HomeMy WebLinkAbout2008-07-15; City Council; 19515; Amending Municipal Code Chapter 3 28 PurchasingCITY OF CARLSBAD - AGENDA BILL
AB# 19,515
MTG. 07/15/08
DEPT. FINANCE
AMENDING CARLSBAD MUNICIPAL
CODE CHAPTER 3.28 - PURCHASING
DEPT. HEAD^^V
CITYATTY.4.x^^
CITY MGR. (is^
RECOMMENDED ACTION:
Introduce Ordinance No.CS-002 repealing, in its entirety, the current Carlsbad
Municipal Code Chapter 3.28 (Purchasing), adopting the new Carlsbad Municipal Code 3.28
(Purchasing).
ITEM EXPLANATION:
A citywide team was established to review the City's purchasing systems and structures to
ensure that they supported the City's mission of providing top-quality service, while making
certain that the City is receiving the best value on all of its purchases of goods and services.
The goals of the team were to simplify the purchasing process, reduce paperwork, and allow for
more flexibility, while maintaining the process integrity and financial controls. The last time
revisions were made to the Purchasing Ordinance was May 2002.
The team had the following recommendations:
1. The Finance Department should remain as the oversight for purchasing functions.
Finance should be responsible for ordinance updates and changes, with the assistance
of the City Attorney, and the writing and updating of the purchasing manual. Finance
should also be the process owner for the overall purchasing system, including the
automated purchasing systems. Finance should, from time to time, audit purchasing
transactions completed by other departments for compliance with the City's ordinances
and guidelines set forth in the purchasing manual.
2. The formal bid process requirement should remain for purchases of supplies, equipment
and non-construction project services that are greater than $30,000, with annual
adjustments for inflation.
3. The bid process for construction project contracts should continue to follow the Uniform
Public Construction Cost Accounting Act for California (UPCCAA). The current formal bid
requirement for construction contracts is $125,000, per the UPCCAA.
DEPARTMENT CONTACT: Colette Wengenroth 760-602-2430 cweng@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
D
D
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER-SEE MINUTES
As Amended
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4. The definition of small procurements of supplies, services, and equipment should move
from $5,000 to $30,000. This would allow direct procurements up to $30,000 in
aggregate, without obtaining informal or formal quotes. However, the recommended best
management practice would be to get three informal quotes for all items.
This change would increase the efficiency of the procurement process, by reducing the
lead time in ordering and receiving products, as well as shorten the time for soliciting
services for small contracts.
During the team's review of the current process, staff found that in Fiscal Year 2005-
2006, 90% of purchase orders issued for non-construction projects were for purchases
under $30,000. The total dollar amount represented only 22% of the City's total
purchases. This change would simplify the purchasing process for a large number of the
City's orders, while impacting a much lower percentage of the actual dollars expended.
Distribution of Non-Construction Project Purchase Orders
Fiscal Year 2005-2006
Total $20,710,309 Total #1,062
5. The City Manager should remain the awarding authority for all procurements of goods
and non-construction project contracts, per agreement year, of $100,000 or less. The
City Manager should remain the awarding authority for all construction project contracts
less than the formal bidding threshold established by the UPCCAA. The current
UPCCAA formal bidding requirement is $125,000.
6. The City Manager should continue to have the authority to approve change orders under
$100,000 for non-construction project contracts per agreement year.
7. The City Manager's authority to award construction project change orders should
increase from $100,000 to the formal bid limit as defined by the UPCCAA. The limit is
currently $125,000. This would make the City Manager's awarding authority consistent
with his/her authority to award construction contracts.
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8. The City Manager should be the awarding authority for all capital outlay items approved
by City Council during the budgeting process, regardless of the dollar amount. This
would streamline the procurement process for budgeted capital outlay items over
$100,000. Currently, City Council is approving all capital items that exceed $100,000
twice. The first approval occurs during the budgeting process. The second occurs when
staff is ready to award the purchase and must get City Council's approval again, as the
procurement exceeds $100,000. This change would eliminate the duplicate review of the
purchase.
9. All procurements over the limits noted above should continue to require City Council
approval.
10. Clarify the role of the City Attorney, allowing him/her to be the awarding authority for the
procurement of legal services.
In addition, general law cities must follow the requirement of Labor Code Section 1770 et seq
regarding payment of prevailing wages for public works projects. Now that the voters of the
City of Carlsbad have determined to change the powers and duties of the City by adopting a
City Charter at the election of Tuesday, June 3, 2008, the City can make its own
determination regarding the necessity for paying prevailing wages for public works projects.
The City would still be required to follow state prevailing wage laws for projects which are of
statewide concern or if State or Federal grants are paying for the project.
The proposed amendment to the Carlsbad Municipal Code allows the City Council (or the
City Manager for smaller projects) to make a determination of whether or not it would be in
the City's best interest to require payment of prevailing wages for that particular project.
In summary, the recommendations would result in some changes to our current purchasing
ordinance. Most of the changes are minor in nature, clarifying passages. The major changes
are:
1. Increasing the definition of small procurements from $5,000 to $30,000.
• This change allows staff to make procurements for under $30,000 without
using the formal or informal bid process.
• This change will shorten the lead time for ordering and receiving products.
• This change will shorten the time for soliciting services, allowing for the
service to be completed in a more timely manner.
• This change will streamline the purchasing process for a large number of
orders, while affecting a low dollar percentage of purchases.
2. Changing the City Manager's authority to award construction project change orders
from $100,000 to the formal threshold established by the UPCCAA.
• This change would create consistency between the City Manager's
authority to award construction change orders and construction contracts.
3. Allowing the City Manager to award procurement for all budgeted capital outlay
items regardless of the dollar amount.
• This change would eliminate City Council's duplicate review of budgeted
capital outlay items over $100,000.
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4. Allowing for the determination of whether it would be in the City's best interest to
require payment of prevailing wages for a particular public works project.
FISCAL IMPACT:
Adoption of this ordinance would allow the City to receive more competitive bids on certain
public works projects which have a potential cost savings in an undetermined amount.
ENVIRONMENTAL REVIEW:
This action does not constitute a project as defined under CEQA (California Environmental
Quality Act) pursuant to Public Resources Code Section 21065 in that these amendments
would not cause any direct physical change in the environment.
EXHIBITS:
1. Proposed Ordinance - Strikeout/Underline
2. Ordinance No. CS-002 , Repealing Chapter 3.28 of the Carlsbad Municipal Code
Regulating Purchasing, Adopting Chapter 3.28 of the Carlsbad Municipal Code Regulating
Purchasing.
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12 3.28.010 Titlo.
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Exhibit 1
ORDINANCE NO. CS-002
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, REPEALING CHAPTER 3.28 OF
THE CARLSBAD MUNICIPAL CODE REGULATING
PURCHASING AND ADOPTING CHAPTER 3.28 OF THE
CARLSBAD MUNICIPAL CODE REGULATING
PURCHASING.
The City Council of the City of Carlsbad, California, does ordain as follows:
SECTION 1: That Chapter 3.28 of the Carlsbad Municipal Code is repealed in its
entirety:
CHAPTER 3.28
PURCHASING
Soctiono:
3.28.020 Purpooo.
3.28.030 Dofinitiono.
3.28.0<10 Procuromont and disposition rosponoibilitioo.
3.28.050 Methods of procuromont.
3.28.060 Compotitivo nogotiationo.
3.28.070 Profoooional oorvicoo.
16 3.28.080 Exocution of chango ordoro and amondmonto.
3.28.090 Cooporativo purchasing.
3.28.100 Exomptiono.
3.28.110 Conotruction projocto.
3.28.120 Exocution of chango ordoro.
3.28.130 Emorgoncioo.
Prior Ordinanco hiotory: Qrdo. 1008, 1171, 1107, 1205, 12*10, 1283. 1288. 1303.
21 1206, MS 2, MS 43, MS 55, MS 128, MS 133, MS 160, MS 351, MS 413, MS 105.
3.28.010 Titlo.
This chapter ohall bo known and may bo citod and roforrod to ao tho "Purchaoing
Ordinanco of tho City of Carlobad." (Ord. MS 627 (part), 2002)
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3.28.020 Purpooo.
Tho purpoooo of thio chapter aro to dofino tho centralized oyotom of tho city for tho26
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purchaoo of oupplioo, oorvicoo and oquipmont, to provide for tho fair and oquitablo
troatmont of all poroons involved in tho purchasing procooo, to obtain tho highoot
poooiblo value in oxchango for public funds and to safeguard tho quality and integrity of
tho purchaoing oyotom. (Ord. MS 627 (part), 2002)
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3 1. Boot Valuo. "Boot valuo" moano tho boot value to tho city baood on all factoro,
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Exhibit 1
3.28.030 Dofinitiono.
A. For tho purpoooo of thio chapter, tho following definitions apply:
including, but not limited to, tho following:
a. Coot;
b. Tho ability, capacity and okill of a contractor to perform a contract or
provide tho oupplioo, oorvicoo or oquipmont roquirod;
c. Tho ability of a contractor to provide tho oupplioo, oorvicoo or oquipmont
promptly or within tho timo specified without dolay or intorforoncoo;
d. Tho character, integrity, reputation, judgmont, oxporionco and officioncy
of a contractor;
o. Tho quality of a contractor'o performance on previous purchased with tho
city; and
f. Tho ability of a contractor to provide future maintonanco, ropairo, parto
and oorvicoo for tho uoo of tho oupplioo purchaood.
2. Bid, Contract or Propooal Documonto. Tho documonto, including thoir
attachmonto and addenda, which oot forth inotructiono to biddoro or propoooro and which
aro diooominatod for tho purpooo of soliciting bido or propooalo.
3. Compotitivo Bidding Excoption. Goodo, oorvicoo or oquipmont that can
obtained from only a oinglo oourco. Itomo that aro roquirod to match or bo compatiblo
with othor furniohingo, materials or oquipmont prooontly on hand. Whon a particular typo
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or mako of commodity, furniohingo, typo of matorial or oquipmont hao boon standardized
for tho city by tho city manager or tho city council.
A. Capital Outlay Itom. Equipment (fixod aoooto) with a monetary valuo
ootabliohod by tho Finance Diroctor.
5. Conotruction Projocto. Construction, roconotruction, alteration, renovation,
domolition, oroction, improvomont, painting or repainting and ropair work involving any
publicly ownod, loaood or oporatod facility.
.. 6. Contract. Agroomonto, rogardlooo of what thoy may bo labolod, botwoon tho1 o city and ono or moro othor partioo for tho purchaoo or diopooition of goodo and/or
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sorvicoo or conotruction.
•7 r*^Contractor. Any party (buoinooo) who hao ontorod into a contract with tho city
for tho provision or diopooition of goodo and/or oorvicoo.
8. End Uoor. Tho city of Carlobad or any city dopartmont/divioion roquooting
and/or oorvicoo.
0. E Procuromont. Tho uoo of oloctronic technology for tho acquisition or
diopooition of oupplioo, oorvicoo, oquipmont or conotruction.
10. Goodo. Articloo that aro movoablo at tho timo of oalo, including but not limited
to oquipmont, oupplioo and/or matorialo.
11. Gratuity. A gift, paymont, loan, advance, dopooit of money, or oorvico,
prooontod or promiood in return for or in anticipation of favorable conoidoration in tho
procuromont procooo.
12. Maintonanco Sorvicoo. Services intended to prooorvo and/or rootoro a publi
facility to a cloan. oafo, efficient and/or continually uoablo condition. Maintonanco ma
include, but io not limited to: carpentry, electrical, minor repainting, plumbing, glazing and
27 othor craftwork to prooorvo a facility in tho condition for which it wao intended; cleaning
and othor oporationo on machinery and othor oquipmont attached to a facility ao fixturoo;28
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Exhibit 1
tho mowing, pruning and trimming of lawno, graoo, trooo, ohrubo, buohoo and hodgoo;
servicing of irrigation and sprinkler oyotomo; and tho regular removal or rolocation of by
producto or waoto producto accumulated at city facilitioo.
13. Procuromont. Tho acquioition of oupplioo, oorvicoo, oquipmont or conotruction3 by tho city, including but not limitod to purchaoing, renting or loaoing, and all functiono
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and procoduroo pertaining to ouch acquioitiono.
