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HomeMy WebLinkAbout1999-06-15; City Council; 15278; Amend Purchasing Sections Of Municipal Coder . CITY OF CARLSBAD - AGENDA BILL AB# 15. A.7 8 TITLE. -a AMENDMENTS TO THE PURCHASING MTG. 6/15/99 SECTIONS OF DEPT. PCH THE CARLSBAD MUNICIPAL CODE CITY MGR . . p 2 1 0 5 8 RECOMMENDED ACTION: Introduce Ordinance No. /JS - 45 S amending Carlsbad Municipal Code chapter 3.28 to revise the bidding procedures and the execution of agreement extensions by the city manager. ITEM EXPLANATION: The City’s Purchasing Ordinance was first adopted by the City Council in October 1966. Since that time, the Ordinance has been routinely revised to address current purchasing practices. The proposed changes will clarify two sections of the Purchasing Ordinance. The following is an explanation of the present procedures and the proposed changes: 1. BIDDING The first proposed amendment involves a clarification of proper procurement phasing. When an item or project has been budgeted and bids or quotes are required, the splitting of the purchase or project into smaller purchases or projects for the purpose of avoiding the bidding process, is contrary to the intent of the bidding requirement provided in the Code. The purpose of competitive bidding is to maximize the purchasing value of public funds and to encourage competition among the vendors. When several items can be combined into one order, it is possible to take advantage of volume discounts offered by the vendors. Section 22033 of the Public Contract Code requires competitive bidding for &II public works projects. This provision keeps the contractors from splitting their projects into smaller ones to avoid the bidding process. The recommended addition to the Ordinance will add this provision to procurement purchases as well as public works projects. The present ordinance waives the bidding requirement when the amount of an item is less than five thousand dollars. The intent of this section is for a single purchase under five thousand dollars to be exempt from the bidding process. In some cases where a purchase composed of several items has a total amount greater than five thousand dollars, the items should not be ordered separately so as to exempt the purchase from the bidding process. The proposed language clarifies how the purchasing ordinance applies to purchases with an aggregate amount that is less than or greater than five thousand dollars. h PAGE 2 OF AGENDA BILL NO. 627 8’ h 2. EXECUTION OF EXTENSIONS OF AMENDMENTS TO AGREEMENTS At the present time, when a professional services agreement is awarded by the city council, it contains a provision that authorizes the city manager to extend the agreement for a stated period of time (i.e. six months, one year or two additional one year periods). Likewise, when a professional services agreement is awarded administratively by the city manager, there also is a provision in the agreement for extensions. Under these conditions, it is possible for the total amount of an administratively awarded agreement, with the extensions in place, to exceed the city manager’s single year authority to administer contracts under $25,000, resulting in the need for city council action. The recommended change will add the word “annual” to the city manager’s authority for extending professional services agreements that have been awarded administratively. With this provision in place, administratively awarded professional services agreements can be awarded for more than one year period without requiring city council action so long as the annual award amount does not exceed the city manager’s authority. FISCAL IMPACT: The changes in the Purchasing Ordinance will not create any discernible fiscal impact. EXHIBITS: 1. Summary of Chapter 3.28 showing amendments 2. Ordinance No. N S- 75 5 a l Exhibit 1. 3.28.090 Bidding Purchases of supplies, services and equipment shall be by bid procedures pursuant to this chapter. Bidding may be dispersed with: 1) When the city manager determines that an emergency requires that an order be placed with the nearest available source of supply; or 2) When the amount of is less than five thousand dollars; or 3.28.172 Execution of change orders, and amendments. a) No change in an agreement or contract shall be made without the issuance of a written change order, extension or amendment and no payment for any such change shall be made unless a written change order, extension or amendment has first been approved and executed in accordance with this section designating in advance the work to be done and the amount of additional compensation to be paid. b) The city manager shall have the authority to execute change orders or amendments within authority granted by Section 3.28.170, provided the amount as revised is within the limits of that authority. 3 I - h c) d) The city manager may award contracts for capital outlay items that have been approved by the City Council during the budgeting process in an amount up to a limit of one hundred thousand dollars, e) The city manager shall have the authority to act for the city in all aspects of public projects less than the dollar amount established for formal bidding and cause them to be performed by the employees for the city by force account, by negotiated contract, or by purchase order. All contracts for public projects of more than the dollar amount established for formal bidding shall be awarded by the city council. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 2. ORDINANCE NO. NS-495 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING TITLE 3, CHAPTER 3.28 OF THE CARLSBAD MUNICIPAL CODE BY THE AMENDMENT OF SECTIONS 3.28.090 and 3.28.172 TO REVISE THE 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 Municipal Code is amended by the amendment of Sections 3.28.090 and 3.28.172 to read as follows: 3.28.090 Biddina. Purchases of supplies, services and equipment shall be by bid procedures pursuant to this chapter. The splitting or separating of any purchase or contract into smaller orders or projects for the purpose of avoiding compliance with procedures in this Code is prohibited. Bidding may be dispensed with: (2) When the aggregate amount of a single purchase for supplies, services or equipment is less than five thousand dollars; or 3.28.172 Execution of Change Orders, Extensions and Amendments. (c) The city manager shall have the authority to execute annual extensions to agreements within the authority granted by Section 3.28.170, provided the amount is within the limits of that authority: . . . . . . . . . -l- . ‘. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad C Council on the day of , 1999, and thereafter PASSED AND ADOPTED at a regular meeting of said City Council held on tl day of , 1999, by the following vote, to wit: AYES: NOES ABSENT: APPROVED AS TO FORM AND LEGALITY Ronald R. Ball, City Attorney Claude A. Lewis, Mayor Attest: Aletha L. Rautenkranz, City Clerk ww -2-