KC Skyline

City Clerk Web Search

Search the Ordinances:

Legislation #: 150447 Introduction Date: 6/4/2015
Type: Ordinance Effective Date: none
Sponsor: None
Title: 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.

Legislation History
DateMinutesDescription
6/4/2015 Filed by the Clerk's office
6/4/2015 Referred to Finance, Governance & Ethics Committee
6/10/2015 Do Pass
6/11/2015 Assigned to Third Read Calendar
6/18/2015 Passed

View Attachments
FileTypeSizeDescription
150447-001.pdf Authenticated 531K Authenticated
150447 fact sheet.docx Fact Sheet 25K fact sheet
150447com.docx Compared Version 43K compared version

Printer Friendly Version

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