HomeMy WebLinkAboutORD-12-99 Repeal and Add new Ch 3.08 Centalized Purchasing and Selection of ContractorsORDINANCE NO. 12-
99
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ORANGE REPEALING CHAPTER 3.08 OF
THE ORANGE MUNICIPAL CODE AND ADDING A
NEW CHAPTER 3.08 TO THE ORANGE MUNICIPAL
CODE RELATING TO THE CITY'S CENTRALIZED
PURCHASING OF MATERIALS, SUPPLIES AND
EQUIPMENT, PROFESSIONAL SERVICES, AND THE
SELECTION OF CONTRACTORS TO PERFORM
PUBLIC WORKS PROJECTS.
RECITALS:
WHEREAS, the City Council of the City of Orange ("City Council") desires to
centralize its purchasing procedures for materials, supplies and equipment,
professional services, and the selection of contractors to perform public works projects;
and
WHEREAS, the City Council has heretofore elected to subject the City of
Orange to the uniform construction cost accounting procedures set forth in Article 2
commencing with Section 22010) of Chapter 2 of Part 3 of Division 2 of the
California Public Contract Code; and
WHEREAS, the City Council desires to provide for the development of cost
accounting standards and bidding procedures on public works projects performed or
contracted by the City of Orange.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
ORANGE DOES ORDAIN AS FOLLOWS:
SECTION I:
Chapter 3.08 of the City of Orange Municipal Code is hereby repealed in its
entirety and a new Chapter 3.08 of the City of Orange Municipal Code is hereby added
to read as follows:
w ~.____ - ._..__._ __ ____ ..._...._ _._____~_._______.__~.__ __.__ _._.___,___-.______. --- --..-...--.--.----.. u._ .---.---~-.-.--+ -------+--~-..--.-------- -
CHAPTER 3.08 PURCHASING SYSTEM Sections:3.08.010 Purpose 3.08.020 General - Definitions 3.08.030 General -
Establishment of Centralized
Purchasing Division
3.
08.
040 General- General Purchase
Policy 3.08.050 General- Purchasing
Officer Duties 3.08.060 General- Charge for Plans and
Specifications 3.08.070 General - Requisitions 3.
08.080 General - Purchase Orders 3.08.
090 General- Conflict of Interest and Unlawful Activities 3.
08.095 General- Approval and Administration
of Contracts Not Covered by this Chapter
or the Code.3.08.100 Materials, Supplies and Equipment -
Encumbrance of Funds 3.08.110 Materials, Supplies and Equipment -
Inspection and Testing 3.08.120 Materials,
Supplies and Equipment - General Bid Limits 3.08.130 Materials, Supplies
and Equipment - Purchase 3.08.140 Materials, Supplies and Equipment - Informal
Bids 3.08.150 Materials, Supplies and Equipment - Minimum Number of
Informal Bids3.08.160 Materials, Supplies and Equipment -
Notice Inviting Informal Bids 3.08.170 Materials, Supplies and
Equipment - Record of Informal Bids 3.08.180 Materials, Supplies and Equipment - Formal
Bid Procedure 3.08.190 Materials, Supplies and Equipment - Notice Inviting Formal
Bids 3.08.200 Materials, Supplies and Equipment - Publication of Notice Inviting
Formal Bids 3.08.210 Materials, Supplies and Equipment - Bidder's
Security 3.08.220 Materials, Supplies and Equipment - Bond Requirements 3.08.
230 Materials, Supplies and Equipment - Formal Bid Opening Procedure 3.08.
240 Materials, Supplies
and Equipment - Rejection of Formal Bids 3.08.250 Materials, Supplies
and Equipment - Award of Formal Bids;Local Bidder Preference 3.
08.260 Materials, Supplies and Equipment - Determination of the Lowest Responsible Bidder
3.08.270 Materials, Supplies and Equipment - Tie Formal Bids 3.08.
280 Materials, Supplies and Equipment - No Formal Bids 3.08.290 Materials,
Supplies and Equipment -
Exceptions to Competitive Bidding Requirements 2 Ord.No.112-99
i""'"
3.08.300 Materials, Supplies and Equipment - Trade-Ins or Exchanges
3.08.310 Materials, Supplies and Equipment - Surplus Disposition 3.
08.320Materials, Supplies and Equipment - Approvals 3.08.
400 Professional Services - Contracting 3.08.410
Professional Services - General Bid Limits 3.08.420 Professional
Services - Procedures3.08.430 Professional Services -
Approvals 3.08.440 Professional Services - General
Regulations RegardingSelection 3.08.450 Professional Services - Selection of
Private Architects, Engineers, Land Surveyors, or Environmental Services Firms.3.08.500
Public Projects - General Bid Limits
3.08.510 Public Projects - Contracting 3.08.520
Public Projects - Informal Bidding Procedures 3.08.
530 Public Projects - Formal Bid Procedure 3.08.540
Public Projects - Formal Bid Opening Procedure 3.08.550
Public Projects - Rejection of Formal Bids 3.08.560 Public
Projects - Award of Formal Bid Contracts 3.08.570 Public
Projects - Tie Formal Bids 3.08.580 Public Projects - No Formal
Bids 3.08.590 Public Projects - Emergencies 3.08.
