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HomeMy WebLinkAbout1086 bidding proceduresORDI'NANCE NO. 1086 ORDI'NANCE OF THE CITY COUNCI'L OF THE CITY OF UKZAH AI~IENDI'NG SECTTONS 1521 AND 1522 OF THE UKZAH CITY CODE, CONCERNI'NG BI'DDI'NG PROCEDURES AND OPEN MARKET PURCHASES The City Council of the City of Ukiah hereby ordains as follows: SECTION ONE. Sections 1521 and 1522 in Division 1, Chapter 6, Article 2 of the Ukiah City Code are hereby amended to read as follows. §1521: FORI~tAL CONTRACT PROCEDURE: When formal public bidding to the lowest responsive and responsible bidder is required by this Code or applicable state law, the City shall invite bids and award contracts using the procedures specified in this Code or applicable state law, including procedures adopted by resolution of the City Council. In any conflict or inconsistency between the provisions of this Code and state law, the state law provision shall prevail: A. Notice Inviting Bids: Notices inviting bids shall include a general description of the articles to be purchased or services to be rendered and shall state where bid blanks, specifications and plans (if applicable) may be secured, and the time and place for opening bids, all in accordance with policies adopted by the City Council. 1. Published Notice: Notices inviting bids shall be published and distributed within the time and in the manner provided by this Code or state law. 2. Bidders' List: The Purchasing Officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on bidders' lists compiled as required by Section 1522.D.2. B. Bidder's Security: When so required by state law bid and payment bonds shall be required. When deemed necessary by the Purchasing Officer, performance bonds may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within the time required in the Notice Inviting bids and in accordance with applicable provisions in the Public Contracts Code. C. Bid Opening Procedure: Sealed bids shall be submitted to a city official designated in the notice inviting bids and shall be identified as "bids" on the envelope. 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 opening. D. Lowest Responsible Bidder: Unless bids are rejected as allowed by law, the contracts shall be awarded to the lowest responsible bidder submitting a responsive bid. Bidders in Default to City: The agent shall not accept the bid of a contractor or supplier who is in default on the payment of taxes, licenses or other monies due the City. §1522: OPEN MARKET, INFORMAL BIDDING AND CONTRACTUAL SERVICES PROCEDURE: A. Definitions: When used in this Section, the following terms shall have the following meaning, unless another meaning is expressly stated when the term is used. "Contract for supplies and equipment" means a contract for the purchase or rental of supplies and equipment, where the only service provided directly to the City involves the delivery and/or installation of the supplies or equipment, is incidental to the purchase, and where the value of the services provided under the contract is less than 20% of the total contract price. "Costing" as used in such phrases as "costing the City" or "costing more than" means the total cost to the City, including, but not limited to, applicable sales tax and shipping costs. The amount may be estimated before bids are received. Tf a bid is received for not more than 10% more than the estimated amount, the procurement method specified for the estimated amount may be followed. "Local vendor" means a business with a physical business address in Mendocino County at which location the owner and/or employees are regularly employed and with a currently effective business license issued by the city in which it is located or, if located in the unincorporated area, by Mendocino County. "Maintenance" shall have the meaning provided in' Public Contracts Code Section 22002(d), as it currently reads or as it may be amended to read. "Open market purchase" means a purchase made without a prior written solicitation of formal bids. In making open market purchases, the Purchasing Officer is encouraged to take advantage of modern communications to obtain the lowest possible price, consistent with the City's needs, including, but not limited to, the use of the telephone, the internet and email, and to use all reasonable means to solicit quotes or proposals from local vendors. The Purchasing Officer shall maintain a permanent public record for a period of five years from the date of purchase of each open market purchase, including the method used to obtain information from vendors, the quotes sought and received, the bid selected and the reason for the selection. "Personal Services Contract" means a contract for professional or other services that does not involve the building or construction trades, but does include construction management, engineering, architectural and similar construction design or inspection services. "Public Project" has the meaning provided in Public Contracts Code Section 22002(c)-(d), as it currently reads, and as it may be amended from time to time. B. Purchases of supplies and equipment: :1.. Supply and equipment contracts under $~.0,000. Open market purchases may be used for contracts for the purchase of supplies and equipment costing $10,000 or less, 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. Purchases costing more than $5000 shall be reported to the City Council at its next regular meeting following the purchase. The report shall include the information described in the definition of "open market purchase." 2. Supply and equipment contracts over $10,000. Contracts for the purchase of supplies and equipment costing more than $10,000 shall be procured using the following procedures. a. Minimum Number of Bids: Whenever reasonably feasible, the Purchasing Officer will award the contract based on at least three (3) bids. b. Notice ]:nviting Bids: The Purchasing Officer shall solicit bids by written request, including the use of email or fax, and/or by telephone with written confirmation to follow within three (3) working days, which notice shall include such specifications and bidding requirements as the Purchasing Officer determines are appropriate to the work, and as are required by law. The Purchasing Officer shall make reasonable efforts to solicit bids from local vendors. c. Written Bids: Sealed written bids or bids submitted by email or FAX shall be submitted to the Purchasing Officer. The Purchasing Officer shall not disclose the contents of any bids submitted by sealed bid, fax, email, or telephone, followed by timely written confirmation, until the time appointed to open or consider all submitted bids. d. 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 and the products offered are of equal quality and suited to the City's needs. The Purchasing Officer shall maintain a permanent record for a period of five years of the quotes sought and receiVed, the bid selected and the reason for the selection. The City Council must award the bid based on the recommendation of the Purchasing Officer. 