SECOND
COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 170963, AS AMENDED
Amending Chapter 3, Code of Ordinances by repealing
Sections 3-1, Definitions, 3-3, Contract solicitation, 3-5, Contract
solicitation; authority, 3-7, Contract solicitation waivers; ordinances, 3-9,
Rejection of bids, proposals, qualifications, 3-31, Contract award,3-35 General
waivers, 3-41, Contract authorization, 3-43 Contract term; and enacting in lieu
thereof new sections of like numbers and subject matters; repealing Section
3-91, Escalation of dollar limits; and setting an effective date.
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, 3-3, Contract solicitation, 3-5,
Contract solicitation; authority, 3-7, Contract solicitation waivers,
ordinances, 3-9, Rejection of bids, proposals, qualifications, 3-31, Contract
award,3-35 General waivers, 3-41, Contract authorization, 3-43 Contract term, 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 or organization comprised of or working on behalf 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) Indefinite Delivery/Indefinite Quantity Construction
Contract shall mean a construction contract which imposes no financial
obligation on the City until the manager of procurement services issues a
Purchase Order which includes the director of finance’s certification of
available funds and is used for the purchase of construction in which the exact
nature of the construction projects or construction work during the course of
the city’s fiscal year cannot be determined by the city. A non-exhaustive list
of examples of indefinite delivery/indefinite quantity construction contracts
include but are not limited to: electrical, elevators, plumbing, HVAC, and job
order types of contracts.
(10) 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.
(11) 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.
(12) 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.
(13) Personal services contract: A contract or agreement of
employment with an individual who is not acting as an independent contractor
and who is not part of the city’s classified or unclassified service.
(14) 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 when feasible.
(15) 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.
(16) 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,
Personal services contract, and information technology contracts that include
services.
(17) Purchasing pool or cooperative is any arrangement
whereby entities aggregate purchasing needs for the purpose of obtaining
discounted pricing or better terms or conditions.
(18) 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.
(19) 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.
(20) 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.
(21) Request for qualifications shall mean a written
invitation by the city for a person to submit a statement of qualifications to
the city.
(22) Sole brand purchase shall mean a process for purchasing
which includes specifications restricting the purchase to a specific
manufacturer or brand and includes services unique to the specific manufacturer
or brand.
(23) Sole source purchase shall mean a process for purchasing
that allows the purchase of services from one business or person because: (a) there is only one unique source or one specialized source
or no competition exists; or (b) the business or person 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 business or person; or (c) the
city is collaborating on a project or common interest with a public or private
entity. A sole source purchase must include a written justification approved
by the city manager or manager of procurement services. If the sole source
purchase is for a Professional services contract, the contract shall be
authorized in accordance with dollar limits for a Professional services
contract as provided in Section 3-41.
(24) 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.
(25) Term-supply contract shall mean a contract which
imposes no financial obligation on the City until the manager of procurement
services issues a Purchase Order which includes the director of finance’s
certification of available funds and is used for the purchase of any services
needed by one or more departments, 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. A non-exhaustive list of
examples of term-supply contracts for services include but are not limited to:
janitorial services, security services, and temporary employment services.
Sec. 3-3. Contract solicitation.
(a) General
standard. Except as otherwise provided in subsections (b) through (e)
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. Notwithstanding any other
Section to the contrary, Section 3-421 through 3-500 shall apply on
non-construction contracts only if the non-construction contract exceeds
$160,000.00.
(2) Contracts
between $5,000.01 and $160,000.00. If the contract's estimated
consideration is between $5,000.01 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. Notwithstanding any other Section to the contrary,
Section 3-601 through 3-621 shall apply to professional services and supplies
as defined by Section 3-601 only if the professional services and supplies
contract is between $5,000.00 and $160,000.00.
(3) Contracts
$5,000.00 or less. If the contract's estimated consideration is $5,000.00
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.
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;
(4) Personal
services contract;
(5) Sole
brand purchase;
(6) Sole source
purchase.
(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)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.
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 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
exists a potential Major emergency or potential Disaster as defined in Section
2-85, Code of Ordinances; or
b. There
exists a potential imminent threat to life, health, property, or essential
operations of the city; or
c. Public
solicitation would result in substantial increased cost for the city; or
d. There is a
construction emergency. Notwithstanding the $160,000.00 limitation in
subsection (a)(1), the Director is authorized to waive solicitation
requirements for construction emergencies if the contract is estimated to cost
less than $1,000,000.00.
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 and Manager of Procurement Services Waivers.
The city manager and the manager of procurement services may waive the
solicitation requirements if the city manager or manager of procurement
services determines, in writing, that:
a.
There exists a potential Major emergency or potential Disaster
as defined in Section 2-85, Code of Ordinances; or
b.
There exists a potential imminent threat to public health, welfare,
safety, substantial economic liability or essential operations or policies of
the city; or
c.
Public solicitation would result in substantial increased cost for the
city; or
d.
