HomeMy WebLinkAboutCC ORD 2005-2262 Amends Ch. 2.60, public contracts and purchasing system (2.60)ORDINANCE NO. 2005 - 2262
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
AMENDING THE NATIONAL CITY MUNICIPAL CODE
BY AMENDING CHAPTER 2.60 PERTAINING TO
PUBLIC CONTRACTS AND PURCHASING SYSTEM
BE IT ORDAINED by the City Council of the City of National City that the
National City Municipal Code is amended as follows:
Section 1. That Chapter 2.60 is amended in its entirety to read as follows:
Chapter 2.60
PUBLIC CONTRACTS AND PURCHASING SYSTEM
Sections:
2.60.010 Purpose and Intent
2.60.020 Authority of city manager —approval authority
2.60.030 Purchasing agent--Designation--Authority
2.60.035 Establishment of bid limits and contracting and award authority
2.60.040 Purchasing agent --Powers and duties
2.60.050 Exceptions to centralized purchasing
2.60.060 Estimates of requirements
2.60.070 Requisitions
2.60.080 Purchase order --Encumbrance of funds
2.60.090 Standardization of supplies
2.60.100 Unauthorized purchases
2.60.110 Formal bidding procedure --Generally
2.60.115 Procurement Specifications and "Brand names"
2.60.120 Formal bidding procedure --Notice inviting bids
2.60.130 Formal bidding procedure --Bidder's list
2.60.140 Formal bidding procedure --Bidder's security
2.60.150 Formal bidding procedure --Bid opening
2.60.160 Formal bidding procedure --Compilation of bids and
recommendations
2.60.165 Protests
2.60.170 Formal bidding procedure-- Action following recommendation
2.60.180
2.60.190
2.60.200
2.60.210
2.60.220
2.60.230
2.60.240
2.60.250
2.60.260
2.60.270
2.60.280
Formal bidding procedure-- Rejection of bids
Formal bidding procedure --Tie bids
Formal bidding procedure --Performance bond
Open market procedure --Used when --Informal bidding required
Open market procedure --Exception to bidding requirements
Emergency purchases --By purchasing agent --Emergency defined
Emergency purchases --Civil defense and disaster
Services, supplies and equipment not governed by this chapter
Cooperative purchasing
Authorization and change orders for professional services
agreements and public works contracts, and for previously
authorized procurements
Periodic review and Index Adjustments
2.60.010 Purpose and Intent. The City Council adopts a public contract and
purchasing system through this chapter in order to establish efficient procedures for the
purchase of supplies, equipment, materials and professional and other services at the
lowest possible cost at the best value commensurate with the quality needed, to
exercise positive financial control and assure quality of procurement and to dearly
define the authority for purchasing and contracting functions.
2.60.020 Authority of city manager —Establishment of contracting authority.
A. Centralized purchasing and contracting is established under the authority
of the city manager for the purchase of supplies, equipment and professional and other
services. The city manager shall have and may exercise all authority delegated in this
chapter, and may further approve alternate methods of procurement on a trial basis and
recommend changes to the city council regarding the city's procurement methods.
B. The city manager shall have the authority to approve and execute
contracts and awards as set forth in section 2.60.035.
2.60.030 Purchasing agent--Designation—Contracting Authority.
A. Through the city manager, a purchasing agent may be designated to
purchase supplies, equipment and services pursuant to this chapter on behalf of the
city. The purchasing agent may assign employees to perform the functions and duties
provided for in this chapter, with the concurrence of the city manager.
B. Under the direction of the city manager, the purchasing agent shall have
the authority to approve and execute contracts and awards as set forth in section
2.60.035.
2.60.035 Establishment of bid limits and contracting and award authority.
A. Formal bid limits and requirements are established for purchases and
contracts exceeding twenty-five thousand dollars ($25,000.00). Informal bid limits are
established for purchases and contracts exceeding two thousand five hundred dollars
($2,500.00).
2005 Ordinance 2 Chapter 2.60
Public Contracts & Purchasing System
B. The city manager shall have the authority to approve, execute and award
purchases and contracts not exceeding twenty-five thousand dollars ($25,000.00). The
purchasing agent shall have the authority to approve, execute and award purchases
and contracts not exceeding fifteen thousand dollars ($15,000.00).The City Council
shall, by resolution, approve all purchases and contracts exceeding twenty-five
thousand dollars ($25,000.00).
C. Bid limits and approval authority may be increased as provided in section
2.60.280, when approved pursuant to Ordinance.
2.60.040 Purchasing agent --Powers and duties. The purchasing agent shall
have the following powers and duties:
A. Negotiate, purchase and obtain supplies, contractual services and
equipment used by the city in accordance with city and state law and the various rules,
regulations and authority currently or previously prescribed by the city manager and city
council;
B. Procure for the city the needed quality in supplies, services and equipment
at the best value to the city, utilizing such technical or functional specifications, or
combination, as will best meet the city's requirements;
C. Discourage uniform bidding and endeavor to obtain full and open
competition on all purchases;
D. Prepare and recommend to the city manager rules and regulations
governing purchase of supplies, services and equipment for the city, and revisions as
necessary;
E. Keep informed of current developments in the field of purchasing, pricing,
market conditions and new products, and secure for the city the benefits of research
done in the field of purchasing by other governmental jurisdictions, national technical
societies, trade associations having national recognition, and by private businesses and
organizations;
F. Prescribe and maintain such forms as are reasonably necessary for the
operation of the purchasing system, and utilize electronic data processing and
technology in the administration and discharge of procurement and contracting duties;
G. Prepare and maintain a vendors' catalog file, or, as appropriate, utilize and
maintain electronic database files and the Internet media for procurement;
H. Exercise proprietary review over all purchases and make
recommendations to the city manager as appropriate.
