Loading...
HomeMy WebLinkAboutOrdinance No. 2852-2015u Sponsored by: Council Members Molloy and Knackstedt CITY OF KENAI LANCE NO. 2852 -2015 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, REPEALING AND REENACTING KENAI MUNICIPAL CODE CHAPTER 7.15- PURCHASES AND SALES, TO EXPAND PUBLIC SOLICITATION REQUIREMENTS, REDEFINE PROFESSIONAL SERVICES, DEFINE MANAGEMENT SERVICES, REORGANIZE THE CHAPTER, PROVIDE AN APPEALS PROCESS, AND MAKE OTHER MATERIAL AND HOUSEKEEPING CHANGES AND AMENDING CHAPTER 7.25 -CITY BUDGET, TO INCLUDE SETTING FEE SCHEDULES. WHEREAS, Kenai Municipal Code Chapter 7.15- Purchases and Sales, determines the City's process for procuring goods and services as well as sales of surplus items; and, WHEREAS, the Chapter has not been significantly reviewed and revised in at least ten years and is in need of review and revisions; and, WHEREAS, increasing certain purchasing limits is warranted in light of inflation and other factors since the last time the limits were established; and, WHEREAS, codifying the process for purchasing services and supplies for less than $35,000 provides for standardized purchasing methodology and allows the City Manager to implement a stricter policy that can be administratively controlled; and, WHEREAS, requiring a competitive process for soliciting professional services over $35,000 provides a fair process open to all qualified proposers; and, WHEREAS, providing a new definition for professional services that is more consistent with other municipal and state definitions is in the City's best interest; and WHEREAS, providing a proposal process for management services allows for a competitive process and selection of third parties based as management services contractors based on considerations other than just the lowest cost; and WHEREAS, providing an innovative competitive procurement process may be advantageous to the City for the procurement of new or unique requirements of the City, new technologies, or to achieve the best value; and WHEREAS, requiring local preferences to be applied when available pursuant to funding sources and procurement methodology clarifies the City's position to encourage transactions with local businesses; and, New Tent Underlined; ]DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 2 of 20 WHEREAS, eliminating former KMC 7.15.080 - Telephone polls - Authority, procedure, recordation, is appropriate as it is no longer a utilized process and is inconsistent with other requirements of code; and, WHEREAS, moving KMC 7.15.100- Setting fee schedules, to KMC Chapter 7.25 -City Budget, is appropriate as it is not a topic consistent with the intent and purpose of the chapter dealing with purchases and is consistent with the budget process; and, WHEREAS, codifying an appeals process for bids and proposals provides consistency and fairness to the City and the public; and, WHEREAS, making other housekeeping and organizational changes to the Chapter will make it easier to use and understand. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a code ordinance. Section 2. Amendment of Chapter 7.15 of the Kenai Municipal Code: That Kenai Municipal Code, Chapter 7.15- Purchases and Sales, is hereby amended as follows: [7.15.010 "CONTRACTUAL SERVICES" DEFINED. CONTRACTUAL SERVICES," FOR THE PURPOSE OF THIS CHAPTER, SHALL MEAN SERVICES PERFORMED FOR THE CITY BY PERSONS NOT IN THE EMPLOYMENT OF THE CITY, AND MAY INCLUDE THE USE OF EQUIPMENT OR THE FURNISHING OF COMMODITIES IN CONNECTION WITH SAID SERVICES UNDER EXPRESS OR IMPLIED CONTRACT. CONTRACTUAL SERVICES SHALL INCLUDE: TRAVEL, FREIGHT, EXPRESS, PARCEL POST, POSTAGE, TELEPHONE, TELEGRAPH, UTILITIES, RENTS, PRINTING AND BINDING, REPAIRS, ALTERATIONS, AND MAINTENANCE OF BUILDINGS, EQUIPMENT, STREETS, BRIDGES, AND OTHER PHYSICAL FACILITIES OF THE CITY, AND OTHER SERVICES PERFORMED FOR THE CITY BY PERSONS NOT IN THE EMPLOYMENT OF THE CITY. 7.15.020 MADE BY WHOM. ALL PURCHASES OF SUPPLIES, MATERIALS, EQUIPMENT, AND CONTRACTUAL SERVICES FOR THE OFFICES, DEPARTMENTS, AND AGENCIES OF THE CITY GOVERNMENT SHALL BE MADE BY THE CITY ADMINISTRATOR OR BY OTHER CITY PERSONNEL IN ACCORDANCE WITH PURCHASE AUTHORIZATIONS ISSUED BY THE CITY ADMINISTRATOR. 7.15.030 WHEN PRIOR APPROVAL BY COUNCIL IS REQUIRED. (A) EVERY CONTRACT FOR, OR PURCHASE OF, FIFTEEN THOUSAND DOLLARS ($15,000.00) OR MORE OF SUPPLIES, MATERIALS, EQUIPMENT, OR CONTRACTUAL SERVICES SHALL REQUIRE THE PRIOR APPROVAL OF THE COUNCIL. THE ONLY EXCEPTIONS WILL BE: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 3 of 20 (1) UTILITIES BILLS (ELECTRICITY, GAS, FUEL, AND TELEPHONE); (2) CITY'S ROUTINE INVESTMENT PURCHASING; (3) MONTHLY PAYMENTS FOR PAYROLL DEDUCTIONS (I.E., INCOME TAX, F.I.C.A., RETIREMENT, AND FRINGE BENEFITS), INCLUDING BOTH EMPLOYER'S AND EMPLOYEE'S SHARE; (4)AUTHORIZED DEBT; (5) MONTHLY CONTRACTED JANITORIAL SERVICE. (B) ALL SUCH EXCEPTIONS WILL BE PAID WHEN THEY FALL DUE AND PAYMENTS WILL BE RATIFIED BY COUNCIL AT THE NEXT REGULAR COUNCIL MEETING. 7.15.040 COMPETITIVE BIDDING. (A) BEFORE ANY PURCHASE OF, OR CONTRACT FOR, SUPPLIES, MATERIALS, EQUIPMENT, OR CONTRACTUAL SERVICES ARE MADE, THE CITY PURCHASING AUTHORITY SHALL SUBMIT TO AT LEAST THREE (3) PERSONS, FIRMS, OR CORPORATIONS DEALING IN AND ABLE TO SUPPLY THE SAME, OR TO A SMALLER NUMBER IF THERE ARE NOT THREE DEALING IN AND ABLE TO SUPPLY THE SAME, A REQUEST FOR QUOTATION (OR INVITATION TO BID) AND SPECIFICATIONS TO GIVE THEM OPPORTUNITY TO BID; AND /OR PUBLISH NOTICE OF THE PROPOSED PURCHASE IN A NEWSPAPER OF GENERAL CIRCULATION WITHIN THE CITY. (B) THE PURCHASE OF, OR CONTRACT FOR, SUPPLIES, MATERIALS, EQUIPMENT, OR CONTRACTUAL SERVICES SUBJECT TO SUBSECTION (A), SHALL BE AWARDED TO THE MOST RESPONSIBLE BIDDER PURSUANT TO SUBSECTION (F). (C) WHEN SUCH PURCHASES ARE TO BE MADE FROM FEDERAL OR STATE GRANT FUNDS, ANY AND ALL CONDITIONS, PROVISIONS, OR REQUIREMENTS WHICH MAY BE NECESSARY TO COMPLY WITH THE REQUISITE FEDERAL OR STATE LAWS, RULES, OR REGULATIONS WITH RESPECT TO SUCH GRANTS MAY BE INSERTED IN THE BID AND CONTRACT DOCUMENTS, AND WILL BE COMPLIED WITHIN THE AWARD OF THE BID FOR SUCH PURCHASES. (D) ALL BIDS SHALL BE SEALED AND SHALL BE OPENED IN PUBLIC AT A DESIGNATED TIME AND PLACE. (E) THE PURCHASING AUTHORITY MAY REPEATEDLY REJECT ALL BIDS AND AGAIN MAY SUBMIT TO THE SAME OR OTHER PERSONS, FIRMS, OR CORPORATIONS THE REQUEST FOR QUOTATION (OR INVITATION TO BID) AND /OR AGAIN PUBLISH NOTICE OF THE PROPOSED PURCHASE. (F) THE CITY PURCHASING AUTHORITY SHALL PURCHASE FROM THE LOWEST RESPONSIBLE BIDDER, BASING A DETERMINATION ON RESPONSIBILITY OF THE BIDDER ON THE FOLLOWING FACTORS: ADHERENCE TO THE BID SPECIFICATIONS, QUALITY, PROPOSED TERMS OF DELIVERY, ANY ADDITIONAL COST TO THE CITY THAT WOULD BE INCURRED DUE TO LOCATION OF THE New Text Underlined; ]DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 4 of 20 BIDDER, PERFORMANCE RECORD, FINANCIAL CAPABILITY, AND COMPLIANCE WITH CONDITIONS IMPOSED IN THE SOLICITATION FOR BIDS. IF AFTER CONSIDERATION OF THE BIDS, BIDDER RESPONSIBILITY, THE PURCHASING AUTHORITY DETERMINES THAT TWO (2) OR MORE BIDDERS ARE EQUALLY COMPETITIVE, HE OR SHE MAY PURCHASE FROM ONE SUCH BIDDER OR MAY DIVIDE THE PURCHASE AMONG THEM, BUT ALWAYS ACCEPTING THE BID OR BIDS MOST ADVANTAGEOUS TO THE CITY. 7.15.045 LOCAL PREFERENCES. (A) IN AWARDING COMPETITIVE BID PURCHASES OR CONSTRUCTION CONTRACTS UNDER KMC 7.15.040, PREFERENCE MAY BE GIVEN TO AN OTHERWISE QUALIFIED "LOCAL BIDDER" UNLESS SUCH PREFERENCE IS PROHIBITED BY THE FUNDING SOURCE. (B) FOR PURPOSE OF THIS SECTION, A "LOCAL BIDDER" IS A PERSON WHO: (1) HOLDS A CURRENT STATE BUSINESS LICENSE, AND IN ADDITION FOR CONSTRUCTION CONTRACTS, HOLDS A CURRENT, APPROPRIATE STATE CONTRACTOR'S REGISTRATION CERTIFICATE; (2) SUBMITS A BID FOR A COMPETITIVE PURCHASE OR CONSTRUCTION CONTRACT UNDER THE NAME AS APPEARING ON THE PERSON'S LICENSE AND, WHERE APPLICABLE, A CERTIFICATE; (3) HAS CONTINUOUSLY MAINTAINED A PHYSICAL PLACE OF BUSINESS WITHIN THE KENAI PENINSULA BOROUGH STAFFED BY THE BIDDER OR AN EMPLOYEE OF THE BIDDER FOR A PERIOD OF ONE HUNDRED EIGHTY (180) DAYS IMMEDIATELY PRECEDING THE DATE OF THE BID OPENING. BIDDER MUST PROVE COMPLIANCE WITH THIS REQUIREMENT TO THE CITY'S SATISFACTION. MERE MAINTENANCE OF A MAIL BOX OR TELEPHONE ANSWERING SERVICE, FOR EXAMPLE, IS NOT SUFFICIENT TO COMPLY WITH THIS PROVISION; AND (4) IF A JOINT VENTURE, IS COMPOSED ENTIRELY OF VENTURERS THAT QUALIFY UNDER THIS SECTION. (C) AN AWARD SHALL BE MADE TO THE LOWEST RESPONSIBLE BIDDER PURSUANT TO KMC 7.15.040(F) OF THIS CHAPTER AS APPLICABLE, EXCEPT THAT A BID MAY BE AWARDED TO A LOCAL BIDDER IF THE LOCAL BIDDER'S BID IS NOT MORE THAN FIVE PERCENT (5 %) HIGHER THAN THE LOWEST RESPONSIBLE NON -LOCAL BIDDER'S BID; PROVIDED, HOWEVER, SUCH PREFERENCE SHALL NEVER EXCEED TWENTY -FIVE THOUSAND DOLLARS ($25,000.00), AND FURTHER PROVIDED THAT THE OTHER PROVISIONS OF KMC 7.15.040(F) OF THIS CHAPTER AS APPLICABLE, HAVE BEEN MET AND THE CITY CHOOSES TO AWARD THE BID. THIS PREFERENCE WILL NOT BE GRANTED WHERE THE CITY USES NON- COMPETITIVE PURCHASING AS PROVIDED IN KMC 7.15.050 OF THIS CHAPTER. