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HomeMy WebLinkAbout08/17/2015 B A K E R S F I E L D Committee Members: Staff: Chris Huot Councilmember, Willie Rivera, Chair Assistant City Manager Councilmember, Ken Weir Councilmember, Chris Parlier AGENDA SUMMARY REPORT SPECIAL MEETING OF THE BUDGET AND FINANCE COMMITTEE Monday, August 17, 2015 12:00 p.m. City Hall North – Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 The meeting was called to order at 12:00 p.m. 1. ROLL CALL Committee member: Councilmember, Willie Rivera - Chair Councilmember, Ken Weir Councilmember, Chris Parlier City Staff: Alan Tandy, City Manager Steven Teglia, Assistant City Manager Chris Huot, Assistant City Manager Chris Gerry, Administrative Analyst Virginia Gennaro, City Attorney Joshua Rudnick, Deputy City Attorney Nelson Smith, Finance Director Kim Berrigan, Purchasing Officer Nick Fidler, Public Works Director Navdip Drewal, Civil Engineer IV – Public Works Department Additional Attendees: Members of the media 2. ADOPT MARCH 19, 2015 AGENDA SUMMARY REPORT The Report was adopted as submitted. AGENDA SUMMARY REPORT Budget and Finance Committee Meeting Monday, August 17, 2015 Page 2 3. PUBLIC STATEMENTS None 4. DEFERRED BUSINESS A. Discussion Regarding the Local Vendor Policy According to Committee Chair Rivera, the item is tabled. 5. NEW BUSINESS A. Discussion Regarding Requests for Proposals and Bid Practices Finance Director Smith referenced a memo that had been included in the packet, summarizing specific Bakersfield Municipal Code sections and internal purchasing guidelines that are currently followed. The information resulted from a broad discussion on bidding annual contracts and the Request for Proposal (RFP) process. Committee Chair Rivera stated that he referred this item to Committee based on the recent renewal of a contract for security services at the Parking Garage at 18th and Eye Streets. He asked about the customary practice to renew contracts with individual vendors; and, in this case, when the cost had increased. He also asked if there was a threshold to trigger when a new bidding process would be initiated for projects. Finance Director Smith said that contracts in larger amounts would be bid more often than those in smaller amounts. Another factor is when a measurable amount of vendor interest in a project, the bid process would occur more frequently than when there is little interest shown. Lastly, economic conditions are considered. During the economic downturn, projects were bid more often than what might take place in inflationary times, as contractors were bidding in lower amounts because they needed the work. In regard to the contract extension for security services at the Parking Garage, the amount increased due to the increase in the minimum wage. Committee Chair Rivera stated that he believes the City’s process may not be open and fair, and perhaps does not encourage vendors to approach staff on their own. He believed that the only cost associated with preparing for a new bid is staff time, which is already covered. He noted that the highlighted Municipal Code sections do not reference a time line that compels the City to initiate a new bid on a project. Finance Director Smith said that not all projects are open to bids, as it depends on the type of services in the contract. AGENDA SUMMARY REPORT Budget and Finance Committee Meeting Monday, August 17, 2015 Page 3 Committee Chair Rivera reminded staff that he had previously reported about an experience he had in the Parking Garage that he believes would have necessitated new bids. He asked for the City Attorney’s assistance in formulating the establishment of a definitive threshold that would trigger new bids on a project. City Attorney Gennaro indicated that the City Council has the option at any time of directing staff to issue new bids or an RFP on a project, the last of which would be when the contract is brought before them for approval. She recommended against a definitive policy that might reduce the City Council’s flexibility. Committee Chair Rivera asked what challenges might be involved when issuing a new RFP. Public Works Director Fidler said that a considerable amount of staff time is involved, including composing the specifications, thoroughly reviewing each Statement of Qualifications that is received, and eventually training the contractor. Most often, when a contractor has worked with the City before, performance measures are understood and followed; and if any costs increase, it is usually those for a cost of living adjustment or prevailing wage increase. City Attorney Gennaro added that the RFP contains those specific requirements reported by Mr. Fidler and a draft contract, so that the bidder is aware of all provisions, including the term of the contract and potential extension(s). City Manager Tandy said that a list of contracts that resulted from the bidding process had been provided. He offered to generate a separate list of projects that were the result of the RFP process. Committee Chair Rivera clarified with Finance Director Smith the contents of the information that had been provided in the packet. One detail in particular was that any contract in an amount less than $40,000 was a Department Contract, and those that exceeded that amount had been approved by the City Council. Committee Chair Rivera said that his preference is to define a specific mechanism that would provide more control over the process. City Attorney Gennaro suggested that after staff assembles the requested list, that a new Council Policy be proposed that would address the bidding and RFP processes. AGENDA SUMMARY REPORT Budget and Finance Committee Meeting Monday, August 17, 2015 Page 4 Committee Chair Rivera directed staff to produce information about Department Contracts that would include start dates on the original contracts, start dates on any of those contracts that had been amended, if there had been a change in price, and what may have caused the change in price if there had been one. Finance Director Smith noted that some contracts contain a cost escalation feature based on either the Consumer Price Index or Consumer Construction index, depending upon the type of work involved. City Manager Tandy reiterated that staff offered to provide a list of those contracts that resulted from the RFP process, so that that similar information to that of the bidding process would be available. Committee member Weir stated that there has rarely been an issue with the current process, and he does not object to staff having discretion in such matters. He recommended that should a Councilmember develop a concern over a certain project or contract that it be brought to light for discussion and eventual resolution. Committee member Parlier believes that most issues related to the security contract at the Parking Garage involve the lack of adequate oversight by supervisors. B. Discussion and Committee Recommendation Regarding Adoption of the 2015 Committee Meeting Schedule Assistant City Manager Huot reported that an annual schedule had been ascertained; however, since the Committee had not been meeting regularly, no formal calendar had been adopted. Dates for the remainder of the year had been identified and were noted on the draft calendar. The Committee unanimously approved the 2015 calendar of meetings. 6. COMMITTEE COMMENTS None 7. ADJOURNMENT The meeting adjourned at 12:25 p.m.