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HomeMy WebLinkAbout2019-12-19; Procurement of Budgeted Capital Outlay Vehicles over $100K; Gomez, PazTo the members of the: CITY COUNCIL Date l3-/f&l /t~A ~CC L CM L COO ~ DCM (3) £_ Dec. 19,2019 Council Memorandum To: From: Via: Honorable Mayor Hall and Members of the City Council Paz Gomez, Deputy City Manager, Publi,t_Wo)ks Elaine Lukey, Chief Operations Officer ~ Re: Procurement of Budgeted Capital Outlay Vehicles over $100,000 {city of Carlsbad Memo ID# 2019147 This memorandum outlines upcoming operational changes to the vehicle procurement process of capital outlay items over $100,000 that have been approved as part of the budgeting process. Background In an effort to streamline the procurement process for vehicles over $100,000, Public Works staff plans to modify the current practice of requesting City Council authorization to procure vehicles previously budgeted as capital outlay items. Discussion Carlsbad Municipal Code (CMC) Section 3.28.040(D) states the City Council shall be the awarding authority for "Any procurement of goods, services and/or professional services costing more than $100,000.00 per agreement year." Currently, for acquisition of vehicles that exceed $100,000, staff presents the item twice to City Council for approval. The first approval occurs during the budgeting process, and the second approval is obtained via separate City Council action when staff is ready to award the purchase. On July 15, 2008, City Council introduced Ordinance No. CS-002, which was adopted on Aug. 5, 2008, repealing and replacing Carlsbad Municipal Code Chapter 3.28 (Purchasing) (Attachment A is the Agenda Bill for the item). In addition to the CMC Section previously discussed, Ordinance No. CS-002 included CMC Section 3.28.050(D), which states the City Council shall be the awarding authority for "procurement of good for which the cost to the city is more than $100,000.00 per agreement year and have not been previously approved as capital outlay items in the budget process." (Italics added.) The provision allows the city nianager to be the awarding authority for all capital outlay items previously approved by the City Council during the budgeting process, up to the amount budgeted. The intended purpose of the revised ordinance was to update 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 objective was to simplify the purchasing process, reduce paperwork and allow for more flexibility while maintaining the process of integrity and financial controls. Public Works Branch General Services Department 405 Oak Ave. I Carlsbad, CA 92008 I 760-434-2980 t Honorable Mayor Hall and Members of the City Council Dec. 19,2019 Page 2 Consistent with this purpose and CMC Sections 3.28.040(D) and 3.28.0S0(D), future acquisition of vehicles exceeding $100,000 will only be presented to the City Council or the.Carlsbad Municipal Water District (CMWD) Board once, either as part of the budgeting process or as a separate City Council or CMWD Board item. If, however, the cost of a capital item that was previously approved during the budgeting process exceeds the budgeted amount, the item will return to the City Council or CMWD Board for funding appropriation and procurement approval. As an example, on Dec. 17, 2019, staff presented a staff report to the City Council and CMWD Board requesting authorization to purchase a hydro-excavator. This piece of equipment was budgeted as part of the fiscal year (FY) 2019-20 budgeting process; however, the final cost quote exceeded the budgeted amount and required City Council and CMWD Board approval of additional appropriation. Attachment B is the list of vehicles approved to be purchased or replaced as part of the FY 2019- 20 budget, approved by Resolution No. 2019-092. Next Steps The city manager will approve procurement of budgeted capital outlay vehicles up to the budgeted .amount once the vehicles have been approved by the City Council or CMWD Board through the budgeting process. Attachments: A. Agenda Bill 19,515 -B. Planned Capital Outlay Items included in the FY 2019-20 budget cc: Scott Chadwick, City Manager Celia Brewer, City Attorney Paz Gomez, Deputy City Manager, Public Works Laura Rocha, Deputy City Manager, Administrative Services Cindie McMahon, Assistant City Attorney Amanda Guy, Deputy City Attorney Vicki Quiram, Utilities Director Kevin Branca, Finance Director Cheryl Gerhardt, Finance Manager John Maashoff, Public Works Manager Attachment A AB# MTG. DEPT. CITY OF CARLSBAD -AGENDA BILL 19,515 07/15/08 FINANCE AMENDING CARLSBAD MUNICIPAL CODE CHAPTER 3.28 -PURCHASING RECOMMENDED ACTION: 7 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. ¥. { r, ,, 11 on COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC J-c:,i..oc· n . DENIED CONTINUED TO DATE UNKNOWN CONTINUED □ RETURNED TO STAFF k WITHDRAWN □ OTHER -SEE MINUTES AMENDED A~ Amended Page2 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 purcha·ses 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 D>$100K □$30K-100K ■<$30K 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. Page 3 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 amourit. · • This change would eliminate City Council's duplicate review of budgeted capital outlay items over $100,000. Page4 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. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 ORDINANCE NO. CS-892 . 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: Exhibit 1 SECTION 1: That Chapter 3.28 of the Carlsbad Municipal Code is repealed in its entirety: Soetions: 3,28,010 Title, 3,28.020 PuFp o&o. 3.28.030 Definitions. PURCHASING 3.28,040 PFeeuFomont and di&positien Fosponsibilitios. 3,28.050 Mothed& of pFoewFomont. 3,28,0&0 Cempotiti¥o negotiations. 3,28.070 PFefessional sorvieos, 3,28,080 E*oeutioA of ehango oFdOFS and amonEimonts. 3.28.090 CeepoFati'J.•o pun~hasing. 3.28,100 E11:omptions. 3,28.110 ConstFuetion pF&joet&, 3.28.120 Exoeutien of ehaAgo eFdoFS. 3.28,130 EmoFgoneios. 20 * Prior Ordinanso hist0f)': Ords. 1QQS, 1171, 1197, 130e, 124Q, 12S~. 12SS, 1293, 1290, ~JS 2, ~JS 43, ~JS 55, ~JS 139, ~JS 133, ~JS 1GQ, NS 351, ~JS 413, ~JS 496. 21 22 3.28.010 Title, 23 n,is 0t-ia13ter shall ea lmowri arie may eo eited arid referree to as U;ie "P1a1rshasin9 Ordiriarioe ef the City ef Carlsea€1." ~Orel. ~IS 627 ~13art), 2QQ2) 24 3,28.020 PuFposo. 25 26 Tt-ie p1a1rposes of this shapter are te eefiAe the ooritralii!!od system ef the sity fer il:le p1a1rnhas0 ef supplies, seF¥ises arid equi13merit, te prnvi€1e fer the fair arie equitaele 21 treatment ef all porsens invel¥od in the 13urshasin9 presess, te obtaiA the highest possible val1s10 in om;t-iarige fer publis funes ari€1 to safeguard the ~wality arid integrity of 2a the pui=ehasiAg system. (OFd. ~JS 627 (pai=t), 2002) -1 - 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 1 3.28.030 Dafinitians. A. ~€IF tt:lo PWFf:IOSSS of tt:lis GhaptoF, u,e mllewiRg €1efiRitiOFIS apply: ~. laost Valwo. "Qost 11alwo" moaRs tt:lo host ¥alwo to the 0ity eased OFI all fa0t0Fs, inelw€1iRg, hwt net limito€1 te, tho mlle1,1a1ing: a. Gest; e. +ho aeility, eapaeity aF1€1 skill ef a GOFltFa etoF te poooFm a eontFaet eF prn11i€10 the swpplies, seF¥iees 0F eEtwipment Fe(;twiFe€1; e. The ability of a eentFaeteF to pF01a1i€1e tho s1:1 pplies, soF¥iees er 0~1i1ipmoF1t FOFIGOS; prnmptly eF witt:liR the time spe&ifie€1 1,1a1ithe1:1t delay OF iRteFfe €1. 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IJRifoFm ~1.1elie GoF1stF1.1eti0ri Gast ,o.eeo1.1RtiF1 /\ I\ I\ • ~wehe ~oRtraet ~000 SeetieR 22QQQ et seq.) Seotien ~2Q~~ ,..t:1=1 (Y~GG,"":"f (G~hfeF alteFnat11a10 mott::10€1 fer 0i€i€fiR er ,.. . 0 8 Y~GGl"'il"'1 pF0¥188S adeptee. (0F€1 . ~,s 627 (paFt)~ /o~;;e woFl~s PF0Joets 0y p1.1elie eRtities whieA tt::ie eity A Ria BR as 3.28.040 P,oeuramant and disposition rasponsibilitias. -3-1 .... .,. .. -~·----·-~·-··· .. -.~-----·-•·-·. - Exhibit 1 A. i;;;nd User. The and user shall: 2 !· IgaF1U~, its pFoeuremaRt Roods and the availability of fundini;r 3 ;e. "'1.1bm1t to tl;;io pwrehasiRe offieer · ·fi ♦-' saF¥ieas;s spac1 eat10Rs for the raqwired goods aRdlor 4 3. PaFticipata iR the o11al1.1atien of bids and proposals· and 4 • IRspast goods delivered and sen·icos ort: · ' · 5 tho_ Foqwiramonts sat forth iR the bid ;; permed to d0torm1no ~onformity with otihsations, and awtl::lorizo payments MF eonf. pre~esal doowmoAts an_d w1tf;;i oontFaotwal 6 9. Pwrehasing Offieor. The p1o1rehasin of:fice~FFFIIRg goods ORS~OF SOF¥160S. 7 geed• aadler se1¥ioee fer I~• oily iA gaeeo..ia::al~-~~ i;:,•~•••:~I• fer 11,e ~-"'"""''"e"I el procwromaRt ef goolils andJer saFViees shall bee ~~d a pre' '.s10Rs of this_ ~haptar. ~Je1 8 ehaptar. /\Ry agraemaRt er eeRtFaet Mr tho h a eontr~ry te th~ pro•a11s1ons ef this, ma~e eontrary to the pro•a1isieRo ef this ch:;::r :::1~~ s1o1.~p_hes, s0F¥1eas ~Rd eq1o1ipment; 9 against the eity eased thereoR shall be in"alid Th a '~1d aR~ Ray claim or demaRd 1. Prepare aRd roeemmoRd to tho veit1· ~aRe p1o1rehas1n~ eff1eer shall: 10 for u~e precwremoRt of geods and'er so ,.r . ager op~rat1o~al preeodwres aRd Mrms tho disposal of surplws personal pr~po..♦.~•eos IA cooperat10R w1U;i U10 ORd wsors and for 11 ~ p · n;, .rocl:lro or s1:1peF¥iso tho proe1;1remont of all go d er . eeerdiRatioR with eRd users,·o s aR var soNioos Reeded iR 12 . ;· ~~heas~.u~o coR~racts awaFdod admiRistrati•a1oly aRd/er by citl· cewReil· ' 13 · 1h BRo.er poss1tilo establisl::i staRda d" d · . 1 ' roqwiromoRts for goods aRdJ~r soNiees roqwi;;;~z~;., spoei:fieations aRe eeRsolidatieR ef 14 . §. Soll er eU10w,tise dispose ef su I Y :.e er mere ORd l:ISors; prep~rty held tiy tho city's peliee aopartm=R~.s parseRal prepof:ty, aRd lest aAd URelaimed 15 G. City 1M:~lager. +ho eity maRagor sf;iall tie tf;ie awarding awtheriti· fer- . hi proeuromoRt ef geeds aRd 1or ser::vie f .. ,h- 1 · 16 hwRdrod tl-leusaRd dollars er less· r • es /4lr v. ieR tho east to tho eity is ORO 17 2. All eapital ewtlay item's appro11ad b . th · . . . proeess iR aR amol:IRt of one hwndrod lho~sand Ydlle e1t) I eowRe1I during tl:lo ti1;1asotin~ a /\ 11 t t f o ars or ess· · 1a· n eon ~ae s ~r prefossieRal sarviees ef oRo hYndro~ the a I . 4. All pwbhe prQJeets ceAti:asts I tR 1-1 wsaR er ass, · 19 by the IJPGGN\;ossaR t O MFFFlal biddiRg threoReld estatilisRed §. /\II ehango erders, amoRdmoRts ff • . . 