HomeMy WebLinkAboutORD1219ORDINANCE NO.1219
AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE
JUNCTION,ARIZONA,AMENDING THE APACHE JUNCTION CITY CODE,CHAPTER 3,
ADMINISTRATION,ARTICLE 3-7,CONTRACT PROCEDURE;REPEALING ANY
CONFLICTING PROVISIONS;AND PROVIDING FOR SEVERABILITY.
WHEREAS,the contract procedure the City currently uses set forth in Article
3-7 of the City Code was last amended in 1993;and
WHEREAS,some of the city code provisions relating to procurement may be
inconsistent with current state law and common law:and
WHEREAS,in 2003,the city manager recommended that consultants review the
current procurement code and city procurement practices and make recommendations;
and
WHEREAS,in early 2004,consultants provided their suggested changes to the
city procurement practices and policies;and
WHEREAS,after convening a staff advisory committee to review these
regulations,staff recommended changes to the code to:1)establish efficient
procurement;2)secure for city materials,services and construction at the lowest
possible cost commensurate with quality need;3)exercise positive financial
control over purchases;4)assure the quality of purchases:and
WHEREAS,the Mayor and City Council find the recommended amendments are
needed to meet the objectives referenced above.
NOW,THEREFORE,BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION,ARIZONA,as follows:
SECTION I IN GENERAL
Apache Junction city Code,.Volume :1,Chapter .3,Administration,Article 3-7.
Contract Procedure,is re -titled as "Article 3-7 Procurement Procedure,"and is
amended in its entirety as follows:
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Article 3-7 Procurement Procedure
3-7-1 Definitions
3-7-2 Procurements of $25,000 or more
3-7-3 Procurements less than $25,000 but at least $1,000
3-7-4 Exemptions
•3-7-5 Bid Protests
3-7-6 Disposal of Property
3-7-7 Bid Disqualification
3-7-8 Change Orders
3-7-9 Conflicts of Interest and Penalties
3-7-10 Administrative Procedures
Sec.3-7-1 Definitions
The words defined in this section shall have the meanings set forth below whenever
they appear in this article:
A.Change Order:a written order signed by an authorized agent of the
city which directs the contractor to make changes that are authorized
by the changes clause of the original contract.
B.Construction:the process of building,altering,repairing,
improving or demolishing any public structure or building,or other
public improvements to any public real property;construction does not
include the routine operation,routine repair or routine maintenance of
existing structures,buildings or public real property.
C.Contract:a written agreement between the City and another party for
the procurement of materials,supplies or services:the term includes
but is not limited to:contracts of a fixed price,cost,cost plus,
fixed fee;contracts providing for the issuance of job tasks,leases
and rentals,excluding real estate;maintenance agreements;letter
contracts;and purchase orders.
D.Lowest Responsive and Responsible Bidders:a person,firm or other
entity that submits a bid:1)which is the least amount compared to
other bidders;2)that responds to the invitation for bids in all
material respects;and 3)which demonstrates the submitting party has
the wherewithal to perform the work per the plans and specifications
within the contract time,as determined by experience,skill,financial
strength,integrity and experience record with the City and/or other
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municipalities.
E.Manager or his or her desigfiee:,person(s)the City Manager selects
in writing to implement or administer the provisions of this article.
F.Notice Inviting Bids:all documents,whether attached or incorporated
by reference,which are used for soliciting bids in accordance with the
procedures prescribed herein.: including request for proposals and
request for statement of qualifications.
G.Procurement:the purchasing.,sale of;renting,leasing or
otherwise obtaining of any materials,supplies or services.
H.Services:the furnishing of.labor.time or effort.
Sec.3-7-2 Procurements of $25,000 or more
Except as otherwise provided herein,purchases,leases,rentals and contracts
for supplies,services,equipment and materials and the sale of personal property
of twenty-five thousand dollars ($25,000.00)or more in estimated value,shall be
made by written contract with the lowest responsive and responsible bidder,
pursuant to the following provisions:
A.Notice Inviting Bids:A notice inviting bids or request for
proposals/request for statement of qualifications shall:1)include a description
of the articles to be purchased or sold;2)state where notice inviting
bids/request for proposals/request for statement of qualifications forms and
specifications may be obtained:and 3)state the date,time and place for opening
bids.A notice inviting bids/request for proposals/request for statement of
qualifications shall be published at least ten. (10)calendar days before the date
of opening the bids.Pursuant to A.R.S.Section 39-204,publication should be made
in a newspaper as follows:1)if the newspaper is a weekly,publication must occur
once each week for two consecutive weeks;or 2)i f the newspaper is a daily,
publication shall be made on four consecutive days.
B.Bidder's Security:When deemed necessary by the manager or his or
her designee,bidder's security may be prescribed in the notice inviting bids.
Unsuccessful bidders shall be entitled to returned bid security.A successful
bidder or request for proposals/request for statement of qualifications bidder
shall forfeit their bid security upon refusal or failure to execute the contract
within the time specified,dating from award of contract date,unless the city is
responsible for the delay.The council may,on refusal or failure of the successful
bidder to execute the contract,' award i t to the next lowest responsive and
responsible bidder.