I. Utilize electronic data management systems and programs in coordination
with the finance and information management directors for requisition, invoice
management and payment.
J. Promulgate rules and procedures as may be necessary to implement this
Chapter.
2.60.050. Exceptions to centralized purchasing. The purchasing agent, when
authorized by the city manager, may authorize a department to directly purchase
supplies and equipment when such purchases may be made more advantageously or
expeditiously by the respective department.
2005 Ordinance 3 Chapter 2.60
Public Contracts & Purchasing System
2.60.060 Estimates of requirements. The purchasing agent may request all
using city departments or offices to file detailed estimates of their anticipated
requirements in order to take advantage of volume or selective buying.
2.60.070 Requisitions. City departments or offices shall submit requests for
supplies, equipment and services to the purchasing agent on standard requisition forms
prescribed by the purchasing agent. The purchasing agent shall examine each
requisition and estimate and shall have the authority to revise it as to quantity, quality or
estimated cost; provided, however, that any change in quality does not vary
substantially from the standards of the using department or office.
2.60.080 Purchase order --Encumbrance of funds. Except in cases of
emergency or when otherwise authorized by the city manager, all purchases, other than
those made pursuant to section 2.60.050, shall be made by purchase order issued by
the purchasing agent upon certification that:
A. There is to the credit of each using department concerned a sufficient
unencumbered appropriated balance in excess of all unpaid obligations to defray the
amount of the order; or,
B. The order is provided for in the budget of the using department or has
been approved by city council resolution; or,
C. Purchases of capital equipment and assets or services, if not provided for
in the budget, have been previously approved by city council resolution.
2.60.090 Standardization of supplies. The purchasing agent shall
standardize procurement of supplies, equipment and material in cooperation with using
departments.
2.60.100 Unauthorized purchases. No city officer or employee shall order or
purchase any supplies, equipment, materials or contractual services or make any
contract within the purview of this chapter, except in accordance with the provisions of
this chapter, the regulations and procedures established thereunder and the approval of
the purchasing agent. Any purchase or contract made contrary to this chapter is null
and void.
2.60.110 Formal bidding procedure --Generally. A. Except as provided in
sections 2.60.110 (B) or 2.60.230, all city purchases exceeding the formal bid limit, as
adjusted pursuant to section 2.60.280, shall be purchased only after a formal
competitive bid process by formal written contract with the lowest responsible bidder
submitting the best responsive bid, after due notice inviting bids.
B. Formal competitive bidding may be waived by the city council, or the city
manager within the limits of contracting authority, where it has been determined that: 1)
competitive bidding is or would be impractical or impossible; 2) the circumstances are
such that no obvious, ascertainable advantage to the city could result; or, 3) in the case
of technology and computer systems and software acquisition, delay would unduly
impair or jeopardize the city's ability to efficiently operate its data management systems.
2005 Ordinance 4 Chapter 2.60
Public Contracts & Purchasing System
2.60.115 Procurement Specifications and "Brand names".
A. The purchasing agent shall ensure that the procurement of city systems
and equipment is made by technical or functional specifications, or such combination
thereof as the purchasing agent shall determine will best meet particular functional
needs or objectives required by the city. The requesting department shall be
responsible for preparing adequate specifications, with the assistance of the purchasing
agent when necessary.
B. Specifications shall normally describe a system or commodity in terms of
its dimensions, physical characteristics, performance criteria, system compatibility,
maintenance objectives and requirements, adaptability criteria, and any other factors
that will allow a particular item to be offered by a vendor at a stated price.
Specifications may include reference to a brand name and type or model for illustrative
purposes on an "or equal" basis. When described in an "or equal" manner, the
description shall be construed as a term of specification which describes an item or
component that has been evaluated by the city as best meeting the specific operational,
design, performance, maintenance, quality, compatibility or reliability standards and
requirements of the city, thereby incorporating these requirements by reference within
the specification. Whenever possible, at least two brand names should be used for
specification purposes, followed by the words "or equal". Exceptions to an "or equal"
designation are permissible for replacement parts, for testing and evaluation purposes,
or for system compatibility. A bid offering an equivalent ("or equal") shall be subject to
evaluation by the city prior to award that the item meets the city's requirements. Any
product testing shall be at the bidder's expense, and the burden shall be on the bidder
to establish that the item meets the city's needs. The city reserves the right in its
absolute and sole discretion to reject a proposed item that does not meet city
requirements.
