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HomeMy WebLinkAboutPurchasing Ordinance No. 02- DRAFT1 Ordinance No. 02 (2018) ORDINANCE 02 (2018) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR REVISING THE CITY'S PURCHASING SYSTEM CONTAINED IN TITLE 3 OF THE DIAMOND BAR MUNICIPAL CODE BY AMENDING CHAPTER 3.24 RELATED TO PURCHASING AND ADDING A NEW CHAPTER 3.25 RELATED TO PUBLIC PROJECTS WHEREAS, the City has established a purchasing system in Chapter 3.24 of the Diamond Bar Municipal Code to provide an efficient and cost-effective process for the purchase of supplies, services, personal property and equipment; and WHEREAS, Chapter 3.24 of the Diamond Bar Municipal Code also includes procurement requirements for professional services and public projects; and WHEREAS, the City desires to revise and amend Chapter 3.24 of the Diamond Bar Municipal Code to provide updateadditional procedural efficiencies incorporating SB 1383 materials that include recyclable, compostable, and recovered organic productsin the procurement of supplies, services, personal property, equipment, and professional services; and WHEREAS, the City desires to annually procure for use or giveaway a quantity of Recovered Organic Waste Products (ROWP) that meets or exceeds its Annual Recovered Organic Waste Product Procurement Target through the implementation of SB1383 Eligible Mulch, Compost, renewable gas, and/or electricity procured from biomass conversion. WHEREAS, the City desires to be subject to and utilize the informal and formal bidding procedures for public projects as provided for in the voluntary Uniform Public Construction Cost Accounting Act, Public Contract Code 22000 et seq., provisions for such are contained in a new Chapter 3.25 of the Diamond Bar Municipal Code. NOW THEREFORE, the City Council of the City of Diamond Bar does hereby ordain as follows: Section 1. Title 3, Chapter 3.24 of the Diamond Bar Municipal Code is repealed in its entirety and is replaced to read as follows: Chapter 3.24 Purchasing Sections: 3.24.010 3.24.010 Establishment of a Purchasing System 3.24.020 Definitions 3.24.030 Decentralized Purchasing 3.24.040 Purchasing Manager 3.24.050 Authority and Purchasing Limitations 3.24.060 General Requirements Style Definition: Heading 3,Subsection Heading - Level 2: Indent: Left: 0.67", Hanging: 0.5", No bullets or numbering Style Definition: Heading 2,Subsection Heading - Level 1: Indent: Left: 0.13", First line: 0.5", No bullets or numbering 2 Ordinance No. 02 (2018) 3.24.070 Professional Services 3.24.080 Amendments and Change Orders 3.24.090 Exceptions to Purchasing Procedures 3.24.100 Local Preference 3.24.110 Use of Recycled Materials 3.24.120 Surplus Personal Property 3.24.130 Compliance With Federal Requirements 3.24.140 Promulgation of Rules and Regulations by City Manager Sec. 3.24.010. Establishment of a Purchasing System. To establish efficient procedures for the purchase of supplies, services, personal property, equipment, and professional services; to secure for the City supplies, services, and equipment at the lowest cost commensurate with the quality needed and with due consideration to usability; to exercise positive financial control over purchases; to clearly define authority for the purchasing functions; to assure the quality of purchases; and to buy without favor or prejudice, a purchasing system is adopted and shall control the procedures for all purchases except as otherwise provided by law. Sec. 3.24.020. Definitions. As used in this Chapter, the following words and terms shall be defined as follows unless the context indicates that a different meaning is intended: Annual Recovered Organic Waste Procurement Target means the amount of organic waste in the form of a Recovered Organic Waste Product (ROWP) that the city is required to procure annually under 14 CCR Section 18993.1 as mandated under SB 1383. This target is calculated by multiplying the city’s residential population by the per capita procurement target of 0.08 tons of organic waste. Bid means the response submitted by a bidder to an invitation for bids issued by the City for goods, services or public projects. Budget Authority means that with the exception of emergency procedures, no purchase shall be made without prior approval and appropriation in the City's annual budget. Capital Asset means land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, infrastructure and all other tangible assets that are used in operations, cost in excess of $5,000 and that have initial useful lives extending beyond one year. Competitive Bidding means the process whereby bids are solicited from potential bidders in accordance with applicable law to foster cost effective competition within the private sector providing goods, services, or public projects to the City. Formatted: Font: Italic Formatted: Heading 2,Subsection Heading - Level 1, Left, Indent: Left: 0", First line: 0", Right: 0", Space Before: 0 pt, Line spacing: single Formatted: Font: Not Italic 3 Ordinance No. 02 (2018) Contract means an agreement, in writing, between two or more persons with the requisite authority, which creates an obligation to provide supplies, services, personal property, equipment or professional services. Direct Service Provider means a person, company, agency, district, or other entity that provides a service or services to the City pursuant to a contract or other written agreement to assist in meeting the Annual Recovered Organic Waste Procurement Target in the form of mulch, compost, renewable gas, and/or electricity procured from biomass conversion or otherwise indicated in 14 CCR 18982(17). Encumbrance means a contingent liability and reservation of a budget appropriation incurred as a result