HomeMy WebLinkAbout2002-05-14; City Council; 16750; Revision To Purchasing Sections In Municipal CodeCITY OF CARLSBAD -AGENDA BILL
AB# 16,750
MTG. 5-14-02
DEPT. 3
ADOPTION OF ORDINANCE NO. NS-627 REVISING THE
PURCHASING SECTIONS OF THE CARLSBAD MUNICIPAL CODE
Y 7 DEPT. HD. -
CITY ATTY.
CITY MGR
RECOMMENDED ACTION:
Adopt Ordinance No. NS-627, amending in its entirety, Chapter 3.28 of Title 3 of the
Carlsbad Municipal Code to reflect revised City purchasing procedures.
ITEM EXPLANATION:
Ordinance No. NS-627 was introduced and first read at the City Council meeting held on
May 7, 2002. The second reading allows the City Council to adopt the ordinance, which
would then become effective in thirty days. The City Clerk will have the ordinance published
within fifteen days, if adopted.
FISCAL IMPACT:
See Agenda Bill No. 16,744 on file with the City Clerk.
EXHIBITS:
1. Ordinance No. NS-627.
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ORDINANCE NO. NS-627
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY "" ~~~~ ~~ OF CARLSBAD, CALIFORNIA, AMENDING IN ITS ENTIRETY, CHAPTER 3.28 OF TITLE 3 OF THE CARLSBAD MUNICIPAL CODE TO REFLECT REVISED
"- CITY PURCHASING PROCEDURES. .
The City Council of the City of Carlsbad, California, does ordain as
follows:
CHAPTER 3.28
PURCHASING
3.28.010 Title.
3.28.020 Purpose.
3.28.030 Definitions.
3.28.040 Procurement and Disposition Responsibilities.
3.28.050 Methods Of Procurement.
3.28.060 Competitive Negotiations.
3.28.070 Professional Services.
3.28.080 Execution Of Change Orders and Amendments.
3.28.090 Cooperative Purchasing.
3.28.100 Exemptions.
3.28.1 10 Construction Projects.
3.28.120 Execution Of Change Orders.
3.28.130 Emergencies.
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3.28.010 Title.
A. This chapter shall be known and may be cited and referred to
as the “Purchasing Ordinance of the City of Carlsbad.”
3.28.020 Pumose.
A. The purposes of this chapter are to define the centralized system
of the City for the purchase of supplies, services and equipment, to provide for
the fair and equitable treatment of all persons involved in the purchasing
process, to obtain the highest possible value in exchange for public funds and
to safeguard the quality and integrity of the purchasing system.
3.28.030 Definitions.
A. For the purposes of this chapter, the following definitions apply:
1. Best Value. “Best value” means the best value to the City
based on all factors, including, but not limited to, the following:
a. cost;
b. The ability, capacity and skill of a contractor to
perform a contract or provide the supplies, services or equipment required;
c. The ability of a contractor to provide the supplies,
services or equipment promptly or within the time specified without delay or
interferences;
d. The character, integrity, reputation, judgment,
experience and efficiency of a contractor,
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e. The quality of a contractor's performance on
previous purchases with the City; and
f. The ability of a contractor to provide future
maintenance, repairs, parts and services for the use of the supplies purchased.
2. Bid, Contract or ProDosal Documents. The documents,
including their attachments and addenda, which set forth instructions to bidders
or proposers and which are disseminated for the purpose of soliciting bids or
proposals.
3. Competitive Biddinq ExceDtion. Goods, services or
equipment that can be obtained from only a single source. Items that are
required to match or be compatible with other furnishings, materials or
equipment presently on hand. When a particular type or make of commodity,
furnishings, type of material or equipment has been standardized for the City
by the city manager or the city council.
4. Capital Outlav Item. Equipment (fixed assets) with a
monetary value established by the Finance Director.
5. Construction Proiects. Construction, reconstruction,
alteration, renovation, demolition, erection, improvement, painting or repainting
and repair work involving any publicly-owned, leased or operated facility.
