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HomeMy WebLinkAbout918444 ORDINANCE NO. 918 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH, ADDING A NEW ARTICLE 5 TO CHAPTER 6, DIVISION 1 OF THE UKIAH CITY CODE, REGULATING LEASE-PURCHASING, AND AMENDING SECTION 1522 OF THE CODE, REGULATING OPEN MARKET PURCHASING AND CONTRACTUAL SERVICES The City Council of the City of Ukiah hereby ordains as fol- 1 ows. SECTION ONE. A new Article 5 is added to Chapter 6, Division 1 of the Ukiah City Code to provide as follows: ARTICLE 5 - LEASE-PURCHASING Section 1550 - Lease-purchasing At any regular meeting the City Council shall approve by resolution all lease-purchase agreements. No special notice shall be required of any meeting at which the City Council will consider a resolution approving a lease-purchase agreement. a. "Lease-purchase agreement," as used in this section, means an agreement in which a lessor provides equipment or facilities to the City or the funds to purchase equipment and facilities and the City leases the equipment or facilities from the lessor for regular payments over a definite term at the end of which title to the equipment or facilities is conveyed to the City. Under these arrangements the lessor may or may not issue certificates of participation or assign the lease. Lease- purchase agreement does not include a public leaseback, the ap- proval of which is subject to Government Code section 54240 et seq., as it now reads or may be amended. b. "Public leaseback" means any lease, sublease, contract or other agreement involving land or buildings, structures, or other facilities which are permanently attached to land, where the agreement is made directly or indirectly between the City and a public lease back corporation, if the proceeds of the agreement provided by the local agency will be used in whole or in part by such public leaseback corporation for payment of principal of or interest on its bonds,, notes or other evidences of indebtedness. SECTION TWO. Section 1522 of the Ukiah City Code is hereby amended to read as follows. 1522 - Open Market and Contractual Services Procedure 1. Purchases within the authority of the Purchasing Officer. Rentals or purchases of supplies, equipment or contractual serv- ices of an estimated value of $10,000 or less may be made by the Purchasing Officer in the open market by using the procedure set forth in this section. a. Rental or purchases of $1,000 or less. The Purchas- ing Officer shall have authority to issue a purchase order or enter a contract, including a rental agreement for supplies, equipment or contractual services costing $1,000 or less without a written solicitation of formal bids, if the purchase is in- cluded within an approved fund account and an unencumbered ap- propriation exists in the fund against which the purchase may be charged. Whenever possible, the Purchasing Officer shall solicit at least three quotes by telephone. Supplies and equipment shall be rented or purchased and contractual services shall be pur- chased from the least expensive source, if the Purchasing Officer is satisfied that all sources are equally qualified and suited to the City's needs. The Purchasing Officer shall maintain a per- manent public record for a period of one year of the quotes sought and received, the bid selected and the reason for the selection. b. Rental or purchase of supplies and equipment cost- ing more than $1,000 but less than $5,000. The Purchasing Of- ficer may rent or purchase supplies and equipment costing more than $1,000 but less than $5,000, if the purchase is included within an approved fund account and an unencumbered appropriation exists in the fund against which the purchase may be charged, using the following procedures. 1. Minimum Number of Bids. Open market purchases shall, wherever possible, be based on at least three bids. 2. Notice Inviting Bids. The Purchasing Officer shall solicit bids by written requests to prospective vendors and/or by telephone. 3. Written or Telephonic Bids. Written bids shall be submitted to the Purchasing Officer by personal delivery, telefacimile ("FAX"), by mail or other means. The Pur- chasing Officer shall not disclose the contents of any bid, whether submitted by phone, FAX, mail or other means, until the time appointed to open or consider all submitted bids. 4. Award of Bid. Supplies and equipment shall be rented or purchased from the least expensive source, if the Pur- chasing Officer is satisfied that all sources are equally qualified and suited to the City's needs. The Purchasing Officer shall maintain a permanent public record for a period of one year of the quotes sought and received, the bid selected and the reason for the selection. c. Rental or purchase of supplies and equipment cost- ing between $5,000 and $10,000. The Purchasing Officer may rent or purchase supplies and equipment costing between $5,000 and $10,000 in accordance with the provisions of subsection b; provided, that by the close of the City Council agenda for the next regularly scheduled City Council meeting, the Purchasing Officer shall file a report with the City Council setting forth a description of the items pur- chased, the bids received, and the reason for the selection made. 2. Rental or purchase of supplies and equipment requiring prior City Council approval. The rental or purchase of supplies and equipment costing more than $10,000 must be approved in advance by the City Coun- cil. Purchases of supplies and equipment costing more than $10,000 shall be awarded in accordance with the procedures specified in subsection b or as authorized in sections 1521, 1540 and Public Contracts Code section 22032, as amended, or any suc- cessor provision of state law. 3. Contracts for service. Contracts for services shall be classified as public works contracts and personal services contracts. "Public works contract" means a contract for maintenance, repair, construction or improvement of real or personal property, involving the use of labor and skilled trades, and which may, but need not, include the cost of materials and equipment in the con- tract price. Public works contract does not include construction project management services provided by a licensed architect, registered engineer, or licensed general contractor provided to the City under a separate agreement pertaining solely to the provision of such services. "Personal services contract" means a contract for profes- sional services, such as accounting, architectural, engineering, legal, personnel, administrative, environmental, construction management, computer programming or similar services, and in which the provision of materials