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HomeMy WebLinkAboutORD 1335ORDINANCE NO. 1335 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, REPLACING CHAPTER 3.30 IN ITS ENTIRETY AND REPEALING CHAPTER 3.32 (RESCINDING ORDINANCE NOS. 224, 423, 586, 927, 928, 986, 1162, 1166, 1204, 1229, 1276, AND 1317) RELATIVE TO THE PURCHASING SYSTEM AND PUBLIC WORKS CONTRACTS THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. That Chapter 3.30 is hereby replaced in its entirety to read as follows: Chapter 3.30 PURCHASING SYSTEM AND PUBLIC WORKS CONTRACTS 3.30.010 Purpose The purpose of this to chapter is to prescribe efficient policies and procedures for the procurement of public works projects, contractual services, professional services, and materials, supplies, and equipment to better serve the city's residents. All purchasing will be done with absolute integrity and equal opportunity will be provided to all, free of discrimination. 3.30.020 Definitions. The following terms, whenever used in this chapter, shall be construed as follows: A. "Contractual services" mean all services, other than professional services, including, but not limited to, repairs, maintenance work, and rental equipment. The term does not include services rendered by city officers or employees. B. "Department" or "agency" means a department, agency, or other unit of the city government whose affairs and funds are under the supervision and control of the city council. C. "Designated position" means a city staff position authorized by the city manager to make purchases consistent with this chapter subject to dollar limits set by the city manager. D. "Local business" means a vendor, contractor, or consultant who has a valid physical business address located within one of the nine incorporated cities of the Coachella Valley, or within an unincorporated area of Riverside County in the Coachella Valley within the boundaries of the Coachella Valley Association of Governments, at least six months prior to bid or proposal opening date, from which the vendor, contractor, or consultant operates or performs business on a day-to-day basis, and holds a valid business license by a jurisdiction located in the Coachella Valley. Post office boxes are not verifiable and shall not be used for the purpose of establishing such physical address. Page 1 of 17 ORDINANCE NO. 1335 E. "Materials, supplies, and equipment" means any and all articles, things, or property, other than real property, furnished to be used by any city agency. F. "Professional services" means all services performed in a professional occupation including, but not limited to, accounting, auditing, appraising, computer hardware and software support, engineering, architectural, planning, environmental, redevelopment, financial, economic, social services, legal, construction project management, communications, land surveying and other similar professional functions which may be necessary for the operation of the city. G. "Public project" or "public works" means: A project for the erection, improvement, painting, or repair of public buildings and works; 2. Work in or about streams, embankments or other works for protection against overflow; and 3. Street or sewer work except maintenance or repair. H. "Prime contractor' means the contractor who contracts directly with the city. I. "Purchasing" means the procurement of public projects, contractual services, professional services, and materials, supplies, and equipment as needed by the city. J. "Subcontractor" means a contractor who contracts directly with the prime contractor. 3.30.030 Purchasing Officer A. The purchasing officer shall be the city manager or his or her designee. The city manager may delegate some or all of the duties of that position to one or more subordinate employees. The purchasing officer shall supervise the purchasing functions of the city. The purchasing officer is authorized to establish methods and procedures for efficient and economical purchasing. 3.30.040 Purchasing Officer — Powers and Duties The purchasing officer, in accordance with this chapter and any written policies and/or procedures approved by the city manager consistent with this chapter, shall have the power to: A. Purchase and Contract. Purchase or contract for public projects, contractual services, professional services, and materials, supplies, and equipment required by the city. Page 2 of 17 ORDINANCE NO. 1335 B. Purchasing Policies Procedures. Prepare and implement policies and procedures governing the bidding, contracting, and purchasing of public projects, contractual services, professional services, and materials, supplies, and equipment for the city. C. Forms. Prescribe and maintain such forms as may be reasonably necessary to the implementation of this chapter and any other policies and procedures approved by the city manager consistent with this chapter. D. Surplus Materials, Supplies, and Equipment. Establish policies and procedures to sell or dispose of any materials, supplies, and equipment not needed for public use or that are obsolete, damaged beyond repair, or may become unsuitable for their intended use including establishing value thresholds for surplus. E. Purchase for Resale. May, by adopting a procedure approved by the city manager, authorize the purchase of materials, supplies, and equipment for resale from such enterprises as the golf course, or visitor's center to obtain the best possible price for the desired merchandise. Such purchases shall not be subject to the award limits noted in this chapter, provided funding is available within the appropriated budget. F. Bidder, Contractor and Vendor Lists and Catalogs. Develop and maintain any bidder's list, contractor's list or vendor's list necessary to the operation of this chapter and any other policies and procedures approved by the city manager consistent with this chapter. G. Recycled Product Procurement Policy. Establish and maintain procedures and specifications for the purchase of paper and paper products that give preference whenever feasible to the purchasing of recycled paper and paper products containing recycled paper. 