HomeMy WebLinkAboutAgenda Report - September 7, 2011 J-03AGENDA ITEM 5-03
CITY OF LODI
COUNCIL COMMUNICATION
Im
AGENDA TITLE: Ordinance No. 1849 entitled, "An Ordinance of the City Council of the City of Lodi
Amending Lodi Municipal Code Title 2 —Administration and Personnel— Chapter
2.12, `City Manager,' by Repealing and Reenacting Section 2.12.060(T) Relating to
Contract Authority of the City Manager; and FurtherAmending Lodi Municipal
Code Title 3 — Revenue and Finance — by Repealing and Reenacting Chapter 3.20
in Its Entirety Relating to the Purchasing System"
MEETING DATE: September 7,2 011
PREPARED BY: City Clerk
RECOMMENDED ACTION: Motion waiving reading in full and (following reading by title)
adopting the attached Ordinance No. 1849.
BACKGROUND INFORMATION: Ordinance No. 1849 entitled, "An Ordinance of the City Council of
the City of Lodi Amending Lodi Municipal Code Title 2 —
Administration and Personnel— Chapter 2.12, `City Manager,' by
Repealing and Reenacting Section 2.12.060(T) Relating to Contract Authority of the City Manager; and
FurtherAmending Lodi Municipal Code Title 3 — Revenue and Finance— by Repealing and Reenacting
Chapter 3.20 in Its Entirety Relating to the Purchasing System," was introduced at the regular City
Council meeting of August 17, 2011.
ADOPTION: With the exception of urgency ordinances, no ordinance may be passed within five days of
its introduction. Two readings are therefore required — one to introduce and a second to adopt the
ordinance. Ordinances may only be passed at a regular meeting or at an adjourned regular meeting;
except for urgency ordinances, ordinances may not be passed at a special meeting. Id. All ordinances
must be read in full either at the time of introduction or at the time of passage, unless a regular motion
waiving further reading is adopted by a majority of all council persons present. Cal. Gov't Code§ 36934.
Ordinances take effect 30 days after their final passage. Cal. Gov fCode§ 36937
This ordinance has been approved as to form by the City Attorney.
FISCAL IMPACT:
FUNDING AVAILABLE:
RJ/JMR
Attachment
None.
None required.
APPROVED:
council/councom/Ordinanceldoc
RaLl)
I
City Clerk
Ronradt Bartlam, City Manager
ORDINANCE NO. 1849
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI
AMENDING LODI MUNICIPAL CODE TITLE 2 — ADMINISTRATION AND
PERSONNEL— CHAPTER 2.12, "CITY MANAGER," BY REPEALING AND
REENACTING SECTION 2.12.060(T) RELATING TO CONTRACT
AUTHORITY OF THE CITY MANAGER; AND FURTHERAMENDING LODI
MUNICIPAL CODE TITLE 3 — REVENUEAND FINANCE— BY REPEALING
AND REENACTING CHAPTER 3.20 IN ITS ENTIRETY RELATINGTO THE
PURCHASING SYSTEM
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LODI AS FOLLOWS:
Section 1. Lodi Municipal Code Title 2 —Administration and Personnel— Chapter 2.12, "City
Manager," is hereby amended by repealing and reenacting Section 2.12.060(T) relating to contract
authority of the City Manager and shall read as follows:
2.12.060 (T) Contracts: To execute on behalf of the City, without City Council approval, contracts,
as defined in Lodi Municipal Code 3.20.015, in the amount of twenty thousand dollars or less, and
to delegate authorityto su bord i nate officers and employeesto execute contracts without citycouncil
or city manager approval contracts in the amount of fifteen thousand or less to the Public Works
Director or designee, fifteen thousand or less to the Electric Utility Director or designee and ten
thousand dollars or less to all other directors or designees. Nothing in this section shall allow
departure from the other purchasing requirements of Chapter3.20 of this Code. For contracts of not
less than ten thousand nor greater than twenty thousand the City Manager shall quarterly prepare
for the city council a report which includes a list of the contracts into which the city has entered
during the previous three months. No contract shall be split into smaller segments to avoid the
provisions of this subsection. (Government Code § 4526, Public Contract Code § 10359)
Section 2. Lodi Municipal Code Title 3 — Revenue and Finance — Chapter 3.20, "Purchasing
System," is hereby repealed and reenacted in its entirety, and shall read as follows:
Sections:
3.20.010
Purpose
3.20.015
Definitions
3.20.020
Purchasing Officer- Established
3.20.030
Purchasing Officer- Powers
