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HomeMy WebLinkAboutReso 1992-16657 RESOLUTION NO. 16657 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING PROPOSED COUNCIL POLICY ON CONSULTANT AND OTHER SERVICES WHEREAS, at the July 23, 1991 Council meeting, Council requested a report on the City's use of consultants and service contracts; and WHEREAS, during Council discussion, it was determined that a Council subcommittee be established to address the issue of consultants and service contractors more in depth; and WHEREAS, the Council subcommittee included Councilmembers Leonard Moore and Shirley Grasser Hotton; and WHEREAS, the subcommittee has met with staff and is proposing the approval of revisions to the Municipal Code, the establishment of a new Council policy, and some modifications in City procedures for determining the need for consultants, consultant monitoring and hiring practices. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby adopt the proposed Council Policy as set forth in Attachment C, attached hereto and incorporated herein by reference as if set forth in full. Presented by Appr as to/folm by ring ~~ Bruce M. Boogaa Budget Manager City At orne Resolution No. 16657 Page 5 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 9th day of June, 1992, by the following vote: YES: Councilmembers: Grasser Horton, Malcolm, Moore, Rindone, Nader NOES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None Tim Nader, Mayor ATTEST: Beverl~'~. Authelet, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoin9 Resolution No. 16657 was duly passed, approved, and adopted by the City Council held on the 9th day of June, 1992. Executed this 9th day of June, 1992. Beverly ~. Authe~et, City Clerk COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: CONSULTANT OR OTHER SERVICES POLICY EFFECTIVE NUMBER DATE PAGE 102-05 06-09-92 I OF 2 ADOPTED BY: Resolution No. 16657 [ DATED: 06-09-92 BAOCGROUND The City may from time to time require the sentices of an outside consultant or other service provider to provide a cost-effective supplement to existing City staff and/or obtain expertise not available within city staff. The general philosophy is that periodic high citizen demand and heavy workloads do not necessarily justify increasing permanent staff to meet periodic demand. Council and City Management should use forethought, planning, and good judgement to determine the optimum staffing level with the appropriate, cost-effective complement of outside consultants or other service providers. PURPOSE The puzpose of this policy is to establish a standard approach to determining the need for consultants and other service providers and to ensure that when a need is determined that the best service provider is selected at a reasonable cost and within a reasonable time frame. This policy shall be followed in implementing the contracting procedures in Municipal Code sections 2.56.170 and 2.56.220 et seq. POLICY The City Manager shall follow the policy of careful consideration and structured review prior to initiating any contract for consulting or other services. The Council is primarily concerned with six aspects of the consultant/service hiring, use and monitoring. First, that a cost comparison be completed for each request to use outside services to compare the cost of the contract services to the equivalent cost for in house staff. Second, that pre-qualification lists be established for those services which are likely to be used frequently during any given fiscal year. Third, that the process of advertising and outreach for consultants/service providers be expanded to generate the highest number of qualified respondents and to locate and encourage potential bidders who have the potential to stimulate the local Chula Vista economy. Fourth, that in all cases possible a 10% retention be included in contracts for services which will be retained by the City until final acceptance of the services. Fifth, that the Council receive regular notification from the City Manager on contracts which, if approved, would place the total payments to that senrice prorider in excess of $25,000 during the most recent twelve month period. Sixth, and finally, that the hourly compensation rate for former City employees hired on a contractual basis subsequent to termination with the City shall be limited for the first year to a maximum rate equal to salary and benefits at the time of termination. After the first year, all requests in excess of the first year's maximum rate must be brought before City Council for approval. IMP~NG PRO CR-nURES The City Manager will implement an administrative procedure covering the following areas: 1. Cost Comparison Evaluations During the annual budget review process each Deparm~enes continuing and proposed use of outside services to accomplish required work shall be evaluated based on a standard cost comparison COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: CONSULTANT OR OTHER SERVICES POLICY EFFECTIVE NUMBER DATE PAGE 102-05 06-09-92 2 OF 2 ADOPTED BY: Resolution No. 16657 [ DATED: 06-09-92 formula when the contract services are expected to exceed $5,000 during the fiscal year. The resulting calculations shall be reviewed by the City Manager or his/her designee prior to beginning the contracting process. 2. Pre-Qualification Lists At the beginning of each fiscal year, the City Manager shall determine the need and frequency for outside services which cannot be met by City staff. Those services which will be required on a more regular basis shall be recommended to be filled by creating a list of qualified providers at the beginning of the year from which to fill city wide fiscal year needs. 3. Expanded Advertising and Outreach Department Heads, in conjunction with Purchasing, shall access all appropriate forms of media when advertising for consultant or other sentices with an anticipated cost in excess of $10,000, in order to obtain the highest number of qualified respondents. In soliciting bids or proposals, staff should be cognizant of locating and encouraging potential bidders who have the potential to stimulate the local Chula Vista economy. 