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HomeMy WebLinkAboutItem B SEA(.S\ apt AGENDA STAFF REPORT J J t / DATE: June 26, 2017 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Robin L. Roberts, City Clerk SUBJECT: Ordinance Amending Chapter 3.20 Purchasing System SUMMARY OF REQUEST: That the City Council introduce, read by title only and waive further reading of, Ordinance No. 1667, an Ordinance of the City Council of the City of Seal'Beach Amending Chapter 3.20 of Title 3 of the City of Seal Beach Municipal Code (Code) to update and restate the City's comprehensive purchasing requirements. STRATEGIC PLAN This item satisfies the following Seal Beach Strategic Plan Objective -Three Year Goal: Achieve short- and long:term fiscal sustainability - Bring to the City Council for consideration a citywide Procurement and Contract Administration Policy. • BACKGROUND AND ANALYSIS: The Seal Beach Charter (Charter) (Section 1006) requires the establishment of a centralized purchasing system for all City departments and agencies.' Code Chapter 3.20 - Purchasing System, last revised in 2004, establishes base procurement procedures. The attached proposed Ordinance includes recommended changes to this Chapter with a comprehensive procurement process including changes that provide clear bidding and purchasing limit thresholds.. In collaboration with the City Attorney and Director of Finance the changes include clarification of the power and duties of the purchasing officer, ,added language regarding unauthorized purchases, enhanced clarification regarding procurements exempt from bidding requirements, conflict of interest prohibition, and surplus property provisions. This amendment also includes a mechanism to have a single process and amount for'contract,authorization and bidding thresholds citywide. Currently, the Public Works contracting bidding threshold and City Manager procurement Agenda Item B authorization limit is $28,797. The Code threshold for informal and formal bidding and procurements is $20,000. The recommended changes would align bidding, contracting, and procurement thresholds or limitations to the same amount(currently $28,797), providing a clear and efficient purchasing system. As revised, authorized procurement and .bidding limitations of Chapter 3,20 will be set by a City Council approved resolution pursuant to the Charter Article X- Fiscal Administration (Section 1010) and Article IV — Elective Officers (Section 420). Section 1010 establishes that the bidding threshold for Public Works construction contracts be reviewed annually by the City Council, and if desired, changed based on the Construction Cost Index. Section 420 states the City Council may authorize the City Manager to bind the City, with or without aiwritten contract, by ordinance or resolution, within the approved budget. There is no requirement for the City Council to increase the bidding/contracting threshold; however, staff is required to provide the City Council with an annual cost index update and recommendation. In conjunction with the recommended changes to the Code, staff's proposal has enhanced the contract administration program with the implementation of a required process allowing for legal, fiscal, risk management, signature authority and City Manager review of all contracts/agreements. Attachment D of this report is the City of Seal Beach Contract Transmittal Form. Currently, departments are to submit all contracts to the City Clerk who verifies insurance documents and approval authority, routes to the Finance Director for fiscal review, and then to the City Manager for review and signature. Over the past year in collaboration with all departments, we have been working to create this process which also provides a central repository for all City contracts. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. FINANCIAL IMPACT: There is no financial impact. RECOMMENDATION: That the City Council introduce, read by title only and waive further reading of, Ordinance No. 1667, an Ordinance of the City Council of the City of Seal Beach Amending Chapter 3.20 of Title 3 of the City of Seal Beach Municipal Code to update and restate the City's comprehensive purchasing requirements. Page 2 SUBMITTED BY: NOTED AND APPROVED: e. :11� Robin L: Roberts, City Clerk j'. Ingram, City M.} ger Attachments: A. Proposed Ordinance 1667 B. Ordinance— Legislative Draft C. Referenced Charter Sections D. Contract Submittal Form Page 3 "Attachment A" ORDINANCE NO. 1667 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH AMENDING CHAPTER 3:20 OF TITLE 3 OF THE CODE OF THE CITY OF SEAL BEACH TO UPDATE AND RESTATE THE CITY'S COMPREHENSIVE PURCHASING REQUIREMENTS THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES ORDAIN AS FOLLOWS: Section 1. Findings and Intent. The Charter of the City of Seal Beach directs the City Council to establish a centralized purchasing procedure and system for the acquisition of goods and services necessary for the efficient operation of the City, and the provision of City services. It is the intent of the City Council to-restate and update the purchasing processes and procedures of the City through the adoption of this ordinance. Section 2. Chapter 3.20 of the Code of the City of Seal Beach is hereby amended in its entirety to read as follows (text to be added is underlined, text to be deleted is struck through): "Chapter 3.20 PURCHASING SYSTEM" 3.20.005 Purchasing System Adopted (A) There is hereby adopted a purchasing system in order to establish efficient procedures for the procurement of supplies, equipment and services; to exercise positive financial control over purchases; to clearly define authority for the purchasing function; to conserve public funds through the reduction of costs; and the improvement of the quality of materials, supplies and services from local community vendors where practical and in the best interests of the city. (B) Except as expressly provided herein, the provisions of this chapter shall not cover the expenditure of funds for Public Works projects, which are covered by Sections 1010 and 1010.5 of the Charter of the City of Seal Beach and those provisions of California law directly applicable to California charter cities. ( C ) In cases where the City's use of federal, state, or other governmental sources of funds are contingent on the use, purchasing, bidding, or contracting requirements that are different from those imposed by this Chapter, the Purchasing Officer shall use those procedures as are necessary, in his/her discretion, to comply with any conditions of the funding source as well as any procedures established by this Chapter that do not conflict with, and are more restrictive than, the other agency's requirements. 