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 5 of 20 7.15.050 PURCHASES, WHEN COMPETITIVE BIDDING NOT REQUIRED. THE FOLLOWING MAY BE PURCHASED WITHOUT GIVING AN OPPORTUNITY FOR COMPETITIVE BIDDING: (A) SUPPLIES, MATERIALS, EQUIPMENT, OR CONTRACTUAL SERVICES WHOSE COST DOES NOT EXCEED TWENTY -FIVE THOUSAND DOLLARS ($25,000.00) IN A SINGLE TRANSACTION; (B) SUPPLIES, MATERIALS, EQUIPMENT, OR CONTRACTUAL SERVICES WHICH CAN BE FURNISHED ONLY BY A SINGLE DEALER OR WHICH HAS A UNIFORM PRICE WHEREVER BOUGHT; (C) SUPPLIES, MATERIALS, EQUIPMENT, OR CONTRACTUAL SERVICES PURCHASED FROM ANOTHER UNIT OF GOVERNMENT AT A PRICE DEEMED BELOW THAT OBTAINABLE FROM PRIVATE DEALERS, INCLUDING WAR SURPLUS; (D) CONTRACTUAL SERVICES PURCHASED FROM A PUBLIC UTILITY CORPORATION AT A PRICE OR RATE DETERMINED BY STATE OR OTHER GOVERNMENT AUTHORITY. (E) PROFESSIONAL SERVICES. PROFESSIONAL SERVICES MEANS THOSE ADVISORY, CONSULTING, ARCHITECTURAL, MANAGEMENT, ENGINEERING, RESEARCH OR DEVELOPMENT SERVICES THAT INVOLVE THE EXERCISE OF DISCRETION AND INDEPENDENT JUDGMENT TOGETHER WITH AN ADVANCED OR SPECIALIZED KNOWLEDGE, EXPERTISE OR TRAINING GAINED BY FORMAL STUDIES OR EXPERIENCE. EXAMPLES OF PROFESSIONAL SERVICES INCLUDE, BUT ARE NOT LIMITED TO, ACCOUNTANTS, ARCHITECTS, APPRAISERS, ENGINEERS, FACILITIES MANAGEMENT, LAND SURVEYORS, AUDITORS, MEDICAL SERVICES, FINANCIAL CONSULTANTS, ATTORNEYS, PLANNING CONSULTANTS, ECONOMISTS, COMPUTER PROGRAMMERS AND SYSTEM ANALYSTS, INSURANCE CONSULTANTS AND RISK ANALYSTS, INSURANCE PROVIDERS AND OTHER SPECIALIZED CONSULTANTS. (F) SUPPLIES, MATERIALS, EQUIPMENT OR CONTRACTUAL SERVICES PURCHASABLE UNDER THE CONTRACT OF ANOTHER GOVERNMENTAL AGENCY IN WHICH CONTRACT THE CITY IS AUTHORIZED TO PARTICIPATE. (G) (1) THE CITY MAY AWARD A CONTRACT FOR SUPPLIES, SERVICES, PROFESSIONAL SERVICES OR CONSTRUCTION WITHOUT COMPETITION, FORMAL ADVERTISING OR OTHER FORMAL PROCEDURE WHERE THE CITY MANAGER DETERMINES IN WRITING THAT AN EMERGENCY THREATENING THE PUBLIC HEALTH, SAFETY OR WELFARE REQUIRES THAT THE CONTRACT BE AWARDED WITHOUT DELAY. THE CITY MANAGER SHALL MAKE A REPORT ON SUCH CONTRACT TO THE COUNCIL NO LATER THAN THE NEXT REGULAR MEETING FOLLOWING AWARD OF THE CONTRACT. (2) FOR PURPOSES OF THIS SUBSECTION, AN "EMERGENCY' IS DEFINED AS THE OCCURRENCE OR IMMINENT THREAT OF WIDESPREAD OR SEVERE DAMAGE, INJURY, LOSS OF LIFE OR PROPERTY, OR SHORTAGE OF FOOD, WATER, OR FUEL RESULTING FROM: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 6 of 20 (A) AN INCIDENT SUCH AS STORM, HIGH WATER, WIND - DRIVEN WATER, TIDAL WAVE, TSUNAMI, EARTHQUAKE, VOLCANIC ERUPTION, LANDSLIDE, MUDSLIDE, AVALANCHE, SNOWSTORM, PROLONGED EXTREME COLD, DROUGHT, FIRE, FLOOD, EPIDEMIC, EXPLOSION OR RIOT; (B) THE RELEASE OF OIL OR A HAZARDOUS SUBSTANCE IF THE RELEASE REQUIRES PROMPT ACTION TO AVERT ENVIRONMENTAL DANGER OR MITIGATE ENVIRONMENTAL DAMAGE; (C) EQUIPMENT FAILURE IF THE FAILURE IS NOT A PREDICTABLY FREQUENT OR RECURRING EVENT OR PREVENTABLE BY ADEQUATE EQUIPMENT MAINTENANCE OR OPERATION; (D) ENEMY OR TERRORIST ATTACK OR A CREDIBLE THREAT OF IMMINENT ENEMY OR TERRORIST ATTACK IN OR AGAINST THE STATE THAT THE ADJUTANT GENERAL OF THE DEPARTMENT OF MILITARY AND VETERANS AFFAIRS OR A DESIGNEE OF THE ADJUTANT GENERAL, IN CONSULTATION WITH THE COMMISSIONER OF PUBLIC SAFETY OR A DESIGNEE OF THE COMMISSIONER OF PUBLIC SAFETY, CERTIFIES TO THE GOVERNOR HAS A HIGH PROBABILITY OF OCCURRING IN THE NEAR FUTURE; THE CERTIFICATION MUST MEET THE STANDARDS OF AS 26.20.040(C); IN THIS SUBSECTION, "ATTACK" HAS THE MEANING GIVEN UNDER AS 26.20.200; OR (E) AN OUTBREAK OF DISEASE OR A CREDIBLE THREAT OF AN IMMINENT OUTBREAK OF DISEASE THAT THE COMMISSIONER OF HEALTH AND SOCIAL SERVICES OR A DESIGNEE OF THE COMMISSIONER OF HEALTH AND SOCIAL SERVICES CERTIFIES TO THE GOVERNOR HAS A HIGH PROBABILITY OF OCCURRING IN THE NEAR FUTURE; THE CERTIFICATION MUST BE BASED ON SPECIFIC INFORMATION RECEIVED FROM LOCAL, STATE, FEDERAL, OR INTERNATIONAL AGENCY, OR ANOTHER SOURCE THAT THE COMMISSIONER OR THE DESIGNEE DETERMINES IS RELIABLE. 7.15.055 COMPETITIVE SEALED PROPOSALS FOR CONSTRUCTION. (A) WHEN THE USE OF COMPETITIVE SEALED BIDDING FOR CONSTRUCTION PROJECTS IS EITHER NOT PRACTICABLE OR NOT ADVANTAGEOUS TO THE CITY, A CONTRACT MAY BE ENTERED INTO BY USE OF THE COMPETITIVE SEALED PROPOSALS METHOD. (B) PROPOSALS SHALL BE SOLICITED THROUGH A REQUEST FOR PROPOSALS. (C) WHEN THE CITY COUNCIL DETERMINES THAT IT IS ADVANTAGEOUS TO THE CITY, THE CITY MAY ISSUE A REQUEST FOR PROPOSALS REQUESTING THE SUBMISSION OF OFFERS TO PROVIDE CONSTRUCTION IN ACCORDANCE WITH A DESIGN PROVIDED BY THE OFFEROR. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 7 of 20 (D) ADEQUATE PUBLIC NOTICE OF THE REQUEST FOR PROPOSALS SHALL BE GIVEN IN THE SAME MANNER AS PROVIDED IN KMC 7.15.040(A), PROVIDED THE MINIMUM TIME SHALL BE THIRTY (30) CALENDAR DAYS. (E) A REGISTER OF PROPOSALS SHALL BE PREPARED CONTAINING THE NAME OF EACH OFFEROR, THE NUMBER OF MODIFICATIONS RECEIVED, IF ANY, AND A DESCRIPTION SUFFICIENT TO IDENTIFY THE ITEM OFFERED. (F) THE REQUEST FOR PROPOSALS SHALL STATE THE RELATIVE IMPORTANCE OF PRICE AND OTHER EVALUATION FACTORS. (G) AS PROVIDED IN THE REQUEST FOR PROPOSALS, DISCUSSIONS MAY BE CONDUCTED WITH RESPONSIBLE OFFERORS WHO SUBMIT PROPOSALS DETERMINED TO BE REASONABLY SUSCEPTIBLE OF BEING SELECTED FOR AWARD FOR THE PURPOSE OF CLARIFICATION TO ASSURE FULL UNDERSTANDING OF, AND CONFORMANCE TO, THE SOLICITATION REQUIREMENTS. OFFERORS SHALL BE ACCORDED FAIR AND EQUAL TREATMENT WITH RESPECT TO ANY OPPORTUNITY FOR DISCUSSION AND REVISION OF PROPOSALS AND SUCH REVISIONS MAY BE PERMITTED AFTER SUBMISSIONS AND PRIOR TO AWARD FOR THE PURPOSE OF OBTAINING BEST AND FINAL OFFERS. (H) AWARD SHALL BE MADE TO THE RESPONSIBLE OFFEROR WHOSE PROPOSAL IS DETERMINED IN WRITING TO BE THE MOST ADVANTAGEOUS TO THE CITY, TAKING INTO CONSIDERATION PRICE AND THE EVALUATION FACTORS SET FORTH IN THE REQUEST FOR PROPOSALS. NO OTHER FACTORS OR CRITERIA SHALL BE USED IN THE EVALUATION. THE CONTRACT FILE SHALL CONTAIN THE BASIS ON WHICH THE AWARD IS MADE. (I) PROPOSALS SHALL BE RECEIVED AT THE TIME AND PLACE DESIGNATED IN THE REQUEST FOR PROPOSALS, AND SHALL BE OPENED SO AS TO AVOID DISCLOSING THEIR CONTENTS TO COMPETING PROPONENTS DURING THE PROCESS OF NEGOTIATION. PROPOSALS SHALL BE OPEN TO PUBLIC INSPECTION ONLY AFTER THE CONTRACT AWARD. HOWEVER, THE CITY SHALL ISSUE A NOTICE OF INTENT TO AWARD TO ALL RESPONDING PROPOSERS AT LEAST SEVEN (7) DAYS PRIOR TO COUNCIL APPROVAL. UPON REQUEST BY A COMPETING PROPONENT, THE RECOMMENDED AWARDEE'S PROPOSAL SHALL BE OPENED FOR REVIEW. (Ord. 2022 -2003) 7.15.060 SALES, SURPLUS, COMPETITIVE BIDDING. (A) EXCEPT AS PROVIDED IN SUBSECTION (D) NO SURPLUS OR OBSOLETE SUPPLIES, MATERIALS, OR EQUIPMENT MAY BE SOLD (EXCEPT BY TRADING IN ON OTHER GOODS OR SERVICES) UNTIL THE COUNCIL SHALL HAVE DECLARED THEM OBSOLETE OR SURPLUS. BEFORE THE CITY ADMINISTRATOR SELLS ANY SURPLUS OR OBSOLETE SUPPLIES, MATERIALS, OR EQUIPMENT, EXCEPT AS OTHERWISE PROVIDED IN THE NEXT SECTION, HE OR SHE SHALL ADVERTISE THEM FOR SALE IN A NEWSPAPER OF GENERAL CIRCULATION IN THE CITY OR New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 8 of 20 GIVE NOTICE IN SUCH OTHER MANNER AS HE OR SHE DEEMS NECESSARY ADEQUATELY TO REACH PROSPECTIVE BUYERS TO GIVE THEM AN OPPORTUNITY TO MAKE BIDS. ALL BIDS SHALL BE SEALED AND SHALL BE OPENED IN PUBLIC AT A DESIGNATED TIME AND PLACE, EXCEPT WHEN THE SALE IS BY AUCTION OR BY AN INTERNET SALE PROCESS. (B) THE COUNCIL MAY BY RESOLUTION, INCLUDING SUCH TERMS AND CONDITIONS AS IT DEEMS APPROPRIATE, DECLARE AND AUTHORIZE SALE OF SURPLUS OR OBSOLETE SUPPLIES, MATERIALS OR EQUIPMENT BY A BROKER IF THE NATURE OF ITEMS IS SUCH THAT SALE BY BROKER IS IN THE BEST INTEREST OF THE CITY. THE CITY MANAGER SHALL SUBMIT A WRITTEN REPORT TO THE COUNCIL OF ANY ITEM SOLD BY A BROKER INCLUDING THE COMMISSION, BUYER, AND THE TERMS AND