Item 10 - Second Reading and Adoption of Ord. 853, Amending Section 3.28.060, 3.28.070, 3.28.110, 3.28.120 and Adding 3.28.150 to Ch 3.28February 15, 2022, Item #101 of 6DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA RE PO RT City of Poway February 15, 2022 Honorable Mayor and Members of the City Council Carrie Gallagher, City Clerk q (858) 668-4535 or cgallagher@poway.org CITY COUNCIL Second Reading and Adoption of Ordinance No. 853 entitled "An Ordinance of the City Council of the City of Poway, California, Amending Sections 3.28.060, 3.28.070, 3.28.110, 3.28.120 and Adding 3.28.150 to Chapter 3.28 (Purchasing) of the Poway Municipal Code." The introduction and first reading of the above-entitled Ordinance was approved at a Regular City Council Meeting on February 1, 2022. There were no speakers. The Ordinance is now presented for second reading and adoption by title only. Vote at first reading: Recommended Action: AYES: NOES: ABSTAINED: ABSENT: DISQUALIFIED: LEONARD, FRANK, GROSCH, MULLIN, VAUS NONE NONE NONE NONE It is recommended that the City Council adopt Ordinance No. 853. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: Informal bidding has lower administrative and supply costs than formal bidding does. As such, staff anticipates minor cost savings from adopting the Act. These cost savings cannot be quantified because they will vary based on the number of projects that qualify for informal bidding. Further, staff also anticipates productivity savings from spending less time managing the formal bid process which will allow staff more time to focus on other projects for the City.
February 15, 2022, Item #10Public Notification: An ordinance summary notice was published in the Poway News Chieftain on Thursday, February 10, 2022. A certified copy of this Ordinance will also be posted in the Office of the City Clerk in accordance with Government Code section 36933. Attachments: A. Ordinance No. 853 Reviewed/ Approved By: 1~~~ Wend~rman Assistant City Manager 2 of6 Reviewed By: Alan Fenstermacher City Attorney City Manager
February 15, 2022, Item #10ATTACHMENT AORDINANCE NO. 853 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, AMENDING SECTIONS 3.28.060, 3.28.070, 3.28.110, 3.28.120 AND ADDING 3.28.150 TO CHAPTER 3.28 (PURCHASING) OF THE POWAY MUNICIPAL CODE WHEREAS, Chapter 3.28 of the Poway Municipal Code ("PMC") establishes procedures for the purchase of supplies, equipment, materials and services; WHEREAS, the City Council of the City of Poway is currently required by the California Public Contract Code to competitively bid all Public Projects in excess of $5,000; WHEREAS, Public Contract Code, Sections 22032, et. seq. set forth informal bidding procedures for public projects over $60,000 and up to $200,000 upon adoption by a public agency of the California Uniform Public Construction Cost Accounting Act ("CUPCCAA") procedures; WHEREAS, the City Council has determined that it is in the best interest of the City of Poway to adopt these procedures for informal bidding of public projects in accordance with CUPCCAA; and WHEREAS, the City seeks additional Ordinance amendments to four sections and seeks to add one section to reflect changes in procedures pursuant to the adoption of CUPCCAA and subsequent changes in purchasing procedures. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES ORDAIN AS FOLLOWS: SECTION 1: The above recitations are true and correct. SECTION 2: The City Council hereby approves this Ordinance and amends Sections 3.28.060, 3.28.070, 3.28110, 3.28.120 and adds Section 3.28.150 to Chapter 3.28 of the PMC as specified below. Removals are indicated with strikethrough and additions are indicated with underline. follows: SECTION 3: Section 3.28.060 of the Poway Municipal Code is hereby amended as 3.28.060 Formal bidding procedures -Public works projects Contracts for public projects shall be administered in the manner provided by Section ~ 22032 et. seq. of the Public Contracts Code as may be amended from time to time. (Ord. 55 § 6, 1992) SECTION 4: Section 3.28.070 of the Poway Municipal Code is hereby amended as follows: 3 of6 3.28.070 Formal bidding procedure. Except as otherwise provided in this chapter, any purchase which exceeds $50,000 $60,000 in value for supplies, services, and equipment, or the amount established by
February 15, 2022, Item #104 of6 Public Contracts Code Section ~ 22032 and succeeding amendments for contracts on public works projects, will be by formal bid. A. Notices inviting sealed bids shall be published at least twice, not less than five days apart, the first time. being 10 days before the date of the opening of the bids, in a newspaper of general circulation in the City, or they shall be posted in at least three places in the City that have been designated by ordinance as the places for posting public notices. B. Notices inviting bids shall include a general description of the articles to be purchased, where bid forms and specifications may be obtained, and the time, date and place for the opening of bids. C. When deemed necessary by the Director of Finance, bidder's security may be prescribed in the public notice inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit the bid security upon the bidder's refusal or failure to execute the contract within 10 days after the notice of award of contract has been mailed. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the City to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If the City Council rejects all bids presented, due to the failure of the successful bidder to execute the contract, and readvertises, the amount of the lowest bidder's security may be used to offset the cost of receiving new bids and the surplus, if any, shall be returned to the lowest bidder. D. Sealed bids together with bidder's security shall be submitted to the Director of Finance or designee. The bid shall be so identified on the envelope. Bids shall be opened in public at the date, time and place stated in the public notices inviting the bids. Any bid received after the scheduled time of the bid opening shall be returned to the bidder unopened. A tabulation of all bids received shall be available for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening. E. At its sole discretion, the City Council may reject any and all bids presented and readvertise for bids pursuant to the procedure prescribed above. In the event no bids are received or, all bids are rejected, the City Council may, in accordance with Public Contracts Code Section 20167, and any amendments thereto, direct the Director of Finance or designee to proceed pursuant to paragraphs relating to open market procedure or competitive negotiations. F. If two or more bids received are for the same total amount or unit price, quality and service being equal, the City Council may at its discretion accept the bid it chooses with or without further negotiations with the tie bidders. G. The City shall have authority to require performance and labor and materials security before entering a contract in such amount as it finds reasonably necessary to protect the best interests of the City. If the City requires security, the form and the amount of the security shall be described in the notice inviting bids. The notice inviting bids may provide that security may be posted in the form of a surety bond, a letter of credit drawn on an institution located in San Diego County and approved by the City Attorney, or a cash deposit. (Ord. 811 § 7, 2017; Ord. 675 § 6, 2008; Ord. 260 §§ 1, 3, 1988; Ord. 188 § 1, 1986; Ord. 55 § 7, 1982)
February 15, 2022, Item #10SECTION 5: Section 3.28.110 of the Poway Municipal Code is hereby amended as follows: 3.28.110 Cooperative purchasing. Purchase of supplies, services and equipment by contract, arrangement and agreement for the cooperative purchasing programs with the State, the County and any other public or municipal corporation of the State may be made by the Director of Finance when the administering agency has made their purchase in a competitive manner. In addition, the city council, city manager, or purchasing agent, at their prescribed authorization levels, may buy directly from a vendor at a price established by another public agency of the State when the other public agency has made its purchase in a competitive manner. (Ord. 811 § 8, 2017; Ord. 675 § 9, 2008; Ord. 260 § 1, 1988; Ord. 55 § 11, 1982) SECTION 6: Section 3.28.120 of the Poway Municipal Code is hereby amended as follows: 3.28.120 Award and execution of contracts. Except in emergency situations, all contracts for supplies, services and equipment in an estimated amount of $50,000 $60,000 or more and public works projects in an estimated amount of $5,000 $60,000 or more shall be awarded by the City Council. Contracts for supplies, services.L aoo equipment and public projects pursuant to the processes set forth in 3.28.150 in an amount less than $50,000 $60,000 shall be executed by the City Manager or the City Manager's designee. No contract shall be approved by the City Council or City Manager unless the expenditure is consistent with the City's adopted budget. (Ord. 675 § 10, 2008; Ord. 55 § 12, 1982) SECTION 7: Article Ill of the Poway Municipal Code is hereby amended to include the addition of 3.28.150 as follows: 3.28.150 Informal bid procedures under the California Uniform Public Construction Cost Accounting Act. 5 of6 A. Informal Bid Procedures. A public works construction project, as defined in Section 20161 of the Public Contract Code may be performed by contract acquired by informal procedures as set forth in Section 22032, et seq., of the Public Contract Code. B. Contractors List. A list of contractors shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission. Such list will be maintained by the public works director or designee. C. Notice Inviting Bids. When a public works construction project is to be performed which is subject to the provisions of this section, a notice inviting informal bids shall be mailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with subsection B. of this section, and to all construction trade journals as specified by the California Uniform Public Construction Cost Accounting Commission in accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the public works director; provided however:
February 15, 2022, Item #101. If there is no list of qualified contractors maintained by the public works director for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the commission. 2. If the producer or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors. D. Award of Contract. Award of contract to the successful responsive, responsible low bidder will be executed in accordance with this chapter. SECTION 8: This Ordinance shall be codified. EFFECTIVE DATE: This Ordinance shall take effect and be in force thirty (30) days after its adoption. CERTIFICATION/PUBLICATION: The City Clerk shall certify the adoption of this Ordinance and cause it or a summary of it, to be published with the names of the City Council members voting for and against the same in the Poway News Chieftain, a newspaper of general circulation in the City of Poway within fifteen (15) days after its adoption and shall post a certified copy of this Ordinance in the Office of the City Clerk in accordance with Government Code § 36933. INTRODUCED AND FIRST READ at a Regular Meeting of the City Council of the City of Poway, California, held the 1st day of February, 2022, and thereafter. PASSED AND ADOPTED at a Regular Meeting of said City Council held the 15th day of February, 2022, by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 6 of6