HomeMy WebLinkAbout1996-03-12; City Council; 13549; AMENDMENTS TO THE PURCHASHING SECTIONS OF THE CARLSBAD MUNICIPAL CODEw OF CARLS6AP - AGWA BILL 'I (
.c I AB # i:ja 579 I TITLE: Amendments to the DEPT.
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DEPT. PCH
' 314 NO6 Purchasing Sections af the
Carlsbad Municipal Code
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CITY 1
CITY I
RECOMMENDED ACTION:
Introduce Ordinance No. N's" 3 T I , amending the Purchasing Sections of the Carlsbac
Municipal Code.
ITEM EXPLANATION:
The City's Purchasing Ordinance was first adopted by the City Council in October 1966
Periodically, the Ordinance has been revised and brought up-to-date with current acceptec
purchasing practices. During the past several months, a review has been made of the presen
ordinance and a study of other agencies Purchasing Ordinances has been undertaken. Thl
changes that are proposed are the result of this study and involve eight sections of thl
Purchasing Ordinance.
The following is an explanation of the present procedures and the proposed changes:
1. PUBLIC PROJECTS.
The first proposed amendment involves public works projects. Under the preser
ordinance, contracts for public projects are governed by various sections of the Califomi
Public Contract Code. The recommended addition will add thie Standard Specifications fc
Public Works Construction to the references by which the City's public works projects ar
governed, since these specifications are referenced in the Notice Inviting Bids for publi
works contracts. 1 2. ENCUMBRANCE OF FUNDS.
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The present ordinance requires an unencumbered appropriation to be available in a fun
account designated far a specific use before a purchase order is issued. In order 1
facilitate the processing of purchase orders, the policy has been to issue a purchase ordc
if there exists an unencumbered appropriation in the department budget. Fund transfer
are still required; however, purchase orders are not held up if there are adequate fund
available in the department budget. The proposed amendment language is consistent wi
the current practice and has been approved by the Financial Management Director.
3. FORMAL BIDDING PROCEDURE.
In the Formal Bidding Procedure section of the ordinance, all bids are deemed rejected
no action is taken on the bids within ninety days. The recommended amendment \n
include "proposalsJJ in this section and in the section that requires notification for
performance bond to be included in the Notice Inviting Bids (or proposals). "Proposals" a
currently included only in the Competitive Negotiations and Professional Services section
At the present time, the City's public works contracts allow a contractor twenty days
execute the contract after the award. The proposed amendment will make the ordinanc
consistent with the current practice for public works contracts and has been approved I
the departments that bid public works projects. v
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Section 51 06 of the Public Contract Code permits a public agency to award a public works
contract to the second lowest bidder, if the successful bidder fails to execute the contract.
This section also allows the public agency to award the contract to the third lowest bidder,
if the second lowest bidder fails or refuses to execute the contract. The recommended
amendment will allow the City Council or its designee to execute the contract to the next
lowest responsible bidder if the successful bidder refuses or fails to execute the contract. It will also give the City Council or its designee the option of using the amount of the lowest
bidder's security to the contract price differential between the lowest bid and the second lowest bid and the surplus may be returned to the lowest bidder.
4. OPEN MARKET PROCEDURE.
The recommended deletion in the Open Market Procedure section of the ordinance will
make the wording for an award for formal bids and open market purchases the same since
both are currently awarded by the same criteria. Both sections will award the bid based on
the lowest responsible bidder who submits a responsive bid.
5. COMPETITIVE NEGOTIATIONS.
Presently, the Competitive Negotiations section of the ordinance authorizes the purchase
of highly technical supplies and equipment by competitive negotiations. It is recommendec
that this section be expanded to include certain professional services that are not coverec in Section 3.28.150. Some examples of professional services that could be selected b)
competitive negotiations are auditors, attorneys, doctors and appraisers. When competitive
negotiations are used, the award is made to the responsible offeror whose proposal is mos
advantageous to the City. The formal bidding or open market procedures are used for the
technical or maintenance services that involve less discretionary judgment and the awarc
is made to the lowest responsible bidder who submits a responsive bid.
6. PROFESSIONAL SERVICES.
The proposed language in the Professional Services section of the ordinance more clearl!
conforms with current practices and is similar to the state law as applied to state agencies
The Government Code (Section 4526) requires cities to make the preliminary selection o
architects, landscape architects, engineers, environmentalists, land surveyors 01
construction managers based on demonstrated competence and professiona
qualifications.
7. AWARD AND EXECUTION OF CHANGE ORDERS.
At the present time, the section of the ordinance pertaining to change orders refers on1
to changes in contracts. The proposed amendment will add agreements and amendment
to agreements to this section thereby clarifying the distinction in changes made to a
agreement as opposed to a contract.
