HomeMy WebLinkAboutOrd2008-018Sponsored by: Oates
Introduced: October 27, 2008
Public Hearing: November 24, 2008
Enacted: November 24, 2008
CITY OF SEWARD, ALASKA
ORDINANCE 2008-018
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA
AMENDING SEWARD CITY CODE, TITLE 6, PURCHASING, CONTRACTS AND
PROFESSIONAL SERVICES, INCREASING TIIE LIMIT FOR MINOR
PURCHASES FROM $10,000 TO $50,000, MAKING CERTAIN CHANGES TO
CLARIFY PURCHASING POLICIES AND INCREASE EFFICIENCY, AND
MAKING OTHER CHANGF,S TO AVOID CONFLICTS WITHIN THE SEWARD
CITY CODE
WHEREAS, an efficiency study was conducted in 2008 which resulted in a recommendation to
increase the city manager's purchasing authority from $10,000 to $50,000; and
WHEREAS, this increase in the purchase limit would create internal efficiencies and allow the
city manager more flexibility to conduct daily business without delays, as well as to improve the
efficiency of City Council meetings by reducing the number of items requiring Council action; and
R'HF.RF.AS, the amount of time currently required to prepare an item for approval by the City
Council results in an increased cost to the City which is not in the best interest of the citizens of
r
Seward; and
WHEREAS, administration has reviewed several procurement codes, policies and procedures
from other communities in Alaska, concentrating on those communities that operate harbors, electric,
water and sewer utilities for the purE~ose of updating language to be consistent with generally
accepted terminology and to update sections based upon current purchasing procedures being used by
the cities and other municipalities; and
WHEREAS, the purposes described in Title 6, §6.01.010, guided the administration in its
review and recommendations; and
WHEREAS, the most significant change being recommended is an increase to the dollar limit
for minor purchases from $10,000 to $50,000, with the exception of the purchase of passenger
vehicles which will require Council approval; and
WHEREAS, the most recent change to the dollar limit was in 1989, almost twenty years ago,
when Council increased the limit from $5,000 to $10,000; and
WHEREAS, the growth of the City's overall budget, the impact of inflation, the improvements
to the budget process, and the ability of the finance department to track purchases within the budget
,,,,,, justifies an increase in the limit for minor purchases; and
CITY OF SEWARD, ALASKA
CITY OF SF,WARD, ALASKA
ORDINANCE 2008-018
WHEREAS, increased costs of doing business over the last ten years has resulted in Council
approval for routine purchases where funding was already approved within the City's budget; and
WHEREAS, the new limit is within the median range of the limit of other Alaskan commu-
nities; and
WHEREAS, Chapter 6.05 was amended to set out the procedures for "minor purchases" defined
as 550,000 or less that continues to meet the purposes set forth in Title 6 to insure fairness and
equity; and
WHEREAS, the city manager will make every effort to provide a list of items ranging from
$10,000 to$50,000 in advance of obligating fiends, and in the event oftime-sensitive purchases, the
city manager will provide an update in the city manager's report.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, that:
Section 1. Seward City Code Title 6 is amended to read as follows (~ =deletions
Underline -additions):
TITLE 6
PURCHASING, CONTRACTS AND PROFESSIONAL SERVICES
Chapter 6.01 General Provisions
Chapter 6.05 Incidental Minor Purchases
Chapter 6.10 Major Purchases
Chapter 6.O1 General Provisions
6.01.010 Purpose.
6.01.015 Interpretation.
6.01.020 Compliance with grant conditions.
6.01.025 Purchase orders; form of expenditures generally.
6.01.030 Certifying purchase orders and contracts.
6.01.035 Inspection of work, materials, etc., prior to payment.
6.01.040 Payment of claims.
6.01.050 Contractor delinquency in certain payments.
6.01.010 Purpose.
CITY OF SEWARD, ALASKA
ORDINANCE 2008-018
The purpose of this title is to:
1. maximize the purchasing value of public funds in the procurement of goods and services for
the city;
2. provide an efficient system for the purchase of goods and services without creating
m~reasonable administrative burdens and restrictions;
3. provide flexibility in the methods ofpurchasing goods and services in orderto meet the goals
and objectives of the city as determined by the city council;
4. provide for the fair and equitable treatment of all persons involved in the provision of goods
and services to the city; and
5. prevent collusion and anti-competitive practices by the providers of goods and services.
