Chapter 3.16
PROCUREMENTS1
Sections:
3.16.020 City Manager’s authority.
3.16.030 Small procurement procedures.
3.16.035 Intermediate procurement procedures.
3.16.040 Advertising for bids.
3.16.060 Exceptions to bidding requirements.
3.16.070 Lowest responsive and responsible bidder.
3.16.080 Local bidder preference.
3.16.090 Requirements mandatory.
3.16.110 Competitive sealed proposals – Negotiated procurement.
3.16.120 Procurement Policy and Procedures Manual.
3.16.010 Purchase procedure.
The City Manager or designee may authorize any department of the City to carry out any of the following:
a. Contract for, purchase or issue purchase authorizations for all supplies, materials, equipment and services for the offices, departments, and agencies of the City;
b. Contract for the construction, repair or improvements of City facilities. [Ord. 24-35(S) § 1, 2024; Ord. 84-32, 1984].
3.16.020 City Manager’s authority.
a. The City Manager will have the authority to and will establish administrative procedures and provide for procurement of needed supplies, materials, or services for the City.
b. The City Manager or designee will sign all contracts on behalf of the City. Designee may include the Acting City Manager or a department director signing within their budget authority as outlined in the procurement policy.
c. The City Manager may not authorize an acquisition or contract if the value of the property, service or contract exceeds $50,000, without first obtaining City Council approval of the appropriation or unless the property, service or contract is listed in the City’s annual budget. [Ord. 24-35(S) § 1, 2024; Ord. 01-06(A) § 1, 2001; Ord. 84-32, 1984].
3.16.030 Small procurement procedures.
a. Repealed by Ord. 24-35(S).
b. Repealed by Ord. 24-35(S).
c. Purchases or contracts less than $5,000 are incidental purchases and will be made on the open market with such competition as is reasonable and practical in the circumstances. These purchases require authorization by the department director.
d. Small procurements greater than $5,000 but not exceeding $10,000 will, whenever practical, be based on at least two written or oral price quotations without observing the procedure prescribed for the award of formal sealed bids. Small procurements require authorization by the department director before purchase is made. [Ord. 24-35(S) § 1, 2024; Ord. 01-06(A) § 1, 2001; Ord. 87-29 § 1, 1988].
3.16.035 Intermediate procurement procedures.
a. Procurement greater than $10,000 but less than $50,000 will be based on three price quotations.
b. If reasonable efforts to obtain three price quotations are unsuccessful, the City Manager may authorize the procurement based on the lowest and best price obtainable.
c. The department director, Finance Director, and City Manager must authorize intermediate procurements and notify the City Council at the next regular meeting. [Ord. 24-35(S) § 1, 2024].
3.16.040 Advertising for bids.
a. Purchases or contracts having an estimated value of more than $50,000 may be made only after a notice calling for bids is printed in a newspaper of general circulation within the City limits once a week for not less than two consecutive weeks prior to the date for the bid award, unless another form of media is authorized by the City Manager. The notice will contain a general description of the property, work, or service; state where the bid forms and/or specifications may be obtained; and specify the place for submission of bids and the time by which they must be received.
b. The bid closing date will be no sooner than five working days after the last date of advertisement.
c. The purchase or contract will be awarded to the lowest responsive and responsible bidder as determined in HCC 3.16.070. [Ord. 24-35(S) § 1, 2024; Ord. 01-17, 2001; Ord. 01-06(A) § 1, 2001; Ord. 84-32, 1984].
3.16.050 Processing of bids.
Notwithstanding other provisions of this chapter relating to the award after competitive bid for purchases and contracts, the City Manager may:
a. Reject defective or nonresponsive bids;
b. Waive any irregularities in any and all bids;
c. Reject all bids;
d. Readvertise for bids with or without making changes in the plans, specifications or scope of work. [Ord. 24-35(S) § 1, 2024; Ord. 84-32, 1984].
3.16.060 Exceptions to bidding requirements.
Unless otherwise authorized by law, all procurement actions will be by competitive bidding. Authorized exceptions include:
a. Negotiated procurement following unsuccessful efforts to obtain competitive bidding.
b. Small and intermediate procurements, below $50,000.
c. Emergency procurement.
d. Repealed by Ord. 24-35(S).
e. Procurement of real estate.
f. Procurement of professional services.
g. Interagency agreements.
h. Utilization of State or local government contracts.
i. Sole source procurement.
j. Single source procurement.
k. Procurement resulting from competitive sealed proposals as defined in HCC 3.16.110.
l. Placement of insurance coverage.
m. Electronic data processing software and hardware. Competition will be sought to the maximum extent practicable.