CONDITIONS OF THE SALE. SUCH WRITTEN REPORT SHALL BE INCLUDED IN A COUNCIL PACKET WITHIN THIRTY (30) DAYS AFTER THE SALE DATE. (C) THE CITY ADMINISTRATOR MAY REPEATEDLY REJECT ALL BIDS AND ADVERTISE OR GIVE NOTICE AGAIN. HE OR SHE SHALL SELL SUCH SUPPLIES, MATERIALS, OR EQUIPMENT TO THE HIGHEST RESPONSIBLE BIDDER FOR CASH. IN CASE OF A TIE, HE OR SHE MAY SELL TO EITHER OF THE BIDDERS TYING, OR MAY DIVIDE THE SALE AMONG TWO (2) OR MORE TYING, ALWAYS SELLING TO THE HIGHEST RESPONSIBLE BIDDER OR BIDDERS FOR CASH. (D) COLLECTION MATERIALS REMOVED BY THE LIBRARIAN PURSUANT TO THE LIBRARY'S COLLECTION DEVELOPMENT POLICY MAY BE SOLD, TRADED OR OTHERWISE DISPOSED OF WITHOUT FURTHER DECLARATION BY COUNCIL AND IN ANY MANNER DEEMED APPROPRIATE BY THE LIBRARIAN AS LONG AS THE SALE, TRADE OR DISPOSAL IS IN THE BEST INTEREST OF THE LIBRARY. ALL ETHICAL AND CONFLICTS OF INTEREST PROVISIONS DESCRIBED BY CITY ORDINANCE, RESOLUTION, POLICY, OR REGULATION MUST BE FULLY COMPLIED WITH IN SUCH SALE, TRADE, OR DISPOSAL. WITHIN THIRTY (30) DAYS OF THE END OF EACH FISCAL YEAR, THE LIBRARIAN SHALL PROVIDE A FULL ACCOUNTING TO THE CITY MANAGER AND COUNCIL OF ALL MATERIALS SOLD, TRADED OR OTHERWISE DISPOSED OF THE PRIOR FISCAL YEAR. 7.15.070 SALES, WHEN COMPETITIVE BIDDING NOT REQUIRED. THE CITY ADMINISTRATOR MAY SELL THE FOLLOWING ONLY WITH NOTICE TO AND APPROVAL OF CITY COUNCIL WITHOUT GIVING AN OPPORTUNITY FOR COMPETITIVE BIDDING: (A) SURPLUS OR OBSOLETE SUPPLIES, MATERIALS, EQUIPMENT OR OTHER PROPERTY, EXCLUDING REAL PROPERTY, THE VALUE OF WHICH DOES NOT EXCEED ONE THOUSAND DOLLARS ($1,000.00) IN A SINGLE TRANSACTION; Or (B) SUPPLIES, MATERIALS, EQUIPMENT OR OTHER PROPERTY, EXCLUDING REAL PROPERTY, WHEN SOLD AT A PRICE AT LEAST AS GREAT AS THAT PAID BY THE CITY FOR THE SAME, PROVIDED THAT THE FOLLOWING CONDITIONS SHALL BE MET: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 9 of 20 (1) ANY SUCH PROPERTY VALUED IN EXCESS OF ONE THOUSAND DOLLARS ($1,000.00) SHALL BE APPRAISED BY A QUALIFIED APPRAISER WITHIN SIX (6) MONTHS PRECEDING THE SALE, AND THE SALE PRICE SHALL BE NOT LESS THAN THE APPRAISED VALUE. (2) THE CITY COUNCIL SHALL APPROVE OF THE SALE OF ANY SUCH PROPERTY VALUED IN EXCESS OF ONE THOUSAND DOLLARS ($1,000.00). 7.15.080 TELEPHONE POLLS— AUTHORITY, PROCEDURE, RECORDATION. (A) AUTHORITY. THE CITY MANAGER MAY OBTAIN AUTHORIZATION FROM COUNCIL BY TELEPHONE POLL TO: (1) PURCHASE BUDGETED SUPPLIES, MATERIALS, OR SERVICES IN EXCESS OF TWO THOUSAND FIVE HUNDRED DOLLARS ($2,500.00) IF THE NEED IS CRITICAL IN HIS OR HER ESTIMATION; AND (2) EXECUTE GRANT APPLICATIONS, ACCEPT BIDS AND TRANSFER FUNDS FOR THE BUDGETED ITEMS TO ACCOMPLISH THE FOREGOING. (B) PROCEDURE. ALL QUESTIONS FOR TELEPHONE POLLS SHALL BE IN WRITING AND APPROVED BY THE CITY MANAGER OR DESIGNEE FOR SUBMITTAL TO THE CITY CLERK. THESE POLLS WILL BE APPROVED BY THE FINANCE DIRECTOR TO DETERMINE WHETHER THE PROPER APPROPRIATION IS MADE BY ORDINANCE. THE CITY CLERK MAY DESIGNATE WHICH CITY EMPLOYEES SHALL CONDUCT THE POLL. NO MORE THAN ONE (1) QUESTION SHALL BE CONDUCTED PER TELEPHONE POLL EXCEPT IN CASES OF EXTREME EMERGENCY WHERE MORE THAN ONE (1) QUESTION MAY BE PRESENTED AND EXCEPT THAT THE QUESTION CONCERNING TRANSFERENCE OF FUNDS MAY BE PRESENTED ALONG WITH THE MAIN QUESTION. WHENEVER POSSIBLE, THE QUESTIONS SHALL ELICIT A "YES" OR "NO" RESPONSE. IN ALL CASES, THE DESIGNATED EMPLOYEES SHALL MAKE A REASONABLE ATTEMPT TO CONTACT ALL COUNCIL MEMBERS. AT LEAST FOUR (4) MEMBERS OF THE COUNCIL MUST PARTICIPATE IN THE VOTE FOR THE POLL TO BE VALID. A TWO- THIRDS (2/3) MAJORITY OF ALL COUNCIL MEMBERS POLLED SHALL BE REQUIRED FOR TELEPHONE POLL AUTHORIZATION. IF THE TELEPHONE POLL FAILS, THE MATTER SHALL BE CONSIDERED AS AN AGENDA ITEM AT THE NEXT REGULAR COUNCIL MEETING. (C) RECORDATION. AT THE NEXT REGULAR COUNCIL MEETING, THE CITY CLERK, DURING HIS OR HER REPORT, SHALL READ INTO THE RECORD THE RESULTS OF THE POLL INDICATING THE QUESTION POSED AND THE VOTE OF EACH COUNCIL MEMBER REACHED. 7.15.090 PURCHASES AND SALES -- CERTAIN CITY OFFICERS. PURCHASES FROM, AND SALES TO, THE CITY ADMINISTRATOR AND COUNCILPERSONS SHALL ALSO BE GOVERNED BY THE CITY CHARTER, SECTION 5 -8 EXCEPT AS FOLLOWS: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 10 of 20 (A) THE CITY ADMINISTRATOR, COUNCIL PERSONS, AND CITY EMPLOYEES MAY SELL OR BARTER ANYTHING TO THE CITY, OR MAKE A CONTRACT WITH THE CITY, OR PURCHASE ANYTHING FROM THE CITY WITHOUT THE NECESSITY OF COMPETITIVE SEALED BIDS PROVIDED SUCH SALES, CONTRACT, OR PURCHASES INVOLVE A CONSIDERATION OF NOT MORE THAN FIVE HUNDRED DOLLARS ($500.00) IN VALUE. (B) ANY SALE, CONTRACT OR PURCHASE, OF NOT MORE THAN FIVE HUNDRED DOLLARS ($500.00) AUTHORIZED UNDER SUBSECTION (A) ABOVE, MUST BE MADE AT SUCH PRICES OR RATES PREVAILING IN THE COMMUNITY AND WITHOUT FAVORITISM OR DISCRIMINATION. (Ord. 1178) 7.15.100 SETTING FEE SCHEDULES. THE COUNCIL MAY ADOPT AND AMEND A FEE SCHEDULE SPECIFYING THE RATES, CHARGES, OR FEES IMPOSED BY THE CITY. UNLESS OTHERWISE PROVIDED IN THE KENAI CODE OF ORDINANCES, ANY RATES, CHARGES, OR FEES IMPOSED BY THE CITY OF KENAI SHALL BE SET BY THE CITY MANAGER AND SHALL BE EFFECTIVE UPON APPROVAL BY RESOLUTION OF THE CITY COUNCIL. 7. 15.110 TAX COMPLIANCE. (A) NO CONTRACT THAT REQUIRES COMPETITIVE BIDDING PURSUANT TO A CITY ORDINANCE MAY BE AWARDED TO AN INDIVIDUAL OR BUSINESS THAT IS IN VIOLATION OF CITY TAX ORDINANCES UNLESS THE VIOLATION IS CURED WITHIN TEN (10) BUSINESS DAYS OF NOTICE. (B) IF AN INDIVIDUAL OR BUSINESS BECOMES DELINQUENT ON ANY CITY TAX OBLIGATION DURING THE TERM OF A CONTRACT, THE CITY MAY TERMINATE THE CONTRACT IF NOT CURED WITHIN TEN (10) BUSINESS DAYS OF NOTICE, AND THE CITY MAY OFFSET AMOUNTS OWED BY THE CITY TO THE INDIVIDUAL OR BUSINESS UNDER A CONTRACT FOR THE AMOUNT OF OUTSTANDING TAX OBLIGATIONS INCLUDING APPLICABLE PENALTIES AND INTEREST. (C) TAX COMPLIANCE VERIFICATION IS NOT REQUIRED FOR PURCHASES WHEN THE CITY CONDUCTS BUSINESS WITH OR THROUGH OTHER FEDERAL, STATE OR LOCAL GOVERNMENTAL AGENCIES.] 7.15.010 Purchase Authority. All purchases of supplies, materials, equipment, professional and contractual services for the offices, departments, and agencies of the City government shall be made by the City Manager or by other City personnel in accordance with purchase authorizations issued by the City Manager or approved by City Council. New Text Underlined; ]DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 11 of 20 (1) Utility bills (i.e., electricity, gas, fuel, and telephone); ll City's routine investment purchasing; JJ Monthly payments for payroll deductions (i.e., income tax, F.I.C.A., retirement, and fringe benefits), including both employer's and employee's share; (4) Authorized debt; or (5) Monthly contracted janitorial service. jbl All such exceptions will be paid when they fall due and payments will be ratified by Council at the next regular Council meeting. 7.15.030 Informal Purchasing for Minor Purchases. procedures as long as the price is known to be fair and reasonable within the available market. (2) Purchases greater than $10,000 but less than $25,000 require the solicitation of three or more written quotes using an applicable ll form. waived in writing by the City Manager with iustification provided on an applicable purchasing form. Justification for waiving Large Purchase procedures may include the need for expedited procurement and in a newspaper of general circulation within the City. Invitations to bid may also be advertised in other appropriate forums. (bb) The purchase of, or contract for, supplies, materials, equipment, or contractual services subiect to subsection (a), shall be awarded to the most responsible bidder pursuant to subsection (f). New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 12 of 20 (c) When such purchases are to be made from Federal or State grant funds any (d) All bids shall be sealed and shall be opened in public at a designated time and place. fei The City may repeatedly reject all bids and again may submit to the same or ffj. The City shall purchase from the lowest responsible bidder, basing a determination on responsibility of the bidder on the following factors: adherence to the bid specifications, quality, proposed terms of delivery, any additional cost to the City that would be incurred due to location of the bidder, performance record financial capability, and compliance with conditions imposed in the solicitation for bids If after may divide the purchase among them, but always accepting the bid or bids most advantageous to the City 7.15.050 Competitive Sealed Proposals for Construction or Management Services. fa When the use of competitive sealed bidding for construction projects is either not practicable or not advantageous to the City, a contract may be entered into by use of the competitive sealed proposals method. (b) Competitive sealed proposals may also be used for Management Services of City Facilities, Properties or Services. (c) Proposals shall be solicited through a request for proposals. (d) When the City Council determines that it is advantageous to the City, the Citv may issue a request for proposals requesting the submission of offers to provide construction in accordance with a design provided by the offeror or for management services. (e). Adequate public notice of the request for proposals shall be given in the same manner as provided in KMC 7.15. 