HomeMy WebLinkAboutOrd 813 P
ORDINANCE NO. 813
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CATHEDRAL CITY AMENDING CATHEDRAL CITY MUNICIPAL
CODE CHAPTER 3.12 "PURCHASES" RELATED TO
PURCHASING PROCEDURES AND RENAMING THE CHAPTER
"CONTRACTS AND PURCHASING" AND REPEALING
CHAPTER 3.30 "INFORMAL BIDDING PROCEDURES"
WHEREAS, Chapter 3 of Title 3 of the Cathedral City Municipal Code
established the purchasing system and standards for the City; and
WHEREAS, the City Council desires to revise the purchasing system to
streamline purchases, improve flexibility, ensure consistency with federal
requirements for emergency purchases, modify the local preference program,
and establish procurement ethical standards; and
WHEREAS, the City Council finds that this Ordinance furthers the public
welfare by improving efficiencies in the procurement process while maximizing
the use of public funds.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF
CATHEDRAL CITY DOES ORDAIN AS FOLLOWS:
SECTION 1. AMENDMENTS TO CODE.
A. Chapter 3.12. of the Cathedral City Municipal Code is amended in
its entirety to read as shown in Exhibit "A" hereto.
B. Chapter 3.30 of the Cathedral City Municipal Code is hereby
repealed.
SECTION 2. SEVERABILITY
The City Council declares that, should any provision, section, paragraph,
sentence or word of this ordinance be rendered or declared invalid by any final
court action of competent jurisdiction or by reason of any preemptive legislation,
the remaining provision, sections, paragraphs, sentences or words of this
ordinance as hereby adopted shall remain in full force and effect.
SECTION 3. EFFECTIVE DATE
This ordinance shall take effect thirty (30) days after its second reading by
the City Council.
RN##4829-5700-6946 v1
SECTION 4. CERTIFICATION
The City Clerk shall certify to the passage of this ordinance and shall
cause the same to be published according to law.
The foregoing Ordinance was approved and adopted at a meeting of the
City Council held on May 23, 2018 by the following vote:
AYES: Councilmembers Aguilar, Carnevale and Kaplan; Mayor
Henry and Mayor Pro Tem Pettis
NOES: None
ABSTAIN: None
ABSENT: None
tan Henry, Mayor
ATTEST:
"::2n
Gary Howell, City Clerk
APPROVED AS TO FO
Eric Vail, Cdy Attorney
RIV#4829-5700-6946 v1 2
EXHIBIT "A"
TITLE 3 — REVENUE AND FINANCE
Chapter 3.12 CONTRACTS AND PURCHASING
PART 1 — GENERAL
Section 3.12.10. Purpose.
This chapter defines the contract procurement policies, procedures and
requirements for public works projects, general services, professional services,
equipment, materials supplies and other tangible items ("goods"), and any other
similar contracts involving the expenditure of public funds in exchange for items
or services of value to the City. This chapter establishes the contracting authority
of the City Council, City Manager, and the purchasing agent. The purpose of this
chapter is: to foster and encourage the use of best management practices in
contracting; to ensure quality and efficiency in the procurement of goods and
services at the lowest cost commensurate with the quality needed; to provide for
a fair and equitable procurement process utilizing standardized solicitation
procedures; and to maintain honesty and integrity in the procurement process.
Section 3.12.020. Scope.
A. Contracts for public works projects, general services, and
professional services, and contracts or purchase orders for goods,
shall be solicited and awarded pursuant to the procedures
contained in this chapter.
B. The solicitation or award policies, procedures and requirements
contained in this chapter shall not apply to the following:
1. Subdivision agreements, improvement agreements,
development agreements and other land use contracts
entered between the City and property owners or developers
pursuant to other parts of this municipal code;
2. Franchises and franchise agreements;
3. Contracts between the City and other public entities and
public utilities for the City's provision of services to the other
entities and utilities;
4. Transactions involving the acquisition, assignment and
disposal of interests in real property; and
RIV#4829-5700-6946 V1 3
5. Agreements to provide funds pursuant to the human
services resource allocation process or community
development block grant program.
Section 3.12.030. Council contract policies adopted by resolution.
City Council may from time to time adopt by resolution policies related to contract
solicitation and award procedures and requirements. The policies may include,
without limitation, policies addressing local boycotts, protest procedures, and
price preferences for use of recycled or sustainable goods and for local
businesses. The policies shall not conflict with, but may be in addition to, any
provisions of this chapter. City Council policies shall be considered and
implemented in the solicitation and award of contracts made under this chapter.
Section 3.12.040. Centralized purchasing.
Centralized purchasing shall provide for efficient procedures for the purchase of
goods and services; to acquire goods and services at the lowest possible cost
commensurate with quality needed; to exercise positive financial control over
purchases as provided by the City Charter; and to ensure the quality of such
purchases. Centralized purchasing shall operate as a component of the finance
department.
Section 3.12.050. Purchasing agent.
The position of purchasing agent, who may also be known as the "purchasing
officer," shall be designated by the Finance Director. The duties of the
purchasing agent may be combined with those of any other office or position.
