4800 West 92nd Avenue Westminster, CO 80031

City Government

 

1. Purchasing Procedures

PDF version

09/13 

CHAPTER 1
PURCHASING PROCEDURES

15-1-1: APPLICATION AND DEFINITIONS
15-1-2: GENERAL REQUIREMENTS
15-1-3: PROHIBITION OF FINANCIAL INTEREST
15-1-4: FORMAL BIDDING REQUIRED
15-1-5: FORMAL BIDDING PROCEDURES AND SELECTION CRITERIA
15-1-6: COMPARATIVE PRICE QUOTATIONS
15-1-7: AMENDMENTS TO PURCHASE AGREEMENTS
15-1-8: PROHIBITION AGAINST SUBDIVISION
15-1-9: RULES AND ADMINISTRATIVE PROCEDURES
15-1-10: PREQUALIFICATION OF BIDDERS
15-1-11: ACQUISITION OF REAL PROPERTY REMAINDERS RELATED TO PUBLIC PROJECTS
15-1-12: ACQUISITION OF WATER RIGHTS

15-1-1:  APPLICATION AND DEFINITIONS:  (2138 3692)

A.  This Chapter shall apply to every purchase agreement to which the City is a party.

B.  The following terms shall be given the following meanings:

"Authorized expenditure" means the amount of spending approved by City Council action for a specific purchase agreement, including any authorized contingency amount, which may difer from the budgeted amount and from the purchase agreement amount.  For amounts that do not exceed seventy-five thousand dollars ($75,000) "authorized expenditure" means the amount of spending approved by the City Manager, including any authorized contingency amount, which may differ from the budgeted amount and from the purchase agreement amount.

"Bids" means either bids or proposals submitted in response to a written invitation for bids or a written request for proposals.

"City Manager" means the City Manager and the City Manager's designedd.

"Employee service" means all compensation and benefits, including insurange, provided by the City as an employer to its employees.

"Professional services" means architectural, engineering, legal, consulting or other services that involve primarily the furnishing of skilled labor, time or expertise.

"Purchase agreement" means purchase orders and contracts for the purchase of construction, professional services, or other services, or for the purchase of real estate.

"Purchase order" means the City's standard computerized form used to purchase services, materials, equipment, supplies, goods, or commodities, and includes the City's standard purchase order terms and conditions, as well as transactions made using a City issued purchase card.

15-1-2:  GENERAL REQUIREMENTS:  (2138 2960 3692)

(A)  Every purchase agreement shall be evidenced by a written contract or by a purchase order.

(B) A purchase agreement for materials, equipment, supplies or professional services to be provided on an ongoing basis shall contain a maximum amount payable under the agreement or a termination date for the agreement.

(C)  A purchase agreement  in an amount that does not exceed the City Manager's purchasing authority, hereby set at seventy-five thousand dollars ($75,000) or less, may be approved by the City Manager without separate Council action.

(D)  Before any purchase agreement in an amount that exceeds seventy-five thousand dollars ($75,000) is executed, the City Manager shall certify that an appropriation has been made or that other sufficient funds such as bond proceeds, special assessments, or matching funds will be available to pay the amounts required in the purchase agreement.  This subsection shall not apply to an individual agreement of employment with an employee or officer of the City.

(E)  No purchase agreement may be entered into with any person, firm or corporation in default to the City.

(F)   City Council Review.  Every purchase agreement in an amount that exceeds seventy-five thousand dollars ($75,000) in one fiscal year, regardless of form, shall be presented to City Council so that Council may approve the authorized expenditure.  However, the purchase of utilities, postage, or employee services need not be approved by express action, but shall be conswidered an authorized expenditure if the budget appropriation has been approved.

(G) City Attorney Review.  Every purchase agreement, excluding purchase orders, shall be submitted to the City Attorney and approved as to legal form and content before it is executed.  This subsection shall not apply to an individual agreement of employement with an employee or officer of the City. 
 
15-1-3:  PROHIBITION OF FINANCIAL INTEREST:  (2138 3692)  Every officer and employee of the City is expressly prohibited from knowingly:

A.  Seeking or accepting any personal gift or money rebate, directly or indirectly, from any person, company, firm or corporation in connection with a purchase agreement;

B.  Underestimating or exaggerating requirements to a prospective bidder for the purpose of influencing bids;

C.  Misrepresenting the quality of a bidder's products or services;

D.  Influencing the City to enter into a purchase agreement  that will benefit the officer or employee either directly or indirectly.

