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HomeMy WebLinkAbout80-9-1977762 ORDINANCE NO. 80-9-1977 AN ORDINANCE CREATING CHAPTER 26, PROCUREMENT, TO THE CODE OF ORDINANCES OF THE' "CITY OF PADUCAH, KENTUCKY follows: BE IT ORDAINED BY THE CITY OF. PADUCAH, KENTUCKY: SECTION 1. ' That Section 261 ""be, and it is hereby, created to read as 26-1. -DEFINITION OF TERMS "A (a) - _Aggregate Amount" Shall mean -the total dollar amount during a fiscal year of items of -a like: nature, function, and use the need -for which can reasonably,..be .determi.ned at the 'beginning of the fiscal year. Items the need' for which could not reason= ably be established in advance or which were unavailable because of a failure of delivery, need not be included in the aggregate amount. (b) "Chief Executive Officer" - Shall mean' the City Manager. (c) "Construction" - Shall mean the process of building, altering, re- pairing, or improving a public structure or building, or other public improvements of any kind to any public real property. It does not include the routine operation, routine repair, or routine maintenance of existing structures, buildings, or real property. (d) - "Contract" - Shall meanall types of local public agency agreements, including grants and orders, for the purchase or disposal of sup- plies, services, construction or any other item. It includes awards and notices of award; contracts of a fixed-price, cost, cost -plus -a -fixed fee, or incentive type; contracts providing for the issuance of job or task orders; leases; letter contracts; and purchase orders. It also includes supplemental agreements with respect to any of the foregoing. It does not include labor con- tracts with employees. (e) "Cooperative Purchasing" - Shall mean purchasing conducted by, or on behalf of, more than one (1) public purchasing unit, or by a public purchasing unit with a foreign purchasing activity. (f) "Debarment" - Shall mean the disqualification of a person to receive invitations for bids or requests for proposals, or the award of a contract by the local public agency, for a specified period of time. 763 (g) "Established Catalog Price" - Shall mean the price included in the most current catalog, price list, schedule, or other form that: (1) Is regularly maintained by the manufacturer or vendor of an item, and (2) Is either published or otherwise available for inspection by customers, and (3) States prices at which sales are currently or were last made to a significant number of buyers constituting the general buying public for that item. (h) "Evaluated Bid Price" - Shall mean the dollar amount of a bid after bid price adjustments are made pursuant to objective measureable criteria, set forth in the invitation for bids, which affect the economy and effectiveness in the operation or use of the product, such as reliability, maintainability, useful life, residual value and time of delivery, performance, or completion. (i) "Immediate Family" - Shall mean a spouse, children, grandchildren, parents, grandparents, brothers, and sisters, and such other relatives as designated by the local public agency. (j) "Invitation for Bids" - Shall mean all documents, whether attached or incorporated by reference, utilized for soliciting bids in accordance with the procedures set forth in Section 26-4 of this code. (k) "Legislative Body or Governing Board" - Shall mean the Board of Commissioners of the City. (1) "Local Public Purchasing Unit" - Shall refer to the City of Paducah, Kentucky. (m) "May" - Shall mean permissive. However, the words "no person may ..." mean no person is required, authorized, or permitted to do the act prescribed. (n) "Negotiation" - Shall mean contracting by either of the methods set forth in Sections 26-15 or 26-21 of this Code. (o) "Noncompetitive Negotiations" - Shall mean informal negotiation with one or more vendors, contractors, or individuals without advertise- ment or notice. (p) "Objective Measurable Criteria" - Shall mean sufficient information in the invitation to bid as to weight and method of evaluation so that the evaluation may be determined with reasonable mathematical certainty. Criteria which are otherwise subjective such as taste and appearance may be established when appropriate. 764 (q) "Person" - Shall mean any business, individual, union, committee, club, or other organization or group of individuals. (r) "Procurement" - Shall mean the purchasing, buying, renting, leasing, or otherwise obtaining any supplies, services, or construction. It also includes all functions that pertain to the obtaining of any public procurement, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration. (s) "Request for Proposals" - Shall mean all documents, whether attached or incorporated by reference, utilized for soliciting pro- posals in accordance with the procedures set forth in Section 26-15 of this code. (t) "Responsible Bidder or Offeror" - Shall mean a person who has the capability in all respects to perform fully the contract requirements and the integrity and reliability which will assure good faith per- formance. (u) "Responsive Bidder" - Shall mean a person who has submitted a bid under Section 26-4 of this code which conforms in all material respects to the invitation for bids, so that all bidders may stand on equal footing with respect to the method and timeliness of sub- mission and as to the substance of any resulting