KC Skyline

City Clerk Web Search

Search the Ordinances:

Legislation #: 170963 Introduction Date: 11/30/2017
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBERS LUCAS, BARNES JR., CANADY AND SHIELDS
Title: Amending Chapter 3, Code of Ordinances by repealing Sections 3-1, Definitions, 3-7, Contract solicitation waivers; ordinances, 3-35 General waivers, 3-41, Contract authorization, and enacting in lieu thereof new sections of like numbers and subject matters.

Legislation History
DateMinutesDescription
11/30/2017 Filed by the Clerk's office
11/30/2017 Referred to Transportation & Infrastructure Committee
12/14/2017 Hold On Agenda (12/21/2017)
12/21/2017 Hold On Agenda (1/18/2018)
1/18/2018 Hold On Agenda (1/25/2018)
1/25/2018 Without Recommendation As a Substitute
1/25/2018 Assigned Third Read Calendar as Substituted
2/1/2018 Councilmember Reed (Second by Fowler) Move To Re-refer
2/1/2018 Re-Referred Transportation & Infrastructure Committee
2/8/2018 Hold On Agenda (2/15/2018)
2/15/2018 Hold On Agenda (3/8/2018)

View Attachments
FileTypeSizeDescription
170963.pdf Advertise Notice 100K Hand-out
Presentation - Updated.pptx Advertise Notice 14516K PowerPoint Presentation
170963 compared version.pdf Compared Version 539K compared version

Printer Friendly Version

COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 170963

 

Amending Chapter 3, Code of Ordinances by repealing Sections 3-1, Definitions, 3-7, Contract solicitation waivers; ordinances, 3-35 General waivers, 3-41, Contract authorization, and enacting in lieu thereof new sections of like numbers and subject matters.

 

WHEREAS, the City endeavors to provide open, transparent, and accountable government as well as efficient delivery of public services; and

 

WHEREAS, the Missouri Sunshine Law and the City of Kansas City, Missouri’s Municipal Code for decades has provided that the City’s actions are open to the public and the City’s actions should promote the policy of transparency and accessibility of information for the public; and

 

WHEREAS, the City has expended significant sums to ensure all ordinances are available efficiently and easily for members of the public, the press, and others to search, review, and understand the operations of the City; and

 

WHEREAS, contract approval through the ordinance and council committee process creates efficient opportunities for public review; and

 

WHEREAS, administrative efficiency suggests that some contracts of low value should be exempted from the full legislative process; and

 

WHEREAS, between 2001 and 2005, the City Council increased dramatically the highest threshold by which the then-City Manager could approve a contract without Council review and attendant automatic public disclosure from $35,000.00 to $1,025,000.00; and

 

WHEREAS, the policy choice made by that prior Council and initially affecting the operations of the City under a prior City Manager have placed the City’s non-City Council reviewable contract award threshold significantly above the thresholds of almost all other American cities of similar size and government structure; and

 

WHEREAS, the policy choice made by that prior Council and initially affecting the operations of the City under a prior City Manager have reduced public accessibility and the efficient availability of information relating to City operations including operations with costs in the millions of dollars; and

 

WHEREAS, use of waivers and exceptions to City procurement rules have the potential effects of undermining City policy pertaining not only to transparency, but also to principles of diversity and inclusion, open competition, and fair compensation; and

 

WHEREAS, review of high-dollar contract awards provides Council no greater input and involvement in department or managerial activity than already contemplated by City policy and will not overly burden the several-hour per week legislative meeting commitment of most councilmembers; and

 

WHEREAS, like almost every other American city of similar size and government type, the City can continue to deliver efficient and effective quality services while also permitting efficient opportunities for public view of City activities pertaining to millions of dollars; NOW, THEREFORE,

 

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 3-1, Definitions, 3-7, Contract solicitation waivers, ordinances, 3-35 General waivers, 3-41, Contract authorization, and enacting in lieu thereof new sections of like numbers and subject, to read as follows:

 

Sec. 3-1. Definitions.