20 a1o1tRBrity graRto€1 iri owbsestieri (1 > arid '2> :b:~:.RmBns te a~ustmg agroomoRts i;1;1ithiR the 6 /\II bl. 7 ~ 7 .. v .. , 21 · n Pia! Ie wBrks 0haRge erdors blf> tB the €1 II ame1o1Rt sot wheR tho wRderlyiRo GontFaet ... as .,. dB d~r amouRt eq1o1al te U10 eeritirigoRey 7 /\II h ::::i 1. a1.ar .. e- 22· hi e aRge eFdors or amen€1moRts te oentr t' ,.. d . • .. amel:lnt up te t\•,·oRty fi1a10 poreoRt ef tRo eri i ,:e s a,..ar ed ~Y tho_ e1ty eewF1c1l 1n aR 23 ameridmerits, "'P to a li~it ef Bne 1::11:mdred t~==s==~ ~~~l~~;'eYRt, irislyEi1Rg the tBtal ef all a. +ho €llty maRagor shall a~pro• • It t 24 apprBpriate, fer USO on OR O*perime;tal;a : ,e a orna O Ji)F06WF9FF18Rt motReds, if aelditieRs, doletieRs or modificatieRs tB U1e c1·♦.,' sis, ariel roeommemd te tl.:io eity eewReil 25 . <; s prom:1remeF1t metheds ti .. lho eIty mariagor shall t;ia·•o tl:lo a th ·ti . eentra0ts, amondmemts aRd eRaRgo erdor; f: er1 / te d~logato tl.:io awardirig of 26 eRa~tOF by m~merand1,1m Br tiy aeministrati1,10 ~:a:~e s aRel sarvmos as sot fertt;i iR this 27 Q. City GowRe1I. +Re eity eBl:IRGil shall be tR@ awaFdi~g authBriti. f . 1. All preeuF@moRt of geeel d, .1 or. the1:1sarie elellaras·s aR rBF soNieos eBst1Rg mBro tRaR eno RYAEiFo€1 28 , - 4 - g 2· All pwelis .. ,erl( lly lho YPCC" -" • oonlfaols et • r obo· ·o th , E h'b1·t 1 2 3 .,,, v m8 .8"'101 lli88" X I . All ohango ardors ,ng IR1oshold eslel,lishoB 3 4: All eentFasts . er amondmonts as sot ferU;i . . , p..,fessional iea•ioos us,ng Cempolili¥o Negoliali~ ,n llus ohapl<JF; e ars. ~Ord. NS @37 'na ~,... rt), 4 ~ ➔ g"3alor !Ron ono hun&"'d lh:::a:; :~~uosls fer Prep•••I• fer 5 , 3.28.050 Methods of ~F ... oeuFamant. 6 A. Small Preewroments. . tRewsan~ sellars er less . swpphos, s0Pv1iees ans e w· . 1 1-P"'ouremoRI& of . • olleolivo ope1<1lionol p,a~~:A'f ono l1<1Rsaolion, sRa~ ::,men!, lh• -••Ill of wloioR are f;· • ••o of lo"'1ol '" inle..,al llures ••B "'""" OPP"'""ll .. _m•Bo using siRlplifiaB and .::., 9 :"'::::..:.~i9:-: oonslilul• •• :;..i.':.•0~r-:,m•At re~~ire1n!R:• .:::ri~=n:g•~ wililoul lh~ 10 _ 1. i:i,~ P~~!,:i:upplias, ii•F¥ioos ~==•::.~"!: ••II•• lhi• ...... .:.:_n•• 0 •••o™'I lho ,nleFR1al lliBiliR g ollio•r FRll'f puroho•• •• P ~Rl-11 ,nay l!o ulil6'o&: g p,o..,dures astel!lishod in lhi:pho•t: sePvliees ans 8€!Wipment . a "I . soo ,an. lnle"'1al l!iililin """'9 12 P•••hos•B is i.".'."~:.:• onlioipeteB oosl of lh• •• . • g proo•ll•re 13 3.3S.Q5Q(C)(1) Rarein; "'!he Bellar a,nouAt .e1e .. 1fs=~~•-~•7••• ORB oquip"'•nl lo II• 11. l'!R . r 41FFRol ll188iRg . Iii . 14 ••lol!lish•ll fer.;"~=••• .. ,e. ore r•••ivo8 pursu " in•sl1aR •-iJ:.. ai1"11~:.:c:• o~S •~•ipmonl; or onl lo !ho leFR1al l!iB preooilur&s s. FwFtt::l . eo1vos swestantiall ' 15 hosed oR llasl Wllu• • FR •f lhr&• bidders sho•ld ") &R'f oth•r 1n•ono of II -, . "~ 21 C. Co""al liid&" nd •Rall II• O¥#iirdoil .. , IR . b• sohe1l•II and lh• .• ,ohrOfy. 1 l'h ,ng fer Supplies, ioF¥i••• 0 ; c • •lly FR&Rli!JOF. """rd sRall llo 22 1 • · o purehas,ng •Iii n eq•1p,noR1 ' 18 fer:mal eidsineer may pwreRase sw · · . 23 '"ll'f lie Ylili;ood .~ P"'•o8ures eolallli•hod i• 11,· pphes, •a,v1oes on& • •i . !l••al•r !hon !hi.;: ~=n lh• •Rlieipet•8 8081 of 1a: seol10R. co ... al bi&il~gp;~nl ;- 24 rospons• 19 lh• l.,n ~•••nil dollo"'-+Ro Iii& li1nil -••pph••· soF¥iees ao8 o •i "" ""'" :: gf:¥[~~;i:;~;? ~~~r;g;.~~~~;a:,;:;~~~f ~7:~~:~~¥ ,nail• •II r x .. ousanil fi"a k 11 ' •• •""•ell• a -• 8 21 ollio:r ◄~IV• et lko beginning of: ;•n1•~il dollars. +~e ~iEI u;;;;t ~FB¥t•uel'f ••I ~ia . sea yoor l,y 1n•momnB 8 Jw•IAle•I will i.e wm ffem tf;;ie liiblF0Rasin!iJ 28 - 5 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 5 6 7 8 9 20 21 22 23 24 25 26 27 28 ... ..... Exhibit 1 2. µFBEHUOmoRt FoqwiFomoRts st:iall R0t ee GivideO 80 as t0 aveio tt:io formal FoqwiFemeRts. · 9. +tie roFmal eiooiRg pF0880lslFQS aFe as f0lle11,1~: . ~ · +Ro pwFel:iasiRg offieoF st:iall isswe r -.,·. . . meuu~os oesigROO t0 pF9!alioe FOaseRaele ;w:r R0•1~~ IR~ 1t1Rg BIOS lslSIRS_ 0RQ 0F m0Fe ewFFORt inroFmatieR to e? oissomiRateo wisely. ;;i:~ 6 0 ~~~i~: ~~a~I ::1:::~ WRU~R will poi:mit a. IRStFUOtl0R t0 BiOOOFS' . e. =~otfieati0Rs ooseFibiRg tt:io Feqwii:oo swpplies, gemils eF eqwipmeRt· e. 1 ei:ms aRo seheowles· ' 8 A ' . nRY FQ~lsliFOO b0RO forms· e. GeRoral pre1a1isieRs; ' f. +ho time BR er bof0Fe ,.a.,hiet:i eios ri¥ill be Feeei1100· s 10't:ie o ·tt:i ' , · ' ' re aR "''' whem eios shall eo filoo· . O R. ~ho &late, Umo aRO plaeo 'ilJRQFO BRO !ilt!R~R eies will 68 weliel , 2. I it: the blOOOFS FOfallslOSt 8ROl€lF 1/JROR U:10 eiti· 0 f . :el ~ y 0p0R00. be traRsmittoo aRoJ0F Fo1a1io11i100 e110F tl~e I t .,~ ;:ms ..aas1 o, b1e o0~1s1m0Rts may . roeoi1a100 hy tt:io p1s1FehasiR effi ' . R ei:Re · 0 soaloe roFmal 010s shall be o0e1s1m0Rts. J;oi;mal eies tTmo;e:;e::.,:o tu~,~j :ate a~e plaeo eosigRateo iR ti-lo bio effieeF aRe the aggFogato ,bis prieiRS st:i;II be .. :eaa el p1s1eehely epoRoa ey tl:le ~wFel::iaeing 3 o . a01s1 . . =. • ,Ry peFseR 11i11th i.tJl::lem tl::lo ei~ l;ias . e0RtFaetoo t . . pr-opaFatieR ef ei€1 er pF0p0sal €1001:1m0Rts Jis iR;I' "'~b~_.,~.,, ....... b .e. pro~aro BF assist IR tl;ie pFe1a1isi0R ef tho g00€1s BF tho pelfermaR0e ef 'tt o e .~w m1t a e1€1 ~F prepesal feF tl;io im.1itiRg ei€1s er prepesals. · 8 soF\oiGos s0 spo01fioo iR the Retise 4. J;0Fmal hies r:eeoi1a1ee after tho ooaeliRO ffif F060ipt ef b'o R II by tho eity aA€1 shall be Fet1::1FA0€1 t0 the bie€1eF 1::1 .,.,,., ., ... ; ... , .... , ........ 1 .. s s ... _a .. ~et be a0eopto€1 i~oAtifi0atioR pwFposos. +he pwF0hasing effiee~o::~~ , :R ~s~"~poRIRS I~ Re~essai:,1 feF b1eEloF i.•.ihoso hie ,,,,,as re0ei1a10€1 aftoF tho €1oaer a ~w :it uF1ttoR Rot~0at10R te tho tho Bio was aetwally re00i1a1oe aRB u~at U:10 hie . IR: ~tat1Rg .,.,Rat the ooaol_lRQ was, whoR after tl:io eoaeliRe. 18 SIRS Foiwmee he0a1s1se it was Foeei1a1oe Ii If R0 bids QFQ FOeei·1ee 0F if Fl b'o . R . . soli0itati0R 0061:1meRts, tt:ie ":;0;~;i;0 ;1""8 moet t.""9 ~e~wiFomonts ~~ s~oeifioo iA the iRroFmal l;iieeiRg prneeBUFOS ! U10 eitl1 ! ~OOF mt:y FQISSUO tRe sohe1tat10R wsiRg tho .. . ? ay eease e prneuromoRt. 8· If two OF mei:e Bies aFo Foeer1oe •11ith th t · aRe seP,1iee heiRg oqwal aRe if t~~ .. "', ... _ .... e_ same •eta_l ameuRt er l:IRit pries, €juali~1 Feae¥oFtisiRg f0F Bies, tho ~i~, eewReil may~=~~~e ei~!:::~ ""'111 Ret pe~m!t tt:ie eelay ef 7. IR 00RSi€1eriRg roFmal eios f0F S . ,· a0eept Ut~ BIB 1t 6Reeses. autROFity may wai1a1e miRor eefee • upph~~· SQF\ ie~s aRS Q€jlsllpmeRt, tt:ie ari¥aFeiRg affeet tl::le ~is ~mouRt eF gi1a1e a ~~:i:~1 1~~~=~;~1 ::· :::=~~::0t~~1~:R:~::8sulaFities oe Ret a. f"'ill BIBS SRall 68 eeemeo Fejeetee iJ Fl ·ti, . . . . . p~epesals 'NitRiR RiRety . says after ... ~ho hies .. :a::~ :ouR01I aet_11~R is takeR OR tt:ie eies OF h1eeeFs agree t0 e~eRe a hi€1's effeeti·1e sate " eeR i:eee1.ee. aR€1 epeReo, uRless g . I l! 'I • upoR FO€jlsl8SI 8¥ tt:ie e1ty. as it fi;~:::a:1~R::~1 RR:e•eBs!:~.at~Re;'ty te re€j1s1iFO a_ pelfeFmaRee eeRo iR sueh amouRt applioaele la111 IHl=lo eitl· F8€1 . .,, p :set tRe hest IRteFests ef tRe eity eeRsisteRt •uith 11 ·f UlrBS a p0""'9FFRaR68 80R8 tR t i n eeserieee iR the Rotiee iR1c1itiR~ eios.'e ame1s1R 0 tl::le eeRe sl:lall be ~ Q. ,Aill eeRtraets fBF supplies soruieos ans . tho eost 1a•al1:1e fBF tho oiti· '1 eq1s1ipment shall he awaFoeo hasee OR I· n -~aot:i FRenlh the ei~· maRager ~ 11 9 . 00RtFa6tS tt:iat Ral/8 eeeR awaFiee adm;Rist:a~:el:~(O~~ ~~~e 8~r~:=~~e~Q~2~epeR ef all - 6 - / 0 --· ---~----·-... --.-.. -, ......... __ .,. _____ .,_ ... ·-' ,.,_ .•.. ..., ............ .,. ........ Exhibit 1 3.28.060 Comn p· 2.po ,.1110 negotiation &, 3 A. Tl:ie f)l:IFOhasi1=1~ effioer . . tha~ these listed i1=1 Seotie ma~ a1:1th0r1ee the selioitati 4 'eq"'P"' 1 ••~:v ••fflpelili¥e .::;;~~:.~ .~:d lhe pu,eha:: = :i;:::i•~al_ oerviees elher d II . • oool "'llie """"r .,_ ""· •• "'""' ••PPli•• '" s e ars; a1=1d ... ,... ies, seF¥100s er e . . 3. l'he o , q"lpfflerll 18 greater Iha• fi•• 6 soeo1·t1·ra•· "PPh•• or eq"inr>1ent •• lliewsaod ... ""' ,101=1s aFe 1=1 t . ... .,, are s1::1ot;i tt;i t 7 14 27 • WFllleR ohaRge eoder .:· and •• pa111>1eRI fer••¥ ""~:h•:t lhe '""""""" al a w,illel, •:•ooda••• with this eeoli•• d ""'""""'""' has fi,ol •••• • ••s• shall Be'"'""" ••I••• 28 • add1t1eoal """'P•••af I •••!1•al1og iR a<l¥aRee lh .,. app,ewd ••d """""' d _-••• • Be paid. {Q,d_ NS 627 I • ,,e,k lo tie II••• aml the • '" ~pa~' 3003~ am01::1Rt - 7 - I I Exhib it 1 1 2 3.28,090 CoopeFati¥& puFehasing. 3 TRe p~roR_eu,iAg effioe_F sttall ROl/0 tRe a1o1t!;ioritv to ;oiA witR otboc ageFIOIQS IA 0001;1ci:9~ i.. • J .. u,.,,,-p1:1eli0 er €jl:IOSi 1;11;19 1 • , r-""·. 11'-18 p1:1r0 ... asiAg plerns .er 1;1reorams foe tho u ,... sof\ ieas aAe-er 8g1;1Ig ~ .... ,... l;:, ,. ""'"" p ... ro!;iase ef s1:1pplia lie S; 4 as d t: : ; b .., rJffieA, uy OEmtraot, arraRgemm;it er a9Fa0moF1t as II a arm1RBt1 .,,y _U:ia pu~hasing effisor te ea iR *ha oit-·'s best ·1R*BF -salfl,e01\MtJB~B!:l=De~111-'-l.:lawv11=.1 a~ 5 effioer ma~ su~ 81 ti ~ '"" " ... .: .:-est. The pwr01:lasi AB Ag 6Y ..,b +: \.._ 1 raE? Y .ram a '.'BFIBOr at a orioa estaelisRad bv an .. F,8FI tFIB o, ... er age R B F' a U7 ,,ot!;ior p1:1elio agoA 6 . (~a~. 20Q2)Asyas ma e their p1:1Fol:laso in a sompotiti¥e maF1F10r. ~Ore. NS 62 7 7 3.28.100 E•emptions. 8 A. TRe felle1,s.•ing nreo1:1remonts t · ,.. Fl • oeA raots or traAsaotim~s are eYemoted fre'" th 9 previsieAS of this el:lapter: " .... ,.. -a ---m -1"1 Q 10 ~-:~ergeAsy preowFemeR&G fer eom,tr1:1otieA, eq1:1ipm0Rt er repairs; · e o se1:1Foe geees er services; 11 . 3. Items _req1:1iroe te matel:I er lae oemoatilale w1·tb other furn1·s e 0 1:111;1meRt gro I "-F' "' "' --.. -n--RiAgs, materials O -, f"'m ,...~ ¥ie1:1s Y p1:1ro ... asoe ey U;ie 6ir" 4 G e"t';, F 12 stan€1a~di~et;l_.,tfo~:;; I :i~ ~r:~:R!~:s~=:~r ~F ~::::~!. ~~:::~ment that RQ\IQ 600A 13 e. '=' 11 Y S0F¥I08S _aFle rolatee oRargos; . 1 ' bl" 6-Gee~s er ~0r.'I6es eetaiAee frem er tRre1:1gR agreamoAt J"•itb 14 p1:1 ... 10 er q1:1as1 p1:1eho ageAsy; n "' any gevornmental ' 15 16 !· !Roal pFBporty leases er pwrnt::lases ane related .tiUe ane os6reu f e. RSYFBA00 BAB 00Aes· "" n~• :@0084&~; g "e i:t· · · • 'n ve IsIng m maga;zinas newsnaners er etbe d' rn 'A'e I f ~ · .. ,.. r "' r mo-.11a; · • :Ms e an, anteFtainmeRt er J:)erformors· :~-~era~ oell~otien materials ~r sorvises or ~ther eeel~s or perieeioals; a oar rer1tal~ ~=~ a:~~~ ewes, oeA¥er1tieF1s, trair1iAg, tra,,01 arrangomeAts inolweir1g Rotels, . 13._ Swrpl1:1s FJ~rsenel nreoa&J rn.e.med i.. t"-"-I r-,.. ""'· "" " a ..,y ar10 ... er geverAmont i..1· · 9 pl:lu 10 8AtIty. ~Ore. f),~ 627 ~paFt~, 2QQ2) ... I pwu 16 er qwasi 7 20 21 22 23 24 25 26 27 28 3,28.110 ConstFuetion pFojeets, '>· Go_FltF8&ts for public projects iA tRe 6itol· shell eo e"or . . molu€1mg tt::le Galifornia P1:1elio Gontraot G::€1 [;Y11 •• 9 ;i nee lay apphoalale state lava1s tRe beoal o g p er G 0 • 1. isier1 , Part 1 eA€1 rn,,isie'A 2 Part 3 :its;;~:; ;:rz:.