HomeMy WebLinkAbout1982-04-06; City Council; 6955; Amendments and Additions to Purchasing Codez
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CIT~F CARLSBAD -AGENDftlLL
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DEPT. PCH.
RECOMMENDED ACTION:
Amendments and Additions to the
Purchasing Sections of the Carlsbad
Municipal Code CITYMG ~
Staff recolTlllends the Carlsbad Municipal Code be amended to include the
revision of certain purchasing procedures. Council should introduce
Ordinance No. _L~l/'i for its first reading.
ITEM"EXPLANATION:
The City of Carlsbad adopted a Purchasing Ordinance in October 1966.
Subsequently, it was revised in December 1976. A careful review of
the City's ordinance and a study ofother agencies' purchasing
ordinances has been undertaken.
The significant changes that are proposed include: (1) raising the
limits for formal bidding from $5,000 to $10,000, (2) increasing th'
limits from $250 to $500 before quotations are required, (3) waivind
the bidding requirements when an item is required to be compatible or
match an item presently on hand, (4) a new section for Professional
Services and (5) authorizing the City Manager to award contracts up
to $25,000 -when projects are financed from deposits held in trust by
the city.
These recolTlllended amendments and additions to the Carlsbad Municipal
Code will bring it up••to-dc!t.e with current and acceptable purchasing
procedures. ·
FISCAL IMPACT:
There wi 11 be no direct cost to the City. ··However, the City wi 11
realize a savings in the legal advertising for fonnal bids.
-EXHIBITS:
1. Su1T10ary of Proposed Amendments and Additions
2. Ordinance No. ~---2-
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TO:
FROM:
SUBJECT:
MEMO RA N_D UM
January 15, 1982
ASSISTANT CITY MANAGER ADMINISTRATION
PURCHASING OFFICER
AMENDMENTS AND ADDITIONS TO THE PURCHASING
SECTION OF THE CARLSBAD MUNICIPAL CODE
-6ne of the goals of the Purchasing Department this year is to
review and revise the present purchasing ordinance and bring it
up-to-date with current and accepted purchasing practices.
During the past three months a careful review of the City's
ordinance has been made. in addition to reviewing the City's
ordinance-, a study of other agencies purchasing ordinance: and
the model procurement code for state and local government was
undertaken. The recommended amendments and additions to the
Carlsbad Municipal Code are considered necessary for the City
to have a viable and comprehensive purchasing policy.
There are four sections of the present ordinance where major
amendments should be made. One involves the exceptions to the
bidding procedures, another deals with formal bidding procedures,
including the award of contracts, and the other involves
competitive negotiations. A summary of the recommendations for
the major additions and amendments is discussed below.
Section 3.28.090 -BIDDING
Thi~ section outlines the circumstances when bidding procedures
may be dispensed with. The present ordinance waives the bidding
requirement when an item costs less than $250. This amount was
established in 1976 and now it is recommended that the limit be
raised to $500. Several cities in San Diego County have
increased the dollar amount to either $500 or $1,000 before
quotations are received. The purchasing officers in these cities
have indicated they have experienced no problem and they have cut
the ordering time from ten to fourteen days to two to three days.
Also by increasing the dollar amount to $500 more time can be
given to the higher cost items where the potential for savings is
greater.
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January 15, 1982 Page 2
In addition to wa1v1ng the bidding requirements for items
costing less than $500, there is one other addition to the
exceptions to the bidding procedures that should be made. This
is when a cowmodity is required to match or to be compatible
wi~h other furnishings, materials or equipment that is presently
on hand and is to be purchased from a vendor of such on hand
commodities. Examples of this exception would be if the City
wanted to match carpeting, drapes or furniture or if an addition
·to the computer needed to be purchased. This provision will
allow the City to purchase these items without having to develop
technical specifications or having to go through the formal
bidding process before the contract award is made. If the
bidding requirement were waived for items that need to be com-
patible, it is estimated that 4 to 8 weeks could be saved in the
procurement process.
·Section 3.28.120 -FORMAL BIDDING PROCEDURES
The present ordinance requires formal bidding procedures be used when
purchasing supplies, services and equipment costing $5,000 or more.
Th~s •mount was establiihed five years ago and has become some~hat
restrictive particularly in the area of professional servies. It is
recommended the amount be raised from $5,000 to $10,000. If the
formal bidding amount were raised to $10,000, the open market
procedure would be used for purchasing supplies, services and equip-
ment costing less than $10;000. The change in the City's formal
bidding procedures would not affect Public Works Contracts since they
are a part of the California Government Code.
Approximately three weeks time could be saved by using the open
market procedure for purchasing supplies, services and equipment
costing less than $10,000. In addition, to the ten days saved by not
advertising, there would be time saved in the preparation and review
of the agenda bill that would be necessary to go to Council for the
actual bid award. By using the open market procedure, the City
Manager would have the authority to execute all contracts for the
purchase of supplies, services and equipment in a~ estimated amount
of less than $10,000.