contract. (v) "Service" - Shall mean the rendering, by a contractor, of its time and effort rather than the furnishing of a specific end product other than reports which are merely incidental to the required performance of service. It does not include labor contracts with employees. (w) "Shall" - Shall mean imperative. (x) "Specifications" - Shall mean any description of a physical or functional characteristic of a supply, services or demonstration item. It may include a description of any requirement for inspecting, testing or preparing a supply, service or construction item for delivery. (y) "Supplemental Agreement" - Shall mean any contract modification which is accomplished by the mutual action of the parties. (z) "Suspension" - Shall mean the disqualification of any person to receive invitations for bids or request for proposals, or to be awarded a contract by a local public agency for a temporary period, pending the completion of an investigation and any legal proceedings that may ensue. (aa) "Supplies" - Shall mean all property, including but not limited to Leases, real property, -printing and insurance, except land or a permanent interest in land - SECTION 2?. y That Section °26-2 'be, and it -i's hereby, created to read as follows: fol lows: 26=2. RESPONSIBILITY`A=NO 1JELEGATION Of AUTHORITY (a.) The -City Manager is responsible to the Board of Commissioners for the administration of all procurement functions of the City. (b) The City Manager may delegate -Ito any City -employee such authority as -may be appropriate and -necessary in a specific area of con- centraton pertaining to the' procurement function. (c)� : No delegation of authority shall ` be made to award any contract in excess of -$2, 500; except for specific, exemptions 'mentioned within th isl-: code . (d) Any delegation of purchasing authority shall be in writing. (e): - No: contract shaR:be awarded for an amount which !exceeds the sum budgeted and appropriated for 'the- procurement by the Board of Com- missions -.-except or until add itiorial furids caW be appropriated or transferred: for`: purchase of such goods or services. (f) The,City Manager shall establish procedures to insure and perform the procurement function as established in this code. (g) A-written°summary ofprocurement activities shall be furnished annually- to - the Boa ard of `Commissi'oner-s. ThIs summary shall be submitted within ninety '(90) days following the close of the fiscal - -year :a:nd. shall :include :all- contracts made through noncompetitive negotiation during such fiscal year and shall contain: (1)- The name of each contractor; and (2)" The amount and- type of `each contract; and all determinations and findings required to be made .by sprovisions of this -section: (h)" Reports, .:required by this. code shall be -retained -for a period of five-(5):year's; and. shall be -made available for public inspection and copying upon reasonable request. SECTION: ­3::i~ 7i1at Section 26-3 be, .and: it -is hereby, created to read as 16-3.' WRITTEN -PROCUREMENT bETERMINATiONS Every determination- by ani`employee or official of the City engaged in or responsible 'for `the performance of any procurement activity or function, 765 766 and constituting a final procurement action; or which is required by this code, shall-, be; made in -writing, when -the. contract exceeds $2,500. Each determination shall be based--on-"written find:i:ngsthat support the determination- and -shall;-;be sig-ned--by,-the, -employee .Mak'ing-,the: determi- nation and shall be submitted to the City Manager for his approval. :-Any' such determination. -shall 'rem -air, -in the-offi-oal contract file. SECTION -4. That Section 16-4 be, -and it is -is hereby, created to read as follows: - - - -26-4.. COMPETITIVE SEALED BIDDING (a) All- contracts nor -,purchases =shall ;be awarded by competitive sealed bidding, except- as otherwise-.providedl: in this -code. (b) ..All sealed bids- shall be -advertised not less -than seven (7) nor more than twenty -,one -(21) days prior to the date set for opening. (c) Advertisements shall be entered in the newspaper'.- with the largest ,-ci-rcu-lation within the jurisdiction of the: City:. , -,tol The advertisement for bids? -may also be placed in other- publications when, in the judgment of the°city Manager; such advertisements would -best serve the --interest of the City: of Paducah. (e) If its -is determined during the advertising period that additional time shall be allowed for the'preparation of• Wds, the bid opening date may be extended by: (1) Placing a notice specifying the revised bid opening date in the-- local- newspaper -with the -largest circulation. The revised bid., opening date shat l -b -not less than seven (7) nor more than twenty=one-(21) days after': the_ appearance of the legal notice; or, (2) Issue an addendum to the invitation for bids. Such addendum must -be- in -writing, must -:be mailed or._.delivered to all holders of ;the- invitation forbids, and must"be-acknowIedged on the form of proposal by each b.iddbe submitting a bid. (f) Extensions of the; bid. opening date may, be permitted when: (1) Changes are made in specifications after ;advertisement; or (2) One or more bidders notify the�City Manager`s office of discrepancies, errors,' or areas requiring"clarification in the specifications; or (3) Specifications -require -design work on the part of --bidders, and when z -unforeseen - conditions make -completion � of bid preparations - prior to the bid dead.iine impossible; or follows: (4) Strikes, disaster, or other uncontrollable factors prevent bidders from acquiring information necessary for bid pre- paration; or (5) Other reasons as may be determined by the City Manager. (g) An invitation for bids may be rescinded when: (1) Conditions leading to the issuance of an invitation for bids change sufficiently to make the proposed purchase un- necessary. (2) Funds for the proposed purchase become unavailable. (3) It is apparent no bids will be received because; the item or service is unavailable, bid prices will exceed the funds available for the item, and when major revisions in speci- fications are necessary to insure bids received will be responsive and responsible. (4) It is determined by the City Manager that rescinding of invitations to bid would be in the best interest of the City. SECTION "5. That Section 26-5 be, and it is hereby, created to read as 26=5. SPECIFICATIONS (a) All specifications used in the 'procurement process shall be designed to provide the maximum practicable competition consistent with the level of quality required. (b) Specifications shall be open and accurate. (c) Design specifications describe how an item is to be built or manu- factured. Performance specifications describe the capabilities of an item. Criteria to measure the ability of the item to be purchased to perform or last may be developed. Either design or performance, or a combination of both can be used when the need for such specifications arise. However, performance specifications are generally preferable when their use is applicable. (d) "Brand name or equivalent" specifications can be used when other types of specifications are inappropriate or unavailable, or when stating "brand names" will significantly enhance the understand- ability of the specifications for prospective bidders. If the above mentioned is used, specifications must: (1) Specify more than one brand name if possible; and (2) Specifically state that an equivalent product may be supplied. The burden of proof for equivalency shall rest with the pro- posing distributor; and 767 768 follows: as follows: follows: (3) Set forth criteria to be met by the product proposed. (e) The City Manager may, when appropriate for an expected pro - curement, establish a Qualified Product List and may use such lists in place of detailed specifications. A bidder may propose to furnish a product not on the Qualified Products Lists if he can demonstrate to the City Manager that the product proposed meets all criteria established for inclusion on the list. SECTION 6. That Section 26-6 be, and it is hereby, created to read as 26-6. USE OF FORMS: Bidders may be required to submit bids on forms provided by the City of Paducah. Bids submitted on other forms may be rejected as non- responsive. SECTION 7. That Section 26-7 be, and it is hereby, created to read 26-7. BID PRICE OR EVALUATED BID PRICE: Bids shall be awarded to the responsible bidder who submits the responsive bid of the lowest bid price, or lowest evaluated bid price. It shall be clearly stated in the invitation for bids whether the contract award shall be made on the basis of lowest bid price, or lowest evaluated bid price. If the award is based on lowest evaluated bid price, the invitation shall include the evaluation criteria to be used along with any formulas pertaining to how the contract shall be awarded. SECTION 8. That Section 26-8 be, and it is hereby, created to read as 26-8. WITHDRAWAL OF BIDS: No bid once submitted may be withdrawn before the time allowed for acceptance in the invitation for bids unless: (a) Bids have not been opened and a written request is received from the bidder more than 24 hours before the date and time set for opening. (b) An error has been made that is obvious on the face of the bid. (c) The bidder can demonstrate from worksheets or other documents that an error was made in preparing the bid document. Any bid withdrawn except under the above circumstances shall require forfeiture of any bond security. The City Manager may establish criteria or waive established informalities under which incomplete bids may be considered if it is in the best interest of the City of Paducah. as follows: as follows: SECTION "9. That Section 26-9 be, and it is hereby, created to read 26-9. OPENING TIME FOR BIDS: An opening time for each bid shall "be stated in any advertisement and invitation for bids. The time set for opening of bids shahs be established by a clock in the office of the City Manager. It is the bidder's responsi- bility to insure .his bid is in the office before the time set for bid open- ings. At the set time; the City Manager shall declare bids to be closed. All bids shall be opened publicly and read aloud when the structure of the invitation for bids permits. The city Manager shall with reasonable promptness, prepare a tabulation` of all .bids received and make such documents -available to the public upon reasonable request. SECTION 10. That Section :26-10 Abe, and it is :hereby, 'created to read 26=40. EVALUATION AND AWARDS: (a) - Immediately-after::bids are opened, the City Manager or his designee shall review all bids for -:compliance with specifications, terms, and conditions. Upon -completion, copies -of all bids received will be sent to the appropriate department head. He in turn -will