4. Contract Retention of 10% Department Heads and/or Purchasing Agent shall attempt to negotiate a 10% retention clause to be included in all consultant and other service contracts with an anticipated cost in excess of $10,000. The 10% of the contract amount will be retained by the City until final acceptance of the services. 5. Council Notification The City Manager shall notify City Council when any contract recommended for approval, regardless of cost, will result in total payments exceeding $25,000 to one service provider during the most recent twelve month period. 6. Former Employees - Consultant Compensation Limit During the first year after termination with the City, any employee who is hired back on a contract basis shall be compensated at a maximum hourly rate equal to the salary and benefits level at time of termination. After the first year, all requests to contract with a former City employee at an hourly rate in excess of the employee's salary and benefit rate at time of termination should be brought before City Council for approval. Included in the Agenda Statement should be the compensation recommended, as well as the rate of compensation of this former employee at the point of separation from City employment. Included in the report should be discussion of changes in status of this employee since termination. This may include additional training or education received, changes in the labor and economic market and any administrative overhead or unusual cost which may be included in the proposed wages. MEMORANDUM January 11, 1993 TO : All Executive and Middle Managers FROM : Dawn Herring, Budget Manage~ SUBJECT : Consultant Administrative Guideline Attached is the Administrative Guideline prepared for implementation of the Consultant Policy approved by Council. The goal of this guideline is to establish a working document to guide your departments through the process of obtaining the services of a contractor or consultant. If you have any questions or suggestions, please feel free to contact me. cc: John D. Goss, City Manager Sid W. Morris, Assistant City Manager Jim Thomson, Deputy City Manager George Krempl, Deputy City Manager City of Chula Vim Adminiltrative Guideline SERVICE PROVID ERS Page I ADMINISTRATIVE GUIDELINE Purpose: To establish procecluma end guidellnea to Implement the Council Policy and the municipal code on ute of eonauitent~ end other earvicar providere Authorizing Pollclea: Municipal code 2.56, Ordinance 2517, Council Policy 102-05 When is it appropriate to use Consultants ot other Service Providere: it is the Intent of the City Council that the use of censuitants in addition to city staff be kept to a minimum. It is also clear that there are times when it may be appropriate to obtain outside assistance. The gcel of this guideline is to assist departments In making s determination of need and provide the steps to implement a contract wlth a service provider. In the event we ere continuing to use e consultant or other co~ictor to provide services of an ongoing nature, those needs should be closely roexamined by the Department and a recommendation brought forward during the budget process or to the Menager'a office in the event of extreme crisis. In general there are three different reasons when it may be appropriate to hire an outside service provider: 1, When Existing Sift dces not have the required expertise or equipment 2. Work Product required within ehort time frame which cannot be met by existing staff 3. It Is more cost effective to have work completed by an outside service provider City of Chula Vista Administrative Guideline SERVICE PROVIDERS Page 2 I. re: i r_RMINATI(}N OF NEED Responsible Process Department Determine need Department Complete Cost Comparison Worksheets (Pages 1 - 4) If contract for more than S5,000 Department Present Cost comparison to Revenue or Budget Manager for Review and approval prior to forwarding to City Manager Department Forward Memo to City Manager Via Deputy end/or Assistant. Memo to include service requested, Justification (sea #1-3 below), end copy of cost comparison worksheet. 1. When Existing Staft does not have the required exDertlae or eoulDment Why doesn~ staff have this expertise? What would If take to get them trained. If we do not plan to train or develop any in house staff in this area ~ not If equipment Is the issue, would it be more cost effective for the City to buy the needed equipment? 2. Work Product rerluired within short time frame which cannot be met by axistint; staff Who la placing the time frame requirement on us. Why is staff unable to accomplish the required work within this time frame. Could staff be reassigned to meet the needed time frame? 3. It la more cost effective to have work comDIsted by an outside service orovlder Con it be cleady demonstrated (via a cost comparison worksheet) that it la cheaper for e levica prorider to perform the necessary work. Why can't staff provide this service st s cheaper cost, Manager Determine ff request should be: 1. Approved by Manager 2. Refered to Budget Process 3. Information Item sent to Council 4. Approved by Council City of Chula Vim Admin;aLzative Guideline SERVICE PROVIDERS - Page 3 II. ADVERTISEMENT Contracts estimate to cost In excess of $10,o0o am required to be advertised. If the proposed contract Is estimated to be over $10,000 the notice of Invitation to bid or RFP 8hould be advertised In a Journal of respective professional societies end newspaper of appropriate circulation. The Dual la to reach ea bruad · base of epplluants (including minorities and local applicants) sa poaslbla. The purchasing Agent should be contacted to obtain the most current listing of ell service providere currently registered end on file ms desiring tc be included in any selection process. In soliciting bids or proposals, staff should be cognizant of locating and encouraging potential bidders who have the potential to stimulate the local Chula Vim economy. All notices should encourage service providers to submit statements of qualification and performance data to the purchasing agent annually whether they submit a bid or not. IlL I,.: ,. P_RS OF IN!