8. SUPPLIES, SERVICES AND EQUIPMENT NOT GOVERNED BY THIS CHAPTER.
The additions that are proposed in the above referenced section of the ordinance ar
consistent with current policies and include the following: real property lease:
entertainment or performers; books, periodicals; membership dues; convention, trainins
travel arrangements, including hotels, car rentals and airfare; emergency constructior
equipment or vehicle repair.
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9. Substituting, “department” or “departments” for “agency” or “agencies”.
There are three sections of the present ordinance where the word “agency” or “agencies”
is used. In each section “department” or “departments” is the more appropriate word.
Section 3.28.060 gives the purchasing officer the authority to purchase or contract for
supplies, services and equipment required by any using “agency.” Section 3.28.070
requires using “agencies” to submit purchase requests on standard requisition forms and
Section 3.28.1 80 requires reports from an “agency” who has been exempt from purchasing
items less than $5,000 independently of the purchasing department. The language
changes in the proposed amendments will clarify the wording and make it consistent with
other sections of the ordinance.
The above recommended amendments to the Purchasing Ordinance will assure the integrity
of the procurement process. With these proposed changes in place, the City will continue to
have a consistent and comprehensive ordinance for its purchasing and contracting program.
FISCAL IMPACT:
There will be no additional savings or expenditures if the proposed amendments are enacted.
EXHIBITS:
1. Summary of Chapter 3.28 showing amendments.
2. Ordinance No. his- .?F/
0 aD Exhibit 1.
Chapter 3.28
Purchasing
3.28.060 Duties of purchasing officer.
The purchasing officer shall have the authority to:
(1) Purchase or contract for supplies, services and equipment required by any using
such administrative regulations as the purchasing officer shall adopt for the internal
management and operation of the purchasing department and such other rules and
regulations as shall be prescribed by the city manger;
3.28.070 Requisitions.
Using qpeim~~prj#ygg&shall submit requests for supplies, services and equipmen
to the purchasing officer by standard requisition forms, or by other means as may bt
established by the purchasing rules and regulations.
3.28.080 Public projects.
-E@&&@ in accordance with purchasing procedures prescribed by this chapter,
. ............. -...-.- .......................... ..- .....,..... < .____ . . ................ ~.:.:. .......................... .,,. 2
Contracts for public projects in the city shall be governed by applicable state law!
including the California Public Contract Code, Division 2, Part I, Chapters 1 , 3, 5, 7 an(
9, Section I 100 et seq. and Division 2, Part 3, Chapters I and 2 of the Local Agency Public
Construction Act, Sections 20100 et seq., which includes the adoption by the city of the
alternative provisions of the Uniform Public Construction Cost Accountina Act for use ir
3.28.1 10 Encumbrance of funds.
Except in cases of emergency or in cases where specific authority has been first obtaine
from the city council, the purchasing officer shall not issue any purchase order for supplies services and equipment unless there exists an unencumbered appropriation in the fun
aeeotmt ~@@g@f€)~@&$3Ud$j~~ against which such purchase is to be charged. ...... . n........ . .......,.:+ (..,. ?. _,._. ...~ ....... ,..'.',"'.'.'.'.. ___., ~:'.::..'.:.:.~~~.~~~
3.28.120 Formal bidding procedure.
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3.28.190 Supplies, services and equipment not governed by this chapter.
Supplies, services and equipment not subject to the provisions of this chapter are as
follows:
(1) Utility services and related charges:
(2) Work or services performed by another public or quasi-public entity;
(3) Real property purchases and related title and escrow fees;
............... ...................................... .................................................................... ....,.... i ......... :...:.:.:.::: -:.
.................................................................................... r. [4j ........ R~~~~~;~~~~i~~~~~
&$j Credit card purchases of gasoline, oil or emergency automotive needs;
[@j Transportation and freight charges when not specifically indicated on i
purchase order;
........ ........ @$ .... Insurance and bond premiums;
@j L..., Advertising; .......
.~.:,~.~.~,~.>x.~ :.:.::::: k :::.:: ............................................................................................................................... ................................. '..* ................................................... ..:::.:.:.:.:.: .......................................... E$! Works of a~~~~~~~6I~~i~~~~~~~ 5 ............................................................................... ............................................................... .ii
.................................................................................................. .................................. ~ ...................... ......,... d ...... :-:: ....... @@g, 3rtofig%pg~@&~15 c. ................ t.:.: ................................ t
, .................. .................................. . .:.:. :.:< .:.: < ..... .....,... ........ ................................. .... .......................................................................... @@] ~~~~~~~~~.~s~~~~~~~~~~~~~~~~~~~~~~~~~~~~ *....x.. ........................................................ <...............a. 5.. ..: .......... 3 ................................................................................................................