of the issuance of a purchase order and/or contract. Formatted: Font: Italic Formatted: Heading 2,Subsection Heading - Level 1, Left, Indent: Left: 0", First line: 0", Right: 0", Space Before: 0 pt, Line spacing: single Formatted: Strikethrough 4 Ordinance No. 02 (2018) Informal Bid or Quotation means a competitive bid that is submitted by a bidder for procurement of goods or services for which formal bidding is not required. Local BidderNendor means a business, firm, or enterprise with fixed offices and locally taxable distribution points within the City, which holds a valid business license issued by the City, and bearing a street address withi)l the City. Personal property means any tangible property not including land or real estate, including any furniture, fixtures or equipment. This includes but is not limited to vehicles, equipment, and supplies. Practicable means satisfactory in performance and available at a fair and reasonably competitive cost. Professional services means, but is not limited to, any type of services that may be lawfully rendered including those of architects, attorneys, auditors, consultants, engineers, physicians, accountants, information technology professionals or other individuals or organizations possessing a high degree of professional, unique, specialized, technical skill or expertise. Purchase Requisition shall mean the City's written request submitted to initiate the procurement process for specified goods, services or a public project. Includes the procurement of supplies, equipment and personal property, including leases or rentals of such items. Purchase order means the City's written documentation provided to a vendor formalizing the terms and conditions associated with the ordering of the goods, services, or public project required by the City. Recovered Organic Waste Products (ROWP) means the products made from California, landfill-diverted recovered organic waste processed at a permitted or otherwise authorized operation or facility. Eligible products consist of mulch, compost, renewable gas, and electricity procured from biomass conversion as defined in 14 CCR Section 18982. Recyclable (or Recoverable) means that recycling facilities are available to at least 60% of the consumers or communities where the items are sold or as otherwise indicated in 14 CCR 18993.3(c)(2) and 16 CFR 260.12(b)(1) or determined by any future legislation. Recycled-content means the products that have a percentage of recovered material, including pre-consumer and post-consumer. Responsive bid means a bid which meets all of the specifications set forth in the request for a bid proposal. Responsible bidder shall mean a bidder who submits a responsive bid, and has furnished, when requested, information and data to prove that the bidder has the financial Formatted: Character scale: 105% Formatted: Font: Italic Formatted: Heading 2,Subsection Heading - Level 1, Left, Indent: Left: 0", First line: 0", Right: 0", Space Before: 0 pt, Line spacing: single Formatted: Font: 11 pt Formatted: Font: Italic Formatted: Font: Italic Formatted: Strikethrough Formatted: Font: Italic Formatted: Heading 2,Subsection Heading - Level 1, Left, Indent: Left: 0", First line: 0", Right: 0", Line spacing: single 5 Ordinance No. 02 (2018) resources, production or service facilities, service reputation and experience necessary to make satisfactory delivery of supplies, materials, equipment or contractual services on which the bids are made, and who has not violated, or attempted to violate, any provision of this Chapter. Senate Bill 1383 (SB 1383) means or refers to CalRecycle’s regulation for the Short-Lived Climate Pollutant reduction strategy to divert organic waste away from the landfill to meet the statewide methane emission reduction target as established in 14 CCR, Division 7. Senate Bill 1383 Eligible Compost means compost that is a Recovered Organic Waste Product (ROWP) and is suitable for land application as indicated in 14 CCR Section 17852(a)(24.5)(a)1 through 3. Senate Bill 1383 Eligible Mulch means Mulch that is produced from a facility, as indicated in 14 CCR 18993.1(4)(B) and complies with the maximum metal concentration, and pathogen density standards for land application specified in 14 CCR Section 17852(a)(24.5)(a)1 through 3. Services shall mean any and all services, with the exception of Professional services as defined above, including but not limited to equipment service contracts. Splitting shall mean dividing a purchase or contract into two or more parts in order to avoid the provisions of this Chapter requiring work to be done by contract after competitive bidding. Sole Source means a non-competitive procurement decision whereby acceptable justification exists to support public works or non-public works related purchases provided by one particular supplier or contractor. Formatted: Font: Not Italic Formatted: Font: Not Italic Formatted: Font: Not Italic Formatted: Indent: Left: 0", First line: 0" Commented [TR1]: Instead of highlighted, can add “the product resulting from the controlled biological decomposition of organic solid waste that is source separated from the municipal solid waste stream, or separated at a centralized facility.” Formatted: Font: Italic Formatted: Heading 2,Subsection Heading - Level 1, Left, Indent: Left: 0", First line: 0", Right: 0", Space Before: 0 pt, Line spacing: single Formatted: Font: 11 pt 6 Ordinance No. 02 (2018) Surplus Personal Property means any personal property that is no longer needed or useable by the City. Use Tax means the tax on the use, storage or consumption of personal property in California which was purchased out of state. Sec. 3.24.030. Decentralized Purchasing. The purchase of