HomeMy WebLinkAbout12-06-2011, C4-TRENCH REPAIR JOB ORDER CONTRACTMeet,ngD'te 12/6/1 1
Item NunJ,e r
counci lacenOa 12epoRt
C I T Y O F S A N L U I S O B I S P O
FROM :
Jay D . Walter, Director of Public Works "W
Prepared By : Matt Horn, Supervising Civil Enginee r
SUBJECT : TRENCH REPAIR, JOB ORDER CONTRACT, SPECIFICATION NO .
9109 2
RECOMMENDATIO N
1.Approve plans and specifications for the Trench Repair, Job Order Contract, Specificatio n
No . 91092 .
2.Authorize staff to advertise for bids and authorize the City Manager to award the contract t o
the lowest responsible bidder .
DISCUSSIO N
Backgroun d
Throughout the course of the year, small street repairs need to be completed . Repairs are usuall y
needed because an excavation has occurred to repair an underground pipeline, or an area of th e
street has settled significantly . When a water or sewer pipe is repaired, Utility Department staff
completes the work to the pipeline and then temporarily patches the roadway . Engineerin g
Division staff then collects the location information and periodically issues a constructio n
contract to replace the temporary patch with a stronger and more permanent asphalt patch . This i s
currently occurring approximately every 12 months . In order to streamline this activity and allo w
these permanent repairs to be completed more rapidly, while still retaining the benefits of lo w
bids, staff is proposing re-establishing a Job Order Contract (JOC) for trench repair work .
JOC is an alternative bidding procedure that was approved by the voters and added to the City's
Charter on November 5, 2002 . (See Attachment 1). Simply put, it is an on-call service contract .
The JOC provisions allow the City to perform maintenance related construction projects fo r
repair, remodeling or other repetitive work under a unit price contract . The City firs t
implemented a JOC program shortly after the Charter amendment was approved by the voters .
The Gordian Group was retained to develop the JOC program in which 160,000 pre-price d
construction tasks were developed and the contractors bid a percentage mark-up . The Gordian
Group developed the specifications and a contract was awarded in August 2003 . The City used
this contract for about 2 years .
Multiple projects were completed using the JOC and the success of the program evaluated . Th e
160,000 pre-priced construction tasks covered every imaginable type of work and broke wor k
down into very small elements, such as traffic control where the City paid per cone costs . Thi s
minute breakdown required staff to spend a great deal of time unraveling a cost proposal to see i f
A
Trench Repair,Job Order Contract,Specification No .91095 Page2
it made sense for the work proposed to be completed or if there were unnecessary elements in th e
proposal . The additional staff time needed for review made controlling City costs more
challenging .
Engineering staff has revisited the JOC concept and believes that it can be used to creat e
contracts at low cost to the City in a more rapid timeframe, but will be better as a "focuse d
program". Instead of bidding a JOC program which covers every imaginable type of work an d
essentially pays the contractor for each worker and each piece of equipment that is used t o
complete the work, staff has developed a program that bids the finished product . This Trenc h
Repair Job Order Contract has been developed to pay the contractor for each square foot o f
roadway repaired regardless of number of pieces of equipment or the number of staff th e
contractor plans to use . This methodology is consistent with other types of projects the Cit y
completes and should make it simpler for the contractors to prepare and submit proposals .
How the contract would wor k
The City has a need for these types of repairs, the most common being roadway repairs resultin g
from utility line work or a base failure on a busy street . Engineering staff will be notified of th e
specific sites needing repair by maintenance staff in both the Utilities and Public Work s
departments . Every few months, Engineering staff and the selected contractor will complete sit e
visits and quantify the square footage of the accumulated repairs . With this information th e
contractor will calculate the cost of the repairs based on the contract prices established throug h
the Trench Repair contract .
Once staff has verified the contractor's calculation is correct, a purchase order will be issued fo r
the work, authorized by the City Engineer for projects of $25,000 or less, and by the Cit y
Manager for all other projects within approved budget. Only those work orders in excess o f
approved budget will return to Council for approval . These authorization limits have been set by
the Council in Resolution 9444 as part of the JOC program . (See Attachment 2).