(Ord. 615, 1989)
6.01.015 Interpretation.
This title is to be interpreted and applied in order to further the objectives stated above. (Ord.
615, 1989)
6.01.020 Compliance with grant conditions.
When a procurement involves the expenditure of state or federal grant, assistance or contract
funds, the procurement shall be conducted in accordance with any applicable mandatory state or
federal law and regulation. Nothing in this code shall prevent the city from complying with the
terms and conditions of any grant, gift or bequest which is otherwise consistent with law. (Ord. 615,
1989)
6.01.025 Purchase orders; form of expenditures generally.
A. Every w~dertaking of the city involving the expenditure of city money shall be in writing in
the form of a purchase order, check request, credit card, electronic communication, travel voucher or
of a contract, as may he appropriate, and no officer or employee of the city shall have authority to
enter into any oral agreement involving the expenditure of money. The finance director's, or
designee's, written approval of expenditures certifies that each expenditure has been properly
authorized and that funds have been lawfully appropriated for that purchase. The city manager or
designee and city clerk or designee shall sign all contracts on behalf of the city and the city manager
or designee and the finance director or desi nee shall sign all purchase orders.
B. Separate purchase orders shall not be issued for the purpose of circumventing the
requirements and limitations of this title.
C. The city manager may authorize any department or division of the city to purchase directly
certain specified supplies, materials, equipment orcontractual services underwrittcnprocedures not
less restrictive than those prescribed under this chapter and chapter 6.05.
D. The city manager shall have the authority to and shall establish the administrative procedures
and provide for other matters which may be necessary to carry out the provisions of this chapter and
chapter 6.05.
E. References in this Title to matters required to be in '`writing" or to be "written" may include
~. electronic communication unless procedures are otherwise prescribed; provided, however, that all
§ 6.01.030PURCHASING, CONTRACTS AND PROFESSIONAL SERVICES
sealed bids and sealed proposals must be physically submitted in the manner provided in chapter
6.10.
(Ord. 615, 1989)
6.01.030 Repealed by Ord. 2003.06.
6.01.035 Inspection of work, materials, etc., prior to payment.
A. Prior to the making of partial or final payments on contracts, the city manager or designee
shall certify that the conditions of the contract for which payment is made have been complied with.
In the case ofpartial payments, such payments shall be made on estimates ofthe amount and value of
work accomplished. The certificates of estimate shall include the amount and value of the work
accomplished and the materials used since any preceding estimate. Such certificates of estimates
shall further indicate that if a greater proportion of the contract has been performed by the
contracting party than that which is represented by the request for partial payment, the request only
shall be paid, in addition to any preceding partial payments. The finance director may authorize
payment upon receiving the invoices properly certified, and evidence of compliance with any other
applicable requirements.
B. The responsibility for the inspection and acceptance of all materials, supplies and equipment
shall rest with the department or division head concerned. (Ord. 615, 1989; Ord. 2002-05; Ord.
2003-06)
CITY OF SEWARD, ALASKA
ORDINANCE 2008-018
6.01.040 Payment of claims.
A. The city finance director shall pay claims for which appropriations have previously been
made, when the claim was incurred by purchase order as otherwise herein provided, or by agreement
approved by the city council.
B. The finance director shall require invoices to he submitted to the finance director or designee
by the vendors, and that the head of the department or division of the city concerned shall submit to
the finance director or designee confirmation that the goods or services for which the purchase order
and invoices are rendered have been delivered in the manner, quantity and quality specified, prior to
the issuance of the city's payment thereof.
C. Claims for transportation expenses and allowances submitted in connection with traveling on
official business will be allowed by the fina~ice director only when such expenses have been
approved in advance by the city manager or designee and are submitted on proper forms provided by
the city and certified by claimant. (Ord. 615, 1989; Ord. 2003-06)
6.01.050 Contractor delinquency in certain payments.
A. The city shat l not award a contract or purchase order to any person who then is delinquent in
paying (i) any tax levied by the city or the Kenai Peninsula Borough, (ii) any special assessment
levied by the city, (iii) any charge for city utility or harbor services, or (iv) any city business license
fee, unless the person cures the delinquency within ten days after the mailing of written notice
thereof.
B. The city may terminate any contract or purchase order if the contractor becomes delinquent in
payment of any of the items listed in subsection (a) of this section, unless the contractor cures the
delinquency within ten days after mailing of written notice thereof.