3.20.010 Purchasing Officer. A. Position Created. There is hereby created in the city government the position of purchasing officer. The city manager shall serve as the purchasing officer except that,with approval of the city council, the city manager may delegate to another officer or employee some or all of the powers and duties of the purchasing officer. B. Powers and Duties. The purchasing officer shall have the following powers and duties: 1. To approve the purchase of,supplies and equipment in accordance with the procedures set forth in this chapter. 2. To negotiate and recommend execution of contracts for the purchase of supplies and equipment. 3. To discourage uniform bidding and endeavor to obtain as full and open competition'as possible on all purchases. 4. To recommend to the city council rules to govern the purchase of supplies and equipment. 5. To keep informed of current developments in the field of purchasing, prices, market conditions and new products. 6. To maintain such forms as reasonably necessary for the implementation of this chapter. 7. To supervise the inspection of all purchased supplies and equipment to ensure conformance with specifications. 8. To maintain a bidders' list, vendors' catalog file, and other records appropriate for the efficient operation of the purchasing department. 9. To procure for the city the highest quality in supplies and contractual services at the least reasonable expense to the city, while taking quality and fitness into account. 10. To direct the transfer of surplus or unused supplies and equipment between departments, as needed. 11. To sell all supplies, equipment and other property of the city which has been declared surplus or which has become unsuitable for city use. 3.20.015 Unauthorized Purchases. It shall be unlawful for any city officer or employee to willfully and intentionally order the purchase of any supplies or make any contract within the purview of this Chapter in violation of the provisions of this Chapter for the purpose of personal gain or to favor any particular vendor or contractor. Any purchase order or contract made contrary to the provisions of this chapter shall not be approved by any city official or officer, and the city shall not be bound thereby. It shall be unlawful for any city officer or employee to intentionally segment orders and/or contracts into smaller units to avoid complying with the requirements of this chapter. 3.20.020 Estimates of Requirements. The head of each department shall file with the purchasing officer detailed estimates of the department's requirements in supplies and equipment. Such filing shall be made at the time and in the manner prescribed by the purchasing officer. 3.20.025 Encumbrance of Funds and Purchase Orders. Except in cases of emergency, the purchasing officer shall not purchase supplies or equipment unlessdhere exists an approved and unencumbered appropriation in the fund account against which such purchase is to be charged. Department requests for normal operating supplies and equipment for which an approved and unencumbered budget allocation exists in the fund account against which the purchase is to be charged may be made by using standardized purchase order forms. Prior to submission to the purchasing officer, each purchase order shall be reviewed and approved by the head of the department making the request. 3.20.030 Purchases Exempt from Bidding Requirements. The following purchases are exempt from the bidding requirements of this chapter: A. Purchases made during a declared emergency from the nearest available source of supply, or as authorized in the Declaration of Emergency. B. Purchases made in preparation for an anticipated local emergency, which requires immediate purchase of supplies or contractual services, in which case the purchasing officer shall be authorized to secure by open market procedure as set forth in this Chapter, at the lowest reasonably obtainable price, any supplies or contractual services regardless of the amount of the expenditure. A full report of the circumstances of an emergency purchase shall be made by the purchasing officer to the City Council at its next regular meeting and shall be entered in the minutes of the Council and shall be open to public inspection. C. Purchases of a service, commodity, or equipment that can be obtained only from one vendor due to proprietary factors, contractual restrictions, licensing, or fitness for a particular use. In such cases, the purchasing department shall document the justification for utilizing the sole source purchasing method and shall obtain prior approval by the purchasing officer before commencing a sole source procurement process. D. Purchases of professional services. Professional services are, by their nature, unique and therefore not subject to competitive bidding requirements. Professional services include, without limitation: Appraiser; Architect; Attorney; Bond Counsel; Certified Building Inspector; Certified Plan Checker; Certified Public Accountant; Chemical Engineer; Chemist; Chiropractor; Civil Engineer; Computer Specialist; Construction Engineer; Consulting Engineer; Dentist; Economic Consultant; Electrical Engineer; Entertainers; Environmental Consultant; Expert.Witness; Financial Consultant; Geologist; Graphic Designer; Health Insurance Providers Consultant; Information Technology Consultant; Instructors; Labor Relations Consultant; Landscape Architect; Licensed Land Surveyor; Lighting Consultant; Lobbyist; Market Feasibility Consultant; Media Consultant; Mechanical Engineer; Planning Consultant;°Public Relations Consultant; Psychologist; Real Property Manager or Consultant; Records Management Consultant; Sanitation Engineer; Soils Engineer; Structural Engineer; Traffic/Transportation Engineer; Training Consultant; Veterinarian; Water Quality Consultant; Website Designer or other specialized,personal.and professional services determined by the Purchasing Officer to be