MEETING DATE: August 14, 2006
AGENDA ITEM: Discussion of Criteria for Re-bidding of City Contracts.
ATTACHMENTS
Pages
1. Excerpts from the City Code of Beverly Hills
1-4
2. Excerpts from the City Code of Santa Monica
5-7
3. Excerpts from the City Code of West Hollywood 8-10City of Beverly Hills
Municipal Code
3-3-104: BID REQUIREMENTS, PURCHASING PROCEDURES,
AND CONTRACTING PROCEDURES:
This section shall govern the procedures for bidding and awarding all purchase
orders and contracts, including purchases of goods and supplies, contracts to
perform services, and contracts to perform public projects. Bidding requirements
and other purchasing and contracting procedures are categorized into four (4)
different levels set forth below. Each level shall govern purchases and contracts
of different values. Level 1 shall govern the least expensive purchase orders and
contracts and level 4 shall govern the most expensive purchase orders and
contracts. The city council shall from time to time, as it determines appropriate,
establish by resolution the maximum dollar amounts of purchases and contracts
that are authorized pursuant to each of the four (4) levels. Notwithstanding any
provision of this article, the bidding and other procedures for awarding public
project contracts shall not violate the limitations of the uniform public construction
cost accounting act.
A. Level 1 Purchases: Purchases and contracts which are authorized to be
awarded pursuant to level 1 procedures may be awarded by the director of
the department for which the purchase or contract is made. This level of
purchasing is authorized without competitive bidding.
B. Level 2 Purchases: Purchases and contracts which are authorized to be
awarded pursuant to level 2 procedures may be awarded by the purchasing
agent. Purchases of supplies and equipment and contracts for public projects
shall require competitive oral bidding, as described in this subsection. If the
purchasing agent determines that competitive oral bidding for a particular
service contract is in the best interest of the city, the purchasing agent may
require competitive oral bidding for that contract, as described in this
subsection. With regard to contracts for public projects, if the purchasing
agent determines that a different competitive bidding procedure is in the best
interest of the city, the purchasing agent may solicit written bids as provided
in subsection C of this section of solicit sealed bids as provided in subsection
D of this section.
1. Bids shall be orally solicited from a minimum of three (3) sources and may
be received orally.
2. With regard to the purchase of supplies or equipment, after the receipt of
bids from those who elect to the solicitation, the purchasing agent shall award
the purchase to the lowest responsible bidder, or shall reject all bids, unless
the purchasing agent determines that award of the purchase to a differentbidder is in the best interest of the city. The purchasing agent may waive any
irregularities or informalities in any bid or bidding.
3. With regard to contracts for services and contracts to perform public
projects, the purchasing agent shall award the contract to the lowest
responsible bidder only if the purchasing agent determines that such action is
in the best interest of the city. The purchasing agent may reject all bids, or
waive any irregularities or informalities in any bid or bidding.
4. The purchasing agent may waive the requirement to orally solicit bids if
equipment, supplies, services or public project performance is available from
only one source and may solicit only two (2) bids if equipment, supplies,
services or public project performance is available from only two (2) sources.
C. Level 3 Purchases: Purchases and contracts which are authorized to be
awarded pursuant to level 3 procedures may be awarded by the city
manager. Purchases of supplies and equipment shall require competitive
written bidding, as described in this subsection. Contracts for public projects
shall require competitive written bidding, as described in subsection E of this
section. If the city manager determines that a competitive bidding procedure
for a service contract is in the best interest of the city, the city manager may
solicit oral bids as provided pursuant to subsection B of this section or the city
manager may require competitive written bids as provided in this subsection.
1. Bid specifications shall be prepared and written notices soliciting written
bids shall be disseminated to a list of at least three (3) prospective bidders
chosen by the city manager. Such notices shall include the closing date of the
bid.
2. Bids shall be submitted in writing and must be received prior to the bid
closing date to be considered.