is incidental to the provision of professional services and comprises less than 10% of the con- tract pr ice. 445 446 (a) Public works contracts. (1) Contracts within the authority of the Pur- chasing Officer. The Purchasing Officer shall have authority to enter a public works contract costing more than $1,000 but no more than $10,000, including labor, equipment, materials, over- head and profit, if the work is included within an approved fund account and an unencumbered appropriation exists in the fund against which the purchase may be charged. The Purchasing Of- ficer may only enter such contracts using the following proce- dures. i. Minimum number of bids. Whenever pos- sible, the Purchasing Officer will award the contract based on at least three bids. ii. Notice Inviting Bids. The Purchasing Officer shall solicit bids by written request and/or by telephone with written confirmation to follow within three working days, which notice shall include such specifications and bidding re- quirements as the Purchasing Officer determines are appropriate to the work and as are required by law. iii. Written bids. Sealed written bids or bids submitted by FAX shall be submitted to the Purchasing Of- ficer. The Purchasing Officer shall not disclose the contents of any bids submitted by sealed bid, FAX or solicited by telephone until the time appointed to open or consider all submitted bids. iv. Award of bids. Supplies and equipment shall be rented or purchased from the least expensive source, if the Purchasing Officer is satisfied that all sources are equally qualified and suited to the City's needs. The Purchasing Officer shall maintain a permanent record for a period of one year of the quotes sought and received, the bid selected and the reason for the selection. v. Public works contracts over $5,000. By the close of the agenda for the next regularly scheduled City Council meeting, occurring after the Purchasing Officer enters a public works contract costing more than $5,000, the Purchasing Officer shall file a report with the City Council setting forth a description of the contract, the bids received, and the reason for the selection. (2) Public works contracts requiring prior ap- proval of the City Council. The City Council must approve all public works contracts costing more than $10,000. All such con- tracts shall be awarded in accordance with the procedures. authorized in subsection (a) or as authorized in sections 1521, 1540 and Public Contracts Code section 22032, as amended, or any successor provision of state law. (b) Personal service contracts. (1) Personal services contracts within the authority of the Purchasing Officer. The Purchasing Officer shall have authority to enter a personal services contract cost- ing more than $1,000 but no more than $10,000, if the work is included within an approved fund account and an unencumbered ap- propriation exists in the fund against which the purchase may be charged. The Purchasing Officer may only enter such contracts using the following procedures. i. Minimum number of bids. Whenever pos- sible, the Purchasing Officer will award the contract based on at least three proposals, and shall award the contract on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services re- quired. To the extent permitted by law, including, but not limited to, Government Code section 4526, the Purchasing Officer shall consider cost as one factor in awarding the contract. ii. Notice Inviting Bids. The Purchasing Officer shall solicit proposals by written request for proposal (RFP), which shall include such specifications and requirements as the Purchasing Officer determines are appropriate to the work and as are required by law. Announcements of RFPs may, but need not, be placed in appropriate professional publications. RFPs shall be sent to the largest number of qualified professionals practical in the judgment of the Purchasing Officer. The Pur- chasing Officer shall include as many small business firms as identified by the Director of General Services of the State of California pursuant to Government Code section 14837 as the Pur- chasing Officer determines is practical. The Purchasing Officer and his or her designees shall not engage in any practice which might result in unlawful or unfair treatment in processing proposals and awarding contracts, including, but not limited to, rebates, kickbacks, bribes or other unlawful consideration. No City officer or employee shall participate in the selection process when those officers or employees have a relationship with a person or business entity seeking a contract under this subsec- tion which would subject those officers or employees to the prohibition of Government Code section 87100. 447 iii. Written proposals. Written proposals shall be submitted to the Purchasing Officer who shall keep a public record of all such proposals for a period of one year after their submission. The contract shall be awarded based on the proposal, such personal interviews as the Purchasing Officer deems appropriate, and the criteria set forth in subsection ii. iv. Personal services contracts over $5,000. By the close of the agenda for the next regularly scheduled City Council meeting, occurring after the Purchasing Officer enters a personal services contract costing more than $5,000, the Pur- chasing Officer shall file a report with the City Council setting forth a description of the contract, the proposals received, and the reason for the selection. (2) Personal services contracts requiring prior City Council approval. The City Council must approve all personal services contracts costing more than $10,000. All such contracts shall be awarded in accordance with the procedures set forth in subsection (2) (a). 4. Procedure if bids exceed estimate. Except as may be otherwise required by law, if all bids received for particular items of supplies, equipment or contrac- tual services are in excess of the dollar limits specified herein for the procedures used to solicit those bids, the Purchasing Of- ficer may nevertheless issue a purchase order or enter a con- tract, if the invoice or contract does not exceed the prescribed limit by more than 10%. SECTION THREE. This Ordinance shall be published as required by law and shall become effective 30 days after its adoption. Introduced by title only on March 20 following roll call vote: , 1991, by the AYES: Councilmembers McMichael, Wattenburger, Shoemaker, Schneiter and Mayor Henderson NOES: None ABSENT: None vote: Adopted on April 3 , 1991, by the following roll call AYES: Councilmembers McMichael, Wattenburger, Shoemaker, Schneiter and Mayor Henderson NOES: None ABSENT: None ~'it~e-r~ ~