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HomeMy WebLinkAbout93-09 ORDINANCE NO. 93-9 ADDING SECTION 3-7 TO THE DANVILLE MUNICIPAL CODE REGULATING THE PURCHASE OF GOODS AND SERVICES THE TOWN COUNCIL FOR THE TOWN OF DANVILLE DOES ORDAIN AS FOLLOWS: SECTION ONE: Section 3-7 is hereby added to the Danville Municipal Code, to read as follows: Section 3-7 Purchasing 3-7.1 PURPOSE. To establish procedures for the purchase of supplies, equipment and services. It is the policy of the Town of Danville to obtain supplies, equipment and services at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases and contracts, and to clearly define authority for the purchasing and contracting function. 3-7.2 DEFINITIONS. As used in this Ordinance, the following words and phrases have the meanings ascribed to them in this section. a. Contract means a written agreement between the Town and a vendor, including a purchase order issued to a vendor. It is a binding agreement based upon mutual assent of the parties, made for a lawful purpose, between competent parties, in the form required by law and generally supported by consideration. b. Formal Bid or Offer means a bid which must be submitted in a sealed envelope and in conformance with a prescribed format, to be opened at a specific time. c. Informal Bid means an unsealed competitive offer conveyed by letter, telephone, facsimile/telegram, or other means and under conditions different from those required of formal bidding. d. Local Business Enterprise means a business entity with fixed offices or distribution points located within the boundaries of the Town, listed in the business license tax files with a Town of Danville business address and designating, for sales tax purposes, the Town of Danville as the point of sale for retail transactions. 1 e. Purchaser refers to a Town staff member primarily responsible for purchasing any given supplies, equipment or services. f. Professional Services shall mean accounting, appraisal, architectural, auditing, engineering, environment, land surveying, construction management, legal, financial planning, medical or planning services or any service with similarly professional, scientific, expert or highly technical skill. g. Services (contractual) means a) a contract directly engaging the time and effort of a contractor whose primary purpose is to perform identifiable tasks rather than to furnish an end item of supply or b) the rental of equipment, machinery and other personal property. A service contract may be either non-personal or a personal contract. It can also cover services performed by either professional or non-professional personnel, whether on an individual or organizational basis. h. Sole Source Procurement means an award for a commodity or service to the only known capable supplier, occasioned by the unique nature of the requirements, the supplier, or market conditions. i. Supplies shall mean all supplies, materials and equipment. 3-7.3 Authority of The Town Manager. Subject to the availability of funds and the procedures set forth in this ordinance, the Town Manager is hereby authorized to bind the Town, by written contract or purchase order, involving the expenditure not to exceed ten thousand dollars ($10,000) for the purchase of supplies or twenty-five thousand dollars ($25,000) for professional, or contractual services in any one transaction, without advertising or previous specific action by the Town Council, to be furnished to the Town for which funds have been budgeted and appropriated therefor. 3-7.4 Authority of the Town Council. Unless otherwise provided herein all contracts for supplies involving an expenditure of more than ten thousand dollars (> $10,000) and for professional, or contractual services of more than fifty thousand dollars (> $50,000) shall be awarded by the Town Council. Professional, and contractual services expenditures greater than twenty-five thousand and less than or equal to fifty thousand dollars (>$25,000 and <-- $50,000) shall be approved by the Town Council Finance Committee. No contract shall be binding or have any force or effect until signed by the Town Manager. 3-7.5 Professional Services. The Town shall not be restricted to engaging in a competitive bidding procedure when seeking to retain specially trained persons or firms to provide services in connection with financial, economic, accounting, engineering, administrative, or other matters involving specialized expertise or unique skills. In securing professional services, the Town shall utilize a request for proposals procedure, 2 the method and details of which shall be outlined in administrative regulations adopted by the Town. Award of a contract shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. 3-7.6 Competitive Bidding Preference. All purchases of and contracts for supplies, materials, equipment and services shall be based, wherever possible, on competitive bids. However, all bidding may be dispensed with for emergency purchases, or where the goods or services can be obtained from only one source, or when the amount is one thousand dollars or less (< $1,000), 3-7.7 Informal Bid Procedure. For purchases involving over one thousand dollars ($1,000) but not greater than ten thousand dollars ($10,000), purchaser shall make a reasonable effort to obtain competitive bids without the necessity of advertising, but with solicitation by letter, telephone or otherwise. Purchase shall then be made from the lowest responsible bidder. In the event competitive bids are not obtained, purchaser shall document the reason(s). Purchase orders may be used for the purchase of supplies when the total cost does not exceed ten thousand dollars ($10,000) in any one transaction, and in contracting for a combination of services and supplies when the total cost does not exceed ten thousand dollars in one transaction. 3-7.8 Blanket Purchase Order. The purchaser may issue single purchase orders for a term up to a full fiscal year for the receipt of materials, supplies and services under the following conditions: (a) for all routine and recurring maintenance and operating purchases; (b) in instances when only one vendor is available; (c) when bids have been received and awarded for purchases over an extended term not to exceed a fiscal year. 3-7.9 Formal Contract Procedure. Formal written contracts shall be used for all purchases of supplies or services or combination therefor, in excess of ten thousand dollars (>$10,000). The City Attorney will approve the form and legality of all formal written contracts before execution thereof. 