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HomeMy WebLinkAbout12/09/1996 BAKERSFIELD N Catricia J. DeMond, Ghair Irma Carson Kevin McDermott Staff: Dolores leubner AGENDA BUDGET AND FINANCE COMMITTEE Monday, December 9, 1996 12:15 p.m. City Manager's Conference Room Second Floor - City Hall, Suite 201 1501 Truxtun Avenue Bakersfield, CA 1. ROLL CALL 2. APPROVAL OF NOVEMBER 18, 1996 MINUTES 3. PRESENTATIONS 4. PUBLIC STATEMENTS 5. DEFERRED BUSINESS A. BID PROTEST ORDINANCE - Skousen 6. NEW BUSINESS A. CDBG/HOME AMENDMENT #2 - Wager B. AMENDMENTS TO BIDDING PROCEDURES - Skousen C. PROPOSED 1997 MEETING SCHEDULE 7. ADJOURNMENT DBT:.ip FILE COPY MEMORANDUM December 6, 1996 TO: BUDGET AND FINANCE COMMITTEE Councilmembers PATRICIA DeMOND, Chair IRMA CARSON KEVlN McDERMOTT FROM: JUDY SKOUSEN, CITY ATTORNEY "~_~ SUBJECT: AMENDMENTS TO CHAPTER 3.20. REGARDING BIDDING The attached proposed Amendment adds to our Municipal Code the procedure for handling bid protests. The proposed Amendment simply codifies the way we have handled bid protests in the past, i.e. the protesting party may make his protest in writing or verbally at the Council meeting when the contract is agendized to be awarded. The City Council will hear his comments and any other information from staff or other interested persons and make a decision at that meeting. If additional information is needed the Council may continue the decision. When the issue is decided by the Council the decision is simply announced at the meeting and the decision is final. This amendment establishes the ninety day statute of limitations provided for in the Code of Civil Procedure. S:\COUNC1L\ORD\B1DCOMIT DRAFT ORDINANCE NO. AN ORDINANCE ADDING 3.20.068 TO THE BAKERSFIELD MUNICIPAL CODE ESTABLISHING A PROCEDURE FOR DEALING WITH BID PROTEST. WHEREAS, the City of Bakersfield finds it necessary to establish a procedure for dealing with bid protests. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. Section 3.20.068 is hereby added to Chapter 3.20 of the Bakersfield Municipal Code to read as follows: 3.20.068 Bid Protests Bid protests shall be processed as follows: A. Any protest concerning bids for a city project or city purchase of supplies or materials or the process followed by City for the award of such a contract must be made before or at the time such matter comes before the City Council for the contract to be awarded. B. Upon receipt of such a protest, the Finance Director shall advise the City Council of the facts and circumstances as are known to City surrounding the bidding process for that project. C. The City Council shall hear and determine the bid protest at the time the contract comes before the Council for award of the project and before awarding the project, provided, however, the City Council may by majority vote continue the matter to obtain additional information as the Council deems necessary. The Mayor or Presiding Officer of the City Council shall announce the decision of the City Council on said protest at the conclusion of the hearing on the matter, which decision shall be final in accordance with California Code of Civil Procedure Section 1094.6. JKSIADD:dlrlmeg/bsb S:\COUNCIL\ORD\BIDPROT5.ORD -- December 6, 1996 B A K E R S F I E L D Economic and Community Development Department MEMORANDUM December 6, 1996 TO: Alan Tandy, City Manager ~ FROM: Jake Wager, Economic Development Direct~.~) SUBJECT: Proposed Re-Programming of HOME and CDBG Funds for First Time ltomebuyers, Single Family Rehab Loan Programs, Southeast Redevelopment Project Area and Other Projects IDENTIYIED NEEDS HOME PROGRAM Single Family Rehabilitation Loan Progr~__m In the City's FY 96-97 Action Plan to HUD (CDBG/HOME), approved by the City Council, $216,505 of HOME funds was designated for the Single Family/Owner-Occupied Rehabilitation Program. As a result of an aggressive marketing program, loans totaling $185,380 have been approved in the last four months. The available balance for Single Family Rehabilitation is now $31,125. At best, that balance is enough to fund two additional rehabilitation projects. We estimate this amount will be exhausted by the end of December 1996. We have a backlog of 18 applicants whose homes need rehabilitation, and who qualify for the loan program. Unless additional funds are made available, under current circumstances, 16 of these applicants will be suspended for six months or more. In addition to the 18 backlogged applications, we receive approximately eight new applications each month. That number may increase when the Panama #10 Sewer Connection Fee Loan Program is launched. To encourage residents in the Panama #10 area to rehabilitate their substandard housing, the plan is to forgive the sewer connection fee loan, if the homeowner qualifies