HomeMy WebLinkAbout07.A- City Attorney 7.A
ORDINANCE (ID # 3741) DOC ID: 3741 B
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Municipal Code
From: Gary D. Saenz M/CC Meeting Date: 03/16/2015
Prepared by: Linda Wynn, (909) 384-
5355
Dept: City Attorney Ward(s): All
Subject:
Ordinance of the Mayor and Common Council of the City of San Bernardino Amending
Sections 3.04.070, 3.04.080, 3.04.085, and 3.04.115 of the San Bernardino Municipal
Code Relating to Purchases. (FIRST READING) (#3741)
Current Business Registration Certificate:
Financial Impact:
It is anticipated that reducing administrative costs and other related expenses pertaining
to the generation, preparation, implementation and monitoring of contracts would
provide significant savings to the City.
Motion: Lay over Ordinance for final adoption.
Synopsis of Previous Council Action:
3/4/15: This item was scheduled to be discussed at the Ways and Means Committee on
this date; however, the meeting was cancelled and the Chairman gave permission for
this item to be sent directly to the Mayor and Common Council for approval.
12/5/88: The Mayor and Common Council approved Ordinance No. MC-646, amending
Sections 3.04.070 and 3.040.080 to increase the Purchasing Agent's authorization
amount to $25,000.
6/2/87: The Mayor and Common Council approved Ordinance No. MC-602, amending
Sections 3.04.070 and 3.040.080 to increase the Purchasing Agent's authorization
amount to $15,000.
7/6/82: The Mayor and Common Council approved Ordinance No. MC-183, amending
Sections 3.04.070 and 3.04.080 to increase the Purchasing Agent's authorization
amount to $10,000.
1/8/80: The Mayor and Common Council approved Ordinance No. 3893, amending
Sections Seven and Eight to increase the Purchasing Agent's authorization amount to
$7,000.
7/23/64: The Mayor and Common Council approved Ordinance No. 2588 providing for
the purchase and sale of supplies, services and equipment. Sections Seven and Eight
of this Ordinance authorized the Purchasing Agent to contract and/or purchase
services, supplies and/or equipment in an amount up to $2,000.
. . .., , . - r I Packet Pg. 472
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3741
Background:
As part of Management Partners' review of current City policies and procedures, and
relying on its experience with other municipalities, a recommendation was made that the
Purchasing Agent's current authorization amount of $25,000 be increased to $50,000.
This amount would reduce and alleviate administrative costs and other related
expenses, thus providing additional savings to the City.
Implementation of the proposed changes will require amendments to Municipal Code
Sections 3.04.070, 3.04.080 and 3.04.085.
A proposed amendment to Section 3.04.115 has been included in the Ordinance only
for the purpose of updating the language from "City Administrator" to "City Manager."
Analysis:
In an effort to generate cost efficiencies and to implement various efficiencies that will
be identified in the Plan of Adjustment, the City Attorney's Office surveyed 13 local cities
(including San Bernardino) to ascertain at what amount Council approval was required
for purchases, contracts, etc. The results ranged from $10,000 upward to $175,000,
with an average being $59,000.
In reviewing historical inflation rates (1989-2014) since the increase was authorized to
$25,000 in December of 1988, the annual rate has increased approximately 3%,
reflecting that December 1988's purchasing power of $25,000 equates to $52,131 in
2015.
The proposed increase correlates with the historical rates of inflation.
City Attorney Review:
Supporting Documents:
Ordinance. MC Amendment re Financial threshold for MCC 3-16-15(DOC)
Proposed Ordinance.Red-line. Amendment re Financial threshold for MCC(PDF)
MCC Financial Threshold History (PDF)
Local Cities Contact Info (PDF)
City of San Bernardino Inflation Cost Estimate (PDF)
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1 ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN y
BERNARDINO AMENDING SECTIONS 3.04.070, 3.04.080, 3.04.085, AND 3.04.115 OF
2 THE SAN BERNARDINO MUNICIPAL CODE RELATING TO PURCHASES.
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4 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 'u'.
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SECTION 1. Section 3.04.070 of the San Bernardino Municipal Code is hereby °
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amended to read as follows: E
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9 "3.04.070 Formal Contract Procedure.
10 Except as otherwise provided in this Chapter, purchases and contracts for supplies,
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12 contract with the lowest possible and best bidder, pursuant to the procedures described in this
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15 A. Notice Inviting Bids. Notice inviting bids shall include a general description of the v
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articles to be purchased, shall state where bid blanks and specifications may be E
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secured, and the time and place for opening bids.