review each :and, make :a recommendation as- to which bid . shal I be,: selected and forward this information in writing to the City Manager. (b) If in the judgment of -the City Manager or his designee, a -portion of a bid is uncertain or unclear, the bidder -shall be -required to clarify all :such portions which -.,are in question.. Any clarification of this nature shall be sent to the City -Manager's-office in written form. (c) Alternative bids are welcomed and may' be submitted unless 71 specifically excluded -in the invitation --to bi.d:.: Optional or alter- native bids must conforms Ao specifically enumerated -:evaluation criteria: . (d) After reasonable consideration of all -bids received, a contract shall be awarded to the- responsive- and. responsible bidder who submits a bid or alternate bid, which is either the lowest; bid price or the lowest evaluated bid price; as described- in- the invitation for bids. "Reasonable consideration':' is -contingent on the.item being,. evaluated and the time frame shall be adjusted accordingly by the City Manager or the City Commission. _ 769 770 as follows: follows: (e) If the City Manager determines in writing that all bids are un- satisfactory, all bids may be rejected and new bids may be re- quested using the same or different specifications, or competitive negotiations, if'the :requirem:ents of -Section 26-15(d) of this code are satisfied', for the -purchase of the item in question. The basis for 'rejection of all bids and further action shall- be- in writing and placed in the particular bid file in question`. SECTION "11. That Section 26-11 -be, and it is hereby, created to read 26-11. REJECTION OF ' BIDS: The City Manager reserves the right to reject any and ala bids,and to waive technicalities and minor irregularities in bids. Grounds for the rejection include, but are not limited 'to: (a) Failure of a bid to conform to established requirements of an invitation for bids; or (b) Failure to conform to specifications contained in or referred to in any invitation for bids, unless the invitation authorized sub- mission or alternative bids, and the alternative' proposal meets the requirements specified in the invitation for bids; or (c) failure to conform to a rdelivery schedule established in an in- vitation for bids; or (d) Failure of'a bid as determined by the City Manager -to be reason- able in price; or (e) Determination that a bid was submitted by a bidder determined to be not responsible; or (f) Failure to furnish a bid guarantee when such a guarantee is re- quired by an invitation for bids; or (g) Imposition of conditions which would modify -'the terms and con- ditions, of the invitation for bids, or which would limit the bidders liability to the City of Paducah under terms of the contract awarded, on the basis of such invitation for bids; or (h) 'Receipt of any one bid when such occurrence results in a diffi- culty in determining the fair market value of the goods or services to be -purchased, in the opinion of the City Manager. SECTION 12. That Section 26-12 be; and it is hereby, created to read as 26-12. BID CONDITIONS follows: as follows: (a) The City Manager shall adopt and revise as necessary, general con- ditions for bidding. These general conditions shall be applicable to include in, or incorporated by reference in all invitations for bids issued by the City of Paducah. (b) The City Manager may, ,as required by a particular procurement, develop and adopt special bid conditions supplemental to the general bid conditions. (c) Any bidder who submits a bid in response to an invitation for bids shall be deemed to have agreed to comply with all terms, con- ditions, and specifications of such invitation for bids. SECTION 13.. That .Section 26-13 be, and it is hereby, created to read as 26-13. CONTRACTPRICING In all invitations for bids, bids submitted, and contracts awarded (a) Discounts shall not be considered unless stated in the invitation for bids; and (b) In case of a discrepancy in the extension of a price, the unit price shall govern over the total price for all items; and (c) Any award may be made to the lowest aggregate bidder for all items, groups of items, or an individual item basis, whichever is deemed to be in the best interest of the City of Paducah. 'SECTION 14. That Section 26-14 be, and it is hereby, created to read 26=14. INTERESTED BIDDERS LIST (a) The establishment of an Interested Bidders' List for certain goods and services is encouraged and recommended where applicable. Any person, firm or corporation desiring to receive written notice of procurement requirements of the City of Paducah may make application to have his name placed on a bidders' list for the type or kinds of goods or services he wishes to supply or provide. The City Manager may .specify the form to be used and the pro- cedure to be followed by the prospective vendor to make appli- cation for inclusion on the bidders' list. Failure of the City to notify any bidder on the Interested Bidders' List caused by a clerical error,. shall not invalidate any bidding procedure or awarding of any contract, provided proper advertising procedures were followed as specified in Section 26-4 of this code. 771 772 follows: (b) The City Manager may establish a program for vendor prequali- fication. To establish a vendor prequalification system, the City Manager shall solicit from each ~prospective vendor sufficient