for and obtains a rehabilitation loan. Our current lack of funds takes away the ability to offer such an incentive; it probably means that we will not be able to offer the rehabilitation program to citizens in that area for at least six months. S:~JAN'SXREPROG$.MEM 1 December 5, 1996 Alan Tandy The First Time ltomebuyer Mortgage Assistance Progra_ m The First Time Homebuyer Mortgage Assistance Program shares a similar challenge. The City Council approved our Action Plan funding level of $283,245 for down payment assistance. Successful promotion of this program has resulted in $240,445 in down payment assistance to low income first time homebuyers. This leaves a balance of $42,800 to fund approximately 16 additional First Time Homebuyer loans (10 applications totaling $24,835 are now pending). We receive an average of five applications each week in this program. Based on the demand for this program, all available funds will be depleted by the end of December 1996. Restoration Community Projects~ Inc. (RCPI) The RCPI project began initially as a Rental-Rehabilitation only for improvements to the former Friese House. Subsequently, RCPI requested additional funds to acquire an adjacent property as well as the rehabilitation work proposed for Friese House. Rental~Rehab funds of $133,650 from CDBG were identified for the rehabilitation and $55,000 in HOME funds were tagged for the acquisition. RCPI proposes to use the facility as a transitional housing site for alcohol and/or substance abusers who may be pregnant or have children. The total amount of City funds requested by RCPI was $188,650. Affordable Homes, Inc. (AH1) Affordable Homes, Inc. has been negotiating with the Golden Empire Gleaners for acquisition of the Gleaner's Haven project for several months. The Haven was established as a transitional housing program aimed at families in crisis whose goal is financial independence through education and employment. The object of the program was to provide the services, training and supportive environment needed for these families to succeed while living in an affordable housing complex. While the Gleaners and AHI have reached a purchase agreement, discussions are still underway with the major lenders of the project to reduce the pay-off of the outstanding debt. Al-II has approached the County about funding a portion of this project. Al-II has requested $520,000 of HOME funds for acquisition assistance. CDBG Southeast Redevelopment Project Area We have examined both the availability and eligibility of the use of CDBG and/or HOME funds for the costs associated with the creation of the Southeast Redevelopment Project Area. This is not a HOME eligible activity thus our only option is to consider utilizing CDBG funds. The following are two options available to the City of Bakersfield to fund the proposed project: S:~AN'SXREPROG$.MEM 2 December 5, 1996 Alan Tandy Option A: Shift $100,000 of CDBG Multi-Family funds for the RCPl project to the HOME program. RCPI would receive funding, only the funding source would shift from CDBG to the HOME program. CDBG funds are then freed up to pay for the creation of the Southeast Redevelopmem Project Area. Option B: Shift $100,000 of CDBG Economic Development funds directly to the Southeast Redevelopment Project. These funds are currently committed to assisting prospective businesses to locate in Bakersfield. The current balance of $401,550, less $100,000 moved to Southwest Redevelopment, would leave a balance remaining of $301,550 for economic development assistance. Since CDBG funds are used in both options and the project is considered an administration and planning activity by HUD, the entire project costs would be counted towards the 20% planning and administration cap. For FY 96-97 the budget for administration is 18% of the total CDBG budget. An increase orS100,000 in the CDBG administration budget in FY 96-97 could push us beyond the 20% cap. A more detailed financial analysis will need to be made to determine the maximum amount allowable under the 20% cap during the current fiscal year. SOURCES Staff is recommending a strategy to support the popular on-going housing programs provided by this department, fund the development of the Redevelopment Project Area as well as a more conservative contribution to the two nonprofit affordable housing projects, Affordable Homes Inc. and Restoration Community Project, Inc. The following table outlines the proposed funding levels and sources of funds. S:UAN'S~REPROG$.MEM 3 December 5, 1996 Alan Tandy r~xoPOSF, D RE-PROGRAMMF~D FUNDS PROJECT AMOUNT PROPOSED SOURCES AMOUNTS TOTALS NAME REQUEST FUNDING bEVEL HOME Single $225,000 $225,000 Multi-Family $183,550 Family Rehab Rehab Loans New $41,450 Construction $225,000 HOME First Time $225,000 $225,000 New' $188,825 Homebuyers Construction Allocated $20,500 Carryover Unappropriat $15,675 ed Fund $225,000 Balance HOME RCPI $188,650 $100,000' Acquisition $55,000 Multi-Family $45,000 Rehab $100,000 HOME AHI $520,000 $200,000* CHDO $178,865 Multi-Family $21,135 $200,000 Rehab HOME SUMMARY $1,179,785 $750,000 HOME $750,000 $750,000 4 Proiects CDBG Southeast $100,000 $100,000 Multi-Family $100,000 $100,000 Redevel. or Economic Project Area Devel. CDBG SUMMARY $100, 000 $100, 000 CDBG $I 00, 000 $I 00,000 I Project * Sub ect to County participation in funding ** Sub eot to the build-out of 8 additional units and County participation in funding S:OAN'S~REPROG$.MEM 4 December 5, 1996 Alan Tandy While this proposed "re-shuffling" of funds does not fully address the needs of the 2 non-profit housing agencies, it does fund 2 very popular and productive on-going City affordable housing activities. Conversely, staff has received preliminary indications that the County will be willing to participate in funding the two nonprofits, allowing the projects to go forward. Based on the these calculations, this re-programming would provide housing assistance for a minimum of 75 households benefiting from the Single Family Rehab and First Time Homebuyers programs over the balance of the year in addition to more that 40 families receiving housing and services with RCPI and AHI. The two nonprofits have been advised to approach the County for funding a portion of their projects. Attached are three possible time lines for affecting the Consolidated Plan amendment necessary to re-program the HOME and CDBG funds involved in these proposed changes. S:UAN'SkREPROG$.MEM 5 TENTATIVE TIMELINE FOR AMENDMENT PROCESS Plan A 12/16/96 Budget & Finance Committee to Review Amendment. Authorize Publication of Public Notice 12/17/96 Publish Public Notice (30 Day Review) 1/22/97 City Council Meeting. Approve Amendment and Submit to HUD. 1/23/97 Funds Available. Plan B I 12/16/96 Budget & Finance Committee to Review Amendment. Refer to City Council to Authorize Publication of Public Notice. 1/8/97 City Council Meeting to Authorize Publication of Public Notice. 1/9/97 Publish Public Notice (30 Day Review). 2/19/97 City Council Meeting to Approve Amendment. Submit to HUD. 2/20/97 Funds Available. I Plan C 1/8/97 City Council Meeting to Refer Amendment to Budget & Finance Committee. 2/10/97 Budget & Finance Committee to Review Amendment. Refer to City Council to Authorize Publication of Public Notice. 2/19/97 City Council Meeting to Authorize Publication of Public Notice. 2/20/97 Publish Public Notice (30 Day Review). 3/26//97 City Council Meeting to Approve Amendment. Submit to HUD. 3/27/97 Funds Available. MEMORANDUM December 4, 1996 TO: BUDGET AND FINANCE COMMITTEE Councilmembers PATRIClA DeMOND, Chair IRMA CARSON KEVIN McDERMOTT FROM: JUDY SKOUSEN, CITY ATTORNEY -~ SUBJECT: AMENDMENTS TO SECTION 3.20.060 REGARDING BIDDING PROCEDURES Attached for your consideration at this Budget and Finance Committee meeting is a proposed amendment to section 3.20.060 which is different from the proposed amendment introduced for first reading at the Council meeting in November. Also attached is a copy of the relevant section of the Charter and Bakersfield Municipal Code.' The proposed amendment introduced for first reading attempted to clarify the "criteria including dollar amounts, requiring bidding and award of a contract..." in accordance with Section 136 of the Charter. After more discussion at staff level, we believe the amendment now being recommended to you is better. The proposed amendment clarifies that when the Council approves a budget for improvements, repairs and maintenance to city facilities, they are making the determination discussed in the Charter. The proposed amendment allows all improvement, maintenance and repairs funded by the Council adopted budged to be done by a City department or by contract as determined by the City Manager to be in the best interest of the City. This proposed amendment also increases the size of a project for which public bidding is required from twenty thousand dollars to twenty five thousand dollars. Staff believes this increase, is necessary in that the twenty thousand dollar cap was established in April, 1989. Since that time, the Consumer price index has increased by 28.6%, which is slightly more than the percentage increase staff believes appropriate to increase the public bid requirement cap. Please see the memorandum from Finance Director Greg Klimko attached hereto. JKS\bsb Attachments cc: Honorable Mayor and City Council Alan Tandy, City Manager Raul Rojas, Public Works Director Greg Klimko, Finance Director Dolores Teubner, Assistant to City Manager S:\COUNCIL\ORD\BIDREG.MEM THIS MEMORANDUM IS EXEMPT FROM