C. The city may deduct from any amount due the contractor under any contract or purchase
order an amount equal to the total of all delinquent amounts that the contractor owes for (i) taxes
levied by the city or the Kenai Peninsula Borough, (ii) special assessments levied by the city, (iii)
charges for city utility or harbor services, and (iv) the city business license fee.
D. Subsections (b) and (c) of this section shall be deemed to be incorporated in every city
contract and purchase order that is executed after the effective date of this section.
E. Nothing in this section shall prevent any person from paying under protest any tax, special
assessment, utility or harbor charge, or business license fee, or pursuing appropriate judicial or
administrative action to contest or recover any such tax, assessment, charge or fee. (Ord. 96-18)
CITY OF SEWARD, ALASKA
ORDINANCE 2008-018
Chapter 6.05 Incidental Minor Purchases
6.05.010 Purchases of $1~,SAA $50,000 or less.
6.05.015 Solicitation, quotations, records.
6.05.020 Minor Purchase Procedures.
6.05.010 Purchases of X0;000 $50,000 or less.
The city manager is hereby authorized to bind the city by purchase order or contract without
advertising or previous action by the city council for the payment for labor, services, materials or
other valuable considerations, in amounts not exceeding $1A~900 ($50,000) in any one item;
provided, that reasonable efforts have been made to provide the city with the lowest and best prices
obtainable. Those efforts may include, but arc not limited to, the written quotations or advertising
for sealed bids. The city manager may reject any or all quotations or bids and may waive minor
irregularities in the quotations or bids. (Ord. 615, 1989; Ord. 2000-018; Ord. 2003-6)
6.05.015 Solicitation, quotations, records.
A. Solicitation. Written quotations maybe solicited by telephone, in person or in writing from
interested persons or firms.
B. Quotations. A detailed record shall be made ofthe quotations received and shall include the
firm's name, person contacted, detailed description of materials or services, and price. Prices in
published mail order catalogs or Internet web sites may be considered to be written quotations.
C. Records. A record of all such incidental minor purchases and the quotations submitted to the
city in competition thereon shall be kept and such records shall be public. (Ord. 615, 1989; Ord.
2003-06)
6.05.020 Minor Purchase Procedures.
A. All purchases for an amount estimated to be $1,000 or less shall be made on the open market
with such competition as is reasonable and practical in the circumstances.
B. Purchases in an amount estimated to be greater than $1,000 but not more than X0;999
$50,000 ,except as indicated in ~ 6.OS.020(C) shall be made when feasible and when in the best
interest of the city in the open market by written or oral quotation or telephone solicitation, which
maybe done without newspaper advertisement and without observing the procedure prescribed for
the award of fom~al sealed bid purchases. Such open market purchases, whenever practicable, shall
be based on at least three quotations and shall be awarded to the lowest qualified bidder. The basis
for determining the lowest qualified bidder steal I be the same as that used in formal bid procedures as
defined in §6.10.135, including any preferences established by law. (Ord. 2002-05).
C. All purchases of passenger vehicles shall be subject to the provisions of § 6.10 and shall be
considered Major Purchases.
