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HomeMy WebLinkAbout01/10/1989 VICE MAYOR REFERRAL (PROPOSED ORDINANCES ONLY) DATE OF REFERRAL: January 10, 1989 REFERRED TO: BUDGET AND FINANCE COMMITTEE (JOHN W. STINSON) ITEM: (Proposed) An Ordinance of the Council of the City of Bakersfield adding Chapert 3.22 to the Bakersfield Municipal Code relating to contracts for public works and amending Subsection B. of Section 3.20.060, Sections 3.20.090 and 3.20.100 of the Bakersfield Municipal Code relating to purchasing. BACKUP MATERIAL ATTACHED: Yes STATUS: ~Committee Report sent to Council ~Ordinance Adopted ~t~/~/~/~ (date) Proposed Ordinance Cancelled (date) Other REFER.7 VICE MAYOR REFERRAL (PROPOSED ORDINANCES ONLY) DATE OF REFERRAL: January 10, 1989 REFERRED TO: BUDGET AND FINANCE COMMITTEE (JOHN W. STINSON) ITEM: (Proposed) An Ordinance of the Council of the City of Bakersfield adding Chapert 3.22 to the Bakersfield Municipal Code relating to contracts for public works and amending Subsection B. of Section 3.20.060, Sections 3.20.090 and 3.20.100 of the Bakersfield Municipal Code relating to purchasing. BACKUP MATERIAL ATTACHED: Yes STATUS: Committee Report sent to Council Ordinance Adopted (date) Proposed Ordinance Cancelled (date) Other REFER.7 MEMORANDUM December 28, 1988 TO: Vice-Mayor Smith FROM: Arthur J. Saalfield, City Attorney~ SUBJECT: Proposed Ordinances On 12/14/88 the Council approved City Managers' Report No. 3a-88, providing that each proposed ordinance, other than an ordinance re-zoning property or an emergency ordinance, be referred by the Vice-Mayor to a committee to be chosen by the Vice-Mayor prior to Council action. Attached are the following four ordinances: 1. Contracting and Purchasing, .~'4~~ 2. auditori.um-~Committee, ~ ~. ~'-"'"~~ 3. Parking of Commercial Vehicles in Residential Districts, 4. Entry on Property by Animal Control Officers. Please refer these proposed ordinances to whichever committee you deem appropriate. Of the four, the proposed ordinance on contracting and purchasing needs the most immediate attention. Thank you for your help. AJS:sdf 4 M.VMAYOR1 cc: J.D. Hawley M. Strenn C. Graviss R. Patterson E. Schulz J. Hardisty G. Klimko · QADMINISTRATIVE REPORT Meetin9 Date: ~genda Section: New Business ~genda Item: TO: Honorable Mayor and City Councilmembers Approved FROM: ~ City Attorney's Office Department Head DATE: December 28, 1988 City Manager SUBJECT: An Ordinance of the Council of the City of Bakersfield adding Chapter 3.22 to the Bakersfield Municipal Code relating to contracts for public works and amending Subsection B. of Section 3.20.060, Sections 3.20.090 and 3.20.100 of the Bakersfield Municipal Code relating to purchasing. RECOMMENDATION: First reading. BACKGROUND: This ordinance implements the November, 1988 amendments to Charter Sections 135 and 136 and requires a 10% retention for progress payments for the first $500,000 of any contract, allowing the Public Works Manager discretion as to further retentions, and establishes'different dollar thresholds for formal bidding of contracts ($20,000+), and open market procedure (written quotes for $10,000 - $20,000; oral quotes for $5,000 - $10,000; petty cash procedures set by administra- tive rules and regulations for purchases involving $5,000 or less). AJS/sdf 4:ADMINRPT1 DRAFT ORDINANCE NO. , NEW SERIES AN ORDINANCE OF THE COUNCIL OF THE CITY OF BAKERSFIELD ADDING CHAPTER 3.22 TO THE BAKERSFIELD MUNICIPAL CODE RELATING TO CONTRACTS FOR PUBLIC WORKS AND AMENDING SUBSECTION B. OF SECTION 3.20.060, SECTIONS 3.20.090 AND 3.20.100 OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO PURCHASING. BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. Chapter 3.22 is hereby added to the Bakersfield Municipal Code to read as follows: CHAPTER 3.22 CONTRACTS FOR PUBLIC WORKS Sections: 3.22.010 Purpose. 3.22.020 Bidding required - Exceptions. 3.22.030 Rejection of bids. 3.22.040 Minimum retention percentages - Bonding - Substitution of securities. 3.22.010 Purpose. This chapter is adopted to establish requirements and procedures for contracts for all public buildings and works, and supplies, equipment, and services related thereto, in accordance with Sections 135 and 136 of the Charter of the City of Bakers- field. 3.22.020 Bidding required - Exceptions. A. No contract for the erection, improvement or repair of any public building or works, or for the furnishing of supplies, equipment or services related thereto, for a sum in excess of twenty thousand dollars ($20,000.00) shall be awarded except to the lowest responsible bidder submitting a responsive bid. Contracts for a sum of twenty thousand dollars ($20,000) or less shall be subject to the procedure set forth in Section 3.20.100. B. Notices inviting bids shall be published at least five days before the date of opening of bids in a newspaper of general circulation published in the City. C. Whenever the Council, by resolution, determines that work, ~supplies, equipment or materials can only be reasonably obtained from one vendor because of the 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, a contract for such work, supplies, equipment or materials may be .awarded without first seeking bids therefor. D. The City Council, after rejecting bids, or if no bids are received, may declare and determine that, in its opinion, based on estimates supplied by the City Manager, the work in ques- tion may be performed better or more economically by City employees or the materials or equipment may be purchased more economically on the open market, and after the adoption of a resolution to this effect by at least four affirmative votes of the Council, may pro- ceed to have said work done in the manner stated, without further observance of the provisions of this section. E. Such contracts may be'let without advertising for bid if such work or supplies or equipment shall be deemed by the City Council to be of urgent necessity for the preservation of life, health, or property, and shall be authorized by resolution passed by at least five affirmative votes of the City Council and containing a declaration of the facts constituting such urgency. 