DISCLOSURE AND IS PROTECTED BY THE ATTORNEY-CLIENT AND ATTORNEY WORK-PRODUCT PRIVILEGES. CHAIR PAT DEMOND BUDGET AND FINANCE COMMITTEE MEMBERS Page 2 December 4, 1996 CURRENT BAKERSFIELD MUNICIPAL CODE COMPARED TO PROPOSED AMENDMENT D. ~,,-,,~,,,~ -^,-~v,,,-,,,oBIDDING EXCEPTIONS. Bidding may be dispensed with pursuant to the procedures prescribed in this section and Section 136 of the city charter: 1. Projects for the erection and/or construction of all public buildings and works, and for furnishing any supplies and materials for the same, or for any other use by the City, the cost of which is less than twenty five thousand dollars ($25,000) and projects for the improvement, repair or maintenance of all public buildings and works, and for furnishing any supplies and materials for the same if provided for in the Council adopted budget, may be performed by a city department or may be obtained in the open market pursuant to Section 3.20.100 of this title as determined by the City Manager to best serve the needs of the city. -1- 2. TheWhen the city council, by resolution, determines that work, supplies, equipment or materials can only be reasonably obtained from one vendor because of restricted availability of such work, supplies, equipment or materials, or because of the necessity to successfully integrate such work, supplies, equipment or materials into an existing city project or system. repair of o,, ~o,o,---'~-dm~,, ,o or sewers can '-- -~ .... '~ ...... :~-" .... :'.. ~,~ ut, ,~,,,, ,~,~ more ~,..,, ,~,,, ,,..,:,,,~, by o ,.,,y department gUIIl, ll:::lgl, lll~::J Ik./I OUgll VVUII~,, 3. TheWhen the city council, after rejecting bids, or if no bids are received, by a resolution adopted by at least four affirmative votes declares that, in its opinion, based on estimates supplied by the city manager, the work in question may be performed better or more economically by city employees or the supplies, equipment or materials may be purchased more economically on the open market. 4. TheWhen the city council, by a resolution adopted by at least five affirmative votes containing a declaration of facts, deems work, Supplies, equipment or materials to be of urgent necessity for the preservation of life, health or property. THIS MEMORANDUM IS EXEMPT FROM DISCLOSURE AND IS PROTECTED BY THE ATTORNEY-CLIENT AND ATTORNEY WORK-PRODUCT PRIVILEGES. MEMORANDUM NOVEMBER 22, 1996 TO: ALAN TANDY, CITY MANAGER FROM: GREGORY J. KLIMKO, FINANCE DIRECTOR~////~' SUBJECT: BIDDING REQUIREMENTS Municipal Code Section 3.20.090 (Formal Contract Procedures) establishes formal bidding for items greater than twenty thousand dollars ($20,000). This amount was set by Ordinance 3214 in April 1989. The previous bid limit of $4,000 was set by Ordinance 1757 in September 1968. The consumer price index (U.S. City average) in April 1989 when the current $20,000 limit was set was 123.1. The same index for October 1996 is 158.3 an increase of 28.6%. I request consideration be given to increasing the bid limit 25% from $20,000 to $25,000. Municipal Code Section 3.20.105 (Contract Procedures - contracts not involving the purchase of goods) currently dovetails with the formal bid requirements section. If Municipal Code Section 3.20.090 is increased, consideration should be given to increasing Municipal Code Section 3.20.105 for consistency. GJK/tmm gjk173 cc: Judy Skousen, City Attorney Darlene Wisham, Purct~asing Officer CHARTER upon petition therefor stating the character and which shall limit the amounts of progr~s pa)'. purpo~ of the franchise and the ~oute to be merits under all public works contracts; pro- --- traversed, but no action shall be taken upon any vided, however, that, to the extent required by such application or petition until thirty days after law, securities provid~ by the contractor may be the same has been flied. It' within that time a substituted in lieu ot' any such retention. petition is filed and signed by the electors oi'the (Amended November 8, 1988: amended Sanu- City, equal in number to ten per centum, or ary 8, 1953). more, ot'the entire vote case at the last municipal election at which all qualified r~istered electors were entitled to vote, praying that the g~nting oi' Public Work to be Done by Contract said franchise be ret'erred to a vote ofthe electors Section 136. In the erecgon, improvement oirthe electors orr the city, said application shall be and repair oi'nll public buildings and works, and so ref'erred. Franchise I'or railroad spurs or side- in fiimishing any supplies and materials I'or the tracks may be granted by the Council in the same same, or I'or any other u.se by the City, the City manner, except that the same may be revoked Council shall establish, by ordinance, criteria including dollar amounts, requiring bidding and when the purpose for which granted shall cease, award oi' a contract, if awarded, to the lowest (Amended March 21, 1941). r~pons~ie bidder submitting a responsi{e bid. Whenever the Council determines that work, (Section 132 superseded by n_m_ended Section supplies, equipment or materials can only be 117). reasonably obtained firom one vendor because restricted availability oi' such work, supplies, (Section ! 