3. With regard to the purchase of supplies or equipment, the city manager
shall award the purchase to the lowest responsible bidder, or shall reject all
bids, unless the city manager determines that award of the purchase to a
different bidder is in the best interest of the city. The purchasing agent may
waive any irregularities or informalities in any bid or bidding.
4. With regard to contract for services, the city manager shall award the
contract to the lowest responsible bidder only if the city manager determines
that such action is in the best interest of the city. The city manager may reject
all bids, or waive any irregularities or informalities in any bid or bidding.
5. The city manager may waive the requirement to solicit bids if the
equipment, supplies or services is available from only one source and may
a.solicit only two (2) bids if the equipment, supplies or services is available from
only two (2) sources.
D. Level 4 Purchases: Purchases which must be made pursuant to level 4
procedures shall be approved by the city council. All purchases of supplies
and equipment shall require competitive written bidding, as described in this
subsection. Contracts for public projects shall require competitive written
bidding, as described in subsection E of this section. If the city council
determines that a bidding procedure for a service contract is in the best
interest of the city, the city council may solicit oral bids as provided in
subsection B of this section, solicit written bids as provided in subsection C of
this section or solicit sealed bids as provided in this subsection.
1. Bid specifications shall be prepared, and notices inviting sealed bids shall
be disseminated to at least three (3) prospective bidders approved by the city
manager.
2. Bids shall be sealed, and shall not be opened until the time and place
designated in the bid specifications. Bids must be received prior to the bid
opening to be considered.
3. With regard to the purchase of supplies and equipment, the city council
shall award the bid to the lowest responsible bidder, or shall reject all bids,
unless the city council determines that the award of the purchase to a
different bidder is in the best interest of the city. The city council may waive
any irregularities or informalities in any bid or bidding.
4. With regard to contracts for services, the city council shall award the
contract to the lowest responsible bidder only if the city council determines
that such action is in the best interest of the city. The city council may reject
all bids or waive any irregularities or informalities in any bid or bidding.
5. The city manager may waive the procedures required by this subsection D
if the city manager determines that the equipment, supplies or services is
available only from a single source and may send a notice inviting bids to only
two (2) prospective bidders if the city manager determines that the
equipment, supplies or services is available from only two (2) sources.
E. Contracts For Public Projects: All contracts for public projects of more than
twenty five thousand dollars ($25,000.00) shall require competitive written
bidding, as described in this subsection.
1. Bid specifications shall be prepared and notices inviting sealed bids shall
be disseminated as set forth in subsection E2 or E3 of this section. In
addition, bid plans and working details shall be adopted by the city council for
all public projects exceeding one hundred thousand dollars ($100,000.00).2. For those public projects of more than twenty five thousand dollars
($25,000.00), but less than or equal to one hundred thousand dollars
($100,000.00), all notices inviting sealed bids shall be sent to: a) the
construction trade journals specified in California Public Contract Code
section 22036, or b) a list of qualified contractors, identified according to
categories of work and which has been developed in compliance with the
criteria issued by the California uniform construction cost accounting
commission, or c) both; unless the supplies, equipment or services are
proprietary. Such notices shall be mailed not less than ten (10) calendar days
before bids are due. The notices shall describe the project in general terms,
how to obtain more detailed information regarding the project, and the time
and place for the submission of bids.
If all bids received are in excess of one hundred thousand dollars
($100,000,00), the city council may, by passage of a resolution by a four-fifths
(4/5) vote, award the contract at one hundred ten thousand dollars
($110,000.00) or less without complying with the bidding procedures set forth
in subsection E3 of this section, provided that the city council determines that
the cost estimate of the project was reasonable.
3. For those public projects of more than one hundred thousand dollars
($100,000.00) the notice inviting sealed bids shall comply with the provisions
of California Public Contract Code section 22037, or the successor statute
thereto.