Profoooional Sorvicoo. Sorvicoo which involve tho oxorcioo of profoooional
diocrotion and indopondont judgmont baood on advanced or opocializod knowlodgo,
oxportioo or training gainod by formal otudy or oxporionco. Such oorvicoo includo, but aro
not limitod to, thooo provided by appraiooro, architocto, attornoyo, onginooro, inotructoro,
insurance, advisoro, phyoiciano and/or othor opocializod conoultanto.
15. Purchaoing Officor. Tho purchaoing officer io tho poroon rosponoiblo for tho
procuromont of goodo and/or oorvicoo in accordanco with tho provioiono of thio chapter.
Tho poroon dooignatod by tho city managor ao tho purchaoing officer of tho city, or an
individual specifically authorized by tho purchaoing officer to act on hio or nor bohalf.
16. Qualified Producto. An approved Hot of oupplioo, oorvicoo, or conotruction
itomo doocribod by modol or catalog numboro which, prior to compotitivo oolicitation, tho
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city hao dotorminod will moot tho opocification roquiromonto.
17. Rooponoiblo Biddor. A bidder dotorminod by tho awarding authority:
a. To havo tho ability, capacity, oxporionco and okill to provide tho
and/or oorvicoo in accordanco with bid opocificationo, and if applicable;
b. To havo tho ability to provide tho goodo and/or oorvicoo promptly, or
within tho timo opocifiod, and if applicable;
c. To havo oquipmont, facilitioo and rooourcoo of such capacity and
location to onablo tho bidder to provide tho required goodo and/or oorvicoo, and if
applicable;
d. To bo able to provide future maintonanco, repair, parto and oorvico for
tho uoo of tho goodo purchased, and if applicable;
o. To havo a record of oatiofactory performance under prior contracto with
tho city or othor purchaooro whoro ouch bidder hao proviouoly boon awarded ouch
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.. contract.Io 18. Rooponoivo Biddor. A bidder dotorminod by tho city to havo oubmittod a bid or
propooal which conforms in all material roopocto to tho roquiromonto of tho bid, contract,
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or proposal documents.
10. Sorvicoo. Work performed, or labor, timo and effort oxpondod, by an
indopondont contractor.
20. Spocificationo. A doocription of tho phyoical and/or functional charactoriotico or
of tho nature of tho required goodo and/or sorvicoo.
21. Subcontractor. A contractor undertaking part of tho work of a contract undor
tho control of tho principal contractor.
£-•$22. Surplus Poroonal Property. Goodo owned by tho city which aro no longor
needed or which aro obsolete or unserviceable, or property that io a by product (scrap
metal, uood tiroo and oil etc.).
23. Uniform Public Conotruction Coot Accounting Act (UPCCAA). (California
Public Contract Codo Section 22000 ot ooq.) Section 2203Q of tho UPCCAA provides an
alternative method for bidding public works projects by public entities which tho city hao
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adopted. (Ord. MS 627 (part), 2002)
3.28.010 Procuromont and disposition responsibilities.
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Exhibit 1
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A. End Uoor. Tho ond uoor ohall:
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2. Submit to tho purchaoing officer opocificationo for tho roquirod goodo and/or
3 oorvicoo;
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1. Identify ito procuromont noodo and tho availability of funding;
3. Participate) in tho evaluation of bido and propooalo; and
<1. Inopoct goodo dolivorod and oorvicoo porformod to dotormino conformity with
tho roquiromonto oot forth in tho bid or proposal documonto and with contractual
obligationo, and authorizo payments for conforming goodo and/or oorvicoo.
B. Purchaoing Officer. Tho purchaoing officer ohall bo rooponoiblo for tho procuromont of
goodo and/or oorvicoo for tho city in accordanco with tho provioiono of thio chapter. No
procuromont of goodo and/or oorvicoo ohall bo mado contrary to tho provioiono of thio
chapter. Any agroomont or contract for tho purchaoo of oupplioo, oorvicoo and oquipmont
8 mado contrary to tho provioiono of thio chapter ohall bo void and nay claim or domand
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againot tho city baood thoroon ohall bo invalid. Tho purchaoing officer ohall:
1. Proparo and rocommond to tho city manager oporational procoduroo and formo
for tho procuromont of goodo and/or oorvicoo in cooporation with tho ond uooro and for
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tho diopooal of surpluo poroonal property;
2. Procuro or ouporvioo tho procuromont of all goodo and/or oorvicoo noodod in
coordination with ond uooro;
3. Procooo tho contracto awarded adminiotrativoly and/or by city council;
A. Whonovor poooiblo, ootablioh otandardizod opocificationo and conoolidation of
roquiromonto for goodo and/or oorvicoo roquirod by two or moro ond uooro;
5. Soil or othorwioo diopooo of ourpluo poroonal property, and loot and unclaimod
property hold by tho city'o polico dopartmont.
C. City Manager. Tho city manager ohall bo tho awarding authority for:
1. All procuromont of goodo and/or oorvicoo for which tho coot to tho city io ono
hundred thouoand dollaro or looo;
2. All capital outlay itomo approved by tho city council during tho budgeting
procooo in an amount of ono hundred thouoand dollaro or looo;
3. All contracto for profoooional oorvicoo of ono hundred thouoand or looo;
A. All public projocto contracto looo than tho formal bidding throohold ootabliohod
by tho UPCCAA;
5. All chango ordoro, amondmonto or oxtonoiono to oxioting agroomonto within tho
authority granted in oubooction (1) and (2) above;
6. All public worko chango ordoro up to tho dollar amount equal to tho contingency
amount oot when tho underlying contract wao awarded;
-7 All *chango ordoro or amondmonto to contracto awarded by tho city council in an
amount up to twenty five percent of tho original contract amount, including tho total of all
amondmonto, up to a limit of ono hundred thouoand dollaro.
a. Tho city manager ohall approve altornato procuromont mothodo, if
appropriate, for uoo on an oxporimontal baoio, and rocommond to tho city council
additiono, dolotiono or modificationo to tho city'o procuromont mothodo.
b. Tho city manager ohall have tho authority to dologato tho awarding of
contracto, amondmonto and chango ordoro for goodo and oorvicoo ao oot forth in
chapter by memorandum or by adminiotrativo order.
D. City Council. Tho city council shall bo tho awarding authority for:
27 1. All procuromont of goodo and/or oorvicoo cooting moro than ono hundred
28 thouoand dollaro;
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3 Profoooional Sorvicoo groator than ono hundred thouoand dollaro. (Ord. MS 627 (part),
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Exhibit 1
2. All public worko contracts at or abovo tho formal bidding threshold ootabliohod
by tho UPCCAA;
3. All chango ordoro or amondmonto ao oot forth in thio chaptor;
<1. All contracto uoing Compotitivo Nogotiationo or Roquooto for Propooalo for
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3.28.050 Mothodo of procuromont.
Small Procuromonto.
1. Procuromonto of oupplioo, oorvicoo and oquipmont, tho coot of which aro fivo
thouoand dollaro or looo in any ono tranoaction, ohall bo mado uoing oimplifiod and coot
offoctivo operational procoduroo and formo approved by tho city managor, without tho
8 uoo of formal or informal bido. Procuromont roquiromonto ohall not bo unnocoooarily
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divided oo ao to conotituto oovoral omall procuromonto undor thio oubooction.
B. Informal Bidding for Supplioo, Sorvicoo and Equipmont:
1. Tho purchasing officer may purchaoo oupplioo, oorvicoo and oquipmont uoing
tho informal bidding procoduroo ootabliohod in thio ooction. Informal bidding procoduro
may bo utilized:
a. Whon tho anticipated coot of tho oupplioo, oorvicoo and oquipmont to bo
purchaood io looo than tho dollar amount ootabliohod for formal bidding in Section
3.28.050(C)(1) horoin; or
b. Whon no bido aro rocoivod purouant to tho formal bid procoduroo
ootabliohod for oupplioo, oorvicoo and oquipmont; or
c. Whon all bido rocoivod oubotantially oxcood tho city'o ootimatod cooto.
d. Further, tho city council may dooignato typoo or claoooo of oupplioo,
oorvicoo and oquipmont cooting moro than tho dollar amount ootabliohod for formal
bidding in Soction 3.28.050(0) (1) horoin; which may bo purchaood through tho uoo of
informal bidding procoduroo whonovor tho city council findo that uoo of tho informal
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bidding procoduro io advantagoouo to tho city conoiotont with applicable law.
,0 o. Tho informal bidding procoduro io as followo:
IO i. Tho purchaoing officer ohall oolicit bido by written or oral roquoot.
Rooponooo ohall bo in writing, and may bo tranomittablo to tho purchasing officer
facoimilo, by mail, electronically ovor tho intornot, or by any othor moano of delivery.
Whon poooiblo, a minimum of throe biddoro should bo oolicitod and tho award ohall bo
baood on boot value and ohall bo awarded by tho city managor.
C. Formal Bidding for Supplioo, Sorvicoo and Equipmont.
1. Tho purchaoing officer may purchaoo supplies, oorvicoo and oquipmont uoing
22 tho formal bidding procoduroo ootabliohod in thio ooction. Formal bidding procoduroo
may bo utilized when tho anticipated coot of tho supplioo, oorvicoo and oquipmont io23
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greater than thirty thouoand dollaro. Tho bid limit io reviewed annually and adjuotod in
rooponoo to tho San Diogo All Urban Conoumoro Conoumor price indox. Tho purchaoing
officer ohall calculate tho effect of tho cumulative chango in tho index to twenty fivo
thouoand dollaro beginning in 1007. Adjuotmont to tho bid limit will bo mado in fivo
thouoand dollar incromonto whonovor tho calculated value oxcoodo a proviouoly oot
limit by moro than two thousand fivo hundred dollaro. Tho bid limit adjuotmont wil
mado offoctivo at tho beginning of a fiocal yoar by momorandum from tho purchaoing
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1. Tho purchasing officer ohall ioouo a notico inviting bide uoing ono or moro
3 mothodo dooignod to provide roaoonablo public notico in a mannor which will permit
Exhibit 1
2. Procuromont roquiromonto ohall not bo divided oo ao to avoid tho formal
roquiromonto.
D. Tho formal bidding procoduroo aro ao followo:
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current information to bo diooominatod widely. Tho notico ohall includo:
a. Instruction to biddoro;
b. Spocificationo doocribing tho roquirod oupplioo, goods or oquipmont;
c. Bid forms and ochoduloo;
d. Any roquirod bond formo;
o. Gonoral provioiono;
f. Tho timo on or boforo which bido will bo rocoivod;
g. Whoro and with whom bido ohall bo filod;
h. Tho dato, timo and placo whoro and whon bido will bo publicly oponod.
2. At tho biddoro roquoot and/or whon tho city doomo foaoiblo, bid documonto may
bo tranomittod and/or roviowod ovor tho Intornot. Tho ooalod formal bido ohall bo
rocoivod by tho purchasing officer at a timo, dato and placo designated in tho bid
documonto. Formal bido, timoly rocoivod, will bo publicly oponod by tho purchaoing
officer and tho aggrogato bid pricing ohall bo road aloud.
3. Any poroon with whom tho city hao contracted to proparo or aooiot in tho
preparation of bid or propooal documonto io ineligible to submit a bid or propooal for tho
provision of tho goodo or tho performance of tho oorvicoo oo opocifiod in tho notico
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inviting bido or proposals.
Formal bido rocoivod after tho doadlino for rocoipt of bids ohall not bo accoptod
by tho city and ohall bo roturnod to tho bidder unoponod, unless opening io nocoooary for
idontification purpoooo. Tho purchaoing officer ohall oubmit written notification to tho
biddor whoso bid was rocoivod aftor tho doadlino stating what tho doadlino was, whon
tho bid was actually rocoivod and that tho bid io boing roturnod bocauoo it was rocoivod
aftor tho doadlino.
5. If no bido aro rocoivod or if no bido moot tho roquiromonto ao opocifiod in tho
„„ oolicitation documonto, tho purchaoing officer may roioouo tho oolicitation using tho18
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informal bidding procoduroo or tho city may coaoo tho procuromont.
6. If two or moro bido aro rocoivod with tho samo total amount or unit prico, quality
and oorvico boing oqual, and if tho public intoroot will not permit tho dolay of
roadvortioing for bido, tho city council may in ito diocrotion accopt tho bid it chooooo.
In conoidoring formal bido for oupplioo, oorvicoo and oquipmont, tho awarding
authority may waivo minor dofocto or irrogularitioo, provided that tho irrogularitioo do not
affoct tho bid amount or givo a particular biddor an advantage ovor othoro.