consistent with this definition. When the City Manager or City Council authorizes the hiring of professional services, as defined.herein, forwhichstandard specifications cannot be developed due to the.nature of the service or because of national association bylaws or professional policies prohibiting competitive bidding, the City Manager may authorize officers and/or employees to negotiate for the authorized service. Proposals shall be submitted, whenever practical, from at least three firms-if theexpected cost of service is greater than $10,000. However, recognizing the uniqueness of professional services and the varied qualities presented by differing:.firms, the City Managershall have the authority to determine the necessity and appropriateness of soliciting multiple proposals. The City Manager and Department Directors are authorized to approve and execute professional services contracts with a total not-to-exceed cost of less than the bidding threshold amount established pursuant to Section 3.23.035 of this Code. All contracts for services equal to or exceeding said amount shall be approved by the City Council. E. When the City Council finds by the vote of a majority of its members that negotiation shall best serve the city due to the specialized nature of supplies, equipment, or services, or the time within which it is necessary that the supplies, equipment, or services be obtained. F. When the City seeks to purchase or lease any land, building, or facility. G. When the City makes payments to utility companies or franchise services (i.e. electricity, gas, phone, and internet service, communications, solid waste, or towing). I. Payments for insurance premiums and other liability expenses. J. Purchases of office supplies and event materials (i.e. Staples, Smart and Final, Office Solutions) that are provided for in the approved budget. K. Purchases of authorized travel expenses for official business. L. Purchases of a subscription, dues, trade circular, book, or periodical. M. Purchases of publication of a notice or advertisement in a local newspaper. Notwithstanding the exemption from bidding contained in this section, all monetary thresholds for the award and approval of the contract contained in this Chapter and the City Charter shall still.apply. 3.20.035.Formal Bid Procedure. A. Requirement. Except as otherwise provided in this chapter, purchases of supplies and equipment having an estimated value greater than an amount established at least annually by resolution of the City Council pursuant to Charter Section 1010 shall be made from the lowest responsible bidder pursuant to the procedure set forth in this section. B. Bid Invitation Notice. The bid invitation notice shall describe the articles to be purchased, shall indicate the time and place for bid opening and shall state where bid blanks and specifications may be secured. 1. Published Notice. Bid invitation notices shall be published at least 10 days before the opening of bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the city. If there is no such paper, then notice shall be given by public posting. The purchasing officer may advertise in suitable trade publications and on suitable intemet sites. 2. Bidders' List. The purchasing officer shall also solicit sealed bids fromall responsible prospective vendors whose names are on the bidders' list or who have requested that their names be added thereto. 3. Bulletin Board. The city clerk shall also advertise pending purchases by posting the notice on a public bulletin board at city hall. 4. Bid invitation notices shall be posted on the City's website. C. Bidder's Security. When deemed necessary, the purchasing officer may prescribe bidder's security in the bid invitation notice. The bid security shall be returned to bidders provided, however, that a successful bidder shall forfeit its bid security upon failure to execute the purchase contract within 10 days after mailing of the notice of award of the contract. D. Bid Opening Procedure. The city clerk shall receive only those bids that are sealed and-identified as bids on the envelope. Bids shall be opened in public at the time and place indicated in the bid invitation notice. E. Bid Rejection. In itsabsolute discretion, the city council may reject all submitted bids and direct the purchasing officer to issue a new bid invitation notice. F. Contract Award. The city council shall award the purchase contract to the lowest responsible bidder..If the lowest responsible bidder fails to execute the contract within the allotted time, then the city council may award the contract to the next lowest responsil le bidder. In such event, the bidder's security of the lowest responsible bidder shall be applied to the difference between the low bid and the next lowest bid and any surplus shall be returned to the lowest responsible bidder. G. Tie Bids. If the lowest monetary bid is submitted by multiple responsive bidders, then the city council may award the purchase contract to the lowest responsible bidder that it deems'appropriate. Alternatively, the city council may accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening. H. Performance Bonds. When deemed necessary, the city council may require a performance bond as a condition to the award of a purchase contract. If a performance bond is required,then the form and amount of the bond shall be described in the bid invitation'.notice. 3.20.040 Informal Bid Procedure. A. Requirement. Except as otherwise provided in this chapter, purchases of supplies and equipment'having an estimated value less than the amount established by the City"Council pursuant to Section 3.20.035 A. B. Low Tier Purchases. The purchasing officer may purchase supplies and equipment having an estimated value up to $3,000 by soliciting a price quote from a single vendor. C. Middle Tier Purchases. The purchasing officer may purchase supplies and equipment having an estimated value in excess of$3,000 and up to $10,000 by soliciting verbal bids from at least 3 vendors. The purchase contract shall be awarded to the vendor offering the lowest acceptable quotation. D. High Tier Purchases. The purchasing officer may purchase supplies and equipment having an estimated value in excess of$10,000 and not more than the amount established by resolution pursuant to Section 3.20.035 A by soliciting written bids from at least 3 vendors. The purchase contract shall be awarded to the vendor offering the lowest acceptable quotation. 