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HomeMy WebLinkAboutTC Ord 1998-10-21 ORDINANCE NO. 440 N.S. AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TIBURON ADDING CHAPTER 3A OF THE TIBURON MUNICIPAL CODE, REGULATING THE LETTING OF TOWN CONTRACTS The Town Council of the Town ofTiburon does ordain as follows: SECTION 1. A new Chapter 3A, entitled "Town Contracts" is hereby added to the Tiburon Municipal Code to read as follows: CHAPTER 3A TOWN CONTRACTS ARTICLE I. General Provisions Section 3A-l Definitions Section 3A-2 General Requirements Section 3A-3 Contract Authority of the Town Manager ARTICLE II Purchase Contracts Section 3A-4 Contract Authority: Town Finance Director; Other Department Heads Section 3A-5 Purchasing Procedures Section 3A-6 Optional Alternative Procedure for Purchases which Exceed $25,000 Section 3A- 7 Rejection of Price Quotations and Bids ARTICLE ill Contracts for Services Section 3A-8 Contract Authority of the Department Heads Section 3A-9 Service Contract Procedures Section 3A-I0 Rejection of Price Quotations and Bids ARTICLE IV Minor Public Works Contracts Section 3A-ll Minor Public Works Contracts which do not exceed $5000 Ordinance No. 440 N.s. - Contracts Adopted 10/21/98 - Effective 11/20/98 1 -.-- .---.- Section 3A-12 Minor Public Works Contracts which exceed $5000 Section 3A-13 Alternative Procedure: Minor Public Works Contracts Section 3A-14 Emergencies ARTICLE V Public Works Contracts for more than $75,000 Section 3A-15 General Section 3A-16 Notice Inviting Bids Section 3A-17 Bids: Rejection and Readvertisement. Section 3A-18 Choice of Identical Bids. Section 3A-19 No Bids Received. Section 3A-20 Emergencies. Section 3A-21 Bidders; Presentation and Security ARTICLE I. GENERAL PROVISIONS Section 3A-1. Definitions (a) "Contract" shall mean any binding agreement between the Town and any individual, public agency, corporation, partnership or other entity. Contract shall also mean, without limitation, any document which purports to transfer liability to the Town or in which purportedly obliges the Town to indemnify, defend and/or hold harmless any individual, public agency, corporation, partnership or other entity. (b) A "Minor Public Works Contract" shall mean a contract for a Public Works Project whose value does not exceed $75,000. (c) A "Major Public Works Contract" shall mean a contract for a Public Works Project whose value exceeds $75,000. (d) Except where otherwise indicated, "Public Works Project" shall mean any project meeting the definition of a "Public Project" under 922002 of the Public Contracts Code, as amended, or any successor statute. Ordinance No. 440 N.s. - Contracts Adopted 10/21/98 - Effictive 11/20/98 2 Section 3A-2. General Requirements. (a) No contract shall be valid or binding upon the Town unless it is entered into and executed in accordance with this Chapter. (b) Notwithstanding anything in this ordinance to the contrary, no contract shall be valid or binding upon the Town unless it has been approved as to form by the Town Attorney prior to execution on behalf of the Town unless, in the judgement of the Town Manager, special circumstances are present such that the Town's interest in entering into the contract on an expedited basis render it impracticable to obtain the Town Attorney's approval. Section 3A-3. Contract Authority of the Town Manager. The Town Manager is hereby authorized to enter into and execute on the behalf of the Town, without prior approval of the Town Council, any contract: (a) For which monies have been appropriated or budgeted and for which there is an unexpended and unencumbered balance of such appropriation sufficient to pay the expense of the contract and which is (1) For the purchase of supplies, materials or equipment or general services or public works and the total expenditure does not exceed twenty thousand dollars ($20,000); or (2) For professional services or employment and the total expenditure does not exceed ten thousand dollars ($10,000); or (3) For emergency purchases, services or public works projects, where the amounts are greater than set forth in subsection (1) and (2). In an emergency situation, this authority shall extend beyond appropriated or budgeted funds to the extent necessary to protect the health and safety of persons or property. (b) Contracts for community social or recreational services, or for the use of Town property or facilities for a period not to exceed one day, in accordance with Town policy, which require no payment of money by the Town or which provide for the payment of money to the Town in an amount not in