HomeMy WebLinkAboutNS-2502 - Amending Article VII of Chapter 2 of the Code Relating to Purchasing and Adding Article VIII to Chapter 33 of the Code Relating to Public Works ConstructionORDINANCE NO. NS -2502
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA AMENDING ARTICLE VII OF CHAPTER 2 OF
THE CODE RELATING TO PURCHASING AND ADDING
ARTICLE VIII TO CHAPTER 33 OF THE CODE RELATING
TO PUBLIC WORKS CONSTRUCTION
THE CITY COUNCIL OF THE CITY OF SANTA ANA ORDAINS AS FOLLOWS:
Section 1: The City Council hereby finds, determines and declares as follows:
The City Council is authorized pursuant to section 421 of the city's charter
to adopt rules and regulations governing purchasing of materials,
equipment, supplies and labor, the contracting for services and goods,
and agreements for public works construction.
These revisions to these rules and regulations are designed to facilitate
enhanced customer service and greater efficiency in the implementation
of these processes.
This ordinance makes technical, nonsubstantive changes to the Santa
Ana Municipal Code ("Code") and is declaratory of existing law.
The validity of any existing contract between any person or entity and the
city is not intended, nor shall it be interpreted, to be affected by adoption of
this ordinance.
Section 2: Article VII of Chapter 2 of the Code, entitled "Purchasing Rules and
Regulations" is hereby repealed in its entirety.
Section 3. Article VII of Chapter 2 of the Code is hereby added to read as follows:
ARTICLE VII. PURCHASING RULES AND REGULATIONS
Sec. 2-800. Purposes of purchasing system.
These purchasing rules and regulations are hereby adopted in order to
(1) establish efficient procedures for purchasing of materials, supplies, labor and
equipment; (2) secure maximum quality goods, services or performance at
minimum cost for the city; (3) exercise positive financial control over the city's
purchases; and (4) establish the necessary procedures for the selection of
providers of all ranges of goods and services so as to avoid favor or prejudice.
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Sec. 2-801. City manager's authority.
The city manager is authorized to bind the city to any one written contract for an
amount not exceeding the sum of ten thousand dollars ($10,000.00).
Sec. 2-802. Definitions
For purposes of this article, the following definitions shall apply:
(a)
Agreement or contract: Shall mean a legal contract which complies fully
with the provisions of section 421 of the city's charter and this article. The
words "agreement" and "contract" may be used intemhangeably in this
article.
(b)
Materials, supplies, labor and equipment: Shall mean those goods or
services, but excluding professional services and public works
construction, that are readily ascertainable and measurable by an
objective standard in terms of quantity or quality so as to be susceptible
to competitive bidding.
(c)
Officers: Shall mean the city manager, the city attorney, the clerk of the
council and executive directors of various city agencies and departments.
(d)
Professional services: Shall mean the type of services that are provided
by accountants, appraisers, architects, attorneys, auditors, construction
managers (including program or project managers), engineers, educators
or teachers, land surveyors, physicians, psychologists, financial planners,
urban planners and other similar professional, scientific, educational or
technical individuals or organizations whose services are characterized by
a high degree of professional, scientific, educational, technical or
otherwise specialized skill or expertise, not readily susceptible to
competitive bidding.
(e)
Purchasing manager: Shall mean that city employee or official so
designated by the city manager and authorized to carry out the
responsibilities under this article, including the promulgation and
enforcement of administrative procedures.
(f)
Purchase order (PO): Shall mean that standardized contract developed
pursuant to Section 2-803 (j) issued to the vendor of materials, supplies,
labor and equipment.
Sec. 2-803. Powers and Duties of the Purchasing Manager.
The city manager is directed to establish and maintain a centralized purchasing
system, and in connection therewith, the city manager shall designate a
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purchasing manager for the city whose duties shall include, but not be limited to,
the following:
(a) Act to procure for the city the needed quality in materials, supplies, labor,
and equipment, and services including professional services, at the least
expense to the city.
(b) Recommend execution of contracts.
(c)
Endeavor to obtain as full and open competition as possible on all
purchases.
(d)
Keep informed of current developments in the field of purchasing, prices,
market conditions and new products.
(e)
Establish rules and procedures governing the purchase of materials,
supplies, labor, equipment and services including professional services,
for the city through the preparation and adoption of an administrative code
which shall provide for the review of such alternative sources of supply or
performance as may be available in competition with one another and
selection therefrom on the basis of obtaining maximum quality at minimum
costs,
(f)
Prescribe and maintain such forms as are reasonably necessary for the
operation of this article.