3.20.04.0
Delegation of Purchasing Authority
3.20.045
State and Local Agency Contracts
3.20.060
Requisitions
3.20.070
Bidding
3.20.075
Professional/Technical Services Contracts
3.20.076
Contract Authority
3.20.077
Electronic Hardware and Software
3.20.080
Purchase Orders
3.20.085
Professional Services Agreements
3.20.090
Use of Unencumbered Funds Required
3.20.095
State and Federal Grants
3.20.100
Formal Contract Procedure
3.20.105
Public Works Projects
3.20.110
Open Market Procedure
3.20.115
Split Transactions
3.20.120
Inspection and Testing of Purchases
3.20.130
Vehicle Purchases and Disposition Exemption
3.20.135 Procurement Cards
3.20.140 Restrictions
3.20.150 Penalty for violation
3.20.010 Purpose
In order to establish efficient procedures for the purchase of supplies, services, and
equipment, to secure for the City supplies, services, and equipment at the lowest possible cost
com mensu rate with quality needed, to exercise positivefinancial control over purchases, to clearly
define authority for the purchasing function, and to assure the quality of purchases, the City's
purchasing system is set forth in this Chapter.
3.20.015 Definitions
As used in this Chapter the following terms shall have the following respective meanings:
A. "Best Value" is associated with determining the greatest worth and benefitto the City based
on a number of factors, including
1) cost;
2) Quality of the product or service;
3) Delivery lead time;
4) Ability of the manufacturer or contractor to provide services, supplies, or equipment as
required, and parts, repairs, maintenance and support after the sale;
5) The character, integrity, reputation, judgment, and experience of the manufacturer,
contractor, or supplier.
B. "Bid" may mean a competitive sealed (formal) bid processed in accordancewith §3.20.100, or
an informal bid processed in accordance with §3.20.110 herein.
C. "Contract" means a written or oral agreement to expend money on a product or service
including but not limited to purchase orders, formal contracts, invoices, and oral orders.
D. "Department" or "Using Department" means any of the departments of the city government.
E. "Emergency" shall mean an unforeseen circumstance or combination of circumstances calling
for immediate action to procure materials, supplies, equipment, or services in order to make
repairs, safeguard lives or property, or maintain public health or welfare, as a result of
extraordinary conditions created by war, disease, weather, fire, or other catastrophic or
unforeseen occurrence, or imminentor actual failure of any plant, equipment, structure, street, or
public work.
F. "Equipment" shall mean items of propertywhich are maintained on inventory as fixed assets.
These items are durable and have a fixed, predetermined life expectancy.
G. "Professional services," as used in this section, shall mean all services which (1) are of an
advisory nature, (2) provide a recommended course of action or personal expertise, or (3) have an
end product which is basically a transmittal of information either written or verbal and which is
related to the governmental functions of city administration and managementand city program
management or innovation, and which are obtained by awarding a services contract, a grant, or
any other payment of funds for services of the above type. I n general, "Professional services" are
provided by qualified professionals in such disciplines as accounting, architectural, engineering,
environmental, financial, legal, and medical fields.
H. "Professional Services Agreement' means the agreement entered into between the service
provider and the City for services, as opposed to goods and materials, in a form created by the
City Attorney.
I. "Public Project" shall mean a project for the erection, improvement, painting, or repair of public
buildings and works; work in or about streams, rivers, lakes, or embankments for protection
against overflow; street, sewer, water, and electrical distribution system work except maintenance
or repair; furnishing supplies or materials for any such project, including maintenanceor repairof
streets or sewers. (Public Contract Code § 20161)
J. "Purchases" shall mean legal transactions (including lease and rental) by which the City
acquires supplies, equipment, materials, and contractual services.