040. A register of proposals shall be prepared containing the name of each offeror, fgi The request for proposals shall state the relative importance of price and other evaluation factors. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 13 of 20 L! being selected for award for the purpose of clarification to assure full understanding proposals and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. W award is made. fj Proposals shall be received at the time and place designated in the request for proposals, and shall be opened so as to avoid disclosing their contents to competing proponents during the process of negotiation. Proposals shall be open to public inspection only after the contract award. However, the City shall issue a notice of intent to award to all responding proposers at least seven (7) days prior to Council approval. Upon request by a competing proponent, the recommended awardee's proposal shall be opened for review. 7.15.060 Procurement of Professional Services. (aa) Professional services for a total contract amount, including all reasonably foreseeable change orders and modifications, less than $10,000 may be procured in any reasonable manner. purchasing form. If three quotes cannot reasonably be obtained, a written justification must be documented on an applicable purchasing form. ll Professional services procured in an amount in excess of $35,000 must be solicited by issuing a request for proposals. The request for proposals shall state, or incorporate by reference, all specifications and contractual terms and conditions to which a proposal must respond, and shall state the factors to be considered in evaluating proposals and the relative importance of those factors. Public notice of a request for proposals shall be published a minimum of two times at least two weeks prior to the date proposals are due in a newspaper of general circulation within the City and may be advertised in other appropriate forums. A request for proposals may be modified or interpreted only in written addenda. (d) The City may negotiate with one or more qualified and responsible proponents requirements of the request for proposals.. Proponents may be permitted to revise their proposals after submission and prior to award to obtain best and fmal offers. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 14 of 20 Proponents deemed eligible for negotiations shall be treated equally regarding any opportunity to discuss and revise proposals. Specific fee schedules shall be kept confidential until after the notice of intent to award is distributed. fee) Awards shall be made by written notice to the qualified and responsible proponent whose final proposal is determined to be most advantageous to the Citv. No do so, the City may reiect any and all proposals. (f). Legal services may be procured by direct negotiation with an attorney or law legal counsel shall be pursued by the City Attorney, or in the case of a conflict of interest, the City Council or City Manager. 7.15.070. Innovative Procurements and Other Exceptions. (a) A contract may be awarded for supplies, services, professional services, or construction using an innovative procurement process, with or without competitive sealed bidding or competitive sealed proposals. A contract may be awarded under this section only when the City Manager or designee determines in writing to the City Council that it is advantageous to the City to use an innovative competitive be in the best interest of the City to consider an award to other than the lowest priced offer or other than the highest technically rated offer. (1) To utilize an innovative procurement procedure the requesting department shall submit: ,(A) a detailed procurement plan to the City Manager for review and approval before public notice is issued as required under KMC 7.15.040. The plan shall, at a minimum, address the method of solicitation, scope, method of award, protest procedures, and .(B) an explanation of how use of this procedure will achieve the best value, or why it is advantageous to the City. To the maximum extent allowed by law, costs and benefits associated with the location of the bidder, may be considered in determining the best value for the City. (2) When using the process authorized in this section, all of the following apply: (AA) The City Manager must first approve the use of the proposed innovative procurement plan. jB) All evaluation factors and significant sub - factors that will affect the contract award and their relative importance shall be clearly stated in the solicitation. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 15 of 20 Ll important than, approximately equal to, or significantly less important than cost or price. ll In developing evaluation factors, generally, where the requirement is clearly definable and the risk of unsuccessful contract performance is minimal, cost or price may play a. dominant role in source selection. The less definitive the requirement, the more development work required, or the greater the performance risk, the more technical or past performance considerations may play a dominant role in source selection. (b) The following may be purchased without giving an opportunity for competitive bidding: Lj Supplie furnish( bought: ll 193m price or rate determined by State or government authority. (4) Supplies, materials, equipment or contractual services purchasable under the contract of another governmental agency in which contract the City is authorized to participate. (5) The City may award a contract for supplies, contractual services, or professional services without competition, formal advertising or other formal procedure where the City Manager determines in writing that an emergency threatening the public health, safety or welfare requires that the contract be awarded without delay. The City Manager shall make a report on such contract to the Council no later than the next regular meeting following award of the contract. (A) Forpurposes of this subsection, an "emergency' is defined as the resulting from: (i) An incident such as storm, high water, wind- driven water tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, avalanche, snowstorm, prolonged extreme cold, drought, fire, flood, epidemic, explosion or r Ijil The release of oil or a hazardous substance if the release requires prompt action to avert environmental danger or mitigate environmental damage, New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 16 of 20 iii Equipment failure if the failure is not a predictably frequent or recurring event or preventable by adequate equipment maintenance or operation; iv Enemy or terrorist attack or a credible threat of imminent enemy or terrorist attack in or against the State that the Adiutant General of the Department of Military and Veterans Affairs or a designee of the Adiutant General, in consultation with the Commissioner of Public Safety or a designee of the Commissioner of Public Safety, certifies to the Governor has a high probability of occurring in the near future; the certification must meet the standards of AS 26.20.040(c); in this subsection, "attack" has the meaning given under AS 26.20.200; or M An outbreak of disease or a credible threat of an imminent outbreak of disease that the Commissioner of Health and Social Services or a designee of the Commissioner of Health and Social Services certifies to the Governor has a high probability of occurring in the near fixture; the certification must be based on specific information received from local, reliable. 