~:~:: ,;:•~~~-:::• ?~:j.w:;~:~~::::• ci:~ t:.:~: _ b¥ IOe •~ ef II,~ tt::le e1ty. CeRtmots for p1:1eho projects shall also 60 " . t,r1g Pict for 1:1se ir1 :~~~=~d bS·p~•ifi~ali••· fer PuDli• W•FI<• c ••• , ... .i~:~ =~·d·~~~-~~·:;;~:~:~:.::~:: . Y ~ reonlaeol( GoFRm1ttee ef tRe fl1:1elio \A'erks Stans 8 ' ot!;iernse gro e e .._ t"-• ----· ar s IAe., f:meept as a ~h<n:;: p VI e uy ... o eity GOl:IFIOil or Urn 6ity manager if tRe 60Atraei 1:1 erI 1 . is withiA RisJ!;ior e I ~ · Pw 0 e~i: projaots ef t\\'OFIFJ fi1,0 tRewsaRe dollars or less may 60 p -mp oyees _1. eroe 8.,,6 ~ .... -arformee by oiP' 7 ... o1:1r1,, 0 Y negotiates oentraot or 6y p1:1ro!;iaso orear.' -8-/~ Exhibit 1 . 23032 ~e➔ ef t~a -•Rt speoiliedia Seot,:'oed•"'s sel fflllR '" tl=la1=1 tho ams + t ev i1=1f8Fmal P jeols less J I le """'"'" ' I lhe 14 Ille lowest "'"l'On .... ea by Olly ·"'!' . . 15 :::: :::er::~r:~:::g~:s~:;~::::il~~n:;:~=!:~:, ~=b~~I:::~~= · edw,es;, · ia•-~IR!I -·a pemng · 16 0 TRe fflm,aJ bidding P"':ffioer shall "1ail ni"''::,~.i0ys belo"' Ille! bi;:,~ d0yo beffl"' lhe 17 . 1. ne l'•'"Ras,ngls et le0ol lhi,ly 08 en I leasl fewR!len 08 •n_ In addition _I• ~-• oenst,wolien '"""" 1:~==• shall be pwbhoR:~~ oi,swl0lieR -'" t?R :Zy manner wlush ,.,11 18 nelioe in\liling "'1ta~n a newspaper el :i:: "'"I' be ad¥mlmo ' -andler ei€1 epom1=1s th€1aa 1=10ti0a i1=1•1iti1=1g_ ferml , ;,~soR"1i1=1atee. ts may ee tFa1=1sm1tte€1 19 paper -I l>e •·•18e ~ • • - 0 deowmen •-; ,;. i~lo,...etion '": ~d•.:.,. feasible, bv ~ _ , _ el, biQo or "'"I', in 20 I'""" 2. Whoa lho oily . . , or inffl,...ahly '" "" . . 9 ••·er lhe ,nleFflBI.. -0ny "'iner '""9•10,lly TRe oil>· sewne,I 21 roee1•e • -ay "'81¥8 1 a ·111e bidder. "' 3. The oily"'~ i"a11 bids p,eoeR~ · Jo•uesl ,espens, 22 ·1s sole diso,-.,lien, •Bl~:l,all be awar<le9 lo 11,e " lhe projesl may hbe ' 4 TJ,e ooallilo els f m,al p,eoeQw,-.,, I uiti,owl 11111 er ,.; a •II 1e ..... i oonH -;, d IRF8W!lh lhe ~ elialeQ seal .... " 23 sl,all awar 1,·ao are reoe1,e aooownl OF Reg 6 II RO I b'l "'""' 92' 24 "· • oily ""'P1•Y••s. • s 637 fpa,tj, 3(), ' paFfeF~e€1 -~"ih this soeti01=1. ~0F€1. ~, 26 I I I 21 I I I 28 -9-/3 ~-~~,_,¥ ....... -~. •· • '"" ...•.•... ,. ,• .•• , •. _.. •. -~--···'·'•·, ~·--·-·--····--,.,.,.. • • ··-..•. ,~-•.. _.. .•• , ~-• ...... .,.."·"'-·~---:. Exhibit 1 1 3.28.120 ExaeutiaA af ehanga orders. 2 Tho eity eo1;1neil · may ey rosol1;1tion authoriii!o tho eity manager to approla'o ehango on;jors on a pr@joet to an ammrnt it €1otorminos approf)riato for a largo, eomplox projoot. (Ord. 3 tilS 037 (paFt➔, 3QQ3) 4 5 3,28,130 Ema,ganeias. In eases of omor=goncy, as eotormined ey tho eity couneil, im~lueing, eut not limited to, 6 states of emorgenoy dofino€1 in Co¥ornrriont Code Section 9e§9, as may eo amended fr=om time to time, when repair or replaeoments are necessaF)' to permit U10 eontinued 7 eonEluot of tho operation or sePv'ioos of a puelie ageney or to a¥oiEI danger to life or property, the eity manager may then f!JFOeeo€1 at onee to roplaeo or repair any puelio 8 facility andtor procure the neoessary 0€1Uipment, soF¥iees aml supplies, without adopting 9 tho plans, speoifieations, or working details or gi1e•ing notieo of eids to lot eontraets. Emergency 1.¥ork may ee eomplotoo ey day laeor under tho dirootion of tho eity manager, 10 er ey eontraotor, or a eomeination of tho tv.io. Tho oity manager is dolegato€1 the power to declare a puelie emorgoney subjoet to eonfirmation ey the eity eeuneil, tiJy a four fifths 11 i.1ote at its next reg1a1lar meeting follov.1ing tho eity manager doolaring a putiJlie emorgenoy. (Ord. tilS 637 (part), 3QQ3) 12 13 SECTION 2: That Chapter 3.28 of the Carlsbad Municipal Code is enacted in its entirety 14 and reads as follows: .15 16 17 18 19 20 Sections: 3.28.01 O Title. 3.28.020 Purpose. 3.28,030 Definitions. CHAPTER 3.28 PURCHASING 3.28,040 Procurement and Disposition Responsibilities. 3.28.050 Procurement of Goods. 3.28,060 Procurement of Professional Services and Services. 21 3.28.070 Competitive Negotiations for Goods. Services and Professional 22 Services. 23 24 25 26 27 28 Ill Ill 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. Severability -10 - • ,., • .-~~u~•"'"-"~-••►-~-•-_,,, .. ,. ••-.,•-••' '"•-•---•-.:.,-.,_ ~. •••-.. ,.~--~-•-•"•••• ••- 11/ Exhibit 1 1 3.28.010 Title. 2 This chapter shall be known and may be cited and referred to as the "Purchasing Ordinance of the City of Carlsbad." 3 4 3.28.020 Purpose. 5 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 6 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 7 system. · 8 3.28.030 Definitions. 9 A. For the purposes of this chapter. the following definitions apply: 10 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: 11 2. Best Value. "Best Value" means the Best Value to the City based on all factors that may include the following: · 12 · a. Cost" 13 14 15 16 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 purchases/Services with the City: and 17 f, The ability of a Contractor to provide future maintenance, repairs, 18 19 20 21 22 23 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 24 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 25 26 27 28 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. -11 -;5 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 1 8. End User. · "End User" means the Ci~ of Caclsbad and includes, an~ Ci~ de12artment/division · reguesting Goods, Services, Professional Services, and/or Construction Projects. 9. Fixed Asset Egui12ment. "Fixed Asset Egui12ment" means egui!;!ment of a 12ermanent nature that has a useful life of more than one ~ear and meets or exceeds a monetaQ! value established by the Finance Director. 10. Goods. "Goods" means articles or items that are moveable at the time of sale1 including but not limited to egui12ment1 su~12lies and/or materials. 11. Procurement. "Procurement" or "Procure" means the a~uisition of Goods, Services, Professional Services, or Construction Projects by the Ci~, including but not limited to ~urchasing, renting or leasing, and all functions and 12rocedures 12ertaining to such acguisitions. 12. Professional Services. "Professional Services" means the Procurement Qf Services that involve the exercise of 12rofessional discretion and inde~endent judgment based on advanced or s~ecialized knowledge, ex1;1ertise or training gained by formal stud~ or ex1;1erience. Such Professional Services include, but are not limited to, Services ~rovided by a121;1raisers, architects, engineers, instructors, insurance advisors, ~hysicians and/or other SQecialized consultants. Professional Services includes, but is not limited to, those 1;1rofes!;iionals as defined in California Government Code section 4526. Professional Services does not include attorney/legal services. 13. Purchasing Officer. "The Purchasing . Officer" means the 1;1erson(sl res12onsible for the Procurement of Goods, Services, Professional Services, and/or Construction Projects in accordance with the 12rovisions of this cha12ter. The 12erson(sl designated, in writing, by the Ci~ Manager as the Purchasing Officer of the Ci~. or an individual s12ecifically authorized by the Purchasing Officer to act on his or her behalf. 14. Res12onsible Bidder. "Res12onsible Bidder'' means a bidder determined by the Awarding Authori~: · a. To have the abili~. ca12aci~. ex12erience and skill to 12rovide the Goods, Services, Professional Services, and/or Construction Projects in accordance with Bid S1;1ecifications, and if a1212licable: b. To have the ability to ~rovide the GQQdS, Services, Professional Services, and/or Construction Projects ~rom12tly, or within the time s12ecified, and if amJlicable: C. To have egui12ment, facilities and resources of such ca12aci~ and location to enable the bidder to 12rovide the reguired Goods, Services, Professional Services, and/or Construction Projects and if ai:;ii:;ilicable: d. To be able to ~rovide future maintenance, re12air, 12arts and Service for the use of the Goods and/or Construction Projects 12urchased, and if a12~licable: e. To have a record of satisfactoQ! ~erformance under i:;irior Contracts with tbe Ci~ or other i:;iurchasers where such bidder has ~reviously been awarded such Contract. 15. Resi:;ionsive Bidder. "Res12onsive Bidder" means a bidder determined by the Awarding Authori~ to have submitted a com1;1lete Bid or 1;1roposal which conforms in all material res~ects · to the reguirements of the Bid, Contract, or other ~roposal documents. 16. Services. "Services" means work 12erformed, or labor, time and effort expended, by the Contractor. -12 -I Lt 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 1 17. S12ecifications. "S12ecifications" means the desQri12tion of the 12hysical and/or functional characteristics or Qf the nature of the required Goods, Services, Professional Services, and/or Construction Projects. 18. Sur12lus Personal Pro12e~. "Sumlus Personal Pro12e~" means Goods that are owned by the City and which are no longer needed or which are obsolete or unserviceable1 or 12ro12e~ that is a by-12roduct (e.g. scra12 metal, used tires and oi11 etc.). 19. UPCCAA. "UPCCAA" means Uniform Public Construction Cost Accounting Act. (California Public Contract Code Section 22000, et seq) 3,28,040 Procurement and Disposition Responsibilities, A. End User. The End User shall: 1. ldenti~ its Procurement needs and the availabili~ Qf funding; and 2. Submit to the Purch~sing Officer St2eQificatiQns for the required Goods, Services, Professional Services1 and/or Construction Projects; and 3. Partici12ate in the evaluation of Bids and 12ro12osals; and 4. lns12ect Goods delivered, Services ~erformed1 Professional Services rendered, and/or Construction Projects to determine conformi~ with the requirements set forth in the Bid or Pro~osal Documents and with contractual obligations, and authorize 12ayments for · conforming Goods, Services, Professional Services, and/or Construction · Projects. B. Purchasing Officer. The Purchasing Officer shall be res12o□sible for the Procurement of Goods, Services, Professional Services, and/or Construction Projects for the Ci~ in accordance with the 12rovisions of this cha~ter. Exce12t as 12rovided for herein1 no Procurement shall be made contra~ to the ~revisions of this cha12ter. Any Agreement or Contract for the ~urchase of Goods, Services, Professional Services, and/or Construction Projects made contra~ to the 12rovisions of this cha12ter shall be void and any claim O[ demand against the Ci~ based thereon shall be invalid. The Purcbasing Qfficer shall: 1. Pre12are and recommend to the Ci~ Manager o~erational ~rocedures and forms for the Procurement of Goods, Services, Professional Services, and/or Construction Projects in coo12eration with the End Users and for the dis12osal of Sur12lus Personal Pro12e~; · 2. Procure or su12ervise 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 Ci~ Council; 4. Whenever 12ossible, establish standardized s~ecifications and consolidation of requirements for Goods and/or Services required by two or more End Users; 5. Sell or otherwise diS(:?QSe of Sur(:?lus Personal Pro(:?e~1 and lost and unclaimed 12ro12e~ held b~ the Ci~'s 12olice de12artment. C. Ci~ Manager. The Ci~ Manager shall be the Awarding Authorit~ for: 1. All Procurement of Goods for which the cost to the Ci~ is one hundred thousand dollars (~100,000) or less; 2. All Ca12ital Outla~ Items a1212roved by the Ci~ Council during the budgeting 12rocess regardless of the dollar amount; 3. All Contracts for Services and Professional Services of one hundred thousand (~100,000) or less 12er Agreement year; 4. 