K. "Purchasing Authority" shall mean any department head authorized to purchase or otherwise
enter into contracts for the City under provisions of Part 3.20.040 herein.
L. "Procurement Cards" shall mean bank issued credit cards assigned to positions specified by
resolution of the City Council.
M. "Responsible Bid" shall mean an offer, submitted by a responsible bidderto furnish supplies,
equipment, materials, or services in conformitywith the bid instructions, specifications, delivery
terms and conditions, and other requirements contained in the Invitation for Bids.
N. "Responsible Bidder" shall mean a bidder who is financially responsible and has the
resources, judgment, skill, ability, capacity, integrity, and reliability required and necessary to
perform the requirements set forth in the bids, and which will assure good faith performance.
O. "Responsive Bid" is a bid that conforms in all material respects to the Invitation for Bids.
P. "Services" shall mean the furnishing of labor,time, or effort performed by speciallytrained and
experienced persons, firms, or corporations rendering professional work and advice in such
disciplinesasthe maintenance or repair of buildings or grounds, equipment or machinery, or other
City -owned or operated property. Such term shall not include services rendered by city officers or
employees, nor professional or technical services as defined elsewhere in this section.
Q. "Shall" denotes the imperative.
R. "Supplies" shall mean property, including but not limited to materials, required to perform a
department's routine functions.
S. "Technical Services" shall mean design, installation, diagnostic, or repair services for
electrical, electronic, data/telecommunications, mechanical, and/or control systems and their
components. These services are distinguished from general repair and maintenance services by
their requirements for technical training and/or professional certification.
3.20.020 Purchasing Officer- Established
There is established the position of Purchasing Officer. The Purchasing Officer shall be
appointed by the City Manager and shall be the head and have general oversight of the
purchasing functions of the City. The duties of the Purchasing Officer may be combined with
those of any other office or position.
3.20.030 Purchasing Officer- Powers
The Purchasing Officer shall have the responsibility and authority to:
A. Purchase or contractfor supplies, services, and equipment required by any city department 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 purchasing function of the City and such other rules and regulationsas shall be prescribed by
the City Council or City Manager;
B. Negotiate and recommend execution of contracts for the purchase of supplies, services, and
equipment;
C. Act to procurefor the city the needed quantity and quality in supplies, services, and equipment
at least expense to the City;
D. Discourage uniform bidding (wherein bidders conspire to submit the same cost for a givenjob
or tangible item), and endeavor to obtain as full and open competition as possible on all
purchases;
E. Prepare rules governing the purchase of supplies, services, and equipment for the City;
F. Prepare and recommend to the City Council revisions and amendments to this Chapter;
G. Keep informed of current developments in the field of purchasing, prices, market conditions,
and new products;
H. Prescribeand maintain such forms as reasonably necessaryto the operation of this Chapter
and other rules and regulations;
I. Oversee the inspection of all supplies, services, and equipment purchased to insure
conformance with specifications;
J. Recommend the transfer of surplus or unused supplies and equipment between departments
as needed and the sale of all supplies and equipmentwhich cannot be used by any departmentor
which may become unsuitablefor city use;
K. Maintain a bidders' list, vendors catalog file, and records necessaryfor the efficient operation
of the purchasing function.
L. The foregoing responsibilities and authorities may be delegated by the Purchasing Officerto
departmental Purchasing Authorities (as defined herein) under this purchasing policy.
3.20.040 Delegationof PurchasingAuthority
The City Manager, in accordancewith Lodi Municipal Code Section 2.12.060(T), mayauthorize
in writing any department head (hereinafter"Purchasing Authority")to purchase orcontractfor, or
to delegateto qualified staff membersthe authority to purchase or contractfor specified supplies,
services, and equipment independently; but shall require that such purchases or contracts be
made in conformity with the procedures established by this Chapter, and shall further require
periodic reports from the department on the purchases and contracts made under such written
authorization.
