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HomeMy WebLinkAbout1985-09-10; City Council; 6955-1; Addition to Purchasing Sections of Municipal Code• M OJ N r-1 • :2 • ~ / 1 k ~ ~ M •r-1 i o· Ul ~ U'l co ~ I o..· 0 ~ 7 O'\ .. z 0 -~ .... -t) z ::, 8 CIT-,F CARLSBAD -AGEND~ILL ImE; DEPT. AB# 6955-il MTG. 9h9/85 DEPT._P_c_H __ ADDITION TO THE PURCHASING SECTIONS OF THE CARLSBAD MUNICIPAL CODE CITY ATTV..x...:.:::=;;;;- CITY MGR. __ RECOMMENDED ACTION: Introduce Ordinance No. /(<t?:3, amendin~ the purchasing procedures to authorize the City Council to design·ate by Resolution what supplies, servi~es and equipment costing more th1.m $10,000 can be acquired by the use of the Open Market procedure. ITEM EXPLANATION: The City of Carlsbad adopted the first purchasing ordinance in October 1966. That ordinance has been amended occasionally to ensure the City follow current, accepted purchasing practices. One practice currently existing in the purchasing procedures is the Open Market procedure. At this time, the proposed addition would allow the City Council, when it is economically advantageous, to authorize the Open Market procedures by resolution for the purchase of designated supplies, services and equipment costing more than $10,000. The Open Market procedures are presently being used for items costing less than $10,000 and require the Purchasing Officer to solicit bids from prospective vendors. After obtaining a~ least three bids (whenever possible}, an analysis is made to determ~ne the lowest responsible bidder. Following the evaluation of thb bids, an award is made for the pm::chase of supplies, services or equipment. An example of when the proposed amendment would be appropriate is for the purchase of used,vehicles. currently, the City must use the formal bidding procedure for used vehicles. Because of the time involved in formal bid proceedings, we are getting very little response from car rental agericies and dealerships. When we do receive a response the selection is generally limited. The Open Market procedure where designated by the City Council will allow us to solicit bids immediately and make the decision to purchase in a substantially reduced period of time. This flexibility should increase dealer interest and thus create Cl: larger selection of vehicles for the City. FISCAL IMPACT: When the Open Market procudures are used, the City will realize a savings in the cost of legal advertising that is required for formal bids. It is estimated that the savings for items purchased under the proposed amendment using the Open Market procedures would be approximately 10% . EXHIBITS: 1. Summary of proposed addition to Purchasing Ordinance . 2. Ordinance No. /-2~---· I August 20, 1985 TO: FROM: ASSISTANT CITY Mi\NAGEK/ AIJMINIS TRATION Purchasing Officer PROPOSED ADDITION TO PURatASING ORDINANCE The recommended addition to the Carlsbad Municipal Code is considered necessary for the City to have a viable and canprehenslve purchasing policy. Section 3.28.120 -Formal Blddln Procedures provides for the purchase of supp es, serv ces a equ pment cost ng more than ten thousand dollars by formal bidding procedures. When these procedures are used, notice to bid ls published in the newspaper at least ten days before the bid opening. Sealed bids are submitted to the Purchasing Of fleer and opened in public at a time and place stated in the Notice To Bid. After the bids are received, they are evaluated and a recommendation ls made for a bid award to the Clty Council. It ls estimated the average formal bid takes six weeks to canplete. For most items costing ten thousand dollars there ls no problem in using the for-mal bidding procedures. However, there may be times when it would be econanclally advantageous to use the open market procedures rather than the formal bidding procedures for the purchase of supplies, services and equipment costing more than ten thousand dollars. When the Open Market Procedures are used, written quotations are subnitted to the Pur~-hasing Officer and the award is made to the lowest responsible bidder who submits a responsive bid which, based on total cost, is most advantageous to the City. The average time involved for the purchase of items using the open market procedures is two to three weeks. Because there will be times that it would be more advantageous to use the cpen market procedures, the proposed addition to the Purchasing Ordinance allowing the Council to authorize the purcha::.e of items cos tJ.ng more than ten thousand dollars by resolution is recommended. RUTH FLETCHER Purchasing Officer RF/ds ~! I :~w< gu. ::,~-zOffi Q ~ ~ u. aq:; 3 :i I&:. ~ ffi ~ w • 0 z~ !$j z ... !!) > ~ 0: ~ ~ 0 J. 2 3 4 5 6 7 8 9 ORDINANCE NO. 1283 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA AMENDING TITLE 3, CHAPTER 3.28 OF THE CARLSBAD f-tUNICIPAL CODE BY AMENDMENT OF SECTION 3.28.130 TO AUTHORIZE THE CITY COUNCIL TO DESIGNATE BY RESOLUTION SERVICES AND SUPPLIES COSTING MORE THAN $10,000 BY USE OF OPEN MARKET PROCEDURES. The City Council of the City of Carlsbad, California does ordain as follows: SECTION l: That Title 3, Chapter 3.28 of the Carlsbad Municipal Code is amended by the amendment of Section 3.28.130 ... ., read as follows: 10. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 .28 3.28.130 ~en market procedure. (a) Notwi standing Section 3.28.120 the purchas~ng officer may purchase supplies, services and equipment in the open market pursuant to the procedures established in this section~ The open market procedure may be utilized when the estimated value of the supplies, services and equipment to be purchased is l~ss than $10,000, when no bids are received pursuant to bid procedures established by this chapter or when all bids received substantially exceed the City's estimated cost for the purchase. Further, the City Council may designate types or classes of supplies, services and equipment costing more than $10,000 which may be purchased through use of open market procedures whenever the City Council finds that use of open market procedures is economically advantageous to the City. (b) The open market procedure shall be as follows: 1. The purchasing officer shall solicit bids by written or oral request to prospective vendors. 2. Sealed written bids shall be submitted to the purchasing officer. 3. The purchasing officer shall keep a public record of all open market requests and bids for a period of one year after the submission of the bids or if no bids ara received the placing of the orders. 4. If feasible, purchases shall be based upon at least three written bids and shall be awarded to the lowest responsible bidder who submits a responsive bid which, based upon total cost, is most advantageous to the City. Ill Ill Ill Ill l 2 3 4 5 6 7 8 9 10 ll 12 0 < m 13 ~ I a: a: ., < g.() w < 14 II. :, z z O ffi a: 0 ~ > 0 15 -< u.. mu~:; u: • ~ !i: ~ w 0 16 w~~~ ~o .. !'J >S ~ 17 ~ 0 (.) 18 19 20 21 22 23 24 25 26 27 28 EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption, and the City Clerk shall certify to the adoption of this ordinance and cause it to be published at least once in the Carlsbad Journal within fifteen days after its adoption. INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the 10th 1985, and thereafter day of SepteTber , PAS,&ED AND ADOPTED at a regular meeting of said City Council held on the 17th day of Sept:esri)er , 1985 by the following vote, to wit: AYES: Council l-Bri:lers Casler, lewis, Kulchin, Chick and Pettine NOES: None ABSENT: ~ne FORM AND LEG LITY ' ATTEST: ' I I ' } I I I i I t