~REST Th~ Purchr¶ing Agent shell be responsible for maintaining all letters of interest from cDnsuhants, contractors or other service providers. The lists maintained in Purchasing shell be the only ones used during the bidding or contracting process. Should any city staff be contacted by · consultant, contractor or other service provider the call or material should be forwarded to the Purchasing Agent. This policy does not preclude · Department from maintaining their own files as long me · copy has been forwarded to Purchasing. IV. CONiHACT RETENTION OF 10%. Department Heeds end/or the Purchasing Agent shall attempt to negotiate · 10% mention clause to be Included In ell consultant or other service co.~,.cts which ere anticipated to cost In excess of $10,000. This mention should be ~,~ined until we are reedy for final acceptance of the set/joel provided. City of Chub Vim Administrative Guideline SERNqCE PROVIDERS Page 4 V, COUNCIL NOTIRCATION The CIty Manager Is required to notify the City Council each time s co.~,.ct is recommended for approval which will result in the tolal payments to one firm, company of service provlder to exceed $25,000 during the most recent 12 month pednd. This policy applies even when the contract amount does not require Council approval. It is recommended that you obtain information from Finance on the amount paid to the firm for the current fiscal year to date, and also 8how the amount paid for the priof fiscal year (Other departments my also being using the same firm, Council wants to know the total). In Cam when an Agends Statement Is not required this Information can be provided to Council in an Intormatiou Report. VI. FORMER EMPLOYEES During the first year after terminetlon with the City, any employee who Is hired beck on e contractual bases shall be limited In compensation to a maximum hourly rate equal to their salary end beneffis at the time of termination. After the first year, any request to co.:..ct with a former City employee at an hourly rate in excess of the employee'e salary and benefit rate st time of termination must be brought before Council for approval. The Agende Statement requesting this approval should Include: Recommended compensation Former Rate of compensation (es City employee) Changes In status o; employee since termination Additional T-aining or EduCation received Changes in labof and economic market Administrative overhead Included in compensation Any other unusual cost which my be included In compensation Vii. COST COMPARISON WORKSHEr_ i ~ Any contract recommended for approval In excess of rkS,O00 Is subject to a cost comparison evaluation between the cost of the contact and a projection of the cost ff the work were to be oemplsted by City staff. The attached oost comperieen worksheet was developed by the Revenue Manager and Includes s listing of questions about the types of Mrvice required and then a cost compedcon using the attached full colt recovery formulas. These forms must be filled out as soon aea determination has been made to requm consultant or other outside earvines. Follow procedure outlined in Section I - DetermlnaUon of Need. City of Chu~a V~ata Admlnimtlve Guideline ~ERVICE PROVIDERS Page 5 VIII. ~:: ;CIION COlIlk:: i r_ES Responsibility:. DiI~r b,~.d Heed If contract is over $10,000 but less than $25,000 the selection committee must be the Depmbnent Heed or Dedgnee and two (2) ormoreetaffmemberk Reality:. Cly Maltage If contract is over $25,000 the CIty Manager shall appoint · Selection committee of three or more qustffied persons. The committee my include 8taft as well me any other qualified persons. C. AUGMENTING USTS Selection committees have the option of augmenting any list of potential bidders with en additional recruitment for applicants ff they feel the list is not appropriate or too few potential applicants have applied. A. CONTRACT NEGOTIATION The responsible Department Head shall attempt to negotiate · contract with the firm ranked number 1 by the Selection committee. The contract shall be negotiated at · price determined to be fair and reaSOnable to the City. In general the agreement shall define the conditions of the co,.~,.ct scope, work plan and schedule, costs, fee, method of payment, duration, Insurance, and indemnification. As e rule follow the guidelines established by City Attorney. B, AWARD OF CONTBACTS All O0.baCtl for letvices for $10,000 or Jell may be awarded by the Purchasing Agent. ~ the contract Is greater than $10,000 but less thin $16,000 the contract may be lwaffied by ~e Purchasing Agent after compliance with above leleclion committee requirements. If the estimated Co:'.b'a. et M in excess of $16,000 but lees than 125,000 the conb'act may be awarded by the Purchaeing Agent after compliance with the Selection commitlSe procedures and with the approval of the City Manager. Contracts ~a excess of $25,000 shall be awarded by the City Council. FEtherdet~~~fthese~x~cedum~c~nbef~und~~theMun~d~xdC~~eSec:~km2.~~'22~~nd2~56.23~~ City of Chula Vim Administrative Guideline ~ PROVIDERS Page 6 GOAL: Todelmmlnelnedvencetho~emwhk~menlidlaadtobeueedlrequenOy d~tngthefecelyeer. AnyeerviceidenbTxdeselrequmthtghneedeheHbe list eliminating the need issue en RFP each lima the ea~k:e is needed. Example: Appraisal Services, Survey Services Process Determination of services needed in coming fiscal year which may be appropriate for use of s pre qualification list, During July of each year DOTS group shall hold a brainstorming session on the types of services which will be needed to be contracted out duriqg the fiscal year. These my be pad of CIP projects or part of Planning, Engineering or Community Development projects. Appoint a sub committee of appropriate dept reps for each service Identified. Subcommittee shall also include a Purchasing/Ficence Rap, and Manager's staff rap (includes Budget Staff) Pre-Quallficetion Sub Committee shall follow the guidelines for s request for propoMI process. This subcommittee shell evaluate the brainstormed list of co.~ict services and determine those which ere projected to be used most frequently during the year. The group should follow the Purchasing guidelines for en RFP process to establish a list of qualified candidates which may be drown from throughout the fiscal year without going back out with e RFP each time the earvice Is needed. City of Chula Vista Admlnlab'ative Guideline 8ERVICEPIIOVIDERS Page 7 X]. AGENDA STA1T, MENT GUIDEUNES When preparing on Agenda Statement for Council approval of any consultant or other service provlder contract that exceeds $25,000, remember that Council will be concerns.1 about why can't we do this with our own staff end why does It cost 80 much. 