information to permit evaluation of vendors qualifications in terms of: (1) The ability and capacity to perform on a timely basis under contract for goods or services he wishes to bid on and supply. (2) Good character, integrity, reputation, and experience. (3) Satisfactory performance in"prior dealings with the City of Paducah. (4) Satisfactory performance in dealings with other local govern- ment units, the Commonwealth of Kentucky, and other purchasers. (c) The City Manager may refuse to list any prospective vendor if that vendor does not meet the minimum qualifications established for entry on a bidders' list. It is the responsibility of the vendor to show that he meets established qualifications for entry on the bidders' list to which he seeks to gain entry. The prospective vendor will be promptly no if his application is disapproved and the reasons) for disapproval will be stated. (d) A prospective bidder may appeal the disapproval of his application by written appeal to the Board of Commissioners. The appeal must be filed within fourteen (14) days after the date of the notice of disapproval, and must state the grounds for the appeal with reasonable particularity and must relate directly to the, reason (s) for disapproval of the application. The City Manager may establish the time at which and the conditions under which a vendor whose application has been disapproved may reapply for placement on a bidders' list. (e) A bid may be accepted from a bidder whose name is not on the Interested Bidders' List, provided that the bidder submits all infor- mation required by the City Manager to make 'a determination of the bidder's qualifications prior to the award of a contract. SECTION 15. That Section 26-15 be, and it is hereby, created to read as 26-15. COMPETITIVE NEGOTIATIONS The City may contract_ or purchase through competitive negotiations, upon a written finding that: (a) Specifications cannot be made sufficiently specific to permit award on 773 follows: the basis of the lowest bid price or the lowest evaluated bid price, including, but not limited to, contracts for experimental or develop- ment research work, or highly complex equipment which requires technical discussions, and other nonstandard supplies, services, or construction; or (b) Sealed bidding is inappropriate because the applicable sources and supply are limited, the time and place of performance cannot be determined in advance, the price is regulated by law, or a fixed price contract is not applicable; or (c) The bid prices received through sealed bidding are unresponsive or unreasonable to all or part of the requirements, or are identical or appear to have been the result of collusion; provided each responsive bidder is notified of the intention to negotiate and is given a. reasonable opportunity to negotiate, and the negotiated price is lower than the lowest rejected bid by any responsive bidder; or (d) All bids submitted pursuant to competitive sealed bidding under Section 26-4 of this code result in bid prices in excess of the funds available for the purchase, and the City Manager determines in writing: (1) That there are no additional funds available from any source so as to permit an award to the lowest responsive and responsible bidders; and (2) The best interest of the City will not permit the delay attendant to a re -solicitation under revised specifications or revised quantities under competitive sealed bidding; or (3) After an invitation for bids has been made in accordance with Section 26-4 of this code and no bids have been re- ceived from responsive and responsible bidders. SECTION 16. That Section 26-16 be, and it is hereby, created to read as 26-16.'' ADVERTISEMENT When the City Manager determines in writing that competitive negotiation is needed to carry out a particular procurement, he shall commence by advertisement of a request for written proposals as provided in Section 26-4 of this code. SECTION 17. That Section 26-17 be, and it is hereby, created to read as follows: 774 26-17. REQUEST FOR PROPOSALS A request for proposals shall include: (a) A request by the City for proposals, and (b) A statement of work required, and (c) Desired performance schedule, and (d) Available government furnished property, if any, and (e) Applicable provisions to be included in the contract if awarded, and (f) Criteria that will be used to evaluate proposals received, and (g) Where and how detailed specifications may be obtained, and (h) Required time and place for submission of offers. SECTION 18. That Section 26-18 be, and it is hereby, created to read as follows: 26-18. KEEPING OF PROPOSALS All written proposals received by the City Manager in response to requests for proposals shall be kept secure and unopened until the date and time as follows: set for opening. (a) Proposals not clearly marked as such may be opened for identi- fication purposes, appropriately identified and resealed until the time for opening proposals; and (b) Proposals for competitive negotiations shall not be subject to public inspection until negotiations between the City and all offerors have been concluded and a contract awarded. SECTION 19. That Section 26-19 be, and it is hereby, created to read 26-19. EXAMINATION OF PROPOSALS The City Manager or his designated representative shall examine each written proposal received for general conformity with the advertised terms of the procurement and