811 Construction Project Contracts less than the formal bidding threshold established by the UPCCAA: -13 -17 Exhibit 1 5.Any change order, amendment or extension to an existing Contract whichwhen added to the Contract amount. including prior change orders. is within the authority 2 granted in Sections 1, 2, 3 and 4 above: 6.Any Construction Project change order up to the dollar amount equal to the3 contingency amount set when the underlying Contract was awarded: . 4 7.Any Construction .Project change order in which the total amount of theoriginal Contract and all amendments and change orders are less than the formal bidding 5 threshold established by the UPCCAA: 8.Any change order or amendment to a non-Construction Project Contracta awarded by the City 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 7 of one hundred thousand dollars ($100,000} per Agreement year. 9.Any extensions to a Contract awarded by the City Council as delegated in8 the Contract or the approving resolution. 9 10.The City Manager shall approve alternate Procurement methods. ifappropriate. for use on an experimental basis. and recommend to the City Council 10 additions. deletions or modifications to the City's Procurement methods. 11.The City Manager shall have the authority to delegate the awarding of 11 Contracts. amendments and change orders for Goods. Services. Professional Services. and/or Construction Projects as set forth in this chapter by Memorandum or by 12 Administrative Order. 12.Each month the City Manager shall send to the City Council a report of all13 Contracts that have been awarded over the formal Bidding requirement. 14 D.City Council. The City Council shall be the Awarding Authority for:1.Any Procurement of Goods. Services and/or Professional Services costing 15 more than $100,000 per agreement year; 2.Any Construction Project Contract at or above the formal bidding threshold 16 established by the UPCCAA: 17 18 3.Any change order or amendment that exceeds the City Manager'sauthority. E.City Attorney. The City Attorney may be the Awarding Authority for the Procurement oflegal services. regardless of the dollar amount. up to the amount of appropriations 19 •available. 20 21 22 23 24 25 26 27 28 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 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 thanthe dollar amount established for formal bidding for Goods in Section 3.28.050(C} (1) herein: or - 14 - Exhibit 1 5. Any change order, amendment or extension to an existing Contract which when added to the Contract amount, includiRg prior change orders, is within the authority 2 granted in Sections 1, 2, 3 and 4 above: . 6. Any Construction Project change order up to the dollar amount equal to the 3 contingency amount set when the underlying Contract was awarded: · 4 7. 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 · 5 threshold established by the UPCCAA; . 8. Any change order or amendment to a non-Construction Project Contract 6 awarded by the City 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 7 of one hundred thousand dollars ($100,000) per Agreement year. 9. Any extensions to a Contract awarded by the City Council as delegated in 8 the Contract or the approving resolution. 9 10. The City Manager shall approve alternate Procurement methods, if appropriate, for use on an experimental · basis, and recommend to the City Council 10 additions, deletions or modifications to the City's Procurement methods. 11. The City Manager shall have the authority to delegate the awarding of 11 Contracts. amendments and change orders for Goods. Services, Professional Services, and/or Construction Projects as set forth in this chapter by Memorandum or by 12 Administrative Order. 13 12. 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. 14 D. City Council. The City Council shall be the Awarding Authority for: 1. Any Procurement of Goods, Services and/or Professional Services costing 15 more than $100,000 per agreement year: 2. Any Construction Project Contract at or above the formal bidding threshold 16 established by the UPCCAA: 17 181 19 20 21 22 23 24 25 26 27 28 3. Any change order or amendment that exceeds the City Manager's authority. E. City Attorney. The City Attorney may be the Awarding Authority for the Procurement of legal services, regardless of the dollar amount, up to the amount of appropriations 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 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) herein: or -14 -/9 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 1 b. When no Bids are received ~ursuant to the formal Bid procedures established; or C. When all Bids reQeived substaotially: exceed the Ci~'s estimated costs1 as determined by: the Purchasing Officer through the formal bidding ~rocedure. d. The Ci~ Council may: designate ~~es or classes of Procurements costing more than the dollar amount established for formal bidding in Section 3.28.0S0(Cl (1l herein; which may: be ~urchased through the use of informal bidding ~rocedures whenever the Ci~ Council finds that use of the informal bidding ~rocedure is advantageous to the Ci~ consistent with a~~licable law. 2. The informal bidding ~rocedure shall be as follows: a. Bids shall be obtained btwritten or oral reguest. b. When ~ossible1 a minimum of tbree bidders sbQ!.!ld be solicited. C. Best Value criteria, if used, must be determined before Bids/guotes are ~ublished Qr distributed to ~otential bidders/su~~liers. d. Res~onses shall be in writing1 and ma~ be transmitted b~ facsimile, by: mail1 electronicall~ over the Internet, or by: an~ other means of delive~ as described in the Bid Documents. e. The award shall be based on Best Value to the Ci~ or the lowest Bid submitted by: a Res~onsive Bidder, as determined by: the Purchasing Officer, and shall be awarded b~ the Ci~ Manager. C. Formal Bidding for Goods: 1. Formal bidding ~rocedures shall be utilized when the antici~ated cost of the Goods is greater than thi~ thousand dollars ($30,000}. The Bid limit shall be reviewed annually: and adjusted in res~onse to the San Diego -All Urban Consumers Consumer Price Index. The Purchasing Officer shall calculate the effect Qf the cumulative Qhange in the index to thi~ thousand dollars ($30,Q00} beginning iri Fiscal Year 2009. Adjustment to the bid limit will be made in five thousand dollar increments ($5,000} whenever the calculated value exceeds a ~reviousl~ 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 ~ear b~ memorandum from the Purchasing Officer. 2. Procurement reguirements shall not be divided so as to avoid the formal bidding reguirements. 3. The formal bidding ~rocedures shall be as follows: a. The Purchasing Officer1 or his/her designee, shall issue a notice inviting Bids using one or more methods designed to ~rovide reasonable ~ublic notice in a manner which will ~ermit current i□forrnation to be disseminated widely:. The notice shall include: i. instruction to bidders; ii. S~ecifications describing the reguired Goods; iii. Bid forms and schedules; iv. an~ reguired bond forms; V. general Contract ~rovisions; vi. the time on or beforewhich Bids will be received; vii. where and with whom Bids shall be filed; viii. the date, time and ~lace where and when Bids will be ~ublicly: 01;?ened; 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 -15-~o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 1 Bids, timel~ received, will be (2Ublicl~ 0(2ened b~ the Purchasing Officer1 or his/her designee, and the aggregate Bid (2ricing stlall be read alQud. C. An~ (2erson or enti~ with whom the Ci~ has contracted to 12re[2are or assist in the 12re12aration of Bid or Pro(2osal Documents is ineligible to submit a Bid or PrQQQsal for the 12rovision of the Goods so s12ecified in the notice inviting Bids or Pro12osals. d. Formal Bids received after the deadline for recei(2t of Bids shall not be acce(2ted b~ the Ci~ and shall be returned to the bidder uno[2ened1 unless 012ening is necessa~ for identification 12ur12Qse§. The PurQbasing Officer1 or his/her de§igaee, shall submit written notification to the bidder whose Bid was received after the deadline stating what the deadline was. when the Bid was actuall~ 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 §QeQified in the solicitation documents1 the Purchasing Officer ma~ rei§sue the solicitation using the informal bidding [2rocedures1 negotiate a Contract based ugon the §Olicitation 1 without further com12l~ing witb this sectiQ[] Qr the Ci~ ma~ Qease the ProQurement. 5. If two or more Bids are received with the same total amount or unit grice, guali~ and service being egual1 and if the gublic interest will not germit the dela~ of re- advertising for Bids1 the Ci~ Council, or the Ci~ Manager if the Procurement is under one bundred thousand dollars (S100,000), ma~ exercise SQund discretiQ□ and acce12t the Bid it chooses. 6. In considering formal Bids for Goods, the Awarding Authori~ ma~ waive minor defects or irregularities, Qrovided that the irregularities do not affect the Bid amount or give a Qarticular bidder an advantage over others. 7. All Bids shall be deemed rejected if no Ci~ Qouncil or Ci~ Manager actiQn is taken on the Bids or grogosals within · nine~ (90) da:ts after the Bids have been received and ogened, unless bidders agree to extend a Bid's effective date ugon reguest b~the Ci~. D. Additional Resgonsibilities and Authorities: 1. The Ci~ shall have the authori~ to reguire a gerformance bond in such amount as it finds reasonabl~ necessa~ to 12rotect the best interests of the Ci~ consistent with applicable law. If the Ci~ reguires a performance bond1 the amount Qf the bond shall be described in the notice invitiag Bids and Bid Proposal Documents. 