For the purpose of this section:
“Professional services” means professional, technical, or consultant’s services that are predominantly intellectual in character, result in the production of a report or the completion of a task, and include analysis, evaluation, prediction, planning, or recommendation.
“Single source” means the procurement of supplies, materials, services, or construction when the contractor or consultant has a preexisting relationship with the City and provides a specialized level of expertise, proprietary technology, or a service that is difficult to replicate by other vendors.
“Sole source” means the procurement of supplies, materials, services, or construction through a sole source in the following situations:
1. Based on documented research, the goods or service is only available from one source.
2. When competitive procurement procedures have been followed, but a limited number or no bids, quotations, or proposals have been received.
3. Products or services that support existing software or data exchange between public or private agencies are required for compatibility with existing equipment.
4. Purchase of patented goods or services.
5. When the Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the City. [Ord. 24-35(S) § 1, 2024; Ord. 01-06(A) § 1, 2001; Ord. 84-32, 1984].
3.16.070 Lowest responsive and responsible bidder.
In determining the lowest responsive and responsible bidder, the City Manager will consider:
a. The price;
b. The ability, capacity and skill of the bidder to perform the contract within the time and price specified;
c. The reputation and experience of the bidder;
d. The bidder’s performance under previous contract. [Ord. 24-35(S) § 1, 2024; Ord. 01-17, 2001; Ord. 01-06(A) § 1, 2001; Ord. 84-32, 1984].
3.16.080 Local bidder preference.
a. It is the policy of the City of Homer to give preference to City of Homer residents, workers, businesses, contractors, producers and dealers to the extent consistent with law or funding source.
b. A contract or purchase will be awarded to a local bidder where the bid by such local bidder is, in all material respects, comparable to the lowest responsible nonlocal bid if the amount bid by such local bidder does not exceed the lowest nonlocal bid by more than the following percentages, unless such an award is contrary to State or Federal law or regulation or unless the Council, at its discretion, determines prior to giving notice soliciting bids that the provisions of this section will not apply to the contract or purchases:
|
Nonlocal bid is: |
Local bid is not more than: |
|
$0 – $500,000 |
5 percent higher than nonlocal bid |
|
$500,000+ |
5 percent higher than nonlocal bid on first $500,000 and 2.5 percent higher than nonlocal bid on amount in excess of $500,000 to $1,000,000. No additional adjustment for bids above $1,000,000. |
c. “Local bidder,” for purposes of this section, means a person or firm who:
1. Holds a current Alaska business license to provide such goods or services, and such other Alaska regulatory licenses as are required to provide such goods or services; and
2. Submits a bid for goods or services under the name appearing on the person’s or firm’s current Alaska business license; and
3. Has maintained and staffed a place of business within the boundaries of the City of Homer for a period of at least six months immediately preceding the date of the bid and intends to permanently maintain such place of business in the future; and
4. Is registered in the Kenai Peninsula Borough to collect sales tax and locally provides the products and services sought; and
5. Is not delinquent in the payment of any taxes, charges, or assessments owing to the City of Homer on account of that business.
d. The City Manager may require such documentation or verification by the person or firm claiming to be a local bidder as is deemed necessary to establish the requirements of this section.
e. Local bidder’s preference does not apply to sale or other disposal of personal property in Chapter 18.30 HCC. [Ord. 24-35(S) § 1, 2024; Ord. 01-13(S)(A), 2001].
3.16.090 Requirements mandatory.
Except as provided in HCC 3.16.100, a purchase, contract or sale subject to the provisions of this chapter will not be valid, enforceable or binding upon the City unless the established requirements have been satisfied and the contract or purchase is approved by the City Council. [Ord. 24-35(S) § 1, 2024; Ord. 01-06(A) § 1, 2001; Ord. 84-32, 1984].