(g)
Keep or cause to be kept an inventory of all municipal property in his or
her custody.
(h) When required, cause notices inviting bids to be published.
(i)
Endeavor to establish standards in the variety of articles, materials,
supplies, labor, and equipment, commonly used by the various
departments and agencies, as will make possible uniform purchases,
when consistent with efficiency.
O)
Prepare, with the approval of the city attorney as to form, a pre-printed
purchase order to be utilized in contracts for materials, supplies, labor and
equipment.
(k)
Be the individual authorized, on behalf of the city, to exercise options for
renewal that are present in agreements.
Sec. 2-804. Procurement of materials, supplies, labor, and equipment under
$500.00.
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The officers of the city are hereby authorized to bind the city on contracts for
materials, supplies, labor, and equipment or services, including professional
services, in amounts not exceeding five hundred dollars ($500.00) in any one
contract or in the aggregate with any one vendor or service provider in
accordance with procedures established by the purchasing manager.
Sec. 2-805. Procurement of materials, supplies, labor, and equipment
between $500.00 and $10,000.00.
Unless exempt from bidding pursuant section 2-807, all contracts involving an
expenditure between five hundred dollars ($500.00) and ten thousand dollars
($10,000.00) for materials, supplies, labor, and equipment shall be let to the
lowest responsible bidder in accordance with procedures established by the
purchasing manager. Those procedures shall provide for at a minimum the
following:
(a)
There shall be a written or verbal invitation for bid which shall include the
following information: A general description of the things to be purchased
or project, the time and place for bid opening when applicable, bid
instructions, and the terms and conditions of the bid and any resulting
contract. The purchasing manager shall make a good faith effort to notify
all businesses engaged in providing such materials, supplies, labor, and
equipment located within the boundaries of the city of the opportunity to
bid.
(b)
Where required by state or federal law or regulations, or upon request by
a bidder, the bids shall be opened, if sealed, and declared in public at the
time and place stated on the "Invitation for Bid."
(c)
If two (2) or more bids received are the same and the lowest, the city may
choose either one. The city shall reserve the right to reject any or all bids.
Sec. 2-806. Procurement of materials, supplies, labor, and equipment in
excess of $10,000.00.
Unless exempt from bidding pursuant section 2-807, all contracts involving an
expenditure in excess of ten thousand dollars ($10,000.00) for materials,
supplies, labor, and equipment shall be let to the lowest responsible bidder in
accordance with procedures established by the purchasing manager. Those
procedures shall provide for at least the following:
(a)
Notices inviting bids shall include a general description of the things to be
purchased, and the time and place for bid opening. The notice shall be
published in a newspaper of general circulation in the city for at least two
(2) days, the first of which shall be at least ten (10) days before the date
set for opening bids.
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(b)
(c)
(d)
Invitation of bids shall be mailed or transmitted by other means
established by the administrative code but not recited over the telephone
or in person. Any interested bidder may obtain an invitation for bid.
All bids shall be formal bids submitted sealed in accordance with the
instructions contained in the "Invitation for Bid" form.
The bids shall be opened in public, at the time and place stated on the
"Invitation for Bid." All bids shall be publicly declared.
Sec. 2-807. Non-bid Purchases.
The following contracts may be exempted from competitive bidding through an
open market pumhase by the purchasing manager, and confirmed by the city
council in the case of contracts for over ten thousand dollars ($10,000.00), but
shall nevertheless be entered into only after compliance with the rules
established by the purchasing manager, which shall include the review of such
alternative sources of supply or performance as may be available in competition
with one another and selection therefrom on the basis of obtaining maximum
quality at minimum costs:
(a)
(b)
(c)
(d)
(e)
Purchases of materials, supplies, labor, and equipment whenever it shall
appear that there is only one reasonably available source or where
solicitation of bids would for any reason be an idle act.
Purchases of materials, supplies, labor, and equipment necessary for the
preservation of life, health or property, following the declaration of a state
of emergency in the city upon the affirmative vote of at least two-thirds
(2/3) of the members of the city council.
Situations where no bids are received or all bids are rejected and the city
council determines, upon the affirmative vote of at least two-thirds (2~3) of
its members, that the materials, supplies, labor or equipment can be
obtained at a lower cost.