Once the work is authorized at the appropriate level and budget transfer completed, a work orde r
would be issued to complete the repair and work can commence . Payment and close out of th e
individual work orders will generally follow existing practices . Staff will be monitoring th e
effectiveness of this type of focused JOC, and if the program works well, staff anticipate s
releasing other focused JOC projects to handle the more routine project work .
Staff has considered completing this type of work on a regular basis with maintenance forces i n
the Public Works department in the past . Such an approach can work and staff does respon d
regularly to immediate needs such as the waterline break on California . However, this will reduc e
the volume of preparation work street maintenance staff can complete in advance of th e
microsurfacing project . That will cause those paving projects to increase in price and cost mor e
in overhead for contract preparation and inspection . By operating this streamlined Trench Repai r
project, the staff remains focused on delivering Measure Y priority paving work, while stil l
providing an increased responsiveness for utility trench repairs . Contract preparation costs ar e
kept to a minimum as well, by using this on-call service concept .
Trench Repair,Job Order Contract,Specification No .91095 Page 3
CONCURRENCE S
This project is exempt from environmental review since it is a maintenance and replacemen t
project and a Notice of Exemption has been filed through the Community Developmen t
Department .
FISCAL IMPAC T
This contract does not obligate any funds for construction . Once the contract has been executed ,
staff will begin scoping work and issuing work orders . Funding will be transferred into thi s
project account from previously approved and funded Capital Improvement Plan projects, not-to-
exceed the funding authorized by Council or authorization limits as approved by Counci l
Resolution Number 9444 (2003 Series). Transfers of existing appropriations between project s
will be completed in accordance with Council adopted financial policies . The funding source s
for this work would be the Street Reconstruction and Resurfacing (R&R) Master Account, Wate r
Distribution System Improvement Master Account and the Collection System Improvement
Master Account .
ALTERNATIV E
Deny authorization to advertise.The City Council could choose not to authorize th e
advertisement of the project . This is not recommended because the JOC program is believed t o
be a cost-effective way in which to get necessary maintenance work complete in a shorte r
timeframe .
ATTACHMENT S
1.Council Agenda Report, Authorizing JO C
2.Resolution 9444 (2003 Series )
AVAILABLE FOR REVIEW IN THE COUNCIL OFFIC E
Trench Repair JOC – Specification s
\\chstore4\Team\Council Agenda Reports\Public Works CAR\2011\CIP\91092 Trench Repair\91092 CAR Advertise .doc
Attachment 1
counci lAacenOa Repoat
Meeting Date 4-15-03
Item Numbrr Jt 112 A
C I T Y O F S A N L U I S O B I S P O
FROM :
Michael D. McCluskey, Public Wor1Ss Directo r
Bill Statler, Director of Finance
Jay D . Walter, City Enginee r
SUBJECT: JOB ORDER CONTRACTING AND ALTERNATIVE BIDDING PROCEDURE S
CAO RECOMMENDATIO N
Introduce an ordinance amending Chapter 3 .24 of the Municipal Code to provide for the use of Jo b
Order Contracting and Alternative Bidding Procedures for construction projects .
DISCUSSIO N
Backgroun d
The City's Mission Statement and the Council's budget and fiscal policies both strongl y
encourage enhancements in productivity, including changing cumbersome procedures .
In December 2001, the Director of Public Works authorized staff to research additional method s
to accomplish construction projects . After a review of the existing Public Contract Code an d
inquiring of several cities and counties, we found two alternative methods that are in broad us e
throughout the state : Job Order Contracts (JOC) and the Uniform Public Construction Cos t
Accounting Act (Alternative Bidding Procedures), which offer added methods for cities t o
accomplish construction projects . They are particularly beneficial when focusing on smaller ,
repetitive-type projects that can be accomplished quickly without the need for the same forma l
plans and specifications that larger, more complex projects require . Based on the experience of
other agencies (including Cal Poly and the County), these added methods could significantl y
enhance the Engineering Division's ability to deliver construction projects for the City faster an d
at a lower cost .