C. Functional specifications may be issued to allow for a particular
operational or functional need to be best met by current technology, without the need for
specific description of each component. Specifications shall include, as applicable, the
particular functions to be served or the results to be obtained, operational requirements,
any fiscal, mechanical or structural constraints, and the operating environment.
2.60.120 Formal bidding procedure --Notice inviting bids. When formal
bidding is required, a notice inviting bids for city specifications shall be published by the
purchasing agent at least ten calendar days before the date set for the receipt of bids
designated in the notice. All notices shall be published by the purchasing agent in a
commercially reasonable manner, using any appropriate mediums of printed or
electronic commerce which, in the opinion of the purchasing agent, are reasonably likely
to ensure an optimum bidding process.
2.60.130 Formal bidding procedure --Bidder's list. The purchasing agent shall
also solicit bids from all responsible prospective suppliers who have requested to be
placed on a bidder's list. The bidder's list may be kept in an electronic format.
2005 Ordinance 5 Chapter 2.60
Public Contracts & Purchasing System
2.60.140 Formal bidding procedure --Bidder's security. The purchasing agent
may require each bidder to post security in a predetermined amount in cash, certified or
cashier's check, surety bond or in any other form of security approved by the city
attorney. If a bidder's security is required, no bid shall be considered submitted until the
required security is submitted therewith. All bidders' security is refundable, except that
a successful bidder shall forfeit the deposited security if the bidder fails to execute a
contract within ten calendar days after notice of award has been mailed or given, or fails
to otherwise complete the transaction.
2.60.150 Formal bidding procedure --Bid opening. Bids shall be submitted to
the purchasing agent or designate. Bids may be opened in public, when so designated
by the purchasing agent in the public notices. All bids must be signed by an authorized
signatory of the bidder. The purchasing agent may accept electronic or facsimile
signatures on electronically submitted bids, when followed up by receipt of an original
signature.
2.60.160 Formal bidding procedure --Compilation of bids and
recommendations. A. The purchasing agent shall compile the bids and submit them to
the city manager together with a recommendation for award, taking into consideration
any recommendation of the department head involved, the amount of bid, compliance
with specifications, the responsibility of bidder, and any other factors that determine the
best value and optimum procurement for the city. In determining the responsibility of
the bidder to perform and provide best value, the purchasing agent will be guided by,
but not be limited to, a consideration of the following factors:
1. The experience of the city in dealing with the bidder;
2. The experience of other governmental agencies in their previous
transactions with the bidder;
3. Knowledge of the quality and fitness of the product offered by the
bidder, substantiated by reports of using departments within the city or other
governmental agencies, whenever possible;
4. The availability of options to renew contracts for continuing
purchases at the same bid price, in those circumstances where price increases are
expected or have been experienced in the past;
5. A determination as to whether the quoted price represents "best
value" for the city, and is both realistic and feasible in terms of vendor performance and
potential city satisfaction. "Best value" shall include consideration of sales tax rebate,
when applicable, warranty protection, costs of maintenance and availability of parts and
services.
B. Within the limits of their contracting authority, the city manager or the
purchasing agent may reject any or all bids or accept a part of a bid for any one or more
commodities or contractual services included in the proposed contract, when it is
determined that the public interest will be best served thereby. The purchasing agent
may waive any irregularity in bid submission when it is in the best interests of the city to
do so.
2005 Ordinance 6 Chapter 2.60
Public Contracts & Purchasing System
C. Upon compliance with the formal competitive bidding process, the city
manager is authorized to award and execute contracts within established approval
authority, and any contracts exceeding that authority for a procurement previously
authorized in the budget or by resolution of the city council.
D. The city manager shall forward the compilation of bids and
recommendations with respect to any awards exceeding his or her authority to the city
council for review and award.
E. Documents submitted by bidders shall not be available for public review
until the purchasing agent or city manager awards the contract, or a recommendation is
forwarded by the city manager to the city council for award.
2.60.165 Protests. Protests concerning an award or proposed award may be
presented by an unsuccessful bidder to the purchasing agent in writing, only within the
five days following the announcement of award or the bid opening, whichever shall
occur last. Any protest filed after that time shall be invalid and shall be disregarded. A
protesting bidder must submit complete supporting documentation at the time of protest.
The purchasing agent shall determine whether the protest is justified, and may either
amend or rescind the award, if justified, and take no action when the protest is not
justified. The decision of the purchasing agent shall be final regarding the
recommendation for the award of the contract, except that the city manager may review
and take further action on any timely filed protest, or forward the protest to the city
council when authority for award rests with the council.
2.60.170 Formal bidding procedure-- Action following recommendation. The
city council, or the city manager within authorized limits, may award a contract to the
lowest responsible bidder submitting the best value bid that optimally meets the city's
criteria in all respects. The decision to select the lowest responsible bidder shall be
administratively final at the level where the award of the contract is authorized.
2.60.180 Formal bidding procedure-- Rejection of bids. The city council, or
the city manager within authorized limits, may reject any or all bids and authorize the
readvertising of bids or, in the alternative, purchase commodities or services pursuant to
the open market procedure set forth herein, when any of the following circumstances
are found to exist:
A. That the supplies or services may be purchased at Tess cost in the open
market;
B. That the services or supplies are urgently required for the preservation of
life, health or property or that the public interest would be best served by using the open
market procedure; or,
C. That the city manager within contracting authority, or the city council by
resolution, has determined that it is in the city's best interests to do so.