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B. Notice, Publication and Mailing. Notice inviting bids shall be published at least ten Z
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days before the opening of bids in a newspaper of general circulation printed and
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22 The Purchasing Agent may establish and maintain a list of prospective bidders. The E
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23 prospective bidders shall be listed on said list according to the service or product
24 provided as indicated by the prospective bidder. It shall not be the responsibility of v
25 the Purchasing Agent to ensure that the list contains current information in respect
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2 6 to the address, service or product of the prospective bidder. The Purchasing Agent is c
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27 authorized to ail invitations to bid directly to appropriate prospective bidders p
28 appearing on said list and to other prospective bidders.
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1 C. Bidder's Security. Each bid or proposal may be required by the Purchasing Agent to N
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2 be accompanied by a bidder's bond, certified or cashier's check, or cash in an F
amount not more than ten percent of the total bid. The City Manager shall establish U
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standards for determining under what circumstances a bidder's security shall be Or-
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required in order to protect the interests of the City. When deemed necessary by the a
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City Manager, bidder's security may be prescribed in the public notices inviting
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bids. When bid security is required, bidders shall be entitled to return of bid security,
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provided that a successful bidder shall forfeit his bid security upon refusal or failure
8 to execute the contract within ten days after the notice of award has been mailed, r
9 unless and to the extent the City is responsible for the delay. The Common Council
10 may, on refusal or failure of the successful bidder to execute the contract, award it to c
11 the next lowest and best bidder. If the Common Council awards the contract to the
12 next lowest and best bidder, the amount of the lowest bidder's required security
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13 shall be applied by the City to the difference between the low bid and the second
14 lowest bid and the surplus, if any, shall be returned to the lowest bidder.
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D. Bid Opening Procedure. Sealed bids shall be submitted to the Purchasing Agent and
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shall be identified as bids on the envelope. Bids shall be opened in public at the time
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and place stated in the public notices. A record of the bids received shall be N
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available for public inspection after bids have been opened, indicating the amounts r
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bid by the various bidders and the basis for awarding the contract or purchase order _
20 if other than the lowest bidder. Such list shall be available for thirty days after the U.
21 award has been made.
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23 E. Rejection of Bids. At its discretion, the Mayor and Common Council shall have the
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24 power to reject any and all bids presented and readvertise for bids.
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26 F. Award of Contracts. Contracts shall be awarded by the Mayor and Common
27 Council, by resolution, to the lowest and best bidder except as otherwise provided L
herein. a
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2 G. Tie Bids. If two or more bids received are for the same total amount or unit price,
quality and service being equal and if the public interest will not permit the delay of
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readvertising for bids, the Mayor and Common Council may accept the one it
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chooses or accept the lowest bid made by negotiation with the tie bidders at the time
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of the bid opening. _
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H. Performance Bonds. The Mayor and Common Council shall have authority to
8 require a performance bond before executing a contract in such amount as it shall a
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9 find reasonably necessary to protect the best interests of the City. If the Mayor and
10 Common Council require a performance bond, the form and amount of the bond
11 shall be described in the notice inviting bids. o
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13 I. Negotiated Purchases. At the discretion of the City Manager, the Purchasing Agent
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14 may authorize the purchase of technical or specialized supplies and equipment by
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competitive negotiation when such a method of purchase would be more v
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advantageous to the City, and any one of the following conditions exists:
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1. The supplies or equipment are such that suitable technical or performance N
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specifications are not readily available; r
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20 2. The City is not able to develop descriptive specifications; or,
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22 3. The quality of the supplies and equipment cannot be accurately determined -EEE
23 by reference to their specifications alone.
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25 At the completion of such a negotiated purchase a written report thereon
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26 shall be made to the City Manager." _
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1 SECTION 2. Section 3.04.080 of the San Bernardino Municipal Code is hereby N
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2 amended to read as follows:
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4 "3.04.080 Open market procedur e. c
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Purchase of supplies, materials, and equipment of a value in the amount of fifty 4
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thousand dollars or less may be made by the Purchasing Agent in the open market, in
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accordance with the following procedure: °
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8 A. Minimum Number of Bids. Open market purchases shall, wherever possible, be
9 based on at least three bids, and shall be awarded to the lowest and best bidder.