excess often thousand dollars ($10,000). Ordinance No. 440 NS. - Contracts Adopted 10/21/98 - Effective 11/20/98 3 (c) Leases of Town property not authorized under subsection (b) for a period ofless than six months. (d) Right of Entry agreements. ARTICLE n Purchase Contracts Section 3A-4. Contract Authority: Town Finance Director; Other Department Heads. (a) The Finance Director, or other person designated by the Town Manager shall be authorized to negotiate and execute contracts for budgeted supplies, materials and equipment for the Town up to a maximum of$5000. (b) The Town Attorney, Planning Director, Police Chief, Superintendent of Public Works and Town Engineer shall be authorized to negotiate and execute contracts for the Town for budgeted supplies, materials and equipment required by their respective departments up to a maximum of $2500. Section 3A-5. Purchasing Procedures. (a) Formal bidding shall not be required for contracts for supplies, materials and equipment. Purchases of supplies, materials and equipment which exceed five thousand dollars ($5000) shall, whenever practicable, be based on at least three price quotations and shall be awarded on the basis of the price quotation most advantageous to the Town. Price quotations may be solicited by direct mail requests to prospective vendors or by telephone. (b) The Town may consider factors other than price in determining the most advantageous price quotation. These factors shall include, without limitation, the quality and performance of the subject supplies, materials and equipment; the ability of the vendor to complete the transaction in a timely fashion; quality of the vendor's performance in past transactions with the Town or others; and the ability of the vendor to provide future maintenance, repairs, parts and service. Ordinance No. 440 N.s. - Contracts Adopted 10/21/98 - Effective 11/20/98 4 (c) Price quotations shall not be required in any of the following circumstances: 1. In the judgement of the Town Manager, the solicitation of price quotations would for any reason be an idle act. 2. The purchase is for supplies, materials or equipment that can only be obtained from one vendor or manufacturer. 3. In the judgement of the Town Manager, there exist particular time considerations such that it appears likely that the solicitation of price quotations would be contrary to the interests of the Town. (d) Purchases of supplies, materials and equipment which do not exceed five thousand dollars ($5000) may be made without competitive proposals if the Finance Director (or other person designated by the Town Manager) determines that such procedure is in the best interests of the Town. Section 3A-6. Optional Alternative Procedure for Purchases which Exceed $25,000. For purchases of supplies, materials and equipment that exceeds $25,000, the Town Manager shall have the discretion to select a vendor pursuant to a formal bidding process, where in the Town Manager's judgement, such a process is likely to be to the advantage to the Town. Such procedure shall incorporate the methods used for selecting a contractor for a public works project by formal competitive bidding, as determined to be applicable by the Town Attorney, and may include, without limitation, the following: (a) Publication of a notice inviting bids. (b) Requirement of a bidder's bond or other similar security. (c) Requirement of a faithful performance bond or other similar security. Section 3A-7. Rejection of Price Quotations and Bids The Town Manager shall have discretion to reject any or all price quotations or bids presented. If the Town Manager rejects all price quotations or bids, the Town Manager may, in his discretion, readvertise for new price quotations or bids. If the Town Manager determines that the amount of price quotations or bids was excessive, he may contract to purchase the supplies, materials or equipment at a lower price without readvertising for price quotations or bids within his contract authority. In the event that such lower price exceeds the contract authority of the Town Manager, the Manager may refer the contract at such lower price to the Town Council which may Ordinance No. 440 N.s. - Contracts Adopted 10/21/98 - Effective 11/20/98 5 award the contract or take such alternate action with respect to the purchase as it determines to be in the best interests of the Town. ARTICLE ill Contracts for Services Section 3A-8. Contract Authority of the Department Heads. The Finance Director, Town Attorney, Planning Director, Police Chief, Superintendent of Public Works and Town Engineer shall be authorized to