Section 3.28,140 -COMPETITIVE NEGOTIATIONS
This section became a part of the Carlsbad Municipal Code in
1976 and has proven to be somewhat restrictive for the section
dealing with professional services, In order to overcome the
present constraints of this section, the proposed amendment will
separate the purchase of highly technical supplies and equipment
from the purchase of professional services, Highly technical
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January 15, 1982 Page 3
supplies and equipment will continue to be purchased by the use
of competitive negotiations. The purchase of such oupplies or
equipment requires negotiation of contractual provisions,
performance requirements and cost. Even though the Purchasing
Officer can authorize purchases by competitive negotiations, the
City Council will award the contract for purchases by
competitive negotiations when the amount is $10,000 or more.
A new section will be added that will be entitled "Professional
Services." Many times these services can not be precisely
sp~cified and therefore they do not lend themselves to the
formal biddlng procedure. A fair and equitable method of
sel·ection has been developed when the services of specialized
professionals are required. Proposals will be requested for
professional services and the selection will be based upon
analysis of demonstrated competence, professional qualifications
necessary for satisfactory performance and the cost for the
required service.
Sect-ion 3 •. 28 .1 70 -:-AWARD AND EXECUTION OF CONTRACTS
Under the present ordinance, except in emergency situations, all
contracts f9r supplies, services and equipment costing five thou-
sand dollars or more, are awarded by the City Council. Contracts
for less than five thousand dollars can be executed by the City
Manager. ·From time to time, the City acts as an agent for other
public or private agencies, collecting and disp~nsing funds for
special studies or projects from these agencies. In order to cut
down on the time necessary to go to Council for the contract award
for these special studies, it is proposed an exception to the bid
award section be added that would allow the City Manager to award
contracts up to $25 1 000 when the project is financed from deposits
held in trust by the City.
When these recommended amendments and additions have been made,
the City of Carlsbad will have a comprehensive ordinance for its
purchasing program.
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ORDINANCE NO. 1249
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CAL~FORNIA, AMENDING
TITLE 3, CHAPTER 3.28 OF THE CARLSBAD
MUNICIPAL CODE BY THE AMENDMENT OF VARIOUS
SECTIONS TO REVISE THE CITY PURCHASING
PROCEDURES, .
The City Council of the City of Carlsbad, California,
does ordain as follows:
SECTION: 1: That Title 3, Chapter 3.28 of the Carlsbad
Muntcipal Code is amended by the A'niendment of Section 3.28.090
to read as follows:
3.28.090 Bidding. Purchases of supplies, services and
equipment shall be by bid ~rocedures pursuant to the Chapter.
Bidding may be dispensed with:
(f) When the City Manager det,rmines that an emetteqcy
requires that an order be placed with the nearest available
source of supply; or
(2) When the amount of an item purchased is less than
fiv~ bundred dollars; or
(3) When the ·city Council finds that the commodity can
be 6btainid from only one vendor; or
_ (4)-When the commodit.y is required to mat ch or be .::o::-
patibli with other furnishings, materi~ls or equipment presently
on-hand and is to be purchased from tne supplier of such on-hand
items; or
(5) When services are involved which will be performed
entirely by City forces; or
(6) When the provisions of Sections 3.28.130, 3.28.140
or 3.28.150 are applicable,
SECTION 2: That Title 3, Chapter 3.28 of the Carlsh~d
Municipal Code is amended by the amendment of Section 3.28.120
to read 48 follows:
3.28.120 Formal bidding pro~edure. Except as otherwi~e
provided 1n this Chapter, purchases of supplies, services and
equipment of an estimated value greater -than ten thousand
dollars shall be by written contract with the lowest r.esponsible
bidder who aubmits a responsive ~id pursuant to the following
procedure:
(l) Notices inviting bids. !ihall be puolished at leaot
once, ·ten days before the date of opening of the bids, in a nevs-
paper of general circulation in the City of Carlsbad, printed and
published in the County of San Diego. Notices inviting bids
shall include a general description of the articles to be pur-
chased, shall state where bid blanks and specifications may b~
secured, and the time and place for opening bids,
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(2) The purchasing officer shall also solicit sealed
bids from all responsible prospective s~ppliers whose names are
on the bidders' tist or who have made a written request that
their names be ddded thereto, or as known to the purchasing
officer.
(3) The purchasing officer shall alwo advertise pehding
purchases by a notice posted on a public bulletin b9ard in City
Hall.
(4) When deemed necessary by the purchasing. officer,
bidder's Pecurity may be prescribed in the public notices in-
viting bids. Bidders shall be entitied to return of bid secu-
rity; provided, however, that a successful bidder shall forfeit
his bid security upon his refusal or failure to execute the
contracf within ten day~ after the notice of award of contract
bas ~een mailed, unles~ the City is solely responsible for th~
delay in executing the contract. The City Council may, on re-
fusal .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 contract price differential between the lowest bid
and ~he second lowest bid, and the surplus, if any, shall be
returned to the lowest bidder. If the City Council rejects all
bids presented, due to the failure of the successful bidder to
execute the contract, and readvertises, the imount of the lowest
bidder's security may be used to offset the cost of receiving new
bids and the ~urplus, if any, shall be returned to the lowest
bidder.