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ORDINANCE NO. NS-351
1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY 0
2 CARLSBAD, CALIFORNIA, AMENDING TITLE 3, C.HAPTER 3.2
OF THE CARLSBAD MUNICIPAL CODE BY THE AMENDMEN
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TO REVISE THE PURCHASING PROCEDURES. 4 3.28.130,3.28.140,3.28.150,3.28.172, 3.28.180, AND 3.28.19(
OF SECTIONS 3.28.060, 3.28.070, 3.28.080, 3.28.1 10, 3.28.12(
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6 The City Council of the City of Carlsbad, California, does ordain as fo
7 11 SECTION 1: That Title 3, Chapter 3.28 of the Carlsbad Municipal I
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amended by the amendment of Sections 3.28.060, 3.28.070, 3.28.080, 3
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3.28.120, 3.28.130, 3.28.140, 3.28.150, 3.28.172, 3.28.180, and 3.28.190 to
11 follows:
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13 The purchasing officer shall have the authority to:
14 (I) Purchase or contract for supplies, services and equipment requirec
15 using department in accordance with purchasing procedures prescribed
3.28.060 Duties of Purchasing Officer.
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17 chapter, such administrative regulations as the purchasing officer shall adop
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I internal management and operation of the purchasing department and such 0th
19 I and regulations as shall be prescribed by the city manger;
3.28.070 Requisitions.
21 11 Usina departments shall submit requests for supplies, services and equipmel
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Contracts for public projects in the city shall be governed by applicable st2
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including the California Public Contract Code, Division 2, Part 1 , Chapters 1
and 9, Section I 100 et seq. and Division 2, Part 3, Chapters I and 2 of th
purchasing officer by standard requisition forms, or by other means as I
established by the purchasing rules and regulations.
3.28.080 Public Proiects.
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1 11 Agency Public Construction Act, Sections 201 00 et seq., which includes the a
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4 Accounting Act for use in the city. Contracts for public projects also shall be g(
5 by the current edition of the Standard Specifications for Public Works Construci
6 the latest supplement thereto, except as otherwise provided by the city counc
by the city of the alternative provisions of the Uniform Public Constructic
‘7 1) city manger if the contract is within his authority.
a 3.28.1 10 Encumbrance of Funds.
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10 Except in cases of emergency or in cases where specific authority has bc
11 obtained from the city council, the purchasing officer shall not issue any purcha:
12 for supplies, services and equipment unless there exists an unencumbered ap
13 tion in the department budget against which such purchase is to be charoed.
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3.28.120 Formal Biddina Procedure.
(4) When deemed necessary by the purchasing officer, bidder’s secu
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17 II be prescribed in the public notices inviting bids. Bidders shall be entitled to r
18 bid security; provided, however, that a successful bidder may forfeit his bid
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award of contract has been mailed, unless the city is solely responsible for tt 2o
upon his refusal or failure to execute the contract within twenty days after the r
. 21 In executing the contract. The city council or its designee may, on refusal or f;
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the successful bidder to execute the contract, award it to the next lowest resr 23
24 bidder. If the city council or its designee awards the contract to the next lowesl
25 the amount of the lowest bidder’s security may be applied by the city to the 1
26 price differential between the lowest bid and the second lowest bid, and the
27 if any, may be returned to the lowest bidder. If the city council rejects
28 presented, due to the failure of the successful bidder to execute the contr;
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readvertises, the amount of the lowest bidder's security may be used to offset
of receiving new bids and the surplus, if any, may be returned to the lowest 1:
(6). All bids or proposals shall be deemed rejected if no city council i
taken on the bids or proposals within ninety days after the bids or proposals ha
received and opened regardless of whether the matter has been formally subr
the city council for consideration.
(8) The city shall have authority to require a performance bond before (
a contract in such amount as it finds reasonably necessary to protect the best i
of the city. If the city requires a performance bond, the form and amount of tl
shall be described in the notice inviting bids or proposals.
3.28.130 Open Market Procedure.
(b) (4) If feasible, purchases shall be based upon at least three writ
~ and shall be awarded to the lowest responsible bidder who submits a respon:
3.28.1 40 Competitive Neqotiations.