negotiate and execute contracts for the Town for budgeted services required by their respective departments up to a maximum of $2500. Section 3A-9. Service Contract Procedures. (a) Formal bidding shall not be required for contracts for services. Service contracts exceed five thousand dollars ($5000) shall, whenever practicable, be based on at least three price quotations and shall be awarded on the basis of the price . quotation most advantageous to the Town. Price quotations may be solicited by direct mail requests to prospective service providers or by telephone. (b) The Town may consider factors other than price in determining the most advantageous price quotation. These factors shall include, without limitation, the quality and performance of the subject services, the ability of the provider to provide the services in a timely fashion; the quality of the provider's performance in past transactions with the Town or others; and the ability of the provider to provide future related services that the Town may require. (c) Price quotations shall not be required in any of the following circumstances: 1. In the judgement of the Town Manager, the solicitation of price quotations would for any reason be an idle act. 2. The contract is for services that can only be obtained from one provider. 3. In the judgement of the Town Manager, there exist particular time considerations such that it appears likely that the solicitation of price quotations would be contrary to the interests of the Town. Ordinance No. 440 N.S - Contracts Adopted 10/21198 - Effective 11/20/98 6 (d) Contracts for services that do not exceed five thousand dollars ($5000) may be made without competitive proposals if the Finance Director (or other person designated by the Town Manager) determines that such procedure is in the best interests of the Town. Section 3A-I0. Rejection of Price Quotations and Bids The Town Manager shall have discretion to reject any or all price quotations. If the Town Manager rejects all price quotations, the Town Manager may, in his discretion, readvertise for new price quotations. If the Town Manager detennines that the amount of price quotations was excessive, he may contract to obtain the services at a lower price without readvertising for price quotations within his contract authority. In the event that such lower price exceeds the contract authority of the Town Manager, the Manager may refer the contract at such lower price to the Town Council which may award the contract or take such alternate action with respect to the purchase as it determines to be in the best interests of the Town. ARTICLE IV Minor Public Works Contracts Section 3A-ll. Minor Public Works Contracts which do not exceed $5000 Minor Public Works Contracts which do not exceed $5000 need not be competitively bid but shall be let in a manner that the Town Manager deems most advantageous to the Town. Section 3A-12. Minor Public Works Contracts which exceed $5000 Minor Public Works Contracts that exceed $5000 shall be let according to this Section. (a) The Town shall maintain a list of qualified contractors, identified according to categories of work. (b) All contractors on the list for the category of work being bid or all construction trade journals specified in S 22036 of the California Public Contracts Code, or both all contractors on the list for the category of work being bid and all construction trade journals specified in S 22036 of the California Public Contracts Code shall be mailed a notice inviting informal bids unless the product or service is proprietary. Ordinance No. 440 NS. - Contracts Adopted 10/21/98 - Effective 11/20/98 7 .--..- (c) All mailing of notices to contractors and construction trade journals pursuant to subdivision (b) shall be completed not less than 10 calender days before bids are due. (d) The notice inviting informal bids shall describe the project in general terms, how to obtain more detailed information about the project and state the time and place for the submission of bids. (e) The Town Manager shall have the authority to award informal contacts to contractors selected pursuant to this Section. (t) In the event that all responsive bids received are in excess of $75,000, the Town Council may by four-fifths vote award the contract, at $80,000 or less, to the lowest responsive bidder if the Council detennines that the Town's cost estimate for the project was reasonable. Section 3A-13. Alternative Procedure: Minor Public Works Contracts Notwithstanding anything in this Article to the contrary, the Town Manager shall have discretion to let any Public Works