Charter Amendments . On May 7, 2002, the Council . conceptually implementing the two
alternative methods for construction project contracting ; and on June 18, 2002, formall y
authorized placing a measure on the November 5, 2002 ballot to amend the City Charter to allo w
their use . The voters overwhelmingly approved Measure L-02 by 77%.
Current Policies and Procedures.The City's current purchasing policies and procedure s
governing construction projects are set forth in a number of documents, including the Californi a
Public Contract Code, City Charter, Municipal Code, Purchasing Resolution and Financia l
Management Manual . In addition to amending the Charter, the City now needs to amend th e
Municipal Code regarding formal bidding procedures (Article III of Chapter 3 .24) in order t o
implement JOC and alternative bidding procedures . The City 's Purchasing Resolution will als o
need to be amended and this is the subject of a companion agenda item .
Attachment 1
Job Order Contracting and Alternative Bidding Procedures
Page 2
Municipal Code Amendment s
Only Article III of the City's purchasing ordinance (Chapter 3 .24 of the Municipal Code), whic h
addresses the City's formal bidding procedures, needs to be amended to implement JOC an d
alternative bidding procedures : all other provisions of the City's purchasing ordinance remain th e
same . The proposed revisions to Article III are highlighted in Exhibit A of the attache d
ordinance (the new text is shaded and the deleted text is struek-through). The followin g
summarizes the changes .
Job Order Contracting .As previously discussed with the Council, JOC allows the use of a fixe d
unit-price contract for indefinite quantity contracts for maintenance-type construction contracts .
In preparing the specifications for this master contract, a detailed and comprehensiv e
"Construction Task Catalog" with general specifications and a "baseline" cost is prepared fo r
each specific task that is allowed to be performed under the master contract . The City the n
invites formal bids from general contractors, who will bid using a percentage adjustment facto r
(up or down) to be applied against the "baseline" unit prices in the bid document . The JO C
award is then made to the contractor with the lowest adjustment factor .
Work is subsequently performed under the JOC by the use of individual Task Orders, which ar e
specific proposals agreed to by the City and the contractor on a project-by-project basis using th e
fixed unit-prices specified in the master contract . The authority to approve Task Orders is se t
forth in the City's Purchasing Resolution . As discussed in the companion agenda item, w e
recommend that the City Engineer be authorized to approve JOC Task Orders up to $25,000 ; and
that CAO approval be required for all Task Orders in excess of this amount . Regardless of th e
amount, all Task Orders will be subject to the requirement that the amount be equal to or les s
than the budget amount specifically approved by the Council for each project . This will b e
verified through the rigorous "CAO Report" and purchase order process already in place for al l
purchases .
On December 17, 2002, the Council approved contracting with The Gordian Group to develo p
the extensive catalog and specifications needed to implement the JOC system . We plan to return
to the Council for approval of these documents in June 2003 . Once these are approved by th e
Council, with the addition of Section 3 .24.145 in the attached Municipal Code amendment, w e
will be then be able to implement the JOC program in accordance with Charter requirements .
Alternative Bidding Procedures.Until the Charter amendment approved by the voters i n
November 2002, all City construction contracts were governed by a Charter provision adopted i n
1955, which in turn referenced a State Public Contract Code dating to the 1930's . The affect of thi s
was to limit the ability for City employees to do minor construction work ($5,000 or less, includin g
staff time, materials and equipment use), and to require formal bids for all construction work i n
excess of $5,000 . While these dollar limits made sense seventy years ago, they don't any longer .
The framers of the 1955 Charter tried to account for the passage of time by linking dollar limits to a
specific section of the State Public Contract Code, rather than specifying a dollar amount in th e
Charter itself, under the reasonable assumption that over time, the State would amend the dollar
amounts in the referenced code section . Unfortunately, the State never has . Instead, in 1985 i t
adopted "alternative bidding procedures" in a separate section of the Public Contract Code than th e
-2--
Attachment 1
Job Order Contracting and Alternative Bidding Procedures Page 3
one specified in the Charter . These "alternative bidding procedures" created the updated limit s
envisioned by the 1955 Charter framers by :
1.Allowing the use of "force account" (City staff and materials) for projects of $25,000 or less .