2.60.190 Formal bidding procedure --Tie bids. In the event two or more bids
are received which are for the same total amount or unit price and in all other respects
are equal, the contract may be awarded to a local bidder, or by draw when there is no
local bidder or more than one local bidder is available.
2005 Ordinance 7 Chapter 2.60
Public Contracts & Purchasing System
2.60.200 Formal bidding _procedure --Performance bond or security. The
purchasing agent may require a performance bond or other form of security in an
amount reasonably necessary to protect the best interests of the city. If a performance
bond or security is required, the form and amount shall be described in the notice
inviting bids.
2.60.210 Open market procedure --Used when informal bidding required.
Purchases of supplies, services and equipment of an estimated value not
exceeding the formal bid limit, as adjusted pursuant to section 2.60.280, may be made
by the purchasing agent in the open market without observing the formal bidding
procedure prescribed in Section 2.60.110 through 2.60.200. However, informal bidding
shall be required, and, whenever practicable, shall be based on at least three bids, and
be awarded to the lowest responsible bidder submitting in all respects the best bid for
best value. When it is not practicable or possible to obtain bids from at least three
vendors, the purchasing agent may then select the lowest responsible bid from those
available and qualified vendors submitting responsive bids. The purchasing agent may
solicit bids by direct mail request to prospective vendors, by telephone, by public notice
on a bulletin board in the civic center, by any feasible electronic medium, or by any
combination of the preceding. The purchasing agent shall keep a record of all
purchases in accordance with the city records retention schedule, and such records
shall be open to public inspection.
2.60.220 Open market procedure --Exception to bidding requirements. In any
of the following instances, the city manager or purchasing agent may dispense with the
requirements of bidding when any of the following applies, provided the circumstances
are completely documented:
A. The estimated amount involved is less than the informal bid limit;
B. The commodity, regardless of value, can be obtained from only one
source. Sole source procurements may be used when there is only one source from
which a particular commodity is available and there is no adequate substitute. Sole
source procurement may also be used when it is clear that competitive bidding will not
produce any competitive advantage or would be impractical or not meet an urgent city
procurement need.
C. The commodity or service to be procured, regardless of value, is required
to integrate with or be compatible with existing furnishings, materials, systems,
programs or equipment and the procurement can be timely made from a manufacturer
or supplier who previously satisfactorily supplied the particular commodity or service.
D. The purchasing agent or city manager within the limits of contracting
authority, or the city council by resolution, determines by best business judgment that
due to special circumstances it is to the city's best interest to purchase a commodity
directly or enter into a contract without compliance with the bidding procedure; or,
E. Due to the exigencies and availability of state and federal grants,
immediate action is necessary to take advantage and allow receipt of those grants for
procurement of equipment, materials or services, and compliance with the normal time
limits established within this chapter would therefore be impossible or impracticable;
2005 Ordinance 8 Chapter 2.60
Public Contracts & Purchasing System
provided, however, that the city manager shall notify the council at the first available
opportunity thereafter; or,
F. A particular type or make of commodity, furnishing, and type of material,
system or equipment has been standardized by the city manager or city council by
written directive or resolution.
2.60.230 Emergency purchases --Emergency defined. A. In case of an
emergency which requires immediate purchase of supplies, materials, equipment or
contractual services, the city manager may authorize the purchasing agent to secure in
the open market at the lowest obtainable price any supplies, materials, equipment or
contractual services, regardless of the amount of the expenditure, provided, however,
that any expenditure exceeding the city manager's established approval authority shall
be later ratified by resolution of the city council after the emergency is resolved.
B. In case of emergency, and when the prior consent of the purchasing agent
or city manager is impracticable, any using department may purchase directly any
supplies, materials or equipment without competitive bid, provided that the immediate
procurement is essential to prevent delays in the work of the using department which
may affect the life, health or convenience of citizens. The head of the using department
shall send the purchasing agent a requisition and a copy of the delivery record, together
with a full written explanation of the circumstances of the emergency as soon as the
emergency has been resolved, which shall thereafter be filed by the purchasing agent
as a permanent public record of the purchase. The city manager's signature shall be
required on all procurements exceeding the formal bid limit, and the city council's action
by way of ratification shall be required for all procurements exceeding the city
manager's authority.
C. Determination of an "emergency" under this section shall be defined as
any breakdown in machinery or equipment, the interruption of an essential service, or
any threat to public health, safety or welfare. Determination of emergency shall not
require a formal proclamation, but shall be based upon the sound judgment and
discretion of the city manager or purchasing agent, as applicable.
2.60.240 Emergency purchases --Civil defense and disaster. Nothing
contained herein shall limit the authority of the director of emergency services to make
emergency purchases and take such other emergency steps as are or may be
authorized by the city council
2.60.250 Services, supplies and equipment not governed by this chapter.
The following services, supplies and equipment shall not be subject to the competitive
bidding provisions of this chapter, except that the procurement and contracting authority
based on the monetary limits specified in this chapter shall also be applicable to the
authority to execute contracts for such procurements.