3.20.045 State and Local Agency Contracts
The bidding process described in this Chapter may bewaived when advantageousforthe City
and authorized by the City Managerfor purchaseof supplies, equipment, or contractual services
awarded in accordancewith formally adopted bidding or negotiation procedures approved bythe
governing boards of other California public agencies. Purchases or contracts in excess of twenty
thousand dollars ($20,000) shall require the approval of the City Council.
3.20.060 Requisitions
City departments shall submit requestsfor supplies, services, and equipmentto the purchasing
officer, or designee, electron icallyor by standard requisitionforms, for the purposes and within the
limits of funds appropriated therefore.
3.20.070 Bidding
Purchases of supplies, services, equipment, and the sale of personal property shall be by bid
procedures pursuant to Sections 3.20.100 and 3.20.110. Bidding shall be dispensed with only
(1) bid in cases of emergency as defined in this Chapter, and therefore requires that an order be
placed with the best available source of service or supply, (2) when the amount involved is less
than two thousand five hundred dollars ($2,500) (but competitive quotes shall be obtained if it is in
the City's best interestto do so), (3) when the commodity can be obtained from only one vendor,
due to (a) product standardization by resolution of the City Council, or (b) need for branded
replacement parts or supplies for equipment of like brand; (4) when professional or technical
requirements preclude competitive bidding, pursuantto Part 3.20.075 of this Section, or (5) when
the City Council determines that the purchase or method of purchase would be in the best
interests of the city.
3.20.075 Professional/Technical Services Contracts
The following professional services contracts are specifically exemptfrom the advertising and
bidding requirements of Section 3.20.070:
Contracts for
(1) legal defense, legal advice, or legal services;
(2) architectural and engineering services, including, but not limitedto construction management,
aerial photography, laboratory, and material testing services;
(3) accounting and financial services;
(4) real estate appraisals;
(5) transportation services consultants;
(6) safety, environmental, or hazardous material consultants;
(7) workshops, seminars, and conferences;
(8) computer consulting services.
Such contracts shall be awarded on the basis of professional qualifications and experience,
quality of service, past performance, and negotiated prices.
3.20.076 Contract Authority
The City Manager shall have the contracting authority set forth in Chapter 2.12.060(T) of this
Code.
3.20.077 Electronic Hardware and Software
Acquisition of electronic hardware and softwareshall be by negotiation, requestsfor proposal,
or competitive bids, and award shall be based on `best value' criteria as established by Section
3.20.15, under direction of the Information Systems Manager, and set forth in the terms of the
negotiation, Requestfor Proposals, or bid. Alternatively, purchase of electronic hardware and
software maybe made in accordance with Section 3.20.045. Electronic software purchasesshall
also be made in accordance with the City of Lodi Administrative Polices— Information Systems—
Section 5 Software Selection and Acquisition.
3.20.080 Purchase orders
Purchases of supplies and equipment in an amount of two thousand five hundred dollars
($2,500) or more shall be made only bywritten contractor by purchase orders. Purchaseorders
should not be used to procure services, except as noted in Section 3.20.085.
3.20.085 Professional Services Agreements
Services, as opposed to goods or materials, shall be procured using a Professional Services
Agreement as created, and revised as needed, by the City Attorney. Purchase orders, with the
appropriate terms, conditions, and insurance requirements, may be used in lieu of a Professional
Services Agreement when the nature of the service is that of a one-time service. On-going,
recurring services shall be procured using a Professional Services Agreement.
3.20.090 Use of unencumbered funds required
Except in cases of emergency, the purchasing officer or purchasing authority shall not issue
any purchaseorder or otherwise contractfor supplies, services, or equipment unless there exists
an unencumbered appropriation in the fund account againstwhich the purchase isto be charged.
3.20.095 State and Federal Grants
Where a procurement involves the expenditure of state orfederal grantfunds the procurement
process shall comply with such state or federal laws and authorized regulations which are
mandatorily applicable and which are not presently reflected in this code.