4. Bids shall be sealed, and shall not be opened until the time and place
designated in the bid specifications. Bids must be received prior to the bid
opening to be considered,
5. The city manager or the city council shall award the bid to the lowest
responsible bidder, or reject all bids pursuant to the Public Contract Code
section 22038, or its successor statute. The city manager or the city council
may waive any irregularities or informalities in any bid or bidding. (1962 Code
§ 2-9; amd. Ord. 94-0-2225, eff. 1-6-1995; Ord. 04-0-2447, eff. 5-21-2004)Back to Main Page - New
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+Purchasing
2.24.020 Organization of
Purchasing Division.
12.24.180 Specifications.
2.24.050 Requisitions and
estimates.
Chapter 2.24 PURCHASING
SYSTEM
1507 Centralized purchasing. •
224.030 Powers of
Purchasing Agent.
2.24.130 Purchase orders.
224.040 Addonal powers
of Purchasing Age.
2.24.060 Unforeseen needs.
1508 Competitive bidding.
2.24.090 Informal purchasing
procedures.
2.24.010 Rules and
regulations.
2.12.250 Finance
Department.
2.24.150 Forwarding of
purchase order.
12.24.160 Receipt of goods.
4.24.060 Boarapart of
government.
7.20.290 Disinterment for
exchange of graves, crypts,
or . niches,
2.24.100 Formal bidding
procedures.
2.24.070 Competitive
bidding.
2.24.140 Encumbrance of
1602 Term of franchise.
3.12.360 Obstructing
pedestrian or vehicular
traffic.
2.24.080 Exceptions to
competitive bidding.
2.24.110 Sale of real
property.
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Santa Monica Municipal Code (Santa Monica, California) Page 1 of 1
Santa Monica Municipal Code
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THE CHARTER OF THE CITY OF SANTA MONICA
ARTICLE )C—FISCAL ADMINISTRATION
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1508 Competitive bidding. Before making any purchase of, or contract for, supplies, materials or
equipment, the purchasing agent shall give ample opportunity for competitive
bidding, under such rules and regulations and with such exceptions as the City
Council may prescribe by ordinance.
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Search terms:
+Purchasing
2.24.020 Organization of
Purchasing Division.
2.24.180 Specifications.
2.24.050 Requisitions and
estimates.
Chapter 2.24 PURCHASING
SYSTEM
1507 Centralized purchasing.
2.24.030 Powers of
Purchasing Agent.
2.24.130 Purchase orders.
2.24.040 Additional_powers
of Purchasing Ag_ent.
2.24.060 Unforeseen needs.
1508 Competitive bidding.
2.24.090 Informal purchasing
procedures.
2.24.010 Rules and
regulations.
2.12.250 Finance
Department.
2.24.150 Forwarding of
purchase order.
2.24.160 Receipt of goods.
4.24.060 Board part of
government.
7.20.290 Disinterment for
exchange of graves, crypts,
or niches,
2.24.100 Formal bidding
procedures.
2.24.070 Competitive
bidding.
2.24.140 Encumbrance of
funds,
1602 Term of franchise.
3.12.360 Obstructing
pedestrian or vehicular
traffic.
2.24.080 Exceptions to
competitive bidding,
2.24.110 Sale of real
propeft
Article 2 ADMINISTRATION
Chapter puRCRASIN5 sysur
2.24.080 Exceptions to competitive biddin
The competitive bid procedure is not applicable to those instances where:
(a) Competition does not exist, such as membership in professional
organizations, meetings, conventions, travel, legal advertising, public utilities, and
proprietary items of original equipment manufacturers and/or their authorized
exclusive distributors;
(b) Competitive bid procedures have already been utilized, such as in
purchasing from Federal, California State or County governments, including, State
of California agencies and agencies of counties, cities and special districts in the
State of California and these materials and services are supplied to the City at the
same or better price, as was obtained through the Federal, State of California
agencies and agencies of counties, cities and special districts in the State of
California competitive bid procedures;
(c) Items to be purchased are for resale to the public, such as but not limited
to the Civic Auditorium snack bar or cemetery plot marking products;
(d) Contracts are for professional services;
(e) The work involved consists of maintenance or repair of public buildings,
public works, streets, drains, sewers, utilities, parks or playgrounds by City
employees;
(f) Items to be purchased are circulating library materials, including books,
periodicals, films, and recordings.