shall: (a) Determine in writing those proposals received for responsible offerors that constitute a reasonable basis for negotiation. Each such offeror will be contacted informally and a meeting will be set up for discussion of the offeror's proposal; and (b) After informal discussions with all offerors, the City Manager will select the best proposal advantageous to the City; and (c) If no acceptable proposals have been accepted after discussions are complete, any or all proposals may be rejected, and in the discretion of" the City Manager, new proposals may be requested on the basis of the same or revised terms, or the procurement follows: 775 may be abandoned. SECTION 20. That -Section 26-20 be, and it is hereby, created to read as 26-20. DISCUSSIONS If discussions pertaining to the revision of the specifications or quantities are held with any potential offeror, all other potential offerors shall be offered an opportunity to take par.-t--in--such discussions. - SECTION 21. That Section 26-21 be; and it is hereby, created to read as follows: 26-21'. NONCOMPETITIVt NEGOTIATIONS The City may contract or purchase through -noncompetitive negotiations only when 'a written determination is made that competition is not feasible, and it is further determined in writing by the City through the office of the City Manager: '(a) An emergency exists which will cause public harm as a result of the delay in competitive procedures; or (b)` There is a single source- within a reasonable geographical area of the goods or services to be procured; or (c) The contract is for a service of a licensed professional, provided, however, that this provision- shall not apply to architects or engineers providing construction management services rather than professional' architect or engineer services; or (d) The contract is for the purchase- of perishable items purchased on a weekly or more frequent basis, such as fruits, vegetables, fish or meat; or- (e) r - (e) Services pursuant to a franchise awarded according to law; or (f)S-ervi-ces, from non' profit agencies, who provide such services for the benefit`�of the citizens of -the City; or (g) Real property or- an thterest in real property; or (h) Goods or services from the Commonwealth of °Kentucky, its political subdivisions, or the Government of the United States; or (i) Goods or services available under terms of a Commonwealth of Kentucky Price Contract established for all state agencies. (j) The contract is` for replacement parts where the need cannot be reasonably anticipated -and stockpiling is- not feasible; or (k) The,'contraet or purchase is- for- expenditures made on authorized trips outside of the boundaries of the City. (I)' The -contract is for group life insurance, group health and accident 776 insurance, group professional liability insurance, workmen's com- . . pensation insurance, and- unemployment insurance; or (m) The contract is for a sale of supplies at reduced prices that will afford a purchase at savings to the City. SECTION. 22...: That, Section- 26-2.2, be., and. it is hereby,: created -to read as follows,:. - 26-22. SMALL.- PURCHASE.. PLAN. (a) The City may . use -small purchase, _procedures for -any contract for which a determination is made that the aggregate amount of the contract does not exceed twenty-five: hundred dollars ($2,..,500). (b) ..Theprocurement of. alt items one thousand -dollars ($1,000)• or less, may, be. delegated by ..the City Manager to each individual -.department head.. Al department -.heads shall keep such purchases within the constraints of the aggregated amount budgeted .each fiscal year, for each .parti_cu-1a.r proc-urement. item. - It will be the responsibility of every depar.tment_.head to. compare quality. and price on all such items and purchase items :according to. which goods or services will be most advantageous, to the City. (c) The city Manager- may delegate the responsibility for- initiating purchases . of items which exceed one: thousand dollars ($1,000), but do • not exceed twenty-five,.hundred .dollars.. ($2, 500) - to each individual department head... The. department- head or a designated person under. -his authority.. will -obtain three (3)- pr -ice estimates for each -item, item, using the same criteria and quality -measurements for all three estimates. The estimates will be either obtained verbally. or in -written form, - whichever w.i.11 serve .the higher best interest of, -the City,. The.department -.head will then select the lowest estimate, or a higher -esti-mate .if,the quality -of -the purchase in question. would -,be ,greatly _enhanced. by accepting the higher estimate. All such purchases shall be -made with the intention of serving -the best interest of the• Ci-ty, .a.nd insuring the quality of the delivery of- all public. services. (d) A memorandum will then; be prepared and..sent- to. the City Manager for his final approval. before- a purchase is made. The memorandum wi-I l • include the following information: .,(I) Description of the -item to be. purchased, and - (2) Name and estimate from each distributor obtained; and ..