2."Open market" soliciting of bids by phone, fax or letter for projects of $25,000 or less .
3.Direct solicitation of formal bids from qualified contactors (with notice to construction trad e
journals) for projects of $25,000 to $100,000 .
In exchange for easing the requirements for lower-value projects, the alterative procedures increas e
them for projects costing more than $100,000 : published notice 14 days before bids are due i s
required (versus the current 10-day requirement); and mailed notice to trade journals 30 days before
the bids are due is required (which isn't currently required at all).
With approval of the Charter amendment, the City can now use these "alternative biddin g
procedures ." The changes and additions to Sections 3 .24 .150, 180, 185 and 187 of the propose d
amendment are to implement the alternative procedures in accordance with Charter requirements .
Proposed Purchasing Guidelines Updat e
A companion staff report titled "Purchasing Guidelines Update" gives an overview of the City's
current purchasing system and outlines the proposed resolution changes also needed to
implement JOC and the alternative bidding procedures, and integrate these changes into th e
City's overall purchasing system .
CONCURRENCES
In addition to the Council's action to authorize a ballot measure to amend the Charter, the SL O
County Builders Exchange supported the City's adoption of both alternative methods .
FISCAL IMPACT
There are no direct fiscal impacts in adopting the proposed update to the City's Municipal Code .
However, there will be indirect cost savings through improved organizational effectiveness an d
productivity by implementing these procedures .
ALTERNATIVES
Take No Action .Without these changes to the Municipal Code, the City cannot take advantag e
of the productivity improvements now envisioned in the City Charter .
ATTACHMEN T
Ordinance amending Article III of Chapter 3 .24 of the Municipal Code .
G: Finance/Manuals/Financial Management Manua&200-Purchasing/Proposed Updates//Council Agenda Report-JOC/ABP
Attachmen t
ORDINANCE NO .
(2003 Series )
AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISP O
AMENDING CHAPTER 3 .24, ARTICLE III OF THE MUNICIPAL COD E
TO PROVIDE FOR THE USE OF JOB ORDER CONTRACTING AN D
ALTERNATIVE BIDDING PROCEDURES FOR PUBLIC CONSTRUCTION PROJECT S
WHEREAS, the citizens of San Luis Obispo approved Measure L-02 on November 5 ,
2002, which amended the City Charter to authorize the use of job order contracting fo r
maintenance-related projects as provided under Section 20128 .5 of the Public Contract Code an d
alternative bidding procedures as provided under Section 22000 of the Public Contract Cod e
("Uniform Public Construction Cost Accounting Act") for public construction projects ; and
WHEREAS, Section 901 (E) and (F) of the City Charter states that the Council shal l
establish by ordinance guidelines for the use of such contracts and procedures .
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obisp o
as follows :
SECTION 1 . Article III of Chapter 3 .24 of the Municipal Code of the City of San Lui s
Obispo is hereby amended as set forth in Exhibit A .
SECTION 2 . A summary of this ordinance, approved by the City Attorney, together wit h
the names of the Council members voting for and against it, shall be published at least five day s
prior to its final passage, in The Tribune, a newspaper published and circulated in this City . This
ordinance will go into on effect at the expiration of thirty (30) days after its final passage .
INTRODUCED on April 15, 2003 AND FINALLY ADOPTED by the Council of th e
City of San Luis Obispo on , 2003 on the following roll call vote :
AYES :
NOES :
ABSENT:
David F . Romero, Mayor
ATTEST :
Lee Price, City Clerk
APPROVED AS TO FORM :
Gilbert A . T . o, Inte
City Attorney
_1_
Attachment 1
Exhibit A
AMENDMENT TO FORMAL CONTRACT PROCEDURE S
Chapter 3 .24 of the Municipal Code
ARTICLE III. FORMAL CONTRACT PROCEDUR E
3 .24.140
Requirements for purchase .
Except as otherwise provided in this chapter, purchases and contracts for supplies ,
services, equipment and construction projects : • = '.. - , which
are equal to or in excess of the bid requirement amount specified by council resolution, shall b e
by written contract with the lowest responsible bidder pursuant to the procedures prescribed i n
this article .