CITY OF SER'ARD, ALASKA
ORDINANCE 2008-018
Chapter 6.10 Major Purchases
Article 1. Major Purchases Generally
6.10.110 Definition.
6.10.115 Exemptions from competitive procurement procedures.
6.10.120 Specialized products and professional services exempt.
6.10.125 Purchase of used equipment exempt.
6.10.130 Where competitive bid proposals not in public interest.
6.10.135 Award only to responsible bidder/proposer.
6.10.140 Not responsible bidder/proposer finding.
6.10.145 Where funding insufficient.
Article 2. Competitive Sealed Bids
6.10.210 Use of competitive bids.
6.10.215 Competitive sealed bids -public notice.
6.10.220 Bid security.
6.10.225 Bid form.
6.10.230 Bid award.
6.10.235 Return of bids.
Article 3. Alternate Procurement Procedures
6.10.310 Alternate procurement procedures.
6.10.315 Competitive sealed proposals.
6.10.320 Notice.
6.10.325 Request for proposals content.
6.10.330 Opening of proposals.
6.10.335 Discussions with proposers.
6.10.340 Award of contract.
6.10.345 Prequalification of bidders/proposers.
Article 1. Major Purchases Generally
6.10.110 Definition.
For the purposes of this chapter, major purchases are those purchase orders or contracts for labor,
services, materials, or other valuable considerations which exceed $1-9~(1-$50,000 for any one item,
or any passenger vehicle purchase. (Ord. 615, 1989)
CITY OF SEWARD, ALASKA
ORDINANCE 2008-O18
6.10.115 Exemptions from competitive procurement procedures.
The provisions of this title requiring competitive procurement procedures need not apply to the
types of services and/or contracts set forth in ~ 6.10.120 - 6.10.130 below; and the city council may
approve such contracts by motion or resolution. Nothing in this title shall preclude the city from
utilizing any of the procedures set forth in this code in those instances. (Ord. 615, 1989)
6.10.120 Specialized products and professional services exempt.
A. Restrictions and provisions of Articles 2 and 3 of this chapter shall not apply:
1. to the purchase of a patented article;
2. where an emergency makes the delay incident to competitive bidding unreasonable;
3. where an emergency makes the delay incident to the procedures for rejecting a low bid set
out in § 6.10.140 unreasonable;
4. to the placement of insurance coverage;
5. to supplies, materials, equipment or contractual services which can only be furnished by a
single dealer, or which have a uniform published price;
6. to supplies, materials, equipment or contractual services purchased from another unit of
government at a price determined by the city manager to be below that obtainable from private
dealers, including government surplus;
7. to contractual services purchased from a public utility corporation at a price or rate
determined by state or other government authority;
8. to the purchase of professional services. Professional services are those that require
special knowledge and judgment that includes analysis, evaluation, prediction, planning or
reconnnendations and which result in the production of a report or the completion of a task.
Examples of professional services include accounting, architcctural, appraisal, engineering, land
surveying, financial consultation, legal services, lobbying, planning, economic analysis, computer
programming and system analysis, insurance consultation and risk analysis, and other specialized
services. Any professional services contracts which are not procured using the competitive
procurement procedures shall not exceed two years except for completion of work in progress under
architcctural or engineering contracts.
9. to purchase electronic data processing software and hardware systems and
communications equipment; and
10. when competitive procurement procedures have been followed, but no bids, quotations or
proposals are received. In such case, the city manager may proceed to have the services performed
or the supplies purchased without further competitive bidding or quotation.
B. The city may utilize competitive bids obtained by other governmental units.
(Ord. 615, 1989; Ord. 2003-06)
6.10.125 Purchase of used equipment exempt.
Restrictions and provisions of this title 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. ,,,~
(Ord. 615, 1989)
CITY OF SEWARD, ALASKA
ORDINANCE 2008-018
6.10.130 Where competitive bid proposals not in public interest.
Restrictions and provisions of this title shall not apply where the city council determines and
makes written findings that the public interest would be best served by not requiring competitive
bids/proposals. The best interest determination may be based upon, but is not limited to, a finding
that the services or articles can be procured at a lower cost without competitive bidding. (Ord. 615,
1989)
6.10.135 Award only to responsible bidder/proposer.
A contract awarded under this chapter shall be made only to a responsible bidder/proposer. Prior
to the City issuing a Notice to Proceed, the successful bidder/proposer shall provide evidence of a
valid city business license. The city manager may report to the city council and recommend rejection
of a bid or a proposal on the basis of the following criteria:
1. the skill and experience demonstrated by the bidder/proposer in performing contracts of a
similar nature;
2. the bidder's/proposer's record for honesty and integrity;
3. the bidder's history with an~prior litigation or threatened liti ation•
3- 4. the bidder's/proposer's capacity to perform in terms of facilities, persomlel and financing;
4. 5. the previous and existing compliance by the bidder/proposer with laws and ordinances
relating to the contract;
6. the number and scope of conditions attached to the bidlproposal;
"" €>: 7. the bidder's/proposer's past performance under city contracts, including failure to timely
complete a contract for the amount stated in its hid or proposal including city requested change
orders. If the bidder/proposer has failed in any material way to perform its obligations under any
contract with the city, the bidder/proposer may bedeemed anon-responsible bidder/proposer. (Ord.
615, 1989; Ord. 2003-06; Ord. 2008-004)
6.10.140 Not responsible bidder/proposer finding.
A report that the low bidder/proposer is not responsible shall delay the award of the contract until
after completion of the procedures outlined below.