(Prior code § 2506A; amended by Ord. No. 1284CCS, adopted 8/23/83; Ord. No.
1743CCS § 5, adopted 5/10/94; Ord. No. 1998CCS § 5, adopted 1/9/01)
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Santa Monica Municipal Code (Santa Monica, California)
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I Search Results
Search terms:
+Purchasing
2.24.020 Organization of
Purchasing Division.
224480 Specifications.
2.24.050 Requisitions and
estimates.
Chapter 2.24 PURCHASING
SYSTEM
1507 Centralized purchasing.
2.24.030 Powers of
Purchasing Agent.
1223,130 Pur .chase orders.
2.24.040 Additional powers
of Purchasing Agent
2.24.060 Unforeseen needs.
11508 Competitive bidding. 1
2.24.090 Informal purchasing
xocedures.
2.24.010 Rules and
regulations.
2.12.250 Finance
Department.
2.24.150 Forwarding of
purchase order.
2.24.160 Receipt of goods.
4.24.Q ... BoarcLort of
government.
7.20.290 Disinterment for
exchange of graves, crypts,
or niches.
2.24.100 Formal bidding
procedures.
2.24.070 Competitive
bidding.
2.24.140 Encumbrance of
funds.
11602 Term of franchise.
3.12.360 Obstructing
Pedestrian or vehicular
traffic.
2.24.080 Exceptions to
com_Witive bidding„,
2.24.110 Sale of real
property.
Santa Monica Municipal Code
Up Previous Next Main
Article 2 ADMINISTRATION
Chap_ter 2.24 PURCHASING SYSTEM
remove highlighting]
2.24.090 Informal purchasing procedures.
(a) Convenience Purchase Orders.
(1) Individual purchases related to the City's maintenance requirements,
amounting to less than five thousand dollars aggregate amount per purchase order
are exempted from competitive bid requirements;
(2) In the event that the savings potential clearly does not justify this
exemption, open market request-for-quotation procedures shall be followed.
(b) Open Market Orders.
(1) Except as provided in Sections 2.24.071, 2.24.073, 2.24.080 or 2.24.090,
public works projects, all purchases of supplies, materials, equipment or
contractual services, and all sales of personal property of the City which has been
obsolete or unusable, or for any other reason is to be disposed of, which are not
more than one-hundred thousand dollars in amount, shall be made in the open
market, without the requirement of formal newspaper advertising.
(2) All open market purchases, wherever possible, shall be based upon not
less than three competitive bids and shall be awarded to the person offering the
overall best bid.
(3) The Purchasing Agent shall solicit bids by direct mail or electronic mail
request to prospective vendors, or by telephone, and by public notice on the
bulletin board in the Purchasing Department. The Purchasing Agent shall keep a
record of all open market orders and the bids submitted in competition thereon, and
such records shall also be open to public inspection.
(c) (1) Notwithstanding any other provisions of this Section, prior to awarding a
contract the Purchasing Agent shall provide a one percent price preference to all
City businesses submitting open market order bids upon which will be levied a
State of California sales tax. The Purchasing Agent shall administer the bidding
preference so that bid amounts received from City businesses are reduced by one
percent solely to determine the rank order of the bids in the selection process. It
after the one percent preference is applied, a City business has submitted a bid
which is equal to or is lower than all other bids, the Purchasing Agent shall award
the contract to the City business so long as it is otherwise the most responsible and
best bidder.
(2) For purposes of this provision a City business shall be a business licensed
by the City of Santa Monica to conduct business in the City and which shall have a
place of business within the City other than a post office mailing box. (Prior code §
2507; amended by Ord. No. 1284CCS, adopted 8/23/83; Ord. No. 1743CCS § 6,
adopted 5/10/94; amended by Ord. No. 1900CCS § 1, adopted 2/17/98; Ord. No.