(a) The following definitions apply to Article I except where an alternate definition has been provided or the context indicates otherwise:

 

(1) Alternative construction delivery method shall mean any project delivery method, other than a design-bid-build process, utilized to construct, reconstruct, improve, enlarge, alter, paint and decorate or make major repairs to any fixed work, the performance of which requires the payment of prevailing wage pursuant to state or federal law, including design-build, competitive sealed proposals, cooperative agreements with a private or public entity, construction-manager at risk services, or any other alternative procurement method authorized by law or specified in rules and regulations adopted by the city manager.

 

(2) Code shall mean the City of Kansas City, Missouri Code of Ordinances.

 

(3) Concession contract shall mean a contract for concessions or similar transactions involving the sale of products or rendition of services, or a combination thereof, in which funds are collected by the contractor from third parties for the sale of products, services, or a combination thereof, and from which the city may receive money in the form of a royalty or other financial return.

 

(4) Construction contract shall mean a contract for the construction, reconstruction, improvement, enlargement, alteration, painting and decorating or major repair of any fixed work, the performance of which requires the payment of prevailing wage pursuant to state or federal law.

 

(5) Cooperative agreement shall mean any agreement 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 person, firm, association or corporation for the planning, development, construction, acquisition or operation of any public improvement or facility, or for a common service.

 

(6) Cooperative procurement shall mean entering into an agreement or working with another unit of federal, state, local government , or a political subdivision of any of the foregoing, for the purpose of procuring goods, supplies, materials, equipment, services, or any combination thereof, needed by the parties thereto and expected to result in cost and time savings.

 

(7) Design-build contract shall mean a contract in which the design professional and construction services are contracted by a single entity known as the design–builder, design–build contractor or a variant thereof, and which single entity is responsible for all of the work on the project.

 

(8) Design Professional contract shall mean a contract for architectural, engineering or land surveying services relating to the design or construction of buildings, bridges, streets, sewers, viaducts, water mains, subways or any structure or public improvement of any nature whatsoever to be erected upon lands belonging to the city, excluding those contracts in which the design professional services are provided pursuant to a design-build contract.

 

(9) Invitation for bids shall mean a request or invitation for submission of an offer to enter into a contract pursuant to a competitive bidding process.

 

(10) Manager of procurement services shall mean the person appointed by the director of the general services department to manage the procurement services division of such department.

 

(11) Non-municipal agency contract means a contract with a governmental entity or 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)) in which the city grants funds pursuant to an approved budget for the operation of administration of a program or services which furthers the public good.

 

(12) Piggybacking shall mean entering into a contract for goods, supplies, materials, equipment, services, or any combination thereof, with an entity that has been awarded a contract for such goods, supplies, materials, equipment, services, or any combination thereof, through a competitive solicitation process undertaken by the federal government, any state or local government other than the city, any other tax supported public entity, or any cooperative or pooling arrangement, under equivalent contractual terms and conditions and subject to acceptance of the city’s contractual terms and conditions.

 

(13) Procurement card shall mean a credit card issued by the city for the purpose of purchasing goods, supplies, materials, equipment, or services, or to make payments under a contract.

 

(14) Professional services contract shall mean a contract for licensed professional services or non-licensed professional services when the services are primarily for an outside expert opinion or advice, on business decision(s), processes, or project(s). The term Professional services contract shall not include Non-municipal agency contracts, Concession contracts, maintenance contracts, Construction contracts, Cooperative agreements, Design professional contracts, and information technology contracts that include software as a service.

 

(15) Purchasing pool or cooperative is any arrangement whereby entities aggregate purchasing needs for the purpose of obtaining discounted pricing or better terms or conditions.

 

(16) Qualification based selection process is a solicitation process that includes consideration of the qualifications of anyone responding to a solicitation as the determinative criteria for selection.

 

(17) Reverse auction shall mean an electronic reverse auction purchasing process in which vendors bid to provide any services needed by more than one department, or for goods, supplies, materials, or equipment utilized by one or more departments, at the lowest selling price, and in an open and interactive environment and which results in a contract being awarded to the lowest and best bidder.