010 Puq>ose. In order to establish efficient procedures
for the purchase of materials, supplies and
equipment, professional services, and the selection of contractors to perform public works projects, at the
lowest possible cost commensurate with quality needs, to exercise positive
financial control over purchasing, to clearly define authority for the purchasing function,
and to assure the quality of purchasing, a purchasing system is adopted.
3.08.020 General - Definitions. For the purpose of carrying out the intent of
this Chapter, the following
words, phrases and terms shall have the meaning ascribed to them in this Section.EMERGENCY
means (1) the existence or threatened existence of conditions of i""'" extreme peril
to the safety of persons
and property within the City caused by fire,flood, storm, epidemic,
riot, earthquake, drought, energy shortage, or other causes, the existence or threatened existence of which has
been proclaimed by the City Councilor the Director of Emergency Services; or (
2) the existence of an immediate need to prepare for national or local
defense; or (3) the existence of a breakdown in machinery,equipment or essential governmental
services which requires the immediate purchase of materials, supplies or equipment to protect the public
health, safety or general welfare of the residents of the
City; or (4) where an essential governmental operation 3 Ord.No.12-99
affecting the public health, safety or general welfare could be greatly hampered or
disrupted by following the standard purchasing procedures.
FACILITY means any plant, building, structure, ground facility, utility system
subject to the limitation found in paragraph 3 of the definition for PUBLIC
PROJECTS in this Section 3.08.020), real property, streets and highways, or other
public work improvement.
LOCAL
BIDDER means a firm, individual, partnership, association,corporation
or other legal entity who regularly maintains a place of business and transacts
business in, or maintains an inventory of materials, supplies or equipment for sale
in, and is licensed by, or pays business taxes to the City.MAINTENANCE
WORK means work that includes all of the following:1.
Routine, recurring, and usual work for the preservation or protection
of any publicly owned or publicly operated facility for its intended purposes.
2.
Minor repainting.3.
Resurfacing of streets and highways at less than one inch.4.
Landscape maintenance, including mowing, watering, trimming,pruning,
planting, replacement of plants, and servicing of irrigation and sprinkler systems.
5.
Work performed to keep, operate, and maintain publicly owned water,
power, or waste disposal systems, including, but not limited to, dams,reservoirs,
power plants, and electrical transmission lines of 230,000 volts and higher.PROFESSIONAL
SERVICES means, but is not limited to, any type of professional
services that may be lawfully rendered, but does not include public projects.
PUBLIC
PROJECT,
for purposes of this Chapter, means any of the following:1. Construction,
reconstruction, erection, alteration, renovation,improvement, demolition,
and repair work involving any publicly owned, leased or operated facility.
4 Ord.
No.
12-99
2.Painting or repainting of any publicly owned, leased or operated
facility.
3.
In the case of a publicly owned utility system, "public project"shall
include only the construction, erection, improvement, or repair of dams,reservoirs,
power plants, and electrical transmission lines of 230,000 volts and higher.PUBLIC
PROJECT does not include maintenance work.PURCHASE
ORDER means a written authorization by the issuing party for the recipient
to provide labor, materials or services, for which the issuing party agrees to pay.
PURCHASING
OFFICER means the person employed by the City under the direction
and control of the Finance Director of the City who shall be responsible for the
general supervision of the Purchasing Division and the efficient administration of all
the affairs of the City under this Chapter or which are otherwise under his or her control.
3.
08.030 General - Establishment of Centralized Purchasing Division. The Purchasing Division
of the Finance Department is established for the purpose of providing centralized
purchasing for the various departments of the City of supplies,materials and
equipment, professional services, and the selection of contractors to perform public
projects at the lowest possible cost commensurate with quality needs, to exercise positive
financial control over purchases, to clearly define authority for the purchasing function
and to assure quality of purchases. Where not otherwise provided by this Chapter,
the City Manager shall establish procedures for bid openings and for the preparation and
execution of bids, purchase orders and contracts.3.08.
040 General - General Purchase Policy. Purchases under this Chapter shall be in accordance
with appropriations approved in the City Budget. At the same time, the City Council recognizes
that in certain unanticipated cases, an emergency may dictate that a certain
latitude be permitted in the implementation of this purchasing system.3.08.050
General - Purchasin~ Officer Duties. There is created the position of Purchasing Officer. The Director of
Finance shall direct the activities of the Purchasing Division. The Purchasing Officer shall
have authority to:1. Purchase, hire or contract
for materials, supplies, equipment and professional services required by any
City department or using agency in accordance with purchasing procedures prescribed by this
Chapter, such administrative regulations as the Purchasing Officer shall adopt for
the internal management and operation of the 5 Ord.No.12-99
n _ ~ _ _ _ __ ____ __ __ ___ ~. ______ ______. _.. --___- - ---- -.-- _____'~'__
O__ 0 ----- - ---. ---~_..-0_--'. ~___.~__ --_----0- ----- .-. ---- --~------- -_.~. -. -Purchasing Division,
and such otherrulesand regulations as shall be prescribed by the City Council ortheCity Manager;2.
Act to procure for the City the needed quality in materials, supplies and equipment
at least expense to the City;
3. To endeavor to obtain as full and open competition as possible on all
purchases;4. Prepare and recommend to the
City
Council rules governing the purchase of materials, supplies and equipment for the City;5.