8. All bido shall bo doomod rojoctod if no city council action io takon on tho bido or
propooalo within ninoty dayo aftor tho bido havo boon rocoivod and oponod, unless
biddoro agroo to oxtond a bid'o offoctivo dato upon roquoot by tho city.
0. Tho city ohall havo tho authority to roquiro a performance bond in ouch amount
ao it findo roaoonably nocoooary to protect tho boot intorooto of tho city conoiotont with
applicable law. If tho city requires a performance bond, tho amount of tho bond ohall bo
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doscribod in tho notico inviting bido.
10. All contracts for oupplioo, oorvicoo and oquipmont ohall bo awarded baood on
tho boot valuo for tho city.
27 11. Each month tho city manager shall sond to tho city council a report of all
contractc that havo boon awarded administratively. (Ord. MS 627 (part), 2002)
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1
2
Exhibit 1
3.28.060 Compotitivo nogotiationo.
Tho purchaoing officer may authorizo tho solicitation of profoosional oorvicoo other
3 than thooo liotod in Soction 3.28.070, and tho purchaoo of highly tochnical oupplioo or
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oquipmont by compotitivo nogotiationo whon:
1. Tho coot of tho oupplioo, oorvicoo or oquipmont io greater than fivo thouoand
dollaro; and
2. Tho supplies or oquipmont aro ouch that ouitablo tochnical or porformanco
opocificationo aro not roadily available; or
3. Tho city io not able to dovolop doocriptivo opocificationo; or
<1. Roquooting propooalo for tho particular oorvico or purchaoo would bo moro
advantagoouo to tho city.s a. Whonovor poooiblo, at loaot throo propooalo ohall bo rocoivod and tho
award will bo baood on tho propooal that io dotorminod to bo moot advantagoouo to tho
city, taking into conoidoration prico and tho evaluation criteria oot forth in tho roquoot for
propooal. Compotitivo nogotiationo aro not intondod to bo uood for tho purpooo of
avoiding tho bidding procoduro oot forth in thio chaptor. Tho city manager ohall award
contracts for goodo, oorvicoo or oquipmont looo than ono hundred thouoand dollaro.
Each month tho city managor ohall oond to tho city council a report of all compotitivoly
nogotiatod contracts that havo boon awarded adminiotrativoly. (Qrd. MS 627 (part), 2002)
13 3.28.070 Profoooional oorvicoo.
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A. Roquoot for propooalo ohall bo uood whon tho oorvicoo of profoooionalo aro noodod.
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Tho ooloction of opocializod—profoooional oorvicoo,—including but not limitod to
architectural, landocapo architoctural, onginooring, onvironmontal, land ourvoying or
conotruction project managomont firmo io baood on tho profoooional qualificationo
nocoooary for tho oatiofactory porformanco of tho oorvico roquirod, on domonotratod
compotonco, and on a fair and roaoonablo prico conoiotont with Covornmont Codo
ooction 4526. Whonovor poooiblo at loaot throo propooalo ohall bo rocoivod for tho
profoooional oorvico noodod. Tho purchaoing officer may waive tho roquiromonto for
oolicitation of multiple propooalo if only ono individual or firm can provide tho profoooional
oorvicoo. Each month tho city managor ohall oond to tho city council a report of all
profoooional oorvico contracto that havo boon awarded adminiotrativoly.
B. Tho city'o profoooional oorvicoo procuromont practico prohibito unlawful activity
including, but not limitod to, robatoo, kickbacko, or othor unlawful conoidoration. No city
omployoo ohall participate in tho ooloction procooo if that omployoo hao a rolationohip
22 with a poroon or buoinooo entity cooking a contract with tho city that would oubjoct that
omployoo to tho prohibition of Govornmont Codo ooction 87100 (Conflicto of Intoroot).23 (Ord. MS 627 (part), 2002)
24
3.28.080 Exocution of change ordoro and amendments.
25
No change in an agroomont or contract ohall bo mado without tho ioouanco of a written
26 change ordor or amondmont, and no payment for any ouch change ohall bo mado unlooo
a written change ordor or amondmont hao firot boon approved and oxocutod in27accordanco with thio ooction dooignating in advance tho work to bo dono and tho amount
28 of additional componoation to bo paid. (Ord. MS 627 (part), 2002)
-7-
Exhibit 1
3.28.090 Cooporativo purchasing.
Tho purchaoing officer ohall havo tho authority to join with othor public or quasi public
3 agoncioo in cooporativo purchaoing piano or programo for tho purchaoo of oupplioo,
oorvicoo and/or oquipmont by contract, arrangomont or agroomont ao allowed by law and4
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6
ao dotorminod by tho purchaoing officer to bo in tho city'o boot intoroot. Tho purchaoing
officer may buy diroctly from a vendor at a prico ootabliohod by another public agoncy
when tho othor agency hao mado thoir purchaoo in a compotitivo mannor. (Ord. MS 627O"7
(part), 2002)
3.28.100 Exomptiono.
8 A. Tho following procuromonto, contracto or tranoactiono aro oxomptod from tho
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1. Emorgoncy procuromonto for conotruction, oquipmont or ropairo;
2. Solo oourco goodo or oorvicoo;
3. Itomo roquirod to match or bo compatiblo with othor furniohingo, matorialo or
oquipmont proviouoly purchaood by tho city;
1. Commoditioo, furniohingo, typoo of matorialo or oquipmont that havo boon
otandardizod for tho city by tho city manager or by tho city council;
5. Utility oorvicoo and rolatod chargoo;
IO 6. Goodo or oorvicoo obtained from or through agroomont with any govornmontal,
public or quaoi public agoncy;
7. Roal property loaooo or purchaooo and rolatod title and oocrow fooo;
8. Inouranco and bondo;
0. Advortioing in magazinoo, nowopaporo or othor modia;
10. Worko of art, ontortainmont or porformoro;
11. Library collection matorialo or oorvicoo or othor booko or poriodicalo;
12. Momborohip duoo, convontiono, training, travel arrangomonto including hotolo,
,0 car rontalo and airfare;1o 13. Surpluo poroonal property ownod by another govornmont, public or quaoi
public ontity. (Ord. MS 627 (part), 2002)
Contracto for public projocto in tho city ohall bo govornod by applicable otato lawo
including tho California Public Contract Codo, Divioion 2, Part 1, and Divioion 2, Part 3,
tho Local Agoncy Public Conotruction Act, which includoo tho adoption by tho city of tho
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altornativo provioiono of tho Uniform Public Conotruction Coot Accounting Act for uoo in
tho city. Contracto for public projocto ohall aloo bo govornod by tho current edition of tho
Standard Spocificationo for Public Worko Conotruction and tho latoot oupplomont thoroto,
adopted by tho Groonbook Committoo of tho Public Worko Standardo, Inc., oxcopt ao
othorwioo provided by tho city council or tho city manager if tho contract io within hio/hor
authority.
1. Public projocto of twenty fivo thouoand dollaro or looo may bo performed by city
omployooo by forco account, by nogotiatod contract or by purchaoo ordor.
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1
2
Exhibit 1
2. Public projocto looo than tho amount opocifiod in Soction 22032 (b) of tho
California Public Contract Codo may bo lot to contract by informal procoduroo oot forth in
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this ooction.
3. Public projocto of moro than tho amount opocifiod in Soction 22032 (c) of tho
3 California Public Contract Codo ohall bo lot by formal bidding procoduro.
A. It ohall bo unlawful to oplit or ooparato work or projocto into omallor work ordoro
on projocto for tho purpooo of ovading tho provioiono of thio chapter.
5. Tho city council ohall adopt piano and opocificationo for all public projocto to bo
formally bid.
6. Tho informal bidding for conotruction projocto procoduroo ohall includo tho
following:
a. Tho purchaoing officer ohall dovolop a Hot of qualified contractoro oligiblo
to oubmit bido on informal contracto awarded by tho city. Tho liot ohall bo organized in
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accordanco with tho liconoo claooificationo of tho contractor'o otato liconoo board.
b. Tho purchaoing officer ohall mail notico inviting informal bido to all
contractoro on tho liot of qualified contractoro and conotruction trado journals not looo
than ton calendar dayo boforo bido aro duo.
c. Tho notico inviting informal bido ohall doocribo tho project in gonoral
tormo, how to obtain moro dotailod information about tho projoct, tho timo, dato and
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placo for tho oubmiooion of bido.
d. Whon tho city doomo foaoiblo, bid documonto may bo tranomittod and/or
rocoivod ovor tho intornot.
IO o. Tho city may in ito oolo discretion rojoct any or all bido prooontod and
waivo any minor irrogularity or informality in ouch bido. Tho contract ohall bo awarded to
tho lowoot rooponoiblo bidder. If no bido aro rocoivod though tho informal procoduro, tho
projoct may bo performed by city omployooo, by force account or nogotiatod contract
without further complying with thio ooction.
f. Tho city manager ohall award all informal contracto.
B. Tho formal bidding procoduroo for conotruction projocto ohall includo tho following:
1. Tho purchaoing officer ohall mail notico inviting formal bido for public projocto to
1g conotruction trado journalo at loaot thirty calendar dayo boforo tho bid opening dato. Tho
notico inviting formal bido ohall bo publiohod at loaot fourteen calendar dayo boforo tho
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bid opening dato in a nowopapor of gonoral circulation in tho city. In addition to tho
nowopapor, tho notico inviting formal bido may bo advortiood in any manner which
pormit tho information tot bo widely diooominatod.
ion tho city doomo foaoiblo, bid documonto may bo tranomittod and/or
rocoivod ovor tho intornot.
3. Tho city may waivo any minor irrogularity or informality in ouch bido or may, in
ito oolo diocrotion, rojoct all bido prooontod.
23 A. Tho contract ohall bo awarded to tho lowoot rooponoiblo bidder. Tho city council
ohall award all formal contracto.
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5. If no bido aro rocoivod through tho formal procoduro, tho projoct may bo
performed by city omployooo, by forco account or nogotiatod contract without further
complying with thio ooction. (Ord. NS 627 (part), 2002)
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2
Exhibit 1
3.28.120 Exocution of change ordoro.
Tho city council may by resolution authorize tho city managor to approvo change ordoro
on a project to an amount it dotorminoo appropriato for a largo, complox project. (Qrd.
3 MS 627 (part), 2002)
4 3.28.130 Emorgoncioo.
5
In caooo of omorgoncy, ao dotorminod by tho city council, including, but not limitod to,
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otatoo of omorgoncy dofinod in Govornmont Codo Soction. 8558, ao may bo amondod
from timo to timo, whon repair or roplacomonto aro nocoooary to pormit tho continuod
conduct of tho operation or oorvicoo of a public agoncy or to avoid dangor to lifo or
property, tho city managor may thon procood at onco to roplaco or repair any public
facility and/or procuro tho nocoooary oquipmont, oorvicoo and oupplioo, without adopting
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tho piano, opocificationo, or working dotailo or giving notico of bido to lot contracto.
Emorgoncy work may bo complotod by day labor undor tho diroction of tho city managor,
or by contractor, or a combination of tho two. Tho city managor io dologatod tho powor to
doclaro a public omorgoncy oubjoct to confirmation by tho city council, by a four fiftho
voto at ito noxt rogular mooting following tho city managor doclaring a public omorgoncy.11
(Ord. MS 627 (part), 2002)
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SECTION 2: That Chapter 3.28 of the Carlsbad Municipal Code is enacted in its entirety
and reads as follows:
CHAPTER 3.28
PURCHASING
Sections:
18 3.28.010 Title.
3.28.020 Purpose.
3.28.030 Definitions.
3.28.040 Procurement and Disposition Responsibilities.
3.28.050 Procurement of Goods.
3.28.060 Procurement of Professional Services and Services.
3.28.070 Competitive Negotiations for GoodsT Services and Professional
Services.
3.28.080 Construction Projects.
3.28.090 Execution of Change Orders and Amendments.
3.28.100 Cooperative Purchasing.
3.28.110 Exemptions.
3.28.120 Emergencies.
3.28.130 Prevailing Wages.
3.28.140. Severabilitv
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Exhibit 1
3.28.010 Title.
This chapter shall be known and mav be cited and referred to as the "Purchasing
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Ordinance of the Citv of Carlsbad."3
4 3.28.020 Purpose.
The purposes of this chapter are to define a uniform system for the purchase of supplies.