1951CCS § 1, adopted 9/14199; amended by Ord. No. 1998CCS § 6, adopted
1/9/01)
,40.«
7/18/200(
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Search Print resultsThe West Hollywood Municipal Code
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ED WEST HOLLYWOOD
MUNICIPAL CODE
Covering Ordinances
Through Ordinance No.
06-734 'This Edition
Updated June 16, 2006.1
O Title 1 GENERAL
PROVISIONS
c2 Title 2 ADMINISTRATION
AND PERSONNEL
0 ARTICLE 1 - CITY
ADMINISTRATION
ARTICLE 2 -
DEPARTMENTS
EDI ARTICLE 3 -
COMMISSIONS
AND BOARDS
EU3 ARTICLE 4 -
MISCELLANEOUS
ED Title 3 REVENUE AND
FINANCE
O Title 4 (RESERVED)
O Title 5 BUSINESS
LICENSES,
REGULATIONS AND
PERMITS*
0 Title 6 (RESERVED)
0 Title 7 HEALTH
43 Title 8 (RESERVED)
0 Title 9 PUBLIC PEACE,
MORALS AND SAFETY
0 Title 10 VEHICLES AND
TRAFFIC
u34 Title 11 STREETS,
SIDEWALKS, PUBLIC
PLACES AND
INFRASTRUCTURE
EE;/ Title 12 (RESERVED)
O Title 13 BUILDINGS AND
CONSTRUCTION
rg3 Title 14 FIRE
PROTECTION
4E3 Title 15
ENVIRONMENTAL
PROTECTION,
POLLUTION AND SOLID
WASTE
O Title 16 (RESERVED)
O Title 17 RENT
•
All Adi Se=
3.08.010 Authorization to Execute Contracts.
The City Manager, and his/her designee, is authorized to enter
into the following types of contracts:
a. Contracts required of an applicant as a condition of
approval of a permit, license, or other grant of approval not involving
expenditure of city funds;
b. Contracts involving the allocation of county, state or federal
funds pursuant to a program previously approved by the City Council
where the form of contract is standard and used in substantially the
same form by all applicants and has been approved by the City
Attorney;
c. Contracts involving the expenditure of city funds where:
1. The funds are used in connection with residential or
commercial revitalization of private property,
2. The program and its budget have been approved by
the City Council,
3. The funds are used in connection with grants that are
allocated on a first-come, first-serve basis in accordance with
established criteria,
4. The same or substantially the same contract is used in
all cases,
5. The fowl of the contract has been approved by the
City Attorney;
d. Contracts for services for a sum not to exceed twenty-five
thousand dollars ($25,000.00) for which funds have been budgeted in
the current year budget and where the form of the contract has been
approved by the City Attorney;
e. Contracts or amendments to contracts which the City
Council has expressly authorized the City Manager to execute; and
f. Amendments to contracts previously approved by the City
Council not involving expenditure of city funds, or modifying the
duration and/or amount of the contract in strict accordance with a
specific line item in the approved city budget.
(Ord. 01-605 1, 2001: Ord. 97-505 5 2 (part), 1997: prior code § 2700)
Records: 2479 Hits: 0
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Page 1 of 1
WEST HOLLYWOOD
MUNICIPAL CODE
Covering Ordinances
Through Ordinance No.
