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HomeMy WebLinkAboutOrd. 1490-2014 ORDINANCE NO. 1490-2014 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA AN ORDINANCE AMENDING CHAPTER 4.04 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE REVISING THE CITY PURCHASING PROCEDURES AND CONTRACT APPROVAL AUTHORITY WHEREAS, Article XI, Section 7 of the California Constitution provides that a city or county may make and enforce within its limits all local,police, sanitary, and other ordinances and regulations not in conflict with general laws; and WHEREAS, California Government Code Section 54202 provides that every local section shall adopt policies and procedures, including bidding regulations, governing purchases of supplies and equipment by the local agency; and WHEREAS, the City of South San Francisco ("City") has adopted purchasing policies and procedures, which is codified in Chapter 4.04 of the South San Francisco Municipal Code; and WHEREAS, the City, by appropriate legislative action, has elected to be subject to the public bidding procedures established in the Uniform Public Construction Cost Accounting Act; and WHEREAS, the City wishes to revise its purchasing system in order to ensure efficient procedures for the procurement of services, supplies and equipment at the lowest possible cost commensurate with the level of quality required, to exercise financial control over purchases, and to clearly define authority for the purchasing function. NOW THEREFORE, the City Council of the City of South San Francisco does hereby ordain as follows: SECTION 1. AMENDMENTS The City Council hereby amends the following sections of Chapter 4.04 of the South San Francisco Municipal Code to read as follows. Sections and subsections that are not amended by this Ordinance are not included below, and shall remain in full force and effect. 4.04.040 Agreements with other governmental agencies. (a) The department head may authorize in writing any other governmental agency to purchase or contract for specified supplies, services and equipment. He or she shall ensure that such purchases or contracts by other governmental agencies be made in conformance with the procedures established by state law. This authority includes the authority to act as lead agency when appropriate. (b) Except for public projects as defined by the Uniform Public Construction Cost Accounting Act, Sections 22000 et seq., of the Public Contract Code, City purchases may be made by taking advantage of valid contract terms that have been negotiated by another governmental agency, if that agency had used a quote or bid process that substantially conforms with the procedures established by state law and this chapter. In these cases, City staff shall verify and document such conformance. 4.04.070 Alternative bid procedures for public projects. Public projects, as defined by the Uniform Public Construction Cost Accounting Act, Sections 22000 et seq., of the Public Contract Code,may be let to contract alternative bidding procedures, in a manner consistent with the applicable dollar thresholds, as set forth in Section 22032 of the Public Contract Code, as maybe amended from time to time. 4.04.071 Contractors list. A list of contractors shall be developed and maintained, according to categories of work, and in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission. 4.04.072 Notice inviting informal bids. Where a public project is to be performed, and is eligible to utilize the informal bidding provisions of subsection (b) of Section 22032 of the Public Contract Code, as may be amended from time to time, the following procedures shall apply: (a) A notice inviting abbreviated bids shall be mailed or emailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with Section 4.04.071, and to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the Public Contract Code,unless the product or service is proprietary. Additional contractors and/or construction trade journals may be notified at the discretion of the department soliciting bids; provided however: (1) If there is no list of qualified contractors maintained by the City for the particular category of work performed, the notice inviting bids shall be sent only to the construction trade journals specified by the commission. (2) If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting abbreviated bids may be sent exclusively to such contractor or contractors. (c) All mailing of notices to contractors and construction trade journals pursuant to subdivision (a) shall be completed not less than 10 calendar days before bids are due. (d) The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids. (e) For public projects that are under seventy-five thousand dollars ($75,000) and have followed these informal bidding procedures, the City Manager may award the contract. (f) If all bids received are in excess of one hundred and seventy-five thousand dollars ($175,000), or the limits established by subsection (f) of Section 22034 of the Public Contract Code, whichever is higher, the City Council,by adoption of a resolution by a four-fifths vote, may award the contract, at no more than one hundred and eighty-seven thousand five hundred dollars ($187,500), or the limit established by subsection (f) of Section 22034 of the Public Contract Code, whichever is higher, to the lowest responsible bidder, if it determines the cost estimate was reasonable. 4.04.073 Formal bid procedures for major public projects. Contracts for public projects as defined by the Uniform Public Construction Cost Accounting Act, Sections 22000 et seq., of the Public Contract Code, in an amount exceeding the current limit as specified in subsection (c) of Section 22032 of the Public Contract Code, as may be amended from time to time, shall be accomplished using the formal bidding procedure described in this section. (a) Notice Inviting Bids. Notices inviting bids shall distinctly describe the project, shall state where bid blanks and specifications may be secured, and shall state the time and place for the receiving and opening of sealed bids. (1) Published Notice. Notice inviting bids shall be published at least fourteen calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the City. (2) Construction Trade Journals. The notice inviting formal bids shall also be mailed, and emailed to all construction trade journals, and posted on the City's website, or other website used for bidding on public projects, as specified by the California Uniform Construction Cost Accounting Commission in accordance with the requirements of Section 22036 of the Public Contract Code. (b) Bidder's Security. All bids presented in connection with the public project shall be accompanied by bidder's security in the form and amount prescribed by Public Contract Code Section 20170 et seq.,which security shall be dealt with as prescribed therein. In all cases bidders shall be entitled to return of bid security provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the City is responsible for the delay. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the City to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. (c) Bid Opening Procedure. Sealed bids shall be submitted to the department identified in the invitation for bid documents and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening. (d) Rejection of Bids or No Bids Received. In its discretion, the City Council may reject any and all bids presented and readvertise for bids. If no bids are received, the City Council may award the project by negotiated contract. (e) Award of Contracts. Contracts shall be awarded by the City Council to the lowest responsible bidder except as otherwise provided herein. (f) Tie Bids. If two or more bids received are for the same amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the City Council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders or may utilize a public drawing. (g) Performance Bonds. The department head shall have authority to require a performance bond before entering a contract in such amount as he finds reasonably necessary to protect the best interests of the City. If the department head requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. 4.04.080 Open market procedures for purchases and sales exclusive of public projects. (a) Purchases of supplies, services, equipment and the sale of personal property that do not fall under Sections 4.04.070 or 4.04.073 shall be by the open market procedures described in this section when the estimated value, exclusive of sales tax and freight, exceeds ten thousand dollars. Open market procedures may be dispensed with only when an emergency requires that an order be placed with the nearest available source of supply or when the commodity can be obtained from only one vendor. (b) The department head shall solicit open market quotes or bids as outlined below by written requests to prospective vendors,by telephone,mail, e-mail, or by public notice posted on a public bulletin board in the City hall, or posted on the City's website. (1) At least three quotes shall be obtained from vendors for all items not exceeding twenty-five thousand dollars, and shall be submitted to the department head who shall keep a record of all open market orders for a period of one year after the submission of bids or the placing of orders. Said record, while so kept, shall be open to public inspection. (2) At least three written bids shall be submitted to the department head for items over twenty-five thousand dollars except professional services. Department head shall keep a record of all open market bids for a period of one year after the submission of bids or the placing of orders. Said record, while so kept, shall be open to public inspection. (3) Purchases of professional,personal, or specialized services. (A) When entering into professional services,personal services, or specialized services contract, the skill, ability, and expertise of the entity or person performing the services is a key component of the selection criteria. The selection should therefore be on the basis of demonstrated competence, overall value to the City, and on the professional qualifications necessary for the satisfactory performance of the services required. Cost is only one factor in determining the selection. (B) In these cases, the department head shall solicit requests for proposals or requests for quotations to prospective vendors either by mail,by telephone, by e-mail, or by public notice posted on a public bulletin board in the City hall, or posted on the City's website. (C) Proposals or quotations shall be submitted to the department head who shall keep a record of all open market orders for a period of one year. Said record, while so kept, shall be open to public inspection. 4.04.090 Use of purchase orders. Purchases of supplies, services and equipment in the amount specified in the administrative rules and regulations may be made by purchase order. 4.04.095 Written contract required. (a) All purchases and contracts;exceeding twenty-five thousand dollars; for supplies, services, equipment and/or the sale of personal property, including,but not limited to those contracts associated with a public project as defined by the Uniform Public Construction Cost Accounting Act, Sections 22000 et seq., of the Public Contract Code, shall be by written contract with; (1) The lowest responsible bidder or lowest responsive proposer; (2) In the case of sales by the City, the highest responsible bidder or highest responsive proposer; or (3) In the case of professional, specialized, or personal services contracts,based on the criteria established in Section 4.04.080(b)(3)(A). Such purchases and contracts shall be pursuant to the procedures set forth in this chapter. (b) All written contracts regardless of amount shall be reviewed by the City Attorney's office. 4.04.096 Dollar limits for approvals. (a) Purchases of supplies, services,public projects, and equipment, or any combination thereof, and the sales of personal property shall be approved by: (1) The City Manager, or his or her designee, if such purchases or sales do not exceed seventy-five thousand dollars ($75,000), and provided that adequate funds are budgeted. (2) The City Council, if such purchases or sales exceed seventy-five thousand dollars ($75,000), and provided that adequate funds are budgeted. (b) Unless stated otherwise, all written contracts shall be executed by the City Manager, or his or her designee. All contracts exceeding seventy-five thousand dollars ($75,000) shall be also approved by the City Council. (c) All real property acquisitions or real property lease contracts with a term of three years or more, regardless of amount, shall be approved by the City Council. (d) The City Council can delegate the authority described in this section, with the exception of subsection (c), to the City Manager. 4.04.130 Surplus supplies and equipment. The City Manager shall adopt reasonable rules and regulations regarding disposition of surplus supplies and equipment 4.04.140 Regulations to implement this Chapter. The City Manager or his or her designee is authorized to, and may establish rules, regulations, guidelines and policies for implementing and enforcing this Chapter. SECTION 2. SEVERABILITY. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of this Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION 3. PUBLICATION AND EFFECTIVE DATE. Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk's Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk's Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. This Ordinance shall become effective thirty (30) days from and after its adoption. * * * * * * * Introduced at a regular meeting of the City Council of the City of South San Francisco, held the 10th day of September, 2014. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the 24th day of September, 2014 by the following vote: AYES: Councilmembers Mark N. Addiego, Pradeep Gupta, and Liza Normandy Vice Mayor Richard A. Garbarino and Mayor Karyl Matsumoto NOES: None ABSTAIN: None ABSENT: None 4 TTE�4 ./_44 / - .� to Mart' , City if As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this 24th day of September, 2014. ,t,1 Ma ..moto, Mayor