The purchasing agent shall have the following duties and authority:
A. Purchase or contract for goods and services required by any using
department in accordance with purchasing procedures prescribed
by this chapter, such administrative regulations as the purchasing
agent shall adopt for the internal management and operation of the
purchasing function and such other rules and regulations as
prescribed by the City Council or the City Manager;
B. Negotiate and recommend execution of contracts for the purchase
of goods and services;
C. Act to procure for the City the needed quality in goods and services
at the least expense to the City;
D. Discourage uniform bidding and endeavor to obtain as full and
open competition as possible on all purchases;
RIV#4829-5700-6946 v1 4
i
E. Prepare and recommend to the City Council rules governing the
purchase of goods and services for the City;
F. Prepare and recommend revisions and amendments to the
purchasing rules;
G. Keep informed of current developments in the field of purchasing,
prices, market conditions and new products;
H. Prescribe and maintain such forms as are reasonably necessary for
the operation of this chapter and other rules and regulations;
�I
I. Supervise the receipt and inspection of goods purchased to ensure
conformance with specifications;
J. Supervise the transfer of surplus or unused goods between
departments as needed and the sale of all goods that cannot be
used by any department or have become unsuitable for city use;
K. Maintain an approved vendors list, vendors' catalogue file and
records needed for the efficient operation of the purchasing
function;
L. Encourage the standardization of similar goods used by the various
city departments; and
M. Determine the regulations and procedures in this chapter are
followed and implemented.
p
Section 3.12.060. Exemptions from centralized purchasing.
The City Manager may authorize, in writing, any department to purchase
specified goods independently of the centralized purchasing division of the
finance department; however, such purchases shall be made in conformity with
the procedures established by this chapter.
Section 3.12.070. Purchase orders.
Purchases of goods and every contract for the performance of services and
public works projects shall be made only by purchase orders, unless otherwise
authorized by the City Manager or any rules and regulations adopted by the City
Council pursuant to this chapter. Except as otherwise provided in this chapter, no
contract shall be deemed to be an authorization to proceed with work unless
accompanied by a properly authorized and executed purchase order nor shall
any vendor or contracting party be authorized to perform any service, perform
any public works project, or provide any goods without first receiving a properly
RIV#4829-5700-6946 V1 5
authorized and executed purchase order issued by the purchasing agent or other
authorized person upon verification of sufficient unencumbered appropriation
balance. The Finance Director shall have the authority to set a minimum dollar
threshold for which a purchase order is required; however, said threshold shall
not exceed the minimum bid limit as provided in this chapter.
Section 3.12.080. Open (standing) purchase orders.
Notwithstanding any other provisions herein, the purchasing agent may issue
open (standing) purchase orders for goods or services as needed to support
ongoing city operations and support various city departmental functions. The
open (standing) purchase order must establish a maximum dollar amount of
expenditure for the contract or budget line item.
Section 3.12.090. Contract types.
A. Public works contract: A public works contract includes a contract
paid for in whole or in part from public funds for the construction,
alteration, repair, improvement, reconstruction or demolition of any
public building, facility, street, sidewalk, park or open space
improvement, or other public-improvement.
B. Contract for goods: A contract for goods includes a contract or
purchase order for the purchase of supplies, materials or
equipment, including, without limitation, office supplies, janitorial
supplies, furnishings, equipment, machinery, tools, vehicles,
computer hardware and software and other personal property,
materials or goods. A contract for goods may include labor
incidental to the purchase of goods, including any set-up,
installation and testing services.
C. General services contract: A general services contract includes a
contract providing for work, labor or services not requiring
specialized experience, knowledge or training with or without the
furnishing of goods incidental to the provision of services, including,
without limitation, contracts for:
1. Maintenance of public buildings, streets, parks and other
public improvements;
2. Repair, modification and maintenance of equipment or
other goods;
3. Licensing, installation and maintenance of or relating to
information technology property, goods and services,
including, without limitation, computer hardware and
RIV#4829-5700-6946 V1 6
software, and including the provision of data storage
services, unless the information technology services
would require specialized certification, expertise,
knowledge, or training;
4. Janitorial services, uniform cleaning, tree trimming, street
sweeping, power washing and landscape maintenance;
and
5. Leasing or licensing of goods and other personal
property for use by the city.
D. Professional services contract: A professional services contract
includes a contract for services involving the exercise of
professional discretion and independent judgment based on
specialized certification, knowledge, expertise or training. These
services may include, without limitation, those provided by
accountants, actuaries, auditors, appraisers, architects, attorneys,
engineers, financial advisors, information technology experts,
instructors, and environmental and land use planners.
E. Emergency contract: A contract for goods and services necessary
to protect the public health, safety, and welfare in the event of an
emergency. An emergency means and includes an urgent
unforeseen event threatening life, property, or the general public
health, safety and welfare, included, without limitation, an
emergency declared by the Federal Emergency Management
Agency. The City Manager is authorized to determine an
emergency exists without further declaration by.City Council.
PART 2 — PURCHASING OF GOODS AND SERVICES
Section 3.12.100. Bidding.
Purchases of goods and services shall be by bid procedures. Bidding may be
dispensed with under conditions stated in this chapter.
Section 3.12.110. Local vendor preference.
A. Local Preference Option: The purchasing agent may, when seeking
bids for goods, notify bidders the bids will be evaluated in a manner
that gives preference to local vendors as provided for in this
section. The local preference option shall not be exercised unless
notice of such option was given in the solicitation.
B. Preference to Local Vendors: A solicitation for goods may include
notice that, if the bid of a local vendor, is no more than five percent
RIV#4829-5700-6946 V1 7
higher than the otherwise lowest bid, the purchasing agent may
accept the local vendor's bid on finding it is in the best interest of
the city. A local vendor is defined as a vendor that pays sales taxes
from a Cathedral City address so that one percent of the net sales
price will be remitted by the state of California to the City.