1. 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 next two lowest bidders or the next two most
prefen-ed proposers and the report shall be placed on the agenda of the next scheduled council
meeting; provided, that the next council meeting allows two weeks' written notice to the lowest
bidder and the next two lowest bidders or most preferred and next two most preferred proposers.
2. At the council meeting, the lowest bidder or most preferred proposer and the city manager or
his designee shall have the opportunity to be heard regarding the adverse report.
3. 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
§ 6.10.135. (Ord. 615, 1989)
~°""' 6.10.145 Where funding insufficient.
CITY OF SEWARD, ALASKA
ORDINANCE 2008-018
If the lowest responsive and responsible bid or proposal exceeds the amount of funds available
for the procurement, the scope of the procurement may be reduced to bring its estimated cost within
the amount of available funds. The city shall issue a new invitation for bids or requests for proposals
for the reduced procurement, or, upon a finding by the city -nanager that the procurement is in the
best interests of the city and upon notice to the city council in the manner set forth in § 6.10.310, B.,
he may negotiate with the three lowest responsivc and responsible bidders or the three most
responsive and responsible proposers in succession, beginning with the lowest bid or most
responsive proposal, and may recommend the city council award the reduced contract. (Ord. 615,
1989)
Article 2. Competitive Sealed Bids
6.10.210 Use of competitive bids.
When the cost of goods or services required by the city exceeds the sum of 51-0;099 $50,000 the
city shall seek and preserve a competitive environment by utilizing the competitive bids as set forth
in this article, unless otherwise exempt. (Ord. 615, 1989)
6.10.215 Competitive sealed bids -public notice.
The city manager shall call for bids by advertising at least once in a newspaper of general
circulation "' not less than two weeks prior to the date set for receiving bids. (Ord. 615,
1989; Ord. 94-03 )
6.10.220 Bid security.
A. All bids for contracts estimated at $100,000 or more, or when otherwise required by a request
for bids or proposals, ^'~- '~ must be accompanied by 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 the site to the city, for an amount equal to five percent of the bid, such deposit not to
cxcecd $50,000. if the bidder to whom the contract is awarded shall, for 15 days after such award,
fail or neglect to enter into a contract and file any required payment or performance bond, the city
manager shall draw the money due on the certificate of deposit or check or draft, and pay the same
into the treasury, and under no circumstances shall it be returned to the defaulting bidder.
B. In lieu of the foregoing, any bid maybe accompanied by a surety bond, equal to the amount
stated above, 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 refusal to execute a contract. (Ord. 615, 1989; Ord. 94-03)
6.10.225 Bid form.
All bids shall be placed in a scaled envelope and delivered to the city clerk, and opened by the
city manager, or a person designated by him, in public, at the time and place designated in the notice ,,,.
inviting bids. (Ord. 615, 1989; Ord. 94-03)
CITY OF SEWARD, ALASKA
ORDINANCE 2008-018
6.10.230 Bid award.
The contract shall be let by the city council to the lowest qualified responsive and responsible
bidder; provided, that if the lowest bids are approximately equal, that is within the lesser of $5,000 or
five percent {~,~~ of each other, preference maybe given to local bidders who maintain and operate
businesses within the bowldaries of the Seward electrical utility service area. Local preference will
he applied to the bid process except when specifically excluded within the request for bids. The city
council may reject any or all bids and may waive minor irregularities in the bids. (Ord. 615, 1989).
6.10.235 Returu of bids.
The city manager shall return to the apparent unsuccessful bidders their certificates of deposit,
drafts or checks; provided, however, that the manager may retain the certificate of deposit, check or
draft of the three apparent low bidders until after award and signing ofthe contract. (Ord. 615, 7 989;
Ord. 94-03)
Article 3. Alternate Procurement Procedures
6.10.310 Alternate procurement procedures.
A. Notwithstanding the requirements of § 6.10.210 et seq., a department or division head may
recommend an alternative procurement procedure to the city manager if such procedure will best
serve the needs of the city and accomplish the objectives of this title. The city manager shall review
the recommendation and must approve it, in writing, before any procedures other than those required
by § 6.10.210 may be utilized.
B. The city manager shall notifythe city council ofhis decision to use anyprocedure other than
competitive sealed bids and the reasons for his decision at the next regularly scheduled city council
meeting. The report shall also include a description ofthe selection process and criteria that will be
used to analyze and recommend award, if criteria other than price are to be used.