Purchases from vendors whose names are on current established lists
and have been awarded the same type of purchase contract by a federal
agency (including the General Services Administration), a state agency,
county, city or other public agency after a competitive bidding process
determined by the purchasing manager to be substantially equivalent to
that prescribed by this article.
Contracts for professional services.
Section 4. Article VIII of Chapter 33 of the Code is hereby added to read as
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follows:
ARTICLE VIII. PUBLIC WORKS CONSTRUCTION RULES AND
REGULATIONS
Sec. 33-200. Purposes.
(a)
These rules and regulations for the contracting of public works
construction services are to comply with section 421 of the city
charter to (1) establish efficient procedures for construction of
public works; (2) distinguish between traditional public works
construction and other more innovative modes of project
management and project delivery which still comply with the city's
charter; and (3) establish procedures to allow for the efficient and
fair construction of public works without favor or prejudice.
(b)
The city council finds that the city's charter, including but not limited
to sections 200 and 421, conflict with existing state law set forth in
the California Public Contract Code. Said charter provisions, this
article and the administrative procedures adopted by the executive
director of public works pursuant to section 33-204, are intended,
and shall be interpreted, to constitute a complete statement of the
city's public works construction rules and regulations. The city
council declares there exists a fundamental conflict between the
city's charter, ordinances, administrative rules and regulations, on
the one hand, and the California Public Contract Code provisions
regulating public works construction, on the other hand, both
generally and specifically. This conflict infringes on the city's
constitutional authority to govern its municipal affairs. The city
council intends to and does hereby exempt public works
construction from being subject to any provision of the California
Public Contract Code, except to the extent that any such provisions
may be expressly incorporated in applicable administrative
procedures.
Sec. 33-201. City manager's authority.
The city manager is authorized to bind the city to any one written contract
for emergency public works construction in an amount not exceeding the
sum of ten thousand dollars ($10,000.00).
Sec. 33-202. Definitions.
For purposes of this article, the following definitions shall apply:
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Page 6 of 11
(a)
Construction manager: Shall mean an agent of the city who
provides the city with professional services in the fields of
technology, scheduling, ability to construct, and/or management of
the fiscal aspects of a public works project. A construction
manager shall be responsible for some or all of the following:
(1)overseeing a public works project through completion of
construction; (2) assumption of financial responsibility; (3) hiring of
an amhitect/designer, if necessary, through a qualification process
consistent with procedures established pursuant to section 2-803;
and/or (4) contracting for actual construction work by award of a
contract to the lowest and best bidder in conformance with section
421 of the city's charter.
(b)
Design-build-bid: Shall mean a procurement process in which both
the design and construction manager professional services for a
public works project are procured from a single entity, while the
actual construction work is awarded by the entity to the lowest and
best bidder in conformance with section 421 of the city's charter.
(c)
Professional services: Shall have the same meaning as in section
2-802 of this code.
(d)
Public works construction: Shall have the same meaning as in
section 421 of the city's charter.
(e)
Public works project: Shall mean the totality of a project, including
both professional services and public works construction, which
ultimately results in the erection or improvement of public buildings,
streets, drains, sewers, parks or playgrounds.
(f)
Purchasing manager: Shall have the same meaning as in section
2-802 of this code.
Sec. 33-203. Procurement of public works construction.
The following procedure shall apply to every contract for which final plans
and specifications are available involving an expenditure of more than five
hundred dollars ($500.00) for non-emergency public works construction:
(a)
Notice inviting bids. Notice inviting bids shall include a general
description of the public works construction, the place to obtain the
plans and specifications, and the time and place for opening bids.
The notice shall be published in a newspaper of general circulation
in the city for at least two (2) days, the first of which shall be at
least ten (10) days before the date set for opening bids. The city
shall make a good faith effort to send a notice inviting bids to all
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businesses engaged in providing labor and materials for such
construction located within the boundaries of the City of Santa Ana.
(b)
The bid. Included with the plans and specifications for a work of
public works construction shall be the following documents:
Instructions to bidder, proposal, bond samples and the contract.
The bidder shall execute the proposal and contract, and submit
them sealed with at least a ten per cent (10%) bid bond, cashier's
check or certified check..
(c)
Award of contract. Upon opening the bids at the time and place
stated in the notice, the aggregate bid of each bidder shall be
publicly declared. Following the determination of the lowest and
best bidder, the proposal and agreement from this bidder shall be
sent to the city attorney for approval as to form. The documents
shall then be presented to the city council for approval and
authorization for execution. If two (2) or more bids received are the
same and the lowest, the council may accept the one it chooses.