(3) Name of the distributor.,whi-ch is recommended -by the depart- ment head for the award of the contract; and as follows: follows; (4) A short statement of the reason for the selection of that particular distributor. (e) Procurement requirements shall not be parcelled, split, divided or purchased over a period of time in order to circumvent the dollar limitations for small purchases. SECTION 23. That Section 26-23 be, and it is hereby, created to read 26-23. COOPERATIVE PURCHASING (a) The City is encouraged_ when circumstances permit to enter into an agreement for cooperative purchasing with any other local public agency or the Commonwealth of Kentucky, when common goods or services are required by both units of government. Such cooperative purchasing may include, but is not limited to, joint contracts between public purchasing units and access by local public purchas- _ing units to open-end state public purchasing unit contracts. (1) Nothing in this code shall limit the, City, from selling to, acquiring from, or using any property belonging to another public purchasing unit. (2) The City may enter into an agreement for the joint or com- mon use of warehousing facilities or the lease or common use of capital equipment or facilities with any, other public purchas- ing unit subject to such terms as may be agreed upon between the parties. (b)., The purchase of goods and services from the state of Kentucky's Price Agreement Contract is encouraged, whenever, the purchase of such items from distributors would be advantageous and in. the best interest of the City. SECTION ' 24. That Section 26-24 be, and it is hereby, created to read as '26=24.CONTRACT MODIFICATION AND TERMINATION (a) The City Manager shalt be authorized to provide, by appropriate clauses to contract for, goods or. services of all types, for changes and modifications to such contracts and providing_ for the method or methods of calculating the costs of any decrease, ,increase, or other change in the contract price resulting from such change or modification. 777 778 (b) Any contractor who is determined in writing by the City Manager to be in breach of any of the terms and conditions of a contract may at the direction 'of the City Manager be declared in default and such contract may be terminated for any of the following, but not specifically limited to these provisions: (1) Failure to perform the contract according to its terms, con- ditions, and specifications; or (2) Failure to make delivery within the time specified' or according to a delivery schedule fixed by the contract; or (3) Late payment or non-payment of bills for labor, materials, supplies or equipment furnished in connection with a contract for construction services, or pursue the work under a con- tract for construction services. (c) The City shall be authorized to negotiate termination of all contracts for the procurement of goods or services when the City Manager determines in writing that such termination will be in the best interest of the City. (d) The City reserves the right to inspect the plant or place of business of any manufacturer of goods or services in which a negotiated contract has been awarded or will be awarded. This section will pertain to all contractors and subcontractors alike. The City also reserves the right to audit the records of any contractor or sub- contractor for a period of five (5) years from the date of the last payment, to the contractor or subcontractor, from the City or any of its political subdivisions or franchises. SECTION 25. That Section 26-25 be, and it is hereby, created to read as fol lows: 26-25. SURETIES AND BONDS (a) Bidders' security shall be required for all competitive sealed bid- ding for construction contracts when the price is estimated to exceed twenty-five thousand dollars ($25,00 0) . Bidders' security shall be in the form of a bond provided by a surety company authorized to do business in the Commonwealth or equivalent, or the equivalent in cash in a form satisfactory to the City. (b) Bidders' security shall be in an amount equal to at least five per-, cent (50) of the amount of the bid. When the invitation for bids requires that bidder security be provided, non compliance requires that the bid be rejected, provided however, that the City Manager does not grant an exception which he considers justifiable. (c) When a construction contract is awarded in an amount in excess of twenty-five thousand dollars ($25,000), the following bonds shall be furnished and shall become binding on the parties upon the award of the contract: (1) A performance bond executed by a surety company authorized to do"business in this Commonweal'thl or otherwise equivalent, in an amount equal to one hundred percent (1000) of the con- tract price as it may be increased; and 12) " A payment bond for the protection of all persons supplying labor and materials to the contractor or his subcontractors fol lows: for the performance of the work provided for in the contract. This bond shall be in an amount equal to one hundred percent (1OOo) of the original "contract price. (d) The City reserves the right to require additional bonds and securities when it is determined by the City Manager to serve the best interest of the City. SECTION ` 26. - That Section 26-26 be, and it is hereby, created to read as 26-26. " APPROPRIATIONS (a) The "Uty shall not award a contract for any procurement when the contract price would exceed "the -funds appropriated for the procure - merit by the Board of Commissioners; unless additional funds are authorized by the' Board of Commissioners. (b) If all bids received "in response to an invitation exceed- the amount appropriated for the procurement, and sufficient additional funds