HomeMy WebLinkAboutItem 6.3 Amend Muni Code Purchasing (2) CITY OF DUBLIN
AGENDA STATEMENT
City Council Meeting Date: March 11, 1991
SUBJECT: Public Hearing: Amendment to Municipal Code Title 2
Chapter 36 (Purchasing)
(Report by Public Works Director Lee Thompson)
EXHIBITS ATTACHED: 1) Draft Ordinance
2) Existing Municipal Code Sections
RECOMMENDATION: 1) Open public hearing.
2) Receive Staff presentation and public testimony.
\ 3) Question Staff and the public.
4) Close public hearing and deliberate.
5) Waive reading and ADOPT ordinance amending
Municipal Code Title 2 Chapter 36.
FINANCIAL STATEMENT: None associated with amendment to ordinance.
DESCRIPTION: This is the second reading of a proposed amendment to
Dublin Municipal Code Title 2, Chapter 36 (Purchasing) . This amendment has
come about as a result of difficulties in obtaining a qualified janitorial
service on the basis of formal low bid as required by the existing Code.
Janitorial service does not presently fall within any of the categories of
exempt items. The annual cost for janitorial service, excluding window
washing and carpet cleaning, has been estimated in the range of $45,000 to
$60,000.
Prior to occupying the Civic Center, the City contracted for janitorial
service at the Shannon Center and Senior Center only. In 1989, formal bids
were taken for janitorial services for all three buildings, and the contract
was awarded to Black & White Janitorial Service. The quality of Black &
White's work was inadequate, and contractually required services were not
performed. Staff attempted to enforce the provisions of the contract, and
Black & White resigned in August of 1990.
The bid specifications and contract were modified and the contract was bid and
subsequently awarded to Shular's and Sons, who was unable to obtain the
required bonding. It was subsequently discovered that the three lowest
bidders were unable to meet the terms of the contract, and the fourth lowest
had just obtained another contract and did not have personnel available. The
bids were therefore rejected, the performance bond requirement lowered, and
the contract bid again. Only one bid was received, and the contract was
awarded to Golden Gate Janitorial Service in November of 1990. Golden Gate
was not successful in meeting the terms of the contract or in performing the
work specified and was given a 60-day termination notice in January.
Staff feels that one of the problems involved in obtaining quality janitorial
service is the requirement that the contract must be awarded to the low
bidder. It may be possible to work within the existing ordinance by
specifying certain qualifications such as years of experience in similar
situations; however, previous bidders have presented credible references and
have still not been able to do the work.
A situation that appears to occur in the low bid process is that a firm will
bid low to try to obtain the contract and then not be able to provide
sufficient personnel to do the required work for that price. Some of the more
"professional" janitorial firms have advised Staff that bidding on a contract
that is awarded strictly on the basis of low bid is a waste of time because
the work cannot be performed for a low price. With this proposed amendment to
the purchasing regulations, Staff hopes to be able to negotiate a contract for
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ITEM NO. COPIES TO: CU( O
janitorial services. The contractor would be provided with a scope of work,
the desired appearance of the facilities, and an approximate budget, and asked
to submit a proposal based on estimated manhours and hourly rates. When this
method is used, items of work can be added or deleted during the term of the
contract on the basis of known cost. This method also allows the City to
benefit from the contractor's expertise rather than dictating specific
schedules for performance of individual items.
Also included in this proposed amendment are sections which would allow the
same process to be used in contracting for other types of building maintenance
(where permitted by the Public Contracts Code) and for street maintenance and
street sweeping. It should be noted that the Public Contracts Code defines
certain types of work as "public projects" and requires such contracts to be
publicly bid when the estimated cost exceeds $5,000. Electrical and
mechanical work, for example, fall into the "public project" category.
These changes are encompassed within new subsections (7) , (8), and (9) on page
2 of the draft ordinance.
As is true of the existing purchasing regulations, the Purchasing Agent may
authorize contracts made by negotiation that are less than $5,000. When the
amount exceeds $5,000, such contracts must be authorized by the City Council.
The intent of this change is not to eliminate competition for City contracts,
but to allow Staff to negotiate with a potential contractor on the basis of
ability to perform the work as well as price, similar to the Request for
Proposal procedure which is used with architects and other professional
services.
An additional minor change to the purchasing regulations that is being
proposed at this time is to replace the words "Government Code" in Section
2.36.120 with the words "Public Contracts Code." The sections pertaining to
public bidding in the Government Code are now found in the Public Contracts
Code.
Staff recommends that the City Council conduct a public hearing, deliberate,
waive the reading, and ADOPT the Ordinance Amending Title 2, Chapter 36 of the
Dublin Municipal Code.
-2-
ORDINANCE NO. - 91
AN ORDINANCE OF THE CITY OF DUBLIN
AMENDING TITLE 2 , CHAPTER 36 OF THE DUBLIN MUNICIPAL CODE,
RELATING TO PURCHASING
THE CITY COUNCIL OF THE CITY OF DUBLIN DOES ORDAIN AS FOLLOWS:
Section 1.
Section 2 . 36. 050 of the Dublin Municipal Code is amended to
read as follows:
Section 2 . 36. 050. Exceptions to competitive bidding
requirements.
A. The provisions of this chapter requiring 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) ;
Page 1 of-3
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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 difficult 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 buildings and
facilities.
8. For maintenance and repair of buildings and
facilities.