06-734 'This Edition
updated June 16, 2006.1
0 Title 1 GENERAL
PROVISIONS
Ea Title 2 ADMINISTRATION
AND PERSONNEL
0 ARTICLE 1 - CITY
ADMINISTRATION
0 ARTICLE 2 -
DEPARTMENTS
ED ARTICLE 3 -
COMMISSIONS
AND BOARDS
0 ARTICLE 4 -
MISCELLANEOUS
ga Title 3 REVENUE AND
FINANCE
O Title 4 (RESERVED)
O Title 5 BUSINESS
LICENSES,
REGULATIONS AND
PERMITS*
Title 6 (RESERVED)
O Title 7 HEALTH
O Title 8 (RESERVED)
0 Title 9 PUBLIC PEACE,
MORALS AND SAFETY
Title 10 VEHICLES AND
TRAFFIC
0 Title 11 STREETS,
SIDEWALKS, PUBLIC
PLACES AND
iNFRASTRUCTURE
.53 Title 12 (RESERVED)
0 Title 13 BUILDINGS AND
CONSTRUCTION
0 Title 14 FIRE
PROTECTION
O Title 15
ENVIRONMENTAL
PROTECTION,
POLLUTION AND SOLID
WASTE
42 Title 16 (RESERVED)
0 Title 17 RENT
STABILIZATION*
ED Title 18 (RESERVED)
O Title 19 ZONING
3.08.060 Bidding Procedures.
a. Purchases of supplies and equipment of an estimated value
of greater than twenty-five thousand dollars ($25,000.00) shall be by
written contract with the lowest responsible bidder after notice. Such
notice shall invite sealed bids, include a general description of the
supplies or equipment to be purchased, state where bid forms and
specifications may be obtained and specify the time and place of the
opening of bids.
b. Such notice shall be published in a newspaper of general
circulation printed and published in the city, of if there is none, it shall
be posted in not less than three public places in the city designated by
ordinance for the posting of public notices. The City Manager shall also
mail a copy of such notice to anyone who has requested to be so
notified.
c. All notices pursuant hereto shall be published, posted or
mailed, as the case may be, not less than ten days prior to the date
specified for the opening of bids.
d. When deemed necessary by the City Council, bidder's
security may be prescribed in the public notices inviting bids. Bidders
shall be entitled to the return of bid security provided that a successful
bidder shall forfeit its bid security upon refusal or failure to execute the
contract within ten days after the notice of award of contract has been
mailed, unless the city is responsible for the delay. The City Council
may, on refusal or failure of the successful bidder to execute the
contract, award it to the next lowest responsible bidder. If the City
Council awards the contract to the next lowest bidder, the amount of
the lowest bidder's security shall be applied by the city to the difference
between the low bid and the second lowest bid, and the surplus. if any,
shall be returned to the lowest bidder.
e. Bids shall be submitted to the City Manager and shall be so
identified on the envelope. Bids shall be opened at the time and place
specified in the notice inviting sealed bids. Copies of all bids received
by the City Manager shall be retained by the City Clerk for public
inspection during regular business hours for not less than two years
following the bid opening.
f. The City Council may reject any and all bids, may waive any
irregularity in any bid, and may re-advertise for bids.
g.
In the event that the City Council decides to award the
contract, the contract shall be awarded to the lowest responsible bidder
except as otherwise provided herein.
h. If two or more bids received are for the same total amount
rcoritent flitList
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Page 1 of 1
The West Hollywood Municipal Code
cga WEST HOLLYWOOD
MUNICIPAL CODE
Covering Ordinances
Through Ordinance No.
06-734 fThis Edition
Updated June 16, 2006.1
ED Title 1 GENERAL
PROVISIONS
Title 2 ADMINISTRATION
AND PERSONNEL
caa
ARTICLE 1 - CITY
ADMINISTRATION
ED ARTICLE 2 -
DEPARTMENTS
41ARTICLE 3 -
COMMISSIONS
AND BOARDS
Ega ARTICLE 4 -
MISCELLANEOUS
O Title 3 REVENUE AND
FINANCE
0 Title 4 (RESERVED)
O Title 5 BUSINESS
LICENSES,
REGULATIONS AND
PERMITS*
Of Title 6 (RESERVED)
0 Title 7 HEALTH
Eglf Title 8 (RESERVED)
raa Title 9 PUBLIC PEACE,
MORALS AND SAFETY
0 Title 10 VEHICLES AND
TRAFFIC
O Title 11 STREETS,
SIDEWALKS, PUBLIC
PLACES AND
INFRASTRUCTURE
O Title 12 (RESERVED)
ED Title 13 BUILDINGS AND
CONSTRUCTION
raz Title 14 FIRE
PROTECTION
0 Title 15
ENVIRONMENTAL
PROTECTION,
POLLUTION AND SOLID
WASTE
Egi Title 16 (RESERVED)
Ca Title 17 RENT
STABILIZATION*
O Title 18 (RESERVED)