A. "Public projects" as defined in Section 20161 of the California State Public
Contract Code;
B. Utility services and related charges;
C. Work or services performed by another public or quasi -public entity;
D. Real property purchases and related title and escrow fees;
2005 Ordinance 9 Chapter 2.60
Public Contracts & Purchasing System
E. Credit card purchases of gasoline, oil or emergency automotive needs;
F. Transportation and freight charges when not specifically included on a
purchase order;
G. Insurance and bond premiums;
H. Advertising;
I. Real property leases;
J. Demolition or abatement of dangerous structures or hazardous or unsafe
conditions; or,
K. Professional services agreements governed by section 2.60.270.
2.60.260 Cooperative purchasing. The purchasing agent shall have authority
to join with other public jurisdictions to take advantage of cooperative purchasing
opportunities, including but not limited to any federal, state or local agency pricing
program or structure that is determined by the purchasing agent to allow a procurement
that is in the best interests of the city. The purchasing agent may buy directly from a
vendor at a price established through competitive bidding by another public agency
whose procedures have been determined by the purchasing agent to be in substantial
compliance with the city's procurement procedures, irrespective of the contracting limits
of that jurisdiction or agency, even if the city had not initially joined with that public
agency in the cooperative purchase.
2.60.270 Authorization and change orders for professional services
agreements and public works contracts, and for previously authorized procurements. In
addition to the authority granted for procurement of supplies and equipment, the city
manager is authorized to execute public works contracts, agreements for professional
services for architectural, engineering, environmental, land surveying or construction
project management pursuant to Section 4526 of the Government Code, and
agreements for services of other professionals required for the proper, efficient
administration of the city. The city manager shall approve and execute all contracts
according to the limits of the manager's approval authority established in section
2.60.035, and may approve change orders for previously authorized procurements of
supplies and equipment, professional services agreements, and public works contracts
in amounts not exceeding an aggregate of ten percent (10%) over the original
authorized contract price or the limits established in section 2.60.035 for the city
manager, whichever is greater, without prior city council approval. Engagement of
qualifying professional vendors shall be based upon demonstrated competence and the
qualifications necessary for the satisfactory performance of the city's requirements in
accordance with the procedures set forth in the document entitled "Procedures for
Selection of Professional Services Firms" on file in the office of the city clerk.
2.60.280 Periodic review and Index Adjustment. The bid limits for formal and
informal bidding and award and the authority of the city manager and purchasing agent
may be adjusted annually in response to the San Diego -All Urban Consumers
Consumer Price Index (CPI). The purchasing agent shall calculate the effect of the
cumulative change in the CPI to authorized bid limits. Adjustments to the formal bid
limit will be made in five thousand dollar increments whenever the calculated value
2005 Ordinance 10 Chapter 2.60
Public Contracts & Purchasing System
exceeds a previously set limit by more than twenty-five hundred dollars. Adjustments to
the informal bid limit will be made by one thousand dollar increments whenever the
calculated value exceeds a previously set bid limit by more than five hundred dollars.
The contracting authority of the city manager and purchasing agent and other limits set
forth in this chapter may be adjusted upwards accordingly, pursuant to Ordinance.
PASSED and ADOPTED this 3rd day of May, 2005.
ATTEST:
City
y Clerk
c ael R. Dall ,
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney
2005 Ordinance
Niuk'fnzunza, Mayor
11 Chapter 2.60
Public Contracts & Purchasing System
Passed and adopted by the Council of the City of National City, California, on May 3,
2005, by the following vote, to -wit:
Ayes: Councilmembers Inzunza, Morrison, Natividad, Parra, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY:
NICK INZUNZA
Mayor of the City of National City, California
City Clerk of the City hf National City, California
By:
Deputy
I HEREBY CERTIFY that the foregoing ordinance was not finally adopted until seven
calendar days had elapsed between the day of its introduction and the day of its final
passage, to wit, on April 19, 2005, and on May 3, 2005.
I FURTHER CERTIFY THAT said ordinance was read in full prior to its final passage or
that the reading of said ordinance in full was dispensed with by a vote of not less than a
majority of the members elected to the Council and that there was available for the
consideration of each member of the Council and the public prior to the day of its
passage a written or printed copy of said ordinance.
I FURTHER CERTIFY that the above and foregoing is a full, true and correct copy of
ORDINANCE NO. 2005-2262 of the City Council of the City of National City, passed
and adopted by the Council of said City on May 3, 2005.
City Clerk of the City of National City, California
By:
Deputy
OQlO\Nht'" `kb- 'd00.9
NooR-c ‘N10^%0.5
"PROCEDURES FOR SELECTION OF PROFESSIONAL SERVICES FIRMS"
I. BACKGROUND
Professional consultants are retained by a public agency to augment the agency's
professional capabilities during peak workload periods or other critical periods and/or to
provide specialized services not presently available to the agency. The procedure to evaluate
the need for and selection of consultants should be standardized to insure the product of
service is of the highest quality in relation to available funding.