E.  Approving a purchase involving an amount in excess of one hundred dollars ($100) in which any elective or appointive officer of the City or member of the officer's family has a pecuniary interest, as defined in Section 5.12 of the City Charter, without the unanimous approval of all members of the City Council.

15-1-4:  FORMAL BIDDING REQUIRED:  (2138 2960 3061 3692)

(A)  Formal bidding procedures shall be followed when the amount of a purchase exceeds thirty thousand dollars ($50,000), unless:

     1.  City Council determines by unanimous resolution of those present at the meeting that the public interest will be best served by joint purchase with or from another unit of government, or

     2.  City Council determines, upon recommendation of the City Manager, that the public interest will be best served by negotiated contract with a single vendor or contractor. or

(B)  When the amount of the purchase does not ecxeed fifty thousand dollars ($50,000), formal bidding is not required and the procedures in Section 15-1-6, W.M.C., for comparative price quotes apply.

(C)  Formal bids must be obtained every three (3) years except with permission from the City Manager.

(D) In case of emergency affecting the public peace, health or safety, City Council may waive all requirements for formal bidding.  In such cases, the City Manager may direct the appropriate department head to procure emergency needs by informal, open-market procedures, at no more than commercial prices, as expeditiously as possible.  The City Manager shall present a full report of the circumstances necessitating the emergency action at the next City Council meeting.

15-1-5:  FORMAL BIDDING PROCEDURES AND SELECTION CRITERIA:  (2138 2960 3692)

(A) When formal bidding is required pursuant to Section 15-1-4, W.M.C., unless prequalification of bidders applies pursuant to Section 15-1-10, W.M.C., at least five (5) days prior to the deadline for receipt of bids, a request or invitation for sealed bids shall be published at least once in an area newspaper selected for maximum impact on prospective bidders, or shall be sent to three (3) or more potential bidders or shall be posted via electronic solicitation. 

(B)  A bid bond or deposit shall be required when deemed necessary by the City Manager.  If a bid is not accepted or a bidder is unsuccessful, the bid bond or deposit shall be refunded.  When a bid is awarded, but the successful bidder fails to enter into a purchase agreement within ten days of the award, the bid bond or deposit shall be forfeited.

(C)  Sealed bids shall be opened in public at the time and place stated in the public notice, unless all bidders have been notified of a change in such time or place by written addendum.  A tabulation of all bids received shall be available for public inspection.  Bids for professional services are exempt from this requirement.
 
(D)  After the bids have been reviewed, if the purchase will exceed the City Manager's purchasing authority, the City Manager shall submit a report to City Council that contains an analysis of the bids, a recommendation for an award and the reasons for the recommendation.  The purchase agreement shall be awarded to the lowest, responsible bidder meeting the bid specifications unless City Council determines that, after reviewing the City Manager's report, the public interest would be better served by accepting another  bid.  If the purchase will not exceed the City Manager's purchasing authority, the City Manager shall make the required analysis and decision.

(E)  In determining whether the public interest would be better served by accepting a bid other than the lowest bid, the following factors shall be considered:

      (1)  The bidder's skill, ability, and capacity to perform the services or to furnish the materials, equipment or supplies required;

      (2)  Whether the bidder can perform the services or furnish the materials, equipment or supplies promptly, or within the time period specified, without delay or interference;

      (3)  The bidder's character, integrity, reputation, judgment, experience and efficiency;

      (4)  The quality of the bidder's performance of previous purchase agreements;

      (5)  The bidder's previous and current compliance with statutes, ordinances and rules relating to the purchase;

      (6)  The sufficiency of the bidder's financial resources necessary for the performance of the purchase agreement;

      (7)  The bidder's ability to provide future maintenance or service;

      (8)  The number and nature of any conditions attached to the bid;

(F)  If the purchase will exceed the City manager's purchasing authority, upon recommendation of the City Manager, the City Council may reject all bids when it determines that such action is in the public interest.  If the purchase will not exceed the City Manager's purchasing authority, the City Manager may reject all bids upon making the same determination.

15-1-6:  COMPARATIVE PRICE QUOTATIONS:  (2138 2960 3692)

(A)  When the amount of a purchase does not exceed fifty thousand dollars ($50,000), comparative price quotes given by telephone, in person, or in writing from at least three (3) vendors or contractors will be required, unless:

      (1)  The City Manager determines that the public interest would be best served by negotiated contract with a single vendor or contractor or by joint purchase with or from another unit of government, or

      (2)  The City Manager determines that the public interest would be best served by obtaining the goods or services through a formal bidding process.