6. Contract. Agreements, regardless of what they may be
labeled, between the City and one or more other parties for the purchase or
disposition of goods and/or services or construction.
7. Contractor. Any party (business) who has entered into a
contract with the City for the provision or disposition of goods and/or services.
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8. End User. The City of Carlsbad or any City
departmenVdivision requesting goods and/or services.
9. E-Procurement. The use of electronic technology for the
acquisition or disposition of supplies, services, equipment or construction.
IO. Goods. Articles that are moveable at the time of sale,
including but not limited to equipment, supplies and/or materials.
11. Gratuitv. A gift, payment, loan, advance, deposit of
money, or service, presented or promised in return for or in anticipation of
favorable consideration in the procurement process.
12. Maintenance Services. Services intended to preserve
and/or restore a public facility to a clean, safe, efficient and/or continually
usable condition. Maintenance may include, but is not limited to: carpentry,
electrical, minor repainting, plumbing, glazing and other craftwork to preserve a
facility in the condition for which it was intended; cleaning and other operations
on machinery and other equipment attached to a facility as fixtures; the
mowing, pruning and trimming of lawns, grass, trees, shrubs, bushes and
hedges; servicing of irrigation and sprinkler systems; and the regular removal or
relocation of by-products or waste products accumulated at City facilities.
13. Procurement. The acquisition of supplies, services,
equipment or construction by the City, including but not limited to purchasing,
renting or leasing, and all functions and procedures pertaining to such
acquisitions.
14. Professional Services. Services which involve the
exercise of professional discretion and independent judgment based on
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advanced or specialized knowledge, expertise or training gained by formal
study or experience. Such services include, but are not limited to, those
provided by appraisers, architects, attorneys, engineers, instructors, insurance
advisors, physicians and/or other specialized consultants.
15. Purchasins Officer. The purchasing officer is the person
responsible for the procurement of goods and/or services in accordance with
the provisions of this chapter. The person designated by the city manager as
the purchasing officer of the City, or an individual specifically authorized by the
purchasing officer to act on his or her behalf.
16. Qualified Products. An approved list of supplies, services,
or construction items described by model or catalog numbers which, prior to
competitive solicitation, the City has determined will meet the specification
requirements.
17. Resmnsible Bidder. A bidder determined by the awarding
authority:
a. TO have the ability, capacity, experience and skill to
provide the goods and/or services in accordance with bid specifications, and if
applicable:
b. To have the ability to provide the goods and/or
services promptly, or within the time specified, and if applicable:
c. To have equipment, facilities and resources of such
capacity and location to enable the bidder to provide the required goods and/or
services, and if applicable:
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d. To be able to provide future maintenance, repair,
parts and service for the use of the goods purchased, and if applicable:
e. To have a record of satisfactory performance under
prior contracts with the City or other purchasers where such bidder has
previously been awarded such contract.
18. Responsive Bidder. A bidder determined by the City to
have submitted a bid or proposal which conforms in all material respects to the
requirements of the bid, contract, or proposal documents.
19. Services. Work performed, or labor, time and effort
expended, by an independent contractor.
20. Specifications. A description of the physical and/or
functional characteristics or of the nature of the required goods and/or services.
21. Subcontractors. A contractor undertaking part of the work
of a contract under the control of the principal contractor.
22. Surplus Personal Propertv. Goods owned by the City
which are no longer needed or which are obsolete or unserviceable, or property
that is a by-product (scrap metal, used tires and oil etc.).
23. Uniform Public Construction Cost Accountinq Act
(UPCCAA). (California Public Contract Code Section 22000 et seq.) Section
22030 of the UPCCAA provides an alternative method for bidding public works
projects by public entities which the City has adopted.
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3.28.040 Procurement and Disposition Responsibilities.
A. End User. The end user shall:
1. Identify its procurement needs and the availability of
funding; and
2. Submit to the purchasing officer specifications for the
required goods andlor services; and
3. Participate in the evaluation of bids and proposals; and
4. Inspect goods delivered and services performed to
determine conformity with the requirements set forth in the bid or proposal
documents and with contractual obligations, and authorize payments for
conforming goods and/or services.