GI Title 19 ZONING
noryhtnh.tr•r•
earth
bleuMent
3.08.070 Purchases on the Open Market.
Purchases of supplies and equipment of an estimated value of
twenty-five thousand dollars ($25,000.00) or less may be made by the
City Manager on the open market after solicitation of proposals from
prospective sellers in accordance with administrative regulations
promulgated by the City.
(Ord. 01-605 § 3, 2001: Ord. 97 7505_ 5 2 (part), 1997: prior code 5 2706)
3.08.080 Exceptions.
Sections 3.08.060 and 3.08.070 shall not apply to the purchase of
supplies and equipment under the following circumstances:
a. Such supplies or equipment are of an estimated value of less
than two thousand five hundred dollars ($2,500.00);
b. Such supplies or equipment are unique because of their
quality, durability, availability, or fitness for a particular use;
c. Such supplies or equipment are available from only one
source;
d. The City Manager has determined that exigent
circumstances require the immediate purchase of such supplies or
equipment;
e. Such supplies or equipment are provided by an independent
contractor pursuant to an agreement with the city for the furnishing of
labor and materials for other than the construction of a public works
project.
(Ord. 01-605 § 4, 2001: Ord. 97-505 § 2 (part), 1997: prior code 5 2707)
3.08.090 Inspection and Testing.
The City Manager shall inspect supplies and equipment delivered
to determine their conformance with the specifications set forth in the
order or contract. The City Manager shall have authority to require
chemical and physical tests of samples submitted with bids and samples
of deliveries which are necessary to determine their quality and
conformance with specifications.
(Ord. 97-505 5 2 (part), 1997: prior code § 2708)
3.08.100 Discrimination.
10
All contractors contracting with the city pursuant to this chapter
_
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City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION
Staff recommends the City Council discuss criteria for re-bidding of City contracts
and direct staff as deemed appropriate.
BACKGROUND
The New Charter of the City of Culver City (New Charter) took effect on July 1, 2006.
Sections 1604 (Contracts for Public Works) and 1605 (Purchasing of Supplies,
Materials, and Equipment) provide general guidance on procedures related to the
purchase of supplies, materials, and equipment required by City departments.
Specifically, Section 1604 requires the City Council: “[to] establish, by ordinance,
procedures to ensure the integrity of awarding all contracts for the construction or
improvement of public works, buildings, streets, drains, sewers, utilities, parks and
playgrounds.” Section 1605 requires the City Council “[to] establish procedures for
the purchasing, storing and distribution of all supplies, materials and equipment
required by any City department.”
The passage of the New Charter provides the City Council with an opportunity to
update the current sections of the Municipal Code that, in some cases, are
inconsistent, somewhat confusing, and date back to 1965. While Municipal Code
amendments must be accomplished via ordinance, the purpose of this report is to
provide the Council with an opportunity to provide general direction related to a
single area of interest to the City Council: the procedures applicable to when city
contracts shall be subject to re-bidding. The general direction received from the City
Council will be used by staff while drafting the ordinance related to purchasing for
presentation to the City Council for consideration at a future City Council meeting.
Meeting Date: 08/14/06 Item Number: A-6
AGENDA ITEM: Discussion of Criteria for Re-bidding of City Contracts.
Contact Person/Dept.: Martin R. Cole, ACM Phone Number: (310) 253-6000
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification: Master Notification List (08/09/06)
Department Approval: Martin R. Cole
(08/09/2006)
City Manager’s Approval: Jerry B.