C. Preference to Coachella Valley Vendors: The solicitation may also
include notice that, if the bid of a Coachella Valley vendor is no
more than three percent higher than the otherwise lowest bid and a
local vendor's bid has not been accepted under paragraph B, the
purchasing agent may accept that Coachella Valley vendor's bid on
a finding it is in the best interests of the city. A Coachella Valley
vendor is defined as a vendor that has a valid physical business
address, excluding post office boxes, located within one of the nine
incorporated cities of the Coachella Valley or an unincorporated
area of Riverside County within the boundaries of the Coachella
Valley Association of Governments. Furthermore, the business has
operated or performed business on a day-to-day basis for at least
six (6) months prior to the bid opening date, and holds a valid
business license by a jurisdiction located in the Coachella Valley.
Section 3.12.120. Formal (sealed) bid procedure.
Except as otherwise provided in this chapter, purchases of goods and services of
an estimated value greater than seventy-five thousand dollars ($75,000) shall be
by formal sealed written competitive bids. Awards for such expenditures shall be
made by the City Council to the lowest responsive and responsible bidder
pursuant to the formal bid procedure prescribed in this section unless the
contract is being awarded based on the best value to the City as provided for in
Section 3.12.180. The determination of "lowest responsive and responsible
bidder" shall be at the discretion of the City Council pursuant to findings and
recommendations presented by the purchasing agent at the time of award of
contract, and should account for the local vendor preference.
A. Budget Verification: Prior to bid solicitation, the purchasing agent
shall confirm the requested purchase is identified in the currently
adopted biennial budget. For items not identified in the currently
adopted biennial budget, the requesting department shall be
required to receive City Council approval prior to bid selection.
B. Bid Specifications: Bid specifications shall be prepared and include
the criteria that must be met to be considered the lowest responsive
and responsible bidder.
C. Notice Inviting Bids: Notices inviting formal bids shall be published
at least ten days prior to the date of opening of the bids. Notices
RIV#4829-5700-6946 V1 8
shall be published at least once in a newspaper of general
circulation in the city. In addition, the purchasing agent shall also
solicit formal sealed bids from responsible suppliers whose names
are on the approved vendors list, or who have made written request
their names be added thereto. The purchasing agent shall advertise
the pending formal purchases by posting a notice on the public
bulletin board at the city offices. Notice inviting formal bids shall
include a general description of the article or service desired, state
where bid documents and specifications may be secured, and the
time and place for opening bids.
D. Bond Requirements: The City Council shall have authority to
require a faithful performance bond or other bonds before entering
into a contract for goods or services. If bonds are required, the form
and amount thereof shall be designated in the notice inviting bids.
E. Formal Bid Opening Procedure: Sealed bids shall be submitted to
the purchasing agent and be identified as "bids" on the envelope.
The purchasing agent, or designee, shall publicly open all bids at
the time and place stated in the public notices. All bids received
shall be available for public inspection at the time and place of
opening, and thereafter, in the City Clerk's office during regular
business hours. Bids must be received prior to the bid opening to
be considered.
F. Rejection of Formal Bids. In its discretion, the City may reject any
and all bids presented and cause re-advertising for bids pursuant to
the procedure prescribed in this chapter. However, when all bids
exceed the authorized budgeted amount, the City Manager may
authorize rejection of all bids and authorize rebidding based upon
the original specifications or as they may be modified, in
accordance with procedures prescribed in this chapter.
Section 3.12.130. Tie formal bids.
If two or more formal 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 choose whichever of the following
options it deems to serve the best interest of the City:
A. Select one bid, giving preference to a business located within
Cathedral City; or
B. Reject all bids and re-solicit for bids; or
RIV#4829-5700-6946 V1 9
C. Reject all bids and authorize negotiation of an agreement between
the City and one of the equivalent bidders.
Section 3.12.140. No formal bids.
When no formal bids or no responsive bids are received, the purchasing officer is
authorized to negotiate for written proposals, and a recommendation shall be
presented to the City Manager and award, if any, shall be made in accordance
with applicable provisions prescribed in this chapter.
Section 3.12.150. Open market or informal bid procedure.
A. Purchases of goods and services of an estimated value in the
amount of seventy-five thousand dollars ($75,000) (or less may be
made by the purchasing agent in the open market and without
observing the formal competitive bid procedures prescribed in this
chapter. Such purchases shall be based on at least three
competitive quotations, whenever practical, to the lowest
responsive and responsible bidder, unless the purchase is being
made based on best value to the city as provided for in Section
3.12.180.
B. The purchasing agent shall solicit informal bids by written requests
to prospective vendors, or by telephone, or by public notice posted
on a public bulletin board at the City offices.
C. The purchasing agent shall keep a written record of all open market
purchases and informal bids for a period of one year after placing
the order. This record, while so kept, shall be open to public
inspection.
Section 3.12.160. Exceptions to competitive bidding requirement.
Notwithstanding any provision of this chapter to the contrary, the formal and
informal bidding procedures and requirements of this part may be dispensed with
in any of the following instances:
A. When the commodity can be obtained from only one vendor;
B. The City Manager may authorize the purchase of goods and
services where an emergency is deemed to exist and it is
determined the public health, safety or welfare would be threatened
if the normal procedure were followed. Emergency purchases of
seventy-five thousand dollars ($75,000) or more shall be submitted
to the City Council for ratification at the next regular council meeting
after the purchase is authorized;
RIV#4829-5700-6946 v1 10
C. Unless otherwise provided by state or federal law, the city council
may authorize the execution of contracts for general services,
professional and consultant services without observing the bidding
requirements provided in this chapter.