Services and equipment bv the Citv. 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
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SVSt€
8 3.28.030 Definitions.
g
A. For the purposes of this chapter, the following definitions apply:
1. Awarding Authority. "Awarding Authority" means the entity who has the
power to legally assign work, accept Bids and bind the Citv to a Contract:
2. Best Value. "Best Value" means the Best Value to the Citv based on all
factors that mav include the following:12 a. Cost:
,, b. The ability, capacity and skill of a Contractor to perform a Contract orIO
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provide the supplies. Services or eguipment reguired:
c. The ability of a Contractor to provide the supplies. Services or
eguipment promptly or within the time specified without delay or interferences:
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efficiency of a Contractor:
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d. The character, integrity, reputation, judgment, experience and
e. The gualitv of a Contractor's performance on previous
purchases/Services with the Citv: and17f. The ability of a Contractor to provide future maintenance, repairs.
,Q parts and Services for the use of the Goods and Services purchased.lo 3. Bid. Contract or Proposal Documents. "Bid. Contract or Proposal
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Documents" means 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.
4. Capital Outlay Item. "Capital Outlay Item" means Fixed Asset Eguipment
with a monetary value that meets or exceeds an amount established bv the Finance
5. Construction Projects. "Construction Projects" or "Construction" means
23 those public projects defined in California Public Contract Code section 22002(c).
6. Contract. "Contract" is svnonvmous to "Agreement" and, regardless of
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which term is used, it means an agreement between the Citv and one or more other
parties for the purchase or disposition of Goods. Services. Professional Services, and/or
Construction Projects.
7. Contractor. "Contractor" includes vendor and means any business
entitv/partv that has entered into a Contract with the Citv for the provision or disposition
of Goods. Services. Professional Services, and/or Construction Projects.
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1
Exhibit 1
8. End User. "End User" means the Citv of Carlsbad and includes, anv Citv
department/division requesting Goods. Services. Professional Services, and/or
2 Construction Projects.
9. Fixed Asset Equipment. "Fixed Asset Equipment" means equipment of a
3 permanent nature that has a useful life of more than one year and meets or exceeds a
4 monetary value established bv the Finance Director.
10. Goods. "Goods" means articles or items that are moveable at the time of
5 sale, including but not limited to equipment, supplies and/or materials.
11. Procurement. "Procurement" or "Procure" means the acquisition of Goods.
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Services. Professional Services, or Construction Projects bv the Citv. including but not
limited to purchasing, renting or leasing, and all functions and procedures pertaining to
such acquisitions.
12. Professional Services. "Professional Services" means the Procurement of
Services that involve the exercise of professional discretion and independent Judgment
9 based on advanced or specialized knowledge, expertise or training gained bv formal
study or experience. Such Professional Services include, but are not limited to. Services
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provided bv appraisers, architects, engineers, instructors, insurance advisors, physicians
and/or other specialized consultants. Professional Services includes, but is not limited to.
those professionals as defined in California Government Code section 4526.
Professional Services does not include attorney/legal services.
13. Purchasing Officer. "The Purchasing Officer" means the person(s)
responsible for the Procurement of Goods, Services. Professional Services, and/or
Construction Projects in accordance with the provisions of this chapter. The person(s)
14 designated, in writing, bv the Citv Manager as the Purchasing Officer of the Citv. or an
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individual specifically authorized bv the Purchasing Officer to act on his or her behalf.
14. Responsible Bidder. "Responsible Bidder" means a bidder determined bv
the Awarding Authority:
a. To have the ability, capacity, experience and skill to provide the
Goods. Services. Professional Services, and/or Construction Projects in accordance with
Bid Specifications, and if applicable:
.„ b. To have the ability to provide the Goods. Services. Professional
1 o Services, and/or Construction Projects promptly, or within the time specified, and if
applicable:
c. To have equipment, facilities and resources of such capacity and
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for the use of the Goods and/or Construction Projects purchased, and if applicable:22
location to enable the bidder to provide the required Goods. Services. Professional
Services, and/or Construction Projects and if applicable:
d. To be able to provide future maintenance, repair, parts and Service
e. To have a record of satisfactory performance under prior Contracts
23 with the Citv or other purchasers where such bidder has previously been awarded such
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Contract.
15. Responsive Bidder. "Responsive Bidder" means a bidder determined bv
the Awarding Authority to have submitted a complete Bid or proposal which conforms in
all material respects to the requirements of the Bid. Contract, or other proposal
doci
16. Services. "Services" means work performed, or labor, time and effort
expended, bv the Contractor.
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1
2
Exhibit 1
17. Specifications. "Specifications" means the description of the physical
and/or functional characteristics or of the nature of the required Goods. Services.
Professional Services, and/or Construction Projects.
18. Surplus Personal Property. "Surplus Personal Property" means Goods that
3 are owned bv the Citv and which are no longer needed or which are obsolete or
4 unserviceable, or property that is a bv-product (e.g. scrap metal, used tires and oil, etc.).
19. UPCCAA. "UPCCAA" means Uniform Public Construction Cost Accounting
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Act. (California Public Contract Code Section 22000. et sea.)
3.28.040 Procurement and Disposition Responsibilities.
A. End User. The End User shall:
1. Identify its Procurement needs and the availability of funding: and82. Submit to the Purchasing Officer Specifications for the required Goods.
9 Services. Professional Services, and/or Construction Projects: and
3. Participate in the evaluation of Bids and proposals: and
10 4. Inspect Goods delivered. Services performed. Professional Services
rendered, and/or Construction Projects to determine conformity with the requirements set
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forth in the Bid or Proposal Documents and with contractual obligations, and authorize
payments for conforming Goods. Services. Professional Services, and/or Construction
Projects.
B. Purchasing Officer. The Purchasing Officer shall be responsible for the Procurement
of Goods. Services. Professional Services, and/or Construction Projects for the Citv in
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accordance with the provisions of this chapter. Except as provided for herein, no
Procurement shall be made contrary to the provisions of this chapter. Any Agreement or
Contract for the purchase of Goods. Services. Professional Services, and/or
Construction Projects made contrary to the provisions of this chapter shall be void and
anv claim or demand against the Citv based thereon shall be invalid. The Purchasing
Officer shall:
1. Prepare and recommend to the Citv Manager operational procedures and
,0 forms for the Procurement of Goods. Services. Professional Services, and/or1 O Construction Projects in cooperation with the End Users and for the disposal of Surplus
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Personal Property:
2. Procure or supervise the Procurement of all Goods. Services. Professional
Services, and/or Construction Projects needed in coordination with End Users:
3. Process the Contracts awarded administratively and/or bv Citv Council:
4. Whenever possible, establish standardized specifications and consolidation
of reguirements for Goods and/or Services reguired bv two or more End Users:
5. Sell or otherwise dispose of Surplus Personal Property, and lost and
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23 unclaimed property held bv the City's police department.
C. Citv Manager. The Citv Manager shall be the Awarding Authority for:
1. All Procurement of Goods for which the cost to the Citv is one hundred
thousand dollars ($100.000) or less:
2. All Capital Outlay Items approved bv the Citv Council during the budgeting
process regardless of the dollar amount:
3. All Contracts for Services and Professional Services of one hundred
thousand ($100.000) or less per Agreement year:
27 4. All Construction Project Contracts less than the formal bidding threshold
established by the UPCCAA:
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Exhibit 1
5. Any change order, amendment or extension to an existing Contract which
when added to the Contract amount, including prior change orders, is within the authority
granted in Sections 1. 2. 3 and 4 above:
6. Any Construction Project change order UP to the dollar amount equal to the3contingency amount set when the underlying Contract was awarded:
4 7. Anv Construction Project change order in which the total amount of the
original Contract and all amendments and change orders are less than the formal bidding
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threshold established bv the UPCCAA:
JL Anv change order or amendment to a non-Construction Project Contract
awarded bv the Citv Council in an amount UP to twenty-five percent of the original
Contract amount, including the total of all amendments and change orders. UP to a limit
of one hundred thousand dollars ($100.000) per Agreement year.
9. Anv extensions to a Contract awarded bv the Citv Council as delegated in
8 the Contract or the approving resolution.
9 10. The Citv Manager shall approve alternate Procurement methods, if
appropriate, for use on an experimental basis, and recommend to the Citv Council
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additions, deletions or modifications to the City's Procurement methods.
11. The Citv Manager shall have the authority to delegate the awarding of
Contracts, amendments and change orders for Goods. Services. Professional Services.
and/or Construction Projects as set forth in this chapter bv Memorandum or bv
Administrative Order.
12. Each month the Citv Manager shall send to the Citv Council a report of all
Contracts that have been awarded over the formal Bidding reguirement.
14 D. Citv Council. The Citv Council shall be the Awarding Authority for:
1. Anv Procurement of Goods. Services and/or Professional Services costing
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more than $100.000 per agreement year:
2. Anv Construction Project Contract at or above the formal bidding threshold
established bv the UPCCAA:
3. Anv change order or amendment that exceeds the Citv Manager's
authority.
18 E. Citv Attorney. The Citv Attorney may be the Awarding Authority for the Procurement of
legal services, regardless of the dollar amount. UP to the amount of appropriations
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available.
3.28.050 Procurement Of Goods.
A. Small Procurements:
1. Procurements of Goods where the total cost of Goods are thirty thousand
dollars ($30.000) or less in anv one transaction, shall be made using simplified and cost
23 effective operational procedures and forms approved bv the Citv Manager. The use of
formal or informal Bids is not reguired. but is considered the best management practice.
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The small Procurement limit shall be reviewed and adjusted annually per the procedures
set forth in Section 3.28.050(0(1). Procurement reguirements shall not be divided so as
to constitute several small Procurements under this subsection.
B. Informal Bidding for Goods:
1. Informal bidding procedure shall be utilized:
a. When the anticipated cost of the Goods to be purchased is less than
27 the dollar amount established for formal bidding for Goods in Section 3.28.05Q(C^
28 herein: or
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1
2
Exhibit 1
5. Any change order, amendment or extension to an existing Contract which
when added to the Contract amount, including prior change orders, is within the authority
granted in Sections 1. 2. 3 and 4 above:
6. Anv Construction Project change order UP to the dollar amount equal to the
3 contingency amount set when the underlying Contract was awarded;
4 7. Anv Construction Project change order in which the total amount of the
original Contract and all amendments and change orders are less than the formal bidding
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threshold established bv the UPCCAA:
JL Anv change order or amendment to a non-Construction Project Contract
awarded bv the Citv Council in an amount UP to twenty-five percent of the original
Contract amount, including the total of all amendments and change orders. UP to a limit
of one hundred thousand dollars ($100.000) per Agreement year.
9. Anv extensions to a Contract awarded bv the City Council as delegated in
8 the Contract or the approving resolution.
9 10. The Citv Manager shall approve alternate Procurement methods, if
appropriate, for use on an experimental basis, and recommend to the Citv Council
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additions, deletions or modifications to the City's Procurement methods.
11. The Citv Manager shall have the authority to delegate the awarding of
Contracts, amendments and change orders for Goods. Services. Professional Services.
and/or Construction Projects as set forth in this chapter bv Memorandum or bv
Administrative Order.
12. Each month the Citv Manager shall send to the Citv Council a report of all
10 Contracts that have been awarded over the formal Bidding reguirement.
14 D. Citv Council. The Citv Council shall be the Awarding Authority for:
1. Anv Procurement of Goods. Services and/or Professional Services costing
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more than $100.000 per agreement year:
2. Anv Construction Project Contract at or above the formal bidding threshold
established bv the UPCCAA:
3. Anv change order or amendment that exceeds the Citv Manager's
authority.
... E. City Attorney. The Citv Attorney mav be the Awarding Authority for the Procurement of18legal services, regardless of the dollar amount. UP to the amount of appropriations
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19 availab^
3.28.050 Procurement Of Goods.
A. Small Procurements:
1. Procurements of Goods where the total cost of Goods are thirty thousand
22 dollars ($30.000) or less in any one transaction, shall be made using simplified and cost
23 effective operational procedures and forms approved bv the Citv Manager. The use of
formal or informal Bids is not reguired. but is considered the best management practice.
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The small Procurement limit shall be reviewed and adjusted annually per the procedures
set forth in Section 3.28.050(0(1). Procurement reguirements shall not be divided so as
to constitute several small Procurements under this subsection.