Fulwood (08/09/2006)
City Controller Approval: Marlee Chang
(08/09/2006)City of Culver City, California
City Council Agenda Item Report
During prior City Council meetings, the City Council has expressed an interest in
updating and clarifying the City’s bidding and purchasing procedures. Generally
speaking, City Council members expressed the following:
The importance of bidding, when practical and cost-efficient, to encourage
competition and achieve lower costs for City purchases; and,
Limitation, when practicable, continual renewal of contracts to the same
vendor year after year.
Members did express an interest in reviewing the procedures related to the renewal
of contracts to the same vendor. This interest included contracts awarded in a
single fiscal year and over two or more fiscal years.
During discussion of this item, the City Council may wish to consider two important
components related to City contracts: (1) Amounts to the Same Vendor, and (2)
Time Limits to the Same Vendor. These will both be discussed below.
(1) Amounts to the Same Vendor
In prior meetings, the City Council has expressed the desire to establish some dollar
limit on the amount payable to a single vendor. In the past, the amount discussed
was $10,000.
The City Council may wish to discuss the applicability of the $10,000 limit in the
context of how this limit is applied. For example, is it applicable on a “per fiscal year
basis” where the dollar limit established by the City Council is renewed each fiscal
year? Or is it the Council’s desire to place an aggregate, lifetime limit of $10,000 to
an individual vendor?
(2) Time Limits to the Same Vendor
Does the City Council desire to place a time limitation on contract renewal to an
individual vendor regardless of contract amount?
DISCUSSION
When developing a policy related to contract renewal, it is important to balance the
benefits of competitive bidding with the time and resources necessary to complete
the competitive bidding process. Additionally, there are some vendors who provide
a specialized product or service. In such cases, obtaining a second (or more) bid
may be impossible or difficult. A third important aspect of some contracts is the
historical knowledge of either the City as a whole or of a specific project (for City of Culver City, California
City Council Agenda Item Report
example, Symantec). In these cases, the historical knowledge and experience has
an indirect value that may outweigh any direct dollars saved through the competitive
bidding process.
When determining the criteria for requiring a re-bid of contracts, the City Council
should also Consider the potential impacts on a project’s time frame and the related
budget impacts.
To assist the City Council, staff has provided excerpts from the municipal codes from
the cities of Beverly Hills, Santa Monica, and West Hollywood.
Additional Items Related to Purchasing
Based upon a review of the municipal code sections from our fellow Westside Cities
Council of Governments members, there are other items related to purchasing (such
as contract amounts executable by staff, purchase levels requiring purchase orders,
and purchase levels where formal bidding is required) for which staff will request
Council direction. As can be seen from the attachments, each City has determined
to set different levels which they determined worked best in their City.
On these additional items, the City Council may wish to direct the Budget and
Finance Committee to provide further analysis and discussion on the subject of
purchasing and present a comprehensive recommendation to the full Council for
consideration.
FISCAL ANALYSIS
Staff believes implementation of a consistent contract bidding policy will result in a
positive fiscal impact to the City because of expected savings and efficiencies.
However, the amount of that impact is difficult to quantify at this time.
ATTACHMENTS
1. Municipal Code Sections from Beverly Hills, Santa Monica, and West Hollywood
OPTIONS
The City Council may wish to consider any one or a combination of the following
options:
(1) Set a dollar limit which, once reached, triggers re-bidding of the contract;
(2) Set a time limit which, once reached, triggers re-bidding of the contract;City of Culver City, California
City Council Agenda Item Report
(3) Provide an exemption from re-bidding for certain classes of contracts (for
example sole source vendors, limited source vendors, or professional services
providers); and/or
(4) Refer this issue to the Budget and Finance Committee for further analysis and
recommendation to the full City Council
RECOMMENDATION
Staff recommends the City Council:
Discuss this item and direct Staff as deemed appropriate.