9. For maintenance and repair of public streets,
including street sweeping.
B. 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 five
thousand dollars ($5, 000) . When the amount exceeds five thousand
dollars ($5, 000) , the action must be authorized 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.
Section 2.
Section 2 . 36. 120 of the Dublin Municipal Code is amended to
read as follows:
Page 2 of-3
Section 2 . 36. 120. Exceptions--public projects.
This chapter is expressly made inapplicable to bids for
public projects as defined by Public Contracts Code Section 20161
and where the expenditure required for the public project exceeds
the limit set by Public Contracts Code Section 20162 . The
provisions contained in Public Contracts Code Section 20161 et
sea. , establish contract procedures the city shall follow
regarding public projects. (Ord. 16-83 § 12)
section 3. Posting 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.
PASSED, APPROVED AND ADOPTED this day of
1991, by the following vote:
AYES:
NOES:
ABSENT:
Mayor
ATTEST:
City Clerk
114\ord\purchase.ehs
Page 3 of-3
2.36.040
D. The reputation and experience of 6. When a purchase involves goods of
the bidder; a technical nature,where it would be dif-
E. The previous experience of the city ficult for a vendor to bid on a standard set
with the bidder; of specifications, the Purchasing Agent
F. The previous and existing com- shall, undertake a thorough review of
pliance by the bidder with the laws and known products and a comparison of
ordinances; features which would most closely meet
G. The sufficiency of the financial the city's needs at the least cost.
resources and ability of the bidder to per- B. When the procurement falls into
form the contract or provide the service; any of the categories listed above, the
H. The quality, availability, and Purchasing Agent may authorize con-
adaptability of the supplies or contrac- tracts made by negotiation; provided,
tual services to the particular use
required; that the amount does not exceed five
I. The ability of the bidder to provide thousand dollars ($5,000). When the
future maintenance and service for the amount exceeds five thousand dollars
use of the subject of the contract; ($5,000), the action must be authorized
J. The number and scope of condi- by the City Council.
tions attached to the bid. (Ord. 16-83 §4) C. Any request for an exception
under this section shall include the
2.36.050 Exceptions to competitive nature of the contract, amount of the
bidding requirements. contract, and the reasons why com-
A. The provisions of this chapter petitive bidding is not feasible. (Ord.
requiring competitive bidding shall not 16-83 § 5)
apply to the following:
1. Contracts involving the acquisition 2,36.060 Purchases of less than five
of professional or specialized services, thousand dollars
such as, but not limited to, services ren-
dered by architects, attorneys, engineers, ($5,000)—Procedure.
Where the amount or value involved is
and other specialized consultants;
2. Where the city's requirements can more than two hundred dollars ($200),
be met solely by a single patented article but less than five thousand dollars
or process; ($5,000),the purchase or disposal maybe
3. To situations where no bids have made by the Purchasing Agent, without
been received following bid announce- written bid,and by informal price check-
ments under other provisions of this ing through telephone or mail inquiry,
chapter; comparison of prices on file or otherwise.
4. When the amount involved is less Every attempt shall be made to receive at
than two hundred dollars ($200); least three (3) price quotations. At the
5. When an emergency requires that discretion of the Purchasing Agent, the
an order be placed with the nearest acquisition of goods and services where
source of supply; the value is at least two hundred dollars
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t'44 1, I.I;I
BIT Z
2.36.060
($200)but less than five thousand dollars 2.36.100 Surplus supplies and
($5,000), the formal competitive bid equipment.
process may be used. (Ord. 16-83 § 6) At such times as determined by the
Purchasing Agent, reports shall be pre-
2.36.070 Purchase orders. pared showing all supplies and equip-
All purchases shall be documented by ment which are no longer used or which
a purchase order prepared by the Pur- have become obsolete or worn out. The
chasing Agent.The original copy shall be Purchasing Agent shall have the author-
directed to the vendor and one copy shall ity to sell, trade or exchange all said sup-
be retained for the purchase order file. plies and equipment. Such sales will be
The final copy shall be directed to the made pursuant to Section 2.36.030 or
department for whose benefit the pur- Section 2.36.060 of this chapter, which-
chase is being made to be used as a receiv- ever is applicable. (Ord. 16-83 § 10)
ing report. (Ord. 16-83 § 7)
2.36.110 Splitting orders prohibited.
It is unlawful to split or separate into
2.36.080 Availability of sufficient smaller orders the purchase of supplies,
funds.
No purchase order shall be issued until materials, equipment or services for the
it has been ascertained that there is to the purpose of evading the competitive bid-
ding provisions of this chapter. (Ord.
credit of the department of the city for 16-83 § 11)
whose benefit such purchase is to be
made, a sufficient unappropriated bal- 2.36.120 Exceptions—Public
ance in excess of all unpaid obligations to projects.
defray the amount of such order. (Ord. This chapter is expressly made inap-
16-83 § 8) plicable to bids for public projects as
defined by Government Code Section
2.36.090 Inspection and review. 37901 and where the expenditure
The Purchasing Agent shall require the required for the public project exceeds
inspection of supplies and equipment the limit set by Government Code Sec-
delivered, and contractual services per- tion 37902. The provisions contained in
formed, to determine their conformance Government Code Section 37901 et seq.,
with the specifications and requirements 114 establish contract procedures the city
set forth in the order or contract. (Ord. shall follow regarding public projects.
16-83 § 9) (Ord. 16-83 § 12)
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