COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 010461
Amending Chapter 2, Code
of Ordinances, by repealing Sections 2-1751 and 2-1753 through 2-1756, and
enacting in lieu thereof new sections 2-1751 and 2-1753 through 2-1755 that
impose new standards for purchasing.
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That
Chapter 2, Code of Ordinances of the City of Kansas City, Missouri, is hereby
amended by repealing Sections 2-1751 and 2-1753 through 2-1756, and enacting in
lieu thereof new sections 2-1751 and 2-1753 through 2-1755, to read as follows:
Sec. 2_1751. Storerooms.
(a) Authority
of commissioner of purchases and supplies. The commissioner of purchases
and supplies, with the approval of the director of finance and the city
manager, may establish and maintain one or more storerooms or warehouses for
the keeping of city supplies purchased through the division of purchases and
supplies. The commissioner is authorized to increase or diminish the number or
capacity of storerooms and warehouses, with the approval in each case of the
director of finance and of the city manager.
(b) Records
of stock; annual inventory. The commissioner shall keep stock records which
shall at all times show the number or amount and the value of all items carried
in such storerooms and warehouses, the receipt of all items by such storerooms
and warehouses, and the cost of all such items, the issuance of all items from
such storerooms and warehouses to the city departments and offices upon
requisition therefor, and the charges made thereupon.
Sec. 2_1753. Making
purchases and term_supply and service contracts.
(a) Generally.
Unless otherwise provided in this code or by law, all purchases of articles,
commodities, supplies, materials and common services for the city including
lease and rental of personal property and all term contracts for the
acquisition of like items and services shall be made by the commissioner of
purchases and supplies, who shall solicit, receive and open bids and proposals,
and make all awards thereof, under such rules and regulations as the director
of finance shall approve. The use of the Model Procurement Code and Recommended
Regulations of the American Bar Association, as appropriately modified, is
encouraged as the general guidelines for developing rules and regulations.
(b) Services.
When it is in the best interest of the city, the commissioner is authorized to
solicit bids or proposals and award term contracts for contractual services
which are required by one or more office, department, agency or other unit of
the city.
(c) Formal
bids and formal proposals. Formal competitive sealed bids and formal competitive
sealed proposals will be used for making purchases and for awarding term-supply
and service contracts when the estimated cost thereof exceeds $100,000.00.
Formal bids or formal
proposals shall be sealed and
addressed in the manner prescribed by the commissioner in the bid or proposal
solicitation. Formal bids and formal proposals shall be posted on the world
wide web for a reasonable time prior to the closing date of the solicitation.
The commissioner is authorized to accept formal bids or formal proposals in an
electronic format and to solicit competitive sealed proposals when competitive
sealed bidding is either not practical or not advantageous to the city.
(d) Informal
bids or proposals. Informal competitive bids or proposals may be used for
purchases and for awarding term-supply and service contracts when the estimated
cost thereof does not exceed the threshold for formal bids or formal proposals.
Quotations shall be solicited from a reasonable number of qualified sources to
ensure that the proposed purchase, term-supply or service contract is
advantageous to the city, price and other factors considered. Simplified
procedures for purchases and services may be used when the aggregate amount of
the expenditure does not exceed $1,000.00, fair and reasonable prices can be
obtained and the administrative and other costs of making the purchase or
obtaining the service by other procedures exceed any probable price reductions.
(e) Emergency
contracts. Emergency purchases and contracts may be made if there exists a
threat to public health, welfare, safety or essential operations of the city.
Emergency procurements shall be made utilizing procedures recommended by the
director of finance and approved by the city manager with such competition and
observation of qualifying regulations as practical under the circumstances.
Periodic reports of emergency purchases will be made to the director of
finance.
(f) Sole
source. A contract may be awarded without competition when the commissioner
determines in writing, after conducting a good faith review of available
sources, that there is only one source for the required good, supply, material,
equipment or service. The commissioner shall conduct negotiations, as
appropriate, for price, delivery and terms. When only one response is received
to any solicitation, an award may be made by negotiation with the available
source.
(g) Sole
Brand Procurement. A contract may be awarded for supplies or services
limiting competition to a sole brand or service provider if the necessity for
this brand or service provider is certified in writing by the commissioner.
The commissioner shall seek such competition as possible under the
circumstances and the award may be made by negotiation if there is only one
bid, proposal or available source.
(h) Government
Procurement. The commissioner is authorized to enter into contracts with
persons who have been awarded contracts through a competitive solicitation for
supplies, materials, equipment or service by the federal government, any state
or local government, any other tax supported public entity or any cooperative
or pooling arrangement in which such entities participate, without seeking
bids or proposals if the person will provide the supplies, materials, equipment
or service under equivalent contractual terms and conditions subject to
acceptance of the citys contractual terms and conditions.
(i) Purchasing
Pools. The commissioner is authorized to participate in any purchasing
pool or cooperative and any contract derived from a purchasing pool or
cooperative when it is determined by the commissioner that the citys
participation should result in cost savings to the city. The commissioner
shall incorporate city code requirements in any purchasing pool contract,
cooperative agreement or any contract derived from such. For purposes of this
subsection, a purchasing pool or cooperative is any arrangement whereby
entities aggregate purchasing needs for the purpose of obtaining discounted
pricing or better terms and conditions or both.