B. Informal Bidding for Goods:
1. Informal bidding procedure shall be utilized:
a. When the anticipated cost of the Goods to be purchased is less than
27 the dollar amount established for formal bidding for Goods in Section 3.28.050(0 (1)
28 herein: or
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Exhibit 1
b. When no Bids are received pursuant to the formal Bid procedures
established: or
c. When all Bids received substantially exceed the City's estimated
costs, as determined bv the Purchasing Officer through the formal bidding procedure.
d. The Citv Council may designate types or classes of Procurements
. costing more than the dollar amount established for formal bidding in Section43.28.050(0) (1) herein: which mav be purchased through the use of informal bidding
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procedures whenever the Citv Council finds that use of the informal bidding procedure is
advantageous to the Citv consistent with applicable law.
2. The informal bidding procedure shall be as follows:
a. Bids shall be obtained bv written or oral request.
7 b. When possible, a minimum of three bidders should be solicited.
c. Best Value criteria, if used, must be determined before Bids/quotes8are published or distributed to potential bidders/suppliers.
9 d. Responses shall be in writing, and mav be transmitted bv facsimile.
bv mail, electronically over the Internet, or bv anv other means of delivery as described in
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the Bid Documents.
e. The award shall be based on Best Value to the Citv or the lowest Bid
submitted bv a Responsive Bidder, as determined bv the Purchasing Officer, and shall
be awarded bv the Citv Manager.
C. Formal Bidding for Goods:
1. Formal bidding procedures shall be utilized when the anticipated cost of the
Goods is greater than thirty thousand dollars ($30.000). The Bid limit shall be reviewed
14 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
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the index to thirty thousand dollars ($30.000) beginning in Fiscal Year 2009. Adjustment
to the bid limit will be made in five thousand dollar increments ($5.000) whenever the
calculated value exceeds a previously set bid limit bv more than two thousand five
hundred dollars ($2.500). The bid limit adjustment will be made effective at the beginning
of a fiscal year bv memorandum from the Purchasing Officer.
2. Procurement reguirements shall not be divided so as to avoid the formal
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bidding reguirements.
3. The formal bidding procedures shall be as follows:
a. The Purchasing Officer, or his/her designee. 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:
i. instruction to bidders:
ii. Specifications describing the required Goods:
iii. Bid forms and schedules:
iv. anv reguired bond forms:
v. general Contract provisions:
vi. the time on or before which Bids will be received:
vii. where and with whom Bids shall be filed:
viii. the date, time and place where and when Bids will be publicly
opened:
ix. statement of Bidders exceptions.27 b. The sealed formal Bids shall be received bv the Purchasing Officer.
OQ or his/her designee. at a time, date and place designated in the Bid documents. Formal/o
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Exhibit 1
Bids, timely received, will be publicly opened bv the Purchasing Officer, or his/her
desianee. and the aggregate Bid pricing shall be read aloud.
c. Anv person or entity with whom the Citv has contracted to prepare or
assist in the preparation of Bid or Proposal Documents is ineligible to submit a Bid or
3 Proposal for the provision of the Goods so specified in the notice inviting Bids or
4 Proposals.
d. Formal Bids received after the deadline for receipt of Bids shall not
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be accepted bv the Citv and shall be returned to the bidder unopened, unless opening is
necessary for identification purposes. The Purchasing Officer, or his/her desianee. 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.
4. If no Bids are received or if no Bids meet the reguirements as specified in
8 the solicitation documents, the Purchasing Officer may reissue the solicitation using the
9 informal bidding procedures, negotiate a Contract based upon the solicitation, without
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further complying with this section or the Citv mav cease the Procurement.
5. If two or more Bids are received with the same total amount or unit price.
gualitv and service being egual. and if the public interest will not permit the delay of re-
advertising for Bids, the Citv Council, or the Citv Manager if the Procurement is under
one hundred thousand dollars ($100.000). mav exercise sound discretion and accept the
Bid it chooses.
6. In considering formal Bids for Goods, the Awarding Authority mav waive
minor defects or irregularities, provided that the irregularities do not affect the Bid amount
14 or give a particular bidder an advantage over others.
7. All Bids shall be deemed rejected if no Citv Council or Citv Manager action
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is taken on the Bids or proposals within ninety (90) davs after the Bids have been
received and opened, unless bidders agree to extend a Bid's effective date upon reguest
bv the Citv.
D. Additional Responsibilities and Authorities:
1. The Citv shall have the authority to reguire a performance bond in such
,0 amount as it finds reasonably necessary to protect the best interests of the Citv1oconsistent with applicable law. If the Citv reguires a performance bond, the amount of the
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bond shall be described in the notice inviting Bids and Bid Proposal Documents.
2. All Contracts mav be awarded based on the Best Value for the Citv. Best
Value criteria, if used, must be determined before Bids/guotes are published or
distributed to potential bidders/suppliers.
3. The Citv Manager shall be the Awarding Authority for Procurement of
Goods for which the cost to the Citv is one hundred thousand dollars ($100.000) or less.
4. The Citv Manager shall be the Awarding Authority for all Capital Outlay
Items approved bv the Citv Council during the budgeting process regardless of the dollar
amount.
5. The Citv Council shall be the Awarding Authority for Procurement of Goods
for which the cost to the Citv is more than one hundred thousand dollars ($100.000') and
have not been previously approved as Capital Outlay items in the budget process.
E. The City's Goods Procurement practice prohibits unlawful activity including, but not
limited to. rebates, kickbacks, or other unlawful consideration. No Citv employee shall
participate in the selection process if that employee has a relationship with a person or
27 business entity seeking a Contract with the Citv that would subject that employee to the
OQ prohibition of Government Code section 87100 (Conflicts of Interest).zo
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A. Professional Services Procurement:3
Exhibit 1
3.28.060 Procurement Of Professional Services and Services.
1. Request for Proposals should be used when Professional Services are
4 needed. The selection of Professional Services for, private architectural, landscape
architectural, engineering, environmental, land surveying or Construction Project
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management firms should be based on the professional qualifications necessary for the
satisfactory performance of the Professional Services required, on demonstrated
competence, and on a fair and reasonable price consistent with Government Code
section 4526.
2. Procurements of Professional Services where the total cost of Services are
thirty thousand dollars ($30.000) or less shall be made using simplified and cost effective
operational procedures and forms approved bv the Citv Manager. If the cost of needed
9 Professional Services is expected to exceed $30.000. at least three proposals should be
solicited for the Professional Service needed whenever possible. The Purchasing Officer
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mav waive the requirements for solicitation of multiple proposals if only one individual or
firm can reasonably provide the Professional Services, and it is in the best interest of the
Citv to waive the requirement.
B. Small Procurements of Services:
1. Procurements of Services where the total cost of Services are thirty
thousand dollars ($30.000) or less in any one transaction, shall be made using simplified
l o and cost effective operational procedures approved bv the Citv Manager and forms
14 approved bv the Citv Manager. The use of formal or informal Bids is not required, but is
considered the best management practice. The small Procurement limit shall be
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reviewed and adjusted annually per the procedures set forth in Section 3.28.05Q(CW1').
Procurement of Services requirements shall not be divided so as to constitute several
small Procurements under this subsection.
C. Informal Bidding for Services:
1. Informal bidding procedure, as set forth in Section 3.28.050(BK2) mav be
18 utilized:
a. When no Bids are received pursuant to the formal Bid procedures
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established: or
b. The Citv Council mav designate types or classes of Procurements
costing more than the dollar amount established for formal bidding in Section
3.28.060(D)(1) herein: which mav be purchased through the use of informal bidding
procedures whenever the Citv Council finds that use of the informal bidding procedure is
advantageous to the Citv consistent with applicable law.22 D. Formal Bidding for Services:
1. Formal bidding procedures shall be utilized when the anticipated cost of the
Services is greater than thirty thousand dollars ($30.000). The Bid limit shall be reviewed
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annually and adjusted in response to the San Dieao - All Urban Consumers Consumer
Price Index. The Purchasing Officer shall calculate the effect of the cumulative change in
the index to thirty thousand dollars ($30.000) beginning in Fiscal Year 2009. Adjustment
to the bid limit will be made in five thousand dollar increments ($5.000) whenever the
calculated value exceeds a previously set bid limit bv more than two thousand five
hundred dollars ($2.500). The bid limit adjustment will be made effective at the beginning
27 of a fiscal year bv memorandum from the Purchasing Officer.
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Exhibit 1
2. Procurement requirements shall not be divided so as to avoid the formal
bidding requirements.
3. The formal bidding procedures and requirements shall be as set forth in
Section 3.28.Q50(C) and Section 3.28.050(0).
4. The Citv Manager shall be the Awarding Authority for Procurement of
. Services and Professional Services for which the cost to the Citv is one hundred4
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thousand dollars ($100.000) or less per Agreement year.
5. The Citv Council shall be the Awarding Authority for Procurement of
Services and Professional Services for which the cost to the Citv is more than one
hundred thousand dollars ($100.000) per Agreement year.
E. The City's Services and Professional Services Procurement practice prohibits
unlawful activity including, but not limited to. rebates, kickbacks, or other unlawful
8 consideration. No Citv employee shall participate in the selection process if that
9 employee has a relationship with a person or business entity seeking a Contract with the
Citv that would subject that employee to the prohibition of Government Code section
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87100 (Conflicts of Interest).
3.28.070 Competitive Negotiations for Goods. Services, and Professional Services.
A. The Purchasing Officer mav authorize the solicitation of Services and/or Professional
Services other than those listed in Section 3.28.060. and the purchase of highly
10 specialized Goods bv competitive negotiations when:
14 1. The cost of the Goods. Services and/or Professional Services is greater
than the dollar amount established for formal bidding in Section 3.28.050(0(1) and
Section 3.28.060(0X1): and
2. The Goods are such that suitable technical or performance Specifications
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Services less than one hundred thousand dollars ($100.000) per Agreement year.22
are not readily available: or
3. The Citv is not able to develop descriptive Specifications: or
4. Reguesting proposals for the particular Service or Goods to be procured
would be more advantageous to the Citv.
B. 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 Citv. taking
into consideration price and the evaluation criteria set forth in the reguest for proposal.
Competitive negotiations are not intended to be used for the purpose of avoiding the
bidding procedure set forth in this chapter.
C. The Citv Manager or his/her designee shall award Contracts for Goods and/or
D. The Citv Council shall award Contracts for Goods and/or Services over one hundred
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23 thousand dollars ($100.000) per Agreement year.
3.28.080 Construction Projects.
A. Except where specifically exempted from such laws bv ordinance of the Citv Council.
Contracts for Construction Projects in the Citv shall be governed bv 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 bv the Citv of the
alternative provisions of the Uniform Public Construction Cost Accounting Act for use in
28 the Citv. Contracts for Construction Projects shall also be governed bv the current edition
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Exhibit 1
of the Standard Specifications for Public Works Construction and the latest supplement
thereto, adopted bv the Greenbook Committee of the Public Works Standards. Inc..
except as otherwise provided bv the Citv Council or the Citv Manager if the Contract is
within his/her authority.
1. Construction Projects less than the amount specified in Section 22032 (a)
. of the California Public Contract Code mav be performed bv Citv employees bv force4
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account, bv negotiated Contract or bv purchase order.
2. Construction Projects less than the amount specified in Section 22032 (b)
of the California Public Contract Code mav be let to Contract bv informal procedures set
forth in this section.
3. Construction Projects of more than the amount specified in Section 22032
7 (c) of the California Public Contract Code shall be let bv formal bidding procedure.
4. It shall be unlawful to split or separate work or projects into smaller work8orders on projects for the purpose of evading the provisions of this chapter.
9 5. The Citv Council shall adopt plans and Specifications for all Construction
Projects to be formally bid when the value exceeds the limits established bv the UCCAA.
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6. The informal bidding for Construction Projects procedures shall include the
following procedures:
a. The Purchasing Officer or his/her desianee shall develop a list of
qualified Contractors eligible to submit Bids on informal Contracts awarded bv the Citv.
The list shall be organized in accordance with the license classifications of the
Contractor's State License Board.
b. The Purchasing Officer or his/her desianee shall mail notice inviting
14 informal Bids to all Contractors on the list of qualified Contractors and construction trade
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journals not less than ten (10) 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, and whether or not the project will reguire the payment
of prevailing wages.
d. When the Awarding Authority deems feasible. Bid Documents mav
H0 be transmitted and/or received over the Internet.18 e. The Awarding Authority mav in its sole discretion reject anv or all
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Bids presented and waive anv minor irregularity or informality in such Bids. The Contract
shall be awarded to the lowest Responsive. Responsible Bidder. If no Bids are received
through the informal procedure, the project mav be performed bv Citv employees, bv
force account or negotiated Contract without further complying with this section.
f. The Citv Manager or his/her designee shall award all informal
Contracts.