7.15.080 Local Preferences. jJ In awarding competitiv otherwise qualified "local bidder" unless such preference is prohibited by the funding source. fib) An award shall be made to the lowest responsible bidder pursuant to KMC 7.15.040(8 of this chapter as applicable, except that a bid shall be awarded to a local bidder if the local bidder's bid is not more than five percent (5 %) higher than the lowest responsible non -local bidder's bid and such award is permitted by the funding chapter. 7.15.090 Sales, Surplus, Competitive Bidding. f al Except as provided in subsection (d) no surplus or obsolete supplies, materials, or equipment may be sold (except by trading in on other goods or services) until the Council shall have declared them obsolete or surplus. Before the City Manager sells any surplus or obsolete supplies, materials, or equipment, except as otherwise provided in the next section, he or she shall advertise them for sale in a newspaper of general circulation in the City or give notice in such manner as he or she deems necessarily adequately to reach prospective buyers to give them an opportunity to make bids. All bids shall be sealed and shall be opened in public at a designated time and place, except when the sale is by auction or by an internet sale process. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 17 of 20 (b) The Council may by resolution, include such terms and conditions as it deems appropriate, declare and authorize sale of surplus or obsolete supplies, materials or equipment by a broker if the nature of items is such that sale by broker is in the best interest of the City. The City Manager shall submit a written report to the Council of any item sold by a broker including the commission, buyer, and the terms and conditions of the sale. Such written report shall be included in a council packet within Thirty (30) days after the sale date. (c) The City Manager may repeatedly reiect all bids and advertise or give notice again. He or she shall sell such supplies, materials, or equipment to the highest responsible bidder for cash. In case of a tie, he or she may sell to either of the bidders tying, or may divide the sale among two (2) or more tying, always selling to the highest responsible bidder or bidders for cash. (d) Collection materials removed by the librarian pursuant to the library's collection development policy may be sold, traded or otherwise disposed of without further declaration by Council and in any manner deemed appropriate by the librarian the City Manager and Council of all materials sold, traded or otherwise disposed of the prior fiscal year. 7.15.100 Purchases and Sales— Certain City Officers. Purchases from, and sales to, the City Manager and Councilpersons shall also be governed by the City Charter, Section 5 -8 except as follows: (a) The City Manager, Council persons, and City emplovees may sell or barter anything to the City, or make a contract with the City, or purchase anything from the value. (b) Any sale, contract or purchase, of not more than five hundred dollars ($500) authorized under subsection (a) above, must be made at such prices or rates prevailing in the community and without favoritism or discrimination. 7. 15.110 Tax Compliance. (a) No contract that requires competitive bidding pursuant to a City ordinance may be awarded to an individual or business that is in violation of City tax ordinances unless the violation is cured within ten (10) business days of notice. (b) If an individual or business becomes delinquent on any City tax obligation during the term of a contract, the City may terminate the contract if not cured within ten (10) business days of notice, and the City may offset amounts owed by the City to the individual or business under a contract for the amount of outstanding tax obligations including applicable penalties and interest. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 18 of 20 !c) Tax compliance verification is not required for purchases when the City conducts business with or through other Federal, State or local governmental agencies. 7.15.120 Appeal Procedures. (aa) Any party submitting a bid or proposal for a contract with the City and who believes that they are adversely affected by the City's relevant ordinances, regulations, procurement process, or by any acts of the City in connection with the award of a City contract, may file a protest appeal with the City Clerk. All protest appeals must be to the City within five (5) calendar days of the issuance of the City's notice of its intent to award the contract. The appeal must be hand delivered, delivered by mail, or by facsimile and must comply with all requirements of this section. If the fifth day is a City - recognized holiday or a weekend, the deadline for appeal shall be the next work day. It is up to the protester to choose a method of delivery to assure timely receipt by the City. (b) Rejection of Appeal. The Clerk shall reiect an untimely or incomplete appeals. Such reiection shall be final and may be appealed to the Superior Court pursuant to the Court Rules of Appellate Procedure. (c). The protest appeal must be in writing and shall include the following information: ll (2) the signature of the protester or the protester's representative; (3) identification of the contracting agency and the solicitation or contract at issue; (4) a statement of the legal and factual grounds of the protest, including copies of relevant documents; and, (5) the form of relief requested. (d) Stay of award. If a timely and complete protest appeal is filed, the award of the contract shall be staved until all administrative remedies have been exhausted, unless the City Manager determines in writing that award of the contract pending resolution of the appeal is in the best interests of the City. (e) Notice and response. Notice of the stay and protest appeal shall be delivered to any party who may be adversely affected by the City Manager's decision by facsimile, first class mail or in person within three (3) business days of receipt of a properly filed appeal. (f] City Manager Decision. The City Manager shall issue a written decision to the appellant within ten (10) business days of the date the appeal is filed. If multiple The decision may include any lawful action, including without limitation an New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 19 of 20 be necessary. jgl If the City Manager sustains a protest in whole or in part, the City Manager shall implement an appropriate remedy. In determining an appropriate remedy, the City Manager shall consider the circumstances surrounding the solicitation or procurement including the seriousness of the procurement deficiencies, the degree of preiudice to other interested parties or to the integrity of the procurement system, the good faith of the parties, the extent the procurement has been accomplished, costs to the agency and other impacts on the agency of a proposed remedy, and the urgency of the procurement to the welfare of the City. jhj Notwithstanding subsections (a) and (b) immediately above, if the City Manager sustains a bid protest appeal in whole or part, the protester's damages shall not exceed the reasonable bid or proposal preparation costs. (i) Appeal to superior court. Appeals may be taken from the written decision of the City Manager within thirty (30) days of the date of the decision pursuant to Part VI of the Alaska Rules of Appellate Procedure. 