32~ super~ded by amended Sec. equipment or materials, or because ofthe neces- tion 130). sity to successfully integrate such work, supplies, ' equipment or materials into an existing City (Section 133 repealed January 15, 1959). project or system, the Council may authorize award of' a contract f'or such work, supplies, equipment or materials without first seeking bids ARTICLE .'C therefor. Projects f'or the resuffacing, mainte. nance or repair of' struts, drains or sewers a.~ Public ~,Vorks and Supplies exempted from the requirements of' this para- graph, if the City Council determines that such Form of Contracts work can be performed more economically by a Section .134. All contracts shall be drawnCity department than by contracting for the under the supervision of the City Attorney. All doing of'such work. contracts must be in writing, executed in theThe City Council may in its discretion reject name or' the City or' Bakersfield, by an officer or any and all bids and resdvertise for bids. officers authorized to sign the same, and must be The City Council, after rejecting bids, or if no counte~gned by the Finance Director, who shall bids ar~ received, may declare and determine number and.register the same in a book kept for that, in its opinion, based on estimates supplied that purpose. (Amended November 8, 1988). by the City Manager, that work in question may be performed better or more economically by Progressive Palanent of Contracts City employees or the materials or equipment Section 135. The Council shall by ordi- may be purchased more economically on the nance establish minimum retention percentages ~tme~d:-~ C-24 . open market, and after the adoption of a resolution Collusion by Bidder (" to this effect by at least four alTu'nmtive votes of Section 141. If the person to whom a contract the Council, may proceed to have s~id work done has been awarded has colluded with any other in the manner sued, without further observance of party or parties for the purpose of preventing any the provisions of this section. Such contracts other bid being made, the contract so awarded likewise may be let without advertising for bid if shall be void. such work or supplies or equipment shall be deemed by the City Council to be of urgent (Section 142 was repealed on March 3, 1981). necessity for the preservation of life, health, or property, and shall be authorized by resolution (Section 143 was repealed on November 8, passed by at least five aff'u-rnative vot~ of the City i 988). Council and containing a declaration of the facts constituting such urgency. (Amended November (Section 144 was repealed March 3, 1981). 8, 1988: amended November 3, 1964). (Article XI, consisting of Sections 145 thru (Sections 137 and 138 were repealed on 155, were repealed on March 3, 1981). November 8, 1988). (Section 156 was repealed November 5, 1968). Contract for Lighting Section 139. No contract for lighting streets, Ex-Officio Library Board public buildings, places or offices shall he made Section 157. Repealed by electors of the City of for a longer period than one year, nor shall any Bakersfield, April 8, 1941. contract to pay for electric light or any illumination .. material at a higher rate than thc mininmm price ARTICLE 12 charged to any ~ consumer be valid. Miscellaneous Collusion with Bidder Section 140. Any officer of the city. or of any (Sections 158 - 160 were repealed on department thereof, who shall aid or assist a b' _ _~k-r__ November 8, 1988). in securing a contract to furnish labor, material or supplies at a higher price than that proposed by State Law any other bidder or who shah favor one bidder Section 161. Whenever any municipal function over another by giving or withholding information or affair rises, for which no provision is made by of who shall willfttl]y mislead any bidder in regard thi.q charter or ordinances, the law of the state to thc character of the material or supplies called applicable thereto shall govern. Any law of the for, or who shall knowingly accept materials or state applicable may be madethe lawofthe City by supplies of a quality inferior to those called for byordinance. the contract, or who shall knowingly certify to a greater amount of labor performed than has Rules of Construction actually been performed, or to the _rece__ipt of a Section 162. (a) The rules of construction and greater amount or a different kind of material or interpretation and the definition of words and supplies than has been actually received, shall be phrases provided by the Government Code of the deemed guilty of malfeasance and shall be Stam of California, the Civii Code of the Stateof rcmoved fromoff'~e. California, the code of Civil Procedure of C-2~ (Ba&zrsfield 6-96) 3.20.030---.3.20.060 3.20.030 Filing estimates of require. merits. Ail departments sh~l file detailed estimates of their requirements in supplies and equipment, setting forth specifications in such manner, at such time, and for such furture periods as the purchasing niles and regulations shall prescribe. (Prior code § 5.20.030). 