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.
(c)
The City Manager, upon a written recommendation from the Manager
of Procurement Services, may waive the solicitation requirements imposed under
this Article if the waiver is in the best interest of the city.
Sec. 3-9. Rejection of bids,
proposals, qualifications.
(a) The city
may reject any and all bids or proposals for any or no reason. If all bids or
proposals have been rejected, the city may do one or more of the following:
(1) Resolicit bids or proposals only from those bidders or
proposers that submitted a bid or proposal pursuant to the original
solicitation; or
(2) Use an expedited bid or proposal submission schedule with or
without re-advertising or issuing any other public notice when the city
determines that the delay from the normal solicitation procedure would not be
in the city's best interests; or
(3) Elect not to execute a contract.
(b) Nothing in
this Article shall be construed as obligating the city to negotiate or execute
any contract if the city shall have determined, at any point in time, that any
project or solicitation should be terminated or cancelled for any or no reason.
Sec. 3-31. Contract award.
(a) General
standard. Except as otherwise provided in this Division 2, all contracts
in which bids or proposals were required shall be awarded to the lowest and
best bidder or best proposer as determined by the city in the city’s sole
discretion, after due opportunity for competition.
(b) Design
Professional Contracts. A qualification based selection shall be made
based upon the statement of qualifications that was required to be submitted
and any supplement thereto as requested by the city. The process for making
the qualification based selection shall be determined by the estimated dollar
value of the design professional contract as follows, provided however that the
failure to utilize the applicable process shall not invalidate any public
improvement procurement or any contract:
(1) Contracts
exceeding $600,000.00. The city shall convene an architect and engineering
selection committee, which committee shall rank the firms from most to least
qualified. The
committee shall be comprised of at least one member designated by the city
manager and two members designated by the director of the contracting
department. The chairperson of the city council committee cognizant of public
improvements may elect to be a member of the committee or may designate a
council member to serve on the committee and if the chairperson so elects, the
director of the contracting department shall designate one less member to the
committee.
(2) Contracts less than $600,000.00. The director of the
contracting department shall rank the firms from most to least qualified.
The city shall thereafter negotiate a contract for the project
with the firm selected as most qualified. If the city is unable to negotiate a
satisfactory contract with the firm selected, negotiations with that firm shall
be terminated. The city shall then undertake negotiations with another of the
qualified firms selected. If there is no agreement with the second firm,
negotiations with such firm shall be terminated. The city shall then undertake
negotiations with the third qualified firm. If the city is unable to negotiate
a contract with any of the selected firms, the city shall reevaluate the
necessary architectural, engineering or land surveying services, including the
scope and reasonable fee requirements, and again conduct a qualification based
selection process. Notwithstanding the foregoing, nothing herein shall
obligate the city to undertake any negotiations if the city shall have
determined to terminate the solicitation for any or no reason.
(c) Design-Build
Contracts. Contracts shall be awarded as is appropriate to the manner in
which the contract was solicited, as follows:
(1) Best value. To
the responsible design-build firm whose proposal is evaluated as providing the
best value to the city based on any factors and method and formula included in
the request for proposals. The city may elect to establish a fixed dollar
budget for the project such that all proposers are operating under the same
monetary limitations.
(2) Qualification-based.
A qualification based selection shall be made based upon the statement
of qualifications that was required to be submitted. The process for making
the qualification based selection shall be determined by the estimated dollar
value of the design-build contract as follows, provided however that the
failure to utilize the applicable process shall not invalidate any public
improvement procurement or any contract:
i. Contracts
exceeding $6,000,000.00. The city shall convene an architect and
engineering selection committee, which committee shall rank the design-builder
from most to least qualified. The committee shall be comprised of one member designated by the
city manager and four members designated by the director of the contracting
department. The chairperson of the city council committee cognizant of public
improvements may elect to be a member of the committee or may designate a
council member to serve on the committee.
ii. Contracts $6,000,000.00 or less. The director of the
contracting department shall rank the design-builder from most to least
qualified.
The city shall thereafter negotiate a contract for the project
with the firm selected as most qualified. If the city is unable to negotiate a
satisfactory contract with the firm selected, negotiations with that firm shall
be terminated. The city shall then undertake negotiations with another of the
qualified firms selected. If there is no agreement with the second firm,
negotiations with such firm shall be terminated. The city shall then undertake
negotiations with the third qualified firm. If the city is unable to negotiate
a contract with any of the selected firms, the city shall reevaluate the scope
of the project and again conduct a qualification based selection process.
Notwithstanding the foregoing, nothing herein shall obligate the city to
undertake any negotiations if the city shall have determined to terminate the
solicitation for any or no reason.
