ACTION:
____________________________
Clerk/Secretary
Department: City Attorney Item No: C8
Prepared by: Darold Pieper, City Attorney Meeting Date: April 26, 2022 Approved by: Patrick Johnson, City Manager Agenda Location: Consent Calendar SUBJECT: REVISIONS TO PURCHASING SYSTEM FISCAL LIMITS
RECOMMENDATION: Introduce and adopt City Council Ordinance No. 2022- , entitled “An Ordinance of the City Council of the Chartered City of Vista, California, amending Chapter 3.08 of the Vista Municipal Code Relating to the Purchasing System”.
CORRELATION TO CITY COUNCIL GOALS: Routine operational item not directly corresponding to a specific City Council goal.
PRIOR ACTION: On June 26, 2007, adopted City Council Ordinance No. 2007-9 repealing and replacing Chapter 3.08 (Vote 5-0).
STATEMENT ON THE SUBJECT: In 2007, the City Council amended the Vista Municipal Code (VMC) by adopting an updated purchasing system with new fiscal limits for the award and modification of contracts among other changes. Because of the significant increases in the cost of living and associated contracting costs, it is proposed that the 2007 fiscal limits be adjusted to reflect those increased costs.
The proposed updated fiscal limits for contract solicitation, approvals, and modifications are consistent with or less than those of adjacent cities. The revised fiscal limits also account for contracts that span multiple fiscal years by applying those fiscal limits per fiscal year rather than in the aggregate. In addition, fiscal limits for delegations and donations are also updated. The proposed changes are detailed in Exhibit 1 and the revisions are identified in Exhibit 2.
FISCAL IMPACT: There is no direct fiscal impact associated with the staff recommendation.
EXHIBITS:
1.City Council Ordinance No. 2022- , entitled “An Ordinance of the City Council of the Chartered City of Vista, California, Amending Chapter 3.08 of the Vista Municipal Code Relating to the Purchasing System
2.Redline version of VMC Section 3.08, Purchasing System AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
04/26/2022 C8 Page 1 of 9
Approved above recommendation. Introduced and adopted City Council Ordinance No. 2022-5.
Vote: 5-0
00106577 2
ORDINANCE NO. 2022-
AN ORDINANCE OF THE CITY COUNCIL OF THE CHARTERED CITY OF VISTA, CALIFORNIA, AMENDING CHAPTER 3.08 OF THE VISTA
MUNICIPAL CODE RELATING TO THE PURCHASING SYSTEM
The City Council of the City of Vista does ordain as follows:
1.Findings. The City Council hereby finds and declares the following:
A.This ordinance is enacted by the City Council pursuant to its authority under the Charter of the City of Vista and Article 11, Section 7 of the California Constitution, and Section 54203 of the California Government Code.
2.Code Amendment
A.Section 3.08.030.G of the Vista Municipal Code is amended to read as follows:
“G. Delegations by Purchasing Officer. The Purchasing Officer, with approval of the City Manager, may authorize, in writing, any department to purchase specified supplies, services and equipment of estimated amounts of less than $30,000 independently of the Purchasing Department. Such purchases shall be made in conformity with the procedures established by this chapter and shall further require periodic reports from the agency on the purchases made under such written authorization.”
B.Sections 3.08.040.A.1–2 of the Vista Municipal Code is amended to read as follows:
“A. Circumstances Where Formal Bidding is Allowed or Required.
1.Contracts for purchases of supplies, equipment, or services. (a)Purchases with a value of $150,000 or less may be made using the formal bidding process if authorized by the Purchasing Officer, in his or her discretion. (b) Purchases with an anticipated value exceeding $150,000 must utilize the formal bidding requirements of this section unless this chapter authorizes use of informal bidding or alternative bidding as provided in Sections 3.08.050 or 3.08.060.
2.Public projects. (a) Public projects with a value of $150,000 or less, appropriations for which have been approved by the City Council, may be performed by the employees of the City or its agencies by force account, or by negotiated contract or purchase order approved by the City Manager. (b) Public projects in excess of $150,000 shall be let by the formal bidding procedures in this section unless the City Council authorizes an alternative procedure for awarding the contract prior to the receipt of bids.”
C.Section 3.08.050.A of the Vista Municipal Code is amended to read as follows:
“A. Circumstances Where Informal Bidding is Allowed or Required. The informal bidding procedures may be used for any of the following purchases of supplies, equipment, or services:
04/26/2022 C8 Page 2 of 9EXHIBIT 1
ORDINANCE NO. 2022-
CITY COUNCIL OF THE CHARTERED CITY OF VISTA
PAGE 2
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1.When the supplies, equipment, or services have an
anticipated value of between $15,000 and $150,000;
2.When a prior solicitation of bids occurred using the formal bidding process, but the solicitation yielded: (a) no bids or no bids that were responsive and responsible; (b) bids which substantially exceeded the City’s estimated cost for the purchase; or (c) alternative bids from one or more vendors made evaluation of the bid difficult.