B. PurchasinQ Officer. The purchasing officer shall be responsible
for the procurement of goods and/or services for the City in accordance with
the provisions of this chapter. No procurement of goods and/or services shall
be made contrary to the provisions of this chapter. Any agreement or contract
for the purchase of supplies, services and equipment made contrary to the
provisions of this chapter shall be void and any claim or demand against the
Ci based thereon shall be invalid. The purchasing officer shall:
1. Prepare and recommend to the city manager operational
procedures and forms for the procurement of goods and/or services in
cooperation with the end users and for the disposal of surplus personal
property;
2. Procure or supervise the procurement of all goods and/or
services needed in coordination with end users;
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3. Process the contracts awarded administratively and/or by
city council;
4. Whenever possible, establish standardized specifications
and consolidation of requirements for goods andlor services required by two or
more end users;
5. Sell or otherwise dispose of surplus personal property,
and lost and unclaimed property held by the Cis police department.
C. Citv Manaqer. The city manager shall be the awarding authority
for:
1. All procurement of goods and/or services for which the
cost to the City is one hundred thousand dollars ($100,000) or less;
2. All capital outlay items approved by the city council during
the budgeting process in an amount of one hundred thousand dollars
($100,000) or less;
3. All contracts for professional services of one hundred
thousand ($100,000) or less;
4. All public project contracts less than the formal bidding
threshold established by the UPCCAA;
5. All change orders, amendments or extensions to existing
agreements within the authority granted in Section 1) and 2) above;
6. All public works change orders up to the dollar amount
equal to the contingency amount set when the underlying contract was
awarded;
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7. All change orders or amendments to contracts awarded by
the city council in an amount up to twenty-five percent of the original contract
amount, including the total of all amendments, up to a limit of one hundred
thousand dollars ($100,000).
a. The city manager shall approve alternate
procurement methods, if appropriate, for use on an experimental basis, and
recommend to the city council additions, deletions or modifications to the City's
procurement methods.
b. The city manager shall have the authority to
delegate the awarding of contracts, amendments and change orders for goods
and services as set forth in this chapter by Memorandum or by Administrative
Order.
D. Citv Council. The city council shall be the awarding authority for:
1. All procurement of goods and/or services costing more
than $100,000;
2. All public works contracts at or above the formal bidding
threshold established by the UPCCAA;
3. All change orders or amendments as set forth in this
chapter;
4. All contracts using Competitive Negotiations or Requests
for Proposals for Professional Services greater than one hundred thousand
dollars ($100,000).
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3.28.050 Methods Of Procurement.
A. Small Procurements:
1. Procurements of supplies, services and equipment, the
cost of which are five thousand dollars ($5,000) or less in any one transaction,
shall be made using simplified and cost effective operational procedures and
forms approved by the clty manager, without the use of formal or informal bids.
Procurement requirements shall not be unnecessarily divided so as to
constitute several small procurements under this subsection.
6. Informal Biddinq for Supplies, Services and Eauipment:
1. The purchasing ofticer may purchase supplies, services
and equipment using the informal bidding procedures established in this
section. Informal bidding procedure may be utilized:
a. When the anticipated cost of the supplies, services
and equipment to be purchased is less than the dollar amount established for
formal bidding in Section 3.28.050(C) (1) herein; or
b. When no bids are received pursuant to the formal
bid procedures established for supplies, services and equipment; or
c. When all bids received substantially exceed the
City's estimated costs.
d. Further, the city council may designate types or
classes of supplies, services and equipment costing more than the dollar
amount established for formal bidding in Section 3.28.050(C) (1) herein;
which may be purchased through the use of informal bidding procedures
Ordinance No. NS-627 - 10 "
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whenever the city council finds that use of the informal bidding procedure is
advantageous to the City consistent with applicable law.
e. The informal bidding procedure shall be as follows:
I. The Purchasing Officer shall solicit bids by
written or oral request. Responses shall be in writing, and may be transmittable
to the purchasing officer by facsimile, by mail, electronically over the Internet,
or by any other means of delivery. When possible, a minimum of three bidders
should be solicited and the award shall be based on best value and shall be
awarded by the city manager.