3.30.050 General Purchasing Regulations, Policies, and Procedures A. Applicability of Chapter. The purchasing regulations contained in this Chapter 3.30 shall apply to the procurement of public projects, contractual services, professional services, and materials, supplies, and equipment required by the city. B. Purchasing Limits, Authorizations and Awards. The city manager may establish dollar limits for authorizations and awards, consistent with this chapter, by designated positions, for the procurement of public projects, contractual services, professional services, and materials, supplies, and equipment. C. Subsequent Contract Awards, Amendments, Extensions or Renewals. Notwithstanding anything herein to the contrary, the city manager or designated position shall not award a subsequent contract to the same individual or entity for the same or similar services on the same project, or amend, extend or renew such a contract, without obtaining the next highest approval authority (e.g., the city council for the city manager), when the award, amendment, extension or renewal will result in the city paying an aggregate amount in excess of the approval authority of the city manager to the individual Page 3 of 17 ORDINANCE NO. 1335 or entity in any given fiscal year. For purposes of this section, the phrase "same project" shall include an on -call or as -needed contract. D. Rejection of Bids and Proposals. At its discretion, the city council may reject any and all bids, proposals, quotations, or prices secured through procurement methods consistent with this chapter and take any other action deemed appropriate for the procurement of public projects, contractual services, professional services, and materials, supplies, and equipment. E. Appropriations Requirement. No contract or purchase shall be made unless the director of finance shall have first confirmed that there is an unencumbered appropriation in the fund against which such expenditure is to be charged sufficient to cover the amount of purchase or contract, unless in cases of emergency. F. Performance Bonds. The city shall have authority to require a performance bond before entering a contract in such an amount as it shall find reasonably necessary to protect the best interests of the city. G. Confidentiality of Proposals. Contracts let pursuant to proposals permitting negotiations shall be opened and their contents secured to prevent disclosure during the process of negotiating with competing proposers. If proposals are opened publicly, only the names of the proposers shall be revealed, while prices and other information concerning the proposals shall not be disclosed until negotiations are complete and before award is made by the city council. 3.30.060 Public Projects A. $50,000 or Less. Public projects of fifty thousand dollars ($50,000) or less may be awarded by the city manager pursuant to the Vendor Price Quotes Procedure (3.30.120) or any exception consistent with this chapter. Public projects of up to twenty- five thousand dollars ($25,000) may be awarded by a designated position, subject to the limits and authorizations established under 3.30.050 (B). The contract shall be awarded in the best interest of the city. B. More than $50,000. Public projects of more than fifty thousand dollars ($50,000) shall, except as otherwise provided in this chapter, be awarded by the city council pursuant to the formal bidding procedure (3.30.100) and to the lowest responsible bidder. The city council may reject any or all bids received, and may waive any irregularities in each bid received. C. Review and Approval of Plans and Specifications. The director of public works and city engineer, or their designees, are authorized to review and approve engineering plans for all public projects. This shall include the working details, drawings, plans and specifications prepared for every public project, including emergency and change order work, which may affect the design or operation of public improvements and which may bring into question the city's liability for dangerous conditions of public property. Page 4 of 17 ORDINANCE NO. 1335 D. Municipal Projects. Except on locally funded public projects of twenty-five thousand dollars ($25,000) or less when the project is for construction work, or fifteen thousand dollars ($15,000) or less when the project is for alteration, demolition, repair or maintenance work, all contractors performing work on city public projects shall be subject to California Prevailing Wage Law, codified at California Labor Code Section 1720 et seq., as it may be amended from time to time, or otherwise proscribed by law. The only limitation on the provisions of this subsection shall be in the event federal funding requirements supersede state prevailing wage laws. E. The city may, in its discretion for public projects, elect to follow the uniform construction cost methods set forth in Section 22030 of the Public Contracts Code. F. Applicability of State Provisions. 