2. All Contracts ma~ be awarded based on the Best Value for the Ci~. Best Value criteria, if used, must be determined before Bids/guotes are published or distributed to potential bidders/su1212liers. 3. The Cit~ Manager shall be the Awarding Authori~ for Procurement of Goods for which the cost to the Ci~ is one hundred thousand dollars (S 1001000) or less. 4. The Ci~ Manager shall be the Awarding Authori~ fQr all Capital Outla~ Items a12proved b~ the Ci~ Council during the budgeting 12rocess regardless of the dQllar amount. 5. The Ci~ Council shall be the Awarding Authori~ for Procurement of Goods for which the cost to the Ci~ is more than one hundred thousand dollars (S100,000) and have not been greviousl~ ag12roved as CaQital Outla~ items in the budget Qrocess. E. The Ci!ts Goods Procurement practice Qrohibits unlawful activi~ including, but not limited to, rebates, kickbacks, or other unlawful consideration. No Qi~ em12lo:tee shall (2artici(;late in the selection · Qrocess if that em(21o~ee has a relationshiQ with a person or business enti~ seeking a Contract with the Ci~ that would subject that em12lo~ee to the prohibition of Government Code section 87100 (Conflicts of Interest). -16-JI 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 1 3.28.060 Procurement Of Professional Services and Services. A. Profession~! Services Procurement: 1. Reguest for ProQosals should be used when Professional Services are needed. The selection of Professional Services for, Qrivate architectural1 landscaQe architectural, engineering, environmental, land surv~ing or Construction Project management firms should be based on the 12rofessional gualifications necessa~ for the satisfacto~ Qerformance of the Professional Services reguired1 on demonstrated comQetence, and on a fair and reasonable Qrice consistent with Government Code section 4526. 2. Procurements of Prgfessional Services where the total cost of Services are thi~ thousand dollars ($30,000} or less shall be made using simQlified and cost effective OQerational Qrocedures and forms a(2(2rQved by the Ci~ Manager. If tbe cost of needed Professional Services is exE!ected to exceed $30,0001 at least three E!rOE!OSals should be solicited for the Professional Service needed whenever E!0Ssible. The Purchasing Officer may; waive the reguirements for solicitation of multiE!le E!roE!osals if gnly; one individual or firm can reasonabl:i: E!rovide the Professional Services, and it is in the best interest of the Ci!y; to waive the reguirement B. Small Procurements of Services: 1. Procurements of Services where the total cost of Services are thi~ thousand dollars ($30,000} or less in any; one transaction, shall be made using simQlified and cost effective o~erational. ~rocedures a~Qroved by; the Ci!y; Manager and forms a~Qroved by; the Ci!y; Manager. The use of formal or informal Bids is not reguired, but is considered the best management ~ractice. The small Procurement limit shall be reviewed and adjusted annuall:i: Qer the Qrocedures set forth in Section 3.28.050(Cl(1). Procurement of Services reguirements shall not be divided so as to constitute several small Procurements under this subsection. C. Informal Bidding for Services: 1. Informal bidding Qrocedure, as set forth in Section 3.28.050(8)(2) ma:i: be utilized: a. When no Bids are received ~ursuant to the formal Bid Qrocedures established; or b. The Ci!y; Council ma:i: designate !:i:E!es or classes of Procurements costing more than the dollar amount established for formal bidding in Section 3.28.060(Dl(1) herein; which may; be QUrchased through the use of informal bidding ~rocedures whenever the Ci!y; Council finds that use.of the informal bidding ~rocedure is advantageous to the City; consistent with aimlicable law. D. Formal Bidding for Services: 1. Formal bidding Qrocedures shall be utilized when the antici~ated cost of the Services is greater than thi~ thousand dollars ($30,000}. The Bid limit shall be reviewed annuall:i: and adjusted in resr;?onse 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 thi~ 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 E!reviously; set bid limit b:i: 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. -17-()_;) Exhibit 1 2. Procurement requirements shall not be divided so as to avoid the formal bidding requirements. 2 3. The formal bidding procedures and requirements shall be as set forth in Section 3.28.050(C) and Section 3.28.050<0). 3 4. The City Manager shall be the Awarding Authority for Procurement of 4 Services and Professional Services for which the cost to the City is one hundred thousand dollars ($100,000} or less per Agreement year. 5 5. The City Council shall be the Awarding Authority for Procurement of Services and Professional Services for which the cost to the City is more than one 6 hundred thousand dollars ($100,000} per Agreement year. 7 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 City 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 City that would subject that employee to the prohibition of Government Code section 10 87100 {Conflicts of Interest). 11 3.28.070 Competitive Negotiations for Goods. Services. and Professional Services. 12 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: 13 14 15 16 17 18 19 20 21 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(0)(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. 22 D. The City Council shall award Contracts for Goods and/or Services over one hundred 23 thousand dollars ($100,000} per Agreement year. 24 3.28.080 Construction Projects. 2s 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, 26 the Local Agency Public Construction Act, which includes the adoption by the City of the 27 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 28 -18 - 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 1 of the Standard S12ecifications for Public Works Construction and the latest su1212lement thereto, ado12ted by the Green book Committee of the Public Works Standards, Inc., exce12t gS otherwise 12rovided by the Cilv Council or the Cilv Manager if the Contract is within his/her authority.· 1. Construction Projects -less than the amount sgecified in Section 22032 (a) of the California Public Contract Code may be performed by Cilv emgloyees by force account, by negotiated Contract or by 12urchase order. 2. Construction Projects less than the gmoynt specified in Sectio□ 22032 (bl of the Cglifornia Public Contract Code may be let to Contract by informal procedures set forth in this section. 3. Construction Projects of more than the amount specified in Section 22032 (cl of the California Public Contract Code shall be let by formal biddi□g procedure. 4. It shall be unlawful to sglit or se12arate work or 12rojects into smaller work orders on projects fQr the purpose of evading the provisions of this chapter. · 5. The Cilv 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 the following procedures: a. The Purchasing Officer or his/her designee shall develop a list of gualified Contractors eligible to submit Bids on informal Contracts awarded by the Ci:tv. 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 designee shall mail notice inviting informal Bids to all Contractors on the list of gualified Contractors and construction trade journals not less than ten (1 O} 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 Authori:tv deems feasible, Bid Documents may be transmitted and/or received over the Internet. · e. The Awarding Authorilv may in its sgle discretion reject any or all Bids presented and waive any minor irregularilv 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 perfQrmed by Ci!Y employees, by force account or negotiated Contract without further complying with this section. f. The City Manager or his/her designee shall award all informal Contracts. 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 (30l 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 news12a12er of general circulation in the Ci:tv. In addition to the news12aper1 the notice inviting formal Bids may be advertised in any manner which will permit the information to be widely disseminated. b. When the Awarding Authorilv deems feasible, Bid Documents may be transmitted and/or received over the Internet. -19-;)1/ 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 C. Th , ........ , ~.~ .. , . ..,· --;_ .,,,_._ ...... , -, ... Exhibit 1 e Awarding Authority may waive any minor irregularity or informality in such Bids or may, in its sole discretion. reject all Bids presented. d. Th e Contract shall be awarded to the lowest Responsive, Responsible Bidder, e .. If may be performed by no Bids are received through the formal procedure, the project City employees, by force account or negotiated Contract without this section. further complying with f. Th e City Council shall award all formal Contracts. 3.28.090 Execution O f Change Orders And Amendments. A. No amendment to written change order an Agreement or Contract shall be made without the issuance of a or amendment, and no payment for any such change or made unless a written change order or amendment has first been d in accordance with this section designating in advance the wgrk ount of additional compensation to be paid. amendment shall be apprgved and execute to be done and the am B. The City Council may by resglution authorize the City Manager to approve change n amount it determines appropriate for a-large, complex project. orders on a project to a 3.28.1 oo Cooperative Purchasing. The Purchasing Office r shall have the authority to join with other public or guasi-public e purchasing plans or programs for the purchase of Goods and/or arrangement or Agreement as allowed by law and as determined cer to be in the City's best interest. The Purchasing Officer may ndor at a price established by another public agency when the agencies in cooperativ Services by Qgntract, by the Purchasing Offi buy directly from a ve other agency has mad e their purchase in a competitive manner. 3.28.11 O Exemptions. A. The following Proc urements. Contracts or transactions are exempted, as determined rity, from the provisions of Chapter 3.28: by the Awarding Autho 1. Emergen cy Procurements for Construction. Goods or Services: 2. Goods, Services and/Qr Professional Services that can be reasonably ngle source: obtained from only a si 3. Items reg materials or eguipment uired matching or being · compatible with other Goods, furnishings, previously purchased by the City: 4. Goods, f standardized for the Ci urnishings, types of materials or equipment that have been ty by the City Manager or by the City Council; 5. Utility Se rvices and related charges: · 6. Goods, Services and/or Professional Services obtained from or through vernmental, public or quasi-public agency: Agreement with any go 7. 