1. Purchasing Procedures
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12/08 15-1-1 15-1-2
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)
A. This Chapter shall apply to every purchase agreement to which the City is a party.
B. The term "City Manager" includes the City Manager's designee.
C. The term "purchase agreement" means an agreement for the purchase of materials, equipment, supplies, personal services, or real estate.
D. The term "personal services" includes construction, architectural, engineering, legal, consulting or other services which involve primarily the furnishing of labor, time or expertise.
E. The term "bids" means either bids or proposals submitted in response to a written invitation for bids or a request for proposals.
15-1-2: GENERAL REQUIREMENTS: (2138 2960)
A. Every purchase agreement shall be evidenced by a written contract or by a standard written or computerized purchase order.
B. Every purchase agreement in an amount which exceeds fifty thousand dollars ($50,000) shall be approved or ratified by City Council. An agreement for the purchase of utilities, postage, or employee services need not be approved by express action, but shall be considered approved by City Council if the budget appropriation for such purchase has been approved.
C. A purchase agreement for materials, equipment, supplies or personal services to be provided on an ongoing basis shall contain a maximum amount payable under the agreement or a termination date for the agreement.
D. A purchase agreement in an amount of fifty thousand dollars ($50,000) or less shall be approved by the City Manager.
E. A purchase agreement shall be submitted to the City Attorney and approved as to legal form and content before it is executed whenever the agreement is for the purchase of (1) personal services, (2) real estate, including leases, easements, or other real property interests, or (3) supplies, equipment or materials in an amount exceeding $50,000. This subsection (E) shall not apply to an employment agreement with an employee or officer of the City.
F. Before any purchase agreement in an amount of $50,000 or more 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 agreement.
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15-1-3: PROHIBITION OF FINANCIAL INTEREST: (2138) 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 which 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)
A. Formal bidding procedures shall be followed when the amount of a purchase exceeds thirty thousand dollars ($30,000), 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
3. The amount of the purchase is fifty thousand dollars ($50,000) or less and
(a) The City Manager determines that the public interest will be best served by joint purchase with or from another unit of government, or
(b) The City Manager determines that the public interest will be best served by negotiated contract with a single vendor or contractor.
B. When the amount of the purchase is thirty thousand dollars ($30,000) or less, the procedures in section 15-1-6 shall apply.
C. 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)
A. An invitation for bids or request for proposals shall be published at least once in an area newspaper selected for maximum impact on prospective bidders or shall be sent to three or more potential vendors or contractors or posted via electronic solicitation at least five days prior to the deadline for receipt of bids or proposals.
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 contract within ten days of the award, the bid bond or deposit shall be forfeited.
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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.
D. After the bids have been reviewed, the City Manager shall submit a report to City Council which contains an analysis of the bids, a recommendation for an award and the reasons for the recommendation. The purchase shall be awarded to the lowest, responsible bidder meeting the bid specifications unless City Council determines, after reviewing the City Manager's report, that the public interest would be better served by accepting a higher bid.
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 personal 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. Upon recommendation of the City Manager, the City Council may reject all bids when it determines that such action is in the public interest.
15-1-6: COMPARATIVE PRICE QUOTATIONS: (2138 2960)
A. When the amount of a purchase is thirty thousand dollars ($30,000) or less, comparative price quotations shall be obtained, 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. When required, comparative price quotations shall be obtained from at least three vendors or contractors by telephone, in person, or by written document.
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15-1-7: AMENDMENTS TO PURCHASE AGREEMENTS: (2138 2960)
A. The City Manager shall have authority to approve an amendment to a purchase agreement when the amount of the amendment does not exceed five percent of the original agreement or fifty thousand dollars ($50,000), whichever is greater, and the amount of the cumulative amendments does not exceed ten percent of the original agreement or fifty thousand dollars ($50,000), whichever is greater. Amendments, or change orders, to agreements for the purchase of construction services shall be reported to City Council.
B. All other amendments to a purchase agreement 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)
(A) The City Manager or designee is hereby authorized to prequalify contractors who wish to bid on a construction project for the City. The City Manager may exercise this authority when he determines that it is in the best interest of the City and:
1. A particular contract for construction 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 general contractors; 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) When the City Manager or designee has determined that a specific project requires prequalification of bidders, no bids will be received from any person or firm who has not been prequalified.
(C) In order to be considered for prequalification for such construction project, potential bidders shall furnish to the City evidence of the following and, when checking references, the City may ask about the following:
1. Availability of equipment necessary to accomplish the project;
2. Availability of trained personnel to accomplish the project;
3. Contractor'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 contract terms and specifications, satisfactory quality of workmanship, and consistent on-time performance;
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7. Whether the contractor is in any jurisdiction under notice of debarment or debarred;
8. Whether the contractor 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 contractor 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.
(D) Any contractor who is disqualified from bidding on a project by the prequalification process may request a reconsideration of his application for prequalification, by submitting a written request within five (5) days to the Project Manager from date of notification. The City Manager and the Project Manager shall meet with the contractor for such reconsideration within five (5) days of the contractor's request. The contractor may present additional information and request a summary of the information the City has used in its decision, but contractor will not be entitled to names of those persons the City contacted for references or the statements of reference.
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) 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.