D. Unless otherwise provided by state of federal law and provided
there exists an unencumbered appropriation in the fund account
against which the expense is to be charged, the city manager may
enter into a contract for goods, general services or professional and
consulting services without observing the bidding procedure in this
chapter where the amount of the contract or purchase does not
exceed the amount of seventy-five thousand dollars ($75,000).
E. Any agreement involving acquisition of goods and services entered
into with another governmental entity, or through any advantageous
governmental contract approved by the City Council, or to the
purchase of election supplies; or to purchases from a vendor or
manufacturer which, through the city's bidding procedure, or
through the competitive bidding procedures of another
governmental entity in the state of California, has established a
price at which such a vendor or manufacturer is willing to sell to the
City. To avail the city of the benefit of the rate established by other
entities' bidding procedures, that other entity's bidding procedure
must have received more than one responsive bid, and the bid
award must have occurred within one year prior to the City's
issuance of a purchase order.
F. Secondhand, previously-owned or used merchandise may be
purchased without competitive bidding under procedures
established by the City Manager, which assure a variety of sources
are considered, when feasible. For any proposed purchase, the
cost of which will be exceeding seventy-five thousand dollars
($75,000.00), approval of the utilization of such process by the City
Council shall be required in advance.
Section 3.12.170. Regulations regarding selection of contract services.
The City Council shall by resolution prescribe any additional procedures, rules
and regulations governing the solicitation, selection and award of proposals or
bids for the furnishing of personal services or professional or consulting services
or for other contractual services. Such procedures, rules and regulations shall
have the dual purpose of obtaining both the highest quality and most cost-
effective contractual services. Local preference may be given in accordance with
this chapter, as allowed for by state and federal law.
RIV#4829-5700-6946 V1 11
Section 3.12.180 Best Value Criteria.
The city may opt to award a contract subject to formal or informal procedures
under Sections 3.12.120 or 3.12.150 based on the best value provided the city
rather than the lowest responsive and responsible bidder. The determination as
to which methodology will be used shall be made prior to the publication of
solicitation materials by the city, and the city may reserve the right to use either
methodology in its solicitation materials.
Where a contract may be awarded based on the best value to the city, in
determining the vendor that will provide the best value to the city consideration is
to be given to quality and performance of the goods and services to be provided
by the vendor. Criteria for determining the best value may include but not be
limited to the following:
A. The cost of the goods and nonprofessional services;
B. The ability, capacity, and skill of the vendor to perform the contract
and to provide the goods and nonprofessional services requested;
C. The ability of the vendor to provide the goods and nonprofessional
services requested promptly or within the time specified, without delay or
interference;
D. The ability of the vendor to demonstrate the attributes of
trustworthiness, quality, fitness, capacity, and experience to satisfactorily
perform the contract;
E. The character, integrity, reputation, judgment, experience, and
efficiency of the vendor;
F. The quality of vendor's performance on previous purchases or
contracts with the City;
G. The ability of the vendor to provide future maintenance, repair
parts, and services for the use of the goods and supplies, equipment, or
materials purchased; and
H. The ability of the vendor to demonstrate its prior, current, and
continued compliance during the contract term with all applicable federal,
state, and local laws, statutes, ordinances and all lawful orders, rules, and
regulations promulgated thereunder.
RIV#4829-5700-6946 v1 12
PART 3 — FEDERAL REQUIREMENTS
Section 3.12.190. Regulations for the procurement of property or services
stemming from federal aid.
A. This section shall apply to the awarding of sub-grants and contracts
by the City stemming from federal grants to the City. This section
shall have the same application on the awarding of sub-grants and
contracts by the City stemming from state, county or other non-
federal government entity grants originating as federal grants.
B. Procurement Standards.
1. The City shall maintain a contract administration system which
ensures contractors perform in accordance with the terms,
conditions and specifications of their contracts or purchase
orders.
2. The City shall maintain written standards of conduct covering
conflicts of interest and governing the actions of its employees
engaged in the selection, award and administration of contracts.
No employee, officer or agent of the City shall participate in
selection, or in the award or administration of a contract
supported by federal funds if a conflict of interest, real or
apparent, would be involved. Such a conflict would arise when:
a. The employee, officer or agent;
b. Any member of his or her immediate family;
c. His or her partner; or
d. An organization which employs, or is about to employ,
any of the above, has a financial or other interest in or a
tangible personal benefit from a firm considered for
award.
3. The City's officers, employees or agents will neither solicit nor
accept gratuities, favors or anything of monetary value from
contractors, potential contractors, or parties to sub-agreements.
Such a conflict will not arise where the financial interest is not
substantial or the gift is an unsolicited item of nominal intrinsic
value. The City's standards of conduct provide for disciplinary
actions to be applied for violations of such standards by officers,
employees, or agents of the City.
4. The City shall not enter into a contract with a non-Federal entity
has a parent, affiliate, or subsidiary organization that is not a
state, local government or Indian tribe, unless the non-Federal
RIV#4829-5700-6946 V1 13
entity maintains written standards of conduct covering
organizational conflicts of interest. Organizational conflicts of
interest mean due to relationships with a parent company,
affiliate, or subsidiary organization, the non-Federal entity is
unable or appears to be unable to be impartial in conducting a
procurement action involving a related organization.