C. Formal Biddina for Supplies. Services and Equipment:
1. The purchasing officer may purchase supplies, services
and equipment using the formal bidding procedures established in this section.
Formal bidding procedures may be utilized when the anticipated cost of the
supplies, services and equipment is greater than thirty thousand dollars
($30,000). The bid limit shall be reviewed annually and adjusted in response to
the San Diego - All Urban Consumers Consumer price index. The purchasing
officer shall calculate the effect of the cumulative change in the index to twenty-
fwe thousand dollars ($25,000) beginning in 1997. Adjustment to the bid limit
will be made in five thousand dollar increments whenever the calculated value
exceeds a previously set bid limit by more than two thousand five hundred
dollars ($2,500). The bid limit adjustment will be made effective at the
beginning of a fiscal year by memorandum from the Purchasing Officer.
2. Procurement requirements shall not be divided so as to
11 avoid the formal bidding requirements.
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D. The formal bidding procedures shall be as follows:
1. The purchasing officer shall issue a notice inviting bids
using one or more methods designed to provide reasonable public notice in a
manner which will permit current information to be disseminated widely. The
notice shall include:
a. instruction to bidders;
b. specifications describing the required supplies,
goods or equipment;
C. bid forms and schedules;
d. any required bond forms;
e. general provisions;
f. the time on or before which bids will be received;
g. where and with whom bids shall be filed;
h. the date, time and place where and when bids will
be publicly opened.
2. At the bidders request and/or when the City deems
feasible, bid documents may be transmitted andlor reviewed over the
Internet. The sealed formal bids shall be received by the purchasing officer at
a time, date and place designated in the bid documents. Formal bids, timely
received, will be publicly opened by the purchasing officer and the aggregate
bid pricing shall be read aloud.
3. Any person with whom the City has contracted to prepare
or assist in the preparation of bid or proposal documents is ineligible to
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submit a bid or proposal for the provision of the goods or the performance of
the services so specified in the notice inviting bids or proposals.
4. Formal bids received after the deadline for receipt of bids
shall not be accepted by the City and shall be returned to the bidder
unopened, unless opening is necessary for identification purposes. The
purchasing officer shall submit written notification to the bidder whose bid
was received after the deadline stating what the deadline was. when the bid
was actually received and that the bid is being returned because it was
received after the deadline.
5. If no bids are received or if no bids meet the
requirements as specified in the solicitation documents, the purchasing
officer may reissue the solicitation using the informal bidding procedures or
the City may cease the procurement.
6. If two or more bids are received with 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 bid it chooses.
7. In considering formal bids for supplies, services and
equipment, the awarding authority may waive minor defects or irregularities,
provided that the irregularities do not affect the bid amount or give a particular
bidder an advantage over others.
8. All bids shall be deemed rejected if no city council action
is taken on the bids or proposals within ninety (90) days after the bids have
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been received and opened, unless bidders agree to extend a bid’s effective
date upon request by the City.
9. The City shall have the authority to require a
performance bond in such amount as it finds reasonably necessary to protect
the best interests of the City consistent with applicable law. If the City
requires a performance bond, the amount of the bond shall be described in
the notice inviting bids.
IO. All contracts for supplies, services and equipment shall
be awarded based on the best value for the City.
11. Each month the city manager shall send to the city
council a report of all contracts that have been awarded administratively.