3.When the contract value exceeds $150,000 and the City Council: (a) has determined, by resolution, that the public interest will be served by using informal bidding for a specified contract or a specified class of contracts; and (b) the supplies, equipment, or services fall within the designated class of contracts.
4.When the contract value exceeds $150,000, and: (a) the Purchasing Officer, in writing, has determined that use of the formal bidding process would serve no useful purpose; and (b) that written determination is provided to the City Council a minimum of seven calendar days before the contract is executed by the City Manager.”
D.Sections 3.08.090.A–C of the Vista Municipal Code is amended to read as follows:
“A. Purchase Contracts Executed and Approved by City Council.
Except in emergency situations pursuant to Section 3.08.060.E and situations involving applicant-funded environmental assessments under Section 15.04.40.D, all contracts for supplies, services, equipment, short term leases, and public projects with an estimated value in excess of $150,000 shall be awarded by the City Council.
B.Purchase Contracts Executed by City Manager. Contracts for supplies, services, equipment, short term leases, and public projects with an estimated value of $150,000 or less, and contracts authorized by Sections
3.08.060.E or 15.04.40 shall be executed by the City Manager.
C.Contracts Executed by City Attorney. The City Attorney may execute contracts of up to $150,000 when the contract is for, or is in support of, legal services.”
E.Sections 3.08.100.A–B of the Vista Municipal Code is amended to read as follows:
“A. Contracts Originally Approved by the City Council. Contracts originally approved by the City Council may be modified or amended in writing under either of the following circumstances:
1.The City Manager is authorized to approve written contract amendments or written change orders when: (a) the value of the amendments or change orders, in aggregate, do not exceed the greater of $50,000 or ten percent of the aggregate value of the original contract; and (b) the contract amendment or change order is executed by contractor and the City Manager.
2.The City is authorized to approve written amendments or written change orders in amounts greater than provided in Subparagraph 1, when all of the following apply: (1) the City Council, by a resolution or the terms of the contract, authorized the City Manager to execute amendments or modifications with a value that at least equals the amount of the value of the change order or 04/26/2022 C8 Page 3 of 9
ORDINANCE NO. 2022-
CITY COUNCIL OF THE CHARTERED CITY OF VISTA
PAGE 3
00106577 2
modification; and (2) such authorization extends to the subject matter of the proposed amendment or change order.
3.The City Attorney may act instead of the City Manager under this section when the contract is for, or is in support of, legal services.
B.Contracts Originally Approved by the City Manager. The City Manager may approve amendments to contracts that the City Manager approved pursuant to Section 3.08.090.B unless the amendment causes the aggregated value of the contract to exceed $200,000.”
F.Section 3.08.120 of the Vista Municipal Code is amended to read as follows:
“For each contract, the dollar limits identified in this chapter (for both the authority of the City Manager and the method of contract solicitation) shall be the greater of: (1) the total dollar amount per fiscal year of the City’s commitment to pay a contractor; (2) the total dollar amount per fiscal year of a contractor’s commitment to pay the City; or (3) as applied to donations of property only, the estimated fair market value of property subject to acquisition or disposal. For the purpose of determining dollar limits pursuant to this chapter, a “commitment” to pay includes the amount designated in a contract as a “not to exceed” amount or an estimated payment amount, even though the City’s actual contractual obligation is based on actual hours performed at an hourly rate. The City will not split or separate into smaller contracts, any contract for the purpose of evading the dollar amounts identified in this chapter.”
G. Section 3.08.140 of the Vista Municipal Code is amended to read as follows:
“A. Donations of Property; City as Donor. Supplies, materials and equipment with an estimated value of $20,000 or less, may be donated or sold by the City for less than fair market value to local civic organizations or for charitable purposes which provide a benefit to persons within the Vista region. Authorization for the sale or donation may be provided by the City Manager when the City Manager determines that such a disposition would best serve the City’s interests.
Such donations or the discounted sale of items valued in excess of $20,000 must be approved by resolution of the City Council.
B.Donations of Property; City as Recipient. The City Manager, on behalf of the City, may accept donations of personal property with a value of up to $50,000. Donations of personal property with a larger value shall be accepted by the City Council. All donations of personal property shall be evidenced by a document signed by a person authorized to make the donation, and where required, a contract. Donations shall only be accepted in a manner consistent with any applicable laws and any applicable policies adopted by the City Council.
Donations of real property shall be considered and accepted by the City Council in accordance with California law.”