supplies, services, personal property, equipment and professional services is the responsibility of the individual departments making such purchases. It is the responsibility of the Purchasing Manager described in Section 3.24.040 (a) to ensure the adherence to the provisions prescribed in this Chapter. Sec. 3.24.040. Purchasing Manager. (a) Creation of Position of Purchasing Manager. There is hereby created the position of Purchasing Manager, who shall be the City Manager or designee. (b) Power and duties. (1) Purchasing Manager. The Purchasing Manager shall direct and supervise the acquisition of all goods and services under this Chapter and may delegate any of the powers and duties conferred upon him/her as provided herein. (2) Purchasing Agents. The Purchasing Manager may delegate the responsibility for administering purchasing policies and procedures to one or more Purchasing Agents. The authorized Purchasing Agents may include: i. Assistant City Manager ii. Finance Director iii. Public Works Director iv. Community Development Director v. Parks & Recreation Director vi. Information Services Director (3) Purchasing Delegates. The Purchasing Manager may delegate authority to the Purchasing Agents to delegate authority to additional individuals within their supervision who shall be authorized to make purchases. Individuals delegated purchasing authority hereunder 7 Ordinance No. 02 (2018) are referred to as "Purchasing Delegates" in accordance with the following requirements: i. A written list of Purchasing Delegates must be submitted to the Finance Director and include the name and maximum dollar purchasing authority authorized for each individual. ii. A written list of Purchasing Delegates must be approved on an annual basis or upon changes in employment status, whichever is more frequent, by the City Manager, the Finance Director and the Department Director. iii. The Finance Director must maintain a written record of all approved Purchasing Delegates. Sec. 3.24.050. Authority and Purchasing Limitations. Provided there is adequate unencumbered appropriations in the account against which the expenditure is to be charged, purchases of supplies, services, personal property and equipment shall be as specified in Table 3.24A and subject to the following provisions: Table 3.24A - Authority and Purchasing Limitations; Supplies, Services, Property and Equipment Purchase Amount Less than $5,000 $5,000 - less than $10,000 $10,000 - less than $45,000 $45,000 or more Purchasing Authority Purchasing Manager, Agent or Delei::iate Purchasing Manager or Agent Purchasing Manager City Council Competitive Bids Required No Yes Yes Formal Bid Type Quote Informal* Informal* Formal Purchase Order Required No Yes Yes Yes Note: * When Informal bids are required, the Purchasing Manager or Purchasing Agent shall determine which competitive bid process shall be utilized that is in the best interest of the City. (a) Public Projects. Procurement of Public Projects is provided for in Chapter 3.25 of this Code. 8 Ordinance No. 02 (2018) ( (b) Professional Services. Procurement of Professional Services is provided for in Section 3.24.070. (c) Purchase Orders. Purchased orders are required when: (1) A single item or aggregate purchase with an estimated value of five thousand dollars ($5,000) or greater. (2) When the Purchasing Manager, Purchasing Agent or Purchasing Delegate expects to make multiple purchases with a single vendor and such purchases are expected to exceed five thousand dollars ($5,000) within a fiscal year. (d) Purchase Amount. The following provIsIons apply in determining the purchasing authority identified in Table 3.24A: (1) Cumulative Amounts. The amount of multiple purchases or contracts from the same vendor shall be aggregated on a department basis for each fiscal year. (2) The splitting of purchases to circumvent the purchasing authority thresholds shall be prohibited. (3) Multi-Year Contracts. The total not to exceed amount for the entire term of a multi-year contract shall be used to determine the Purchase Amount and Purchasing Authority. (4) Out of State Purchases. Out of State purchases for goods that would normally incur sales tax charges must accrue use tax (at the same rate as the current sales tax charged within Diamond Bar) and be included in the calculation to determine the lowest responsible bidder and/or amount. (e) Competitive Bids Required. The following provisions shall apply in soliciting competitive bids when required in Table 3.24A: (1) A minimum of three (3) bids or quotes shall be obtained unless an exception is granted pursuant to Section 3.24.090. (2) The lowest responsible bidder shall be selected unless an exception is granted pursuant to Section 3.24.090. (3) The City reserves the right to reject all bids with or without cause, abandon the purchase process, and/or start a new procurement 9 Ordinance No. 02 (2018) process for the same or substantially the same purchase at any time during the solicitation period. (4) When bids are not required, it shall be the responsibility of the Purchasing Delegate or Purchasing Agent to ensure that purchases are procured at competjtive rates. (5) Nothing in the section precludes the solicitation of bids or quotes for purchases that would otherwise not be required. (6) Informal Bids. i. Three competitive informal bids or quotes may be solicited from vendors. The solicitation may either be a verbal or written format. ii. Bids received from the vendor must be in writing. iii. Written documentation of all bids received and the selection of the lowest responsible bidder shall be submitted in a format prescribed by the Finance Department and attached to the requisition to issue a Purchase Order. (7) Formal Bids. i. To