'The following &re lesues which Should be addressed in your agentis statement: 1. The three questions listed in Section I Determination of Need (page 2) must be thoroughly ecewered in your Agenda Statement. Them questions will answer the question why ere we proposing doing this in the first place. 2. The second issue to include is how you solicited end selected ~e consultant or service provider you did. This includes; how did you advertise; did you do anything special to encourage local or minority end women owned businesses to submit prepoasis or bids; end what selection process was used. 3. Is the person you ere recommending to hire a former CIty employee. ff so discuss the requirement is section VI - Former Employees. 4. The cost comparison worksheet you completed ahoL~ld be summarized in your Agenda Statement. Especially you should include the final figures whlc,, clearly show that It la more cost effective to use this consultant. 5. If you used a selection committee you my elao went to discuss who was on the selection committee, what the selection criteria were, how many applicants there were and which ones were interviewed by the selection committee, end why the one you ere recommending is clearly better or more cost effective than the rest. 6.Indicate the total amount of payments made to the contractor by the City during the current and previous fiscal years, so Indicated In Section V - Council Notification. Sections: 2..56.010 ~ 2.56.070 Formalcomnaaadbidpmcakrt-Requir~when. 2.5&OSO Focal cmtr, ct End bid !mx=duaqqotke :-.,~ng bids. 256.110 Potmalcootraaandbidpam:stm~..Bidopm~n~, 2.56,140 Formal connect and bid procedtue-R~jectinn of bids when. 2.56,150 !forms! contract and bid procedure-Tie bids. 2.56.160 Formal contrma and bid ~onnnce bond. 2.S6A70 Open market lmxedure-Bidding not required when. 2.56,210 Requisitions for purcbas~-AplMm~ ruquired. 2.%.250 Supplies, materials and equipment no longer used4)isposilioa la3xelure. 2.56~.60 Sale or cesuiu unusable city marshls-Pmcedur~ 2.56280 Ptuchasing agenr-Store~om and warehouse cmm-ol autority. 2.56.010 F.s~ablished-Purpose. , Pursuant to Section I 110 of ~he Charier, there is established a cenualized purchasing system for city deparunen~s, offices and agencies, in order to establish procedures for the purchase of services, supplies and equipment, to secure for the cit7 services, supplies and equipment at the lowest pouible cos~ commer/stLrate with quality needed, to exercise positive financial control over purchases, to dearly define authority for the purchasing function, and to assure the quality of purchases. (0 rd. 2517 §1, 1992; Drd. 1197 §1 (parc), 1969; prior code §2.501). The djreaor of finance shall appoint, in .acardance with Seaion .~7 and subjea e~ the civ~ se, ice provisions of the Charur, and the prior approval of the dW manuSer, · purchuinZ aZe~ who shall be in the unda~jaed service as provided in Setion 500 of the city charmr, and such deputies as my be necessary. The purchasing agent shall be the head of the purchasing division of the finance department and conducc a centralized purchasing system and shall have the. power, and it shall be his duty, to purchase or 177 0t 9/92) contract for all supplies, materials. equipment and conugnial services nettied by any and all deparunents of the city in the manner provided for herein. The pwdmsing agent shall have the authority to: A. Negotiate, purchase and obtain supplies, contractual Mrvices and equipment used by the city in accordance with city and stare law and such roles and regulations as are prescribed by the director of finance subject to the review of the city manager or by the city counc~; C. Discoura~e unifo~m bidding and endeavor to obain as fu~~ and open ~~mpetiti~~ as p~asib~e on a~~ purr. hues and sales; D. Prepare and tecom,~end to abe director of finance rules and ngulations Zaverni~_* imrdase of supplies, setvices and equipment for abe city and .,s~md~mrs thereto as mcassa~., E. Keep informed of current developments in abe Acid of ptuchuing, prices, market eonditiom and producu, and secure for abe city abe benefits of research done in abe field of purchasing by other governmental jurisdictions, national technical societies, armde associsuo'ns having national recognition. and by private businesses and orgsnizations; F. Prescribe and maintain such forms as are reasonably necessary for the operation of abe purchuing system and other z~des and regulations; G. Prepare and adopt a standard purchuing nomenclature for city departments and suppliers; I-L Prepare, adopt and maintain · vendors' catalog file. Said catalog shall be filed according to materials and shall contain descriptions of vendors' COmrnQ4fities, prices and Exploit the possibilities of buying 'in bulk' so as to take Axll advantage of discounts, and ·st·blip:: written policies for inventory management in size of purchases; J. Recor~rnend~he~-ansferofsur~~usorunusedsupp~esandequi~mentbetweendepartmem~asneedeC~ and abe sale of all supplies and equipment which cannot be used by any deparunent or which have become unsuitable for city use and abe scrapping or surveying of uusalable surplus K. ~tercise propriety review over all purchases and make such recommdmdnr~om to the director of finance as shall seem in his clisc~tion to be appropriate. The~urchuinga~ent~withtheapprova~oft~ecitTcounci~bydu~yadoptedordinan~r~emme4~ by abe direct~r of ~nance and abe city mana~er~ may authorize a depa~~m~nt or ~i~ce to purd~se m~pp~ies auaborizationshel~becarriedou~incomp~iancewiththeprocedurasemb~bhedbyabischapterandmasuch forms as shall be detarml,sed by the purc~ lg(~. prior code Ot 9/g2) 378 ( All city deparm~ents and offices shall file with the purchasing agent detailed requisitions or estates of their requirements in supplies, services and equipment in such manner, at such times and for such future pe~ods as the purchasin~ ·gent shall