are not authorized to permit an award to the lowest responsive and responsible bidder, the City Manager may proceed with competitive negotiations -in accordance with Section 26-15(d) of this code. (c) An invitation for bids or a request for proposals may be "advertised in anticipation of --an appropriation, provided such invitation or request clearly states the funds for the procurement, while anticipated, have not been appropriated. (d) The City Manager may award a contract for the procurement of goods or services for a period that exceeds a fiscal year, -provided the contract permits cancellation without penalty intheevent the funds for the contract are not appropriated for any succeeding year. 779 780 as follows: as follows: as , fol lows: SECTION 27. That Section 26-27 be, and it is hereby, created to read 26-27. VERIFICATION AND PUBLIC AVAILABILITY OF RECORDS (a) Copies of records, specifications, procedures, and -regulations re- lating to purchasing shall be available .to,.the public during normal . business hours upon request and. at a_cost not., to exceed the cost of copying. . (b) The City Manager or, any other .employee of the City shall not dis- close to the public or, -.to a prospective vendor's competitors: (1) Information _furnished in response to a request from the City „ ..Mana_ger for information „necessary to determine a bidder's responsibility; .or, . (2) Information obtained from a prospective- vendor during negotiations which qualifies as confidential technical infor- mation or trade• secrets., and/or the disclosure. of which would constitute a violation of patent rights. or copyrights. SECTION 28. That Section 26-28.. be, and it is hereby, created to read 26-28. GRANT REQUIREMENTS Nothing in these, regulations _shall be construed in such a manner as to relieve the City of the responsibility to comply with -.any -procurement requirements- imposed by an agency, from .which the, City may receive funds, including but not. Limited to state and federal -agencies. SECTION 29. That Section 26-29. be, and it is hereby, created to read 26-29. CONFLICT OF INTEREST It shall -be considered a breach. of ethical standards- for any employee of the City to engage- himself in any procurement activity -directly or in- directly, such as to. the preparing of bids to be submitted, request for proposals,. and matters pertaini.n.g to any contract in which, to his knowledge: . (1) He or any member of his immediate family has a financial interest therein; or ,(2)_ A business or organization in which he.or any member of his immediate family has a financial. interest as an officer, director, trustee, partner, or employee is a . party; or. (3) Any other person, business, or organization with whom he or any member of his immediate family is negotiating or has arrangements concerning prospective employment, is a party. This shall include but not be limited to decisions, approval, disapproval, recommendation, preparation of any part of a purchasing request, in- fluencing the content of any specification or purchase standard, rendering of advice, investigation, auditing, or any other advisory capacity. SECTION 30. That Section 26-30 be, and it is hereby, created to read as follows: 26=36. SURPLUS OR EXCESS PROPERTY as follows: (a) Any property which is to be sold by the City as surplus or excess property will require a written determination which will include the following: (1) Description of the property; and (2) Its intended use at the time of acquisition; and (3) The reason why it is in the best interest of the City to dispose of the item; and (4) The method of disposition to be used. (b) Surplus or excess property may be transferred with or without compensation to another governmental agency, or it may be sold at public auction, or by sealed bids in accordance with which method is deemed most advantageous to the City. (c) The office of the City Manager must approve any and all dispositions of surplus or excess property and the appropriate department head must comply with all requirements for sealed bid procedures as set forth in Section 26-4 of this code which are applicable. SECTION 31. That Section 26-31 be, and it is hereby, created to read 26=31'.' 'EQUAL EMPLOYMENT OPPORTUNITY The City shall include as part of any invitation for bids or request for proposals for goods or services, Equal Employment Opportunity language as may be required by local ordinance, KRS 45.570 - 45.640 and the procurement requirements of any agency from which the City may receive funds . SECTION '32. That Section 26-32 be, and it is hereby, created to read as follows: 2632. DETERMINATION' OF 'PREVAILING' WAGE Pursuant to KRS 337.510, the City shall apply to the Commonwealth of Kentucky, Department of Labor, for a Determination of Prevailing Wage for any contract for construction services. Such determination shall be 781 782 included as part of any contract for construction services and shall be included in any invitation for bids or request for proposals for any pro- curement of construction services. SECTION 33. This ordinance shall be read on two separate days and will be effective upon publication of title and a certified summary thereof. R Ma or Introduced by the Board of Commissioners August 26, 1980 Passed by the Board of Commissioners September 9, 1980 Recorded by Louise McKinney, City Clerk, September 9, 1980 Published by The Paducah Sun September 16, 1980.