8. 9. 10. 11 . 12. Real prop erty leases or purchases and related title and escrow fees: Insurance and bonds: Advert is in gin magazines, newspapers or other media; art, entertainment or performers: Works of Libra~ co llection materials or Services or other books or periodicals: Members hotels. car rentals and hip dues. conventions, training. travel arrangements including airfare: -20- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 13. public entify. E Surplus Personal Propem! owned by another government1 public or xhibit 1 guasi- 14. Situations where solicitations of Bids · or proposals for Goods, Se rvices horify. and/or Professional Services would be1 i□ tbe discretion Qf the Awarding Aut impractical. unavailing, impossible, or not in the best interests of the Cify. 3.28.120 Emergencies. In cases of emergency, as determined by the Cify Council, including, but not limit ed to. ended tinued life or public opting . tracts. nager. power r,.fifths ency. states of emergency defined in Government Code Section 8558, as may be am from time to time, when repair or replacements are necessa!}: to permit the con conduct of the operation or Services of a public agency or to avoid danger to propem!, the Cify Manager may then proceed at once to replace or repair any facilify Qr infrastructure and/or PrQQ!.lre the necessa!}: Goods and/or Services ad the plans, Specifications, or working details giving notice of Bids to let Con Emergency work may be completed by day labor under the direction of the Cify Ma or by Contractor, or a combination of the two. The Cify Manager is delegated the to deQlare a public emergency subject tQ QQnfirmation by the Cify CQY□Qi11 by a fQ!.I vote at its next regular meeting following the Cify Manager declaring a public emerg 3.28.130 Prevailing Wages A This section is intended to supersede the provision of the Public Contract and Labor Code reguiring payment of prevailing wages, and1 except as express Code ly set Code of the forth in this section1 the provisions of the Public Contract Code and the Labor pertaining to prevailing wages sball have !lQ application to Construction CQntracts Cify of Carlsbad or its agencies. B. Payment of prevailing wages (:!Ursuant to Labor Code Section 177 compliance with the prevailing wage reguirements of Labor CQde Section 1770 e 0 and t seg. encies ejects shall not be reguired for any public works entered into by the Cify or any of its ag except when reguired as a condition of any Federal or State grants and on other pr determined by the Cify Council to be of statewide concern. 1. For each public project of less than the amount specified in Section 22032 her or d that . (bl of the California Public Contract CQde 1 the Cify Maoager shall determine whet not it is in the Ci!ts best interest to reguire prevailing wages fQr that project an determination shall be included in the □otiQe inviting Bids. 2. For each Construction PrQject of more than the amount specified in S 22032 (bl of the California Public Contract Code, the Cify Council shall dete ection rmine reject whether or not it is in the Cify's best interest to reguire prevailing wages for the p and that determination shall be included in the notice inviting bids. 3;28.140. Severability If any section, subsection, sentence, clause or phrase of this Chapter is for any reason held invalid or unconstitutional by the decision of any court of competent jurisdiction1 the decision will not affect the validify of the remaining portions of this Chapter. The Cify Council declares that it would have passed the ordinance codified in this Chapter and each section, subsection, sentence. clause or phrase -21 - Exhibit 1 1 contained in it irrespective of the fact that any one or more sections. subsections. sentences. clauses or phrases are declared invalid or unconstitutional. 2 3 4 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 itto be published at 5 6 least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption or chartered. 7 8 9 10 11 12 13 14 15 INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City 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: APPROVED AS TO FORM AND LEGALITY 16 17 18 19 20 21 22 23 24 25 26 27 28 RONALD R. BALL, City Attorney CLAUDE A. LEWIS, Mayor ATTEST: LORRAINE M. WOOD, City Clerk -22-J1 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: Exhibit 2 2 3 4 5 6 7 8 9 SECTION 1: That existing Chapter 3.28 of the Carlsbad Municipal Code is repealed in its entirety: 10 SECTION 2: That a new Chapter 3.28 of the Carlsbad Municipal Code is enacted 11 in its entirety .and reads as follows: 12 13 14 CHAPTER 3.28 PURCHASING 15 Sections: 16 17 18 19 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 20 Services. 21 22 23 24 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. Severability 25 3.28.010 Title. 26 This chapter shall be known and may be cited and referred to as the "Purchasing Ordinance of the City of Carlsbad." 27 28 / / / - 1 - Exhibit 2 3.28.020 Purpose. 2 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 4 exchange for public funds and to safeguard the quality and integrity of the purchasing system. 5 6 7 3.28.030 Definitions. 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; 8 2. Best Value. "Best Value" means the Best Value to the City based on all 9 factors that may include the following: 10 11 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; 12 d. The character, integrity, reputation, judgment, experience and 13 efficiency of a Contractor; e. The quality of a Contractor's performance on previous 14 purchases/Services with the City; and f. The ability of a Contractor to provide future maintenance, repairs, 15 parts and Services for the use of the Goods and Services purchased. 3. Bid, Contract or Proposal Documents. "Bid, Contract or Proposal 16 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 17 soliciting Bids or proposals. 18 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 19 Director. · 5. Construction Projects. "Construction Projects" or "Construction" means 20 those public projects defined in California Public Contract Code section 22002(c). 6. Contract. "Contract" is synonymous to "Agreement" and, regardless of 21 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. 23 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 24 of Goods, Services, Professional Services, and/or Construction Projects. 8. End User. "End User" means the City of Carlsbad and includes, any City 25 department/division requesting Goods, Services, · Professional Services, · and/or Construction Projects. 26 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. 28 -2- 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 not 3 limited to purchasing, renting or leasing, and all functions and procedures pertaining to 4 such acquisitions. · 12. Professional Services. "Professional Services" means the Procurement of 5 Services that involve the exercise of professional dis.cretion and independent judgment based on advanced or specialized knowledge, expertise or training gained by formal . 6 study or experience. Such Professional Services include, but are not limited to, Services provided by appraisers, architects, engineers, instructors, insurance advisors, physicians 7 and/or other specialized consultants. Professional Services includes, but is· not limited to, those professionals as defined in California Government Code section 4526. 8 Professional Services does not include attorney/legal services. 9 13. Purchasing Officer. "The Purchasing Officer" means the person(s) responsible for the Procurement of Goods, Services, Professional Services, and/or 10 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 11 individual specifically authorized by the Purchasing Officer to act on his or her behalf. 14. Responsible Bidder. "Responsible Bidder'' means a bidder determined by 12 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 14 Bid Specifications, and if applicable: b. To have the ability to provide the Goods, Services, Professional 15 Services, and/or Construction Projects promptly, or within the time specified, and if 16 17 18 19 20 21 22 23 24 25 26 27 28 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 documents. 16. Services. "Services" means work performed, or labor, time and effort expended, by the Contractor. . 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.). 19. UPCCAA. "UPCCAA" means Uniform Public Construction Cost Accounting Act. (California Public Contract Code Section 22000, et seq.). -3- 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, 4 Services, Professional Services, and/or Construction Projects; and 3. Participate in the evaluation of Bids and proposals; and 5 4. Inspect Goods delivered, Services performed, Professional Services rendered, and/or Construction Projects to determine conformity with the requirements set 6 forth in the Bid or Proposal Documents and with contractual obligations, and authorize payments for conforming Goods, Services, Professional Services, and/or Construction 7 Projects. . B. Purchasing Officer. The Purchasing Officer shall be responsible for the Procurement 8 of Goods, Services, Professional Services, and/or Construction Projects for the City in 9 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 10 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 11 any claim or demand against the City based thereon shall be invalid. The Purchasing Officer shall: 12 1. Prepare and recommend to the City Manager operational procedures and forms for the Procurement of Goods, Services, Professional Services, and/or 13 Construction Projects in cooperation with the End Users and for the disposal of Surplus 14 Personal Property; . 2. Procure or supervise the Procurement of all Goods, Services, Professional 15 Services, and/or Construction Projects needed in coordination with End Users; 3. Process the Contracts awarded administratively and/or by City Council; 16 4. Whenever possible, establish standardized specifications and consolidation of requirements for Goods and/or Service.s required by two or more End Users; 17 5. Sell or otherwise dispose of Surplus Personal Property, and lost and 18 unclaimed property held by the City's police department. C. City Manager. The City Manager shall be the Awarding Authority for: 19 1. All Procurement of Goods for which the cost to the City is one hundred thousand dollars ($100,000) or less; 20 2. All Contracts for Services and Professional Services of one hundred thousand ($100,000) or less per Agreement year; 21 · 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; 24 5. Any Construction Project change order up to the dollar amount equal to the contingency amount set when the underlying Contract was awarded; 25 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 26 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 28 - 4 -3\ 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 4 appropriate, for use on an experimental basis, and recommend to the City Council additions, deletions or modifications to the City's Procurement methods. 