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11 B. Notice Inviting Bids. The Purchasing Agent shall solicit bids by written requests or
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12 by telephone to prospective vendors.
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14 C. Written Bids. Sealed written bids shall be submitted to the Purchasing Agent who
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shall keep a record of all open market orders and bids for the required period of time v
after the submission of bids or the placing of orders. This record while so kept shall ME
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be open to public inspection. a
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D. Open Market Purchases For Which No Bids Are Required. For open market
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purchases not exceeding twenty-five hundred dollars, the Purchasing Agent shall _
20 have the authority to select a specific vendor and place an order without obtaining
21 additional competitive bids."
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23 SECTION 3. Section 3.04.085 of the San Bernardino Municipal Code is hereby
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24 amended to read as follows: v
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26 "3.04.085 Services. c
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A. The Purchasing Agent may contract for services of a value of fifty thousand dollars O
or less in accordance with the following procedure: a
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2 1. Minimum Number of Proposals. Contracts for services shall, whenever
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3 possible, be based on at least three proposals, and shall be awarded to the
4 provider who can best meet the needs of the City. Although cost shall be u
considered by the Purchasing Agent in entering into such contracts, it shall
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not be the sole determining factor.
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2. Request for Proposals (RFP). The Purchasing Agent shall solicit proposals
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by written requests or by telephone to prospective providers.
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10 3. Written Proposals. Sealed written proposals shall be submitted to the
11 Purchasing Agent, who shall keep a record of all such proposals for not less
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12 than 180 days. This record while kept shall be open to public inspection.
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14 4. Contractual Services For Which No Proposals Are Required. For contractual
15 services not exceeding twenty-five hundred dollars in value, the Purchasing c
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Agent shall have the authority to select a specific provider and enter into a 5;
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contract without obtaining additional proposals.
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B. Contractual services with a value in excess of fifty thousand dollars must be
19 approved by the Mayor and Common Council pursuant to Requests for Proposals as
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20 authorized by the Mayor and Common Council. E
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22 C. The provisions of Subsection A above shall not apply to contracts for special E
23 counsel services which are provided for pursuant to Chapter 2.20 of this Code."
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25 SECTION 4. Section 3.04.115 of the San Bernardino Municipal Code is hereby ai
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26 amended to read as follows: _
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"Section 3.04.115 City Manager.
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1 Any duty or responsibility given to the Purchasing Agent by this Chapter may likewise y
2 be performed or fulfilled by the City Manager or his or her designee."
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1 ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN y
BERNARDINO AMENDING SECTIONS 3.04.070, 3.04.080, 3.04.085, AND 3.04.115 OF
2 THE SAN BERNARDINO MUNICIPAL CODE RELATING TO PURCHASES.
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I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and
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Common Council of the City of San Bernardino at a meeting thereof, held
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5 on the day of , 2015, by the following vote, to wit:
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7 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT =
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18 Georgeann Hanna, City Clerk L
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19 The foregoing Ordinance is hereby approved this day of , 2015. c°
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R. Carey Davis, Mayor
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Approved as to form:
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1 ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AMENDING SECTIONS 3.04.070, 3.04.080, 3.04.085, AND
2 3.04.115 OF THE SAN BERNARDINO MUNICIPAL CODE RELATING TO E
3 PURCHASES.
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THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN °
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BERNARDINO DO ORDAIN AS FOLLOWS:
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7 SECTION 1. Section 3.04.070 of the San Bernardino Municipal Code is hereby a
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8 amended to read as follows:
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"3.04.070 Formal Contract Procedure.
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materials and equipment of a value greater than twenty=fikre fifty thousand dollars shall be by a v
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written contract with the lowest possible and best bidder, pursuant to the procedures described c
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in this section. 2
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15 A. Notice Inviting Bids. Notice inviting bids shall include a general description of the
16 articles to be purchased, shall state where bid blanks and specifications may be
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17 secured, and the time and place for opening bids. U-
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19 B. Notice, Publication and Mailing. Notice inviting bids shall be published at least ten E
20 days before the opening of bids in a newspaper of general circulation printed and Q
published in the City.
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The Purchasing Agent may establish and maintain a list of prospective bidders. The
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prospective bidders shall be listed on said list according to the service or product c
24 provided as indicated by the prospective bidder. It shall not be the responsibility of o
I 25 the Purchasing Agent to ensure that the list contains current information in respect o
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26 to the address, service or product of the prospective bidder. The Purchasing Agent is °
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27 authorized to ail invitations to bid directly to appropriate prospective bidders
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28 appearing on said list and to other prospective bidders.