 

(18) Request for proposals shall mean a written invitation by the city for persons to submit an offer subject to subsequent negotiations with the city and subject to subsequent additions, deletions, modifications to the request for proposal specifications or any subsequent contract.

 

(19) Request for qualifications shall mean a written invitation by the city for a person to submit a statement of qualifications to the city.

 

(20) Sole brand purchase shall mean a process for purchasing which includes specifications restricting the purchase to a specific manufacturer or brand.

 

(21) Statement of qualifications shall mean a statement submitted by a prospective contractor detailing a prospective contractor’s experience, financial capacity, key personnel, and other information pertinent to a particular project.

 

(22) Term-supply contract shall mean a contract for the purchase of any services needed by more than one department, or for goods, supplies, materials, equipment, or any combination thereof, utilized by one or more departments, of such a nature as may be needed by the city over the course of a fiscal year, including but not limited to catalog or standard production items, the price of which is determined by published price lists.

 

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 $250,000.00 or less if the director of the contracting department or the manager of procurement services explains based on the circumstances of the procurement, in writing, that:

 

a. There is only one unique source or one specialized source; or

 

b. There exists a potential Major emergency or potential Disaster as defined in Section 2-85, Code of Ordinances; or

 

c. There exists an imminent threat to life, health, property, or essential operations of the city due to extraordinary disaster or other unforeseen occurrence; or

 

d. Public solicitation would result in substantial increased cost for the city; 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 if the city manager determines, in writing to Council, that:

 

a.                   There is only one unique source or one specialized source or no competition exists; or

 

b.                  There exists a potential Major emergency or potential Disaster as defined in Section 2-85, Code of Ordinances; or

 

c.                   There exists an imminent threat to public health, welfare, safety, substantial economic liability or essential operations or policies of the city; or

 

d.                  Public solicitation would result in substantial increased cost for the city; or

 

e.                   The service to be performed is one, which must for warranty purposes, be performed by a particular manufacturer’s authorized representative; or

 

f.                   It is necessary to provide or continue to provide essential services or meet City contractual obligations.

 

(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. 3-35. General waivers.

 

(a) City manager waivers. The city manager may waive any requirements imposed by the solicitation or by any city manager regulation if the city manager determines, in writing to Council, that:

 

(1) The failure to grant the waiver would result in a substantial increased cost to the city or harm other city policy or regulation and the requirement is one that would be waived for any bidder or proposer responding to the solicitation; or

 

(2) The failure to grant the waiver would create an imminent threat to life, health, property, or essential operations of the city due to an unforeseen occurrence and the requirement is one that would be waived for any bidder or proposer responding to the solicitation.

 

(b) City council waivers. The city council at any time may waive any provision of the Code with regard to the solicitation or award of any city contract if it finds that:

(1) The failure to grant the waiver would be detrimental to preserving the public health, welfare, safety or essential operations of the city; or

 

(2) The waiver is necessary in order to participate in a purchasing pool or cooperative or a contract derived from a purchasing pool or cooperative; or

 

(3) The good, supply, material, equipment or service is from a sole source; or

 

(4) The failure to grant the waiver would result in an increased cost to the city, the requirement is one that would be waived for any bidder or proposer responding to the solicitation, and it is in the best interest of the city to grant the waiver; or

 

(5) It is otherwise in the best interests of the city for any other reason as determined by the city council.

 

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, manager of procurement services, 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 $50,000.00 for professional services contracts and $750,000.00 for all other contracts.

 

(2) No party in a single fiscal year may receive multiple contract awards related to a particular procurement pursuant to Sec. 3-41(a) that in sum exceed the maximum allowable thresholds under Sec. 3-41(a)(1) without prior Council authorization.

 

(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.

 

(c) The city manager shall file quarterly a report with the city clerk of all contracts authorized with consideration in excess of $20,000.00 for professional services contracts and $160,000.00 for all other contracts pursuant to Sec. 3-41(a)(1) during that period, unless a particularized reason exists for nondisclosure that shall be reported to Council. Such reports shall be published on the world wide web.

 

__________________________________________________

 

Approved as to form and legality:

 

 

_______________________________

Jim Brady

Assistant City Attorney