initiate the formal bids process, a written scope of work, with the product description, and specifications or a Request for Proposal which adequately describes the intended purchase shall be prepared. ii. Such written documentation shall be made, advertised on the City's bid system to solicit bids or quotes from qualified vendors. In addition, such written documentation may also be sent to vendors directly soliciting bids or quotes at the discretion of the Department making the purchase. ii. All written bids received by the stated submittal deadline shall be reviewed for conformance with the written documentation. Any deviations from the specifications shall be evaluated for suitability, performance, longevity or unique needs of the City to meet its intended purpose. Any bids or quotes determined to not comply with the specifications may be rejected. iii. Written documentation of all bids received and the selection of the lowest responsible bidder shall be submitted in a format prescribed by the Finance Department and attached to the requisition to issue a Purchase Order. 10 Ordinance No. 02 (2018) iv. Formal bids are awarded by the City Council. Sec. 3.24.060. General Requirements. (a) W-9 Requirement. A completed IRS Form V'f-9 is required for any vendor not previously used for City purchases. This information must be validated by the Finance Department b.efore any purchases can be made with the new vendor. (b) Business License. Vendors, other than those whose services or supplies .are being procured by Purchase Order, shall have a valid City business license when required prior to the approval of any purchase. Sec. 3.24.070. Professional Services. Provided there is adequate unencumbered appropriations in the account against which the expenditure is to be charged, the provisions contained in Table 3.248 shall also apply to the procurement of professional services, and be subject to the following provisions: Table 3.24B - Authority and Purchasing Limitations; Professional Services Purchase Amount Less than $45,000 $45,000 or more Purchasing Authority Purchasing Manager City Council Bids Required Informal or Formal* Formal Purchase Order Required Yes Yes Note: * When Informal or Formal bids are required, the Purchasing Manager or Purchasing Agent shall determine which competitive bid process shall be utilized that is in the best interest of the City. (a) Competitive Bids Required. The following provisions shall apply in soliciting competitive bids as required in Table 3.248: (1) A minimum of three (3) bids or quotes shall be obtained unless an exception is granted pursuant to Section 3.24.090. 11 Ordinance No. 02 (2018) (2) Contracts for professional services shall be awarded on the basis of demonstrated competence and professional qualifications necessary for the satisfactory performance of services at the best overall value to the City, and shall not be awarded solely on the lowest cost. (3) The City reserves the right to reject all bids with or without cause, abandon the purchase process, and/or start a new procurement process for the same or substantially the same purchase at any time during the solicitation period. (4) Informal Bids. i. Informal bids or quotes for a professional service may be solicited from firms or individuals in either a verbal or written format. Bids received from a firm or individual must be in writing. ii. Bids or quotes may be solicited from firms or individuals at the discretion of the Department needing such professional services. iii. Written documentation of all bids received and justification for the selection of the firm or individual selected shall be submitted in a format prescribed by the Finance Department and attached to the requisition to issue a Purchase Order. iv. Informal bids are awarded by the Purchasing Manager. (5) Formal Bids. i. A written scope of work and/or a Request for Proposal which adequately describes the intended professional services desired, any required qualifications, and the evaluation criteria shall be prepared. Such written documentation shall be made available on the City's bid system to solicit bids or quotes from qualified firms or individuals. 1n addition, such written documentation may also be sent to firms or individuals directly soliciting bids or quotes at the discretion of the Department needing such professional services. ii. All written bids received by the stated submittal deadline shall be reviewed for conformance with the written documentation. Evaluation of proposals received may be conducted by either an individual or a review committee. Interviews may be conducted, at the discretion of the City. Any deviations from the requested 12 Ordinance No. 02 (2018) services shall be evaluated for suitability, performance, or unique needs of the City to meet its intended purpose. Any bids or quotes determined to not comply with the requested services may be rejected. iii. Written documentation of all bids received and justification for the selection of the firm or individual selected shall be submitted in a format prescribed by the Finance Department and attached to the requisition to issue a Purchase Order. iv. Formal bids are awarded by the City Council. Sec. 3.24.080. Amendments and Change Orders. (a) Any change to a contract or approved purchase which results in a cost in excess of the award amount shall be documented in writing. If an increase in the contract amount results in a cumulative total contract amount of more than $45,000, substantially changes the terms of a contract approved by the City Council, or results in a cost in excess of the City Council award amount plus any City Council approved contingencies, the change order or contract amendment must be approved by the City Council