3.20.045 Inspection and Testing. The purchasing officer shall inspect purchased supplies and equipment to determine their conformance with the specifications set forth in the purchase contract. The purchasing officer may require chemical and physical tests of samples. 3.20.050 Council Authority to Waive Requirements. A. The city council may waive the bidding requirements of this chapter and award a contract for the purchase of supplies and equipment upon making a finding by at least a majority of those voting that, due to the circumstances applicable to the particular purchase, the net cost to the city will be reduced by dispensing with bidding. Such finding shall be set forth in a resolution authorizing the waiver of the bid requirements. B. The city council may award a contract for the purchase of supplies and equipment to other than the lowest responsible bidder upon making a finding that, due to the circumstances applicable to the particular purchase, the-net cost to the city or the overall value to the city will be reduced by selection of a different vendor. Such finding shall be set forth in a resolution authorizing the waiver of the lowest responsible bidder requirement. 3.20.055 Subdivision Prohibited No contract, purchase order, or open market purchase shall be intentionally subdivided into smaller amounts to avoid the requirements of this Chapter, the City Charter, or applicable State law. 3.20.060 Prohibition of Conflict of Interest. Any purchase order or contract within the purview of this chapter in which the Purchasing Officer, or any officer or employee of the city is financially interested, directly or indirectly, shall be void, except that before the execution of a purchase order or contract, the Council shall have the authority to waive compliance with this section when it finds such action to be in the best interests of the city and compliant with applicable state or federal law. 3.20.065 Gifts and Rebates. The Purchasing Officer and every officer and employee of the city are expressly prohibited from knowingly and willfully accepting, directly or indirectly, from any person, company, firm or corporation any gift;reward or rebate, or anything of value whatsoever as a gratuity in exchange for awarding a purchase or contract to the donor, except where given for the use and benefit of the city. Any violation of this section shall constitute a misdemeanor. 3.20.070 Sale of Surplus Property. (A) Surplus personal property. (1) When it is deemed advisable by the Purchasing Officer to dispose of any surplus personal property belonging to the city, the sale of such property shall be made following the principles of open competitive bidding. (2) The Purchasing Officer shall determine the appropriate method for the disposal of surplus personal property, including but not necessarily limited to open competitive formal bid, public auction, or negotiated sale. The Purchasing Officer shall promulgate rules for the sale of surplus personal property. (B) Surplus real property. The sale of surplus city-owned property shall be made pursuant to applicable state law. 3.20.075 Harmless Error or Omission to be Disregarded. No transaction covered by this chapter, or other applicable purchasing, bidding or procurement law, shall be deemed or construed to be void or invalid by reason of inadvertence, mistake, or excusable neglect in failing to comply with the strict letter of said regulations, unless after an examination of the entire transaction and the regulation governing the same, it shall appear that the error or mistake complained of was prejudicial to one of the parties, and that by reason of such error or mistake, the party complaining sustained and suffered substantial injury, and that such injury would not have been probable if such error or mistake had not occurred orlexisted, or the specific law in question requires that the contract be voided. There shall be no presumption that any error or omission is prejudicial, or that injury was done if an error or omission is shown." Section 2. This Ordinance shall take effect thirty (30) days after adoption. The City Clerk is directed to cause this ordinance to be published and/or posted as required by law. INTRODUCED AND APPROVED this 26th day of June, 2017. Sandra Massa-Lavitt, Mayor ATTEST: Robin L. Roberts, City Clerk APPROVED AS TO FORM: Craig A. Steele, City Attorney '<Net 1(4.,"'" di; ssgtct.411§. -.tv ORDINANCE NO. 1667 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH AMENDING CHAPTER 3.20 OF TITLE 3 OF THE CODE OF THE CITY OF SEAL BEACH,'TO UPDATE AND RESTATE THE CITY'S COMPREHENSIVE PURCHASING REQUIREMENTS THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES ORDAIN AS FOLLOWS: Section 1. Findings and Intent. The Charter of the City of Seal Beach directs the City Council to establish a centralized purchasing,procedure and system for the acquisition of goods and services necessary for the efficient operation of the City, and the provision of City services. It is the intent of the City Council,to:restate and update the purchasing processes and procedures of the City through the adoption of this ordinance. Section 2. Chapter 3.20 of the Code of the City of Seal Beach is hereby amended in its entirety to read as follows (text to be added is underlined, text to be deleted is struck through): "Chapter 3.20 PURCHASING SYSTEM 3.20.005 Purchasing System Adopted (A) There is hereby adopted a purchasing system in order to establish efficient procedures for the procurement of supplies, equipment and services;to exercise positive financial control over purchases; to clearly define authority for the purchasing function; to conserve public funds through the reduction of costs; and the improvement of the quality of materials, supplies and services from.local community vendors where practical and in the best interests of the,city. (B) Except as expressly provided herein, the provisions of this chapter shall not cover the expenditure of funds for Public Works projects, which are covered by Sections 1010 and 1010.5 of the Charter of the City of Seal Beach and those provisions of California law directly applicable to California charter cities. ( C ) In-cases where the City's use of federal, state, or other governmental sources of funds are contingent on the use, purchasing, bidding, or contracting requirements that are different from those imposed by this Chapter, the Purchasing OfficerManager shall use those procedures as are necessary, in his/her discretion, to comply with any conditions of the funding source as well as any procedures,established by this Chapter that do not conflict with, and are more restrictive than, the other agency's requirements. 