3.24.145 Job order contracting .
As provided in Section,901(E)of the Charter . thefcttyv performmaintenance=relate d
construction projectsforrepair,remodeling or other repetitive work under aunit .price contrac t
for all necessary labor,materialsand equipment, subjecttto the,following:conditions:
A.Such contracts are secured on a com petitive-basis in accordance with the procedures
set forth in this Article ;
B.No new construction will be performed under such : contracts ;
C.The specifications : for. such contracts provide for unit-price termsfor all work that wil l
typically be performed under individual Task Orders :
D.The specifications for such contracts establish any limits on the amount of individua l
Task Orders to be issued underthe contract; or on any minimum or maximum cumulativ e
amounts of Task Orders to be issued under the contract .
E.The council will specifylimitsonthe . authority to approve individual Task Oxder-s b y
resolution .
3 .24.150
Bids - Notice of invitation and submission .
A . Notices inviting bids shall include, but not be limited to, the following :
1.A general description of the item(s) or service(s) to be purchased, or the publi c
work to be constructed or improved ;
2.The location where bid blanks and specifications may be secured ;
3.The time and place assigned for the opening of sealed bids ;
4.The type and character of bidder's security required, if any ; an d
5.The location and deadline for submission of bids .
B . Notices inviting bids shall be published made._follows:
1 . Forsuppliesservicesand:equip ment;nd.eesinviting bids shall be published at
least once in the official newspaper of the city,with the first publication occurring at least te n
calendar days before the date of opening the bids .
_2_
Attachment 1
Exhibit A
AMENDMENT TO FORMAL CONTRACT PROCEDURE S
2.Forconstruction projects below an amountspecified by council resolution ,
no i -s invitin• bids shall mailed to alist of eualifrcd contractors identified accordin to
categories of work, at least ten calendar days before the bidsaredue .The City Engineer i s
responsible for developingandmaintaining this list based on the criteria determined by th e
California Uniform Construction CostAccountingCommission (hereinafter referredtoas
Conunission in this Chapter) Notices shall also be mailed withinten ..calendar days before the
bids are due to all construction trade journals as required by the Commission . If the city does no t
have a list of qualified contractors for the particular type of work to be performed, notice s
inviting bids will only be sent to the construction trade journals as required by theCommission .
If the product or service is proprietary in nature and can only be obtained from a certai n
contractor or contractors, 'notices inviting bids will only be mailed to such contractor o r
contractors .
3.For construction projects above an amount specified by council resolution ,
notices inviting bids distinctly describing the project be published at least once in the official
newspaper of the city, with the first publication occurring- at leastfourteen calendar days . before
the date of opening the bids . Notices inviting bids distinctly describingtheproject shall also be
mailed at least thirty calendar days before.the date of opening bids toallconstruction trade
journals as required bythe Commission .
4.The city May also give ~ such other notiee,as it deems appropriate .
C.Sealed bids shall be identified as bids on the envelopes and shall be submitted to th e
purchasing authority .
3 .24 .160 Bids - Security requirement.
Bidder's security may be required when deemed necessary by the purchasing authority .
Bidders shall he entitled to return of bid security . However, a successful bidder shall forfeit hi s
bid security upon refusal or failure to execute a contract within fifteen days after notice of awar d
of that contract, unless the city is responsible for the delay . The contract may be awarded to th e
next lowest responsible bidder upon the refusal or failure of the successful bidder to execute th e
contract within the time herein prescribed .
3.24 .170 Bids - Opening and retention.
Sealed bids shall be opened in public at the time and place stated in the notice invitin g
bids . A tabulation of all bids received shall be made available for public inspection until th e
award of a contract . All bids shall be retained on file for a period of not less than two years .
3.24.180 Bids - Rejection.
The purchasing authority may reject :
A.Any bid that fails to meet the bidding requirements in any respect ; o r
B.All bids, for any reason whatsoever, and may readvertise for new bids or abandon.the
purchase .