Prepare
and recommend revisions and amendments to the purchasing rules;6. Keep informed of
current developments in the field of purchasing,
prices,market conditions and new products;7. Prescribe and maintain such
forms as are reasonably necessary for the operation of this Chapter and
other rules and regulations; and
8. Carry out the duties and responsibilities set forth under the formal
bid procedure for public projects in Sections 3.08.530
through 3.08.590 of this Chapter.3.08.060 General - Charge for
Plans and Specifications. The City Council may, by resolution, establish a schedule of fees to be
charged for the provision of plans and specifications authorized by this Chapter.3.
08.070 General - Requisitions. City departments shall submit requests for materials, supplies, equipment, public projects, and
professional services to the Purchasing Officer
by the automated requisition form within the financial management information system. All
requisitions shall be entered and approved by authorized City personnel.
3.08.080 General- Purchase Orders. The procurement of all materials,
supplies or --..equipment, public projects, and professional services of Five Hundred Dollars ($
500)
or more shall be made only by written purchase orders. Except as otherwise provided
herein, no purchase order shall be issued unless the prior approval of
the Purchasing Office:r, or his or her designated representative, has first been
obtained. Supplies,equipment, public projects, and professional services of less than Five Hundred Dollars
500) shall be processed through a payment authorization and do not require a
written purchase order.6 Ord.No.12-99
3.
08.090 General - Conflict of Interest and Unlawful Activities. Any evaluation or selection
practice under this Chapter that would result in unlawful activity including,but not
limited to, any rebate, kickback, or unlawful consideration, as well as any award of a
contract where a public official has used his or her official position to influence a governmental decision
in which he or she knows or has reason to know that he or she has a financial
interest in any person or entity who seeks such a contract or in the outcome of the:: selection
process in any way, is expressly prohibited. Employees of the City who are related to
persons or have interests in business entities seeking to contract under this Chapter, shall
not participate in any aspect of the contract review or selection process.3.08.
095 General- Ap..proval andAdministration of Contracts Not Covered by this Chapter or
the Code. For any contracts, agreements, instruments, and conveyances not otherwise covered
by this Chapter or any other provision of this code, the City Council may by
resolution prescribe procedures, rules and regulations governing the approval and administration thereof.
Unless another officer is authorized to do so under this Chapter or any other
provision of this code or by resolution of the City Council, all contracts and conveyances shall
have the prior approval of the City Council and shall be executed by the Mayor
and shall be approved as to form by the City Attorney.3.08.
100 Materials, Supplies and Equipment - Encumbrance of Funds. Except in cases of emergency,
the Purchasing Officer shall not issue any purchase order or payment authorization for materials,
supplies or equipment unless there exists an unencumbered appropriation in the
fund account against which said purchase is to be charged.3.08.110
Materials, Supplies and Equipment - Inspection and Testing. The Purchasing Officer shall, in
his or her discretion, inspect materials, supplies and/or equipment delivered to determine
their conformance with the specifications set forth in the purchase order. The
Purchasing Officer shall have authority to require chemical and physical tests of samples
submitted with bids and samples of deliveries which are necessary to determine their
quality and conformance with specifications.3.08.120 Materials,
Sup..plies and Equipment - GeneralBid Limits. The purchasing of materials, supplies and equipment
shall be entered into pursuant to either formal or informal bid procedures as hereinafter
prescribed. All solicitation of bids shall be unrestricted and competitive except as otherwise
provided.1. The purchase of materials, supplies
and equipment of estimated value of less than Thirty Thousand Dollars ($30,
000) shall be made pursuant to the informal bid procedure prescribed in Sections 3.08.
140 through 3.08.170 below.7 Ord.No.12-99
r-
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2.
The purchase of materials, supplies and equipment ofThirty Thousand Dollars ($30,000) or moreshall be madepursuant tothe formal
bid procedure prescribed in Sections 3.08.180 through 3.08.
280, and shall require the approval of the City Council.3.08.130 Materials, Sup,
plies and Equipment - Purchase. Except as otherwise provided in Section 3.08.290 below, the purchase of materials,
supplies and equipment shall be:: made in accordance with the formal or informal
bid procedure prescribed in Sections 3.08.140 through 3.08.280 below.3.
08.140 Materials, Supplies and Equipment - Informal Bids. The purchase of materials, supplies and
equipment with an estimated value of less than Thirty
Thousand Dollars ($30,000) may be made by the Purchasing Officer in accordance
with the informal bid procedure prescribed in Sections 3.08.150 through 3.
08.170 ofthis Chapter.3.08.150 Materials, Sup,plies and Equipment - Minimum Number
of Informal Unless otherwise approved by the Purchasing Officer, the purchase of materials,supplies or
equipment shall be based onat least three (3) independent informal bids and
shall be awarded to the lowest responsible bidder after consideration of
the factors set forth in Section 3.08.260 of this Chapter. Where three (3)
firms cannot be found which could provide the required materials, supplies or equipment or
where it is not practicable to obtain bids from at least three (3) firms, the Purchasing Officer
may then select from the available and qualified firms. Selections based on less than
three (3) firms must be documented with the names and addresses of firms contacted by the
Purchasing Officer or the City department primarily responsible for the purchase of materials, supplies and
equipment and the reasons why the provisions of this section could not be
met. This documentation shall be maintained in the Purchasing Officer's file.3.