7.15.130 Definitions. The following definitions apply for this Chapter: (a) "Contractual Services," means services other then professional services performed for the City by persons not in the employment of the City, and may include the use of equipment or the furnishing of commodities in connection with said services under express or implied contract. Contractual services shall include: travel, freight, express, parcel post, postage, telephone, telegraph, utilities, rents, printing and binding, repairs, alterations, and maintenance of buildings, equipment, streets, bridges, and other physical facilities of the City, and other services performed for the Citv by persons not in the employment of the Citv. (b) A "Local Bidder" is a person who: (1) Holds a current state business license, and in addition for construction contracts, holds a current, appropriate state contractor's registration certificate; (2) Submits a bid for a competitive purchase or construction contract under the name as appearing on the person's license and, where applicable, a certificate; (3) Has continuously maintained a physical place of business within the bidder for a period of ninety (90) days immediately preceding the date of the bid opening. Bidder must prove compliance with this requirement to the City's satisfaction. Mere maintenance of a mail box or telephone answering service, for example, is not sufficient to comply with this rovision; an d New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2852 -2015 Page 20 of 20 (4) ll (d) "Professional Services," means all advisory, consulting, technical, research or other services, such as architectural, engineering, land surveying, legal and financial, which involve the exercise of discretion and independent iudgment together with an advanced or specialized knowledge, expertise or training gained by formal studies or experience. Section 3. Amendment of Chapter 7.25 of the Kenai Municipal Code: That Kenai Municipal Code, Chapter 7.25 -City Budget, is hereby amended by enacting a new code section as follows: 7.25.120 Setting Fee Schedules. The Council may adopt and amend a fee schedule specifying the rates, charges, or fees imposed by the city. Unless otherwise provided in the Kenai Code of Ordinances, any rates, charges, or fees imposed by the City of Kenai shall be set by the city manager and shall be effective upon approval by resolution of the Council. Section 4. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of October, 2015. PAT PORTER, MAYOR Introduced: September 2, 2015 Enacted: October 7, 2015 Effective: November 6, 2015 New Text Underlined; [DELETED TEXT BRACKETED) "'V illaye witk a Past, C# with a Future \ °ti"` / 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 992 KENAI, ALASKA Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 Nom/ MEMORANDUM TO: Mayor Porter, City Council Members, Student Representative FROM: Council Members Knackstedt & Molloy DATE: August 26, 2015 SUBJECT: Ordinance No. 2852 - 2015 Repealing & Re- Enacting Purchasing Code, Etc. This ordinance would repeal and re -enact the City's purchasing code, Chapter 7.15- Purchases and Sales, with revisions. The City Attorney's revised and updated sectional analysis memo presents the specifics of the changes proposed by this ordinance. The major differences between the draft ordinance discussed by Council at the 8/17/15 work session and this ordinance are: 1. Formal purchasing: - The dollar limit is now proposed to be $35,000. 2. Informal purchasing: - Purchases up to $10,000 may be made without formal purchasing procedures as long as the price is known to be fair and reasonable within the available market. - Purchases greater than $10,000 but less than $25,000 require the solicitation of three or more written quotes or a written justification. - Purchases of $25,000 or greater, but no more than $35,000 require the same competitive bid procedures as required for Large Purchases, unless waived in writing by the City Manager with justification provided on an applicable purchasing form. Justification for waiving Large Purchase procedures may include the need for expedited procurement and conservation of City resources. At a minimum, procedures for purchases greater than $10,000 but less than $25,000 must be utilized.' 3. Management services: - Is now included with new 7.15.050 Competitive Sealed Proposals for Construction or Management Services. Competitive sealed proposals "may also be used for Management Services of City Facilities, Properties or Services." The City Manager may have a more restrictive administrative policy. 4. Professional services: - Between $10,000 and $35,000 requires the solicitation of three or more quotes with written documentation or a written justification. - Greater than $35,000 requires request for proposals. - For legal services, in the case of a conflict of interest, negotiations or contracts shall be pursued by the City Council or City Manager. 5. Definitions: - "Local bidder ": The period of pre -bid staffing is proposed to be 90 days instead of the present 180 days. No other change. - "Management Services" is defined to mean "services provided by a third parry to manage or operate a facility or property owned by the City or services provided by the City." We respectfully request your support of this ordinance. "'Villa9e with a Past, C# with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 MEMORANDUM TO: Council Members Molloy and Knackstedt FROM: City Attorney, Scott Bloom DATE: August 27, 2015 SUBJECT: Sectional Analysis of KMC 7.15 Purchases & Sales Ordinance This memo will outline the major changes between the proposed rewrite of KMC CHAPTER 7.15 and the existing code section: 1. The majority of the definitions, including the definition of "Contractual services" in existing KMC 7.15.010 — "Contractual services" defined, are moved to a definitions section in the proposed KMC 7.15.130 - Definitions, for organizational purposes. A new definition of "Professional Services" is provided that is more in line with other municipal definitions and the State's definition. This new definition excludes management services, which is currently included as a professional service. Instead Management services is separately defined with a new definition. 2. Existing KMC 7.15.020 has the ambiguous title "Made by whom" and has been renumbered as 7.15.010 and titled "Purchase Authority." The new section also clarifies the types of purchases that can be made and who has authority to make them. 3. Existing KMC 7.15.030 - When prior approval by Council is required, is renumbered and renamed as KMC 7.15.020 - Purchases Requiring Council Approval and is otherwise similar. 4. Proposed KMC 7.15.030 - Informal Purchasing for Minor Purchases, is a new code section defining how minor purchases are made and governs purchases up to $35,000. This is similar, aside from dollar amounts, to the current City Manager's policy, but has not previously been codified. 5. Existing KMC 7.15.040 - Competitive bidding, is renamed "Competitive Bidding for Large Purchases." The new section clearly requires an open advertised bid in all cases, whereas the existing section allows for a process utilizing a minimum of three quotes or an open bid process. 6. Existing KMC 7.15.045 - Local preferences, is renumbered as 7.15.080. The new section adds a local preference for purchases of $15,000 or greater, but less than $35,000, under new KMC 7.15.030(a)(3), removes the definition of "Local Page 2 of 2 Bidder" to the new definitions section, and contains mandatory, rather than potentially permissive language when a preference is allowed by the funding source. 7. Existing KMC 7.15.050 - Purchases, when competitive bidding not required, has been moved to KMC 7.15.070 - Innovative Procurement and Other Exceptions, subsection (b). It removes the exception for purchases of $25,000 or less and professional services, but is otherwise mostly consistent with the existing code section. 8. Existing KMC 7.15.055 - Competitive sealed proposals for construction, is renumbered and renamed as KMC 7.15.050- Competitive Sealed Proposals for Construction or Management Services, , and is further amended to include a process for proposals for management services. 9. The proposed KMC 7.15.060 - Procurement for Professional Services, is a new section that requires an open competitive process for solicitation of professional services for services of more than $35,000 and a solicitation of quotes for services between $10,000 and $35,000. The new code section also provides a process for procuring professional services. An exception is provided for procurement of legal services. 10. The proposed new KMC 7.15.070 - Innovative Procurement and Other Exceptions, mentioned above, incorporates the exceptions to competitive bidding above and also mirrors the Kenai Peninsula Borough's process for innovative procurement methods that are in the City's best interest. This process requires a written communication to Council that an innovative procurement method is in the City's best interest based on new or unique requirements of the City, new technologies or to achieve best value. Specific requirements contained in subsections (1) and (2) of this new code section are required to utilize innovative procurement methods. 11. Existing KMC 7.15.060 - Sales, surplus, competitive bidding, is renumbered as KMC 7.15.090, but otherwise is largely the same. 12. Existing KMC 7.15.080 - Telephone polls — Authority, procedure, recordation, is deleted in its entirety in the proposed ordinance, as it is a process no longer utilized by the City and is inconsistent with modern practices. 