3.20.040 Annual contracts. The finance director or his designated ' representative shall, in accordance with Section 134 of the city Charter, have authority to negotiate prices set forth in annual conu'~cts for pun:bases of repetitively used items, and he shall have authorit7 to accept proposals from, or enter into memorandum accounts with, vendors for items that are required in minor undetermined quantitites which are not practical in competitive bidding. (Prior code § 5.20.040). 3.20.050 Requisitions. Departments shall submit requests for supplies and ~-- equipment to the finance department by standatcl ' -, requisition forms, or by other means as may be established by the administrative rules and regulations. (Prior code § 5.20.050). 3.20.060 Bidding. A. Bidding Required. Except as provided below or in Section 3.20.040. all contracts for the erection, improvement or repair of any public buildings or works, or in furnishing any supplies, equipment and materials for the same, or for any other use by the city, shall be by bid procedures pursuant to Sections 3.20.090 and 3.20.100. B. Rejection of Bids. The city council may, in its discretion, reject any and all bids and may rcadvertise for bids. C. Award of Bids. Except as otherwise provided in this chapter, all bicL~ shall be awarded by the city council to the lowest responsible bidder submitting a responsive bid resulting in the lowest possible net cost to the city. * 1 18-1 (~atcr~ficld 12.94) 3-20.070--3.20.090 D. Bidding Exceptions. Bidding may be unencumbered appropriation in the fund ..-- dispensed with pursuant to the procedures account a.eainst ~'hich the purchase is to be ~ prescribed in this section and Section 136 of the charged. (Prior code § 5.20.080}. city charier. 1. Thc city council, by resolution, determines :3.20,090 Formal contract procedures. that work, supplies, equipment or materials can A. Except as otherwise provided in this only be reasonably obtained from one vendor chapter, the e~ction, improvement or repair of any because of restricted availability of such work, public building ot works or in furnishing any supplies, equipment or materials, or because of thesupplies, equipment and materials for sa,me or for necessity to successfully integrate such work, any ot~er use by ~ city with an estimated value supplies, equipment or materials into an existing greater than twenty thousand doUars shall be by city project or system, written contract or order with the lowest 2. The city council determines that projects responsible bidder pursuant to the procedure for the resurfacing, maintenance or repair of prescribed in this section. struts, drains or sewers can be performed more B. Notice Inviting Bids. Notices inviting economically by a city department than by bids shall include a general description of the contracting for such work. articles to be purchased and shall state where bid 3. The city coundl, after rejecting bids, or if forms and specifications may be secumt and the no bids are received, by a resolution adopted by attime and place for opening bids. least four affirmative votes declares that, in its 1, Published Notice. Notices inviting bids opinion, based on estimates supplied by the city shall be published at least five days before the date manager, thc work in question may be performed of the opening of the bids. Notices shall be better or more economically by city employees or published at least onc~ in a newspaper of general '- the supplies, equipment or matcrials may be circulation publis~d in tee city. i pur,.h,tsed more economically on the epen m~l,.e~. 2. Bidder's List. The finance department 4. The city council, by a resolution adopted shall also solicit sealed bids from responsible by at least five affirmative votes containing a prospective suppliers whose names are on the declaration of facts, deems work, supplies, bidder's list or from responsible prospective ..-.