(5) Sealed bids shall be submitted to ~he purchasing
officer and s~all be so identified on thi envelope. Bids shall
be opened in public at the time and place stated in the public
notices inviting the bids. A tabulation of all bids received
ihall be open for public inspection during regular business hours
for a period of not less than thirty calendar days after the bid
opening.
(6) In its discretion, the City Council may reject any
and all bids presented and readvertise for bids pursuant to the
procedure hereinabov~ prescribed. in the event no bids are re-
ceived or that all bids substantially exceed the City estimate of
cost for the purchase, the City Council may reject all bids and
direct the purchasing officer to proceed pursuant to Sections
3.28.130 or 3.28.140.
(7) If two or more bids received are for the same total
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 in its discretion accept the one it
chooses or accept the lowest bid made by and after negotiation
with the tie bidders at the time of the bid opening.
(8) The City shall have ~uthority to require a perforo~
ance bond before entering a contract in such amount as it finds
teasonably necessary to protect the best interests of the City.
If the City requires a performance bond, the form and amovnt of
the bond shall be deocribed in the notice inviting bids,
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SEPTION 3: That Title 3, Chapter 3.28 of the Carlsbad
Municipal C~de is amended by the amendment of Secti~n l.28.130
to replace "five thoui1and dollars" with the term "t.en thousand
dollars" in the first sentence thereof,
-SECTION 4: That Title 3, Chapter 3.28 of the Carlsbad
Municipal Code is amended by the amendment of Section 3.28.140
to read as foLlo,s:
· 3 .• 28.140 Competitive negotiations,.
of£icer may authorize the purchase of highly
equipment by competitive negoti~tions when:
(10 The supplies or equipment are
technical or preformance specificatlons are
The purchasing
technical supplies or
such that suitable
not readily
' available; or
. (2)
cations; or
T-he qi,t_y is not able to develop deiicriptive specifi-
(3) The proposals for the purchase would be more advan-
tageous to the City.
~~en the purchases are made by competitive negotiations, the best
offer, as judged against proposal evaluation criteria shall be
accepted. The use of competitive negotiations is not intended to
be used for the purpose of avoiding the bidding pr~cedures as set
forth in this C_hapter.
SECT.ION 5: That Title 3, Chapter ~.28 of the Carlsbad
Municipal Code is amended by the addition ~f Section 3.28,150 to
read as fol,.lows:
3.28.150 ProfesRional services, Request for proposals
shall be used when the s~rvices of attorneys, accountants, archi-
tects or specialized consultants are needed. Whenever possible at
least three proposals shall be received for the professional
service needed. The purchasing officer may waive the requirements
for solicitation of multiple proposals if only one individtlnl or
firm can provide the professional service, The selection of the
professional shall be based upon an analysis of demonstrated
competence and professional qualifications necessary for the
aatisfactory performance of the service required as well a~ the
cost of the service.
SECTION 6. That Title 3, Chapter 3.28 of the Carlsbad
Municipal Code is amended by the renumbering of Sections
!,28,150 and 3.28.170 to 3.26.160 and 3.28.180, respectively.
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SECT!ON 7: That Title 3, Chapter 3.28 of the Carlsbad
Municipal Code is amended by the amendment and renumbering
Sections 3.28.160 as follows:
3.28.170 Award and execution of contracts. Except in
emergency situations, pursuant to Subsection 1 of Section
3.28.090, all contracts for supplies, services and equipment in
an estimated amount .of ten thousand dollars, or more, shall be
awarded by the City Council. Contracts for supplies, services
and equipment in an estimated amotrnt of less than ten thousand
dollars shall be exe·cuted by the City Manager. The City Manager
may award co~tracts in an amount of less than twenty-five
thousand dollars when the study or project is financed from
deposits provided by persons or ogranizations other than the City
which are held in trust by the City and when the Cityis share of
th~--cost is less than five thousand dollars.
EFFECTIVE DATE: This ordinance shall be effective
thirty days after its adoption, and the City Clerk shall certify
to ~he adoption of this ordinance and cause it to be published at
least once in the Carlsbad Journal within fiftean days after its
adoption.
INTRODUCED AND FIRST READ 1-. .a meeting of the Carlsbad
City Council held on the 6th_ day of April 19 82 and
thereafter
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.PASSED AND. ADOPTED at a meeting of said City Council
held on the 20th day of Aoril , 19...a2_, by the
follow fog vote, to wit:
AYES: Council ~ers Packard, Casler, Anear, Lewis
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NOES: None
ABSENT: Council Menher Kulchin
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• Ronald c. Packard, Mayor
ATTEST:
(SEAL)
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