5 10. The City Manager shall have the authority to delegate the awarding of Contracts, amendments and change orders for Goods, Services, Professional Services, 6 and/or Construction Projects as set forth in this chapter by Memorandum or by Administrative Order. 7 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. 8 D. City Council. The City Council shall be the Awarding Authority for: 9 1. Any Procurement of Goods, Services and/or Professional Services costing more than $100,000 per agreement year; 10 2. Any Construction Project Contract at or above the formal bidding threshold established by the UPC CAA; 11 3. Any change order or amendment that exceeds the City Manager's authority. 12 E. City Attorney. The City Attorney shall be the Awarding Authority for the Procurement of legal services, regardless of the dollar am(?unt, up to the amount of appropriations 13 available. 14 15 3.28.050 Procurement Of Goods. A. Small Procurements: 16 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 17 effective operational procedures and forms approved by the City Manager. The use of 18 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 19 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. 20 B. Informal Bidding for Goods: 1. · Informal bidding procedure shall be utilized: 21 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 23 established; or b. When no Bids are received pursuant to the formal Bid procedures 24 c. When all Bids received substantially exceed the City's estimated costs, as determined by the Purchasing Officer through the formal bidding procedure. 25 d. The City Council may designate types or classes of Procurements costing more than the dollar amount established for formal bidding in Section 26 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 advantageous to the City consistent with applicable law. 27 28 2. The informal bidding procedure shall be as follows: - 5 - Exhibit 2 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, 4 by mail, electronically over the Internet, or by any other means of delivery as described in the Bid Documents. 5 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 6 be awarded by the City Manager. C. Formal Bidding for Goods: 7 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 8 annually and adjusted in response to the San Diego -All Urban Consumers Consumer 9 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 10 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 . 11 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. 12 2. Procurement requirements shall not be divided so as to avoid the formal 13 bidding requirements. 3. The formal bidding procedures shall be as follows: 14 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 15 a manner which will permit current information to be disseminated widely. The notice shall include: 16 17 18 19 20 21 22 23 24 25 26 27 28 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 opened; 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 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 - 6 - 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 4 further complying with this section or the City may cease the Procurement. 5. If two or more Sids are received with the same total amount or unit price, · 5 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 6 one hundred thousand dollars ($100,000), may exercise sound discretion and accept the Bid it chooses. 7 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 8 or give a particular bidder an advantage over others. 9 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 10 received and opened, unless bidders agree to extend a Bid's effective date upon request by the City. 11 D. Additional Responsibilities and Authorities: 1. The City shall have the authority to require a performance bond in such 12 amount as it finds reasonably necessary to protect the best interests of the City 13 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. 14 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 15 distributed to potential bidders/suppliers. - 3. The City Manager shall be the Awarding Authority for Procurement of 16 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 17 Items approved by the City Council during the budgeting process regardless of the dollar amount. · 18 5. The City Council shall be the Awarding Authority for Procurement of Goods 19 for which the cost to the City is more than one hundred thousand dollars ($100,000) and have not been previously ai;,proved as Capital Outlay items in the budget process. 20 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 21 participate in the selection process if that employee has a relationship with a person or business entity · seeking a Contract with the City that would subject that employee to the 22 prohibition of Government Code section 87100 (Conflicts of Interest). 23 24 25 26 27 28 3.28.060 Procurement Of Professional Services and Services. 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 satisfactory performance of the Professional Services required, on demonstrated -7 - 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 4 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 5 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 6 City to waive the requirement. B. Small Procurements of Services: 7 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 8 and cost effective operational procedures approved by the City Manager and forms 9 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 10 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 11 small Procurements under this subsection. C. Informal Bidding for Services: 12 1. Informal bidding procedure, as set forth in Section 3.28.050(8)(2) may be 13 utilized: a. 14 established; or When no Bids are received pursuant to the formal Bid procedures b. The City Council may designate types or classes of Procurements . 16 15 costing more than the dollar amount established for formal bidding in Section · 3.28.060(0)(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. 17 18 19 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 20 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 ex(?eeds a previously set bid limit by more than two thousand five 21 hundred dollars ($2,500). The bid limit adjustment will be made effective at the beginning 22 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. 23 24 3. The formal bidding procedures and requirements shall be as set forth in Section 3.28.050(C) and Section 3.28.050(D). 25 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 26 thousand dollars ($100,000) or less per Agreement year. 27 28 5. The City Council shall be the Awarding Authority for Procurement of Services and Professional Services for which the cost to the City is more than one hundred thousand dollars ($100,000) per Agreement year. -8 - 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 4 .87100 (Conflicts of Interest). 5 3.28.070 Competitive Negotiations for Goods, Services, and Professional Services. 6 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 7 specialized Goods by competitive negotiations when: 1. The cost of' the Goods, Services and/or Professional Services is greater 8 than the dollar amount established for formal bidding in Section 3.28.050(C)(1) and 9 Section 3.28.060(0)(1 ); and 2. The· Goods are such that suitable technical or performance Specifications 10 are not readily available; or 3. . The City is not able to develop descriptive Specifications; or 11 4. Requesting proposals for the particular Service or Goods to be procured would be more advantageous to the City. 12 B. Whenever possible, at least three proposals shall be received and the award will be 13 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. 14 Competitive negotiations are not intended to be used for the purpose of avoiding the bidding procedure set forth in this chapter. 15 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. · 16 D: The City Council shall award Contracts for Goods and/or Services over one hundred thousand dollars ($100,000) per Agreement year. 17 18 3.28.080 Construction Projects. 19 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 20 21 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 23 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 24 within his/her authority. 25 26 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) 27 of the California Public Contract Code may be let to Contract by informal procedures set forth in this section. 28 -9 - Exhibit 2 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 4 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 the 5 following procedures: 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 9 journals not less than ten (10) calendar days before Bids are due. c. The notice inviting informal Bids shall describe the project in general 10 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 11 of prevailing wages. d. When the Awarding Authority deems feasible, Bid Documents may 12 be transmitted and/or received over the Internet. e. The Awarding Authority niay in its sole discretion reject any or all 13 Bids presented and waive any minor irregularity or informality in such Bids. The Contract 14 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 15 force account or negotiated Contract without further complying with this section. 16 17 18 19 20 21 22 23 24 25 26 27 28 Contracts. 7. following: f. The City Manager or his/her designee shall award all informal The formal bidding procedures for Construction Projects shall include the 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) 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 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. 111 -10 - Exhibit 2 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 4 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. 5 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. 6 7 3.28.100 Cooperative Purchasing. 8 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 9 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 10 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. 