- equipment or materials to be of urgent necessity suppliers who haYe made a written request that for the preservation of life, health or property, their names be added thereto. (Ord. 3616 § I, 1994: Ord. 3214 § I, 1989: prior 3. Bulletin Board. The finance department code § 5.20.060). shall also adYenise pending purchases by a notice posted on a public bulletin board in city hall. 3.20.070 Purchase orders. C. Bidder's Security. Except when inviting .-~. Purchases ol'suppliesandequipment shall bids for the sale of supplies, equipment, or be made onl.¥ b.¥ purchase orders, except as otb- materials, a bid bond in an amount equal to ten erwise pro¥ided in this chapter, percent of the bid shall be pre.,,cribed in the public B. No purchase order shall be issued except b.¥ notices inviting bids. When purchasing supplies, the finance director or his desi.enated represen- equipment, or materials, the finance director or tatiYe. (Prior code § :~.20.070). designee at his or htr discretion may pre~ribe in the public notices in¥iting bids an appropriate 3.20.080 Encumbrnnce of funds, securit.¥ deposit or other applicable bond in an Except in cases where necessa~' bud.tee adjust-amount not to exceed one hundred percent of the mcnts haYe ~en dul.~ authorized, the I~nan~.'e total bid price. Bidder~ shall be entitled to return director shall not issue an.¥ pur~.-hase order t'or supplies or equipment unless there e.~ists an ...._. 119 inat,.,,r~ i_s.q4! 3.20.100 of bid security; provided, however, that a ~ contract price shag be retained by the city from successful bidder shall forfeit his bid security upon each progress paytnent; provided, however, on his refusal or failure to execute the contract within contracts of five hundred thousand doUars or ten days after the notice of award of contract has more, once the work under t~e contract has been at been mailed, unless in the latter event the city is least fi~ty percent completed to the satisfaction of solely responsible for the delay in executing the the city engineer, the finance director may direct contract. The city council may, on refusal or that no additional retention or a retention of less failure of the successful bidder to execute the than ten percent be withheld from future progress conttacL award it to the next lowest responsible payments. bidder. If the city council awards the contract to H. Substitution of Securities. The provisions the next lowest bidder, the amount of the lowest of subsection G. notwithstanding, to the extent bidder's security shall be applied by the city to the required by law, securities provided by the contract price differential between the lowest bid contractor may be substituted in lieu of any such and the second lowest bid, and the surplus, if any, retention. shall be returned to the lowest biddec If the city (Ord. 3617 § I, 1994: Ord. 3214 § 2, 1989: prior council rejects all other bids and readvenises, the code § 5.20.090) amount of the lowest bidder's security may be used to offset the cost of receiving new bids and 3.2 0.10 0 Open market procedure. any difference between that bidder's bid and the A. The erection, improvement or repair of price of the contract which is executed, and the any public buildings or works or in furnishing any surplus, if any, shall be returned to the lowest supplies, equipment and materials for same or for bidder, any other use by the city with an estimated value in D. Bid Opening Procedure. Sealed bids shall the amount of twenty thousand doUars or less may be submitted to the finance department and shall be be made by the finance director in thc open market identified as"bids" on the envelope. Bids shall be pursuant to the procedure described in this section opened in public at the time and place stated in the without obscrving the procedure prescribed in public notices. A tabulation of all bids received S~ction 3.20.090. shall be open for public inspection during regular B. Minimum Number of Quotes. Opcn business hours for a period of not less than thirty market purchases shall, wherever possible, be calendar days after the bid opening. I:~sed on at lcast flu'ce quotes. E. Tie Bids. If two or more bids received are C. Written Quotes. The financc din:ctor shag for the same total, amount or unit price, quality and solicit written quotcs from prospective vendors by service being equal, and if the public interest will tclcphonc, written request and by public notice not permit the delay of re. advertising for bids. the city council may in its discretion accept the one it chooses. F. Performance Bonds. The city shall mxluire a faithful performance bond in an amount equal to one hundred percent of thc contract price issued by an insurer admitted to trafl~act the class of surety insurance in the State of California. G. Retention Percentage. Contract for the erection, improvcment or repair of any public building or work shall specify that ten percent of PROPOSED BUDGET AND FINANCE COMMITTEE - 1997 