prescribe. COrd. 1197 §1 Cpan), 1969; prior code §2.504). The purchasing a~ent shalJ examine each requisition and estimate and shall have the authority to ~vise it as [o quanrity0 quality, or es~mated cos~; provided however, ~hat · change in quality wiJl not vary substantially from u~e mmdards of the using depasmxent or office; and provided further, that the using deparl~ent head is consulted. (Ord. 1197 §1 (pan)° 1969; prior code ~2.505). ~xcept in cases of emergency, or if excepted by the city manager under a duly adopted administrative regulation and through the use of prescribed forms, all purchases shall be made by purchase order issued by the purchasing agent after authorization of the finance officer, certifying: A, That there is to the credit of each using deps_~ment concerned a sufficient unencumbered appropriate balance in excess of all unpaid obligations to defray the amount of such order; B, That such order is provided for in the budget of the using deparnnent or has been approved by the city coLmcll by resolution; C. That in the case of the purchase of capital equipment and assets or eerv~ces, if not provided for in the budget, that the same have been first approved by the city council by resolution. (Ord. 2517 §3, 1992; Ord. 1197 §1 Cpa~), 1969; prior code §2,506). 2.56.070 Formal contract and bid procedut~Required senen. All supplies, services and equipment, exclusive of contracts referred to in Section 1009 of the Charter relating to public works or except where the city council, by resolution. expressed in its official minutes, determines that competitive bidding is impractical or impossible or except as otherwise provided herein, when the estimated cost thereof shall exceed twenty-five thousand dollars, shall be purchased by formal written contract from the lowest respons~le bidder submitting ~he best bid, after due notice inviting bids. All sales of personal property which has become obsolete and unusable, when the estimated value shall exceed twenty-five thousand dollars, shall be sold by formal nmlrac~ and bid procedure m the highest respons~le bidder after due notice inviting proposals. (Ord. 2369 §1, 19g0; Ord. 1977 §1, 1982; Ord. 1197 §1 (parr), 1969; prior code ~2.507 (part). 2,56.0~0 Potmslcomractandbidptocethne-Nolkehnitingbids. Notice inviting bids shall include · general description of the article or sexyice and details on bond requirements and shall be published by the purchasing agent at least once in a newspaper of genera] circulation in the city at least ten days before the last day set for the receipt of bids as designated in the notice, In the event a newspaper of general circulation within the city is unable to publish such notice for 179 (R 9/92) any reason, the p~,chasing agent ~ post such notice in at least three public places in the city designated as places for posting public notices. (On1. 1197 61 (pro't), 1969;, prior code _e9 r,07(1)). The purchasin~ agent s!~ also solicit sealed bids born ~ll respo~le ptuspect~ mappliers who have requested that their names be added to · *bidders' J~ which the pubsin8 agent shall toaintain, by sendingthemacopyofmchnewepaperno~ceorsuchothernodceasw~lecquaintthemwiththepro~ ~O~O~tiS that ~/imfi~!f in f.h~-l~' ud ol'dinl~y hll~led by ~ trlde Zrot/p to which the jl~itifiom ere sent. (O rd, 1197 §~ (pta)0 1969; prior code The purchasing agent my require a bidders' mcurizy in an emoum equal In mn percent o( the bid either in cub, certified or cashiers check, or surety bond approved by the ciZy auorney. in the event a bidders' security is required, no bid shall be considered unless the z~red mcuriry is submitted therewith. All bidders' security is re~ndable except in the me of a successhi bidder who shall forfeit his mcufity i/ he fa~ls to execute a conu'aa within ten days ~er notice of award has bee~ m~iled or given to him or to otherwise comply with the requirements to complete the nunsaction. (OrcL 2197 §1 (pm~, 1969; prior code ~.507(3)). 2.56.110 Formal ainU'act and bid p~id Sealed bids shah be submitted to the purchasing agent,' who shah open them in public at the time and place s~ated in the public notices. A tabulation of all bids received shall be avu~able for public inspection in the office of the purchasing agent for a period of not lass than The purchasing agent may delegate his rasponsib~itias hereunder to rasponsz~le assistants and deputies. COrd. 1197 §1 (part), 1969; prior cede §2-507(4)). 2.56.120 Formal contract and bid procedureCompilation of bids and ~-fier, t. Following the opening of bids, the purchasing agent shall compile all Of the bids and subhilt them to the city manager, together with · recommendation as to which bid he consides best, taking into consideration the recm~n~endation of the deparanent bead i~.~lved, the amount of money bid, compliance wiu~ specifications and raspons~ility of bidder. in deremining the responsfb~i~ of the bidde:, the purchuin~ agent w~l be guided by. bm not lindted to. a consideration o( the ~llowinZ hcnn: A. The experience of the eiry in dealing wkh the low bidde~, B. ~ experience of other governmental agencbs known m the pUztbasing eZent Jn their previous ~mmction with the low bidde~, C. Knowledge of~he clu~li~and~mess~theproduczc~eredbydmiowbidder, r,~rr-,sdsred by~ D. Optionstom~.vamazasforceatinuinZlxa'dmemtbemmebidprke, fndsoeedrcumsmnce wherepriceinaexsesareezpeaedorbavebeemapefiencedhtbelmst. 9/92) 180 'Fbe city manager shall forward the compilation of bids and his recommendation with respect to an ( ·ward to the city council; provided however, that the purchasing ·gent may reject any or all bids or the bid for any one or more commodities or contractual services included in the proposed contract if he determines that the public interest wil] be served thereby. (OrcL 2517 ~4, 1992; Ord. 1197 §1 (pa~), 1969; prior code ~2.507C5)). 2.56.130 Per~:.~ contract and bid procmtu~--Ccm:ract awarding authority. The city council may make an award of conlract to the lowest respons~le bidder submitting the best bid in all respects. COrd. 1197 §1 (part), 1969; prior code ~2.507(6)). 