3.20.01005 Purchasing Officer. A. Position Createdion. There is hereby created in the city government the position of purchasing officer. The city manager shall serve as the purchasing officer except that, with approval of the city council, the city manager may delegate to another officer or employee some or all of the powers and duties of the purchasing officer. B. Powers and Duties. The purchasing officer shall have the following powers and duties: 1. To approve the purchase of supplies and equipment in accordance with the procedures set.forth in this chapter. 2. To negotiate and recommend execution of contracts for the purchase of supplies and equipment. 3. To discourage uniform bidding and endeavor to obtain as full and open competition.as possible on all purchases. 4. To recommend to the city council rules to govern the purchase of supplies and equipment. 5. To keep informed of current developments in the field of purchasing, prices, market conditions and new products. 6. To maintain such forms as reasonably necessary for the implementation of this chapter. 7. To supervise the inspection of all purchased supplies and equipment to ensure conformance with specifications. 8. To maintain a bidders' list, ve egvendors' catalog files and other records appropriate for the efficient operation of the purchasing department. (Ord. 1515) 94-0. To procure for the city the highest quality in supplies and contractual services at the least reasonable expense to the city, while taking quality and fitness into account. 104-. To direct the transfer of surplus or unused supplies and equipment between departments, as needed. 112. To sell all supplies,.equipment and other property of the city which has been declared surplus or which has become unsuitable for city use. 3.20.015 Unauthorized Purchases. It shall be unlawful for any city officer- or employee to willfully and intentionally order the purchase of any or make any contract within the purview of this eChapter in violation of the provisions of this eChapter for the purpose of personal gain or to favor any particular vendor or contractor. Any purchase order or contract made contrary to the provisions of this chapter shall not be approved by any city official or officer, and the city shall not be bound thereby. It shall be unlawful for any city officer or employee to intentionally segment orders and/or contracts into smaller units to avoid complying with the requirements of this chapter. 3.20.0200 Estimates of Requirements. • The head of each department shall file with the purchasing officer detailed estimates of the department's requirements in supplies and equipment. Such filing shall be made at the time and in the;mannerprescribed by the purchasing officer. (Ord. 1515) 3.20.02015 n.rehase Orde order forms.Prior to submission to the purchasing officer, each purchase order shall be reviewed and approved by the hgad of the department making the request. (Ord. 1515) 3.20.0250 Encumbrance of Funds and.Purchase Orders. Except incases of emergency, the purchasing officer shall not purchase supplies or equipment unless there exists an approved and unencumbered appropriation in the fund account against which such purchase is to be charged. Department requests for normal operating supplies and equipment for which an approved and unencumbered budget allocation exists in the fund account against which the purchase is to be charged may be made by using standardized purchase order forms. Prior to submission to the purchasing officer, each purchase order shall be reviewed and approved by the head of the department making the request. (Ord. 1515) 3.20.030 Purchases Exempt from Bidding Requirements. The following purchases are exempt from the bidding requirements of this chapter: A. Purchases made during a declaredn emergency from the nearest available source of supply, or as authorized in the Declaration of Emergency. B. Purchases made in preparation for an anticipated local emergency, which requires immediate purchase of supplies or contractual services, in which case the purchasing Officer shall be authorized to secure by open market procedure as set forth in this eChapter, at the lowest reasonably obtainable price, any supplies or contractual services regardless of the amount of the expenditure. A full report of the circumstances of an emergency purchase shall be made by the purchasing officer to the City Council at its next regular meeting and shall be entered in the minutes of the Council and shall be open to public inspection. HC. Purchases of a service, commodity, or equipment that can be obtained only from one vendor due to proprietary factors, contractual restrictions, licensing, or fitness for a particular use. In such cases, the purchasing department shall document the justification for utilizing the sole source purchasing method and shall obtain prior approval by the purchasing officer before commencing a sole source procurement process. ED. Purchases of professional services. Professional services are,by their nature, unique and therefore not subject to competitive bidding requirements. Professional services include, without limitation: Appraiser; Architect; Attorney; Bond Counsel; Certified Building Inspector; Certified Plan Checker; Certified Public Accountant; Chemical Engineer; Chemist; Chiropractor; Civil Engineer; Computer Specialist; Construction Engineer; Consulting Engineer; Dentist; Economic Consultant; Electrical Engineer; Entertainers; Environmental Consultant; Expert Witness; Financial Consultant; Geologist; Graphic Designer; Health Insurance Providers Consultant; information Technology Consultant; Instructors; Labor Relations Consultant; Landscape Architect; Licensed Land Surveyor; Lighting Consultant; Lobbyist; Market Feasibility Consultant;:Media Consultant;Mechanical Engineer; Planning Consultant;Public Relations.Consultant; Psychologist; Real Property Manager or