H.Section 3.08.150.M of the Vista Municipal Code is amended to read as follows:
“M. When the estimated value of the supplies, services or equipment purchased is less than $50,000; or in the case of a public project the estimated value of the public project is $150,000 or less.”
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ORDINANCE NO. 2022-
CITY COUNCIL OF THE CHARTERED CITY OF VISTA
PAGE 4
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3.Effective Date. This Ordinance shall be effective on the thirty-first day following the date of its adoption.
4.Adoption. INTRODUCED AND ADOPTED at a meeting of the City Council of the City of Vista held on April 26, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
APPROVED AS TO FORM:
DAROLD PIEPER, CITY ATTORNEY
By:
APPROVED
Darold Pieper
20220329135914
JUDY RITTER, MAYOR
ATTEST:
KATHY VALDEZ, CITY CLERK
By:
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Vista Municipal Code
00106579 23.08 (1) (Vista 5/28/21)
Section 3.08.010 Purpose; Compliance Required
C.All fiscal limits in this chapter expressed in dollar values shall be interpreted to refer to dollar values per fiscal year.
Section 3.08.030 Purchasing Officer
G. Delegations by Purchasing Officer. The Purchasing Officer, with approval of the City Manager, may authorize, in writing, any department to purchase specified supplies, services and equipment of estimated amounts of less than $15,00030,000 independently of the Purchasing Department. Such purchases shall be made in conformity with the procedures established by this chapter, and shall further require periodic reports from the agency on the purchases made under such written authorization.
Section 3.08.040 Formal Bidding Procedure
A.Circumstances Where Formal Bidding is Allowed or Required.
1.Contracts for purchases of supplies, equipment, or services. (a) Purchases with a value of $75,000150,000 or less may be made using the formal bidding process if authorized by the Purchasing Officer, in his or her discretion. (b) Purchases with an anticipated value exceeding $75,000150,000 must utilize the formal bidding requirements of this section, unless this chapter authorizes use of informal bidding or alternative bidding as provided in Sections 3.08.050 or 3.08.060.
2.Public projects. (a) Public projects with a value of $75,000150,000 or less, appropriations for which have been approved by the City Council, may be performed by the employees of the City or its agencies by force account, or by negotiated contract or purchase order approved by the City Manager. (b) Public projects in excess of $75,000150,000 shall be let by the formal bidding procedures in this section unless the City Council authorizes an alternative procedure for awarding the contract prior to the receipt of bids.
Section 3.08.050 Informal Bidding Procedure
A.Circumstances Where Informal Bidding is Allowed or Required. The informal bidding procedures may be used for any of the following purchases of supplies, equipment, or services:
1.When the supplies, equipment, or services have an anticipated value of between $15,000 and $75,000150,000;
2.When a prior solicitation of bids occurred using the formal bidding process, but the solicitation yielded: (a) no bids or no bids that were responsive and responsible; (b) bids which substantially exceeded the City’s estimated cost for the purchase; or (c) alternative bids from one or more vendors making made evaluation of the bids difficult.
3.When the contract value exceeds $75,000150,000 and the City Council:
(a)has determined, by resolution, that the public interest will be served by using informal bidding for a specified contract or a specified class of contracts; and (b) the supplies, equipment, or services fall within the designated class of contracts.
4.When the contract value exceeds $75,000150,000, and: (a) the Purchasing Officer, in writing, has determined that use of the formal bidding process would serve no useful purpose; and (b) that written determination is provided to the City Council a minimum of seven calendar days before the contract is executed by the City Manager. 04/26/2022 C8 Page 6 of 9EXHIBIT 2
Vista Municipal Code
00106579 23.08 (2) (Vista 5/28/21)
Section 3.08.090 Award and Execution of Contracts
A. Purchase Contracts Executed and Approved by City Council. Except in emergency situations pursuant to Section 3.08.060.E and situations involving applicant-funded environmental assessments under Section 15.04.40.D, all contracts for supplies, services, equipment, short term leases, and public projects with an estimated value in excess of $75,000150,000 shall be awarded by the City Council.
B. Purchase Contracts Executed by City Manager. Contracts for supplies, services, equipment, short term leases, and public projects with an estimated value of $75,000150,000 or less, and contracts authorized by Sections 3.08.060.E or 15.04.40 shall be executed by the City Manager.
C. Contracts Executed by City Attorney. The City Attorney may execute contracts of up to $75,000150,000 when the contract is for, or is in support of, legal services.
Section 3.08.100 Modifications of Awarded Contracts
A. Contracts Originally Approved by the City Council. Contracts originally approved by the City Council may be modified or amended in writing under either of the following circumstances:
1. The City Manager is authorized to approve written contract amendments or written change orders when: (a) the value of the amendments or change orders, in aggregate, do not exceed the greater of $25,00050,000 or ten percent of the aggregate value of the original contract; and (b) the contract amendment or change order is executed by contractor and the City Manager.
