KC Skyline

City Clerk Web Search

Search the Ordinances:

Legislation #: 971028 Introduction Date: 7/17/1997
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER ASJES
Title: Amending section 2-81 "Contracts," section 2-1648 "Lease of city-owned real estate" and section 2-1753 "Making purchases and term-supply and service contracts", Code of Ordinances, by requiring Council approval of transactions exceeding $15,000.00.

Legislation History
DateMinutesDescription
7/17/1997

Prepare to Introduce

7/17/1997

Referred Finance & Administration Committee

7/23/1997

Hold On Agenda

8/6/1997

Hold Off Agenda

8/14/1997

Called Out of Committee

8/21/1997

Assigned to Third Read Calendar

8/28/1997

Failed


View Attachments
FileTypeSizeDescription
No attachment(s) found

Printer Friendly Version

 

ORDINANCE NO. 971028

 

Amending section 2-81 "Contracts," section 2-1648 "Lease of city-owned real estate" and section 2-1753 "Making purchases and term-supply and service contracts", Code of Ordinances, by requiring Council approval of transactions exceeding $15,000.00.

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. Section 2-81, Code of Ordinances, entitled "Contracts" is amended to read as followed:

 

Section 2-81. Contracts.

 

Pursuant to Section 82, Article IV of the City Charter, the city manager is authorized to enter into contracts on behalf of the city in an amount not to exceed $15,000.00; provided that the city manager shall not obligate the city to pay any contractor more than $30,000.00 in any fiscal year and for any single project without council approval. Included within this scope are all contracts for personal services, professional services, consulting services, demolition, construction, purchasing and leasing of goods and services by an individual department, construction, options to purchase real estate and leases. The city manager is further authorized to promulgate rules and regulations for the administration of this section which may include the delegation of this authority to individual departments.

 

Section 2. Section 2-1648, Code of Ordinances, entitled "Leases of city-owned real estate" is amended to read as followed:

 

Section 2-1648. Leases of city-owned real estate.

 

(a) Approval of the City Council. Unless otherwise authorized by the charter or ordinance, no lease or other contract or agreement purporting to grant any right to enter on or use any city-owned real estate for a term of more than one year or for consideration in excess of $15,000.00 shall be entered into on behalf of the city without approval of the city council.

 

(b) Notification to the City Council. Unless otherwise authorized by the charter or ordinance, no lease, license or other contract or agreement purporting to grant any right to enter on or use any city-owned real estate for a term of one year or less or for consideration in excess of $10,000.00 shall be entered into on behalf of the city without first providing written notice of the intent to execute such an agreement to the city council. Such notice shall include the names of the parties to the proposed agreement, a description of the property and the basic purpose and terms of the agreement. No such contract or agreement shall be executed on behalf of the city without the approval of the council if four or more council members file written objections to such contract or agreement within five working days of the notice date. The city manager shall establish procedures to ensure compliance with this provision.

 

(c) Department of convention and entertainment centers agreements. The department of convention and entertainment centers may enter into leases, licenses or other contracts or agreements granting the right to enter on or use facilities under its control without specific approval of the city council under the following circumstances:

 

(1) When the lease, license or other contract, or agreement is for a term of

three years or less, and the total number of days of use does not exceed 60

days; or

 

(2) When the lease, license or other contract, or agreement is for a term of

two years or less, and the nature of the lease, license or other contract or

agreement is for the installation and display of signage or other permanently

installed equipment for advertisements, communications or other similar

uses; or

 

(3) When lease, license or other contract, or agreement is for the use of a

suite in a facility under the control of the director of convention and

entertainment centers.

 

Section 3. Section 2-1753, Code of Ordinances, entitled "Making purchases and term-supply and service contracts" is amended to read as followed:

 

Section 2-1753. Making purchases and term-supply and service contracts.

 

(a) Generally. All purchases of articles, commodities, supplies, materials and common services for the city to include lease and rental of personal property and all term contracts for the acquisition of like items and services shall, unless excepted otherwise in this section or elsewhere, be made competitively by the commissioner of purchases and supplies, who shall solicit, receive and open bids, 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 in developing rules and regulations.

 

(b) Formal bids. Formal competitive sealed bids and competitive negotiated bids will be used for making purchases and term contracts when the amount thereof exceeds $15,000.00. Formal competitive bid and award procedures will be utilized.

 

(c) Informal bids. Informal competitive bids may be used for purchases and term-supply and service contracts when the aggregate amount thereof does not exceed the threshold for formal bids. Quotations shall be solicited from a reasonable number of qualified sources to ensure the purchase is advantageous to the city, price and other factors considered. Simplified procedures for small dollar value purchases may be used when the aggregate amount does not exceed $1,000.00, fair and reasonable prices can be obtained and the administrative and other costs of making numerous small dollar purchases by other procedures exceed any probable price reductions.

 

(d) Emergency procedures. Emergency procedures 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.