5. The City shall avoid acquisition of unnecessary or duplicative
items. Consideration will be given to consolidating or breaking
out procurements to obtain a more economic purchase. Where
appropriate, an analysis will be made of lease versus purchase
alternatives, and any other appropriate analysis to determine
the most economical approach.
6. The City shall consider entering into state and local
intergovernmental agreements or inter-entity agreements where
appropriate for procurement or use of common or shared goods
and services.
7. The City shall consider using Federal excess and surplus
property in lieu of purchasing new equipment and property
whenever such use is feasible and reduces project costs.
8. The City shall consider using value engineering clauses in
contracts for construction projects of sufficient size to offer
reasonable opportunities for cost reductions. Value engineering
is a systematic and creative analysis of each contract item or
task to ensure its essential function is provided at the overall
lower cost.
9. The City shall make awards only to responsible contractors
possessing the ability to perform successfully under the terms
and conditions of a proposed procurement. Consideration will
be given to such matters as contractor integrity, compliance with
public policy, record of past performance and financial and
technical resources.
10.The City shall maintain records sufficient to detail the history of
procurement. These records will include, but are not necessarily
limited to the following: rationale for the method of procurement,
selection of contract type, contractor selection or rejection and
the basis for the contract price.
11.The City shall use time and material type contracts only:
RIV#4829-5700-6946 v1 14
a. After a determination is made that no other contract is
suitable; and
b. If the contract includes a ceiling price the contractor
exceeds at their own risk.
12.The City alone shall be responsible, in accordance with good
administrative practice and sound business judgment, for the
settlement of all contractual and administrative issues arising
out of procurements. These issues include, but are not limited
to, source evaluation, protests, disputes and claims. These
standards do not relieve the City of any contractual
responsibilities under its contracts.
C. Competition.
1. The City will conduct procurement transactions in a manner
providing full and open competition. To ensure objective
contractor . performance and eliminate unfair competitive
advantage, contractors developing or drafting specifications,
requirements, statements of work, or invitations for bids or
requests for proposals shall be excluded from competing for
such procurements.
2. The City shall conduct procurements in a manner prohibiting the
use of statutorily or administratively imposed in-state or local
geographical preferences in the evaluation of bids or proposals,
except in those cases where applicable Federal statutes
expressly mandate or encourage geographic preference. When
contracting for architectural and engineering (A/E) services,
geographic location may be a selection criterion provided its
application leaves an appropriate number of qualified firms,
given the nature and size of the project, to compete for the
contract.
3. The City shall have . written procedures for procurement
transactions. These procedures will ensure that all solicitations:
a. Incorporate a clear and accurate description of the
technical requirements for the material, product or
service to be procured. Such description shall not, in
competitive procurements, contain features which unduly
restrict competition. The description may include a
statement of the qualitative nature of the material,
product or service to be procured, and when necessary,
shall set forth those minimum essential characteristics
and standards to which it must conform if it is to satisfy its
RIV#4829-5700-6946 v1 15
intended use. Detailed product specifications should be
avoided. When it is impractical or uneconomical to make
a clear and accurate description of the technical
requirements, a brand name or equal description may be
used to define the performance or other salient
requirements of procurement. The specific features of the
named brand which must be met by offerors shall be
clearly stated; and
b. Identify all requirements which the offerors must fulfill and
all other factors to be used in evaluating bids or
proposals.
4. The City shall ensure prequalified lists of persons, firms or
products that are used in acquiring goods and services are
current and include enough qualified sources to ensure
maximum open and free competition. The City shall not
preclude potential bidders from qualifying during the solicitation
period.
D. Methods of Procurement to be Followed. The City shall use one of
the following methods of procurement:
1. Procurement by Micro-Purchases. Procurement by micro-
purchase is the acquisition of supplies or services, the
aggregate dollar amount of which does not exceed the micro-
purchase threshold as set by the Federal Acquisition Regulation
at 48 CFR Subpart 2.1 (Definitions) and adjusted periodically for
inflation. As of the date of this ordinance, the micro-purchase
threshold is $3,500.00.
2. Procurement by Small Purchase Procedures. Small purchase
procedures are those relatively simple and informal
procurement methods for securing services, supplies or other
property that do not cost more than the simplified acquisition
threshold as set by the Federal Acquisition Regulation at 48
CFR Subpart 2.1 (Definitions) and in accordance with 41 U.S.C.
1908 and periodically adjusted for inflation. If small purchase
procedures are used, price or rate quotations shall be obtained
from an adequate number of qualified sources. As of the date of
this ordinance, the simplified acquisition threshold is $150,000.
For purchases exceeding seventy-five thousand dollars
($75,000.00), City Council approval is required.
3. Procurement by Sealed Bids (Formal Advertising). Bids are
publicly solicited and a firm-fixed-price contract (lump sum or
RIV#4829-5700-6946 v1 16
unit price) is awarded to the responsible bidder whose bid,
conforming to all the material terms and conditions of the
invitation for bids, is the lowest in price.
a. For sealed bidding to be feasible, the following conditions
should be present:
(1) A complete, adequate, and realistic
specification or purchase description is available;
(2) Two or more responsible bidders are willing
and able to compete effectively for the business;
and
(3) The procurement lends itself to a firm-fixed-
price contract and the selection of the successful
bidder can be made principally based on price.
b. If sealed bids are used, the following requirements apply:
(1) The invitation for bids will be publicly
advertised and bids shall be solicited from an
adequate number of known suppliers, providing
them sufficient time prior to the date set for
opening the bids;
(2) The invitation for bids, which will include any
specifications and pertinent attachments, shall
define the items or services for the bidder to
properly respond;
(3) All bids will be publicly opened at the time and
place prescribed in the invitation for bids;
(4) A firm-fixed-price contract award will be made
in writing to the lowest responsive and responsible
bidder. Where specified in bidding documents,
factors such as discounts, transportation cost and
life cycle costs shall be considered in determining
which bid is lowest. Payment discounts will only be
used to determine the low bid when prior
experience indicates that such discounts are
usually taken advantage of; and
(5) If there is a sound documented reason, any or
all bids may be rejected.
