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HomeMy WebLinkAboutOrd1981-503 FA/s . . . e troduction Date: u 1ic Hearing and Enactment: 11/9/81 12/14/81 CITY OF SEWARD, ALASKA ORDINANCE NO. 503 AN ORDINANCE OF THE CITY OF SEWARD, ALASKA AMENDING THE BIDDING PROCEDURES. THE CITY OF SEWARD, ALASKA, ORDAINS: Sec. 10-7. Generally. Purchase Orders: Form of Expenditures (a) Every undertaking of the City involving the expenditure of City money shall be in writing, ~n the form of a purchase order, credit card, travel voucher or of a contract, as may be appropriate, and no officer or employee of the City shall have authority to enter into any oral agreement involving the expenditure of money. The City Manager and City Clerk shall sign all contracts on behalf of the City, and the City Manager and the Finance Director shall sign all purchase orders. (b) The City Manager is hereby authorized to bind the City by purchase order without advertising or previous action by the City Council for the payment for labor, services, materials or other valuable considerations, to be furnished to the City, or for the lease or purchase of real property in amounts not exceeding Five Thousand Dollars ($5,000.00) in anyone item, with the exception that in the electric light and power division this amount shall not exceed Ten Thousand Dollars ($10,000.00) in any one item provided that all efforts have been made to provide the City with the lowest and best prices obtainable. This may be accomplished by requesting written quotations or advertising for sealed bids. The City Manager may reject any or all quotations and bids and may waive minor irregularities in the quotations and bids Purchase orders may be used in contracting for skilled or unskilled labor or for labor and materials when the total cost does not exceed Five Thousand Dollars ($5,000.00), where the labor or materials desired are in fact a single purchase or operation. Separate purchase orders shall not be issued for the purpose of avoiding the limitations of this section. (d) Purchase orders shall be issued upon requisitions signed by the head of the division. All requisitions shall be filed with the purchasing agent and no purchase shall be made until an order has been obtained from him. (e) In the absence of the City Manager, a person designated by him, in writing, is hereby authorized to sign for the City Manager purchase orders for materials, supplies and equipment which do not exceed Five Hundred Dollars ($500.00) in value, in conformance with control procedures to be established by the City Manager for that purpose. (Ord. No. 349, ~4.106) -1- ORD.# 503 :?age 2 of 5 e e . . . Sec. 10-8. Bid Procedure. (a) When the cost of equipment, supplies and materials or labor required by the City exceeds the sum of Five Thousand Dollars ($5,000.00), the City Manager shall call for bids by advertising at least once in a newspaper of general circulation in the City, not less than two weeks prior to the date set for receiving bids. (b) All bids must be accompanied by cash, a certificate of deposit or certified check or draft, or a cashier's check or a draft on some responsible bank in the United States, in favor of and payable at sight to the City, for an amount equal to five percent (5%) of the bid. If the bidder to whom the contract is awarded shall, for fifteen days after such award, fail or neglect to enter into a contract and file the required bond, the City Clerk shall draw the money due on the certificate of deposit or check or draft, and pay the same or any cash deposit into the treasury, and under no circumstances shall it be returned to the defaulting bidder. In lieu of the foregoing, any bid may be accompanied by a surety bond in the amount, furnished by a surety authorized to do a surety business in the state, guaranteeing that the bidder will enter into a contract and file the required bond within such period. Without limiting the foregoing, no plea or defense of mistake by a bidder shall be available in any action by the City for the recovery of any deposit, or in any action on any surety bond or as a defense to any action based upon any re- fusal to execute a contract. (c) All bids shall be placed in a sealed envelope and de- livered to the City Clerk, and opened by the City Manager, or a person designated by him, in public, at the time and place des- ignated in the notice inviting bids. The contract shall be let to the lowest and best bidder by the City Council. The City Council may reject any or all bids and may waive minor irregu- larities in the bids. (d) The City Clerk shall return to the unsuccessdul bidders their certificates of deposit, drafts, checks or cash, and shall retain the certificate of deposit, check, draft or cash of the successful bidder until after the approval of the bond or other security furnished by the bidder for the faithful performance of his contract, and then shall return such certificate of deposit, check, draft or cash to the successful bidder. (e) Restrictions and provisions of this section shall not apply (1) to contracts for individual services requiring special knowledge and judgment or professional services; (2) to the purchase of a patented article; (3) where an emergence makes the delay incident to competitive bidding unreasonable; 8RD.