Consultant; Records Management Consultant;-Sanitation'Engineer; Soils.Engineer;Structural Engineer; Traffic/Transportation Engineer; Training Consultant; Veterinarian; Water Quality Consultant; Website Designer or other specialized personal and professional services determined by the Purchasing Officer to be consistent with this definition. When the City Manager or City Council authorizes the hiring of professional services, as defined herein, for which standard specifications cannot be developed due to the nature of the service or because of national association bylaws or professional policies prohibiting competitive bidding, the City Manager may authorize officers and/or employees to negotiate for the authorized service. Proposals shall be submitted, whenever practical, from at least three firms if the expected cost of service is greater than $10,000. However, recognizing the uniqueness of professional services and the varied qualities presented by differing firms, the City Manager shall have the authority to determine the necessity and appropriateness of soliciting multiple proposals. The City Manager and Department Directors are authorized to approve and execute professional services contracts with an total not-to-exceed cost of less than the bidding threshold amount established pursuant to Section 3.23.035 of this Code. All contracts for services equal to or exceeding said amount shall be approved by the City:Council. election_services; engineering services; insurance services; legal services; public relations sery ices; real estate services; and solid waste disposal services. ED. When the City Council finds by the vote of a majority of its members that negotiation shall best serve the city due to the specialized nature of supplies, equipment, or services, or the time within which it is necessary that the supplies, equipment, or services be obtained. (F€4 When the City seeks to purchase or lease any land, building, or facility. (FG) When the City makes payments to utility companies or franchise services (i.e. electricity, gas, phone, and internet.service, communications, solid waste, or towing). 0G4 Payments for insurance premiums and other liability expenses. 0K4 Purchases of for office supplies and event-materials (i.e. Staples, Smart and Final, OfficeSolutions) that are provided for in the approved budget. (Kb3 Purchases of authorized travel expenses for official business. fLM4 Purchases of a subscription, dues, trade circular, book, or periodical. 0MN4 Purchases of publication of a notice or advertisement in a local newspaper. Notwithstanding the exemption from bidding contained in this section, all monetary thresholds for the award and.approval of the contract contained in this eChapter and the City Charter shall still apply. Purchases made in cooperation with the state, the county or another government entity for the .. .. . • . . .. - - -- ; . . • • . • . (Ord. 1515) 3.20.035 Formal Bid Procedure. A. Requirement..Except as otherwise provided in this chapter, purchases of supplies and equipment having an estimated value greater than $20,009- an amount es-established at least annually by resolution of the City Council pursuant to Charter Section 1010 shall be,niade from the lowest responsible bidder pursuant to the procedure set forth in this section. B. Bid Invitation Notice..The bid invitation notice shall describe the articles to be purchased, shall indicate the time and place for bid opening and shall state where bid blanks and specifications may be secured. 1. Published Notice. Bid invitation notices shall be published at least 10 days before the opening of bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the_city. If there is no such paper, then notice shall be given by public posting. The purchasing officer may advertise in suitable trade publications and on suitable internet sites. 2. Bidders' List. The purchasing officer shall also solicit sealed bids from all responsible prospective vendors whose names are on the bidders' list or who have requested that their names be added thereto. 3. Bulletin Board. The city clerk putehasing-effieer-shall also advertise pending purchases by posting the notice on a public bulletin board at city hall. 4. Bid invitation notices shall be posted on the City's website. C. Bidder's Security. When deemed necessary, the purchasing officer may prescribe bidder's security in the bid invitation notice. _The bid security shall be returned to bidders provided, however, that a successful bidder shall forfeit its bid security upon failure to execute the purchase contract within 10 days after mailing of the notice of award of the contract. D. Bid Opening Procedure. The city clerk purchasing officer shall receive only those bids that are sealed and identified as bids on the envelope._Bids shall be opened in public at the time and place indicated in the bid invitation notice. E. Bid Rejection. In its absolute discretion, the city council may reject all,submitted bids and direct the purchasing officer to issue a new bid invitation notice. F. Contract Award. The city council shall award the purchase contract to the lowest responsible bidder. If the lowest responsible bidder fails to execute the contract within the • allotted time,•then the city council may award the contract to the next lowest responsible bidder. In such event, the bidder's security of the lowest responsible bidder shall be applied to the difference between the low bid and the next lowest bid'and any surplus shall be returned to the lowest responsible bidder. G. Tie Bids. If the lowest monetary bid is submitted by multiple responsive bidders, then the city council may award the purchase contract to the lowest responsible bidder that it deems appropriate. Alternatively,the city council may accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening. H. Performance Bonds. When deemed necessary, the city council may require a performance bond as a condition to the award of a purchase contract. If a performance bond is required, then the form and amount of the bond shall be described in the bid invitation notice. (Ord. 1515) 3.20.040 Informal Bid Procedure. A. Requirement. Except as otherwise provided in this chapter, purchases of supplies and equipment having an estimated value less than the amount established by the City'Council pursuant to Section 3.20.035 A$2980, . r . . . • - • . .. . .. . . applicable procedure set forth in this section. B. Low Tier Purchases. The purchasing officer may purchase supplies and equipment having an estimated value up to not more than $3-1.,000 by soliciting a price quote from a single vendor. C. Middle Tier Purchases. The purchasing officer may purchase supplies and equipment having an estimated value in excess of$3-1,000 and up to not more than $310,000 by soliciting verbal bids from at least 3 vendors. The purchase contract shall be awarded:to the vendor offering the lowest acceptable quotation. D. High Tier Purchases. The purchasing officer may purchase supplies and equipment having an estimated value in excess of$510,000 and not more than the amount established by resolution pursuant to Section 3.20.035 A-$20,000 by soliciting written bids from at least 3 vendors. The purchase contract shall be awarded to the vendor offering the lowest acceptable quotation. (Ord. 1515) 3.20.045 Inspection and Testing. The purchasing officer shall inspect purchased supplies and equipment to determine their conformance with the specifications set forth in the purchase contract. _The purchasing officer may require chemical and physical tests of samples. (Ord. 1515) 3.20.050 Council Authority to Waive Requirements. A. The city council may waive the bidding requirements of this chapter and award a contract for the purchase of supplies and equipment • :. . - :.• - of this chapter upon making a finding by at least a majority of those voting that,due to the circumstances applicable to the particular purchase, the net cost to the city will be reduced by I dispensing with,bidding. Such finding shall be set forth in a resolution authorizing the waiver of the bid requirements. B. The city council may award a contract for the purchase of supplies and equipment • to other than the lowest responsible bidder upon making a finding that, due to the circumstances applicable to the particular purchase, the net cost to the city or the overall value to the city will be reduced by selection of a different vendor. Such finding shall be set forth in a resolution authorizing the waiver of the lowest responsible bidder requirement. (Ord. 1515) 3.20.055 Subdivision Prohibited No contract, purchase order, or open market purchase shall be intentionally subdivided into smaller amounts to avoid the requirements of this Chapter,the City Charter, or applicable State law. 3.20.060 Prohibition of Conflict of-Interest. Any purchase order or contract within the purview of this chapter in which the Purchasing Officer, or any officer or employee of the city is financially interested, directly or indirectly, shall be void, except that before the execution of a purchase order or contract, the Council shall have the authority to waive compliance with this section when it finds such action to be in the best interests of the city and compliant with applicable state or federal law. 3.20.065 Gifts and Rebates. The Purchasing Officer and every officer and employee of the city are expressly prohibited from knowingly and-willfully accepting, directly or indirectly, from any person, company, firm or corporation.any gift, reward or rebate, or anything of value whatsoever as a gratuity in,exchange for awarding a purchase or contract to the donor, except where given for the use and benefit of the city. Any violation of this section shall constitute a misdemeanor. 3.20.070 Sale of Surplus Property. (A) Surplus personal property. (1) When it is deemed advisable by the Purchasing Officer to dispose of any surplus personal property belonging to the city, the sale of such property shall be made following the principles of open competitive bidding. (2) The Purchasing Officer shall determine the appropriate method for the disposal of surplus personal property, including but not necessarily limited to open competitive formal bid, public auction, or negotiated sale. The Purchasing Officer shall promulgate rules for the sale of surplus-personal property. (B) Surplus real property. The sale of surplus city-owned property shall beimade pursuant to-applicable state law. 3.20.075 Harmless Error or Omission to be Disregarded. • No transaction coveredby this chapter,or other applicable purchasing, bidding or procurement law, shall be deemed or construed to be void or invalid by reason of inadvertence, mistake, or excusable neglect in failing to comply with the strict letter of said regulations, unless after an examination of the-entire transaction and the regulation governing the same, it shall appear that the error of mistake complained of was prejudicial to one of the parties, and that by reason of such error or mistake, the party complaining sustained and suffered substantial injury, and that such injury would not have been probable if such error or mistake had not occurred or+existed, or the specific law in question requires that the contract be voided. There shall be no presumption that any error or omission is prejudicial, or that injury was done if an error or omission is shown." Section 2. This Ordinance shall take effect thirty (30) days after adoption. The City Clerk is directed to cause this ordinance to be published and/or posted as required by law. PASSED, APPROVED AND ADOPTED this 26th day of June, 2017. Sandra Massa Lavitt,Mayor ATTEST: Robin L. Roberts, City Clerk APPROVED AS TO FORM: Craig A. Steele, City Attorney Att 't 5ra nt "C" Attachment C - Seal Beach Charter Citation Reference SECTION 420. Contracts. Execution. The City shall not be bound by any contract, except as hereinafter provided, unless the same shall be made in writing, approved by the CityCouncil.and signed on behalf of the City by the Mayor and City Clerk,or by such other officer or officers as shall be designated by the City Council. Any of said officers shall sign a contract on behalf of the City when directed to do so by the City Council. By ordinance or resolution the City Council may authorize the City Manager to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services or other items included within the budget approved by the City Council, and may impose a monetary limit upon such authority. The City Council may by ordinance or resolution provide a method for the sale or exchange of personal property not needed in the City Service or not fit for the purpose for which intended and for