-3 -
6A-
Attachment 1
Exhibit A
AMENDMENT TO FORMAL CONTRACT PROCEDURE S
C.In the case ofconstruction projects, the councilmay,by passage of a resolutiOit by a
four-fifths vote . declare that the project canbeperfoitited inore economicallyby ernpT.byees of
the city and may have the project done by force account .
3.24.185 Bids None received.
If no bids are received, the purchase may be made throughnegotiated contractor.>otther
process approved by the purchasing authority,including :-in the case of-construction
ts .projec
performing;the work by etnalovees .of the city by force account.
3 .24 .187 Bids forconstruction proiectsInexcess:otlimit .
In the event that allbids received for a construction : project are more than the maximum
allowed under Section 22034(f) of Public Contract Code, and bids were invited pursuant :to the
provisions of Section 3 .24 .150(B .2), the Council may, by adoption of a resolution by four-fifth s
vote, award the contract, in an amount not to exceed the maximum set forth in Section 22034(f )
of Public Contract Code, to the lowest responsible bidder, if it determines that the cost estimat e
was reasonable . Otherwise, the bids shall be rejected ; and if the agency decides togo forward
with the project, shall be in accordance with the procedures setforth in Sectio n
3,24 .150(B .3).
3.24.190
Contract award.
Subject to the prior approval of the city administrative officer, contracts shall be awarde d
by the purchasing authority to the lowest responsible bidder, except as follows :
A.If, at the time of bid opening, two or more bids received are for the same total amoun t
or unit price, quality and service being equal, and if in the discretion of the purchasing authority
the public interest will not permit the delay of readvertising for bids, then the purchasin g
authority may accept the one sheor he chooses or the lowest bid obtained through subsequen t
negotiation with the tie bidders .
B.Sellers, vendors, suppliers and contractors who maintain places of business locate d
within the limit of the city shall be given preference if quality, price, service and all other factor s
are equal .
3.24.200
Requiring bond of successful bidder .
The purchasing authority may require as a condition to executing a contract on behalf o f
the city, a performance bond or a labor and material bond, or both, in such amounts as th e
purchasing authority shall determine appropriate to protect the best interests of the city . The
form and amounts of such bond(s) shall be described in the notice inviting bids .
3.24.210
Determination of lowest responsible bidder .
In addition to the bid or quotation price, criteria for determining the lowest responsible
bid or quotation, for the purposes of the Charter and this chapter, shall include, but not he limite d
to, the following :
A . The character, integrity, reputation, judgment, experience and efficiency of the bidde r
(this may include an analysis of previous work performed for the city);
4 -
Attachment 1
Exhibit A
AMENDMENT TO FORMAL CONTRACT PROCEDURE S
B.The ability of the bidder to perform the contract, or provide the supplies, equipment o r
services required, within the time specified, without delay or interference ;
C.The ability of the bidder to provide future maintenance, repair parts and replacemen t
of purchased equipment or supplies ;
D.Compliance by the bidder with federal acts, executive orders and state statute s
governing nondiscrimination in employment ; and
E.The results of any evaluation relating performance and price, such as testing, life-cycl e
costing, and analysis of service, maintenance and technical data .
-5
Attachment 2
RESOLUTION NO . 9444 (2003 Series )
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISP O
UPDATING PURCHASING GUIDELINE S
WHEREAS,in the course of conducting City operations it is necessary to purchase a broad range o f
goods and services ; and
WHEREAS,the Council has adopted purchasing policies and procedures as set forth in Chapter
3.24 of the Municipal Code that require the Council to specify by resolution the dollar amount of purchase s
and contracts requiring the use of either open market or formal bidding procedures, and the level of authorit y
required to authorize invitations for bids (or requests for proposals), award contracts or approve Job Orde r
Contract Task Orders ; and
WHEREAS,the Council desires to update existing guidelines to reflect current conditions an d
implement improved procedures, including electing to become subject to the uniform construction cos t
accounting procedures set forth in the Public Contract Code, commencing with Section 22010, as
required by the State in order to use the alternative bidding procedures for construction projects set fort h
in Section 22032 of the Public Contract Code .