C.Bid Opening Procedure:Sealed bids shall be submitted to the manager's
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designee and the bid number and project title shall be reflected on the envelope.
Bids shall be opened in public at the date,time and place stated in the public
notice.A tabulation of all bids received shall be available to the public for
inspection during regular business hours for a period of time as prescribed under
Arizona law.After bid opening,no corrections in bid prices or other provisions of
bids prejudicial to the best interest of the City or fair competition shall be
permitted.Late bids will be returned unopened to bidders who fail to file their
bids in a timely manner.
D.Bid Rejection:At its discretion,the council may reject any and all
bids.
E.Award of Contracts:Based on the bid opening,council shall award
the contract to the lowest responsive.and responsible bidder for purchases,leases,
or rental contract's for supplies,services,equipment,or sale of personal
property,or professional services which are valued at twenty-five thousand dollars
($25,000.00)or more.In awarding the contract,council shall be advised of and
shall consider the advantages or disadvantages of the proposed purchases,leases,
rentals,contracts or sales as presented by the manager or his or her designee.
F.Payment and Performance Bonds:The council shall have the
authority to require a payment and performance bond before entering a contract in
such amount as i t shall find reasonably necessary to protect the best interests of
the city,and if the council requires a payment and performance bond,the form and
amount shall be described in the notice inviting bids/request for proposals/request
for statement of qualifications.Bonding shall not be required for contracts under
twenty five thousand dollars ($25,000.00).
Sec.3-7-3 Procurements less than $25,000 but at least $1,000
Purchases,leases,rentals and contracts for supplies,services,equipment,
materials,professional services and the sale of personal property of an estimated
value in the amount of one thousand dollars ($1,000.00)or more but less than
twenty-five thousand dollars ($25.000.00),may be made by the manager or his or her
designee in the open market by observing the procedure for inviting and publishing
bids with the following exception:Open market purchases shall,wherever possible.
be based on at least three written bids,and shall be awarded to the lowest
responsive and responsible bidder.
Sec.3-7-4 Exemptions
A.Professional Services:
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Unless otherwise required by council.provisions of this article shall not apply to
the following types of professional servi ,....es:appraisal:.ahchitectural,certified
public accountant,clergy,dental,employment,engiheering,financial,legal.
medical,nursing,physician,psychologi t.,surveying,technological,veterinarian.
and any healthcare related affiliation .,
B.License and Maintenance AgreeMerits:
Unless otherwise required by Council,license and maintenance agreements are
exempted from this article.
C.Materials and Equipment Valued less than $1,000.00:
The provisions of this article do not apply to materials and equipment valued at
less than one thousand dollars ($1,000.00).
D.Library Materials Exemption:.
The City of Apache Junction Public Library shall not be required to use the
competitive bidding process as set forth in this article for the purchases of
audiovisual materials,books,periodicals,and subscriptions.
E.Public Works Projects Exemption:
1.Public Buildings:Any building,structure,addition or
alteration thereto contemplated on city property constructed
with the use of the city's regularly employed personnel or
contractors in an amount up to .and including (excluding
materials and equipment previously acquired by bid)one hundred
thousand dollars ($100.000.00)does not require mayor and city
council approval.
2.Public Infrastructure:Any street.road,bridge,water or sewer
work,other than a water or sewer treatment plant or building,
constructed with the use of the city's regularly employed
personnel or contractors in an amount up to and including
(excluding materials and equipment previously acquired by bid),
one hundred thousand dollars ($100,000.00)does not require
mayor and city council approval.
F.Single Source Procurement:
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Materials,supplies,and services may be. procured without competition i f the
manager or his or her designee determines the needecEmaterials,supplies or
services are available from only one source and only when proven by city staff that
the advantages and overriding considerations are paramount to the city's interests.
G.Emergency Purchases:
The manager or his or her designee may authorize city staff to make emergency
purchases without competition if:ly theise -exists a .threat to public health,
welfare or safety (including but not limited to damaged city property causing such
threat without repair,replacement or substitute);or 2)i f a situation exists
which makes compliance with the procurement process contrary to the public
interest;or 3)there is immediate need to prepare for national or local defense or
assistance;or 4)there is a breakdown in machinery or in an essential service
which requires the immediate purchase of equipment,supplies or services to protect
the public health,welfare or safety;or 5)an essential departmental operation
effecting the public health,welfare and safety would be greatly hampered if the
prescribed procurement procedure would cause an undue delay in obtaining the needed
item or service.
H.Alternative Bid Procedure:
When deemed to be in the best interest of the city,supplies,materials and
equipment and services not otherwise exempted herein,may be purchased pursuant to
specifications,solicitation,or contracts issued by other local,state,or federal
governmental entities or through the state bid procurement lists or by quasi
governmental units or school districts which have used procurement procedures that
are equal to or stricter than the provisions set forth herein.In such instances,
the requirement for the city to obtain sealed or written bids or to contact
prospective suppliers from bidder lists or to publish or post notices regarding
bids is not required.
Sec.3-7-5 Bid Protests
A.In General:Any aggrieved person may protest any aspect of any
bid solicitation within ten (10)calendar days after bid opening.No protest may be
recognized after award of contract by council.