(3) Two-phase. The design-builders shall be ranked from
most to least qualified in such manner as provided in subsection (c)(2) and a
value shall be assigned based upon the rankings. The city shall thereafter evaluate and score any proposal or bid
required to be submitted and shall identify the best proposal or the lowest and
best bid, as applicable. The city shall thereafter negotiate a contract for the
project with the firm selected as having the best proposal or execute a
contract for the project with the firm having the lowest and best bid. If the
city is unable to negotiate a satisfactory contract or execute a contract, the
city shall then proceed to the next best proposal or next lowest and best bid,
and such process shall continue in similar fashion unless the city shall have
determined to terminate the solicitation.
Sec. 3-35. Post solicitation waivers
of solicitation and ordinance requirements.
(a) City manager
waivers. The city manager may waive any requirements imposed by any
solicitation or by any city regulation if the city manager determines, 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 a potential imminent
threat to life, health, property, or essential operations of the city; or
(3) It is in
the best interests of the city to grant the waiver for any other reason
consistent with protecting or enhancing city policies, city funds, city assets,
or any consideration that benefits the city.
(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. 3-39. Bid revisions.
(a) Construction
contracts. If all bids exceed the price estimated by the city prior to bid
opening, the city may offer the lowest and best bidder the option of doing the
work for such estimate, with no changes to scope of the project, provided that
the bid submitted by the lowest and best bidder is not more than five percent
higher than such estimate.
(b) All
other city contracts. The city may negotiate a revised bid with the
apparent lowest and best bidder, including changes in bid requirements, price,
scope, specifications or quantity, if the bid exceeds the appropriation or
relevant budget for that project and the city manager, a director, or the
manager of procurement services determines that resoliciting bids is not in the
city’s best interests.
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 six years or six one year terms and the
consideration does not exceed $1,000,000.00 for a construction contract,
$50,000.00 for a sole source professional services 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 six years or six one year terms
and the estimated consideration does not exceed $1,000,000.00 for construction
contracts, indefinite delivery/indefinite quantity construction contracts,
contracts for goods, supplies, materials, or equipment, and $400,000.00 for
contracts for services other than a sole source professional services
contract, provided however that the $1,000,000.00 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.
(3) In lieu
of obtaining council authorization on a sole source professional services
contract between $50,000.01 and $400,000.00, the city manager may provide written
notice of the intent to execute such an agreement or contract with the cost and
term of such agreement or contract. Such notice shall include the names of the
parties to the proposed contract or agreement, a description of the contract
and the basic purpose and terms of the contract or agreement. No such contract
or agreement shall be executed on behalf of the city without the authorization
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.
(4) 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 a regular report with the city clerk of all term and supply
contracts, indefinite delivery/indefinite quantity construction contracts, sole
source purchase contracts, and professional service contracts awarded without
an ordinance, unless a particularized reason exists for nondisclosure that
shall be reported to Council and any waivers of MBE/WBE goals. Such reports
shall be published on the world wide web.
(d)
Ordinances,
except emergency ordinances, required by this Section and introduced from the
legislative floor and that authorize a contract that exceeds $100,000.00, shall
be referred to the appropriate committee for a public hearing unless a motion
is made by a Councilmember to dispense with the requirement of reading the
ordinance on three separate days, and the motion is adopted upon the
affirmative vote of nine councilmembers.
Sec. 3-43. Contract term.
(a) Maximum Term. No
contract shall be let or amended in such a manner as to exceed six (6) years in
maximum duration or six (6) one year terms except upon authorization of the city
council, provided however that this provision shall not prohibit the city from
entering into one or more successive contracts with the same contractor and for
the same or similar goods, supplies, materials, equipment, or services so long
as such contracts are procured in accordance with Section 3-3 or an exception
thereto. Nothing herein shall be deemed to invalidate or otherwise impair the
term of any contract executed by the city prior to the effective date of this
section.
(b) Transitional term. Notwithstanding
the foregoing, the city manager may extend the maximum term of any contract by
up to two (2) additional years provided the city is soliciting bids or
proposals for the goods, supplies, materials, equipment, or services being
provided and the goods, supplies, materials, equipment, or services are of such
a nature that the city manager determines it is in the best interests of the
city to extend the contract.
Section 2. That
Section 3-91, Escalation of dollar limits is repealed.
Section 3. That
all contracts entered into by the city prior to the effective date of this
ordinance shall continue in full force and effect and shall be carried to
completion in accordance with the provisions of those ordinances in effect as
of the date upon which such contracts became effective. Contract renewals for
contracts that are executed prior to the effective date of this ordinance may
be executed according to the provisions of the ordinances in effect at the time
of the original contract or under the provisions of this ordinance.
Section 4.
That any contract solicitation or award having commenced prior to the effective
date of this ordinance or otherwise pending or under consideration by the city
council prior to the effective date of this ordinance shall remain unaffected
and may be acted upon and disposed of as if they had originated and been
introduced under the provisions of this ordinance.
Section 5. That
this ordinance shall have an effective date of May 1, 2018.
__________________________________________________
Approved as to form and legality:
_______________________________
Jim Brady
Assistant City Attorney