as soon as staff becomes aware as to avoid any delays in the project. (b) The Purchasing Manager may approve change orders or amendments to contracts approved by the City Council in an amount up to 10% of the contract amount or $45,000 whichever is less; or an amount otherwise authorized by the City Council. (c) No change order may exceed budgetary authorization without City Council approval. (d) The cumulative amount of any contract or purchase order, plus all amendments and change orders are subject to the approval authority set forth in section 3.24.050. Sec. 3.24.090. Exceptions to Bidding. The bidding requirements contained in this Chapter may be waived upon authorization of the Purchasing Manager or City Council for the following: (a) Where sufficient or satisfactory bids cannot be reasonably obtained making competitive bidding impossible or impractical. 13 Ordinance No. 02 (2018) (b) (c) (d) (e) (f) (g) (h) The amount of the purchase has a total estimated value of less than five thousand dollars ($5,000). . Where the commodity or service can be obtained from only one vendor provided that appropriate Sole Source documentation is provided and approved on forms as established by the Finance Depa,rtment. Where the price of the commodity or service is controlled by law such that bidding would be unlikely to result in any cost savings. Annual maintenance contracts for existing products, services, equipment \ and software provided there is an adequate appropriation included in the adopted budget for such expense. When supplies, personal property, services or equipment can be more efficiently or more cost efficient obtained through a cooperative purchasing program with a federal, :;;late, county, local or other government purchasing program. Such purchases through a cooperative purchasing program shall be authorized by resolution of the City Council. The bidding requirements for any other reason are specifically waived by the City Council. Purchases made necessary from an emergency situation that poses an immediate threat to public health, welfare or safety as determined by the Purchasing Manager for which no time exists to seek City Council action or approval, if such action or approval were otherwise required, subject to the following: (1) An emergency situation includes, but is not limited to: i. A public disaster. ii. An immediate need to prepare for national or local defense. iii. A breakdown of machinery or an essential service immediately affecting public health, safety or welfare. (2) A report of the circumstances constituting the emergency and the related purchases made shall be submitted to the Purchasing Manager as soon as possible. The report will be filed with the City Council and will be entered in the minutes of the Council at its next regular meeting. 12 Ordinance No. 02 (2018) Sec. 3.24.100. Local Preference. In order to promote the economic health of the City and to encourage local participation in the procurement process, every attempt shall be made to purchase supplies, services, personal property and equipment from businesses located within the City of Diamond Bar to the greatest extent possible, subject to the following: (a) Local Preference. In awarding purchase orders and contracts for supplies and equipment, the City may grant a preference at one percent (1%) of taxable sales to local bidder/vendors in determining the lowest responsible• bidder. (b) Identical Bids. If after applying the preference provided for in subsection (a) of this section, identical bids are submitted by a local bidder/vendor and a bidder who is not local, the contract shall be awarded to the local bidder/vendor. Identical bids by two or more local bidder/vendors shall be determined by the toss of a coin. In the event City Council approval is required for the bid, this provision shall not apply and the City Council shall award the bid in its discretion. (c) Exceptions. Notwithstanding the foregoing, the provisions of this section shall not apply under any of the following circumstances: (1) When application of the provisions of this section is prohibited by state or federal law or the requirements of a state or federal grant. (d) Good Faith Effort to Contact Local Merchants. The City shall make a good faith effort when soliciting bids for supplies or equipment to solicit bids or proposals from local merchants. (e) Purchasing Manager Authorization. The Purchasing Manager, or his or her designee, may promulgate rules and regulations to implement the provisions oUhis section. (f) Enforcement and Penalties. In tlie event that the Purchasing Manager, or his or her designee, makes a finding that a bidder for a contract has made an intentional misstatement in order to obtain a local merchant preference under regulations adopted pursuant to this section, the bidder may be subject to any remedy available to the City at law or equity. (1) A finding by the Purchasing Manager, or his or her designee, that a bidder for a contract has made an intentional misstatement in order to obtain a local merchant preference shall be regarded by the City Council or Purchasing Manager, as the case may be, as a.basis for 13 Ordinance No. 02 (2018) determining whether the bidder is a responsible bidder for the present contract or for future contracts. (2) A bidder who has been disqualified as a responsible bidder by a determination of the City Council, based on a finding by the Purchasing Manager, or his or her designee, that the bidder made an intentional misstatement in order to obtain a local merchant preference, shall be disqualified from bidding on all contracts with the City for a period of one year from the date of the disqualification, as determined by the City Council or Purchasing