7. The formal bidding procedures for Construction Projects shall include the
23 following:
a. The Purchasing Officer, or his/her delegate, shall mail notice inviting
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formal Bids for Construction 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 davs before the Bid opening date in a
newspaper of general circulation in the Citv. In addition to the newspaper, the notice
inviting formal Bids mav be advertised in anv manner which will permit the information to
be widely disseminated.27 b. When the Awarding Authority deems feasible. Bid Documents mav
_0 be transmitted and/or received over the Internet.zo
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Exhibit 1
c. The Awarding Authority mav waive any minor irregularity or
informality in such Bids or mav. in its sole discretion, reject all Bids presented.
d. The Contract shall be awarded to the lowest Responsive.
Responsible Bidder.3 e. If no Bids are received through the formal procedure, the project
. mav be performed bv Citv employees, bv force account or negotiated Contract without4
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further complying with this section.
f. The Citv Council shall award all formal Contracts.
3.28.090 Execution Of Change Orders And Amendments.
A. No amendment to an Agreement or Contract shall be made without the issuance of a
written change order or amendment, and no payment for any such change orO ..i i -T-ii ii ^^^^= i i . I....—.1.11 i ,-Tjji-ii-iiii rnr- r - ' , , , " , , 1 J ', "."'~i'r"i'nr.i^;7 J —• iTVi.rf- SSS^afc - ^=
amendment shall be made unless a written change order or amendment has first been
9 approved and executed in accordance with this section designating in advance the work
10
to be done and the amount of additional compensation to be paid.
B. The Citv Council mav bv resolution authorize the Citv Manager to approve change
orders on a project to an amount it determines appropriate for a large, complex project.
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3.28.100 Cooperative Purchasing.
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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 Goods and/or
Services bv Contract, arrangement or Agreement as allowed bv law and as determined
bv the Purchasing Officer to be in the City's best interest. The Purchasing Officer mav
buv directly from a vendor at a price established bv another public aaencv when the
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other aaencv has made their purchase in a competitive manner.
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3.28.110 Exemptions.
„„ A. The following Procurements. Contracts or transactions are exempted, as determinedno
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bv the Awarding Authority, from the provisions of Chapter 3.28:
1. Emergency Procurements for Construction. Goods or Services:
2. Goods. Services and/or Professional Services that can be reasonably
obtained from only a single source:
3. Items required matching or being compatible with other Goods, furnishings.
materials or equipment previously purchased bv the Citv:
4. Goods, furnishings, types of materials or eguipment that have been22standardized for the Citv bv the Citv Manager or bv the Citv Council:
23 5. Utility Services and related charges:
6. Goods. Services and/or Professional Services obtained from or through
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Agreement with any governmental, public or guasi-public agencv:
7. Real property leases or purchases and related title and escrow fees:
8. Insurance and bonds:
9. Advertising in magazines, newspapers or other media:
10. Works of art, entertainment or performers:
11. Library collection materials or Services or other books or periodicals:27 12. Membership dues, conventions, training, travel arrangements including
28 hotels, car rentals and airfare:
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Exhibit 1
13. Surplus Personal Property owned bv another government, public or quasi-
public entity.
14. Situations where solicitations of Bids or proposals for Goods. Services
and/or Professional Services would be. in the discretion of the Awarding Authority.
3 impractical, unavailing, impossible, or not in the best interests of the Citv.
4 3.28.120 Emergencies.
5
In cases of emergency, as determined bv the Citv Council, including, but not limited to.
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states of emergency defined in Government Code Section 8558. as mav 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 aaencv or to avoid danger to life or
property, the City Manager mav then proceed at once to replace or repair anv public
facility or infrastructure and/or Procure the necessary Goods and/or Services adopting
the plans. Specifications, or working details giving notice of Bids to let Contracts.
Emergency work mav be completed bv dav labor under the direction of the Citv Manager.
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or bv Contractor, or a combination of the two. The Citv Manager is delegated the power
to declare a public emergency subject to confirmation bv the Citv Council, bv a four-fifths
vote at its next regular meeting following the Citv Manager declaring a public emergency.
3.28.130 Prevailing Wages
13 A This section is intended to supersede the provision of the Public Contract Code
14 and Labor Code reguiring payment of prevailing wages, and, except as expressly set
forth in this section, the provisions of the Public Contract Code and the Labor Code
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pertaining to prevailing wages shall have no application to Construction Contracts of the
Citv of Carlsbad or its agencies.
B. Payment of prevailing wages pursuant to Labor Code Section 1770 and
compliance with the prevailing wage reguirements of Labor Code Section 1770 et seg.
shall not be reguired for anv public works entered into bv the Citv or anv of its agencies
.„ except when reguired as a condition of anv Federal or State grants and on other projectsTo
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determined bv the Citv Council to be of statewide concern.
1. For each public project of less than the amount specified in Section 22032
(b) of the California Public Contract Code, the Citv Manager shall determine whether or
not it is in the City's best interest to reguire prevailing wages for that project and that
determination shall be included in the notice inviting Bids.
2. For each Construction Project of more than the amount specified in Section
22032 (b) of the California Public Contract Code, the City Council shall determine
22 whether or not it is in the City's best interest to reguire prevailing wages for the project
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23 and that determination shall be included in the notice inviting bids.
3.28.140. Severabilitv
If anv section, subsection, sentence, clause or phrase of this Chapter is for anv
reason held invalid or unconstitutional bv the decision of anv court of competent
jurisdiction, the decision will not affect the validity of the remaining portions of this
Chapter. The Citv Council declares that it would have passed the ordinance
codified in this Chapter and each section, subsection, sentence, clause or phrase
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Exhibit 1
1 contained in it irrespective of the fact that anv one or more sections, subsections.
sentences, clauses or phrases are declared invalid or unconstitutional.2
EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption
or upon completion of the legal process of becoming chartered, whichever is later, and4
the City Clerk shall certify the adoption of this ordinance and cause it to be published at
O
least once in a newspaper of general circulation in the City of Carlsbad within fifteen
6
days after its adoption or chartered.
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City8
Council on the day of , 2008, and thereafter.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Carlsbad on the day of , 2008, by the following vote, to with:
AYES:
NOES:
ABSENT:
4e APPROVED AS TO FORM AND LEGALITY16
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18 RONALD R. BALL, City Attorney
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ATTEST:
CLAUDE A. LEWIS, Mayor
LORRAINE M. WOOD, City Clerk
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Exhibit 2
ORDINANCE NO. CS-002
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, REPEALING EXISTING
CHAPTER 3.28 OF THE CARLSBAD MUNICIPAL CODE
REGULATING PURCHASING AND ADOPT A NEW
CHAPTER 3.28 OF THE CARLSBAD MUNICIPAL CODE
REGULATING PURCHASING.
The City Council of the City of Carlsbad, California, does ordain as follows:
SECTION 1: That existing Chapter 3.28 of the Carlsbad Municipal Code is
repealed in its entirety:
SECTION 2: That a new Chapter 3.28 of the Carlsbad Municipal Code is enacted
in its entirety and reads as follows:
CHAPTER 3.28
PURCHASING
15 Sections:
16 3.28.010 Title.
3.28.020 Purpose.
3.28.030 Definitions.
3.28.040 Procurement and Disposition Responsibilities.
3.28.050 Procurement of Goods.
3.28.060 Procurement of Professional Services and Services.
3.28.070 Competitive Negotiations for Goods, Services and Professional
Services.
3.28.080 Construction Projects.
3.28.090 Execution of Change Orders and Amendments.
3.28.100 Cooperative Purchasing.
3.28.110 Exemptions.
3.28.120 Emergencies.
23 3.28.130 Prevailing Wages.
3.28.140. Severability
3.28.010 Title.
This chapter shall be known and may be cited and referred to as the "Purchasing26
Ordinance of the City of Carlsbad."
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Exhibit 2
3.28.020 Purpose.
The purposes of this chapter are to define a uniform system for the purchase of supplies,
Services and equipment by the City, to provide for the fair and equitable treatment of all
3 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.
5
3.28.030 Definitions.
6
A. For the purposes of this chapter, the following definitions apply:
1. Awarding Authority. "Awarding Authority" means the entity who has the
power to legally assign work, accept Bids and bind the City to a Contract;
2. Best Value. "Best Value" means the Best Value to the City based on all
factors that may include 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;
e. The quality of a Contractor's performance on previous
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purchases/Services with the City; and
f. The ability of a Contractor to provide future maintenance, repairs,
parts and Services for the use of the Goods and Services purchased.
3. Bid, Contract or Proposal Documents. "Bid, Contract or Proposal
Documents" means 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.
4. Capital Outlay Item. "Capital Outlay Item" means Fixed Asset Equipment
with a monetary value that meets or exceeds an amount established by the Finance
Director.
5. Construction Projects. "Construction Projects" or "Construction" means
those public projects defined in California Public Contract Code section 22002(c).
6. Contract. "Contract" is synonymous to "Agreement" and, regardless of
which term is used, it means an agreement between the City and one or more other
parties for the purchase or disposition of Goods, Services, Professional Services, and/or
22 Construction Projects.
7. Contractor. "Contractor" includes vendor and means any business
entity/party that has entered into a Contract with the City for the provision or disposition
of Goods, Services, Professional Services, and/or Construction Projects.
8. End User. "End User" means the City of Carlsbad and includes, any City
department/division requesting Goods, Services, Professional Services, and/or
Construction Projects.
9. Fixed Asset Equipment. "Fixed Asset Equipment" means equipment of a
permanent nature that has a useful life of more than one year and meets or exceeds a
27 monetary value established by the Finance Director.
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Exhibit 2
1 10. Goods. "Goods" means articles or items that are moveable at the time of
sale, including but not limited to equipment, supplies and/or materials.
2 11. Procurement. "Procurement" or "Procure" means the acquisition of Goods,
Services, Professional Services, or Construction Projects by the City, including but not3 limited to purchasing, renting or leasing, and all functions and procedures pertaining to
4 12. Professional Services. "Professional Services" means the Procurement of
Services that involve the exercise of professional discretion and independent judgment
based on advanced or specialized knowledge, expertise or training gained by formal
study or experience. Such Professional Services include, but are not limited to, Services
provided by appraisers, architects, engineers, instructors, insurance advisors, physicians
and/or other specialized consultants. Professional Services includes, but is not limited to,
those professionals as defined in California Government Code section 4526.
Professional Services does not include attorney/legal services.
13. Purchasing Officer. "The Purchasing Officer" means the person(s)
responsible for the Procurement of Goods, Services, Professional Services, and/or
Construction Projects in accordance with the provisions of this chapter. The person(s)
designated, in writing, 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.
14. Responsible Bidder. "Responsible Bidder" means a bidder determined by
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such acquisitions.
the Awarding Authority:
a. To have the ability, capacity, experience and skill to provide the
13 Goods, Services, Professional Services, and/or Construction Projects in accordance with
Bid Specifications, and if applicable:
b. To have the ability to provide the Goods, Services, Professional
Services, and/or Construction Projects 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, Services, Professional
Services, and/or Construction Projects and if applicable:
d. To be able to provide future maintenance, repair, parts and Service
for the use of the Goods and/or Construction Projects 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.
15. Responsive Bidder. "Responsive Bidder" means a bidder determined by
the Awarding Authority to have submitted a complete Bid or proposal which conforms in
all material respects to the requirements of the Bid, Contract, or other proposal
ents.
16. Services. "Services" means work performed, or labor, time and effort
expended, by the Contractor.
24 17. Specifications. "Specifications" means the description of the physical
and/or functional characteristics or of the nature of the required Goods, Services,
Professional Services, and/or Construction Projects.
18. Surplus Personal Property. "Surplus Personal Property" means Goods that
are owned by the City and which are no longer needed or which are obsolete or
unserviceable, or property that is a by-product (e.g. scrap metal, used tires and oil, etc.).
27 19. UPCCAA. "UPCCAA" means Uniform Public Construction Cost Accounting
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Act. (California Public Contract Code Section 22000, et seq.)
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Exhibit 2
1 3.28.040 Procurement and Disposition Responsibilities.