13. Existing KMC 7.15.090 - Purchases and sales— Certain City officers, is renumbered as KMC 7.15.100, but is otherwise largely the same. 14. Existing KMC 7.15.100 - Setting fee schedules, is removed in its entirety from KMC Chapter 7.15 - Purchases and Sales, and put in KMC Chapter 7.25 - City Budget, (KMC 7.25.120) where it fits more appropriately. No other material changes are made to the code section. 15. Existing KMC 7.15.110 - Tax compliance, is renumbered to KMC 7.15.110, but is otherwise materially the same. 16. New proposed KMC 7.15.120 - Appeal Procedure, provides an appeals process for bid and proposal protests. It provides specific timelines for filing and responding to protest as well as procedures. It allows for appeals to go to the City Manager and then to Superior Court. ''Villaye with a Past, C# tvdh a Future" OFFICE OF THE CITY MANAGER 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 tlreutyaf Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 KENAL ALASKA V KMC 7.15 governs the purchases made by the City of Kenai. The following policy is intended as a supplement to KMC 7.15. The intent of the policy is to assure the expenditure of public funds is being made in the most responsible matter. The policy in no case shall be less restrictive than KMC 7.15. The expected goal of any purchase shall be to receive the lowest cost for a good or service that meets the needs of the purchasing department. Purchases less than $1,000.00 Purchases less than $1,000.00 do not require request for quotes or formal solicitation. Departments are encouraged to shop and verify the price being paid is competitive. Purchases greater than $1,000.00 but less than $5,000.00 Purchases greater than $1,000.00 but less than $5,000.00 will require a minimum of three verbal quotes that shall be documented on the purchasing verbal quote form. If three quotes are not available a brief explanation as to why and justification for selection of the vendor is required. The completed verbal quote form will be maintained by the department and made available upon request. Purchases greater than $5,000.00 but less than $15,000.00 Purchases greater than $5,000.00 but less than $15,000.00 will require a minimum of three written quotes. Written quotes will be solicited using the purchasing written quote form. If three quotes are not available a brief explanation as to why and justification for selection of the vendor is required. The completed written quote forms will be maintained by the department and made available upon request. Purchases greater than $15,000.00 but less than $25,000.00 Purchases greater than $15,000.00 but less than $25,000.00 will require City Manager approval to NOT require formal solicitation or bid. A written request to exempt a purchase from formal solicitation will include justification and the proposed method to be used in the absence of formal bid. At a minimum the requirements of purchases greater than $5,000.00 but less than $15,000.00 shall be followed. Purchases greater than $25,000.00 Purchases of goods or non - professional services greater than $25,000.00 shall be by formal competitive bid. Any deviation from formal competitive bid must be allowable under KMC 7.15.050 and be approved by the City Manager. Purchases of professional services greater than $25,000.00 will require City Manager approval to NOT require formal solicitation for bid. A written request to exempt a purchase from formal solicitation will include an explanation as to why the selected vendor was chosen and reasonable assurance the cost is competitive. "'li'i(aye with a Past, C# with a Futurell 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 Verbal Quote Form Date: Item to be purchased: Description: Quantity: Make/Model: Vendor Selected: Vendor: Unit Price: Vendor 1 Vendor Name: Date: Time of Call: Sales Person: Make /Model of Quoted Item: Quantity Available: Unit Price: Vendor 2 Vendor Name: Date: Time of Call: Sales Person: Make /Model of Quoted Item: Quantity Available: Unit Price: Vendor 3 Vendor Name: Date: Time of Call: Sales Person: Make /Model of Quoted Item: Quantity Available: Unit Price: Date: Item to be purchased: Quantity Requested: Item to be Delivered by: "'illaye with a Past, C# with a Future 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 Written Quote Form Description: (Attach additional hi o matron or Diawmgs if applicable Make/Model: (Attach additional onnatton or Diawmgs if apphca e Vendor Information: Vendor Name: Sales Person: Quoted Price Good Until: Make/Model of Quoted Item: (Attach additional Information or Drawings ifapphcahle) Quantity Available: Unit Price: Date: "�/la9e with a Past, C# with a F./me" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 Exemption From Formal Bid Request Requesting Department: Item to be Purchased: Vendor Name: Quantity Available: Unit Price: Item to be Delivered by: Description: (Attach additional In onnahon or D,awnigs if apphca e) Make /Model: (Attach additional 1 onnahon or D�awmgs it applicable) Justification for Exemption: (Attach additional Inlonnahon if needed) Method Used to Assure Competitive Pricing: (Attach additional Inlonnahon —If needed) Approved r] Declined F] City Manager: M "Villa9e with a Past, iC# with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 1IIII 1992 MEMO: TO: City Council FROM: Rick Koch, City Manager DATE: September 10, 2015 SUBJECT: Work Session Materials — Repealing & Re- Enacting Purchasing Code, Ordinance 2852 -2015 The purpose of this correspondence is to provide Administration's review of the proposed purchasing code re- write, and to provide general, and specific recommendations. Present Purchasing Code From the perspective of the Administration, the current purchasing code provides both the flexibility and guidance necessary to ensure the business of the municipal corporation is conducted in a legal, fair, and ethical manner, while at the same time providing an appropriate degree of flexibility to respond to procurement schedules, and conditions, without imposing administratively intense, costly, and inefficient regulation. The majority of similar jurisdictions have incorporated higher dollar levels of procurement controls, as the cost of goods and services tend to increase in cost over time. If Council desires to amend the existing code, or adopt new code, this would be an opportune time to increase current dollar limitations for various levels of procurement activities. The guidance presently provided in KMC 7.15, efficiently and effectively meets the needs of the municipal corporation, and with minor amendments to recognize the increased costs of goods and services would continue to meet the City's and citizens of Kenai's needs. Under the present purchasing code all procurements greater than $15,000 must be approved in advance by the City Council. Proposed New Purchasing Code The proposed new code provides for a decrease in limits in several areas of normal procurement activity. In general, similar jurisdictions provide for higher dollar levels of informal procurement rather than less. In the event that Council adopts in whole, or in part, the proposed purchasing code, Administration respectfully requests your consideration of the following amendments: 1. KMC 7.15.020, Purchases Requiring Council Approval. This provision mirrors existing code which requires Council approval for all purchases of supplies, materials, equipment, and contractual services exceeding $15,000. Administration Recommendation: Increase the limit for purchases of supplies, materials, equipment, and contractual services requiring Council Approval from $15,000 to $25,000. Similar jurisdictions have limits from $20,000 to $50,000, and several jurisdictions, including the City of Homer and the Kenai Peninsula Borough do not require Council /Assembly approval if the expenditure is included in the adopted budget. 2. KMC 7.15.030(a), Increases limit for informal purchasing of supplies, materials, equipment, and contractual services from $25,000 to $35,000. Administration Recommendation: Increase limit from $25,000 to $50,000. Council approval for informal purchasing should also be amended to include all purchases in excess of $25,000 (provided in No. 1, above). 