1. Sections 7100 through 7200 of the Public Contracts Code are incorporated herein as if fully set forth and shall be applicable to city contracts. 2. Section 22300 of the Public Contracts Code is incorporated herein as if fully set forth and shall be applicable to the retention of proceeds for city contracts. 3.30.070 Contractual Services A. $50,000 or Less. Contractual services of fifty thousand dollars ($50,000) or less may be awarded by the city manager pursuant to the Vendor Price Quotes Procedure (3.30.120), Best Competitive Value Procedure (3.30.140), or any exception consistent with this chapter. Contractual services of up to twenty-five thousand dollars ($25,000) may be awarded by a designated position, subject to the limits and authorizations established under 3.30.050 (B). B. More than $50,000. Contractual services of more than fifty thousand dollars ($50,000) shall be awarded by the city council pursuant to the Best Competitive Value Procedure (3.30.140) or any exception consistent with this chapter. C. Award. All contractual services shall be awarded in the best interest of the city, determined in the sole discretion of the city council, city manager, or designated position authorized to award the contract. 3.30.080 Professional Services A. $50,000 or Less. Professional services of fifty thousand dollars ($50,000) or less may be awarded by the city manager pursuant to the Proposal Procedure (3.30.130), Best Competitive Value Procedure (3.30.140), or any exception consistent with this chapter. Professional Services of up to twenty-five thousand dollars ($25,000) may be awarded by a designated position, subject to the limits and authorizations established under 3.30.050 (B). B. More than $50,000. Professional services of more than fifty thousand dollars ($50,000) shall be awarded by the city council pursuant to the Best Competitive Value Procedure (3.30.140) or any exception consistent with this chapter. Page 5 of 17 ORDINANCE NO. 1335 C. Award. Contracts for Professional Services shall be awarded to the consultant who will best serve the interests of the city, taking into account the demonstrated competence, professional qualifications and suitability for the project in general. The city may consider cost of professional services if determined to be a relevant factor under the circumstances, but cost shall not be the sole determining factor. 3.30.090 Materials, Supplies, and Equipment A. $50,000 or Less. Materials, supplies, and equipment of fifty thousand dollars ($50,000) or less may be awarded by the city manager pursuant to the Vendor Price Quotes Procedure (3.30.120), Best Competitive Value Procedure (3.30.140), or any exception consistent with this chapter. Materials, supplies, and equipment of up to twenty-five thousand dollars ($25,000) may be awarded by a designated position, subject to the limits and authorizations established under 3.30.050 (B). The contract shall be awarded in the best interest of the city. B. More than $50,000. Materials, supplies, and equipment of more than fifty thousand dollars ($50,000) shall, except as otherwise provided in this chapter, be awarded by the city council pursuant to formal bidding procedures and to the lowest responsible bidder. The city council may reject any or all bids received and may waive any irregularities in each bid received. 3.30.100 Formal Bidding Procedure A. Uses of Formal Bidding Procedure. This formal bidding procedure shall be used whenever formal bidding is required. B. Notice Inviting Formal Bids. Notice inviting formal bids shall be provided. Notices shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. At a minimum, the notice inviting formal bids shall: (1) describe the project; (2) state how to obtain more detailed information about the project; (3) state the date, time and place for the submission of sealed bids; and (4) include any other information required by state or local law, as determined by the city attorney. C. Published Notice. The notice shall be published at least ten (10) calendar days before the date of opening the bids in a newspaper of general circulation, the city's website, and on an electronic bulletin board or an Internet site that is a generally recognized source of local public works contract information. Notice shall be published at least twice not less than five days apart. D. Bidder's Security. All bids shall be presented under sealed cover accompanied by one of the following forms of bidder's security: (a) cash; (b) cashier's check made payable to the city; or (c) a bidder's bond executed by an admitted surety insurer made payable to the city. Such security shall be an amount at least equal to ten percent of the amount bid. No bid shall be considered unless security in the form above set forth is enclosed with the bid. Page 6 of 17 ORDINANCE NO. 1335 E. Forfeiture of Security. If the successful bidder fails to execute the contract, the bidder's security shall be forfeited to the city. The city council may on refusal or failure of the successful bidder to execute such contract award the contract to the next lowest responsible bidder. If the city council awards the contract to the second lowest bidder, the amount of the lowest bidder's security shall be applied by the city to the difference between the low bid and the second low bid. The surplus, if any, shall be utilized to offset any and all costs of preparation and printing of plans, specifications, estimates of cost, publication of notices, and any surplus remaining shall be returned to the lowest bidder who fails to execute the contract. F. Review of Bids. The