ORDINANCE
NO. 150447
Amending Chapter
3, Code of Ordinances by repealing Sections 3-3, Contract solicitation, 3-7,
Contract solicitation waivers; ordinances, 3-41, Contract authorization, 3-61,
Tax Clearance, 3-91, Escalation of dollar limits, and enacting in lieu thereof
new sections of like numbers and subject matters that codify the automatic
adjustment to contracting dollar thresholds by the consumer price index and
moving the adjustment date to reflect the new council election date.
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That Chapter 3, Code of Ordinances of the City
of Kansas City, Missouri, is hereby amended by repealing Sections 3-3, Contract solicitation, 3-7, Contract solicitation
waivers; ordinances, 3-41, Contract authorization, 3-61, Tax Clearance, 3-91,
Escalation of dollar limits, and enacting in
lieu thereof new sections of like numbers and subject, to read as follows:
Sec.
3-3. Contract solicitation.
(a)
General standard. Except
as otherwise provided in subsections (b) through (g) herein or the provisions
of section 3-5, all city contracts shall be procured as follows:
(1) Contracts
exceeding $160,000.00. If the contract's estimated consideration
exceeds $160,000.00, the city shall issue public notice within a reasonable
time as determined by the city manager, director of the contracting department,
or the manager of procurement services when soliciting such contract, prior to
the closing date of the solicitation. Such notice may be made by publication on
the world wide web, appropriate print media, or any other means of publicly
making the solicitation known to potential bidders or proposers. Sealed bids or
proposals are required.
(2) Contracts
between $3,000.01 and $160,000.00. If the contract's estimated
consideration is between $3,000.01 and $160,000.00, unsealed bids or proposals
shall be solicited by any reasonable method from at least three qualified
sources, or fewer if less than three qualified sources shall exist. Sealed bids
or proposals and public notice may be used in the city's discretion, but their
use is not mandatory.
(3) Contracts
$3,000.00 or less. If the contract's estimated consideration is
$3,000.00 or less, or if the expense is to be incurred through the use of a
procurement card pursuant to regulations implemented by the manager of
procurement services or the director of finance, such regulations being hereby
authorized, sealed or unsealed bids or proposals may be required in the city's
discretion, but their use is not mandatory and the city is authorized to
execute a contract without any solicitation.
(b) Design
professional contracts. The city shall utilize a qualification based
solicitation process and shall issue public notice within a reasonable time
prior to the closing date of the solicitation requesting that a statement of
qualifications be submitted by any firm seeking to provide architectural,
engineering or land surveying services.
(c) Specialized
procurements. The following procurement methodologies may be utilized
subject to rules and regulations that may be adopted by the city manager or
manager of procurement services from time-to-time, such methods being deemed
likely to produce cost and times savings to the city and therefore deemed to be
in the public's best interest:
(1) Reverse
auction;
(2) Cooperative
procurement, in which solicitation will be performed by the city or another
entity;
(3) Piggybacking;
(4) Purchasing
pool or cooperative;
(5) Sole
brand purchase.
Notwithstanding the
foregoing, the methods authorized in this subsection shall not be utilized to
procure any construction contract, except for those providing for the
maintenance or repair of any facility.
(d) Solicitation-exempted
contracts. Solicitation shall not be required for the following contract
types, provided however that solicitation shall not be precluded if the city
manager, director of the contracting department, or the manager of procurement
services when soliciting such contract on behalf of such department, determines
that solicitation is in the city's best interests:
(1) Concession
contracts, except for those solicited by the manager of procurement services;
(2) Cooperative
agreements, to the extent such agreements are with any other municipality or
political subdivision, or with an elective or appointive official thereof; or
with a duly authorized agency of the United States, or of this state, or with
other states or their municipalities or political subdivisions; or with any
not-for-profit entity granted tax-exempt status under any provision of Section
501(c) of the Internal Revenue Code (26 U.S.C. § 501(c));
(3) Non-municipal
agency contracts.
(e) Alternative
construction delivery methods. The city shall utilize such solicitation methods
as the contracting department shall determine to be in the city's best interest
with regard to the particular project to be constructed.
(1)
The use of
alternative construction delivery methods shall be subject to any rules and
regulations that may be adopted by the city manager from time-to-time.
(2)
The formal establishment and adoption
of a particular alternative construction delivery method including
solicitation, selection, and award processes shall be subject to a period of
public comment and feedback.
a.
The public comment
period shall be no less than 30 days.
b.
The City Manager
shall use reasonable and customary methods to notify the general public of such
comment period.
c.
After the end of the
public comment period, the City Manager shall review the public comments for
possible implementation into any proposed solicitation, selection, and award
processes.
(3)
Design build is an already approved
alternative construction delivery method codified in Section 3-31 and
therefore, meets the criteria identified in subsection (2).
(4)
If an alternate or additional method
of solicitation is required by city charter, federal or state law, ordinance,
contract or grant terms, the alternate or additional method shall be utilized.
(5)
If a contract
requires city council authorization as provided in Section 3-41, the city
manager or the director of the contracting department shall notify the city
council of the alternative construction delivery method chosen to procure the
contract at least 14 days prior to the start of the bidding or solicitation
process.
Sec.
3-7. Contract solicitation waivers; ordinances.