256.140 Fm~-~ contrac~ and bid !roeedure-Rejeetion of blds when. The city council may reject any bids, and may authorize the readventing of bids, or in the alternative, may authorize the purchase or services pursuant to the open market procedure set forth herein, when either of the following circulnstances are found to exist: A. That the supplies or services may be purchased at less cost in the open market; B. That the services or supplies are urgenr2y required for the preservation of ]i/e, health or property or that the public interest could be best served by using the open market procedure. COrd. 1197 §1 (parr), 1969; prior code §2.507C7)). 2.56.150 Formal conuact and bid procedure-Tie bids. In the event two or more bids are received which are for the same total amount or u~it price and in all other respects are equal, the contract shall be awarded to a local bidder. In the event, however, that such tie bids are all from vendors either wholly inside or all outside of the city, then the conZract shaft be awarded by clraw~g lots in public or by following the procedure designated for rejection of bids herein at the discretion of the city council. COrd. 1197 §1 (parr), 1969; prior code §2.507(83). 2.56.160 Formal contract end bid procedure-Pnfore,~,~e boncL The purchasing agent shall have authority to require · performance bend in such amount as he shall find reasonably necessary to protect the best interests of the city. If a performance bond b required, the form and amount of the bond shall be desa'ibed in the notice inviting bids. {O rd. 1197 §1 (part), 1969; prior code §2-507[9)). Purchases of supplies. setvim and equipment of an estimated value in the amount of twenty-five thousand dollars or less may be made 107 the pup-h-,ing agent in the open market without obsaving the formal bidding procedure p~ in Sections 2.56.070 through 2.56.160. Pot such contracts in excess of sizteen thousend, but for twenty-five thousand dollars or less, the purchuin~ agent shall obtzin the City Managers approval. However, jnfor~a! bidding shall be required, and whenever practicable, be based on at least three bids end shall be awarded ~o the lowest ~'ble biddes 181 (R 9/92) submh~ing in eli respeas the bes~ bid. ~e p~ q~t ~ ~ a ~ ~ ~ ~ ~ ~m ~ ~ b~ ~b~ ~ c~n ~ ~ ~ ~-~ ~ ~ ~ ~ m public B. ~o~: h ~ O/~e ~o~ ~cu, ~e ~ ~t ~ ~ ~ ~e ~enu of ~ bid~g: 1. ~~t~mo~tf~e~~b~~~ ~ ~e c~ m ~ obU~ ~ ~y me ~o~ 3. ~ ~e m~ ~ ~d b ~ ~ m w ~ ~le ~ ~e ~, mt~ or ~m~ ~y ~ ~d nd ~ p~ b ride ~m ~e m~ mo~t of ~e p~ d~ not m~ ~ ~ ~; sw~ O/bid. In case O/an emerZenc~ which requires immediate purchase of supplies, materhis, equipment or 'contractual seryices, the ci~ manager may authorize the purchasinZ ~ent ~o secure in the open market at the lowest ob~nable price any supplies, materials, equipment or con~ruau~l sen;ices, reaL, dies· of the &mount of the expenditure; pFo~ided however, that a ~ explanation of the circum~nces of such &mesZency shall be entered irl the minutes of the counc~ and shall be open ~o public inspection. (Oral. 2517 ~6, 1992; Oral. 3197 §l (par~), 3969; prior code §2.509)). In cue O/acru~ &merZency.. and win the prior consent o[ the purchuinZ ~enr, shy usinK depmamenr m~y ~ directly any supplies. mmter~s or equipment when the esztmmmd cosz et-,reo_f shmli aceed five hundred do!l·, whose inanedial· procurement is esmaUhl w preve~ de~ in the work d the usinZ department which mmy ~fl~ea the life, be,,lth or convenience O/ ,.~-,-~,. The bud o/suds usjnf delmune~t shall send zo the purchuinz qent · m~uisifion end · cop~ af the deftvaT record, ~ ~ · ~ wrinm~ezphnm~onoftheci~cumsunces~fth~m~r~enC%w~ic~s~bef~ed~ie~u~c~s~nzqen~ss · permenenr and pubtic record o/the purchsse. The psm:buinZ qenc droll, ~ rides sad rqulmions, procure the procedm~ uader which such eraerr·acT parch·ms rosy be rotale; !m~ded furdm'. th~ in dt, pamatntmaypm, chastiift-tiysuchsuppliHwiththtt~nmutof~~apntmfmmtdiatt procurenentbem~i~lrotheneedsendconduaoftheworkdubeusinSdepemnmL 11Mimddmcb min~deP~me~sha~lsendt~thePurchasin~qen~requisliim2~nd~c~P~dthede~v~7Wd~rm~e~er wit~a f'ull wrinen explanafion ofthe circumsmnces. (Ord. 1197Jl (pm~0 1969; prior code J2.510)). 9/92) 182 Nothing herein contained shall lhnit the authority of the director of civil defense and disaster to make emergency purchases and take such other emergency steps as are or may be authorized by ordinance of the city council, (Ord. 1197 §~ (part), 19~; prior code §2.~11)). 2.5~.210 l~f~'P~l~ The requisitions for all purchases must be subscribed to by the lsur, hasing s~ent and the department bud, or by the ru~nce officer, as provided in section 2.56.060 or their duly authorized desi~nee or repr--~.ntatives. The duty of the finance officer shall be to s~rm the ·vailability of f~nds as provided in Section 2.56.060. Provided further, in the absence of or inability of the purehating a~ent to act, his duly authorized designee shall perform the duties of the purchasing s~ent under this section. (Ord. ~517 §7, 1992; Ord. 1197 §1 (part), 1969; prior cede §2.512)). 2_~6.~.0 Exce~ti~n~Se~e~ti~n~far~hite~uiral~en~ineering~environmenud~sndsurveyin~andc~nsmieti~n lsmjec~ management professional services, p~fessioaal consultant servke~ Exemption. 1. Pursuant to Chula Vista City Charter .~ection l0l l and as requi~d by Government Code Sectlons 4525, et. seq. with regard to architectural, engineering, environmental, land surveying and construction project management professional services, all services provided to the City by contract are exempt from the competitive bidding requirements of Sections 2.56.070 herein. ' 2. Notwithstanding the above stated exemption from the competitive bidding requirement, the purchasing ·gent may require competitive bidding when the services required are more of a technical nature or involve litfie professional judgment and the purchasing agent determines that requiring bids would be in the public interest. B. Definitions. For purposes of this Chapter, the following terms have the following meanings: 1. *Architectural, engineering, environmental, and land surveying services* includes those professional services of an architectural, engineering, environmental, or land surveying nature as well as incidental services that mereben of these professions and those in their employ may logically or justifiably perform. 2. 