Manager. • Sec. 3.24.110. Use of Recycled, Compostable, or Recovered Organic Materials. (a) All departments shall purchase and use recycled, compostable, or recovered organic products and recycled materials when available unless determined by the City Manager to be financially infeasible. (b) Paper products must be considered recyclable, compostable, or recovered organic and their recyclability certified by the vendor. (c) The recycled content of paper products, including but not limited to office supplies, writing and printing paper, printed materials, and paper janitorial supplies, must be documented and, where practicable, must be purchased according to state specifications as indicated in 14 CCR 18993.3(c)(1). (a) The City will annually procure for use or giveaway a quantity of Recovered Organic Waste Products (ROWP) that meets or exceeds its Annual Recovered Organic Waste Product Procurement Target through the implementation of SB1383 Eligible Mulch, Compost, renewable gas, and/or electricity procured from biomass conversion. (b) The City may at its option require its contractors and consultants to use recycled, compostable, or recovered organic products in fulfilling contractual obligations. Sec. 3.24.120. Surplus Personal Property. Each department shall periodically review its equipment and inventory and complete a surplus property list for items deemed surplus or have become obsolete or worn out. The completed list shall be submitted to the Purchasing Manager. Upon approval, a copy of the list shall also be given to the Finance Department in order to remove any items on the fixed asset inventory list. (a) Trade in. The Purchasing Manager or designee shall have the authority to exchange for or trade in on new equipment surplus personal property. Commented [TR2]: Alternate: Use of Recoverable and Recovered Materials Formatted: Heading 3,Subsection Heading - Level 2, Indent: Left: 0.67", Right: 0", Space Before: 0 pt, Line spacing: single, No bullets or numbering, Tab stops: Not at 1.17" 14 Ordinance No. 02 (2018) (b) Sale. The Purchasing Manager shall have the authority to dispose of surplus personal property by auction, sealed bids, for scrap or negotiated sale, whichever in the Purchasing Manager's judgment will provide the maximum return to the City. (c) Disposed as trash. When the cost of locating a buyer exceeds the estimated sale price of surplus personal property or the item is obsolete or worn out or of minimal value, the Purchasing Manager may recycle, destroy or dispose of the item as trash. (d) Disposed as gifts. The Purchasing Manager subject to the approval of the City Council may give surplus personal property to another public agency, 15 Ordinance No. 02 (2018) special district such as a school district or library, or not for profit organization to the extent the gift does not constitute a gift of public funds. 3.24.130. Compliance with Federal Requirements. In addition to the provisions of this Chapter, the procurement of all contracts for public projects that are funded in whole or in part with federal grant funds shall be subject to applicable Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards promulgated by the United States Office of' Management and Budget, 2 U.S. Code of Federal Regulations part 200. 3.24.140. Promulgation of Rules and Regulations by City Manager. The City Manager shall have the power and authority to make such rules, regulations and criteria as may be necessary to effect the provisions of this Chapter, and to make such other reasonable rules and regulations as he or she may deem proper to implement the provisions of this Chapter and which shall not be inconsistent with the terms and provisions of this Chapter. 16 Ordinance No. 02 (2018) Section 2. A new Chapter 3.25 entitled Public Projects is hereby established within Title 3 of the Diamond Bar Municipal Code to read as follows: Chapter 3.25 Public Projects 3.25.010 Purpose - Uniform Public Construction Cost Accounting Act 3.25.011 Definitions 3.25.020 Authority and Purchasing Limitations for Public Projects 3.25.021 Dollar Thresholds 3.25.030 Informal Bidding Procedures 3.25.040 Formal Bidding Procedures 3.25.050 Award of Contracts/Change Order for Public Projects 3.25.060 Review of Plans and Specifications 3.25.070 Emergencies 3.25.080 Compliance With FederaLRequirements 3.25.090 Promulgation of Rules and Regulations by City Manager 3.25.010. Purpose - Uniform Public Construction Cost Accounting Act. Contracts for public projects in the City shall be governed by applicable state laws, including California Public Contract Code, Division 2, Part 1, and Division 2, Part 3, Local Agency Public Construction Act. In addition, the City has elected to become subject to the Uniform Public Construction Cost Accounting Act (Public Contract Code Section 22000 et seq.) and the contracting procedures set forth in Article 3 of the Act. The City may procure public projects by force account, negotiated contract, purchase order, informal bidding or formal bidding in accordance with the alternative procedures authorized by the Act and the applicable dollar amount limitations set forth in Section 22032 of the Act, as it may be amended from time to time. All procedures set forth in this chapter shall be interpreted in a manner consistent with state law. 3.25.011. Definitions. As used in this Chapter, the following words and terms shall be defined as follows unless the context indicates that a different meaning is intended: Act means the Uniform Public Construction Cost Accounting Act (California Public Contract Code Section 22000 et seq.). Bid means the response submitted by a bidder to an invitation for bids issued by the City for goods, services or public projects. 