(d)
Notification of award. A notification letter, a request for bonds,
when necessary, and a copy of the fully executed contract shall be
delivered to the successful bidder.
(e)
Performance bonds. To secure faithful performance of the contract,
the city manager is authorized to require security in the form of
cash, cashier's check, certified check or corporate faithful
performance bonds, in the following percentages of the aggregate
amount bid: One hundred per cent (100%) bond for faithful
performance, and fifty per cent (50%) contractor's payment bond.
(f)
Rejection of bids. The right to reject all bids is expressly reserved
to the city council. After rejecting such bids, or if no bids are
received, the city council may determine and declare that, in its
opinion based on estimates submitted by the city manager, the
public works construction may be performed better or more
economically by the city with its own employees, and after the
adoption of a motion to this effect by the affirmative votes of at
least two-thirds (2/3) of the members of the city council, the council
may proceed to have said work done in the manner stated without
further observance of the provision of this article.
Sec. 33-204. Procedures for Alternate Procurement Processes for
Public Works Projects.
The city council may choose to undertake a public works project utilizing
alternative project delivery methods which may include but not be limited
Ordinance No. NS-2502
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to the construction manager, or design-build-bid or any other project
delivery method which is appropriate to the type of public works project
and conforms to applicable federal, state and charter requirements. The
executive director of public works is authorized and directed to promulgate
and maintain administrative procedures for the management of all public
works projects including alternative delivery methods. Such procedures
shall conform to any applicable regulations issued pursuant to section
2-803(e) which relate to the award of contracts for professional services.
Sec. 33-205. Disqualification of contractors.
(a)
In the event that any person who has contracted with the city for
the provision of labor and materials for public works construction
violates any covenant or condition of said contract, then, in addition
to any other right or remedy to which the city may be entitled, such
person may be disqualified from bidding on city contracts for public
works construction for a period of up to one year, in accordance
with the provisions of this section.
(b)
No person shall be disqualified under this section without having
first been given notice of the charges and an opportunity to be
heard on the issues. Unless an alternative hearing procedure is
directed by the city council, the notice of charges and time and
place of hearing shall be given to the person by the director of
public works, based upon a preliminary determination that a
violation calling for disqualification has occurred, and the said
director, or his/her authorized representative, shall conduct such
hearing and determine whether and for how long such person shall
be disqualified. Any determination of disqualification may be
appealed to the city council pursuant to Chapter 3 of this Code. In
determining whether a person should be disqualified and, if so, the
duration of the disqualifications, the hearing officer and the city
council shall consider the following:
(1) Whether any violation of the contract did in fact occur.
(2)
Whether the violation caused any significant detriment to the
city or to the public interest in terms of additional expense,
delay in completion of the work, or noncompliance with
public policy obligations.
(3)
Whether the acts or omissions that constituted or resulted in
the violation were marked by willful or reckless disregard for
the duty to comply with the contract.
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(c) I
No person disqualified under this section, and no person who lists
any person disqualified as a subcontractor on any bid, shall be
considered the best bidder on any contract for public works
construction to be awarded by the city within the period of the
disqualification.
Section 5: If any section, subsection, sentence, clause, phrase or portion of this
ordinance is for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this ordinance. The City Council of the City of Santa Ana hereby declares that
it would have adopted this ordinance and each section, subsection, sentence, clause,
phrase or portion thereof irrespective of the fact that any one or more sections,
subsections, sentences, clauses, phrases, or portions be declared invalid or
unconstitutional.
ADOPTED this 1st day of July, 2002.
"~1~.., Miguel A. Pulido ~ %.
'~ Mayor '~
APPROVED AS TO FORM:
Joseph W. Fletcher
By: ~ %
BenJa~aufman ~
C.~Ssis~omey
Ordinance No. NS-2502
Page 10 of 11
AYES:
NOES:
ABSTAIN: Councilmembers:
NOT PRESENT: Councilmembers:
Councilmembers: Bist, Christy, Franklin, McGuigan, Solorio (5)
Councilmembers: None (0)
None (0)
Alvarez, Pulido (2)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached
Ordinance No. NS-2502 to be the original ordinance adopted by the City Council of the
City of Santa Aha on July 1, 2002, and that said ordinance was published in accordance
with the Charter of the City of Santa Aha.
Date:
Clerk of the Council
City of Santa Aha
Ordinance No. NS-2502
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