'Consn'uction project menagemenr' means those services provided by · licensed architect, registered engineer, or licensed generel contractor which meet the mluirements of Government Code Section 4529.5 for management and supervision of work performed on state construction projects. S. 'F, nvironmen~ sevices' mesm those senices performed in connection with projea development c. General Procedures. Any deparanent head desiring to enter into · corm-act for outside service whose estimated cost exceeds $5,000 shall first analyze the cost eaectivenees of havin~ the proposed service completed in-house versus the cost for outside services. All contracts for service shall be negotiated ou the basis of demonstrated coml~,tence and qualifications for the services mluired, and at fair and reasonable fees. Contracts for sel'vices for $10,000 or less may be awarded by the Purchasing Agent pursuant to Section 2.56.170 B.4. If the estlmsted test of such services are in excess of $10,000 but 183 for Sl6,000 dollan or less, the conu'act my be mnrded by the Purchuing Agent, ~fter compliance with the procedm"e therefor specified hereafter. If for in excess of S16,000 but for $2~,000 dollart or kss, the conxnct may be awarded by the Purehasin2 A~ent, after nsmpliance with the procedure therefor sex fon~ hereafter, and with the approval of the Ci~ Mana~. !f the es,~-~ed cusz of such services exceeds $2S,000 dollars, it shall be awarded by the Cip/Cotmcfl, after compliance ~ the procedures speci~ed henafter. C~nn-aru for envinmmental sen~cs, reSanilm of mount, shall be negotiated by the Environmental Review Cooniinator in ~cconhnce with the proceduru in Sections 2.56.220-240 and .~dom 6.5.2 and 6.6 of the Envireome~a/Review Procedures° and awarded by (Ord. 25~7 ~8, 1092~ Ord. 2369 ~q (part~, 1990~ Ord. 23~0 ~1, 1989; Ord. 182] ~1, 1978; Ord. ~197 §~ (p~, 1969~ prior code J2.5~3~. A. !~gistrafion and No~ice. 2. Public announcement of all projecu of an estimated eost in excess of $20,000 z~luiring architectural, engineering, environmenntl, land surveying, eonsn'uction project management, or other sen'ices shall be made by the Cipy through notice to the rspective professiontl societies and by publication in a newspaper of appropriate circulation. The notice shall invite se~ice providets to submit letten of interest for specific projects. In analyzing work required for the ~oming year, deparnnent heads shall be roqulred to categorize services in t~ms of t~e and size of project so as to ma~in~.ize potential participation by small business enterprises. 2. In addition, said notice shtll encourage service provides to submit statements of qualificatious : _ - and performance data annually for regisnation and refernee purposes. 3.Statements of qualification and letters of interest shall be kept on file in the Pm-crasing Division and periodjcall.t updated. 4. Annu~ythecip~Managers~reviewt3~Pes~fsa~vicesrequlredinthef~H~wing~sca~yearand determine for which tyl>es of services pre-qua]ification lists would be appropz~ate. B. ,Selertion Committee. 1. For projects where fees for selvices are ~mated to be in excess of $2~,000, the responsible department head or dasignee and two or more stall menbets shall perform the duties of the ~election t-~,,,,Ir~e. If fees ate stimated to be $~,000 ~ men, the City Manager shall appoint a SeleaionComm~teeofthreestmorequallf~dpen4ms. 2- When a proposed project is ini~ated, the Seleaion potential senke pm~den. However, lfa pre-queurrari,,n list was lrepan~In acaxdan~wtt A.4. above, the depamnenthead shaH atmnpttont~otimaca~raawiitheMnkepro~ider ranked No. I m the pre~,-.r~'e~jo,~ {P, 9/92) 184 the finns based upon criteria established in advance by the City, including, but not limited the cost comparison between service prorider Lnd city staff. A fist containing the vanklng information w~] be sent to the respons~le department head. 4. The respons~le deparnnent head shall negotiate a contract with the firm 1-1nked No. 1 by the Selection Comnfinee at a price determined to be fair ~nd reasonable to the City. The agreement shah define the conditions of the contract scope, work plan and schedule, costs, fee, method of payment, duration, insurance, and indemnification. 5. ff the deparnnent head is unable to negotiate a satisfactory conumct with the first ranked finn: negorlarlons shs~l be formally terminated. 6. The deparanenr head shall then undertake negotiations wich the second nmked firm. This process shall continue until a satisfactory contract is negotiated. 7. If the list of qualified firms is exhausted without a contract being negotiated, the Selection Committee shall choose additional firms and the process shall continue until a satisfactory contract is negotiated. 8. Small businesses, as defined by the State Director of General Services, shall be extended maximum participation in the process. C. Award of Concract. ]. All awazds for contracts negotiated pursuant to this section shall be made in eceordance with Section 2.56.220. (Ord. 2517 §9, 19~2; Ord. 2369 §4 (pan3, 19~0; Ord. 1891 §1 (part). 1980; Ord. 1197 §1 (parr), ]969; prior cede §2.514). 2.56~40 F. xception-Prob'bitions. A. In the selection and award of consultant contracts pursuant to this exception, ~1 unlawful activity, including but not limited to, rebates, ~ckbacks, or other unlawful consideration is prohibited. B. No city officer or employee shall be a member of a Selection Committee or otheraise participate in the selection process when they have a relationship with a person or business entity seeking a contract which would constitute a conflict of interest under Government Code Section 87100. (Ord. 2369, ~4. (Ord. 2369 .