Contract by formal bidding as described in Article 5 of this Chapter. Section 3A-14. Emergencies In the event of any emergency, the Town Council may proceed to replace or repair any public facility without giving notice for bids to let contracts. If the emergency requires letting a contract before the Council can be convened, the Town Manager shall have the authority to let the contract. ARTICLE V Major Public Works Contracts Section 3A-15. General Major Public Works Contracts shall be let by formal competitive bidding as required by the Local Agency Public Construction Act, Public Contracts Code ~~ 20100 et seq. Section 3A-16. Notice Inviting Bids The notice inviting bids shall set a date for the opening of bids and shall be published at least twice, not less than five days apart, in a newspaper of general circulation, as required by statute. Ordinance No. 440 N.S. - Contracts Adopted /0/21/98 - Effictive /1/20/98 8 ---~...._,_...-.-- The first notice shall be published at least ten days prior to the date of opening of bids. In addition to the foregoing, the notice shall be published in such other newspapers and journals as the Town Engineer determines are likely to solicit the most favorable bids. Section 3A-17. Bids: Rejection and Readvertisement. The Council shall have the discretion to reject any bids presented and readvertise. After rejecting bids, the Council may pass a resolution by a four-fifths vote of its members declaring that the project can be performed more economically by the Town's own forces, day labor, or the materials or supplies furnished at a lower price in the open market. Upon adoption of the resolution, the Council need not readvertise and may have the project done in the manner stated without further compliance with this Chapter. Section 3A-18. Choice of Identical Bids. If two or more bids are the same and the lowest, the legislative body may accept the one that it chooses. Section 3A-19. No Bids Received. If no bids are received, the Council may have the project done without further compliance with this Chapter. Section 3A-20. Emergencies. In case of an emergency, the Council may pass a resolution by a four-fifths vote of its members declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health or property. Upon adoption of the resolution, it may expend any sum required in the emergency without complying with this Chapter. Section 3A-21. Bidders; Presentation and Security (a) All bids shall be presented under sealed cover. (b) All bids shall be accompanied by bidder's security in an amount equal to at least ten percent of the amount bid. The security shall be in the form of cash, a cashier's check payable to the Town, a certified check payable to the Town or a bidder's bond executed by an admitted surety insurer, payable to the Town. A bid will not be considered unless accompanied by the required security. Ordinance No. 440 N.s. - Contracts Adopted 10/21/98 - Effective 11/20/98 9 _._--,._....__....-~ -,..-'..- (c) If the successful bidder fails to execute the contract, the amount of bidder's security shall be forfeit to the Town except as otherwise may be provided by law. SECTION 2 SEVERABILITY. If any section, subsection, clause, sentence, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of a Court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. The Town Council of the Town of Tiburon hereby declares that it would have passed this Ordinance, any section, subsection, sentence, clause or phrase thereof, irrespective of the fact that anyone or more sections, subsections, sentences, clauses, or phrases may be declared invalid or unconstitutional. SECTION 3. EFFECTIVE DATE. This Ordinance shall take effect and be in force thirty days after the date of passage, and before the expiration of fifteen (15) days after passage by the Town Council, a copy of the ordinance shall be published with the names of the members voting for and against it at least once in a newspaper of general circulation published in the Town of Tiburon. This ordinance was introduced at a regular meeting of the Town Council of the Town of Tiburon on October 7, 1998, and was adopted at a regular meeting of the Town Council of the Town ofTiburon on October 21, 1998, which was noticed pursuant to Government Code Section 50022.3, by the following vote: AYES: COUNCILMEMBERS: Bach, Gram, Hennessy, Matthews, Thompson NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None HARRY S. MATTHEWS, MAYOR Town ofTiburon ATTEST: DIANE L.CRANE, TOWN CLERK Ordinance No. 440 N.s. - Contracts Adopted 10/21/98 - Effective 11/20/98 10 .--.....--.-- -....---..--