2 A. End User. The End User shall:
1. Identify its Procurement needs and the availability of funding; and
3 2. Submit to the Purchasing Officer Specifications for the required Goods,
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Services, Professional Services, and/or Construction Projects; and
3. Participate in the evaluation of Bids and proposals; and
4. Inspect Goods delivered, Services performed, Professional Services
rendered, and/or Construction Projects to determine conformity with the requirements set
forth in the Bid or Proposal Documents and with contractual obligations, and authorize
payments for conforming Goods, Services, Professional Services, and/or Construction
Projects.
B. Purchasing Officer. The Purchasing Officer shall be responsible for the Procurement
of Goods, Services, Professional Services, and/or Construction Projects for the City in
accordance with the provisions of this chapter. Except as provided for herein, no
Procurement shall be made contrary to the provisions of this chapter. Any Agreement or
Contract for the purchase of Goods, Services, Professional Services, and/or
Construction Projects made contrary to the provisions of this chapter shall be void and
any claim or demand against the City 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, Services, Professional Services, and/or
Construction Projects in cooperation with the End Users and for the disposal of Surplus
Personal Property;
2. Procure or supervise the Procurement of all Goods, Services, Professional
Services, and/or Construction Projects needed in coordination with End Users;
3. Process the Contracts awarded administratively and/or by City Council;
4. Whenever possible, establish standardized specifications and consolidation
of requirements for Goods and/or 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 City's police department.
C. City Manager. The City Manager shall be the Awarding Authority for:
1. All Procurement of Goods for which the cost to the City is one hundred
thousand dollars ($100,000) or less;
2. All Contracts for Services and Professional Services of one hundred
thousand ($100,000) or less per Agreement year;
3. All Construction Project Contracts less than the formal bidding threshold
established by the UPCCAA;22 4. Any change order, amendment or extension to an existing Contract which
23 when added to the Contract amount, including prior change orders, is within the authority
granted in Sections 1,2,3 and 4 above;
5. Any Construction Project change order up to the dollar amount equal to the
contingency amount set when the underlying Contract was awarded;
6. Any Construction Project change order in which the total amount of the
original Contract and all amendments and change orders are less than the formal bidding
threshold established by the UPCCAA;
7. Any change order or amendment to a non-Construction Project Contract
27 awarded by the City Council in an amount up to twenty-five percent of the original
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Exhibit 2
1 Contract amount, including the total of all amendments and change orders, up to a limit
of one hundred thousand dollars ($100,000) per Agreement year.
2 8. Any extensions to a Contract awarded by the City Council as delegated in
the Contract or the approving resolution.
3 9. The City Manager shall approve alternate Procurement methods, if
appropriate, for use on an experimental basis, and recommend to the City Council4
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additions, deletions or modifications to the City's Procurement methods.
10. The City Manager shall have the authority to delegate the awarding of
Contracts, amendments and change orders for Goods, Services, Professional Services,
and/or Construction Projects as set forth in this chapter by Memorandum or by
Administrative Order.
11. Each month the City Manager shall send to the City Council a report of all
Contracts that have been awarded over the formal Bidding requirement.
D. City Council. The City Council shall be the Awarding Authority for:
1. Any Procurement of Goods, Services and/or Professional Services costing
more than $100,000 per agreement year;
2. Any Construction Project Contract at or above the formal bidding threshold
established by the UPCCAA;
3. Any change order or amendment that exceeds the City Manager's
authority.
E. City Attorney. The City Attorney shall be the Awarding Authority for the Procurement
of legal services, regardless of the dollar amount, up to the amount of appropriations
available.
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3.28.050 Procurement Of Goods.
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A. Small Procurements:
1. Procurements of Goods where the total cost of Goods are thirty thousand
dollars ($30,000) or less in any one transaction, shall be made using simplified and cost
effective operational procedures and forms approved by the City Manager. The use of
formal or informal Bids is not required, but is considered the best management practice.
The small Procurement limit shall be reviewed and adjusted annually per the procedures
set forth in Section 3.28.050(C)(1). Procurement requirements shall not be divided so as
to constitute several small Procurements under this subsection.
B. Informal Bidding for Goods:
1. Informal bidding procedure shall be utilized:
a. When the anticipated cost of the Goods to be purchased is less than
the dollar amount established for formal bidding for Goods in Section 3.28.050(C) (1)
22 herein; or
b. When no Bids are received pursuant to the formal Bid procedures
established; or
c. When all Bids received substantially exceed the City's estimated
costs, as determined by the Purchasing Officer through the formal bidding procedure.
d. The City Council may designate types or classes of Procurements
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 whenever the City Council finds that use of the informal bidding procedure is
27 advantageous to the City consistent with applicable law.
2. The informal bidding procedure shall be as follows:
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Exhibit 2
1 a. Bids shall be obtained by written or oral request.
b. When possible, a minimum of three bidders should be solicited.
2 c. Best Value criteria, if used, must be determined before Bids/quotes
are published or distributed to potential bidders/suppliers.
3 d. Responses shall be in writing, and may be transmitted by facsimile,
by mail, electronically over the Internet, or by any other means of delivery as described in
the Bid Documents.
e. The award shall be based on Best Value to the City or the lowest Bid
submitted by a Responsive Bidder, as determined by the Purchasing Officer, and shall
be awarded by the City Manager.
C. Formal Bidding for Goods:
1. Formal bidding procedures shall be utilized when the anticipated cost of the
Goods 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 thirty thousand dollars ($30,000) beginning in Fiscal Year 2009. Adjustment
to the bid limit will be made in five thousand dollar increments ($5,000) 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 avoid the formal
bidding requirements.
3. The formal bidding procedures shall be as follows:
a. The Purchasing Officer, or his/her designee, 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:
i. instruction to bidders;
ii. Specifications describing the required Goods;
iii. Bid forms and schedules;
iv. any required bond forms;
v. general Contract provisions;
vi. the time on or before which Bids will be received;
vii. where and with whom Bids shall be filed;
viii. the date, time and place where and when Bids will be publicly
ix. statement of Bidders exceptions.
b. The sealed formal Bids shall be received by the Purchasing Officer,
or his/her designee, at a time, date and place designated in the Bid documents. Formal
Bids, timely received, will be publicly opened by the Purchasing Officer, or his/her
designee, and the aggregate Bid pricing shall be read aloud.
c. Any person or entity with whom the City has contracted to prepare or
assist in the preparation of Bid or Proposal Documents is ineligible to submit a Bid or
Proposal for the provision of the Goods so specified in the notice inviting Bids or
Proposals.
d. 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
27 necessary for identification purposes. The Purchasing Officer, or his/her designee, shall
submit written notification to the bidder whose Bid was received after the deadline stating
opened;
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Exhibit 2
1 what the deadline was, when the Bid was actually received and that the Bid is being
returned because it was received after the deadline.
2 4. 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
3 informal bidding procedures, negotiate a Contract based upon the solicitation, without
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further complying with this section or the City may cease the Procurement.
5. 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 re-
advertising for Bids, the City Council, or the City Manager if the Procurement is under
one hundred thousand dollars ($100,000), may exercise sound discretion and accept the
Bid it chooses.
6. In considering formal Bids for Goods, 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.
7. All Bids shall be deemed rejected if no City Council or City Manager action
is taken on the Bids or proposals within ninety (90) days after the Bids have been
received and opened, unless bidders agree to extend a Bid's effective date upon request
by the City.
D. Additional Responsibilities and Authorities:
1. 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 and Bid Proposal Documents.
2. All Contracts may be awarded based on the Best Value for the City. Best
Value criteria, if used, must be determined before Bids/quotes are published or
distributed to potential bidders/suppliers.
3. The City Manager shall be the Awarding Authority for Procurement of
Goods for which the cost to the City is one hundred thousand dollars ($100,000) or less.
4. The City Manager shall be the Awarding Authority for all Capital Outlay
Items approved by the City Council during the budgeting process regardless of the dollar
amount.
5. The City Council shall be the Awarding Authority for Procurement of Goods
for which the cost to the City is more than one hundred thousand dollars ($100,000) and
have not been previously approved as Capital Outlay items in the budget process.
E. The City's Goods 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
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business entity seeking a Contract with the City that would subject that employee to the
22 prohibition of Government Code section 87100 (Conflicts of Interest).
23 3.28.060 Procurement Of Professional Services and Services.
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A. Professional Services Procurement:
1. Request for Proposals should be used when Professional Services are
needed. The selection of Professional Services for, private architectural, landscape
architectural, engineering, environmental, land surveying or Construction Project
management firms should be based on the professional qualifications necessary for the
27 satisfactory performance of the Professional Services required, on demonstrated
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Exhibit 2
1 competence, and on a fair and reasonable price consistent with Government Code
section 4526.
2 2. Procurements of Professional Services where the total cost of Services are
thirty thousand dollars ($30,000) or less shall be made using simplified and cost effective
3 operational procedures and forms approved by the City Manager. If the cost of needed
Professional Services is expected to exceed $30,000, at least three proposals should be
solicited for the Professional Service needed whenever possible. The Purchasing Officer
may waive the requirements for solicitation of multiple proposals if only one individual or
firm can reasonably provide the Professional Services, and it is in the best interest of the
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City to waive the requirement.
B. Small Procurements of Services:
1. Procurements of Services where the total cost of Services are thirty
thousand dollars ($30,000) or less in any one transaction, shall be made using simplified
and cost effective operational procedures approved by the City Manager and forms
approved by the City Manager. The use of formal or informal Bids is not required, but is
considered the best management practice. The small Procurement limit shall be
reviewed and adjusted annually per the procedures set forth in Section 3.28.050(C)(1).
Procurement of Services requirements shall not be divided so as to constitute several
small Procurements under this subsection.
C. Informal Bidding for Services:
1. Informal bidding procedure, as set forth in Section 3.28.050(B)(2) may be
utilized:
a. When no Bids are received pursuant to the formal Bid procedures
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established; or
b. The City Council may designate types or classes of Procurements
costing more than the dollar amount established for formal bidding in Section
3.28.060(D)(1) herein; which may be purchased through the use of informal bidding
procedures whenever the City Council finds that use of the informal bidding procedure is
advantageous to the City consistent with applicable law.
D. Formal Bidding for Services:
1. Formal bidding procedures shall be utilized when the anticipated cost of the
Services 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 thirty thousand dollars ($30,000) beginning in Fiscal Year 2009. Adjustment
to the bid limit will be made in five thousand dollar increments ($5,000) 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 avoid the formal
bidding requirements.
3. The formal bidding procedures and requirements shall be as set forth in
Section 3.28.050(C) and Section 3.28.050(0).
4. The City Manager shall be the Awarding Authority for Procurement of
Services and Professional Services for which the cost to the City is one hundred
thousand dollars ($100,000) or less per Agreement year.
5. The City Council shall be the Awarding Authority for Procurement of
27 Services and Professional Services for which the cost to the City is more than one
hundred thousand dollars ($100,000) per Agreement year.
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Exhibit 2
1 E. The City's Services and Professional Services Procurement practice prohibits
unlawful activity including, but not limited to, rebates, kickbacks, or other unlawful
2 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
3 City that would subject that employee to the prohibition of Government Code section
87100 (Conflicts of Interest).
3.28.070 Competitive Negotiations for Goods, Services, and Professional Services.
A. The Purchasing Officer may authorize the solicitation of Services and/or Professional
Services other than those listed in Section 3.28.060, and the purchase of highly
specialized Goods by competitive negotiations when:
1. The cost of the Goods, Services and/or Professional Services is greater
than the dollar amount established for formal bidding in Section 3.28.050(C)(1) and
Section 3.28.060(D)(1); and
2. The Goods are such that suitable technical or performance Specifications
are not readily available; or
3. The City is not able to develop descriptive Specifications; or
4. Requesting proposals for the particular Service or Goods to be procured
would be more advantageous to the City.
B. 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.
C. The City Manager or his/her designee shall award Contracts for Goods and/or
Services less than one hundred thousand dollars ($100,000) per Agreement year.
D. The City Council shall award Contracts for Goods and/or Services over one hundred
thousand dollars ($100,000) per Agreement year.
3.28.080 Construction Projects.
A. Except where specifically exempted from such laws by ordinance of the City Council,
Contracts for Construction 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 Construction Projects shall also be governed by the current edition
22 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 his/her authority.
1. Construction Projects less than the amount specified in Section 22032 (a)
of the California Public Contract Code may be performed by City employees by force
account, by negotiated Contract or by purchase order.
2. Construction 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
27 forth in this section.
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Exhibit 2
1 3. Construction Projects of more than the amount specified in Section 22032
(c) of the California Public Contract Code shall be let by formal bidding procedure.