08.160 Materials, Sup.plies and Eq.uipment - Notice Inviting Informal Bids. The Purchasing Officer
shall solicit and may receive informal bids for the purchase
of materials, supplies or equipmentby telephone, telecopier, internet or written request.3.08.170
Materials, Sup.plies and Equipment - Record of Informal Bids. The Purchasing Officer shall
maintain a record of all informal bids received in response to
a solicitation for bids formaterials, supplies or equipment for a period of two
years and for ,......."that pe::riod the record shall be open to public inspection.3.
08.180 Materials, Sl\PPlies and Eq.uipment - Formal Bid Procedure. Except as otherwise provided in
Section 3.08.290 below, the purchase of materials, supplies or
equipment of an estimated valueof Thirty ThousandDollars ($30,000) or more shall be
awarded to the lowest responsible bidder in accordance with the formal bid procedure prescribed
in Sections 3.08.190 through 3.08.280 below.8 Ord.No. I 2-
99
3.08.190 Materials~ Suppliesand Equipment - NoticeInviting Formal Bids.Notices invitingformal bids shall state the time and
place
for the receiving and opening of sealed bids, include a description and
specifications of the materials, supplies or equipment to be hired or purchased, the location wherebiddocumentsandspecificationsmaybesecured, and the cost (if any) of
the documents and specifications.3.08.200 Materials, Supplies and Equipment - Publication of
Notice Inviting Formal Bids. Notices inviting formal bids for the purchase of materials,
supplies or equipment shall be published in a newspaper of general circulation, printed and published in the City at least fourteen (14) calendar days before
the date of opening the bids; or, if there is no newspaper ofgeneralcirculationwhichiscirculatedwithintheCity,publication shall be by posting the notice in at least
three (3) places within the City as have been designated by ordinance or
regulation of the City as places for the posting of its notices.3.08.210 Materials, Supplies
and Eq.uipment - Bidder's Security. When deemed necessary by the Purchasing Officer, bids shall be accompanied
by
one of the following forms of bidder's security in an amount equal to
not less than ten percent (10%) of the amount bid:1. Cash;2. Cashier's check made payable to the City;3. Certified check made payable to the City; or 4. A
bidder's
bond executed
by an admitted surety insurer made payable to the
City and in a form approved by the City
Attorney.If bidder's security is required by the notice inviting bids, no bid shall
be considered unless one of the forms of security described
in this subsection accompanies the bid. Bidders shall be entitled to the return of their
bid security; provided, however that a successful bidder shall forfeit its bid securityuponitsrefusal, failure or neglect to execute the contract within ten (10) days after
the notice of award of contract has been mailed. The City Council may, on refusal, failure
or neglect 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 responsible 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. The surplus,
if any, shall be returned to the lowest bidder.9 Ord.No.12-99
3.08.220 Materials, Supplies and
EQuwment - Bond Requirements. Provisions may be included in any notice inviting bids and in
any contract documents forthe furnishing offaithful
performance and labor and materials bonds, other security, and/or the
withholding of retentions earned to ensure performance under a contract in an amount and type
as determined proper by the Purchasing Officer.3.08.230 Materials, Supplies and
EQJlwment - Formal Bid Openini Procedure.Sealed bids shall be submitted to the City Clerk
with the bid number written on the envelope where
they
will be date and time stamped. All bids must be received and
date and time stamped by the City Clerk's clock on or before the date and
time due; late bids will be returned unopened. The Purchasing Officer, or his or her designee,
shall publicly open all bids at the time and place stated in the public notice. A tabulation of all
bids shall be: available for public inspection in the Purchasing Division during regular business
hours :fiJr a period of one year after bid opening.3.08.240 Materials, SllPplies and Equwment - R~
ection of Formal Bids. At its discretion, the City Council may reject all
bids presented for the purchase of materials,supplies or equipment
and may cause re-advertising for bids pursuant to the procedure hereinabove prescribed.3.08.
250 Materials, Sup.plies and Equipment - Award of Formal Bids; Local Bidder Preference. If
a contract is awarded, it shall be awarded to the lowest responsible bidder.
The determination
of the "lowest responsible bidder" shall be at the discretion of the City Council
pursuant to the findings and recommendations presented by the Purchasing Officer. Local bidders shall be
granted a sales tax preference of 1 % of the amount of that portion of
the bid amount which is subject to sales tax 3.08.260
Materials, Supplies and Equwment - Determination of the Lowest Responsible Bidder. In determining the lowest responsible
bidder, the following shall be considered in addition to price:1. Quality of the
materials, supplies and/or equipment offered.2. The ability, capacity and skill
of the bidder to perform the contract or --provide the materials, supplies
or equipment.3. Whether the
bidder can perform the contract or provide the materials,supplies
or equipment promptly or within the time specified, without delay or interference.10 Ord.No.
12-99
n_.___.__ ____..___~ __~____ ______ ___4. The sufficiency ofthebidder'sfinancialresources toperformthe contract or providethematerials, suppliesor equipment.
5. The ability of the bidder to provide future maintenance and services if
essential to adequate performance.6. The compatibility
of
the materials, supplies and/or equipment with the City's existing inventory of
same.7. The quality
and timeliness of the bidder's performance on previous orders or contracts
for the City.8. Litigation by
the bidder on previous orders or contracts with the City.9. The ability
of the bidder to provide
future maintenance and service where such maintenance and service is essential.10. The
character, integrity, reputation, judgment, experience and efficiency of the bidder.3.08.270
Materials, SUJlPlies and Equipment - Tie Formal
Bids. If two or more formal bids received for the
purchase of
materials, supplies or equipment 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, at its discretion,accept the one it chooses or
accept the lowest responsible bid made by and after negotiation with the tie bidders.3.