3. KMC 7.15.030(a)(1), decreases limit for informal purchases without competition from $15,000 to $10,000. Administration Recommendation: Retain existing limit for informal purchases without competition at $15,000. As a matter of Administrative Policy, competitive bids are already obtained for the majority of purchases below $15,000, but there is a number of informal purchases up to $15,000 that can only be accomplished through a single supplier. 4. KMC 7.15.030(a)(2), decreases the limit for which three written quotes are required from $15,000 to $10,000. Administration Recommendation: Retain existing limit for informal purchases without competition at $15,000. As a matter of Administrative Policy, competitive bids are already obtained for the majority of purchases below $15,000, but there is a number of informal purchases up to $15,000 that can only be accomplished through a single supplier. 5. KMC 7.15.030(a)(3), requires purchases greater than $25,000, but no more than $35,000 to follow competitive bids procedures for large purchases (greater than $35,000), allows for administrative waivers, but requires procedures for purchases between $10,000 - $25,000, at a minimum. Administration Recommendation: Eliminate this provision in its entirety. It is confusing and provides for three different administratively - intense procedures. Administration recommends utilizing informal purchasing procedures between $25,000- $50,000, which require solicitation of three or more written quotes, and Council approval (No. 2, above). 6. KMC 7.15.030(b), provides that purchases for supplies, materials, equipment, and contractual services in the amount of $35,000 or less be made from the lowest responsible source. Administration Recommendation: Eliminate in its entirety and replace with "Purchases for supplies, materials, equipment, and contractual services, shall be made from the responsive and responsible supplier and /or contractor providing the lowest price." 7. KMC 7.15.040, provides for purchase of supplies, materials, equipment, and contractual services in excess of $35,000 be defined as a "large purchase" and follow formal competitive procurement procedures. Administration Recommendation: Large Purchases should be defined as greater than $50,000. Formal procedures extend the period of procurement by a minimum of 30 days. This requirement for relatively small procurements, especially for construction services, during the short summer construction season will have a negative impact. 8. KMC 7.17.050 provides for a competitive sealed proposal process for procurement of management services. Administration Recommendation: Management services under the existing code are considered professional services. The proposed procurement code, and other similar jurisdictions define professional services as "a service which involves the exercise of discretion and independent judgment together with advanced or specialized knowledge, expertise or training gained by formal studies or experience, and includes without limitation a service provided by an engineer, architect, attorney or accountant." The City presently contracts for management services of the golf course, Vintage Pointe, multi - purpose facility (ice maintenance), Recreation Center, and Visitor's Center. Each of these management contracts, to differing degrees, require advanced or specialized knowledge, discretion, and independent judgment. Administration recommends that management services be removed from the proposed KMC 7.15.050 and remain a professional service. 9. KMC 7.15.060, provides for the procurement of professional services, and established procurement methodologies based on contract /agreement monetary values. Administration Recommendation: Present code requires Council approval for procurement of all professional services above $15,000 in value. The code does not require a specific procurement methodology for professional services at any level. Generally, for larger procurements of professional services (greater than $50,000) the source of funding requires a specific procurement methodology. This has been the case in the majority of professional service agreements. Because Council must approve all procurements exceeding $25,000, Council has the ultimate authority to approve the methodology employed. If Council, as a matter of policy, desired to place certain limitations and /or requirements for the procurement of professional services, that would be appropriate, but to self -limit the Council's authority, in Administration's opinion, is not in the best interest of the Council and /or the City. Administration recommends that the proposed KMC 7.15.060 be deleted in its entirety, and the existing code, KMC 7.15.050(E) be retained in a similar form /meaning. 10. KMC 7.15.080(a), provides for local preference for purchases between $25,000 and $35,000. Administration Recommendation: Delete in its entirety and substitute "In awarding competitive bid purchases of less than $50,000 preference may be given to an otherwise qualified local bidder, in the amount of 5% of the amount bid, unless such preference is prohibited by the funding source. There are additional administrative burdens established in the proposed code which will require more time than presently required to undertake procurement activities. This increased work /time commitments may require additional resources either through personnel and /or contracting. Attached, please find a spreadsheet summarizing the City of Kenai's current procurement regulations, and the proposed procurement regulations procurement regulations, compared to similar jurisdictions. Summary Administration recommends retaining the City's current procurement code with amendments as have been proposed by the Administration. This would require an additional amendment defining the City's present Bid Protest procedure, and other minor changes. In the alternative, Administration recommends including the amendments defined in the analysis provided in this document. If any members of Council would like to discuss a substitute ordinance incorporating all, or some, of these amendments, Administration can assist in drafting the substitute. As previously stated, the Kenai City Code presently provides flexibility and guidance, allowing the City Council to undertake procurement activities utilizing a wide -range of methodologies. Under the present ($15,000), and Administration recommended ($25,000) limits requiring Council approval, Council maintains knowledge and control of the City's procurement activities. If you have any questions, please contact me at your convenience. attachment a, 47 L U 0 a w� W a O a O C L v O a .m C Y O A u L L U O a .m a O U Y O U �L 1 L s O Vf C E Q O H tw bD 3 N O Ora m L H a U O v no a O` O 000 ° a a O o a o oo o _ o Z Z Z a-+ � n n n n n n A n 0 0 C C LL U Q O O cr O O W > O O Q N O O O O O O yj a o O o O O- O C Q O Q Q Q Q R O a t O N Z z Z Z Z Z n n A N R 0 E 0 Q C� N o Z C V v kn ' po O 0 0 o 0 N o p Q a- Q o vi Lr o Q N Q z z z z z z V E c O Z o 0 0 C 7 vi �n ui vi _ � c� C V 0 0 O O O O O 00 0000 0 0 v o C C C o C 0 o 0 O) q o 0 Lr Q N N N Q N VT o VT 0 E 0- c Z C p0 o 3 o v o {A C V U n V k E � v M J 0 0 0 0 0 0 O 0 0 O o p p p p o O O O o L O 0 m 0 0 0 0 0 0 0 O O O .y 0 0 0 0 0 0 0 m O O O = O 0 0 Ln O Lri O Lr O Lr E -O E O C U — O p V} V V V? V} V} V Vl V} VT VT v v L 0 a 0 0 m U aJ O O -0 U L Q o uo C m Y bo Q 0 A * O O O Y O w O > c O vi vOi v N ro ai o 0 0 0 o v � Y VI U U 0 U O v no a +J r_ cu E L O L a w� W Q. O L a V GJ E L U a Y O J� T V 4-+ L L V v- O i O Ln �L Q. E V IA i O U �L 1 L 0 C Vf C Q W H tw N O m L- 4.0 H .E a, W U N m a m a v 0 0 cu N � O u v c � v a+ N � Y C va v x � w v w -O u `1 O D• O v Y (0 o a Z o v o 0- v O' O T N � N w N p o O U C Y_ U U N 0 v a m_ c j O O 0 O O O O s 0 0 0 o O o n o 0 a 0 Q Q 0 0 a o z Z a o o vi ui ry z Z Z m ry U V1 V? E A A A n A n n n A y� O 0 U d V L C O H > > 0 O O O o O 0 O O CL O 0 Q a a a a s a = o a �n o 00 Z z N z z Z Z Z Z 'u 4A _ c n n L A O E O U O 0 ^ L 0 a m 0 O L > ° O o O 0 O 0 v a d 0 C a a a a° a a a z z z z z z o = 0 0 4J E C n n L O O O Lf N � r OL o 0 0 0 a o O O 0 0 0� > 000 00 O 0 0 0 0 0 Q c n o ry ++ w a a a a 't/? a .0 Q Z Z Z Z O Z E n J o 0 o 0 .� uo U v a C z z 0 0 0 0 0 0 0 O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 m o 0 0 z m° o 0 0 C C C o v o C C o O O o �/i �D �ti O LM v D o m 6 O ti ti v � � O 0 C U v v ° to pp O U +0+ L 0 D O U @ C m O C v bA m n a > Y > C 0 U v� � 01010 o O C v v C T T T T N 0 Y U U U U > a > U a a a N m a m a v 0 0 cu N � O u v c � v a+ N � Y C va v x � w v w -O u `1 O D• O v Y (0 o a Z o v o 0- v O' O T N � N w N p o O U C Y_ U U N 0 v a