B.Filing and Content of Protest:The protest must be filed at the
city clerk's office within five (5)calendar days after bid opening and shall
include the following:name and address of protestor,bid description,grounds for
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protest to include all evidence.,exhibits,or documents substantiating the protest.
C.Hearing:The manager or his or her designee shall notify the
protestor or other interested parties of the time and place set for hearing on the
protest.Interested parties may also file Im5ition statements and may participate
in the hearing.The manager or his or her designee shall conduct the hearing within
five (5)calendar days after sending the notice of the.hearing to the protestor
and/or interested parties,absent any stipulated continuances.
D.Decision:The manager or his or her designee,shall within five (5)
calendar days after the hearing has been completed,issue a written opinion and
send i t by first class U.S.certified mail 'to the protestor and all interested
parties.Such decision shall be final.
Sec.3-7-6 Disposal of Property
City staff shall follow the provisions of state law with regard to the sale,
lease,exchange,trade or other disposal of surplus or obsolete city personal
property.The city may also elect to donate any surplus or obsolete city personal
property to a governmental,non-profit or charitable organization,without public
notice,as determined by the manager or his or her designee.
Sec.3-7-7 Bid Disqualification
A.Grounds:The manager or his or her designee may disqualify any
bidder from consideration of award of bid for materials,supplies,or services for
up to three years.The following factors may be taken into consideration in making
this determination:
1.Conviction of any person or any subsidiary of affiliate of any person
for commission of a criminal offense arising out of or obtaining or
attempting to obtain a public or private contract or subcontract,or in
the performance of such contract or subcontract.
2.Conviction of any person or any subsidiary of affiliate of any person
under any federal or state statute for theft,embezzlement,fraudulent
schemes and artifices and practices,bid rigging,perjury,forgery,
bribery,falsification or destruction of records recovering stolen
property or other offenses indicating lack of business integrity or
honesty which affects the responsibility as a city contractor.
3.Conviction or civil judgment finding a violation of any person or any
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subsidiary or affiliate of any person under state or antitrust
statutes.-
4.Failure to pass any clearance or applicable background investigation in
jbids involving sensitive materials or tasks involving the public safety
department.
5.Failure to pay any transaction privilege taxes resulting from income
received on public contracts.
6.Violation of contract provisions of a character which are deemed to be
so serious as .to justify disqualification,such as:1)knowingly
failing without good cause to perform in accordance with the
specifications or within the time limits provided in the contract:and
2)failure to perform or unsatisfactorily perform in accordance with
the terms of contract,except that failure to perform or
unsatisfactorily perform caused by acts beyond the contract of the
contractor shall not be considered a basis.
B.The manager or his or her designee shall send written notice of the
proposed disqualification,including the grounds and period of proposed
disqualification to the disqualified party by first class U.S.
certified mail from the address on the bid.The party shall have a
right to a hearing before the manager or his or her designee i f an
appeal is filed within five (5)calendar days after the notice is sent.
The manager or his or her designee shall provide notice of the hearing
date and time to the disqualified party.The party shall have the
opportunity to present evidence rebutting the reasons for
disqualification.The manager or his or her designee shall decide the
matter within five (5)calendar days of the hearing and shall notify
the disqualified party within a reasonable time.Such decision shall be
final.
Sec.3-7-8 Change Orders
The manager or his or her designee may authorize change orders to any
contract if the amount does not exceed ten percent (10%)of the cumulative amount
of the contract and as long as the cumulative amount of the change order plus the
original contract amount is less than $25,000.The council may exercise its
authority to approve any change orders in any amount substantiated by staff.
Sec.3-7-9 Conflicts of Interest and Penalties
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No city employee shall participate directly or indirectly in any procurement
when the employee has a conflict of interest AS defined in A.R.S.Section 38-503.
In addition,any person who violates this article could be subject to criminal
.penalties set forth in Article 1-8 of the City Code,as well as criminal and civil
penalties set forth under state law..
Sec.3-7-10 Administrative Procedures
The manager or his or her designee. may promulgate administrative rules and
regulations which more specifically delineates the responsibilities of procurement
procedures pursuant to this article.
SECTION I I REPEALING CONFLICTING PROVISIONS
All ordinances and parts of ordinances in conflict with the provisions of this
ordinance,or any part of the code adopted herein by reference,are hereby
repealed.
SECTION III PROVIDING FOR SEVERABILITY
If any section.subsection,sentence,phrase,clause or portion of this ordinance,
or any part of the Code adopted herein by reference,is for any reason held to be
invalid or unconstitutional by the decision of any court of competent jurisdiction.
such decision shall not affect the validity of the remaining portion thereof.
PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,
ARIZONA,THIS 19TH DAY OF OCTOBER ,2004.
SIGNED AND ATTESTED TO THIS 19TH DAY OF OCTOBER 2004.
DOUGLAS C EMAN
Mayor
ATTEST:
/
KATHLEEN CONNELLY
City Clerk
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APPROVED AS TO FORM:
mprog.
RICHARD J.STERN
City Attorney
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