3. Cooperative purchases. The Purchasing Officer may purchase supplies and equipment through a consolidated supply contract or other cooperative purchasing arrangement with another governmental agency, if available to the City and if the Purchasing Officer determines that the procurement method used by that agency provides a purchasing advantage to the City. C. Other Contracts. 1. Public Projects Contracts. a. Contracts for public projects shall be procured in accordance with the California Uniform Public Construction Cost Accounting Act (Public Contracts Code Sections 22000 et seq.), as it now reads and as it may be amended from time to time. b. Contracts for public projects costing $30,000 or less or such other amount as may be periodically established by the California Uniform Construction Cost Accounting Commission pursuant to Public Contracts Code Section 22020 shall be procured by open market purchase. c. Contracts to be performed for a City owned public utility, such as the City's electrical system, which are not public projects or subject to subsections C. 2 and C.3, below, shall be procured in accordance with procedures adopted by the Public Utilities Department and approved by City Council resolution from time to time. Tn the absence of a resolution, the Public Utilities Department may use the procedures specified in subsections C.l.a and C.l.b, above. 2. Maintenance contracts. a. Open market purchases may be used for maintenance contracts costing $10,000 or less, 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. Maintenance contracts costing more than $5000 shall be reported to the City Council at its next regular meeting following the purchase. The report shall include the information described in the definition of "open market purchase." b. Maintenance contracts costing more than $10,000 shall be procured using the following procedures. i. Minimum Number of Bids: Whenever reasonably feasible, the Purchasing Officer will award the contract based on at least three (3) bids. ii. Notice ]:nviting Bids: The Purchasing Officer shall solicit bids by written request, including the use of email or fax, and/or by telephone with written confirmation to follow within three (3) working days, which notice shall include such specifications and bidding requirements as the Purchasing Officer determines are appropriate to the work, and as are required by law. The Purchasing Officer shall make reasonable efforts to solicit bids from local contractors. iii. Written Bids: Sealed written bids or bids submitted by email or fax shall be submitted to the Purchasing Officer. The Purchasing Officer shall not disclose the contents of any bids submitted by sealed bid, fax, email or telephone, followed by timely written confirmation, until the time appointed to open or consider all submitted bids. iv. Award of Bids: The maintenance contract shall be awarded to the least expensive bidder, if the Purchasing Officer is satisfied that all bids are equally qualified and suited to the City's needs. The Purchasing Officer shall maintain a permanent record for a period of five years of the quotes sought and received, the bid selected and the reason for the selection. The Purchasing Officer shall present the recommended bid to the City Council for award. 3. Personal Services Contracts. a. Open market purchases may be used for personal services contracts costing $10,000 or less, 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. Personal services contracts costing more than $5000 shall be reported to the City Council at its next regular meeting following the purchase. The report shall include the information described in the definition of "open market purchase." b. Personal services contracts costing more than $10,000 shall be awarded using the following procedures i. Minimum Number of Bids: Whenever reasonably feasible, the Purchasing Officer will award the contract based on at least three (3) 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 required. 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 :[nviting 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 Purchasing 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 Purchasing Officer determines is practical. The Purchasing Officer shall use reasonable efforts to solicit proposals from local vendors. 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 subsection which would subject those officers or employees to the prohibition of Government Code section 87100. 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 five years after their submission. The contract shall be awarded by the City Council based on the proposal, such personal interviews as the Purchasing Officer deems appropriate, the criteria set forth in subsection (2), and the recommendation of the Purchasing Officer. D. Miscellaneous 1. Any dollar limits specified herein, except for the limit in subsection C.l.b, may be revised by a resolution of the City Council based on changes in the cost of living or the cost of goods or services available to the City. 2. ProCurement of goods or services not specifically addressed in this section may be purchased by open market purchase, unless a different method is required by state statute or regulation or another provision of this Code. 3. When soliciting bids or proposals, the Purchasing Officer shall use all practically available means to solicit such bids and proposals from as large a pool of qualified sources as possible. To aid in accomplishing this goal, the Purchasing Officer shall solicit proposals from qualified bidders who appear on any list of bidders maintained by the City. The Purchasing Officer shall develop specialized bidders' lists for each type of contract described in this Section 1522, including contracts for equipment and supplies, public projects, personal service and maintenance services. The Purchasing Officer shall notify potential suppliers or contractors who contact the City of the opportunity to be listed on bidders' lists, including through the City's website. SEC'I/ON TWO. 1. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council hereby declares that it would have adopted this Ordinance and any section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional or otherwise invalid. 2. EFFECTIVE DATE. This Ordinance shall be published as required by law in a newspaper of general circulation in the City of Ukiah, and shall become effective thirty (30) days after its adoption. Introduced by title only on August 16, 2006, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Councilmember Crane, McCowen, Baldwin and Mayor Ashiku None Councilmember Rodin None Adopted on October 18, 2006 by the following roll call vote: AYES: NOES: ABSENT: ABSTA]~N: Councilmember Crane, McCowen, Rodin, Baldwin and Mayor Ashiku None None None lv~ Ashiku, Mayor Al-rEST: Gail Petersen, City Clerk