#. 503 Page 3 of 5 e e . . . (4) where an emergency makes the delay incident to the procedures for rejecting a low bid set out in Section 10-8.2 unreasonable; ( 5 ) ( 6 ) services or which to the placement of insurance coverage; to supplies, materials, equipment or contractual which can only be furnished by a single dealer, have a uniform published price; (7) to supplies, materials, equipment or contractual services purchased from another unit of government at a price determined to be below that obtainable from private dealers, including war surplus; (8) to contractual services purchased from a public utility corporation at a price or rate determined by state or other government authority. (f) Restrictions and provisions of this section shall not apply where the City Council determines that the public interest would be best served by the purchase of used equipment and by resolution authorizes the City Manager to locate and purchase a particular type and quantity of used equipment. The term "used equipment", as expressed in the preceding sentence, shall mean machinery and vehicles which have been in the active service of the proposed seller for a period of not less than six (6) months preceding its purchase by the City. (Ord. No. 434, Sl; Ord. No. 349, ~4.107) (g) Restrictions and provisions of this section shall not apply where the City Council determines and makes written findings that the public interest would be best served by not requiring competitive bidding. The best interest determination may be based upon, but is not limited to, the following factors: the service or articles can be procured at a lower cost without competitive bidding; and the services or articles are budget items which were approved by the City Council when the budget was approved. Sec. 10-8.1. Award Only to Responsible Bidder. (a) A Contract awarded under this chapter shall be made only to a responsible bidder. The City Manager may report to the City Council and recommend rejection of a bid on the basis of the following criteria: (1) The skill and experience demonstrated by the bidder in performing contracts of a similar nature; (2) The bidder's record for honesty and integrity; (3) The bidder's capacity to perform in terms of facilities, personnel and financing; ORD.# 503 Page 4 of 5 e e . . . (4) The previous and existing compliance by the bidder with laws and ordinances relating to the contract; (5) The number and scope of conditions attached to the bid; (6) The bidder's past performance under City con- tracts. If the bidder has failed in any material way to perform its obligations under any contract with the City, the bidder may be deemed a nonresponsible bidder. A report that the low bidder is not responsible shall delay the award of the bid until after completion of the pro- cedures outlined in Section 10-8.2. Sec. 10-8.2. Not Responsible Bidder Finding. (a) If the City Manager or his designee reports to the City Council that the lowest bidder is not responsible, notice shall immediately be sent to the lowest and next lowest bidders and the report shall be placed on the agenda of the next scheduled council meeting, provided that the next council meeting allows two week's written notice to the lowest bidder and the next lowest bidder. (b) At the council meeting the lowest bidder and the City Manager or his designee shall have the opportunity to be heard regarding the adverse report. (c) The City Council shall then determine whether it is in the best interest of the public to affirm, reject, or modify the City Manager's report and in so doing make written findings to support its determination. The written findings shall be based on, but not limited to, the criteria set out in Section 10-8.1. Sec. 10-9. Examination of Claims. The Finance Director shall examine all payrolls, bills, claims and other demands of the City, and shall issue no warrant for payment unless the claim is in proper form, correctly com- puted and approved, and is legally due and payable and appro- priation has been made thereof which has not been exhausted and unless there is sufficient money in the City treasury to make payment. (Ord. No. 349, ~4.108) This ordinance shall take effect ten days after enactment. this ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, 14 day of December , 1982. ORD.# 503 Page 5 of 5 e e . ~CITY)OF SEWARD, ALASKA ~.~~ Donald W. Cripps, ayor AYES: NOES: ABSENT: CRIPPS, BURGESS, CAMPBELL, MEEHAN, O'BRIEN, SORIANO, SWARTZ NONE NONE ATTEST: APPROVED AS TO FORM: HUGHES, THORSNESS, GANTZ, POWELL & BRUNDIN Attorneys for the City of Seward CZt J1I~ Fred B. Arvidson . (City Seal) .