3.20.100 Formal contract procedure
Purchasesof supplies, equipment, contractual services, public projects, and sales of personal
property of an estimated value greater than twenty thousand dollars ($20,000) shall follow the
formal contract procedure:
A. Specifications and plans shall be subject to review and approval by the City Council priorto the
solicitation of bids.
B. The advertisement for bids will be conducted as provided for in the Government Code.
C. Notice Inviting Bids. Notice inviting bids shall include general description of the articlesto be
purchased or sold, or work to be performed, and shall state where bid forms and specifications
may be secured and the time and place for opening of bids.
1. Published Notice. Notice inviting bids shall be published at least ten (10) calendar days
before the date of opening of the bids. Notice shall be published at least once in a newspaper of
general circulation, printed and published in the city, or if there is none, it shall be posted in at
least three public places in the city that have been designated by ordinance as the places for
posting public notices.
2. Bidders' List. The Purchasing Officer shall also solicit sealed bids from all responsible
prospective suppliers whose names are on the bidders' list.
3. Internet Posting. The PurchasingOfficer may also advertise pending bids for purchases or
sales on the city's web page.
D. Bidder's Security. When required by law or deemed necessary by the Purchasing Officer,
bidder's security may be prescribed in the notice inviting bids. Bidders shall be entitled to the
return of their bid security; except that a successful bidder shall forfeit all or part of his or her bid
security upon refusal or failure to executethe contractwithin ten days afterthe notice of award of
contract has been mailed, unlessthe city is responsiblefor the delay. The City Council may, on
refusal or failure of the successful bidder to execute the contract, award it to the next lowest
responsible bidder. Thereafter, if the City Council awards the contractto the next lowest bidder,
the amount of the lowest bidder's security shall be applied by the city to the difference between
the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest
bidder.
E. Bid Opening Procedure. Sealed bids shall be submittedto the purchasing officer and shall be
identified as bids on the envelope. Bids shall be opened in public at the time and place stated in
the notice inviting bids. A tabulation of all bids received shall be available for public inspection
during regular business hours for a period of not less than thirty calendar days after the bid
opening.
F. Rejection of Bids. In its discretion, the city council may reject any and all bids presented and, if
it is in the city's best interest to do so, readvertise for bids.
G. Award of Contracts. After evaluation of bids, contract shall be awarded by the city council to
the lowest responsible bidder except as otherwise provided in this chapter. In determining the
lowest responsible bid, considerations shall include but not be limited to such factors as
(1) whether any portion of the state sales tax payable on the article which is the subject of the bid
will be rebated to the city by reason of awarding such contractto a person or firm domiciled within
the city, (2) total life -cycle costs, and/or (3) residual value.
H. Tie Bids. If two or more bids received are for the same total amount or unit price, with quality,
service, and factors considered in Section 3.20.100 (E) above, being equal and if the public
interest will not permit the delay of readvertising for bids, the city council may accept the lowest
bid determined bytoss of a coin performed at a time as soon after the bid opening as is possible.
I. Performance Bond. The City Council shall have authorityto requirea performance bond before
entering a contract in such amount as it shall find reasonably necessity to protect the best
interests of the City. If the City Council requires a performance bond, the form and amount of the
bond shall be described in the bidding documents.
3.20.105 PublicWorks Projects
PublicWorks Projects in excess of five thousand dollars ($5,000) shall be bid pursuant to the
procedures of the Public Contract Code Public Contracts Code Section 20162). Public Works
Projects undertwenty thousand dollars ($20,000) may be advertised for and contracted by staff as
authorized under this Chapter. Public Works Contracts over twenty thousand dollars ($20,000)
shall be approved by Council. PublicWorks Project bid disputes, rejections, and other exceptions
shall be agendized for Council action regardless of contract value.
3.20.110 Open market procedure
Purchases of supplies, equipment, contractual services and sales of personal propertyof an
estimated value in the amount of twenty thousand dollars ($20,000) or less may be made in the
open market without observing the Formal Contract procedure prescribed by Section 3.20.100.
A. Minimum Number of Informal Bids or Quotations. Open market purchases shall, wherever
possible, be based on at least three informal bids or quotations, and shall be awarded to the
lowest responsible bidder.