The purchasing officer may authorize the solicitation of professional services n
in Section 3.28.150 and the purchase of highly technical supplies or equip
l competitive negotiations when:
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I I (1) The professional services required are not defined by I 1 3.28.150
(2) The supplies or equipment are such that suitable tech
performance specifications are not readily available; or
(3) The city is not able to develop descriptive specifications; c
(4) Requesting proposals for the particular service or purchas
be more advantageous to the city.
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The award is made to the responsible offeror whose proposal is deterr
be most advantageous to the City taking into consideration price and the ev
criteria set forth in the request for proposal. The use of competitive negotiatiol
intended to be used for the purpose of avoiding the bidding procedures as se
this chapter.
3.28.1 50 Professional Services.
Request for proposals shall be used when the services of professionals are
The selection of specialized professional services, including private archi
landscape architectural, engineering, environmental, land surveying or con:
project management firms is based on demonstrated competence and
professional qualifications necessary for the satisfactory performance of the z
required and on a fair and reasonable price. Whenever possible at lea!
proposals shall be received for the professional service needed. The pur
officer may waive the requirements for solicitation of multiple proposals if c
individual or firm can provide the professional service. The selection proce
professional services not listed above shall be Section 3.28.140 Cor
Negotiations. The selection procedure for limited technical or maintenance s
shall be Section 3.28.120 Formal Bidding Procedure or Section 3.28.130 Open
Procedure.
3.28.172 Award and Execution of Change Orders and Amendments.
(a) No change in an agreement or a contract shall be made with1
issuance of a written change order or amendment and no payment for any such 1
shall be made unless a written change order or amendment has first been aF
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and executed in accordance with this section designating in advance the wc
done and the amount of additional compensation to be paid.
(b) Provided that the funding for an agreement or a contract h:
previously approved and the expenditure of such funds authorized by the city
the city manager shall have authority to award and execute change 01
amendments for any such contract or agreements as follows:
(1 ) All changes to an amendment or a contract within the :
granted to the city manager by Section 3.28.170, provided the amount of the
as revised is within the limits of that authority.
(2) Change orders to contracts or amendments to agreemen
value from twenty-five thousand dollars to seventy-five thousand dollars
approved in an amount not to exceed twenty-five percent of the original pricc
limit of ten thousand dollars per change order or amendment. The cumulative
of all Change orders approved by the city manager for any project shall not
twenty-five thousand dollars.
(3) Change orders to contracts or amendments to agreemeni
value of seventy-five thousand dollars or more may be approved in an amou
exceed ten percent of the original price up to a limit of twenty-five thousand do
change order or amendment. The cumulative amount of any change 01
amendments approved by the city manager for any individual project shall no1
the lesser of seventy-five thousand dollars, or twenty-five percent of the origin
After reviewing a large complex project, the city council may by resolution authc
city manager to approve change orders or amendments in excess of the CUI
limit to an amount determined appropriate for such project by the council.
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(c) All other change orders shall be awarded by the city council.
3.28.1 80 Exemptions from centralized purchasina.
The purchasing officer, with the approval of the city manager, may authorize ir
any departmen to purchase specified supplies, services and equipment of e$
amounts of less than five thousand dollars independently of the pur
department. Such purchases shall be made in conformity with the pro(
established by this chapter, and shall further require periodic reports fr
department on the purchases made under such written authorization.
3.28.1 90 Supplies, Services and Equipment not Governed by this Ch:
Supplies, services and equipment not subject to the provisions of this chapte
follows:
(1) Utility services and related charges;
(2) Work or services performed by another public or quasi-public
(3) Real property purchases and related title and escrow fees;
(4) Real property leases;
(5) Credit card purchases of gasoline, oil or emergency automotivc
(6) Transportation and freight charges when not specifically indic I
a purchase order;
(7) Insurance and bond premiums;
(8) Advertising;
(9) Works of art, entertainment or performers;
(1 0) Books, periodicals;
(1 1 ) Membership dues, conventions, training, travel arrangements it
hotels, car rentals and airfare;
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(1 2) Emergency construction, equipment or vehicle repair.
EFFECTIVE DATE: This ordinance shall be effective thirty days
adoption, and the city clerk shall certify to the adoption of this ordinance and
to be published at least once in a newspaper of general circulation within fin(
after its adoption.
INTRODUCED AND FIRST READ at a Regular Meeting of the Carl5
Council on the day of , 1996, and there:
PASSED AND ADOPTED at a regular meeting of the City Council of tk
Carlsbad on the day of , 1996, by the
vote, to wit:
AYES:
NOES:
ABSENT:
APPROVED AS TO FORM AND LEGALITY
Claude A. Lewis, Mayor
Attest:
Aletha L. Rautenkranz, City Clerk
(SEAL)