the conveyance of title thereto. Contracts for the sale of products, commodities or services of any public utility owned, controlled or operated by the City may be made by the Manager of such utility or by the head of the department or City Manager upon forms approved by the City Manager and at rates fixed by the City Council. The provision of this Section shall not apply to the services rendered by any person in the employ of the City at a regular salary. SECTION 1006. Centralized Purchasing. Under the control and direction of the City Manager there shall be established a centralized purchasing system for all City departments and agencies, except as otherwise in this Charter provided. SECTION 1010. Contracts on Public Works. The City Council shall adopt policies and procedures governing contracting for public works which are defined to include the construction or improvement of public buildings, works, streets, drains, sewers, utilities, parks or playgrounds. The City Council may, in its sole discretion, adopt selected policies and procedures by reference to state law, but no state law shall govern public works contracting unless it is expressly adopted by the City Council or has been finally determined to be applicable to all charter law cities by an appellate court with jurisdiction.over the City of Seal Beach. Except as otherwise provided in this Charter or by state law made applicable to the City of Seal Beach, the City Council shall award to the lowest responsible bidder each contract involving an expenditure of more than the bidding threshold amount (as defined in this Section) for the construction or improvement of public works or for the purchase of supplies or materials for any such project. Bids shall be solicited via notice by publication in the official newspaper by one or more insertions, the first of which shall be at least ten (10) days before the time for opening bids and such other forms of notice as the City Council may direct. Public Works are exempted from the requirements of this Section where the work will be performed by a City or County of Orange department. All bids may be accompanied by either a certified or cashier's check, or a bidder's bond executed by a corporate surety Attachment C - Seal Beach Charter Citation Reference authorized to engage in such business in California, made payable to the City. Such security shall be in an amount not less than that specified in the notice inviting bids or in the specifications referred to therein, or if no amount be so specified then in an amount not less than ten percent (10%) of the aggregate amount of the bid. If the successful bidder neglects or refuses to enter into the contract, within the time specified in the notice inviting bids or in the specifications referred to therein, the amount of his bidder's security shall be declared forfeited to the City and shall be collected and paid into its general fund, and all bonds so forfeited shall be prosecuted and the amount thereof collected and paid into such fund. The City Council may reject any and all bids presented and may re-advertise in its discretion. The City Council, without advertising for bids, or after rejecting bids, or if no bids were received, may declare and determine that in its opinion, based on estimates approved by the City Manager, the work in question may be performed better or more economically by the City with its own employees or the supplies or materials may be purchased more economically on the open market. Contracts likewise may be let without advertising for bids, if such work, supplies or materials shall be deemed by the City Council to be of urgent necessity for the preservation of life, health, or property. In either event, the Council shall adopt a resolution with findings supporting the letting of a contract without advertising'for bids by at least three (3) affirmative votes of the Council, after which the City may proceed to have such work done or said supplies and materials purchased in the manner stated, without further observance of the provisions of this Section. The bidding threshold amount shall be Twenty Thousand Dollars ($20,000) initially, and shall annually be adjusted by the City Engineer upon confirmation by the City Council. On June 1st of each year, the City Engineer shall compute the percentage difference between the current Engineering News Record Construction Cost Index — 20 City Average (ENR) and the ENR for the previous June 1st. The City Engineer shall adjust the bidding threshold amount by such percentage, rounding to the nearest dollar. The City Council shall review such adjustment at a public hearing and upon Council confirmation; the bidding threshold amount shall be the adjusted figure. Should the ENR be revised or discontinued, the City Engineer shall use the revised index or a comparable index approved by the City Council. Attachment "0" of SEAL 1`J __F_ City of Seal Beach Contract Transmittal Form Contractor/Consultant : Description of Services: Commencement Date: Termination Date: Contract Amount: $ Budget Account No.: Dept. Head Approval: Submitting Dept./Staff Contact: (Submitting Department has verified that Licenses&Bonds are current and in compliance with City,State and Federal regulations.) Please initial the attached, where indicated and return to the City Clerk. When the contract is fully executed the City Clerk will return either a duplicate original or a copy to the submitting department and will send a copy to contractor/consultant if requested. Route To: ❑ Finance Department ❑ Risk Management - Insurance Requirements: = Identified Funding Source I I Commercial/General Liability i. I Auto Liability = Council Approved Appropriation I 1 Professional/Errors and Omissions C Completed P.O. Requisition I I Worker's Compensation I I W-9 CI Additional Insured Endorsement Verified by Initials/Date 0 Public Works Contract—all insurance above i Verified by Initials/Date ❑ Business Licensing ❑ City Clerk l C Bus. License Required Approved by Council on: I I No License Required 0 Not Approved by Council If yes, License#and expiration date (Please reference/cite approval authority) I I Approved as to Form by City Attorney Verified by Initials/Date City Clerks Initials/Date 1 ❑ City Manager C Approved Denied I 1 700 Form Needed C Returning to Submitting Dept. Notes: Verified by Initials/Date t