2 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.
3 5. The City Council shall adopt plans and Specifications for all Construction
Projects to be formally bid when the value exceeds the limits established by the UCCAA.
6. The informal bidding for Construction Projects procedures shall include the4
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a. The Purchasing Officer or his/her designee shall develop a list of
6 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
7 Contractor's State License Board.
b. The Purchasing Officer or his/her designee shall mail notice inviting
8 informal Bids to all Contractors on the list of qualified Contractors and construction trade
journals not less than ten (10) 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, and whether or not the project will require the payment
of prevailing wages.
d. When the Awarding Authority deems feasible, Bid Documents may
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following procedures:
be transmitted and/or received over the Internet.
e. The Awarding Authority 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 Responsive, Responsible Bidder. If no Bids are received
through the informal procedure, the project may be performed by City employees, by
force account or negotiated Contract without further complying with this section.
Contracts.
f. The City Manager or his/her designee shall award all informal
7. The formal bidding procedures for Construction Projects shall include the
following:
a. The Purchasing Officer, or his/her delegate, shall mail notice inviting
formal Bids for Construction Projects to construction trade journals at least thirty (30)
19 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 in a
20 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.
b. When the Awarding Authority deems feasible, Bid Documents may
be transmitted and/or received over the Internet.
c. The Awarding Authority may waive any minor irregularity or
informality in such Bids or may, in its sole discretion, reject all Bids presented.
d. The Contract shall be awarded to the lowest Responsive,
Responsible Bidder.
e. 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.
f. The City Council shall award all formal Contracts.27 '
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Exhibit 2
1 3.28.090 Execution Of Change Orders And Amendments.
2 A. No amendment to an Agreement or Contract shall be made without the issuance of a
written change order or amendment, and no payment for any such change or
3 amendment 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.
B. 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.
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3.28.100 Cooperative Purchasing.
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 Goods and/or
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Services 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
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.
3.28.110 Exemptions.
A. The following Procurements, Contracts or transactions are exempted, as determined
by the Awarding Authority, from the provisions of Chapter 3.28:
1. Emergency Procurements for Construction, Goods or Services;
2. Goods, Services and/or Professional Services that can be reasonably
obtained from only a single source;
3. Items required matching or being compatible with other Goods, furnishings,
materials or equipment previously purchased by the City;
4. Goods, 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, Services and/or Professional 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;
10. Works of art, entertainment or performers;
11. Library collection materials or Services or other books or periodicals;
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.
14. Situations where solicitations of Bids or proposals for Goods, Services
and/or Professional Services would be, in the discretion of the Awarding Authority,
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Exhibit 2
3.28.120 Emergencies.
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 or infrastructure and/or Procure the necessary Goods and/or Services adopting
the plans, Specifications, or working details 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.
3.28.130 Prevailing Wages
A This section is intended to supersede the provision of the Public Contract Code
and Labor Code requiring payment of prevailing wages, and, except as expressly set
forth in this section, the provisions of the Public Contract Code and the Labor Code
pertaining to prevailing wages shall have no application to Construction Contracts of the
City of Carlsbad or its agencies.
B. Payment of prevailing wages pursuant to Labor Code Section 1770 and
compliance with the prevailing wage requirements of Labor Code Section 1770 et seq.
shall not be required for any public works entered into by the City or any of its agencies
except when required as a condition of any Federal or State grants and on other projects
determined by the City Council to be of statewide concern.
1. For each public project of less than the amount specified in Section 22032
(b) of the California Public Contract Code, the City Manager shall determine whether or
not it is in the City's best interest to require prevailing wages for that project and that
determination shall be included in the notice inviting Bids.
2. For each Construction Project of more than the amount specified in Section
22032 (b) of the California Public Contract Code, the City Council shall determine
whether or not it is in the City's best interest to require prevailing wages for the project
and that determination shall be included in the notice inviting bids.
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jurisdiction, the decision will not affect the validity of the remaining portions of this
Chapter. The City Council declares that it would have passed the ordinance
codified in this Chapter and each section, subsection, sentence, clause or phrase
contained in it irrespective of the fact that any one or more sections, subsections,
sentences, clauses or phrases are declared invalid or unconstitutional.
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Exhibit 2
EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption
or upon completion of the legal process of becoming chartered, whichever is later, 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 or chartered.
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City
Council on the 22nd day of July, 2008, and thereafter.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Carlsbad on the day of , 2008, by the following vote, to with:
AYES:
NOES:
ABSENT:
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RONALD R. BALL, City Attorney
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APPROVED AS TO FORM AND LEGALITY
CLAUDE A. LEWIS, Mayor
ATTEST:
LORRAINE M. WOOD, City Clerk
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FOR THE INFORMATION OF
THE CITY COUNCIL
I/"16 *
ATE:CT
July 11, 2008 __—,
I DATE CITY ATTORNEY
TO MAYOR AND CITY COUNCIL
FROM: CITY ATTORNEY
RE- ITEM #4 - AMENDING CARLSBAD MUNICIPAL CODE CHAPTER
3 28-PURCHASING
irj^^^^^^^
proposed ordinance consistent throughout.
Should you have any questions regarding the above, please do not hesitate to contact me.
RONALD R. BALL
City Attorney
rn
c: City Clerk
City Manager
Finance Director
Deputy City Attorney Edmonson
July 15, 2008
TO: MAYOR AND CITY COUNCIL
FROM: City Manager
RE: ITEM #4 - AMENDING CARLSBAD MUNICIPAL CODE CHAPTER 3.28 -
PURCHASING
To add clarification to section 3.28.040 (c)(2) of the proposed ordinance the section
should read: "All Capital Outlay Items approved by the City Council during the
budgeting process regardless of the dollar amount, unless otherwise directed by City
Council."
Should you have any questions regarding the above, please do not hesitate to contact
me.
LISA HILDABRAND
City Manager
CW:tm
c: City Clerk
City Attorney
Finance Director
Exhibit 2
17. Specifications. "Specifications" means the description of the physical
and/or functional characteristics or of the nature of the required Goods, Services,
2 Professional Services, and/or Construction Projects.
18. Surplus Personal Property. "Surplus Personal Property" means Goods that
3 are owned by the City and which are no longer needed or which are obsolete or
unserviceable, or property that is a by-product (e.g. scrap metal, used tires and oil, etc.).
19. UPCCAA. "UPCCAA" means Uniform Public Construction Cost Accounting
Act. (California Public Contract Code Section 22000, et seq.)
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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,
Services, Professional Services, and/or Construction Projects; and
3. Participate in the evaluation of Bids and proposals; and
4. Inspect Goods delivered, Services performed, Professional Services
rendered, and/or Construction Projects to determine conformity with the requirements set
forth in the Bid or Proposal Documents and with contractual obligations, and authorize
payments for conforming Goods, Services, Professional Services, and/or Construction
Projects.
B. Purchasing Officer. The Purchasing Officer shall be responsible for the Procurement
of Goods, Services, Professional Services, and/or Construction Projects for the City in
accordance with the provisions of this chapter. Except as provided for herein, no
Procurement shall be made contrary to the provisions of this chapter. Any Agreement or
Contract for the purchase of Goods, Services, Professional Services, and/or
Construction Projects made contrary to the provisions of this chapter shall be void and
any claim or demand against the City 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, Services, Professional Services, and/or
Construction Projects in cooperation with the End Users and for the disposal of Surplus
Personal Property;
2. Procure or supervise the Procurement of all Goods, Services, Professional
Services, and/or Construction Projects needed in coordination with End Users;
3. Process the Contracts awarded administratively and/or by City Council;
4. Whenever possible, establish standardized specifications and consolidation
of requirements for Goods and/or Services required by two or more End Users;
22 5. Sell or otherwise dispose of Surplus Personal Property, and lost and
unclaimed property held by the City's police department.
C. City Manager. The City Manager shall be the Awarding Authority for:
1. All Procurement of Goods 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 regardless of the dollar amount, unless otherwise directed by City Council:
3. All Contracts for Services and Professional Services of one hundred
thousand ($100,000) or less per Agreement year;
27 4. Ali Construction Project Contracts less than the formal bidding threshold
established by the UPCCAA;
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ju_4-«»v. to
July 22, 2008
TO:
FROM:
FOR THE INFORMATION OF
THE CI7 •- COUNCIL
CITY ATTORNEY
MAYOR AND CITY COUNCIL
CITY ATTORNEY
If the Council wishes to introduce the purchasing ordinance but postpone the
introduction and adoption of section (C)(2) of it, your action would be to:
"Introduce Ordinance No. CS-002 repealing, in its entirety, the
current Carlsbad Municipal Code Chapter 3.28 (Purchasing) and
adopting the new Carlsbad Municipal Code Chapter 3.28
(Purchasing) deleting proposed section 3.28.040(C)(2) and
renumbering all subsequent sections."
Should you have any questions regarding the above, please do not hesitate to contact
me.
RONALD R. BALL
City Attorney
rn
City Manager
Finance Director
City of CarlsbadCity of CarlsbadAmendment to Carlsbad Amendment to Carlsbad Municipal Code Chapter Municipal Code Chapter 3.28 Purchasing3.28 PurchasingJuly 15, 2008July 15, 2008
A team was formed to review the CityA team was formed to review the City’’s s purchasing procedurespurchasing proceduresGoalsGoalsTo simplify the processTo simplify the processAllow more flexibilityAllow more flexibilityMaintain process integrity and financial Maintain process integrity and financial controlscontrolsCity Charter AdoptionCity Charter AdoptionBackgroundBackground
Finance to remain the oversight for purchasing Finance to remain the oversight for purchasing processesprocessesFormal bid requirement for supplies, equipment Formal bid requirement for supplies, equipment and nonand non--construction project services to remain construction project services to remain at $30,000at $30,000Bid process for construction project contracts Bid process for construction project contracts continues to follow the Uniform Public continues to follow the Uniform Public Construction Cost Accounting Act (UPCCAA)Construction Cost Accounting Act (UPCCAA)RecommendationsRecommendations
City Manager to remain awarding authority for all City Manager to remain awarding authority for all nonnon--construction procurements under $100,000 construction procurements under $100,000 per agreement yearper agreement yearCity Manager to be the awarding authority for all City Manager to be the awarding authority for all construction procurements and change orders at construction procurements and change orders at the formal bidding level set by the UPCCAAthe formal bidding level set by the UPCCAACity Manager to be the awarding authority for all City Manager to be the awarding authority for all capital outlay items approved by City Council capital outlay items approved by City Council during the budgeting processduring the budgeting processRecommendations (cont.)Recommendations (cont.)
Recommendations (cont.)Recommendations (cont.)Definition of small procurements to move from Definition of small procurements to move from $5,000 to $30,000$5,000 to $30,000$4,576,507$3,869,924$12,263,87895469390%20%40%60%80%100%Total $20,710,309Total # 1,062Distribution of Non-Construction Project Purchase Orders>$100K$30K-100K<$30K4%4%90%90%6%6%59%59%19%19%22%22%
All procurements over the limits previously noted All procurements over the limits previously noted should continue to require City Council approvalshould continue to require City Council approvalCity Council (or City Manager on smaller City Council (or City Manager on smaller projects) to make determination on requiring projects) to make determination on requiring prevailing wages prevailing wages Recommendations (cont.)Recommendations (cont.)
Purchasing OrdinancePurchasing OrdinanceTimelineTimelineFirst Reading of Ordinance First Reading of Ordinance ––July 15July 15Second Reading of Ordinance Second Reading of Ordinance ––July 22July 22Effective Date of Ordinance Effective Date of Ordinance ––30 days after its 30 days after its adoption or upon completion of legal process for adoption or upon completion of legal process for Charter City, whichever is laterCharter City, whichever is later
Allow City Manager to be awarding authority for Allow City Manager to be awarding authority for all budgeted capital outlay projects.all budgeted capital outlay projects.Increase small procurements from $5,000 to Increase small procurements from $5,000 to $30,000$30,000Allow determination of whether it is in the CityAllow determination of whether it is in the City’’s s best interest to require the payment of prevailing best interest to require the payment of prevailing wages for a particular project.wages for a particular project.SummarySummary
Questions?Questions?
City of CarlsbadCity of CarlsbadAmendment to Carlsbad Amendment to Carlsbad Municipal Code Chapter Municipal Code Chapter 3.28 Purchasing3.28 PurchasingJuly 15, 2008July 15, 2008