~4 (pan), 199U; Ord. 1197 §1 Coan~, 1969; prior code ~..515). General Procedures. All using depanmems sludl submi~ to the purchasing qent mr ouch times and in such form as he shah prescribe, reports showing stocks of ~LI supplies, nazerils tad equipment which are no longer used or which have become obsolete, worn out or upp~ 'the purrbasing agent may Iransfer such stock to enothe~ or other departments, which have need for and can m it. The purchasing agent, with the approval of the city manager, shall also have the power to sell all supplies, materials and equipment which have been unsu~able for public use, or to exchange for, or Irade in the same on new supplies, materials and equipment. Any such sale, exchange or tnde-in 185 (R 9/92) shall be made to the highest respons~le bidder, in accordance with the appficable procedures subfished in tactions 2.56.070 duough 2.56.160 or Section 2.56.370 bereo~ provided further, that the pardmainz agent may transfer such supplies, materials and equipment when the estimated amount involved b less than five thousand dollars to approved civic or social organizations with the approval of the city council, upon the recommendation of the city manager in those cases where it is deemed by the city council that such a disposition of property would best serve public interests. in the case of~cr~~~rsurveyitemshavingn~es~matedorap~ralsedvalue~ndwhichhaven~tbeendesiredby anYcivic orsocial erganizatinn, the purcbms~gagenrmaydisposedsurhhe,,lnmmymannerhe dee--, apprepriate, ka, ping full a~mls d such disposition. it is further ~,~,,~.id~d that such surplus 2~6.170may be ~ dby the p~ qcot by negotintinn af~er bid~ing m~,ments have b~n followed and such surplus mateial has not b~n sold. B. Spechl Procedure, for Dispo,ifion of Library Idatei~. The ehy librarian ~ submit to the pust~inS agent in such form as he g~l presa-rM, a, po~ ~ used, damag~ or ~,~,odod h'brvy materials and indica~ng dispo~i~on thertoL The h}rarian may, at his discrOon, donate such materials to the Friends of the Chula Vista Public Library for such book hies as they my desire, or he may offer such materials to any bona fide charitable or nonprofit institutional organizations serving primarily the interests of the city. If at any time the librarian chooses to dispose of such materials other than as provided herein, he shall follow the general procedures set forth hereinabove. (Ord. 2517 §10, 1992; Ord. 2369}3 (part), 1990; Ord. 2310 §1, 1989; Ord. 1821 §1, 1978; Ord. 1197 §1, 1%9; prior code 2.56.~ Sale of cazah unusable city ~ure. The purchasing agent, with the recommendation of the city manager and approval of the city councfi shall have the power to sefi any real property owned by the city which has been declared by the cry council to have no present or hture use for public purposes following the procedures set forth in either Sections 2.56.070 through 2.56.160 or Secton 2.56.1~0, depencUng upon the estimated or appraised value of said property; provided, however, that in the case of sale or -'~spositon of real property, notice of such sale shall be published at least once in a newspaper of genera] circulation in the city, and a~l bids must be accepted and sales approved by the city council. (Ord 2369 §3 (parr), 1990; Oral. 1892 §1 (pa~), 1980; Or~ 1197 §1 (parr), 1969; prior code §2.514). No provision of ~ chapter shall be interpreted or consh~od to proh~it or prevent the city from purchasing supplies'and equipment by contracts, azrangements and qreem4mts for the cooperative purchasing programs with the state of Cali/ornia, the county of San Diego, the C:hula Vista P. Jemenm~ School Dislrict, the Sweetwater Union ~ School Dizzrk-t or an], othm' imblk or munkil~l carpormion of the state of Cali~orni~ p~vided that the conut~ aZremnent or .,~ng.,~t for such purchases be firs~ approved by the city council. {Ord. 2369 §3 (pas~, 1990; Ord. 1197 ~ (parO0 ~969; prior code which my henafter be established, (Ord. 2369 J3 (pan), 1990;, Gt~d. 1197 Jl (pan), 1969;, psl0r code ~...516). !~11! 9/92) 186 Cost Comparison Worksheet Page 1 of 4 Cost Comparison Worksheets Contract Consultants vs. In-House Staff The following forms are to be used for comparisons of the cost of hiring consultants to the cost of using An-house staff. Please answer the following questions and complete the attached Cost Comparison Worksheet. If you have any questions regarding these forms, please contact the Revenue Manager. GENERAL: 1. Describe the task(s) to be performed. 2. What is the expected duration of the project/task (number of weeks, months, etc.)? 3. How frequently does the City need tc do this project (times per month or year, times per development, etc.)? 4A. Are there .any/n-house employees who could perform the task? What classification Qf employee(s)? 4B. If there are such employees, why wouldn't they be utilized for this project? Cost Comparison Worksheet Page 2 of 4 4C. If such employees would not be used due to workload, what work would be displaced if the task were to be performed in-house? 4D. If workload is a factor, could staff of lower classification be hired to handle extra work so that staff of higher classifica- tion could concentrate their time on the project? Explain. 5. Would the project take more or less time for in-house staff versus a consultant (e.g. consultant has pre-prepared boilerplate materials, software, etc.)? 6. Are there any qualitative reasons to choose either a consultant or in-house staff (e.g. special expertise, knowledge of City operations)? Explain. Cost Comparison Worksheet Page 3 of 4 CONSULTANT AGREEMENT: 6. Base Contract Cost: 7. Applicable rates (including travel, word processing, hourly or daily charges, clerical support, meeting attendance, sales tax, etc.), estimated units per rate, and resultant costs (e.g. five trips from LA @ $50/trip = $250.) TYPE OF CFJ~RGE RATE ESTIMATED UNITS T~AL COST 8. Method and terms of pa~nnent. 10. Performance guarantees (e.g. withholding of payment for unsatisfactory work, termination of contract, etc.) 11. Is consultant licensed to do business in t~he city? Note: If a draft agreement is available, please attach a copy. Cost Comparison Worksheet Page 4 of 4 City Of Chula Vista Consultant Cost Comparison Worksheet CONSULTANT COST XN-HOUSE COST BASE RATES BASE RATES Base Contract Cost Full-Time Equivalent Employee Hourly Wage Consultant Hourly Rate Estimated Actual Hours Estimated Actual Hours Additional Rates (Aggregate Cost) Total Base Cost Total Base Cost FCR BASED COSTS, FCR BASED COSTS Contract Monitoring/ Division Support Costs FCR Factor SUBTOTAL SUBTOTAL (Base + Support Costs) (Base x FCR Factor) OTHER OTHER Supplies, Furniture, Supplies, Furniture, and Equipment and Equipment Business License Tax Other Applicable Tax Other Applicable Tax For monitoring and support costs, see attached worksheet.