(Ord. 615, 1.989; Ord. 2003-06)
6.10.315 Competitive sealed proposals.
The city may utilize requests for sealed competitive proposals for goods and services, including
design/build services. (Ord. 615, 1989; Ord. 2003-06)
6.10.320 Notice.
Notice of requests for proposals shall be given in accordance with § 6.10.215 and the city may
use additional means considered appropriate to notifyprospcctivc proposers ofthc intent to enter into
a contract through competitive sealed proposals. (Ord. 615, 1989)
CITY OF SEWARD, ALASKA
ORDINANCE 2008-018
6.10.325 Request for proposals content.
A. Generally. A request for competitive sealed proposals must contain the date, time and place
for delivering proposals, a specific description of the supplies, construction, or services to be
provided under the contract, and the terms under which the supplies, construction, or services are to
be provided. The request for competitive sealed proposals shall also contain requirements of
evidence of a valid Alaska business license, contractor's license and professional registration as
appropriate, and may require a list of subcontractors and other infornation as may be requested by
the city.
B. Selection criteria. The request for proposals must provide a description of the factors that
will be considered by the city when evaluating the proposals received, including the relative
importance of price and other evaluation factors.
(Ord. 615, 1989; Ord. 2008-004)
6.10.330 Opening of proposals.
"fhe city shall open. the proposals so as to avoid disclosure of contents to a competing proposer
during the process of negotiation. A register of proposals containing the name and address of each
proposer shall be prepared. The register and the proposals themselves are open for public inspection
after a notice of intent to award has been issued by the city. To the extent that the proposer
designates and the city attorney concurs, trade secrets and other proprietary data contained in the
proposal documents are confidential. (Ord. 615, 1989) ,~
6.10.335 Discussions with proposers.
A. Following review and evaluation of the proposals, the city may prepare a short list of the
proposals which most nearly meet the requirements set forth in the request for proposals. The city
may then request supplemental information or enter into discussions with the proposers listed therein
for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation
requirements.
B. Upon receipt of additional or clarifying information, the short-listed proposers shall be
ranked and negotiations maybe initiated with the first-ranked proposer. If an agreement cannot be
reached, that proposer shall be dropped from the list and negotiations initiated with the next-ranked
proposer.
C. "these proposers shall be accorded fair and equal treatment with respect to any opportunity for
discussion and revision of proposals, and revisions may be pern~itted after submissions and before
final negotiation of the contract for the purpose of obtaining best and final offers. In conducting
discussions, the city may not disclose information derived from proposals submitted by competing
proposers. (Ord. 615, 1989)
6.10.340 Award of contract.
A.The city manager shall make a written recommendation for award to the responsible and
responsive proposer whose proposal is determined to be the most advantageous to the city, taking
into consideration the price and the evaluation factors set out in the request for proposals. Other ,~,,,
factors and criteria may not be used in the evaluation. The city manager or designee shall issue a
CITY OF SEWARD, ALASKA
ORDINANCE 2008-O18
notice of recommendation to award to all responding proponents prior to approval by the final
decision-making authority.
B. The contract shall be let by the city council to the le~est most qualified responsive and
responsible proposer. The city council may reject any or all proposals and may waive minor
irregularities in the proposals. (Ord. 615, 1989; Ord. 2003-06)
6.10.345 Prequalification of bidders/proposers.
Prequalification of bidders or proposers under Chapter 6.10 is permitted if the city manager
determines that prequalification is in the public interest. Justification for prequalification may
include but shall not be limited to the need to restrict bidding to firms having special knowledge and
experience in the work required, or a need to expedite contracting procedures. A request for letters
of intent shall he advertised in the manner prescribed in § 6.10.215. The published request shall
describe the task(s) to be performed, the minimum qualifications of firms to be selected, and
procedures for evaluating those firms. Evaluation criteria may include, but shall not be limited to,
the same factors as listed at § 6.10.135 for determining a responsible bidder. Firms will be either
approved or rejected, with no rating designated to compare firms within either the approved or
rejected category. At least three firms must be included in the approved category. The city council
shall approve the prequalification list by resolution. Requests for bids or proposals will be solicited
from only those firms on the approved list and only those prequalified firms shall be allowed to
submit bids pursuant to this section. (Ord. 615, 1989)
Section 2. Seward City Code 7.05.510 is amended to read as follows (Stril~eaut =deletions
Underline =additions):
7.05.510 Easements and rights-of-~vay
A. Subject to applicable provisions of the Kenai Peninsula Borough Codc, Title 20,
Subdivisions, the city manager may, with regard to city la~ld, negotiate and executerights-of--way and
easements not exceeding a terns of twenty years.