3.16.100 Change orders.
A change order to an existing City contract shall require the approval of the City Council when the proposed modification or change order increases the contract amount by $50,000 or more. No work may proceed under a modification or change order requiring City Council approval prior to approval by the City Council. The Council shall be notified by written report at its next regular meeting of any modification or change order in excess of $10,000. Such notification shall include:
a. The dollar amount of the original contract;
b. The number of previous modifications or change orders;
c. The dollar amount of each previous modification or change order and the total aggregated dollar amount of the previous modifications and change orders;
d. The total dollar amount of the contract as modified or changed; and
e. A statement explaining the justification or need for the modification or change order.
Modifications and change orders shall not be arbitrarily divided into smaller amounts to avoid Council approval thereof.
The City may make modifications or change orders in any City contract without Council approval where in the judgment of the City Manager an emergency or disaster exists which requires immediate action to remedy and where there is insufficient time or it is impractical to obtain Council approval. Notice of such emergency or disaster modifications or change orders containing the information set forth in Section 3 of the procurement policy. [Ord. 24-35(S) § 1, 2024; Ord. 01-06(A) § 1, 2001; Ord. 84-32, 1984].
3.16.110 Competitive sealed proposals – Negotiated procurement.
a. The City Manager may elect to use a competitive sealed proposal process when the bidding process is not practicable.
b. The City Manager will solicit competitive sealed proposals by issuing a request for proposals. The request for proposals will state, or incorporate by reference, all specifications and contractual terms and conditions to which a proposal must respond, and will state the factors to be considered in evaluating proposals and the relative importance of those factors. Public notice of a request for proposals will be given in accordance with HCC 3.16.040(a) and (b).
c. Sealed proposals will be designated as such on an outer envelope and will be submitted by mail or in person at the place no later than the time specified in the request for proposals. Proposals not submitted at the place or within the time so specified will not be opened or considered.
d. Proposals will be received at the time and place designated in the request for proposals, and will be opened so as to avoid disclosing their contents to competing proposers during the process of negotiation. Proposals, tabulations and evaluations thereof will be open to public inspection only after the contract award. The City Manager will issue a notice of recommendation to award to all responding proposers at least four days prior to approval by the final decision-making authority.
e. In the manner provided in the request for proposals, the City Manager may negotiate with those proposers whose proposals are determined to be responsive and responsible to the request for proposals. Negotiations will be used to clarify and assure full understanding of the requirements of the request for proposals after submission and prior to award to obtain best and final offers. Proposers deemed eligible for negotiations will be treated equally regarding any opportunity to discuss or revise proposals. In conducting negotiations or requesting revisions, no City officer or employee will disclose any information derived from proposals of competing proposers.
f. If fair and reasonable compensation, contract requirements and contract documents can be agreed upon with the most qualified proposer, the contract will be awarded to that proposer.
g. If fair and reasonable compensation, contract requirements and contract documents cannot be agreed upon with the most qualified proposer, the City Manager will advise the proposer of the termination of negotiations. If the proposals were submitted by one or more other proposers determined to be qualified, negotiations may be conducted with such other proposers in the order of their respective rankings. The contract may be awarded to the proposer then determined to be most qualified and advantageous to the City.
h. Awards will be made by written notice to the proposer whose final proposal is determined to be most advantageous to the City if satisfactory compensation, contract requirements and contract documents are agreed upon pursuant to subsection (g) of this section. No criteria other than those set forth in the request for proposals may be used in proposal evaluation. If the City Manager determines that it is in the best interest of the City to do so, the City Manager may reject all proposals.
i. When the service is routine and repetitious, the cost of the anticipated service will be considered during evaluation of proposals. This subsection will not apply to a qualifications-based selection process. [Ord. 24-35(S) § 1, 2024; Ord. 01-06(A) § 1, 2001; Ord. 92-38 § 1, 1992; Ord. 84-32, 1984].
3.16.120 Procurement Policy and Procedures Manual.
a. The City Council herein incorporates by reference procurement policies and procedures specified in the City of Homer Procurement Policy and Procedures Manual.
b. The Manual may be revised with Council approval.
c. A copy of the Manual will be available to the public at all times at the Homer City Hall. [Ord. 24-35(S) § 1, 2024; Ord. 01-06(A) § 1, 2001; Ord. 87-29 § 2, 1988].
For provisions restricting business dealings with violators of tax code, see HCC 9.04.050.