3.28.060 Competitive Neqotiations:
A. The purchasing officer may authorize the solicitation of
professional services other than those listed in Section 3.28.070, and the
purchase of highly technical supplies or equipment by competitive
negotiations when:
1. The cost of the supplies, services or equipment is greater
than five thousand dollars ($5,000); and
2. The supplies or equipment are such that suitable
technical or performance specifications are not readily available; or
3. The City is not able to develop descriptive specifications;
or
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4. Requesting proposals for the particular service or
purchase would be more advantageous to the City.
a. Whenever possible, at least three proposals shall
be received and the award will be based on the proposal that is determined to
be most' advantageous to the City, taking into consideration price and the
evaluation criteria set forth in the request for proposal. Competitive
negotiations are not intended to be used for the purpose of avoiding the
bidding procedure set forth in this chapter. The city manager shall award
contracts for goods, services or equipment less than one hundred thousand
dollars ($100,000). Each month the city manager shall send to the city council
a reportiof all competitively negotiated contracts. that have been awarded
administratively.
3.28.070 Professional Services:
A. Request for proposals shall be used when the services of
professionals are needed. The selection of specialized professional services,
including but not limited to architectural, landscape architectural, engineering,
environmental, land surveying or construction project management firms is
based on the professional qualifications necessary for the satisfactory
performance of the service required, on demonstrated competence, and on a
fair and reasonable price consistent with Government Code section 4526.
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 individual or firm
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Ordinance No. NS-627 17.
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can provide the professional services. Each month the city manager shall
send to the city council a report of all Professional Service Contracts that
have been awarded administratively.
B. The City’s professional services procurement practice prohibits
unlawful activity including, but not limited to, rebates, kickbacks, or other
unlawful consideration. No City employee shall participate in the selection
process if that employee has a relationship with a person or business entity
seeking a contract with the City that would subject that employee to the
prohibition of Government Code section 87100 (Conflicts of Interest).
3.28.080 Execution Of Chanqe Orders And Amendments:
A. No change in an agreement or contract shall be made without
the issuance of a written change order or amendment, and no payment for
any such change shall be made unless a written change order 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.
3.28.090 Cooperative Purchasinq:
A. The purchasing officer shall have the authority to join with other
public or quasi-public agencies in cooperative purchasing plans or programs
for the purchase of supplies, services and/or equipment by contract,
arrangement or agreement as allowed by law and as determined by the
purchasing officer to be in the City’s best interest. The purchasing officer may
Ordinance No. NS-627 - 16 -
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buy directly from a vendor at a price established by another public agency
when the other agency has made their purchase in a competitive manner.
3.28.100 Exemptions:
A. The following procurements, contracts or transactions are
exempted from the provisions of Chapter 3.28:
1. Emergency procurements for construction, equipment or
repairs;
2. Sole source goods or services;
3. Items required to match or be compatible with other
furnishings, materials or equipment previously purchased by the City;
4. Commodities, furnishings, types" of materials or
equipment that have been standardized for the City by the city manager or by
the city council;
5. Utility services and related charges;
6. Goods or services obtained from or through agreement
with any governmental, public or quasi-public agency;
7. Real property leases or purchases and related title and
escrow fees;
8. Insurance and bonds;
9. Advertising in magazines, newspapers or other media;
IO. Works of art, entertainment or performers;
11. Library collection materials or services or other books or
periodicals;
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12. Membership dues, conventions, training, travel
arrangements including hotels, car rentals and airfare;
13. Surplus personal property owned by another
government, public or quasi-public entity.
3.28.1 10 Construction Projects.
A. Contracts for public projects in the City shall be governed by
applicable state laws including the California Public Contract Code, Division
2, Part 1, and Division 2, Part 3, the Local Agency Public Construction Act,
which includes the adoption by the City of the alternative provisions of the
Uniform Public Construction Cost Accounting Act for use in the City.
Contracts for public projects shall also be governed by the current edition of
.the Standard Specifications for Public Works Construction and the latest.
supplement thereto, adopted by the Greenbook Committee of the Public
Works Standards, Inc., except as otherwise provided by the city council or the
city manager if the contract is within hislher authority.
1. Public projects of twenty-five thousand dollars ($25,000) or
less may be performed by City employees by force account, by negotiated
contract or by purchase order.
