Contracting for emergency cleanup of hazardous · materials" Amend Section 2.36.130 of the Dublin Municipal Code with the following: c. Revise the last sentence of the paragraph to read as follows: "Any such contract in the amount of twenty thousand dollars ($20,000) or under may be entered into on behalf of the City by the City Manager, or his or her designee, without prior City Council approval; however, no such contract exceeding twenty thousand dollars ($20,000) in amount shall be executed without prior approval of the City Council. SECTION 6 Postine and Effective Date This Ordinance shall take effect and be in force thirty (30) days from and after the date of its passage. 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 36933 of the Government Code of the State of California. APPROVED AS TO FORM City Attomey PASSED, APPROVED AND ADOPTED this 15th day of February 2000. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Mayor City Clerk