4. Procurement by Competitive Proposals. The technique of
competitive proposals is normally conducted with more than one
source submitting an offer, and either a fixed-price or cost-
reimbursement type contract is awarded. It is generally used
RIV#4829-5700-6946 V1 17
when conditions are not appropriate for the use of sealed bids. If
this method is used, the following requirements apply:
a. Requests for proposals shall be publicized and identify all
evaluation factors including relative importance. Any
response to publicized requests for proposals shall be
honored to the maximum extent practical;
b. Proposals will be solicited from an adequate number of
qualified sources;
c. The City shall conduct technical evaluations of the
proposal received and for selecting awardees;
d. Awards will be made to the responsible firm whose
proposal is most advantageous to the program_, with price
and other factors considered; and
e. The City may use competitive proposal procedures for
qualifications-based procurement of
architectural/engineering (A/E) professional services
whereby competitors' qualifications are evaluated and the
most qualified competitor is selected, subject to
negotiation of fair and reasonable compensation. The
method, where price is not used as a selection factor,
can only be used in procurement of A/E professional
services. It cannot be used to purchase other types of
services though A/E firms are a potential source to
perform the proposed effort.
5. Procurement by noncompetitive proposals is procurement
through solicitation of a proposal from only one source and may
be used only when one or more of the following circumstances
applies:
a. The item is available only from a single source;
b. The public exigency or emergency for the requirement
will not permit a delay resulting from competitive
solicitation;
c. The Federal awarding agency or pass-through entity
expressly authorizes noncompetitive proposals in a
written request from the City; or
d. After solicitation of multiple sources, competition is
determined inadequate.
RIV#4829-5700-6946 V1 18
6. Contracting with Small and Minority Businesses, Women's
Business Enterprises and Labor Surplus Area Firms.
a. The City shall take all necessary affirmative steps to
assure that minority businesses, women's business
enterprises and labor surplus area firms are used when
possible.
b. Affirmative steps include:
(1) Placing qualified small and minority businesses
and women's business enterprises on solicitation
lists;
(2) Assuring that small and minority businesses
and women's business enterprises are solicited
whenever they are potential sources;
(3) Dividing total requirements, when economically
feasible, into smaller tasks or quantities to permit
maximum participation by small and minority
businesses and women's business enterprises;
(4) Establishing delivery schedules, where the
requirement permits, which encourage
participation by small and minority businesses and
women's business enterprises;
(5) Using the services and assistance, as
appropriate, of such organizations as the Small
Business Administration and the Minority Business
Development Agency of the Department of
Commerce; and
(6) Requiring the prime contractor, if subcontracts
are to be let, to take the affirmative steps listed in
subsections 6.b.(1) through (6) of this section.
7. Contracts Cost and Price.
a. The City shall perform a cost or price analysis in every
procurement action exceeding the simplified acquisition
threshold including contract modifications. The method
and degree of analysis will be dependent on the facts
surrounding each procurement situation. As a starting
point, the City shall make independent estimates before
receiving bids or proposals.
b. Costs or prices based on estimated costs for contracts
under the Federal award will be allowable only to the
extent that costs incurred or cost estimates included in
RIV#4829-5700-6946 v1 19
negotiated prices would be allowable for the City under
Subpart E — Cost Principles of Title 2, Subtitle A, Part
200 (Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards).
c. The cost plus a percentage of cost and percentage of
construction cost methods of contracting shall not be
used.
8. Federal Awarding Agency or Pass-Through Entity Review.
a. The City shall make available, upon request of the
Federal awarding agency or pass-through entity,
technical specifications on proposed procurements where
the Federal awarding agency or pass-through entity
believes such review is needed to ensure that the item or
service specified is the one being proposed for purchase.
b. The City shall make available upon request, for the
Federal awarding agency or pass-through entity pre-
procurement review, procurement documents, such as
requests for proposal or invitations for bids, or
independent cost estimates when:
(1) The City's procurement procedures or
operation fails to comply with the procurement
standards of Title 2, Subtitle A, Part 200,
Subsection 200.324;
(2) The procurement is expected to exceed the
simplified acquisition threshold and is to be
awarded without competition or only one bid or
offer is received in response to a solicitation;
(3) The procurement, which is expected to exceed
the simplified acquisition threshold, specifies a
"brand name" product;
(4) The proposed contract is more than the
simplified acquisition threshold and is to be
awarded to other than the apparent low bidder
under a sealed bid procurement; or
(5) A proposed modification changes the scope of
a contract or increases the contract amount by
more than the simplified acquisition threshold.
c. The City may be exempted from the pre-procurement
review in subsection 8.b. above if the Federal awarding
agency or pass-through entity determines that its
procurement systems comply with the standards set forth
RIV#4829-5700-6946 V1 20
in Title 2, Subtitle A, Part 200, or the City self-certifies
compliance with such standards if self-certification is
permitted by the Federal awarding agency or pass-
through entity.