3-7.10 Determining The Lowest Responsible Bidder. In determining the responsible bidder, the following shall be considered, in addition to price: (a) price; (b) the quality of supplies offered; (c) the ability, capacity and skill of the bidder to perform the contract or provide the supplies or services required; (d) whether the bidder can perform the contract or provide the supplies or services promptly, or within the time specified, without delay or interference; (e) the sufficiency of the bidder's financial resources and the effect thereof on his/her ability to perform the contract or provide the supplies or services; (f) the character, integrity, reputation, judgement, experience and efficiency of the bidder; (g) the quality of the bidder's performance on previous orders or contracts with the town; (h) litigation involving the bidder on previous orders or contracts with the 3 Town; (i) the previous and existing compliance by the bidder with laws and ordinances relating to the subject of the purchase or contract; (j) the ability of the bidder to provide future maintenance and service where such maintenance and service is desirable; and (k) payment of local sales or use taxes that will accrue to the Town. 3-7.11 Negotiated Purchases And Contracts. Notwithstanding anything in this section to the contrary, the Town Manager or his/her designee may authorize the purchase of technical or specialized supplies or equipment by competitive negotiation when: (a) the supplies, equipment or services, are such, that suitable technical performance specification are not readily available; (b) the Town is not able to develop descriptive specifications; (c) the quality of the supplies and equipment cannot be accurately determined by reference to their specifications alone; and (d) such a method of purchase would be more advantageous to the Town. 3-7.12 Local Business/Merchants Preference. The policy of the Town shall be to purchase materials, supplies, equipment and services from vendors whose principal place of business is located within the Town limits. To accomplish this policy, when pricing, delivery time, product life and performance maintenance requirements and other cost considerations are relatively equal, the Town shall purchase from Danville merchants. 3-7.14 Protest Procedure. After the award of any bid, anyone who submitted a bid who wishes to challenge the bid procedure, the bids, or the award of the bid shall file a written protest within ten (10) days of the award of the bid with the City Attorney, stating the reasons for the challenge. The City Attorney shall review the protest and provide the protestor with a written reply regarding the protest. Following the City Attorney's decision, the protestor shall have ten (10) days to file an appeal with the Town Manager, Finance Committee or Town Council (which ever has the authority to award the bid). The appropriate authority shall review the protest and provide the protestor with a written reply regarding the protest. Failure to file a timely initial written protest or appeal waives any such challenge to the bid procedure, the bids or the award of the bid. 3-7.15 Exemption From Formal Contract Procedure. Purchases of goods or services which can be obtained from only one source may be made without advertising and after approval by the Town Council. Town Council may authorize purchase of supplies, equipment and services without complying with the above procedures when in the opinion of the Council, compliance with the procedures is not in the best interest of the Town. The Town Manager may authorize emergency purchases of supplies, equipment or services. Emergency purchases are those required to prevent the immediate interruption or cessation of necessary Town services or to safeguard life, property, or the public health and welfare. 4 3-7.16 Sole Source Procurement. In those cases where the procurement of any product or service is obtainable only from a single or sole source, the purchaser, upon approval of the Town Council or Manager (depending on contract price), shall negotiate, with the purveyor of such product or service, fair and equitable terms. Purchases from regulated public utilities may be made pursuant to applicable tariff without regard to this section. 3-7.17 Change Orders. Purchaser may approve any changes within an approved contingency. Any change orders to purchases for which there is no contingency, or for purchases where the approved contingency will be exceeded, must be approved by the Town Manager. Any time an appropriation limit will be exceeded for any given purchase, Town Council approval is required to approve an additional appropriation. 3-7.18 Splitting Orders To Avoid Competitive Bidding Prohibited. It is unlawful to split or separate into smaller orders the purchase of supplies, materiMs, equipment or services for the purpose of evading the competitive bidding provisions of this section. 3-7.19 Cooperative PurchasingAgreements With Other Agencies. Nothing contained in this section shall prohibit the participation by the Town in any voluntary cooperative purchasing agreement or program entered into between the Town and the State, County or other municipalities or agencies. Town staff is empowered and authorized to act under the provisions of this section to procure for the Town supplies and equipment in conjunction with such voluntary cooperative purchasing agreements or programs which may be available and advantageous to the Town. All formal contract and bidding procedures to be followed in such cases shall be those specifically enumerated in the voluntary cooperative purchasing agreement or program. 3-7.20 Recycled Products. All existing and future specifications including, but not limited to paper products, shall incorporate a requirement for the use of recycled products, and products designed to be recycled, to the maximum extent practicable, subject to an alternative showing that either the performance of the product or the quality of the services will be jeopardized or that the product or services will negatively impact health, safety, operational efficiency, or cost effectiveness. In addition, the Town will cooperate to the greatest extent feasible with neighboring City and County governments in an effort to develop a comprehensive, consistent and effective procurement effort intended to stimulate the market for recycled products, reusable products, and products designed to be recycled. 3-7.21 Null And Void. Any purchase or contract made contrary to the provisions of this article shall be null and void. 5 / SECTION TWO. PUBLICATION. The City Clerk shall either (a) have this Ordinance published within 15 days in a newspaper of general circulation, or (b) have a summary of this Ordinance published twice in a newspaper of general circulation once five days before its adoption and again within 15 days after adoption. SECTION THREE. SEVERABILITY. In the event that any of the provisions of this Ordinance are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptire legislation, the validity and enforceability of the remaining provisions or portions thereof, shall not be affected thereby. SECTION FOUR. CODIFICATION. SECTION ONE shall be codified in the Danville Municipal Code;, Sections Two through Four shall not be codified in the Danville Municipal Code. The foregoing Ordinance was first read and introduced at a meeting of the Town Council of the Town of Danville on October 5, 1995, and was adopted and ordered published by the Danville Town Council at a Regular Meeting on October 19, 1995 by the following vote: AYES: Doyle., Greenberg, Lane, Shimansky NOES: NONE ABSTAIN: NONE ABSENT: Ritchey K. APPROVED AS TO FORM: ATTEST A~ITY ATTORNEY CITY CLERK 6