11 12 3.28.110 Exemptions. 13 A. The following Procurements, Contracts or transactions are exempted, as determined by the Awarding Authority, from the provisions of Chapter 3.28: 14 15 16 17 18 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 19 Agreement with any governmental, public or quasi-public agency; 20 21 22 23 24 25 26 27 28 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, impractical, unavailing, impossible, or not in the best interests of the City, I II I II -11 - Exhibit 2 1 3.28.120 Emergencies. 2 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 3 from time to time, when repair or replacements are necessary to permit the continued 4 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 5 facility or infrastructure and/or Procure the necessary Goods and/or Serv.ices adopting the · plans, Specifications, or working. details giving notice of Bids to let Contracts. 6 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 7 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. 8 9 3.28.130 Prevailing Wages 10 A This section is intended to supersede the provision of the Public Contract Code 11 12 13 14 15 16 17 18 19 20 21 22 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. 3.28.140. Severability If any section, subsection, sentence, clause or phrase of this Chapter is for any reason held invalid or unconstitutional by the decision of any court of competent 23 jurisdiction, the decision will not affect the validity of the remaining portions of this . 24 25 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. 26 I I/ 27 I I I 28 -12 - Exhibit 2 EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption 2 or upon completion of the legal process of becoming chartered, whichever is later, and 3 the City Clerk shall certify the adoption of this ordinance and cause it to be published at 4 least once in a newspaper of general circulation in the City of Carlsbad within fifteen 5 days after its adoption or chartered. 6 INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City 7 Council on the 22nd day of July, 2008, and thereafter. 8 PASSED AND ADOPTED at a regular meeting of the City Council of the City of 9 Carlsbad on the __ day of ____ , 2008, by the following vote, to with: 10 11 12 13 AYES: NOES: ABSENT: 14 APPROVED AS TO FORM AND LEGALITY 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ATTEST: LORRAINE M. WOOD, City Clerk -13 - RONALD R. BALL, City Attorney CLAUDE A. LEWIS, Mayor July 11, 2008 TO MAYOR AND CITY COUNCIL FROM: CITY ATTORNEY FOR THE INFORMATION OF THE CITY COUNCIL --i~11/c~ cfil?? DK E . CITY ATTORNEY RE: ITEM #4 -AMENDING CARLSBAD MUNICIPAL CODE CHAPTER 3.28-PURCHASING There is a typographical error in section 3.28.040(E) (handwritten p.41) of the proposed ordinance wherein the word "may" should be changed to the word "shall". This will make the · proposed ordinance consistent throughout. Should you have any questions regarding the above, please do not hesitate to contact me. rn c: City Clerk City Manager Finance Director Deputy City Attorney Edmonson Q RONALD R. BALL City Attorney July 15, 2008 TO: FROM: MAYOR AND CITY COUNCIL 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:trn c: City Clerk City Attorney Finance Director ·•···--•·-. •-•-•·•••· .. ·-·•···•·· ~ ,. ...... --.•..-,.-· ·,.,.,:·-.0· · •-•· ~ •··"~.,,. ~ <--• ......,_._. .... ,.,....,,..,,_ •••••..••.••• ~--~•-·•· .. ·~~r• .-•~»··2 ·--·~•t••••l¼\ 0 --• . ., •. ,..,.._._ .. _ .•. ,., ✓ -•· 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 4 unserviceable, or property that is a by-product (e.g. scrap metal, used tires and oil, etc.}. 19. UPCCM. "UPCCM" means Uniform Public Construction Cost Accounting 5 Act. (California Public Contract Code Section 22000, et seq.} 6 3.28.040 Procurement and Disposition Responsibilities. 7 A. End User. The End User shall: 1. Identify its Procurement needs and the availability of funding; and 8 2. 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 4. Inspect Goods delivered, Services performed, Professional Services rendered, and/or Construction Projects to determine conformity with the requirements set 11 forth in the Bid or Proposal Documents and with contractual obligations, and authorize payments for conforming Goods, Services, Professional Services, and/or Constructiori 12 Projects. 10 B. Purchasing Officer. The Purchasing Officer shall be responsible for the Procurement 13 of Goods, Services, Professional Services, and/or Construction Projects for the City in 14 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 15 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 16 any claim or demand against the City based thereon shall be invalid. The Purchasing Officer shall: 17 1. Prepare and recommend to the City Manager operational procedures and forms for the Procurement of Goods, Services, Professional Services, and/or 18 Construction Projects in cooperation with the End Users and for the disposal of Surplus 19 Personal Property; 2. Procure or supervise the Procurement of all Goods, Services, Professional 20 Services, and/or Construction Projects needed in coordination with End Users; 3. Process the Contracts awarded administratively and/or by City Council; 21 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 23 unclaimed property held by the City's pol ice department. C. City Manager. The City Manager shall be the Awarding Authority for: 24 1. All Procurement of Goods for which the cost to the City is one hundred thousand dollars ($100,000) or less; 25 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: 26 3. All Contracts fo r 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 28 established by the UPCCAA; -13 - -· -----·--·-·-.... ·----, ·-·--~-,.., .-~•-·• •. -. --.,. .... ,. ,-•. "'"•"'-~-· . --·• & . ~-"-<·•, ,-,-.~·-,-------·-••. ---· -·. :C:-+~ l'-Jo .7 FOR THE INF'.'"'~MATION OF THE CIT'· . .>'.JUNCIL July 22, 2008 ~1:ei.Jo ~ CITY A~ TO: MAYOR AND CITY COUNCIL FROM: 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. rn c: ·~'@tjfk City Manager Finance Director RONALD R. BALL City Attorney -a I. ,a (IJ ,:s .c .., U) g-D' ,a .a a.. .C C ,au ■-In u U) I. 0 (IJ ,a 00 0 ,a .., -a .c 0 N u .., 0 ~ ~ Lt) C U :::S II-- ~ 0 (IJ A. >-- E ~co ~ ~ --, -CS•-N ■-C U • u ■-,.., CIJ C E :::s <C ~ tn ... ~ ... ■--c (J (I) C: .c ... ::l ~ 0 (I) ■-> I.. f tn C) of ~ ... ::::, '"C '"C (.) (I) (I) E u ca s.. 0 0 s.. ca 'I-■ C. t/J C) ca c: ~ ·en E ca ca .c (I) ~ ... ::::, <( C. ••• ♦ ca ■-(.) C: ca C: '"C C: ca ~ ... ■-s.. t/J C) ~ ~ ~ (.) ::: C: 0 -■-■-s.. .c t/J C. ■-t/J Q) ~ ~ ;5i+:o ........ (I) s.. ~ s.. C. =oc:u, c. E ·--E ~Se ■-::> C: ... t/J 0 ■-C: *" -ca o VI 0 --== ca ... <C -== u 0 •!• •!• •!• (!) ♦•♦ ♦ C: 0 ■-... C. 0 '"C <( s.. (I) ~ ca .c (J ~ ... ■-(J ••• ♦ ca -c C: (1.) E E 0 (.) (1.) et:: C) C: ■-en m .c: (.) s.. ::::J C. s.. 0 11-...... .c: C) en s.. a, > 0 a, .c: ...... m E a, s.. o en ...... a, a, en u en C: a, m u C: 0 ■-s.. LL C. ...... C: C: ■-a, m E E c. e ■-::::J 0 c-...... a, en ... a, en u a,■-■-> -s.. 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(.) -c Recommendations (cont.) •!• Definition of small procurements to move from $5,000 to $30,000 Distribution of Non-Construction Project Purchase Orders 40/o 100%r ~ r I iii 6% 80%V7 590/o $12,263,878 60%V7 ,□ I ----■ ID >$100K □ $30K-100K 40%V ~ 1 190/o I 11 <$30K 900/o 20% 0% Total $20,710,309 Total# 1,062 Recommendations {cont.) •!• All procurements over the limits previously noted should continue to require City Council approval •!• City Council (or City Manager on smaller projects) to make determination on requiring prevailing wages Purchasing Ordinance Timeline •!• First Reading of Ordinance -July 15 •!• Second Reading of Ordinance -July 22 •!• Effective Date of Ordinance -30 days after its adoption or upon completion of legal process for Charter City, whichever is later ■ C) u, C: ... ■-(J -c.~ s.. 0 ca s.. ~ C. ca ~ (1) ca .c +:. 0 :::, ... 0 s.. -(1) ca ... C) ■-ca c. c: ca ca u :aE -c (1) ~ ... ■-(1) (..) C) ~ -g 0 .c 0 ... 0 0 0 ... Lt) ~ E 0 s.. .... u, ... 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(1) -u, C) -(1) ca <( .c ~ ••• ♦ I • I I -a I. ,a GJ ,:J .c ..., U) g-D' ,a .Q a.. .C C ,au ■-U) u U) I. 0 GJ ,a 00 0 ,a ..., -a .c 0 u ..., 0 ~ N II'\ Lt) CU ::S 'I- ~ 0 GJ 0. >-- E ~co :::J a- -, -C •-N ■-C U • u •-M GJ C E ::s <C ~ PLANNED MAJOR CAPITAL OUTLAY ITEMS FY 2019-20 (Greater than $10,000) Department Police Communications/ Local Cable Infrastructure Public Works Fire Golf Course Fleet Replacement Information Technology Replacement Item Description Marked police vehicles, fully outfitted Police motorcycle, fully outfitted Police Subtotal Council Chambers Audiovisual upgrades Communications/Local Cable Infrastructure Subtotal Hydro excavator Public Works Subtotal Fire Prevention vehicles Fire Captain vehicle Fire Subtotal Course Improvements Drainage and Erosion Improvements Facility Equipment Facility Improvements Golf Course Subtotal CED: Sedan Compact Hybrid Environmental Management: SUV Hybrid Fire: SUV Intermediate Fire: Engine Truck HNS: Pickup Truck Compact Parks: Chipper Parks: Pickup Truck 3/4 Parks: Pickup Truck Compact Parks: Stumpcut Large Parks: Tractor Parks: Trailer Parks: Truck 1T Flatbed Parks: Truck 1T Utility P~rks: Truck 3/4 Utility Parks: Truck Aerial Large Parks: Truck Turf Police: 2012 KTM 500 Exe . Police: Motorcycle Full Size BMW Police: Sedan Compact Hybrid Police: Sedan Police: SUV Police: Truck Pickup 1/2 T Gas Gen Use Norm Pm 4 Police: Van Mini Public Works: Truck Compact Public Works: Concrete SAW Public Works: Truck 1 T Dump Public Works: Truck 1/2 T Utility Public Works: SUV Recreation: Bus Large Utilities: Backhoe Utilities: Pickup Truck 3/4 Ton Utilities: Pickup Truck Compact Utilities: Sedan Compact Hybrid Utilities: Trailer Jetter Fleet Replacement Subtotal Citywide Infrastructure Replacement VPN/ Firewall Gateway _ Information Technology Subtotal Grand Total Major Capital Outlay 'Major Capital Outlay anly includes items of $10,000 or greater. 1-1 City of Carlsbad 2019-20 Operating Budget Attachment B Quantity One-Time Cost 5 240,650 2 68,845 309,495 1 125,000 125,000 1 415,000 415,000 2 74,000 1 59,000 133,000 1 375,000 1 134,000 1 58,000 1 232,000 375,000 1 33,632 1 33,663 1 85,771 1 810,000 1 33,000 1 47,000 1 47,768 1 33,000 1 70,000 2 -106,199 3 39,203 2 95,537 2 132,613 2 92,268 1 140,482 1 21,546 2 38,887 5 185,000 1 33,968 14 914,000 5 342,000 1 42,000 1 44,000 2 63,810 1 22,292 1 69,000 1 46,000 2 70,000 1 79,614 1 115,000 1 52,000 2 66,000 1 33,000 1 69,530 65 4,107,783 2 66,500 1 39,534 106,034 5,783,312