city shall review all bids received for completeness, accuracy, responsiveness to the invitation and bid documents, and the city's experience with or knowledge of the qualification and reliability of each bidder and prepare a recommendation for the city council. The city council may waive any irregularities in each bid received. G. No bids. If no bids are received, the city council may have the project done in any manner that the city council may direct without further complying with this chapter. H. Award of Contract. The contract shall be awarded in accordance with all applicable sections. If two or more bids received are the same amount, the city council may decide which bid to accept and award. I. Rejection of Bids. The city council may, in its sole and absolute discretion, reject all bids presented. After all bids are rejected, the city council shall have the option of any of the following: Abandon the project; 2. Readvertise for bids in the manner described in this chapter; 3. Perform the work by employees of the city; or 4. Have the project done by force account, or procure materials, supplies, and equipment on the open market. J. Relief of Bidders. No bidder shall be relieved of its bid unless by consent of the city council nor shall any change be made in the bid because of mistake. Should the city council determine to consent, the requesting party should provide to the council in written form the facts that (a) a mistake was made, (b) written notice was given to the city of that mistake within five days, excluding Saturdays, Sundays, and state holidays, after the opening of the bids specifying how the mistake occurred, (c) the mistake made the bid materially different than it was intended to be, and (d) the mistake was made in filling out the bid and not due to error in judgment or to carelessness in inspecting the site of the work, or in reading the plans or specifications. Page 7 of 17 ORDINANCE NO. 1335 K. Bid Protests. Bidders may file a protest of a bid with the city. In order for a bidder's protest to be considered valid, the protest must: 1. Be filed in writing within five (5) calendar days after the bid opening date or any city determination or recommendation including city council action; 2. Clearly identify the specific irregularity or accusation; 3. Clearly identify the specific city staff determination or recommendation being protested; 4. Specify in detail the grounds for protest and the facts supporting the protest; and 5. Include all relevant, supporting documentation with the protest at time of filing. If the protest does not comply with each of these requirements, the city may reject the protest without further review. If the protest is timely and complies with the above requirements, the city shall review the _protest, any response from the challenged bidder(s), and all other relevant information. The city will provide a written decision to the protestor in a reasonable amount of time. The procedure and time limits set forth are mandatory and are the sole and exclusive remedy in the event of a bid protest. Failure to comply with these procedures shall constitute a failure to exhaust administrative remedies and a waiver of any right to further pursue the bid protest, including filing a Government Code Claim or legal proceeding. 3.30.110 Public Projects — Subletting and Subcontracting A. Preservation of Rights and Remedies. Nothing in this chapter limits or diminishes any rights or remedies, either legal or equitable, which: 1. An original or substituted subcontractor may have against the prime contractor, his or her successors or assigns; 2. The city may have against the prime contractor, his or her successors or assigns, including the right to take over and complete the contract. B. Contents of Bids or Offers. Any person making a bid or offer to perform a public project, shall, in his or her bid or offer, set forth: the name, the location of the place of business, the California contractor license number, and public works contractor registration number of each subcontractor who will perform work or labor or render service to the prime contractor in or about the construction of the public project, or a subcontractor licensed by the state of California who, under subcontract to the prime contractor,* specially fabricates and installs a portion of the public project according to detailed drawings contained in the plans and specifications, in an amount in excess of one-half of one percent of the prime contractor's total bid or, in the case of bids or offers for the Page 8 of 17 ORDINANCE NO. 1335 construction of streets or highways, including bridges, in excess of one-half of 1 percent of the prime contractor's total bid or ten thousand dollars ($10,000), whichever is greater. C. Failure to Specify or Specification of More Than One Subcontractor - Performance by Prime Contractor. If a prime contractor fails to specify a subcontractor or if a prime contractor specifies more than one subcontractor for the same portion of work to be performed under the contract in excess of one-half of one percent of the prime contractor's total bid, the prime contractor agrees that he or she is fully qualified to perform that portion himself or herself, and that the prime contractor shall perform that portion himself or herself. D. Prime Contractor Whose Bid is Accepted — Prohibitions. A prime contractor whose bid is accepted may not: 1. Substitute a person as subcontractor in place of the subcontractor listed in the original bid, except that the city may, except as otherwise provided in this