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1 C. Bidder's Security. Each bid or proposal may be required by the Purchasing Agent to
2 be accompanied by a bidder's bond, certified or cashier's check, or cash in an
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3 amount not more than ten percent of the total bid. The City ^,a,,,inis*-at( Manager ow
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shall establish standards for determining under what circumstances a bidder's
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security shall be required in order to protect the interests of the City. When deemed °
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necessary by the City "a.v,inist fat.. Manager, bidder's security may be prescribed
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in the public notices inviting bids. When bid security is required, bidders shall be
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entitled to return of bid security, provided that a successful bidder shall forfeit his a
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8 bid security upon refusal or failure to execute the contract within ten days after the
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9 notice of award has been mailed, unless and to the extent the City is responsible for 0
10 the delay. The Common Council may, on refusal or failure of the successful bidder
11 to execute the contract, award it to the next lowest and best bidder. If the Common
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12 Council awards the contract to the next lowest and best bidder, the amount of the
13 lowest bidder's required security shall be applied by the City to the difference ,a
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between the low bid and the second lowest bid and the surplus, if any, shall be t
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returned to the lowest bidder.
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16 D. Bid Opening Procedure. Sealed bids shall be submitted to the Purchasing Agent and
17 shall be identified as bids on the envelope. Bids shall be opened in public at the time U.
18 and place stated in the public notices. A record of the bids received shall be E
19 available for public inspection after bids have been opened, indicating the amounts
20 bid by the various bidders and the basis for awarding the contract or purchase order Q
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21 if other than the lowest bidder. Such list shall be available for thirty days after the =_
22 award has been made.
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24 E. Rejection of Bids. At its discretion, the Mayor and Common Council shall have the
power to reject any and all bids presented and readvertise for bids.
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F. Award of Contracts. Contracts shall be awarded by the Mayor and Common at
27 Council, by resolution, to the lowest and best bidder except as otherwise provided c
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2 G. Tie Bids. If two or more bids received are for the same total amount or unit price, �
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3 quality and service being equal and if the public interest will not permit the delay of
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readvertising for bids, the Mayor and Common Council may accept the one it c
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chooses or accept the lowest bid made by negotiation with the tie bidders at the time °
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of the bid opening.
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H. Performance Bonds. The Mayor and Common Council shall have authority to Q
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8 require a performance bond before executing a contract in such amount as it shall
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9 find reasonably necessary to protect the best interests of the City. If the Mayor and -a
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10 Common Council require a performance bond, the form and amount of the bond
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11 shall be described in the notice inviting bids.
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I. Negotiated Purchases. At the discretion of the City ^a,, mist fat , Manager, the ,o
Purchasing Agent may authorize the purchase of technical or specialized supplies
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15 and equipment by competitive negotiation when such a method of purchase would
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be more advantageous to the City, and any one of the following conditions exists:
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17 1. The supplies or equipment are such that suitable technical or performance L
18 specifications are not readily available;
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20 2. The City is not able to develop descriptive specifications; or, Q
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22 3. The quality of the supplies and equipment cannot be accurately determined
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by reference to their specifications alone.
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At the completion of such a negotiated purchase a written report thereon
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shall be made to the City Administmt anager." a
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27 SECTION 2. Section 3.04.080 of the San Bernardino Municipal Code is hereby d
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28 amended to read as follows:
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2 "3.04.080 Open market procedure.
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3 Purchase of supplies, materials, and equipment of a value in the amount of twe-nly--five, '
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fifty thousand dollars or less may be made by the Purchasing Agent in the open market, in c
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accordance with the following procedure: °
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A. Minimum Number of Bids. Open market purchases shall, wherever possible, be m
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based on at least three bids, and shall be awarded to the lowest and best bidder. ¢
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9 B. Notice Inviting Bids. The Purchasing Agent shall solicit bids by written requests or o
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12 C. Written Bids. Sealed written bids shall be submitted to the Purchasing Agent who
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after the submission of bids or the placing of orders. This record while so kept shall
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be open to public inspection. s
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D. Open Market Purchases For Which No Bids Are Required. For open market =
17 purchases not exceeding twenty-five hundred dollars, the Purchasing Agent shall L
18 have the authority to select a specific vendor and place an order without obtaining 5
19 additional competitive bids." C
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21 SECTION 3. Section 3.04.085 of the San Bernardino Municipal Code is hereby
22 amended to read as follows:
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"3.04.085 Services.