(B)  Comparative price quotes must be obtained every three (3) years except with permission from the City Manager.
 
15-1-7:  AMENDMENTS TO PURCHASE AGREEMENTS:  (2138 2960 3692)

(A)  The City Manager shall have authority to approve an amendment to a purchase agreement when the original purchase agreement combined with the amendment does not exceed seventy-five thousand dollars ($75,000), or when the amendment does not cause the purchase agreement to exceed City Council's authorized expenditure for the purchase agreement.  Even when no Council approval is required, change orders to construction purchase agreements must be reported to City Council.

(B)  All other amendments to a purchase agreement previously approved by City Council shall be approved or ratified by City Council.

15-1-8:  PROHIBITION AGAINST SUBDIVISION:  (2138)  No single purchase transaction shall be subdivided for the purpose of circumventing the dollar value limitations of this Chapter.

15-1-9:  RULES AND ADMINISTRATIVE PROCEDURES:  (2138)  The City Manager is authorized to promulgate rules and administrative procedures to implement the provisions of this Title.

15-1-10:  PREQUALIFICATION OF BIDDERS:  (2340 2960 3692)

(A)  The City Manager may prequalify bidders to bid on certain construction projects for the City when he determines that it is in the best interest of the City and:

1.  The particular construction project requires:

      (a) Complex or unusual construction techniques or expertise; or

      (b) An unusually tight construction time; or

      (c) Experience in a construction field not generally held by others; or

2.  The construction project has a projected budget of five hundred thousand dollars ($500,000) or more, excluding design and related architectural/engineering tasks.

(B)  If the City Manager determines that a specific project will require prequalification of bidders according to subsection (A) above, an invitation for pre-qualification will be issued in the same manner as is required for a request or invitation for sealed bids by Section 15-1-5(A), W.M.C., herein; a determination as to which bidders are prequalified shall be made according to subsection (C) below; and no bids will be accepted from any bidder who has not been prequalified. 

(C)  when reviewing responses to invitations for prequalification, the City may consider the following factors:

(1)  Availability of equipment necessary to accomplish the project;

(2)  Availability of trained personnel to accomplish the project;

(3)  Potential bidder's organization and technical staff with the size, training, experience and capability to accomplish the project;

(4)  Financial capability to perform the project;

(5)  Demonstrated experience in the type of work required for the project;

(6)  Satisfactory performance of similar projects, including but not limited to, compliance with all terms and specifications, satisfactory quality of workmanship, and consistent on-time performance;
 
(7)  Whether the potential bidder  is in any jurisdiction under notice of debarment or debarred;

(8)  Whether the potential bidder has made false, deceptive or fraudulent statements in the application for prequalification or any other information submitted to the City;

(9)  Listing of all projects of the type and size for which prequalification is sought, or projects similar to it, performed by potential bidder within the last five (5) years, with name, address, and phone number of owner's representative on each project;

(10)  Any additional criteria necessary to determine qualification for the specific project; and

(11)  Statement of understanding that the City or City's agent will check any or all previous projects for evidence of quality of workmanship, compliance with contract terms, timeliness and other factors indicating ability to perform the project; and

(12) Potential bidder's prequalified status with an authority or agency acceptable to the City.

(D)  A decision not to prequalify a potential bidder is final and may not be appealed.

15-1-11:  ACQUISITION OF REAL PROPERTY REMAINDERS RELATED TO PUBLIC PROJECTS:  (2374)  Whenever a part of a parcel of land is to be taken for public purposes and the remainder is to be left in such shape or condition as to be of little value to its owner or to give rise to claims or litigation concerning severance or other damage, the City may acquire by purchase or condemnation the whole parcel.  The City may sell or lease the remainder of said parcel or may exchange the same for other property needed for public purposes.

15-1-12:  ACQUISITION OF WATER RIGHTS:  (3442 3692)  Notwithstanding any other requirements of this Chapter, the City Manager is authorized to acquire water rights, through direct purchase or otherwise, without specific Council pre-authorization prior to such purchase, provided that the City Manager:

(A) Ascertains the value and benefit of such water rights by means of an appropriate engineering study, if necessary; and

(B) Determines that an expedited acquisition of such rights is necessary to preserve the health, safety and welfare of the citizens of Westminster; and

(C) Finds that adequate funds have previously been appropriated for such acquisition; and

(D) Provides a written report to the City Council advising the Council of any such purchase within twenty (20) days of the acquisition.

 

 

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