08.280 Materials, Supplies and Equipment - No Formal Bids. When no formal bids or responsible
bids are received for the
purchase of materials, supplies or equipment,the Purchasing Officer is authorized to negotiate for
written proposals, and his or her recommendation shall be presented to the City ManagerandthereaftertotheCityCouncilandtheaward, if any, shall be made
by the City Council in accordance with applicable provisions prescribed herein.3.08.290
Materials, Supplies and Equipment - Exceptions to Com.petitive Bidding Requirements. Notwithstanding any provision of this Chapter
to the contrary,
the competitive bidding procedures and requirements for the purchase of materials, suppliesor equipmentmaybedispensedwithandthePurchasingOfficershallhavethe
authority except as otherwise provided hereinbelow) to hire or purchase whenever:
11 Ord.No.12-99
1.. Any agreement involvingthe acquisition of materials, supplies or equipment is to be enteredinto with anothergovernmentalentitythrough cooperative purchasing provisions.2.The purchase amount is less than $10,000.
3. The using department head and the Purchasing Officer, with
the approval of the City Manager, certify in writing that the materials,
supplies or
equipment
is offered by only one vendor (sole source), or
when only one vendor is able to supply a commodity within the time
frame and/or under the terms and conditions which reasonably meet the needs of the
using City department for purchases in excess of Ten Thousand Dollars 10,000) in value but
less than Thirty Thousand Dollars ($30,000) in value.4. The using department head and
the Purchasing Officer, with the approval of the City Manager, certify in writing to
the City Council that the materials, supplies or equipment is offered by only one
vendor (sole source), or when only one vendor is able to supply a
commodity within the time frame and/or under the terms and conditions which reasonably meet
the needs of the using City department, for purchases of Thirty Thousand Dollars ($30,000) or more
and the City Council approves such purchase.s. An emergency exists, in which event the
head of any department may, with the approval of the Purchasing Officer, hire or
purchase directly any materials, supplies or equipment, as needed; provided that such
purchases shall not exceed the estimated value of Ten Thousand Dollars ($10,000). The
purchase of materials, supplies or equipment in excess of Ten Thousand Dollars ($10,
000) must be approved by the Purchasing Officer and the City Manager. All
emergency purchases which would otherwise require formal bidding procedures shall be submitted to
the City Council by the City Manager at the next regular Council meeting for
ratification.3.08.300 Materials, Supplies and Equipment - Trade-Ins or
Exchanges. The Purchasing Officer shall have authority to exchange for or trade-in on
new materials,supplic~s and equipment all materials, supplies and
equipment whichcannot be used by any department or which have become
unsuitable for City use.3.08.310 Materials, Sup.plies and Equipment - Surplus
Dis.position. The Purchasing Officer shall have authority, subject to approval of the City
Manager, to dispose of surplus materials, supplies or equipment by
auction
or by sale or otherwiseafter receiving bids or proposals which, in his
or her judgment, provide the maximum return to the City.12 Ord.No.
I 2-99
3.
08.320Materials, SllPplies and Equipment - Approvals. All purchases of materials, supplies
and equipment with a value of less than Thirty Thousand Dollars 30,000)
shall have the prior approval of, and be executed by, the Finance Director and/or
the Purchasing Officer. All purchases of materials, supplies and equipment with a value of
Thirty Thousand Dollars ($30,000) or more shall require the approval of the City Council.3.
08.
400 ProfessionalServices - Contracting. Contracting for professional services will be
done in accordance with the procedures prescribed in Sections 3.08.410 through 3.08.
440 below.3.08.410
Professional Services - General Bid Limits.1. Professional services of
Five Hundred Dollars ($500) but less than Two Thousand Dollars ($2,000)
require a purchase order with the approval of the initiating department head.2. Professional
services of
Two Thousand Dollars ($2,000) but less than Thirty Thousand Dollars ($30,
000) require approval of the initiating department head and the City Manager.3.