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A. The Purchasing Agent may contract for services of a value of ate faf y
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thousand dollars or less in accordance with the following procedure: a
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27 1. Minimum Number of Proposals. Contracts for services shall, whenever r
28 possible, be based on at least three proposals, and shall be awarded to the
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1 provider who can best meet the needs of the City. Although cost shall be
2 considered by the Purchasing Agent in entering into such contracts, it shall
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19 C. The provisions of Subsection A above shall not apply to contracts for special
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22 SECTION 4. Section 3.04.115 of the San Bernardino Municipal Code is hereby
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1 ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AMENDING SECTIONS 3.04.070, 3.04.080, 3.04.085, AND 3.04.115 OF
2 THE SAN BERNARDINO MUNICIPAL CODE RELATING TO PURCHASES. U.
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I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and 0-
4 Common Council of the City of San Bernardino at a meeting thereof, held o
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5 on the day of , 2015, by the following vote, to wit:
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7 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT
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Georgeann Hanna, City Clerk
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19 The foregoing Ordinance is hereby approved this day of , 2015. -Ea
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21 R. Carey Davis, Mayor
22 City of San Bernardino aD
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Approved as to form:
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24 Gary D. Saenz, City Attorney
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City of San Bernardino Q
U
RE: Estimation of 1988 dollars in 2015 dollars U
L
O
1988 dollars can be estimated in 2015 through several alternatives. $25,000 is used as the base figure. 0
Shown below are three alternatives:
1. Straight-line appreciation -This method assumes a constant inflationary rate of 3 percent over
the term,with an estimated 2015 value of$55,532
c
2. Engineering New Record Index -This method is based on associating increase in construction c
costs, and is often appropriate to use in the case that primary expenditure of dollars will be for U.
a�
new construction or maintenance of existing assets.The estimated 2015 value is$56,473.
3. U.S. Annual Inflation Rate -This method is based on the annual average for each year of the
c
period considered.The estimated 2015 value is$52,131. o
Year c
d
ENR-Records Index U.S.Annual Inflation Rate E
Appreciation -a
c
1988 3% $25,000 4,519 $25,000 4.08% $25,000 E
1989 3% 25,750 4,615 25,531 4.83% 26,020 Q
1990 3% 26,523 4,732 26,178 5.39% 27,277
1991 3% 27,318 4,835 26,748 4.25% 28,747
1992 3% 28,138 4,985 27,578 3.03% 29,969 "0
L
1993 3% 28,982 5,210 28,823 2.96% 30,877 O
1994 3% 29,851 5,408 29,918 2.61% 31,791
1995 3% 30,747 5,471 30,267 2.81% 32,620 M
1996 3% 31,669 5,620 31,091 2.93% 33,537
d
1997 3% 32,619 5,826 32,231 2.34% 34,520
1998 3% 33,598 5,920 32,751 1.55% 35,328 E
r
1999 3% 34,606 6,059 33,520 2.19% 35,875 j
2000 3% 35,644 6,221 34,416 3.38% 36,661 N
2001 3% 36,713 6,343 35,091 2.83% 37,900 0
U
2002 3% 37,815 6,538 36,170 1.59% 38,972
2003 3% 38,949 6,694 37,033 2.27% 39,592
2004 3% 40,118 7,115 39,362 2.68% 40,491 =
2005 3% 41,321 7,446 41,193 3.39% 41,576 0
2006 3% 42,561 7,751 42,880 3.24% 42,985
L
2007 3% 43,838 7,966 44,069 2.85% 44,378
2008 3% 45,153 8,310 45,973 3.85% 45,643 (D,
2009 3% 46,507 8,570 47,411 -0.34% 47,400 0
2010 3% 47,903 8,802 48,694 1.64% 47,239 N
2011 3% 49,340 9,070 50,177 3.16% 48,014 0
2012 3% 50,820 9,342 51,682 2.07% 49,531 r
2013 3% 52,344 9,622 53,233 1.47% 50,556 U
2014 3% 53,915 9,911 54,830 1.62% 51,299
2015 3% $55,532 10,208 $56,473 2.00% $52,131 E
Sources: UP Estimation ENR Records Bureau of Labor Statistics V
r
Q
Urban Futures, Inc. -2015
Packet Pg. 491