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that:
SECTION 1. Resolution No . 8239 (1993 Series) is hereby rescinded and the updated purchasin g
guidelines set forth in Exhibit A are hereby adopted .
SECTION 2. The construction change order policy set forth in Exhibit B is hereby amended .
SECTION 3. The City hereby elects to become subject to the uniform construction cos t
accounting procedures set forth in the Public Contract Code .
On motion of Council Member Settle, seconded by Council Member Ewan, and on the followin g
roll call vote :
AYES :Council Members Ewan, Settle and Schwartz, Vice Mayor Mulholland, and Mayo r
Romero
NOES :None
ABSENT :None
the foregoing resolution was adopted on April 15, 2003 .
Mayor David F. Romero
Lee Price, C.M.C .
City Clerk
Gilbert A . Trujillo, Acting City Attorney
R 9444
•
Attachment 2
Exhibit A
Resolution No .. 9444 (2003 Series)
PURCHASING GUIDELINE S
In accordance with the policy framework set forth in Chapter 3 .24 of the municipal code, Cit y
purchases and contracts (including those for rentals and leases, but excluding those for rea l
property) will be made pursuant to these guidelines . Applicable competitive bidding categories ,
authorization limits or contract award procedures will be based on unit cost, total purchase cos t
for consolidated bid items or fiscal year aggregates in the case of blanket purchase orders o r
similar ongoing purchasing arrangements . Staging of purchases in order to avoid thes e
competitive bidding procedures or authorization limits is prohibited .
GENERAL PURCHASE S
Purchases and contracts for supplies, equipment, operating and maintenance services, an d
construction projects will be made pursuant to the following guidelines .
A .Over-the-Counter.Purchases of less than $5,000 may be authorized by the Departmen t
Head. Although no specific purchasing requirements are established for this level o f
purchase, competitive bidding should be used whenever practical .
B . Open Market.Purchases between $5,000 and $25,000 $13,000 may be authorized by the
Director of Finance (or designee) pursuant to the open market bidding procedures establishe d
in Chapter 3 .24 (Article II) of the municipal code .
C .Formal Bids or Proposals .Purchases in excess of :$25,000 $000 will be made pursuan t
to the formal bidding requirements established in Chapter 3 .24 (Article III) of the municipa l
code . Authority to approve specifications, invite bids or request proposals and awar d
contracts will be as follows :
1.For purchases with an approved budget and a cost estimate of $100,000 $50,000 or less ,
the City Administrative Officer is authorized to invite bids or request proposals, approv e
specifications and award the contract .
2.For purchases in excess of $100 ;000 $30,000, Council approval of the specifications an d
authorization to invite bids or request proposals is required . The Council may authoriz e
the City Administrative Officer to award the contract if the selected bid or proposal is les s
than or equal to the Council-approved cost estimate and there are no substantive change s
to the specifications . Otherwise, Council award of the contract is required .
D .,Tob Order Conan,acts ;ConstructionProieets.,Underthe Job-older Contaot,provisions of
Chapter .3 .24 `(Ai'tiele,HI): of the . municipalcodefoi m `:unte>inc:e-related construction
projects, individual `task Orders up to$25,000,rnav beapttoved by the City Engineer :
hidividnal Task Orders in excessof $25,U(b .'require aj>provaI 1w ttie' City_Admtra t'tratiy"
Officer.
CONSULTANT SERVICE S
Contracts for consultant services will be awarded pursuant to the following guidelines .
-1 -
Attachment 2
Exhibit A
Resolution No .. 9444 (2003 Series )
PURCHASING GUIDELINE S
A.Contracts for consultant services estimated to cost less than $5,000 may be awarded by th e
Department Head . Although no specific purchasing requirements are established for this
level of contract, proposals should be solicited whenever practical .
B.Contracts for consulting services estimated to cost between $5,000 and ;`,2.5000 $800 may
be awarded by the City Administrative Officer . Proposals from at least three firms should b e
solicited whenever practical .
C.Contracts for consultant services estimated to cost more than $25,OOJX000 will generally
be awarded pursuant to the following guidelines ; however, it is recognized that the City's
need for consultant services will vary from situation to situation, and accordingly, flexibilit y
will be provided in determining the appropriate evaluation and selection process to be used i n
each specific circumstance .
