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Home My WebLink About6.2 AmendMuniCodePurchasing CITY OF DUBLIN AGENDA STATEMENT City Council Meeting Date: February 25, 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) (\ / l,' 2 ) \1- 3) 4) 5) Open public hearing. Receive Staff presentation and public testimony. Question Staff and the public. Close public hearing and deliberate. Waive reading and INTRODUCE ordinance amending Municipal Code Title 2 Chapter 36. FINANCIAL STATEMENT: None associated with amendment to ordinance. DESCRIPTION: This proposed amendment to Dublin Municipal Code Title 2, Chapter 36 (Purchasing) has come about as a result of difficulties in obtaining a qualified janitorial service. The existing Code requires that the formal competitive bid process be used for purchases or services with a cost in excess of $5,000. Janitorial service does not fall within any of the present 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 negotiate a contract for ---------------------------------------------------------------------------- ITEM NO.~ COPIES TO: 0;.¿:hJ L~/o-20 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 INTRODUCE 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 biddinq 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 ~'\.Ø~i1~~T· 1 ~ 'if ~Ii·l~ . ;~,~:i."}. ¡'; f ;.. ž7 ~ ft -"!:" -,.( eJ., ¥; "'_:Þ; .....) ~'., r.r'!4~.:,... G ~ ~' .& ~,~;); _-.--~-- I/e.AFI 0 (2D¡ ù ~0 cE"" 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 proiects. 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 ~, establish contract procedures the city shall follow regarding public projects. (Ord. 16-83 § 12) section 3. postinq 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 D. The reputation and experience of the bidder; E. The previous experience of the city with the bidder; F. The previous and existing com- pliance by the bidder with the laws and ordinances; G. The sufficiency of the financial resources and ability of the bidder to per- form the contract or provide the service; H. The quality, availability, and adaptability of the supplies or contrac- tual services to the particular use required; 1. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract; J. The number and scope of condi- tions attached to the bid. (Ord. 16-83 § 4) 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 ren- dered by architects, attorneys, engineers. and other specialized consultants: 2. \Vhere the city's requirements C:1n be met solely by a single patented article ~ 236.050 or process: 3. To situations where no bids have been received following bid announce- ments 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; 2.36.040 6. When a purchase involves goods of a technical nature, where it would be dif- ficult 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. B. When the procurement falls into any of the categories listed above, the Purchasing Agent may authorize con- tracts 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 com- petitive bidding is not feasible. (Ord. 16-83 § 5) 2.36.060 Purchases of less than five thousand dollars (S5,000)-Procedure. \Vhere the amount or value involved is more than two hundred dollars (S200), but less than five thousand dollars (55.000), the purchase or disposal may be made by the Purchasing Agent, without written bid. and by informal price check- ing 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 two hundred dollars 37 rV~'J~~~r ~ ¡. ~,~~~~~ ~ r; ~~..,.'~ S §~ ~<~ ~~ f.~ _~~...__ Ex.. \ ~ l Ù G M lÚ.J I Q PAL o.Jt::£ S£.C.- . 2.36.060 ($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 Pur- chasing Agent. The original copy shall be directed to the vendor and one copy shall be retained for the purchase order file. The final copy shall be directed to the department for whose benefit the pur- chase is being made to be used as a receiv- ing report. (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 bal- ance in excess 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 delivered, and contractual services per- fonned. to detennine their confonnance with the specifications 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 Purchasing Agent, reports shall be pre- pared showing all supplies and equip- ment which are no longer used or which have become obsolete or worn out. The Purchasing Agent shall have the author- ity to sell, trade or exchange all said sup- plies and equipment. Such sales will be made pursuant to Section 2.36.030 or Section 2.36.060 of this chapter, which- ever 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 bid- ding provisions of this chapter. (Ord. 16-83 § 11) 2.36.120 Exceptions-Public projects. This chapter is expressly made inap- plicable to bids for public projects as ¿- defined by Government Code Section 37901 and where the expenditure required for the public project exceeds _// the limit set by Government Code Sec- ¡:. tion 37902. The provisions contained in Government Code Section 37901 et seq., )'! establish contract procedures the city shall follow regarding public projects. (Ord. 16-83 § 12) 38