Professional services in
excess of Thirty Thousand Dollars ($30,000)require the approval of
the City Council.3.08.420 Professional
Services - Procedures. Due to the nature of professional services, the competitive bidding procedures
and requirements of this Chapter shall not be required for the retention of
such services; provided, however, that the City department primarily responsible for the project
for which professional services are required shall request a formal or informal
written proposal from not less than three (3) available and qualified consultants, whenever practicable. Where
three (3) consultants cannot be found which could provide the required
service or where it is not practicable to obtain proposals from at least three (3)
available and qualified consultants, the initiating department head may then select from the
available and qualified applicant consultants. Selections based on less than three (3)
firms must be documented with the names and addresses of consultants contacted by the City department
primarily responsible for the project and the reasons why the provisions of this
section could not be met. This documentation shall be maintained in the contract file of
the City department primarily responsible for the project. The proposals received are to
be evaluated on the basis of demonstrated competence and on the professional qualifications
necessary for the satisfactory performance of the services required and
at fair and reasonable prices to the City. The requirement for the obtainment of formal
or informal written proposals from not less than 13 Ord.No.12-99
r._._..._"....____.~ .--- --- -....-.-.---.'---.-.-.~-....------ ----three (
3) consultantsand the selectionprocedures set
forthinthisChapterforfor the furnishingof professional services shall
not apply to contracts for the services of legal counsel. The City Council shall, by
resolution, prescribe procedures, rules and regulations governing the solicitation, selection and award of proposals
or bids for the furnishing of legal services.3.08.430
Professional Services - Approvals. All contracts for professional services with a value of less
than Two Thousand Dollars ($
2,
000) shallbe approved by the initiating department head and executed
by purchase order. All contracts for professional services with a value of Two Thousand Dollars ($2,
000) but less than Thirty Thousand Dollars ($30,000) shall have the
prior approval of, and be executed by, the City Manager and shall be approved as
to form by the City Attorney. All contracts for professional services with a value of Thirty
Thousand Dollars ($30,000) or more shall require the approval of the City Council and
shall be executed by the Mayor and approved as to form by the City
Attorney.3.08.440 Professional Services - General Regulations Regarding Selection. The City Council shall, by
resolution, prescribe procedures, rules and regulations governing the
solicitation, selection and award of proposals or bids for the furnishing
of professional services. Such procedures, rules and regulations shall have as
one purpose the obtaining of contractual professional services of the highest quality together
with cost effectiveness.50 Profes5ional S!:fVi~es - Se]~cti!lll of
Priyalll Archite~ts, EnlliJ;leers, Land Survey nvironmental, or Construction PrQject Management Services
Firms.
A. For allcontracts for professional services ofprivate architectural, landscape architectural,engineering, environmental, land surveying,
or construction project management firms (as those terms are defined
in Section 4525 of the Government Code of the State
of California, as the same may be amended from time
to time) with an estimated value of less than Thirty Thousand Dollars ($30,000), the
City department primarily responsible for the: project for which such professional services are required shall select
firms based on their ability to perform the specific functions outlined in
the solicitation for proposals or bids, including, but not limited to, such factors as:
1. Overall professional experience, reliability, and continuity of the firm as related to the
tasks described in the solicitation for proposals or bids.2.
Professional
experience of the firm in executing contracts of a similar nature:.
14 Qrd.No. 1 2-99
3. Adequacy of personnel numbers within specific disciplines required to
complete the work required by the solicitation for proposals or bids.
4.
Experience and training of key personnel as related to the work described in the
solicitation for proposals or bids.5.
Adequacy of number ofprincipal(s) which are intended to be assigned to the contract.
6.
Knowledge of applicable regulations and technology associated with the contract.
7.
Quality and timeliness of recently completed or nearly completed projects which
were similar to the work described in the solicitation for proposals or bids.8.
Specialized qualifications for the services to be performed.Any
individual or firm proposing to provide construction project management services
shall provide evidence that the individual or firm and its personnel carrying out
onsite responsibilities have expertise and experience in construction project design review
and evaluation, construction mobilization and supervision, bid evaluation,project
scheduling, cost-benefit analysis, claims review and negotiation, and general
management and administration of a construction project.
Such factors shall be weighed by the City department primarily responsible for
the project according to the nature of the contract, the needs of the City and complexity
and special requirements of the specific contract for which the services will be
provided.
B. The City department primarily responsible for the project shall request a
detailed fee proposal from the best qualified firm and shall attempt to negotiate a
contract with the best qualified firm. Should the City department primarily responsible
for the project be unable to negotiate a satisfactory contract with the firm considered to
be the most qualified at fair and reasonable compensation, negotiations with that firm
shall be terminated. The City department primarily responsible for the project shall
then undertake negotiations with the second most qualified firm. Failing accord,
negotiations shall be terminated. The City department primarily responsible for the
prqject shall then undertake negotiations with the third most qualified firm. Failing
accord, negotiations shall be terminated. Should the City department primarily
responsible for the project be unable to negotiate a satisfactory contract with any of the
sele:cted firms, the City department primarily responsible for the project may select
15 Ord.No. I 2-
R_~._'___ ---additional firms in
the manner prescribed
above
and continue
the negotiation procedure until an agreement is reached.This Section shall
not apply for contracts for professional
services of private architectural, landscape architectural, engineering, environmental, land surveying, or -.construction
project management firms with an estimated value of Thirty
Thousand Dollars ($30,000) or more, which contracts must be approved
by the City Council.Contracting for said professional services will be done in accordance
with the procedures prescribed in Sections 3.08.420 and 3.08.440
above; provided that, in additionto an evaluation on the basis of fair and reasonable prices to
the City for the services to be rendered, the factors set forth in Subdivision A of this
Section 3.08.450 may be used to evaluatc:~ the competence and professionalqualifications of any individual or
firm proposing to provide said services.1.08.500 Public Projects -
General Bid Limits. A. Public
projects of Twenty-five Thousand Dollars ($25,000) or less may be performed by
the employees of the City by force account.B. Public projects of Twenty-five Thousand Dollars ($
25,000)
or less may be let to contract by the informal bid procedures prescribed
in Sections 3.08.150 through 3.08.170 of this Chapter forthe purchase
of materials, supplies or equipment.C. Public projects of Seventy-five Thousand Dollars ($75,
000) or less may be let to contract by informal procedures as set
forth in Section 3.08.520.D. Public projects of more than Seventy-five
Thousand Dollars ($75,000)shall, except as otherwise provided in this
Chapter, be let to contract by formal bidding procedures as set forth in Sections 3.