(a)
Unless otherwise prohibited by
federal or state law, contract or grant terms, the following exceptions to the
contract solicitation requirements in Section 3-3 may be utilized:
(1) Departmental
waivers. Unless otherwise prohibited by the city manager, the director
of the contracting department and the manager of procurement services are
authorized to waive the solicitation requirements for any contract with an
estimated cost of $160,000.00 or less, exclusive of a design professional
contract, if the director of the contracting department or the manager of
procurement services determines, in writing, that:
a. There is only
one source or no competition exists; or
b. There exists an
imminent threat to public health, welfare, safety or essential operations of
the city; or
c. Public
solicitation would result in increased cost for the city or would otherwise not
be in the best interest of the city; or
d. The contractor
to be utilized has unique or specialized experience suited to a specific
project such that it is in the city's best interests to utilize such
contractor; or
e. The service to
be performed is one which must, for warranty purposes, be performed by a
particular manufacturer's authorized representative.
No contract awarded pursuant to this
subsection (a)(1) shall be amended or changed in a manner that would increase
the city's maximum financial obligation by more than ten percent except upon
the written approval of the city manager, nor shall a new contract be awarded
to the same person or firm for the same project for which the original contract
was awarded pursuant to such a waiver except upon public solicitation in
compliance with section 3-3 or a waiver granted pursuant to section 3-35.
(2) City Manager Waivers. The city manager may waive the
solicitation requirements for any contract, regardless of estimated cost, if
the city manager determines, in writing, that:
a. There is only one source or no competition exists; or
b. There exists an imminent threat to public health, welfare,
safety or essential operations of the city; or
c. Public solicitation would result in increased cost for the
city or would otherwise not be in the best interest of the city; or
d. The contractor to be utilized has unique or specialized
experience suited to a specific project such that it is in the city’s best
interests to utilize such contractor; or
e. The service to be performed is one which must, for warranty
purposes, be performed by a particular manufacturer’s authorized
representative.
(3) Specialized waivers – design professional contract. Regardless
of the initial dollar amount of any design professional contract, the city may
elect to utilize the same design professional or a subcontractor thereto on a
subsequent design phase or for additional design work without a new
qualification based selection process provided that the subsequent phase or
additional work is to be performed on the same project for which the design
professional was originally selected. If the city and the design professional
or subcontractor thereto cannot agree on reasonable compensation for the
subsequent design phase or additional design work, the city shall solicit and
award a design professional contract in the manner otherwise prescribed in this
Article.
(b) Any
ordinance required by section 3-41 and that authorizes a contract for which the
city manager shall have granted a waiver shall include recitals setting forth
the rationale supporting such waiver, provided however that the failure to
include such recitals shall not invalidate any public improvement procurement
or any contract.
Sec.
3-41. Contract authorization.
(a) Unless approval by the city council or the board of
parks and recreation commissioners is specifically required by city charter,
ordinance, federal or state law, contract or grant terms, the following
provisions shall control:
(1) The city manager
and department directors are authorized to enter into any and all contracts and
cooperative agreements on behalf of the city without city council authorization
in which the term does not exceed five years and the consideration does not
exceed $1,300,000.00 for a construction contract and $400,000.00 for all other
contracts.
(2) The city manager
and manager of procurement services are authorized to enter into all contracts
and cooperative agreements on behalf of the city without city council
authorization in which the term does not exceed five years and the estimated
consideration does not exceed $1,300,000.00 for goods, supplies, materials, or
equipment and $400,000.00 for services, provided however that the higher
threshold shall apply to any contract or cooperative agreement in which
services are to be provided in conjunction with the goods, supplies, materials
of equipment being procured.
(b) If city
council authorization is required and obtained, the contract may subsequently
be amended by change order, contract amendment or otherwise in such a manner as
to increase the consideration due by up to and including ten percent (10%)
without further city council authorization. This cap may be exceeded, subject
to the sufficiency of appropriated funds, if authorization to such effect is
included within the body of the ordinance authorizing the contract or an
amendment to the contract.
Sec. 3-61. Tax clearance.
(a) Notwithstanding any other Code section to the
contrary, each contractor shall provide proof of compliance with the tax
ordinances administered by the commissioner of revenue as a precondition to the
city making the first payment under any contract or contract renewal if the
consideration exceeds $160,000.00. All proof of compliance letters issued by
the commissioner of revenue shall be valid for one year from the date of
issuance.
(b)
The
city manager is authorized to enter into Cooperative Agreements with any other
municipality, political subdivision, or governmental entity that requires a
city contractor to be in compliance with the tax laws of other municipalities,
political subdivisions, or governmental entities as a precondition to the city
making the first payment under any city contract or contract renewal.
Sec.
3-91. Escalation of dollar limits.
(a) Effective August 1,
2019, and at the beginning of every new four year term for city council members
thereafter, the monetary amounts specified in sections 3-3, 3-7, 3-41 and
3-61 shall automatically be adjusted to reflect an increase equal to the
increase in the consumer price index (all items/all urban consumers/Kansas
City, Missouri-Kansas) having occurred since the last preceding adjustment, as
published by the United States Department of Labor, Bureau of Labor Statistics
Consumer Price Index for all urban consumers. Such monetary amount, as
adjusted, shall be rounded upwards as follows:
(1) Amounts less
than $20,000.00 shall be rounded upwards to the nearest $1,000.00; and
(2) Amounts between
$20,000.00 and $200,000.00 shall be rounded upwards to the nearest $10,000.00;
and
(3) Amounts equal to
or greater than $200,000.00 shall be rounded upwards to the nearest
$100,000.00.
__________________________________________________
Approved as to form and legality:
_______________________________
Jim Brady
Assistant City Attorney