MEETING SCHEDULE MONDAYS AT 12:15 PM COMMITTEE MEETING COUNCIL MEETING None January 8 January 13 January 22 February 10 February 19 None March 12 March 17 March 26 None April 9 April 14 April 23 None May 7 May 12 May 21 None June 11 June 16 June 25 None July 16 July 21 August 6 August 11 August 20 None September 10 September 15 September 24 None October 8 October '13 October 22 None November 5 November 10 November 19 None December 3 December 8 December 17 DBT:December 4, 1996 DRAFT BAKERSFIELD Patricia J. DeMond, Chair Alan Tardy, City Manage~9'~ Irma Carson Staff: Dolores Teubner / Kevin McDermott AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, November 18, 1996 12:15 p.m. City Manager's Conference Room 1. ROLL CALL Call to Order at 12:20 p.m. Present: Councilmembers: Patricia J. DeMond, Chair; Irma Carson; and Kevin McDermott 2, APPROVAL OF THE OCTOBER 21, 1996 MINUTES Approved as submitted. 3. 'PRESENTATIONS None 4. PUBLIC STATEMENTS None 5. DEFERRED BUSINESS A. REQUESTS FOR ECONOMIC DEVELOPMENT ASSISTANCE FROM SOUTHWEST CONTRACTORS, INC. AND HAMMONS MEAT SALES, INC. As directed by the Committee, staff worked with Southwest Contractors and Hammons Meat Sales to determine their level of contribution toward each of their proposed projects. Both companies have provided documentation of their level of BUDGET AND FINANCE COMMITTEE Monday, November 18, 1996 Page -2- contribution. The Committee approved the proposal for a Iow-interest forgivable loan of $35,000 for Hammons Meat Sales and $150,000 for Southwest Contractors. The Committee asked staff to develop additional parameters to address the method of providing incentives and the best use of incentive funds. It was agreed that incentives should be available regardless of the size and type of company being considered. 6. NEW BUSINESS A. CDBG AMENDMENT FOR CENTENNIAL PLAZA Staff proposed a reprogramming of CDBG funds from unspent prior-year funds or "slow moving" projects to help fund the proposed centennial plaza. The proposal was distributed to Committee members. .' Staff indicated a need to begin the CDBG amendment process now in order to meet the proposed construction time schedule. The project is fully eligible for CDBG funds given the census track location and type of project proposed. After considerable discussion, including further review of the practicality of the proposed use of CDBG funds, the Committee recommended the CDBG amendment to the City Council for approval. B. CHESTER AVENUE STREETSCAPE FINANCING PLAN The $1.2 million budget for this project is in place with the exception of $400,000. Staff has submitted a grant to CalTrans for the remaining funds and the City will know by July if the grant is approved. Staff will also budget CDBG and CDDA funds for the project in the FY 97-98 budget in the event the grant is not approved. The Committee asked staff to remove certain grant eligible bid components from the project specifications and make them add/alternatives, so as not to unduly delay project construction. Staff recommended using this strategy for the landscaping components since they did not require as much lead time as the other bid items. C. PROCEDURE FOR BID PROTESTS The City currently does not have a formal procedure for handling bid protests. The proposed ordinance would establish a process that included notification to other bidders. The Committee discussed the possibility of frivolous protests and because of the lengthy time line, the negative effect to valid bids. The City Attorney was asked to simplify the ordinance and establish the date Council would award the bid as the deadline for bid protests, staff will work with the BIA and Kern County Contractors Association to revise the standard bid specifications to reflect this change. This item will be placed on the next Committee meeting agenda. DRAFT BUDGET AND FINANCE COMMITTEE Monday, November 18, 1996 Page -3- ~ D. CRITERIA TO FIND PUBLIC WORKS CONTRACTORS NONRESPONSIBLE BIDDERS This is another area in which the City does not have a formal written procedure to determine nonresponsible bidders. Prior projects entered into with contractors have resulted in delayed or suspended projects and has placed undue pressures on the City. The Committee expressed concern about the establishment of a list of nonresponsible bidders and recommended that staff pursue a prequalification process as an alternative. A representative of the Kern County Contractors Association expressed support for the prequalification process and asked to have some input in developing the process. Staff was directed to continue working on a proposal and to bring this item back to the Commiitee at its January meeting. 7. ADJOURNMENT The meeting was adjourned at 1:48 p.m. cc: Honorable Mayor and City Council DBT:jp