 

(e) Sole source. When it is determined that there is only one source for the required supply or service or when only one response is received to a competitive bid, an award may be made by negotiation with the available source. Supplies or services requested as sole source acquisitions will be advertised two times at a minimum of 14 days prior to solicitation, to determine possible alternate sources, and all such responses will be reviewed prior to award.

 

(f) Term-supply and service contracts. Term 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 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.

 

(g) Prequalification and bidding requirements. Prequalification of vendors seeking to provide materials, supplies or services is required as follows on all city-administered contracts:

 

(1) Pre-bid orientation. A minimum of two times annually, the city,

through one or more of its various departments, shall conduct a pre-bid

orientation to instruct participants in the standard procedures and

requirements for becoming vendors to the city. During this orientation,

materials will be provided and representatives from the finance and human

relations departments will be available to respond to inquiries.

 

(2) Pre-bid conference. The director of a city department or his authorized

representative may provide for a pre-bid conference at least ten days prior to

the bid opening date. This pre-bid conference may be designated as

mandatory or nonmandatory. Those who attend the pre-bid conference shall

be instructed in the procedures and requirements of city term-supply and

service contracts and the specifics of the bid in process.

 

(3) Prequalification requirements. The following listed items must be

completed prior to the bid opening, including the bid documents, or provided

prior to the award according to the terms outlined in the bid specifications:

 

a. For service contracts under $100,000.00, a bid bond may be

required depending upon the complexity or financial risk to city

operations. Service contracts over $100,000.00 will require a bid

bond. Term-supply contracts will not require a bid bond. Performance

bonds may be required for all-term supply contracts and for service

contracts under $100,000.00 depending upon the complexity or

financial risk to city operations. Service contracts over $100,000.00

will have performance bonds. Bid and performance bond

requirements may be satisfied by a bond which has been issued by a

bonding company meeting city standards, a certified cashier's check

or certificate of deposit will be accepted to meet the vendor's bid /

performance bond requirements. Certificates of deposit must have

prior approval of the city treasurer, and the original document must

be held for safekeeping in the finance department.

 

b. A standard insurance endorsement form (A) from an insurance

company permitted to do business in the state showing that the bidder

is insured for general liability, automobile liability and worker's

compensation for the limits required by the city.

 

c. A current occupational license from the city, if applicable.

 

d. The vendor's federal employer identification number.

 

e. A certificate of compliance or designation of compliance in the

vendor file from the human relations department of the city or a

similar certificate from the jurisdiction in which it usually does

business (where such certificates are issued).

 

f. A certification of payment of earnings tax and earnings tax

withholdings or, in the alternative, that it has entered into an

agreement with the city treasurer liquidating the amount of earnings

tax withholding due and establishing a plan for payment.

 

g. A committee, whose makeup will be comprised of

representatives from city departments, will meet periodically to

review and address prequalification procedures, department

compliance, pre-bid meetings and other concerns brought to its

attention. This committee will be chaired by the vice-chairman of the

operations and aviation committee.

 

(4) Advertisement. Advertising will be required for all formal bids of

$15,000.00 or more, and will be placed at a minimum of seven days prior to

bid opening. Each department will utilize a standard format for placing such

advertisements, and the contract for publication to be used will be awarded

through the competitive bid process. This requirement will not apply to

architectural and engineering services contract solicitations performed in

accordance with administrative regulation 3-18.

 

(5) Prevailing wage determinations. For maintenance or repair, prevailing

wages will be utilized if the work alters the structure by 20 percent or more.

 

(6) MBE/WBE-owned businesses participation. The finance department

will encourage all vendors to voluntarily utilize MBE/WBE-owned

businesses in the procurement process, including the use of joint ventures,

segmentation, etc., of contracts awarded under this section.

 

(h) Submission and opening of formal bids. Formal bids, as defined by subsection (b) of this section, shall be sealed and addressed as defined in the bid specifications. Competitive sealed bids will be read in summary. Only the name of the bidder will be read for competitive negotiated bids.

 

(i) Action on bids and making awards thereof. Upon opening of bids, they shall be examined immediately to decide as to their regularity in conformity to the requirements of the bid and specifications and bid security, and no bid shall receive consideration that fails to reasonably conform thereto. Awards shall be made with reasonable promptness to the lowest and best responsible and responsive bidder whose bid meets the requirements and criteria set forth in the bid, price and other factors being considered. The commissioner of purchases and supplies or designee may accept the bid in which in his judgment is the lowest and best bid, or he may reject any and all bids. Provided, however, in any bid for group service policies covering medical, hospitalization, dental and life, the commissioner shall present all bids to the city council and the city council shall have the exclusive authority to award any contract for group insurance policies to the lowest and best bidder as determined by the council, or to reject any and all bids.

 

 

Approved as to form and legality:

 

 

 

 

____________________________________

Acting City Attorney