Consultant services may be performed by individuals licensed by the State of California
(such as, Architects, Land Surveyors, Civil, Mechanical or Electrical Engineers, Engineering
Geologist, etc.) or by individuals for which such licensing is not a requirement.
II. PURPOSE
This regulation establishes policies and procedures governing the selection of professional
consultants in the performance of the City work.
This policy is issued so that the City may continue to recognize and maintain the professional
status of those offering professional services. It embodies the standards, accepted procedures
and ethics of the national and local societies and organizations of those professionals which
will be required to provide services to the City of National City.
III. POLICY
It is the City's policy to award contracts for professional services of architects, landscape
architects, designers, licensed engineers, surveyors, and construction managers to the firm
or individual professional found best qualified to perform such contract at a fair and
reasonable cost, and to comply with the letter and spirit of public contract laws.
Historically and universally, many professional societies have resisted the practice of bidding
to provide services. Such a practice implies that the consideration of price rather than quality
and service may be a predominant factor in the selection of the consultant.
While equipment and construction work (complying with comprehensive specifications) is
usually purchased on the basis of competitive bids, it is not reasonable to apply the same
procedures for obtaining professional services. A client that "buys" professional services by
competitive bid has no realistic basis on which to compare the value of what he will obtain.
It is not in the public interest, therefore, to solicit bids for such services.
1
Professionals have unique expertise in their own disciplines based upon working relationships with
many clients with widely differing approaches to problem solving. Each has encountered many and
varied problems which provide for a vast accumulation of data and information based upon actual
experience. This knowledge and experience is often directed in a specialized area. Payment of a
reasonable and adequate fee for such knowledge and experience assures the recipient of a
comprehensive and technically satisfactory professional service.
It shall be the policy of the City to negotiate agreements for professional consulting services on the
basis of demonstrated competence and qualifications for the type of professional consulting services
required at fair and reasonable fees.
IV. PUBLIC NOTICE
A. CONSULTANT REGISTER
The Engineering Department of the City of National City in June of each year, shall
publish a notice in the City's official newspaper or in a technical publications of the
City's anticipated needs during that fiscal year for professional services from
architects, landscape architects, designers, licensed engineers, surveyors, construction
managers, and management consultants. Such notice shall encourage all persons or
firms interested in being considered as such professionals on any or all of such
projects to submit to the City statements of qualifications and performance data.
This information may be submitted in standard Federal Form #255 for each category
of work. This information may be placed in the City's register of consultants.
If, during the course of the year, the City determines that it is advantageous to
supplement the existing list of interested consultants, the Engineering Department
will advertise for additional firms. Firms responding to this ad will then be added to
the existing lists.
B. ADDITIONAL NOTICE
For professional service contracts which are anticipated to exceed $50,000 in fees,
or where the proposed work is deemed to be highly complex, the Department's
Director may publish an additional notice thereof, stating the primary criteria to
qualify to provide such services and stating the project schedules and expected
budget for construction and requesting Statements of Qualifications (SOQ) and/or
Request for Proposals (RFP).
2
Additional announcements and requests for public proposals may be made in the
newspaper(s) of general circulation and one or more of the following methods:
1. Notification through applicable professional organizations and journals.
2. Notification by letter, based upon a list kept by the City, to all applicable
firms who have stated that they are interested in providing service to the City.
C. REQUEST FOR QUALIFICATIONS (RFQ)
A request for qualifications (RFQ) when it is required should be sent out to generally
three (3) to (10) consultant firms most qualified to provide the services required as
shown in the City's register. The City may, at its option, send the RFQ to all
consultants shown in the City's register. The RFQ provides a complete description
of the type of problem involved, the required submittals in responses to the RFQ, and
the selection procedure.
The City should require the submittal of a supplemental statement of qualifications
related to the specific project under consideration. This information may be
submitted in a format similar to Federal Form #255, or equivalent.
In general, the consultant is Ed required to submit a detailed scope of work and
proposed fee in response to the RFQ.
V. METHOD OF SELECTING A PROFESSIONAL CONSULTANT
A. Major Projects - Anticipated Fee of Over $50.000
a. The appropriate department's director (or its equivalent) will notify the
professional community through advertisement in a newspaper or by other
means, of the Agency's proposed project and its need for professional
services. Interested Consultants will be invited to obtain a Request for
Proposals (RFP) from the City.
b. The Request for Proposals will contain a description of work to be done, the
estimated project budget, and other pertinent information regarding the
project. The Request of Intent will define the specific questions about items
addressed in the proposal and selection criteria to be used.
c. The consulting firm shall submit a proposal containing GSA forms 254 and
255, and address the project specific issues delineated in the RFP. Question
responses regarding the firm's technical perspective of the project are strictly
limited to brief statements addressing the consultant's general concepts and
3
approach to the project. Detailed, voluminous design information is not
desired and will not be considered in the selection process.
d. A short list of at least three (3) firms shall be developed by an in-house
selection committee.
e. Those consultants short listed will be formally invited to make presentations
before the in-house selection committee. All interviews should be
conducted by the same people and should be completed in the same day.
f. The selection committee may interview the consultants' project manager
together with the City's contact person and any other key personnel
(performing 50% or more of the project tasks) including the designer, if
applicable, of the most qualified firms. The rating of the consultants should
he based on the professional qualifications necessary for the timely and
satisfactory completion of the project. The following criteria are suggested
for use in the final rating process.