section, consent to the substitution of another person as a subcontractor in any of the following situations: (a) When the subcontractor listed in the bid after having had a reasonable opportunity to do so fails or refuses to execute a written contract, when that written contract, based upon the general terms, conditions, plans and specifications for the project involved or the terms of that subcontractor's written bid, is presented to the subcontractor by the prime contractor; (b) When the listed subcontractor becomes bankrupt or insolvent; (c) When the listed subcontractor fails or refuses to perform his or her subcontract; (d) When the listed subcontractor fails or refuses to meet the bond requirements of the prime contractor as set forth in this section; (e) When the prime contractor demonstrates to the city, subject to the further provisions set forth in this section, that the name of the subcontractor was listed as the result of an inadvertent clerical error; (f) When the listed subcontractor is not licensed pursuant to the contractors license law; (g) When the city determines that the work performed by the listed subcontractor is substantially unsatisfactory and not in substantial accordance with the plans and specifications, or that the subcontractor is substantially delaying or disrupting the progress of the work; (h) When the listed subcontractor is ineligible to work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code; Page 9 of 17 ORDINANCE NO. 1335 (i) When the city determines that a listed subcontractor is not a responsible contractor; or 0) When there has been no bid shopping. Prior to approval of the prime contractor's request for the substitution, the city shall give notice in writing to the listed subcontractor of the prime contractor's request to substitute and of the reasons for the request. The notice shall be served by certified or registered mail to the last known address of the subcontractor. The listed subcontractor who has been so notified shall have five (5) working days within which to submit written objections to the substitution to the city. Failure to file these written objections shall constitute the listed subcontractor's consent to the substitution. If written objections are filed, the city shall give notice in writing of at least five (5) working days to the listed subcontractor of a hearing by the city on the prime contractor's request for substitution. 2. Permit a subcontract to be voluntarily assigned or transferred or allow it to be performed by anyone other than the original subcontractor listed in the original bid, without the consent of the city. 3. Other than in the performance of change orders causing changes or deviations from the original contract, sublet or subcontract any portion of the work in excess of one-half of one percent of the prime contractor's total bid as to which his or her original bid did not designate a subcontractor. E. Claim of Inadvertent Clerical Error in Listing Subcontractors —Notice — Objection —Hearing. The prime contractor as a condition to assert a claim of inadvertent clerical error in the listing of a subcontractor shall within two (2) working days after the time of the prime bid opening by the city give written notice to the city and copies of that notice to both the subcontractor he or she claims to have listed in error and the intended subcontractor who had bid to the prime contractor prior to bid opening. Any listed subcontractor who has been notified by the prime contractor in accordance with this section as to an inadvertent clerical error shall be allowed six (6) working days from the time of the prime bid opening within which to submit to the city and to the prime contractor written objection to the prime contractor's claim of inadvertent clerical error. Failure of the listed subcontractor to file the written notice within the six (6) working days shall be primary evidence of his or her agreement that an inadvertent clerical error was made. The city may, after a public hearing and in the absence of compelling reasons to the contrary, consent to the substitution of the intended subcontractor. Page 10 of 17 ORDINANCE NO. 1335 F. Subletting or Subcontracting Portion in Excess of Certain Percent of Prime Contractor's Total Bid to Which No Subcontractor was Designated in Original Bid. Subletting or subcontracting of any portion of the work in excess of one-half of one percent of the prime contractor's total bid as to which no subcontractor was designated in the original bid shall only be permitted in cases of public emergency or necessity, and then only after a finding reduced to writing as a public record of the city setting forth the facts constituting the emergency or necessity. G. Violations of Chapter and Contracts —Cancellation or Penalty —Notice and Hearing. A prime contractor violating any of the provisions of this section violates his or her contract and the city may exercise the option, in its own discretion, of (1) canceling his or her contract or (2) assessing the prime contractor a penalty in an amount of not more than ten (10) percent of the amount of the subcontract involved, and this penalty shall be deposited in the fund out of which the prime contract is awarded. In any proceedings under this section the prime contractor shall be entitled to a public hearing and to five (5) days' notice of the time and place thereof. 