9. Bondinq Requirements. For public projects, the City shall
require bid guarantees, performance bonds, and payment
bonds consistent with Title 2, Part 200, Section 200.325 of the
Code of Federal Regulations.
10.Contract Provisions. The City's contracts shall contain the
provisions in Appendix II to Title 2, Subtitle A, Part 200 —
Contract Provisions for non-Federal Entity Contracts Under
Federal Awards, as applicable.
PART 4 — PUBLIC WORKS CONTRACTS
Section 3.12.200. Public works contracts .
w r f contracts for public works:
The following procedures shall govern thea ado p
A. Public works contracts of $250,000 or less. Public works contracts,
of two hundred fifty thousand dollars ($250,000.00) or less may be
let to contract by informal bidding procedures as set forth in part 2
of this chapter.
B. Public works contracts more than $250,000. The bidding of public
works contracts involving an expenditure of more than two hundred
fifty thousand dollars ($250,000.00) shall comply with the formal bid
procedures as set forth in part 2 of this chapter. Prior to bid
solicitations, the project plans and specifications for public works
projects in this category shall be approved by City Council.
C. Award of contract. The award of a contract for a public works
project involving the expenditure of more than two hundred fifty
thousand dollars ($250,000.00) shall be made by the City Council
to the lowest responsive and responsible bidder. The award of a
contract fora public works project involving the expenditure of two
hundred fifty thousand dollars ($250,000) or less may be made by
the City Manager to the lowest responsive and responsible bidder.
D. Public projects of one hundred thousand dollars ($100,000.00) or
less may be performed by the employees of the City by force
account, by negotiated contract or by purchase order.
RIV#4829-5700-6946 v1 21
PART 5 — DESIGN BUILD CONTRACT PROCUREMENT
Section 3.12.210. Design-build contract procurement procedures.
A. Purpose and intent. The purpose of this section is to provide
definitions and guidelines for the award, use and evaluation of
design-build contracts. The City may elect to utilize the design-build
procurement procedures in this part in lieu of any other applicable
procedures in this chapter.
B. Definitions. All defined terms in this section appear in italics. For
the purposes of this section, the following definitions apply..
1. Design-build means a public works contract procurement
method in which both the design and construction of a
project are procured from a single entity. Design-build also
includes projects where in addition to design and
construction, other functions may be added including, but not
limited to, construction management, inspection,
soils/materials testing financing, operating and/or
maintenance.
2. Design-build entity means a partnership, corporation, or
other legal entity able to provide appropriately licensed
contracting, architectural and engineering services as
needed.
3. Design-build entity member includes any person who
provides licensed contracting, architectural, or engineering
services on behalf of the design-build entity.
C. Design-build procurement. For purposes of this section only,
prior to procuring a design-build public works contract, the City
shall prepare a request for a proposal, bid information and
performance specifications setting forth the scope of the project
that may include, but is not limited to, size, type and desired
design character of the project and site, and performance
specifications. The performance specifications shall describe
the quality of construction materials, assemblies and other
information deemed necessary to adequately describe the City's
needs. The performance specifications shall be prepared by a
design professional designated by the City.
D. Notice of availability. The notice of availability shall set a date
for the opening of proposals and distinctly state the nature and
scope of the project to be constructed. At least ten days before
RIV#4829-5700-6946 V1 22
the date of opening the proposals, the notice of availability shall
be posted on the City's website and in at least one public place
in the city that has been designated for the posting of public
notices.
E. Any architectural firm, engineering firm, specialty consultant or
individual retained by the City to assist in the development of
criteria or preparation of the request for proposals shall not be
eligible to participate in the competition with any design-build
entity, nor take part in the ranking of proposals during the
selection committee process.
F. Selection committee. The City Manager shall appoint a
selection committee to review and to rank the proposals of
the design-build entities. The selection committee shall use
the evaluation criteria set forth in subsection (G) or (H) of
this section and in the request for proposal. The selection
committee shall be comprised of one representative from the
finance department, three employees from the department
responsible for the project, and one representative from a
department other than finance or the responsible
department.
G. Selection method for desiqn-build projects with an estimated
value up to $1,000,000. A design-build competition based on
performance, specifications and criteria set forth by the City
in the request for proposals.
1. Criteria used may include, but not be limited to:
a. An evaluation of overall quality, capability,
resource availability and financial stability of the
firm.
b. An evaluation of references provided with respect
to responsiveness, quality of work, timeliness and
overall performance.
c. An evaluation of the firm and/or project manager's
ability and experience in providing the service
offered, including: experience with local
government, scope of services covered, length of
time involved, level of client satisfaction,
cost/benefits relationship and relative success.
RIV#4829-5700-6946 v1 23
d. An evaluation of the experience, training and
qualifications of the personnel the firm will be
committing for assignments on the proposed
project.
e. Consideration of items such as proposed design
approach, initial and/or life-cycle costs, project
features, financing, quality, capacity, schedule,
and operational and functional performance of the
facility. However, any criteria and methods used to
evaluate proposals shall be limited to those
contained in the request for design-build
proposals.
f. The extent to which "the firm's proposal meets the
technical criteria and methodology requested.
g. Analysis of the cost relative to the firm's ability to
meet the specifications and criteria set forth in this
subsection and in the request for proposal.
h. Whether the cost as provided in the bid is
guaranteed firm, evidenced in writing and
signature by an authorized representative of the
firm.