17 Ordinance No. 02 (2018) Commission means the California Uniform Public Construction Cost Accounting Commission established pursuant to Public Contract Code Section 22010. Competitive Bidding means the process whereby bids are solicited from potential bidders in accordance with applicable law to foster cost effective competition within the private sector providing goods, services, or public projects to the City. Encumbrance means a contingent liability and reservation of a budget appropriation incurred as a result of the issuance of a purchase order and/or contract. Facility shall have the same meaning as set forth in Section 22002 of the Act and includes any plant, building, structure, ground facility, utility system (subject to the limitation found in Public Contract Code Section 22002), real property, streets and highways, or other public work improvement. Informal Bid or Quotation means a competitive bid that is submitted by a bidder for procurement of goods or services for which formal bidding is not required. Force Account means work performed on public projects using internal resources, including but not limited to labor, equipment, materials, supplies, and subcontracts of the public agency. Local Vendor Preference means a business, firm, or enterprise with fixed offices and locally taxable distribution points within the City, which holds a valid business license issued by the City, and bearing a street address within the City. Maintenance Work shall have the same meaning as set forth in Public Contract Code Section 22002. For the purpose of this chapter, maintenance work is not considered a public project. Maintenance work includes: (a) The routine, recurring, and usual work for the preservation or protection of any publicly owned or operated facility for its intended purposes. (b) Minor repainting. (c) Resurfacing of streets and highways at less than one inch. (d) Landscape maintenance including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems. Public Project shall have the same meaning as set forth in Public Contract Code Section 22002 and includes the following: 18 Ordinance No. 02 (2018) (a) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility. (b) Painting or repainting of any publicly owned, leased, or operated facility. "Public project" does not include maintenance work as defined above. Purchase Order means the City's written document provided to a vendor formalizing the terms and conditions associated with the ordering of goods, services, or public project required by the City. Responsible Bidder means a bidder who has demonstrated the capacity, and experience to satisfactorily perform the public works contract, and bid meets all of the specifications set forth in the request for bid proposal. Splitting means dividing a purchase order or contract into two or more parts in order to avoid the provisions of this Chapter requiring work to be done by contract after competitive bidding. 3.25.020. Authority and Purchasing Limitations for Public Projects. Subject to the provisions of this Chapter, provided there is adequate unencumbered appropriation in the account against which the expenditure is to be charged, procurement of public projects shall be as specified in Table 3.25.03A: Table 3.25.03A - Authority and Purchasing Limitations; Public Projects Project Costs* Less than $45,000 $45,000 - $175,000 More than $175,000 Contract Approval/Award Authority City Manager, Public Works Director/City Enqineer City Manager City Council Type of Bids Required Negotiations/ Quotes Informal Bid Formal Bid Approval of Plans/Specifications Public Works Director/City Engineer Public Works Director/City Engineer City Council Note: • Project Cost Limits are intended to correspond to the dollar thresholds set forth in Section 3.25.040 and Public Contract Code Section 22030. The Project Cost Limits set forth in Table 3.25.03A shall be automatically adjusted administratively to reflect any adjustments in the dollar thresholds set forth in Section 3.25.040. 19 Ordinance No. 02 (2018) 3.25.021. Dollar Thresholds. (a) Public Projects of forty-five thousand dollars ($45,000) or less (or the current amount specified in Section 22032(a) of the Act) may be performed by the employees of the City by force account, by negotiated contact, or by purchase order. (b) Public projects of one hundred seventy-five thousand dollars ($175,000) or less (or the current amount specified in Section 22032(b) of the Act) may be let to contract by informal bidding procedures as set forth in this chapter. (c) Public projects of more than one hundred seventy-five thousand dollars ($175,000) (or the current amount specified in Section 22032(c) of the Act) shall, except as otherwise provided in this chapter, be let to contract by formal bidding procedures in accordance with Section 22037 of the Act and as set forth in this Chapter. (d) Public projects shall not be split or separated into smaller work orders or projects for the purpose of evading the provisions of this Chapter requiring work to be done by contract after competitive bidding. 