3.30.120 Vendor Price Quotes Procedure A. Vendor Price Quotes Procedure. Departmental staff shall solicit via posted notice, telephone request, mail, email, fax or any other reasonable solicitation method, price quotes documented in writing. If unable to obtain a minimum of three price quotes, staff shall document that reasonable efforts were made to obtain price quotes including, that a notice was posted for not less than seven (7) business days; that there were no other vendors to solicit price quotes from; or that they solicited to other vendors and one or more declined to provide a quote. In lieu of soliciting three price quotes, staff may elect to procure by formal bidding procedures. 3.30.130 Proposal Procedure A. Proposal Procedure. Departmental staff shall solicit via posted notice, telephone request, mail, email, fax or any other reasonable solicitation method, proposals documented in writing. If unable to obtain a minimum of three (3) proposals from professional service firms, staff shall document that reasonable efforts were made to obtain proposals including, that a notice was posted for not less than seven (7) business days; that there were no other professional service firms to solicit proposals from; or that they solicited to other professional service firms and one or more declined to provide a proposal. In lieu of soliciting three proposals, staff may elect to procure by formal bidding procedures. 3.30.140 Best Competitive Value Procedure A. Best Competitive Value Procedure. Best Competitive Value means a value determined by evaluation of criteria that may include, but is not limited to, price, features, functions, life -cycle costs, experience, and past performance. This includes, but is not limited to, Request for Qualifications ("RFQ") or Request for Proposals ("RIFF). A RFQ and/or RFP defines the terms, conditions, and specifications for goods or services required by the city. Page 11 of 17 ORDINANCE NO. 1335 3.30.150 Desian Build As an alternative to the formal bidding procedure set forth in this chapter, the city may, for public projects, cause to be prepared estimates and documents for a solicitation of bids on a design and build basis. "Design and build" means a method of procuring design and construction from a single source. The selection of the single source occurs before the development of complete plans and specifications. A. The request for submittal shall include all of the following: 1. A clear and precise description of the services to be provided and work to be performed; 2. A format for submittals to follow and the elements that shall be contained therein including the qualifications and relevant experience of the design professional and the contractor, the proposed cost of said project and the criteria that shall be used in evaluating the submittal including the base bid; and 3. The date on which the submittals are due and the timetable that will be used in reviewing and evaluating the submittals. B. In addition to the information required in subsection A of this section regarding the qualifications and experience, bidders shall submit their proposals with a construction bid price and all cost information in a separate sealed envelope. C. All submittals received prior to the closing time stated in the request for submittal shall be reviewed to determine that they meet the format requirements and the standards specified in the request for submittal. D. The contract shall be awarded to the bidder best meeting, in the sole judgment of the city council, the standards required and requested at said proposal. 3.30.160 Exceptions to Procurement Methods A. Minimum Procurement Levels. When the city manager establishes a minimum dollar threshold where the procurement of public projects, contractual services, professional services, and materials, supplies, and equipment are not subject to any of the required procurement methods in this chapter. The city shall work to procure these items in the best interest of the city. B. Disaster Relief. When in the case of a disaster, as further explained in Chapter 2.48, the requirements of this chapter do not apply. C. Emergency. While the need for occasional emergency purchases is recognized, the practice must be curtailed as much as possible by anticipating needs so that normal purchasing procedures may be used. 1. "Emergency" means a sudden, unexpected occurrence that poses a clear, eminent danger requiring immediate action to protect the health and safety of the Page 12 of 17 ORDINANCE NO. 1335 public, including to prevent or mitigate the loss or impairment of life, health, property or public services. 2. In the case of an emergency which requires the immediate procurement of public projects, contractual services, professional services or materials, supplies, and equipment, the city manager may authorize the purchasing officer to procure these items without regard to the provisions of this chapter; provided that a written public record shall be kept showing the nature of the emergency and the city manager's authorization to proceed under the provisions of this section. The city manager shall terminate the emergency action at the earliest possible date that conditions warrant. D. No Competitive Market. When the city council determines that a competitive market does not exist or that the city will not gain a competitive advantage by using the formal bidding procedure, the city may use any other procurement method. E. Competitive Bidding Already Completed. When the purchasing officer, with the approval of the city manager, determines that: (1) a competitive bid procedure has been conducted by another public agency, including, but not limited to, another local agency, the State through the California Multiple Award Schedule (CMAS), the federal government through the General Services Administration (GSA), or a joint powers agency, authority or alliance that procures competitive contracts; and (2) the price to the city is equal to or better than the price to that public agency. F. State Purchase. When the purchase is made on behalf of the city by the State Department of General Services. G. Mandated Expenditures. When expenditures are mandated by law or regulation, such as county booking fees, utilities, postage (for delivery charges through the U.S. Postal Service), waste disposal fees or other non-negotiable permit, use or application fees. H. Shared Services. When the city council or city manager authorizes the award and execution of contracts for services, subject to the dollar limits consistent with this chapter, that are provided by another government, public entity, joint powers authority, quasi -governmental entity, special district or non-profit entity that will maximize efficiency, increase cost effectiveness, increase range of services, minimize duplication, provide training or education encourage collaboration or standardize efforts, or leverage government resources. I. Best Interest of City. When the city council or city manager authorizes the award and execution of contracts, subject to the dollar limits consistent with this chapter, without competitive bidding provided that the city council or city manager finds that such award is in the best interest of the city, or of the public health, safety, and welfare. Page 13 of 17 ORDINANCE NO. 1335 J. Sole Source. When the city manager determines that there is only one source that provides the needed public project, contractual service, professional service or materials, supplies, and equipment or a product to ensure compatibility with other city products and equipment, the city shall work to procure these items in the best interest of the city. K. Authorized Vendor List. The City or any of its departments may create an open vendor list for the purposes of providing recurring and routine contractual services, professional services, and materials, supplies, and equipment for the fiscal year. Prices from each vendor shall be obtained in a manner to ensure competitive pricing, in the best interest of the city. The threshold for each vendor may be determined by the city council, at the recommendation of the city manager. A vendor list may be approved by the city council as often as necessary but not less than once every twenty four (24) months. L. Purchase for Recurring Charges. By adopting a procedure approved by the city manager, subject to the dollar limits consistent with this chapter, an agent, one who has authority from the city to act on its behalf, contracted by the City may purchase contractual services, professional services, and materials, supplies, and equipment for ongoing cleanup, maintenance and different routine items that are of a continuing nature provided the agent's contract allows for such purchases. M. Otherwise Authorized. When otherwise authorized by this chapter or applicable law. 3.30.170 Change Orders A. The city manager or his or her designee shall have authority to approve change orders for public projects, contractual services, professional services, and materials, supplies, and equipment previously awarded by the city manager, provided that change orders aggregated with the original contract do not exceed fifty thousand dollars ($50,000), subject to an unencumbered appropriation in the fund against which such expenditure is to be charged. During the award of a contract by the city council, the council may give the city manager the authority to approve change orders, specific to that contract, based on either a percentage of the contract or a specific dollar amount. If no specific authority is given by the city council, the city manager may approve change orders for a city council awarded contract subject to the dollar limits consistent with this chapter, provided such change orders are within the approved contingency. B. Change orders in excess of the city manager's authority may be approved by the city manager and • submitted to city council for ratification under the following circumstance: 1. The failure to immediately issue a change order may result in significant project cost increases or an unacceptable project delay due to work stoppage or other inefficiencies; Page 14 of 17 ORDINANCE NO. 1335 2. A special meeting or a regularly scheduled meeting of the city council is not scheduled within a reasonable period of time to sufficiently remedy the problem; and 3. Funding for the change order is currently available within the appropriated budget. 3.30.180 Local Business Preference Program A. Statement of Policy. It is the policy of the city to promote employment and business opportunities for local residents and firms on all contracts and give preference to local residents, workers, businesses, contractors, and consultants to the extent consistent with the law and interests of the public. B. Local Preference in Purchasing. In the bidding of, or letting for procurement of, supplies, materials, and equipment, as provided in this chapter, the purchasing officer may give a preference to local businesses in making such purchase or awarding such contract in an amount not to exceed five percent of the local business' total bid price. Total bid price shall include not only the base bid price but also adjustments to that base bid price resulting from alternates requested in the solicitation. In order for a local business to be eligible to