08.530 through 3.08.580 below.E. The City Council may utilize the
bidding procedures set forth in this Chapter when contracting for "maintenance work" or
when contracting for any other work which does not fall within the
definition of "public project".3.08.510 Public Projects - Contracting. Except
as otherwise provided hereinbelow, the contracting for public projects shall be
entered into pursuant to either formal or informal bid procedures as hereinafter prescribed.
3.08.520 Public Projects - Informal Bidding Procedures.
The
following shall govern the selection of contractors to perform public projects described
in subdivision B of Section 3.08.500:16 Ord.No.12-99
1.
The Department of Public Works shall maintain a list of qualified contractors,identified
according to categories of work. The contractors list shall be developed and maintained
in accordance with criteria promulgated from time to time by the California Uniform
Construction Cost Accounting Commission ("Commission").2.
All contractors on the list for the category of work being bid or all construction trade
journals specified by the Commission for the County of Orange, or both all contractors
on the list for the category of work being bid and all construction trade journals
specified by the Commission, shall be mailed a notice inviting informal bids unless
the product or service is proprietary. Additional contractors and/or construction trade
journals may be notified at the discretion of the Public Works Director; provided,however, (
a) if there is no list of qualified contractors maintained by the City for the particular
category of work to be performed, the notice inviting bids shall be sent only to the
construction trade journals specified by the Commission; and/or (b) if the product or service
is proprietary in nature such that it can be obtained only from a certain contractor or
contractors, the notice inviting informal bids may be sent exclusively to such contractor
or contractors.3.
All mailings of notices to contractors and construction trade journals pursuant to
subparagraph 2 of this Section 3.08.520 shall be completed not less than ten (10)calendar
days before bids are due.4.
The notice inviting informal bids shall describe the project in general terms,how
to obtain more detailed information about the project, and state the time and place for
submission of bids.5.
The City Manager shall have the authority to award informal contracts pursuant to
this Section 3.08.520 with a value less than Thirty Thousand Dollars ($30,000)pursuant
to the findings and recommendations presented by the Public Works Director.Such
contracts shall have the prior approval of, and be executed by, the City Manager and approved
as to form by the City Attorney. All contracts with a value of Thirty Thousand DoHars ($
30,000) or more to be awarded pursuant to this Section 3.08.520 shall require the
approval of the City Council and shall be executed by the Mayor and approved as to form
by the City Attorney.6. If
all bids received are in excess of Seventy-five Thousand Dollars ($75,000),the
City Council may by passage of a resolution by a four-fifths vote, award the contract,
at Eighty Thousand Dollars ($80,000), or less, to the lowest responsible bidder, if it
determines the cost estimate of the City was reasonable. Such contracts shall be executed
by the Mayor and approved as to form by the City Attorney.
17 Ord.No.12-
99
3.08.530 PublicPrQjects - FormalBid Procedure. Except as otherwise provided herein, public projects exceeding the amount specified
in subdivision
C of Section 3.08.500 shall be awarded to the lowest responsible
bidder pursuant to the formal bid procedure as hereinafter prescribed.1. The
City Council shall approve plans and specifications for all public projects exceeding the amount specified in
subdivision C of Section
3.08.500.2. The Public Worl,s Director shall prepare and deliver
to the Purchasing Officer for advertisement a notice inviting formal bids, stating
the time and place for the receiving and opening of sealed bids and distinctly
describing the public project. The Purchasing Officer shall publish each and every notice inviting
bids in accordance with the following requirements:a. The notice shall be published
at least fourteen (14) calendar days before the date of opening the bids
in a newspaper
of general circulation, printed and published in the City; or, if there
is no newspaper of general circulation which is circulated within the City, in a newspaper
of general circulation which is circulated within the Ci~y, or if there is no
newspaper which is circulated within the City, publication shall be by posting the notice
in at least three places within the City as have been designated by ordinance or regulation of
the City as places for the posting of its notices;b. The notice inviting formal bids shall also
be mailed to all construction trade journals specified by the Commission for the County
of Orange at least thirty (30) calendar days prior to the date
of opening the bids; and c. In addition to notice required by this Section
3.08.530, the Purchasing Officer may give such other notice as he
or she deems proper.3. All bids shall be presented under sealed cover
and accompanied by one of the following forms ofbidder's security:a. Cash;
b. Cashier's check made payable to the City;c. A certified check made payable
to the City; or d.
A bidder'
s bond executed by an admitted surety msurer, made
payable to the City.18 Ord.No.12-99
I"""
4. The security shall be in an amount equal to at least ten percent (10%) of the
amount bid. A bid shall not be considered unless one of the forms of bidder's security
is enclosed with it. If the bidder to whom the contract is awarded shall for ten (10)
days after the award fail or neglect to enter into the contract and file the required
securities, the City shall deposit in its treasury the bid security if the security is in the
form of cash or its equivalent.
5. Provisions shall be included in any invitation for bid and in any contract
documents for the furnishing of securities and/or the withholding of retentions earned to
ensure performance under a contract in an amount and type as determined proper by the
Public Worlcs Director. Provisions shall be included in any invitation for bid and in any
contract documents for insurance coverage in an amount, type and term as may be
specified by the City.