1. All qualifications and performance data submitted by the
consultant relevant to the project team, including a
verification of data and references.
2. Demonstrated understanding of the scope of the project as
evidenced in the oral interview and/or in the written
submittals.
3. Consultant's demonstrated capability to explore and develop
innovative or advanced techniques or designs.
4. Consultant's past record of performance in similar projects
related to control of costs, quality of work, meeting schedules,
and the number and type of construction change orders (if
applicable).
5. The present workload of the firm and the availability of staff
for the project.
6. Familiarity with the City's design and construction
specifications and procedures.
7. City's prior experience with the consultant.
R. Familiarity with the geographical area of the project.
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9. Consideration of distribution of contracts on an equitable
basis among the most qualified firms on the register.
10. Specialized equipment available to the consultant which are
relevant to the completion of the project.
11. Financial responsibility of the consultant.
12. Other criteria as established by the City or specific to the
project.
13. If a project, program, or study is of a nature of a continuation
or expansion of a previous project, program or study, then the
firm that had the previous contract may be given higher
priority for consideration.
14. An evaluation of the quality and completeness of the
qualification statement or proposal submitted.
15. Firms with offices Iocated in San Diego County will be given
favorable consideration over firms who do not have offices
within San Diego County, unless such firms have participated
by invitation.
16. Individuals within the consultant's organization who will
have direct charge of the work.
17. Whether consultant has adequate staff to perform the work
within the time allowance.
18. The ability of the consultant to make effective public
presentations of the report and/or design as may be required.
19. The ability of the consultant to work effectively with City
staff, other public agencies, and related parties as may be
required during the course of the design, study, or other
technical services.
20. Pertinent new ideas which may be presented by the consultant
during the course of the selection process.
g.
21. Demonstrated continuing interest by the consultant in the
success, efficiency, and workability of facilities he has
designed during construction and after they are placed in
operation.
22. Ability of the consultant to furnish adequate and effective
construction supervision services.
The selection committee shall determine, based on a weighted rating form,
or other format, the top three (3) consultant firms (if that many are
determined to be qualified). The number one selection may be requested to
prepare a preliminary, detailed scope of work, time schedule and anticipated
fee for use in the contract negotiation phase.
h. The department director should appoint an ad hoc committee for negotiation
of the scope of work and consultant compensation. It is recommended that
the committee consist of one or more staff personnel directly involved in the
project. However, depending upon the scope and nature of the project, a
single individual may be designated for the negotiation phase. It is suggested
that the agency develop independent estimates of the cost of the required
services prior to the start of negotiations. In addition, in order to verify that
the consultant's fees are fair and reasonable, it is suggested the consultant
submit a detailed fee estimate based upon:
1. The tasks to be performed in accordance with the scope of
work.
2. The man-hours allocated to each task.
3. A breakdown of the employees and professionals, to be
assigned to the tasks, the average hourly rates of each, and the
man-hour costs assigned.
4. "Fixed fee" or "cost plus fixed fee" (if applicable).
The agreement may provide for differing methods of
compensation based upon the type of work to be performed.
"Per diem" or hourly compensation is the general rule when
specific scope of work is yet to be determined. This type of
compensation should carry a stated maximum amount which
will not be exceeded except by prior approval. Fixed fee or
cost plus fixed fee compensation is commonly used after
scope of work has been explicitly identified.
Where the scope of work cannot be defined or the exact
duration of the work cannot be determined, a "per diem"
compensation or a "cost per unit of work" compensation may
be utilized. Other forms of compensation may also be
utilized as approved by the City. Compensation is paid for
services as performed, rather than in advance.
All agreements for professional services shall pay particular attention to the
management phase of the resulting contract. A single project manager shall
be designated by the consultant, and a liaison manager shall be designated by
the department for purposes of contract administration. In addition,
affirmative action clauses to further published City goals and policies shall
be an integral part of professional contract administration.
Late responses or untimely responses by prospective candidates shall not be
considered for further action. The ability to respond to an invitation for
consideration in a timely and responsive manner is essential to a future
satisfactory contract relationship.
The department shall insure that the other departments which have a proper
interest in the work under consideration are kept informed as to the progress
of the work and that user decisions and desires are constructively considered
within the constraints of financial and practical limitations.
If agreement with the consultant cannot be reached with the number one
selection, the negotiations are terminated. Then negotiations are opened with
the second choice and the process is repeated. Once negotiations are
terminated with a consultant, the agency should not reopen negotiations with
that consultant during this process. If agreement cannot be reached with any
of the selection committee recommendations, the selection committee will be
asked to make additional recommendation, or hold additional oral
interviews, as necessary, to establish a new list of additional qualified
consultants.
i. The appropriate department director presents the negotiated agreement to the
City Council for approval of the selection and of the proposed contract.
Post Contract Evaluation
The department director shall prepare an evaluation of the performance of
every professional consulting firm retained for a contract addressed by this
policy. This evaluation should address such factors as:
1. The actual fees required as compared to the original contract
amount.