2. Public projects less than the amount specified in Section
22032 (b) of the California Public Contract Code may be let to contract by
informal procedures set forth in this section.
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I 3. Public projects of more than the amount specified in i Section 22032 (c) of the California Public Contract Code shall be let by formal
bidding procedure.
4. It shall be unlawful to split or separate work or projects
into smaller work orders on projects for the purpose of evading the provisions
of this chapter.
5. The city council shall adopt plans and specifications for all
public projects to be formally bid.
6. The informal bidding for construction projects procedures
shall include the following:
a. The purchasing officer shall develop a list of
qualified contractors eligible to submit bids on informal contracts awarded by
the City. The list shall be organized in accordance with the. license
classifications of the Contractor's State License Board.
b. The purchasing officer shall mail notice inviting
informal bids to all contractors on the list of qualified contractors and
construction trade journals not less than ten (IO) calendar days before bids are
due.
c. The notice inviting informal bids shall describe the
project in general terms, how to obtain more detailed information about the
project, the time, date and place for the submission of bids.
d. When the City deems feasible, bid documents may
be transmitted and/or received over the Internet.
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e. The City may in its sole discretion reject any or all
bids presented and waive any minor irregularity or informality in such bids. The
contract shall be awarded to the lowest responsible bidder. If no bids are
received though the informal procedure, the project may be performed by City
employees, by force account or negotiated contract without further complying
with this section.
f. The city manager shall award all informal contracts.
B. The formal bidding procedures for construction projects shall
include the following:
1. The purchasing officer shall mail notice inviting formal
bids for public projects to construction trade journals at least thirty (30)
calendar days before the bid opening date. The notice inviting formal bids
shall be published at least fourteen (14) calendar days before the bid opening
date i.n a newspaper of general circulation in the City. In addition to the
newspaper, the notice inviting formal bids may be advertised in any manner
which will permit the information to be widely disseminated.
2. When the City deems feasible, bid documents may be
transmitted and/or received over the Internet.
3. The City may waive any minor irregularity or informality in
such bids or may, in its sole discretion, reject all bids presented.
4. The contract shall be awarded to the lowest responsible
bidder. The city council shall award all formal contracts.
Ordinance No. NS-627
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5. If no bids are received through the formal procedure, the
project may be performed by City employees, by force account or negotiated
contract without further complying with this section.
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, 3.28.120 Execution Of Chanae Orders:
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A. The city council may by resolution authorize the city manager to
approve change orders on a project to an amount it determines appropriate for
a large, complex project.
3.28.130 Emerctencies:
A. In cases of emergency, as determined by the city council,
including, but not limited to, states of emergency defined in Government Code
Section 8558, as. may be amended' from time to time, when repair or
replacements are necessary to permit the continued conduct of the operation
or services of a public agency or to avoid danger to life or property, the city
manager may then proceed at once to replace or repair any public facility
and/or procure the necessary equipment, services and supplies, without
adopting the plans, specifications, or working details or giving notice of bids to
let contracts. Emergency work may be completed by day labor under the
direction of the city manager, or by contractor, or a combination of the two. The
city manager is delegated the power to declare a public emergency subject to
confirmation by the city council, by a four-fifths vote at its next regular meeting
following the city manager declaring a public emergency.
Ordinance No. NS-627
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EFFECTIVE DATE: This ordinance shall be effective thirty days after its
adoption, and the City Clerk shall certify the adoption of this ordinance and
cause it to be published at least once in a newspaper of general circulation in
the City of Carlsbad within fifteen days after its adoption.
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad
City Council on the 7th day of MAY ,2002, and thereaffer
PASSED AND ADOPTED at a regular meeting of the City Council of the
City of Carlsbad on the 14th day of MAY , 2002. by the
following vote, to wit:
AYES: Council Members Lewis, Kulchin, Finnila, Nygaard, Hall
NOES: None
ABSENT: None
APPROVED AS TO FORM'AND LEGALITY:
ATTEST:
(SEAL)
Ordinance No. NS-627