6. The contractor shall not pay less than the general prevailing rates of wages, as
determined by the Director of the Department of Industrial Relations, to all workers
employed on a public project.
3.08.540 Public PrQjects - Formal Bid Opening Procedure. Sealed bids shall be submitted
to the City Clerk with the bid number written on the envelope where they willbedateandtimestamped. All bids must be received and date and time stamped by the
City Clerk's clock on or before the date and time due; late bids will be returned unopened.
The Purchasing Officer, or his or her designee, shall publicly open all bids at
the time and place stated in the public notice. A tabulation of all bids shall be available
for public inspection in the Purchasing Division during regular business hours
for a period of one (1) year after bid opening.3.
08.550 Public PrQjects - Rejection of Formal Bids. In its discretion, the City Council may
reject any and all bids presented. If after the first invitation of bids all bids are
rejected, after reevaluating its cost estimates of the project, the City Council shall have
the option of either (a) abandoning the project or re-advertising for bids in the
manner prescribed by this Chapter; or (b) by passage of a resolution by a four-fifths
vote of the City Council declaring that the project can be performed more
economically by the employees of the City, may have the project done by force
account.
3.08.560 Public Projects - Award of Formal Bid Contracts. All contracts for public
work with a value of more than Seventy-five Thousand Dollars ($75,000) shall
require the approval of the City Council and shall be executed by the Mayor and
approved as to form by the City Attorney. If a contract is awarded, it shall be awarded
by the City Council to the lowest responsible bidder. The determination of the "lowest
19 Ord.No.12-
responsible bidder" shall beat the discretion of the City Council pursuant to the findingsand recommendations presented bythe Director of PublicWorks atthetime of award
of contract. In determining the lowest responsible bidder, the following shall be considered by
the City Council, in addition to price:1. The ability, capacity and skill
of the bidder to perform the contract or provide the services required.2.
Whether the bidder can perform the contract or provide the
services promptly, or within the time specified, without delay or interference.3. The sufficiency
of the bidder's
financial resources to perform the contract or provide the service.4. The
ability of the bidder to provide future maintenance and services
where such maintenance and service essential.5. The quality and timeliness of the bidder'
s performance on
previous contracts for the City.6. Litigation by the bidder on previous contracts
with the City.7. The
character, integrity, reputation, judgment, experience and efficiency of the bidder.8. The bidder
is licensed under
the Contractors' State License Law (commencing with Section 7000 of the
Business and Professions Code of the State of California, as the
same
may be amended from time to time) to perform the work for
which it submitted a bid proposal.3.08.570 Public Projects - 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, at its discretion, accept the one it chooses or accept the
lowest bid made by and after negotiation with the tie bidders.3.08.580 Public Projects -
No Formal Bids. If no bids are received through the formal or informal procedure, the project
may be performed by the employees of the
City
by force account, or negotiated contract.20 Ord.No. I 2-99
3.08.590PublicPrQjects - Emer.gencies. A. In casesof emergency when repair or
replacements are necessary, the City Council mayproceed at once to replace or repair any
public facility without adopting plans and specifications or giving notice for bids to let
contracts. The work may be done by day labor under the direction of
the Public Works Director, by contractor, or by a combination of the two.B. In case of
an emergency, if notice for bids to let contracts will not be
given, the City shall comply with Chapter 2.5 (commencing with Section 22050) of the California
Public Contract Code (as the same may be amended from time to time).SECTION II:
Should any section, subsection, clause, or provision of this Ordinance for any reason be
held to
be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the
validity or constitutionality of the remaining portions of this Ordinance; it being
hereby expressly declared that this Ordinance, and each section,subsection, sentence, clause and
phrase hereof would have been prepared, proposed,approved and ratified irrespective of
the fact that anyone or more sections,subsections, sentences, clauses or
phrases be declared invalid or unconstitutional.SECTION III:A summary of this
Ordinance shall be published and a certified copy of the
full text
of this Ordinance shall be posted in the Office of the City Clerk at least
five (5)days prior to the City Council meeting at which this Ordinance is to be adopted. A
summary of this Ordinance shall also be published once within fifteen (15) days after its passage
in a newspaper of general circulation in the City of Orange. The City Clerk
shall post in the Office of the City Clerk a certified copy of the full text
of the adopted Ordinance along with the names of those City Council members voting for and against the Ordinance
in accordance with Government Code Section 36933.Adopted this 13th day of July 1999.
ATTEST:chZ ity Clerk of the . of Orange r-
21 Ord.No.12-99
r- -
STATE
OF CALIFORNIA)COUNTY
OF ORANGE )CITY
OF ORANGE )I, CASSANDRA
1. CATHCART, City Clerk of the City of Orange, do hereby certify
that the foregoing Ordinance was introduced at the regular meeting of the City
Council held on the ~ day of June , 1999, and thereafter at a regular meeting
of said City Council duly held on the 13 t h day of July , 1999,
was duly passed and adopted by the following vote, to wit:AYES: COUNCIL
MEMBERS:Murphy, Slater, Coontz, spurgeon I Al varez NOES: COUNCIL
MEMBERS: None ABSENT: COUNCIL
MEMBERS: None ABSTAIN: COUNCIL
MEMBERS: None City Clerk
of the Ci of Orange 22 Ord.
No.
12-
99 TJR