3.25.030. Informal Bidding Notice Procedures. (a) Every notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the lime and place for the submission of bids. (b) Notice to contractors shall be provided in accordance with either paragraph (1) or (2) below, or both. (1) A list of qualified contractors, identified according to categories of work, shall be developed and maintained in accordance with the provisions of Public Contract Code Section 22034 and criteria promulgated from time . to time by the Commission. All contractors on the list for the category of work being bid shall be mailed, faxed, or emailed a notice inviting informal bids, unless the product or service is proprietary in nature such that ii can be obtained only from a certain contractor or contractors, in which case the notice inviting informal bids may be sent exclusively to such contractor or contractors. All mailing of notices to contractors pursuant to this subdivision shall be completed no less than 1O calendar days before bids are due. (2) In addition to, or in lieu of, providing notice as provided in paragraph (1), a notice inviting informal bids may be mailed, faxed, or emailed to all 20 Ordinance No. 02 (2018) construction trade journals as specified by the Commission in accordance with Public Contract Code Section 22036. (3) In addition to the notice required by this section, the City Manager or his or her designee may notify such additional contractors and/or construction trade journals as he or she deems proper. (c) If all bids received are in excess of $175,000, the City Council may, by adoption of resolution by a four-fifths vote, award the contract, at $187,500 or less (or the current amount specified in Section 22034(d) of the Act), to the lowest responsible bidder, if it determines that the original cost estimate of the City was reasonable. 3.25.040 Formal Bidding Notice Procedures. (a) Every notice inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. (b) The notice shall be published at least 14 calendar days before bid opening in accordance with the requirements of Section 22037 of the Act. (c) The notice inviting formal bids shall also be sent electronically, by either facsimile or electronic mail and mailed to all construction traded journals as specified by the Commission pursuant to Section 22036 of the Act. The notice shall be sent at least 15 calendar days before the bid opening date. (d) In addition to the notice required by this Section, the City Manager or his or her designee may give such other notice as he or she deems proper. (e) Formal sealed bids shall be submitted to the City Clerk with the bid number written on the envelope where they will be date and time stamped. All bids must be received and date and time stamped by the City Clerk's clock on or before the date and time due; late bids will be returned unopened. The City Clerk shall publicly open all bids at the time and place stated in the public notice. A tabulation of all bids shall be available for public inspection in the City Clerk's Office during regular business hours for a period of one year after bid opening. 3.25.050. Award of Contracts/Change Orders for Public Projects. (a) If a contract is awarded pursuant to the informal or formal bidding procedures, it shall be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, the City may accept the one it chooses. 21 Ordinance No. 02 (2018) {b) The City Manager or his or her designee shall have the authority to award contracts for public projects of one hundred seventy-five thousand dollars ($175,000) or less (or the current amount specified in Section 22032(b) of the Act). (c) Contracts for public projects of more than one hundred seventy-five thousand dollars ($175,000) (or the current amount spedfied in Section 22032(c) of the Act) shall be awarded by the City Council. (d) The City Manager or his or her designee shall have the authority to approve change orders to contracts for public projects up to and including ten percent (10%) or $45,000, of the awarded contract amount, whichever is less. (e) In its discretion, the City may reject any and all bids presented. Prior to rejecting all bids, the City Manager or his or her designee shall first furnish a written notice to the apparent low bidder informing the bidder of the City's intention to reject the bid. The notice shall be mailed at least two (2) business days before the date in which the City intends to reject the bid. If after the first invitation for bids all bids are rejected, after reevaluating its cost estimates of the project, the City shall have the option of either of the following: 1. Abandoning the project or re-advertising for bids in the manner described by this Chapter; or 2. By passage of a resolution by a four-fifths vote of the City Council declaring the project can be performed more economically by the employees of the City, having the project done by employees of the City by force account without further complying with the Act. (f) If no bids are received through either the formal or informal bidding procedure, the project may be performed by the employees of the City by force account or through a negotiated contract without further complying with this chapter. 3.25.060 Review of Plans and Specifications. (a) The City Council shall adopt the plans, specifications, and working details for all public projects of more than one hundred seventy-five thousand dollars ($175,000) (or the current amount specified in Section 22032(c) of the Act). (b) The Public Works Director/City Engineer is authorized to and may adopt the plans, specifications, and working details prepared for public projects of $175,000 or less (or the current amount specified in Section 22032{b) of the Act). 22 Ordinance No. 02 (2018) .eu ATTEST: I, Tommye Gribbins, City Clerk of the City of Diamond Bar, California, do hereby certify that the foregoing Ordinance was introduced at the regular meeting of the City Council held on the 19th day of June 2018, and was duly passed, approved and adopted at the regular meeting of the City Council held on the 17th day of July 2018, by the following votes, to wit: • AYES: COUNCILMEMBERS:Lin, Tye, MPT/Herrera, M/Lcfw NOES: COUNCILMEMBERS:None ABSENT: COUNCILMEMBERS: Lyons , ABSTAIN: COUNCILMEMBERS: None TornmyeribbinsKristina Santana, City Clerk Formatted: Highlight Formatted: Highlight Formatted: Highlight Formatted: Highlight