1 . The Council should generally approve request for proposal (RFP) documents before the y
are issued. The Council may authorize the City Administrative Officer to award th e
contract if it is less than or equal to the Council-approved cost estimate and there are n o
substantive changes to the approved workscope . Otherwise, Council award of th e
contract is required.
2 . In the event that the timely evaluation and selection of a consultant precludes Counci l
approval of the RFP before it is issued, the RFP may be approved and distributed by th e
City Administrative Officer ; however, award of the contract will be made by the Council .
3 . Cost will not be the sole criterion in selecting the successful bidder . Consultant proposal s
will be evaluated based on a combination of factors that result in the best value to th e
City, including but not limited to :
a.Understanding of the work required by the City
b.Quality and responsiveness of the proposal
c.Demonstrated competence and professional qualifications necessary for satisfactor y
performance of the work required by the Cit y
d.Recent experience in successfully performing similar service s
e.Proposed methodology for completing the wor k
f.Reference s
g.Background and related experience of the specific individuals to be assigned to the
project
h.Proposed compensatio n
4 . If it is determined that it is in the best interest of the City for services to be provided by a
specific consultant—with contract terms, workscope and compensation to be determine d
based on direct negotiations—contract award will be made by the Council .
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Attachment 2
Exhibit B
Resolution No. 9444 2003 Serie s
CONSTRUCTION CONTRACT CHANGE ORDER S
OVERVIEW
When the City awards a construction contract, the need for contract change orders (CCO's) is no t
unusual. CCO's are required whenever the scope of work changes from that in the origina l
contract or an unknown condition of the site requires a change in the scope of work . Usually a
contingency amount is established when the project budget is finalized upon contract award t o
accommodate limited CCO's . The purpose of this policy is to establish limits of authority fo r
approving construction project CCO's .
GOALS
1.Ensure appropriate authority and accountability in the approval of change orders .
2.Minimize the time needed to approve a CCO in order to avoid project delays .
3.Establish a system under which the organizational level at which approval is given i s
commensurate with the size of CCO and size of project .
4.Eliminate the potential for approval of a CCO when contingency funds are insufficient .
POLICIE S
Conditions for Approval of CCO's by Staf f
1.Sufficient contingency funds are budgeted and available in order for the Public Work s
Director or City Administrative Officer (or CAO-approved designees) to approve a CCO .
2.The nature of work in the CCO is not significantly different from that in the contract .
3.Authorization limits are based on an individual CCO amount, not the aggregate amount of al l
CCO's .
4.Authorization limits apply to CCO's for increases in contract amounts only .
5.When the aggregate amount of CCO's reaches 75% of the contingency, the awardin g
authority shall be informed of the status of the project and the sufficiency of funding t o
complete the project .
6.Work will not be broken up into multiple CCO's in order to circumvent this policy .
7.All CCO's must be in writing and approved by the appropriate contract parties consistent wit h
the authorized limits established in this policy .
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Attachment 2
Exhibit B
Resolution No. 9444 2003 Series
CONSTRUCTION CONTRACT CHANGE ORDER S
8 . A copy of each approved CCO will be transmitted promptly to the Finance Department .
9 . The CAO may grant approval of CCO's in excess of $106,000,$50,008 under the followin g
circumstances (all three factors must be present):
a.Immediate approval of the CCO is necessary to avoid delay .
b.The CCO is an integral and mandatory component of the project .
c.The costs associated with delay of the project would be excessive .
The Project Manager is responsible for carrying out this policy .
10 .The . CAP is also . authorized to'approve CCO'.'s i n excess ol $1'00,000, related toJobOrder
ContractTaskOrders .
Authorization Limit s
1.Public Works Director/Approved Designee
Not to exceed $25,000
2.City Administrative Officer
Not to exceed $100,000$50,000
3 . City Council
Greater than contract or $100,000*$50,000
* See circumstances above where the CAO may approve CCO's in excess of $100,000 .
Originally Approved by the Council on August 3, 1993 ; Revised by the Council on April 15, 2003
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