B. Requestfor Quotations. The Purchasing Officer or purchasing authority shall solicit informal
written bids or quotations from prospective vendors by written request, by telephone or by
electronic data interchange. Quotations or informal bids shall be in writing for amounts greater
than two thousand five hundred dollars ($2,500).
C. Quotations and written informal bids shall be submitted to the requestor, who shall keep a
record of all quotations, bids, and open market orders for a period of one year after the
submission of quotations or the placing of orders. This record, while so kept, shall be open to
public inspection.
D. The Purchasing Officeror purchasing authority may reject any and all informal bids, offersand
quotations when, in his or her discretion, it shall be in the best interest of the City to do so.
3.20.115 Split Transactions
No person shall willfully split a single transaction into two or more transactions for the purposes
of evading the bidding requirements of this section. (Public Contract Code § 10329, 20163)
3.20.120 Inspection and testing of purchases
The Purchasing Officer or purchasing authority shall assure the inspection of supplies and
equipment delivered, and contractual services performed,to determinetheir conformancewith the
specifications set forth in the order or contract. The Purchasing Officer shall have authorityto
require chemical and physical tests of samples submitted with bids and samples of deliveries
which are necessaryto determine their quality and conformancewith specifications. (Priorcode§
2-66)
3.20.130 Vehicle purchases and disposition exemption
The purchase and disposition of fleet vehicles and other specific equipment governed by the
City's Fleet Policies and Procedures, as adopted by resolution of the city council, is exemptfrom
the provisionsof this Chapter
3.20.135 Procurement Cards
The City Council shall select a vendor to provide Procurement Cards for use by city staff.
Purchases in accordance with this policy shall be authorized to be paid for with such cards. The
City Council shall approve issuance of Procurement Cards to specified staff positions by
resolution for the efficient operations of the City. Authorized limits for individual and aggregate
transactions shall be in accordance with the transaction and contract limits set forth in this
chapter. The Purchasing Officer shall be responsible for preparing rules and procedures
governing the use of Procurement Cards.
3.20.140 Restrictions
If any department purchases or contracts for any supplies, equipment or contractual services
made contrary to the provisions of this Chapter, the purchase or contract shall be void and of no
effect. The head of the department making the purchasetransaction shall be personally liable for
the amount of the purchase or contract, or, if already paid for out of city funds, the amount thereof
may be recovered in the name of the city in appropriate action therefore.
3.20.150 Penaltyfor violation
Any person who violates, or permits a violation of this chapter is guilty of an infraction which
may be punishable as provided in Chapter 1.08 of this Code.
Section 3 - No Mandatory Duty of Care. This ordinance is not intended to and shall not be
construed or given effect in a mannerwhich imposes upon the City, or any officer or employee
thereof, a mandatoryduty of caretowards personsor propertywithin the Cityor outsideofthe City
so as to provide a basis of civil liabilityfor damages, except as otherwise imposed by law.
Section 4. All ordinances and parts of ordinances in conflict herewith are repealed insofaras such
conflict may exist.
Section 5. This ordinance shall be published one time in the "Lodi News Sentinel," a daily
newspaperof general circulation printed and published in the Cityof Lodi and shall be inforce and
take effect 30 days from and after its passage and approval.
Attest:
State of California
County of San Joaquin, ss.
Approved this 7th day cf
BOBJOHNSON
Mayor
ber, 2011.
I, Randi Johl, City Clerk of the City of Lodi, do hereby certify that Ordinance No. 1849 was
introduced at a regular meeting of the City Council of the City of Lodi held August 17,2011, and was
thereafter passed, adopted, and ordered to print at a regular meeting of said Council held
September 7, 2011, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Katzakian, Mounce, Nakanishi, and
Mayor Johnson
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS— None
I further certify that Ordinance No. 1849 was approved and signed by the Mayor of the date of its
DJaeand the same has been published pursuant to law.
OHL
City Clerk
Approved as to Form:
D. STEPHEN SC H UER
City Attorney