2. The actual time of performance as compared to the original
contract requirements.
3. The actual construction contract amount as compared to the
firm's estimate of cost (if applicable).
4. The number of construction change orders required (if
applicable).
5. The quality of the final project, program, or study. This
information shall be maintained on file for reference purposes
in future contract awards. Further, it shall be open for review
only to the subject firm who may tender any observations felt
to be appropriate as a matter of record in such files.
Exceptions
The above policy and procedures do not apply to the following services:
1. Contracts, administered by another agency, to which the City
of National City is signatory.
2. Services of an emergency nature.
3. Materials laboratory testing services, such as:
Soils, asphalt paving, and concrete testing.
4. If the project is of a nature of a continuation or expansion of
a previous project or contract, only Section f. through Section
h. of this policy need apply.
5. Contract services for furnishing temporary employees that are
supervised directly by a City employee.
6. Consultants in subcontracting capacity.
B. Intermediate Projects - Fees of $15.000 to $25,000
Follow the procedure under major projects utilizing a review
committee composed of qualified staff personnel and consider no less
8
than three (3) qualified firms or individuals. On occasion, for an
unusual project which poses special problems beyond the scope
previously encountered by City staff personnel, the review committee
may be augmented by an unbiased qualified member of the
profession being considered.
The appropriate department director presents the selection and
the proposed contract to the City Council for approval.
C. Minor Projects - Fees Less than $15,000
Department directors shall maintain a current file on qualified
professional consultants in various categories. When
selecting a consultant to provide services on a specific
project, the department director, in addition to capability and
qualifications, considers consultants on a rotational basis
whenever feasible. This selection is subject to the negotiation
procedure.
A scope of work and corresponding compensation method
will then be negotiated with the consultant. Upon attainment
of an agreement, the agreement can be executed by the City
Manager or Department Director.
VI. REQUIREMENTS OF THE PROFESSIONAL CONSULTANT:
1. Contractual work.
a. Consultant's work shall be of the highest professional standards.
b. Consultant shall complete the specific scope of work contracted for within
the time frame outlined in the consultant agreement.
2. Change Orders
a. Where a Change Order arises as a result of an error or omission of the
Consultant, Consultant shall not be compensated for the extra services or for
time spent, or for cost incurred in efforts connected with the correction of
said error or omission.
b. The Department Director is authorized to approve change orders up to 10%
of the contract amount, or up to a maximum of $7,500 per change order,
whichever is less.
9
pec
c. If any error or omission of the Consultant results in identifiable damage to the
City, or increases the project cost, the Consultant shall be responsible for the
cost of such damages or increased costs.
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ORDINANCE NO. 9 5- 2 0 9 9
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
ADOPTING PROCEDURES FOR SELECTION
OF PROFESSIONAL FIRMS
WHEREAS, Section 4526 of the California Government Code states that
selection by a local agency of professional services by private architectural, landscape
architectural, engineering, environmental, land surveying and construction project
management firms shall be on the basis of demonstrated competence and on the
professional qualifications necessary for the satisfactory performance of the services
required; and
WHEREAS, Section 4526 further provides that in order to implement this
method of selection, a local agency contracting for such professional services may adopt,
by ordinance, procedures that assure that these services are engaged on the basis of
demonstrated competence and qualifications for the types of services to be performed and
at fair and reasonable prices to the local agency.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City
of National City that the City Council does hereby adopt that document entitled
"Procedures for Selection of Professional Services Firms," containing procedures for
selection of private architectural, landscape architectural, engineering, environmental,
land surveying and construction project management firms in compliance with Section
4526 of the California Government Code. Said document is on file in the Office of the
City Clerk.
PASSED and ADOPTED this 7 t h day of November , 1995.
ATTEST:
or Anne Peoples, City Clerk
APPROVED AS TO FORM:
George f),
*Eiser, III
City Attorney
George H. Waters, Mayor
Passed and adopted by the Council of the City of National City, California, on November
7, 1995, by the following vote, to -wit:
Ayes: Council Members Beauchamp, Inzunza, Zarate, Waters.
Nays: None.
Absent: Morrison.
Abstain: None.
AUTHENTICATED BY:
GEORGE H. WATERS
Mayor of the City of National City, California
�L,l �JlMAR-0
ity lark of the City of National City, alifornia
By:
Deputy
I HEREBY CERTIFY that the foregoing ordinance was not finally adopted until seven
calendar days had elapsed between the days of its introduction and the days of its final
passage, to wit, on October 24, 1995 and on November 7, 1995.
I FURTHER CERTIFY THAT said ordinance was read in full prior to its final passage or
that the reading of said ordinance in full was dispensed with by a vote of not less than a
majority of the members elected to the Council and that there was available for the
consideration of each member of the Council and the public prior to the day of its passage
a written or printed copy of said ordinance.
I FURTHER CERTIFY that the above and foregoing is a full, true and correct copy of
ORDINANCE NO. 95-2099 of the City Council of the City of National City, passed and
adopted by the Council of said City on November 7, 1995.
City Clerk of the City of National City, California
By:
Deputy