3.22.030 Rejection of bids. The Council may, in its discretion, reject any and all bids and may readvertise for bids. 3.22.040 Minimum retention percentage - Bonding - Substitution of securities. A. Contracts for the erection, improvement or repair of any public building or work shall specify that ten percent (10%) of the contract price shall be retained by the City from each progress payment; provided, however, on contracts of $500,000 or more, once the work under the contract has been at least half com- pleted to the satisfaction of the City Engineer, the City Engineer may direct that no additional retention be withheld from future progress payments. - 2 - B. The City shall require a faithful performance bond in an amoUnt equal to one hundred percent (100%) of the contract price issued by an i'nsurer admitted to transact the class of surety insurance in the State of California. C. The provision of subsection A. not withstanding, to the extent required by law securities provided by the contractor may be substituted in lieu of any such retention. SECTION 2. Subsection B. of Section 3.20.060 of the Bakersfield Municipal Code is hereby amended to read as follows: 3.20.060 Bidding. B. Bidding may be dispensed with only in those circum- stances specified in Section 136 of the City Charter or pursuant to the provisions of Section 3.20.100. SECTION 3. Section 3.20.090 of the Bakersfield Municipal Code is hereby amended to read as follows: 3.20.090 Formal contract procedure. A. Except as otherwise provided in this chapter, pur- chases of supplies and equipment of an estimated value greater than twenty thousand dollars ($20,000.00) shall be by written order or contract with the lowest responsible bidder pursuant to the procedure prescribed in this section. B. Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased and shall state where bid blanks and specifications may be secured and. the time and place for opening bids. 1. Published Notice. Notices inviting bids shall be published at least five (5) days before the date of opening of the bids. Notices shall be published at least once in a newspaper of general circulation published in the city. - 3 - 2. Bidders' List. The Finance Department shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders' list or from responsible prospective suppliers who have made a written request that their names be added thereto. 3. Bulletin Board. The Finance Department shall also advertise pending purchases by a notice posted on a public bulletin board in City Hall. C. Bidder's Security. When deemed necessary by the Finance Director, bidder's security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless in the latter event the city is solely responsible for the delay in executing the contract. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the city to the contract price differential between the lowest bid and the second'lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If the City Council rejects all other bids and re-advertises, the amount of the lowest bidder's security may be used.to offset the cost of receiving new bids and any difference between that bidder's bid and the price of the contract which is executed, and the surplus, if any, shall be returned to the lowest bidder. D. Bid Opening Procedure. Sealed bids shall be submit- ted to the Finance Department and shall be identified as "bids" on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening. E. Rejection of Bids. In its discretion, the City Council may reject any and all bids presented. The City Council may order the Finance Department to re-advertise for bids pursuant to the procedure prescribed in this section. F. Tie Bids. If two or more bids received' are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of re- advertising for bids, the City Council may in its discretion accept the one it chooses. - 4 - G. Performance Bonds. The Finance Department shall have authority to require a performance bond from a corporate surety admitted to transact insurance business in the State of California in such amount as it finds reasonably necessary to pro- tect the best interests of the city. When the Finance Department requires a performance bond, the amount of the bond shall be set forth in the notice inviting bids. SECTION 4. Section 3.20.100 of the Bakersfield Municipal Code is hereby amended to read as follows: 3.20.100 Open market procedure. A. Purchases of supplies and equiPment of an estimated value in the amount of twenty thousand dollars ($20,000.00) or less may be made by the Finance Director in the open market pur- suant to the procedure prescribed in this section, and without observing the procedure prescribed in Section 3.20.090. B. Minimum Number of Quotes. Open market purchases shall, wherever possible, be based on at least three (3) written quotes. C. Notice Inviting Quotes. The Finance Director shall solicit quotes by written requests to prospective vendors, by telephone, and by public notice posted on a public bulletin board in City Hall, for single purchases amounting to more than ten thousand dollars ($10,000.00) but less than twenty thousand dol- lars and one cent ($20,000.01). D. Written Quotes. The Finance Director shall keep a record of all open market orders and quotes for a period of one year after the submission of quotes or the placing of orders. This record, while so kept, shall be open to public inspection. E. Oral Quotes. A minimum of three oral quotes shall be obtained from prospective suppliers by the Finance Director when the amount involved is more than five thousand dollars ($5,000.00) but less than ten thousand dollars and one cent ($10,000.01), unless in the Finance Director's discretion written bids have been obtained or bidding has been dispensed with in accordance with Section 3.20.060. - 5 - F. Petty Cash. Purchases of five thousand dollars ($5,000.00) or less may be made through petty cash procedures pre- scribed by administrative rUles and regulations. SECTION 5. This ordinance shall be posted in'accordance with the City Charter provisions and shall be come effective thirty (30) days from and after the date of its passage. o0o - 6 - I HEREBY CERTIFY that the foregoing Ordinance was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on , by the following vote: CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED MAYOR of the City of Ba,kersfield APPROVED as to form: CITY ATTORNEY of the City of Bakersfield AJS/meg O ORD 4 PA.PW1 12/12/88 -- 7 --