(j) Term_supply
and service contracts. In the purchase of supplies, materials, equipment
or services needed continuously or repeatedly, including catalog or standard
production items, the price of which is determined by published price lists,
the commissioner may enter into term-supply and service contracts. Term-supply
and service contracts will be made for a period not to exceed one year, but may
contain unilateral options on the part of the city for renewal for a reasonable
number of additional one_year periods. Term-supply and service contracts need
not bear the certificate of the director of finance as regards certification of
funds; but no financial obligation shall accrue against the city until a
purchase order for the supply or service, on which funds are certified, is
issued. Lease or rental of personal property shall be made by term contract
and may exceed more than one year in length.
(k) Action on
bids and making awards thereof.
(1) Awards shall be made with
reasonable promptness to the lowest and best bidder or best proposer whose bid
or proposal is determined to be most advantageous to the city, price and other
factors considered. The commissioner of purchases and supplies or the
commissioners designee may accept the bid or proposal which in his judgment is
the lowest and best bid or best proposal, or he may reject any and all bids or
proposals and seek new bids or proposals, or purchase the required supplies or
service on the open market if they can be so purchased at a better price, or
follow the procedure in this subsection (2).
(2) Where bids exceed available
funds and time or other circumstances appear to preclude resolicitation, the
commissioner may negotiate an adjustment of the bid price with the apparent
lowest and best bidder in order to bring the bid within the amount of available
funds. If the negotiation with the apparent lowest and best bidder is
unsuccessful, the commissioner may reject any and all bids and solicit new bids
from only those persons who submitted a response to the original solicitation
or at his option resolicit bids with an expedited submission schedule.
(3) The commissioner is authorized
to award a contract as a secondary source of a supply or service to the second
lowest and best bidder or second best proposer to perform when the lowest and
best bidder or best proposer cannot perform or supply the needed goods,
supplies, materials, equipment or service.
(l) Group
Insurance Policies. In any solicitation for group policies providing
medical, hospitalization, dental or life insurance for city employees, the
commissioner shall present all bids or proposals to the city council and the
city council shall have the exclusive authority to award any contract to the
lowest and best bidder or best proposer as determined by the council, to make
multiple awards or to reject any and all bids or proposals.
(m) Tax clearance.
Prior to making any payment under any contract that was awarded by a means of a
formal bid or formal proposal, the contractor shall provide proof of compliance
with the tax ordinances administered by the commissioner of revenue. If a
contract is renewed by the city, contractor shall provide new proof of
compliance dated not more than ninety days prior to the renewal date of the
contract. Submission of this proof shall be a condition precedent to the city
making the first payment under such renewal.
Sec. 2_1754. Bonds and
Insurance.
(a) Authority
to require security. The commissioner of purchases and supplies may require
bidders or proposers to include with the bid or proposal security in the amount
specified in the solicitation, such security to be forfeited to the city in the
event the successful bidder or proposer fails or refuses to execute the
contract. The commissioner may also require the person receiving the award to
provide security in the amount specified in the solicitation to ensure
performance of the contract, such security to be forfeited to the city in the
event the person fails or refuses to perform the contract. Nothing in this
section shall be construed to limit the authority of the commissioner to
require other security. Upon request by the commissioner, the risk manager
shall make recommendations to the commissioner regarding the types and amounts
of security necessary for any given solicitation.
(b) Electronic
Procurement. Bid bonds shall not be required for electronic procurement.
If a person fails or refuses to execute a contract after submitting an
electronic bid or proposal to the City, the person shall be subject to
debarment or damages or both.
(c) Form of
security. The form of security may be a surety bond or other security
deemed acceptable by the director of finance and set forth in the solicitation.
Surety bonds must be provided by surety companies licensed to do business in
the state who also meet such other qualifications established by the director
of finance.
(d) Annual
bid and performance bond. A prospective bidder may file with the
commissioner of purchases and supplies an annual surety bond for bidding and
performance in a specified minimum amount, which shall remain in effect during
the city's fiscal year. Where the surety bond is insufficient to meet the total
security requirements of the vendor's outstanding bids and contracts,
additional security shall be provided upon request of the commissioner.
(e) Insurance.
The commissioner shall require insurance in such amounts and types as
recommended by the risk manager. The risk manager will review, as requested,
any potential bid for supplies and services and recommend insurance
requirements.
Sec. 2_1755.
Requisitions.
(a) Generally.
Requisitions for articles, commodities, supplies, materials, equipment or
services by any department or office shall be addressed to the commissioner of
purchases and supplies, shall be approved by the director of the department or
the head of the office, and shall be accompanied by such samples or by such
specifications as the commissioner may require. If the department or office
making the requisition has available a sufficient appropriation balance, the
commissioner may either furnish the items requisitioned from existing inventory
in city storerooms or warehouses, purchase the items or procure the services
pursuant to an existing term-supply or service contract, or procure the items
or services pursuant to the procedures provided by ordinance.
(b) Requisitions
from other city agencies. Whenever any department, office or division of
the city requires supplies or equipment which another department, office or
division of the city is able to furnish, suitable requisition may be made and
such supplies or equipment may be furnished. In such cases, bids need not be
obtained. Appropriate charges and credits shall be made to accounts affected by
such transactions.
________________________________________________________
Approved
as to form and legality:
___________________________________
Assistant
City Attorney