2. The City is authorized to approve written amendments or written change orders in amounts greater than provided in Subparagraph 1, when all of the following apply: (1) the City Council, by a resolution or the terms of the contract, authorized the City Manager to execute amendments or modifications with a value that at least equals the amount of the value of the change order or modification; and (2) such authorization extends to the subject matter of the proposed amendment or change order.
3. The City Attorney may act instead of the City Manager under this section when the contract is for, or is in support of, legal services.
B. Contracts Originally Approved by the City Manager. The City Manager may approve amendments to contracts that the City Manager approved pursuant to Section
3.08.090.B unless the amendment causes the aggregated value of the contract to exceed $100,000200,000.
Section 3.08.120 Calculation of Dollar Amounts
For each contract, the dollar limits identified in this chapter (for both the authority of the City Manager and the method of contract solicitation) shall be the greater of: (1) the total dollar amount per fiscal year of the City’s commitment to pay a contractor; (2) the total dollar amount per fiscal year of a contractor’s commitment to pay the City; or (3) as applied to donations of property only, the estimated fair market value of property subject to acquisition or disposal. For the purpose of determining dollar limits pursuant to this chapter, a “commitment” to pay includes the amount designated in a contract as a “not to exceed,” amount or an estimated payment amount, even though the City’s actual contractual obligation is based on actual hours performed at an hourly rate. The City will not split or separate into smaller contracts, any contract for the purpose of evading the dollar amounts identified in this chapter.
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Vista Municipal Code
00106579 23.08 (3) (Vista 5/28/21)
Section 3.08.140 Donations
A. Donations of Property; City as Donor. Supplies, materials and equipment with an estimated value of $10,00020,000 or less, may be donated or sold by the City for less than fair market value to local civic organizations or for charitable purposes which provide a benefit to persons within the Vista region. Authorization for the sale or donation may be provided by the City Manager when the City Manager determines that such a disposition would best serve the City’s interests. Such donations or the discounted sale of items valued in excess of $10,00020,000 must be approved by resolution of the City Council.
B. Donations of Property; City as Recipient. The City Manager, on behalf of the City, may accept donations of personal property with a value of up to $25,00050,000. Donations of personal property with a larger value shall be accepted by the City Council. All donations of personal property shall be evidenced by a document signed by a person authorized to make the donation, and where required, a contract. Donations shall only be accepted in a manner consistent with any applicable laws and any applicable policies adopted by the City Council.
Donations of real property shall be considered and accepted by the City Council in accordance with California law.
Section 3.08.150 Exemptions - Certain Supplies, Services and Equipment
Contracts for supplies, services, equipment, and public projects may be approved without complying with the bidding process of this chapter when the contract is for any of the following:
A. Utility services and related charges.
B. Contracts for governmental or proprietary services provided by another governmental entity or quasi-public entity.
C. Real property purchases, leases, and related title and escrow fees.
D. Transportation and freight charges when not specifically indicated on a purchase order.
E. Insurance and bond premiums.
F. Advertisements in newspapers or other periodicals.
G. Works of art.
H. Professional service contracts (e.g., environmental consultants, outside legal services) which are completely funded by private development applicants.
I. Purchases of books, periodicals, newspapers, trade journals and other publications.
J. Purchases of gasoline, oil, or other automobile care products in connection with the immediate use or emergency repair of City vehicles.
K. Purchase of used equipment, which in the opinion of the City Manager, is satisfactory for the work of the City.
L. Membership dues in professional organizations, conventions, training, travel arrangements, including hotels, car rentals, and air fare.
M. When the estimated value of the supplies, services or equipment purchased is less than $15,00050,000; or in the case of a public project the estimated value of the public project is $75,000150,000 or less.
N. When the commodity or service can be obtained from only one vendor.
O. When services are involved which will be performed entirely by City forces.
P. When the City Manager, after consultation with the City Attorney, determines in writing that special circumstances would cause the implementation of the informal or formal bidding process infeasible, impractical, or otherwise not in the best interest of the City. The basis for the City Manager’s determination shall be set forth in a certificate executed by the City Manager and shall be a public record.
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Vista Municipal Code
00106579 23.08 (4) (Vista 5/28/21)
Q. When the City has solicited bids in accordance with this chapter without getting any qualified responses and determines that the services, equipment, or supplies are still needed.
R. When the City Council, by a four-fifths vote, finds that the City’s interests will be served by waiving the requirements of this chapter for an individual contract; S. When the award of contract involves a public project as defined in this chapter.
T. When a specialized bidding process is required by applicable state or federal law and the City abides by that bidding process.
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