B. The city manager may negotiate and execute the acquisition ofrights-of--way and easements
necessary for a utility, public improvement or other public use except the city council shall, by
resolution, approve acquisitions involving cash considerations or the exchange or real property
valued in excess of 50 000.
C. Any other rights-of--way and easements shall be granted or acquired only upon approval of the
city council.
D. The city manager may, at the direction of the city council convey, quitclaim, release, cancel,
or otherwise relinquish any real property easement, right-of--way, permit e€or license the city may
have or hold for the purpose of installing, constructing or maintaining a public improvement or
utility, whenever the interest is no longer used or useful for that purpose. (Ord. 92-05; Ord. 98-OS)
Section 3. This ordinance shall take effect ten (10) days following its enactment.
CITY OF SEWARD, ALASKA
ORDINANCE 2008-018
ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 24th
day of November 2008.
THE CITY OF SEWARD, ALASKA
Clark Corbridge, Mayor
AYES: Valdatta, Dunham, Smith, Bardarson, Corbridge
NOES: Keil, Kellar
ABSENT: None
ABSTAIN: None
ATTEST:
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Jea, Lewis, CMC
Cit Clerk '~9 OF ~~~~ ~~~
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Council Agenda Statement
Meeting Date: October 27, 2008
From: Phillip Oates, City Manager
Agenda Item: Amend the Seward City Code, Title 6, and
Purchasing Services, increasing the limit for
minor purchases from $10,000 to $50,000,
making certain changes to clarify policies and reducing conflicts
within the Code
BACKGROUND & JUSTIFICATION:
An efficiency study was conducted in 2008 which resulted in a recommendation to increase the
city manager's purchasing authority from $10.000 to $50,000. This increase in the purchase
limit would create internal efficiencies and allow the city manager more flexibility to conduct
daily business without delays, as well as to improve the efficiency of City Council meetings by
reducing the number of items requiring Council action. The amount of time currently required to
prepare an item for approval by the City Council results in an increased cost to the City which is
not in the best interest of the citizens of Seward.
Administration has reviewed several procurement codes, policies and procedures from other
communities in Alaska, concentrating on those communities that operate harbors, electric, water
and sewer utilities for the purpose of updating language to be consistent with generally accepted
terminology and to update sections based upon current purchasing procedures being used by the
cities and other municipalities. The purposes described in Title 6, §6.01.010, guided the
administration in its review and recommendations. The most significant change being
recommended is an increase to the dollar limit for minor purchases from $10,000 to $50,000.
T'he most recent change to the dollar limit was in 1989 when Council increased the limit from
$5,000 to $10,000.
The growth of the City's overall budget, the impact of inflation, the improvements to the budget
process, and the ability of the finance department to track purchases within the budget justifies
aii increase in the limit for minor purchases. Increased costs of doing business over the last ten
years has resulted in Council approval for routine purchases where funding was already
approved within the City's budget. The new limit is within the median range of the limit of other
Alaskan communities. Chapter 6.05 was amended to set out the procedures for "minor
purchases" defined as $50,000 or less that continues to meet the purposes set forth in Title 6 to
insure fairness and equity.
'The city manager will make every effort to provide a list of items ranging from $10,000 to
$50,000 in advance of obligating funds, and in the event of an emergency purchase, the city
manager will provide an update in the city manager's report. Other recommended changes in
Title 6 are housekeeping measures to bring the code up to current purchasing practices within the
City and current purchasing practices now being used by other municipalities.
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CONSISTENCY CHECKLIST•
Where applicable, this resolution is consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
FISCAL NOTE:
The increase in spending authorization for the city manager is expected to save considerable
administrative time, and improve efficiency, which will likely equate to some cost savings.
Approved by Finance Department: ~ ,91~~ ~,~~_ ~~~~~
RECOMMENDATION:
Authorize the city manager to amend the Seward City Code, "fitle 6, and Purchasing
Services, increasing the limit for minor purchases from $10,000 TO $50,000, making
certain changes to clarify policies, eliminating outdated language, and reducing conflicts
within the Code.
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