claim the preference, the business must request the preference in the solicitation response and provide a copy of its current business license from a jurisdiction in the Coachella Valley. C. Local Preference in Professional Services. In awarding contracts for professional services, including consultant services, preference to local business shall be given whenever practicable pursuant to this chapter consistent with the statement of policy in subsection A. The contractor or consultant will also, to the extent legally possible, solicit applications for employment and proposals for subcontractors and sub -consultants for work associated with the proposed contract from local residents and firms as opportunities occur and hire qualified local residents and firms whenever feasible. In order for a local business to be eligible to claim the preference, the business must request the preference in the solicitation response and provide a copy of its current business license from a jurisdiction in the Coachella Valley. D. Exceptions to Local Business Preference Policy. The preference set forth in this section shall not apply to the following purchases or contracts: 1. Goods or services provided under a cooperative purchasing agreement; 2. Purchases or contracts which are funded in whole or in part by a governmental entity and the laws, regulations, or policies governing such funding prohibit application of that preference; 3. Purchases made or contracts let under emergency or noncompetitive situations; Page 15 of 17 ORDINANCE NO. 1335 4. Purchases with an estimated cost of twenty-five thousand dollars or more; 5. Application of the local business preference to a particular purchase, contract, or category of contracts for which the city council is the awarding authority may be waived at the city council's discretion; 6. Public works projects; 7. Bids that are nonresponsive. E. Quality and Fitness. The preferences established in this section shall in no way be construed to inhibit, limit or restrict the right and obligation of the purchasing officer to compare quality and fitness for use of supplies, materials, equipment, and services proposed for purchase and compare the qualifications, character, responsibility, and fitness of all persons, firms, or corporations submitting bids or proposals. In addition, the preferences established in this section shall in no way be construed to prohibit the right of the city council or the purchasing officer from giving any other preference permitted by law or this chapter. F. Verification of Local Business Preference Eligibility. Any vendor or consultant claiming to be a local business, shall so certify in the bid. The purchasing officer shall not be required to verify the accuracy of any such certifications, and shall have sole discretion to determine if a vendor or consultant meets the definition of "local business." G. Enforcement. 1. The information furnished by each bidder requesting a local business preference shall be under penalty of perjury. 2. No person or business shall knowingly and with intent to defraud, fraudulently obtain, retain, attempt to obtain or retain, or aid another in fraudulently obtaining or retaining or attempting to obtain or retain certification as a local business for the purpose of this section. 3. No person or business shall willfully and knowingly make a false statement with the intent to defraud, whether by affidavit, report, or other representation, to a city official or employee for the purpose of influencing the certification or denial of certification of any entity as a local business. 4. A business which has obtained city certification as a local business by reason of having furnished incorrect supporting information or by reason of having withheld information, and which knew or should have known the information furnished was incorrect or the information withheld was relevant to its request for certification, and which by reason of such certification has been awarded a contract to which it would not otherwise have been entitled, shall: Page 16 of 17 ORDINANCE NO. 1335 (a) Pay to the city any difference between the contract amount and what the city's costs would have been if the contract had been properly awarded; (b) In addition to the amount described in subsection (G)(4)(a), be assessed a penalty in an amount of not more than ten percent of the amount of the contract involved; and (c) Be subject to debarment from future award of contracts from the city. 5. The penalties identified in subsection (G)(4) shall also apply to any business that has previously obtained proper certification and, as a result of a change in its status would no longer be eligible for certification, fails to notify the purchasing officer of this information prior to responding to a solicitation or accepting a contract award. SECTION 2. That Chapter 3.32 is hereby repealed in its entirety. SECTION 3. The City Clerk of the City of Palm Desert, California, shall certify the adoption of the Ordinance and shall cause the same to be published once in The Desert Sun, a newspaper of general circulation, published and circulated within the City of Palm Desert, California. It shall be in full force and effect thirty (30) days after its adoption. PASSED, APPROVED AND ADOPTED this 8th day of March, 2018 by the City Council of the City of Palm Desert, California, by the following vote, to wit: AYES: HARNIK, KELLY, NESTANDE, WEBER, and JONATHAN NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: 4R4HELL LE4KL-A"6S , CITY CLERK CITY OF PALM DESERT, CALIFORNIA qEY Page 17 of 17