2. Depending on the number of proposals received by the
City, the selection committee may develop a "short-list" of
the top ranked design-build proposals.
3. Depending on the number of proposals and/or complexity
of the project, the selection committee may require the
"short-listed" design-build entities to complete an
interview/presentation to the selection committee to
establish a final ranking.
4. The selection committee will then begin negotiations with
the top ranked design-build entity. The negotiations may
include but are not limited to project cost, scope, and
schedule. If negotiations are not successful, negotiations
will cease with the top ranked design-build entity, and
negotiations may begin with the second ranked design-
build entity.
5. Award shall be made by the City Council to the design-
build entity whose proposal is judged as one that best
RIV#4829-5700-6946 V1 24
serves the interests of the City by meeting the criteria set
forth in this subsection and in meeting the requirements
established in the request for proposal.
H. Selection method for design-build projects with an estimated value
over $1,000,000. The selection committee may choose to establish a
competitive prequalification process that specifies the manner and means
used to submit a statement of qualifications as well as recommends the
manner a shortlist will be established, and an award made.
1. Statements of qualifications evaluation criteria may include, but
are not limited to, submission of the following documents:
a. That the design-build entity is a licensed contractor, and
holds an architect and engineering license or
subcontracts that license.
b. That the design-build entity members have completed
projects of similar size, scope, building type, or
complexity, and that proposed key personnel have
sufficient experience and training to competently manage
and complete the project.
c. A proposed project management plan establishing that
the design-build entity has the experience, competence,
and capacity needed to effectively complete the project.
d. That the design-build entity has the capacity to obtain all
required payment and performance bonding, liability
insurance, and errors and omissions insurance, as well
as financial statements.
e. That the design-build entity will comply with all other
provisions of law applicable to the project.
f. That the design-build entity or its members have not had
a surety company finish work on any project within the
past five years.
g. That the design-build entity provides information for the
past five years for the following:
(1) Civil or criminal violations of the contractors'
state license law against any member of the
design-build entity member.
RIV#4829-5700-6946 V1 25
(2) Any conviction of any member of the design-
build entity of submitting a false or fraudulent claim
to a public agency.
(3) Civil or criminal violations of federal or state
law governing the payment of wages, benefits, or
personal income tax withholding, or of Federal
Insurance Contributions Act (FICA) withholding
requirements, state disability insurance
withholding, or unemployment insurance payment
requirements against any member of the design-
build entity.
(4) Civil or criminal violations of federal or state
law against any design-build entity member
governing equal opportunity employment,
contracting or subcontracting.
(5) Technical approach and team expertise.
(6) Design and construction experience.
h. The overall technical qualifications of the design build
entity and the individual expertise of key personnel
proposed for the project.
i. Previous design and construction experience on projects
of similar size and scope, as well as the experience of
their key personnel assigned to this project.
2. Those design-build entities recommended to be placed on the
shortlist, shall receive the request for proposals.
3. Award shall be made by the City Council to the lowest qualified
design-build entity.
4. If the selection committee chooses not to utilize the
prequalification process, the design-build entity shall be
selected and awarded pursuant to the process set forth in this
chapter.
I. Rejecting Bids. Right to reject any and all bids. Nothing in this
chapter requires the City to accept any bid and the City hereby reserves
the right to reject any and all bids.
J. Subcontractor listing. The City recognizes that the design-build
entity is charged with performing both design and construction. Because a
design-build contract may be awarded prior to the completion of the
design, it is often impractical for the design-build entity to list all
subcontractors at the time of the award.
RIV#4829-5700-6946 v1 26
1. It is the intent of the City to establish a clear process for the
selection and award of subcontracts entered into pursuant to
this section in a manner that affords protection for
subcontractors while enabling design-build projects to be
administered in an efficient fashion.
2. The following requirements apply to subcontractors, licensed
by the state, that are employed on design-build projects
undertaken pursuant to this section.
a. The design-build entity in each design-build proposal
shall specify the construction trades or types of
subcontractors that may be named as members of the
design-build entity at the time of the award. In
selecting the trades that may be identified as
members of the design-build entity, the design-build
entity shall identify the trades deemed essential in the
consideration of the project.
b. Subcontracts not listed at time of award shall be
performed or awarded by the design-build entity in
accordance with a bidding process set forth in the
respective request for proposals or bid invitation. The
design-build entity shall furnish to the City
documentation to verify that all subcontracts not listed
at the time of award were subsequently awarded in
accordance with the respective request for proposal
or bid invitation. All subcontractors that are listed at
the time of award, or subsequently in accordance with
the respective request for proposal or bid invitation
shall be afforded the protection of Section 4107 of the
California Public Contract Code.
PART 6 — DISPOSITION OF SURPLUS PROPERTY
Section 3.12.220. Surplus supplies and equipment.
All using departments shall submit to the purchasing agent, at such times and in
such forms as prescribed, reports showing supplies and equipment which are no
longer used or which have become obsolete and worn out.
Section 3.12.230. Surplus supplies — Trade-ins.
The purchasing agent shall have authority to exchange for or trade in any
supplies and equipment which cannot be used by any department or which have
become unsuitable for city use for any new supplies and equipment.
RIV#4829-5700-6946 V1 27
Section 3.12.240. Surplus supplies — Sale.
The purchasing agent shall have authority, subject to approval of the City
Manager or designee, to dispose of surplus supplies or equipment by auction or
by sale or otherwise after receiving bids or proposals which, in his or her
judgment, provide the maximum return to the City.
RIV#4829-5700-6946 V1 28